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SEGMENT REPORTING (Tables) | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
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 September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Digital Asset Self-Mining Segment | (in thousands, except percentages)
Digital asset self-mining revenue | $ | 57,438 |  |  | $ | 68,138 |  |  | $ | 187,041 |  |  | $ | 328,840 |
Cost of digital asset self-mining: |  |  |  |  |  |  |
Power fees | 33,280 |  |  | 37,426 |  |  | 94,319 |  |  | 123,584 |
Depreciation expense | 15,474 |  |  | 27,415 |  |  | 52,792 |  |  | 83,067 |
Employee compensation | 7,803 |  |  | 4,995 |  |  | 23,411 |  |  | 15,712 |
Facility operations expense | 2,089 |  |  | 3,514 |  |  | 7,458 |  |  | 9,695 |
Other segment items | 792 |  |  | 1,205 |  |  | 2,217 |  |  | 4,062 |
Total cost of digital asset self-mining | 59,438 |  |  | 74,555 |  |  | 180,197 |  |  | 236,120 |
Digital Asset Self-Mining gross (loss) profit | $ | (2,000) |  |  | $ | (6,417) |  |  | $ | 6,844 |  |  | $ | 92,720 |
Digital Asset Self-Mining gross margin | (3) | % |  | (9) | % |  | 4 | % |  | 28 | %
Digital Asset Hosted Mining Segment |  |  |  |  |  |  |
Digital asset hosted mining revenue from customers | $ | 8,714 |  |  | $ | 16,878 |  |  | $ | 18,131 |  |  | $ | 71,050 |
Cost of digital asset hosted mining services: |  |  |  |  |  |  |
Power fees | 4,793 |  |  | 7,875 |  |  | 9,367 |  |  | 32,670 |
Depreciation expense | 376 |  |  | 934 |  |  | 856 |  |  | 3,245 |
Employee compensation | 1,115 |  |  | 1,200 |  |  | 2,225 |  |  | 4,244 |
Facility operations expense | 297 |  |  | 734 |  |  | 665 |  |  | 2,499 |
Other segment items | 113 |  |  | 1,171 |  |  | 201 |  |  | 6,730 |
Total cost of digital asset hosted mining services | 6,694 |  |  | 11,914 |  |  | 13,314 |  |  | 49,388 |
Digital Asset Hosted Mining gross profit | $ | 2,020 |  |  | $ | 4,964 |  |  | $ | 4,817 |  |  | $ | 21,662 |
Digital Asset Hosted Mining gross margin | 23 | % |  | 29 | % |  | 27 | % |  | 30 | %
Colocation Segment |  |  |  |  |  |  |
Colocation revenue: |  |  |  |  |  |  |
License fees | $ | 9,848 |  |  | $ | 7,806 |  |  | $ | 22,853 |  |  | $ | 11,625 |
Maintenance and other | 1,550 |  |  | 45 |  |  | 1,628 |  |  | 82 |
Licensing revenue | 11,398 |  |  | 7,851 |  |  | 24,481 |  |  | 11,707 |
Power fees passed through to customer | 3,553 |  |  | 2,487 |  |  | 9,603 |  |  | 4,150 |
Total Colocation revenue | 14,951 |  |  | 10,338 |  |  | 34,084 |  |  | 15,857 |
Cost of Colocation services: |  |  |  |  |  |  |
Depreciation expense | 219 |  |  | 42 |  |  | 389 |  |  | 57 |
Employee compensation | 2,209 |  |  | 1,399 |  |  | 4,651 |  |  | 1,477 |
Facility operations expense | 4,383 |  |  | 4,863 |  |  | 12,570 |  |  | 7,964 |
Other segment items | 702 |  |  | 250 |  |  | 1,388 |  |  | 284 |
Cost of licensing revenue | 7,513 |  |  | 6,554 |  |  | 18,998 |  |  | 9,782 |
Power fees passed through to customer | 3,553 |  |  | 2,487 |  |  | 9,604 |  |  | 4,150 |
Total cost of Colocation services | 11,066 |  |  | 9,041 |  |  | 28,602 |  |  | 13,932 |
Colocation gross profit | $ | 3,885 |  |  | $ | 1,297 |  |  | $ | 5,482 |  |  | $ | 1,925 |
Colocation licensing gross margin | 34 | % |  | 17 | % |  | 22 | % |  | 16 | %
Colocation gross margin | 26 | % |  | 13 | % |  | 16 | % |  | 12 | %
Consolidated |  |  |  |  |  |  |
Consolidated total revenue | $ | 81,103 |  |  | $ | 95,354 |  |  | $ | 239,256 |  |  | $ | 415,747 |
Consolidated cost of revenue | $ | 77,198 |  |  | $ | 95,510 |  |  | $ | 222,113 |  |  | $ | 299,440 |
Consolidated gross profit | $ | 3,905 |  |  | $ | (156) |  |  | $ | 17,143 |  |  | $ | 116,307 |
Consolidated gross margin | 5 | % |  | — | % |  | 7 | % |  | 28 | %
Schedules of Reconciliation of Reportable Segment Gross Profit to Loss Before Income Taxes | A reconciliation of the reportable segment gross profit (loss) to loss before income taxes included in the Company’s condensed c onsolidated statements of operations for the three and nine months ended September 30, 2025 and 2024, is as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 (As Restated) |  | 2024 |  | 2025 (As Restated) |  | 2024
Reportable segment gross profit (loss) | $ | 3,905 |  |  | $ | (156) |  |  | $ | 17,143 |  |  | $ | 116,307 |
(Increase) decrease in fair value of digital assets | (10,957) |  |  | 206 |  |  | (30,066) |  |  | 247 |
Decrease in fair value of energy derivatives | — |  |  | — |  |  | — |  |  | 2,757 |
Loss on disposal of property, plant and equipment | 300 |  |  | 509 |  |  | 4,472 |  |  | 4,061 |
Impairment of property, plant and equipment | — |  |  | — |  |  | — |  |  | 97,261 |
Selling, general and administrative | 69,354 |  |  | 40,348 |  |  | 170,851 |  |  | 88,655 |
Operating loss | (54,792) |  |  | (41,219) |  |  | (128,114) |  |  | (76,674) |
Non-operating expense (income), net: |  |  |  |  |  |  |
Loss on debt extinguishment | — |  |  | 317 |  |  | 1,377 |  |  | 487 |
Interest (income) expense, net | (821) |  |  | 7,072 |  |  | (4,193) |  |  | 35,934 |
Change in fair value of warrants and contingent value rights | 74,864 |  |  | 408,520 |  |  | 363,358 |  |  | 1,144,441 |
Reorganization items, net | — |  |  | — |  |  | — |  |  | (111,439) |
Loss on legal settlements | 15,075 |  |  | 356 |  |  | 15,504 |  |  | 2,070 |
Other non-operating income, net | (8) |  |  | (2,359) |  |  | (73) |  |  | (1,926) |
Total non-operating expense, net | 89,110 |  |  | 413,906 |  |  | 375,973 |  |  | 1,069,567 |
Loss before income taxes | $ | (143,902) |  |  | $ | (455,125) |  |  | $ | (504,087) |  |  | $ | (1,146,241) |
Schedules of Customer Concentration Risk | For the three and nine months ended September 30, 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 September 30, |  | Three Months Ended September 30, |  | Three Months Ended September 30,
| 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 | N/A |  | N/A |  | 23 | % |  | 73 | % |  | N/A |  | N/A
G | 100 | % |  | 100 | % |  | N/A |  | N/A |  | N/A |  | N/A
H | N/A |  | N/A |  | N/A |  | 19 | % |  | N/A |  | N/A
J | N/A |  | N/A |  | N/A |  | N/A |  | 100 | % |  | 100 | %
L | N/A |  | N/A |  | 77 | % |  | N/A |  | N/A |  | N/A
| Nine Months Ended September 30, |  | Nine Months Ended September 30, |  | Nine Months Ended September 30,
| 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 | N/A |  | N/A |  | 42 | % |  | 59 | % |  | N/A |  | N/A
G | 100 | % |  | 100 | % |  | N/A |  | N/A |  | N/A |  | N/A
H | N/A |  | N/A |  | N/A |  | 23 | % |  | N/A |  | N/A
J | N/A |  | N/A |  | N/A |  | N/A |  | 100 | % |  | 100 | %
L | N/A |  | N/A |  | 54 | % |  | N/A |  | N/A |  | N/A

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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