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FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
9. FAIR VALUE MEASUREMENTS
The Company measures certain assets and liabilities at fair value on a recurring or nonrecurring basis. For a description of the Company’s fair value measurement policies, including the fair value hierarchy and valuation methodologies, see Note 10 - Fair Value Measurements, of the Form 10-K for the fiscal year ended December 31, 2025.
Recurring Fair Value Measurements
The following table presents the fair value hierarchy levels and carrying amounts of assets and liabilities measured at fair value on a recurring basis at the dates indicated (dollars in thousands):
LevelJune 30, 2026December 31, 2025
Assets:
Cash and cash equivalents
Money market funds
1$1,759,822 $267,721 
Digital assets149,675 222,000 
Total assets measured at fair value on a recurring basis
$1,809,497 $489,721 
Liabilities:
Contingent value rights(1)
1$1,295 $3,366 
Warrant liabilities, current portion11,811,587 — 
Warrant liabilities, net of current portion1163,683 936,107 
Total liabilities measured at fair value on a recurring basis$1,976,565 $939,473 
(1)The fair value of contingent value rights is included within “Other current liabilities” and “Other noncurrent liabilities” on the Company’s condensed consolidated balance sheets, based on the expected timing of settlement.
The following table presents the changes in fair value of the Company’s CVRs and Warrant liabilities included in “Change in fair value of warrants and contingent value rights” in the condensed consolidated statements of operations for the periods indicated (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Decrease (increase) in:
Fair value of CVRs$(1,036)$(13,723)$(2,072)$(906)
Fair value of Warrants1,046,551 923,681 1,078,386 289,400 
Change in fair value of warrants and contingent value rights$1,045,515 $909,958 $1,076,314 $288,494 
Nonrecurring Fair Value Measurements
The Company measures certain non-financial assets at fair value on a nonrecurring basis when events or circumstances indicate that the carrying amount may not be recoverable, or upon classification as held for sale. During the six months ended June 30, 2026, the Company recognized nonrecurring fair value measurements in connection with (i) impairment charges on its mining-related property, plant and equipment, measured as of March 31, 2026, and (ii) the remeasurement of certain mining and electrical equipment upon classification as held for sale, measured as of June 30, 2026, each as further discussed below.
During the three months ended March 31, 2026, the Company recognized nonrecurring fair value measurements in connection with impairment charges on its mining-related property, plant and equipment. The Company reassessed these assets as of June 30, 2026, and determined that no additional impairment or remeasurement was necessary as the fair value exceeded the depreciated carrying value. See Note 4 — Property, Plant, and Equipment for further detail on each of these measurements.
During the three months ended June 30, 2026, certain mining equipment previously impaired was reclassified to held for sale and remeasured to fair value less cost to sell, and certain electrical equipment was classified as held for sale and measured at fair value. The following table presents the fair value of assets measured on a nonrecurring basis as of June 30, 2026 (in thousands):
Level 1Level 2Level 3Fair value
Mining and electrical equipment held for sale$— $13,790 $— $13,790 
The fair value of mining equipment held for sale was determined using a market approach based on observable pricing from published secondary market indices for digital asset mining hardware. The fair value of electrical equipment held for sale was determined using a market approach based on observed sales prices for comparable equipment. Each of these measurements is classified as Level 2 within the fair value hierarchy.
The Company’s financial instruments not subject to recurring fair value measurements include cash and cash equivalents (other than money market funds), restricted cash, accounts receivable, accounts payable, leases, debt and certain accrued expenses and other liabilities. Except for the Senior Secured Notes, the 2029 Convertible Notes, and 2031 Convertible Notes, the carrying amounts of these financial instruments materially approximate their fair values.
Financial Instruments Not Carried at Fair Value
The Senior Secured Notes, the 2029 Convertible Notes and 2031 Convertible Notes are recorded at amortized cost in the condensed consolidated balance sheets. The following table presents the carrying amounts, estimated fair values, and the level within the fair value hierarchy of these instruments at the dates indicated (dollars in thousands):
June 30, 2026December 31, 2025
LevelCarrying AmountFair ValueCarrying AmountFair Value
Senior Secured Notes2$3,300,000 $3,349,137 $— $— 
2029 Convertible Notes1$460,000 $1,108,299 $460,000 $718,609 
2031 Convertible Notes1$625,000 $868,409 $625,000 $657,735