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Digital Assets
6 Months Ended
Jun. 30, 2021
Intangible Assets Net Excluding Goodwill [Abstract]  
Digital Assets

(3) Digital Assets

 

The Company accounts for its digital assets as indefinite-lived intangible assets in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other.  The Company’s digital assets are initially recorded at cost. Subsequently, they are measured at cost, net of any impairment losses incurred since acquisition.  During the six months ended June 30, 2021, the Company purchased approximately 34,616 bitcoins for $1.616 billion in cash, including cash from the net proceeds related to the issuance of its convertible senior notes due 2027 and its senior secured notes due 2028. During the three and six months ended June 30, 2021, the Company incurred $424.8 million and $618.9 million, respectively, of impairment losses on its bitcoin, which were recognized as “Digital asset impairment losses” in the Company’s Consolidated Statement of Operations. As of June 30, 2021, the carrying value of the Company’s approximately 105,085 bitcoins was $2.051 billion, which reflects cumulative impairments of $689.6 million. As of December 31, 2020, the carrying value of the Company’s approximately 70,469 bitcoins was $1.054 billion, which reflected cumulative impairments of $70.7 million. The carrying value represents the lowest fair value (based on Level 1 inputs in the fair value hierarchy) of the bitcoins at any time since their acquisition. Therefore, these fair value measurements were made during the period from their acquisition through June 30, 2021 or December 31, 2020, respectively, and not as of June 30, 2021 or December 31, 2020, respectively.  The Company did not sell any of its bitcoins during the three and six months ended June 30, 2021.