Marathon Digital (MARA) 10-Q 10 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 09, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	001-36555
Entity Registrant Name	MARATHON DIGITAL HOLDINGS, INC.
Entity Central Index Key	0001507605
Entity Tax Identification Number	01-0949984
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	101 NE Third Avenue
Entity Address, Address Line Two	Suite 1200
Entity Address, City or Town	Fort Lauderdale
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33301
City Area Code	702
Local Phone Number	945-2773
Title of 12(b) Security	Common Stock
Trading Symbol	MARA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		167,399,935

Consolidated Condensed Balance

Consolidated Condensed Balance Sheet - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 124,882	$ 103,705
Restricted cash		8,800
Digital assets	189,087	121,842
Other receivable	172	18
Deposits	11,927	2,350
Prepaid expenses and other current assets	60,240	40,833
Total current assets	386,308	277,548
Other assets:
Property and equipment (net of accumulated depreciation of $34,356 and $16,622, respectively)	714,916	273,026
Advances to vendors	57,511	488,299
Investments	80,194	37,000
Long term deposits	54,450	40,903
Long term prepaids	9,373	8,317
Right-of-use assets	1,180	1,276
Digital assets, restricted		68,875
Total other assets	917,624	917,696
TOTAL ASSETS	1,303,932	1,195,244
Current liabilities:
Accounts payable	3,235	1,312
Accrued expenses	17,756	22,295
Legal reserve payable		1,171
Operating lease liabilities	336	326
Current portion of accrued interest	2,492	1,011
Total current liabilities	23,819	26,115
Long-term liabilities:
Notes payable	733,260	732,289
Term loan		49,882
Operating lease liabilities	909	1,017
Deferred tax liabilities	75
Total long-term liabilities	734,244	783,188
Stockholders’ Equity:
Preferred stock, 0.0001 par value, 50,000,000 shares authorized, no shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively
Common stock, 0.0001 par value, 200,000,000 shares authorized; 167,259,602 and 145,565,916 issued and outstanding at March 31, 2023 and December 31, 2022, respectively	17	15
Additional paid-in capital	1,393,428	1,226,267
Accumulated other comprehensive loss
Accumulated deficit	(847,576)	(840,341)
Total stockholders’ equity	545,869	385,941
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,303,932	$ 1,195,244

Consolidated Condensed Balanc_2

Consolidated Condensed Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accumulated depreciation	$ 34,356	$ 16,622
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	167,259,602	145,565,916
Common stock, shares outstanding	167,259,602	145,565,916

Consolidated Condensed Statemen

Consolidated Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Total revenues	$ 51,132	$ 51,723
Cost of revenues
Cost of revenues - energy, hosting and other	(33,377)	(12,522)
Cost of revenues - depreciation and amortization	(17,733)	(13,877)
Total cost of revenues	(51,110)	(26,399)
Operating expenses
General and administrative expenses	(15,344)	(15,515)
Impairment of digital assets	(6,151)	(17,647)
Impairment of patents		(919)
Realized gains on digital assets and unrealized gains (losses) on digital assets loan receivable	17,615	(461)
Realized and unrealized gains (losses) on digital assets held within Investment Fund		(5,328)
Total operating expenses	(3,880)	(39,870)
Operating loss	(3,858)	(14,546)
Other non-operating income	791	247
Loss from extinguishment of debt	(333)
Interest expense	(3,760)	(2,814)
Loss before income taxes	(7,160)	(17,113)
Income tax benefit (expense)	(75)	4,262
Net loss	$ (7,235)	$ (12,851)
Net loss per share, basic and diluted:	$ (0.05)	$ (0.12)
Weighted average shares outstanding, basic and diluted:	159,186,506	103,102,596

Consolidated Condensed Statem_2

Consolidated Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2021		$ 10	$ 835,694	$ (153,603)	$ 682,101
Balance, shares at Dec. 31, 2021		102,733,273
Stock-based compensation, net of tax withholding			9,275		9,275
Stock based compensation, net of tax withholding, shares		118,796
Issuance of common stock, net of offering costs/At-the-market offering		$ 1	90,193		90,194
Issuance of common stock, net of offering costs/At-the-market offering, shares		2,999,644
Common stock issued for long term service contract			4,580		4,580
Common stock issued for service and license agreements, shares		200,000
Net loss				(12,851)	(12,851)
Balance at Mar. 31, 2022		$ 11	939,742	(166,454)	773,299
Balance, shares at Mar. 31, 2022		106,051,713
Balance at Dec. 31, 2022		$ 15	1,226,267	(840,341)	385,941
Balance, shares at Dec. 31, 2022		145,565,916
Stock-based compensation, net of tax withholding			3,868		3,868
Stock based compensation, net of tax withholding, shares		336,511
Issuance of common stock, net of offering costs/At-the-market offering		$ 2	163,293		163,295
Issuance of common stock, net of offering costs/At-the-market offering, shares		21,357,175
Net loss				(7,235)	(7,235)
Balance at Mar. 31, 2023		$ 17	$ 1,393,428	$ (847,576)	$ 545,869
Balance, shares at Mar. 31, 2023		167,259,602

Consolidated Condensed Statem_3

Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (7,235)	$ (12,851)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	17,733	13,877
Amortization of prepaid service contract		4,662
Deferred tax expense (benefit)	75	(4,262)
Realized and unrealized losses on digital assets held within Investment Fund		5,328
Realized (gains) on digital assets and unrealized losses on digital assets loan receivable	(17,615)	461
Impairment of digital assets	6,151	17,647
Stock-based compensation	3,945	9,275
Amortization of debt issuance costs	971	971
Impairment of patents		919
Loss from extinguishment of debt	333
Other adjustments from operations, net	1,290	(366)
Changes in operating assets and liabilities:
Revenues from digital asset production	(50,941)	(51,723)
Proceeds from sale of digital assets	62,646
Deposits	(23,124)	(6,287)
Prepaid expenses and other assets	(20,738)	(4,889)
Accounts payable and accrued expenses	(3,784)	(667)
Accrued interest	1,481	1,843
Net cash used in operating activities	(28,812)	(26,062)
CASH FLOWS FROM INVESTING ACTIVITIES
Advances to vendors	(11,565)	(192,391)
Purchase of property and equipment	(17,270)	(6,534)
Investments in Joint Venture	(43,194)
Purchase of equity investments		(10,500)
Net cash used in investing activities	(72,029)	(209,425)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock, net of issuance costs	163,295	85,473
Repayment of term loan borrowings	(50,000)
Value of shares withheld for taxes	(77)
Net cash provided by financing activities	113,218	85,473
Net (decrease) increase in cash, cash equivalents and restricted cash	12,377	(150,014)
Cash, cash equivalents and restricted cash — beginning of period	112,505	268,556
Cash, cash equivalents and restricted cash — end of period	124,882	118,542
Cash paid during the year for:
Interest	1,425
Supplemental schedule of non-cash investing and financing activities:
Receivable due to share issuance		4,720
Operating lease assets obtained in exchange for new operating lease liabilities		1,353
Reclassifications from advances to vendor to property and equipment upon receipt of equipment	442,353	64,405
Common stock issued for service and license agreements		$ 4,580

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS We were incorporated in the State of Nevada on February 23, 2010 under the name Verve Ventures, Inc. In October 2012, we commenced our IP licensing operations, at which time the Company’s name was changed to Marathon Patent Group, Inc. We purchased digital asset mining machines and established a data center in Canada to mine digital assets in 2017. The Company ceased operating in Canada in 2020 and relocated all owned mining rigs to the U.S. The Company has since expanded bitcoin mining activities across the U.S. and internationally. The Company changed its name to Marathon Digital Holdings, Inc. on March 1, 2021. As of March 31, 2023, the Company is solely focused on the mining of bitcoin and ancillary opportunities within the Bitcoin ecosystem. Ancillary businesses are those that relate to the Bitcoin ecosystem but may be above and beyond those directly related to the self-mining of bitcoin. The ancillary businesses most closely related to mining of bitcoin may include, but will not be limited to, management of bitcoin mining facilities for third party owners, advisory and consulting services to third parties seeking to set up and operate bitcoin mining facilities and joint ventures for bitcoin mining projects in domestic and international jurisdictions such as our project in Abu Dhabi, United Arab Emirates. We will also seek to be involved in Bitcoin related projects including, but not limited to, development of technologies in immersion, hardware, firmware, mining pools and side chains that use the bitcoin blockchain. We will also seek to be involved in the development of projects and technologies for generating electricity from renewable energy sources as well as methane gas capture to power bitcoin mining projects. The term “Bitcoin” with a capital “B” is used to denote the Bitcoin protocol which implements a highly available, public, permanent, and decentralized ledger. The term “bitcoin” with a lower case “b” is used to denote the token, bitcoin.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated condensed financial statements are unaudited and have been prepared in accordance with the rules and regulations of the SEC. They include all adjustments that we consider necessary for a fair statement of the results for the interim periods presented. Such adjustments consisted only of normal recurring items unless otherwise disclosed. The consolidated condensed balance sheet was derived from audited financial statements but does not include all footnote disclosures from the annual financial statements. Basis of Presentation and Principles of Consolidation These financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 16, 2023. The accompanying unaudited consolidated condensed financial statements include the accounts of the Company and its wholly owned and controlled subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The consolidated condensed financial statements have been prepared by the Company pursuant to the rules and regulations of the SEC. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. These consolidated condensed financial statements reflect all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the financial position, the results of operations and cash flows of the Company for the periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for any future fiscal periods in 2023 or for the full year ended December 31, 2023. Use of Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management include, but are not limited to, estimates of the useful lives of fixed assets, assumptions used to calculate fair value of options granted, realization of long-lived assets, deferred income taxes, unrealized tax positions and realization of digital assets. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications have no effect on the reported financial position, results of operations, or cash flows. Previously reported depreciation and amortization expense has now been reclassified to “Cost of revenues - depreciation and amortization.” Previously reported compensation and related taxes, consulting fees, and professional fees have now been reclassified within “General and administrative expenses.” In addition, previously reported interest income has now been reclassified to “Other non-operating income.” Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid debt instruments and other short-term investments with maturity of three months or less, when purchased, to be cash equivalents. The Company maintains cash and cash equivalent balances at financial institutions that are insured by the FDIC. As of March 31, 2023 and December 31, 2022, the Company’s bank balances with its primary cash management institutions exceeded the FDIC limit ($ 250 250 Restricted cash principally represented those cash balances that support commercial letters of credit and are restricted from withdrawal. The following table provides a reconciliation of the total cash, cash equivalents and restricted cash reported on the consolidated condensed balance sheet to the corresponding amounts reported on the consolidated condensed statements of cash flows. SCHEDULE CASH, CASH EQUIVALENTS AND RESTRICTED CASH March 31, December 31, (in thousands) 2023 2022 Cash and cash equivalents $ 124,882 $ 103,705 Restricted cash — 8,800 Cash, cash equivalents and restricted cash $ 124,882 $ 112,505 Digital assets and Digital assets, restricted Digital assets are included in current and other assets in the consolidated condensed balance sheet. Digital assets are accounted for as indefinite-lived intangible assets, and are initially measured in accordance with FASB Accounting Standards Codification (“ASC”) Topic 350 – Intangibles-Goodwill and Other These digital assets are not amortized, but are assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived intangible asset is impaired. Whenever the exchange-traded price of digital assets declines below its carrying value, the Company has determined that an impairment exists and records impairment equal to the amount by which the carrying value exceeds the fair value. The following table presents the activities of the digital assets and digital assets, restricted for the three months ended March 31, 2023: SCHEDULE OF ACTIVITIES OF DIGITAL CURRENCIES (in thousands) Digital assets and digital assets, restricted at December 31, 2022 $ 190,717 Revenues from digital asset production 50,941 Impairment of digital assets (6,151 ) Proceeds from sale of digital assets (62,646 ) Gain on sale of digital assets 17,615 Payment of advisory fee (1,389 ) Digital assets and digital assets, restricted at March 31, 2023 $ 189,087 As of March 31, 2023, the Company held approximately 11,466 189,087 326,487 1,221 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - OUT OF PERIOD ADJUSTMENTS 12,232 190,717 202,409 Digital assets held in fund On January 25, 2021, the Company entered into a limited partnership agreement with NYDIG Digital Assets Fund III, LP (the “Fund”) pursuant to which the Fund purchased 4,813 150,000 100 The Fund qualified and operated as an investment company for accounting purposes pursuant to the accounting and reporting guidance under ASC 946 – Financial Services – Investment Companies On June 10, 2022, the Company redeemed 100% of its limited partnership interest in the Fund in exchange for approximately 4,769 137,844 Consolidation Embedded Derivatives The Company evaluates its financing and service arrangements to determine whether certain arrangements contain features that qualify as embedded derivatives requiring bifurcation in accordance with ASC 815 - Derivatives and Hedging Deposits The Company contracts with service providers for hosting of its equipment and operational support in data centers where the Company’s equipment is deployed. These arrangements also call for advance payments to be made to vendors in conjunction with the contractual obligations associated with these services. The Company classifies these payments as “Deposits” on the consolidated condensed balance sheet. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and impairment, as applicable. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The Company’s property and equipment is primarily composed of bitcoin miners which are largely homogeneous and have approximately the same useful lives. Accordingly, the Company utilizes the group method of depreciation for its bitcoin miners. The Company will update the estimated useful lives of its bitcoin mining server group periodically as information on the operations of the mining equipment indicates changes are required. The Company will assess and adjust the estimated useful lives of its mining equipment when there are indicators that the productivity of the mining assets is higher or lower than the assigned estimated useful lives. Investments Investments, which may be made from time to time for strategic reasons (and not to engage in the business of investments), are included in non-current assets in the consolidated condensed balance sheet. Investments without a readily determinable fair value are recorded at cost minus impairment, plus or minus changes from observable price changes in orderly transactions for identical or similar investments of the same issuer, in accordance with the measurement alternative described in ASC 321 - Investments – Equity Securities On February 3, 2022, the Company purchased approximately $ 10,000 10,000 NOTE 8 – COMPUTE NORTH BANKRUPTCY On May 3, 2022, the Company converted $ 2,000 3,500 30,000 On September 27, 2022, the Company purchased an additional $ 30,000 35,500 NOTE 13 – RELATED PARTY TRANSACTIONS As of the three months ended March 31, 2023 and year ended December 31, 2022, the Company has one remaining SAFE investment with a carrying value of $ 1,000 Equity Method Investments The Company accounts for investments in which it owns between 20 50 Equity Method Investments and Joint Ventures On January 27, 2023, the Company and FS Innovation, LLC (“FSI”) entered into a Shareholders’ Agreement regarding the formation of an Abu Dhabi Global Markets company (the “ADGM Entity”). For the three months ended March 31, 2023, the ADGM Entity did not have any earnings or losses. As of March 31, 2023, the carrying value of the Company’s 20 43,194 Stock-based Compensation The Company expenses stock-based compensation to employees and non-employees over the requisite service period based on the grant-date fair value of the awards and forfeiture rates. Impairment of Long-lived Assets Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Revenues From Contracts with Customers The Company recognizes revenue under ASC 606 – Revenue from Contracts with Customers Income Taxes Effective Tax Rate Our effective tax rate (“ETR”) from continuing operations was ( 1.06 24.91 21 ● During the year ended December 31, 2022, the Company concluded, based upon all available evidence, it was more likely than not that it would not have sufficient future taxable income to realize the Company’s federal and state deferred tax assets. As a result, the Company established a valuation allowance against deferred tax assets that were not supported by reversing deferred tax liabilities. No events occurred in the three months ended March 31, 2023 impacting this determination. Income Tax in Interim Periods The Company records its tax expense or benefit on an interim basis using an estimated annual effective tax rate. This rate is applied to the current period ordinary income or loss to determine the income tax provision or benefit allocated to the interim period. The income tax effects of unusual or infrequent items are excluded from the estimated annual effective tax rate and are recognized in the impacted interim period. Adjustments to the estimated annual effective income tax rate are recognized in the period when such estimates are revised. Uncertainties The Company files federal and state income tax returns. The 2019-2021 tax years generally remain subject to examination by the IRS and various state taxing authorities, although the Company is not currently under examination in any jurisdiction. The Company does not currently expect any of its remaining unrecognized tax benefits to be recognized in the next twelve months. Out-of-Period Adjustment During the three months ended March 31, 2023, the Company recorded an out-of-period adjustment as a result of applying the quoted price in an active market to the digital assets in accordance with ASC 820. The adjustment resulted in increased impairment of digital assets reflected in the current period consolidated condensed statement of operations of $ 1,221 NOTE 6 - FAIR VALUE MEASUREMENT Recent 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 condensed financial statements and assures that there are proper controls in place to ascertain that the Company’s consolidated condensed financial statements properly reflect the change. There have been no material changes to our recent accounting pronouncements that were disclosed in our Annual Report on Form 10-K, which was filed with the SEC on March 16, 2023.

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	NOTE 3 – REVENUE FROM CONTRACTS WITH CUSTOMERS The Company recognizes revenue in accordance with ASC 606. The core principle of the revenue standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: ● Step 1: Identify the contract with the customer ● Step 2: Identify the performance obligations in the contract ● Step 3: Determine the transaction price ● Step 4: Allocate the transaction price to the performance obligations in the contract ● Step 5: Recognize revenue when the Company satisfies a performance obligation In order to identify the performance obligations in a contract with a customer, an entity must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606’s definition of a “distinct” good or service (or bundle of goods or services) if both of the following criteria are met: ● The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct); and ● The entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). If a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. When determining the transaction price, an entity must consider the effects of all of the following: ● Variable consideration ● Constraining estimates of variable consideration ● The existence of a significant financing component in the contract ● Noncash consideration ● Consideration payable to a customer Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time, as appropriate. Application of the five-step model to the Company’s mining operations The following table presents revenue of the Company disaggregated for those arrangements in which the Company is the Operator and Participant: SCHEDULE OF DISAGGREGATION OF REVENUE (in thousands) 2023 2022 Three Months Ended March 31, (in thousands) 2023 2022 Revenues from contracts with customers Participant $ 17,876 $ — Operator - Transaction fees 1,051 517 Other revenue Operator - Block rewards 32,205 51,206 Total revenue $ 51,132 $ 51,723 Revenue 51,132 51,723 Operator As Operator, the Company provides transaction verification services. Transaction verification services are an output of the Company’s ordinary activities; therefore, the Company views the transaction requestor as a customer and accounts for the transaction fees it earns as revenue from a contract with a customer under ASC 606. The bitcoin network is not an entity such that it may not meet the definition of a customer; however, the Company has concluded it is appropriate to apply ASC 606 by analogy to block rewards earned from the network. A contract exists under ASC 606 at the point the Company successfully validates a transaction to the distributed ledger. At this point, the performance obligation to validate the requested transaction has been satisfied and a contract is deemed to exist as follows: ● The transaction requester, the bitcoin network, and the Company have approved the contract and have evidenced they are committed to the transaction at the point of successfully validating and adding the transaction to the distributed ledger. The parties’ rights, the consideration to be transferred, and the payment terms are clear. The transaction has commercial substance and collection of the block reward and transaction fees to which the Company is entitled is probable because they are transferred to the Company as part of closing a successful block. ● By successfully mining a block, the Company satisfies its lone performance obligation of providing transaction verification services and, thus, earns revenue at that point in time. The amount to which the Company is entitled for successfully validating a block of transactions is fixed at the point in time the contract is deemed to exist and the performance obligation is satisfied. Thus, there is no variable consideration. The Company engaged unrelated third-party mining enterprises (“pool participants”) to contribute computing power, and in exchange, remitted transaction fees and block rewards to pool participants on a pro rata basis according to each respective pool participant’s contributed computing power (“hash rate”). The MaraPool wallet (owned by the Company as Operator) is recorded on the distributed ledger as the winner of proof of work block rewards and assignee of all validations and, therefore, the transaction verifier of record. The pool participants entered into contracts with the Company as Operator; they did not directly enter into contracts with the network or the requester and were not known verifiers of the transactions assigned to the pool. As Operator, the Company delegated mining work to the pool participants utilizing software that algorithmically assigned work to each individual miner. By virtue of its selection and operation of the software, the Company as Operator controlled delegation of work to the pool participants. This indicated that the Company directed the mining pool participants to contribute their hash rate to solve in areas that the Company designates. Therefore, the Company determined that it controlled the service of providing transaction verification services to the network and requester. Accordingly, the Company recorded all of the transaction fees and block rewards earned from transactions assigned to MaraPool as revenue, and the portion of the transaction fees and block rewards remitted to MaraPool participants as cost of revenues. The Company operated a mining pool that engaged third-party pool participants from September 2021 until May 2022. ASC 606-10-32-21 requires entities to measure the estimated fair value of noncash consideration at contract inception, which is the same time the block reward and transaction fee is earned and the performance obligation to the requester and the network is fulfilled by successfully validating the applicable block of transactions. For reasons of operational practicality, the Company applies an accounting convention to use the daily quoted closing U.S. dollar spot rate of bitcoin each day to determine the fair value of bitcoin earned as transaction fees and block rewards in the Company’s wallet during that day. This accounting convention does not result in materially different revenue recognition from using the fair value of the bitcoin earned at contract inception (i.e., the moment a block is solved) and has been consistently applied in all periods presented. Expenses associated with providing the bitcoin transaction verification services to the customers, such as rent, electricity cost, and transaction fees and block rewards are recorded as cost of revenues. Depreciation on digital asset mining equipment is recorded as a component of cost of revenues. Participant When the Company is a Participant in a third-party operated mining pool, the Company provides hash rate that is an output of the Company’s ordinary activities in exchange for consideration. The Company considers the third-party mining pool operators its customers under Topic 606. These contracts are period-to-period contracts because they are terminable at any time by either party without compensation. A new contract is determined to exist each period (i.e., second, minute, hour) that neither the Company, nor the pool operator, terminates the arrangement. The consideration to which the Company is entitled is a fractional share of the block award and transaction fees; the amount of which is based on the proportion of the Company’s contributed hash rate to the total computing power contributed by all mining pool participants in solving the current algorithm as calculated and determined by the pool operator, usually through usage of a mining software, net of any pool fees due to the pool operator. The Company receives the consideration in aggregate typically within 24 hours of winning the block, and any disputes to the consideration to which the Company is entitled can be made by notifying and resolving the issues with the pool operators. However, there have not been any subsequent adjustments to the fees received, therefore the Company concludes that it is probable that a significant reversal of revenue recognized will not occur upon settlement. Providing computing power on rigs to solve complex cryptographic algorithms in support of blockchain mining (in a process known as “solving a block”) is the primary output of the Company’s ordinary activities. The provision of computing power is the only performance obligation under our arrangements with third-party mining pool operators. The transaction consideration the Company receives is non-cash (i.e., bitcoin) and entirely variable as it is unknown at each contract inception whether the Company will earn any consideration during the period, and if it does become entitled to consideration, how much consideration to which it will be entitled. The Company satisfies its performance obligation to provide computing power to the pool operator over time as described in FASB ASC 606-10-25-27(a) as the pool operator simultaneously consumes and receives benefits from the Company’s provision of computing power, which it uses continuously as an input to the pool’s efforts to solve a block. In accordance with FASB ASC 606-10-32-11 and 32-12, the Company constrains the variable consideration to which it is entitled and does not recognize revenue for such amounts until it receives confirmation of the amount, usually via the settlement of the fractional share of block reward and transaction fees in the Company’s digital wallet. Since the Company does not have visibility on its contributed computing power relative to the pool’s total computing power, which is one of the key inputs that determine the fractional block reward and transaction fees share to which it is entitled; therefore, it only knows the amount of non-cash consideration to which it is entitled upon settlement of the Company’s earned fractional share into its digital wallet. Because of this and the fact that the Company’s fractional share substantively varies from block to block, it is not probable that a significant reversal of revenue will not occur until the uncertainty related to the Bitcoin to which the Company is entitled ultimately resolves at settlement. At settlement, the total block reward and transaction fees consideration earned by the pool operator are allocated and distributed (with no provision for, or risk of, clawback) by the pool operator to each participant based on each participant’s contribution of computing power. Consequently, at that point in time, the risk of significant revenue reversal abates such that consideration should be added to the transaction price (and revenue recognized accordingly). Settlement of consideration typically occurs within 24 hours of when a block is won unless such block is won over a weekend or holiday, in which case settlement can take up to 72 hours. The Company uses its accounting convention to measure revenue based upon the daily quoted closing U.S. dollar spot rate of bitcoin on the day the transaction fees and block rewards are settled in the Company’s wallet. This accounting convention does not result in materially different revenue recognition from using the fair value of the bitcoin earned at contract inception and has been consistently applied in all periods presented. Expenses associated with providing computing power services to third-party operated mining pools, such as rent and electricity costs, are recorded as cost of revenues. Depreciation on digital asset mining equipment is also recorded as a component of cost of revenues.

ADVANCES TO VENDORS AND DEPOSIT

ADVANCES TO VENDORS AND DEPOSITS	3 Months Ended
	Mar. 31, 2023
Advances To Vendors And Deposits
ADVANCES TO VENDORS AND DEPOSITS	NOTE 4 – ADVANCES TO VENDORS AND DEPOSITS The Company contracts with bitcoin mining equipment manufacturers in procuring equipment necessary for the operation of its bitcoin mining operations. A typical agreement calls for a certain percentage of the total order to be paid in advance at specific intervals, usually within several days of execution of a specific contract and periodically thereafter with final payments due prior to each shipment date. The Company accounts for these payments as “Advances to vendors” on the consolidated condensed balance sheet. As of March 31, 2023 and December 31, 2022, such advances totaled approximately $ 57,511 488,299 In addition, the Company contracts with other service providers for the hosting of its equipment and operational support in data centers where the Company’s equipment is deployed. These arrangements also call for advance payments to be made to vendors in conjunction with the contractual obligations associated with these services. We classify these payments as “Deposits” on the consolidated condensed balance sheet.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 5 – PROPERTY AND EQUIPMENT The components of property and equipment as of March 31, 2023 and December 31, 2022 are: SCHEDULE OF COMPONENTS OF PROPERTY AND EQUIPMENT (in thousands, except useful life) Useful life (Years) March 31, 2023 December 31, 2022 Mining rigs 3 $ 326,951 $ 116,634 Containers 10 3,112 1,614 Website and leasehold improvements 7 206 206 Construction in progress N/A 419,003 171,194 Gross property, equipment 749,272 289,648 Less: Accumulated depreciation (34,356 ) (16,622 ) Property and equipment, net $ 714,916 $ 273,026 The Company’s depreciation expense related to property and equipment for the three months ended March 31, 2023 and 2022 was $ 17,733 13,877

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	NOTE 6 – FAIR VALUE MEASUREMENT The Company measures certain financial and non-financial assets and liabilities at fair value on a recurring or non-recurring basis. The Company uses a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions The carrying amounts reported in the consolidated condensed balance sheet for cash and cash equivalents, other receivable, deposits, prepaid expenses and other current assets, property and equipment, advances to vendors, accounts payable, accrued expenses, and legal reserve payable, approximate their estimated fair market value based on the short-term maturity of these instruments. Financial assets and liabilities are classified in their entirety within the fair value hierarchy based on the lowest level of input that is significant to their fair value measurement. The Company measures the fair value of its marketable securities and investments by taking into consideration valuations obtained from third-party pricing sources. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs included reported trades and broker-dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities and other observable inputs. Recurring measurement of fair value The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of March 31, 2023 and December 31, 2022, respectively: SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS Recurring fair value measured at March 31, 2023 (in thousands) Total carrying value at March 31, 2023 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets Cash and cash equivalents (1) $ 153 $ 153 $ — $ — Recurring fair value measured at December 31, 2022 (in thousands) Total carrying value at December 31, 2022 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets Cash and cash equivalents (1) $ 92,044 $ 92,044 $ — $ — (1) Represents money market accounts. Excludes $ 124,729 11,661 There were no transfers among Levels 1, 2 or 3 during the three months ended March 31, 2023. Non-recurring measurement of fair value The following tables present information about the Company’s assets and liabilities measured at fair value on a non-recurring basis and therefore, not included in the tables above. These assets include (a) digital assets and digital assets, restricted that are initially recorded at cost and subsequently impaired as the fair value falls below its carrying value; (b) mining rigs and advances to vendors that are written down to fair value due to the decrease in the cost of bitcoin mining rigs that was driven by the drop in bitcoin prices during the fourth quarter ended December 31, 2022. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., impairment). The Company’s estimated level within the fair value hierarchy of those assets and liabilities as of March 31, 2023 and December 31, 2022, respectively: SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON NON-RECURRING BASIS Non-recurring fair value measured at March 31, 2023 (in thousands) Total carrying value at March 31, 2023 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets Digital assets $ 189,087 $ 326,487 $ — $ — Non-recurring fair value measured at December 31, 2022 (in thousands) Total carrying value at December 31, 2022 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets Digital assets 121,842 — 129,335 — Property and equipment, net (1) 271,280 — 271,280 — Advances to vendors 488,299 — 488,299 — Digital assets, restricted 68,875 — 73,074 — (1) Represents mining rigs. Excludes $ 1,746 During the three months ended March 31, 2023, the fair value of digital assets and digital assets, restricted were transferred from Level 2 to Level 1, as a result of using the quoted price in the active market in accordance with ASC 820. There were no other transfers among Levels 1, 2 or 3 during the three months ended March 31, 2023. As of March 31, 2023 and December 31, 2022, there were no

NET LOSS PER SHARE

NET LOSS PER SHARE	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
NET LOSS PER SHARE	NOTE 7 – NET LOSS PER SHARE Net income per common share is calculated in accordance with ASC Topic 260 – “Earnings Per Share” (“ASC 260”). Basic income per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. For the three months ended March 31, 2023 and 2022, respectively, the Company incurred a loss position and as such, the computation of diluted net loss per share does not include dilutive common stock equivalents in the weighted average shares outstanding, as they would be anti-dilutive. Securities that could potentially dilute loss per share in the future that were not included in the computation of diluted loss per share at March 31, 2023 and 2022 are as follows: SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE 2023 2022 Three months ended March 31, 2023 2022 Warrants to purchase common stock 324,375 324,375 Restricted stock units 1,500,254 1,188,478 Convertible notes to exchange common stock 9,812,955 9,812,955 Total dilutive shares 11,637,584 11,325,808 The following table sets forth the computation of basic and diluted loss per share: SCHEDULE OF COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE 2023 2022 Three months ended March 31, 2023 2022 Net loss attributable to common shareholders $ (7,235 ) $ (12,851 ) Denominator: Weighted average common shares - basic and diluted 159,186,506 103,102,596 Loss per common share - basic and diluted $ (0.05 ) $ (0.12 )

COMPUTE NORTH BANKRUPTCY

COMPUTE NORTH BANKRUPTCY	3 Months Ended
	Mar. 31, 2023
Compute North Bankruptcy
COMPUTE NORTH BANKRUPTCY	NOTE 8 – COMPUTE NORTH BANKRUPTCY On September 22, 2022, Compute North Holdings, Inc. (along with its affiliated debtors, collectively, “Compute North”, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas under Chapter 11 of the U.S. Bankruptcy Code (11 U.S. Code section 101 et seq - Approximately $ 10,000 - Approximately $ 21,000 - Approximately $ 50,000 The Company recorded an impairment charge of $ 55,674 40,000

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 9 – STOCKHOLDERS’ EQUITY Common Stock Shelf Registration Statements on Form S-3 and At-The-Market Offering Agreements On February 11, 2022, the Company entered into an At-The-Market Offering Agreement, or sales agreement, with H.C. Wainwright & Co., LLC relating to shares of its common stock. In accordance with the terms of the sales agreement, the Company may offer and sell shares of its common stock having an aggregate offering price of up to $ 750,000 63,498,908 524,781 Common Stock Warrants As of March 31, 2023 and December 31, 2022, the Company had 324,375 Restricted Stock A summary of the restricted stock award activity (represented by restricted stock units (RSUs) for the three months ended March 31, 2023 is as follows: SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY Number of Units Weighted Average Grant Date Fair Value Nonvested at December 31, 2022 1,255,648 $ 22.60 Granted 662,865 6.86 Vested (418,259 ) 17.56 Nonvested at March 31, 2023 1,500,254 $ 17.05

DEBT

DEBT	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
DEBT	NOTE 10 – DEBT On November 18, 2021, the Company issued $ 650,000 1.0 97,500 747,500 14,240 15,211 733,260 732,289 The Notes accrue interest at a rate of 1.00 The Notes will mature on December 1, 2026, unless earlier repurchased, redeemed or converted. Before the close of business on the business day immediately before September 1, 2026, noteholders will have the right to convert their Notes only upon the occurrence of certain events 13.1277 1 76.17 On July 28, 2022, the Company entered into a Revolving Credit and Security Agreement (the “Agreement”) with Silvergate Bank (the “Bank”) pursuant to which Silvergate had agreed to loan the Company up to $ 100,000 100,000 100,000 On February 6, 2023, the Company provided Silvergate Bank with the required 30-day notice stating the Company’s intent to prepay the outstanding balance on its term loan facility as well as the Company’s intent to terminate the term loan facility. The Company and Silvergate subsequently agreed to also terminate the revolving line of credit (“RLOC”) facility. On March 8, 2023, the term loan prepayment was completed, and the Company’s term loan and RLOC facilities with Silvergate Bank were terminated.

LEASES

LEASES	3 Months Ended
	Mar. 31, 2023
Leases
LEASES	NOTE 11 – LEASES Leases The Company leases office space in the United States under operating lease agreements. The Company also entered into an arrangement with Applied Blockchain for the use of energized cryptocurrency mining facilities under which the Company pays for electricity per megawatt based on usage. The Company has determined that it has embedded operating leases at two of the facilities governed by this arrangement that commenced in January and March 2023, and has elected not to separate lease and non-lease components. Payments made for these two operating leases are therefore entirely variable and are based on usage of electricity, and the Company therefore does not record a right-of-use asset or lease liability associated with the leases. Variable lease cost during the three months ended March 31, 2023 are disclosed in the table below. Office space and mining facilities comprise the Company’s material underlying asset classes under operating lease agreements. The Company has no material finance leases. As of March 31, 2023, the Company’s right-of-use (“ROU”) assets and total lease liabilities were $ 1,180 1,245 1,276 1,343 84 110 Operating lease costs are recorded on a straight-line basis within operating expenses. The Company’s total lease expense is comprised of the following: SCHEDULE OF COMPONENTS OF LEASE COST (in thousands) 2023 2022 For the Three Months Ended March 31, (in thousands) 2023 2022 Operating leases Operating lease cost $ 112 $ 26 Operating lease expense 112 26 Short-term lease rent expense 9 7 Variable lease cost 2,773 — Total rent expense $ 2,894 $ 33 Additional information regarding the Company’s leasing activities as a lessee is as follows: SUMMARY OF MINIMUM LEASE PAYMENTS For the Three Months Ended March 31, (in thousands, except term and discount rate data) 2023 2022 Operating cash flows from operating leases $ (2 ) $ 17 Weighted-average remaining lease term – operating leases 3.5 4.7 Weighted-average discount rate – operating leases 5 % 5 % SCHEDULE OF LEASE LIABILITY MATURITY Year Amount (in thousands) 2023 (remaining) $ 346 2024 362 2025 312 2026 241 2027 102 Thereafter — Total $ 1,363

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
LEGAL PROCEEDINGS	NOTE 12 – LEGAL PROCEEDINGS Compute North Bankruptcy On September 22, 2022, Compute North Holdings, Inc. (currently d/b/a Mining Project Wind Down Holdings, Inc.) and certain of its affiliates (collectively, “Compute North”) filed for chapter 11 bankruptcy protection. Compute North provided operating services to the Company and hosted our mining rigs at multiple facilities. We delivered miners to Compute North, which then installed the mining rigs at those facilities, operated and maintained the mining rigs, and provided energy to keep the miners operating. During the course of the chapter 11 cases, Compute North sold substantially all of their assets in a series of 363 sale transactions, including Compute North’s ownership interests in non-debtor entities that own or partially-own facilities that house our miners. On November 23, 2022, the Company and certain of its affiliates timely filed proofs of claim asserting various claims against Compute North, including: (i) claims arising under hosting agreements between the Company and Compute North LLC; (ii) claims arising under that certain Senior Promissory Note, dated as of July 1, 2022, by and between the Company, as Lender, and Compute North LLC, as Borrower; (iii) claims arising from the breach of a letter of intent between us and Compute North LLC; and (iv) claims for daily lost revenue, profits and other damages against Compute North. On February 9, 2023, the Bankruptcy Court approved a settlement stipulation between the Company and Compute North, pursuant to which the proofs of claim filed by the Company and certain of its affiliates were resolved, and the Company received a single allowed unsecured claim against Compute North LLC in the amount of $ 40,000,000 39,597 On February 16, 2023, the Bankruptcy Court confirmed Compute North’s chapter 11 plan (the “Plan”), pursuant to which Compute North will liquidate its remaining assets and distribute proceeds arising therefrom in accordance with the waterfall set forth in the Plan. In its disclosure statement filed on December 19, 2022, the Compute North Debtors projected that holders of allowed general unsecured claims could recover anywhere between 8% to 65% on their claims, while holders of preferred equity interests are expected to recover nothing on their interests Derivative Complaints On February 18, 2022, a shareholder derivative complaint was filed in the United States District Court for the District of Nevada, against current and former members of the Company’s board of directors and senior management. The complaint is based on allegations substantially similar to the allegations in the December 2021 putative class action complaint, related to the Company’s disclosure of an SEC investigation previously made by the Company on November 15, 2021. On March 4, 2022, the complaint was served on the Company. On April 4, 2022, the defendants moved to dismiss the complaint. On May 5, 2022, a second shareholder derivative complaint was filed in the United States District Court for the District of Nevada, against current and former members of the Company’s board of directors and senior management. The second shareholder derivative complaint is based on allegations substantially similar to the allegations in the February 18, 2022 derivative complaint. On May 11, 2022, the defendants moved to dismiss the second shareholder derivative complaint. On June 1, 2022, the Court entered an order consolidating the two derivative actions. A June 13, 2022 scheduling order provided for plaintiffs to file a consolidated complaint and for renewed motions to dismiss the consolidated shareholder derivative complaint. On November 22, 2022, before a consolidated complaint was due, plaintiffs voluntarily dismissed both actions without prejudice. On November 23, 2022, both actions were closed. Putative Class Action Complaint On December 17, 2021, a putative class action complaint was filed in the United States District Court for the District of Nevada, against the Company and present and former senior management. The complaint alleges securities fraud related to the disclosure of an SEC investigation previously made by the Company on November 15, 2021. Plaintiff Tad Schlatre served the complaint on the Company on March 1, 2022. On September 12, 2022, the court appointed Carlos Marina as lead plaintiff. On October 21, 2022, lead plaintiff voluntarily dismissed the complaint without prejudice. On December 7, 2022, the action was closed. On March 30, 2023, a putative class action complaint was filed in the United States District Court for the District of Nevada, against the Company and present and former senior management. The complaint alleges securities fraud related to the Company’s announcement of accounting restatements on February 28, 2023. Plaintiff has not served the complaint on the Company. Information Subpoenas On October 6, 2020, the Company entered into a series of agreements with multiple parties to design and build a data center for up to 100-megawatts in Hardin, MT. In conjunction therewith, the Company filed a Current Report on Form 8-K on October 13, 2020. The 8-K discloses that, pursuant to a Data Facility Services Agreement, the Company issued 6,000,000 Ho v. Marathon On January 14, 2021, Plaintiff Michael Ho (“Plaintiff” or “Ho”) filed a Civil Complaint for Damages and Restitution (“Complaint”) against the Company. The Complaint alleges six causes of action against the Company, (1) Breach of Written Contract; (2) Breach of Implied Contract; (3) Quasi-Contract; (4) Services Rendered; (5) Intentional Interference with Prospective Economic Relations; and (6) Negligent Interference with Prospective Economic Relations. The claims arise from the same set of facts. Ho alleges that the Company profited from commercially-sensitive information he shared with the Company and then it refused to compensate him for his role in securing the acquisition of a supplier of energy for the Company. On February 22, 2021, the Company responded to Mr. Ho’s Complaint with a general denial and the assertion of applicable affirmative defenses. Then, on February 25, 2021, the Company removed the action to the United States District Court in the Central District of California, where the action remains pending. The Company filed a motion for summary judgment/adjudication of all causes of action. On February 11, 2022, the Court granted the motion and dismissed Ho’s 2nd, 5th and 6th causes of action. Discovery is substantially closed. The Court held a pre-trial conference on February 24, 2022, where it vacated the March 3, 2022 trial date and ordered the parties to meet and confer on a new trial date. The Court discussed the various theories of damages maintained by the parties. In its ruling on the summary judgment motion and at the pre-trial conference on February 24, 2022, the Court noted that a jury is more likely to accept $ 150,000

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 13 – RELATED PARTY TRANSACTIONS On September 23, 2022, the Company made an incremental $ 30,000 35,500 5

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 14 – SUBSEQUENT EVENTS The Company has evaluated other subsequent events through the date the consolidated financial statements were available to be issued and has concluded that no such events or transactions took place that would require disclosure.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation These financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 16, 2023. The accompanying unaudited consolidated condensed financial statements include the accounts of the Company and its wholly owned and controlled subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The consolidated condensed financial statements have been prepared by the Company pursuant to the rules and regulations of the SEC. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. These consolidated condensed financial statements reflect all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the financial position, the results of operations and cash flows of the Company for the periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for any future fiscal periods in 2023 or for the full year ended December 31, 2023.
Use of Estimates and Assumptions	Use of Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management include, but are not limited to, estimates of the useful lives of fixed assets, assumptions used to calculate fair value of options granted, realization of long-lived assets, deferred income taxes, unrealized tax positions and realization of digital assets.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications have no effect on the reported financial position, results of operations, or cash flows. Previously reported depreciation and amortization expense has now been reclassified to “Cost of revenues - depreciation and amortization.” Previously reported compensation and related taxes, consulting fees, and professional fees have now been reclassified within “General and administrative expenses.” In addition, previously reported interest income has now been reclassified to “Other non-operating income.”
Cash and Cash Equivalents and Restricted Cash	Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid debt instruments and other short-term investments with maturity of three months or less, when purchased, to be cash equivalents. The Company maintains cash and cash equivalent balances at financial institutions that are insured by the FDIC. As of March 31, 2023 and December 31, 2022, the Company’s bank balances with its primary cash management institutions exceeded the FDIC limit ($ 250 250 Restricted cash principally represented those cash balances that support commercial letters of credit and are restricted from withdrawal. The following table provides a reconciliation of the total cash, cash equivalents and restricted cash reported on the consolidated condensed balance sheet to the corresponding amounts reported on the consolidated condensed statements of cash flows. SCHEDULE CASH, CASH EQUIVALENTS AND RESTRICTED CASH March 31, December 31, (in thousands) 2023 2022 Cash and cash equivalents $ 124,882 $ 103,705 Restricted cash — 8,800 Cash, cash equivalents and restricted cash $ 124,882 $ 112,505
Digital assets and Digital assets, restricted	Digital assets and Digital assets, restricted Digital assets are included in current and other assets in the consolidated condensed balance sheet. Digital assets are accounted for as indefinite-lived intangible assets, and are initially measured in accordance with FASB Accounting Standards Codification (“ASC”) Topic 350 – Intangibles-Goodwill and Other These digital assets are not amortized, but are assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived intangible asset is impaired. Whenever the exchange-traded price of digital assets declines below its carrying value, the Company has determined that an impairment exists and records impairment equal to the amount by which the carrying value exceeds the fair value. The following table presents the activities of the digital assets and digital assets, restricted for the three months ended March 31, 2023: SCHEDULE OF ACTIVITIES OF DIGITAL CURRENCIES (in thousands) Digital assets and digital assets, restricted at December 31, 2022 $ 190,717 Revenues from digital asset production 50,941 Impairment of digital assets (6,151 ) Proceeds from sale of digital assets (62,646 ) Gain on sale of digital assets 17,615 Payment of advisory fee (1,389 ) Digital assets and digital assets, restricted at March 31, 2023 $ 189,087 As of March 31, 2023, the Company held approximately 11,466 189,087 326,487 1,221 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - OUT OF PERIOD ADJUSTMENTS 12,232 190,717 202,409
Digital assets held in fund	Digital assets held in fund On January 25, 2021, the Company entered into a limited partnership agreement with NYDIG Digital Assets Fund III, LP (the “Fund”) pursuant to which the Fund purchased 4,813 150,000 100 The Fund qualified and operated as an investment company for accounting purposes pursuant to the accounting and reporting guidance under ASC 946 – Financial Services – Investment Companies On June 10, 2022, the Company redeemed 100% of its limited partnership interest in the Fund in exchange for approximately 4,769 137,844 Consolidation
Embedded Derivatives	Embedded Derivatives The Company evaluates its financing and service arrangements to determine whether certain arrangements contain features that qualify as embedded derivatives requiring bifurcation in accordance with ASC 815 - Derivatives and Hedging
Deposits	Deposits The Company contracts with service providers for hosting of its equipment and operational support in data centers where the Company’s equipment is deployed. These arrangements also call for advance payments to be made to vendors in conjunction with the contractual obligations associated with these services. The Company classifies these payments as “Deposits” on the consolidated condensed balance sheet.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and impairment, as applicable. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The Company’s property and equipment is primarily composed of bitcoin miners which are largely homogeneous and have approximately the same useful lives. Accordingly, the Company utilizes the group method of depreciation for its bitcoin miners. The Company will update the estimated useful lives of its bitcoin mining server group periodically as information on the operations of the mining equipment indicates changes are required. The Company will assess and adjust the estimated useful lives of its mining equipment when there are indicators that the productivity of the mining assets is higher or lower than the assigned estimated useful lives.
Investments	Investments Investments, which may be made from time to time for strategic reasons (and not to engage in the business of investments), are included in non-current assets in the consolidated condensed balance sheet. Investments without a readily determinable fair value are recorded at cost minus impairment, plus or minus changes from observable price changes in orderly transactions for identical or similar investments of the same issuer, in accordance with the measurement alternative described in ASC 321 - Investments – Equity Securities On February 3, 2022, the Company purchased approximately $ 10,000 10,000 NOTE 8 – COMPUTE NORTH BANKRUPTCY On May 3, 2022, the Company converted $ 2,000 3,500 30,000 On September 27, 2022, the Company purchased an additional $ 30,000 35,500 NOTE 13 – RELATED PARTY TRANSACTIONS As of the three months ended March 31, 2023 and year ended December 31, 2022, the Company has one remaining SAFE investment with a carrying value of $ 1,000
Equity Method Investments	Equity Method Investments The Company accounts for investments in which it owns between 20 50 Equity Method Investments and Joint Ventures On January 27, 2023, the Company and FS Innovation, LLC (“FSI”) entered into a Shareholders’ Agreement regarding the formation of an Abu Dhabi Global Markets company (the “ADGM Entity”). For the three months ended March 31, 2023, the ADGM Entity did not have any earnings or losses. As of March 31, 2023, the carrying value of the Company’s 20 43,194
Stock-based Compensation	Stock-based Compensation The Company expenses stock-based compensation to employees and non-employees over the requisite service period based on the grant-date fair value of the awards and forfeiture rates.
Impairment of Long-lived Assets	Impairment of Long-lived Assets Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.
Revenues From Contracts with Customers	Revenues From Contracts with Customers The Company recognizes revenue under ASC 606 – Revenue from Contracts with Customers
Income Taxes	Income Taxes Effective Tax Rate Our effective tax rate (“ETR”) from continuing operations was ( 1.06 24.91 21 ● During the year ended December 31, 2022, the Company concluded, based upon all available evidence, it was more likely than not that it would not have sufficient future taxable income to realize the Company’s federal and state deferred tax assets. As a result, the Company established a valuation allowance against deferred tax assets that were not supported by reversing deferred tax liabilities. No events occurred in the three months ended March 31, 2023 impacting this determination. Income Tax in Interim Periods The Company records its tax expense or benefit on an interim basis using an estimated annual effective tax rate. This rate is applied to the current period ordinary income or loss to determine the income tax provision or benefit allocated to the interim period. The income tax effects of unusual or infrequent items are excluded from the estimated annual effective tax rate and are recognized in the impacted interim period. Adjustments to the estimated annual effective income tax rate are recognized in the period when such estimates are revised. Uncertainties The Company files federal and state income tax returns. The 2019-2021 tax years generally remain subject to examination by the IRS and various state taxing authorities, although the Company is not currently under examination in any jurisdiction. The Company does not currently expect any of its remaining unrecognized tax benefits to be recognized in the next twelve months. Out-of-Period Adjustment During the three months ended March 31, 2023, the Company recorded an out-of-period adjustment as a result of applying the quoted price in an active market to the digital assets in accordance with ASC 820. The adjustment resulted in increased impairment of digital assets reflected in the current period consolidated condensed statement of operations of $ 1,221 NOTE 6 - FAIR VALUE MEASUREMENT
Recent Accounting Pronouncements	Recent 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 condensed financial statements and assures that there are proper controls in place to ascertain that the Company’s consolidated condensed financial statements properly reflect the change. There have been no material changes to our recent accounting pronouncements that were disclosed in our Annual Report on Form 10-K, which was filed with the SEC on March 16, 2023.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
SCHEDULE CASH, CASH EQUIVALENTS AND RESTRICTED CASH	SCHEDULE CASH, CASH EQUIVALENTS AND RESTRICTED CASH March 31, December 31, (in thousands) 2023 2022 Cash and cash equivalents $ 124,882 $ 103,705 Restricted cash — 8,800 Cash, cash equivalents and restricted cash $ 124,882 $ 112,505
SCHEDULE OF ACTIVITIES OF DIGITAL CURRENCIES	The following table presents the activities of the digital assets and digital assets, restricted for the three months ended March 31, 2023: SCHEDULE OF ACTIVITIES OF DIGITAL CURRENCIES (in thousands) Digital assets and digital assets, restricted at December 31, 2022 $ 190,717 Revenues from digital asset production 50,941 Impairment of digital assets (6,151 ) Proceeds from sale of digital assets (62,646 ) Gain on sale of digital assets 17,615 Payment of advisory fee (1,389 ) Digital assets and digital assets, restricted at March 31, 2023 $ 189,087

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
SCHEDULE OF DISAGGREGATION OF REVENUE	The following table presents revenue of the Company disaggregated for those arrangements in which the Company is the Operator and Participant: SCHEDULE OF DISAGGREGATION OF REVENUE (in thousands) 2023 2022 Three Months Ended March 31, (in thousands) 2023 2022 Revenues from contracts with customers Participant $ 17,876 $ — Operator - Transaction fees 1,051 517 Other revenue Operator - Block rewards 32,205 51,206 Total revenue $ 51,132 $ 51,723 Revenue 51,132 51,723

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
SCHEDULE OF COMPONENTS OF PROPERTY AND EQUIPMENT	The components of property and equipment as of March 31, 2023 and December 31, 2022 are: SCHEDULE OF COMPONENTS OF PROPERTY AND EQUIPMENT (in thousands, except useful life) Useful life (Years) March 31, 2023 December 31, 2022 Mining rigs 3 $ 326,951 $ 116,634 Containers 10 3,112 1,614 Website and leasehold improvements 7 206 206 Construction in progress N/A 419,003 171,194 Gross property, equipment 749,272 289,648 Less: Accumulated depreciation (34,356 ) (16,622 ) Property and equipment, net $ 714,916 $ 273,026

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS	The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of March 31, 2023 and December 31, 2022, respectively: SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS Recurring fair value measured at March 31, 2023 (in thousands) Total carrying value at March 31, 2023 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets Cash and cash equivalents (1) $ 153 $ 153 $ — $ — Recurring fair value measured at December 31, 2022 (in thousands) Total carrying value at December 31, 2022 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets Cash and cash equivalents (1) $ 92,044 $ 92,044 $ — $ — (1) Represents money market accounts. Excludes $ 124,729 11,661
SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON NON-RECURRING BASIS	SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON NON-RECURRING BASIS Non-recurring fair value measured at March 31, 2023 (in thousands) Total carrying value at March 31, 2023 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets Digital assets $ 189,087 $ 326,487 $ — $ — Non-recurring fair value measured at December 31, 2022 (in thousands) Total carrying value at December 31, 2022 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets Digital assets 121,842 — 129,335 — Property and equipment, net (1) 271,280 — 271,280 — Advances to vendors 488,299 — 488,299 — Digital assets, restricted 68,875 — 73,074 — (1) Represents mining rigs. Excludes $ 1,746

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE	Securities that could potentially dilute loss per share in the future that were not included in the computation of diluted loss per share at March 31, 2023 and 2022 are as follows: SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE 2023 2022 Three months ended March 31, 2023 2022 Warrants to purchase common stock 324,375 324,375 Restricted stock units 1,500,254 1,188,478 Convertible notes to exchange common stock 9,812,955 9,812,955 Total dilutive shares 11,637,584 11,325,808
SCHEDULE OF COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE	The following table sets forth the computation of basic and diluted loss per share: SCHEDULE OF COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE 2023 2022 Three months ended March 31, 2023 2022 Net loss attributable to common shareholders $ (7,235 ) $ (12,851 ) Denominator: Weighted average common shares - basic and diluted 159,186,506 103,102,596 Loss per common share - basic and diluted $ (0.05 ) $ (0.12 )

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY	A summary of the restricted stock award activity (represented by restricted stock units (RSUs) for the three months ended March 31, 2023 is as follows: SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY Number of Units Weighted Average Grant Date Fair Value Nonvested at December 31, 2022 1,255,648 $ 22.60 Granted 662,865 6.86 Vested (418,259 ) 17.56 Nonvested at March 31, 2023 1,500,254 $ 17.05

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2023
Leases
SCHEDULE OF COMPONENTS OF LEASE COST	Operating lease costs are recorded on a straight-line basis within operating expenses. The Company’s total lease expense is comprised of the following: SCHEDULE OF COMPONENTS OF LEASE COST (in thousands) 2023 2022 For the Three Months Ended March 31, (in thousands) 2023 2022 Operating leases Operating lease cost $ 112 $ 26 Operating lease expense 112 26 Short-term lease rent expense 9 7 Variable lease cost 2,773 — Total rent expense $ 2,894 $ 33
SUMMARY OF MINIMUM LEASE PAYMENTS	Additional information regarding the Company’s leasing activities as a lessee is as follows: SUMMARY OF MINIMUM LEASE PAYMENTS For the Three Months Ended March 31, (in thousands, except term and discount rate data) 2023 2022 Operating cash flows from operating leases $ (2 ) $ 17 Weighted-average remaining lease term – operating leases 3.5 4.7 Weighted-average discount rate – operating leases 5 % 5 %
SCHEDULE OF LEASE LIABILITY MATURITY	SCHEDULE OF LEASE LIABILITY MATURITY Year Amount (in thousands) 2023 (remaining) $ 346 2024 362 2025 312 2026 241 2027 102 Thereafter — Total $ 1,363

SCHEDULE CASH, CASH EQUIVALENTS

SCHEDULE CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Cash and cash equivalents	$ 124,882	$ 103,705
Restricted cash		8,800
Cash, cash equivalents and restricted cash	$ 124,882	$ 112,505

SCHEDULE OF ACTIVITIES OF DIGIT

SCHEDULE OF ACTIVITIES OF DIGITAL CURRENCIES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounting Policies [Abstract]
Digital assets, Digital assets, restricted and Digital assets loaned, Beginning balance	$ 190,717
Additions of digital currencies	50,941
Impairment of cryptocurrencies	(6,151)	$ (17,647)
Proceeds from sale of digital assets	(62,646)
Gain on sale of digital assets	17,615
Payment of advisory fee	(1,389)
Digital assets, Digital assets, restricted and Digital assets loaned, Ending balance	$ 189,087

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands							3 Months Ended		12 Months Ended
	Sep. 27, 2022 USD ($)	Sep. 22, 2022 USD ($)	Jun. 10, 2022 USD ($) Bitcoin	May 03, 2022 USD ($)	Feb. 03, 2022 USD ($)	Jan. 25, 2021 USD ($) Bitcoin	Mar. 31, 2023 USD ($) Bitcoin	Mar. 31, 2022	Dec. 31, 2022 USD ($) Bitcoin	Sep. 23, 2022 USD ($)
Cash FDIC insured amount							$ 250		$ 250
FDIC insured amount							$ 250
Purchae of bitcoins | Bitcoin							11,466		12,232
Digital assets value							$ 189,087		$ 190,717
Fair market value of bitcoin holdings							326,487		202,409
Increased impairment of digital assets							1,221
Fair market value of bitcoins | Bitcoin			4,769
Fair market value of digital currencies			$ 137,844
Investment							$ 80,194		37,000
Effective income tax rate continuing operations, percent							1.06%	24.91%
Federal income tax rate							21%
ADGM Entity [Member]
Investments percentage							20%
Equity Method Investments							$ 43,194
Minimum [Member] | Investments and Joint Ventures [Member]
Investments percentage							20%
Maximum [Member] | Investments and Joint Ventures [Member]
Investments percentage							50%
SAFE Investment [Member]
Investment							$ 1,000		$ 1,000
Auradine, Inc. [Member]
Investment										$ 30,000
Preferred Stock [Member] | Auradine, Inc. [Member]
Investment	$ 35,500			$ 3,500
Preferred stock additional purchase	$ 30,000			30,000
Preferred Stock [Member] | Safe Agreement [Member]
Investment				$ 2,000
Convertible Preferred Stock [Member] | Computer North Holdings, Inc. [Member]
Bankruptcy claims amount of claims filed		$ 10,000			$ 10,000
NYDIG Digital Assets Fund III LP [Member]
Purchae of bitcoins | Bitcoin						4,813
Aggregate purchase price						$ 150,000
Partnership interest rate						100%

SCHEDULE OF DISAGGREGATION OF R

SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Revenue	$ 51,132	$ 51,723
Participant [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Revenue	17,876
Operator [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Revenue	1,051	517
Operator - Block rewards	$ 32,205	$ 51,206

ADVANCES TO VENDORS AND DEPOS_2

ADVANCES TO VENDORS AND DEPOSITS (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Advances To Vendors And Deposits
Advances to vendor	$ 57,511	$ 488,299

SCHEDULE OF COMPONENTS OF PROPE

SCHEDULE OF COMPONENTS OF PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Gross property, equipment	$ 749,272	$ 289,648
Less: Accumulated depreciation	(34,356)	(16,622)
Property and equipment, net	714,916	273,026
Mining Properties and Mineral Rights [Member]
Property, Plant and Equipment [Line Items]
Gross property, equipment	$ 326,951	116,634
Useful life (Years)	3 years
Containers [Member]
Property, Plant and Equipment [Line Items]
Gross property, equipment	$ 3,112	1,614
Useful life (Years)	10 years
Website and Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Gross property, equipment	$ 206	206
Useful life (Years)	7 years
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Gross property, equipment	$ 419,003	$ 171,194

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 17,733	$ 13,877

SCHEDULE OF ASSETS AND LIABILIT

SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS (Details) - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		$ 124,729	$ 11,661
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	[1]	153	92,044
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	[1]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	[1]
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	[1]	$ 153	$ 92,044
[1]Represents money market accounts. Excludes $ 124,729 11,661

SCHEDULE OF ASSETS AND LIABIL_2

SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS (Details) (Parentetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Cash and cash equivalents	$ 124,729	$ 11,661

SCHEDULE OF ASSETS AND LIABIL_3

SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON NON-RECURRING BASIS (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Digital assets, restricted	$ 189,087	$ 190,717
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property and equipment, net	326,487		[1]
Digital assets
Advances to vendors
Digital assets, restricted
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property and equipment, net		271,280	[1]
Digital assets		129,335
Advances to vendors		488,299
Digital assets, restricted		73,074
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property and equipment, net			[1]
Digital assets
Advances to vendors
Digital assets, restricted
Fair Value, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property and equipment, net	$ 189,087	271,280	[1]
Digital assets		121,842
Advances to vendors		488,299
Digital assets, restricted		$ 68,875
[1]Represents mining rigs. Excludes $ 1,746

SCHEDULE OF ASSETS AND LIABIL_4

SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON NON-RECURRING BASIS (Details) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment	$ 714,916	$ 273,026
Containers And Website And Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment		$ 1,746

FAIR VALUE MEASUREMENT (Details

FAIR VALUE MEASUREMENT (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Other Assets Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value assets and liabilities	$ 0	$ 0

SCHEDULE OF ANTIDILUTIVE SECURI

SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive shares	11,637,584	11,325,808
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive shares	324,375	324,375
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive shares	1,500,254	1,188,478
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive shares	9,812,955	9,812,955

SCHEDULE OF COMPUTATION OF BASI

SCHEDULE OF COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Net loss attributable to common shareholders	$ (7,235)	$ (12,851)
Weighted average common shares - basic and diluted	159,186,506	103,102,596
Loss per common share - basic and diluted	$ (0.05)	$ (0.12)

COMPUTE NORTH BANKRUPTCY (Detai

COMPUTE NORTH BANKRUPTCY (Details Narrative) - USD ($) $ in Thousands			12 Months Ended
	Sep. 22, 2022	Feb. 03, 2022	Dec. 31, 2022	Feb. 16, 2023
Impairment charge			$ 55,674
Unsecured claim				$ 40,000
Computer North LLC [Member] | Unsecured Senior Promissory Note [Member]
Bankruptcy claims amount of claims siled	$ 21,000
King Mountain And Wolf Hollow [Member]
Bankruptcy claims amount of claims siled	50,000
Convertible Preferred Stock [Member] | Computer North Holdings, Inc. [Member]
Bankruptcy claims amount of claims siled	$ 10,000	$ 10,000

SUMMARY OF RESTRICTED STOCK AWA

SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY (Details) - Restricted Stock [Member]	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of restricted stock, beginning balance | shares	1,255,648
Weighted average grant date fair value, beginning balance | $ / shares	$ 22.60
Number of restricted stock, granted | shares	662,865
Weighted average grant date fair value, granted | $ / shares	$ 6.86
Number of restricted stock, vested | shares	(418,259)
Weighted average grant date fair value, vested | $ / shares	$ 17.56
Number of restricted stock, beginning balance | shares	1,500,254
Weighted average grant date fair value, ending balance | $ / shares	$ 17.05

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) $ in Thousands		3 Months Ended
	Feb. 11, 2022	Mar. 31, 2023	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock, shares issued		167,259,602	145,565,916
Common stock, shares outstanding		167,259,602	145,565,916
Common Stock Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock, shares issued		324,375	324,375
Common stock, shares outstanding		324,375	324,375
At The Market Offering Agreement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sale of stock shares issued in transaction		63,498,908
Offering Costs		$ 524,781
At The Market Offering Agreement [Member] | Maximum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sale of stock	$ 750,000

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jul. 28, 2022	Nov. 18, 2021	Mar. 31, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Debt instrument fee amount		$ 747,500
Debt instrument, maturity date, description		The Notes will mature on December 1, 2026, unless earlier repurchased, redeemed or converted. Before the close of business on the business day immediately before September 1, 2026, noteholders will have the right to convert their Notes only upon the occurrence of certain events
Debt conversion rate shares		13.1277
Debt instrument conversion amount		$ 1
Conversion price per share		$ 76.17
Revolving Credit Facility [Member]
Short-Term Debt [Line Items]
Maximum borrowing capacity	$ 100,000
Proceeds from bank loan	100,000
Term Credit [Member]
Short-Term Debt [Line Items]
Maximum borrowing capacity	$ 100,000
Convertible Senior Notes Due 2026 [Member]
Short-Term Debt [Line Items]
Debt Instrument, Face Amount		$ 650,000
Debt instrument interest rate		1%
Debt instrument fee amount		$ 97,500
Debt Instrument, Unamortized Discount			$ 14,240	$ 15,211
Notes Payable			$ 733,260	$ 732,289

SCHEDULE OF COMPONENTS OF LEASE

SCHEDULE OF COMPONENTS OF LEASE COST (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases
Operating lease cost	$ 112	$ 26
Operating lease expense	112	26
Short-term lease rent expense	9	7
Variable lease cost	2,773
Total rent expense	$ 2,894	$ 33

SUMMARY OF MINIMUM LEASE PAYMEN

SUMMARY OF MINIMUM LEASE PAYMENTS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases
Operating cash flows from operating leases	$ (2)	$ (17)
Operating cash flows from operating leases	$ 2	$ 17
Weighted-average remaining lease term - operating leases	3 years 6 months	4 years 8 months 12 days
Weighted-average discount rate - operating leases	5%	5%

SCHEDULE OF LEASE LIABILITY MAT

SCHEDULE OF LEASE LIABILITY MATURITY (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Leases
2023 (remaining)	$ 346
2024	362
2025	312
2026	241
2027	102
Thereafter
Total	$ 1,363

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Operating lease right of use asset	$ 1,180	$ 1,276
Payments for rent	84	110
UNITED STATES
Operating lease right of use asset	1,180	1,276
Operating lease liabilities	$ 1,245	$ 1,343

LEGAL PROCEEDINGS (Details Narr

LEGAL PROCEEDINGS (Details Narrative) - USD ($)	Feb. 16, 2023	Feb. 09, 2023	Feb. 24, 2022	Oct. 06, 2020
Loss Contingencies [Line Items]
Litigation settlement amount awarded from other party		$ 40,000,000
Number of shares held in litigation entity		39,597
Loss contingency settlement agreement terms	In its disclosure statement filed on December 19, 2022, the Compute North Debtors projected that holders of allowed general unsecured claims could recover anywhere between 8% to 65% on their claims, while holders of preferred equity interests are expected to recover nothing on their interests
Plaintiff Michael Ho [Member]
Loss Contingencies [Line Items]
Damages amount			$ 150,000
Hardin, MT [Member]
Loss Contingencies [Line Items]
Number of restricted stock issued				6,000,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Sep. 23, 2022
Related Party Transaction [Line Items]
Investments	$ 80,194	$ 37,000
Auradine, Inc. [Member]
Related Party Transaction [Line Items]
Investments			$ 30,000
Previously issued investments			$ 35,500
Shares issued percentage			5%