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Segment Information | 6 Months Ended
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Jun. 30, 2025
Segment Information |
Segment Information | Note 19. Segment Information The Company has two reportable segments: Bitcoin Mining and Engineering. The reportable segments are identified based on the types of services performed. No operating segments have been aggregated to form the reportable segments. Gross profit (loss) is the segment performance measure the chief operating decision maker (“CODM”) uses to assess the Company’s reportable segments, and is calculated before the elimination of intersegment profits. Prior to 2024, the Company had a Data Center Hosting reportable segment but has since terminated all contracts with its Data Center Hosting customers. Commencing with the three months ended March 31, 2024, the CODM ceased analyzing the performance of the Data Center Hosting operations and the Company ceased reporting Data Center Hosting as a separate reportable business segment. The Company has no plans to offer data center hosting services to new customers. All residual revenue and costs of revenue related to Data Center Hosting incurred during the three and six months ended June 30, 2025 and 2024 are included in Revenue: Other and Cost of Revenue: Other on the Condensed Consolidated Statements of Operations. Other than the $97.2 million of goodwill from the Block Mining Acquisition allocated to the Bitcoin Mining segment, and $25.3 million of goodwill from the E4A Solutions Acquisition allocated to the Engineering segment, the Company does not allocate assets to the reporting segments because its assets are managed on an entity-wide basis and, therefore, does not separately disclose the total assets of its reportable operating segments. The Bitcoin Mining segment generates revenue from the bitcoin the Company earns through its Bitcoin Mining activities. The Engineering segment generates revenue through customer contracts for custom-engineered electrical products and services. All Revenue: Other revenue is from external customers. All revenue and cost of revenue from intersegment transactions have been eliminated in the Condensed Consolidated Statements of Operations. The following tables present segment revenue and segment gross profit (loss), including the significant expense items reviewed by the CODM: Three Months Ended June 30, 2025
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Bitcoin Mining | ​ | Engineering | ​ | Total
Revenue from external customers | ​ | $ | 140,889 | ​ | $ | 10,576 | ​ | $ | 151,465
Intersegment revenue | ​ | ​ | — | ​ | ​ | 5,010 | ​ | ​ | 5,010
Segment revenue | ​ | ​ | 140,889 | ​ | ​ | 15,586 | ​ | ​ | 156,475
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Reconciliation of revenue | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Other revenue(a) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 1,523
Elimination of intersegment revenue | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (5,010)
Total consolidated revenue | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 152,988
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Segment cost of revenue: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Power | ​ | ​ | 62,170 | ​ | ​ | — | ​ | ​ | 62,170
Compensation | ​ | ​ | 4,686 | ​ | ​ | — | ​ | ​ | 4,686
Insurance on miners | ​ | ​ | 1,462 | ​ | ​ | — | ​ | ​ | 1,462
Ground rent and related water and property tax | ​ | ​ | 5,719 | ​ | ​ | — | ​ | ​ | 5,719
Materials | ​ | ​ | — | ​ | ​ | 2,165 | ​ | ​ | 2,165
Labor | ​ | ​ | — | ​ | ​ | 805 | ​ | ​ | 805
Other segment items(b) | ​ | ​ | 4,139 | ​ | ​ | 6,888 | ​ | ​ | 11,026
Segment gross profit (loss) | ​ | $ | 62,714 | ​ | $ | 5,728 | ​ | $ | 68,442
​ ​ Three Months Ended June 30, 2024
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Bitcoin Mining | ​ | Engineering | ​ | Total
Revenue from external customers | ​ | $ | 55,764 | ​ | $ | 9,627 | ​ | $ | 65,391
Intersegment revenue | ​ | ​ | — | ​ | ​ | 2,755 | ​ | ​ | 2,755
Segment revenue | ​ | ​ | 55,764 | ​ | ​ | 12,382 | ​ | ​ | 68,146
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Reconciliation of revenue | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Other revenue(a) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 4,627
Elimination of intersegment revenue | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,755)
Total consolidated revenue | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 70,018
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Segment cost of revenue: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Power | ​ | ​ | 26,465 | ​ | ​ | — | ​ | ​ | 26,465
Compensation | ​ | ​ | 2,821 | ​ | ​ | — | ​ | ​ | 2,821
Insurance on miners | ​ | ​ | 1,639 | ​ | ​ | — | ​ | ​ | 1,639
Ground rent and related water and property tax | ​ | ​ | 1,274 | ​ | ​ | — | ​ | ​ | 1,274
Materials | ​ | ​ | — | ​ | ​ | 5,233 | ​ | ​ | 5,233
Labor | ​ | ​ | — | ​ | ​ | 1,476 | ​ | ​ | 1,476
Other segment items(b) | ​ | ​ | 3,076 | ​ | ​ | 1,552 | ​ | ​ | 4,628
Segment gross profit (loss) | ​ | $ | 20,489 | ​ | $ | 4,121 | ​ | $ | 24,610
​ Six Months Ended June 30, 2025
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Bitcoin Mining | ​ | Engineering | ​ | Total
Revenue from external customers | ​ | $ | 283,748 | ​ | $ | 24,496 | ​ | $ | 308,244
Intersegment revenue | ​ | ​ | — | ​ | ​ | 11,334 | ​ | ​ | 11,334
Segment revenue | ​ | ​ | 283,748 | ​ | ​ | 35,830 | ​ | ​ | 319,578
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Reconciliation of revenue | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Other revenue(a) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,131
Elimination of intersegment revenue | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (11,334)
Total consolidated revenue | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 314,375
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Less: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Power | ​ | ​ | 123,999 | ​ | ​ | — | ​ | ​ | 123,999
Compensation | ​ | ​ | 9,131 | ​ | ​ | — | ​ | ​ | 9,131
Insurance on miners | ​ | ​ | 2,924 | ​ | ​ | — | ​ | ​ | 2,924
Ground rent and related water and property tax | ​ | ​ | 7,862 | ​ | ​ | — | ​ | ​ | 7,862
Materials | ​ | ​ | — | ​ | ​ | 5,811 | ​ | ​ | 5,811
Labor | ​ | ​ | — | ​ | ​ | 1,967 | ​ | ​ | 1,967
Other segment items(b) | ​ | ​ | 9,077 | ​ | ​ | 13,886 | ​ | ​ | 22,963
Segment gross profit (loss) | ​ | $ | 130,755 | ​ | $ | 14,166 | ​ | $ | 144,921
​ ​ Six Months Ended June 30, 2024
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Bitcoin Mining | ​ | Engineering | ​ | Total
Revenue from external customers | ​ | $ | 127,160 | ​ | $ | 14,302 | ​ | $ | 141,462
Intersegment revenue | ​ | ​ | — | ​ | ​ | 3,440 | ​ | ​ | 3,440
Segment revenue | ​ | ​ | 127,160 | ​ | ​ | 17,742 | ​ | ​ | 144,902
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Reconciliation of revenue | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Other revenue(a) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 7,852
Elimination of intersegment revenue | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,440)
Total consolidated revenue | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 149,314
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Segment cost of revenue: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Power | ​ | ​ | 54,463 | ​ | ​ | — | ​ | ​ | 54,463
Compensation | ​ | ​ | 5,465 | ​ | ​ | — | ​ | ​ | 5,465
Insurance on miners | ​ | ​ | 3,375 | ​ | ​ | — | ​ | ​ | 3,375
Ground rent and related water and property tax | ​ | ​ | 2,606 | ​ | ​ | — | ​ | ​ | 2,606
Materials | ​ | ​ | — | ​ | ​ | 6,557 | ​ | ​ | 6,557
Labor | ​ | ​ | — | ​ | ​ | 2,365 | ​ | ​ | 2,365
Other segment items(b) | ​ | ​ | 5,916 | ​ | ​ | 5,357 | ​ | ​ | 11,272
Segment gross profit (loss) | ​ | $ | 55,336 | ​ | $ | 3,463 | ​ | $ | 58,799
​
| (a) | Other revenue is primarily attributable to Data Center Hosting revenue and is therefore not included in the total for segment gross profit (loss).
| (b) | For each reportable segment, the other segment items category primarily consists of:
Bitcoin Mining: Bitcoin miner and network repair and maintenance costs. Engineering: Manufacturing overhead costs. ​ The following table presents the reconciliation of segment gross profit (loss) to net income (loss) before taxes: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30,
​ |  | 2025 |  | 2024 |  | 2025 |  | 2024
Segment gross profit (loss) | ​ | $ | 68,442 | ​ | $ | 24,610 | ​ | $ | 144,921 | ​ | $ | 58,799
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Reconciling Items: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Other profit (loss)(a) | ​ | ​ | (1,483) | ​ | ​ | (5,478) | ​ | ​ | (5,840) | ​ | ​ | (6,788)
Elimination of intersegment profits | ​ |  | (5,010) | ​ |  | (2,755) | ​ |  | (11,334) | ​ |  | (3,440)
Acquisition-related costs | ​ |  | (111) | ​ |  | — | ​ |  | (187) | ​ |  | —
Selling, general, and administrative | ​ |  | (75,902) | ​ |  | (61,189) | ​ |  | (147,350) | ​ |  | (118,841)
Depreciation and amortization | ​ |  | (83,197) | ​ |  | (37,326) | ​ |  | (161,123) | ​ |  | (69,669)
Change in fair value of bitcoin | ​ | ​ | 470,812 | ​ | ​ | (76,403) | ​ | ​ | 262,772 | ​ | ​ | 157,677
Change in fair value of derivative asset | ​ |  | (42,747) | ​ |  | 27,484 | ​ |  | (853) | ​ |  | 47,716
Power curtailment credits | ​ | ​ | 8,313 | ​ | ​ | 13,897 | ​ | ​ | 16,114 | ​ | ​ | 19,028
Change in fair value of contingent consideration | ​ |  | 9,390 | ​ |  | — | ​ |  | 17,642 | ​ |  | —
(Loss) gain on sale/exchange of equipment | ​ | ​ | (350) | ​ | ​ | (68) | ​ | ​ | (479) | ​ | ​ | (68)
Casualty-related (charges) recoveries, net | ​ |  | 119 | ​ |  | 187 | ​ |  | 119 | ​ |  | 2,487
Interest income | ​ |  | 3,334 | ​ |  | 8,466 | ​ |  | 6,731 | ​ |  | 16,655
Interest expense | ​ | ​ | (6,093) | ​ |  | (314) | ​ | ​ | (8,401) | ​ | ​ | (698)
Unrealized gain (loss) on equity method investment - marketable securities | ​ |  | 6,143 | ​ |  | 24,462 | ​ |  | (57,095) | ​ |  | 24,462
Loss on contract settlement | ​ | ​ | (158,137) | ​ |  | — | ​ |  | (158,137) | ​ |  | —
Gain on acquisition post-close dispute settlement | ​ | ​ | 26,007 | ​ |  | — | ​ |  | 26,007 | ​ |  | —
Other income (expense) | ​ |  | 244 | ​ |  | 33 | ​ |  | 337 | ​ |  | 41
Net income (loss) before taxes | ​ | $ | 219,774 | ​ | $ | (84,394) | ​ | $ | (76,156) | ​ | $ | 127,361
​ ​
| (a) | Other profit (loss) is primarily attributable to Data Center Hosting activity and is therefore not included in the total for segment gross profit (loss).
​ Concentrations ​ During the three and six months ended June 30, 2025 and 2024, aside from the Bitcoin Mining revenue generated as a result of the Company’s participation in a mining pool, no single customer or related group of customers contributed 10% or more of the Company’s total consolidated revenue. During the three and six months ended June 30, 2025 and 2024, Bitcoin Mining power was primarily obtained from ERCOT.

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