XML 25 R15.htm IDEA: XBRL DOCUMENT
v3.23.1

Investment in Equity Investees | 3 Months Ended
--- | ---
Mar. 31, 2023
Equity Method Investments and Joint Ventures [Abstract] |
Investment in Equity Investees | NOTE 7. INVESTMENTS IN EQUITY INVESTEES The Company uses the equity method of accounting to account for its 49% equity interest in its partially owned mining operations Alborz LLC, Bear LLC and Chief, LLC (the “Data Center LLCs”). The Company recognized a total of approximately $2.4 million and $0.2 million of equity in the net losses of its equity investees in the condensed consolidated statements of operations during the three months ended March 31, 2023 and 2022, respectively. Cryptocurrency mining operations for the Data Center LLCs consisted only of minimal activity at the Alborz Facility for the three months ended March 31, 2022. During the year ended December 31, 2022, the Company contributed miners and mining equipment to the Alborz, Bear and Chief Facilities. The majority of these contributed miners had a fair value that was lower than the cost paid by the Company to obtain them, and the Company recognized losses at the time of the contributions, resulting in basis differences related to the Company’s investments in Alborz LLC, Bear LLC and Chief LLC, all of which recorded the contributions of equipment from the Company at the historical cost paid by the Company to obtain the equipment. As Alborz LLC, Bear LLC and Chief LLC depreciate the historical cost of these miners on their respective financial statements over the expected depreciation period of five years, the Company accretes these basis differences over the same period and records the accretion amount for each reporting period within equity in losses of equity investees on its statements of operations until these miners are fully depreciated and the corresponding basis differences are fully accreted. As of March 31, 2023, the Company had remaining basis differences totaling approximately $29.7 million that have not yet been accreted. Accretion recorded by the Company during the three months ended March 31, 2023 is shown in the table below and was recorded within equity in the net losses of equity investees on the statement of operations. Activity in the Company’s investments in equity investees during the three months ended March 31, 2023 consisted of the following (in thousands):
Balance as of January 1, 2023 |  | $ | 37,478 |
Cost of miners and mining equipment contributed |  |  | 1,925 |
Accretion of basis differences related to miner contributions |  |  | 1,670 |
Capital distributions |  |  | (3,807 | )
Bitcoin received from equity investees |  |  | (317 | )
Equity in net losses of equity investees |  |  | (2,420 | )
Balance as of March 31, 2023 |  | $ | 34,529 |

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI https://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration