SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 2025

Schedule of Revenue and Gross Profit by Reporting Segment

The following table presents revenue and gross profit by reportable segment for the periods presented (in thousands):


	Three Months Ended March 31,
		2025			2024
Digital Asset Self-Mining Segment		(in thousands, except percentages)
Digital asset self-mining revenue		$	67,179		$	149,959
Cost of digital asset self-mining:
Power fees		30,319			44,983
Depreciation expense		19,259			27,478
Employee compensation		7,335			4,680
Facility operations expense		3,280			2,950
Other segment items		977			1,473
Total cost of digital asset self-mining		61,170			81,564
Digital Asset Self-Mining gross profit		$	6,009		$	68,395
Digital Asset Self-Mining gross margin		9		%	46		%

Digital Asset Hosted Mining Segment
Digital asset hosted mining revenue from customers		$	3,773		$	29,332
Cost of digital asset hosted mining services:
Power fees		1,367			13,494
Depreciation expense		145			1,270
Employee compensation		332			1,404
Facility operations expense		148			885
Other segment items		44			3,028
Total cost of digital asset hosted mining services		2,036			20,081
Digital Asset Hosted Mining gross profit		$	1,737		$	9,251
Digital Asset Hosted Mining gross margin		46		%	32		%

Colocation Segment
Colocation revenue:
License fees		$	5,995		$	—
Maintenance and other		(8)			—
Licensing revenue		5,987			—
Power fees passed through to customer		2,586			—
Total Colocation revenue		8,573			—
Cost of Colocation services:
Depreciation expense		67			—
Employee compensation		1,295			—
Facility operations expense		3,852			—
Other segment items		306			—
Cost of licensing revenue		5,520			—
Power fees passed through to customer		2,586			—
Total cost of Colocation services		8,106			—
Colocation gross profit		$	467		$	—
Colocation licensing gross margin		8		%	—		%
Colocation gross margin		5		%	—		%

Consolidated
Consolidated total revenue		$	79,525		$	179,291
Consolidated cost of revenue		$	71,312		$	101,645
Consolidated gross profit		$	8,213		$	77,646
Consolidated gross margin		10		%	43		%

Schedules of Reconciliation of Reportable Segment Gross Profit to Loss Before Income Taxes

A reconciliation of the reportable segment gross profit to income before income taxes included in the Company’s condensed consolidated statements of operations for the three months ended March 31, 2025 and 2024, is as follows (in thousands):


	Three Months Ended March 31,
		2025 (As Restated)		2024
Reportable segment gross profit		$	8,213	$	77,646
Change in fair value of digital assets		10,688		—
Gain from sales of digital assets		—		(543)
Change in fair value of energy derivatives		—		2,218
Losses on disposal of property, plant and equipment		6		3,820
Selling, general and administrative		44,557		16,924
Operating (loss) income		(47,038)		55,227
Non-operating expenses (income), net:
Loss on debt extinguishment		—		50
Interest (income) expense, net		(2,187)		14,087
Change in fair value of warrants and contingent value rights		(621,464)		(60,114)
Reorganization items, net		—		(111,439)
Other non-operating expense, net		157		1,746
Total non-operating income, net		(623,494)		(155,670)
Income before income taxes		$	576,456	$	210,897

Schedules of Customer Concentration Risk

For the three months ended March 31, 2025, and 2024, the concentration of customers comprising 10% or more of the Company’s Digital Asset Self-Mining, Digital Asset Hosted Mining, and Colocation segment revenue were as follows:


	Three Months Ended March 31,				Three Months Ended March 31,				Three Months Ended March 31,
	2025		2024		2025		2024		2025		2024
	Percent of Digital Asset Self-Mining segment revenue:				Percent of Digital Asset Hosted Mining segment revenue:				Percent of Colocation segment revenue:
Customer

F	—	%	—	%	81	%	52	%	—	%	—	%
G	100	%	100	%	—	%	—	%	—	%	—	%
H	—	%	—	%	—	%	25	%	—	%	—	%
I	—	%	—	%	—	%	10	%	—	%	—	%
J	—	%	—	%	—	%	—	%	100	%	100	%
K	—	%	—	%	10	%	—	%	—	%	—	%