| Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (As Restated) | CASH FLOWS FROM OPERATING ACTIVITIES: | Net loss | $ | (38,095,300) | $ | (80,664,604) | Adjustments to reconcile net loss to cash flows from operating activities: | Depreciation and amortization | 27,428,863 | 26,025,021 | Accretion of asset retirement obligation | 41,230 | 39,153 | Loss on disposal of fixed assets | 2,189,252 | 108,367 | Realized loss on sale of miner assets | 494,087 | — | Change in value of accounts receivable | 399,192 | 1,867,506 | Amortization of debt issuance costs | 154,419 | 161,093 | Stock-based compensation | 5,093,193 | 7,603,859 | Loss on debt extinguishment | — | 28,960,947 | Impairments on equipment deposits | — | 5,422,338 | Changes in fair value of warrant liabilities | (8,445,247) | (5,580,453) | Non-cash adjustments for loss contingencies | 5,253,238 | — | Other | 584,510 | (229,485) | (Increase) decrease in digital currencies: | Mining revenue | (52,075,961) | (43,778,958) | Net proceeds from sale of digital currencies | 54,737,513 | 42,563,545 | Unrealized gain on digital currencies | (614) | — | Impairments on digital currencies | — | 683,241 | (Increase) decrease in assets: | Accounts receivable | (1,133,062) | 8,129,033 | Prepaid insurance | 4,218,459 | 5,174,903 | Due from related parties | (211,870) | (91,617) | Inventory | 1,381,634 | 1,328,373 | Other assets | (896,572) | 9,666 | Increase (decrease) in liabilities: | Accounts payable | (643,132) | (1,445,109) | Due to related parties | 730,357 | (239,230) | Accrued liabilities | (543,442) | 875,203 | Other liabilities, including contract liabilities | 7,888,095 | (211,225) | NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES | 8,548,842 | (3,288,433) | CASH FLOWS FROM INVESTING ACTIVITIES: | Purchases of property, plant and equipment | (749,528) | (14,743,269) | Proceeds from sale of property, plant and equipment, including CIP | 221,212 | — | NET CASH FLOWS USED IN INVESTING ACTIVITIES | (528,316) | (14,743,269) | CASH FLOWS FROM FINANCING ACTIVITIES: | Repayments of debt | (3,668,304) | (3,196,644) | Repayments of financed insurance premiums | (4,075,388) | (5,250,538) | Proceeds from debt, net of issuance costs paid in cash | — | (147,385) | Proceeds from private placements, net of issuance costs paid in cash | — | 9,824,567 | Proceeds from ATM, net of issuance costs paid in cash | — | 8,483,982 | Proceeds from exercise of warrants | — | 316 | NET CASH FLOWS (USED IN) PROVIDED BY FINANCING ACTIVITIES | (7,743,692) | 9,714,298 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 276,834 | (8,317,404) | CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 4,214,613 | 13,296,703 | CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 4,491,447 | $ | 4,979,299 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| As Reported | Adjustment | As Restated | As Reported | Adjustment | As Restated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cryptocurrency hosting | $ | 1,911,610 | $ | (3,145,003) | $ | (1,233,393) | $ | 11,193,438 | $ | (3,145,003) | $ | 8,048,435 | Total operating revenues | 11,168,073 | (3,145,003) | 8,023,070 | 57,794,397 | (3,145,003) | 54,649,394 | Realized gain on sale of digital currencies | (719,795) | (3,257,827) | (3,977,622) | (1,100,214) | (3,257,827) | (4,358,041) | Unrealized loss (gain) on digital currencies | 33,783 | 112,824 | 146,607 | (113,438) | 112,824 | (614) | Total operating expenses | 28,751,780 | (3,145,003) | 25,606,777 | 97,601,885 | (3,145,003) | 94,456,882 | NET OPERATING LOSS | $ | (17,583,707) | $ | — | $ | (17,583,707) | $ | (39,807,488) | $ | — | $ | (39,807,488) | |||||||
| Nine Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||
| As Reported | Adjustment | As Restated | ||||||||||||||||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | Net loss | $ | (38,095,300) | $ | — | $ | (38,095,300) | (Increase) decrease in digital currencies: | Mining revenue | (51,963,137) | (112,824) | (52,075,961) | Unrealized gain on digital currencies | (113,438) | 112,824 | (614) | NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | $ | 8,548,842 | $ | — | $ | 8,548,842 | |||||||||
| September 30, 2024 | September 30, 2023 | |||||||||||
| Income tax payments | $ | — | $ | — | Interest payments | $ | 5,981,021 | $ | 7,054,387 | |||
| Useful Lives (Years) | September 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Electric plant | 10 - 60 | $ | 67,161,300 | $ | 67,063,626 | Strongboxes and power transformers | 8 - 30 | 54,588,284 | 54,588,284 | Karbolith | 30 | 493,626 | — | Machinery and equipment | 5 - 20 | 17,175,420 | 16,222,214 | Rolling stock | 5 - 7 | 272,267 | 261,000 | Cryptocurrency machines and powering supplies | 2 - 3 | 89,538,064 | 88,445,931 | Computer hardware and software | 2 - 5 | 106,679 | 100,536 | Vehicles and trailers | 2 - 7 | 658,500 | 658,500 | Leasehold improvements | 2 - 3 | 2,992,845 | 2,992,845 | Construction in progress | Not Depreciable | 11,290,847 | 11,562,170 | Asset retirement cost | 10 - 30 | 580,452 | 580,452 | 244,858,284 | 242,475,558 | Accumulated depreciation and amortization | (119,886,518) | (97,832,787) | Property, plant and equipment, net | $ | 124,971,766 | $ | 144,642,771 | |||||||||||||||||||||||||||||||||||||||||||||||||||
