Sphere 3D (ANY) 10-Q 14 Nov 24 2024 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2024	Nov. 05, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-36532
Entity Registrant Name	Sphere 3D Corp.
Entity Incorporation, State or Country Code	A6
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	98-1220792
Entity Address, Address Line One	243 Tresser Blvd, 17th Floor
Entity Address, City or Town	Stamford
Entity Incorporation, State or Country Code	CT
Entity Address, Postal Zip Code	06901
City Area Code	647
Local Phone Number	952-5049
Title of 12(b) Security	Common Shares
Trading Symbol	ANY
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		21,238,243
Amendment Flag	false
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001591956

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Cash and cash equivalents	$ 4,950	$ 586
Digital assets	79	986
Investment in equity securities	6,950	0
Other current assets	2,522	11,938
Total current assets	14,501	13,510
Property and equipment, net	23,391	24,166
Total intangible assets, net	3,467	4,581
Other assets	2,896	3,406
Total assets	44,255	45,663
Accounts payable	612	2,374
Accrued liabilities	1,778	1,179
Accrued payroll and employee compensation	1,127	1,482
Warrant liabilities	32	205
Other current liabilities	0	106
Total current liabilities	3,549	5,346
Commitments and contingencies (Note 12)
Series H preferred shares, no par value, unlimited shares authorized, 11,132 and 43,515 shares issued and outstanding as of September 30, 2024 and December 31, 2023	4,858	13,794
Common shares, no par value; unlimited shares authorized, 20,940,530 and 15,373,616 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively	487,262	475,702
Accumulated other comprehensive loss	(1,814)	(1,808)
Accumulated deficit	(449,600)	(447,371)
Total shareholders’ equity	35,848	26,523
Total liabilities, temporary equity, and shareholders’ equity	$ 44,255	$ 45,663

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Temporary Equity, Par or Stated Value Per Share	$ 0	$ 0
Temporary Equity, Shares Issued	11,132	43,515
Temporary Equity, Shares Outstanding	11,132	43,515
Common shares, no par value	$ 0	$ 0
Common shares, issued (in shares)	20,940,530	15,373,616
Common shares, outstanding (in shares)	20,940,530	15,373,616

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue	$ 2,355	$ 5,724	$ 13,967	$ 14,216
Sales and marketing	0	217	0	768
Research and development	0	362	0	859
General and administrative	3,032	3,399	9,470	10,504
Depreciation and amortization	1,737	2,028	5,374	4,428
Impairment of acquired intangible assets	0	1,231	0	1,231
Impairment of property and equipment	0	0	860	0
Loss on disposal of property and equipment	0	315	691	566
Change in fair value of Bitcoin	8	0	(695)	0
Realized gain on sale of Bitcoin	0	(136)	0	(908)
Impairment of Bitcoin	0	199	0	549
Total operating expenses	7,508	12,128	26,697	29,056
Loss from operations	(5,153)	(6,404)	(12,730)	(14,840)
Other income (expense):
Unrealized (loss) gain on investment in equity securities	(446)	0	4,093	0
Other income, net	5,775	100	6,462	1,464
Interest expense	0	(10)	0	(1,183)
Net income (loss) before taxes	176	(6,314)	(2,175)	(14,559)
Provision for income taxes	72	0	74	4
Net income (loss)	104	(6,314)	(2,249)	(14,563)
Less: Non-controlling interest - (loss) income	0	(7)	0	76
Net income (loss) available to common shareholders	$ 104	$ (6,307)	$ (2,249)	$ (14,639)
Net income (loss) per share:
Net income (loss) per share, basic (in USD per share)	$ 0.01	$ (0.50)	$ (0.12)	$ (1.29)
Net income (loss) per share, diluted (in USD per share)	$ 0.005	$ (0.50)	$ (0.12)	$ (1.29)
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Basic (in shares)	20,733,022	12,653,413	18,681,399	11,340,973
Diluted (in shares)	22,323,306	12,653,413	18,681,399	11,340,973
Bitcoin
Revenue	$ 2,355	$ 5,102	$ 13,967	$ 12,592
Cost of revenue	2,731	4,292	10,997	10,331
Service and product [Member]
Revenue	0	622	0	1,624
Cost of revenue	$ 0	$ 221	$ 0	$ 728

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 104	$ (6,314)	$ (2,249)	$ (14,563)
Other comprehensive (loss) income:
Foreign currency translation adjustment	0	(1)	(6)	(6)
Total other comprehensive (loss) income	0	(1)	(6)	(6)
Comprehensive income (loss)	$ 104	$ (6,315)	$ (2,255)	$ (14,569)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment	Noncontrolling Interest
Common shares, beginning balance (in shares) at Dec. 31, 2022			9,804,609
Beginning balance, shareholders' equity at Dec. 31, 2022			$ 456,402	$ (1,799)	$ (419,732)	$ (3,821)
Beginning balance, shareholders' equity at Dec. 31, 2022	$ 34,565	$ (3,821)					$ (306)
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]
Issuance of common shares for conversion of preferred shares (in shares)			748,427
Conversion of preferred shares	$ 2,311		$ 2,311
Issuance of common shares for vested restricted stock units (in shares)			10,656
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition	485		$ 485
Remeasurement of redeemable non-controlling interest	(376)
Other Comprehensive Income (Loss), Net of Tax	(2)			(2)
Net income (loss)	(3,489)				(3,505)
Net income (loss) available to common shareholders							16
Common shares, ending balance (in shares) at Mar. 31, 2023			10,563,692
Ending balance, shareholders' equity at Mar. 31, 2023			$ 459,198	(1,801)	(427,434)
Ending balance, shareholders' equity at Mar. 31, 2023	29,673						(290)
Common shares, beginning balance (in shares) at Dec. 31, 2022			9,804,609
Beginning balance, shareholders' equity at Dec. 31, 2022			$ 456,402	(1,799)	(419,732)	(3,821)
Beginning balance, shareholders' equity at Dec. 31, 2022	34,565	(3,821)					(306)
Remeasurement of redeemable non-controlling interest	(412)
Other Comprehensive Income (Loss), Net of Tax	(6)
Net income (loss)	(14,563)
Net income (loss) available to common shareholders	(14,639)
Common shares, ending balance (in shares) at Sep. 30, 2023			14,222,194
Ending balance, shareholders' equity at Sep. 30, 2023			$ 472,628	(1,805)	(438,604)
Ending balance, shareholders' equity at Sep. 30, 2023	31,989						(230)
Common shares, beginning balance (in shares) at Mar. 31, 2023			10,563,692
Beginning balance, shareholders' equity at Mar. 31, 2023			$ 459,198	(1,801)	(427,434)
Beginning balance, shareholders' equity at Mar. 31, 2023	29,673						(290)
Issuance of common shares for conversion of preferred shares (in shares)			682,856
Conversion of preferred shares	2,109		$ 2,109
Exercised (in shares)			94,701
Stock Issued During Period, Value, Stock Options Exercised	200		$ 200
Issuance of common shares for vested restricted stock units (in shares)			82,061
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition	719		$ 719
Remeasurement of redeemable non-controlling interest	(36)
Other Comprehensive Income (Loss), Net of Tax	(3)			(3)
Net income (loss)	(4,760)				(4,827)
Net income (loss) available to common shareholders							67
Common shares, ending balance (in shares) at Jun. 30, 2023			11,423,310
Ending balance, shareholders' equity at Jun. 30, 2023			$ 462,226	(1,804)	(432,297)
Ending balance, shareholders' equity at Jun. 30, 2023	27,902						(223)
Issuance of common shares for conversion of preferred shares (in shares)			2,699,136
Conversion of preferred shares	8,335		$ 8,335
Issuance of common share warrants, net	1,130		$ 1,130
Exercised (in shares)			45,298
Stock Issued During Period, Value, Stock Options Exercised	117		$ 117
Issuance of common shares for vested restricted stock units (in shares)			10,000
Issuance of common shares for the settlement of liabilities (in shares)			44,450
Stock Issued During Period, Value, Issued for Services	64		$ 64
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition	756		$ 756
Other Comprehensive Income (Loss), Net of Tax	(1)			(1)
Net income (loss)	(6,314)				(6,307)
Net income (loss) available to common shareholders	(6,307)						(7)
Common shares, ending balance (in shares) at Sep. 30, 2023			14,222,194
Ending balance, shareholders' equity at Sep. 30, 2023			$ 472,628	(1,805)	(438,604)
Ending balance, shareholders' equity at Sep. 30, 2023	$ 31,989						(230)
Common shares, beginning balance (in shares) at Dec. 31, 2023	15,373,616		15,373,616
Beginning balance, shareholders' equity at Dec. 31, 2023	$ 26,523		$ 475,702	(1,808)	(447,371)	20
Beginning balance, shareholders' equity at Dec. 31, 2023	$ 26,523	20					0
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2023-08 [Member]
Issuance of common shares for conversion of preferred shares (in shares)			2,422,710
Conversion of preferred shares	$ 4,327		$ 4,327
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition	1,086		$ 1,086
Other Comprehensive Income (Loss), Net of Tax	(3)			(3)
Net income (loss)	(4,477)				(4,477)
Common shares, ending balance (in shares) at Mar. 31, 2024			17,796,326
Ending balance, shareholders' equity at Mar. 31, 2024			$ 481,115	(1,811)	(451,828)
Ending balance, shareholders' equity at Mar. 31, 2024	$ 27,476						0
Common shares, beginning balance (in shares) at Dec. 31, 2023	15,373,616		15,373,616
Beginning balance, shareholders' equity at Dec. 31, 2023	$ 26,523		$ 475,702	(1,808)	(447,371)	$ 20
Beginning balance, shareholders' equity at Dec. 31, 2023	$ 26,523	$ 20					0
Exercised (in shares)	0
Remeasurement of redeemable non-controlling interest	$ 0
Other Comprehensive Income (Loss), Net of Tax	(6)
Net income (loss)	(2,249)
Net income (loss) available to common shareholders	$ (2,249)
Common shares, ending balance (in shares) at Sep. 30, 2024	20,940,530		20,940,530
Ending balance, shareholders' equity at Sep. 30, 2024	$ 35,848		$ 487,262	(1,814)	(449,600)
Ending balance, shareholders' equity at Sep. 30, 2024	35,848						0
Common shares, beginning balance (in shares) at Mar. 31, 2024			17,796,326
Beginning balance, shareholders' equity at Mar. 31, 2024			$ 481,115	(1,811)	(451,828)
Beginning balance, shareholders' equity at Mar. 31, 2024	27,476						0
Issuance of common shares for conversion of preferred shares (in shares)			1,621,140
Conversion of preferred shares	2,811		$ 2,811
Issuance of common shares for vested restricted stock units (in shares)			717,858
Issuance of common shares for the settlement of liabilities (in shares)			199,597
Stock Issued During Period, Value, Issued for Services	255		$ 255
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition	772		$ 772
Other Comprehensive Income (Loss), Net of Tax	(3)			(3)
Net income (loss)	2,124				2,124
Common shares, ending balance (in shares) at Jun. 30, 2024			20,334,921
Ending balance, shareholders' equity at Jun. 30, 2024			$ 484,953	(1,814)	(449,704)
Ending balance, shareholders' equity at Jun. 30, 2024	33,435						0
Issuance of common shares for conversion of preferred shares (in shares)			582,283
Conversion of preferred shares	1,798		$ 1,798
Issuance of common shares for vested restricted stock units (in shares)			23,326
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition	511		$ 511
Other Comprehensive Income (Loss), Net of Tax	0
Net income (loss)	104				104
Net income (loss) available to common shareholders	$ 104
Common shares, ending balance (in shares) at Sep. 30, 2024	20,940,530		20,940,530
Ending balance, shareholders' equity at Sep. 30, 2024	$ 35,848		$ 487,262	$ (1,814)	$ (449,600)
Ending balance, shareholders' equity at Sep. 30, 2024	$ 35,848						$ 0

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating activities:
Net income (loss)	$ (2,249)	$ (14,563)
Adjustments to reconcile net loss to cash used in operating activities:
Unrealized gain on investment in equity securities	(4,093)	0
Depreciation and amortization	5,374	4,428
Share-based compensation	2,369	1,960
Impairment of property and equipment	860	0
Change in fair value of Bitcoin	(695)	0
Loss on disposal of property and equipment	691	566
Bitcoin issued for services	538	1,263
Realized gain on sale of investment in equity securities	(3,395)	0
Change in fair value of warrant liabilities	(173)	(1,371)
Impairment of Intangible Assets, Finite-Lived	0	1,231
Warrants issued with convertible debt	0	976
Realized gain on sale of Bitcoin	0	(908)
Impairment of Bitcoin	0	549
Gain (Loss) on Extinguishment of Debt	0	63
Noncash lease cost	0	40
Changes in operating assets and liabilities:
Proceeds from sale of Bitcoin	13,529	12,958
Mining of Bitcoin	(13,967)	(12,592)
Accounts receivable	0	10
Accounts payable and accrued liabilities	(1,567)	1,336
Accrued payroll and employee compensation	(100)	48
Other assets and liabilities, net	(186)	(2,018)
Net cash used in operating activities	(3,064)	(6,024)
Investing activities:
Proceeds from sale of investment in equity securities	10,538	0
Payments for purchase of property and equipment	(4,632)	(1,561)
Proceeds from sale of Bitcoin	1,522	0
Proceeds from sale of property and equipment	0	4,111
Redemption of non-controlling interest	0	(10,410)
Proceeds from Redemption of Cash in Trust Account	0	10,297
Net cash provided by (used in) investing activities	7,428	2,437
Financing Activities [Abstract]
Proceeds from Issuance of Preferred Shares, net	0	3,048
Payments for convertible debt	0	(1,285)
Proceeds from convertible debt, net of debt issuance costs	0	779
Proceeds from exercise of stock options	0	317
Net cash provided by financing activities	0	2,859
Net increase (decrease) in cash, cash equivalents and restricted cash	4,364	(728)
Cash, cash equivalents and restricted cash, beginning of period	586	1,543
Cash, cash equivalents and restricted cash, end of period	4,950	815
Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets:
Cash and cash equivalents	4,950	613
Restricted cash	0	202
Total cash, cash equivalents and restricted cash	4,950	815
Supplemental disclosures of non-cash investing activities:
Settlement of prepaid hosting services deposit with equity securities	10,000	0
Capital Expenditures Incurred but Not yet Paid	404	0
Fair value of shares issued	255	0
Remeasurement of redeemable non-controlling interest	0	412
Issuance of Preferred Stock and Warrants, Accrued Expense	$ 0	$ 34

Organization and Business

Organization and Business	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	Organization and Business Sphere 3D Corp. was incorporated under the Business Corporations Act (Ontario) on May 2, 2007 as T.B. Mining Ventures Inc. On March 24, 2015, the Company completed a short-form amalgamation with a wholly-owned subsidiary. In connection with the short-form amalgamation, the Company changed its name to “Sphere 3D Corp.” Any reference to the “Company”, “Sphere 3D”, “we”, “our”, “us”, or similar terms refers to Sphere 3D Corp. and its subsidiaries. In January 2022, the Company commenced operations of its Bitcoin mining business and is dedicated to becoming a leader in the Blockchain and Crypto Industry. The Company has established and plans to continue to grow an enterprise-scale mining operation through the procurement of mining equipment and partnering with experienced service providers. In addition, through December 28, 2023, the Company delivered data management and desktop and application virtualization solutions through hybrid cloud, cloud and on premise implementations by its global reseller network. On December 28, 2023, the Company sold its service and product segment which included HVE ConneXions and Unified ConneXions. Going Concern Management has projected that based on our recurring losses, negative cash flows from operating activities, and our hashing rate at September 30, 2024, cash on hand may not be sufficient to allow the Company to continue operations and there is doubt about the Company’s ability to continue as a going concern within 12 months from the date of issuance of the financial statements if we are unable to raise additional funding for operations. We expect our working capital needs to increase in the future as we continue to expand and enhance our operations. Included in our working capital is an investment in equity securities that we can liquidate as needed to assist in funding our operations. Our ability to raise additional funds for working capital through equity or debt financings or other sources may depend on the financial success of our business and successful implementation of our key strategic initiatives, financial, economic and market conditions and other factors, some of which are beyond our control. We require additional capital and if we are unsuccessful in raising that capital at a reasonable cost and at the required times, or at all, we may not be able to continue our business operations in the cryptocurrency mining industry or we may be unable to advance our growth initiatives, either of which could adversely impact our business, financial condition and results of operations. In an effort to mitigate these risks we expect to take steps to lower our cost of mining and also refresh our mining fleet to increase our mining efficiency. Significant changes from the Company’s current forecasts, including but not limited to: (i) shortfalls from projected mining earning levels; (ii) increases in operating costs; (iii) decreases in the value of cryptocurrency; and (iv) if we do not maintain compliance with the requirements of the NASDAQ Capital Market and/or we do not maintain our listing with the NASDAQ Capital Market could have a material adverse impact on the Company’s ability to access the level of funding necessary to continue its operations at current levels. These factors, among others, should they occur may result in the Company’s inability to continue as a going concern within 12 months from the date of issuance of the financial statements. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business and do not include any adjustments that might result from the outcome of this uncertainty.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements of the Company have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“GAAP”), applied on a basis consistent for all periods. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for a complete set of financial statements. These condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission on March 13, 2024. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. These condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been appropriately eliminated in consolidation. Use of Estimates The preparation of the condensed consolidated financial statements 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 condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Foreign Currency Translation The financial statements of the Company’s foreign subsidiary, for which the functional currency is the local currency, is translated into U.S. dollars using the exchange rate at the consolidated balance sheet date for assets and liabilities and a weighted-average exchange rate during the year for revenue, expenses, gains and losses. Translation adjustments are recorded as accumulated other comprehensive income (loss) within shareholders’ equity. Gains or losses from foreign currency transactions are recognized in the condensed consolidated statements of operations. Such transactions resulted in minimal losses for the three and nine months ended September 30, 2024 and 2023. Cash and Cash Equivalents Highly liquid investments with insignificant interest rate risk and original maturities of three months or less, when purchased, are classified as cash equivalents. Cash equivalents are composed of money market funds. The Company maintains cash and cash equivalent balances with financial institutions that exceed federally insured limits. The Company has not experienced any losses related to these balances and believes credit risk to be minimal. Investment in Equity Securities The Company’s investments are in publicly held equity securities which have readily determinable fair values. These equity investments are recorded at fair value with unrealized holding gains and losses recorded in other income or expense in the consolidated statement of operations. Digital Assets Digital assets are included in current assets in the consolidated balance sheets as the Company has the ability to sell its Bitcoin in a highly liquid marketplace and the sale of Bitcoin is used to fund operating expenses to support operations. Bitcoin is expected to be realized in cash or sold or consumed during the Company’s normal operating cycle. Bitcoin held are accounted for as intangible assets with indefinite useful lives. The proceeds from the sale of Bitcoin are included within operating or investing activities in the consolidated statements of cash flows depending on the length of time the Bitcoin is held. The Company adopted ASU 2023-08 effective January 1, 2024, which requires Bitcoin to be valued at fair value at the end of each reporting period with changes in fair value recorded in operating expenses in the consolidated statements of operations. The fair value of Bitcoin is measured using the period-end closing price from the Company’s principal market. When Bitcoin is sold, the gains and losses from such transactions are measured as the difference between the cash proceeds and the carrying basis of the Bitcoin as determined on a first in-first out (“FIFO”) basis and are recorded within the same line item, Change in Fair Value of Bitcoin, in the consolidated statements of operations. Prior to the adoption of ASU 2023-08, t he Company accounted for its digital assets, Bitcoin, as indefinite-lived intangible assets. The digital assets were recorded at cost less impairment. An impairment analysis was performed daily to determine if the fair value of Bitcoin was lower than the carrying value for Bitcoin until the Bitcoin was disposed of or until the end of the reporting period, whichever came first. The fair value of digital assets was determined on a nonrecurring basis based on the lowest intraday quoted price as reported in the Company’s principal market. If t he carrying value of the digital asset exceeded the fair value, an impairment loss had occurred with respect to those digital assets in the amount equal to the difference between their carrying values and the fair value determined. Impairment losses were recognized in operating expenses in the consolidated statements of operations in the period in which the impairment is identified. The impaired digital assets were written down to their fair value at the time of impairment and this new cost basis would not be adjusted upward for any subsequent increase in fair value. Gains are not recorded until realized upon sale or disposition. Digital assets awarded to the Company through its mining activities were included within operating activities on the consolidated statements of cash flows. The disposal of digital assets were included within operating activities in the consolidated statements of cash flows and any realized gains or losses from such sales are included in operating costs and expenses in the consolidated statements of operations. The Company accounted for its gains or losses in accordance with the FIFO method of accounting. Property and Equipment Property and equipment primarily consists of mining equipment and is stated at cost, including purchase price and all shipping and custom fees, and depreciated using the straight-line method over the estimated useful lives of the assets, generally five years. The Company reviews the carrying amounts of property and equipment when events or changes in circumstances indicate the assets may not be recoverable. If any such indication exists, the fair value of the asset is estimated in order to determine the extent of the impairment loss, if any. Intangible Assets For intangible assets purchased in a business combination, the estimated fair values of the assets received are used to establish their recorded values. For intangible assets acquired in a non-monetary exchange, the estimated fair values of the assets transferred (or the estimated fair values of the assets received, if more clearly evident) are used to establish their recorded values. Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value. Supplier agreements are amortized on a straight-line basis over their economic lives of 5 years as this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. Impairment of Intangible Assets The Company performs regular reviews of intangible assets to determine if any event has occurred that may indicate that intangible assets with finite useful lives and other long-lived assets are potentially impaired. Triggering events for impairment reviews may be indicators such as adverse industry or economic trends, restructuring actions, lower projections of profitability, or a sustained decline in our market capitalization. Intangible assets are quantitatively assessed for impairment, if necessary, by comparing their estimated fair values to their carrying values. If the carrying value exceeds the fair value, the difference is recorded as an impairment. Warrant Liabilities Warrant liabilities are presented at fair value on the consolidated balance sheets. The warrant liabilities are subject to remeasurement at each balance sheet date and any change in fair value is recognized in other income, net, in the consolidated statements of operations. Revenue Recognition The Company accounts for revenue pursuant to ASU 2014-09, Revenue from Contracts with Customers and all the related amendments (“Topic 606”). Under Topic 606, an entity is required to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, and contract consideration will be recognized on a “sell-in basis” or when control of the purchased goods or services transfer to the distributor. The Company is engaged with Bitcoin mining pool operators, its customers, to provide a service to perform hash calculations for the mining pool operator, which is the Company’s only performance obligation. Providing hash calculation services is an output of the Company’s ordinary activities. The Company currently has service agreements with Foundry Digital LLC and Luxor Technology Corporation, each a cryptocurrency mining pool operator, to provide a service to perform hash calculations. In exchange for providing the service, the Company is entitled to Full Pay Per Share (“FPPS”), which is a fractional share of the fixed Bitcoin award the mining pool operator receives, plus a fractional share of the transaction fees attached to that blockchain less net digital asset fees due to the mining pool operator over the measurement period, as applicable. The pay-outs received are based on the expected value from the block reward plus the transaction fee reward, regardless of whether the mining pool operator successfully records a block to the blockchain. The Company’s fractional share is based on a contractual formula, which primarily calculates the hash rate provided to the mining pool as a percentage of total network hash rate and other inputs. The contracts, which are less than 24 hours and continuously renew throughout the day, are terminable at any time by either party without compensation and the Company’s enforceable right to compensation only begins when the Company starts providing the service to the mining pool operator, which begins daily at midnight Universal Time Coordinated (“UTC”). The terms, conditions, and compensation are at the current market rates, and accordingly the renewal option is not a material right. The contract arises at the point that the Company provides hash calculation services to the mining pool operator, which is the beginning of the contract day at midnight UTC time (contract inception), as customer consumption is in tandem with daily earnings of delivery of the service. According to the customer contract, daily earnings are calculated from midnight-to-23:59:59 UTC time, and the payout is made one hour later at 1:00 AM UTC time. The Company satisfies its performance obligation over time with daily settlement in Bitcoin. The Company’s performance is completed as it transfers the hash rate computations over the continuously renewed contract periods, which are less than 24 hours. The Company has full control of the mining equipment utilized in the mining pool and if the Company determines it will increase or decrease the processing power of its machines and/or fleet (i.e., for repairs or when power costs are excessive) the service provided to the customer will be adjusted. The transaction consideration the Company receives is noncash consideration in the form of Bitcoin, which the Company measures at fair value at contract inception, midnight UTC time. The noncash consideration is variable, since the amount of block reward earned depends on the amount of hash calculation services, the amount of transaction fees awarded and operator fees over the same period. The Company does not constrain this variable consideration because it is probable that a significant reversal in the amount of revenue recognized from the contract will not occur when the uncertainty is subsequently resolved and recognizes the noncash consideration on the same day that control is transferred, which is the same day as contract inception. The fair value used to calculate the noncash consideration is based on the Bitcoin spot price in our principal market at the beginning of the day (midnight UTC time) at contract inception. Expenses associated with running the Bitcoin mining operations, such as hosting, operating supplies, utilities, and monitoring services are recorded as cost of revenues. Comprehensive Income (Loss) Comprehensive income (loss) and its components encompass all changes in equity other than those arising from transactions with shareholders, including net income (loss) and foreign currency translation adjustments, and is disclosed in a separate condensed consolidated statement of comprehensive income (loss). Share-based Compensation The Company accounts for share-based awards, and similar equity instruments, granted to employees, non-employee directors, and consultants in accordance with the authoritative guidance for share-based compensation. Share-based compensation award types may include stock options and restricted stock units (“RSUs”) and restricted stock awards (“RSAs”). Share-based compensation expense is recognized on a straight-lined basis over the requisite service period (usually the vesting period) except for options with graded vesting which is recognized pursuant to an accelerated method. Forfeitures are recognized as a reduction in share-based compensation expense as they occur. Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding the method to allocate resources and assess performance. Through the period ended December 28, 2023, the Company had two operating segments. On December 28, 2023, the Company sold its service and product segment. As of January 1, 2024, the Company has one operating segment and one reporting segment. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified effective date. If not discussed, the Company believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires more detailed income tax disclosures. The guidance requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as expanded information on income taxes paid by jurisdiction. The disclosure requirements will be applied on a prospective basis, with the option to apply them retrospectively. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the disclosure requirements related to the new standard. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires public entities with a single reportable segment to provide all the disclosures required by this standard and all existing segment disclosures in Topic 280 on an interim and annual basis, including new requirements to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within the reported measure(s) of a segment's profit or loss, the amount and composition of any other segment items, the title and position of the CODM, and how the CODM uses the reported measure(s) of a segment's profit or loss to assess performance and decide how to allocate resources. The guidance is effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024, applied retrospectively with early adoption permitted. The Company is evaluating the impact of adoption of this standard on its consolidated financial statements and disclosures. Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-08, Intangibles - Goodwill - and Other - Crypto Assets (Subtopic 350-60) : Accounting For and Disclosure of Crypto Assets (“ASU 2023-08”) , which requires that an entity measure cryptocurrency at fair value in the statement of financial position each reporting period and recognize changes from remeasurement in net income. The amendments also require that an entity provide enhanced disclosures for both annual and interim reporting periods to provide investors with relevant information to analyze and assess the exposure and risk of significant individual crypto asset holdings. In addition, fair value measurement aligns the accounting required for holders of cryptocurrency with the accounting for entities that are subject to certain industry-specific guidance and eliminates the requirement to test those assets for impairment, thereby reducing the associated cost and complexity of applying the current guidance. The Company’s digital assets are within the scope of the new guidance and the transition requires a cumulative-effect adjustment as of the beginning of the current fiscal year for any difference between the carrying amount of the Company’s digital assets and fair value. Effective January 1, 2024, the Company early adopted ASU 2023-08 and recorded a $20,000 decrease to the opening balance of accumulated deficit and an increase to digital assets.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value Disclosures	Fair Value Measurements The authoritative guidance for fair value measurements establishes a three tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis The Company’s consolidated financial instruments include cash equivalents, investment in equity securities, accounts payable, accrued liabilities, and warrant liabilities. Fair value estimates of these instruments are made at a specific point in time, based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. The carrying amount of cash equivalents, accounts payable and accrued liabilities are generally considered to be representative of their respective fair values because of the short-term nature of those instruments. The following tables provide a summary of the assets and liabilities that are measured at fair value on a recurring basis (in thousands): September 30, 2024 Fair Value Level 1 Level 2 Level 3 Assets: Investment in equity securities $ 6,950 $ 6,950 $ — $ — Bitcoin 79 79 — — Total $ 7,029 $ 7,029 $ — $ — Liabilities: Warrant liabilities $ 32 $ — $ — $ 32 December 31, 2023 Fair Value Level 1 Level 2 Level 3 Liabilities: Warrant liabilities $ 205 $ — $ — $ 205 The Company’s investments are in publicly held equity securities which have readily determinable fair values. For the three and nine months ended September 30, 2024, the Company recognized an unrealized loss of $0.4 million and gain of $4.1 million, respectively, within other income (expense) in its consolidated statements of operations related to the fair value change of the investment in equity securities. For the three and nine months ended September 30, 2024, the Company recognized a realized gain of $2.9 million and $3.4 million, respectively, within other income (expense) in its consolidated statements of operations related to the sale of equity securities. The fair value of the warrant liabilities was measured using a Black Scholes valuation model with the following assumptions: September 30, December 31, Common share price $ 0.93 $ 3.47 Expected volatility 120.0 % 120.0 % Risk-free interest rate 3.8 % 4.2 % The following table presents the activities of warrant liabilities that are measured at fair value (in thousands): Warrant liability as of January 1, 2024 $ 205 Change in fair value LDA warrant (129) Warrant liability as of March 31, 2024 76 Change in fair value LDA warrant (32) Warrant liability as of June 30, 2024 44 Change in fair value LDA warrant (12) Warrant liability as of September 30, 2024 $ 32 Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis The Company's non-financial assets such as property and equipment and intangible assets are recorded at fair value when an impairment is recognized or at the time acquired in an asset acquisition or business combination measured using significant unobservable inputs (Level 3). As discussed in Note 6 - Certain Balance Sheet Items , for the nine months ended September 30, 2024, the Company recorded impairment charges associated with property and equipment and reduced the carrying amount of such assets subject to the impairment to their estimated fair value.

Digital Assets

Digital Assets	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Digital Assets	Digital Assets The following table presents the activities of Bitcoin (in thousands): Balance at January 1, 2024 $ 986 Cumulative effect upon adoption of ASU 2023-08 20 Revenue recognized from Bitcoin mined 13,967 Proceeds from sale of Bitcoin (15,051) Bitcoin issued for services (538) Change in fair value of Bitcoin 695 Balance at September 30, 2024 $ 79 The following table presents Bitcoin holdings (in thousands except for number of Bitcoin): September 30, Number of Bitcoin held 1.3 Carrying basis of Bitcoin $ 82 For the three and nine months ended September 30, 2024, the Company had a realized gain of approximately $2,000 and $630,000, respectively, on the sale of Bitcoin. All additions of Bitcoin were the result of Bitcoin generated by the Company’s Bitcoin mining operations. All dispositions of Bitcoin were the result of sales on the open market and used to fund the Company’s operations. The Company's Bitcoin holdings are not subject to sale restrictions and do not serve as collateral for any agreements. As of September 30, 2024 and December 31, 2023, the Company held no other cryptocurrency.

Notes Receivable

Notes Receivable	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
Notes Receivable	Note Receivable Rainmaker Promissory Note In September 2020, the Company entered into a Senior Secured Convertible Promissory Note with Rainmaker Worldwide Inc. (the “Rainmaker Note”), pursuant to which the Company loaned Rainmaker Worldwide Inc. (“Rainmaker”) the principal amount of $3.1 million. The Rainmaker Note is secured as a registered lien under the Uniform Commercial Code and the Personal Property Security Act (Ontario) against the assets of Rainmaker and bears interest at the rate of 10.0% per annum. In July 2024, the Company and Rainmaker entered into Amendment No. 3 to the Rainmaker Note and the principal amount was revised to $4.4 million and the due date was extended to January 14, 2025, at which time all principal and accrued interest is due and payable. The Company has the right, at any time, to convert all or any portion of the then outstanding and unpaid Rainmaker Note and interest into shares of Rainmaker common stock at the conversion price as defined in the Rainmaker Note. All amounts related to the Rainmaker Note have been fully reserved in prior periods.

Certain Balance Sheet Items

Certain Balance Sheet Items	9 Months Ended
	Sep. 30, 2024
Balance Sheet Related Disclosures [Abstract]
Certain Balance Sheet Items	Certain Balance Sheet Items The following table summarizes other current assets (in thousands): September 30, December 31, Prepaid mining hosting services $ 1,129 $ 980 Prepaid insurance 964 575 Prepaid services 224 193 Bitcoin mining hosting deposit — 10,000 Other 205 190 Total other current assets $ 2,522 $ 11,938 The December 31, 2023 Bitcoin mining hosting deposit was settled by shares of Core Scientific’s common stock issued to the Company, and is included in investment in equity securities at September 30, 2024. The following table summarizes property and equipment, net (in thousands): September 30, December 31, Mining equipment $ 32,155 $ 30,122 Construction in progress 500 — Total 32,655 30,122 Accumulated depreciation (9,264) (5,956) Property and equipment, net $ 23,391 $ 24,166 Depreciation expense for property and equipment was $1.4 million and $1.3 million for the three months ended September 30, 2024 and 2023, respectively. Depreciation expense for property and equipment was $4.3 million and $2.9 million for the nine months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024 and 2023, the Company sold 450 and 2,925 miners, respectively, that were included in mining equipment, for proceeds of $0.2 million and $4.1 million, respectively. The Company had a loss on the sale of miners of nil and $0.7 million during the three and nine months ended September 30, 2024. The Company had a loss on the sale of miners of $0.3 million and $0.6 million during the three and nine months ended September 30, 2023, respectively. Impairment of Property and Equipment For the nine months ended September 30, 2024, the Company recorded an impairment to property and equipment related to idle mining equipment not expected to return to use. The Company compared the indicated fair value to the carrying value of the mining equipment, and as a result of the analysis, an impairment charge of $0.9 million was recorded for the nine months ended September 30, 2024. The estimated fair value of the Company’s mining equipment is classified in Level 3 of the fair value hierarchy. The Company incurred no property and equipment impairment charges for the three and nine months ended September 30, 2023. The following table summarizes other non-current assets (in thousands): September 30, December 31, Prepaid mining hosting services $ 2,892 $ 3,402 Other 4 4 Total other non-current assets $ 2,896 $ 3,406

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets The following table summarizes intangible assets, net (in thousands): September 30, December 31, Supplier agreements $ 37,525 $ 37,525 Capitalized development costs 103 103 37,628 37,628 Accumulated amortization: Supplier agreements (34,058) (32,944) Capitalized development costs (103) (103) (34,161) (33,047) Total finite-lived intangible assets, net $ 3,467 $ 4,581 Amortization expense for intangible assets was $0.4 million and $0.8 million for the three months ended September 30, 2024 and 2023, respectively. Amortization expense for intangible assets was $1.1 million and $1.6 million for the nine months ended September 30, 2024 and 2023, respectively. Estimated amortization expense for intangible assets is approximately $0.4 million for the remainder of 2024 and $1.5 million, $1.5 million, and $0.1 million in fiscal year 2025, 2026, and 2027, respectively.

Preferred Shares

Preferred Shares	9 Months Ended
	Sep. 30, 2024
Class of Stock Disclosures [Abstract]
Preferred Stock	Preferred Shares Series H Preferred Shares On October 1, 2021, the Company filed articles of amendment to create a series of preferred shares, being, an unlimited number of Series H Preferred Shares and to provide for the rights, privileges, restrictions and conditions attaching thereto. The Series H Preferred Shares are convertible provided (and only if and to the extent) that prior shareholder approval of the issuance of all Sphere 3D common shares issuable upon conversion of the Series H Preferred Shares has been obtained in accordance with the rules of the Nasdaq Stock Market, at any time from time to time, at the option of the holder thereof, into 142.857 Sphere 3D common shares for every Series H Preferred Share. Each holder of the Series H Preferred Shares, may, subject to prior shareholder approval, convert all or any part of the Series H Preferred Shares provided that after such conversion the common shares issuable, together with all the common shares held by the shareholder in the aggregate would not exceed 9.99% of the total number of outstanding common shares of the Company. Each Series H Preferred Share has a stated value of $1,000. The Series H Preferred Shares are non-voting and do not accrue dividends. These features include, in the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, deemed liquidation or any other distribution of the assets of the Company among its shareholders for the purpose of winding-up its affairs, the Series H Preferred Shares shall entitle each of the holders thereof to receive an amount equal to the Series H subscription price per Series H Preferred Share, as defined in the agreement, to be paid before any amount is paid or any assets of the Company are distributed to the holders of its common shares. In November 2022, the Company entered into the Modified Hertford Agreement. The Modified Hertford Agreement provides for certain resale restrictions applicable to the common shares that are issuable upon the conversion of the remaining Series H Preferred Shares during the two-year period ending on December 31, 2024, which are different from the restrictions contained in the Hertford Agreement. Commencing January 1, 2024 and terminating on December 31, 2024, holders of Series H Preferred Shares are permitted to (a) convert Series H Preferred Shares in an aggregate amount up to or equal to 10.0% of the aggregate number of Series H Preferred Shares outstanding on the first day of each such month and (b) sell the resulting number (and no greater number) of such converted common shares within such month. In August 2023, the Company entered into an Amended and Restated Agreement (the “Hertford Amendment”) with Hertford Advisors Ltd. and certain other parties listed in the Hertford Amendment (together, the “Hertford Group”), which amends and restates in its entirety the purchase agreement between the Company and Hertford Advisors Ltd. dated July 31, 2021, as modified by the amendment to such agreement dated November 7, 2022 (together, the “Original Hertford Agreement”). As an inducement to enter into the Hertford Amendment, the Company issued to Hertford 1,376 Series H Preferred Shares and 800,000 warrants with an aggregate fair value of $1.0 million. Pursuant to the Hertford Amendment, Hertford exchanged 14,980 Series H Preferred Shares for Series H Preferred Shares held by other persons (the “Exchanged Series H Preferred Shares”). The Hertford Group shall not be permitted to sell more than that number of common shares equal to 20% of the previous trading day's volume for common shares traded on the principal exchange upon which the common shares are listed and, for any subsequent trading day, the shares sold by the Hertford Group on the previous trading day shall be excluded when calculating the day's volume. Beginning on January 1, 2025, the Hertford Group shall not be prohibited, restrained or otherwise limited from converting its Series H Preferred Shares or selling any common shares converted from Series H Preferred Shares, subject to applicable laws, exchange requirements and the terms and conditions of the Series H Preferred Shares. In August 2023, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) pursuant to which the Company issued to two investors a total of 13,764 of the Company’s Series H Preferred Shares and a total of 1,966,293 common share purchase warrants (the “Warrants”), each of which entitled the holder to purchase one common share of the Company (the “Warrant Shares”). Pursuant to the terms of the Purchase Agreement, the Company received gross proceeds of $3.0 million. The Company issued a total of 1,377 Series H Preferred Shares and 196,629 warrants as a finder’s fee for the transaction with an aggregate fair value of $0.5 million. Pursuant to the terms of the Purchase Agreement, the Company will reserve for issuance the maximum aggregate number of common shares that are issuable upon exercise in full of the Warrants at any time. The Warrants issued in connection with the Hertford Amendment and the Purchase Agreement are exercisable beginning February 12, 2024 and February 23, 2024, respectively, at an initial exercise price of $2.75 per share and have a term of three years from the date of issuance. The exercise price of the Warrants are subject to adjustment for certain stock splits, stock combinations and dilutive share issuances. In accordance with the authoritative guidance for distinguishing liabilities from equity, the Company has determined that its Series H preferred shares carry certain redemption features beyond the control of the Company. Accordingly, the Series H Preferred Shares are presented as temporary equity. For the nine months ended September 30, 2024 and 2023, the Company issued 4,626,133 and 4,130,419 common shares for the conversion of 32,383 and 28,913 Series H Preferred Shares, respectively.

Share Capital

Share Capital	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Share Capital	Share Capital On April 17, 2023, the Company entered into a Securities Purchase Agreement (the “LDA Purchase Agreement”) as amended April 25, 2023, pursuant to which the Company issued to an investor, LDA Capital Limited (the “Investor”) a common share purchase warrant (the “LDA Warrant”) to purchase up to 455,927 common shares of the Company (the “LDA Warrant Shares”). The LDA Warrant is exercisable at an exercise price of $1.342 per share and expires three years from the date of issuance or earlier if the closing of a Fundamental Transaction occurs (defined as merger or consolidation, any sale of substantially all of the Company’s assets, any tender offer or exchange offer pursuant to which common shareholders can tender or exchange their shares for other securities, cash or property, as well as any reclassification of common shares into other securities, cash or property). The exercise price of the LDA Warrant is subject to adjustment for certain stock splits, stock combinations and dilutive share issuances. Pursuant to the terms of the LDA Purchase Agreement, the Company will reserve for issuance 200% of the maximum aggregate number of common shares as are issuable upon exercise in full of the LDA Warrant at any time. The LDA Warrant contains a contingent put option. In the event of a Fundamental Transaction, the Investor may, at the Investor’s option, require the Company to purchase the LDA Warrant for an amount of cash equal to the Black Scholes value of the remaining unexercised portion of the warrant on the date of consummation of such Fundamental Transaction. The Company has recorded the warrant as a liability and will adjust the warrant liability to fair value each reporting period until settled. Unlimited authorized shares of common shares at no par value are available to the Company. At September 30, 2024, the Company had the following outstanding warrants to purchase common shares: Date issued Contractual life (years) Exercise price Number outstanding Expiration July 2021 3 $28.00 285,716 December 22, 2024 September 2021 5 $66.50 1,614,299 September 8, 2026 October 2021 3 $42.00 121,429 October 1, 2024 February 2022 5 $28.00 14,286 February 7, 2027 February 2022 5 $35.00 14,286 February 7, 2027 February 2022 5 $42.00 14,286 February 7, 2027 April 2023 3 $1.34 73,556 April 17, 2026 August 2023 3 $2.75 800,000 August 11, 2026 August 2023 3 $2.75 2,162,922 August 23, 2026 5,100,780

Equity Incentive Plan

Equity Incentive Plan	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Equity Incentive Plan	Equity Incentive Plan Stock Options The fair value of option awards are estimated on the date of grant using the Black-Scholes option pricing model. Expected volatility was based on historical volatility of the Company’s common shares. The expected term of options granted was based on the simplified formula. The risk-free interest rate was based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The dividend yield assumption was based on the expectation of no future dividend payments. Option awards can be granted for a maximum term of up to 10 years. The assumptions used in the Black-Scholes model were as follows: Three Months Nine Months 2024 2023 2024 2023 Expected volatility — 81.8% 124.3-126.1% 81.8-84.0% Expected term (in years) — 0.5 3.5 0.5 Risk-free interest rate — 5.52% 4.09-4.61% 5.27-5.52% Dividend yield — — — — The following table summarizes option activity: Shares Weighted- Weighted- Aggregate Intrinsic Value (in thousands) Options outstanding — January 1, 2024 395,241 $ 6.34 Granted 371,465 $ 2.16 Exercised — $ — Forfeited (323,536) $ 3.21 Options outstanding — September 30, 2024 443,170 $ 5.11 4.5 $ — Vested and expected to vest — September 30, 2024 443,170 $ 5.11 4.5 $ — Exercisable — September 30, 2024 200,985 $ 7.59 3.8 $ — The weighted average grant date fair values of options granted for the nine months ended September 30, 2024 and 2023 was $1.67 and $0.58 per share, respectively. Restricted Stock Units The following table summarizes RSU activity: Number of Weighted Average Outstanding — January 1, 2024 58,929 $ 9.51 Granted 1,757,250 $ 1.72 Vested and released (741,184) $ 1.88 Forfeited — $ — Outstanding — September 30, 2024 1,074,995 $ 2.04 Vested and unreleased — September 30, 2024 199,219 $ 1.90 The estimated fair value of RSUs was based on the market value of the Company’s common shares on the date of grant. RSUs typically vest over a period of 12 months to three years from the original date of grant. The total grant date fair value of RSUs vested for the nine months ended September 30, 2024 and 2023 was approximately $1.8 million and $0.6 million, respectively. The fair value of RSUs vested for the nine months ended September 30, 2024 and 2023 was approximately $1.3 million and $0.2 million, respectively. Restricted Stock Awards The Company grants RSAs to employees and consultants in lieu of cash payment for services performed. The estimated fair value of the RSA is based on the market value of the Company’s common shares on the date of grant. For the nine months ended September 30, 2024, the Company granted 199,597 fully vested RSAs with a weighted average per share price of $1.28 and a fair value of $0.3 million. For the nine months ended September 30, 2023, the Company granted 44,450 fully vested RSAs with a weighted average per share price of $1.44 and a fair value of $0.1 million. Share-Based Compensation Expense The Company recorded the following compensation expense related to its share-based compensation awards (in thousands): Three Months Nine Months 2024 2023 2024 2023 Sales and marketing $ — $ 35 $ — $ 86 General and administrative 511 721 2,369 1,874 Total share-based compensation expense $ 511 $ 756 $ 2,369 $ 1,960 Total unrecognized estimated compensation cost by type of award and the weighted-average remaining requisite service period over which such expense is expected to be recognized (in thousands, unless otherwise noted): September 30, 2024 Unrecognized Expense Remaining Weighted-Average Recognition Period (years) RSUs $ 1,368 1.1 Stock options $ 160 0.5

Net Income (Loss) per Share

Net Income (Loss) per Share	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Net Income (Loss) per Share	Net Income (Loss) per Share Basic net income (loss) per share is computed by dividing net income (loss) applicable to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted net income (loss) per share reflects the potential dilution of securities that could share in the earnings of an entity. The calculation of diluted net income (loss) per share gives effect to common share equivalents; however, potential common shares are excluded if their effect is anti-dilutive. Common share purchase warrants, preferred shares issued and outstanding, and options and RSUs outstanding are considered common share equivalents and are only included in the calculation of diluted earnings per common share when net income is reported and their effect is dilutive. A reconciliation of the numerators and denominators is as follows (in thousands, except share and per share amounts): Three Months Nine Months 2024 2023 2024 2023 Numerator: Net income (loss) available to common shareholders $ 104 $ (6,307) $ (2,249) $ (14,639) Denominator: Weighted average common shares outstanding for basic income (loss) per share 20,733,022 12,653,413 18,681,399 11,340,973 Net effect of dilutive common share equivalents 1,590,284 — — — Weighted average common shares outstanding for diluted net income (loss) per share 22,323,306 12,653,413 18,681,399 11,340,973 Net income (loss) per share: Basic $ 0.01 $ (0.50) $ (0.12) $ (1.29) Diluted $ 0.005 $ (0.50) $ (0.12) $ (1.29) Anti-dilutive common share equivalents excluded from the computation of diluted net income (loss) per share were as follows: Three Months Nine Months 2024 2023 2024 2023 Common share purchase warrants 5,100,780 6,042,354 5,100,780 6,042,354 Preferred shares issued and outstanding — 6,800,565 1,590,284 6,800,565 Options and RSUs outstanding 1,518,165 932,294 1,518,165 932,294

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Service Agreements On October 18, 2023, the Company entered into a Hosting Agreement with Joshi Petroleum, LLC (the “Joshi Hosting Agreement”) for rack space, network services, electrical connections, routine facility maintenance, and technical support of certain of the Company’s mining equipment. The Joshi Hosting Agreement has an initial term of three years with subsequent one year renewal periods until either party provides written notice to the other party of its desire to avoid and given renewal term at least 30 days in advance of the conclusion of the prior initial term or renewal period. As required by the Joshi Hosting Agreement, the Company paid a deposit of $0.3 million representing the last two months of estimated service fees. For the three months ended September 30, 2024 and 2023, the Company incurred costs under the Joshi Hosting Agreement of $0.4 million and nil, respectively. For the nine months ended September 30, 2024 and 2023, the Company incurred costs under the Joshi Hosting Agreement of $1.2 million and nil, respectively. On April 4, 2023, the Company entered into a Master Hosting Services Agreement with Rebel Mining Company, LLC (the “Rebel Hosting Agreement”) for rack space, network services, electrical connections, routine facility maintenance, and technical support of certain of the Company’s mining equipment. The Rebel Hosting Agreement has a term of three years with subsequent one year renewal periods. As required by the Rebel Hosting Agreement, the Company paid deposits of $2.6 million representing the last two months of estimated service fees. For the three months ended September 30, 2024 and 2023, the Company incurred costs under the Rebel Hosting Agreement of $0.7 million and $1.8 million, respectively. For both the nine months ended September 30, 2024 and 2023, the Company incurred costs under the Rebel Hosting Agreement of $3.0 million. On February 8, 2023, the Company entered into a Hosting Agreement with Lancium FS 25, LLC (the “Lancium Hosting Agreement”) for rack space, network services, electrical connections, routine facility maintenance, and technical support of certain of the Company’s mining equipment. The Lancium Hosting Agreement has a term of two years with subsequent one year renewal periods. As required by the Lancium Hosting Agreement, the Company paid a deposit of $0.2 million representing a partial payment towards the last two months of estimated service fees. For the three months ended September 30, 2024 and 2023, the Company incurred costs under the Lancium Hosting Agreement of $0.8 million and $0.7 million, respectively. For the nine months ended September 30, 2024 and 2023, the Company incurred costs under the Lancium Hosting Agreement of $2.5 million and $1.2 million, respectively. In the first quarter of 2024, Marathon Digital Holdings acquired GC Data Center Granbury Equity Holdings, LLC and assumed the GC Data Center master agreement, (“GC Data Center MA”). The GC Data Center MA has a term of five years beginning December 2022. The monthly service fee is payable based on the actual hash rate performance of the equipment per miner type per location as a percentage of the anticipated monthly hash rate per miner type. As required by the service agreement, the Company paid a deposit of $0.5 million representing the last two months of estimated service fees. For the three months ended September 30, 2024 and 2023, the Company incurred costs under the GC Data Center MA of $0.3 million and $1.1 million, respectively. For the nine months ended September 30, 2024 and 2023, the Company incurred costs under the GC Data Center MA of $2.7 million and $3.6 million, respectively. On August 28, 2024, the Company and GC Data Center Granbury, LLC (the “Host”) mutually entered into a termination agreement effective August 31, 2024, and the Host paid a termination fee to the Company of $3.0 million, included within other income (expense) in its consolidated statements of operations, to settle all matters pertaining to the GC Data Center MA including all services and deposit prepayment for estimated services fees. Hosting Sub-License On October 5, 2021, the Company entered into a Sub-License and Delegation Agreement (“Hosting Sub-Lease”) by and between Gryphon Digital Mining, Inc. (“Gryphon”) and the Company, which assigned to the Company certain Master Services Agreement, dated as of September 12, 2021 (the “Core Scientific MSA”), by and between Core Scientific, Inc. (“Core Scientific”), and Gryphon and Master Services Agreement Order #2 (“Order 2”). The agreement allowed for approximately 230 MW of carbon neutral digital mining hosting capacity to be managed by Core Scientific as hosting partner. On January 16, 2024, the Company reached a settlement agreement (the “Settlement Agreement”) with Core Scientific, which was approved by a United States Bankruptcy Judge on January 16, 2024 as part of Core Scientific’s emergence from bankruptcy, for $10.0 million of Core Scientific’s equity. The Settlement Agreement includes access to potential additional funds for interest as well as an additional equity pool if the value of Core Scientific’s equity decreases below plan value in the 18 months after the date of the Settlement Agreement commensurate with the other unsecured creditors. On January 23, 2024, the Company received 2,050,982 shares of Core Scientific Inc. common stock trading under the Nasdaq symbol CORZ, which was included in investment in equity securities. Letters of credit During the ordinary course of business, the Company provides standby letters of credit to third parties as required for certain transactions initiated by the Company. As of September 30, 2024, the Company has no standby letters of credit outstanding. Litigation The Company is, from time to time, subject to claims and suits arising in the ordinary course of business. The Company cannot predict the final outcome of such proceedings. Where appropriate, the Company vigorously defends such claims, lawsuits and proceedings. Paid expenses related to the defense of such claims are recorded by the Company as incurred and paid. Based on current information, the Company does not believe there is a reasonable possibility that a material loss, if any, will result from any claims, lawsuits and proceedings to which the Company is subject to either individually, or in the aggregate. On April 7, 2023, the Company filed a suit against Gryphon in the U.S. District Court for the Southern District of New York. The Company alleges, among other things, that Gryphon materially breached its obligations to the Company, both its contractual duties under the Gryphon Master Services Agreement (the “Gryphon MSA”) dated August 19, 2021, and its fiduciary duties, including as a custodian of the Company’s assets. On August 22, 2023, Gryphon asserted counterclaims alleging breach of contract, breach of the implied covenant of good faith and fair dealing, negligence in managing its computer systems, and defamation. On November 7, 2023, Gryphon voluntarily dismissed its defamation claim. Gryphon has amended its complaint several times, and on December 14, 2023, added a second breach of contract claim predicated on another alleged breach of the Gryphon MSA. On February 2, 2024, the Company filed a partial motion to dismiss the second breach of contract claim, the negligence claim, and the breach of the implied covenant claim for failure to state a claim. On February 16, 2024, the court so-ordered a stipulation agreed to by the parties dismissing the second breach of contract claim, the negligence claim, and the breach of the implied covenant claim with prejudice. The so-ordered stipulation expressly preserves the Company’s ability to seek the recovery of its costs and attorney’s fees incurred in connection with the dismissed claims. The Company disputes the allegations against it and intends to vigorously defend itself and to vigorously pursue its claims against Gryphon. At this preliminary stage, the Company believes that Gryphon’s claims lack merit; however, because this litigation is still at this early stage, the Company cannot reasonably estimate the likelihood of an unfavorable outcome or the magnitude of such an outcome, if any. On March 19, 2024, the Company filed a separate lawsuit against Gryphon in the U.S. District Court for the Southern District of New York. The Company alleged that Gryphon converted certain digital assets of Sphere’s after the termination of the Gryphon MSA. After the Company filed the lawsuit, Gryphon returned proceeds stemming from the sale of Bitcoin. The Company subsequently dismissed the suit without prejudice. In March 2024, the Company received $1.5 million in proceeds from the sale of Bitcoin, which are included in the statements of cash flows within investing activities.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
Segment Reporting	Segment Information In the prior year, the Company had two operating segments, (1) Bitcoin Mining and (2) Service and Product. The segment disclosures present the measure(s) used by the chief operating decision maker to decide how to allocate resources and for purposes of assessing such segments’ performance. On December 28, 2023, the Company sold its Service and Product segment. As of January 1, 2024, the Company has one operating segment and one reporting segment. The Bitcoin Mining segment generates revenue through its Bitcoin mining activities. The Company generates its Bitcoin mining revenue from two mining pool operators. The Company’s revenue from Bitcoin mining is generated in the United States. The Service and Product segment generated revenue from customer contracts for service and extended service contract and the sale of products related to the Company’s data storage product line. The Company’s revenue from service and product was generated in the United States. Summary information by segment (in thousands): Three months ended September 30, 2023 Bitcoin Mining Service and Product Unallocated Total Consolidated Revenue $ 5,102 $ 622 $ — $ 5,724 Segment gross profit $ 810 $ 401 $ — $ 1,211 Segment loss from operations $ (1,569) $ (124) $ (4,711) $ (6,404) Interest expense $ — $ — $ 10 $ 10 Depreciation and amortization $ 1,999 $ 3 $ 26 $ 2,028 Nine months ended September 30, 2023 Bitcoin Mining Service and Product Unallocated Total Consolidated Revenue $ 12,592 $ 1,624 $ — $ 14,216 Segment gross profit $ 2,261 $ 896 $ — $ 3,157 Segment loss from operations $ (2,281) $ (866) $ (11,693) $ (14,840) Capital expenditures $ 1,561 $ — $ — $ 1,561 Interest expense $ — $ — $ 1,183 $ 1,183 Depreciation and amortization $ 4,330 $ 20 $ 78 $ 4,428 Service and product had the following customers that represented more than 10% of segment revenue. Three Months Nine Months 2024 2023 2024 2023 Customer A — 19.1 % — 22.2 % Customer B — 12.0 % — 13.5 % Customer C — 13.3 % — 11.8 % Customer D — 17.3 % — —

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Subsequent to September 30, 2024, the Company issued 297,713 common shares for the conversion of 2,084 Series H Preferred Shares.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation
Use of Estimates	Use of Estimates
Foreign Currency Translation	Foreign Currency Translation
Cash Equivalents	Cash and Cash Equivalents Highly liquid investments with insignificant interest rate risk and original maturities of three months or less, when purchased, are classified as cash equivalents. Cash equivalents are composed of money market funds. The Company maintains cash and cash equivalent balances with financial institutions that exceed federally insured limits. The Company has not experienced any losses related to these balances and believes credit risk to be minimal.
Investment in equity securities	Investment in Equity Securities
Digital Assets	Digital Assets Digital assets are included in current assets in the consolidated balance sheets as the Company has the ability to sell its Bitcoin in a highly liquid marketplace and the sale of Bitcoin is used to fund operating expenses to support operations. Bitcoin is expected to be realized in cash or sold or consumed during the Company’s normal operating cycle. Bitcoin held are accounted for as intangible assets with indefinite useful lives. The proceeds from the sale of Bitcoin are included within operating or investing activities in the consolidated statements of cash flows depending on the length of time the Bitcoin is held. The Company adopted ASU 2023-08 effective January 1, 2024, which requires Bitcoin to be valued at fair value at the end of each reporting period with changes in fair value recorded in operating expenses in the consolidated statements of operations. The fair value of Bitcoin is measured using the period-end closing price from the Company’s principal market. When Bitcoin is sold, the gains and losses from such transactions are measured as the difference between the cash proceeds and the carrying basis of the Bitcoin as determined on a first in-first out (“FIFO”) basis and are recorded within the same line item, Change in Fair Value of Bitcoin, in the consolidated statements of operations. Prior to the adoption of ASU 2023-08, t he Company accounted for its digital assets, Bitcoin, as indefinite-lived intangible assets. The digital assets were recorded at cost less impairment. An impairment analysis was performed daily to determine if the fair value of Bitcoin was lower than the carrying value for Bitcoin until the Bitcoin was disposed of or until the end of the reporting period, whichever came first. The fair value of digital assets was determined on a nonrecurring basis based on the lowest intraday quoted price as reported in the Company’s principal market. If t he carrying value of the digital asset exceeded the fair value, an impairment loss had occurred with respect to those digital assets in the amount equal to the difference between their carrying values and the fair value determined. Impairment losses were recognized in operating expenses in the consolidated statements of operations in the period in which the impairment is identified. The impaired digital assets were written down to their fair value at the time of impairment and this new cost basis would not be adjusted upward for any subsequent increase in fair value. Gains are not recorded until realized upon sale or disposition. Digital assets awarded to the Company through its mining activities were included within operating activities on the consolidated statements of cash flows. The disposal of digital assets were included within operating activities in the consolidated statements of cash flows and any realized gains or losses from such sales are included in operating costs and expenses in the consolidated statements of operations. The Company accounted for its gains or losses in accordance with the FIFO method of accounting.
Property and Equipment	Property and Equipment Property and equipment primarily consists of mining equipment and is stated at cost, including purchase price and all shipping and custom fees, and depreciated using the straight-line method over the estimated useful lives of the assets, generally five years. The Company reviews the carrying amounts of property and equipment when events or changes in circumstances indicate the assets may not be recoverable. If any such indication exists, the fair value of the asset is estimated in order to determine the extent of the impairment loss, if any.
Intangible Assets	Intangible Assets For intangible assets purchased in a business combination, the estimated fair values of the assets received are used to establish their recorded values. For intangible assets acquired in a non-monetary exchange, the estimated fair values of the assets transferred (or the estimated fair values of the assets received, if more clearly evident) are used to establish their recorded values. Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value.
Impairment of Intangible Assets	Impairment of Intangible Assets The Company performs regular reviews of intangible assets to determine if any event has occurred that may indicate that intangible assets with finite useful lives and other long-lived assets are potentially impaired. Triggering events for impairment reviews may be indicators such as adverse industry or economic trends, restructuring actions, lower projections of profitability, or a sustained decline in our market capitalization. Intangible assets are quantitatively assessed for impairment, if necessary, by comparing their estimated fair values to their carrying values. If the carrying value exceeds the fair value, the difference is recorded as an impairment.
Warrant Liabilities	Warrant Liabilities Warrant liabilities are presented at fair value on the consolidated balance sheets. The warrant liabilities are subject to remeasurement at each balance sheet date and any change in fair value is recognized in other income, net, in the consolidated statements of operations.
Revenue Recognition	Revenue Recognition The Company accounts for revenue pursuant to ASU 2014-09, Revenue from Contracts with Customers and all the related amendments (“Topic 606”). Under Topic 606, an entity is required to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, and contract consideration will be recognized on a “sell-in basis” or when control of the purchased goods or services transfer to the distributor. The Company is engaged with Bitcoin mining pool operators, its customers, to provide a service to perform hash calculations for the mining pool operator, which is the Company’s only performance obligation. Providing hash calculation services is an output of the Company’s ordinary activities. The Company currently has service agreements with Foundry Digital LLC and Luxor Technology Corporation, each a cryptocurrency mining pool operator, to provide a service to perform hash calculations. In exchange for providing the service, the Company is entitled to Full Pay Per Share (“FPPS”), which is a fractional share of the fixed Bitcoin award the mining pool operator receives, plus a fractional share of the transaction fees attached to that blockchain less net digital asset fees due to the mining pool operator over the measurement period, as applicable. The pay-outs received are based on the expected value from the block reward plus the transaction fee reward, regardless of whether the mining pool operator successfully records a block to the blockchain. The Company’s fractional share is based on a contractual formula, which primarily calculates the hash rate provided to the mining pool as a percentage of total network hash rate and other inputs. The contracts, which are less than 24 hours and continuously renew throughout the day, are terminable at any time by either party without compensation and the Company’s enforceable right to compensation only begins when the Company starts providing the service to the mining pool operator, which begins daily at midnight Universal Time Coordinated (“UTC”). The terms, conditions, and compensation are at the current market rates, and accordingly the renewal option is not a material right. The contract arises at the point that the Company provides hash calculation services to the mining pool operator, which is the beginning of the contract day at midnight UTC time (contract inception), as customer consumption is in tandem with daily earnings of delivery of the service. According to the customer contract, daily earnings are calculated from midnight-to-23:59:59 UTC time, and the payout is made one hour later at 1:00 AM UTC time. The Company satisfies its performance obligation over time with daily settlement in Bitcoin. The Company’s performance is completed as it transfers the hash rate computations over the continuously renewed contract periods, which are less than 24 hours. The Company has full control of the mining equipment utilized in the mining pool and if the Company determines it will increase or decrease the processing power of its machines and/or fleet (i.e., for repairs or when power costs are excessive) the service provided to the customer will be adjusted. The transaction consideration the Company receives is noncash consideration in the form of Bitcoin, which the Company measures at fair value at contract inception, midnight UTC time. The noncash consideration is variable, since the amount of block reward earned depends on the amount of hash calculation services, the amount of transaction fees awarded and operator fees over the same period. The Company does not constrain this variable consideration because it is probable that a significant reversal in the amount of revenue recognized from the contract will not occur when the uncertainty is subsequently resolved and recognizes the noncash consideration on the same day that control is transferred, which is the same day as contract inception. The fair value used to calculate the noncash consideration is based on the Bitcoin spot price in our principal market at the beginning of the day (midnight UTC time) at contract inception. Expenses associated with running the Bitcoin mining operations, such as hosting, operating supplies, utilities, and monitoring services are recorded as cost of revenues.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) and its components encompass all changes in equity other than those arising from transactions with shareholders, including net income (loss) and foreign currency translation adjustments, and is disclosed in a separate condensed consolidated statement of comprehensive income (loss).
Share-based Compensation	Share-based Compensation The Company accounts for share-based awards, and similar equity instruments, granted to employees, non-employee directors, and consultants in accordance with the authoritative guidance for share-based compensation. Share-based compensation award types may include stock options and restricted stock units (“RSUs”) and restricted stock awards (“RSAs”). Share-based compensation expense is recognized on a straight-lined basis over the requisite service period (usually the vesting period) except for options with graded vesting which is recognized pursuant to an accelerated method. Forfeitures are recognized as a reduction in share-based compensation expense as they occur.
Segment Reporting	Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding the method to allocate resources and assess performance. Through the period ended December 28, 2023, the Company had two operating segments. On December 28, 2023, the Company sold its service and product segment. As of January 1, 2024, the Company has one operating segment and one reporting segment.
Recently Issued and Adopted Accounting Pronouncements and Accounting Pronouncements Pending Adoption	Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified effective date. If not discussed, the Company believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires more detailed income tax disclosures. The guidance requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as expanded information on income taxes paid by jurisdiction. The disclosure requirements will be applied on a prospective basis, with the option to apply them retrospectively. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the disclosure requirements related to the new standard. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires public entities with a single reportable segment to provide all the disclosures required by this standard and all existing segment disclosures in Topic 280 on an interim and annual basis, including new requirements to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within the reported measure(s) of a segment's profit or loss, the amount and composition of any other segment items, the title and position of the CODM, and how the CODM uses the reported measure(s) of a segment's profit or loss to assess performance and decide how to allocate resources. The guidance is effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024, applied retrospectively with early adoption permitted. The Company is evaluating the impact of adoption of this standard on its consolidated financial statements and disclosures. Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-08, Intangibles - Goodwill - and Other - Crypto Assets (Subtopic 350-60) : Accounting For and Disclosure of Crypto Assets (“ASU 2023-08”) , which requires that an entity measure cryptocurrency at fair value in the statement of financial position each reporting period and recognize changes from remeasurement in net income. The amendments also require that an entity provide enhanced disclosures for both annual and interim reporting periods to provide investors with relevant information to analyze and assess the exposure and risk of significant individual crypto asset holdings. In addition, fair value measurement aligns the accounting required for holders of cryptocurrency with the accounting for entities that are subject to certain industry-specific guidance and eliminates the requirement to test those assets for impairment, thereby reducing the associated cost and complexity of applying the current guidance. The Company’s digital assets are within the scope of the new guidance and the transition requires a cumulative-effect adjustment as of the beginning of the current fiscal year for any difference between the carrying amount of the Company’s digital assets and fair value. Effective January 1, 2024, the Company early adopted ASU 2023-08 and recorded a $20,000 decrease to the opening balance of accumulated deficit and an increase to digital assets.

Fair Value Measures and Disclos

Fair Value Measures and Disclosures (Tables)	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following tables provide a summary of the assets and liabilities that are measured at fair value on a recurring basis (in thousands): September 30, 2024 Fair Value Level 1 Level 2 Level 3 Assets: Investment in equity securities $ 6,950 $ 6,950 $ — $ — Bitcoin 79 79 — — Total $ 7,029 $ 7,029 $ — $ — Liabilities: Warrant liabilities $ 32 $ — $ — $ 32 December 31, 2023 Fair Value Level 1 Level 2 Level 3 Liabilities: Warrant liabilities $ 205 $ — $ — $ 205
Fair Value Measurement Inputs and Valuation Techniques	The fair value of the warrant liabilities was measured using a Black Scholes valuation model with the following assumptions: September 30, December 31, Common share price $ 0.93 $ 3.47 Expected volatility 120.0 % 120.0 % Risk-free interest rate 3.8 % 4.2 %
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis	The following table presents the activities of warrant liabilities that are measured at fair value (in thousands): Warrant liability as of January 1, 2024 $ 205 Change in fair value LDA warrant (129) Warrant liability as of March 31, 2024 76 Change in fair value LDA warrant (32) Warrant liability as of June 30, 2024 44 Change in fair value LDA warrant (12) Warrant liability as of September 30, 2024 $ 32

Digital Assets (Tables)

Digital Assets (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Activities of Bitcoin	The following table presents the activities of Bitcoin (in thousands): Balance at January 1, 2024 $ 986 Cumulative effect upon adoption of ASU 2023-08 20 Revenue recognized from Bitcoin mined 13,967 Proceeds from sale of Bitcoin (15,051) Bitcoin issued for services (538) Change in fair value of Bitcoin 695 Balance at September 30, 2024 $ 79
Summary of Bitcoin Holdings	The following table presents Bitcoin holdings (in thousands except for number of Bitcoin): September 30, Number of Bitcoin held 1.3 Carrying basis of Bitcoin $ 82

Certain Balance Sheet Items (Ta

Certain Balance Sheet Items (Tables)	9 Months Ended
	Sep. 30, 2024
Balance Sheet Related Disclosures [Abstract]
Schedule of Other Current Assets	The following table summarizes other current assets (in thousands): September 30, December 31, Prepaid mining hosting services $ 1,129 $ 980 Prepaid insurance 964 575 Prepaid services 224 193 Bitcoin mining hosting deposit — 10,000 Other 205 190 Total other current assets $ 2,522 $ 11,938
Schedule of Property and Equipment	The following table summarizes property and equipment, net (in thousands): September 30, December 31, Mining equipment $ 32,155 $ 30,122 Construction in progress 500 — Total 32,655 30,122 Accumulated depreciation (9,264) (5,956) Property and equipment, net $ 23,391 $ 24,166
Schedule of Other Assets, Noncurrent	The following table summarizes other non-current assets (in thousands): September 30, December 31, Prepaid mining hosting services $ 2,892 $ 3,402 Other 4 4 Total other non-current assets $ 2,896 $ 3,406

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	The following table summarizes intangible assets, net (in thousands): September 30, December 31, Supplier agreements $ 37,525 $ 37,525 Capitalized development costs 103 103 37,628 37,628 Accumulated amortization: Supplier agreements (34,058) (32,944) Capitalized development costs (103) (103) (34,161) (33,047) Total finite-lived intangible assets, net $ 3,467 $ 4,581

Share Capital (Tables)

Share Capital (Tables)	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Schedule of Warrants	At September 30, 2024, the Company had the following outstanding warrants to purchase common shares: Date issued Contractual life (years) Exercise price Number outstanding Expiration July 2021 3 $28.00 285,716 December 22, 2024 September 2021 5 $66.50 1,614,299 September 8, 2026 October 2021 3 $42.00 121,429 October 1, 2024 February 2022 5 $28.00 14,286 February 7, 2027 February 2022 5 $35.00 14,286 February 7, 2027 February 2022 5 $42.00 14,286 February 7, 2027 April 2023 3 $1.34 73,556 April 17, 2026 August 2023 3 $2.75 800,000 August 11, 2026 August 2023 3 $2.75 2,162,922 August 23, 2026 5,100,780

Equity Incentive Plan (Tables)

Equity Incentive Plan (Tables)	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The assumptions used in the Black-Scholes model were as follows: Three Months Nine Months 2024 2023 2024 2023 Expected volatility — 81.8% 124.3-126.1% 81.8-84.0% Expected term (in years) — 0.5 3.5 0.5 Risk-free interest rate — 5.52% 4.09-4.61% 5.27-5.52% Dividend yield — — — —
Share-based Payment Arrangement, Option, Activity	The following table summarizes option activity: Shares Weighted- Weighted- Aggregate Intrinsic Value (in thousands) Options outstanding — January 1, 2024 395,241 $ 6.34 Granted 371,465 $ 2.16 Exercised — $ — Forfeited (323,536) $ 3.21 Options outstanding — September 30, 2024 443,170 $ 5.11 4.5 $ — Vested and expected to vest — September 30, 2024 443,170 $ 5.11 4.5 $ — Exercisable — September 30, 2024 200,985 $ 7.59 3.8 $ —
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity	The following table summarizes RSU activity: Number of Weighted Average Outstanding — January 1, 2024 58,929 $ 9.51 Granted 1,757,250 $ 1.72 Vested and released (741,184) $ 1.88 Forfeited — $ — Outstanding — September 30, 2024 1,074,995 $ 2.04 Vested and unreleased — September 30, 2024 199,219 $ 1.90
Share-based Payment Arrangement, Expensed and Capitalized, Amount	The Company recorded the following compensation expense related to its share-based compensation awards (in thousands): Three Months Nine Months 2024 2023 2024 2023 Sales and marketing $ — $ 35 $ — $ 86 General and administrative 511 721 2,369 1,874 Total share-based compensation expense $ 511 $ 756 $ 2,369 $ 1,960
Share-based Payment Arrangement, Nonvested Award, Cost	Total unrecognized estimated compensation cost by type of award and the weighted-average remaining requisite service period over which such expense is expected to be recognized (in thousands, unless otherwise noted): September 30, 2024 Unrecognized Expense Remaining Weighted-Average Recognition Period (years) RSUs $ 1,368 1.1 Stock options $ 160 0.5

Net Income (Loss) per Share (Ta

Net Income (Loss) per Share (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	A reconciliation of the numerators and denominators is as follows (in thousands, except share and per share amounts): Three Months Nine Months 2024 2023 2024 2023 Numerator: Net income (loss) available to common shareholders $ 104 $ (6,307) $ (2,249) $ (14,639) Denominator: Weighted average common shares outstanding for basic income (loss) per share 20,733,022 12,653,413 18,681,399 11,340,973 Net effect of dilutive common share equivalents 1,590,284 — — — Weighted average common shares outstanding for diluted net income (loss) per share 22,323,306 12,653,413 18,681,399 11,340,973 Net income (loss) per share: Basic $ 0.01 $ (0.50) $ (0.12) $ (1.29) Diluted $ 0.005 $ (0.50) $ (0.12) $ (1.29)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	Anti-dilutive common share equivalents excluded from the computation of diluted net income (loss) per share were as follows: Three Months Nine Months 2024 2023 2024 2023 Common share purchase warrants 5,100,780 6,042,354 5,100,780 6,042,354 Preferred shares issued and outstanding — 6,800,565 1,590,284 6,800,565 Options and RSUs outstanding 1,518,165 932,294 1,518,165 932,294

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Summary information by segment (in thousands): Three months ended September 30, 2023 Bitcoin Mining Service and Product Unallocated Total Consolidated Revenue $ 5,102 $ 622 $ — $ 5,724 Segment gross profit $ 810 $ 401 $ — $ 1,211 Segment loss from operations $ (1,569) $ (124) $ (4,711) $ (6,404) Interest expense $ — $ — $ 10 $ 10 Depreciation and amortization $ 1,999 $ 3 $ 26 $ 2,028 Nine months ended September 30, 2023 Bitcoin Mining Service and Product Unallocated Total Consolidated Revenue $ 12,592 $ 1,624 $ — $ 14,216 Segment gross profit $ 2,261 $ 896 $ — $ 3,157 Segment loss from operations $ (2,281) $ (866) $ (11,693) $ (14,840) Capital expenditures $ 1,561 $ — $ — $ 1,561 Interest expense $ — $ — $ 1,183 $ 1,183 Depreciation and amortization $ 4,330 $ 20 $ 78 $ 4,428
Schedule of Revenue by Major Customers by Reporting Segments	Service and product had the following customers that represented more than 10% of segment revenue. Three Months Nine Months 2024 2023 2024 2023 Customer A — 19.1 % — 22.2 % Customer B — 12.0 % — 13.5 % Customer C — 13.3 % — 11.8 % Customer D — 17.3 % — —

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - PPE (Details)	Sep. 30, 2024
Mining Equipment
Property, Plant and Equipment [Line Items]
Useful lives of assets, mining equipment (in years)	5 years

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Intangible Assets (Details)	Sep. 30, 2024
Supplier agreements
Finite-Lived Intangible Assets [Line Items]
Useful life, finite-lived intangible assets	5 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Segments (Details)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024 segment	Sep. 30, 2023	Sep. 30, 2023 segment
Accounting Policies [Abstract]
Number of operating Segments	1	1	2	2
Number of Reportable Segments	1

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Recently Issued and Adopted Accounting Pronouncements (Details) - USD ($)	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Jan. 01, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Shareholders' equity	$ (35,848,000)				$ (26,523,000)
Retained Earnings [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Shareholders' equity	$ 449,600,000	$ 449,704,000	$ 451,828,000		447,371,000	$ 438,604,000	$ 432,297,000	$ 427,434,000	$ 419,732,000
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Shareholders' equity				$ 20,000	$ (20,000)				$ 3,821,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Unrealized loss on investment in equity securities	$ 400
Equity Securities, Realized Gain	$ 2,900	$ 3,400
Equity Securities, FV-NI, Unrealized Gain		$ 4,100

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Financial Instruments on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets:
Total	$ 7,029
Investment in equity securities
Assets:
Total	6,950
Bitcoin
Assets:
Total	79
Warrant
Liabilities:
Warrant liabilities	32	$ 205
Fair Value, Inputs, Level 1
Assets:
Total	7,029
Fair Value, Inputs, Level 1 | Investment in equity securities
Assets:
Total	6,950
Fair Value, Inputs, Level 1 | Bitcoin
Assets:
Total	79
Fair Value, Inputs, Level 1 | Warrant
Liabilities:
Warrant liabilities	0	0
Fair Value, Inputs, Level 2
Assets:
Total	0
Fair Value, Inputs, Level 2 | Investment in equity securities
Assets:
Total	0
Fair Value, Inputs, Level 2 | Bitcoin
Assets:
Total	0
Fair Value, Inputs, Level 2 | Warrant
Liabilities:
Warrant liabilities	0	0
Fair Value, Inputs, Level 3
Assets:
Total	0
Fair Value, Inputs, Level 3 | Investment in equity securities
Assets:
Total	0
Fair Value, Inputs, Level 3 | Bitcoin
Assets:
Total	0
Fair Value, Inputs, Level 3 | Warrant
Liabilities:
Warrant liabilities	$ 32	$ 205

Fair Value Measurements Valuati

Fair Value Measurements Valuation inputs (Details)	Sep. 30, 2024 $ / shares	Dec. 31, 2023 $ / shares
Measurement Input, Share Price [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Share price	$ 0.93	$ 3.47
Measurement Input, Option Volatility [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants measurement input	1.200	1.200
Measurement Input, Risk Free Interest Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants measurement input	0.038	0.042

Fair Value Measurements - Fai_2

Fair Value Measurements - Fair Value of Warrant Liability (Details) - Warrant - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Warrant liability beginning balance	$ 44	$ 76	$ 205
Change in fair value	(12)	(32)	(129)
Warrant liability ending balance	$ 32	$ 44	$ 76

Digital Assets - Activities of

Digital Assets - Activities of Digital Asstes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Indefinite-lived Intangible Assets [Roll Forward]
Digital Assets Beginning			$ 986
Revenue recognized from Bitcoin mined	$ 2,355	$ 5,724	13,967	$ 14,216
Proceeds from sale of Bitcoin			(15,051)
Bitcoin issued for services			(538)
Change in fair value of Bitcoin	(8)	0	695	0
Digital Assets Ending	79		79
Bitcoin
Indefinite-lived Intangible Assets [Roll Forward]
Indefinite-Lived Intangible Assets (Excluding Goodwill)	82		82
Revenue recognized from Bitcoin mined	$ 2,355	$ 5,102	$ 13,967	$ 12,592
Cumulative Effect, Period of Adoption, Adjustment
Indefinite-lived Intangible Assets [Roll Forward]
Indefinite-Lived Intangible Assets (Excluding Goodwill)					$ 20

Digital Assets - Bitcoin (Detai

Digital Assets - Bitcoin (Details) $ in Thousands	Sep. 30, 2024 USD ($) bitcoin
Indefinite-lived Intangible Assets [Line Items]
Number of Bitcoin held | bitcoin	1.3
Bitcoin
Indefinite-lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $	$ 82

Digital Assets - Narrative (Det

Digital Assets - Narrative (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Realized Gain On Exchange Of Bitcoin	$ 2,000	$ 630,000
Other cryptocurrency	0	0	0

Notes Receivable - Rainmaker No

Notes Receivable - Rainmaker Note Receivable (Details) - USD ($) $ in Thousands		9 Months Ended
	Jul. 14, 2024	Sep. 30, 2024	Sep. 14, 2020
Receivables [Abstract]
Promissory note receivable	$ 4,400		$ 3,100
Stated interest rate			10%
Note receivable fully reserved		All amounts related to the Rainmaker Note have been fully reserved in prior periods
Subsequent Event [Line Items]
Promissory note receivable	$ 4,400		$ 3,100
Note receivable due date	Jan. 14, 2025

Certain Balance Sheet Items - O

Certain Balance Sheet Items - Other current assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid insurance	$ 964	$ 575
Prepaid digital hosting services	1,129	980
Prepaid services	224	193
Bitcoin mining hosting deposit	0	10,000
Other	205	190
Other Assets, Current	$ 2,522	$ 11,938

Certain Balance Sheet Items - P

Certain Balance Sheet Items - Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 32,655	$ 30,122
Accumulated depreciation	9,264	5,956
Property and equipment, net	23,391	24,166
Mining Equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	32,155	30,122
Construction in Progress
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 500	$ 0

Certain Balance Sheet Items - F

Certain Balance Sheet Items - FA (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($) miner
Property, Plant and Equipment [Line Items]
Depreciation	$ 1,400	$ 1,300	$ 4,300	$ 2,900
Number of miners sold			450	2,925
Proceeds from sale of miners			$ 0	$ 4,111
Impairment of property and equipment		0	900	0
Mining Equipment
Property, Plant and Equipment [Line Items]
Proceeds from sale of miners			200	4,100
Loss on disposition of miners	$ 0	$ 300	$ 700	$ 600

Certain Balance Sheet Items -_2

Certain Balance Sheet Items - Other long term assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid digital hosting services	$ 2,892	$ 3,402
Other	4	4
Other Assets	$ 2,896	$ 3,406

Intangible Assets - Intangible

Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$ 37,628	$ 37,628
Finite-lived intangible assets, accumulated amortization	(34,161)	(33,047)
Total finite-lived intangible assets, net	3,467	4,581
Supplier agreements
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	37,525	37,525
Finite-lived intangible assets, accumulated amortization	(34,058)	(32,944)
Capitalized development costs
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	103	103
Finite-lived intangible assets, accumulated amortization	$ (103)	$ (103)

Intangible Assets - Amortizatio

Intangible Assets - Amortization (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 400,000	$ 800,000	$ 1,100,000	$ 1,600,000
Amortization expense, remainder of fiscal year	400,000		400,000
Amortization expense 2025	1,500,000		1,500,000
Amortization expense 2026	1,500,000		1,500,000
Amortization expense 2027	$ 100,000		$ 100,000

Preferred Shares - H Shares (De

Preferred Shares - H Shares (Details) $ / shares in Units, $ in Thousands		1 Months Ended	9 Months Ended
	Aug. 23, 2023 USD ($) $ / shares shares	Aug. 31, 2023	Sep. 30, 2024 shares	Dec. 31, 2023 shares	Sep. 30, 2023 shares	Aug. 11, 2023 USD ($) $ / shares shares	Oct. 01, 2021 $ / shares
Class of Stock [Line Items]
Maximum percentage of stock permitted to sale		20%
Temporary Equity, Shares Issued			11,132	43,515
Proceeds from Issuance of Preferred Stock, Preference Stock, and Warrants | $	$ 3,000
Common shares, issued (in shares)			20,940,530	15,373,616
Series H Preferred Stock
Class of Stock [Line Items]
Preferred Stock, Convertible, Conversion Ratio			142.857
Common Stock, Convertible, Percentage of Outstanding Stock Maximum			9.99%
Preferred stock, redemption price (in USD per share) | $ / shares							$ 1,000
Preferred Stock, Convertible, Threshold of Shares Outstanding			0.100
Preferred stock, shares to be issued (in shares)						1,376
Warrants issued (in shares)						800,000
Class of Warrant or Right, Fair Value | $						$ 1,000
Preferred stock, exchangeable shares (in shares)						14,980
Temporary Equity, Shares Issued	13,764
Common shares, issued (in shares)			4,626,133		4,130,419
Preferred stock shares converted (in shares)			32,383		28,913
Common share purchase warrants
Class of Stock [Line Items]
Warrant, outstanding (in shares)	1,966,293		5,100,780
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	1
Warrants exercise price (in USD per share) | $ / shares	$ 2.75					$ 2.75
Warrant term	3 years					3 years
Finder's Fee | Series H Preferred Stock
Class of Stock [Line Items]
Temporary Equity, Shares Issued	1,377
Finder's Fee | Common share purchase warrants
Class of Stock [Line Items]
Class of Warrant or Right, Fair Value | $	$ 500
Warrant, outstanding (in shares)	196,629

Share Capital LDA Warrant (Deta

Share Capital LDA Warrant (Details) - LDA Warrant	Apr. 17, 2023 $ / shares shares
Class of Warrant or Right [Line Items]
Number of shares called by warrants (in shares) | shares	455,927
Warrants exercise price (in USD per share) | $ / shares	$ 1.342
Warrant term	3 years
Percent of maximum aggregate common shares issuable reserved for issuance	200%

Share Capital (Details)

Share Capital (Details) - $ / shares	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Equity [Abstract]
Common Stock, Shares Authorized, Unlimited [Fixed List]	Unlimited
Common shares, no par value	$ 0	$ 0

Share Capital - Warrants Outsta

Share Capital - Warrants Outstanding (Details) - $ / shares	9 Months Ended
	Sep. 30, 2024	Aug. 23, 2023	Aug. 11, 2023
July 2, 2021
Class of Warrant or Right [Line Items]
Contractual life (years)	3 years
Exercise price	$ 28
Number outstanding, warrants, (in shares)	285,716
Expiration	Dec. 22, 2024
September 8, 2021
Class of Warrant or Right [Line Items]
Contractual life (years)	5 years
Exercise price	$ 66.50
Number outstanding, warrants, (in shares)	1,614,299
Expiration	Sep. 08, 2026
October 1, 2021
Class of Warrant or Right [Line Items]
Contractual life (years)	3 years
Exercise price	$ 42
Number outstanding, warrants, (in shares)	121,429
Expiration	Oct. 01, 2024
February 7, 2022 A
Class of Warrant or Right [Line Items]
Contractual life (years)	5 years
Exercise price	$ 28
Number outstanding, warrants, (in shares)	14,286
Expiration	Feb. 07, 2027
February 7 2022 B
Class of Warrant or Right [Line Items]
Contractual life (years)	5 years
Exercise price	$ 35
Number outstanding, warrants, (in shares)	14,286
Expiration	Feb. 07, 2027
February 7 2022 C
Class of Warrant or Right [Line Items]
Contractual life (years)	5 years
Exercise price	$ 42
Number outstanding, warrants, (in shares)	14,286
Expiration	Feb. 07, 2027
April 17, 2023
Class of Warrant or Right [Line Items]
Contractual life (years)	3 years
Exercise price	$ 1.34
Number outstanding, warrants, (in shares)	73,556
Expiration	Apr. 17, 2026
August 11, 2023
Class of Warrant or Right [Line Items]
Contractual life (years)	3 years
Exercise price	$ 2.75
Number outstanding, warrants, (in shares)	800,000
Expiration	Aug. 11, 2026
August 23, 2023
Class of Warrant or Right [Line Items]
Contractual life (years)	3 years
Exercise price	$ 2.75
Number outstanding, warrants, (in shares)	2,162,922
Expiration	Aug. 23, 2026
Warrant
Class of Warrant or Right [Line Items]
Exercise price		$ 2.75	$ 2.75
Number outstanding, warrants, (in shares)	5,100,780	1,966,293

Equity Incentive Plan option mi

Equity Incentive Plan option misc (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Option awards maximum term	10 years
Dividends	$ 0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 1.67	$ 0.58

Equity Incentive Plan Option As

Equity Incentive Plan Option Assumptions (Details) - Stock Options	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate	0%	81.80%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term		6 months	3 years 6 months	6 months
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	0%	5.52%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0%	0%	0%	0%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate			124.30%	81.80%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate			4.09%	5.27%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate			126.10%	84%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate			4.61%	5.52%

Equity Incentive Plan - Summary

Equity Incentive Plan - Summary of Option Activity (Details)	9 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares
Stock Options
Beginning, options outstanding (in shares) | shares	395,241
Granted (in shares) | shares	371,465
Exercised (in shares) | shares	0
Forfeited (in shares) | shares	(323,536)
Ending, options outstanding (in shares) | shares	443,170
Vested and expected to vest (in shares) | shares	443,170
Exercisable (in shares) | shares	200,985
Weighted- Average Exercise Price
Beginning, outstanding (in USD per share) | $ / shares	$ 6.34
Granted (in USD per share) | $ / shares	2.16
Exercised (in USD per share) | $ / shares	0
Forfeited (in USD per share) | $ / shares	3.21
Ending, outstanding (in USD per share) | $ / shares	5.11
Vested and expected to vest (in USD per share) | $ / shares	5.11
Exercisable (in USD per share) | $ / shares	$ 7.59
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value
Outstanding (in years)	4 years 6 months
Vested and expected to vest (in years)	4 years 6 months
Exercisable (in years)	3 years 9 months 18 days
Aggregate intrinsic value, outstanding | $	$ 0
Aggregate intrinsic value, vested and expected to vest | $	0
Aggregate intrinsic value, exercisable | $	$ 0

Equity Incentive Plan - Summa_2

Equity Incentive Plan - Summary of Restricted Stock Activity (Details) - Restricted Stock Units (RSUs)	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Stock Options
Outstanding - beginning of period (in shares) | shares	58,929
Grants (in shares) | shares	1,757,250
RSUs Vested (in shares) | shares	741,184
Forfeited (in shares) | shares	0
Outstanding - end of period (in shares) | shares	1,074,995
Vested and unreleased — September 30, 2024 | shares	199,219
Weighted Average Grant Date Fair Value
Weighted average grant date fair value, outstanding - beginning of period (in USD per share) | $ / shares	$ 9.51
Weighted average grant date fair value, granted (in USD per share) | $ / shares	1.72
Weighted average grant date fair value, vested (in USD per share) | $ / shares	1.88
Weighted average grant date fair value, forfeited (in USD per share) | $ / shares	0
Weighted average grant date fair value, outstanding - end of period (in USD per share) | $ / shares	2.04
RSUs Vested and Unreleased in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 1.90

Equity Incentive Plan-RSU detai

Equity Incentive Plan-RSU details (Details) - Restricted Stock Units (RSUs) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Grant Date Fair Value	$ 1,800,000	$ 600,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 1,300,000	$ 200,000
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock Units and Stock Options Vesting Period	12 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock Units and Stock Options Vesting Period	3 years

Equity Incentive Plan - RSA (De

Equity Incentive Plan - RSA (Details) - Restricted Stock Awards - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants (in shares)	199,597	44,450
Weighted average grant date fair value, granted (in USD per share)	$ 1.28	$ 1.44
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 300,000	$ 100,000

Equity Incentive Plan - Share-b

Equity Incentive Plan - Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 511	$ 756	$ 2,369	$ 1,960
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	0	35	0	86
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 511	$ 721	$ 2,369	$ 1,874

Equity Incentive Plan - Unrecog

Equity Incentive Plan - Unrecognized Compensation Cost (Details)	9 Months Ended
	Sep. 30, 2024 USD ($)
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Expense	$ 1,368,000
Remaining Weighted-Average Recognition Period (years)	1 year 1 month 6 days
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Expense	$ 160,000
Remaining Weighted-Average Recognition Period (years)	6 months

Net Income (Loss) per Share (De

Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Net income (loss) available to common shareholders	$ 104	$ (6,307)	$ (2,249)	$ (14,639)
Weighted average common shares outstanding for basic income (loss) per share (in shares)	20,733,022	12,653,413	18,681,399	11,340,973
Net effect of dilutive common share equivalents (in shares)	1,590,284	0	0	0
Weighted average common shares outstanding for diluted net income (loss) per share (in shares)	22,323,306	12,653,413	18,681,399	11,340,973
Net income (loss) per share, basic (in USD per share)	$ 0.01	$ (0.50)	$ (0.12)	$ (1.29)
Net income (loss) per share, diluted (in USD per share)	$ 0.005	$ (0.50)	$ (0.12)	$ (1.29)

Net Income (Loss) per Share - N

Net Income (Loss) per Share - Net Loss Per Share AntiDilutive (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Common share purchase warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	5,100,780	6,042,354	5,100,780	6,042,354
Preferred shares issued and outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	0	6,800,565	1,590,284	6,800,565
Options and awards outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	1,518,165	932,294	1,518,165	932,294

Commitments and Contingencies -

Commitments and Contingencies - Services Agreement (Details) - USD ($) $ in Thousands				3 Months Ended		9 Months Ended
	Oct. 18, 2023	Apr. 04, 2023	Feb. 08, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Joshi Hosting
Other Commitments [Line Items]
Service Agreement, Term of Contract	3 years
Service Agreement, Renewal Period	1 year
Service Agreement, Renewal Term	30 days
Hosting Arrangement, Deposit Paid	$ 300
Hosting Arrangement, Payment of Service Fee Period	2 months
Hosting service expense				$ 400	$ 0	$ 1,200	$ 0
Rebel Mining Company
Other Commitments [Line Items]
Service Agreement, Term of Contract		3 years
Service Agreement, Renewal Period		1 year
Hosting Arrangement, Deposit Paid		$ 2,600
Hosting Arrangement, Payment of Service Fee Period		2 months
Hosting service expense				700	1,800	3,000	3,000
Lancium
Other Commitments [Line Items]
Service Agreement, Term of Contract			2 years
Service Agreement, Renewal Period			1 year
Hosting Arrangement, Deposit Paid			$ 200
Hosting Arrangement, Payment of Service Fee Period			2 months
Hosting service expense				800	700	$ 2,500	1,200
GC Data Center MA
Other Commitments [Line Items]
Service Agreement, Term of Contract						5 years
Hosting Arrangement, Deposit Paid						$ 500
Hosting Arrangement, Payment of Service Fee Period						2 months
Hosting service expense				$ 300	$ 1,100	$ 2,700	$ 3,600
Gain (Loss) on Contract Termination						$ 3,000

Commitments and Contingencies_2

Commitments and Contingencies - Digital Mining Hosting Sub-License (Details) - Core Scientific - USD ($) $ in Thousands	Jan. 23, 2024	Jan. 16, 2024
Other Commitments [Line Items]
Litigation Settlement, Amount Awarded from Other Party		$ 10,000
Litigation Settlement, Period For Equity Value Decrease		18 months
Litigation Settlement, Amount Awarded from Other Party, Shares	2,050,982

Commitments and Contingencies_3

Commitments and Contingencies - Letters of Credit (Details)	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Number of letters of credit outstanding	0

Commitments and Contingencies L

Commitments and Contingencies Litigation (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Recovery of Bitcoin	$ 1,500

Segment Reporting - Summary Inf

Segment Reporting - Summary Information by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Revenue	$ 2,355	$ 5,724	$ 13,967	$ 14,216
Gross Profit		1,211		3,157
Loss from Operations	(5,153)	(6,404)	(12,730)	(14,840)
Capital expenditures				1,561
Interest expense	0	10	0	1,183
Depreciation and amortization	$ 1,737	2,028	$ 5,374	4,428
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Revenue		0		0
Gross Profit		0		0
Loss from Operations		(4,711)		(11,693)
Capital expenditures				0
Interest expense		10		1,183
Depreciation and amortization		26		78
Bitcoin Mining | Operating Segments
Segment Reporting Information [Line Items]
Revenue		5,102		12,592
Gross Profit		810		2,261
Loss from Operations		(1,569)		(2,281)
Capital expenditures				1,561
Interest expense		0		0
Depreciation and amortization		1,999		4,330
Service and product [Member] | Operating Segments
Segment Reporting Information [Line Items]
Revenue		622		1,624
Gross Profit		401		896
Loss from Operations		(124)		(866)
Capital expenditures				0
Interest expense		0		0
Depreciation and amortization		$ 3		$ 20

Segment Reporting - Service and

Segment Reporting - Service and Product Segment (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2024 segment	Sep. 30, 2023	Sep. 30, 2023 segment
Segment Reporting Information [Line Items]
Number of operating Segments			1	1	2	2
Number of mining pool operators		2			2	2
Number of Reportable Segments			1
Revenue from Contract with Customer Benchmark | Customer A | Customer Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk, percentage	0%	19.10%	0%		22.20%
Revenue from Contract with Customer Benchmark | Customer B | Customer Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk, percentage	0%	12%	0%		13.50%
Revenue from Contract with Customer Benchmark | Customer C | Customer Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk, percentage	0%	13.30%	0%		11.80%
Revenue from Contract with Customer Benchmark | Customer D | Customer Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk, percentage	0%	17.30%	0%		0%

Subsequent Events (Details)

Subsequent Events (Details) - shares	Nov. 05, 2024	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Subsequent Event [Line Items]
Common shares, issued (in shares)		20,940,530	15,373,616
Series H Preferred Stock
Subsequent Event [Line Items]
Common shares, issued (in shares)		4,626,133		4,130,419
Preferred stock shares converted (in shares)		32,383		28,913
Subsequent Event | Series H Preferred Stock
Subsequent Event [Line Items]
Common shares, issued (in shares)	297,713
Preferred stock shares converted (in shares)	2,084