| Segment Information |
Note 18. Segment Information The Company has three reportable segments: Bitcoin Mining, Data Center, and Engineering. The reportable segments are identified based on the types of services performed. No operating segments have been aggregated to form the reportable segments. Gross profit (loss) is the segment performance measure the CODM uses to assess the Company’s reportable segments and is calculated before the elimination of intersegment profits. The CODM is the Company’s CEO. The CODM uses segment gross profit (loss) to assess the performance of, manage the operations of, and allocate capital and operational resources to the Company’s three reportable segments, and as part of the budgeting process and review of budget-to-actual variances for capital allocation decisions. The $97.2 million of goodwill from the Block Mining Acquisition is allocated to the Bitcoin Mining segment and $25.3 million of goodwill from the E4A Solutions Acquisition is allocated to the Engineering segment. The Company does not regularly provide segment assets to its CODM, and, therefore, does not separately disclose the total assets of its reportable operating segments. The Bitcoin Mining segment generates revenue from the bitcoin earned through its Bitcoin Mining activities. The Data Center segment generates revenue from developing and leasing data center space and power capacity to third-party customers. The Engineering segment generates revenue through customer contracts for custom-engineered electrical products and services. All revenue and cost of revenue from intersegment transactions have been eliminated in the Condensed Consolidated Statements of Operations. The following tables present segment revenue and segment gross profit (loss), including the significant expense items reviewed by the CODM: Three Months Ended September 30, 2026 | | | | | | | | | | | | | | | Bitcoin Mining | | Data Center | | Engineering | | Total | Revenue from external customers | | $ | 115,990 | | $ | 18,429 | | $ | 47,007 | | $ | 181,426 | Intersegment revenue | | | 152 | | | — | | | 9,819 | | | 9,971 | Segment revenue | | | 116,142 | | | 18,429 | | | 56,826 | | | 191,397 | | | | | | | | | | | | | | Reconciliation of revenue | | | | | | | | | | | | | Elimination of intersegment revenue | | | | | | | | | | | | (9,971) | Total consolidated revenue | | | | | | | | | | | | 181,426 | | | | | | | | | | | | | | Less: | | | | | | | | | | | | | Power | | | 74,849 | | | 526 | | | — | | | 75,375 | Compensation | | | 5,258 | | | 959 | | | — | | | 6,217 | Insurance on miners | | | 882 | | | — | | | — | | | 882 | Water and property tax | | | 5,887 | | | — | | | — | | | 5,887 | Tenant fit-out costs | | | — | | | 9,534 | | | — | | | 9,534 | Materials | | | — | | | — | | | 32,088 | | | 32,088 | Labor | | | — | | | — | | | 3,009 | | | 3,009 | Other segment items(a) | | | 2,728 | | | 162 | | | 11,587 | | | 14,477 | Segment gross profit (loss) | | $ | 26,538 | | $ | 7,248 | | $ | 10,142 | | $ | 43,928 |
Three Months Ended September 30, 2025 (b) | | | | | | | | | | | | | | | | | | Bitcoin Mining | | Engineering | | Total | Revenue from external customers | | | | | $ | 160,792 | | $ | 19,097 | | $ | 179,889 | Intersegment revenue | | | | | | — | | | 6,818 | | | 6,818 | Segment revenue | | | | | | 160,792 | | | 25,915 | | | 186,707 | | | | | | | | | | | | | | Reconciliation of revenue | | | | | | | | | | | | | Other revenue(c) | | | | | | | | | | | | 340 | Elimination of intersegment revenue | | | | | | | | | | | | (6,818) | Total consolidated revenue | | | | | | | | | | | | 180,229 | | | | | | | | | | | | | | Less: | | | | | | | | | | | | | Power | | | | | | 82,370 | | | — | | | 82,370 | Compensation | | | | | | 4,801 | | | — | | | 4,801 | Insurance on miners | | | | | | 1,462 | | | — | | | 1,462 | Ground rent and related water and property tax | | | | | | 3,604 | | | — | | | 3,604 | Materials | | | | | | — | | | 6,862 | | | 6,862 | Labor | | | | | | — | | | 940 | | | 940 | Other segment items(a) | | | | | | 3,528 | | | 5,905 | | | 9,433 | Segment gross profit (loss) | | | | | $ | 65,027 | | $ | 12,208 | | $ | 77,235 |
Nine Months Ended September 30, 2026 | | | | | | | | | | | | | | | Bitcoin Mining | | Data Center | | Engineering | | Total | Revenue from external customers | | $ | 341,621 | | $ | 74,792 | | $ | 106,467 | | $ | 522,880 | Intersegment revenue | | | 152 | | | — | | | 36,441 | | | 36,593 | Segment revenue | | | 341,773 | | | 74,792 | | | 142,908 | | | 559,473 | | | | | | | | | | | | | | Reconciliation of revenue | | | | | | | | | | | | | Elimination of intersegment revenue | | | | | | | | | | | | (36,593) | Total consolidated revenue | | | | | | | | | | | | 522,880 | | | | | | | | | | | | | | Less: | | | | | | | | | | | | | Power | | | 220,665 | | | 907 | | | — | | | 221,572 | Compensation | | | 15,602 | | | 1,407 | | | — | | | 17,009 | Insurance on miners | | | 3,420 | | | — | | | — | | | 3,420 | Water and property tax | | | 18,195 | | | 8 | | | — | | | 18,203 | Tenant fit-out costs | | | — | | | 56,147 | | | — | | | 56,147 | Materials | | | — | | | — | | | 70,185 | | | 70,185 | Labor | | | — | | | — | | | 8,776 | | | 8,776 | Other segment items(a) | | | 7,748 | | | 185 | | | 33,884 | | | 41,817 | Segment gross profit (loss) | | $ | 76,143 | | $ | 16,138 | | $ | 30,063 | | $ | 122,344 |
Nine Months Ended September 30, 2025 (b) | | | | | | | | | | | | | | | | | | Bitcoin Mining | | Engineering | | Total | Revenue from external customers | | | | | $ | 444,540 | | $ | 43,593 | | $ | 488,133 | Intersegment revenue | | | | | | — | | | 18,152 | | | 18,152 | Segment revenue | | | | | | 444,540 | | | 61,745 | | | 506,285 | | | | | | | | | | | | | | Reconciliation of revenue | | | | | | | | | | | | | Other revenue(c) | | | | | | | | | | | | 6,471 | Elimination of intersegment revenue | | | | | | | | | | | | (18,152) | Total consolidated revenue | | | | | | | | | | | | 494,604 | | | | | | | | | | | | | | Less: | | | | | | | | | | | | | Power | | | | | | 206,369 | | | — | | | 206,369 | Compensation | | | | | | 13,932 | | | — | | | 13,932 | Insurance on miners | | | | | | 4,386 | | | — | | | 4,386 | Ground rent and related water and property tax | | | | | | 11,466 | | | — | | | 11,466 | Materials | | | | | | — | | | 12,673 | | | 12,673 | Labor | | | | | | — | | | 2,907 | | | 2,907 | Other segment items(a) | | | | | | 12,605 | | | 19,791 | | | 32,396 | Segment gross profit (loss) | | | | | $ | 195,782 | | $ | 26,374 | | $ | 222,156 |
| (a) | For each reportable segment, the other segment items category primarily consists of: |
Bitcoin Mining: Bitcoin miner and network repair and maintenance costs. Engineering: Manufacturing overhead costs. | (b) | The Company recognized its new Data Center operations as a reportable segment for the three and nine months ended September 30, 2026. Accordingly, for the three and nine months ended September 30, 2025, the Data Center segment is omitted from the table because there was no segment revenue or segment gross profit (loss). |
| (c) | Other revenue is primarily attributable to legacy Data Center Hosting bitcoin mining revenue and is therefore not included in the total for segment gross profit (loss). |
The following table presents the reconciliation of segment gross profit (loss) to Net income (loss) before taxes: | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Segment gross profit (loss) | | $ | 43,928 | | $ | 77,235 | | $ | 122,344 | | $ | 222,156 | | | | | | | | | | | | | | Reconciling items: | | | | | | | | | | | | | Other profit (loss) (a) | | | — | | | 340 | | | — | | | (5,500) | Elimination of intersegment profits | | | (2,574) | | | (6,818) | | | (8,206) | | | (18,152) | Acquisition-related costs | | | — | | | — | | | — | | | (187) | Selling, general, and administrative | | | (68,036) | | | (69,832) | | | (226,215) | | | (217,182) | Depreciation and amortization | | | (123,921) | | | (82,929) | | | (319,439) | | | (244,052) | Change in fair value of bitcoin | | | 171,907 | | | 133,120 | | | (229,369) | | | 395,892 | Change in fair value of derivatives | | | (26,323) | | | 10,792 | | | (86,537) | | | 9,939 | Power curtailment credits | | | 24,664 | | | 30,634 | | | 55,741 | | | 46,748 | Change in fair value of contingent consideration | | | — | | | (1) | | | — | | | 17,641 | (Loss) gain on sale/exchange of equipment | | | 32 | | | 2,742 | | | 32 | | | 2,263 | Casualty-related (charges) recoveries, net | | | — | | | 47 | | | (3) | | | 166 | Interest income | | | 5,622 | | | 3,919 | | | 11,558 | | | 10,650 | Interest expense | | | (2,748) | | | (8,052) | | | (8,053) | | | (16,453) | Gain (loss) on equity method investment - marketable securities | | | — | | | 28,903 | | | — | | | (28,192) | Loss on contract settlement | | | — | | | — | | | — | | | (158,137) | Gain on acquisition post-close dispute settlement | | | — | | | — | | | — | | | 26,007 | Impairment of property and equipment | | | (18,453) | | | (15,279) | | | (46,425) | | | (15,279) | Other income (expense) | | | 9 | | | 1,344 | | | 1,218 | | | 1,681 | Net income (loss) before taxes | | $ | 4,107 | | $ | 106,165 | | $ | (733,354) | | $ | 30,009 |
| (a) | Other profit (loss) is primarily attributable to legacy Data Center Hosting bitcoin mining activity for the three and nine months ended September 30, 2025, and is therefore not included in the total for segment gross profit (loss). |
Concentrations For the three and nine months ended September 30, 2026, Bitcoin Mining revenue generated as a result of the Company’s participation in a mining pool and Data Center revenue generated by the Amended AMD Lease each contributed more than 10% of the Company’s total consolidated revenue. For the three and nine months ended September 30, 2025, Bitcoin Mining revenue generated as a result of the Company’s participation in a mining pool contributed more than 10% of the Company’s total consolidated revenue. For the three and nine months ended September 30, 2026 and 2025, Bitcoin Mining power was primarily obtained from ERCOT. For the three and nine months ended September 30, 2026, Data Center power was entirely obtained from ERCOT.
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