Assets Held For Sale and Discontinued Operations

3 Months Ended

Mar. 31, 2026

Assets Held For Sale and Discontinued Operations [Abstract]

ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

NOTE 8: ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

Miners and Mining electrical components

As of March 31, 2026 and December 31, 2025, the Company determined it had surplus Miners and Mining electrical equipment that met the criteria as “assets held for sale” under ASC 360-10-45 as of the respective balance sheet dates. These assets were measured at the lower of their carrying amount and fair value less costs to sell at the time of the classification. These surplus assets are not determined to be discontinued operations as their planned sale did not represent a strategic shift on the Company’s operations and financial results.

The fair value of these assets were determined using the market approach, which is based on recent sales prices for similar Miners and equipment. Such fair value measurements are a non-recurring Level 3 measurement under the fair value hierarchy. The key assumption used by Management to determine fair value is the most recent amount contracted with a third party for a comparable Miner or equipment sold.

Assets of disposal group classified as held for sale

In addition to surplus Miners and equipment, the Company classified assets in Paraguay which met the criteria as “assets held for sale” during the year ended December 31, 2025, which have been classified as discontinued operations as detailed in this note. The Paraguay disposal group included the Paso Pe Bitcoin data center which met the “held for sale” criteria during the third quarter of 2025.

The following table provides the components of the assets or disposal groups that either met the criteria of “assets held for sale” as of March 31, 2026 or December 31, 2025.

		As of March 31,				As of December 31,
		2026				2025
Miners			70				166
Mining electrical components			1,134				3,198
Assets of disposal group classified as held for sale:
Other assets			1,431				1,404
Inventories - electronic and networking components			426				426
Property, plant and equipment			4,503				17,168
Long-term deposits and equipment prepayments			1,333				1,145
Refundable deposits - security deposits for energy			5,157				5,157
			14,054				28,664

Discontinued operations

In 2025, the Company began a significant transformation of its corporate strategy, exiting its Latin American Bitcoin Mining operations in Paraguay and Argentina to fully concentrate on the U.S. and Canadian HPC infrastructure markets. As a result of these strategic decisions, the Company classified certain of its Latin American asset groups as “held for sale” and its operations as discontinued operations. As discussed below, the Argentina asset group was abandoned, and therefore its assets were not classified as “held for sale”.

The combined results of the Company’s Argentina and Paraguay operations for the three months ended March 31, 2026 and 2025 are presented below:

		Three months ended March 31,
		2026												2025
			Argentina				Paraguay				Total				Argentina				Paraguay				Total
Revenues*			—				6,082				6,082				6,955				12,014				18,969
Cost of revenues			—				(5,862	)			(5,862	)			(8,053	)			(11,654	)			(19,707	)
Gross profit (loss)			—				220				220				(1,098	)			360				(738	)

Operating expenses
General and administrative expenses			(3,848	)			(959	)			(4,807	)			(1,563	)			(879	)			(2,442	)
Gain (loss) on disposition of property, plant and equipment and deposits			324				(5	)			319				(196	)			—				(196	)
Impairment of long-lived assets			(811	)			(12,806	)			(13,617	)			(18,824	)			—				(18,824	)
Operating (loss)			(4,335	)			(13,550	)			(17,885	)			(21,681	)			(519	)			(22,200	)
Interest income			—				—				—				—				74				74
Interest expense			—				—				—				—				(33	)			(33	)
Other (expense) income			79				27				106				364				(70	)			294
Total other (expense) income			79				27				106				364				(29	)			335
Loss before income taxes			(4,256	)			(13,523	)			(17,779	)			(21,317	)			(548	)			(21,865	)

Income tax (expense) recovery			—				—				—				(458	)			(82	)			(540	)
Loss after income tax			(4,256	)			(13,523	)			(17,779	)			(21,775	)			(630	)			(22,405	)

Gain on disposition of Yguazu Bitcoin data center			—				—				—				—				5,225				5,225
Loss from discontinued operations			(4,256	)			(13,523	)			(17,779	)			(21,775	)			4,595				(17,180	)

*	Revenues are presented based on the geographical contribution of computational power used for hashing calculations (measured by hashrate) or sales to external customers.

The net cash flows incurred by Argentina’s and Paraguay’s operations are, as follows:

		Three months ended March 31,
		2026				2025
Net change in cash related to operating activities			(1,060	)			1,189
Net change in cash related to investing activities			1,696				(2,881	)
Net change in cash related to financing activities			(15	)			(172	)
Net change in cash generated by the discontinued operations			621				(1,864	)

i. Argentina’s operations as discontinued operations

During the second quarter of 2025, the Company’s energy supplier halted the supply of electricity to the Company’s Rio Cuarto, Argentina Bitcoin data center. Following this event, on August 11, 2025, the Company determined that it would discontinue and abandon its operations in Rio Cuarto, Argentina. The Company negotiated to eliminate its asset retirement obligation and reduced the reserved power to a minimum. As of September 30, 2025, the Company’s Argentina operations were abandoned and classified as a discontinued operation. As these operations represent an asset group that was abandoned, it is not classified as “held for sale” of a disposal group. Notwithstanding, commencing in the second quarter of 2025, the Company also identified certain electrical equipment and BVVE that could be sold separately and not abandoned.

Impairment on Argentina asset group in the first quarter of 2025

During the first quarter of 2025, due to indicators of impairment that included the decline of the Company’s market capitalization and Bitcoin price, the Company performed recoverability tests for operating Bitcoin data centers in Canada, United States, Paraguay and Argentina. The Company also experienced an increase in gas prices which affected the Company’s cost of energy in Argentina.

In performing a recoverability test, the Company calculated the sum of the estimated undiscounted future cash flows from continued use and eventual disposition for the Argentina asset group, and determined it was lower than its carrying amount, therefore the Argentina asset group was not recoverable, and an impairment loss in the amount of $17,504 was recognized to write down the carrying amount of the asset group to its fair value.

To measure the impairment loss, fair value was determined using an income approach under ASC 820 based on a discounted cash flow model incorporating management’s estimates of future cash flows, expected Bitcoin prices, projected operating expenses, and a market-based discount rate. Due to the use of significant unobservable inputs, the fair value measurement was classified within Level 3 of the fair value hierarchy.

On May 8, 2026, the Company entered into a definitive share purchase agreement for the sale of its wholly-owned Argentina subsidiary, Backbone Hosting Solutions SAU (“Backbone Argentina”). Refer to Note 21 for more details.

ii. Paraguay’s operations as discontinued operations and assets held for sale

During the first quarter of 2025, the Company finalized the sale of its Yguazu Bitcoin data center in Paraguay. Subsequently, during the third quarter of 2025, the Company determined that the Paso Pe Bitcoin data center met the criteria to be classified as “held for sale”, and that all operations in Paraguay should be classified as discontinued operations as the Company makes a strategic shift towards HPC data center projects in North America.

Sale of the Yguazu Bitcoin Data Center

On March 17, 2025, the Company completed the sale of its 200 MW Bitcoin data center under development in Yguazu, Paraguay to HIVE Digital Technologies Ltd. (“HIVE”) pursuant to a January 24, 2025 share purchase agreement. The transaction involved the sale of the Company’s 100% ownership stake in the Yguazu Bitcoin data center and resulted in the derecognition of the subsidiary’s assets and liabilities. The transaction details are as follows:

		As of March 17
		2025

Consideration
Advance received in January 2025 upon signing the LOI			20,000
Cash received upon closing			12,038
Receivable over 6 equal monthly payments following the closing date*			31,000
Other costs assumed by HIVE			222
Total consideration received			63,260
Net assets transferred
Current assets			2,590
Property, plant and equipment			34,006
Intangible asset			309
Long-term deposits and equipment prepayments			18,321
Security deposit for energy			2,809
Total net assets transferred			58,035
Gain on disposal of subsidiary			5,225

*	The $31,000 interest-free receivable was fully collected by the end of the third quarter of 2025.

Sale of the Paso Pe Bitcoin data center

In January 2026, a definitive purchase agreement was signed for the sale of the Paso Pe Bitcoin data center. The sale of the Paso Pe Bitcoin data center was completed on April 21, 2026 for total proceeds of approximately $13,000. Refer to Note 21 for more details.

During the three months ended March 31, 2026, the Company used the most recent agreed upon selling price to estimate the fair value less costs to sell of the Paso Pe Bitcoin data center and recognized a further impairment loss of $12,806. This impairment loss is presented within loss from discontinued operations in the consolidated statements of operations.