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RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 9 Months Ended
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Sep. 30, 2025
Accounting Changes and Error Corrections [Abstract] |
REVISION 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 of carrying values of assets committed to demolition in connection with the conversion of certain facilities from digital asset mining operations to high-performance computing 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 for the three and nine months ended September 30, 2025. The cumulative impact of the errors on the condensed consolidated balance sheet as of September 30, 2025 resulted in an overstatement of property, plant and equipment, net of approximately $124.7 million and a corresponding understatement of accumulated deficit of the same amount. The impact on the condensed consolidated statements of operations for the three and nine months ended September 30, 2025 was an overstatement of loss on disposal of property, plant and equipment of approximately $2.6 million for the three and nine months ended September 30, 2025, and an understatement of selling, general and administrative expense of approximately $4.4 million for the nine months ended September 30, 2025. The restatement had no impact on total net cash flows; however, the correction resulted in a reclassification from capital expenditures within investing activities to operating activities. The restatement had no impact on revenue, cost of revenue, or income tax expense. There was no income tax expense 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 condensed consolidated financial statements (in thousands, except per share amounts): Condensed Consolidated Balance Sheets
|  | September 30, 2025 (Unaudited)
|  | As Reported |  | Adjustment |  | As Restated
Assets |  |  |  |  |  |
Property, plant and equipment, net |  | $ | 1,078,803 |  |  | $ | (124,678) |  |  | $ | 954,125 |
Total Assets |  | 2,295,980 |  |  | (124,678) |  |  | 2,171,302 |
Liabilities and Stockholders’ Deficit |  |  |  |  |  |
Stockholders’ Deficit: |  |  |  |  |  |
Accumulated deficit |  | (4,237,984) |  |  | (124,678) |  |  | (4,362,662) |
Total Stockholders’ Deficit |  | (1,127,960) |  |  | (124,678) |  |  | (1,252,638) |
Total Liabilities and Stockholders’ Deficit |  | $ | 2,295,980 |  |  | $ | (124,678) |  |  | $ | 2,171,302 |
Condensed Consolidated Statements of Operations
|  | For the Three Months Ended September 30, 2025 |  | For the Nine Months Ended September 30, 2025
|  | As Reported |  | Adjustment |  | As Restated |  | As Reported |  | Adjustment |  | As Restated
|  | (Unaudited) |  |  |  | (Unaudited) |  | (Unaudited) |  |  |  | (Unaudited)
Loss on disposal of property, plant and equipment |  | $ | 2,933 |  |  | $ | (2,633) |  |  | $ | 300 |  |  | $ | 7,105 |  |  | $ | (2,633) |  |  | $ | 4,472 |
Selling, general and administrative |  | 69,354 |  |  | — |  |  | 69,354 |  |  | 166,409 |  |  | 4,442 |  |  | 170,851 |
Operating loss |  | (57,425) |  |  | 2,633 |  |  | (54,792) |  |  | (126,305) |  |  | (1,809) |  |  | (128,114) |
Loss before income taxes |  | (146,535) |  |  | 2,633 |  |  | (143,902) |  |  | (502,278) |  |  | (1,809) |  |  | (504,087) |
Net loss |  | $ | (146,660) |  |  | $ | 2,633 |  |  | $ | (144,027) |  |  | $ | (502,766) |  |  | $ | (1,809) |  |  | $ | (504,575) |
Net loss per share, basic and diluted |  | $ | (0.46) |  |  | $ | 0.01 |  |  | $ | (0.45) |  |  | $ | (1.48) |  |  | $ | — |  |  | $ | (1.48) |
Condensed Consolidated Statements of Cash Flows
|  | For the Nine Months Ended September 30, 2025
|  | As Reported |  | Adjustment |  | As Restated
|  | (Unaudited) |  |  |  | (Unaudited)
Cash flows from Operating Activities: |  |  |  |  |  |
Net loss |  | (502,766) |  |  | (1,809) |  |  | (504,575) |
Losses on disposal of property, plant and equipment |  | $ | 7,105 |  |  | (2,633) |  |  | 4,472 |
Net cash (used in) provided by operating activities |  | $ | 125,182 |  |  | $ | (4,442) |  |  | 120,740 |
Cash flows from Investing Activities: |  |  |  |  |  |
Purchases of property, plant and equipment |  | (454,194) |  |  | 4,442 |  |  | (449,752) |
Net cash used in investing activities |  | $ | (467,425) |  |  | $ | 4,442 |  |  | (462,983) |
Condensed Consolidated Statements of Stockholders’ Deficit The impact of the restatement on the Company’s condensed consolidated statements of stockholders’ deficit is limited to the effect on accumulated deficit, as reflected in the condensed consolidated balance sheet table above. There was no impact to additional paid-in capital, common stock, or any other component of stockholders’ deficit.

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