| SEGMENT REPORTING |
23. SEGMENT REPORTING The Group continually monitors the reportable segments for changes in facts and circumstances to determine whether changes in the identification or aggregation of operating segments are necessary. In December 2023, the Group entered into an agreement to sell its mining pool business, and classified it as discontinued operations in the financial statements for all periods presented. In accordance with ASC 280, “Segment Reporting”, the Group’s chief operating decision maker has been identified as the Board of Directors and the chief executive officer, who makes resource allocation decisions and assesses performance based on the different business operating results. As a result, the Group has two reportable segments, including the data center business and the cryptocurrency mining. The Group’s other business, mainly consisting of online gaming in Europe, was not material for the years ended December 31, 2023, 2024 and 2025. The Group does not allocate assets to the reporting segments because its assets are managed on an entity-wide basis and, therefore, does not separately disclose the total assets of its reportable operating segments. 23. SEGMENT REPORTING (continued) The following table presents summary information by segment for continuing operations for the years ended December 31, 2023, 2024 and 2025, respectively. | | | | | | | | | For the years ended December 31, | | | 2023 | | 2024 | | 2025 | | | US$ | | US$ | | US$ | Reportable segment revenues: | | | | | | | Data center | | 33,482 | | 28,389 | | 23,898 | Cryptocurrency mining | | 21,562 | | 17,091 | | 6,670 | Inter-segment1 | | (11,943) | | (12,558) | | (7,568) | Total segment and consolidated revenues | | 43,101 | | 32,922 | | 23,000 | Reportable segment cost of revenue-exclusive depreciation and amortization: | | | | | | | Data center | | (21,834) | | (16,877) | | (23,697) | Cryptocurrency mining | | (19,216) | | (14,263) | | (7,587) | Inter-segment1 | | 11,943 | | 12,558 | | 7,568 | Total segment and consolidated cost of revenue-exclusive depreciation and amortization | | (29,107) | | (18,582) | | (23,716) | Reportable segment cost of revenue-depreciation and amortization: | | | | | | | Data center | | (2,480) | | (2,642) | | (2,643) | Cryptocurrency mining | | (8,468) | | (8,713) | | (7,430) | Total segment and consolidated cost of revenue-depreciation and amortization | | (10,948) | | (11,355) | | (10,073) | Total segment and consolidated cost | | (40,055) | | (29,937) | | (33,789) | Reportable segment gross (loss) profit2: | | | | | | | Data center | | (2,775) | | (3,688) | | (10,010) | Cryptocurrency mining | | 5,821 | | 6,673 | | (779) | Total segment gross profit (loss) | | 3,046 | | 2,985 | | (10,789) | General and administrative expenses - payroll: | | | | | | | Data center | | (2,033) | | (1,951) | | (2,195) | Cryptocurrency mining | | (13) | | (52) | | (193) | Others | | (3,921) | | (3,672) | | (3,005) | Total general and administrative expenses - payroll | | (5,967) | | (5,675) | | (5,393) | Reconciling items: | | | | | | | Sales and marketing expenses | | (153) | | (54) | | (47) | General and administrative expenses - others | | (12,498) | | (8,034) | | (12,858) | Service development expenses | | (874) | | (69) | | — | Operating expenses | | (19,492) | | (13,832) | | (18,298) | Other operating income | | 180 | | 214 | | 9,715 | Other operating expenses | | (13,642) | | (613) | | (3,035) | Net gain on disposal of cryptocurrency assets | | 7,074 | | — | | — | Impairment of cryptocurrency assets | | (2,359) | | — | | — | Changes in fair value of cryptocurrency assets | | — | | 3,203 | | (4,356) | Impairment of property and equipment: | | | | | | | Data center | | — | | — | | — | Cryptocurrency mining | | — | | — | | (8,764) | Impairment of property and equipment, total | | — | | — | | (8,764) | Impairment of intangible assets: | | | | | | | Data center | | — | | — | | (1,405) | Cryptocurrency mining | | — | | — | | — | Impairment of intangible assets, total | | — | | — | | (1,405) | Gain on remeasurement of unfavorable contract: | | | | | | | Data center | | — | | — | | 2,225 | Cryptocurrency mining | | — | | — | | — | Gain on remeasurement of unfavorable contract, total | | — | | — | | 2,225 | Changes in fair value of payables settled by cryptocurrency assets | | — | | 37 | | 7 | Operating loss from continuing operations | | (25,193) | | (8,006) | | (34,700) | Other income, net | | 691 | | 627 | | 54 | Interest income | | 242 | | 56 | | 146 | Loss from equity method investments | | (295) | | (20) | | (1) | Impairment of long-term investments | | (1,408) | | (132) | | — | Gain from disposal of long-term investments | | 614 | | — | | — | Gain from short-term investments | | — | | 156 | | — | Change in fair value of derivative instruments | | (35) | | 311 | | 21 | Net loss from continuing operations | | (25,384) | | (7,008) | | (34,480) |
| 1 | The inter-segment eliminations mainly consist of data center revenue of US$11,943, US$12,558 and US$7,568 generated from data center services provided by data center segment to cryptocurrency mining segment for the years ended December 31, 2023, 2024 and 2025, respectively, and corresponding data center services cost of US$11,943, US$12,558 and US$7,568 incurred by cryptocurrency mining segment for the years ended December 31, 2023 2024 and 2025, respectively, which have been eliminated upon consolidation. |
23. SEGMENT REPORTING (continued) 2 | The segment gross (loss) profit are presented after inter-segment eliminations. |
The following table presents the revenue from continuing operations by geographical locations for the years ended December 31, 2023, 2024 and 2025, respectively. | | | | | | | | | For the years ended December 31, | Revenues | | 2023 | | 2024 | | 2025 | | | US$ | | US$ | | US$ | Hong Kong | | 21,562 | | 17,091 | | 6,670 | USA | | 33,482 | | 28,389 | | 23,898 | Inter-segment | | (11,943) | | (12,558) | | (7,568) | | | 43,101 | | 32,922 | | 23,000 |
The following table presents the long-lived assets (including property and equipment, net and right-of-use assets) by geographical locations as of December 31, 2024 and December 31, 2025, respectively. | | | | | Long-lived assets | | As of December 31, 2024 | | As of December 31, 2025 | | | US$ | | US$ | USA | | 18,158 | | 6,968 | Hong Kong | | 140 | | 44 | Mainland China | | 650 | | 1,037 | Ethiopia | | 3,575 | | 6,112 | | | 22,523 | | 14,161 |
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