Riot Blockchain (RIOT) 10-Q 17 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 14, 2021
Document and Entity Information [Abstract]
Entity Central Index Key	0001167419
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2021
Entity File Number	001-33675
Entity Registrant Name	Riot Blockchain, Inc.
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	84-1553387
Entity Address, Address Line One	202 6th Street
Entity Address, Address Line Two	Suite 401
Entity Address, City or Town	Castle Rock
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80104
City Area Code	303
Local Phone Number	794-2000
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	RIOT
Name of Exchange on which Security is Registered	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		84,144,732

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 241,012	$ 223,382
Prepaid expenses and other current assets	629	1,257
Cryptocurrencies	34,567	11,626
Total current assets	276,208	236,265
Property and equipment, net	28,306	10,143
Deposits on equipment	70,730	33,093
Long-term investments	310	310
Patents, net	351	336
Total assets	375,905	280,147
Current liabilities
Accounts payable	2,904	718
Accrued expenses	4,432	1,582
Deferred revenue, current portion	97	97
Total current liabilities	7,433	2,397
Deferred revenue, less current portion	655	679
Total liabilities	8,088	3,076
Commitments and contingencies - Note 10
Stockholders' equity
Common stock, no par value; 170,000,000 shares authorized; 84,120,723 and 78,523,517 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively	590,188	506,961
Accumulated deficit	(222,382)	(229,912)
Total stockholders' equity	367,817	277,071
Total liabilities and stockholders' equity	375,905	280,147
2% Series A Convertible Stock [Member]
Stockholders' equity
Preferred stock
0% Series B Convertible Stock [Member]
Stockholders' equity
Preferred stock	$ 11	$ 22

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Preferred stock, par value
Preferred stock, shares authorized	15,000,000	15,000,000
Common stock, par value
Common stock, shares authorized	170,000,000	170,000,000
Common stock, shares issued	84,120,723	78,523,517
Common stock, shares outstanding	84,120,723	78,523,517
2% Series A Convertible Stock [Member]
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
0% Series B Convertible Stock [Member]
Preferred stock, shares authorized	1,750,001	1,750,001
Preferred stock, shares issued	2,199	4,199
Preferred stock, shares outstanding	2,199	4,199

Condensed Interim Consolidated

Condensed Interim Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue:
Total revenue	$ 23,197	$ 2,386
Costs and expenses:
Cost of revenues (exclusive of depreciation and amortization shown below)	7,534	1,407
Selling, general and administrative	5,462	3,735
Depreciation and amortization	2,846	663
Impairment of cryptocurrencies		989
Total costs and expenses	15,842	6,794
Operating income (loss)	7,355	(4,408)
Other income (expense):
Gain on sale of equipment		17
Interest income	175
Interest expense		(2)
Other income		10
Realized gain on sale/exchange of cryptocurrencies		106
Total other income	175	131
Net income (loss)	$ 7,530	$ (4,277)
Basic net income (loss) per share	$ 0.09	$ (0.15)
Diluted net income (loss) per share	$ 0.09	$ (0.15)
Basic weighted average number of shares outstanding	83,163,400	28,585,915
Diluted weighted average number of shares outstanding	83,712,151	28,585,915
Revenue, net - cryptocurrency mining [Member]
Revenue:
Total revenue	$ 23,173	$ 2,362
License fees [Member]
Revenue:
Total revenue	$ 24	$ 24

Condensed Interim Consolidate_2

Condensed Interim Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Accumulated Deficit [Member]	Total Riot Blockchain stockholder's equity [Member]	Noncontrolling Interest [Member]	Total
BALANCE at Dec. 31, 2019	$ 22	$ 243,458	$ (217,238)	$ 26,242	$ (7)	$ 26,235
BALANCE, shares at Dec. 31, 2019	4,199	25,082,872
Issuance of common stock to settle executive compensation		$ 175		175		175
Issuance of common stock to settle executive compensation, shares		122,377
Delivery of common stock underlying restricted stock units, net of shares settled for tax withholding settlement		5,000
Issuance of common stock, net of offering costs/At-the-market offering		$ 9,184		9,184		9,184
Issuance of common stock, net of offering costs/At-the-market offering, shares		6,024,059
Cancellation of Prive Escrow shares		(200,000)
Stock-based compensation		$ 1,914		1,914		1,914
Net income (loss)			(4,277)	(4,277)		(4,277)
BALANCE at Mar. 31, 2020	$ 22	$ 254,731	(221,515)	$ 33,238	$ (7)	33,231
BALANCE, shares at Mar. 31, 2020	4,199	31,034,308
BALANCE at Dec. 31, 2020	$ 22	$ 506,961	(229,912)			277,071
BALANCE, shares at Dec. 31, 2020	4,199	78,523,517
Delivery of common stock underlying restricted stock units, net of tax withholding settlement		$ (1,206)				(1,206)
Delivery of common stock underlying restricted stock units, net of shares settled for tax withholding settlement		202,395
Issuance of common stock related to exercise of warrants		$ 806				806
Issuance of common stock related to exercise of warrants, shares		415,657
Issuance of common stock for settlement of warrants on a cashless basis		543,686
Issuance of common stock, net of offering costs/At-the-market offering		$ 82,680				82,680
Issuance of common stock, net of offering costs/At-the-market offering, shares		4,433,468
Conversion of preferred stock to common stock	$ (11)	$ 11
Conversion of preferred stock to common stock, shares	(2,000)	2,000
Stock-based compensation		$ 936				936
Net income (loss)			7,530			7,530
BALANCE at Mar. 31, 2021	$ 11	$ 590,188	$ (222,382)			$ 367,817
BALANCE, shares at Mar. 31, 2021	2,199	84,120,723

Condensed Interim Consolidate_3

Condensed Interim Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)shares
Statement of Stockholders' Equity [Abstract]
Settlement of warrants on cashless basis | shares	1,257,235
Offering costs, net | $	$ 2.1

Condensed Interim Consolidate_4

Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities
Net income (loss)	$ 7,530	$ (4,277)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Stock-based compensation	936	1,914
Depreciation and amortization	2,846	663
Amortization of license fee revenue	(24)	(24)
Amortization of right of use assets		643
Impairment of cryptocurrencies		989
Realized gain on sale/exchange of cryptocurrencies		(106)
Gain on sale of equipment		(17)
Changes in assets and liabilities:
Prepaid expenses and other current assets	628	543
Cryptocurrencies - mining, net of mining pool operating fees	(22,941)	(2,326)
Accounts payable	2,186	(135)
Accrued expenses	2,850	45
Lease liability		(571)
Net cash used in operating activities	(5,989)	(2,659)
Cash flows from investing activities
Proceeds from the sale of equipment		18
Deposits on equipment	(56,353)
Purchases of property and equipment	(2,270)
Patent costs incurred	(38)	(27)
Net cash used in investing activities	(58,661)	(9)
Cash flows from financing activities
Proceeds from the issuance of common stock / At-the-market offering	84,817	9,495
Offering costs for the issuance of common stock / At-the-market offering	(2,137)	(311)
Proceeds from exercise of common stock warrants	806
Repurchase of common shares to pay employee withholding taxes	(1,206)
Net cash provided by financing activities	82,280	9,184
Net increase in cash and cash equivalents	17,630	6,516
Cash and cash equivalents at beginning of period	223,382	7,440
Cash and cash equivalents at end of period	241,012	13,956
Supplemental disclosure of cash flow information:
Cash paid for interest
Cash paid for taxes
Supplemental disclosure of noncash investing and financing activities:
Issuance of common stock to settle previously accrued executive compensation		175
Reclassification of deposits to property and equipment	18,716	1,449
Conversion of preferred stock to common stock	$ 11

Organization and Operation of O

Organization and Operation of Our Business	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Operation of Our Business	Note 1. Organization and Operation of Our Business Nature of Operations: Riot Blockchain, Inc. operates a cryptocurrency mining operation using specialized computers equipped with application-specific integrated circuit (ASIC) chips (known as “miners”) to solve complex cryptographic algorithms in support of the Bitcoin blockchain (in a process known as “solving a block”) in exchange for cryptocurrency rewards (primarily Bitcoin). The Company has also historically mined Bitcoin cash and litecoin; however, the Company has focused its efforts on mining Bitcoin. The Company participates in “mining pools” organized by “mining pool operators” in which we share our mining power (known as “hashrate”) with the hashrate generated by other miners participating in the pool to earn cryptocurrency rewards. The mining pool operator provides a service that coordinates the computing power of the independent mining enterprises participating in the mining pool. Fees are paid to the mining pool operator to cover the costs of maintaining the pool. The pool uses software that coordinates the pool members’ mining power, identifies new block rewards, records how much hashrate each participant contributes to the pool, and assigns cryptocurrency rewards earned by the pool among its participants in proportion to the hashrate each participant contributed to the pool in connection with solving a block. The Company generates substantially all its revenue through its cryptocurrency mining operation by holding the cryptocurrency it mines and selling it on the market for its own account. Mining Equipment: Generally speaking, miners with greater hashing power relative to other miners attempting to solve a block have a higher chance of solving the block and receiving a cryptocurrency award. Further, as the market price for Bitcoin has increased, we have observed that the relative number of miners and the total hashing power deployed on the Bitcoin blockchain has also increased. Accordingly, we seek to increase our hashing power capacity relative to the total hashing power devoted to the Bitcoin blockchain by acquiring and deploying increasing numbers of the latest generation of more powerful and energy-efficient miners. As of March 31, 2021, the Company exclusively operated the Antminer series of miners manufactured by Bitmain Technologies Limited (“Bitmain”), which use ASIC chips designed around the 256-bit secure hashing algorithm (SHA-256) used by the Bitcoin blockchain and, therefore, the primary cryptocurrency the Company seeks to mine is Bitcoin. During the three months ended March 31, 2021, the Company continued to expand its quantity of miners with the objective of increasing the Company’s operational efficiency and performance. During the year ended December 31, 2020, the Company entered into purchase agreements to acquire 33,646 Antminers from Bitmain, including 12,000 model S19j-Pro miners, 20,606 model S19-Pro miners and 1,040 model S19 miners. As of December 31, 2020, the Company had received and deployed 7,043 total miners at the Company’s mining operation pursuant to a co-location mining services agreement with Coinmint, LLC (“Coinmint”) at Coinmint’s facility in New York (the “Coinmint Facility”), including 4,000 model S17-Pro miners purchased from Bitmain in 2019, as well as 3,043 of the miners purchased from Bitmain in 2020. During the three months ended March 31, 2021, the Company received 6,703 additional Antminer model S19-Pro miners related to its 2020 purchase agreements with Bitmain and, as of March 31, 2021, had deployed a total of 13,746 miners in its mining operation. During 2021 the Company entered into two additional purchase agreements with Bitmain to acquire 43,500 Antminer model S19j (90 Terahash per second) (“TH/s”) miners, for a total purchase price of approximately $145.7 million. Pursuant to these agreements, approximately $32.6 million of the total purchase price was initially paid by the Company to Bitmain as refundable deposits, with the remainder payable in installments in advance of shipment of the miners, which is scheduled to occur on a monthly basis between October 2021 and October 2022.

Liquidity and Financial Conditi

Liquidity and Financial Condition	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Liquidity and Financial Condition	Note 2. Liquidity and Financial Condition Prior to 2021, the Company has experienced recurring losses and negative cash flows from operations. At March 31, 2021, the Company had approximate balances of cash and cash equivalents of $241.0 million, working capital of $268.8 million, total stockholders’ equity of $367.8 million and an accumulated deficit of $222.4 million. To date, the Company has, in large part, relied on equity financings to fund its operations. The Company believes its current cash on hand is sufficient to meet its operating and capital requirements for at least the next one-year from the date these financial statements are issued. During the three months ended March 31, 2021, the Company paid approximately $56.4 million as deposits primarily for miners and as of March 31, 2021, reclassified $18.7 million to property and equipment in connection with the receipt of 6,703 miners placed in service at the Coinmint Facility. During the three months ended March 31, 2021, the Company received net proceeds of approximately $82.7 million (after deducting $2.1 million in commissions and expenses) from sales of 4,433,468 shares of its common stock, no par value, at a weighted average gross sales price of $19.13 per share, which were sold in the Company’s December 2020 at-the-market offering of up to $200 million in shares of our common stock, no par value (the “December 2020 ATM Offering”) by H.C. Wainwright & Co., LLC (“H.C. Wainwright”), as the Company’s sales agent, pursuant to the terms of the Second Amendment to the At-the-Market Sales Agreement between the Company and H.C. Wainwright. All shares of the Company’s common stock, no par value, sold under the December 2020 ATM Offering were issued pursuant to the Company’s shelf registration statement on Form S-3 (Registration No. 333-251149), filed with the SEC on December 4, 2020 (the “December 2020 Registration Statement”). COVID-19: The COVID-19 global pandemic has been unprecedented and unpredictable and is likely to continue to result in significant national and global economic disruption, which may adversely affect our business. Based on the Company’s current assessment, however, the Company does not expect any material impact on its long-term strategic plans, its operations, or its liquidity due to the worldwide spread of COVID-19. However, the Company is actively monitoring this situation and the possible effects on its financial condition, liquidity, operations, suppliers, and industry.

Basis of presentation, summary

Basis of presentation, summary of significant accounting policies and recent accounting pronouncements	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of presentation, summary of significant accounting policies and recent accounting pronouncements	Note 3. Basis of Presentation, Summary of Significant Accounting Policies and Recent Accounting Pronouncements Basis of Presentation and Principles of Consolidation: The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. In the opinion of management, the accompanying unaudited condensed interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of such interim results. Amounts are in thousands except for share, per share and miner amounts. The results for the unaudited condensed interim consolidated statement of operations are not necessarily indicative of results to be expected for the year ending December 31, 2021 or for any future interim period. The unaudited condensed interim consolidated financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2020 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2021. The accompanying unaudited condensed interim consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. 6 Significant Accounting Policies: For a detailed discussion about the Company’s significant accounting policies, see the Company’s December 31, 2020 consolidated financial statements included in its 2020 Annual Report. Income taxes: The Company accounts for income taxes under the asset and liability method, in which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. A valuation allowance is required to the extent any deferred tax assets may not be realizable. ASC Topic 740, Income Taxes, (“ASC 740”), also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s consolidated financial statements. The Company believes that its income tax positions and deductions would be sustained on audit and does not anticipate any adjustments that would result in material changes to its financial position. Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ significantly from those estimates. The most significant accounting estimates inherent in the preparation of the Company’s financial statements include estimates associated with revenue recognition, asset valuations, the useful lives and recoverability of long-lived assets, impairment analysis of indefinite lived intangibles, stock-based compensation, and the valuation allowance associated with the Company’s deferred tax assets. Income (loss) Per Share: Basic net income (loss) per share (“EPS”) of common stock is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The Company excludes its unvested restricted shares from the net loss per share calculation. For the three months ended March 31, 2021, the Company recorded net income and therefore, earnings per share was calculated using the treasury stock method. Dilutive potential common shares include outstanding stock options, restricted stock shares, warrants and Series B Preferred Stock. Potentially dilutive shares are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, restricted stock awards and warrants. Potentially dilutive shares issuable upon conversion of our Series B Preferred Stock are calculated using the if-converted method. 7 The following is a reconciliation of the numerator and denominator of the diluted net income (loss) per share computations for the periods presented below (in thousands except for share and per share amounts): Three Months Ended March 31, 2021 2020 Basic and diluted income (loss) per share: Net income (loss) $ 7,530 $ ( 4,277 ) Basic weighted average number of shares outstanding 83,163,400 28,585,915 Add: - Options to purchase common stock 10,788 - Unvested restricted stock awards 530,623 - Warrants to purchase common stock 4,712 - Convertible Series B preferred shares 2,628 - Diluted weighted average number of shares outstanding 83,712,151 28,585,915 Basic net income (loss) per share $ 0.09 $ ( 0.15 ) Diluted net income (loss) per share $ 0.09 $ ( 0.15 ) Securities that could potentially dilute income (loss) per share in the future were not included in the computation of diluted income (loss) per share at March 31, 2020 because their inclusion would be anti-dilutive are as follows: March 31, 2020 Options to purchase common stock 12,000 Unvested restricted stock awards 1,445,024 Warrants to purchase common stock 3,554,257 Convertible Series B preferred shares 4,199 Total 5,015,480 Recently Issued and Adopted Accounting Pronouncements: The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its consolidated financial statements and assures that there are proper controls in place to ascertain that the Company’s unaudited condensed consolidated financial statements properly reflect the change.

Cryptocurrencies

Cryptocurrencies	3 Months Ended
	Mar. 31, 2021
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract]
Cryptocurrencies	Note 4. Cryptocurrencies The following table presents additional information about cryptocurrencies: Beginning balance - January 1, 2021 $ 11,626 Revenue recognized from cryptocurrencies mined 23,173 Mining pool operating fees (232 ) Ending balance - March 31, 2021 $ 34,567

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment	Note 5. Property and Equipment Property and equipment consisted of the following as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Miners and mining equipment $ 35,383 $ 14,406 Office and computer equipment 93 83 Total cost of property and equipment 35,476 14,489 Less accumulated depreciation (7,170 ) (4,346 ) Property and equipment, net $ 28,306 $ 10,143 During the three months ended March 31, 2021, the Company received 6,703 miners related to its 2020 purchase contracts with Bitmain and, as of March 31, 2021, the Company had received and deployed a total of 13,746 new Antminer model S17-Pro or newer miners. During the three months ended March 31, 2021, the Company paid approximately $56.4 million as deposits, primarily for miners, including $32.6 million paid to Bitmain as refundable deposits for the acquisition of 43,500 Antminer S19j (90 TH/s) miners for an aggregate purchase price of $145.7 million, which are scheduled to be delivered, on a monthly basis, between October 2021 and October 2022, with the remainder of the payments due in advance of deliveries. As of March 31, 2021, the Company reclassified $18.7 million to property and equipment in connection with the receipt of 6,703 miners at the Coinmint Facility. In December 2020, the Company entered into a pilot project with a dual focus of evaluating next-generation immersion technology to increase mining productivity, in addition to evaluating software to reduce energy costs. These technologies have the potential to reduce the Company’s Bitcoin production costs, increase hashrate capacity and significantly extend the life of the Company’s Bitcoin mining ASICs. As of March 31, 2021, approximately $2.7 million in equipment costs for this project (that is not yet operational) is included in “Miners and mining equipment” in the table above. Depreciation and amortization expense totaled approximately $2.8 million and $0.7 million (including $0.02 million and $0.03 million of patent amortization) for the three months ended March 31, 2021 and 2020, respectively. Depreciation is computed on the straight-line basis for the periods the assets are in service. As of March 31, 2021, the Company had outstanding executed purchase agreements for the purchase of miners from Bitmain for a total of 25,400 miners (11,900 new S19-Pro model miners, 12,000 new S19j-Pro model miners, and 1,500 new model S19j miners), scheduled to be delivered through October 2021, and had paid a deposit of 20% of the total purchase price for the acquisition of 42,000 model S19j miners pursuant to a purchase agreement entered into by the Company and Bitmain, dated effective as of April 5, 2021. A summary of the purchase agreement commitments, deposits paid and expected delivery timing (remaining balances are payable in advance of shipping) is summarized as follows: Agreement Date* Original Purchase Commitment Open Purchase Commitment Deposit Balance Expected Shipping August 12, 2020 $ 17,428 $ - $ 8,714 Second Quarter 2021 August 25, 2020 $ 11,110 $ - $ 10,666 Second Quarter 2021 December 18, 2020 (1 of 2) $ 26,308 $ 13,154 $ 13,154 Second - Third Quarter 2021 December 18, 2020 (2 of 2) $ 8,577 $ 3,002 $ 5,604 Second - Third Quarter 2021 March 11, 2021 $ 7,224 $ 3,612 $ 3,612 Fourth Quarter 2021 March 31, 2021** $ - $ - $ 28,980 Deposit on 42,000 miners Total $ 70,647 $ 19,768 $ 70,730 * Pursuant to the Company’s agreements with Bitmain, the Company is responsible for all shipping charges incurred in connection with the delivery of the miners. ** On March 31, 2021, the Company paid approximately $29 million as a deposit for the miners to be acquired under the purchase agreement, dated effective as of April 5, 2021, with Bitmain to acquire approximately 42,000 Antminer model S19j Miners, which are scheduled to be shipped in 12 batches of approximately 3,500 miners each, on a monthly basis, between November 2021 and October 2022. See Note 11.

Long-Term Assets

Long-Term Assets	3 Months Ended
	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Long-Term Assets	Note 6. Long-Term Assets Deposits on Equipment: Deposits on equipment consisted of the following as of March 31, 2021: Balance at January 1, 2021 $ 33,093 Additions 56,353 Reclassification to property and equipment (18,716 ) Balance at March 31, 2021 $ 70,730 During the three months ended March 31, 2021, the Company paid approximately $56.4 million as deposits, primarily for miners, and, as of March 31, 2021, reclassified $18.7 million to property and equipment in connection with the receipt of 6,703

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Accrued Expenses	Note 7. Accrued Expenses As of March 31, 2021 and December 31, 2020, the Company’s accrued expenses consisted of the following: March 31, 2021 December 31, 2020 Sales and use tax $ 2,019 $ 791 Professional fees 1,820 120 Payroll and related benefits 348 415 Other 245 256 Total accrued expenses $ 4,432 $ 1,582

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Stockholders' Equity	Note 8. Stockholders’ Equity At-the-Market Equity Offering: During January 2021, in connection with the Second Amendment to the At-the-Market Sales Agreement between the Company and its sales agent, H.C. Wainwright, the Company received gross proceeds of approximately $84.8 million ($82.7 million net of $2.1 million in expenses) from the sale of 4,433,468 shares of common stock, with an average fair value of $19.13 per share, in the December 2020 ATM Offering. With the sale and issuance of these shares, all $200 million in shares of the Company’s common stock registered under the December 2020 Registration Statement had been issued and the Company completed the December 2020 ATM Offering. Under the terms of the December 2020 ATM Offering, the Company only issued shares of its common stock. Common Stock: During the three months ended March 31, 2021, 242,645 shares of common stock were issued to members of the Company’s board of directors, officers, employees and advisors of the Company in settlement of an equal number of fully vested restricted stock units awarded to such individuals by the Company pursuant to grants made under the Company’s 2019 Equity Plan, as amended (the “2019 Equity Plan”). The Company withheld 40,250 of these shares, at a fair value of approximately $1.2 million, to cover the withholding taxes related to the settlement of these vested restricted stock units, as permitted by the 2019 Equity Plan. During the three months ended March 31, 2021, the Company issued 415,657 shares of its common stock in connection with the exercise of 415,657 common stock warrants issued to investors in connection with the Company’s January 2019 private placement transaction, for net proceeds of approximately $0.8 million. During the three months ended March 31, 2021, the Company issued 543,686 shares of its common stock in connection with the cashless exercise of warrants to purchase 1,257,235 shares of common stock, which were issued to investors in connection with private placement transactions in December 2017. During the three months ended March 31, 2021, 2,000 shares of the Company’s Series B preferred stock were converted into 2,000 shares of its common stock, leaving 2,199 shares outstanding.

Stock Options, Warrants and Res

Stock Options, Warrants and Restricted Common Stock	3 Months Ended
	Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Stock Options, Warrants and Restricted Common Stock	Note 9. Stock Options, Warrants and Restricted Common Stock Stock-Based Compensation: The Company’s stock-based compensation expenses recognized during the three months ended March 31, 2021 and 2020 were attributable to selling, general and administrative expenses, which are included in the accompanying unaudited condensed interim consolidated statements of operations. The Company recognized stock-based compensation expense during the three months ended March 31, 2021 and 2020 totaling $936 and $1,914, respectively, granted under the 2019 Equity Plan, for restricted stock awards. Restricted Common Stock Awards: A summary of the Company’s unvested restricted common stock awards activity in the three months ended March 31, 2021 is presented here: Number of Shares Weighted Average Grant-Date Fair Value Unvested at January 1, 2021 633,305 $ 1.27 Vested (125,624 ) $ 5.24 Granted 86,440 $ 37.15 Unvested at March 31, 2021 594,121 $ 5.62 During the three months ended March 31, 2021, the Company awarded 86,440 restricted shares of common stock under the 2019 Equity Plan to directors, employees and advisors, which are generally eligible to vest over a one-year period. The value of restricted common stock grants is measured based on their fair market value on the date of grant and amortized over their respective vesting periods. During the three months ended March 31, 2021, the fair market value of awards granted totaled $3.2 million and as of March 31, 2021, there was approximately $2.5 million of total unrecognized compensation cost related to unvested restricted common stock rights, which is expected to be recognized over a remaining weighted-average vesting period of approximately six months. Stock Incentive Plan Options: As of March 31, 2021, 12,000 stock options were outstanding, with a weighted average exercise price of $4.09, and a weighted average remaining contractual term of approximately 2.5 years, which were originally issued in 2017 under the Company’s then-effective 2017 Equity Incentive Plan and which are eligible to be settled, upon payment of the exercise price, under the 2019 Equity Plan. The stock options are 100% vested with an intrinsic value of approximately $0.6 million. Other Common Stock Purchase Warrants: Following is a summary of outstanding warrants (issued in connection with previously disclosed private placement transactions in 2019 and 2017) for the three months ended March 31, 2021: Shares Underlying Options/Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding and exercisable at January 1, 2021 2,061,770 $ 32.33 1.1 $ 6,256 Exercised (1,672,892 ) $ 1.94 - $ - Outstanding and exercisable at March 31, 2021 388,878 $ 40.00 0.2 $ 5,160 The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the Company’s closing stock price on March 31, 2021 and the exercise price, multiplied by the number of in-the-money warrants) that would have been received by the warrant holders, had all warrant holders exercised their warrants on March 31, 2021.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 10. Commitments and Contingencies Commitments: Operating Leases: At March 31, 2021, the Company did not have any significant operating lease liabilities or right of use assets. Rent expense for the three months ended March 31, 2021 was nominal. Rent expense, including electric power costs, recorded on a straight-line basis, was approximately $1.3 million for the three months ended March 31, 2020. Contingencies: The Company, and its subsidiaries, are subject at times to various claims, lawsuits and governmental proceedings relating to the Company’s business and transactions arising in the ordinary course of business. The Company cannot predict the final outcome of such proceedings. Where appropriate, the Company vigorously defends such claims, lawsuits and proceedings. Some of these claims, lawsuits and proceedings seek damages, including, consequential, exemplary or punitive damages, in amounts that could, if awarded, be significant. Certain of the claims, lawsuits and proceedings arising in ordinary course of business are covered by the Company’s insurance program. The Company maintains property and various types of liability insurance in an effort to protect the Company from such claims. In terms of any matters where there is no insurance coverage available to the Company, or where coverage is available and the Company maintains a retention or deductible associated with such insurance, the Company may establish an accrual for such loss, retention or deductible based on current available information. In accordance with accounting guidance, if it is probable that an asset has been impaired or a liability has been incurred as of the date of the financial statements, and the amount of loss is reasonably estimable, then an accrual for the cost to resolve or settle these claims is recorded by the Company in the accompanying consolidated balance sheets. If it is reasonably possible that an asset may be impaired as of the date of the financial statement, then the Company discloses the range of possible loss. Expenses related to the defense of such claims are recorded by the Company as incurred and included in the accompanying consolidated statements of operations. Management, with the assistance of outside counsel, may from time to time adjust such accruals according to new developments in the matter, court rulings, or changes in the strategy affecting the Company’s defense of such matters. On the basis of current information, the Company does not believe there is a reasonable possibility that, other than with regard to the Class Action described below, any material loss, if any, will result from any claims, lawsuits and proceedings to which the Company is subject to either individually, or in the aggregate. Shareholder Class Action Suit: On February 17, 2018, Creighton Takata filed an action asserting putative class action claims on behalf of the Company’s stockholders in the United District Court for the District of New Jersey, Takata v. Riot Blockchain Inc., et al. On April 18, 2018, Joseph J. Klapper, Jr., filed a complaint against Riot Blockchain, Inc., and certain of its officers and directors in the United District Court for the District of New Jersey ( Klapper v. Riot Blockchain Inc., et al. Takata Takata Klapper Lead Plaintiff filed a consolidated complaint on January 15, 2019. Defendants filed motions to dismiss on March 18, 2019. In lieu of opposing defendants’ motions to dismiss, Lead Plaintiff filed another amended complaint on May 9, 2019. Defendants filed multiple motions to dismiss the amended complaint starting on September 3, 2019. 12 On April 30, 2020, the court granted the motions to dismiss, which resulted in the dismissal of all claims without prejudice. On December 24, 2020, Lead Plaintiff filed another amended complaint. Defendants filed multiple motions to dismiss the amended complaint starting on February 8, 2021, which have been fully briefed. Because this litigation is still at this early stage, we cannot reasonably estimate the likelihood of an unfavorable outcome or the magnitude of such an outcome, if any. Shareholder Derivative Cases: On April 5, 2018, Michael Jackson filed a shareholder derivative complaint on behalf of the Company in the Supreme Court of the State of New York, County of Nassau, against certain of the Company’s officers and directors, as well as against an investor ( Jackson v. Riot Blockchain, Inc., et al. On May 22, 2018, two additional shareholder derivative complaints were filed on behalf of the Company in the Eighth Judicial District Court of the State of Nevada in and for the County of Clark ( Kish v. O’Rourke, et al. Gaft v. O’Rourke, et al. On September 24, 2018, the court entered an order consolidating the Gaft Kish In re Riot BlockChain, Inc. Shareholder Derivative Litigation On October 9, 2018, another shareholder derivative complaint was filed on behalf of the Company in the United District Court for the Eastern District of New York ( Rotkowitz v. O’Rourke, et al. On October 22, 2018, another shareholder derivative complaint was filed on behalf of the Company in the United District Court for the Southern District of New York ( Finitz v. O’Rourke, et al. On December 13, 2018, another shareholder derivative complaint was filed on behalf of the Company in the United District Court for the Northern District of New York ( Monts v. O’Rourke, et al. 13 Defendants intend to vigorously contest plaintiffs’ allegations in the shareholder derivative actions and plaintiffs’ right to bring the action in the name of Riot Blockchain. But because this litigation is still at this early stage, we cannot reasonably estimate the likelihood of an unfavorable outcome or the magnitude of such an outcome, if any. Kashwise Demand: On February 18, 2020, the Company received a demand letter from Kashwise Global Funding, Inc. (“Kashwise”) for the payment of fees pursuant to an alleged arrangement between the Company and Kashwise in connection with the January 2019 private exempt offering of the Company’s securities to a group of accredited investors (the “Kashwise Demand”). The Company timely responded to the Kashwise Demand; however, on April 13, 2020, Kashwise Global Funding Solutions, Inc. filed suit against the Company in the Circuit Court of the 17th Judicial Circuit in and for Broward County, Florida (the “Kashwise Suit”) alleging substantially similar claims as in the Kashwise Demand. The Company has removed the Kashwise Suit to Federal District Court in and for the Southern District of Florida where it remains pending with a scheduled trial date (if not delayed by the COVID-19 pandemic) in June of 2021. The Company continues to vigorously dispute the allegations made in the Kashwise Suit. The Company has also filed a motion seeking summary judgment as a matter of law in its favor on all claims in the Kashwise Suit, which is pending with the Court. However, the Company cannot reasonably estimate the likelihood of an unfavorable outcome or the magnitude of such an outcome, if any.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	Note 11. Subsequent Events: Common Stock: Subsequent to March 31, 2021, 25,884 shares of common stock were issued to members of the Company’s board of directors, officers, employees and advisors of the Company in settlement of an equal number of fully vested restricted stock units awarded to such individuals by the Company pursuant to grants made under the Company’s 2019 Equity Plan. The Company withheld 1,875 of these shares at a fair value of approximately $0.1 million, to cover the withholding taxes related to the settlement of these vested restricted stock units. Subsequent to March 31, 2021, for 2021 services the Company awarded 6,650 restricted common stock units vesting over a one-year period to certain employees of the Company issued pursuant to the 2019 Equity Plan. Miners: On April 5, 2021, the Company entered into a sales agreement with Bitmain to acquire approximately 42,000 Antminer model S19j miners. Bitmain is scheduled to manufacture these new miners in 12 batches of approximately 3,500 miners (each, a “Batch”), which will be delivered, on a monthly basis, between November 2021 and October 2022. The Company will pay Bitmain approximately $138.5 million (subject to adjustments, offsets and costs as set forth in the agreement) (the “Purchase Price”), payable as follows: (i) 20% of the Purchase Price was paid on March 31, 2021 as a refundable down payment in connection with the agreement; (ii) 30% of the Purchase Price per Batch due 6 months in advance of the shipment date for such Batch; and (iii) the remaining 50% of the Purchase Price per Batch due 30 days in advance of the shipment date for such Batch. Acquisitions: On April 8, 2021, the Company entered into a stock purchase agreement with Northern Data AG, a German stock corporation (the “Seller”), and Whinstone US, Inc., a Delaware corporation and a wholly owned subsidiary of the Seller (“Whinstone”), which provides for Riot to acquire all of the issued and outstanding equity interests of Whinstone (the “Acquisition”). The Acquisition is currently expected to close during the second quarter of 2021, subject to the satisfaction or waiver of various closing conditions customary for a transaction of this type, including, among other things, (a) the expiration or termination of the applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, (b) the listing authorization of the shares of Riot’s common stock, no par value, to be issued to the Seller as part of the consideration paid for the Acquisition by the Nasdaq Stock Market (“NASDAQ”), subject to official notice of issuance, to the extent required by the rules of NASDAQ, (c) the absence of government orders or laws prohibiting or making illegal the Acquisition, (d) the absence of pending legal proceedings challenging or seeking to enjoin, restrain or prohibit or make illegal the Acquisition, (e) the Seller and Whinstone obtaining certain third party consents, (f) each of Riot and the Seller executing and delivering a Shareholder Agreement and (g) the absence of any material adverse effect on Whinstone or its subsidiary, taken as a whole, or on Riot and its subsidiaries, taken as a whole. 14 At the closing of the Acquisition, Riot will pay to the Seller $80.0 million in cash, subject to closing adjustments and issue to the Seller 11,800,000 shares of Riot’s common stock, no par value. Whinstone is based in Rockdale, Texas and its facility is located on an 100-acre site, hosting Bitcoin mining customers in three buildings totaling 190,000 square feet. An additional 60,000 square foot building is also under development. The site is subject to a long-term lease agreement, with electricity provided via a long-term power supply contract. Whinstone has approximately 100 employees. Long-Term Investments: In September 2017 and February 2018, the Company acquired a minority interest for $9.4 million in Coinsquare Ltd. (“Coinsquare”), which operates a digital crypto currency exchange platform in Canada. The investment resulted in an ownership in Coinsquare by the Company of approximately 11.7%, on a fully diluted basis. In 2020, the Company determined there were indicators that would cause a 100% impairment of the Coinsquare investment, resulting in the Company recording an impairment expense of $9.4 million in 2020. The Company elected under ASU-2016-01 to account for the Coinsquare investment using the measurement alternative at cost, less any impairment, plus or minus changes resulting from observable price changes. On April 16, 2021, pursuant an investment agreement between Coinsquare, Coinsquare’s shareholders (including Riot) and Mogo Inc. (NASDAQ: MOGO) (“Mogo Investment Agreement”), a digital payments and financial technology company (“Mogo”), Riot sold 631,377 of its 3.4 million common shares of Coinsquare (the “Coinsquare Shares”) in exchange for 373,084 common shares of Mogo (the “Mogo Shares”) and approximately US $1.8 million in cash. Subsequently, on May 12, 2021, Riot entered into a binding term sheet with Mogo to sell its remaining 2.2 million Coinsquare Shares at a purchase price of approximately US $18 million, payable at Mogo’s option, in cash, Mogo Shares, or a blend of cash and Mogo Shares, following execution of a share purchase agreement. The remaining 573,830 Coinsquare Shares held by Riot, are expected to be sold in connection with Mogo’s exercise of its options to purchase additional Coinsquare Shares under the Mogo Investment Agreement.

Basis of presentation, summar_2

Basis of presentation, summary of significant accounting policies and recent accounting pronouncements (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation: The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. In the opinion of management, the accompanying unaudited condensed interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of such interim results. Amounts are in thousands except for share, per share and miner amounts. The results for the unaudited condensed interim consolidated statement of operations are not necessarily indicative of results to be expected for the year ending December 31, 2021 or for any future interim period. The unaudited condensed interim consolidated financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2020 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2021. The accompanying unaudited condensed interim consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Significant Accounting Policies: For a detailed discussion about the Company’s significant accounting policies, see the Company’s December 31, 2020 consolidated financial statements included in its 2020 Annual Report. Income taxes: The Company accounts for income taxes under the asset and liability method, in which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. A valuation allowance is required to the extent any deferred tax assets may not be realizable. ASC Topic 740, Income Taxes, (“ASC 740”), also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s consolidated financial statements. The Company believes that its income tax positions and deductions would be sustained on audit and does not anticipate any adjustments that would result in material changes to its financial position. Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ significantly from those estimates. The most significant accounting estimates inherent in the preparation of the Company’s financial statements include estimates associated with revenue recognition, asset valuations, the useful lives and recoverability of long-lived assets, impairment analysis of indefinite lived intangibles, stock-based compensation, and the valuation allowance associated with the Company’s deferred tax assets.
Income (loss) Per Share	Income (loss) Per Share: Basic net income (loss) per share (“EPS”) of common stock is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The Company excludes its unvested restricted shares from the net loss per share calculation. For the three months ended March 31, 2021, the Company recorded net income and therefore, earnings per share was calculated using the treasury stock method. Dilutive potential common shares include outstanding stock options, restricted stock shares, warrants and Series B Preferred Stock. Potentially dilutive shares are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, restricted stock awards and warrants. Potentially dilutive shares issuable upon conversion of our Series B Preferred Stock are calculated using the if-converted method. 7 The following is a reconciliation of the numerator and denominator of the diluted net income (loss) per share computations for the periods presented below (in thousands except for share and per share amounts): Three Months Ended March 31, 2021 2020 Basic and diluted income (loss) per share: Net income (loss) $ 7,530 $ ( 4,277 ) Basic weighted average number of shares outstanding 83,163,400 28,585,915 Add: - Options to purchase common stock 10,788 - Unvested restricted stock awards 530,623 - Warrants to purchase common stock 4,712 - Convertible Series B preferred shares 2,628 - Diluted weighted average number of shares outstanding 83,712,151 28,585,915 Basic net income (loss) per share $ 0.09 $ ( 0.15 ) Diluted net income (loss) per share $ 0.09 $ ( 0.15 ) Securities that could potentially dilute income (loss) per share in the future were not included in the computation of diluted income (loss) per share at March 31, 2020 because their inclusion would be anti-dilutive are as follows: March 31, 2020 Options to purchase common stock 12,000 Unvested restricted stock awards 1,445,024 Warrants to purchase common stock 3,554,257 Convertible Series B preferred shares 4,199 Total 5,015,480
Recently Issued and Adopted Accounting Pronouncements	Recently Issued and Adopted Accounting Pronouncements: The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its consolidated financial statements and assures that there are proper controls in place to ascertain that the Company’s unaudited condensed consolidated financial statements properly reflect the change.

Basis of presentation, summar_3

Basis of presentation, summary of significant accounting policies and recent accounting pronouncements (Tables)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Schedule of Reconciliation of Numerator and Denominator	The following is a reconciliation of the numerator and denominator of the diluted net income (loss) per share computations for the periods presented below (in thousands except for share and per share amounts): Three Months Ended March 31, 2021 2020 Basic and diluted income (loss) per share: Net income (loss) $ 7,530 $ ( 4,277 ) Basic weighted average number of shares outstanding 83,163,400 28,585,915 Add: - Options to purchase common stock 10,788 - Unvested restricted stock awards 530,623 - Warrants to purchase common stock 4,712 - Convertible Series B preferred shares 2,628 - Diluted weighted average number of shares outstanding 83,712,151 28,585,915 Basic net income (loss) per share $ 0.09 $ ( 0.15 ) Diluted net income (loss) per share $ 0.09 $ ( 0.15 )
Schedule of Antidilutive Securities	Securities that could potentially dilute income (loss) per share in the future were not included in the computation of diluted income (loss) per share at March 31, 2020 because their inclusion would be anti-dilutive are as follows: March 31, 2020 Options to purchase common stock 12,000 Unvested restricted stock awards 1,445,024 Warrants to purchase common stock 3,554,257 Convertible Series B preferred shares 4,199 Total 5,015,480

Cryptocurrencies (Tables)

Cryptocurrencies (Tables)	3 Months Ended
	Mar. 31, 2021
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract]
Summary of Additional Information About Cryptocurrencies	The following table presents additional information about cryptocurrencies: Beginning balance - January 1, 2021 $ 11,626 Revenue recognized from cryptocurrencies mined 23,173 Mining pool operating fees (232 ) Ending balance - March 31, 2021 $ 34,567

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consisted of the following as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Miners and mining equipment $ 35,383 $ 14,406 Office and computer equipment 93 83 Total cost of property and equipment 35,476 14,489 Less accumulated depreciation (7,170 ) (4,346 ) Property and equipment, net $ 28,306 $ 10,143
Schedule of Purchase Agreement Commitments, Deposits Paid and Expected Delivery Timing	Agreement Date* Original Purchase Commitment Open Purchase Commitment Deposit Balance Expected Shipping August 12, 2020 $ 17,428 $ - $ 8,714 Second Quarter 2021 August 25, 2020 $ 11,110 $ - $ 10,666 Second Quarter 2021 December 18, 2020 (1 of 2) $ 26,308 $ 13,154 $ 13,154 Second - Third Quarter 2021 December 18, 2020 (2 of 2) $ 8,577 $ 3,002 $ 5,604 Second - Third Quarter 2021 March 11, 2021 $ 7,224 $ 3,612 $ 3,612 Fourth Quarter 2021 March 31, 2021** $ - $ - $ 28,980 Deposit on 42,000 miners Total $ 70,647 $ 19,768 $ 70,730 * Pursuant to the Company’s agreements with Bitmain, the Company is responsible for all shipping charges incurred in connection with the delivery of the miners. ** On March 31, 2021, the Company paid approximately $29 million as a deposit for the miners to be acquired under the purchase agreement, dated effective as of April 5, 2021, with Bitmain to acquire approximately 42,000 Antminer model S19j Miners, which are scheduled to be shipped in 12 batches of approximately 3,500 miners each, on a monthly basis, between November 2021 and October 2022. See Note 11.

Long-Term Assets (Tables)

Long-Term Assets (Tables)	3 Months Ended
	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Deposits on Equipment	Deposits on equipment consisted of the following as of March 31, 2021: Balance at January 1, 2021 $ 33,093 Additions 56,353 Reclassification to property and equipment (18,716 ) Balance at March 31, 2021 $ 70,730

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2021
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract]
Schedule of Accrued Expenses	As of March 31, 2021 and December 31, 2020, the Company’s accrued expenses consisted of the following: March 31, 2021 December 31, 2020 Sales and use tax $ 2,019 $ 791 Professional fees 1,820 120 Payroll and related benefits 348 415 Other 245 256 Total accrued expenses $ 4,432 $ 1,582

Stock Options, Warrants and R_2

Stock Options, Warrants and Restricted Common Stock (Tables)	3 Months Ended
	Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Summary of Restricted Plan Activity	A summary of the Company’s unvested restricted common stock awards activity in the three months ended March 31, 2021 is presented here: Number of Shares Weighted Average Grant-Date Fair Value Unvested at January 1, 2021 633,305 $ 1.27 Vested (125,624 ) $ 5.24 Granted 86,440 $ 37.15 Unvested at March 31, 2021 594,121 $ 5.62
Schedule of Changes in Outstanding Warrants	Following is a summary of outstanding warrants (issued in connection with previously disclosed private placement transactions in 2019 and 2017) for the three months ended March 31, 2021: Shares Underlying Options/Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding and exercisable at January 1, 2021 2,061,770 $ 32.33 1.1 $ 6,256 Exercised (1,672,892 ) $ 1.94 - $ - Outstanding and exercisable at March 31, 2021 388,878 $ 40.00 0.2 $ 5,160

Organization and Operation of_2

Organization and Operation of Our Business (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)	Dec. 31, 2020	Dec. 31, 2019
2020 contract with Bitmain [Member]
Business Acquisition [Line Items]
Number of computers acquired	6,703
Miners deployed [Member]
Business Acquisition [Line Items]
Number of computers acquired	13,746
Agreement with Bitmain for acquisition of Antminers [Member]
Business Acquisition [Line Items]
Number of computers acquired		33,646
S19j-Pro Miners [Member]
Business Acquisition [Line Items]
Number of computers acquired		12,000
S19-Pro Miners [Member]
Business Acquisition [Line Items]
Number of computers acquired		20,606
S19 Miners [Member]
Business Acquisition [Line Items]
Number of computers acquired		1,040
Agreement with Coinmint, LLC [Member]
Business Acquisition [Line Items]
Number of computers acquired		7,043
S17-Pro miners [Member]
Business Acquisition [Line Items]
Number of computers acquired		3,043	4,000
Antminer S19j [Member] | Bitmain [Member]
Business Acquisition [Line Items]
Number of computers acquired	43,500
Value of computers acquired	$ 145.7
Refundable deposit of miners	$ 32.6
Delivery period of computers	between October 2021 and October 2022

Liquidity and Financial Condi_2

Liquidity and Financial Condition (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Jan. 31, 2021USD ($)$ / sharesshares	Mar. 31, 2021USD ($)$ / sharesshares	Mar. 31, 2020USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Cash and cash equivalents		$ 241,012	$ 13,956	$ 223,382	$ 7,440
Working capital		268,800
Stockholders' equity		367,817	33,231	277,071	$ 26,235
Accumulated deficit		222,382		$ 229,912
Deposits on equipment		56,353
Reclassification to property and equipment		(18,716)
Coinmint, LLC [Member]
Reclassification to property and equipment		$ 18,700
Number of receipt miners		6,703
2020 ATM Offering [Member] | Common Stock [Member] | H.C. Wainwright [Member]
Stockholders' equity	$ 200,000
Commissions paid		$ 2,100
Weighted average price | $ / shares	$ 19.13	$ 19.13
Stock issued during period, shares | shares	4,433,468	4,433,468
Stock issued during period, value		$ 200,000
Proceeds from the sale of stock net	$ 82,700

Basis of presentation, summar_4

Basis of presentation, summary of significant policies (Schedule of Reconciliation of Numerator and Denominator) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Basic and diluted income (loss) per share:
Net income (loss)	$ 7,530	$ (4,277)
Basic weighted average number of shares outstanding	83,163,400	28,585,915
Add:
Options to purchase common stock	10,788
Unvested restricted stock awards	530,623
Warrants to purchase common stock	4,712
Convertible Series B preferred shares	2,628
Diluted weighted average number of shares outstanding	83,712,151	28,585,915
Basic net income (loss) per share	$ 0.09	$ (0.15)
Diluted net income (loss) per share	$ 0.09	$ (0.15)

Basis of presentation, summar_5

Basis of presentation, summary of significant accounting policies (Schedule of Antidilutive Securities) (Details)	3 Months Ended
	Mar. 31, 2020shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares not included in the computation of EPS	5,015,480
Option to purchase common stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares not included in the computation of EPS	12,000
Unvested restricted stock awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares not included in the computation of EPS	1,445,024
Warrants to purchase common stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares not included in the computation of EPS	3,554,257
Convertible Series B Preferred Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares not included in the computation of EPS	4,199

Cryptocurrencies (Summary of Ad

Cryptocurrencies (Summary of Additional Information About Cryptocurrencies) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract]
Beginning balance, January 1, 2021	$ 11,626
Revenue recognized from cryptocurrencies mined	23,173
Mining pool operating fees	(232)
Ending balance, March 31, 2021	$ 34,567

Property and Equipment (Narrati

Property and Equipment (Narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)	Dec. 31, 2020USD ($)
Property, Plant and Equipment [Line Items]
Equipment costs	$ 35,476		$ 14,489
Deposits on equipment	56,353
Reclassification to property and equipment	(18,716)
Coinmint, LLC [Member]
Property, Plant and Equipment [Line Items]
Reclassification to property and equipment	$ 18,700
Number of receipt miners	6,703
S19-Pro Miners [Member]
Property, Plant and Equipment [Line Items]
Number of computers acquired			20,606
2020 contract with Bitmain [Member]
Property, Plant and Equipment [Line Items]
Number of computers acquired	6,703
Miners deployed [Member]
Property, Plant and Equipment [Line Items]
Number of computers acquired	13,746
Delivered Beginning in January 2021 [Member]
Property, Plant and Equipment [Line Items]
Number of computers acquired	25,400
Delivery period of computers	through October 2021
Delivered Beginning in January 2021 [Member] | S19-Pro Miners [Member]
Property, Plant and Equipment [Line Items]
Number of computers acquired	11,900
Delivered Beginning in January 2021 [Member] | S19j Miners [Member]
Property, Plant and Equipment [Line Items]
Number of computers acquired	12,000
Delivered through October 2021 [Member] | S19j Miners [Member]
Property, Plant and Equipment [Line Items]
Number of computers acquired	1,500
Bitmain [Member] | Antminer S19j [Member]
Property, Plant and Equipment [Line Items]
Number of computers acquired	43,500
Refundable deposit of miners	$ 32,600
Value of computers acquired	$ 145,700
Delivery period of computers	between October 2021 and October 2022
Bitmain [Member] | Antminer S19j Miners [Member]
Property, Plant and Equipment [Line Items]
Number of computers acquired	42,000
Refundable deposit of miners	$ 29,000
Value of computers acquired	$ 18,700
Delivery period of computers	between November 2021 and October 2022
Percentage of paid deposit	20.00%
Bitmain [Member] | Antminer S19j Miners [Member] | Per Batch [Member]
Property, Plant and Equipment [Line Items]
Number of computers acquired	3,500
Equipment [Member]
Property, Plant and Equipment [Line Items]
Equipment costs	$ 2,700

Property and Equipment (Schedul

Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	$ 35,476		$ 14,489
Less accumulated depreciation	(7,170)		(4,346)
Property and equipment, net	28,306		10,143
Depreciation expense	2,800	$ 700
Miners and Mining Equipment [Member]
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	35,383		14,406
Office and computer equipment [Member]
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	93		$ 83
Patents [Member]
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 20	$ 30

Property and Equipment (Sched_2

Property and Equipment (Schedule of Purchase Agreement Commitments, Deposits Paid and Expected Delivery Timing) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Property, Plant and Equipment [Line Items]
Original Purchase Commitment	$ 70,647
Open Purchase Commitment	19,768
Deposit Balance	$ 70,730
Agreement Date One [Member]
Property, Plant and Equipment [Line Items]
Agreement Date	August 12, 2020	[1]
Original Purchase Commitment	$ 17,428
Open Purchase Commitment
Deposit Balance	$ 8,714
Expected Shipping	Second Quarter 2021
Agreement Date Two [Member]
Property, Plant and Equipment [Line Items]
Agreement Date	August 25, 2020	[1]
Original Purchase Commitment	$ 11,110
Open Purchase Commitment
Deposit Balance	$ 10,666
Expected Shipping	Second Quarter 2021
Agreement Date Three [Member]
Property, Plant and Equipment [Line Items]
Agreement Date	December 18, 2020	[1]
Original Purchase Commitment	$ 26,308
Open Purchase Commitment	13,154
Deposit Balance	$ 13,154
Expected Shipping	Second - Third Quarter 2021
Agreement Date Four [Member]
Property, Plant and Equipment [Line Items]
Agreement Date	December 18, 2020	[1]
Original Purchase Commitment	$ 8,577
Open Purchase Commitment	3,002
Deposit Balance	$ 5,604
Expected Shipping	Second - Third Quarter 2021
Agreement Date Five [Member]
Property, Plant and Equipment [Line Items]
Agreement Date	March 11, 2021	[1]
Original Purchase Commitment	$ 7,224
Open Purchase Commitment	3,612
Deposit Balance	$ 3,612
Expected Shipping	Fourth Quarter 2021
Agreement Date Six [Member]
Property, Plant and Equipment [Line Items]
Agreement Date	March 31, 2021	[1],[2]
Original Purchase Commitment
Open Purchase Commitment
Deposit Balance	$ 28,980
Expected Shipping	Deposit on 42,000 miners
[1]	Pursuant to the Company’s agreements with Bitmain, the Company is responsible for all shipping charges incurred in connection with the delivery of the miners.
[2]	On March 31, 2021, the Company paid approximately $29 million as a deposit for the miners to be acquired under the purchase agreement, dated effective as of April 5, 2021, with Bitmain to acquire approximately 42,000 Antminer model S19j Miners, which are scheduled to be shipped in 12 batches of approximately 3,500 miners each, on a monthly basis, between November 2021 and October 2022. See Note 11.

Long-Term Assets (Narrative) (D

Long-Term Assets (Narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)
Finite-Lived Intangible Assets [Line Items]
Deposits on equipment	$ 56,353
Coinmint facility [Member]
Finite-Lived Intangible Assets [Line Items]
Number of computers acquired	6,703

Long-Term Assets (Schedule of D

Long-Term Assets (Schedule of Deposits on Equipment) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Long-term Assets Schedule Of Deposits On Equipment
Balance at January 1, 2021	$ 33,093
Additions	56,353
Reclassification to property and equipment	(18,716)
Balance at March 31, 2021	$ 70,730

Accrued Expenses (Schedule of A

Accrued Expenses (Schedule of Accrued Expenses) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accrued Liabilities, Current [Abstract]
Sales and use tax	$ 2,019	$ 791
Professional fees	1,820	120
Payroll and related benefits	348	415
Other	245	256
Total accrued expenses	$ 4,432	$ 1,582

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Jan. 31, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Proceeds from the sale of stock		$ 84,817	$ 9,495
Issuance expense		2,137	311
Value of shares registered		367,817	$ 33,231	$ 277,071	$ 26,235
Restricted Stock [Member]
Class of Stock [Line Items]
Proceeds from the sale of stock		$ 1,200
Warrant [Member] | Investors [Member]
Class of Stock [Line Items]
Number of warrants issued		1,257,235
Number of warrants exercised		543,686
Members of our board of directors and an employee of Company [Member] | Restricted Stock [Member]
Class of Stock [Line Items]
Issuance of common stock		242,645
Number of shares held to cover withholding taxes related to the settlement of restricted stock units		40,250
Common Stock [Member] | Investors [Member]
Class of Stock [Line Items]
Issuance of common stock		415,657
Issuance of common stock, value		$ 800
Issuance of common stock shares exercised		415,657
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Conversion of preferred stock		2,000
Leaving shares outstanding		2,199
2020 ATM Offering [Member] | Common Stock [Member] | H.C. Wainwright [Member]
Class of Stock [Line Items]
Proceeds from the sale of stock	$ 84,800
Proceeds from the sale of stock net	82,700
Issuance expense	$ 2,100
Weighted average price	$ 19.13	$ 19.13
Issuance of common stock	4,433,468	4,433,468
Issuance of common stock, value		$ 200,000
Value of shares registered	$ 200,000

Stock Options, Warrants and R_3

Stock Options, Warrants and Restricted Common Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 2,500
Unrecognized compensation cost, period for recognition	6 months
Fair value of restricted stock granted	$ 3,200
Restricted stock awards under 2019 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 936	$ 1,914
Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding	12,000
Weighted average exercise price	$ 4.09
Weighted average remaining contractual term	2 years 6 months
Intrinsic value	$ 600

Stock Options, Warrants and R_4

Stock Options, Warrants and Restricted Common Stock (Schedule of Restricted Stock Activity) (Details) - Restricted Stock [Member]	3 Months Ended
	Mar. 31, 2021$ / sharesshares
Number of Shares
Unvested at January 1, 2021 | shares	633,305
Vested | shares	(125,624)
Granted | shares	86,440
Unvested at March 31, 2021 | shares	594,121
Weighted Average Grant-Date Fair value
Unvested at January 1, 2021 | $ / shares	$ 1.27
Vested | $ / shares	5.24
Granted | $ / shares	37.15
Unvested at March 31, 2021 | $ / shares	$ 5.62

Stock Options, Warrants and R_5

Stock Options, Warrants and Restricted Common Stock (Schedule of Award Activity) (Details) - Other common stock purchase options [Member] - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Shares Underlying Options/Warrants
Outstanding, beginning	2,061,770
Exercised	(1,672,892)
Outstanding, ending	388,878	2,061,770
Exercisable	388,878
Weighted Average Exercise Price
Outstanding, beginning	$ 32.33
Exercised	1.94
Outstanding, ending	40	$ 32.33
Exercisable	$ 40
Weighted Average Remaining Contractual Term (Years)
Outstanding	2 months 12 days	1 year 1 month 6 days
Exercisable	2 months 12 days
Aggregate Intrinsic Value
Outstanding	$ 5,160	$ 6,256
Exercisable	$ 5,160

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020USD ($)
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 1.3

Subsequent Events (Details)

Subsequent Events (Details) $ in Thousands	May 12, 2021USD ($)shares	Apr. 08, 2021USD ($)ft²shares	Apr. 16, 2021USD ($)shares	Mar. 31, 2021USD ($)shares	Mar. 31, 2020USD ($)	Dec. 31, 2020USD ($)	Feb. 28, 2018USD ($)
Subsequent Event [Line Items]
Proceeds from the sale of stock | $				$ 84,817	$ 9,495
Whinstone [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Payment for acquisition | $		$ 80,000
Shares exchanged in acquisition		11,800,000
Area of Building | ft²		190,000
Area of building under development | ft²		60,000
Coinsquare [Member]
Subsequent Event [Line Items]
Minority interest value | $							$ 9,400
Ownership interest percentage						11.70%
Percentage of impairment of acquired entity						100.00%
Impairment expense | $						$ 9,400
Bitmain [Member] | Antminer S19j Miners [Member]
Subsequent Event [Line Items]
Number of computers acquired				42,000
Delivery period of computers				between November 2021 and October 2022
Payment for acquisition | $				$ 138,500
Bitmain [Member] | Antminer S19j Miners [Member] | Per Batch [Member]
Subsequent Event [Line Items]
Number of computers acquired				3,500
Subsequent to March 31, 2021 [Member] | Mogo Inc. [Member]
Subsequent Event [Line Items]
Shares exchanged in acquisition	2.2		373,084
Purchase price | $	$ 18,000		$ 1,800
Subsequent to March 31, 2021 [Member] | Coinsquare [Member]
Subsequent Event [Line Items]
Shares exchanged in acquisition			631,377
Shares owned	573,830		3.4
Restricted Stock [Member]
Subsequent Event [Line Items]
Proceeds from the sale of stock | $				$ 1,200
Restricted Stock [Member] | Subsequent to March 31, 2021 [Member]
Subsequent Event [Line Items]
Number of shares held to cover withholding taxes related to the settlement of restricted stock units				1,875
Proceeds from the sale of stock | $				$ 100
Number of units awarded				6,650
Restricted Stock [Member] | Members of our board of directors and an employee of Company [Member]
Subsequent Event [Line Items]
Stock issued during period				242,645
Number of shares held to cover withholding taxes related to the settlement of restricted stock units				40,250
Restricted Stock [Member] | Members of our board of directors and an employee of Company [Member] | Subsequent to March 31, 2021 [Member]
Subsequent Event [Line Items]
Stock issued during period				25,884