Marathon Digital (MARA) 10-Q 8 Nov 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Nov. 06, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Period Focus	Q3
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	800
Local Phone Number	804-1690
Title of 12(b) Security	Common Stock, par value $0.0001 per share
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		222,625,063

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 101,210	$ 103,705
Restricted cash		8,800
Digital assets	286,801	121,842
Other receivable	1,193	18
Deposits	7,104	2,350
Prepaid expenses and other current assets	36,338	40,833
Total current assets	432,646	277,548
Property and equipment, net	741,659	273,026
Advances to vendors	23,964	488,299
Investments	103,038	37,000
Long-term deposits	57,820	40,903
Long-term prepaids	24,152	8,317
Right-of-use assets	501	1,276
Digital assets, restricted		68,875
Total long-term assets	951,134	917,696
TOTAL ASSETS	1,383,780	1,195,244
Current liabilities:
Accounts payable	15,219	1,312
Accrued expenses	21,702	22,295
Legal reserve payable		1,171
Operating lease liabilities	150	326
Accrued interest	1,102	1,011
Total current liabilities	38,173	26,115
Long-term liabilities:
Notes payable	325,266	732,289
Term loan		49,882
Operating lease liabilities	388	1,017
Total long-term liabilities	325,654	783,188
Stockholders’ Equity:
Preferred stock, 0.0001 par value, 50,000,000 shares authorized and no shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively
Common stock, 0.0001 par value, 500,000,000 shares authorized; 210,184,718 and 145,565,916 issued and outstanding at September 30, 2023 and December 31, 2022, respectively	21	15
Additional paid-in capital	1,822,504	1,226,267
Accumulated deficit	(802,572)	(840,341)
Total stockholders’ equity	1,019,953	385,941
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,383,780	$ 1,195,244

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
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	500,000,000	500,000,000
Common stock, shares issued	210,184,718	145,565,916
Common stock, shares outstanding	210,184,718	145,565,916

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Total revenues	$ 97,849	$ 12,690	$ 230,740	$ 89,336
Cost of revenues
Cost of revenues - energy, hosting and other	(59,628)	(13,773)	(148,227)	(42,981)
Cost of revenues - depreciation and amortization	(53,548)	(26,295)	(108,556)	(64,882)
Total cost of revenues	(113,176)	(40,068)	(256,783)	(107,863)
Operating expenses
General and administrative expenses	(20,141)	(12,144)	(55,977)	(38,127)
Impairment of digital assets	(11,885)	(1,375)	(26,399)	(156,500)
Gains on digital assets and gains (losses) on digital assets loan receivable	31,720		72,689	(14,460)
Losses on digital assets held within investment fund				(85,017)
Gain on sale of equipment, net of disposals		29,819		83,879
Legal reserves		(24,960)		(24,960)
Impairment of deposits due to vendor bankruptcy filing		(7,987)		(7,987)
Impairment of patents				(919)
Total operating expenses	(306)	(16,647)	(9,687)	(244,091)
Operating loss	(15,633)	(44,025)	(35,730)	(262,618)
Net gain from extinguishment of debt	82,600		82,267
Equity in net earnings of unconsolidated affiliate	(647)		(647)
Impairment of loan and investment due to vendor bankruptcy filing		(31,013)		(31,013)
Interest expense	(2,536)	(3,752)	(9,136)	(10,314)
Other non-operating income	426	238	1,366	620
Income (loss) before income taxes	64,210	(78,552)	38,120	(303,325)
Income tax benefit (expense)	(73)	6,090	(351)	901
Net income (loss)	64,137	(72,462)	37,769	(302,424)
Series A Preferred Stock accretion to redemption value			(2,121)
Net income (loss) attributable to common stockholders	$ 64,137	$ (72,462)	$ 35,648	$ (302,424)
Net income (loss) attributable to common stockholders per common stock - basic	$ 0.36	$ (0.62)	$ 0.21	$ (2.76)
Weighted average common stock outstanding - basic	179,602,722	116,533,816	169,162,821	109,492,865
Net income (loss) attributable to common stockholders per common stock - diluted	$ 0.35	$ (0.62)	$ 0.21	$ (2.76)
Weighted average common stock outstanding - diluted	189,506,521	116,533,816	169,162,821	109,492,865

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2021	$ 10	$ 835,694	$ (146,319)	$ 689,385
Balance, shares at Dec. 31, 2021	102,733,273
Balance at Jun. 30, 2022	$ 11	1,016,722	(376,281)	640,452
Balance, shares at Jun. 30, 2022	113,865,235
Balance at Dec. 31, 2021	$ 10	835,694	(146,319)	689,385
Balance, shares at Dec. 31, 2021	102,733,273
Stock-based compensation, net of tax withholding		18,824		18,824
Stock-based compensation, net of tax withholding, shares	417,380
Issuance of common stock, net of offering costs/At-the-market offering	$ 2	198,700		198,702
Issuance of common stock, net of offering costs/At-the-market offering, shares	13,459,752
Net Income (loss)			(302,424)	(302,424)
Common stock issued for long term service contract		4,580		4,580
Common stock issued for long term service contract, shares	200,000
Balance at Sep. 30, 2022	$ 12	1,057,798	(448,743)	609,067
Balance, shares at Sep. 30, 2022	116,810,405
Balance at Dec. 31, 2021	$ 10	835,694	(146,319)	689,385
Balance, shares at Dec. 31, 2021	102,733,273
Balance at Dec. 31, 2022	$ 15	1,226,267	(840,341)	385,941
Balance, shares at Dec. 31, 2022	145,565,916
Balance at Jun. 30, 2022	$ 11	1,016,722	(376,281)	640,452
Balance, shares at Jun. 30, 2022	113,865,235
Stock-based compensation, net of tax withholding		3,417		3,417
Stock-based compensation, net of tax withholding, shares	41,650
Issuance of common stock, net of offering costs/At-the-market offering	$ 1	37,659		37,660
Issuance of common stock, net of offering costs/At-the-market offering, shares	2,903,520
Net Income (loss)			(72,462)	(72,462)
Balance at Sep. 30, 2022	$ 12	1,057,798	(448,743)	609,067
Balance, shares at Sep. 30, 2022	116,810,405
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		13,807		13,807
Stock-based compensation, net of tax withholding, shares	590,831
Issuance of common stock, net of offering costs/At-the-market offering	$ 3	265,783		265,786
Issuance of common stock, net of offering costs/At-the-market offering, shares	32,305,554
Exchange of convertible notes for common stock	$ 3	318,768		318,771
Exchange of convertible notes for common stock, shares	31,722,417
Net Income (loss)			37,769	37,769
Series A Preferred Stock accretion to redemption value		(2,121)		(2,121)
Balance at Sep. 30, 2023	$ 21	1,822,504	(802,572)	1,019,953
Balance, shares at Sep. 30, 2023	210,184,718
Balance at Jun. 30, 2023	$ 17	1,461,188	(866,709)	594,496
Balance, shares at Jun. 30, 2023	174,209,038
Stock-based compensation, net of tax withholding		5,598		5,598
Stock-based compensation, net of tax withholding, shares	70,963
Issuance of common stock, net of offering costs/At-the-market offering	$ 1	36,950		36,951
Issuance of common stock, net of offering costs/At-the-market offering, shares	4,182,300
Exchange of convertible notes for common stock	$ 3	318,768		318,771
Exchange of convertible notes for common stock, shares	31,722,417
Net Income (loss)			64,137	64,137
Balance at Sep. 30, 2023	$ 21	$ 1,822,504	$ (802,572)	$ 1,019,953
Balance, shares at Sep. 30, 2023	210,184,718

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
OPERATING ACTIVITIES
Net income (loss)	$ 64,137	$ (72,462)	$ 37,769	$ (302,424)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization			108,556	64,882
Amortization of prepaid service contract				22,781
Deferred tax expense			351	(908)
Losses on digital assets held within investment fund				85,017
(Gains) on digital assets and (gains) losses on digital assets loan receivables			(72,689)	14,460
Impairment of digital assets			26,399	156,500
Gain on sale of equipment, net of disposals				(83,879)
Stock-based compensation			13,907	18,876
Amortization of debt issuance costs			2,780	2,956
Equity in net earnings of unconsolidated affiliate			647
Impairment of patents				919
Impairment of assets related to vendor bankruptcy filing				39,000
Gain on extinguishment of debt, net	(82,600)		(82,267)
Other adjustments from operations, net			609	1,406
Changes in operating assets and liabilities:
Revenues from digital asset production			(230,740)	(89,330)
Deposits			(21,671)	(13,629)
Prepaid expenses and other assets			(11,588)	(31,434)
Accounts payable and accrued expenses			3,359	7,888
Legal reserve payable				21,200
Accrued interest			91	1,976
Net cash used in operating activities			(224,487)	(83,743)
INVESTING ACTIVITIES
Advances to vendors			(87,315)	(482,098)
Purchase of property and equipment			(25,813)	(19,829)
Sale of property and equipment				177,371
Proceeds from sale of digital assets			179,509
Investments in joint venture			(66,754)
Purchase of equity investments				(44,000)
Sale of digital currencies in investment fund				483
Deconsolidation of fund				(500)
Net cash used in investing activities			(373)	(368,573)
FINANCING ACTIVITIES
Proceeds from issuance of common stock, net of issuance costs			265,786	198,701
Proceeds from issuance of preferred stock, net of issuance costs			13,629
Redemption of preferred stock			(15,750)
Net change in revolving credit agreement borrowings
Proceeds from term loan borrowings, net of issuance costs				49,250
Repayment of term loan borrowings			(50,000)
Value of shares withheld for taxes			(100)	(52)
Net cash provided by financing activities			213,565	247,899
Net decrease in cash, cash equivalents and restricted cash			(11,295)	(204,417)
Cash, cash equivalents and restricted cash — beginning of period			112,505	268,556	$ 268,556
Cash, cash equivalents and restricted cash — end of period	$ 101,210	$ 64,139	$ 101,210	$ 64,139	$ 112,505

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure [Table]
Net Income (Loss) Attributable to Parent	$ 64,137	$ (72,462)	$ 37,769	$ (302,424)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Marathon Digital Holdings, Inc. and subsidiaries (the “Company” or “Marathon”) is a digital asset technology company that produces or “mines” digital assets with a focus on the blockchain ecosystem and the generation of digital assets. The Company incorporated in the State of Nevada on February 23, 2010 under the name Verve Ventures, Inc. In October 2012, the Company commenced its IP licensing operations, at which time the Company’s name was changed to Marathon Patent Group, Inc. The Company purchased digital asset mining machines and established a data center in Canada to mine digital assets in 2017. The Company ceased operations in Canada in 2020 and consolidated all operations in the U.S. at the time. 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 September 30, 2023, the Company is focused on the mining of bitcoin and ancillary opportunities within the Bitcoin ecosystem. Ancillary businesses are those that relate to the Bitcoin ecosystem but are not directly related to the self-mining of bitcoin. The ancillary businesses that relate directly to mining 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 the Company’s project in Abu Dhabi, United Arab Emirates. The Company also seeks 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 blockchain cryptography. The Company may also become involved in electricity generation from renewable energy resources or 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.

VOLUNTARY CHANGE IN ACCOUNTING

VOLUNTARY CHANGE IN ACCOUNTING PRINCIPLE	9 Months Ended
	Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]
VOLUNTARY CHANGE IN ACCOUNTING PRINCIPLE	NOTE 2 – VOLUNTARY CHANGE IN ACCOUNTING PRINCIPLE During the quarter ended March 31, 2023 and effective January 1, 2023, the Company enacted a voluntary change in accounting principle from last-in-first-out (“LIFO”) to first-in-first-out (“FIFO”) in order to more accurately reflect the disposition of its digital assets. The change from LIFO to FIFO impacted the carrying value of digital asset loans made in August 2021 and December 2021, which was terminated at the point of repayment in kind for both loans in June 2022. The change in accounting principle resulted in a decrease in the carrying value of digital assets loaned and increased the gain on loaned digital assets for the year ended December 31, 2021. The change in accounting principle resulted in additional impairment of digital assets during the quarters ended March 31 and June 30, 2023. In accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), the change has been reflected in the consolidated statements of operations through retrospective application to the quarter ended March 31, 2022. The impacts of the voluntary change in accounting principle from LIFO to FIFO are as follows: SCHEDULE OF VOLUNTARY CHANGE IN ACCOUNTING PRINCIPLE As of December 31, 2021 (Restated) Condensed Consolidated Balance Sheet Impact Accumulated deficit 7,284 Three months ended (unaudited) March 31, 2022 (Restated) June 30, 2022 (Restated) September 30, 2022 (Restated) Consolidated Statements of Comprehensive Income (Loss) Impact Impairment of digital assets $ (5,660 ) $ (4,017 ) $ — Income tax benefit (expense) 1,412 (380 ) 232 Net income (loss) impact $ (4,248 ) $ (4,397 ) $ 232 Net income (loss) per share, basic and diluted impact $ (0.04 ) $ (0.04 ) $ — Six months ended (unaudited) Nine months ended (unaudited) Year ended June 30, 2022 (Restated) September 30, 2022 (Restated) December 31, 2022 (Restated) Consolidated Statements of Comprehensive Income (Loss) Impact Impairment of digital assets $ (9,677 ) $ (9,677 ) $ (9,677 ) Income tax benefit (expense) 1,032 1,264 2,393 Net income (loss) impact $ (8,645 ) $ (8,413 ) $ (7,284 ) Net income (loss) per share, basic and diluted impact $ (0.08 ) $ (0.08 ) $ (0.06 ) As of (unaudited) March 31, 2022 June 30, 2022 September 30, 2022 (Restated) Condensed Consolidated Balance Sheet Impact Digital assets $ 4,017 $ — $ — Deferred tax liabilities 981 1,361 1,129 Accumulated deficit 3,036 (1,361 ) (1,129 )

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated 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 Company has prepared the condensed consolidated financial statements in accordance with U.S. GAAP and regulations of the U.S. Securities and Exchange Commission applicable to interim financial information, which permit the omission of certain disclosure to the extent they have not changed materially since the latest annual financial statements. These condensed consolidated 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 ending December 31, 2023. 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. 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 property and equipment, realization of long-lived assets, deferred income taxes, unrealized tax positions and realization of digital assets. Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments and other short-term investments with a 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. During March 2023, the Company began to participate, to the extent practicable, in insured cash sweep programs which “sweep” its deposits across multiple FDIC insured accounts, each with deposits of no more than $ 250 Restricted cash as of December 31, 2022, principally represented those cash balances that support commercial letters of credit and are restricted from withdrawal. During March 2023, the Company eliminated its outstanding letters of credit. The following table provides a reconciliation of the total cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets to the corresponding amounts reported on the condensed consolidated statements of cash flows. SCHEDULE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH September 30, December 31, September 30, 2022 Cash and cash equivalents $ 101,210 $ 103,705 $ 55,339 Restricted cash — 8,800 8,800 Cash, cash equivalents and Restricted cash $ 101,210 $ 112,505 $ 64,139 Digital Assets and Digital Assets, Restricted Digital assets are included in current assets in the condensed consolidated balance sheets due to the Company’s ability to sell bitcoin in a highly liquid marketplace and the selling of bitcoin to fund operating expenses to support operations. In addition, digital assets provided as collateral for long-term loans were reported as Digital assets, restricted at December 31, 2022 and classified as long-term assets in the condensed consolidated balance sheets. The proceeds from the sale of digital assets are included within investing activities in the accompanying condensed consolidated statements of cash flows and any gains or losses from such sales are included in operating expenses in the condensed consolidated statements of operations. The Company measures gains or losses on the disposition of digital assets in accordance with the first-in-first-out (“FIFO”) method of accounting. 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 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Out-of-Period Adjustment, During the first quarter of 2023, the term loan was terminated and the restrictions on digital assets lapsed (refer to NOTE 11 – DEBT The following table presents the activities of digital assets and digital assets, restricted for the nine months ended September 30, 2023: SCHEDULE OF ACTIVITY OF DIGITAL CURRENCIES Digital assets and digital assets, restricted at December 31, 2022 $ 190,717 Additions of digital assets 230,391 Digital assets received as dividends 342 Impairment of digital assets (26,399 ) Proceeds from sale of digital assets (179,509 ) Gain on digital assets 72,689 Payment of advisory fees (1,430 ) Digital assets at September 30, 2023 $ 286,801 As of September 30, 2023, the Company held approximately 13,716 bitcoin classified on the condensed consolidated balance sheets as “Digital assets”, with a carrying value of $ 286,801 . As of September 30, 2023, the Company had earned 10 bitcoin that were pending distribution from the Company’s equity method investee, the ADGM Entity. At September 30, 2023, the fair market value of the Company’s bitcoin holdings was approximately $ 369,797 12,232 190,717 202,199 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 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 require advance payments to vendors in conjunction with the contractual obligations associated with these services. The Company classifies these payments as “Long-term deposits” on the condensed consolidated balance sheets. 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 mining rigs which are largely homogeneous and have approximately the same useful lives. Accordingly, the Company utilizes the group method of depreciation for its bitcoin mining rigs. 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 longer or shorter 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 condensed consolidated balance sheets. 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 convertible preferred stock of Compute North Holdings, Inc. with a purchase price of approximately $ 10,000 10,000 NOTE 9 – COMPUTE NORTH BANKRUPTCY On May 3, 2022, the Company converted $ 2,000 3,500 30,000 On September 27, 2022, the Company purchased additional shares of Auradine preferred stock with a purchase price of $ 30,000 35,500 NOTE 14 – RELATED PARTY TRANSACTIONS During the third quarter ended September 30, 2023, the Company entered into an agreement with Auradine to secure certain rights to future purchases by the Company from Auradine for which the Company paid $ 15,000 As of the nine months ended September 30, 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 Zero Two (formerly known as FS Innovation, LLC) entered into a Shareholders’ Agreement regarding the formation of an Abu Dhabi Global Markets company (the “ADGM Entity”) in which the Company has a 20 647 66,038 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. 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. The 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 NOTE 4 – REVENUE FROM CONTRACTS WITH CUSTOMERS Income Taxes Effective Tax Rate The effective tax rate (“ETR”) from continuing operations was 0.11 % and 0.92 7.75 % and 0.30 % for the three and nine months ended September 30, 2022, respectively. The difference between the US statutory tax rate of 21 % was primarily due to the change in valuation allowance as a result of current year activity. 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. 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 condensed consolidated financial statements and assures that there are proper controls in place to ascertain that the Company’s condensed consolidated financial statements properly reflect the change. Recently Issued Accounting Pronouncements On March 28, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-01, Leases (Topic 842): Common Control Arrangements On June 30, 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement of Equity Securities

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	NOTE 4 – 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 under the accounting contract 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 Company’s ongoing major or central operation is to provide bitcoin transaction verification services to the bitcoin network through a Company-operated mining pool as the operator (“Operator”) (such activity, “mining”) and to provide computing power to perform hash calculations to pool operators alongside collectives of third-party bitcoin miners (such collectives, “mining pools”) as a participant (“Participant”). The Company currently mines in a self-operated pool, which was previously open to third-party pool participants from September 2021 until May 2022. The following table presents the Company’s revenues disaggregated for those arrangements in which the Company is the Operator and Participant: SCHEDULE OF DISAGGREGATION OF REVENUE 2023 2022 2023 2022 Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenues from contracts with customers Operator - Block rewards 92,779 10,495 197,200 81,818 Operator - Transaction fees 2,378 106 9,787 3,898 Participant 2,677 2,089 23,404 $ 3,620 Other revenue 15 — 349 $ — Total revenues $ 97,849 $ 12,690 $ 230,740 $ 89,336 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. The Company is currently entitled to the block reward of 6.25 ● 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. In accordance with ASC 606-10-32-21, the Company measures the estimated fair value of noncash consideration at contract inception, which is at the 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. The Company applies the quoted spot rate for bitcoin determined using the Company’s primary trading platform for bitcoin at the time the block reward and transaction fee is earned to measure revenues. Expenses associated with providing the bitcoin transaction verification services to the customers, such as hosting fees, electricity costs, and related fees are recorded as cost of revenues. Depreciation on digital asset mining equipment is also recorded as a component of cost of revenues. Participant The Company participates in multiple third-party operated mining pools only when the Company-operated mining pool is not available. The payout methodologies differ depending on the type of third-party operated mining pool. Pay-Per-Share (“PPS”) and Full-Pay-Per-Share (“FPPS”) pools pay rewards based on a contractual formula, which primarily calculates the hash rate provided by the Company to the mining pool as a percentage of total network hash rate, and other inputs. For PPS and FPPS pools, the Company is entitled to consideration even if a block is not successfully placed by the mining pool operator. The Company also participates in third-party mining pools that pay rewards only when the pool successfully mines a block. For these pools, the Company only earns a reward when the third-party pool successfully mines a block and its reward is the fractional share of the successfully mined block and transaction fees based on the proportion of computing power the Company contributed to the mining pool operator to the total computing power contributed by all mining pool participants in solving the algorithm. 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 to be 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 (e.g., second, minute, hour) that neither the Company, nor the pool operator, terminates the arrangement. Such implied renewal option is not a material right because the pricing in the renewal periods is the same as the initial contract and there are no upfront or incremental fees in the initial contract or the terms, conditions, and compensation amounts for the renewal options are at the then market rates. When the Company participates in PPS and FPPS pools, which pay rewards based on a contractual formula, the Company recognizes revenue based on the Company’s daily contributed hash rate and other network-driven inputs, such as the total hash rate contributed by all pool participants. The variable consideration (reward) the Company will be entitled to for its contribution of hash rate can be reasonably estimated based on the contribution of hash rate and other network inputs such as total contributed hash rate. The Company measures revenue earned based on the average daily spot rate of bitcoin determined using the Company’s primary trading platform for bitcoin. When the Company participates in third-party pools that pay rewards only when the pool successfully mines a block, the Company recognizes its fractional share of the block and transaction fees using the spot rate of bitcoin at the time that the block is successfully mined. Providing computing power on mining 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 the Company’s arrangements with third-party mining pool operators. The transaction consideration the Company receives is non-cash (i.e., bitcoin) and variable. For third-party pools that pay rewards only when the pool successfully mines a block, the consideration to which the Company will be entitled to for its efforts remain variable and is not estimable until the pool successfully solves a block, at which point in time the Company can then estimate its fractional share of the bitcoin to which it is entitled to for its contribution to the pool’s successful efforts. For PPS and FPPS pools, which pay rewards based on a contractual formula that does not depend on the pool successfully mining any blocks during the period in which the Company contributes computing power, the Company can reasonably estimate the variable consideration to which it will be entitled to for providing computing power as such power is being provided based on the contributed hash rate and other inputs. 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. Expenses associated with providing computing power services to third-party operated mining pools, such as hosting fees, electricity costs, and related fees, 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	9 Months Ended
	Sep. 30, 2023
Advances To Vendors And Deposits
ADVANCES TO VENDORS AND DEPOSITS	NOTE 5 – 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 condensed consolidated balance sheets. As of September 30, 2023 and December 31, 2022, such advances totaled approximately $ 23,964 488,299 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. The Company classifies these payments as “Short-term prepaids” and “Long-term deposits” on the condensed consolidated balance sheets.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 6 – PROPERTY AND EQUIPMENT The components of property and equipment as of September 30, 2023 and December 31, 2022 are: SCHEDULE OF COMPONENTS OF PROPERTY AND EQUIPMENT Useful life (Years) September 30, 2023 December 31, 2022 Mining rigs 3 $ 679,196 $ 116,634 Containers 10 5,611 1,614 Other 7 240 206 Construction in progress — 181,790 171,194 Total gross property, equipment 866,837 289,648 Less: Accumulated depreciation (125,178 ) (16,622 ) Property and equipment, net $ 741,659 $ 273,026 The Company’s depreciation expense related to property and equipment for the three months ended September 30, 2023 and 2022 was $ 53,548 26,295 108,556 64,882

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	NOTE 7 – 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 condensed consolidated balance sheets for cash and cash equivalents, restricted cash, 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 December 31, 2022, respectively: SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS Recurring fair value measured at September 30, 2023 (in thousands) Total carrying value at September 30, 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) 45,988 45,988 — — Recurring fair value measured at December 31, 2022 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 $55,222 and $ 11,661 and There were no transfers among Levels 1, 2 or 3 during the nine months ended September 30, 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 and (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 these assets and liabilities as of September 30, 2023 and December 31, 2022, respectively, are: SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON NON-RECURRING BASIS Non-recurring fair value measured at September 30, 2023 Total carrying value at September 30, 2023 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Digital assets $ 286,801 $ 369,797 $ — $ — Non-recurring fair value measured at December 31, 2022 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 — 129,201 — Property and equipment, net (1) 271,280 — 271,280 — Advances to vendors 488,299 — 488,299 — Digital assets, restricted 68,875 — 72,998 — (1) Represents mining rigs. Excludes $ 1,746 During the three months ended March 31, 2023, the fair value of digital assets 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 nine months ended September 30, 2023. In addition, as of September 30, 2023 and December 31, 2022, the Company had convertible notes outstanding with carrying values of $ 325,266 732,289 237,980 166,842 no

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
NET INCOME (LOSS) PER SHARE	NOTE 8 – NET INCOME (LOSS) PER SHARE Net income per common share is calculated in accordance with ASC Topic 260 – 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 are as follows: SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE 2023 2022 2023 2022 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Warrants to purchase common stock 324,375 324,375 324,375 324,375 Restricted stock units — 1,113,132 3,753,431 1,113,132 Convertible notes to exchange common stock — 9,812,955 4,341,422 9,812,955 Total dilutive shares 324,375 11,318,601 6,459,630 11,235,430 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 2023 2022 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (As Restated) (As Restated) Basic earnings per common share: Net income (loss) attributable to common shareholders - basic $ 64,137 $ (72,462 ) $ 35,648 $ (302,424 ) Weighted average common shares - basic 179,602,722 116,533,816 169,162,821 109,492,865 Net income (loss) attributable to common stockholders per common stock - basic $ 0.36 (0.62 ) 0.21 (2.76 ) Diluted earnings per common share: Net income (loss) attributable to common shareholders - basic $ 64,137 $ (72,462 ) $ 35,648 $ (302,424 ) Add: Notes interest expense, net of tax 2,451 — — — Net income (loss) attributable to common stockholders per common stock - diluted $ 66,588 $ (72,462 ) $ 35,648 $ (302,424 ) Weighted average common shares - basic 179,602,722 116,533,816 169,162,821 109,492,865 Restricted stock awards 1,413,329 — — — Convertible Notes 8,475,470 — — — Preferred stock 15,000 — — — Weighted average common shares - diluted 189,506,521 116,533,816 169,162,821 109,492,865 Net income (loss) attributable to common stockholders per common stock - diluted $ 0.35 $ (0.62 ) $ 0.21 $ (2.76 )

COMPUTE NORTH BANKRUPTCY

COMPUTE NORTH BANKRUPTCY	9 Months Ended
	Sep. 30, 2023
Compute North Bankruptcy
COMPUTE NORTH BANKRUPTCY	NOTE 9 – 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 $ 39,000 for the nine months ended September 30, 2022 and $ 55,674 for the year ended December 31, 2022. On February 16, 2023, the Bankruptcy Court approved the Debtors Plan of Reorganization, pursuant to which Marathon’s claim was fixed at $ 40,000 as an unsecured claim to be paid out according to the timing and percentages within the approved Debtor’s plan. The Company has yet to receive the settlement funds.

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 10 – STOCKHOLDERS’ EQUITY Common Stock On July 27, 2023, the Company’s shareholders approved an amendment to the Company’s articles of incorporation that increased the amount of common stock authorized for issuance to 500,000,000 0.0001 Shelf Registration Statement on Form S-3 and At-The-Market Offering Agreement 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 the Company’s 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 74,447,287 627,272 In February 2022, the Company commenced an At The Market offering program with H.C. Wainwright & Co., LLC, as sales agent, which allowed it to sell and issue shares of up to approximately $ 750,000 32,305,554 265,786 Common Stock Warrants A summary of the Company’s issued and outstanding stock warrants and changes during the period ended September 30, 2023 is as follows: SUMMARY OF OUTSTANDING STOCK WARRANTS Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Outstanding as of December 31, 2022 324,375 $ 25.00 2.5 Issued — 0.00 0.0 Expired — 0.00 0.0 Exercised — 0.00 0.0 Outstanding as of September 30, 2023 324,375 $ 25.00 2.0 Restricted Stock A summary of the restricted stock award activity (represented by restricted stock units (“RSUs”)) for the nine months ended September 30, 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 3,350,763 8.33 Vested (679,947 ) 20.02 Forfeited (173,033 ) $ 9.42 Nonvested at September 30, 2023 3,753,431 $ 10.93 Series A Preferred Stock On June 5, 2023, the Company entered into a securities purchase agreement for the purchase of 15,000 15,000 14,286 952.38 5 1,000 14.52 The Series A Preferred Stock was recorded outside of stockholder’s equity as mezzanine equity. At June 30, 2023, the Company increased the carrying value of Series A Preferred Stock to its redemption value and recorded the difference to additional paid-in capital. During the third quarter ended September 30, 2023, all of the outstanding Series A Preferred Stock were redeemed at 105 1,000 15,750

DEBT

DEBT	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
DEBT	NOTE 11 – DEBT On November 18, 2021, the Company issued $ 650,000 1.0 On November 23, 2021, pursuant to terms of the Notes, the initial purchasers of the Notes purchased an additional $ 97,500 747,500 The Notes accrue interest at a rate of 1.00 The Notes will mature on December 1, 2026, unless earlier repurchased, redeemed or converted, which scenarios the Company is currently contemplating and may consummate in advance of the maturity date. 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 one 76.17 In September 2023, the Company entered into privately negotiated exchange agreements with certain holders of its Notes. In total, the Company exchanged $ 416,793 31,722,417 82,600 As of September 30, 2023 and December 31, 2022, Notes outstanding, net of unamortized discounts of approximately $ 5,441 15,211 325,266 732,289 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 and the Company recorded a loss in the amount of $ 333

LEASES

LEASES	9 Months Ended
	Sep. 30, 2023
Leases
LEASES	NOTE 12 – 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 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 nine months ended September 30, 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 September 30, 2023, the Company’s right-of-use (“ROU”) assets and total lease liabilities were $ 501 538 1,276 1,343 57 79 224 178 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 2023 2022 2023 2022 For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Operating leases Operating lease cost $ 65 $ 114 $ 250 $ 214 Operating lease expense 65 114 250 214 Short-term lease rent expense 8 7 28 22 Variable lease cost 26,263 — 46,201 — Total rent expense $ 26,336 $ 121 $ 46,479 $ 236 Additional information regarding the Company’s leasing activities as a lessee is as follows: SUMMARY OF MINIMUM LEASE PAYMENTS For the Nine Months Ended September 30, 2023 2022 Operating cash flows from operating leases $ 319 $ 261 Weighted-average remaining lease term – operating leases 3.3 3.9 Weighted-average discount rate – operating leases 5 % 5 % SCHEDULE OF LEASE LIABILITY MATURITY Year Amount 2023 (remaining) $ 66 2024 166 2025 143 2026 147 2027 63 Thereafter — Total $ 585

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
LEGAL PROCEEDINGS	NOTE 13 – 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 its mining rigs at multiple facilities. The Company 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 the Company’s 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 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 Putative Class Action Complaint 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, alleging claims under Section 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) arising out of the Company’s announcement of accounting restatements on February 28, 2023. The defendants’ time to respond has been extended until after the appointment of a lead plaintiff. To date, no lead plaintiff has been appointed. Derivative Complaints On June 22, 2023, a shareholder derivative complaint was filed in the Circuit Court of the 17th Judicial Circuit for Broward County, Florida, against current members of the Company’s board of directors and senior management, alleging claims for breach of fiduciary duty and unjust enrichment based on allegations substantially similar to the allegations in the March 30, 2023 putative class action complaint. On July 8, 2023, 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, alleging claims under Sections 14(a), 10(b), and 21D of the Exchange Act, and for breach of fiduciary duty, unjust enrichment, and waste of corporate assets, based on allegations substantially similar to the allegations in the March 30, 2023 putative class action complaint. On July 12, 2023, a third 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, alleging claims under Section 14(a) of the Exchange Act and for breach of fiduciary duty, based on allegations substantially similar to the allegations in the March 30, 2023 putative class action complaint. On July 13, 2023, a fourth shareholder derivative complaint was filed in the Circuit Court of the 17th Judicial Circuit for Broward County, Florida, against current members of the Company’s board of directors and senior management, alleging claims for breach of fiduciary duty, unjust enrichment, and waste of corporate assets, based on allegations substantially similar to the allegations in the March 30, 2023 putative class action complaint. On August 14, 2023, the two derivative actions pending in the United States District Court for the District of Nevada were consolidated (the “Nevada Derivative Action”). On October 16, 2023, the parties to the derivative actions pending in the Circuit Court of the 17th Judicial Circuit for Broward County, Florida filed an agreed order to stay both actions pending completion of the Nevada Derivative Action. 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, Montana. 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

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 14 – RELATED PARTY TRANSACTIONS On September 23, 2022, the Company made an incremental $ 30,000 35,500 5

SUPPLEMENTAL CONSOLIDATED FINAN

SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION	NOTE 15 – SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION The following table provides supplemental disclosure of Condensed Consolidated Statements of Cash Flows information: SCHEDULE OF SUPPLEMENTAL INFORMATION 2023 2022 Nine Months Ended September 30, 2023 2022 Supplemental information Cash paid during the year for: Income taxes $ 785 $ 7 Interest 6,200 5,382 Supplemental schedule of non-cash investing and financing activities: Series A Preferred Stock accretion to redemption value $ 2,121 $ — Operating lease assets obtained in exchange for new operating lease liabilities — 1,539 Digital currencies transferred from fund — 137,845 Unpaid proceeds from sale of property and equipment — 1,000 Reclassifications from advances to vendor to property and equipment upon receipt of equipment 551,650 260,575 Common stock issued for service and license agreements — 4,580 Exchange of convertible notes for common stock 318,771 —

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 16 – 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 and in this Note 16 other than as disclosed below. On October 24, 2023, the Company commenced a new At The Market offering program with H.C. Wainwright & Co., LLC, acting as sales agent, under which it may offer and sell shares of its Common Stock from time to time through the sales agent having an aggregate offering price of up to $ 750,000 3.0

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated 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 Company has prepared the condensed consolidated financial statements in accordance with U.S. GAAP and regulations of the U.S. Securities and Exchange Commission applicable to interim financial information, which permit the omission of certain disclosure to the extent they have not changed materially since the latest annual financial statements. These condensed consolidated 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 ending December 31, 2023. 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.
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 property and equipment, realization of long-lived assets, deferred income taxes, unrealized tax positions and realization of digital assets.
Cash and Cash Equivalents and Restricted Cash	Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments and other short-term investments with a 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. During March 2023, the Company began to participate, to the extent practicable, in insured cash sweep programs which “sweep” its deposits across multiple FDIC insured accounts, each with deposits of no more than $ 250 Restricted cash as of December 31, 2022, principally represented those cash balances that support commercial letters of credit and are restricted from withdrawal. During March 2023, the Company eliminated its outstanding letters of credit. The following table provides a reconciliation of the total cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets to the corresponding amounts reported on the condensed consolidated statements of cash flows. SCHEDULE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH September 30, December 31, September 30, 2022 Cash and cash equivalents $ 101,210 $ 103,705 $ 55,339 Restricted cash — 8,800 8,800 Cash, cash equivalents and Restricted cash $ 101,210 $ 112,505 $ 64,139
Digital Assets and Digital Assets, Restricted	Digital Assets and Digital Assets, Restricted Digital assets are included in current assets in the condensed consolidated balance sheets due to the Company’s ability to sell bitcoin in a highly liquid marketplace and the selling of bitcoin to fund operating expenses to support operations. In addition, digital assets provided as collateral for long-term loans were reported as Digital assets, restricted at December 31, 2022 and classified as long-term assets in the condensed consolidated balance sheets. The proceeds from the sale of digital assets are included within investing activities in the accompanying condensed consolidated statements of cash flows and any gains or losses from such sales are included in operating expenses in the condensed consolidated statements of operations. The Company measures gains or losses on the disposition of digital assets in accordance with the first-in-first-out (“FIFO”) method of accounting. 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 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Out-of-Period Adjustment, During the first quarter of 2023, the term loan was terminated and the restrictions on digital assets lapsed (refer to NOTE 11 – DEBT The following table presents the activities of digital assets and digital assets, restricted for the nine months ended September 30, 2023: SCHEDULE OF ACTIVITY OF DIGITAL CURRENCIES Digital assets and digital assets, restricted at December 31, 2022 $ 190,717 Additions of digital assets 230,391 Digital assets received as dividends 342 Impairment of digital assets (26,399 ) Proceeds from sale of digital assets (179,509 ) Gain on digital assets 72,689 Payment of advisory fees (1,430 ) Digital assets at September 30, 2023 $ 286,801 As of September 30, 2023, the Company held approximately 13,716 bitcoin classified on the condensed consolidated balance sheets as “Digital assets”, with a carrying value of $ 286,801 . As of September 30, 2023, the Company had earned 10 bitcoin that were pending distribution from the Company’s equity method investee, the ADGM Entity. At September 30, 2023, the fair market value of the Company’s bitcoin holdings was approximately $ 369,797 12,232 190,717 202,199
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 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 require advance payments to vendors in conjunction with the contractual obligations associated with these services. The Company classifies these payments as “Long-term deposits” on the condensed consolidated balance sheets.
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 mining rigs which are largely homogeneous and have approximately the same useful lives. Accordingly, the Company utilizes the group method of depreciation for its bitcoin mining rigs. 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 longer or shorter 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 condensed consolidated balance sheets. 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 convertible preferred stock of Compute North Holdings, Inc. with a purchase price of approximately $ 10,000 10,000 NOTE 9 – COMPUTE NORTH BANKRUPTCY On May 3, 2022, the Company converted $ 2,000 3,500 30,000 On September 27, 2022, the Company purchased additional shares of Auradine preferred stock with a purchase price of $ 30,000 35,500 NOTE 14 – RELATED PARTY TRANSACTIONS During the third quarter ended September 30, 2023, the Company entered into an agreement with Auradine to secure certain rights to future purchases by the Company from Auradine for which the Company paid $ 15,000 As of the nine months ended September 30, 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 Zero Two (formerly known as FS Innovation, LLC) entered into a Shareholders’ Agreement regarding the formation of an Abu Dhabi Global Markets company (the “ADGM Entity”) in which the Company has a 20 647 66,038
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.
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. The 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 NOTE 4 – REVENUE FROM CONTRACTS WITH CUSTOMERS
Income Taxes	Income Taxes Effective Tax Rate The effective tax rate (“ETR”) from continuing operations was 0.11 % and 0.92 7.75 % and 0.30 % for the three and nine months ended September 30, 2022, respectively. The difference between the US statutory tax rate of 21 % was primarily due to the change in valuation allowance as a result of current year activity. 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.
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 condensed consolidated financial statements and assures that there are proper controls in place to ascertain that the Company’s condensed consolidated financial statements properly reflect the change. Recently Issued Accounting Pronouncements On March 28, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-01, Leases (Topic 842): Common Control Arrangements On June 30, 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement of Equity Securities

VOLUNTARY CHANGE IN ACCOUNTIN_2

VOLUNTARY CHANGE IN ACCOUNTING PRINCIPLE (Tables)	9 Months Ended
	Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]
SCHEDULE OF VOLUNTARY CHANGE IN ACCOUNTING PRINCIPLE	The impacts of the voluntary change in accounting principle from LIFO to FIFO are as follows: SCHEDULE OF VOLUNTARY CHANGE IN ACCOUNTING PRINCIPLE As of December 31, 2021 (Restated) Condensed Consolidated Balance Sheet Impact Accumulated deficit 7,284 Three months ended (unaudited) March 31, 2022 (Restated) June 30, 2022 (Restated) September 30, 2022 (Restated) Consolidated Statements of Comprehensive Income (Loss) Impact Impairment of digital assets $ (5,660 ) $ (4,017 ) $ — Income tax benefit (expense) 1,412 (380 ) 232 Net income (loss) impact $ (4,248 ) $ (4,397 ) $ 232 Net income (loss) per share, basic and diluted impact $ (0.04 ) $ (0.04 ) $ — Six months ended (unaudited) Nine months ended (unaudited) Year ended June 30, 2022 (Restated) September 30, 2022 (Restated) December 31, 2022 (Restated) Consolidated Statements of Comprehensive Income (Loss) Impact Impairment of digital assets $ (9,677 ) $ (9,677 ) $ (9,677 ) Income tax benefit (expense) 1,032 1,264 2,393 Net income (loss) impact $ (8,645 ) $ (8,413 ) $ (7,284 ) Net income (loss) per share, basic and diluted impact $ (0.08 ) $ (0.08 ) $ (0.06 ) As of (unaudited) March 31, 2022 June 30, 2022 September 30, 2022 (Restated) Condensed Consolidated Balance Sheet Impact Digital assets $ 4,017 $ — $ — Deferred tax liabilities 981 1,361 1,129 Accumulated deficit 3,036 (1,361 ) (1,129 )

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
SCHEDULE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH	SCHEDULE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH September 30, December 31, September 30, 2022 Cash and cash equivalents $ 101,210 $ 103,705 $ 55,339 Restricted cash — 8,800 8,800 Cash, cash equivalents and Restricted cash $ 101,210 $ 112,505 $ 64,139
SCHEDULE OF ACTIVITY OF DIGITAL CURRENCIES	The following table presents the activities of digital assets and digital assets, restricted for the nine months ended September 30, 2023: SCHEDULE OF ACTIVITY OF DIGITAL CURRENCIES Digital assets and digital assets, restricted at December 31, 2022 $ 190,717 Additions of digital assets 230,391 Digital assets received as dividends 342 Impairment of digital assets (26,399 ) Proceeds from sale of digital assets (179,509 ) Gain on digital assets 72,689 Payment of advisory fees (1,430 ) Digital assets at September 30, 2023 $ 286,801

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
SCHEDULE OF DISAGGREGATION OF REVENUE	The following table presents the Company’s revenues disaggregated for those arrangements in which the Company is the Operator and Participant: SCHEDULE OF DISAGGREGATION OF REVENUE 2023 2022 2023 2022 Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenues from contracts with customers Operator - Block rewards 92,779 10,495 197,200 81,818 Operator - Transaction fees 2,378 106 9,787 3,898 Participant 2,677 2,089 23,404 $ 3,620 Other revenue 15 — 349 $ — Total revenues $ 97,849 $ 12,690 $ 230,740 $ 89,336

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
SCHEDULE OF COMPONENTS OF PROPERTY AND EQUIPMENT	The components of property and equipment as of September 30, 2023 and December 31, 2022 are: SCHEDULE OF COMPONENTS OF PROPERTY AND EQUIPMENT Useful life (Years) September 30, 2023 December 31, 2022 Mining rigs 3 $ 679,196 $ 116,634 Containers 10 5,611 1,614 Other 7 240 206 Construction in progress — 181,790 171,194 Total gross property, equipment 866,837 289,648 Less: Accumulated depreciation (125,178 ) (16,622 ) Property and equipment, net $ 741,659 $ 273,026

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS	SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS Recurring fair value measured at September 30, 2023 (in thousands) Total carrying value at September 30, 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) 45,988 45,988 — — Recurring fair value measured at December 31, 2022 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 $55,222 and $ 11,661 and
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 September 30, 2023 Total carrying value at September 30, 2023 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Digital assets $ 286,801 $ 369,797 $ — $ — Non-recurring fair value measured at December 31, 2022 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 — 129,201 — Property and equipment, net (1) 271,280 — 271,280 — Advances to vendors 488,299 — 488,299 — Digital assets, restricted 68,875 — 72,998 — (1) Represents mining rigs. Excludes $ 1,746

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	9 Months Ended
	Sep. 30, 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 are as follows: SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE 2023 2022 2023 2022 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Warrants to purchase common stock 324,375 324,375 324,375 324,375 Restricted stock units — 1,113,132 3,753,431 1,113,132 Convertible notes to exchange common stock — 9,812,955 4,341,422 9,812,955 Total dilutive shares 324,375 11,318,601 6,459,630 11,235,430
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 2023 2022 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (As Restated) (As Restated) Basic earnings per common share: Net income (loss) attributable to common shareholders - basic $ 64,137 $ (72,462 ) $ 35,648 $ (302,424 ) Weighted average common shares - basic 179,602,722 116,533,816 169,162,821 109,492,865 Net income (loss) attributable to common stockholders per common stock - basic $ 0.36 (0.62 ) 0.21 (2.76 ) Diluted earnings per common share: Net income (loss) attributable to common shareholders - basic $ 64,137 $ (72,462 ) $ 35,648 $ (302,424 ) Add: Notes interest expense, net of tax 2,451 — — — Net income (loss) attributable to common stockholders per common stock - diluted $ 66,588 $ (72,462 ) $ 35,648 $ (302,424 ) Weighted average common shares - basic 179,602,722 116,533,816 169,162,821 109,492,865 Restricted stock awards 1,413,329 — — — Convertible Notes 8,475,470 — — — Preferred stock 15,000 — — — Weighted average common shares - diluted 189,506,521 116,533,816 169,162,821 109,492,865 Net income (loss) attributable to common stockholders per common stock - diluted $ 0.35 $ (0.62 ) $ 0.21 $ (2.76 )

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
SUMMARY OF OUTSTANDING STOCK WARRANTS	A summary of the Company’s issued and outstanding stock warrants and changes during the period ended September 30, 2023 is as follows: SUMMARY OF OUTSTANDING STOCK WARRANTS Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Outstanding as of December 31, 2022 324,375 $ 25.00 2.5 Issued — 0.00 0.0 Expired — 0.00 0.0 Exercised — 0.00 0.0 Outstanding as of September 30, 2023 324,375 $ 25.00 2.0
SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY	A summary of the restricted stock award activity (represented by restricted stock units (“RSUs”)) for the nine months ended September 30, 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 3,350,763 8.33 Vested (679,947 ) 20.02 Forfeited (173,033 ) $ 9.42 Nonvested at September 30, 2023 3,753,431 $ 10.93

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 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 2023 2022 2023 2022 For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Operating leases Operating lease cost $ 65 $ 114 $ 250 $ 214 Operating lease expense 65 114 250 214 Short-term lease rent expense 8 7 28 22 Variable lease cost 26,263 — 46,201 — Total rent expense $ 26,336 $ 121 $ 46,479 $ 236
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 Nine Months Ended September 30, 2023 2022 Operating cash flows from operating leases $ 319 $ 261 Weighted-average remaining lease term – operating leases 3.3 3.9 Weighted-average discount rate – operating leases 5 % 5 %
SCHEDULE OF LEASE LIABILITY MATURITY	SCHEDULE OF LEASE LIABILITY MATURITY Year Amount 2023 (remaining) $ 66 2024 166 2025 143 2026 147 2027 63 Thereafter — Total $ 585

SUPPLEMENTAL CONSOLIDATED FIN_2

SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SCHEDULE OF SUPPLEMENTAL INFORMATION	The following table provides supplemental disclosure of Condensed Consolidated Statements of Cash Flows information: SCHEDULE OF SUPPLEMENTAL INFORMATION 2023 2022 Nine Months Ended September 30, 2023 2022 Supplemental information Cash paid during the year for: Income taxes $ 785 $ 7 Interest 6,200 5,382 Supplemental schedule of non-cash investing and financing activities: Series A Preferred Stock accretion to redemption value $ 2,121 $ — Operating lease assets obtained in exchange for new operating lease liabilities — 1,539 Digital currencies transferred from fund — 137,845 Unpaid proceeds from sale of property and equipment — 1,000 Reclassifications from advances to vendor to property and equipment upon receipt of equipment 551,650 260,575 Common stock issued for service and license agreements — 4,580 Exchange of convertible notes for common stock 318,771 —

SCHEDULE OF VOLUNTARY CHANGE IN

SCHEDULE OF VOLUNTARY CHANGE IN ACCOUNTING PRINCIPLE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended					6 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Mar. 30, 2022	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated deficit	$ (802,572)						$ (802,572)		$ (840,341)
Income tax benefit (expense)	(73)	$ 6,090					(351)	$ 901
Net Income (loss)	$ 64,137	$ (72,462)					$ 37,769	$ (302,424)
Net income (loss) per share, basic impact	$ 0.36	$ (0.62)					$ 0.21	$ (2.76)
Net income (loss) per share, diluted impact	$ 0.35	$ (0.62)					$ 0.21	$ (2.76)
Digital assets	$ 286,801						$ 286,801		121,842
Revision of Prior Period, Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated deficit		$ (1,129)	$ (1,361)	$ 3,036		$ (1,361)		$ (1,129)		$ 7,284
Impairment of digital assets			(4,017)	(5,660)		(9,677)		(9,677)	(9,677)
Income tax benefit (expense)		232	(380)	1,412		1,032		1,264	2,393
Net Income (loss)		$ 232	$ (4,397)	(4,248)		$ (8,645)		$ (8,413)	$ (7,284)
Net income (loss) per share, basic impact		$ 0	$ (0.04)		$ (0.04)	$ (0.08)		$ (0.08)	$ (0.06)
Net income (loss) per share, diluted impact		$ 0	$ (0.04)		$ (0.04)	$ (0.08)		$ (0.08)	$ (0.06)
Digital assets				4,017
Deferred tax liabilities		$ 1,129	$ 1,361	$ 981		$ 1,361		$ 1,129

SCHEDULE OF CASH, CASH EQUIVALE

SCHEDULE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Accounting Policies [Abstract]
Cash and cash equivalents	$ 101,210	$ 103,705	$ 55,339
Restricted cash		8,800	8,800
Cash, cash equivalents and Restricted cash	$ 101,210	$ 112,505	$ 64,139

SCHEDULE OF ACTIVITY OF DIGITAL

SCHEDULE OF ACTIVITY OF DIGITAL CURRENCIES (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Accounting Policies [Abstract]
Digital assets, Digital assets, restricted and Digital assets loaned, Beginning balance	$ 190,717
Additions of digital currencies	230,391
Digital assets received as dividends	342
Impairment of cryptocurrencies	(26,399)	$ (156,500)
Proceeds from sale of digital assets	(179,509)
Gain on digital assets	72,689
Payment of advisory fee	(1,430)
Digital assets, Digital assets, restricted and Digital assets loaned, Ending balance	$ 286,801

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands							3 Months Ended		9 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	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) Bitcoin	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) Bitcoin	Mar. 31, 2023 USD ($)	Sep. 23, 2022 USD ($)
FDIC insured amount												$ 250
Purchase of bitcoins | Bitcoin									13,716		12,232
[custom:DigitalAssetsCarryingValue-0]							$ 286,801		$ 286,801		$ 190,717
Fair value of digital currencies							369,797		369,797
[custom:FairValueOfDigitalCurreciesAndRestrictedDigitalCurrecies-0]											202,199
Fair market value of bitcoins | Bitcoin			4,769
Fair market value of digital currencies			$ 137,844
Investment							103,038		103,038		37,000
Equity in net earnings of unconsolidated affiliate							$ 647		$ 647
Effective Income Tax Rate Reconciliation, Percent							0.11%	7.75%	0.92%	0.30%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent									21%
ADGM Entity [Member]
Investments percentage							20%		20%
Equity method investments							$ 66,038		$ 66,038
Minimum [Member] | Investments and Joint Ventures [Member]
Investments percentage							20%		20%
Maximum [Member] | Investments and Joint Ventures [Member]
Investments percentage							50%		50%
SAFE Investment [Member]
Investment							$ 1,000		$ 1,000		$ 1,000
Auradine, Inc. [Member]
Investment													$ 30,000
Payments to acquire investments							$ 15,000
Preferred Stock [Member] | Auradine, Inc. [Member]
Investment	$ 35,500			$ 3,500
Payments to acquire investments	$ 30,000			30,000
Preferred Stock [Member] | Safe Agreement [Member]
Investment				$ 2,000
Convertible Preferred Stock [Member] | Computer North Holdings, Inc. [Member]
Payment to acquired equity					$ 10,000
Bankruptcy claims amount of claims filed		$ 10,000			$ 10,000
NYDIG Digital Assets Fund III LP [Member]
Purchase of bitcoins | Bitcoin						4,813
Aggregate purchase price						$ 150,000
Partnership interest rate			100%			100%

SCHEDULE OF DISAGGREGATION OF R

SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Total revenues	$ 97,849	$ 12,690	$ 230,740	$ 89,336
Other revenue	15		349
Operator [Member] | Block Rewards [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Total revenues	92,779	10,495	197,200	81,818
Operator [Member] | Transaction Fees [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Total revenues	2,378	106	9,787	3,898
Participant [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Total revenues	$ 2,677	$ 2,089	$ 23,404	$ 3,620

ADVANCES TO VENDORS AND DEPOS_2

ADVANCES TO VENDORS AND DEPOSITS (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Advances To Vendors And Deposits
Advances to vendor	$ 23,964	$ 488,299

SCHEDULE OF COMPONENTS OF PROPE

SCHEDULE OF COMPONENTS OF PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total gross property, equipment	$ 866,837	$ 289,648
Less: Accumulated depreciation	(125,178)	(16,622)
Property and equipment, net	741,659	273,026
Mining Properties and Mineral Rights [Member]
Property, Plant and Equipment [Line Items]
Total gross property, equipment	$ 679,196	116,634
Useful life (Years)	3 years
Containers [Member]
Property, Plant and Equipment [Line Items]
Total gross property, equipment	$ 5,611	1,614
Useful life (Years)	10 years
Other [Member]
Property, Plant and Equipment [Line Items]
Total gross property, equipment	$ 240	206
Useful life (Years)	7 years
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Total gross property, equipment	$ 181,790	$ 171,194

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 53,548	$ 26,295	$ 108,556	$ 64,882

SCHEDULE OF ASSETS AND LIABILIT

SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS (Details) - USD ($) $ in Thousands		Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		$ 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]	45,988	$ 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]	$ 45,988	$ 92,044
[1]Represents money market accounts. Excludes $55,222 and $ 11,661 and

SCHEDULE OF ASSETS AND LIABIL_2

SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS (Parenthetical) (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Fair Value Disclosures [Abstract]
Cash and cash equivalents	$ 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	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Digital assets, restricted	$ 286,801	$ 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	369,797		[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		129,201
Advances to vendors		488,299
Digital assets, restricted		72,998
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	$ 286,801	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	Sep. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment	$ 741,659	$ 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 ($)	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible notes carrying values	$ 325,266	$ 732,289
Other Assets Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assets and liabilities	0	0
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible notes carrying values	$ 237,980	$ 166,842

SCHEDULE OF ANTIDILUTIVE SECURI

SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive shares	324,375	11,318,601	6,459,630	11,235,430
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive shares	324,375	324,375	324,375	324,375
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive shares		1,113,132	3,753,431	1,113,132
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total dilutive shares		9,812,955	4,341,422	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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Net income (loss) attributable to common shareholders - basic	$ 64,137	$ (72,462)	$ 35,648	$ (302,424)
Weighted average common shares - basic	179,602,722	116,533,816	169,162,821	109,492,865
Net income (loss) attributable to common stockholders per common stock - basic	$ 0.36	$ (0.62)	$ 0.21	$ (2.76)
Add: Notes interest expense, net of tax	$ 2,451
Net income (loss) attributable to common stockholders per common stock - diluted	$ 66,588	$ (72,462)	$ 35,648	$ (302,424)
Restricted stock awards	1,413,329
Convertible Notes	8,475,470,000
Preferred stock	15,000,000
Weighted average common shares - diluted	189,506,521	116,533,816	169,162,821	109,492,865
Net income (loss) attributable to common stockholders per common stock - diluted	$ 0.35	$ (0.62)	$ 0.21	$ (2.76)

COMPUTE NORTH BANKRUPTCY (Detai

COMPUTE NORTH BANKRUPTCY (Details Narrative) - USD ($) $ in Thousands			9 Months Ended	12 Months Ended
	Sep. 22, 2022	Feb. 03, 2022	Sep. 30, 2022	Dec. 31, 2022	Feb. 16, 2023
Impairment charges			$ 39,000	$ 55,674
Unsecured debt					$ 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 OUTSTANDING STOCK WA

SUMMARY OF OUTSTANDING STOCK WARRANTS (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Equity [Abstract]
Number of Warrants, Beginning Balance	324,375
Weighted Average Exercise Price, Beginning Balance	$ 25
Weighted Average Remaining Contractual Life (in years), Ending	2 years	2 years 6 months
Number of Warrants Issued
Weighted Average Exercise Price, Issued	$ 0
Number of Warrants Expires
Weighted Average Exercise Price, Expired	$ 0
Number of Warrants Exercised
Weighted Average Exercise Price, Exercised	$ 0
Number of Warrants, Ending Balance	324,375	324,375
Weighted Average Exercise Price, Ending Balance	$ 25	$ 25

SUMMARY OF RESTRICTED STOCK AWA

SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY (Details) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 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	3,350,763
Weighted average grant date fair value, granted | $ / shares	$ 8.33
Number of restricted stock, vested | shares	(679,947)
Weighted average grant date fair value, vested | $ / shares	$ 20.02
Number of restricted stock, forfeited | shares	(173,033)
Weighted average grant date fair value, forfeited | $ / shares	$ 9.42
Number of restricted stock, ending balance | shares	3,753,431
Weighted average grant date fair value, ending balance | $ / shares	$ 10.93

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands				1 Months Ended	3 Months Ended	9 Months Ended
	Jun. 08, 2023	Jun. 05, 2023	Feb. 11, 2022	Feb. 28, 2022	Sep. 30, 2023	Sep. 30, 2023	Jul. 27, 2023	Dec. 31, 2022
Subsidiary, Sale of Stock [Line Items]
Common stock authorized					500,000,000	500,000,000	500,000,000	500,000,000
Common stock, par value					$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Preferred stock stated value					0.0001	$ 0.0001		$ 0.0001
At The Market Offering Agreement [Member]
Subsidiary, Sale of Stock [Line Items]
Number of shares in purchase agreement, shares						74,447,287
Offering costs						$ 627,272
Securities Purchase Agreement [Member] | Series A Preferred Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Number of shares in purchase agreement, shares		15,000
Stock issued during period, shares	15,000
Proceeds from issuance of preferred shares	$ 14,286
Purchase price of preferred shares	$ 952.38
Original issue discount percentage	5%
Preferred stock stated value	$ 1,000				$ 1,000	$ 1,000
Conversion price of preferred shares	$ 14.52
Redemption percentage of outstanding shares					105%	105%
Preferred stock redeemed					$ 15,750
At The Market Offering Agreement [Member]
Subsidiary, Sale of Stock [Line Items]
Sale of stock consideration received				$ 750,000		$ 265,786
Number of shares in purchase agreement, shares						32,305,554
At The Market Offering Agreement [Member] | Maximum [Member]
Subsidiary, Sale of Stock [Line Items]
Sale of stock consideration received			$ 750,000

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands				1 Months Ended	3 Months Ended		9 Months Ended
	Mar. 08, 2023	Jul. 28, 2022	Nov. 18, 2021	Sep. 30, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	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, which scenarios the Company is currently contemplating and may consummate in advance of the maturity date. 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 convertion shares issued			13.1277
Debt instrument conversion amount			$ 1
Conversion price per share			$ 76.17
Gain on extinguishment of debt					$ 82,600		$ 82,267
Unamortized discount				$ 5,441	5,441		5,441		$ 15,211
Notes payable				$ 325,266	$ 325,266		$ 325,266		$ 732,289
Loss on extinguishment of debt	$ 333
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
Exchange Agreement [Member]
Short-Term Debt [Line Items]
Debt convertion shares issued				31,722,417
Debt converted amount				$ 416,793
Gain on extinguishment of debt				$ 82,600
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

SCHEDULE OF COMPONENTS OF LEASE

SCHEDULE OF COMPONENTS OF LEASE COST (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases
Operating lease cost	$ 65	$ 114	$ 250	$ 214
Operating lease expense	65	114	250	214
Short-term lease rent expense	8	7	28	22
Variable lease cost	26,263		46,201
Total rent expense	$ 26,336	$ 121	$ 46,479	$ 236

SUMMARY OF MINIMUM LEASE PAYMEN

SUMMARY OF MINIMUM LEASE PAYMENTS (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Leases
Operating cash flows from operating leases	$ 319	$ 261
Weighted-average remaining lease term - operating leases	3 years 3 months 18 days	3 years 10 months 24 days
Weighted-average discount rate - operating leases	5%	5%

SCHEDULE OF LEASE LIABILITY MAT

SCHEDULE OF LEASE LIABILITY MATURITY (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Leases
2023 (remaining)	$ 66
2024	166
2025	143
2026	147
2027	63
Thereafter
Total	$ 585

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Operating lease right of use asset	$ 501		$ 501		$ 1,276
Operating lease right of use asset, amortization	57	$ 79	224	$ 178
UNITED STATES
Operating lease right of use asset	501		501		1,276
Operating lease liabilities	$ 538		$ 538		$ 1,343

LEGAL PROCEEDINGS (Details Narr

LEGAL PROCEEDINGS (Details Narrative) - USD ($) $ in Thousands	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
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
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	Sep. 30, 2023	Dec. 31, 2022	Sep. 23, 2022
Related Party Transaction [Line Items]
Investments	$ 103,038	$ 37,000
Auradine, Inc. [Member]
Related Party Transaction [Line Items]
Investments			$ 30,000
Previously issued investments			$ 35,500
Shares issued percentage			5%

SCHEDULE OF SUPPLEMENTAL INFORM

SCHEDULE OF SUPPLEMENTAL INFORMATION (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash paid during the year for:
Income taxes	$ 785	$ 7
Interest	6,200	5,382
Supplemental schedule of non-cash investing and financing activities:
Series A Preferred Stock accretion to redemption value	2,121
Operating lease assets obtained in exchange for new operating lease liabilities		1,539
Digital currencies transferred from fund		137,845
Unpaid proceeds from sale of property and equipment		1,000
Reclassifications from advances to vendor to property and equipment upon receipt of equipment	551,650	260,575
Common stock issued for service and license agreements		4,580
Exchange of convertible notes for common stock	$ 318,771

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - At The Market Offering Agreement [Member] - USD ($) $ in Thousands			1 Months Ended	9 Months Ended
	Oct. 24, 2023	Feb. 11, 2022	Feb. 28, 2022	Sep. 30, 2023
Subsequent Event [Line Items]
Aggregate offering price			$ 750,000	$ 265,786
Maximum [Member]
Subsequent Event [Line Items]
Aggregate offering price		$ 750,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Commission percentage of gross sales price per share sold	3%
Subsequent Event [Member] | Maximum [Member]
Subsequent Event [Line Items]
Aggregate offering price	$ 750,000