COVER
COVER - shares | 3 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-40046 | |
Entity Registrant Name | Core Scientific, Inc./tx | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 86-1243837 | |
Entity Address, Address Line One | 838 Walker Road | |
Entity Address, Address Line Two | Suite 21-2105 | |
Entity Address, City or Town | Dover | |
Entity Address, State or Province | DE | |
Entity Address, Postal Zip Code | 19904 | |
City Area Code | 512 | |
Local Phone Number | 402-5233 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Small Business | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding | 177,783,480 | |
Entity Central Index Key | 0001839341 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common stock, par value $0.00001 per share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common stock, par value $0.00001 per share | |
Trading Symbol | CORZ | |
Security Exchange Name | NASDAQ | |
Warrants, each whole warrant exercisable for one share of common stock at an exercise price of $6.81 per share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants, each whole warrant exercisable for one share of common stock at an exercise price of $6.81 per share | |
Trading Symbol | CORZW | |
Security Exchange Name | NASDAQ | |
Warrants, each whole warrant exercisable for one share of common stock at an exercise price of $0.01 per share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants, each whole warrant exercisable for one share of common stock at an exercise price of $0.01 per share | |
Trading Symbol | CORZZ | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 98,125 | $ 50,409 |
Restricted cash | 16,151 | 19,300 |
Accounts receivable | 1,107 | 1,001 |
Digital assets | 0 | 2,284 |
Prepaid expenses and other current assets | 27,937 | 24,022 |
Total Current Assets | 143,320 | 97,016 |
Property, plant and equipment, net | 575,969 | 585,431 |
Operating lease right-of-use assets | 77,766 | 7,844 |
Intangible assets, net | 2,136 | 2,247 |
Other noncurrent assets | 14,777 | 19,618 |
Total Assets | 813,968 | 712,156 |
Current Liabilities: | ||
Accounts payable | 16,165 | 154,751 |
Accrued expenses and other current liabilities | 68,221 | 179,636 |
Deferred revenue | 9,250 | 9,830 |
Operating lease liabilities, current portion | 2,619 | 77 |
Finance lease liabilities, current portion | 3,018 | 19,771 |
Notes payable, current portion | 23,333 | 124,358 |
Contingent value rights, current portion | 15,539 | 0 |
Total Current Liabilities | 138,145 | 488,423 |
Operating lease liabilities, net of current portion | 69,022 | 1,512 |
Finance lease liabilities, net of current portion | 1,170 | 35,745 |
Convertible and other notes payable, net of current portion | 556,573 | 684,082 |
Contingent value rights, net of current portion | 29,062 | 0 |
Warrant liabilities | 327,465 | 0 |
Other noncurrent liabilities | 11,040 | 0 |
Total liabilities not subject to compromise | 1,132,477 | 1,209,762 |
Liabilities subject to compromise | 0 | 99,335 |
Total Liabilities | 1,132,477 | 1,309,097 |
Commitments and contingencies (Note $9) | ||
Stockholders’ Deficit: | ||
Preferred stock; $0.00001 par value; 2,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock; $0.00001 par value; 10,000,000 shares authorized at March 31, 2024 and December 31, 2023; 182,237 and 386,883 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 2 | 36 |
Additional paid-in capital | 1,891,011 | 1,823,260 |
Accumulated deficit | (2,209,522) | (2,420,237) |
Total Stockholders’ Deficit | (318,509) | (596,941) |
Total Liabilities and Stockholders’ Deficit | $ 813,968 | $ 712,156 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 10,000,000,000 | 10,000,000,000 |
Common stock, shares issued (in shares) | 182,237,000 | 386,883,000 |
Common stock, shares outstanding (in shares) | 182,237,000 | 386,883,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue: | ||
Digital asset mining revenue | $ 149,959 | $ 98,026 |
Total revenue | 179,291 | 120,655 |
Cost of revenue | 101,645 | 88,874 |
Gross profit | 77,646 | 31,781 |
Gain from sales of digital assets | 543 | 1,064 |
Impairment of digital assets | 0 | (1,056) |
Change in fair value of energy derivatives | (2,218) | 0 |
Losses on disposal of property, plant and equipment | (3,820) | 0 |
Operating expenses: | ||
Research and development | 1,799 | 1,415 |
Sales and marketing | 982 | 1,008 |
General and administrative | 14,143 | 21,764 |
Total operating expenses | 16,924 | 24,187 |
Operating income | 55,227 | 7,602 |
Non-operating (income) expenses, net: | ||
Loss (gain) on debt extinguishment | 50 | (20,761) |
Interest expense, net | 14,087 | 157 |
Reorganization items, net | (111,439) | 31,559 |
Change in fair value of warrant and contingent value rights | (60,114) | 0 |
Other non-operating expense (income), net | 1,746 | (3,069) |
Total non-operating (income) expenses, net | (155,670) | 7,886 |
Income (loss) before income taxes | 210,897 | (284) |
Income tax expense | 206 | 104 |
Net income (loss) | $ 210,691 | $ (388) |
Net income (loss) per share (Note 12): | ||
Basic (in dollars per share) | $ 0.91 | $ 0 |
Diluted (in dollars per share) | $ 0.78 | $ 0 |
Weighted average shares outstanding: | ||
Basic (in shares) | 230,954 | 375,419 |
Diluted (in shares) | 282,531 | 375,419 |
Digital asset mining | ||
Revenue: | ||
Digital asset mining revenue | $ 149,959 | $ 98,026 |
Cost of revenue | 81,564 | 72,676 |
Hosting revenue | ||
Revenue: | ||
Cost of revenue | 20,081 | 16,198 |
Hosting revenue | Nonrelated Party | ||
Revenue: | ||
Revenue from customers and related parties | 29,332 | 18,909 |
Hosting revenue | Related Party | ||
Revenue: | ||
Revenue from customers and related parties | $ 0 | $ 3,720 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Deficit - USD ($) shares in Thousands, $ in Thousands | Total | Stock Issuance in Connection with Emergence | Stock Issuance for Equity Rights Offering | Issuance of new common stock for the Equity Rights Offering backstop commitment | Issuance of new common stock for Bitmain obligation | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common Stock Stock Issuance in Connection with Emergence | Common Stock Stock Issuance for Equity Rights Offering | Common Stock Issuance of new common stock for the Equity Rights Offering backstop commitment | Common Stock Issuance of new common stock for Bitmain obligation | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-In Capital | Additional Paid-In Capital Stock Issuance in Connection with Emergence | Additional Paid-In Capital Stock Issuance for Equity Rights Offering | Additional Paid-In Capital Issuance of new common stock for the Equity Rights Offering backstop commitment | Additional Paid-In Capital Issuance of new common stock for Bitmain obligation | Additional Paid-In Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance (in shares) at Dec. 31, 2022 | 375,225 | |||||||||||||||||||||
Beginning balance at Dec. 31, 2022 | $ (409,346) | $ 36 | $ 1,764,368 | $ (2,173,750) | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net income (loss) | (388) | (388) | ||||||||||||||||||||
Stock-based compensation | 12,273 | 12,273 | ||||||||||||||||||||
Restricted stock awards issued, net of tax withholding obligations (in shares) | 2,616 | |||||||||||||||||||||
Ending balance (in shares) at Mar. 31, 2023 | 377,841 | |||||||||||||||||||||
Ending balance at Mar. 31, 2023 | $ (397,461) | $ 36 | 1,776,641 | (2,174,138) | ||||||||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2023-08 [Member] | |||||||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 375,225 | |||||||||||||||||||||
Beginning balance at Dec. 31, 2022 | $ (409,346) | $ 36 | 1,764,368 | (2,173,750) | ||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2023 | 386,883 | 386,883 | 386,883 | |||||||||||||||||||
Ending balance at Dec. 31, 2023 | $ (596,941) | $ 24 | $ (596,917) | $ 36 | $ 36 | 1,823,260 | $ 1,823,260 | (2,420,237) | $ 24 | $ (2,420,213) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net income (loss) | 210,691 | 210,691 | ||||||||||||||||||||
Stock-based compensation | (1,060) | (1,060) | ||||||||||||||||||||
Cancellation of common stock in connection with emergence (in shares) | (386,883) | |||||||||||||||||||||
Cancellation of common stock in connection with emergence | 0 | $ (36) | 36 | |||||||||||||||||||
Issuance of new common stock in connection with emergence (in shares) | 152,497 | 15,649 | 2,111 | 10,735 | ||||||||||||||||||
Issuance of new common stock in connection with emergence | $ 296,496 | $ 55,000 | $ 5,475 | $ 27,839 | $ 2 | $ 296,494 | $ 55,000 | $ 5,475 | $ 27,839 | |||||||||||||
Conversion premium on the issuance of the New Secured Convertible Notes | 33,202 | 33,202 | ||||||||||||||||||||
Issuance of warrants | (345,856) | (345,856) | ||||||||||||||||||||
Exercise of stock options (in shares) | 0 | |||||||||||||||||||||
Exercise of stock options | 9 | 9 | ||||||||||||||||||||
Restricted stock awards issued, net of tax withholding obligations (in shares) | 1,285 | |||||||||||||||||||||
Restricted stock awards issued, net of tax withholding obligations | $ (3,388) | (3,388) | ||||||||||||||||||||
Restricted stock awards forfeited (in shares) | (40) | |||||||||||||||||||||
Ending balance (in shares) at Mar. 31, 2024 | 182,237 | 182,237 | ||||||||||||||||||||
Ending balance at Mar. 31, 2024 | $ (318,509) | $ 2 | $ 1,891,011 | $ (2,209,522) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from Operating Activities: | ||
Net income (loss) | $ 210,691 | $ (388) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 28,996 | 20,094 |
Amortization of operating lease right-of-use assets | 770 | 195 |
Stock-based compensation | (1,060) | 12,273 |
Digital asset mining revenue | (149,959) | (98,026) |
Loss (gain) on debt extinguishment | 50 | (20,761) |
Change in fair value of energy derivatives | (797) | 0 |
Change in fair value of warrant liabilities | (18,390) | 0 |
Change in fair value of contingent value rights | (41,724) | 0 |
Amortization of debt discount | 660 | 0 |
Losses on disposal of property, plant and equipment | 3,820 | 0 |
Impairment of digital assets | 0 | 1,056 |
Gain on sale of digital assets | (543) | (1,064) |
Non-cash reorganization items | (143,791) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (106) | 61 |
Accounts receivable from related parties | 0 | 21 |
Digital assets | 152,810 | 98,758 |
Deposits for equipment | 0 | 0 |
Prepaid expenses and other current assets | (5,989) | 1,152 |
Accounts payable | (9,735) | 16,408 |
Accrued expenses and other | (10,351) | (906) |
Deferred revenue | (580) | (8,629) |
Other noncurrent assets and liabilities, net | 7,402 | (302) |
Net cash provided by operating activities | 22,174 | 19,942 |
Cash flows from Investing Activities: | ||
Purchases of property, plant and equipment | (31,894) | (1,539) |
Other | (76) | (330) |
Net cash used in investing activities | (31,970) | (1,869) |
Cash flows from Financing Activities: | ||
Proceeds from issuance of common stock | 55,000 | 0 |
Proceeds from draw from exit facility | 20,000 | 0 |
Principal repayments of finance leases | (3,554) | 0 |
Principal payments on debt | (13,702) | (1,021) |
Restricted stock tax holding obligations | (3,390) | 0 |
Proceeds from exercise of stock options | 9 | 0 |
Net cash provided by provided by (used in) financing activities | 54,363 | (1,021) |
Net increase in cash, cash equivalents and restricted cash | 44,567 | 17,052 |
Cash, cash equivalents and restricted cash—beginning of period | 69,709 | 52,240 |
Cash, cash equivalents and restricted cash—end of period | 114,276 | 69,292 |
Supplemental disclosure of other cash flow information: | ||
Cash paid for interest | 2,811 | 317 |
Income tax refunds | (1) | (300) |
Cash paid for reorganization items | 53,835 | 0 |
Supplemental disclosure of noncash investing and financing activities: | ||
Change in accrued capital expenditures | (8,484) | 45,721 |
Decrease in equipment related to debt extinguishment | 0 | 17,849 |
Decrease in notes payable in exchange for equipment | 0 | (38,610) |
Reduction in plant, property, and equipment basis related to Bitmain purchase | (26,101) | 0 |
Reclass of other current and non-current assets to plant, property, and equipment | 8,890 | 0 |
Decrease in right-of-use assets due to lease termination | (6,560) | 0 |
Increase in right-of-use assets due to lease commencement | 70,690 | 0 |
Increase in lease liability due to lease commencement | 70,690 | 0 |
Extinguishment of convertible notes upon emergence | (559,902) | 0 |
Extinguishment of accounts payable, accrued expenses, finance lease liability, and notes payable upon emergence | (321,773) | 0 |
Cancellation of common stock in connection with emergence | (37) | 0 |
Issuance of warrants | 345,856 | 0 |
Cumulative effect of adoption of ASU 2023-08, Accounting for and Disclosure of Crypto Assets | 24 | 0 |
Issuance of new secured convertible notes | ||
Supplemental disclosure of noncash investing and financing activities: | ||
Issuance of debt | 260,000 | 0 |
Issuance of secured notes, net of discount | ||
Supplemental disclosure of noncash investing and financing activities: | ||
Issuance of debt | 149,520 | 0 |
Exit Credit Agreement | ||
Supplemental disclosure of noncash investing and financing activities: | ||
Issuance of debt | 41,200 | 0 |
Issuance of miner equipment lender facility loans | ||
Supplemental disclosure of noncash investing and financing activities: | ||
Issuance of debt | 52,947 | 0 |
Issuance of notes related to settlement | ||
Supplemental disclosure of noncash investing and financing activities: | ||
Issuance of debt | 9,092 | 0 |
Issuance of new common stock in connection with emergence | ||
Supplemental disclosure of noncash investing and financing activities: | ||
Issuance of new common stock | 296,494 | 0 |
Issuance of new common stock for Bitmain obligation | ||
Supplemental disclosure of noncash investing and financing activities: | ||
Issuance of new common stock | 27,839 | 0 |
Issuance of new common stock for the Equity Rights Offering backstop commitment | ||
Supplemental disclosure of noncash investing and financing activities: | ||
Issuance of new common stock | 5,475 | 0 |
Issuance of contingent value rights | ||
Supplemental disclosure of noncash investing and financing activities: | ||
Issuance of new common stock | $ 86,325 | $ 0 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Statement of Cash Flows [Abstract] | |
Paid in kind upfront fee | $ 1.2 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Core Scientific, Inc. (“Core Scientific” or the “Company”) is an operator of dedicated, purpose-built facilities for digital asset mining and a premier provider of digital infrastructure, software solutions and services to our third-party customers. The Company currently focuses primarily on digital asset mining. We employ our own large fleet of computers (“miners”) to earn digital assets for our own account and provide hosting services for large customers at our seven operational data centers in Georgia (2), Kentucky (1), North Carolina (1), North Dakota (1) and Texas (2). We derive the majority of our revenue from earning bitcoin for our own account (“self-mining”). We operate in two segments: “Mining,” consisting of digital asset mining for our own account, and “Hosting,” consisting of our digital infrastructure and third-party hosting business for digital asset mining and specialized Graphics Processing Unit (“GPU”) cloud compute customers. Our hosting business provides a full suite of services to our digital asset mining and GPU cloud compute customers. We provide deployment, monitoring, troubleshooting, optimization and maintenance of our customers’ digital asset mining equipment and provide necessary electrical power, repair and other infrastructure services necessary for our customers to operate, maintain and efficiently mine digital assets and offer specialized cloud services, as applicable. We believe our experience in digital asset mining can be applied favorably to the design, development and operation of large-scale data centers configured to optimize the performance of specialized computers for other specific, high-value applications such as cloud computing, machine learning and artificial intelligence. We intend to look for opportunities to expand our business into these areas using our knowledge, experience and existing infrastructure where favorable market opportunities exist. Chapter 11 Filing and Emergence from Bankruptcy On December 21, 2022, the Company and certain of its affiliates (collectively, the “Debtors”) filed voluntary petitions (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) seeking relief under Chapter 11 of the United States Code (the “Bankruptcy Code”). The Chapter 11 Cases were jointly administered under Case No. 22-90341. The Debtors continued to operate their business and manage their properties as “debtors-in-possession” (“DIP”) under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. For detailed discussion about the Chapter 11 Cases, refer to Note 3 — Chapter 11 Filing and Emergence from Bankruptcy. On January 15, 2024, the Debtors filed the Fourth Amended Joint Chapter 11 Plan of Reorganization of Core Scientific, Inc. and its Debtor Affiliates (with Technical Modifications) (the “Plan of Reorganization”) with the Bankruptcy Court. On January 16, 2024, the Bankruptcy Court entered an order (the “Confirmation Order”) among other things, confirming the Plan of Reorganization. On January 23, 2024 (the “Effective Date”), the conditions to the effectiveness of the Plan of Reorganization were satisfied or waived and the Company emerged from bankruptcy. The Company was not required to apply fresh start accounting based on the provisions of Accounting Standards Codification (“ASC”) 852, Reorganizations , since the entity’s reorganization value immediately before the date of confirmation is more than the total of all its post-petition liabilities and allowed claims. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Refer to the significant accounting policies described in Note 2 — Summary of Significant Accounting Policies to the consolidated financial statements and accompanying notes in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2023. Basis of Presentation Our consolidated balance sheet as of December 31, 2023, which was derived from our audited consolidated financial statements, and our unaudited interim consolidated financial statements provided herein have been prepared in accordance with the instructions for Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). However, in our opinion, the disclosures made therein are adequate to make the information presented not misleading. We believe the unaudited interim financial statements herein furnished reflect all adjustments which are, in the opinion of management, necessary to present a fair statement of the results for the interim periods presented. All of these adjustments are of a normal recurring nature. The interim consolidated results of operations and cash flows are not necessarily indicative of the consolidated results of operations and cash flows that might be expected for the entire year. These consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. Debtor-in Possession On the Effective Date, the Company emerged from bankruptcy and was no longer considered debtors-in-possession under the Bankruptcy Code. For detailed discussion about the Chapter 11 Cases and our emergence from bankruptcy, refer to Note 3 — Chapter 11 Filing and Emergence from Bankruptcy. Liquidity and Financial Condition For the three months ended March 31, 2024, the Company generated net income of $210.7 million. The Company had unrestricted cash and cash equivalents of $98.1 million as of March 31, 2024, compared to $50.4 million as of December 31, 2023. The Company has historically generated cash primarily from the issuance of common stock and debt, through sales of digital assets received as digital asset mining revenue and through revenue from contracts with customers. As of March 31, 2024, the Company had net working capital of $5.2 million and a total stockholders’ deficit of $318.5 million. The Plan of Reorganization at the Effective Date (i) eliminated substantial debt and debt service, (ii) established new debt in the form of a secured credit agreement, publicly traded notes and convertible notes, and debt to equipment lenders secured by mining machines, and (iii) new publicly traded equity and warrants. The settlement of accrued and payable claims through new debt and equity issuance and the extension of debt service to future periods on the Effective Date substantially eliminated the reported working capital deficit at December 31, 2023. When combined with the additional liquidity of the available delayed-draw term loan and the expected cash flows from operations, management has concluded that as of March 31, 2024, the Company’s capital, liquidity and cash flow from operations is sufficient to fund its operations and debt service obligations for at least the next 12 months from the date these consolidated financial statements were issued. Digital Assets Currently the Company is required by its existing debt agreements to sell bitcoin it earns within ten days of receipt. Sales of digital assets awarded to the Company through its self-mining activities are classified as cash flows from operating activities. In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-08, Intangibles-Goodwill and Other-Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”). ASU 2023-08 is intended to improve the accounting for certain crypto assets by requiring an entity to measure those crypto assets at fair value each reporting period with changes in fair value recognized in net income. The amendments also improve the information provided to investors about an entity’s crypto asset holdings by requiring disclosure about significant holdings, contractual sale restrictions, and changes during the reporting period. ASU 2023-08 is effective for annual and interim reporting periods beginning after December 15, 2024, with early adoption permitted. The Company’s digital assets are within the scope of ASU 2023-08 and the Company elected to early adopt the new standard effective January 1, 2024. The transition guidance 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. As a result of the Company’s early adoption, the Company recorded a $24 thousand increase to Digital assets and a $24 thousand decrease to Accumulated deficit on the Consolidated Balance Sheets as of January 1, 2024. The Company did not have any digital asset holdings as of March 31, 2024. The Company’s digital assets have active markets with observable prices and are considered Level 1 fair value measurements. The following table presents a roll-forward of total digital assets for the three months ended March 31, 2024, based on the fair value model under ASU 2023-08, and the three months ended March 31, 2023 (in thousands): March 31, 2024 March 31, 2023 Digital assets, beginning of period $ 2,284 $ 724 Cumulative effect of ASU 2023-08, adopted January 1, 2024 24 — Digital assets, beginning of period, as adjusted 2,308 724 Digital asset mining revenue, net of receivables 1 149,644 98,026 Mining proceeds from shared hosting 8,371 — Proceeds from sales of digital assets (160,777) (98,384) Realized gain from sale of digital assets 543 1,064 Impairment of digital assets — (1,056) Payment of board fee (89) — Other — (374) Digital assets, end of period $ — $ — 1 As of March 31, 2024 and March 31, 2023, there was $2.0 million and $1.2 million, respectively, of digital asset receivable included in prepaid expenses and other current assets on the consolidated balance sheets. Digital assets are classified as current assets on the Company’s Consolidated Balance Sheets. In accordance with certain of the Company’s credit and note agreements, the Company is currently required to sell its bitcoin within ten days of receipt. The Company does not have any off-balance sheet holdings of digital assets and does not safeguard digital assets for third parties. Use of Estimates The preparation of the Company’s unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Some of the more significant estimates include assumptions used to estimate the Company’s ability to continue as a going concern, the valuation of digital assets, other intangible assets and property, plant and equipment, the initial measurement of lease liabilities, the fair value of derivative liabilities, and income taxes. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from management’s estimates. Performance Obligations - Hosting Segment The Company’s performance obligations primarily relate to hosting services, which are described below. The Company has performance obligations associated with commitments in customer hosting contracts for future services that have not yet been recognized in the financial statements. As of March 31, 2024, for contracts with original terms that exceed one year (typically ranging from 15 to 24 months), we expect to recognize approximately $58.3 million of revenue in the future related to performance obligations associated with existing hosting contracts. The Company expects to recognize approximately 89% of this amount over the next 12 months and the remainder thereafter. Deferred Revenue The Company records contract liabilities in Deferred revenue on the Consolidated Balance Sheets when cash payments are received in advance of performance and recognizes them as revenue when the performance obligations are satisfied. The Company’s total deferred revenue balance as of March 31, 2024 and December 31, 2023, was $9.3 million and $9.8 million, respectively. In the three months ended March 31, 2024, the Company recognized $6.4 million of revenue that was included in the deferred revenue balance as of the beginning of the year. In the three months ended March 31, 2023, the Company recognized $11.6 million of revenue that was included in the deferred revenue balance as of the beginning of the year. Advanced payments for hosting services are typically recognized in the following month and are generally recognized within one year. Convertible and Other Notes Payable Convertible and other notes payable (“Notes payable”) are accounted for under ASC 470, Debt (“ASC 470”) are presented at their carrying value, which is their remaining par or face amount net of any related unamortized premium, discount and issuance costs. Notes payable are initially recognized at their present value. When cash proceeds are received for the issuance of Notes payable the proceeds are used to establish their present value. When cash proceeds are not received for the issuance of Notes payable their present value is based on the consideration exchanged. This present value generally will be the Notes payable’s cash flows discounted at a market rate when it is more evident than the noncash consideration exchanged. When the present value of Notes payable on issuance varies from its par or face amount, an original discount or premium results and any related issuance costs are used to determine an effective interest rate. Original premium, discount and issuance costs are amortized using the level effective rate interest method. Amortization is recognized as a component of current interest expense. Notes payable are evaluated at issuance to determine whether or not they have features or terms which would be treated as embedded derivatives that are required to be bifurcated under ASC 815, Derivatives and Hedging (“ASC 815”). At December 31, 2023 and March 31, 2024, Notes payable did not have any embedded derivatives required to be bifurcated. Contingent Value Rights Liabilities As described in Note 7 — Contingent Value Rights and Warrant Liabilities, on the Effective Date, pursuant to the Plan of Reorganization, the Company entered into a contingent value rights agreement (the “Contingent Value Rights Agreement”) which provides for the issuance of the contingent value rights (the “CVRs”) to certain creditors and provides for the issuance of CVRs issued to holders of allowed general unsecured claims (“GUC”) (in such capacity, the “GUC Payees”) (the “GUC CVRs”). The CVRs and GUC CVRs are equity-linked instruments which are either only cash settled or in some instances share settled at the Company’s sole discretion. The Company determined that these equity-linked instruments are not indexed to the Company’s stock and are required to be recognized as liabilities which are, initially and subsequently, measured at fair value with changes in value reflected in Net income (loss). On the Effective Date, the CVRs and GUC CVRs were recognized at their fair value of $86.3 million. As of March 31, 2024, the CVRs and GUC CVRs were reported at a fair value of $44.6 million in Contingent value rights on the consolidated balance sheets. During the three months ended March 31, 2024, the change in fair value of $41.7 million was included in Change in fair value of warrant and contingent value rights on the Company’s Consolidated Statements of Operations. Warrant Liabilities As described in Note 7 — Contingent Value Rights and Warrant Liabilities, on the Effective Date, pursuant to the Plan of Reorganization, holders of the Company’s previous common stock received warrants. The warrants are equity-linked instruments. The Company determined that these equity-linked instruments are not indexed to the Company’s stock and are required to be recognized as liabilities which are, initially and subsequently, measured at fair value with changes in value reflected in Net income (loss). On the Effective Date, the warrants were recognized at their fair value of $345.9 million. As of March 31, 2024, the warrants were reported at a fair value of $327.5 million in Warrant liabilities on the Consolidated Balance Sheets. During the three months ended March 31, 2024, the change in fair value of $18.4 million was included in Change in fair value of warrant and contingent value rights on the Company’s Consolidated Statements of Operations. Accounting Standards Not Yet Adopted In December 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which will improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This update will be effective for the Company during the annual reporting period beginning January 1, 2025. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Under this ASU, public business entities must annually “(1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income [or loss] by the applicable statutory income tax rate).” This update will be effective for the Company during the annual reporting period beginning January 1, 2025. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. There are no other new accounting pronouncements that are expected to have a significant impact on the Company’s unaudited consolidated financial statements. |
CHAPTER 11 FILING AND EMERGENCE
CHAPTER 11 FILING AND EMERGENCE FROM BANKRUPTCY | 3 Months Ended |
Mar. 31, 2024 | |
Reorganizations [Abstract] | |
CHAPTER 11 FILING AND EMERGENCE FROM BANKRUPTCY | 3. CHAPTER 11 FILING AND EMERGENCE FROM BANKRUPTCY Chapter 11 On December 21, 2022 (the “Petition Date”), the Debtors filed the Chapter 11 Cases in the Bankruptcy Court seeking relief under Chapter 11 of the Bankruptcy Code. The Chapter 11 Cases are jointly administered under Case No. 22-90341. The Debtors continued to operate their business and managed their properties as DIP under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. On June 20, 2023, the Debtors filed with the Bankruptcy Court (i) a proposed Joint Chapter 11 Plan of Reorganization of Core Scientific, Inc. and its Debtor Affiliates and a related proposed form of Disclosure Statement, and on January 15, 2024, the Debtors filed the Fourth Amended Joint Chapter 11 Plan of Reorganization of Core Scientific, Inc. and its Affiliated Debtors (with Technical Modifications) with the Bankruptcy Court. On January 16, 2024, the Bankruptcy Court entered the Confirmation Order among other things, confirming the Plan of Reorganization. On the Effective Date, the conditions to the effectiveness of the Plan of Reorganization were satisfied or waived and the Company emerged from bankruptcy. Replacement DIP Credit Agreement On February 2, 2023, the Bankruptcy Court entered an interim order (the “Replacement Interim DIP Order”) authorizing, among other things, the Debtors to obtain senior secured non-priming super-priority replacement post-petition financing (the “Replacement DIP Facility”). On February 27, 2023, the Debtors entered into a senior secured super-priority replacement debtor-in-possession loan and security agreement governing the Replacement DIP Facility (the “Replacement DIP Credit Agreement”), with B. Riley Commercial Capital, LLC, as administrative agent (the “Administrative Agent”), and the lenders from time to time party thereto (collectively, the “Replacement DIP Lender”). Proceeds of the Replacement DIP Facility were used to, among other things, repay amounts outstanding under the original debtor-in-possession facility that was entered into in connection with the filing of the Chapter 11 Cases (the “Original DIP Facility”), including payment of all fees and expenses required to be paid under the terms of the Original DIP Facility. These funds, along with ongoing cash generated from operations, were anticipated to provide the necessary financing to effectuate the planned restructuring, facilitate the emergence from Chapter 11, and cover the fees and expenses of legal and financial advisors. The Replacement DIP Facility, among other things, provided for a non-amortizing super-priority senior secured term loan facility in an aggregate principal amount not to exceed $70 million. Under the Replacement DIP Facility, (i) $35 million was made available following Bankruptcy Court approval of the Interim DIP Order and (ii) $35 million was made available following Bankruptcy Court approval of the Final DIP Order. Loans under the Replacement DIP Facility bore interest at a rate of 10%, which was payable in kind in arrears on the first day of each calendar month. The Administrative Agent received an upfront payment equal to 3.5% of the aggregate commitments under the Replacement DIP Facility on February 3, 2023, payable in kind, and the Replacement DIP Lender received an exit premium equal to 5% of the amount of the loans being repaid, reduced or satisfied, payable in cash. On March 1, 2023, the Bankruptcy Court entered an order approving the Replacement DIP Facility on a final basis and the terms under which the Debtors are authorized to use the cash collateral of the holders of their convertible notes (the “Final DIP Order”). On July 4, 2023, the Debtors, the Administrative Agents and the Replacement DIP Lender entered into the First Amendment to the Replacement DIP Credit Agreement. In January 2024, the Replacement DIP Facility was repaid in full and terminated on the Effective Date of the Company’s Plan of Reorganization. Reorganization items, net and Liabilities Subject to Compromise Effective on December 21, 2022, the Company began to apply the provisions of ASC 852, Reorganizations (“ASC 852”), which is applicable to companies under bankruptcy protection, and requires amendments to the presentation of certain financial statement line items. ASC 852 requires that the financial statements for periods including and after the filing of the Chapter 11 Cases distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Expenses (including professional fees), realized gains and losses, and provisions for losses that can be directly associated with the reorganization must be reported separately as Reorganization items, net in the Consolidated Statements of Operations beginning December 21, 2022, the date of filing of the Chapter 11 Cases. Liabilities that may be affected by the Plan of Reorganization must be classified as liabilities subject to compromise at the amounts expected to be allowed by the Bankruptcy Court, even if they may be settled for lesser amounts as a result of the Plan of Reorganization or negotiations with creditors. The amounts currently classified as liabilities subject to compromise may be subject to future adjustments depending on Bankruptcy Court actions, further developments with respect to disputed claims, determinations of secured status of certain claims, the values of any collateral securing such claims, or other events. Any resulting changes in classification will be reflected in subsequent financial statements. If there is uncertainty about whether a secured claim is undersecured, or will be impaired under the Plan of Reorganization, the entire amount of the claim is included with prepetition claims in liabilities subject to compromise. As a result of the filing of the Chapter 11 Cases on December 21, 2022, the classification of pre-petition indebtedness is generally subject to compromise pursuant to the Plan of Reorganization. Generally, actions to enforce or otherwise effect payment of pre-bankruptcy filing liabilities were stayed. The Bankruptcy Court granted the Debtors authority to pay certain pre-petition claims in designated categories and subject to certain terms and conditions. This relief generally was designed to preserve the value of the Debtors’ businesses and assets. Among other things, the Bankruptcy Court authorized the Debtors to pay certain pre-petition claims relating to employee wages and benefits, taxes and critical vendors. The Debtors are paying and intend to pay undisputed post-petition liabilities in the ordinary course of business. In addition, the Debtors may reject certain pre-petition executory contracts and unexpired leases with respect to their operations with the approval of the Bankruptcy Court. Any damages resulting from the rejection of executory contracts and unexpired leases are treated as general unsecured claims. Reorganization items, net incurred as a result of the Chapter 11 Cases presented separately in the accompanying Consolidated Statements of Operations were as follows (in thousands): Three Months Ended March 31, 2024 2023 Professional fees and other bankruptcy related costs $ 21,480 $ 20,107 Negotiated settlements (2,269) — Satisfaction of allowed claims: Extinguishment of secured and other convertible notes (10,831) — Extinguishment of miner equipment lender loans and leases (102,024) — Satisfaction of general unsecured creditor claims (31,167) — Satisfaction of cures and other claims 231 — Total satisfaction of allowed claims (143,791) — Reimbursed claimant professional fees 12,802 — Debtor-in-possession financing costs 339 11,452 Reorganization items, net $ (111,439) $ 31,559 During the three months ended March 31, 2024, there were significant reorganization related gains resulting primarily from satisfaction of allowed claims under the Plan of Reorganization on the Effective Date and negotiated settlements, partially offset by professional fees and other bankruptcy related costs. These reorganization related impacts were classified as Reorganization items, net until the Effective Date. Reorganization costs incurred after the Effective Date have been classified as General and administrative expense. The accompanying Consolidated Balance Sheet as of December 31, 2023 includes amounts classified as Liabilities subject to compromise, which represented liabilities the Company estimated would be allowed as claims in the Chapter 11 Cases by the Court. These amounts represented the Company's estimate of known or potential obligations to be resolved in connection with the Chapter 11 Cases. Liabilities subject to compromise consisted of the following (in thousands): December 31, 2023 Accounts payable $ 36,678 Accrued expenses and other current liabilities 20,300 Accounts payable, and accrued expenses and other current liabilities $ 56,978 Debt subject to compromise $ 41,777 Accrued interest on liabilities subject to compromise 580 Leases, debt and accrued interest 42,357 Liabilities subject to compromise $ 99,335 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | 4. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net as of March 31, 2024 and December 31, 2023 consist of the following (in thousands): March 31, 2024 December 31, 2023 Estimated Useful Lives Land and improvements 1 $ 20,583 $ 21,852 20 years Building and improvements 168,470 164,495 12 to 39 years Mining and network equipment 2 450,921 441,404 1 to 5 years Electrical equipment 3 65,006 64,810 5 to 10 years Other property, plant and equipment 4 2,788 2,935 5 to 7 years Total 707,767 695,496 Less: accumulated depreciation and amortization 5 320,394 293,974 Total 387,373 401,522 Add: Construction in progress 188,596 183,909 Property, plant and equipment, net $ 575,969 $ 585,431 1 Estimated useful life of improvements. Land is not depreciated. 2 Includes finance lease assets of $6.8 million and $46.6 million at March 31, 2024 and December 31, 2023, respectively. 3 Includes finance lease assets of $12.7 million and $12.7 million at March 31, 2024 and December 31, 2023, respectively. 4 Includes finance lease assets of $0.4 million and $0.4 million at March 31, 2024 and December 31, 2023, respectively. 5 Includes accumulated amortization for assets under finance leases of $10.5 million and $43.4 million at March 31, 2024 and December 31, 2023, respectively. Depreciation expense, including amortization of finance lease assets, for the three months ended March 31, 2024 and 2023, was $28.8 million, and $20.2 million, respectively. Depreciation for the three months ended March 31, 2024 and 2023, allocated to costs of revenue was $28.7 million, and $20.2 million, respectively. Mining and network equipment |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
LEASES | 5. LEASES The Company has entered into non-cancellable operating and finance leases for office, data facilities, computer and networking equipment, electrical infrastructure and office equipment, with lease periods expiring through 2035. In addition, certain leases contain bargain renewal options extending through 2051. The Company recognizes lease expense for these leases on a straight-line basis over the lease term, which includes any bargain renewal options. The Company recognizes lease expense on a straight-line basis over the lease period. In addition to minimum rent, certain leases require payment of real estate taxes, insurance, common area maintenance charges, and other executory costs. Differences between lease expense and rent paid are recognized as adjustments to operating lease right-of-use assets on the Company’s Consolidated Balance Sheets. For certain leases, the Company receives lease incentives, such as tenant improvement allowances, and records those as adjustments to operating lease right-of-use assets and operating lease liabilities on the Company’s Consolidated Balance Sheets and amortizes the lease incentives on a straight-line basis over the lease term as an adjustment to lease expense. The components of operating and finance leases are presented on the Company’s Consolidated Balance Sheets as follows (in thousands): Financial statement line item March 31, 2024 December 31, 2023 Assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 77,766 $ 7,844 Finance lease right-of-use assets Property, plant and equipment, net $ 9,374 $ 16,268 Liabilities: Operating lease liabilities, Operating lease liabilities, $ 2,619 $ 77 Operating lease liabilities, net Operating lease liabilities, net $ 69,022 $ 1,512 Finance lease liabilities, current portion Finance lease liabilities, current portion $ 3,018 $ 19,771 Finance lease liabilities, net of Finance lease liabilities, net of current portion $ 1,170 $ 35,745 Supplemental disclosure of noncash investing and financing activities in the Company’s Consolidated Statements of Cash Flows includes a decrease in lease liability due to lease satisfactions on the Effective Date of $50.7 million presented in Extinguishment of accounts payable, accrued expenses, finance lease liability, and notes payable upon emergence for the quarter ended March 31, 2024. The components of lease expense were as follows (in thousands): Three Months Ended March 31, Financial statement line item 2024 2023 Operating lease expense General and administrative expenses $ 1,419 $ 390 Short-term lease expense General and administrative expenses — 365 Finance lease expense: Amortization of right-of-use assets Cost of revenue 334 3,857 Interest on lease liabilities Interest expense, net 1,037 309 Total finance lease expense 1,371 4,166 Total lease expense $ 2,790 $ 4,921 In determining the discount rate used to initially measure the present value of the right-of-use asset and lease liability, we use rates implicit in the lease, or if not readily available, we use our estimated incremental borrowing rate. Our incremental borrowing rate is based on an estimated secured rate with reference to recent borrowings of similar collateral and tenure, when available. If there are insufficient recent borrowings near the time of lease commencement, we utilize a rate based on published index rates of credit quality similar to ours adjusted for similar collateral and tenure. Estimating an incremental borrowing rate may require significant judgment. Information relating to the lease term and discount rate is as follows: March 31, 2024 March 31, 2023 Weighted Average Remaining Lease Term (Years) Operating leases 7.1 10.7 Finance leases 1.3 2.1 Weighted Average Discount Rate Operating leases 9.3 % 6.5 % Finance leases 12.3 % 12.4 % Information relating to lease payments is as follows (in thousands): Three Months Ended March 31, 2024 2023 Lease Payments Operating lease payments $ 69 $ 337 Finance lease payments 1 $ 4,628 $ 1,080 1 Approximately $4.6 million of finance lease liabilities were reinstated pursuant to the Plan of Reorganization. Of the $4.6 million of finance lease payments made during the three months ended March 31, 2024, $3.6 million related to cure payments from emergence on the Effective Date. The Company’s minimum payments under noncancelable operating and finance leases having initial terms and bargain renewal periods in excess of one year are as follows at March 31, 2024, and thereafter (in thousands): Operating leases Finance leases Remaining 2024 $ 6,094 $ 2,781 2025 13,568 1,862 2026 14,365 3 2027 14,721 — 2028 15,143 — Thereafter 35,997 — Total lease payments 99,888 4,646 Less: imputed interest 28,247 458 Total $ 71,641 $ 4,188 |
LEASES | 5. LEASES The Company has entered into non-cancellable operating and finance leases for office, data facilities, computer and networking equipment, electrical infrastructure and office equipment, with lease periods expiring through 2035. In addition, certain leases contain bargain renewal options extending through 2051. The Company recognizes lease expense for these leases on a straight-line basis over the lease term, which includes any bargain renewal options. The Company recognizes lease expense on a straight-line basis over the lease period. In addition to minimum rent, certain leases require payment of real estate taxes, insurance, common area maintenance charges, and other executory costs. Differences between lease expense and rent paid are recognized as adjustments to operating lease right-of-use assets on the Company’s Consolidated Balance Sheets. For certain leases, the Company receives lease incentives, such as tenant improvement allowances, and records those as adjustments to operating lease right-of-use assets and operating lease liabilities on the Company’s Consolidated Balance Sheets and amortizes the lease incentives on a straight-line basis over the lease term as an adjustment to lease expense. The components of operating and finance leases are presented on the Company’s Consolidated Balance Sheets as follows (in thousands): Financial statement line item March 31, 2024 December 31, 2023 Assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 77,766 $ 7,844 Finance lease right-of-use assets Property, plant and equipment, net $ 9,374 $ 16,268 Liabilities: Operating lease liabilities, Operating lease liabilities, $ 2,619 $ 77 Operating lease liabilities, net Operating lease liabilities, net $ 69,022 $ 1,512 Finance lease liabilities, current portion Finance lease liabilities, current portion $ 3,018 $ 19,771 Finance lease liabilities, net of Finance lease liabilities, net of current portion $ 1,170 $ 35,745 Supplemental disclosure of noncash investing and financing activities in the Company’s Consolidated Statements of Cash Flows includes a decrease in lease liability due to lease satisfactions on the Effective Date of $50.7 million presented in Extinguishment of accounts payable, accrued expenses, finance lease liability, and notes payable upon emergence for the quarter ended March 31, 2024. The components of lease expense were as follows (in thousands): Three Months Ended March 31, Financial statement line item 2024 2023 Operating lease expense General and administrative expenses $ 1,419 $ 390 Short-term lease expense General and administrative expenses — 365 Finance lease expense: Amortization of right-of-use assets Cost of revenue 334 3,857 Interest on lease liabilities Interest expense, net 1,037 309 Total finance lease expense 1,371 4,166 Total lease expense $ 2,790 $ 4,921 In determining the discount rate used to initially measure the present value of the right-of-use asset and lease liability, we use rates implicit in the lease, or if not readily available, we use our estimated incremental borrowing rate. Our incremental borrowing rate is based on an estimated secured rate with reference to recent borrowings of similar collateral and tenure, when available. If there are insufficient recent borrowings near the time of lease commencement, we utilize a rate based on published index rates of credit quality similar to ours adjusted for similar collateral and tenure. Estimating an incremental borrowing rate may require significant judgment. Information relating to the lease term and discount rate is as follows: March 31, 2024 March 31, 2023 Weighted Average Remaining Lease Term (Years) Operating leases 7.1 10.7 Finance leases 1.3 2.1 Weighted Average Discount Rate Operating leases 9.3 % 6.5 % Finance leases 12.3 % 12.4 % Information relating to lease payments is as follows (in thousands): Three Months Ended March 31, 2024 2023 Lease Payments Operating lease payments $ 69 $ 337 Finance lease payments 1 $ 4,628 $ 1,080 1 Approximately $4.6 million of finance lease liabilities were reinstated pursuant to the Plan of Reorganization. Of the $4.6 million of finance lease payments made during the three months ended March 31, 2024, $3.6 million related to cure payments from emergence on the Effective Date. The Company’s minimum payments under noncancelable operating and finance leases having initial terms and bargain renewal periods in excess of one year are as follows at March 31, 2024, and thereafter (in thousands): Operating leases Finance leases Remaining 2024 $ 6,094 $ 2,781 2025 13,568 1,862 2026 14,365 3 2027 14,721 — 2028 15,143 — Thereafter 35,997 — Total lease payments 99,888 4,646 Less: imputed interest 28,247 458 Total $ 71,641 $ 4,188 |
CONVERTIBLE AND OTHER NOTES PAY
CONVERTIBLE AND OTHER NOTES PAYABLE | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE AND OTHER NOTES PAYABLE | 6. CONVERTIBLE AND OTHER NOTES PAYABLE Notes payable as of March 31, 2024 and December 31, 2023, consist of the following (in thousands): Stated Interest Rate Effective Interest Rates Maturities March 31, 2024 December 31, 2023 Replacement DIP Credit Agreement 1 10.0% 10.0% 2024 $ — $ 4,273 Exit Credit Agreement 9.0% 9.0% 2027 61,200 — Other Convertible Notes 2 10.0% 10.0% 2025 — 322,396 Secured Convertible Notes 3 10.0% 10.0% 2025 — 237,584 Secured Notes 12.5% 12.6% 2028 150,000 — New Secured Convertible Notes 6.0% - 10.0% 10.0% 2029 260,000 — Miner Financing: Blockfi loan 9.7% - 13.1% 10.1% - 13.1% 2023 — 53,913 Blockfi takeback loan 3.0% - 8.0% 11.9% 2029 47,734 — Liberty/Stonebriar loan 10.6% 10.6% 2024 — 6,968 Liberty/Stonebriar takeback loan 3.0% - 8.0% 11.9% 2029 6,211 — ACM note —% 15.0% 2025 5,704 6,519 Mass Mutual Barings loans 9.8% - 13.0% 9.8% - 13.0% 2025 — 63,844 Anchor Labs loan 12.5% 12.5% 2024 — 25,159 Trinity loan 11.0% 11.0% 2024 — 23,356 Equipment and Settlement: Bremer loan 5.5% 5.5% 2027 13,641 18,331 HMC note 5.0% 15.0% 2026 13,347 14,208 Didado note 5.0% 15.0% 2027 12,294 13,000 Dalton note 5.0% 5.0% 2024 4,547 — Harper note 5.0% 15.0% 2026 4,522 4,678 Trilogy note 5.0% 15.0% 2026 2,927 2,927 Unsecured: B. Riley Bridge Notes 7.0% 7.0% 2023 — 41,777 Other: First Insurance note 7.6% 7.6% 2024 640 2,538 Stockholder loan 10.0% 20.0% 2023 — 10,000 Kentucky Note 5.0% 5.0% 2023 — 529 Other 5.0% - 7.7% 7.1% - 15.0% 2024 - 2025 1,246 2,453 Notes payable, prior to reclassification to Liabilities subject to compromise 584,013 854,453 Less: Notes payable in Liabilities subject to compromise 4 — 41,777 Less: Unamortized discounts - post-petition 4,107 4,236 Total notes payable, net 579,906 808,440 Less: current maturities 23,333 124,358 Convertible and other notes payable, net of current portion $ 556,573 $ 684,082 1 Replacement DIP Credit Agreement, see Note 3 — Chapter 11 Filing and Emergence from Bankruptcy for further information. 2 Other Convertible Notes included principal balance at issuance and PIK interest. 3 Secured Convertible Notes included principal balance at issuance and PIK interest. 2 Other Convertible Notes included principal balance at issuance and PIK interest. 1 Replacement DIP Credit Agreement, see Note 3 — Chapter 11 Filing and Emergence from Bankruptcy for further information. 4 In connection with the Company's Chapter 11 Cases, $41.8 million of outstanding notes payable were reclassified to Liabilities subject to compromise in the Company's Consolidated Balance Sheets as of December 31, 2023, at their expected allowed amount. Up to the Petition Date, the Company continued to accrue interest expense in relation to these reclassified debt instruments. As of December 31, 2023, $0.6 million of accrued interest was classified as Liabilities subject to compromise. On January 4, 2024, the Company pre-paid the outstanding balance of $4.5 million on the Replacement DIP Facility provided by B. Riley Financial, the Company’s DIP lender. The $4.5 million payment included exit fees of approximately $0.2 million. The Replacement DIP Facility was terminated on the Effective Date. On January 24, 2024, the Company entered into a settlement agreement with Dalton Utilities which resulted in the issuance of an unsecured promissory note with a principal amount of $9.1 million dated December 29, 2023. The note bears interest at a contractual rate of 5.0% per annum and has a maturity date of May 2, 2024. The Company is required to make monthly payments of principal and interest. On the Effective Date, the obligations of the Company under the Company’s April convertible notes, August convertible notes, replacement debtor-in-possession credit agreement, stock certificates, book entries, and any other certificate, share, note, bond, indenture, purchase right, option, warrant, or other instrument or document, directly or indirectly, evidencing or creating any indebtedness or obligation of or ownership interest in the Debtors giving rise to any claim or interest (except such certificates, notes or other instruments or documents evidencing indebtedness or obligations of, or interests in, the Debtors that are specifically reinstated pursuant to the Plan of Reorganization) were cancelled, and the duties and obligations of all parties thereto were deemed satisfied in full, canceled, released, discharged, and of no force or effect. Extinguishments On the Effective Date, the holders of Secured and Other Convertible Notes received Secured Notes Indenture, New Secured Convertible Notes Indenture, New Common Stock and CVRs. Certain holders of New Secured Convertible Notes also funded and received the Exit Credit Agreement. The exchange and underlying agreements were executed contemporaneously and in contemplation of each other and were analyzed on a combined basis under ASC 470. The Company determined that extinguishment accounting was applicable, as the debt terms in the exchange are substantially different: (a) the present value of the cash flows of the new and remaining instruments differ by more than 10%, (b) the fair value of the conversion option changed by more than 10% of the carrying amount of the original instruments, and (c) a substantive conversion feature was added to the debt terms. The gain on extinguishment is reported in Reorganization items, net. Two previous miner equipment lender loans were exchanged for Miner Equipment Lender Agreements. The Company determined that extinguishment accounting was applicable, as the loans had original maturities near the exchange on the Effective Date. The remaining miner equipment lender loans and leases were exchanged for New Common Stock. The Company determined that extinguishment accounting was applicable, as the remaining miner equipment lender loans and leases were settled by the issuance of equity-classified shares. The gain on extinguishment is reported in Reorganization items, net. Issuances On the Effective Date, pursuant to the Plan of Reorganization, the Company issued the following debt instruments, which are defined and described in further detail below (in thousands): Principal Balance on the Effective Date Exit Credit Agreement $ 61,200 Secured Notes Indenture $ 150,000 New Secured Convertible Notes Indenture $ 260,000 Miner Equipment Lender Agreements $ 52,947 In addition, approximately $15.0 million of debt was reinstated pursuant to the Plan of Reorganization. Exit Credit Agreement On the Effective Date, under the terms of the Plan of Reorganization, the Company entered into a credit and guaranty agreement, dated as of January 23, 2024 (the “Exit Credit Agreement”), by and among the Company, as borrower, the guarantors named therein, the lenders party thereto and Wilmington Trust, National Association, as administrative agent and collateral agent, consisting of an $80 million first-lien credit facility with certain holders of the Company’s April convertible notes and August convertible notes (in such capacity, the “Exit Lenders”) equal to (i) a $40 million term loan comprised of (x) a $20 million initial term loan and (y) a $20 million delayed-draw term loan and (ii) a $40 million roll-up of the outstanding balance of the April convertible notes and August convertible notes (the “Exit Facility”). The Exit Facility will mature on January 23, 2027. From the Effective Date, cash borrowings under the Exit Facility bear interest at 9.0% per annum, payable on the first business day of each Fiscal Quarter (as defined in the Exit Credit Agreement), commencing on April 1, 2024. The Exit Facility amortizes in equal quarterly installments of $1.25 million beginning on January 1, 2026. Upon the occurrence and during the continuance of an Event of Default (as such term is defined in the Exit Credit Agreement), the obligations under the Exit Facility shall automatically bear interest at a rate equal to an additional 2.0% per annum over the rate otherwise applicable, with such interest being payable in cash on each interest payment date (unless the administrative agent demands prior payment). At issuance, the Company identified embedded features in the Exit Facility and evaluated them for potential bifurcation in accordance with ASC 815-15. The identified embedded features were determined to be clearly and closely related to the debt host and not subject to bifurcation. The present value of the Exit Facility’s cash flows were estimated to be equal to its par amount, therefore no discount or premium was recorded on issuance. Obligations under the Exit Credit Agreement are secured by a valid and perfected lien and security interest on substantially all assets and property of the Company and the guarantors thereof, including a first-priority lien on all new, unencumbered miner equipment purchased by the Company or any subsidiary thereof other than the following, which are each secured by a second priority lien on, (i) Equipment Priority Collateral (as defined below) and (ii) future financed equipment. Obligations under the Exit Credit Agreement are guaranteed by all direct and indirect subsidiaries of the Company. The Exit Facility provides for affirmative, negative and financial covenants, that, among other things, limit the ability of the Company and, in certain cases, certain of the Company’s subsidiaries, to incur more indebtedness; pay dividends, redeem stock or make other distributions; make investments; grant or permit certain liens; transfer or sell assets; merge or consolidate; and enter into certain transactions with our affiliates. The Exit Facility also imposes financial maintenance covenants in the form of a maximum leverage ratio and minimum liquidity requirements. The Exit Facility contains certain events of default, including, without limitation, nonpayment of principal, nonpayment of interest, fees or other obligations after three business days, bankruptcy events of the Company or any of its subsidiaries and certain changes of control. Secured Notes Indenture On the Effective Date, under the terms of the Plan of Reorganization, the Company issued $150.0 million aggregate principal amount of senior secured notes due 2028 (the “Secured Notes”) pursuant to a secured notes indenture (the “Secured Notes Indenture”) among (i) the Company, as the issuer, (ii) the guarantors named therein and (iii) Wilmington Trust, National Association, as trustee and collateral agent (the “Secured Notes Agent”). The maturity date of the Secured Notes is January 23, 2028. The Secured Notes bear interest at a rate of 12.5% per annum, payable on March 15, June 15, September 15 and December 15 of each year, beginning on June 15, 2024. There is no amortization on the Secured Notes prior to maturity. The Secured Notes are secured by a valid and perfected second lien and security interest on substantially all assets of the Company and the guarantors thereof, which liens are junior in priority to liens securing the Exit Facility and are subject to the terms of the New Intercreditor Agreement. The Secured Notes are guaranteed by all direct and indirect subsidiaries of the Company. The Company is entitled to prepay the notes prior to maturity. If the notes are prepaid after the first year (including in the event that the notes are accelerated), or if the notes are not paid when due at the stated maturity, the Company is required to pay a premium on the outstanding principal amount equal to: (a) 1.00% of the aggregate principal amount of the notes then outstanding, if the notes are prepaid on or after the first anniversary of the Issue Date (as such term is defined in the Secured Notes Indenture) and prior to the second anniversary of the Issue Date, (b) 2.00% of the aggregate principal amount of the notes then outstanding, if the notes are prepaid on or after the second anniversary of the Issue Date and prior to the third anniversary of the Issue Date and (c) 3.00% of the aggregate principal amount of the notes then outstanding, if the notes are prepaid on or after the third anniversary of the Issue Date or if the notes are not paid when due at maturity, in each case whether such payment is made before or after an event of default or an acceleration (including any acceleration as a result of an insolvency proceeding) of all or part of the notes. No prepayment premium shall be applicable in connection with any prepayment, repayment or refinancing that occurs prior to the first anniversary of the Issue Date. At issuance, the Company identified embedded features in the Secured Notes and evaluated them for potential bifurcation in accordance with ASC 815-15. The identified embedded features were determined to be clearly and closely related to the debt host and not subject to bifurcation. The present value of the Secured Notes’ cash flows were estimated to be $149.5 million, the discount is amortized to result in recognition of a level effective interest rate. The Secured Notes Indenture contains affirmative and negative covenants consistent with those in the Exit Facility and the New Secured Convertible Notes Indenture (as defined below) that, among other things, limit the ability of the Company and, in certain cases, certain of the Company’s subsidiaries to incur more indebtedness; pay dividends, redeem stock or make other distributions; make investments; grant or permit certain liens; transfer or sell assets; merge or consolidate; and enter into certain transactions with its affiliates. The Secured Notes Indenture contains certain events of default, including, without limitation, nonpayment of principal, nonpayment of fees, interest or other obligations after three business days, violations of the covenants (subject, in the case of certain affirmative covenants, to certain grace periods), and bankruptcy events of the Company or any of its subsidiaries. New Secured Convertible Notes Indenture On the Effective Date, under the terms of the Plan of Reorganization, the Company issued $260.0 million aggregate principal amount of secured convertible notes due 2029 (the “New Secured Convertible Notes”) pursuant to a secured convertible notes indenture (the “New Secured Convertible Notes Indenture”) among (i) Core Scientific, Inc., as the issuer, (ii) the guarantors party thereto and (iii) Wilmington Trust, National Association, as trustee and as collateral agent for the New Secured Convertible Notes (in such capacity, the “Secured Convertible Notes Agent”). The New Secured Convertible Notes were issued to holders of the Company’s April convertible notes and August convertible notes. The maturity date of the New Secured Convertible Notes is January 23, 2029. The New Secured Convertible Notes bear interest payable quarterly on March 15, June 15, September 15 and December 15, beginning on June 15, 2024, at the Company’s option, (i) in cash at a rate of 10.0% per annum, or (ii) in cash at a rate of 6.0% of per annum and in stock at a rate of 6.0% of per annum (the “Cash/PIK Interest”); provided that the payable-in-stock portion of the Cash/PIK Interest is payable in New Common Stock using a price equal to the volume weighted average price of the New Common Stock for the 20 consecutive trading day period immediately preceding the date that is three business days prior to the applicable interest payment date. The New Secured Convertible Notes are secured by a valid and perfected third lien and security interest on substantially all assets of the Company and the guarantors thereof, and which liens are junior in priority to liens securing the Exit Facility and Secured Notes and are subject to the terms of the New Intercreditor Agreement. The New Secured Convertible Notes are guaranteed by all direct and indirect subsidiaries of the Company. Upon the occurrence of a Fundamental Change (as such term is defined in the New Secured Convertible Notes Indenture), the holders of the New Secured Convertible Notes have the right to require the Company to purchase all or any portion of such holder’s New Secured Convertible Notes at the principal amount thereof plus accrued interest to the repurchase date. Holders may elect to convert the New Secured Convertible Notes into shares of New Common Stock at any time prior to maturity at an initial conversion rate of 171.48 shares of New Common Stock per $1,000 principal amount of New Secured Convertible Notes (equal to a conversion price of $5.8317 per share of New Common Stock), which the Company may deliver in cash, New Common Stock or a combination thereof. The conversion price is subject to anti-dilution adjustments upon (among other triggering events) the occurrence of certain dilutive transactions, including share dividends, splits, combinations and reclassification. The New Secured Convertible Notes also automatically convert into New Common Stock if the volume weighted average price for each day for any 20 consecutive trading days is greater than or equal to 133.6% of the as-adjusted conversion price of $7.79. At issuance, the Company identified embedded features in the New Secured Convertible Notes and evaluated them for potential bifurcation in accordance with ASC 815-15. The conversion feature was determined to be indexed to the Company’s own stock and would be classified in equity if it were freestanding meeting a scope exception from derivative accounting under ASC 815. The other identified embedded features were determined to be clearly and closely related to the debt host and not subject to bifurcation. Convertible debt instruments not specifically addressed in other GAAP are accounted for in accordance with ASC 470-20. Under that guidance a substantial premium is presumed to attributable to the conversion feature. A conversion feature which is not bifurcated as a derivative is initially recognized in equity as additional paid-in capital. The New Secured Convertible Notes were estimated to have a present value of $293.2 million on issuance. $260.0 million was initially recognized as debt and $33.2 million was initially recognized as additional paid-in capital. Under the relevant guidance, neither balance is subject to recognition of recurring remeasurements. The New Secured Convertible Notes Indenture contains affirmative and negative covenants consistent with those in the Exit Facility and the Secured Notes Indenture that, among other things, limit the ability of the Company and, in certain cases, certain of the Company’s subsidiaries to incur more indebtedness; pay dividends, redeem stock or make other distributions; make investments; grant or permit certain liens; transfer or sell assets; merge or consolidate; and enter into certain transactions with its affiliates. The New Secured Convertible Notes Indenture contains certain events of default, including, without limitation, nonpayment of principal, nonpayment of interest, fees or other obligations after three business days, and bankruptcy events of the Company or any of its subsidiaries. Miner Equipment Lender Agreements (BlockFi and Stonebriar) On the Effective Date, under the terms of the Plan of Reorganization, the Company entered into separate New Miner Equipment Lender Agreements (Election 2) with each holder of an Allowed Miner Equipment Lender Secured Claim that is a Settling Miner Equipment Lender that elected on its ballot to receive and is receiving the Miner Equipment Lender Treatment Election 2 (the “Election 2 Miner Equipment Facility Lenders”), in each case, in the principal amount of eighty percent (80%) of each applicable Holders’ Allowed Miner Equipment Lender Claim as of the Effective Date (the “Miner Equipment Lender Facility”). The maturity date on the Miner Equipment Lender Facility is January 23, 2029. Loans issued under the Miner Equipment Lender Facility accrue interest (1) from the Effective Date to and including the second anniversary of the Effective Date, (x) if the Company does not deliver an Election Notice (as defined below), at a rate of 13.0% per annum and shall be payable 3.0% in cash interest and 10.0% paid-in-kind, and (y) if the Company delivers a written notice to the Election 2 Miner Equipment Facility Lenders five (5) business days prior to the due date of any interest payment during this period (an “Election Notice”), the Company may elect to have interest accrue at either (a) 12.0% per annum, payable 5.0% in cash and 7.0% paid-in-kind or (ii) 8.0% per annum, payable in cash and (2) following the second anniversary of the Effective Date, at a rate of 10.0% per annum, payable in cash. Upon the occurrence and during the continuance of an Event of Default (as such term is defined in the New Miner Equipment Lender Agreements (Election 2)), the obligations under the Miner Equipment Lender Facility may, at the option of the Election 2 Miner Equipment Facility Lenders, accrue interest at a rate equal to an additional 2.0% per annum over the rate otherwise applicable, with such interest being payable in cash on demand. Loans issued under the Miner Equipment Lender Facility are secured by a first-priority, duly-perfected and validly enforceable lien on (i) the collateral securing each Election 2 Miner Equipment Facility Lenders’ existing equipment loan/lease and (ii) new, non-financed miners acquired by the Company after the Effective Date, in an aggregate amount of up to $18,204,559 (collectively, the “Equipment Priority Collateral”). On the Effective Date, under the terms of the Plan of Reorganization, each Miner Equipment Facility Lender entered into a separate intercreditor agreement with the Secured Convertible Notes Agent, the Secured Notes Agent and the Exit Agent (as defined in the Plan of Reorganization) with respect to the Equipment Priority Collateral. The present value of the Miner Equipment Lender Facility’s cash flows were estimated to be equal to its par amount, therefore no discount or premium was recorded on issuance. The Miner Equipment Lender Facility contains customary covenants, representations and warranties. As of March 31, 2024, the Company believes it was in compliance with the provisions and financial covenants in their respective material debt agreements in all material respects. |
CONTINGENT VALUE RIGHTS AND WAR
CONTINGENT VALUE RIGHTS AND WARRANT LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
Warrants and Rights Note Disclosure [Abstract] | |
CONTINGENT VALUE RIGHTS AND WARRANT LIABILITIES | 7. CONTINGENT VALUE RIGHTS AND WARRANT LIABILITIES Contingent Value Rights Agreement On the Effective Date, under the terms of the Plan of Reorganization, the Company entered into the Contingent Value Rights Agreement and recorded the liabilities at fair value as of the Effective Date. Pursuant to the Contingent Value Rights Agreement, the Company issued 51,783,625 CVRs to holders of the Company’s April convertible notes and August convertible notes who received New Common Stock (as defined in Note 10 — Stockholders' Deficit) (in such capacity, the “Payees”) in an aggregate amount of 51,783,625 shares of New Common Stock (the “Corresponding New Common Stock”). The CVRs require the Company to make payments to each Payee, of: • (i) at the first testing date, cash equal to such Payee’s pro rata share (the “Year 1 Contingent Payment Obligation”) of the lesser of (a) $43,333,333.33 and (b) the difference between (1) $260,000,000 and (2) the fair market value of the Corresponding New Common Stock (the “First Anniversary Payment Amount”); provided that the Year 1 Contingent Payment Obligation will be extinguished if the fair market value of the Corresponding New Common Stock is equal to or in excess of $260,000,000 with respect to the first testing date; • (ii) at the second testing date, cash or New Common Stock (or a combination of cash and New Common Stock), in the Company’s sole discretion, equal to such Payee’s pro rata share (the “Year 2 Contingent Payment Obligation”) of the lesser of (a) $43,333,333.33 and (b) the difference between (1) $260,000,000 minus the First Anniversary Payment Amount and (2) the fair market value of the Corresponding New Common Stock (the “Second Anniversary Payment Amount”); provided that the Year 2 Contingent Payment Obligation will be extinguished if the fair market value of the Corresponding New Common Stock is equal to or in excess of $260,000,000 minus the First Anniversary Payment Amount, if any, with respect to the second testing date; and • (iii) at the third testing date, cash or New Common Stock (or a combination of cash and New Common Stock), in the Company’s sole discretion, equal to such Payee’s pro rata share (the “Year 3 Contingent Payment Obligation”) of the lesser of (a) $43,333,333.33 and (b) the difference between (1) $260,000,000 minus the sum of the First Anniversary Payment Amount and the Second Anniversary Payment Amount and (2) the fair market value of the Corresponding New Common Stock (the “Third Anniversary Payment Amount”); provided that the Year 3 Contingent Payment Obligation will be extinguished if the fair market value of the Corresponding New Common Stock is equal to or in excess of $260,000,000 minus (1) the First Anniversary Payment amount, if any and (2) the Second Anniversary Payment Amount, if any, with respect to the third testing date. GUC Contingent Value Rights On the Effective Date, pursuant to the Plan of Reorganization, the Company issued (i) 20,335,491 shares of New Common Stock, to holders of allowed general unsecured claims (the “GUC Equity Distribution”) and (ii) GUC CVRs to holders of allowed general unsecured claims. Within 45 days of the GUC CVR Testing Date (as defined below), the Company will be required to pay to each GUC Payee New Common Stock in an amount equal to the lesser of (i) such GUC Payee’s pro rata share of the New Common Stock with an aggregate value, based on Plan Value, of $7,100,000 and (ii) the difference between (a) the GUC Equity Distribution at Plan Value and (b) the value of the GUC Equity Distribution as implied by the volume weighted average of the closing price of the GUC Equity Distribution during the 60 trading days prior to the GUC CVR Testing Date; provided that, to the extent that the value of the GUC Equity Distribution, as implied by the volume weighted average of the closing price during any 20 trading days over any consecutive 30 trading day period during the GUC CVR Testing Period, is equal to or in excess of the GUC Equity Distribution at Plan Value, the Company shall not owe any amounts to the GUC Payees and the GUC CVRs shall be immediately extinguished. The testing period (the “GUC CVR Testing Period”) began on the Effective Date and will end on the date that is 18 months following the Effective Date (the “GUC CVR Testing Date”). Warrant Agreement On the Effective Date and pursuant to the Plan of Reorganization and the Confirmation Order, the Company entered into a warrant agreement providing for the issuance of 98,313,313 warrants, each exercisable for one share of New Common Stock at an exercise price of $6.81 per share (the “Tranche 1 Warrants”) and (ii) an aggregate of 81,927,898 warrants, each exercisable for one share of New Common Stock at an exercise price of $0.01 per share (the “Tranche 2 Warrants” and, together with the Tranche 1 Warrants, the “Warrants”). Pursuant to the Plan of Reorganization, holders of the Company’s previous common stock received, for each share of the Company’s previous stock held, 0.253244 Tranche 1 Warrants and 0.211037 Tranche 2 Warrants. Each whole Tranche 1 Warrant entitles the registered holder to purchase one whole share of New Common Stock at an exercise price of $6.81 per share (the “Tranche 1 Exercise Price”). Each whole Tranche 2 Warrant entitles the registered holder to purchase one whole share of New Common Stock at an exercise price of $0.01 per share at any time following the time the volume weighted average price per share of New Common Stock equals or exceeds $8.72 per share on each trading day for 20 consecutive trading days (the “Triggering Event”). At March 31, 2024, the Triggering Event for the Tranche 2 Warrants had not occurred. The Tranche 1 Exercise Price and the price per share used to determine a Triggering Event are subject to adjustment for specific events as set forth in the Warrant Agreement. The Tranche 1 Warrants will expire on January 23, 2027, and the Tranche 2 Warrants will expire on January 23, 2029, each at 5:00 p.m., New York City time, or earlier upon the occurrence of certain events as set forth in the Warrant Agreement. The Warrant Agreement provides that the Warrant Agreement, with respect to the Tranche 1 Warrants or Tranche 2 Warrants, may be amended with the prior written consent of holders holding a majority of the shares then issuable upon exercise of the Tranche 1 Warrants or Tranche 2 Warrants then outstanding, as applicable; provided, however, that any amendment or supplement to the Warrant Agreement that would reasonably be expected to materially and adversely affect any right of a holder of Warrants shall require the written consent of such holder. In addition, the consent of each holder of Warrants affected shall be required for any amendment pursuant to which the applicable exercise price would be increased, the number of shares issuable upon exercise of Warrants would be decreased (other than pursuant to adjustments provided in the Warrant Agreement) or the applicable expiration date would be revised to an earlier date; provided, however, that the Company and the Warrant Agent may amend the Warrant Agreement without the consent of holders of Warrants to (i) to cure any ambiguity; (ii) correct any defective provision; or (iii) make any other provisions with respect to matters or questions arising under the Warrant Agreement as long as the new provisions do not adversely affect (other than a de minimis adverse effect) the interest of holders of Warrants. The Warrants may be exercised upon prior written notice of such election, payment of the applicable exercise price (together with any applicable taxes and governmental charges) and, with respect to Warrants held through the book-entry facilities of the Depository (as defined in the Warrant Agreement), surrender of the warrant certificate on or prior to the settlement date. The Tranche 2 Warrants may be exercised on a cashless basis, pursuant to which the holder shall be entitled to receive a number of shares of New Common Stock equal to one share of New Common Stock multiplied by a fraction equal to (x) the fair market value (as of the business day immediately preceding the date on which the exercise notice was delivered) of one share of New Common Stock, minus the applicable exercise price, divided by (y) such fair market value. Holders of Warrants do not have the rights or privileges of holders of New Common Stock or any voting rights until they exercise their Warrants and receive shares of New Common Stock. After the issuance of shares of New Common Stock upon exercise of the Warrants, each holder will be entitled to the same rights as holders of New Common Stock. Pursuant to the Warrant Agreement, holders of Warrants may exercise their Warrants only for a whole number of shares of New Common Stock. If, upon exercise, a holder would be entitled to receive a fractional interest in a share, such fractional interest will be rounded to the next higher whole number of the number of shares of New Common Stock to be issued to the holder. Effective January 24, 2024, the Tranche 1 Warrants and Tranche 2 Warrants began trading on the Nasdaq Global Select Market under the symbols “CORZW” and “CORZZ,” respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 8. FAIR VALUE MEASUREMENTS The Company measures certain assets and liabilities at fair value on a recurring or non-recurring basis in certain circumstances. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. The Company uses observable market data when determining fair value whenever possible and relies on unobservable inputs only when observable market data is not available. Recurring Fair Value Measurements In October 2023, the Company entered into an energy forward purchase contract to fix a specified component of the energy price related to forecasted energy purchases at the Cottonwood 1 facility from November 1, 2023 through May 31, 2024 (the “Energy Derivatives”). The Energy Derivatives are recognized as derivatives in accordance with ASC 815 initially and subsequently measured at fair value with changes in value reflected in Net income (loss). At March 31, 2024 observable Level 2 inputs, such as forward energy prices and discount rates, were available for the energy forward purchase contract. The CVRs, GUC CVRs and Warrants are recognized as derivative liabilities in accordance with ASC 815 initially and subsequently measured at fair value with changes in value reflected in Net income (loss). When these instruments were recognized on the Effective Date, observable market data was not available. At March 31, 2024 observable Level 1 market data was available for the CVRs and Warrants. The following presents the levels of the fair value hierarchy for the Company's derivatives measured at fair value on a recurring basis as of March 31, 2024 (in thousands): March 31, 2024 Fair value hierarchy Level 1 Level 2 Level 3 Fair value Energy derivatives liability: Energy derivatives $ — $ 1,465 $ — $ 1,465 Total energy derivatives liability — 1,465 — 1,465 Contingent value rights liabilities: Contingent value rights 41,427 — — 41,427 GUC contingent value rights — — 3,174 3,174 Total contingent value rights liabilities 41,427 — 3,174 44,601 Warrants liability: Warrants 327,465 — — 327,465 Total warrants liability 327,465 — — 327,465 Total liabilities measured at fair value on a recurring basis $ 368,892 $ — $ 3,174 $ 372,066 Level 2 Recurring Fair Value Measurements The following table summarizes the fair value of the energy forward purchase contract on the Company’s Consolidated Balance Sheets (in thousands): Fair Value (Level 2) Financial statement line item March 31, December 31, Energy forward purchase contract Accrued expenses and other current liabilities $ 1,465 $ 2,262 The Company recorded the following gains/(losses) related to the energy forward purchase contract on the Company’s Consolidated Statements of Operations (in thousands): Three Months Ended March 31, Financial statement line item 2024 2023 Energy forward purchase contract Change in fair value of energy derivatives $ (2,218) $ — Level 3 Recurring Fair Value Measurements The following presents a rollforward of the activity for the GUC CVRs liability measured at fair value on a recurring basis using Level 3 inputs as of March 31, 2024 (in thousands): GUC CVRs (Level 3) Balance at December 31, 2023 $ — Issuances 3,950 Unrealized gains (776) Balance at March 31, 2024 $ 3,174 The CVRs and warrants had no balance at December 31, 2023, on the Effective Date they were measured using Level 3 inputs as no market existed for them at that time. Since the Effective Date active markets have developed for those instruments and the Company uses Level 1 quoted market prices for their valuation at March 31, 2024. All transfers into and out of Level 3 are assumed to occur at the beginning of the quarterly reporting period in which they occur. As of December 31, 2023, there were no Level 3 financial instruments. The fair value of the GUC CVRs was estimated using simulated Company stock price paths in a Monte Carlo simulation model. The inputs into the simulation model are similar to those used in Black-Scholes option models. They include the Company’s stock price and dividend yield, risk-free rate, term and estimated volatility. The estimated volatility is considered to be a significant unobservable input into the simulation model. At March 31, 2024, the valuation technique has not changed during the period since the Effective Date. The following presents significant Level 3 unobservable inputs used to measure the fair value of GUC CVRs as of March 31, 2024 (dollars in thousands): Fair value Unobservable Input Measure GUC contingent value rights $ 3,174 Estimated Volatility 120.0 % There is inherent uncertainty in an estimate of fair value from the use of significant unobservable inputs. An increase in the estimated volatility used in the model would be expected to increase the fair value of the GUC CVRs. Nonrecurring fair value measurements The Company’s non-financial assets, including property, plant and equipment, and intangible assets are measured at estimated fair value on a nonrecurring basis. These assets are adjusted to fair value only when an impairment is recognized, or the underlying asset is held for sale. No non-financial assets were classified as Level 3 as of March 31, 2024 or December 31, 2023. Fair value of financial instruments The Company’s financial instruments, that are not subject to recurring fair value measurements, include cash and cash equivalents, restricted cash, accounts receivable, net, accounts payable, leases, notes payable and certain accrued expenses and other liabilities. Except for the Convertible Notes, the carrying amount of these financial instruments materially approximate their fair values. At March 31, 2024 the fair value of the Convertible Notes using Level 1 active market price was $230.4 million. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 9. COMMITMENTS AND CONTINGENCIES Commitments In October 2023, the Company entered into a purchase agreement to acquire S21 miners with a combined exahash of 2.52 or approximately 12,900 miners from Bitmain for approximately $50.4 million, of which $28.2 million was paid as of March 31, 2024, $15.1 million was satisfied with the use of coupons, and $7.1 million was included in Accrued expenses and other current liabilities on the Company's Consolidated Balance Sheets. As of March 31, 2024, the Company had received approximately 4,790 miners. The remaining miners were received in April 2024. Legal Proceedings —The Company is subject to legal proceedings arising in the ordinary course of business. The Company accrues losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to reasonably estimate the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued and could materially adversely affect the Company’s business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, the Company is unable to estimate reasonably possible losses in excess of any amounts accrued. Purported Shareholder Class Action (“Pang”) On November 14, 2022, Plaintiff Mei Pang filed a purported class-action complaint against Core Scientific, Inc., its former chief executive officer, Michael Levitt, and others in the United States District Court, Western District (Austin) of Texas asserting that the Company violated the Securities and Exchange Act by allegedly failing to disclose to investors that – among other things – the Company was vulnerable to litigation given its decision to pass power costs to its customers, that certain clients had breached their contracts, and that this impacted the Company’s profitability and ability to continue as a going concern. The complaint seeks monetary damages. Core filed a notice of suggestion of bankruptcy stating that its petition for bankruptcy—filed on December 21, 2022—operates as a stay to the continuation of this matter. Plaintiff subsequently withdrew its claims against Core. On April 14, 2023, the Court appointed lead plaintiff for the purported class in Pang, individually and on behalf of a class of claimants, filed proofs of claim against the Company in its Chapter 11 Cases in the United States Bankruptcy Court, Southern District (Houston) of Texas based upon the allegations set forth in Pang and Core filed an objection to the proofs of claim. On December 7, 2023, the United States Bankruptcy Court for the Southern District of Texas in Houston, sustained the Company’s objection to the filed class proof of claim without prejudice to re-file a proof of claim on an individual basis by December 20, 2023; and denied plaintiff’s Motion for Class Treatment under Fed. R. Bankr. P. 7023. No individual proof of claim was filed by any of the class representatives of the purported class action by December 20, 2023, and a separately filed objection to confirmation of Debtors’ Fourth Amended Chapter 11 Plan and Disclosure Statement was overruled by the Bankruptcy Court on January 16, 2024. On January 29, 2024, plaintiff filed a notice of appeal of the order confirming the Company’s Plan of Reorganization. Following Core’s motion to dismiss in the District Court case, the Court dismissed without prejudice the 10(b) claim in its entirety for failure to plead scienter and loss causation and all but a single statement under Section 11 and Section 14 of the Exchange Act. The Court also held that none of the Defendants other than Michael Levitt were control persons under Section 15 (even though Mr. Levitt was not even named as a Defendant under Section 15). Core filed a motion for reconsideration of the Court’s failure to dismiss the remaining Section 11 claim and filed an answer to the Plaintiff’s remaining claim. On April 22, 2024, the Court granted the Company’s motion for reconsideration and dismissed without prejudice all remaining claims contained in the plaintiff’s complaint. Purported Shareholder Class Action (“Ihle”) On July 24, 2023, Plaintiff Brad Ihle filed a purported class action complaint against certain officers and directors of Power & Digital Infrastructure Acquisition Corp. (the former name of the current corporate entity operating our business, or “XPDI”) and XMS Sponsor LLC et al, in the Court of Chancery State of Delaware. The complaint alleges breach of fiduciary duties arising out of the merger of XPDI and the entity that conducted our business operations prior to the merger (“Legacy Core”) and the marketing and solicitation of shareholders pursuant to that merger agreement dated July 20, 2021. Certain of the defendants have notified the Company of their intention to seek defense and indemnification in this matter pursuant to Delaware law and the Company’s bylaws. Employment Claim On September 30, 2022, Harlin Dean, a former executive of Blockcap, Inc. (n/k/a Core Scientific Acquired Mining, LLC) sent a demand letter to the Company, seeking approximately $9.8 million. Along with the demand letter, Mr. Dean enclosed a complaint that had been filed in the 419 th Judicial District Court, Travis County, Texas, which asserted the following causes of action: (1) breach of employment agreement; (2) quantum meruit; (3) promissory estoppel; (4) conversion; (5) declaratory relief; (6) equitable relief/specific performance; (7) imposition of constructive trust; (8) accounting; and (9) attorneys’ fees and costs. According to Mr. Dean, the Company failed to honor the terms of his employment agreement upon his resignation. Following the Company’s filing of the Chapter 11 Cases, Mr. Dean filed proofs of claim in the Chapter 11 Cases alleging the Company breached Mr. Dean’s employment agreement and various equity award agreements. Mr. Dean seeks a total recovery of approximately $8 million. The Debtors filed an objection to Mr. Dean’s proofs of claim on September 19, 2023. Mr. Dean filed a reply in support of his claim and moved for summary judgment on October 19. Adjudication of the validity and value of Mr. Dean’s proof of claim is pending. As a general unsecured creditor under the Plan of Reorganization, any amount determined to be owed to plaintiff will be paid in common shares of the Company as provided in the Plan of Reorganization. Contract Claims GEM Mining 1, LLC, GEM Mining 2, LLC, GEM Mining 2B, LLC, and GEM Mining 4, LLC (together “GEM”) have filed proofs of claim in the Chapter 11 Cases alleging the Company breached its hosting agreements with GEM and are seeking to recover approximately $4.1 million. The Debtors filed an initial objection to GEM’s proofs of claim on May 4, 2023, and filed a supplemental objection on May 6, 2023. GEM filed a response in opposition to Debtors’ objections on September 6, 2023. Additionally, GEM 1 and GEM 4 filed proofs of claim in the Chapter 11 Case asserting approximately $8 million in rejection damages. The Debtors are currently preparing an objection to these claims along with a reply to GEM’s response to the Debtors’ earlier filed objections. As a general unsecured creditor under the Plan of Reorganization, any amount determined to be owed to plaintiff will be paid in common shares of the Company as provided in the Plan of Reorganization. In November 2022, McCarthy Building Companies, Inc. filed a complaint against the Company in the United States District Court for the Eastern District of Texas, alleging breach of contract for failing to pay when due certain payments allegedly owing under a contract for construction entered into between the parties. The case has been stayed as a result of the Company’s filing of a petition for relief under chapter 11 of the United States Bankruptcy Code. On January 18, 2024, the Bankruptcy Court entered the McCarthy Order approving the parties’ agreement to settle all claims and release all liens of McCarthy against the Company. As of March 31, 2024 and December 31, 2023, there were no other material loss contingency accruals for legal matters. Leases —See Note 5 — Leases for additional information. |
STOCKHOLDERS' DEFICIT
STOCKHOLDERS' DEFICIT | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
STOCKHOLDERS' DEFICIT | 10. STOCKHOLDERS' DEFICIT Equity Rights Offering On November 20, 2023, the Company commenced an equity rights offering (the “Equity Rights Offering”) of common shares of the reorganized Company (the “ERO Shares”) in an aggregate amount of $55 million. On the Effective Date, the Company issued 15,648,896 shares on account of the Equity Rights Offering in exchange for the cash proceeds. Also, on November 16, 2023, the Company entered into an agreement (the “Backstop Commitment Letter”) with the parties named therein (the “Commitment Parties”), pursuant to which the Commitment Parties agreed to severally and not jointly backstop $37.1 million of the Equity Rights Offering (the “Backstop Commitment”), subject to the terms and conditions of the Backstop Commitment Letter. The subscription period for the ERO expired on January 5, 2024. The Equity Rights Offering was oversubscribed and the aggregate subscriptions (including over subscriptions) exceeded the number of ERO Shares offered to be purchased as part of the Equity Rights Offering. The results of the Equity Rights Offering rendered the previously arranged Backstop Commitment unnecessary however on the Effective Date the Company issued 2,111,178 New Common Stock shares on account of the underlying backstop fee associated with the Backstop Commitment. Emergence from Bankruptcy As disclosed in Note 1 — Organization and Description of Business, on December 21, 2022, the Debtors filed the Chapter 11 Cases in the Bankruptcy Court seeking relief under Chapter 11 of the Bankruptcy Code. On January 15, 2024, the Debtors filed with the Bankruptcy Court the Plan of Reorganization, and on January 16, 2024, the Bankruptcy Court entered the Confirmation Order. On the Effective Date, the Plan of Reorganization became effective in accordance with its terms and the Debtors emerged from the Chapter 11 Cases. On the Effective Date, in connection with the effectiveness of, and pursuant to the terms of, the Plan of Reorganization and the Confirmation Order, the Company’s common stock outstanding immediately before the Effective Date was canceled and is of no further force or effect, and the new organizational documents of the Company became effective, authorizing the issuance of shares of common stock, par value $0.00001 per share (the “New Common Stock”). In accordance with the foregoing, on the Effective Date, the Company, as reorganized on the Effective Date and in accordance with the Plan of Reorganization, issued the: (i) New Common Stock, (ii) Warrants, (iii) CVRs, (iv) New Secured Convertible Notes, (v) Secured Notes and (vi) the GUC CVRs (each, as defined below). Such securities, rights, or interests were issued in reliance upon the exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) provided by section 1145 of the Bankruptcy Code. On the Effective Date, all equity interests in the Company that existed immediately prior to the Effective Date were cancelled, including the Company’s then-existing common stock and warrants, and the Company issued or caused to be issued the New Common Stock in accordance with the terms of the Plan of Reorganization. On the Effective Date, pursuant to the Plan of Reorganization, the Company issued or held in reserve as issuable: • 176,266,782 shares of New Common Stock; • 4,725,091 shares of New Common Stock held in reserve for disputed claims; • 180,241,211 Warrants, composed of 98,313,313 Tranche 1 Warrants and 81,927,898 Tranche 2 Warrants; • 51,783,625 CVRs; and • GUC CVRs. The 4,725,091 shares of New Common Stock held in reserve for disputed claims will be distributed in settlement of previously disputed claims which become allowed by the Court. On the one year anniversary from the Effective Date, or at such earlier date as all disputed claims are considered resolved, any reserved shares not distributed in settlement of previously disputed claims which become allowed will be issued to holders of the common stock immediately prior to the Effective Date. As these shares will be issued and only the recipient is contingent, the Company accounts for these shares as outstanding in its Consolidated Balance Sheets and in the Basic and Diluted Weighted average shares outstanding in its Consolidated Statements of Operations as of the Effective Date. Shares estimated by the Company to be issued to disputed claims are included in the gain on satisfaction of the GUC claims reported in Reorganization items, net. New Common Stock and Preferred Stock The Company is authorized to issue 10,000,000,000 shares of New Common Stock and 2,000,000,000 shares of preferred stock (the “Preferred Stock”), each having a par value of $0.00001 per share. The rights and preferences of the New Common Stock shall at all times be subject to the rights of the Preferred Stock as may be set forth in one or more certificates of designations filed with the Secretary of State of the State of Delaware from time to time in accordance with the Delaware General Corporation Law and the Charter. The Charter authorized the Board of Directors to provide for the issuance of a share or shares of Preferred Stock in one or more series and to fix for each such series (i) the number of shares constituting such series and the designation of such series, (ii) the voting powers (if any) of the shares of such series, (iii) the powers, preferences, and relative, participating, optional or other special rights of the shares of each such series, and (iv) the qualifications, limitations, and restrictions thereof. The authority of the Board of Directors with respect to the Preferred Stock shall include, but not be limited to, determination of (i) the number of shares constituting any series, (ii) the dividend rate or rates on the shares of any series, (iii) the voting rights, if any, of such series and the number of votes per share, (iv) conversion privileges, (v) whether the shares of any series shall be redeemable, (vi) whether any series shall have a sinking fund for the redemption or purchase of shares of such series, (vii) the rights of the shares in the event of voluntary or involuntary liquidation, dissolution or winding up of the Company and (viii) any other powers, preferences, rights, qualifications, limitations and restrictions of any series. Management Incentive Plan In accordance with the Plan of Reorganization, the Board of Directors adopted an equity-based management incentive plan (the “Management Incentive Plan”), under which up to ten percent of the New Common Stock issued and outstanding, on a fully diluted basis, on the date of the Effective Date may be issued to members of the Company’s management. The Confirmation Order authorized and approved any (i) necessary action with respect to the Management Incentive Plan and (ii) reservation for issuance or share issuances pursuant to the Management Incentive Plan. The Board of Directors adopted the Management Incentive Plan on April 26, 2024. The participants in the Management Incentive Plan, the timing and allocations of the awards to participants, and the other terms and conditions of such awards (including, but not limited to, vesting, exercise prices, base values, hurdles, forfeiture, repurchase rights and transferability) shall be determined by the Board of Directors in its discretion. Stock-Based Compensation Stock-based compensation expense relates primarily to expense for restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and stock options. As of March 31, 2024, we had unvested or unexercised stock-based awards outstanding representing approximately 2.5 million shares of our common stock, consisting of approximately 1.1 million RSAs and RSUs with a weighted average per share fair value of $28.63, and options to purchase approximately 1.5 million shares of our common stock with a weighted average exercise price of $81.91. During the three months ended March 31, 2024, the Company did not grant any stock options, RSUs or RSAs. During the three months ended March 31, 2024, 0.8 million stock options were cancelled, and 1.3 million RSAs and RSUs were forfeited, respectively. Stock-based compensation expense for the three months ended March 31, 2024 and 2023, is included in the Company’s Consolidated Statements of Operations as follows (in thousands): Three Months Ended March 31, 2024 2023 Cost of revenue $ 959 $ 597 Research and development 204 442 Sales and marketing 421 505 General and administrative (2,644) 10,729 Total stock-based compensation expense 1 $ (1,060) $ 12,273 1 Includes reversal of stock-based compensation expense due to $6.1 million in forfeitures incurred during the three months ended March 31, 2024. Stock-based compensation expense excluding the impact of these forfeitures would have been approximately $5.1 million. As of March 31, 2024, total unrecognized stock-based compensation expense related to unvested stock options was immaterial. As of March 31, 2024, the Company had approximately $15.6 million of unrecognized stock-based compensation expense related to RSAs and RSUs, which is expected to be recognized over a weighted average time period of 2.1 years, and an additional $7.1 million of unrecognized stock-based compensation expense related to RSUs for which some or all of the requisite service had been provided under the service conditions but had performance conditions that had not yet been achieved. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 11. INCOME TAXES Current income tax expense represents the amount expected to be reported on the Company’s income tax returns, and deferred tax expense or benefit represents the change in net deferred tax assets and liabilities. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized. The income tax expense and effective income tax rate for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, 2024 2023 (in thousands, except percentages) Income tax expense $ 206 $ 104 Effective income tax rate 0.1 % (36.6) % For the three months ended March 31, 2024, the Company recorded $0.2 million of income tax expense which consisted of discrete state taxes. The Company's estimated annual effective income tax rate without consideration of discrete items is 0.0%, compared to the U.S. federal statutory rate of 21.0% due to projected changes in the valuation allowance (16.7)%, state taxes 0.1%, fair market value adjustments to the warrant liability (6.0)% and other items 1.6%. The Company has a full valuation allowance on its net deferred tax asset as the evidence indicates that it is not more likely than not expected to realize such asset. For the three months ended March 31, 2023, the Company recorded $0.1 million of income tax expense. The Company's estimated annual effective income tax rate was (36.6)%, compared to the U.S. federal statutory rate of 21.0% due to a change in the valuation allowance 43.8%, state taxes (7.1)%, non-deductible transaction costs (58.8)% and other items (0.1)%. The Company has a full valuation allowance on its net deferred tax asset as the evidence indicates that it is not more likely than not expected to realize such asset. |
NET INCOME (LOSS) ATTRIBUTABLE
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | 12. NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings (loss) per share (in thousands, except per share amounts): Three Months Ended March 31, 2024 2023 Numerator: Net income (loss) $ 210,691 (388) Add: Interest expense related to convertible notes, net of tax 8,392 — Diluted net income (loss) $ 219,083 $ (388) Denominator: Weighted average shares outstanding - basic 230,954 375,419 Effect of dilutive securities: Convertible notes 50,738 — Restricted stock units 839 — Weighted average shares outstanding - diluted 282,531 375,419 Net income (loss) per share - basic $ 0.91 $ — Net income (loss) per share - diluted $ 0.78 $ — Pote ntially dilutive securities include securities not included in the calculation of diluted net income (loss) per share because to do so would be anti-dilutive. Potentially dilutive securities are as follows (in common stock equivalent shares, in thousands): Three Months Ended March 31, 2024 2023 Stock options 1,172 22,724 Tranche 1 Warrants 98,313 14,892 Restricted stock and restricted stock units 1,040 40,438 Convertible Notes — 69,997 SPAC Vesting Shares — 1,725 Total potentially dilutive securities 100,525 149,776 |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 13. SEGMENT REPORTING The Company’s operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics and have similar business activities. The Company has two operating segments: “Mining”, consisting of digital asset mining for its own account; and “Hosting”, which consists primarily of its digital infrastructure and third-party hosting business for digital asset mining and specialized GPU cloud compute customers. The Mining segment generates revenue from operating owned computer equipment as part of a pool of users that process transactions conducted on one or more blockchain networks. In exchange for these services, the Company receives digital assets. The hosting business generates revenue through the sale of consumption-based contracts for its hosting services which are recurring in nature. The primary financial measures used by the chief operating decision maker (“CODM”) to evaluate performance and allocate resources are revenue and gross profit. The CODM does not evaluate performance or allocate resources based on segment asset or liability information; accordingly, the Company has not presented a measure of assets by segment. The segments’ accounting policies are the same as those described in the summary of significant accounting policies. The Company excludes certain operating expenses and other expenses from the allocations to operating segments. The following table presents revenue and gross profit by reportable segment for the periods presented (in thousands): Three Months Ended March 31, 2024 2023 Mining Segment (in thousands, except percentages) Digital asset mining revenue $ 149,959 $ 98,026 Cost of digital asset mining 81,564 72,676 Mining gross profit $ 68,395 $ 25,350 Mining gross margin 46 % 26 % Hosting Segment Hosting revenue $ 29,332 $ 22,629 Cost of hosting services 20,081 16,198 Hosting gross profit $ 9,251 $ 6,431 Hosting gross margin 32 % 28 % Consolidated $ 179,291 $ 120,655 Consolidated cost of revenue $ 101,645 $ 88,874 Consolidated gross profit $ 77,646 $ 31,781 Consolidated gross margin 43 % 26 % For the three months ended March 31, 2024 and 2023, cost of revenue included depreciation expense of $27.5 million and $19.9 million, respectively for the Mining segment. For the three months ended March 31, 2024 and 2023, cost of revenue included d epreciation expense of $1.3 million and $0.2 million, respectively for the Hosting segment. Concentrations of Revenue and Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. Credit risk with respect to accounts receivable is concentrated with a small number of customers. The Company places its cash and cash equivalents with major financial institutions, which management assesses to be of high credit quality, in order to limit the exposure to credit risk. As of March 31, 2024 and December 31, 2023, all of the Company’s fixed assets were located in the United States. For the three months ended March 31, 2024 and 2023, all of the Company’s revenue was generated in the United States. For the three months ended March 31, 2024 and 2023, 84% and 81%, respectively, of the Company’s total revenue was generated from digital asset mining of bitcoin from one customer, which is subject to extreme price volatility. For the three months ended March 31, 2024 and 2023, the concentration of customers comprising 10% or more of the Company’s Mining and Hosting segment revenue were as follows: Three Months Ended March 31, Three Months Ended March 31, 2024 2023 2024 2023 Percent of Mining segment revenue: Percent of Hosting segment revenue: Customer G 100 % 100 % N/A N/A F N/A N/A 52 % N/A H N/A N/A 25 % N/A I N/A N/A 10 % N/A A reconciliation of the reportable segment gross profit to loss before income taxes included in the Company’s Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023, is as follows (in thousands): Three Months Ended March 31, 2024 2023 Reportable segment gross profit $ 77,646 $ 31,781 Gain from sales of digital assets 543 1,064 Impairment of digital assets — (1,056) Change in fair value of energy derivatives (2,218) — Losses on disposal of property, plant and equipment (3,820) — Operating expenses: Research and development 1,799 1,415 Sales and marketing 982 1,008 General and administrative 14,143 21,764 Total operating expenses 16,924 24,187 Operating income 55,227 7,602 Non-operating (income) expenses, net: Loss (gain) on debt extinguishment 50 (20,761) Interest expense, net 14,087 157 Reorganization items, net (111,439) 31,559 Change in fair value of warrant and contingent value rights (60,114) — Other non-operating expense (income), net 1,746 (3,069) Total non-operating (income) expenses, net (155,670) 7,886 Income (loss) before income taxes $ 210,897 $ (284) |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | 14. RELATED-PARTY TRANSACTIONS In the ordinary course of business, the Company from time to time has entered into various transactions with related parties. The Company had agreements to provide hosting services to various entities that are managed and invested in by individuals who were directors and executives of Core Scientific during fiscal year 2023. For the three months ended March 31, 2024, there were no related-party transactions. For the three months ended March 31, 2023, the Company recognized hosting revenue of $3.7 million |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income (loss) | $ 210,691 | $ (388) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our consolidated balance sheet as of December 31, 2023, which was derived from our audited consolidated financial statements, and our unaudited interim consolidated financial statements provided herein have been prepared in accordance with the instructions for Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). However, in our opinion, the disclosures made therein are adequate to make the information presented not misleading. We believe the unaudited interim financial statements herein furnished reflect all adjustments which are, in the opinion of management, necessary to present a fair statement of the results for the interim periods presented. All of these adjustments are of a normal recurring nature. The interim consolidated results of operations and cash flows are not necessarily indicative of the consolidated results of operations and cash flows that might be expected for the entire year. These consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. |
Debtor-in Possession | Debtor-in Possession |
Digital Assets | Digital Assets Currently the Company is required by its existing debt agreements to sell bitcoin it earns within ten days of receipt. Sales of digital assets awarded to the Company through its self-mining activities are classified as cash flows from operating activities. In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-08, Intangibles-Goodwill and Other-Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”). ASU 2023-08 is intended to improve the accounting for certain crypto assets by requiring an entity to measure those crypto assets at fair value each reporting period with changes in fair value recognized in net income. The amendments also improve the information provided to investors about an entity’s crypto asset holdings by requiring disclosure about significant holdings, contractual sale restrictions, and changes during the reporting period. ASU 2023-08 is effective for annual and interim reporting periods beginning after December 15, 2024, with early adoption permitted. |
Use of Estimates | Use of Estimates The preparation of the Company’s unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Some of the more significant estimates include assumptions used to estimate the Company’s ability to continue as a going concern, the valuation of digital assets, other intangible assets and property, plant and equipment, the initial measurement of lease liabilities, the fair value of derivative liabilities, and income taxes. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from management’s estimates. |
Performance Obligations -Hosting Segment and Deferred Revenue | Performance Obligations - Hosting Segment The Company’s performance obligations primarily relate to hosting services, which are described below. The Company has performance obligations associated with commitments in customer hosting contracts for future services that have not yet been recognized in the financial statements. As of March 31, 2024, for contracts with original terms that exceed one year (typically ranging from 15 to 24 months), we expect to recognize approximately $58.3 million of revenue in the future related to performance obligations associated with existing hosting contracts. The Company expects to recognize approximately 89% of this amount over the next 12 months and the remainder thereafter. Deferred Revenue The Company records contract liabilities in Deferred revenue on the Consolidated Balance Sheets when cash payments are received in advance of performance and recognizes them as revenue when the performance obligations are satisfied. The Company’s total deferred revenue balance as of March 31, 2024 and December 31, 2023, was $9.3 million and $9.8 million, respectively. In the three months ended March 31, 2024, the Company recognized $6.4 million of revenue that was included in the deferred revenue balance as of the beginning of the year. In the three months ended March 31, 2023, the Company recognized $11.6 million of revenue that was included in the deferred revenue balance as of the beginning of the year. Advanced payments for hosting services are typically recognized in the following month and are generally recognized within one year. |
Convertible and Other Notes Payable | Convertible and Other Notes Payable Convertible and other notes payable (“Notes payable”) are accounted for under ASC 470, Debt (“ASC 470”) are presented at their carrying value, which is their remaining par or face amount net of any related unamortized premium, discount and issuance costs. Notes payable are initially recognized at their present value. When cash proceeds are received for the issuance of Notes payable the proceeds are used to establish their present value. When cash proceeds are not received for the issuance of Notes payable their present value is based on the consideration exchanged. This present value generally will be the Notes payable’s cash flows discounted at a market rate when it is more evident than the noncash consideration exchanged. When the present value of Notes payable on issuance varies from its par or face amount, an original discount or premium results and any related issuance costs are used to determine an effective interest rate. Original premium, discount and issuance costs are amortized using the level effective rate interest method. Amortization is recognized as a component of current interest expense. Notes payable are evaluated at issuance to determine whether or not they have features or terms which would be treated as embedded derivatives that are required to be bifurcated under ASC 815, Derivatives and Hedging (“ASC 815”). At December 31, 2023 and March 31, 2024, Notes payable did not have any embedded derivatives required to be bifurcated. |
Contingent Value Rights Liabilities and Warrant Liabilities | Contingent Value Rights Liabilities As described in Note 7 — Contingent Value Rights and Warrant Liabilities, on the Effective Date, pursuant to the Plan of Reorganization, the Company entered into a contingent value rights agreement (the “Contingent Value Rights Agreement”) which provides for the issuance of the contingent value rights (the “CVRs”) to certain creditors and provides for the issuance of CVRs issued to holders of allowed general unsecured claims (“GUC”) (in such capacity, the “GUC Payees”) (the “GUC CVRs”). The CVRs and GUC CVRs are equity-linked instruments which are either only cash settled or in some instances share settled at the Company’s sole discretion. The Company determined that these equity-linked instruments are not indexed to the Company’s stock and are required to be recognized as liabilities which are, initially and subsequently, measured at fair value with changes in value reflected in Net income (loss). Warrant Liabilities As described in Note 7 — Contingent Value Rights and Warrant Liabilities, on the Effective Date, pursuant to the Plan of Reorganization, holders of the Company’s previous common stock received warrants. The warrants are equity-linked instruments. The Company determined that these equity-linked instruments are not indexed to the Company’s stock and are required to be recognized as liabilities which are, initially and subsequently, measured at fair value with changes in value reflected in Net income (loss). |
Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted In December 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which will improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This update will be effective for the Company during the annual reporting period beginning January 1, 2025. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Under this ASU, public business entities must annually “(1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income [or loss] by the applicable statutory income tax rate).” This update will be effective for the Company during the annual reporting period beginning January 1, 2025. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. There are no other new accounting pronouncements that are expected to have a significant impact on the Company’s unaudited consolidated financial statements. |
Fair Value Measurements | The Company measures certain assets and liabilities at fair value on a recurring or non-recurring basis in certain circumstances. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. The Company uses observable market data when determining fair value whenever possible and relies on unobservable inputs only when observable market data is not available. Recurring Fair Value Measurements In October 2023, the Company entered into an energy forward purchase contract to fix a specified component of the energy price related to forecasted energy purchases at the Cottonwood 1 facility from November 1, 2023 through May 31, 2024 (the “Energy Derivatives”). The Energy Derivatives are recognized as derivatives in accordance with ASC 815 initially and subsequently measured at fair value with changes in value reflected in Net income (loss). At March 31, 2024 observable Level 2 inputs, such as forward energy prices and discount rates, were available for the energy forward purchase contract. The CVRs, GUC CVRs and Warrants are recognized as derivative liabilities in accordance with ASC 815 initially and subsequently measured at fair value with changes in value reflected in Net income (loss). When these instruments were recognized on the Effective Date, observable market data was not available. At March 31, 2024 observable Level 1 market data was available for the CVRs and Warrants. The CVRs and warrants had no balance at December 31, 2023, on the Effective Date they were measured using Level 3 inputs as no market existed for them at that time. Since the Effective Date active markets have developed for those instruments and the Company uses Level 1 quoted market prices for their valuation at March 31, 2024. All transfers into and out of Level 3 are assumed to occur at the beginning of the quarterly reporting period in which they occur. As of December 31, 2023, there were no Level 3 financial instruments. Nonrecurring fair value measurements The Company’s non-financial assets, including property, plant and equipment, and intangible assets are measured at estimated fair value on a nonrecurring basis. These assets are adjusted to fair value only when an impairment is recognized, or the underlying asset is held for sale. No non-financial assets were classified as Level 3 as of March 31, 2024 or December 31, 2023. Fair value of financial instruments |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Digital Currency Assets | The Company’s digital assets have active markets with observable prices and are considered Level 1 fair value measurements. The following table presents a roll-forward of total digital assets for the three months ended March 31, 2024, based on the fair value model under ASU 2023-08, and the three months ended March 31, 2023 (in thousands): March 31, 2024 March 31, 2023 Digital assets, beginning of period $ 2,284 $ 724 Cumulative effect of ASU 2023-08, adopted January 1, 2024 24 — Digital assets, beginning of period, as adjusted 2,308 724 Digital asset mining revenue, net of receivables 1 149,644 98,026 Mining proceeds from shared hosting 8,371 — Proceeds from sales of digital assets (160,777) (98,384) Realized gain from sale of digital assets 543 1,064 Impairment of digital assets — (1,056) Payment of board fee (89) — Other — (374) Digital assets, end of period $ — $ — 1 As of March 31, 2024 and March 31, 2023, there was $2.0 million and $1.2 million, respectively, of digital asset receivable included in prepaid expenses and other current assets on the consolidated balance sheets. |
CHAPTER 11 FILING AND EMERGEN_2
CHAPTER 11 FILING AND EMERGENCE FROM BANKRUPTCY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Reorganizations [Abstract] | |
Schedule of Reorganization Items under Chapter 11 of US Bankruptcy Code | Reorganization items, net incurred as a result of the Chapter 11 Cases presented separately in the accompanying Consolidated Statements of Operations were as follows (in thousands): Three Months Ended March 31, 2024 2023 Professional fees and other bankruptcy related costs $ 21,480 $ 20,107 Negotiated settlements (2,269) — Satisfaction of allowed claims: Extinguishment of secured and other convertible notes (10,831) — Extinguishment of miner equipment lender loans and leases (102,024) — Satisfaction of general unsecured creditor claims (31,167) — Satisfaction of cures and other claims 231 — Total satisfaction of allowed claims (143,791) — Reimbursed claimant professional fees 12,802 — Debtor-in-possession financing costs 339 11,452 Reorganization items, net $ (111,439) $ 31,559 |
Schedule of Liabilities Subject to Compromise | Liabilities subject to compromise consisted of the following (in thousands): December 31, 2023 Accounts payable $ 36,678 Accrued expenses and other current liabilities 20,300 Accounts payable, and accrued expenses and other current liabilities $ 56,978 Debt subject to compromise $ 41,777 Accrued interest on liabilities subject to compromise 580 Leases, debt and accrued interest 42,357 Liabilities subject to compromise $ 99,335 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net as of March 31, 2024 and December 31, 2023 consist of the following (in thousands): March 31, 2024 December 31, 2023 Estimated Useful Lives Land and improvements 1 $ 20,583 $ 21,852 20 years Building and improvements 168,470 164,495 12 to 39 years Mining and network equipment 2 450,921 441,404 1 to 5 years Electrical equipment 3 65,006 64,810 5 to 10 years Other property, plant and equipment 4 2,788 2,935 5 to 7 years Total 707,767 695,496 Less: accumulated depreciation and amortization 5 320,394 293,974 Total 387,373 401,522 Add: Construction in progress 188,596 183,909 Property, plant and equipment, net $ 575,969 $ 585,431 1 Estimated useful life of improvements. Land is not depreciated. 2 Includes finance lease assets of $6.8 million and $46.6 million at March 31, 2024 and December 31, 2023, respectively. 3 Includes finance lease assets of $12.7 million and $12.7 million at March 31, 2024 and December 31, 2023, respectively. 4 Includes finance lease assets of $0.4 million and $0.4 million at March 31, 2024 and December 31, 2023, respectively. 5 Includes accumulated amortization for assets under finance leases of $10.5 million and $43.4 million at March 31, 2024 and December 31, 2023, respectively. |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities | The components of operating and finance leases are presented on the Company’s Consolidated Balance Sheets as follows (in thousands): Financial statement line item March 31, 2024 December 31, 2023 Assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 77,766 $ 7,844 Finance lease right-of-use assets Property, plant and equipment, net $ 9,374 $ 16,268 Liabilities: Operating lease liabilities, Operating lease liabilities, $ 2,619 $ 77 Operating lease liabilities, net Operating lease liabilities, net $ 69,022 $ 1,512 Finance lease liabilities, current portion Finance lease liabilities, current portion $ 3,018 $ 19,771 Finance lease liabilities, net of Finance lease liabilities, net of current portion $ 1,170 $ 35,745 |
Schedule of Lease Cost | The components of lease expense were as follows (in thousands): Three Months Ended March 31, Financial statement line item 2024 2023 Operating lease expense General and administrative expenses $ 1,419 $ 390 Short-term lease expense General and administrative expenses — 365 Finance lease expense: Amortization of right-of-use assets Cost of revenue 334 3,857 Interest on lease liabilities Interest expense, net 1,037 309 Total finance lease expense 1,371 4,166 Total lease expense $ 2,790 $ 4,921 Information relating to the lease term and discount rate is as follows: March 31, 2024 March 31, 2023 Weighted Average Remaining Lease Term (Years) Operating leases 7.1 10.7 Finance leases 1.3 2.1 Weighted Average Discount Rate Operating leases 9.3 % 6.5 % Finance leases 12.3 % 12.4 % |
Schedule of Supplemental Cash Flow Information | Information relating to lease payments is as follows (in thousands): Three Months Ended March 31, 2024 2023 Lease Payments Operating lease payments $ 69 $ 337 Finance lease payments 1 $ 4,628 $ 1,080 1 |
Schedule of Operating Lease Liability, Maturity | The Company’s minimum payments under noncancelable operating and finance leases having initial terms and bargain renewal periods in excess of one year are as follows at March 31, 2024, and thereafter (in thousands): Operating leases Finance leases Remaining 2024 $ 6,094 $ 2,781 2025 13,568 1,862 2026 14,365 3 2027 14,721 — 2028 15,143 — Thereafter 35,997 — Total lease payments 99,888 4,646 Less: imputed interest 28,247 458 Total $ 71,641 $ 4,188 |
Schedule of Finance Lease Liability, Maturity | The Company’s minimum payments under noncancelable operating and finance leases having initial terms and bargain renewal periods in excess of one year are as follows at March 31, 2024, and thereafter (in thousands): Operating leases Finance leases Remaining 2024 $ 6,094 $ 2,781 2025 13,568 1,862 2026 14,365 3 2027 14,721 — 2028 15,143 — Thereafter 35,997 — Total lease payments 99,888 4,646 Less: imputed interest 28,247 458 Total $ 71,641 $ 4,188 |
CONVERTIBLE AND OTHER NOTES P_2
CONVERTIBLE AND OTHER NOTES PAYABLE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable as of March 31, 2024 and December 31, 2023, consist of the following (in thousands): Stated Interest Rate Effective Interest Rates Maturities March 31, 2024 December 31, 2023 Replacement DIP Credit Agreement 1 10.0% 10.0% 2024 $ — $ 4,273 Exit Credit Agreement 9.0% 9.0% 2027 61,200 — Other Convertible Notes 2 10.0% 10.0% 2025 — 322,396 Secured Convertible Notes 3 10.0% 10.0% 2025 — 237,584 Secured Notes 12.5% 12.6% 2028 150,000 — New Secured Convertible Notes 6.0% - 10.0% 10.0% 2029 260,000 — Miner Financing: Blockfi loan 9.7% - 13.1% 10.1% - 13.1% 2023 — 53,913 Blockfi takeback loan 3.0% - 8.0% 11.9% 2029 47,734 — Liberty/Stonebriar loan 10.6% 10.6% 2024 — 6,968 Liberty/Stonebriar takeback loan 3.0% - 8.0% 11.9% 2029 6,211 — ACM note —% 15.0% 2025 5,704 6,519 Mass Mutual Barings loans 9.8% - 13.0% 9.8% - 13.0% 2025 — 63,844 Anchor Labs loan 12.5% 12.5% 2024 — 25,159 Trinity loan 11.0% 11.0% 2024 — 23,356 Equipment and Settlement: Bremer loan 5.5% 5.5% 2027 13,641 18,331 HMC note 5.0% 15.0% 2026 13,347 14,208 Didado note 5.0% 15.0% 2027 12,294 13,000 Dalton note 5.0% 5.0% 2024 4,547 — Harper note 5.0% 15.0% 2026 4,522 4,678 Trilogy note 5.0% 15.0% 2026 2,927 2,927 Unsecured: B. Riley Bridge Notes 7.0% 7.0% 2023 — 41,777 Other: First Insurance note 7.6% 7.6% 2024 640 2,538 Stockholder loan 10.0% 20.0% 2023 — 10,000 Kentucky Note 5.0% 5.0% 2023 — 529 Other 5.0% - 7.7% 7.1% - 15.0% 2024 - 2025 1,246 2,453 Notes payable, prior to reclassification to Liabilities subject to compromise 584,013 854,453 Less: Notes payable in Liabilities subject to compromise 4 — 41,777 Less: Unamortized discounts - post-petition 4,107 4,236 Total notes payable, net 579,906 808,440 Less: current maturities 23,333 124,358 Convertible and other notes payable, net of current portion $ 556,573 $ 684,082 1 Replacement DIP Credit Agreement, see Note 3 — Chapter 11 Filing and Emergence from Bankruptcy for further information. 2 Other Convertible Notes included principal balance at issuance and PIK interest. 3 Secured Convertible Notes included principal balance at issuance and PIK interest. 2 Other Convertible Notes included principal balance at issuance and PIK interest. 1 Replacement DIP Credit Agreement, see Note 3 — Chapter 11 Filing and Emergence from Bankruptcy for further information. 4 In connection with the Company's Chapter 11 Cases, $41.8 million of outstanding notes payable were reclassified to Liabilities subject to compromise in the Company's Consolidated Balance Sheets as of December 31, 2023, at their expected allowed amount. Up to the Petition Date, the Company continued to accrue interest expense in relation to these reclassified debt instruments. As of December 31, 2023, $0.6 million of accrued interest was classified as Liabilities subject to compromise. On the Effective Date, pursuant to the Plan of Reorganization, the Company issued the following debt instruments, which are defined and described in further detail below (in thousands): Principal Balance on the Effective Date Exit Credit Agreement $ 61,200 Secured Notes Indenture $ 150,000 New Secured Convertible Notes Indenture $ 260,000 Miner Equipment Lender Agreements $ 52,947 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Derivative Liability | The following presents the levels of the fair value hierarchy for the Company's derivatives measured at fair value on a recurring basis as of March 31, 2024 (in thousands): March 31, 2024 Fair value hierarchy Level 1 Level 2 Level 3 Fair value Energy derivatives liability: Energy derivatives $ — $ 1,465 $ — $ 1,465 Total energy derivatives liability — 1,465 — 1,465 Contingent value rights liabilities: Contingent value rights 41,427 — — 41,427 GUC contingent value rights — — 3,174 3,174 Total contingent value rights liabilities 41,427 — 3,174 44,601 Warrants liability: Warrants 327,465 — — 327,465 Total warrants liability 327,465 — — 327,465 Total liabilities measured at fair value on a recurring basis $ 368,892 $ — $ 3,174 $ 372,066 |
Schedule of Derivatives Instruments Statements of Balance Sheet and Statement of Operations, Location | The following table summarizes the fair value of the energy forward purchase contract on the Company’s Consolidated Balance Sheets (in thousands): Fair Value (Level 2) Financial statement line item March 31, December 31, Energy forward purchase contract Accrued expenses and other current liabilities $ 1,465 $ 2,262 The Company recorded the following gains/(losses) related to the energy forward purchase contract on the Company’s Consolidated Statements of Operations (in thousands): Three Months Ended March 31, Financial statement line item 2024 2023 Energy forward purchase contract Change in fair value of energy derivatives $ (2,218) $ — |
Schedule of Fair Value of GUC CVRs Liability | The following presents a rollforward of the activity for the GUC CVRs liability measured at fair value on a recurring basis using Level 3 inputs as of March 31, 2024 (in thousands): GUC CVRs (Level 3) Balance at December 31, 2023 $ — Issuances 3,950 Unrealized gains (776) Balance at March 31, 2024 $ 3,174 |
Schedule of Significant Level 3 Unobservable Inputs Used to Measure the Fair Value of GUC CVRs | The following presents significant Level 3 unobservable inputs used to measure the fair value of GUC CVRs as of March 31, 2024 (dollars in thousands): Fair value Unobservable Input Measure GUC contingent value rights $ 3,174 Estimated Volatility 120.0 % |
STOCKHOLDERS' DEFICIT (Tables)
STOCKHOLDERS' DEFICIT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award | Stock-based compensation expense for the three months ended March 31, 2024 and 2023, is included in the Company’s Consolidated Statements of Operations as follows (in thousands): Three Months Ended March 31, 2024 2023 Cost of revenue $ 959 $ 597 Research and development 204 442 Sales and marketing 421 505 General and administrative (2,644) 10,729 Total stock-based compensation expense 1 $ (1,060) $ 12,273 1 Includes reversal of stock-based compensation expense due to $6.1 million in forfeitures incurred during the three months ended March 31, 2024. Stock-based compensation expense excluding the impact of these forfeitures would have been approximately $5.1 million. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) and Effective Income Tax Rate | The income tax expense and effective income tax rate for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, 2024 2023 (in thousands, except percentages) Income tax expense $ 206 $ 104 Effective income tax rate 0.1 % (36.6) % |
NET INCOME (LOSS) ATTRIBUTABL_2
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliations of the Numerators and Denominators Used to Compute Basic and Diluted Earnings (Loss) Per Share | The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings (loss) per share (in thousands, except per share amounts): Three Months Ended March 31, 2024 2023 Numerator: Net income (loss) $ 210,691 (388) Add: Interest expense related to convertible notes, net of tax 8,392 — Diluted net income (loss) $ 219,083 $ (388) Denominator: Weighted average shares outstanding - basic 230,954 375,419 Effect of dilutive securities: Convertible notes 50,738 — Restricted stock units 839 — Weighted average shares outstanding - diluted 282,531 375,419 Net income (loss) per share - basic $ 0.91 $ — Net income (loss) per share - diluted $ 0.78 $ — |
Schedule of Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share | Pote ntially dilutive securities include securities not included in the calculation of diluted net income (loss) per share because to do so would be anti-dilutive. Potentially dilutive securities are as follows (in common stock equivalent shares, in thousands): Three Months Ended March 31, 2024 2023 Stock options 1,172 22,724 Tranche 1 Warrants 98,313 14,892 Restricted stock and restricted stock units 1,040 40,438 Convertible Notes — 69,997 SPAC Vesting Shares — 1,725 Total potentially dilutive securities 100,525 149,776 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Gross Profit by Reporting Segment | The following table presents revenue and gross profit by reportable segment for the periods presented (in thousands): Three Months Ended March 31, 2024 2023 Mining Segment (in thousands, except percentages) Digital asset mining revenue $ 149,959 $ 98,026 Cost of digital asset mining 81,564 72,676 Mining gross profit $ 68,395 $ 25,350 Mining gross margin 46 % 26 % Hosting Segment Hosting revenue $ 29,332 $ 22,629 Cost of hosting services 20,081 16,198 Hosting gross profit $ 9,251 $ 6,431 Hosting gross margin 32 % 28 % Consolidated $ 179,291 $ 120,655 Consolidated cost of revenue $ 101,645 $ 88,874 Consolidated gross profit $ 77,646 $ 31,781 Consolidated gross margin 43 % 26 % |
Schedules of Customer Concentration Risk | For the three months ended March 31, 2024 and 2023, the concentration of customers comprising 10% or more of the Company’s Mining and Hosting segment revenue were as follows: Three Months Ended March 31, Three Months Ended March 31, 2024 2023 2024 2023 Percent of Mining segment revenue: Percent of Hosting segment revenue: Customer G 100 % 100 % N/A N/A F N/A N/A 52 % N/A H N/A N/A 25 % N/A I N/A N/A 10 % N/A |
Schedules of Reconciliation of Reportable Segment Gross Profit to Loss Before Income Taxes | A reconciliation of the reportable segment gross profit to loss before income taxes included in the Company’s Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023, is as follows (in thousands): Three Months Ended March 31, 2024 2023 Reportable segment gross profit $ 77,646 $ 31,781 Gain from sales of digital assets 543 1,064 Impairment of digital assets — (1,056) Change in fair value of energy derivatives (2,218) — Losses on disposal of property, plant and equipment (3,820) — Operating expenses: Research and development 1,799 1,415 Sales and marketing 982 1,008 General and administrative 14,143 21,764 Total operating expenses 16,924 24,187 Operating income 55,227 7,602 Non-operating (income) expenses, net: Loss (gain) on debt extinguishment 50 (20,761) Interest expense, net 14,087 157 Reorganization items, net (111,439) 31,559 Change in fair value of warrant and contingent value rights (60,114) — Other non-operating expense (income), net 1,746 (3,069) Total non-operating (income) expenses, net (155,670) 7,886 Income (loss) before income taxes $ 210,897 $ (284) |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) | 3 Months Ended |
Mar. 31, 2024 data_center segment | |
Product Information [Line Items] | |
Number of operational data center | 7 |
Number of operating segments | segment | 2 |
Georgia | |
Product Information [Line Items] | |
Number of operational data center | 2 |
Kentucky | |
Product Information [Line Items] | |
Number of operational data center | 1 |
North Carolina | |
Product Information [Line Items] | |
Number of operational data center | 1 |
North Dakota | |
Product Information [Line Items] | |
Number of operational data center | 1 |
Texas | |
Product Information [Line Items] | |
Number of operational data center | 2 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Jan. 23, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Net income (loss) | $ 210,691 | $ (388) | |||
Cash and cash equivalents | 98,125 | $ 50,409 | |||
Working capital, net | 5,200 | ||||
Stockholders' deficit | 318,509 | 397,461 | 596,941 | $ 409,346 | |
Digital assets | $ 0 | 0 | 2,284 | 724 | |
Digital assets, period to sell after receipt of payment | 10 days | ||||
Current and non-current deferred revenue balance | $ 9,300 | 9,800 | |||
Deferred revenue recognized | 6,400 | 11,600 | |||
Change in fair value gain | (18,390) | $ 0 | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Stockholders' deficit | (24) | ||||
Digital assets | $ 24 | $ 0 | |||
Contingent value rights | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative warrant liabilities | 44,600 | $ 86,300 | |||
Change in fair value gain | 41,700 | ||||
GUC contingent value rights | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative warrant liabilities | 44,600 | 86,300 | |||
Change in fair value gain | 41,700 | ||||
Warrants liability: | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative warrant liabilities | 327,500 | $ 345,900 | |||
Change in fair value gain | 18,400 | ||||
Hosting revenue | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Commitments not yet recognized | $ 58,300 | ||||
Percentage of commitments expected to be recognized over next 12 months | 89% | ||||
Minimum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Contract with customer, term | 15 months | ||||
Maximum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Contract with customer, term | 24 months |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Digital Currency Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Digital Currency Assets, Current [Roll Forward] | ||
Digital assets, beginning of period | $ 2,284 | $ 724 |
Digital asset mining revenue, net of receivables | 149,644 | 98,026 |
Mining proceeds from shared hosting | 8,371 | 0 |
Proceeds from sales of digital assets | (160,777) | (98,384) |
Realized gain from sale of digital assets | 543 | 1,064 |
Impairment of digital assets | 0 | (1,056) |
Payment of board fee | (89) | 0 |
Other | 0 | (374) |
Digital assets, end of period | 0 | 0 |
Digital currency assets, current receivable | 2,000 | 1,200 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Digital Currency Assets, Current [Roll Forward] | ||
Digital assets, beginning of period | 24 | 0 |
Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Digital Currency Assets, Current [Roll Forward] | ||
Digital assets, beginning of period | $ 2,308 | $ 724 |
CHAPTER 11 FILING AND EMERGEN_3
CHAPTER 11 FILING AND EMERGENCE FROM BANKRUPTCY - Narrative (Details) $ in Millions | Feb. 02, 2023 USD ($) |
Replacement DIP Credit Agreement | |
Reorganization, Chapter 11 [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 70 |
Interest rate per annum | 10% |
Commitment fee percentage | 3.50% |
Exit fee calculation, percentage of loans being repaid, reduced or satisfied | 5% |
Interim DIP Order | |
Reorganization, Chapter 11 [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 35 |
Final DIP Order | |
Reorganization, Chapter 11 [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 35 |
CHAPTER 11 FILING AND EMERGEN_4
CHAPTER 11 FILING AND EMERGENCE FROM BANKRUPTCY - Schedule of Reorganization Items under Chapter 11 of US Bankruptcy Code (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reorganization, Chapter 11 [Line Items] | ||
Professional fees and other bankruptcy related costs | $ 21,480 | $ 20,107 |
Negotiated settlements | (2,269) | 0 |
Total satisfaction of allowed claims | (143,791) | 0 |
Reimbursed claimant professional fees | 12,802 | 0 |
Debtor-in-possession financing costs | 339 | 11,452 |
Reorganization items, net | (111,439) | 31,559 |
Extinguishment of secured and other convertible notes | ||
Reorganization, Chapter 11 [Line Items] | ||
Total satisfaction of allowed claims | (10,831) | 0 |
Extinguishment of miner equipment lender loans and leases | ||
Reorganization, Chapter 11 [Line Items] | ||
Total satisfaction of allowed claims | (102,024) | 0 |
Satisfaction of general unsecured creditor claims | ||
Reorganization, Chapter 11 [Line Items] | ||
Total satisfaction of allowed claims | (31,167) | 0 |
Satisfaction of cures and other claims | ||
Reorganization, Chapter 11 [Line Items] | ||
Total satisfaction of allowed claims | $ 231 | $ 0 |
CHAPTER 11 FILING AND EMERGEN_5
CHAPTER 11 FILING AND EMERGENCE FROM BANKRUPTCY - Schedule of Liabilities Subject to Compromise (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Reorganizations [Abstract] | ||
Accounts payable | $ 36,678 | |
Accrued expenses and other current liabilities | 20,300 | |
Accounts payable, and accrued expenses and other current liabilities | 56,978 | |
Debt subject to compromise | $ 0 | 41,777 |
Accrued interest on liabilities subject to compromise | 580 | |
Leases, debt and accrued interest | 42,357 | |
Liabilities subject to compromise | $ 0 | $ 99,335 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 707,767 | $ 695,496 |
Less accumulated depreciation and amortization | 320,394 | 293,974 |
Property, plant and equipment, net | 575,969 | 585,431 |
Accumulated amortization for assets under finance leases | 10,500 | 43,400 |
Property, Plant, and Equipment Excluding Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 387,373 | 401,522 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 20,583 | 21,852 |
Estimated Useful Lives | 20 years | |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 168,470 | 164,495 |
Building and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 12 years | |
Building and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 39 years | |
Mining and network equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 450,921 | 441,404 |
Finance lease assets | $ 6,800 | 46,600 |
Mining and network equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 1 year | |
Mining and network equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Electrical equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 65,006 | 64,810 |
Finance lease assets | $ 12,700 | 12,700 |
Electrical equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Electrical equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years | |
Other property, plant and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,788 | 2,935 |
Finance lease assets | $ 400 | 400 |
Other property, plant and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Other property, plant and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 7 years | |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 188,596 | $ 183,909 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET - Narrative (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 USD ($) miner | Mar. 31, 2023 USD ($) | Dec. 31, 2023 miner agreement | Oct. 31, 2023 miner | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ | $ 28.8 | $ 20.2 | ||
Antminer S21 Model | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of productive assets acquired | 12,900 | |||
Bitmain | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of active purchase agreements | agreement | 2 | |||
Number of productive assets acquired | 4,790 | |||
Bitmain | S19J XP Miners | ||||
Property, Plant and Equipment [Line Items] | ||||
Purchase agreements, number of productive assets to be acquired | 28,400 | |||
Bitmain | Antminer S21 Model | ||||
Property, Plant and Equipment [Line Items] | ||||
Purchase agreements, number of productive assets to be acquired | 12,900 | |||
Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Purchase agreements, delivery schedule | 1 month | |||
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Purchase agreements, delivery schedule | 12 months | |||
Cost of revenue | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ | $ 28.7 | $ 20.2 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Leases [Abstract] | |
Decrease in lease liability due to lease satisfaction | $ 50.7 |
LEASES - Schedule of Assets and
LEASES - Schedule of Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Operating lease right-of-use assets | $ 77,766 | $ 7,844 |
Finance lease right-of-use assets | $ 9,374 | $ 16,268 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Liabilities: | ||
Operating lease liabilities, current portion | $ 2,619 | $ 77 |
Operating lease liabilities, net of current portion | 69,022 | 1,512 |
Finance lease liabilities, current portion | 3,018 | 19,771 |
Finance lease liabilities, net of current portion | $ 1,170 | $ 35,745 |
LEASES - Schedule of Lease Cost
LEASES - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating lease expense | $ 1,419 | $ 390 |
Short-term lease expense | 0 | 365 |
Finance lease expense: | ||
Amortization of right-of-use assets | 334 | 3,857 |
Interest on lease liabilities | 1,037 | 309 |
Total finance lease expense | 1,371 | 4,166 |
Total lease expense | $ 2,790 | $ 4,921 |
LEASES - Schedule of Lease Term
LEASES - Schedule of Lease Term and Discount Rate (Details) | Mar. 31, 2024 | Mar. 31, 2023 |
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term | 7 years 1 month 6 days | 10 years 8 months 12 days |
Finance lease, weighted average remaining lease term | 1 year 3 months 18 days | 2 years 1 month 6 days |
Operating lease, weighted average discount rate | 9.30% | 6.50% |
Finance lease, weighted average discount rate | 12.30% | 12.40% |
LEASES - Schedule of Supplement
LEASES - Schedule of Supplemental Cash Flow Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 23, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | |||
Operating lease payments | $ 69 | $ 337 | |
Finance lease payments | $ 4,628 | $ 1,080 | |
Finance lease liability, amount restated | $ 4,600 | ||
Finance lease, cure payments | $ 3,600 |
LEASES - Schedule of Lease Liab
LEASES - Schedule of Lease Liability, Maturity (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Operating leases | |
Remaining 2024 | $ 6,094 |
2025 | 13,568 |
2026 | 14,365 |
2027 | 14,721 |
2028 | 15,143 |
Thereafter | 35,997 |
Total lease payments | 99,888 |
Less: imputed interest | 28,247 |
Total | 71,641 |
Finance leases | |
Remaining 2024 | 2,781 |
2025 | 1,862 |
2026 | 3 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total lease payments | 4,646 |
Less: imputed interest | 458 |
Total | $ 4,188 |
CONVERTIBLE AND OTHER NOTES P_3
CONVERTIBLE AND OTHER NOTES PAYABLE - Schedule of Notes Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jan. 24, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | |||
Notes payable in Liabilities subject to compromise | $ 0 | $ 41,777 | |
Accrued interest on liabilities subject to compromise | 580 | ||
Notes Payable | |||
Debt Instrument [Line Items] | |||
Notes payable, prior to reclassification to Liabilities subject to compromise | 584,013 | 854,453 | |
Less: Unamortized discounts - post-petition | 4,107 | 4,236 | |
Total notes payable, net | 579,906 | 808,440 | |
Less: current maturities | 23,333 | 124,358 | |
Convertible and other notes payable, net of current portion | $ 556,573 | 684,082 | |
Replacement DIP Credit Agreement | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 10% | ||
Effective Interest Rates | 10% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 0 | 4,273 | |
Exit Credit Agreement | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 9% | ||
Effective Interest Rates | 9% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 61,200 | 0 | |
Other Convertible Notes | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 10% | ||
Effective Interest Rates | 10% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 0 | 322,396 | |
Secured Convertible Notes | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 10% | ||
Effective Interest Rates | 10% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 0 | 237,584 | |
Secured Notes | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 12.50% | ||
Effective Interest Rates | 12.60% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 150,000 | 0 | |
New Secured Convertible Notes | Notes Payable | |||
Debt Instrument [Line Items] | |||
Effective Interest Rates | 10% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 260,000 | 0 | |
New Secured Convertible Notes | Notes Payable | Minimum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 6% | ||
New Secured Convertible Notes | Notes Payable | Maximum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 10% | ||
Blockfi loan | Notes Payable | |||
Debt Instrument [Line Items] | |||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 0 | 53,913 | |
Blockfi loan | Notes Payable | Minimum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 9.70% | ||
Effective Interest Rates | 10.10% | ||
Blockfi loan | Notes Payable | Maximum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 13.10% | ||
Effective Interest Rates | 13.10% | ||
Blockfi takeback loan | Notes Payable | |||
Debt Instrument [Line Items] | |||
Effective Interest Rates | 11.90% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 47,734 | 0 | |
Blockfi takeback loan | Notes Payable | Minimum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 3% | ||
Blockfi takeback loan | Notes Payable | Maximum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 8% | ||
Liberty/Stonebriar loan | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 10.60% | ||
Effective Interest Rates | 10.60% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 0 | 6,968 | |
Liberty/Stonebriar takeback loan | Notes Payable | |||
Debt Instrument [Line Items] | |||
Effective Interest Rates | 11.90% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 6,211 | 0 | |
Liberty/Stonebriar takeback loan | Notes Payable | Minimum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 3% | ||
Liberty/Stonebriar takeback loan | Notes Payable | Maximum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 8% | ||
ACM note | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 0% | ||
Effective Interest Rates | 15% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 5,704 | 6,519 | |
Mass Mutual Barings loans | Notes Payable | |||
Debt Instrument [Line Items] | |||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 0 | 63,844 | |
Mass Mutual Barings loans | Notes Payable | Minimum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 9.80% | ||
Effective Interest Rates | 9.80% | ||
Mass Mutual Barings loans | Notes Payable | Maximum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 13% | ||
Effective Interest Rates | 13% | ||
Anchor Labs loan | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 12.50% | ||
Effective Interest Rates | 12.50% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 0 | 25,159 | |
Trinity loan | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 11% | ||
Effective Interest Rates | 11% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 0 | 23,356 | |
Bremer loan | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 5.50% | ||
Effective Interest Rates | 5.50% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 13,641 | 18,331 | |
HMC note | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 5% | ||
Effective Interest Rates | 15% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 13,347 | 14,208 | |
Didado note | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 5% | ||
Effective Interest Rates | 15% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 12,294 | 13,000 | |
Dalton note | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 5% | 5% | |
Effective Interest Rates | 5% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 4,547 | 0 | |
Harper note | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 5% | ||
Effective Interest Rates | 15% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 4,522 | 4,678 | |
Trilogy note | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 5% | ||
Effective Interest Rates | 15% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 2,927 | 2,927 | |
B. Riley Bridge Notes | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 7% | ||
Effective Interest Rates | 7% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 0 | 41,777 | |
First Insurance note | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 7.60% | ||
Effective Interest Rates | 7.60% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 640 | 2,538 | |
Stockholder loan | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 10% | ||
Effective Interest Rates | 20% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 0 | 10,000 | |
Kentucky Note | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 5% | ||
Effective Interest Rates | 5% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 0 | 529 | |
Other | Notes Payable | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 5% | ||
Notes payable, prior to reclassification to Liabilities subject to compromise | $ 1,246 | $ 2,453 | |
Other | Notes Payable | Minimum | |||
Debt Instrument [Line Items] | |||
Effective Interest Rates | 7.10% | ||
Other | Notes Payable | Maximum | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 7.70% | ||
Effective Interest Rates | 15% |
CONVERTIBLE AND OTHER NOTES P_4
CONVERTIBLE AND OTHER NOTES PAYABLE - Narrative (Details) $ in Millions | Jan. 04, 2024 USD ($) | Mar. 31, 2024 loan | Jan. 24, 2024 USD ($) | Jan. 23, 2024 USD ($) |
Debt Instrument [Line Items] | ||||
Number of loans exchanged | loan | 2 | |||
Debt, amount restated | $ 15 | |||
Dalton note | Notes Payable | ||||
Debt Instrument [Line Items] | ||||
Note payable face amount | $ 9.1 | |||
Interest rate per annum | 5% | 5% | ||
B Riley Financial | DIP Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Pre-paid the outstanding balance | $ 4.5 | |||
Exit fees | $ 0.2 |
CONVERTIBLE AND OTHER NOTES P_5
CONVERTIBLE AND OTHER NOTES PAYABLE - Schedule of Debt Instrument (Details) $ in Thousands | Jan. 23, 2024 USD ($) |
Exit Credit Agreement | Line of Credit | |
Debt Instrument [Line Items] | |
Note payable face amount | $ 61,200 |
Senior Secured Notes Due 2028 [Member] | Issuance of secured notes, net of discount | |
Debt Instrument [Line Items] | |
Note payable face amount | 150,000 |
New Secured Convertible Notes | Convertible Notes | |
Debt Instrument [Line Items] | |
Note payable face amount | 260,000 |
Issuance of miner equipment lender facility loans | Issuance of secured notes, net of discount | |
Debt Instrument [Line Items] | |
Note payable face amount | $ 52,947 |
CONVERTIBLE AND OTHER NOTES P_6
CONVERTIBLE AND OTHER NOTES PAYABLE - Exit Credit Agreement (Details) - Line of Credit $ in Thousands | Jan. 23, 2024 USD ($) day |
Exit Credit Agreement | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 80,000 |
Note payable face amount | $ 61,200 |
Exit Credit Agreement | Exit Lenders | |
Debt Instrument [Line Items] | |
Interest rate per annum | 9% |
Exit facility amortizes in equal quarterly installment | $ 1,250 |
Additional interest rate in the event of debt default | 2% |
Debt instrument, number of business days after events of default | day | 3 |
Exit Credit Agreement, Term Loan | Exit Lenders | Issuance of secured notes, net of discount | |
Debt Instrument [Line Items] | |
Note payable face amount | $ 40,000 |
Exit Credit Agreement, Initial Term Loan | Exit Lenders | Issuance of secured notes, net of discount | |
Debt Instrument [Line Items] | |
Note payable face amount | 20,000 |
Exit Credit Agreement, Delayed-Draw Term Loan | Exit Lenders | Issuance of secured notes, net of discount | |
Debt Instrument [Line Items] | |
Note payable face amount | 20,000 |
Exit Credit Agreement, Balance from Convertible Notes | Exit Lenders | Issuance of secured notes, net of discount | |
Debt Instrument [Line Items] | |
Note payable face amount | $ 40,000 |
CONVERTIBLE AND OTHER NOTES P_7
CONVERTIBLE AND OTHER NOTES PAYABLE - Secured Notes Indenture (Details) - Senior Secured Notes Due 2028 [Member] - Issuance of secured notes, net of discount $ in Thousands | Jan. 23, 2024 USD ($) day |
Debt Instrument [Line Items] | |
Note payable face amount | $ 150,000 |
Interest rate per annum | 12.50% |
Debt instrument, number of business days after events of default | day | 3 |
Present value of future cash flows | $ 149,500 |
Interest Rate Scenario, Period One | |
Debt Instrument [Line Items] | |
Required premium, percentage of the outstanding principal amount | 1% |
Interest Rate Scenario, Period Two | |
Debt Instrument [Line Items] | |
Required premium, percentage of the outstanding principal amount | 2% |
Interest Rate Scenario, Period Three | |
Debt Instrument [Line Items] | |
Required premium, percentage of the outstanding principal amount | 3% |
CONVERTIBLE AND OTHER NOTES P_8
CONVERTIBLE AND OTHER NOTES PAYABLE - New Secured Convertible Notes Indenture (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jan. 23, 2024 USD ($) day $ / shares | Mar. 31, 2024 USD ($) | |
Debt Instrument [Line Items] | ||
Conversion premium on the issuance of the New Secured Convertible Notes | $ 33,202 | |
Additional Paid-In Capital | ||
Debt Instrument [Line Items] | ||
Conversion premium on the issuance of the New Secured Convertible Notes | $ 33,202 | |
New Secured Convertible Notes | Convertible Notes | ||
Debt Instrument [Line Items] | ||
Note payable face amount | $ 260,000 | |
Interest payable, threshold consecutive trading days | day | 20 | |
Debt instrument conversion term, number of business days prior to applicable interest payment date | day | 3 | |
Convertible, conversion ratio (in shares) | 0.17148 | |
Debt instrument, convertible price (in dollars per share) | $ / shares | $ 5.8317 | |
Convertible, threshold percentage of stock price trigger | 133.60% | |
Debt instrument, adjusted convertible price (in dollars per share) | $ / shares | $ 7.79 | |
Present value of future cash flows | $ 293,200 | |
Debt instrument, number of business days after events of default | day | 3 | |
New Secured Convertible Notes | Convertible Notes | Interest Rate Scenario, Option One | ||
Debt Instrument [Line Items] | ||
Interest payable in cash | 10% | |
New Secured Convertible Notes | Convertible Notes | Interest Rate Scenario, Option Two | ||
Debt Instrument [Line Items] | ||
Interest payable in cash | 6% | |
Interest stock payable | 6% |
CONVERTIBLE AND OTHER NOTES P_9
CONVERTIBLE AND OTHER NOTES PAYABLE - Miner Equipment Lender Agreements (Details) - Issuance of miner equipment lender facility loans - Issuance of secured notes, net of discount | Jan. 23, 2024 USD ($) day |
Debt Instrument [Line Items] | |
Percentage of principal amount received to each holders | 80% |
Debt instrument, collateral amount (up to) | $ | $ 18,204,559 |
Interest Rate Scenario, with No Election Notice, Period One | |
Debt Instrument [Line Items] | |
Interest rate per annum | 13% |
Interest payable in cash | 3% |
Interest payable paid in kind | 10% |
Interest Rate Scenario, with Election Notice, Period One | |
Debt Instrument [Line Items] | |
Written notice issuance, days before due date | day | 5 |
Interest Rate Scenario, with Election Notice, Period One, Option One | |
Debt Instrument [Line Items] | |
Interest rate per annum | 12% |
Interest payable in cash | 5% |
Interest payable paid in kind | 7% |
Interest Rate Scenario, with Election Notice, Period One, Option Two | |
Debt Instrument [Line Items] | |
Interest payable in cash | 8% |
Interest Rate Scenario, Period Two | |
Debt Instrument [Line Items] | |
Interest payable in cash | 10% |
Interest Rate Scenario, with Event of Default | |
Debt Instrument [Line Items] | |
Additional interest rate in the event of debt default | 2% |
CONTINGENT VALUE RIGHTS AND W_2
CONTINGENT VALUE RIGHTS AND WARRANT LIABILITIES - Contingent Value Right Agreement (Details) | Jan. 23, 2024 USD ($) shares |
Temporary Equity [Line Items] | |
Warrant outstanding (in shares) | shares | 180,241,211 |
CVR, amount payable, maximum amount | $ | $ 43,333,333.33 |
CVR, threshold amount for calculation of payment | $ | $ 260,000,000 |
Contingent value rights | |
Temporary Equity [Line Items] | |
Warrant outstanding (in shares) | shares | 51,783,625 |
CONTINGENT VALUE RIGHTS AND W_3
CONTINGENT VALUE RIGHTS AND WARRANT LIABILITIES - GUC Contingent Value Rights (Details) | Jan. 23, 2024 USD ($) day shares |
Temporary Equity [Line Items] | |
CVR, amount payable, maximum amount | $ | $ 43,333,333.33 |
GUC contingent value rights | |
Temporary Equity [Line Items] | |
Contingent value rights, payable term, period following testing date | 45 days |
GUC contingent value rights , weighted average closing price, threshold period, prior to testing | day | 60 |
GUC contingent value rights , weighted average closing price, threshold period | day | 20 |
CVR, weighted average price period | 30 days |
Contingent value rights, testing period | 18 months |
Common Stock | |
Temporary Equity [Line Items] | |
Stock issued during period (in shares) | shares | 176,266,782 |
Common Stock | GUC contingent value rights | |
Temporary Equity [Line Items] | |
CVR, amount payable, maximum amount | $ | $ 7,100,000 |
Holders of Allowed General Unsecured Claims | Common Stock | |
Temporary Equity [Line Items] | |
Stock issued during period (in shares) | shares | 20,335,491 |
CONTINGENT VALUE RIGHTS AND W_4
CONTINGENT VALUE RIGHTS AND WARRANT LIABILITIES - Warrant Agreement (Details) | Jan. 23, 2024 day $ / shares shares |
Temporary Equity [Line Items] | |
Warrant outstanding (in shares) | 180,241,211 |
Warrant Tranche 1 | |
Temporary Equity [Line Items] | |
Warrant outstanding (in shares) | 98,313,313 |
Common stock issued per warrant exercised (in shares) | 1 |
Exercise price of warrants (in dollars per share) | $ / shares | $ 6.81 |
Common stock issued per warrant exercised (in shares) | 0.253244 |
Warrant Tranche 1 | Common Stock | |
Temporary Equity [Line Items] | |
Common stock issued per warrant exercised (in shares) | 1 |
Warrant Tranche 2 | |
Temporary Equity [Line Items] | |
Warrant outstanding (in shares) | 81,927,898 |
Common stock issued per warrant exercised (in shares) | 1 |
Exercise price of warrants (in dollars per share) | $ / shares | $ 0.01 |
Common stock issued per warrant exercised (in shares) | 0.211037 |
Redemption of warrants or rights, stock price trigger (in dollars per share) | $ / shares | $ 8.72 |
Threshold trading days following the date on which the notice of redemption is sent | day | 20 |
Warrant Tranche 2 | Common Stock | |
Temporary Equity [Line Items] | |
Common stock issued per warrant exercised (in shares) | 1 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Derivative Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | $ 372,066 | |
Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 368,892 | |
Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 0 | |
Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 3,174 | |
Energy derivatives | Level 2 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 1,465 | $ 2,262 |
Energy derivatives | Fair Value, Recurring | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 1,465 | |
Energy derivatives | Fair Value, Recurring | Level 1 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 0 | |
Energy derivatives | Fair Value, Recurring | Level 2 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 1,465 | |
Energy derivatives | Fair Value, Recurring | Level 3 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 0 | |
Total Contingent Value Right Liabilities | Fair Value, Recurring | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 44,601 | |
Total Contingent Value Right Liabilities | Fair Value, Recurring | Level 1 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 41,427 | |
Total Contingent Value Right Liabilities | Fair Value, Recurring | Level 2 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 0 | |
Total Contingent Value Right Liabilities | Fair Value, Recurring | Level 3 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 3,174 | |
Contingent value rights | Fair Value, Recurring | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 41,427 | |
Contingent value rights | Fair Value, Recurring | Level 1 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 41,427 | |
Contingent value rights | Fair Value, Recurring | Level 2 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 0 | |
Contingent value rights | Fair Value, Recurring | Level 3 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 0 | |
GUC contingent value rights | Level 3 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 3,174 | |
GUC contingent value rights | Fair Value, Recurring | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 3,174 | |
GUC contingent value rights | Fair Value, Recurring | Level 1 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 0 | |
GUC contingent value rights | Fair Value, Recurring | Level 2 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 0 | |
GUC contingent value rights | Fair Value, Recurring | Level 3 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 3,174 | |
Warrants liability: | Fair Value, Recurring | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 327,465 | |
Warrants liability: | Fair Value, Recurring | Level 1 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 327,465 | |
Warrants liability: | Fair Value, Recurring | Level 2 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | 0 | |
Warrants liability: | Fair Value, Recurring | Level 3 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | $ 0 |
FAIR VALUE MEASUREMENTS - Deriv
FAIR VALUE MEASUREMENTS - Derivative Balance Sheet Location (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Energy derivatives | Level 2 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative warrant liability, fair value | $ 1,465 | $ 2,262 |
FAIR VALUE MEASUREMENTS - Der_2
FAIR VALUE MEASUREMENTS - Derivative Income Statement Location (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Change in fair value of energy derivatives | $ (2,218) | $ 0 |
Energy derivatives | Level 2 | Derivative Financial Instruments, Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Change in fair value of energy derivatives | $ (2,218) | $ 0 |
FAIR VALUE MEASUREMENTS - Activ
FAIR VALUE MEASUREMENTS - Activity of Convertible Notes Measured at Fair Value (Details) - Level 3 - GUC contingent value rights - Derivative Financial Instruments, Liabilities $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair value, beginning balance | $ 0 |
Issuances | 3,950 |
Unrealized gains | (776) |
Fair value, ending balance | $ 3,174 |
FAIR VALUE MEASUREMENTS - Signi
FAIR VALUE MEASUREMENTS - Significant Level 3 Unobservable Inputs Used to Measure the Fair Value of GUC CVRs (Details) - Level 3 - GUC contingent value rights - Derivative Financial Instruments, Liabilities $ in Thousands | Mar. 31, 2024 USD ($) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Derivative warrant liability, fair value | $ 3,174 |
Estimated Volatility | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Derivative liability, measurement input | 1.200 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of the convertible notes | $ 230.4 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | 3 Months Ended | |||
Sep. 06, 2023 USD ($) | Sep. 30, 2022 USD ($) | Oct. 31, 2023 USD ($) miner | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | $ 0 | $ 0 | |||
Demand Letter By Harlin Dean, Employment Claim Filed | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages sought value | $ 9,800,000 | ||||
Proof of Claim By Harlin Dean, Employment Claim Filed | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages sought value | $ 8,000,000 | ||||
Proof of Claim By GEM, Contract Claim Filed | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages sought value | $ 4,100,000 | ||||
Damages sought, rejection damage | $ 8,000,000 | ||||
Antminer S21 Model | |||||
Loss Contingencies [Line Items] | |||||
Number of productive assets acquired | miner | 12,900 | ||||
Expected consideration to be transferred | $ 50,400,000 | ||||
Deposit paid | 28,200,000 | ||||
Payments To acquire assets with coupons | 15,100,000 | ||||
Asset acquisition, included in accrued expenses and other current liabilities | $ 7,100,000 |
STOCKHOLDERS' DEFICIT - Equity
STOCKHOLDERS' DEFICIT - Equity Rights Offering and Emergence from Bankruptcy (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 23, 2024 | Nov. 20, 2023 | Nov. 16, 2023 | Mar. 31, 2024 | Dec. 31, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||
Common stock, shares authorized (in shares) | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | ||
Common stock shares reserved for future issuance (in shares) | 4,725,091 | ||||
Warrant or right outstanding (in shares) | 180,241,211 | ||||
Warrant Tranche 1 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrant or right outstanding (in shares) | 98,313,313 | ||||
Warrant Tranche 2 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrant or right outstanding (in shares) | 81,927,898 | ||||
Contingent value rights | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrant or right outstanding (in shares) | 51,783,625 | ||||
Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.00001 | ||||
Stock issued during period (in shares) | 176,266,782 | ||||
Holders of Equity Rights Offering | ERO Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity right offering, amount | $ 55 | ||||
Backstop amount | $ 37.1 | ||||
Holders of Equity Rights Offering | ERO Shares | Equity Rights Offering | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Sale of stock, number of shares issued (in shares) | 15,648,896 | ||||
Holders of Equity Rights Offering | New Common Stock | Equity Rights Offering | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Sale of stock, number of shares issued (in shares) | 2,111,178 |
STOCKHOLDERS' DEFICIT - New Com
STOCKHOLDERS' DEFICIT - New Common Stock and Preferred Stock (Details) - $ / shares | Mar. 31, 2024 | Jan. 23, 2024 | Dec. 31, 2023 |
Equity [Abstract] | |||
Common stock, shares authorized (in shares) | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 |
Preferred stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 | $ 0.00001 |
STOCKHOLDERS' DEFICIT - Managem
STOCKHOLDERS' DEFICIT - Management Incentive Plan (Details) | Jan. 23, 2024 |
Equity [Abstract] | |
Management incentive plan, percent of stock issuable | 10% |
STOCKHOLDERS' DEFICIT - Stock-B
STOCKHOLDERS' DEFICIT - Stock-Based Compensation Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of common shares available for grant, outstanding (in shares) | 2,500,000 |
Nonvested RSUs (in shares) | 1,100,000 |
Weighted average fair value of RSAs and RSUs (in dollars per share) | $ / shares | $ 28.63 |
Common shares purchased for award (in shares) | 1,500,000 |
Weighted average price of shares purchased (in dollars per share) | $ / shares | $ 81.91 |
Options granted (in shares) | 0 |
RSUs or RSAs granted (in shares) | 0 |
Stock options cancelled (in shares) | 800,000 |
RSUs or RSAs forfeited (in shares) | 1,300,000 |
Restricted Stock Units and Restricted Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSUs and RSAs, unrecognized share-based compensation expense | $ | $ 15.6 |
Period for recognition | 2 years 1 month 6 days |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSUs and RSAs, unrecognized share-based compensation expense | $ | $ 7.1 |
STOCKHOLDERS' DEFICIT - Schedul
STOCKHOLDERS' DEFICIT - Schedule of Share-based Compensation Arrangements by Share-based Payment Award (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ (1,060) | $ 12,273 |
Share-based payment arrangement, share issued value, forfeited | 6,100 | |
Share-based payment arrangement, share issued value, before forfeiture | 5,100 | |
Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 959 | 597 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 204 | 442 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 421 | 505 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ (2,644) | $ 10,729 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Expense (Benefit) and Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 206 | $ 104 |
Effective income tax rate | 0.10% | (36.60%) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 206 | $ 104 |
Estimated annual effective income tax rate without discrete items | 0% | |
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance | (16.70%) | 43.80% |
Effective income tax rate reconciliation, state income taxes, percent | 0.10% | (7.10%) |
Effective income tax rate reconciliation, adjustments to the warrant liability | (6.00%) | |
Effective income tax rate reconciliation, other adjustment | 1.60% | (0.10%) |
Effective income tax rate | 0.10% | (36.60%) |
Effective income tax rate reconciliation, nondeductible expense, transaction cost | (58.80%) |
NET INCOME (LOSS) ATTRIBUTABL_3
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income (loss) | $ 210,691 | $ (388) |
Add: Interest expense related to convertible notes, net of tax | 8,392 | 0 |
Diluted net income (loss) | $ 219,083 | $ (388) |
Weighted average shares outstanding – basic (in shares) | 230,954 | 375,419 |
Effect of dilutive securities: | ||
Weighted average shares outstanding - diluted (in shares) | 282,531 | 375,419 |
Net income (loss) per share - basic (in dollars per share) | $ 0.91 | $ 0 |
Net income (loss) per share - diluted (in dollars per share) | $ 0.78 | $ 0 |
Convertible Notes | ||
Effect of dilutive securities: | ||
Dilutive effect of securities (in shares) | 50,738 | 0 |
Restricted stock units | ||
Effect of dilutive securities: | ||
Dilutive effect of securities (in shares) | 839 | 0 |
NET INCOME (LOSS) ATTRIBUTABL_4
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS - Schedule of Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of net loss per share (in shares) | 100,525 | 149,776 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of net loss per share (in shares) | 1,172 | 22,724 |
Tranche 1 Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of net loss per share (in shares) | 98,313 | 14,892 |
Restricted stock and restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of net loss per share (in shares) | 1,040 | 40,438 |
Convertible Notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of net loss per share (in shares) | 0 | 69,997 |
SPAC Vesting Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of net loss per share (in shares) | 0 | 1,725 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 2 | |
Mining Segment | Revenue Benchmark | Indefinite-Lived Intangible Asset Concentration Risk | Bitcoin | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 84% | 81% |
Operating Segments | Mining Segment | ||
Segment Reporting Information [Line Items] | ||
Cost of revenue, depreciation expense | $ 27.5 | $ 19.9 |
Operating Segments | Hosting Segment | ||
Segment Reporting Information [Line Items] | ||
Cost of revenue, depreciation expense | $ 1.3 | $ 0.2 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Revenue and Gross Profit by Reporting Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 179,291 | $ 120,655 |
Cost of revenue | 101,645 | 88,874 |
Gross profit | $ 77,646 | $ 31,781 |
Gross margin | 43% | 26% |
Digital asset mining | ||
Segment Reporting Information [Line Items] | ||
Cost of revenue | $ 81,564 | $ 72,676 |
Hosting revenue | ||
Segment Reporting Information [Line Items] | ||
Cost of revenue | 20,081 | 16,198 |
Mining Segment | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Gross profit | $ 68,395 | $ 25,350 |
Gross margin | 46% | 26% |
Mining Segment | Digital asset mining | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 149,959 | $ 98,026 |
Cost of revenue | 81,564 | 72,676 |
Hosting Segment | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Gross profit | $ 9,251 | $ 6,431 |
Gross margin | 32% | 28% |
Hosting Segment | Hosting revenue | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 29,332 | $ 22,629 |
Cost of revenue | $ 20,081 | $ 16,198 |
SEGMENT REPORTING - Schedule _2
SEGMENT REPORTING - Schedule of Customer Concentration Risk (Details) - Revenue from Contract with Customer, Segment Benchmark - Customer Concentration Risk | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
G | Mining Segment | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100% | 100% |
F | Hosting Segment | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 52% | |
H | Hosting Segment | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 25% | |
I | Hosting Segment | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10% |
SEGMENT REPORTING - Schedules o
SEGMENT REPORTING - Schedules of Reconciliation of Reportable Segment Gross Profit to Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting [Abstract] | ||
Reportable segment gross profit | $ 77,646 | $ 31,781 |
Gain from sales of digital assets | 543 | 1,064 |
Impairment of digital assets | 0 | (1,056) |
Change in fair value of energy derivatives | (2,218) | 0 |
Losses on disposal of property, plant and equipment | (3,820) | 0 |
Operating expenses: | ||
Research and development | 1,799 | 1,415 |
Sales and marketing | 982 | 1,008 |
General and administrative | 14,143 | 21,764 |
Total operating expenses | 16,924 | 24,187 |
Operating income | 55,227 | 7,602 |
Non-operating (income) expenses, net: | ||
Loss (gain) on debt extinguishment | 50 | (20,761) |
Interest expense, net | 14,087 | 157 |
Reorganization items, net | (111,439) | 31,559 |
Change in fair value of warrant and contingent value rights | (60,114) | 0 |
Other non-operating expense (income), net | 1,746 | (3,069) |
Total non-operating (income) expenses, net | (155,670) | 7,886 |
Income (loss) before income taxes | $ 210,897 | $ (284) |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details) - Related Party - Hosting revenue - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Revenue from related parties | $ 0 | $ 3,720 |
Directors and Executives | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | $ 3,700 |