v3.26.1
SEGMENT REPORTING (Tables)
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
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 March 31,
2026
2025
(in thousands, except percentages)
Colocation Segment
Colocation revenue:
License fees
$59,195
$5,995
Power fees passed through to customer
21,059
2,586
Maintenance and other
(2,715)
(8)
Total colocation revenue
77,539
8,573
Cost of colocation services:
Power fees passed through to customer
21,059
2,586
Depreciation expense
2,075
67
Employee compensation
2,986
1,295
Facility operations expense
6,755
3,852
Other segment items
743
306
Total cost of colocation services
33,618
8,106
Colocation gross profit
$43,921
$467
Colocation gross margin
57%
5%
Digital Asset Self-Mining Segment
Digital asset self-mining revenue
$30,105
$67,179
Cost of digital asset self-mining:
Power fees
27,271
30,319
Depreciation expense
13,909
19,259
Employee compensation
3,527
7,335
Facility operations expense
1,972
3,280
Other segment items
510
977
Total cost of digital asset self-mining
47,189
61,170
Digital Asset Self-Mining gross profit
$(17,084)
$6,009
Digital Asset Self-Mining gross margin
(57)%
9%
Digital Asset Hosted Mining Segment
Digital asset hosted mining revenue from customers
$7,600
$3,773
Cost of digital asset hosted mining services:
Power fees
3,303
1,367
Depreciation expense
306
145
Employee compensation
427
332
Facility operations expense
234
148
Other segment items
61
44
Total cost of digital asset hosted mining services
4,331
2,036
Digital Asset Hosted Mining gross profit
$3,269
$1,737
Digital Asset Hosted Mining gross margin
43%
46%
Consolidated
Consolidated total revenue
$115,244
$79,525
Consolidated cost of revenue
$85,138
$71,312
Consolidated gross profit
$30,106
$8,213
Consolidated gross margin
26%
10%
Schedule of Reconciliation of Reportable Segment Gross Profit to Loss Before Income Taxes A reconciliation of the reportable segment gross profit to (loss) income before income taxes included in the Company’s
condensed consolidated statements of operations for the three months ended March 31, 2026 and 2025, is as follows (in thousands):
Three Months Ended March 31,
2026
2025
Reportable segment gross profit
$30,106
$8,213
Decrease in fair value of digital assets
6,558
10,688
Loss on disposal of property, plant and equipment
13,638
6
Impairment of property, plant and equipment
266,488
—
Colocation organizational and site startup costs
8,665
11,667
Advisor fees
333
603
Selling, general and administrative
44,846
32,287
Operating loss
(310,422)
(47,038)
Non-operating expenses (income), net:
Interest expense (income), net
4,857
(2,187)
Change in fair value of warrants and contingent value rights
30,799
(621,464)
Loss on legal settlements
500
—
Other non-operating expense, net
10
157
Total non-operating expense (income), net
36,166
(623,494)
(Loss) income before income taxes
$(346,588)
$576,456