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This MD&A has been amended to give effect to the restatement of our unaudited condensed consolidated financial statements, as more fully described in Note 3 — Restatement of Previously Issued Financial Statements in Part I, Item 1 to the restated condensed consolidated financial statements included in this Amendment.
−Removed: For further details regarding the restatement, see “Explanatory Note” and Part I, Item 4 – “Controls and Procedures.” This section generally discusses the results of operations for the three and six months ended June 30, 2025, compared to June 30, 2024.
+Added: For further details regarding the restatement, see “Explanatory Note” and Part I, Item 4 – “Controls and Procedures.” This section generally discusses the results of operations for the three months ended March 31, 2025, compared to March 31, 2024.
As discussed in the section titled “Cautionary Note Regarding Forward-Looking Statements,” the following discussion and analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements.
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(“we,” “us,” “our,” the “Company,” “Core Scientific,” or “Core”) is a leader in designing, building and operating digital infrastructure for high-density colocation services and digital asset mining of bitcoin.
−Removed: Since our inception in 2018, we have been a premier provider and operator of dedicated, purpose-built facilities and software solutions for digital asset mining for ourselves and our third-party customers.
−Removed: In 2024, we initiated a significant strategic transition from bitcoin mining to colocation services for customers employing HPC workloads such as artificial intelligence-related applications.
−Removed: We believe leveraging our existing infrastructure for high-density colocation services will provide more stable and predictable revenue streams and represents substantially less risk than our traditional hosted bitcoin mining or our bitcoin self-mining operations.
−Removed: Last year, as a part of this transition, we announced arrangements at multiple sites for the provision of high-density colocation services to a third party engaged in high-performance computing (“HPC”).
−Removed: We continue to focus our business development and marketing efforts on expanding our high-density colocation customer base and increasing available infrastructure to provide high-density colocation services to HPC customers.
−Removed: We are constructing, refurbishing, reallocating or converting most of our ten facilities in Alabama (1), Georgia (2), Kentucky (1), North Carolina (1), North Dakota (1), Oklahoma (1), and Texas (3) to support artificial intelligence related workloads, primarily for our existing HPC customer, but also to support our commitment to meeting the growing demand for high-density colocation solutions and diversifying our revenue streams.
+Added: Since our inception in 2018, we have been a premier provider and operator of dedicated, purpose-built facilities and software solutions for digital asset mining for ourselves and our third-party customers, and, during 2024, we announced the arrangements at multiple sites for the provision of high-density digital infrastructure colocation services to a third party engaged in high-performance computing (“HPC”).
+Added: We believe that using our existing infrastructure for high-density colocation services will provide more consistent dollar-based revenue and represents substantially less risk than our traditional hosted bitcoin mining or our bitcoin self-mining operations.
+Added: As a result, we intend to focus our business development and marketing efforts on expanding our high-density colocation customer base.
+Added: As a result, we initiated a significant strategic transition from bitcoin mining to colocation services for customers employing HPC workloads such as artificial intelligence-related applications.
+Added: We are substantially engaged in constructing, refurbishing, reallocating or converting a substantial portion of our ten facilities in Alabama (1), Georgia (2), Kentucky (1), North Carolina (1), North Dakota (1), Oklahoma (1), and Texas (3) to support artificial intelligence related workloads, primarily for our one existing HPC customer, but also to support our commitment to meeting the growing demand for high-density colocation solutions and diversifying our revenue streams.
Currently, the vast majority of our revenue is from mining bitcoin for our own account (“self-mining”).
−Removed: In addition to our HPC activities described above, we will continue to profitably mine digital assets until we identify actionable alternative high-density colocation service business opportunities.
−Removed: We had billable power load of approximately 875 megawatts (“MW”) as of June 30, 2025.
−Removed: We had gross power of approximately 1,335 MW as of June 30, 2025.
−Removed: Our average self-mining fleet energy efficiency for the three months ended June 30, 2025 and 2024 was 24.7 joules per terahash.
+Added: We remain committed to maintaining the efficiency of our digital asset mining business while capitalizing on the opportunities presented by the growing high-density colocation services business.
+Added: We had billable power load of approximately 870 megawatts (“MW”) as of March 31, 2025.
+Added: We had gross power of approximately 1,320 MW as of March 31, 2025.
+Added: Our average self-mining fleet energy efficiency for the three months ended March 31, 2025 was 24.4 joules per terahash, compared to 24.7 joules per terahash for the three months ended December 31, 2024.
Self-mining fleet energy efficiency is a measure of our fleet’s average actual energy efficiency over the period presented.
−Removed: Our total revenue was $158.2 million and $320.4 million for the six months ended June 30, 2025 and 2024, respectively.
−Removed: We generated an operating loss of $73.3 million for the six months ended June 30, 2025 and $35.5 million for the six months ended June 30, 2024.
−Removed: We generated net loss of $360.5 million and $691.5 million for the six months ended June 30, 2025 and 2024, respectively.
−Removed: Our adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) was $15.4 million and
−Removed: $134.0 million for the six months ended June 30, 2025 and 2024, respectively.
+Added: Our total revenue was $79.5 million and $179.3 million for the three months ended March 31, 2025 and 2024, respectively.
+Added: We generated an operating loss of $47.0 million for the three months ended March 31, 2025 and operating income of $55.2 million for the three months ended March 31, 2024.
+Added: We generated net income of $576.3 million and $210.7 million for the three months ended March 31, 2025 and 2024, respectively.
+Added: Our adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted
+Added: EBITDA”) was $(6.1) million and $88.0 million for the three months ended March 31, 2025 and 2024, respectively.
Adjusted EBITDA is a non-GAAP financial measure.
See “ Key Business Operating Metrics and Non-GAAP Financial Measures ” below for our definition of, and additional information related to Adjusted EBITDA.
−Removed: Recent Developments
−Removed: On July 7, 2025, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with CoreWeave, Inc.
−Removed: (“CoreWeave”).
−Removed: Pursuant to the Merger Agreement, subject to the terms and conditions set forth therein, CoreWeave will acquire the Company in an all-stock transaction.
−Removed: Pursuant to the Merger Agreement, each outstanding share of the Company’s common stock at the Effective Time (as defined in the Merger Agreement) will be cancelled and converted into a number of fully paid and non-assessable shares of CoreWeave Class A common stock, equal to the exchange ratio of 0.1235.
−Removed: The transaction is subject to the approval of the Company’s stockholders and customary closing conditions, including applicable regulatory approvals.
−Removed: During the three months ended June 30, 2025, the Company repaid five higher-interest debt facilities totaling approximately $26.6 million in principal.
−Removed: The repayment resulted in a $1.4 million loss on debt extinguishment.
−Removed: On February 26, 2025, the Company announced a new agreement with CoreWeave to deliver an additional approximately 70 MW of gross power at the Company’s Denton, Texas facility.
+Added: On January 23, 2024, the Company emerged from bankruptcy when the conditions to the effectiveness of the Fourth Amended Joint Chapter 11 Plan of Reorganization of Core Scientific, Inc.
+Added: and its Debtor Affiliates (with Technical Modifications) (the “Plan of Reorganization”) were satisfied or waived.
+Added: For more detailed information regarding our emergence from bankruptcy, refer to Notes 3 — Chapter 11 Filing and Emergence from Bankruptcy, 8 — Convertible and Other Notes Payable, 9 — Contingent Value Rights and Warrant Liabilities and 12 — Stockholders' Deficit to our consolidated financial statements in Item 8 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2024.
+Added: Developments During 2025
+Added: On February 26, 2025, the Company announced a new agreement with CoreWeave, Inc.
+Added: to deliver an additional approximately 70 MW of infrastructure at the Company’s Denton, Texas facility.
Our Business Model
Business Overview
−Removed: As a large-scale owner and operator of high-power digital infrastructure for digital asset mining and high-density colocation services, we believe that we are well positioned to serve an expanding market for HPC operations.
+Added: As a large-scale owner and operator of high-power digital infrastructure for digital asset mining and high-density colocation services, we believe that we are well positioned to continue to effectively mine digital assets and serve an expanding market for HPC operations.
As noted in the “Business Strategy” section below, we believe that opportunities for growth exist in various applications of our data centers for third-party customers focused on cloud computing as well as machine learning and artificial intelligence, which has driven our recent expansion into providing high-density colocation services.
+Added: Furthermore, we believe that the adoption and mainstream use of bitcoin and the blockchain technology on which it is based has accelerated the demand for bitcoin and other digital currencies.
+Added: We focus primarily on contracting our digital infrastructure for high-density colocation services, including allocating a significant portion of our current and future data centers to support other forms of third-party HPC operations, in connection with our short-, medium- and long-term strategic plan.
Our digital asset mining operation is focused on earning bitcoin by solving complex cryptographic algorithms to validate transactions on specific bitcoin blockchains, which is commonly referred to as “mining.” Our digital asset self-mining activity competes with myriad mining operations throughout the world to complete new blocks on the blockchain and earn the reward in the form of bitcoin.
−Removed: We intend to focus primarily on contracting our digital infrastructure for high-density colocation services, including allocating a significant portion of our current and future data centers to support other forms of third-party HPC operations.
−Removed: As we identify additional high-density colocation services opportunities and contract to provide such services to additional HPC customers our digital infrastructure will transition from digital asset mining to providing services to HPC customers.
−Removed: We will continue to mine digital assets only so long as such activity remains profitable.
Business Strategy
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We intend to seek additional opportunities and to engage additional customers in the high-density colocation services (“Colocation”) segment to expand our business into these areas using our knowledge, expertise, existing and future infrastructure where favorable market opportunities exist.
−Removed: Our strategy is focused on hyperscale cloud-based providers and enterprises who have significant data center infrastructure needs that have not yet been outsourced or will require additional data center space and power to support their growth and their increasing reliance on technology infrastructure in their operations.
+Added: Our strategy is focused on hyperscale cloud-based providers and enterprises, including potential customers we believe have significant data center infrastructure needs that have not yet been outsourced or will require additional data center space and power to support their growth and their increasing reliance on technology infrastructure in their operations.
We believe our capabilities for serving the needs of large hyperscale providers and enterprises will continue to enable us to capitalize on the growing demand for outsourced data center facilities in our markets and in new markets where our customers are located or plan to be located in the future.
−Removed: On July 7, 2025, the Company entered into a Merger Agreement with CoreWeave.
−Removed: See Recent Developments above.
We have three operating segments:
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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.
+Added: We do not expect to further expand our Digital Asset Hosted Mining operations in 2025 and future years.
Our Colocation operation segment generates revenue by providing colocation, cloud and connectivity services to customers in exchange for a fee.
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Substantially all of the miners we own and host were manufactured by Bitmain Technologies Limited (“Bitmain”) and incorporate application-specific integrated circuit (“ASIC”) chips specialized to solve blocks on the bitcoin blockchains using the 256-bit secure hashing algorithm (“SHA-256”) in return for bitcoin digital asset rewards.
−Removed: The tables below summarize the total number of self- and hosted miners in operation as of June 30, 2025, December 31, 2024 and June 30, 2024 (miners in thousands):
−Removed: Bitcoin Miners in Operation as of June 30, 2025
+Added: We have entered into and facilitated agreements with vendors to supply mining equipment for our digital asset mining operations.
+Added: The majority of our purchases are made on multi-month contracts with installment payments due in advance of scheduled deliveries.
+Added: Delivery schedules have ranged from one month to 12 months.
+Added: The tables below summarize the total number of self- and hosted miners in operation as of March 31, 2025, December 31, 2024 and March 31, 2024 (miners in thousands):
+Added: Bitcoin Miners in Operation as of March 31, 2025
Mining Equipment Hash rate (EH/s) Number of Miners
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Total mining equipment 20.1 171.1
−Removed: Bitcoin Miners in Operation as of June 30, 2024
+Added: Bitcoin Miners in Operation as of March 31, 2024
Mining Equipment Hash rate (EH/s) Number of Miners
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Summary of Digital Asset Activity
−Removed: Activity related to our digital asset balances for the six months ended June 30, 2025 and 2024, were as follows (in thousands):
−Removed: June 30, 2025 June 30, 2024
+Added: Activity related to our digital asset balances for the three months ended March 31, 2025 and 2024, were as follows (in thousands):
+Added: March 31, 2025 March 31, 2024
Digital assets, beginning of period $ 23,893 $ 2,284
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Change in fair value of digital assets (10,688) —
+Added: Gain from sale of digital assets
Payment of board fee — (89)
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Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”) effective January 1, 2024.
−Removed: 2 As of June 30, 2025 and December 31, 2024, there was $0.7 million and $0.9 million, respectively, of digital asset receivable included in prepaid expenses and other current assets on the condensed consolidated balance sheets.
−Removed: As of June 30, 2024 and December 31, 2023, there was $0.8 million and $1.7 million, respectively, of digital asset receivable included in prepaid expenses and other current assets on the condensed consolidated balance sheets.
+Added: 2 As of March 31, 2025 and December 31, 2024, there was $0.6 million and $0.9 million, respectively, of digital asset receivable included in prepaid expenses and other current assets on the condensed consolidated balance sheets.
Performance Metrics
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The equipment originally employed for mining bitcoin used the central processing unit (“CPU”) of a computer to mine various forms of digital assets.
−Removed: Due to performance limitations, CPU mining was rapidly replaced by the graphics processing unit (“GPU”), which offers significant performance advantages over CPUs.
+Added: Due to performance limitations, CPU mining was rapidly replaced by the GPU, which offers significant performance advantages over CPUs.
General purpose chipsets like CPUs and GPUs have since been replaced as the standard in the mining industry by ASIC chips such as those found in the miners we and our customers use to mine bitcoin (although they continue to have uses in other industries).
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As a result, a mining participant must increase its total hash rate in order to maintain its relative possibility of solving a block on the network blockchain.
−Removed: Achieving greater hash rate power by deploying increasingly sophisticated miners in ever greater quantities has become one of the bitcoin mining industry’s great sources of competition.
+Added: Achieving greater hash rate power by deploying
+Added: increasingly sophisticated miners in ever greater quantities has become one of the bitcoin mining industry’s great sources of competition.
Our goal is to deploy a powerful fleet of self- and hosted-miners, while operating as energy-efficiently as possible.
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The prices of digital assets, specifically bitcoin, have experienced substantial volatility, meaning that high or low prices may have little or no relationship to identifiable market forces, may be subject to rapidly changing investor sentiment, and may be influenced by factors such as technology, regulatory void or changes, fraudulent actors, manipulation, and media reporting.
−Removed: Bitcoin (as well as other digital assets)
−Removed: may have value based on various factors, including their acceptance as a means of exchange by consumers and others, scarcity, and market demand.
+Added: Bitcoin (as well as other digital assets) may have value based on various factors, including their acceptance as a means of exchange by consumers and others, scarcity, and market demand.
Our financial performance and continued growth depend in large part on our ability to mine for digital assets profitably and to attract customers for our digital asset hosted mining services.
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Tariffs, however, could have additional material and yet unforeseen impacts on our results of operations in fiscal year 2025 and future years.
−Removed: Potential Impact of “Big Beautiful Bill” Legislation
−Removed: On July 4, 2025, H.R.
−Removed: 1, the “One Big Beautiful Bill Act” was signed into law.
−Removed: In accordance with U.S.
−Removed: GAAP, the Company will account for the tax effects of changes in tax law in the period of enactment, which is the third quarter of calendar year 2025.
−Removed: The Company is currently in the process of analyzing the tax impacts of the law change, but we do not expect a material impact to our financial statements.
Further affecting the industry, and particularly for the bitcoin blockchain, the digital asset reward for solving a block is subject to periodic incremental halving.
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Business Mix Shift to High-Density Colocation Services
−Removed: The planned growth of our Colocation operation, through increased investment in conversion of several of our bitcoin mining sites to Colocation operation sites over the next several years, should gradually reduce our overall exposure to volatility in the spot price of bitcoin as our Colocation segment begins to account for a comparatively larger percentage of our financial results.
−Removed: The Colocation operation is characterized by implementation of long-term contracts with customers spanning several years with terms and conditions outlining and resulting in stable, predictable revenue and cash flows over each period.
+Added: The planned growth of our Colocation business, through increased investment in conversion of several of our bitcoin mining sites to Colocation business sites over the next several years, should gradually reduce our overall exposure to volatility in the spot price of bitcoin as our Colocation segment begins to account for a comparatively larger percentage of our financial results.
+Added: The Colocation business is characterized by implementation of long-term contracts with customers spanning several years with terms and conditions outlining and resulting in stable, predictable revenue and cash flows over each period.
Electricity Costs
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In certain power markets, financial hedging can be employed to protect buyers from the financial impact of significant increases in power prices.
−Removed: Data Center Infrastructure Costs
−Removed: To support our commitment to meeting the growing demand for high-density colocation solutions, we are constructing, refurbishing, reallocating or converting most of our ten data center facilities to support high-density colocation services.
−Removed: The costs associated with data center infrastructure conversion include labor, equipment and materials and is subject to supply chain and logistical challenges.
+Added: Equipment Costs
+Added: Increases in the market value of digital assets increases the demand for new miners, which can result in a scarcity in the supply of, and increases in the price of, those miners.
+Added: Declines in the market value of digital assets can result in excess supply of miners and a general decline in their prices.
+Added: As a result, the cost of new miners can be unpredictable and could be significantly different than our historical cost for new miners.
Our Competition and Customers
−Removed: In addition to factors underlying our mining business growth and profitability, the success of our Colocation operation greatly depends on our ability to retain and develop opportunities with our existing customers, secure additional infrastructure and attract new customers.
+Added: In addition to factors underlying our mining business growth and profitability, the success of our Colocation business greatly depends on our ability to retain and develop opportunities with our existing customers, secure additional infrastructure and attract new customers.
Our business environment is constantly evolving.
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However, remaining competitive in our evolving industry, both against new entrants into the market and existing competitors, will require the expansion of our existing miner fleet by purchasing new and available used miners, as well as innovating to develop and implement new technologies and mining solutions.
−Removed: In our Colocation operation, we compete with other providers of high-power data center capacity, such as major data center real estate investment trusts (“REITs”), developers of data centers, hyperscalers and bitcoin miners with capacity suitable for high-density colocation services.
+Added: In our Colocation business, we compete with other providers of high-power data center capacity, such as major data center real estate investment trusts (“REITs”), developers of data centers, hyperscalers and bitcoin miners with capacity suitable for high-density colocation services.
This competition focuses primarily on the identification and acquisition of new, high-power sites, but also includes competition for the capital required to build or modify existing sites to support high-density colocation.
−Removed: Additionally, the modification of some of our data centers to accommodate our Colocation operation involves the procurement of critical equipment, technologies and skilled labor, which are in high demand from other entities seeking to address the same market opportunity, thereby putting us into competition with many other organizations for those resources.
+Added: Additionally, the modification of some of our data centers to accommodate our Colocation business involves the procurement of critical equipment, technologies and skilled labor, which are in high demand from other entities seeking to address the same market opportunity, thereby putting us into competition with many other organizations for those resources.
We believe that because of our operational high-power data center capacity and the experience, knowledge, capabilities and relationships of our data center development and operations team, we are uniquely qualified to address the current strong demand for high-power data center capacity to support HPC applications successfully.
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Our investments in research and development drive differentiation of our service offerings, core technology innovation and our ability to bring new products to market.
−Removed: We believe we possess unique knowledge of data center design principles and systems integration architectures, as well as extensive experience designing, constructing and operating data centers that differentiates and informs our plans for modifying digital asset mining data centers to support our Colocation operation, and for developing new data centers designed to support future high-value computing requirements.
−Removed: This knowledge includes designs for higher rack energy densities than currently offered in the legacy data center market to satisfy emerging requirements for advanced technologies supporting emerging workloads such as artificial intelligence.
We believe that we differentiate ourselves by offering premium products and services, including our ability to manage our power sourcing and construct proprietary, passively-cooled digital asset mining data centers at scale.
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Our approach to data center design enables us to deliver efficiency at scale.
+Added: We believe we possess unique knowledge of data center design principles and systems integration architectures, as well as extensive experience designing, constructing and operating data centers that differentiates and informs our plans for modifying digital
+Added: asset mining data centers to support our Colocation business, and for developing new data centers designed to support future high-value computing requirements.
+Added: This knowledge includes designs for higher rack energy densities than currently offered in the legacy data center market to satisfy emerging requirements for advanced technologies supporting emerging workloads such as artificial intelligence.
We develop proprietary hardware and software solutions that support our current operations and represent potential future growth opportunities.
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Most recently, in January 2025, the Acting SEC Chairman announced the launch of a crypto task force dedicated to developing a comprehensive and clear regulatory framework for crypto assets, in contrast to the SEC’s prior reliance on enforcement actions to regulate cryptocurrencies.
−Removed: Further, on May 29, 2025, the Digital Asset Market Clarity Act (the “Clarity Act”) was introduced in the U.S.
−Removed: House of Representatives.
−Removed: The Clarity Act provides a regulatory framework for digital assets by clarifying the roles of the SEC and CFTC in oversight of various digital assets and transactions in digital assets.
−Removed: The Clarity Act defines several categories of digital assets:
−Removed: digital commodities and permitted payment stablecoins, which would be subject to the jurisdiction of the CFTC, and excluded digital commodities, such as securities, which would be subject to the jurisdiction of the SEC.
The extent and content of any forthcoming laws and regulations are not yet ascertainable with certainty, and they may not be ascertainable in the near future.
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For instance, the SEC has taken an active role in regulating the use of public offerings of proprietary coins (so-called “initial coin offerings”) and has made statements and official promulgations as to the status of certain digital assets as “securities” subject to regulation by the SEC.
−Removed: Our facilities in Texas represent a significant portion of our gross power and are subject to Senate Bill 6 (“SB 6”), a statewide law enacted in June 2025 that governs large electric loads (75 megawatts or greater) within the Electric Reliability Council of Texas (“ERCOT”) region.
−Removed: This law imposes binding operational and interconnection requirements on large-load customers.
−Removed: Under SB 6, facilities above the applicable threshold are required to participate in demand response programs administered by ERCOT, which may require temporary reductions in power usage during periods of grid constraint.
−Removed: The legislation also grants ERCOT and certain local utilities authority to curtail load, including initiating mandatory power reductions or disconnections during emergency grid conditions.
−Removed: Additionally, SB 6 establishes enhanced interconnection protocols, including required disclosures related to behind-the-meter generation, limitations on duplicative interconnection requests, and minimum study fees associated with new or expanded load.
−Removed: The law further permits utilities to allocate certain transmission and infrastructure upgrade costs to the interconnecting customer.
−Removed: These provisions may impact the timing, economics, or operational flexibility of our existing and future data center deployments within Texas.
Key Business Operating Metrics and Non-GAAP Financial Measures
In addition to our financial results, we use the following business operating metrics and non-GAAP financial measures to evaluate our business, measure our performance, identify trends affecting our business, and make strategic decisions.
−Removed: For a definition
−Removed: of these key business operating metrics, see the sections titled “Self-Mining Hash Rate,” and “Cost of Self-Mining One Bitcoin and Hash Cost,” (below), and for non-GAAP financial measures, see the section titled “Adjusted EBITDA” (below).
+Added: For a definition of these key business operating metrics, see the sections titled “Self-Mining Hash Rate,” and “Cost of Self-Mining One Bitcoin and Hash Cost,” (below), and for non-GAAP financial measures, see the section titled “Adjusted EBITDA” (below).
Self-Mining Hash rate (Exahash per second)
−Removed: Three Months Ended June 30, Six Months Ended June 30,
−Removed: 2025 2024 2025 2024
Adjusted EBITDA (in millions) $ (6.1) $ 88.0
−Removed: Three Months Ended June 30, Six Months Ended June 30,
−Removed: 2025 2024 2025 2024
+Added: Three Months Ended March 31,
Cash Costs per Bitcoin
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Operational costs per bitcoin self-mined 1
−Removed: 15,962 5,346 15,158 3,830
Total cost to self-mine one bitcoin 2
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Operational costs per terahash 1
−Removed: 0.008 0.005 0.008 0.005
Total cash-based hash cost 3
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Management uses our self-mining hash rate to monitor our performance and competitive advantage in mining bitcoin as global competition also increases.
−Removed: Our self-mining hash rate was 17.6 EH/s and 19.4 EH/s as of June 30, 2025 and 2024, respectively, representing a 9% decrease year over year.
−Removed: Our combined self-mining and customer and related party hosting hash rate decreased 16%, to 20.6 EH/s as of June 30, 2025, from 24.6 EH/s as of June 30, 2024.
+Added: Our self-mining hash rate was 18.1 EH/s and 19.3 EH/s as of March 31, 2025 and 2024, respectively, representing a 6% decrease year over year.
+Added: Our combined self-mining and customer and related party hosting hash rate decreased 25%, to 19.1 EH/s as of March 31, 2025, from 25.5 EH/s as of March 31, 2024.
Cost of Self-Mining One Bitcoin and Hash Cost
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Cash Costs per Bitcoin and Cash-Based Hash Cost are key business operating metrics.
−Removed: The cost of self-mining one bitcoin metric provides useful information to investors as it demonstrates our capacity to profitably mine bitcoin when comparing it to the price of bitcoin, particularly given volatility in energy prices as well as in the price of bitcoin.
+Added: The cost of self-mining one bitcoin metric provides useful information to investors as it demonstrates our capacity to profitably mine bitcoin when comparing it to the
+Added: price of bitcoin, particularly given volatility in energy prices as well as in the price of bitcoin.
Management uses this metric to monitor both our cost efficiency in mining bitcoin as compared to our past performance and the performance of competitors, as well as our continued ability to profitably mine bitcoin.
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Adjusted EBITDA
−Removed: Adjusted EBITDA is a non-GAAP financial measure defined as our net income (loss), adjusted to eliminate the effect of (i) interest income, interest expense, and other income (expense), net;
+Added: Adjusted EBITDA is a non-GAAP financial measure defined as our net income, adjusted to eliminate the effect of (i) interest income, interest expense, and other income (expense), net;
(ii) provision for income taxes;
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(vii) change in fair value of warrant and contingent value rights;
−Removed: (viii) Colocation segment startup costs which are not reflective of the ongoing costs incurred after startup, (ix) impairment of property, plant and equipment, (x) site demolition costs incurred in connection with the conversion of existing facilities to colocation data center operations, (xi) post-emergence bankruptcy advisory costs incurred related to reorganization which are not reflective of the ongoing costs incurred in post-emergence operations, and (xii) certain additional non-cash items that do not reflect the performance of our ongoing business operations.
+Added: (viii) Colocation segment organizational startup costs which are not reflective of the ongoing costs incurred after startup, (ix) site demolition costs incurred in connection with the conversion of existing facilities to colocation data center operations, (x) post-emergence bankruptcy advisory costs incurred related to reorganization which are not reflective of the ongoing costs incurred in post-emergence operations, and (xi) certain additional non-cash items that do not reflect the performance of our ongoing business operations.
For additional information, including the reconciliation of net income to Adjusted EBITDA, please refer to the table below.
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You should review the reconciliation of net income to Adjusted EBITDA below and not rely on any single financial measure to evaluate our business.
−Removed: The following table presents a reconciliation of net loss to Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024 (in thousands):
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: The following table presents a reconciliation of net income to Adjusted EBITDA for the three months ended March 31, 2025 and 2024 (in thousands):
+Added: Three Months Ended March 31,
2025 (As Restated)
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Income tax expense
−Removed: 158 144 363 350
Depreciation and amortization 19,731 28,996
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Unrealized fair value adjustment on energy derivatives — (797)
−Removed: Loss (gain) on disposal of property, plant and equipment
−Removed: 4,166 (268) 4,172 3,552
−Removed: Impairment of property, plant and equipment
−Removed: — 97,261 — 97,261
+Added: Losses on disposal of property, plant and equipment 6 3,820
Site conversion demolition costs
Loss on debt extinguishment
−Removed: 1,377 120 1,377 170
−Removed: Colocation startup costs
−Removed: — 4,601 — 4,601
Post-emergence bankruptcy advisory costs
−Removed: 695 (1,380) 1,298 307
Reorganization items, net — (111,439)
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Most contracts are renewable, and our customers are generally billed on a fixed and recurring basis each month for the duration of their contract, which vary from one to three years in length.
−Removed: During the second quarter of 2023, we initiated our first new digital asset hosted mining customer contracts based on
−Removed: proceed sharing.
+Added: During the second quarter of 2023, we initiated our first new digital asset hosted mining customer contracts based on proceed sharing.
Under these new contracts, customers pay for the cost of digital asset hosting and infrastructure, and we share the proceeds that are generated.
• Colocation revenue.
−Removed: Colocation revenue is generated by leasing data center space and providing related services to licensees at our Austin, Texas and Denton, Texas high-density data centers.
+Added: C olocation revenue is generated by leasing data center space and providing related services to licensees at our Austin, Texas high-density data center.
These licensing agreements and orders include lease components, nonlease components (such as power delivery, physical security, maintenance and other billable expenses), as well as noncomponent elements such as taxes.
3 unchanged sentences
The Company’s cost of digital asset self-mining and digital asset hosted mining services, primarily consist of electricity costs, salaries, stock-based compensation, depreciation of property, plant and equipment used to perform mining operations and hosting services and other related costs.
−Removed: Cost of Colocation relates to our Austin, Texas and Denton, Texas data centers, and primarily consists of facility operations expense, which includes maintenance and lease expense, power fees, payroll and benefits expense and stock-based compensation expense.
+Added: Cost of Colocation relates to our Austin, Texas data center, and primarily consists of facility operations expense, which includes maintenance and lease expense, power fees, payroll and benefits expense and stock-based compensation expense.
Colocation power fees are passed through to the customer without markup and are included on a gross basis in Cost of Colocation services.
−Removed: (Increase) decrease in fair value of digital assets
+Added: Change in fair value of digital assets
The Company adopted ASU 2023-08 effective January 1, 2024.
Under ASU 2023-08, the Company measures digital assets at fair value with the changes in fair value during the reporting period recognized in change in fair value of digital assets.
−Removed: Decrease in fair value of energy derivatives
+Added: Gain from sales of digital assets
+Added: Prior to the adoption of ASU 2023-08, Gain from sales of digital assets was recorded when realized upon sale(s).
+Added: In determining the gain to be recognized upon sale, we calculated the difference between the sales price and carrying value of the digital assets sold immediately prior to sale.
+Added: Change in fair value of energy derivatives
Change in fair value of energy derivatives represents changes in the fair value of the derivative liability related to the energy forward purchase contract to fix a specified component of the energy price related to forecasted energy purchases at our Cottonwood 1 facility from November 2023 through May 2024.
−Removed: Loss (gain) on disposal of property, plant and equipment
−Removed: Loss (gain) on disposal of property, plant and equipment are measured as the differences between the carrying value of the property, plant and equipment disposed of and fair value of the consideration received upon disposal.
−Removed: Impairment of property, plant and equipment
−Removed: The Company tests property, plant and equipment for recoverability whenever events or changes in circumstances have occurred that may affect the recoverability or the estimated useful lives of the property, plant and equipment.
−Removed: Property, plant and equipment may be impaired when the estimated future undiscounted cash flows are less than the carrying amount of the asset.
−Removed: If that comparison indicates that the asset’s carrying value may not be recoverable, the impairment is measured based on the difference between the carrying amount and the estimated fair value of the asset.
−Removed: This evaluation is performed at the lowest level for which separately identifiable cash flows exist.
+Added: Losses on disposal of property, plant and equipment
+Added: Losses on disposal of property, plant and equipment are measured as the differences between the carrying value of the property, plant and equipment disposed of and fair value of the consideration received upon disposal.
Selling, general and administrative
Selling, general and administrative expenses includes compensation, benefits, and other personnel-related expenses, stock-based compensation, rent, Colocation segment organizational and site startup costs, post-emergence bankruptcy advisor fees related to the reorganization, professional fees, business insurance, auditor fees, bad debt, amortization of intangibles, franchise taxes, and bank fees.
−Removed: Colocation segment organizational startup costs were primarily consulting costs that were specifically incurred preparing for and entering into Colocation operation and are not expected to be incurred in the ongoing operations of the Colocation business.
+Added: Colocation segment organizational startup costs were primarily consulting costs that were specifically incurred preparing for and entering into the Colocation business and are not expected to be incurred in the ongoing operations of the Colocation business.
Colocation segment site startup costs are indirect costs associated with the administration of converting and building of future Colocation operating sites, and include compensation and other personnel-related expenses, including stock-based compensation.
Similar costs will be incurred in the future operations of the Colocation segment sites.
−Removed: Non-operating expense (income), net:
+Added: Non-operating expenses (income), net:
Non-operating expenses (income), net includes loss (gain) on debt extinguishment, interest expense, net, reorganization items, net, fair value adjustments of convertible notes, warrants and contingent value rights, and other non-operating (income) expenses, net.
10 unchanged sentences
Deferred tax assets are reduced by a valuation allowance to the extent management believes it is not more likely than not to be realized.
−Removed: Results of Operations for the Three Months Ended June 30, 2025 and 2024
−Removed: The following table sets forth our selected condensed consolidated statements of operations for each of the periods indicated (in thousands).
−Removed: Three Months Ended June 30,
−Removed: 2025 2024 $ Change
−Removed: Digital asset self-mining revenue
−Removed: $ 62,424 $ 110,743 $ (48,319)
−Removed: Digital asset hosted mining revenue from customers
−Removed: 5,644 24,840 (19,196)
−Removed: Colocation revenue
−Removed: 10,560 5,519 5,041
−Removed: Total revenue 78,628 141,102 (62,474)
−Removed: Cost of revenue:
−Removed: Cost of digital asset self-mining
−Removed: 59,589 80,001 (20,412)
−Removed: Cost of digital asset hosted mining services
−Removed: 4,584 17,393 (12,809)
−Removed: Cost of Colocation services
−Removed: 9,430 4,891 4,539
−Removed: Total cost of revenue 73,603 102,285 (28,682)
−Removed: 5,025 38,817 (33,792)
−Removed: (Increase) decrease in fair value of digital assets
−Removed: (29,797) 584 (30,381)
−Removed: Decrease in fair value of energy derivatives
−Removed: Loss (gain) on disposal of property, plant and equipment
−Removed: 4,166 (268) 4,434
−Removed: Impairment of property, plant and equipment
−Removed: — 97,261 (97,261)
−Removed: Selling, general and administrative
−Removed: 56,940 31,383 25,557
−Removed: Operating loss
−Removed: (26,284) (90,682) 64,398
−Removed: Non-operating expense (income), net:
−Removed: Loss on debt extinguishment
−Removed: 1,377 120 1,257
−Removed: Interest (income) expense, net
−Removed: (1,185) 14,775 (15,960)
−Removed: Change in fair value of warrants and contingent value rights
−Removed: 909,958 796,035 113,923
−Removed: Other non-operating expense, net
−Removed: 207 401 (194)
−Removed: Total non-operating expense, net
−Removed: 910,357 811,331 99,026
−Removed: Loss before income taxes
−Removed: (936,641) (902,013) (34,628)
−Removed: Income tax expense
−Removed: $ (936,799) $ (902,157) $ (34,642)
−Removed: Three Months Ended June 30,
−Removed: 2025 2024 $ Change
−Removed: Digital asset self-mining revenue
−Removed: $ 62,424 $ 110,743 $ (48,319)
−Removed: Digital asset hosted mining revenue from customers
−Removed: 5,644 24,840 (19,196)
−Removed: Colocation revenue
−Removed: 10,560 5,519 5,041
−Removed: Total revenue $ 78,628 $ 141,102 $ (62,474)
−Removed: Percentage of total revenue:
−Removed: Digital asset self-mining revenue
−Removed: Digital asset hosted mining revenue from customers
−Removed: Colocation revenue
−Removed: Total revenue
−Removed: Total revenue decreased by $62.5 million or 44%, to $78.6 million for the three months ended June 30, 2025, from $141.1 million for the three months ended June 30, 2024, as a result of the factors described below.
−Removed: Digital asset self-mining revenue decreased by $48.3 million or 44%, to $62.4 million for the three months ended June 30, 2025, from $110.7 million for the three months ended June 30, 2024.
−Removed: The year over year decrease in self-mining revenue was driven primarily by:
−Removed: • a 62% decrease in bitcoin mined to 634 for the three months ended June 30, 2025, compared to 1,680 for the three months ended June 30, 2024, driven primarily by:
−Removed: ◦ an approximate net decrease of 12,100 deployed mining units due primarily to the strategic shift to Colocation;
−Removed: ◦ a 9% decrease in self-mining hash rate to 17.6 EH/s for the three months ended June 30, 2025, from 19.4 EH/s for the same period in the prior year;
−Removed: ◦ a 39% increase in the three month average network difficulty driven by a 61% increase in the three month average network hash rate over prior year.
−Removed: This decrease in self-mining revenue was partially offset by a 50% increase in the average price of bitcoin to $98,532 for the three months ended June 30, 2025, compared to $65,677 for the three months ended June 30, 2024.
−Removed: Total digital asset hosted mining revenue from customers decreased by $19.2 million or 77%, to $5.6 million for the three months ended June 30, 2025, from $24.8 million for the three months ended June 30, 2024.
−Removed: The decrease in hosted mining revenue from customers was primarily driven by our shift to Colocation operations.
−Removed: Total Colocation revenue was $10.6 million for the three months ended June 30, 2025, compared to $5.5 million for the same period in the prior year.
−Removed: This $5.0 million increase was driven by the completion of the first data hall at our Denton, Texas data center during the second quarter ended June 30, 2025.
−Removed: Colocation operations began during the quarter ended June 30, 2024, at our Austin, Texas data center.
−Removed: While we expect to meet all of our fiscal 2025 ready-for-service (“RFS”) dates during fiscal 2025, a variety of weather and construction related delays have moved RFS dates later in fiscal 2025 than previously planned.
−Removed: Cost of Revenue
−Removed: Three Months Ended June 30,
−Removed: 2025 2024 $ Change
−Removed: Cost of revenue
−Removed: $ 73,603 $ 102,285 $ (28,682)
−Removed: 5,025 38,817 (33,792)
−Removed: Cost of revenue decreased by $28.7 million or 28%, to $73.6 million for the three months ended June 30, 2025, from $102.3 million for the three months ended June 30, 2024.
−Removed: As a percentage of total revenue, cost of revenue totaled 94% and 72% for the three months ended June 30, 2025 and 2024, respectively.
−Removed: The decrease in cost of revenue was primarily attributable to:
−Removed: • a $18.5 million decrease in power costs from lower rates and usage;
−Removed: • a $10.7 million decrease in depreciation expense driven by an increase in the number of miners becoming fully depreciated;
−Removed: • a $2.2 million decrease in proceed sharing costs due to termination of our proceed sharing arrangements in 2024;
−Removed: • a $1.3 million decrease in stock-based compensation expense;
−Removed: • a $1.2 million decrease in facility operation expenses, due primarily to lower facility maintenance expense and facility equipment and supplies.
−Removed: This decrease in cost of revenue was partially offset by:
−Removed: • a $3.7 million increase in payroll and benefits due to increases in bonuses and salaries driven primarily by an increase in employee headcount;
−Removed: • a $2.4 million increase in Colocation segment costs, primarily due to a $1.8 million increase in Colocation power fees passed through to the customer and a $0.6 million increase in Colocation rent expense due to the expansion of our Colocation operations.
−Removed: (Increase) decrease in fair value of digital assets
−Removed: Three Months Ended June 30,
−Removed: 2025 2024 $ Change
−Removed: (Increase) decrease in fair value of digital assets $ (29,797) $ 584 $ (30,381)
−Removed: Percentage of total revenue
−Removed: The fair value of digital assets increased by $30.4 million to $29.8 million for the three months ended June 30, 2025, from a decrease of $0.6 million for the three months ended June 30, 2024, and reflects the increase in the price of bitcoin held during the three months ended June 30, 2025.
−Removed: Decrease in fair value of energy derivatives
−Removed: Three Months Ended June 30,
−Removed: 2025 2024 $ Change
−Removed: Decrease in fair value of energy derivatives
−Removed: $ — $ 539 $ (539)
−Removed: Percentage of total revenue
−Removed: Decrease in fair value of energy derivatives was nil for the three months ended June 30, 2025, compared to $0.5 million for the three months ended June 30, 2024.
−Removed: Change in fair value of energy derivative was related to the change in fair value of the energy forward purchase contract entered into in November 2023 which expired during the second quarter 2024.
−Removed: Loss (gain) on disposal of property, plant and equipment
−Removed: Three Months Ended June 30,
−Removed: 2025 2024 $ Change
−Removed: Loss (gain) on disposal of property, plant and equipment
−Removed: $ 4,166 $ (268) $ 4,434
−Removed: Percentage of total revenue
−Removed: Loss (gain) on disposal of property, plant and equipment increased by $4.4 million to a loss of $4.2 million for the three months ended June 30, 2025, from a gain of $0.3 million for the three months ended June 30, 2024.
−Removed: The loss for the three months ended June 30, 2025 was primarily due to losses on disposal of transformers and mining equipment.
−Removed: Impairment of property, plant and equipment
−Removed: Three Months Ended June 30,
−Removed: 2025 2024 $ Change
−Removed: Impairment of property, plant and equipment
−Removed: — 97,261 (97,261)
−Removed: Percentage of total revenue
−Removed: Impairment of property, plant and equipment was $97.3 million for the three months ended June 30, 2024, reflecting the impairment of fixed assets at sites committed to conversion from digital asset mining to high-density data center colocation operations during that period.
−Removed: No impairment charges were recorded for the three months ended June 30, 2025.
−Removed: Selling, general and administrative
−Removed: Three Months Ended June 30,
−Removed: 2025 2024 $ Change
−Removed: Selling, general and administrative
−Removed: $ 56,940 $ 31,383 $ 25,557
−Removed: Percentage of total revenue
−Removed: Selling, general and administrative expenses increased $25.6 million or 81%, to $56.9 million for the three months ended June 30, 2025, from $31.4 million for the three months ended June 30, 2024.
−Removed: The increase was driven primarily by:
−Removed: • a $12.3 million increase in stock-based compensation expense;
−Removed: • a $7.0 million increase in Colocation segment site startup costs which primarily include payroll, benefits, and stock-based compensation for activities related to the startup of our Colocation segment sites that have transitioned from digital asset site operations and administration;
−Removed: • a $2.7 million increase in payroll and benefits expense due to increases in bonuses and salaries driven primarily by an increase in employee headcount;
−Removed: • a $2.2 million increase in professional services;
−Removed: • a $2.1 million increase in in post-emergence bankruptcy advisor fees, partially offset by
−Removed: • a $1.1 million decrease in rent expenses.
−Removed: Non-operating expense, net
−Removed: Three Months Ended June 30,
−Removed: 2025 2024 $ Change
−Removed: Non-operating expense (income), net:
−Removed: Loss on debt extinguishment
−Removed: $ 1,377 $ 120 $ 1,257
−Removed: Interest (income) expense, net
−Removed: (1,185) 14,775 (15,960)
−Removed: Change in fair value of warrants and contingent value rights
−Removed: 909,958 796,035 113,923
−Removed: Other non-operating expense, net
−Removed: 207 401 (194)
−Removed: Total non-operating expense, net
−Removed: $ 910,357 $ 811,331 $ 99,026
−Removed: Total non-operating expense, net increased by $99.0 million, to $910.4 million for the three months ended June 30, 2025, from $811.3 million for the three months ended June 30, 2024.
−Removed: The increase in total non-operating expense, net was primarily driven by:
−Removed: • During the three months ended June 30, 2025, we incurred a $113.9 million increase in Change in fair value of warrant and contingent value rights due to a $9.83 per share increase in the Company’s stock price to $17.07 per share as of June 30,
−Removed: 2025, from $7.24 per share as of March 31, 2025, compared to a $5.76 per share increase to $9.30 per share as of June 30, 2024, from $3.54 per share as of March 31, 2024;
−Removed: • a $16.0 million decrease in Interest (income) expense, net driven primarily by an $9.5 million decrease in interest expense due to lower interest rates during the three months ended June 30, 2025, and a $6.4 million increase in proceeds from money market funds.
−Removed: Segment Total Revenue and Gross Profit
−Removed: The following table presents total revenue and gross profit by reportable segment for the periods presented (in thousands, except percentages):
−Removed: Three Months Ended June 30,
−Removed: 2025 2024 $ Change
−Removed: Digital Asset Self-Mining Segment
−Removed: Digital asset self-mining revenue
−Removed: $ 62,424 $ 110,743 $ (48,319)
−Removed: Cost of digital asset self-mining:
−Removed: Power fees 30,720 41,174 (10,454)
−Removed: Depreciation expense 18,058 28,174 (10,116)
−Removed: Employee compensation 8,272 6,038 2,234
−Removed: Facility operations expense 2,089 3,231 (1,142)
−Removed: Other segment items 450 1,384 (934)
−Removed: Total cost of digital asset self-mining 59,589 80,001 (20,412)
−Removed: Digital Asset Self-Mining gross profit
−Removed: $ 2,835 $ 30,742 $ (27,907)
−Removed: Digital Asset Self-Mining gross margin 5 % 28 % (23) %
−Removed: Digital Asset Hosted Mining Segment
−Removed: Digital asset hosted mining revenue from customers $ 5,644 $ 24,840 $ (19,196)
−Removed: Cost of digital asset hosted mining services:
−Removed: Power fees 3,208 11,301 (8,093)
−Removed: Depreciation expense 334 1,041 (707)
−Removed: Employee compensation 779 1,640 (861)
−Removed: Facility operations expense 220 880 (660)
−Removed: Other segment items 43 2,531 (2,488)
−Removed: Total cost of digital asset hosted mining services 4,584 17,393 (12,809)
−Removed: Digital Asset Hosted Mining gross profit
−Removed: $ 1,060 $ 7,447 $ (6,387)
−Removed: Digital Asset Hosted Mining gross margin 19 % 30 % (11) %
−Removed: Colocation Segment
−Removed: Colocation revenue:
−Removed: $ 7,010 $ 3,818 $ 3,192
−Removed: Maintenance and other
−Removed: Licensing revenue
−Removed: 7,096 3,856 3,240
−Removed: Power fees passed through to customer
−Removed: 3,464 1,663 1,801
−Removed: Total Colocation revenue
−Removed: 10,560 5,519 5,041
−Removed: Cost of Colocation services:
−Removed: Depreciation expense 104 14 90
−Removed: Employee compensation
−Removed: 1,148 78 1,070
−Removed: Facility operations expense 4,336 3,101 1,235
−Removed: Other segment items 378 35 343
−Removed: Cost of licensing revenue
−Removed: 5,966 3,228 2,738
−Removed: Power fees passed through to customer
−Removed: 3,464 1,663 1,801
−Removed: Total cost of Colocation services
−Removed: 9,430 4,891 4,539
−Removed: Colocation gross profit
−Removed: $ 1,130 $ 628 $ 502
−Removed: Colocation licensing gross margin
−Removed: 16 % 16 % — %
−Removed: Colocation gross margin
−Removed: 11 % 11 % (1) %
−Removed: Consolidated total revenue $ 78,628 $ 141,102 $ (62,474)
−Removed: Consolidated cost of revenue
−Removed: $ 73,603 $ 102,285 $ (28,682)
−Removed: Consolidated gross profit
−Removed: $ 5,025 $ 38,817 $ (33,792)
−Removed: Consolidated gross margin 6 % 28 % (21) %
−Removed: Digital Asset Self-Mining
−Removed: For the three months ended June 30, 2025, gross profit in the Digital Asset Self-Mining segment decreased by $27.9 million compared to the three months ended June 30, 2024, reflecting a Digital Asset Self-Mining segment gross margin of 5% for the three months ended June 30, 2025, compared to 28% for the three months ended June 30, 2024.
−Removed: The decrease in the Digital Asset Self-Mining segment gross profit was primarily due to a 44% decrease in self-mining revenue driven by:
−Removed: • a 62% decrease in bitcoin mined to 634 for the three months ended June 30, 2025, compared to 1,680 for the three months ended June 30, 2024, driven primarily by:
−Removed: ◦ an approximate net decrease of 12,100 deployed mining units due primarily to the strategic shift to Colocation;
−Removed: ◦ a 9% decrease in our self-mining hash rate to 17.6 EH/s for the three months ended June 30, 2025, compared to 19.4 EH/s for the three months ended June 30, 2024;
−Removed: ◦ a 39% increase in the three month average network difficulty driven by a 61% increase in the three month average network hash rate over prior year;
−Removed: partially offset by
−Removed: • a 50% increase in the average price of bitcoin to $98,532 for the three months ended June 30, 2025, compared to $65,677 for the three months ended June 30, 2024;
−Removed: This decrease in the digital asset self-mining revenue was partially offset by:
−Removed: • a $20.4 million or 26% decrease in the total cost of digital asset self-mining driven by:
−Removed: ◦ a $10.5 million decrease in power costs due primarily to lower power rates;
−Removed: ◦ a $10.1 million or 36% decrease in depreciation expense, which was driven primarily by an approximate net decrease of 12,100 deployed miners during the current year;
−Removed: ◦ a $1.1 million decrease in facility operation expense and a $0.9 million decrease in other segment costs;
−Removed: partially offset by
−Removed: ◦ a $2.2 million or 37% increase in employee compensation due to increases in bonuses and salaries driven primarily by an increase in employee headcount.
−Removed: Digital Asset Hosted Mining
−Removed: For the three months ended June 30, 2025, gross profit in the Digital Asset Hosted Mining segment decreased by $6.4 million compared to the three months ended June 30, 2024, reflecting a Digital Asset Hosted Mining segment gross margin of 19% for the three months ended June 30, 2025, compared to a gross margin of 30% for the three months ended June 30, 2024.
−Removed: The decrease in Digital Asset Hosted Mining segment gross margin for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 was primarily due to:
−Removed: • a $19.2 million or 77% decrease in the digital asset hosted mining revenue driven primarily by our shift to Colocation operations, partially offset by:
−Removed: • a $12.8 million or 74% decrease in the total cost of digital asset hosted mining services driven primarily by:
−Removed: ◦ a $8.1 million decrease in power costs from lower usage driven primarily by our strategic shift to Colocation and lower rates;
−Removed: ◦ a $2.5 million decrease in other segment costs;
−Removed: ◦ a $0.9 million decrease in employee compensation:
−Removed: ◦ a $0.7 million decrease in depreciation expense and a $0.7 million decrease in facility operation expenses.
−Removed: For the three months ended June 30, 2025 and 2024, the top three hosting customers accounted for approximately 100% and 90%, respectively, of the Digital Asset Hosted Mining’s segment total revenue.
−Removed: For the three months ended June 30, 2025, gross profit in the Colocation segment was $1.1 million compared to $0.6 million for the three months ended June 30, 2024.
−Removed: The $0.5 million increase was driven by the completion of the first data hall at our Denton, Texas data center during the second quarter ended June 30, 2025.
−Removed: Colocation operations began during the quarter ended June 30, 2024, at our Austin, Texas data center.
−Removed: Colocation revenue includes a base license fee as well as the direct pass-through of power costs to
−Removed: our client, with no margin added.
−Removed: Colocation costs consist primarily of lease expense, the direct pass-through of power costs, and direct and indirect facilities operations expenses, including personnel and benefit costs and stock-based compensation.
−Removed: A reconciliation of the reportable consolidated segment gross profit to loss before income taxes included in our condensed consolidated statements of operations for the three months ended June 30, 2025 and 2024, is as follows (in thousands):
−Removed: Three Months Ended June 30,
−Removed: 2025 2024 $ Change
−Removed: Reportable segment gross profit
−Removed: $ 5,025 $ 38,817 $ (33,792)
−Removed: (Increase) decrease in fair value of digital assets
−Removed: (29,797) 584 (30,381)
−Removed: Decrease in fair value of energy derivatives
−Removed: Loss (gain) on disposal of property, plant and equipment
−Removed: 4,166 (268) 4,434
−Removed: Impairment of property, plant and equipment
−Removed: — 97,261 (97,261)
−Removed: Selling, general and administrative
−Removed: 56,940 31,383 25,557
−Removed: Operating loss
−Removed: (26,284) (90,682) 64,398
−Removed: Non-operating expense (income), net:
−Removed: Loss on debt extinguishment
−Removed: 1,377 120 1,257
−Removed: Interest (income) expense, net
−Removed: (1,185) 14,775 (15,960)
−Removed: Change in fair value of warrants and contingent value rights
−Removed: 909,958 796,035 113,923
−Removed: Reorganization items, net — — —
−Removed: Other non-operating expense, net
−Removed: 207 401 (194)
−Removed: Total non-operating expense, net
−Removed: 910,357 811,331 99,026
−Removed: Loss before income taxes
−Removed: $ (936,641) $ (902,013) $ (34,628)
−Removed: Results of Operations for the Six Months Ended June 30, 2025 and 2024
+Added: Results of Operations for the Three Months Ended March 31, 2025 and 2024
The following table sets forth our selected condensed consolidated statements of operations for each of the periods indicated (in thousands).
−Removed: Six Months Ended June 30,
+Added: Three Months Ended March 31,
2025 (As Restated)
16 unchanged sentences
8,213 77,646 (69,433)
−Removed: (Increase) decrease in fair value of digital assets
−Removed: (19,109) 41 (19,150)
−Removed: Decrease in fair value of energy derivatives
+Added: Change in fair value of digital assets
10,688 — 10,688
−Removed: Loss on disposal of property, plant and equipment
+Added: Gain from sales of digital assets
+Added: Change in fair value of energy derivatives
— 2,218 (2,218)
−Removed: Impairment of property, plant and equipment
+Added: Losses on disposal of property, plant and equipment
6 3,820 (3,814)
1 unchanged sentence
44,557 16,924 27,633
−Removed: Operating loss
+Added: Operating (loss) income
(47,038) 55,227 (102,265)
−Removed: Non-operating expense (income), net:
+Added: Non-operating expenses (income), net:
Loss on debt extinguishment
−Removed: 1,377 170 1,207
Interest (income) expense, net
4 unchanged sentences
Other non-operating expense, net 157 1,746 (1,589)
−Removed: Total non-operating expense, net
+Added: Total non-operating income, net
(623,494) (155,670) (467,824)
−Removed: Loss before income taxes
+Added: Income before income taxes
576,456 210,897 365,559
1 unchanged sentence
$ 576,251 $ 210,691 $ 365,560
−Removed: Six Months Ended June 30,
+Added: Three Months Ended March 31,
2025 2024 $ Change
11 unchanged sentences
Total revenue
−Removed: Total revenue decreased by $162.2 million or 51%, to $158.2 million for the six months ended June 30, 2025, from $320.4 million for the six months ended June 30, 2024, as a result of the factors described below.
−Removed: Digital asset self-mining revenue decreased by $131.1 million or 50%, to $129.6 million for the six months ended June 30, 2025, from $260.7 million for the six months ended June 30, 2024.
+Added: Total revenue decreased by $99.8 million or 56%, to $79.5 million for the three months ended March 31, 2025, from $179.3 million for the three months ended March 31, 2024, as a result of the factors described below.
+Added: Digital asset self-mining revenue decreased by $82.8 million or 55%, to $67.2 million for the three months ended March 31, 2025, from $150.0 million for the three months ended March 31, 2024.
The year over year decrease in self-mining revenue was driven primarily by:
−Removed: • a 70% decrease in bitcoin mined to 1,353 for the six months ended June 30, 2025, compared to 4,505 for the six months ended June 30, 2024, driven primarily by:
−Removed: ◦ an approximate net decrease of 12,100 deployed mining units due primarily to the strategic shift to Colocation;
+Added: • a 75% decrease in bitcoin mined to 719 for the three months ended March 31, 2025, compared to 2,825 for the three months ended March 31, 2024, driven primarily by:
+Added: ◦ an approximate net decrease of 16,800 deployed mining units due primarily to the operational shift to our Colocation business;
◦ a 50% decrease in block rewards as a result of the April 2024 halving;
−Removed: ◦ a 9% decrease in self-mining hash rate to 17.6 EH/s for the six months ended June 30, 2025, from 19.4 EH/s for the same period in the prior year;
−Removed: ◦ a 43% increase in the six month average network difficulty driven by a 53% increase in the six month average network hash rate over prior year.
−Removed: This decrease in self-mining revenue was partially offset by a 61% increase in the average price of bitcoin to $96,002 for the six months ended June 30, 2025, compared to $59,629 for the six months ended June 30, 2024;
−Removed: Total digital asset hosted mining revenue from customers decreased by $44.8 million or 83%, to $9.4 million for the six months ended June 30, 2025, from $54.2 million for the six months ended June 30, 2024.
+Added: ◦ a 6% decrease in self-mining hash rate to 18.1 EH/s for the three months ended March 31, 2025, from 19.3 EH/s for the same period in the prior year;
+Added: ◦ a 39% increase in network difficulty driven by a 58% increase in the twelve-month average network hash rate over prior year.
+Added: This decrease in self-mining revenue was partially offset by:
+Added: • a 74% increase in the average price of bitcoin to $93,443 for the three months ended March 31, 2025, compared to $53,579 for the three months ended March 31, 2024;
+Added: • an increase in our average self-mining hash rate fleet mix and efficiency to 24.4 joules per terahash.
+Added: Total digital asset hosted mining revenue from customers decreased by $25.6 million or 87%, to $3.8 million for the three months ended March 31, 2025, from $29.3 million for the three months ended March 31, 2024.
The decrease in hosted mining revenue from customers was primarily driven by our shift to our Colocation operations.
−Removed: Total Colocation revenue was $19.1 million for the six months ended June 30, 2025, compared to $5.5 million for the same period in the prior year.
−Removed: The $13.6 million increase was driven by the completion of the first data hall at our Denton, Texas data center during the second quarter ended June 30, 2025.
−Removed: Colocation operations began during the quarter ended June 30, 2024 at our Austin, Texas data center.
+Added: Total Colocation revenue was $8.6 million for the three months ended March 31, 2025, compared to nil for the same period in the prior year due to the initiation of Colocation operations at our Austin, Texas data center during the quarter ended June 30, 2024.
Cost of revenue
−Removed: Six Months Ended June 30,
+Added: Three Months Ended March 31,
2025 2024 $ Change
2 unchanged sentences
8,213 77,646 (69,433)
−Removed: Cost of revenue decreased by $59.0 million or 29%, to $144.9 million for the six months ended June 30, 2025, from $203.9 million for the six months ended June 30, 2024.
−Removed: As a percentage of total revenue, cost of revenue totaled 92% and 64% for the six months ended June 30, 2025 and 2024, respectively.
+Added: Cost of revenue decreased by $30.3 million or 30%, to $71.3 million for the three months ended March 31, 2025, from $101.6 million for the three months ended March 31, 2024.
+Added: As a percentage of total revenue, cost of revenue totaled 90% and 57% for the three months ended March 31, 2025 and 2024, respectively.
The decrease in cost of revenue was primarily attributable to:
• a $26.8 million decrease in power costs from lower rates and usage;
−Removed: • a $20.0 million decrease in depreciation expense driven by an increase in the number of miners becoming fully depreciated;
+Added: • a $9.3 million decrease in depreciation expense driven by the increase in the number of miners becoming fully depreciated;
• a $2.6 million decrease in proceed sharing costs.
−Removed: • a $1.4 million decrease in facility operation expenses, due primarily to lower facility maintenance expenses.
This decrease in cost of revenue was partially offset by:
−Removed: • a $8.7 million increase in Colocation segment costs, primarily a $4.4 million increase in Colocation power fees passed through to the customer and a $4.3 million increase in Colocation rent expense due to the expansion of our Colocation operation;
+Added: • a $8.1 million increase in Colocation segment costs, primarily rent, power, and payroll and benefits incurred during the current fiscal year with no comparable activity for the same period in fiscal 2024;
• a $1.3 million increase in payroll and benefits due to increases in bonuses and salaries driven primarily by an increase in employee headcount.
−Removed: (Increase) decrease in fair value of digital assets
−Removed: Six Months Ended June 30,
+Added: Change in fair value of digital assets
+Added: Three Months Ended March 31,
2025 2024 $ Change
−Removed: (Increase) decrease in fair value of digital assets
+Added: Change in fair value of digital assets
$ 10,688 $ — $ 10,688
Percentage of total revenue
−Removed: Change in fair value of digital assets was a gain of $19.1 million for the six months ended June 30, 2025, and reflects the increase in the price of bitcoin held during the six months ended June 30, 2025.
−Removed: Decrease in fair value of energy derivatives
−Removed: Six Months Ended June 30,
+Added: Change in fair value of digital assets was $10.7 million for the three months ended March 31, 2025, and reflects the decrease in the price of bitcoin held during the three months ended March 31, 2025.
+Added: Change in fair value of energy derivatives
+Added: Three Months Ended March 31,
2025 2024 $ Change
−Removed: Decrease in fair value of energy derivatives
+Added: Change in fair value of energy derivatives
$ — $ 2,218 $ (2,218)
Percentage of total revenue
−Removed: Change in fair value of energy derivatives was nil for the six months ended June 30, 2025, compared to a loss of $2.8 million for the six months ended June 30, 2024.
+Added: Change in fair value of energy derivatives was nil for the three months ended March 31, 2025, compared to $2.2 million for the three months ended March 31, 2024.
Change in fair value of energy derivative was related to the change in fair value of the energy forward purchase contract entered into in November 2023 which expired during the second quarter 2024.
−Removed: Loss on disposal of property, plant and equipment
−Removed: Six Months Ended June 30,
−Removed: 2025 2024 $ Change
Losses on disposal of property, plant and equipment
−Removed: $ 4,172 $ 3,552 $ 620
−Removed: Percentage of total revenue
−Removed: Losses on disposal of property, plant and equipment increased by $0.6 million to $4.2 million for the six months ended June 30, 2025, from $3.6 million for the six months ended June 30, 2024.
−Removed: The loss for the six months ended June 30, 2025 was primarily due to losses on disposal of transformers and miner equipment.
−Removed: The loss for the six months ended June 30, 2024 was primarily due to the disposal of mining equipment.
−Removed: Impairment of property, plant and equipment
−Removed: Six Months Ended June 30,
+Added: Three Months Ended March 31,
2025 2024 $ Change
−Removed: Impairment of property, plant and equipment
+Added: Losses on disposal of property, plant and equipment
$ 6 $ 3,820 $ (3,814)
Percentage of total revenue
−Removed: Impairment of property, plant and equipment was $97.3 million for the six months ended June 30, 2024, reflecting the impairment of fixed assets at sites committed to conversion from digital asset mining to high-density data center colocation operations during that period.
−Removed: No impairment charges were recorded for the six months ended June 30, 2025.
+Added: Losses on disposal of property, plant and equipment decreased by $3.8 million to a nominal amount for the three months ended March 31, 2025, from $3.8 million for the three months ended March 31, 2024.
+Added: The losses for the three months ended March 31, 2024 were primarily due to the write-off of leasehold improvements and disposal of containers and other mining equipment.
Selling, general and administrative
−Removed: Six Months Ended June 30,
+Added: Three Months Ended March 31,
2025 (As Restated)
3 unchanged sentences
Percentage of total revenue
−Removed: Selling, general and administrative expenses increased $53.2 million or 110%, to $101.5 million for the six months ended June 30, 2025, from $48.3 million for the six months ended June 30, 2024.
+Added: Selling, general and administrative expenses increased $27.6 million or 163%, to $44.6 million for the three months ended March 31, 2025, from $16.9 million for the three months ended March 31, 2024.
The increase was driven primarily by:
1 unchanged sentence
• a $7.2 million increase in Colocation segment site startup costs which primarily include payroll, benefits, and stock-based compensation for activities related to the startup of our Colocation segment sites that have transitioned from digital asset site operations and administration;
−Removed: • a $5.1 million increase in payroll and benefits expense due to increases in bonuses and salaries driven primarily by an increase in employee headcount;
• a $4.4 million increase in the HPC colocation segment site conversion demolition costs which were improperly capitalized in previously issued financial statements and reclassified to expense as part of the restatement described in Note 3 — Restatement of Previously Issued Financial Statements;
−Removed: • a $4.4 million increase in professional services, partially offset by
−Removed: • a $2.1 million decrease in rent expenses.
−Removed: Non-operating expense, net
−Removed: Six Months Ended June 30,
+Added: • a $2.5 million increase in payroll and benefits expense due to increases in bonuses and salaries driven primarily by an increase in employee headcount;
+Added: partially offset by
+Added: • a $1.1 million decrease in in post-emergence bankruptcy advisor fees and a $1.0 million decrease in rent expenses.
+Added: Non-operating income, net
+Added: Three Months Ended March 31,
2025 2024 $ Change
−Removed: Non-operating expense (income), net:
+Added: Non-operating expenses (income), net:
Loss on debt extinguishment
5 unchanged sentences
Other non-operating expense, net 157 1,746 (1,589)
−Removed: Total non-operating expense, net
+Added: Total non-operating income, net
$ (623,494) $ (155,670) $ (467,824)
−Removed: Total non-operating expense, net decreased by $368.8 million, to $286.9 million for the six months ended June 30, 2025, from total non-operating income, net of $655.7 million for the six months ended June 30, 2024.
−Removed: The decrease in total non-operating expense, net was primarily driven by:
−Removed: • During the six months ended June 30, 2025, we incurred a $447.4 million decrease in Change in fair value of warrant and contingent value rights due to a $3.02 per share increase in the Company’s stock price to $17.07 per share as of June 30, 2025, from $14.05 per share as of December 31, 2024, compared to a $5.86 increase in stock price to $9.30 as of June 30, 2024, from $3.44 as of January 23, 2024, the date the Company emerged from bankruptcy;
−Removed: • a $32.2 million decrease in Interest (income) expense, net driven primarily by an $18.2 million decrease in interest expense due to lower interest rates during the six months ended June 30, 2025, and a $14.4 million increase in proceeds from money market funds.
−Removed: This decrease was partially offset by $111.4 million in Reorganization items, net incurred during the six months ended June 30, 2024 with no related activity during the same period in the current year.
−Removed: Reorganization items, net consisted of costs directly associated with the reorganization during the bankruptcy period, including professional fees (including reimbursed third-party professional fees) and other bankruptcy related costs, negotiated settlements, satisfaction of allowed claims, and debtor-in-possession finance fees.
+Added: Total non-operating income, net increased by $467.8 million, to $623.5 million for the three months ended March 31, 2025, from total non-operating income, net of $155.7 million for the three months ended March 31, 2024.
+Added: The increase in total non-operating income, net was primarily driven by:
+Added: • During the three months ended March 31, 2025, we incurred a $621.5 million decrease in Change in fair value of warrant and contingent value rights due to the decrease in the Company’s stock price to $7.24 per share as of March 31, 2025, from $14.05 per share as of December 31, 2024.
+Added: The decrease in stock price resulted in a $634.3 million decrease in the fair value of the warrant liabilities during the three months ended March 31, 2025, partially offset by a $12.8 million increase in fair value of contingent value rights;
+Added: • a $16.3 million decrease in Interest expense, net driven primarily by an $8.7 million decrease in interest expense due to lower interest rates during the three months ended March 31, 2025, and a $7.9 million increase in proceeds from money market funds.
+Added: This decrease was partially offset by $111.4 million in Reorganization items, net incurred during the three months ended March 31, 2024 with no related activity during the same period in the current year.
+Added: Reorganization items, net consisted of costs directly associated with the reorganization during the bankruptcy period, including professional fees (including reimbursed third-party
+Added: professional fees) and other bankruptcy related costs, negotiated settlements, satisfaction of allowed claims, and debtor-in-possession finance fees.
Segment Total Revenue and Gross Profit
The following table presents total revenue and gross profit by reportable segment for the periods presented (in thousands, except percentages):
−Removed: Six Months Ended June 30,
+Added: Three Months Ended March 31,
2025 2024 $ Change
29 unchanged sentences
Power fees passed through to customer 2,586 — 2,586
−Removed: 6,050 1,663 4,387
Total Colocation revenue 8,573 — 8,573
−Removed: 19,133 5,519 13,614
Cost of Colocation services:
16 unchanged sentences
Digital Asset Self-Mining
−Removed: For the six months ended June 30, 2025, gross profit in the Digital Asset Self-Mining segment decreased by $90.3 million compared to the six months ended June 30, 2024, reflecting a Digital Asset Self-Mining segment gross margin of 7% for the six months ended June 30, 2025, compared to 38% for the six months ended June 30, 2024.
+Added: For the three months ended March 31, 2025, gross profit in the Digital Asset Self-Mining segment decreased by $62.4 million compared to the three months ended March 31, 2024, reflecting a Digital Asset Self-Mining segment gross margin of 9% for the three months ended March 31, 2025, compared to 46% for the three months ended March 31, 2024.
The decrease in the Digital Asset Self-Mining segment gross profit was primarily due to a 55% decrease in self-mining revenue driven by:
−Removed: • a 70% decrease in bitcoin mined to 1,353 for the six months ended June 30, 2025, compared to 4,505 for the six months ended June 30, 2024, driven primarily by:
−Removed: ◦ an approximate net decrease of 12,100 deployed mining units due primarily to the strategic shift to Colocation;
+Added: • a 75% decrease in bitcoin mined to 719 for the three months ended March 31, 2025, compared to 2,825 for the three months ended March 31, 2024, driven primarily by:
+Added: ◦ an approximate net decrease of 16,800 deployed mining units due primarily to the operational shift to Colocation;
◦ a 50% decrease in block rewards as a result of the April 2024 halving;
−Removed: ◦ a 9% decrease in our self-mining hash rate to 17.6 EH/s for the six months ended June 30, 2025, compared to 19.4 EH/s for the six months ended June 30, 2024;
−Removed: ◦ a 43% increase in the six month average network difficulty driven by a 53% increase in the six month average network hash rate over prior year;
+Added: ◦ a 6% decrease in our self-mining hash rate to 18.1 EH/s for the three months ended March 31, 2025, compared to 19.3 EH/s for the three months ended March 31, 2024;
+Added: ◦ an 39% increase in network difficulty driven by a 58% increase in the twelve-month average network hash rate over prior year;
partially offset by
−Removed: • a 61% increase in the average price of bitcoin to $96,002 for the six months ended June 30, 2025, compared to $59,629 for the six months ended June 30, 2024;
+Added: • a 74% increase in the average price of bitcoin to $93,443 for the three months ended March 31, 2025, compared to $53,579 for the three months ended March 31, 2024;
This decrease in the digital asset self-mining revenue was partially offset by:
5 unchanged sentences
Digital Asset Hosted Mining
−Removed: For the six months ended June 30, 2025, gross profit in the Digital Asset Hosted Mining segment decreased by $13.9 million compared to the six months ended June 30, 2024, reflecting a Digital Asset Hosted Mining segment gross margin of 30% for the six months ended June 30, 2025, compared to a gross margin of 31% for the six months ended June 30, 2024.
−Removed: The decrease in Digital Asset Hosted Mining segment gross margin for the six months ended June 30, 2025, compared to the six months ended June 30, 2024 was primarily due to:
+Added: For the three months ended March 31, 2025, gross profit in the Digital Asset Hosted Mining segment decreased by $7.5 million compared to the three months ended March 31, 2024, reflecting a Digital Asset Hosted Mining segment gross margin of 46% for the three months ended March 31, 2025, compared to a gross margin of 32% for the three months ended March 31, 2024.
+Added: The increase in Digital Asset Hosted Mining segment gross margin for the three months ended March 31, 2025, compared to the three months ended March 31, 2024 was primarily due to:
• a $25.6 million or 87% decrease in the digital asset hosted mining revenue driven primarily by our shift to Colocation operations, partially offset by:
• a $18.0 million or 90% decrease in the total cost of digital asset hosted mining services driven primarily by:
−Removed: ◦ a $20.2 million decrease in power costs from lower usage driven primarily by our strategic shift to Colocation and lower rates;
+Added: ◦ a $12.1 million decrease in power costs from lower usage driven primarily by our operational shift to Colocation segment and lower rates;
◦ a $3.0 million decrease in other segment costs;
◦ a $1.1 million decrease in depreciation expense and a $1.1 million decrease in employee compensation.
−Removed: For the six months ended June 30, 2025 and 2024, the top three hosting customers accounted for approximately 96% and 87%, respectively, of the Digital Asset Hosted Mining’s segment total revenue.
−Removed: For the six months ended June 30, 2025, gross profit in the Colocation segment was $1.6 million compared to $0.6 million for the six months ended June 30, 2024.
−Removed: The $1.0 million increase was driven by the completion of the first data hall at our Denton, Texas data center during the second quarter ended June 30, 2025.
−Removed: Colocation operations began during the quarter ended June 30, 2024 at our Austin, Texas data center.
+Added: For the three months ended March 31, 2025 and 2024, the top three hosting customers accounted for approximately 100% and 86%, respectively, of the Digital Asset Hosted Mining’s segment total revenue.
+Added: For the three months ended March 31, 2025, gross profit in the Colocation segment was $0.5 million compared to nil for the three months ended March 31, 2024, due to the Colocation segment starting operation during the quarter ended June 30, 2024.
Colocation revenue includes a base license fee as well as the direct pass-through of power costs to our client, with no margin added.
−Removed: Colocation costs consist primarily of lease expense, the direct pass-through of power costs, and direct and indirect facilities operations expenses, including personnel and benefit costs and stock-based compensation.
−Removed: A reconciliation of the reportable segment gross profit to loss before income taxes included in our condensed consolidated statements of operations for the six months ended June 30, 2025 and 2024, is as follows (in thousands):
−Removed: Six Months Ended June 30,
+Added: Colocation costs at our Austin, Texas data center consist primarily of lease expense, the direct pass-through of power costs, and direct and indirect facilities operations expenses, including personnel and benefit costs and stock-based compensation.
+Added: A reconciliation of the reportable segment gross profit to income before income taxes included in our condensed consolidated statements of operations for the three months ended March 31, 2025 and 2024, is as follows (in thousands):
+Added: Three Months Ended March 31,
2025 (As Restated)
2 unchanged sentences
$ 8,213 $ 77,646 $ (69,433)
−Removed: (Increase) decrease in fair value of digital assets (19,109) 41 (19,150)
−Removed: Decrease in fair value of energy derivatives
+Added: Change in fair value of digital assets 10,688 — 10,688
+Added: Gain from sales of digital assets
+Added: Change in fair value of energy derivatives
— 2,218 (2,218)
1 unchanged sentence
6 3,820 (3,814)
−Removed: Impairment of property, plant and equipment
−Removed: — 97,261 (97,261)
Selling, general and administrative
44,557 16,924 27,633
−Removed: Operating loss
−Removed: (73,322) (35,455) (37,867)
−Removed: Non-operating expense (income), net:
+Added: Operating (loss) income (47,038) 55,227 (102,265)
+Added: Non-operating expenses (income), net:
Loss on debt extinguishment
−Removed: 1,377 170 1,207
Interest (income) expense, net
3 unchanged sentences
Other non-operating expense, net 157 1,746 (1,589)
−Removed: Total non-operating expense, net
+Added: Total non-operating income, net
(623,494) (155,670) (467,824)
−Removed: Loss before income taxes
+Added: Income before income taxes
$ 576,456 $ 210,897 $ 365,559
2 unchanged sentences
We finance our operations primarily through debt issuances, cash generated from operations, including the sale of self-mined bitcoin and fees from leasing Colocation segment data center space, equipment financing arrangements, and sales of equity securities.
−Removed: We have assessed our current and expected operating and capital expenditure requirements and our current and expected sources of liquidity, and have determined, based on our forecasted financial results and financial condition as of June 30, 2025, that our operating cash flows, existing cash balances, and continued access to debt markets will be sufficient to satisfy our cash requirements over the next twelve months and beyond.
+Added: We have assessed our current and expected operating and capital expenditure requirements and our current and expected sources of liquidity, and have determined, based on our forecasted financial results and financial condition as of March 31, 2025, that our operating cash flows, existing cash balances, and continued access to debt markets will be sufficient to satisfy our cash requirements over the next twelve months and beyond.
Cash, Cash Equivalents, Restricted Cash and Cash Flows
Cash and cash equivalents include all cash balances and highly liquid investments with original maturities of three months or less from the date of acquisition.
−Removed: June 30, December 31,
+Added: March 31, December 31,
2025 2024 $ Change
2 unchanged sentences
Total cash, cash equivalents and restricted cash $ 698,725 $ 836,980 $ (138,255)
−Removed: As of June 30, 2025, the Company had no restricted cash.
−Removed: As of December 31, 2024, restricted cash consisted of cash held in escrow to pay for construction and development activities.
+Added: As of March 31, 2025 and December 31, 2024, restricted cash of $0.8 million, consisted of cash held in escrow to pay for construction and development activities.
The following table summarizes our cash, cash equivalents and restricted cash and cash flows for the periods indicated.
−Removed: Six Months Ended June 30,
+Added: Three Months Ended March 31,
2025 (As Restated)
15 unchanged sentences
Other drivers of the changes in net cash from operating activities include research and development costs, sales and marketing costs and general and administrative expenses (including personnel expenses and fees for professional services) and interest payments on debt.
−Removed: Net cash used in operating activities was $11.0 million for the six months ended June 30, 2025 and net cash provided by operating activities was $23.4 million for the six months ended June 30, 2024.
+Added: Net cash used in operating activities was $45.0 million for the three months ended March 31, 2025 and net cash provided by operating activities was $22.2 million for the three months ended March 31, 2024.
The decrease in net cash provided by operating activities was primarily due to a decrease in $67.4 million from our bitcoin holding strategy and a decrease of $32.9 million in net income before the effects of non-cash adjustments.
−Removed: The decrease in net cash provided by operating activities was offset by an increase of $167.2 million from operating assets and liabilities driven primarily by an increase in deferred revenue from colocation services of $131.3 million.
+Added: The decrease in net cash provided by operating activities was offset by an increase of $36.0 million from operating assets and liabilities driven primarily by customer prepaid base license fees of $42.0 million used in funding property, plant, and equipment purchases.
Investing Activities
Our net cash used in investing activities consists primarily of purchases of property, plant and equipment.
−Removed: Net cash used in investing activities for the six months ended June 30, 2025 and 2024, was $208.6 million and $35.2 million, respectively.
−Removed: Purchases of property, plant, and equipment were $205.3 million during the six months ended June 30, 2025.
+Added: Net cash used in investing activities for the three months ended March 31, 2025 and 2024, was $89.0 million and $32.0 million, respectively.
+Added: Purchases of property, plant, and equipment were $84.0 million during the three months ended March 31, 2025.
Of those purchases, $55.1 million related to the Colocation segment and $28.9 million related to the digital asset mining segments.
−Removed: Prepaid base license fees of $131.3 million recognized as deferred revenue during the six months ended June 30, 2025 and included in the operating activities above, funded a portion of the property, plant, and equipment purchases for the Colocation segment.
−Removed: The increase in net cash used in investing activities was further driven by a $5.0 million purchase of a strategic equity investment.
+Added: Prepaid base license fees of $42.0 million recognized as deferred revenue during the three months ended March 31, 2025 and included in the operating activities above, funded a portion of the property, plant, and equipment purchases for the Colocation segment.
+Added: The increase in investing cash used was further driven by a $5.0 million purchase of a strategic equity investment.
Financing Activities
−Removed: Net cash used in financing activities consists of principal payments on debt, including notes payable and finance leases, net of proceeds from stock issuances.
−Removed: Net cash used in financing activities was $36.0 million for the six months ended June 30, 2025, compared to net cash provided of $39.2 million for the six months ended June 30, 2024.
−Removed: The change was primarily driven by $26.9 million in debt extinguishment payments made during the current period and the absence of $55.0 million in proceeds from the issuance of common stock and a $20.0 million draw from the exit facility that occurred in the prior-year period.
−Removed: The decreases were partially offset by a $19.7 million reduction in principal payments on debt.
+Added: Net cash used in financing activities consists of proceeds from stock issuances and principal payments on debt, including notes payable and finance leases.
+Added: Net cash used in financing activities for the three months ended March 31, 2025 was $4.2 million.
+Added: Net cash provided by financing activities for the three months ended March 31, 2024 was $54.4 million.
+Added: The decrease in net cash provided by financing activities was related to $55.0 million from the issuance of common stock and a $20.0 million draw from the exit facility during the three months ended March 31, 2024.
+Added: The decrease in cash provided by financing activities was partially offset by decreases in principal payments on debt of $9.7 million, restricted stock tax holding obligations of $3.4 million, and principal repayments of finance leases of $3.0 million.
Future Commitments and Contractual Obligations
Our material cash commitments from known contractual and other obligations consist primarily of obligations for long-term debt and related interest, leases for property and equipment, and capital expenditures related to the conversion of a significant portion of our data centers to high-density colocation operations.
−Removed: Certain amounts included in our contractual obligations as of June 30, 2025, are based on our estimates and assumptions about these obligations, including their duration, anticipated actions by third parties and other factors.
−Removed: For more information regarding the Company’s future commitments and contractual obligations refer to Notes 6 — Leases, 7 — Convertible and Other Notes Payable and 10 — Commitments and Contingencies to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
+Added: Certain amounts included in our contractual obligations as of March 31, 2025, are based on our estimates and assumptions about these obligations, including their duration, anticipated actions by third parties and other factors.
+Added: For more information regarding the Company’s future commitments and contractual obligations refer to Notes 5 — Leases, 6 — Convertible and Other Notes Payable and 9 — Commitments and Contingencies to our unaudited condensed consolidated financial statements included elsewhere in this Amendment.
Critical Accounting Estimates
7 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.