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RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
 12 Months Ended
Dec. 31, 2024
Accounting Changes and Error Corrections [Abstract]  
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
3. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
During the preparation of the consolidated financial statements for the year ended December 31, 2025, the Company determined that property, plant and equipment was overstated as a result of the improper continued capitalization carrying values of assets committed to demolition in connection with the conversion of certain facilities from digital asset mining operations to HPC colocation infrastructure, which impacted the Company’s previously issued consolidated financial statements as of and for the year ended December 31, 2024, as well as the condensed consolidated financial statements as of and for the three and six months ended June 30, 2024, the three and nine months ended September 30, 2024, the three months ended March 31, 2025, the three and six months ended June 30, 2025, and the three and nine months ended September 30, 2025. Specifically, the carrying values of assets committed to demolition were improperly capitalized rather than being written down to fair value through the recognition of impairment charges in the periods in which the commitment to demolish was made.
The Company assessed the materiality of the errors, individually and in the aggregate, and concluded that the errors were material to the previously issued consolidated financial statements and condensed consolidated financial statements set forth above and such previously issued financial statements should no longer be relied upon. As a result, the Company is restating herein its previously issued condensed consolidated financial statements as of and for the three and six months ended June 30, 2024 and the three and nine months ended September 30, 2024, and the consolidated financial statements as of and for the year ended December 31, 2024.
The cumulative impact of the errors as of December 31, 2024 resulted in an overstatement of property, plant and equipment, net of approximately $122.9 million and a corresponding understatement of accumulated deficit of the same amount. The restatement had no impact on revenue, cost of revenue, or income tax expense, and no impact on net cash provided by or used in operating, investing, or financing activities for any period presented, as the corrections to net loss and impairment of property, plant and equipment are
offsetting within cash flows from operating activities. There was no income tax effect as the Company maintains a full valuation allowance against its net deferred tax assets.
The following tables present the impact of the restatement on the affected line items of the Company’s previously issued consolidated financial statements (in thousands, except per share amounts):
Consolidated Balance Sheets

June 30, 2024 (Unaudited)
As Reported
Adjustment
As Restated
Assets
Property, plant and equipment, net$549,994 $(97,261)$452,733 
Total Assets761,456 (97,261)664,195 
Liabilities and Stockholders’ Deficit
Stockholders’ Deficit:
Accumulated deficit(3,014,418)(97,261)(3,111,679)
Total Stockholders’ Deficit(1,083,874)(97,261)(1,181,135)
Total Liabilities and Stockholders’ Deficit$761,456 $(97,261)$664,195 
September 30, 2024 (Unaudited)
As Reported
Adjustment
As Restated
Assets
Property, plant and equipment, net$550,432 $(97,261)$453,171 
Total Assets921,851 (97,261)824,590 
Liabilities and Stockholders’ Deficit
Stockholders’ Deficit:
Accumulated deficit(3,469,677)(97,261)(3,566,938)
Total Stockholders’ Deficit(729,395)(97,261)(826,656)
Total Liabilities and Stockholders’ Deficit$921,851 $(97,261)$824,590 

December 31, 2024
As Reported
Adjustment
As Restated
Assets
Property, plant and equipment, net$556,342 $(122,869)$433,473 
Total Assets1,598,815 (122,869)1,475,946 
Liabilities and Stockholders’ Deficit
Stockholders’ Deficit:
Accumulated deficit(3,735,218)(122,869)(3,858,087)
Total Stockholders’ Deficit(820,180)(122,869)(943,049)
Total Liabilities and Stockholders’ Deficit$1,598,815 $(122,869)$1,475,946 
Consolidated Statements of Operations
For the Three Months Ended June 30, 2024
For the Six Months Ended June 30, 2024
As Reported
Adjustment
As Restated
As Reported
Adjustment
As Restated
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Impairment of property, plant and equipment$— 97,261 $97,261 $— 97,261 $97,261 
Operating loss
6,579 (97,261)(90,682)61,806 (97,261)(35,455)
Loss before income taxes
(804,752)(97,261)(902,013)(593,855)(97,261)(691,116)
Net loss
$(804,896)$(97,261)$(902,157)$(594,205)$(97,261)$(691,466)
Net loss per share, basic and diluted
$(4.51)$(0.54)$(5.05)$(2.87)$(0.47)$(3.34)
For the Nine Months Ended September 30, 2024
As Reported
Adjustment
As Restated
(Unaudited)
(Unaudited)
Impairment of property, plant and equipment$— $97,261 $97,261 
Operating loss
20,587 (97,261)(76,674)
Loss before income taxes
(1,048,980)(97,261)(1,146,241)
Net loss
$(1,049,464)$(97,261)$(1,146,725)
Net loss per share, basic and diluted
$(3.71)$(0.38)$(4.09)
For the Three Months Ended December 31, 2024
For the Year Ended December 31, 2024
As Reported
Adjustment
As Restated
As Reported
Adjustment
As Restated
(Unaudited)
(Unaudited)
Impairment of property, plant and equipment$— $25,608 $25,608 $— $122,869 $122,869 
Operating loss
(39,783)(25,608)(65,391)(19,196)(122,869)(142,065)
Loss before income taxes
(265,166)(25,608)(290,774)(1,314,146)(122,869)(1,437,015)
Net loss
$(265,541)$(25,608)$(291,149)$(1,315,005)$(122,869)$(1,437,874)
Net loss per share, basic and diluted
$(0.60)$(0.09)$(0.69)$(4.39)$(0.48)$(4.87)
Consolidated Statements of Stockholders’ Deficit
The impact of the restatement on the Company’s consolidated statements of stockholders’ deficit is limited to the effect on accumulated deficit, as reflected in the consolidated balance sheet tables above. There was no impact to additional paid-in capital, common stock, or any other component of stockholders’ deficit.
Consolidated Statements of Cash Flows
The restatement had no impact on net cash provided by or used in operating, investing, or financing activities for any period presented. Within operating activities, the increase in net loss was offset by a corresponding increase in impairment of property, plant and equipment, a non-cash item added back in the reconciliation of net loss to net cash provided by operating activities.