Note 4. Discontinued operations On March 4, 2024, the Company announced the closure of its Drumheller, Alberta mining site after analysis of the Company’s operations. It was determined that the profitability of the Drumheller site had been impacted significantly by various factors, including elevated energy costs and underlying voltage issues. The Company maintains its lease at the site and will consider re-energizing the site if market conditions improve. The table below outlines the results of discontinued operations: | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | (in USD thousands) | | 2025 | | 2024 | | 2025 | | 2024 | Revenue: | | | | | | | | | | | | | Compute | | $ | — | | $ | 2 | | $ | — | | $ | 981 | | | | | | | | | | | | | | Cost of revenue (exclusive of depreciation and amortization shown below): | | | | | | | | | | | | | Compute | | | — | | | 1,546 | | | — | | | 3,895 | | | | | | | | | | | | | | Operating expenses: | | | | | | | | | | | | | Depreciation and amortization | | | — | | | — | | | — | | | 169 | General and administrative expenses | | | — | | | 194 | | | — | | | 216 | Impairment of long-lived assets | | | — | | | — | | | — | | | 6,065 | Total operating expenses | | | — | | | 194 | | | — | | | 6,450 | | | | | | | | | | | | | | Loss from discontinued operations before taxes | | | — | | | (1,738) | | | — | | | (9,364) | | | | | | | | | | | | | | Income tax benefit | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | Net loss | | $ | — | | $ | (1,738) | | $ | — | | $ | (9,364) |
| | | | | | | | | Six Months Ended | Cash flows from Discontinued Operations | | June 30, | (in USD thousands) | | 2025 | | 2024 | Operating cash flows used in discontinued operations | | $ | — | | $ | (3,243) |
| | | | | | | Assets and Liabilities of Discontinued Operations | | June 30, | | December 31, | (in USD thousands) | | 2025 | | 2024 | Assets | | $ | 199 | | $ | 2,320 | Liabilities | | | 1,024 | | | 1,699 |
The Company recorded impairment related to the mining equipment and mining infrastructure at its Drumheller site after the decision to cease operations at the site in March 2024.
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