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Investments in Equity Investees | 3 Months Ended
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Mar. 31, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Investments 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”). During fiscal year 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 the Data Center LLCs, which recorded the contributions of equipment from the Company at the historical cost paid by the Company to obtain the equipment. As the Data Center LLCs 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, 2024, the Company had remaining basis differences totaling approximately $23.1 million that have not yet been accreted. Activity in the Company’s investments in equity investees during the three months ended March 31, 2024, and 2023, consisted of the following (in thousands):
Balance as of December 31, 2022 |  | $ | 37,478 |
Cost of contributed mining equipment and other capital contributions |  |  | 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 |
Balance as of December 31, 2023 |  | $ | 35,258 |
Cost of contributed mining equipment and other capital contributions |  |  | 18,319 |
Accretion of basis differences related to miner contributions |  |  | 1,671 |
Capital distributions |  |  | - |
Bitcoin received from equity investees |  |  | (1,694 | )
Equity in net losses of equity investees |  |  | (933 | )
Balance as of March 31, 2024 |  | $ | 52,621 |

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- 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 -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 323 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481543/323-740-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org//323/tableOfContent + Details
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