| 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 | % |
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| 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 Consolidated 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 | | 2024 | | 2025 | | 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 exchange or disposal of property, plant and equipment | 2,933 | | | 509 | | | 7,105 | | | 4,061 | | Selling, general and administrative | 69,354 | | | 40,348 | | | 166,409 | | | 88,655 | | | Operating (loss) income | (57,425) | | | (41,219) | | | (126,305) | | | 20,587 | | | 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 | $ | (146,535) | | | $ | (455,125) | | | $ | (502,278) | | | $ | (1,048,980) | | | | | | | | | |
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