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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 nine months ended September 30, 2025, compared to September 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 and six months ended June 30, 2025, compared to June 30, 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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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 artificial intelligence (“AI”) and high-performance compute (“HPC”) related workloads.
−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 self-mining operations.
−Removed: In 2024, as a part of this transition, we announced arrangements at multiple sites for the provision of high-density colocation services to a third-party provider of cloud-based services for AI and HPC workloads.
−Removed: Under these arrangements, we expect to deliver 250MW of billable capacity by the end of 2025.
−Removed: We currently intend to repurpose our remaining facilities currently used in our digital asset mining businesses to support our high-density colocation computing services business as circumstances allow and in a manner designed to retain access to electrical power under our control, maximize the value of our digital asset mining equipment to third parties, and fulfill our existing obligations to suppliers and 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 colocation customer, but also to support our commitment to meeting the growing demand for high-density colocation solutions and diversifying our revenue streams.
+Added: 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.
+Added: 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.
+Added: 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”).
+Added: 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.
+Added: 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.
Currently, the vast majority of our revenue is from mining bitcoin for our own account (“self-mining”).
−Removed: We will continue to profitably mine digital assets while we convert our data centers for alternative high-density colocation service business opportunities.
−Removed: We had billable power load of approximately 895 megawatts (“MW”) as of September 30, 2025.
−Removed: We had gross power of approximately 1,370 MW as of September 30, 2025.
−Removed: We continue to be in active discussions with both our existing and future potential utility providers regarding additional power allocations.
−Removed: Our average self-mining fleet energy efficiency for the three months ended September 30, 2025 and 2024 was 24.6 and 24.5 joules per terahash, respectively.
+Added: 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.
+Added: We had billable power load of approximately 875 megawatts (“MW”) as of June 30, 2025.
+Added: We had gross power of approximately 1,335 MW as of June 30, 2025.
+Added: Our average self-mining fleet energy efficiency for the three months ended June 30, 2025 and 2024 was 24.7 joules per terahash.
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 $239.3 million and $415.7 million for the nine months ended September 30, 2025 and 2024, respectively.
−Removed: We generated an operating loss of $128.1 million for the nine months ended September 30, 2025 and $76.7 million for the nine months ended September 30, 2024.
−Removed: We generated net loss of $504.6 million and $1.15 billion for the nine months ended September 30, 2025 and 2024, respectively.
−Removed: Our adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) was $13.0 million and $144.2 million for the nine months ended September 30, 2025 and 2024, respectively.
+Added: Our total revenue was $158.2 million and $320.4 million for the six months ended June 30, 2025 and 2024, respectively.
+Added: 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.
+Added: We generated net loss of $360.5 million and $691.5 million for the six months ended June 30, 2025 and 2024, respectively.
+Added: Our adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) was $15.4 million and
+Added: $134.0 million for the six months ended June 30, 2025 and 2024, respectively.
Adjusted EBITDA is a non-GAAP financial measure.
−Removed: See “ Key Business Operating Metrics and Non-GAAP Financial Measures ” below for our definition of, and additional information related to Adjusted EBITDA, including a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net loss.
+Added: See “ Key Business Operating Metrics and Non-GAAP Financial Measures ” below for our definition of, and additional information related to Adjusted EBITDA.
Recent Developments
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The transaction is subject to the approval of the Company’s stockholders and customary closing conditions, including applicable regulatory approvals.
−Removed: The special meeting of the Company’s stockholders to consider and vote on the Merger Agreement is scheduled to be held on October 30, 2025.
−Removed: Stockholders of record as of September 19, 2025 are entitled to notice of, and to vote at, the special meeting.
+Added: During the three months ended June 30, 2025, the Company repaid five higher-interest debt facilities totaling approximately $26.6 million in principal.
+Added: The repayment resulted in a $1.4 million loss on debt extinguishment.
+Added: 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.
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 AI and HPC workloads.
+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 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.
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 AI and HPC workloads.
−Removed: As we contract with additional colocation customers, our digital infrastructure will transition from digital asset mining to providing high-density colocation services.
+Added: 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.
+Added: 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.
We will continue to mine digital assets only so long as such activity remains profitable.
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Our business strategy is to grow our revenue and profitability by expanding our large-scale data center infrastructure portfolio configured for specialized computers performing specific, high-value applications such as cloud computing, machine learning and artificial intelligence, and maximizing the portion of our infrastructure portfolio contracted for high-density colocation services.
−Removed: We intend to continue to strategically develop and make operational the infrastructure necessary to support our existing contractual commitments to our existing colocation customer and to support expected customer growth and additional demand by leveraging our data center expertise and capabilities.
+Added: We intend to continue to strategically develop and make operational the infrastructure necessary to support our existing contractual commitments to our existing HPC customer and to support expected customer growth and additional demand by leveraging our data center expertise and capabilities.
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.
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Our Colocation operation segment generates revenue by providing colocation, cloud and connectivity services to customers in exchange for a fee.
−Removed: Our Colocation operation segment provides space, power, cooling, facilities operations, security and other services to third-party customers to support workloads for machine learning and artificial intelligence.
+Added: Our Colocation operation segment provides space, power, cooling, facilities operations, security and other services to third-party HPC customers to support workloads for machine learning and artificial intelligence.
Mining Equipment
We own and host specialized computers (“miners”) configured for the purpose of validating transactions on multiple digital asset network blockchains (referred to as, “mining”), predominantly the Bitcoin network.
−Removed: 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 in return for bitcoin digital asset rewards.
−Removed: The tables below summarize the total number of self- and hosted miners in operation as of September 30, 2025, December 31, 2024 and September 30, 2024 (miners in thousands):
−Removed: Bitcoin Miners in Operation as of September 30, 2025
+Added: 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.
+Added: 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):
+Added: Bitcoin Miners in Operation as of June 30, 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 September 30, 2024
+Added: Bitcoin Miners in Operation as of June 30, 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 nine months ended September 30, 2025 and 2024, were as follows (in thousands):
−Removed: September 30, 2025 September 30, 2024
+Added: Activity related to our digital asset balances for the six months ended June 30, 2025 and 2024, were as follows (in thousands):
+Added: June 30, 2025 June 30, 2024
Digital assets, beginning of period $ 23,893 $ 2,284
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Proceeds from sales of digital assets — (277,562)
−Removed: (Increase) decrease in fair value of digital assets 30,066 (247)
+Added: Change in fair value of digital assets 19,109 (41)
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 September 30, 2025 and December 31, 2024, there was $0.5 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 September 30, 2024 and December 31, 2023, there was $0.7 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 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.
+Added: 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.
Performance Metrics
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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
−Removed: 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 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) 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)
+Added: 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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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: There was no material impact to our financial statements as a result of this new law.
+Added: 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 operations, 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.
+Added: 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.
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.
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Our Competition and Customers
−Removed: In addition to factors underlying our mining business growth and profitability, the success of our Colocation operations 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 operation 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 operations, we compete with other providers of high-power data center capacity, such as major data center real estate investment trusts, developers of data centers, hyperscalers and bitcoin miners with capacity suitable for high-density colocation services.
+Added: 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.
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 operations 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 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.
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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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
−Removed: data center market to satisfy emerging requirements for advanced technologies supporting emerging workloads such as artificial intelligence.
+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 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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The law further permits utilities to allocate certain transmission and infrastructure upgrade costs to the interconnecting customer.
−Removed: provisions may impact the timing, economics, or operational flexibility of our existing and future data center deployments within Texas.
+Added: 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 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).
−Removed: September 30,
+Added: For a definition
+Added: 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 September 30, Nine Months Ended September 30,
+Added: Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
Adjusted EBITDA (in millions) $ 21.5 $ 46.0 $ 15.4 $ 134.0
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
+Added: Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
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Power cost per bitcoin self-mined
+Added: $ 48,407 $ 24,533 $ 45,099 $ 19,136
Operational costs per bitcoin self-mined 1
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Power cost per terahash
+Added: $ 0.025 $ 0.025 $ 0.025 $ 0.026
Operational costs per terahash 1
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Generally, miners with a greater hash rate relative to the global Bitcoin network hash rate at a given time will over time, have a greater chance of earning a bitcoin, as compared to miners with relatively lower total hash rates.
−Removed: Further, with the increase in demand for bitcoin contributing to an increase in computational resources for digital asset mining, the global network hash rate has increased,
−Removed: and we expect it to continue to increase.
+Added: Further, with the increase in demand for bitcoin contributing to an increase in computational resources for digital asset mining, the global network hash rate has increased, and we expect it to continue to increase.
As such, our self-mining hash rate provides useful information to investors because it demonstrates our capacity, and our competitive advantage, for mining bitcoin, which contributes to our digital asset self-mining revenue.
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 16.3 EH/s and 20.4 EH/s as of September 30, 2025 and 2024, respectively, representing a 20% decrease year over year.
−Removed: Our combined self-mining and customer and related party hosting hash rate decreased 21%, to 18.5 EH/s as of September 30, 2025, from 23.4 EH/s as of September 30, 2024.
+Added: 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.
+Added: 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.
Cost of Self-Mining One Bitcoin and Hash Cost
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Adjusted EBITDA
−Removed: Adjusted EBITDA is a non-GAAP financial measure defined as our net 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 (loss), 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, (xii) transaction costs incurred in connection with the Merger Agreement, including advisory, legal, and other professional or consulting fees, (xiii) loss on legal settlements that are not indicative of ongoing business operations, and (xiv) certain additional non-cash items that do not reflect the performance of our ongoing business operations.
−Removed: For additional information, including the reconciliation of net loss to Adjusted EBITDA, please refer to the table below.
+Added: (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: For additional information, including the reconciliation of net income to Adjusted EBITDA, please refer to the table below.
We believe Adjusted EBITDA is an important measure because it allows management, investors, and our Board of Directors to evaluate and compare our operating results, including our return on capital and operating efficiencies, from period-to-period by making the adjustments described above.
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Our computation of Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies because not all companies calculate this measure in the same fashion.
−Removed: You should review the reconciliation of net loss 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 nine months ended September 30, 2025 and 2024 (in thousands):
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 (As Restated)
+Added: You should review the reconciliation of net income to Adjusted EBITDA below and not rely on any single financial measure to evaluate our business.
+Added: 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):
+Added: Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 (As Restated)
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Unrealized fair value adjustment on energy derivatives — (1,465) — (2,262)
−Removed: Loss on disposal of property, plant and equipment
+Added: Loss (gain) on disposal of property, plant and equipment
4,166 (268) 4,172 3,552
Impairment of property, plant and equipment
+Added: — 97,261 — 97,261
+Added: Site conversion demolition costs
Loss on debt extinguishment
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Colocation startup costs
−Removed: Site conversion demolition costs
−Removed: Merger Agreement related costs
— 4,601 — 4,601
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909,958 796,035 288,494 735,921
−Removed: Loss on legal settlements
−Removed: 15,075 356 15,504 2,070
−Removed: Other non-operating income, net (8) (2,359) (73) (1,926)
+Added: Other non-operating expense, net 207 401 364 2,147
Adjusted EBITDA
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The Company’s Colocation operations began during the second quarter of 2024.
−Removed: • Digital asset self-mining revenue.
+Added: • Digital asset self-mining rev enue.
We operate a digital asset self-mining operation using specialized computers equipped with ASIC chips (known as “miners”) to solve complex cryptographic algorithms in support of the bitcoin blockchain (in a process known as “solving a block”) in exchange for digital asset rewards (primarily bitcoin).
The Company participates in “mining pools” organized by “mining pool operators” in which we share our mining power (known as “hash rate”) with the hash rate generated by other miners participating in the pool to earn digital asset rewards.
−Removed: The mining pool operator provides
−Removed: a service that coordinates the computing power of the independent mining enterprises participating in the mining pool.
+Added: The mining pool operator provides a service that coordinates the computing power of the independent mining enterprises participating in the mining pool.
The pool uses software that coordinates the pool members’ mining power, identifies new block rewards, records how much hash rate each participant contributes to the pool, and assigns digital asset rewards earned by the pool among its participants in proportion to the hash rate each participant contributed to the pool in connection with solving a block.
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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 digital asset hosted mining customer contracts based on proceed sharing.
−Removed: Under these contracts, customers paid for the cost of digital asset hosting and infrastructure, and we shared the proceeds that were generated.
−Removed: These proceed sharing contracts expired during the third quarter of 2024.
+Added: During the second quarter of 2023, we initiated our first new digital asset hosted mining customer contracts based on
+Added: proceed sharing.
+Added: 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 and Denton, Texas, and Marble, North Carolina high-density data centers.
+Added: 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.
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.
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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 and Denton, Texas, and Marble, North Carolina 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 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.
Colocation power fees are passed through to the customer without markup and are included on a gross basis in Cost of Colocation services.
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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 on disposal of property, plant and equipment
−Removed: Loss 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.
+Added: Loss (gain) on disposal of property, plant and equipment
+Added: 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.
Impairment of property, plant and equipment
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Selling, general and administrative
−Removed: Selling, general and administrative expenses includes compensation, benefits, and other personnel-related expenses, stock-based compensation, rent, Colocation segment organizational and site startup costs, transaction costs incurred in connection with the Merger Agreement, including advisory, legal, and other professional or consulting fees, 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.
+Added: 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.
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.
2 unchanged sentences
Non-operating expense (income), net:
−Removed: 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, loss on legal settlements, and other non-operating (income) expenses, net.
+Added: 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.
Reorganization items, net consists 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.
9 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 September 30, 2025 and 2024
+Added: Results of Operations for the Three Months Ended June 30, 2025 and 2024
The following table sets forth our selected condensed consolidated statements of operations for each of the periods indicated (in thousands).
−Removed: Three Months Ended September 30,
−Removed: 2025 (As Restated)
+Added: Three Months Ended June 30,
2025 2024 $ Change
14 unchanged sentences
Total cost of revenue 73,603 102,285 (28,682)
−Removed: Gross profit (loss) 3,905 (156) 4,061
+Added: 5,025 38,817 (33,792)
(Increase) decrease in fair value of digital assets
(29,797) 584 (30,381)
−Removed: Loss on disposal of property, plant and equipment
+Added: Decrease in fair value of energy derivatives
+Added: Loss (gain) on disposal of property, plant and equipment
4,166 (268) 4,434
+Added: Impairment of property, plant and equipment
+Added: — 97,261 (97,261)
Selling, general and administrative
4 unchanged sentences
Loss on debt extinguishment
+Added: 1,377 120 1,257
Interest (income) expense, net
2 unchanged sentences
909,958 796,035 113,923
−Removed: Loss on legal settlements
−Removed: 15,075 356 14,719
−Removed: Other non-operating income, net
+Added: Other non-operating expense, net
207 401 (194)
5 unchanged sentences
$ (936,799) $ (902,157) $ (34,642)
−Removed: Three Months Ended September 30,
+Added: Three Months Ended June 30,
2025 2024 $ Change
11 unchanged sentences
Total revenue
−Removed: Total revenue decreased by $14.3 million or 15%, to $81.1 million for the three months ended September 30, 2025, from $95.4 million for the three months ended September 30, 2024, as a result of the factors described below.
−Removed: Digital asset self-mining revenue decreased by $10.7 million or 16%, to $57.4 million for the three months ended September 30, 2025, from $68.1 million for the three months ended September 30, 2024.
+Added: 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.
+Added: 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.
The year over year decrease in self-mining revenue was driven primarily by:
−Removed: • a 55% decrease in bitcoin mined to 502 for the three months ended September 30, 2025, compared to 1,115 for the three months ended September 30, 2024, driven primarily by:
+Added: • 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:
◦ an approximate net decrease of 12,100 deployed mining units due primarily to the strategic shift to Colocation;
−Removed: ◦ a 20% decrease in self-mining hash rate to 16.3 EH/s for the three months ended September 30, 2025, from 20.4 EH/s for the same period in the prior year;
+Added: ◦ 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;
◦ 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 88% increase in the average price of bitcoin to $114,388 for the three months ended September 30, 2025, compared to $61,002 for the three months ended September 30, 2024.
−Removed: Total digital asset hosted mining revenue from customers decreased by $8.2 million or 48%, to $8.7 million for the three months ended September 30, 2025, from $16.9 million for the three months ended September 30, 2024.
+Added: 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.
+Added: 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.
The decrease in hosted mining revenue from customers was primarily driven by our shift to Colocation operations.
−Removed: Total Colocation revenue was $15.0 million for the three months ended September 30, 2025, compared to $10.3 million for the same period in the prior year.
−Removed: This $4.6 million increase was driven by the completion of data halls at our Denton, Texas data center during the quarters ended June 30, 2025 and September 30, 2025, and initial capacity at our Marble, North Carolina data center during the quarter ended September 30, 2025.
−Removed: While we expect to meet all fiscal 2025 delivery dates, as previously disclosed, a variety of weather and construction related delays have moved the delivery dates to later in fiscal 2025 than planned.
+Added: 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.
+Added: 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.
+Added: Colocation operations began during the quarter ended June 30, 2024, at our Austin, Texas data center.
+Added: 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.
Cost of Revenue
−Removed: Three Months Ended September 30,
+Added: Three Months Ended June 30,
2025 2024 $ Change
1 unchanged sentence
$ 73,603 $ 102,285 $ (28,682)
−Removed: Gross profit (loss)
5,025 38,817 (33,792)
−Removed: Cost of revenue decreased by $18.3 million or 19%, to $77.2 million for the three months ended September 30, 2025, from $95.5 million for the three months ended September 30, 2024.
−Removed: As a percentage of total revenue, cost of revenue totaled 95% and 100% for the three months ended September 30, 2025 and 2024, respectively.
+Added: 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.
+Added: As a percentage of total revenue, cost of revenue totaled 94% and 72% for the three months ended June 30, 2025 and 2024, respectively.
The decrease in cost of revenue was primarily attributable to:
+Added: • a $18.5 million decrease in power costs from lower rates and usage;
• a $10.7 million decrease in depreciation expense driven by an increase in the number of miners becoming fully depreciated;
−Removed: • a $7.2 million decrease in power costs from lower usage;
−Removed: • a $1.2 million decrease in facility operation expenses, due primarily to lower facility maintenance expense and facility equipment and supplies;
+Added: • a $2.2 million decrease in proceed sharing costs due to termination of our proceed sharing arrangements in 2024;
• a $1.3 million decrease in stock-based compensation expense;
−Removed: • a $0.9 million decrease in proceed sharing costs due to the termination of our proceed sharing arrangements in 2024.
−Removed: This decrease in cost of revenue was partially offset by a $4.6 million increase in payroll and benefits due to increases in bonuses and salaries driven primarily by an increase in employee headcount.
+Added: • a $1.2 million decrease in facility operation expenses, due primarily to lower facility maintenance expense and facility equipment and supplies.
+Added: This decrease in cost of revenue was partially offset by:
+Added: • a $3.7 million increase in payroll and benefits due to increases in bonuses and salaries driven primarily by an increase in employee headcount;
+Added: • 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.
(Increase) decrease in fair value of digital assets
−Removed: Three Months Ended September 30,
+Added: Three Months Ended June 30,
2025 2024 $ Change
1 unchanged sentence
Percentage of total revenue
−Removed: The fair value of digital assets increased by $11.2 million to $11.0 million for the three months ended September 30, 2025, from a decrease of $0.2 million for the three months ended September 30, 2024, and reflects the increase in the price of bitcoin and the higher balance of bitcoin held during the three months ended September 30, 2025.
−Removed: Loss on disposal of property, plant and equipment
−Removed: Three Months Ended September 30,
−Removed: 2025 (As Restated)
+Added: 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.
+Added: Decrease in fair value of energy derivatives
+Added: Three Months Ended June 30,
2025 2024 $ Change
−Removed: Loss on disposal of property, plant and equipment $ 300 $ 509 $ (209)
+Added: Decrease in fair value of energy derivatives
+Added: $ — $ 539 $ (539)
Percentage of total revenue
−Removed: Loss on disposal of property, plant and equipment decreased by $0.2 million to a loss of $0.3 million for the three months ended September 30, 2025, from $0.5 million for the three months ended September 30, 2024.
−Removed: The loss for the three months ended September 30, 2025 was primarily due to demolition costs related to the Denton, Texas facility.
+Added: 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.
+Added: 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.
+Added: Loss (gain) on disposal of property, plant and equipment
+Added: Three Months Ended June 30,
+Added: 2025 2024 $ Change
+Added: Loss (gain) on disposal of property, plant and equipment
+Added: $ 4,166 $ (268) $ 4,434
+Added: Percentage of total revenue
+Added: 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.
+Added: The loss for the three months ended June 30, 2025 was primarily due to losses on disposal of transformers and mining equipment.
+Added: Impairment of property, plant and equipment
+Added: Three Months Ended June 30,
+Added: 2025 2024 $ Change
+Added: Impairment of property, plant and equipment
+Added: — 97,261 (97,261)
+Added: Percentage of total revenue
+Added: 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.
+Added: No impairment charges were recorded for the three months ended June 30, 2025.
Selling, general and administrative
−Removed: Three Months Ended September 30,
+Added: Three Months Ended June 30,
2025 2024 $ Change
2 unchanged sentences
Percentage of total revenue
−Removed: Selling, general and administrative expenses increased $29.0 million or 72%, to $69.4 million for the three months ended September 30, 2025, from $40.3 million for the three months ended September 30, 2024.
+Added: 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.
The increase was driven primarily by:
+Added: • a $12.3 million increase in stock-based compensation expense;
• 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;
• 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 $5.6 million increase in stock-based compensation expense;
−Removed: • $5.5 million of advisor fees related to the proposed merger with no comparable activity for the same period in fiscal 2024.
−Removed: This increase in selling, general and administrative was partially offset by a $1.6 million decrease in post-emergence bankruptcy advisor fees and a $1.0 million decrease in advertising and marketing.
+Added: • a $2.2 million increase in professional services;
+Added: • a $2.1 million increase in in post-emergence bankruptcy advisor fees, partially offset by
+Added: • a $1.1 million decrease in rent expenses.
Non-operating expense, net
−Removed: Three Months Ended September 30,
+Added: Three Months Ended June 30,
2025 2024 $ Change
6 unchanged sentences
909,958 796,035 113,923
−Removed: Loss on legal settlements
−Removed: 15,075 356 14,719
−Removed: Other non-operating income, net
+Added: Other non-operating expense, net
207 401 (194)
1 unchanged sentence
$ 910,357 $ 811,331 $ 99,026
−Removed: Total non-operating expense, net decreased by $324.8 million, to $89.1 million for the three months ended September 30, 2025, from $413.9 million for the three months ended September 30, 2024.
−Removed: The decrease in total non-operating expense, net was primarily driven by:
−Removed: • During the three months ended September 30, 2025, we incurred a $333.7 million decrease in Change in fair value of warrant and contingent value rights due to a $0.87 per share increase in the Company’s stock price to $17.94 per share as of September 30, 2025, from $17.07 per share as of June 30, 2025, compared to a $2.56 per share increase to $11.86 per share as of September 30, 2024, from $9.30 per share as of June 30, 2024;
−Removed: • a $7.9 million decrease in Interest (income) expense, net driven primarily by an $4.3 million decrease in interest expense due to lower interest rates during the three months ended September 30, 2025, and a $3.5 million increase in proceeds from money market funds.
−Removed: The decrease in total non-operating expense, net was partially offset by a $14.7 million increase in loss on legal settlements, on claims made during bankruptcy.
+Added: 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.
+Added: The increase in total non-operating expense, net was primarily driven by:
+Added: • 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,
+Added: 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;
+Added: • 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.
Segment Total Revenue and Gross Profit
−Removed: The following table presents total revenue and gross profit (loss) by reportable segment for the periods presented (in thousands, except percentages):
−Removed: Three Months Ended September 30,
+Added: The following table presents total revenue and gross profit by reportable segment for the periods presented (in thousands, except percentages):
+Added: Three Months Ended June 30,
2025 2024 $ Change
9 unchanged sentences
Total cost of digital asset self-mining 59,589 80,001 (20,412)
−Removed: Digital Asset Self-Mining gross loss
+Added: Digital Asset Self-Mining gross profit
$ 2,835 $ 30,742 $ (27,907)
16 unchanged sentences
Maintenance and other
−Removed: 1,550 45 1,505
Licensing revenue
25 unchanged sentences
$ 73,603 $ 102,285 $ (28,682)
−Removed: Consolidated gross profit (loss)
+Added: Consolidated gross profit
$ 5,025 $ 38,817 $ (33,792)
1 unchanged sentence
Digital Asset Self-Mining
−Removed: For the three months ended September 30, 2025, gross loss in the Digital Asset Self-Mining segment decreased by $4.4 million compared to the three months ended September 30, 2024, reflecting a Digital Asset Self-Mining segment gross margin of (3)% for the three months ended September 30, 2025, compared to a gross margin of (9)% for the three months ended September 30, 2024.
−Removed: The decrease in the Digital Asset Self-Mining segment gross loss was primarily due to a 20% decrease in cost of digital asset self-mining driven by:
+Added: 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.
+Added: The decrease in the Digital Asset Self-Mining segment gross profit was primarily due to a 44% decrease in self-mining revenue driven by:
+Added: • 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:
+Added: ◦ an approximate net decrease of 12,100 deployed mining units due primarily to the strategic shift to Colocation;
+Added: ◦ 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;
+Added: ◦ 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;
+Added: partially offset by
+Added: • 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;
+Added: This decrease in the digital asset self-mining revenue was partially offset by:
• a $20.4 million or 26% decrease in the total cost of digital asset self-mining driven by:
+Added: ◦ a $10.5 million decrease in power costs due primarily to lower power rates;
◦ 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 $4.1 million decrease in power costs due primarily to lower usage;
◦ a $1.1 million decrease in facility operation expense and a $0.9 million decrease in other segment costs;
partially offset by
−Removed: ◦ a $2.8 million increase in employee compensation due to increases in bonuses and salaries driven primarily by an increase in employee headcount.
−Removed: This decrease in the total cost of digital asset self-mining was partially offset by a 16% decrease in self-mining revenue driven by:
−Removed: • a 55% decrease in bitcoin mined to 502 for the three months ended September 30, 2025, compared to 1,115 for the three months ended September 30, 2024, driven primarily by:
−Removed: ◦ an approximate net decrease of 34,400 deployed mining units due primarily to the strategic shift to Colocation;
−Removed: ◦ a 20% decrease in our self-mining hash rate to 16.3 EH/s for the three months ended September 30, 2025, compared to 20.4 EH/s for the three months ended September 30, 2024;
−Removed: ◦ a 51% increase in the three month average network difficulty driven by a 73% increase in the three month average network hash rate over prior year;
−Removed: partially offset by
−Removed: ◦ a 88% increase in the average price of bitcoin to $114,388 for the three months ended September 30, 2025, compared to $61,002 for the three months ended September 30, 2024;
+Added: ◦ 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.
Digital Asset Hosted Mining
−Removed: For the three months ended September 30, 2025, gross profit in the Digital Asset Hosted Mining segment decreased by $2.9 million compared to the three months ended September 30, 2024, reflecting a Digital Asset Hosted Mining segment gross margin of 23% for the three months ended September 30, 2025, compared to a gross margin of 29% for the three months ended September 30, 2024.
−Removed: The decrease in Digital Asset Hosted Mining segment gross margin for the three months ended September 30, 2025, compared to the three months ended September 30, 2024 was primarily due to:
+Added: 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.
+Added: 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:
• 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:
2 unchanged sentences
◦ a $2.5 million decrease in other segment costs;
+Added: ◦ a $0.9 million decrease in employee compensation:
◦ a $0.7 million decrease in depreciation expense and a $0.7 million decrease in facility operation expenses.
−Removed: For the three months ended September 30, 2025 and 2024, the top three hosting customers accounted for approximately 100% and 97%, respectively, of the Digital Asset Hosted Mining’s segment total revenue.
−Removed: For the three months ended September 30, 2025, gross profit in the Colocation segment was $3.9 million compared to $1.3 million for the three months ended September 30, 2024.
−Removed: The $2.6 million increase was driven by the completion of data halls at our Denton, Texas data center during the quarters ended June 30, 2025 and September 30, 2025, and initial capacity at our Marble, North Carolina data center during the quarter ended September 30, 2025.
−Removed: 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-
−Removed: 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 (loss) to loss before income taxes included in our condensed consolidated statements of operations for the three months ended September 30, 2025 and 2024, is as follows (in thousands):
−Removed: Three Months Ended September 30,
−Removed: 2025 (As Restated)
+Added: 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.
+Added: 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.
+Added: 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.
+Added: Colocation operations began during the quarter ended June 30, 2024, at our Austin, Texas data center.
+Added: Colocation revenue includes a base license fee as well as the direct pass-through of power costs to
+Added: our client, with no margin added.
+Added: 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.
+Added: 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):
+Added: Three Months Ended June 30,
2025 2024 $ Change
−Removed: Reportable segment gross profit (loss)
+Added: Reportable segment gross profit
$ 5,025 $ 38,817 $ (33,792)
1 unchanged sentence
(29,797) 584 (30,381)
−Removed: Loss on disposal of property, plant and equipment
+Added: Decrease in fair value of energy derivatives
+Added: Loss (gain) on disposal of property, plant and equipment
4,166 (268) 4,434
+Added: Impairment of property, plant and equipment
+Added: — 97,261 (97,261)
Selling, general and administrative
4 unchanged sentences
Loss on debt extinguishment
+Added: 1,377 120 1,257
Interest (income) expense, net
2 unchanged sentences
909,958 796,035 113,923
−Removed: Loss on legal settlements
−Removed: 15,075 356 14,719
−Removed: Other non-operating income, net
+Added: Reorganization items, net — — —
+Added: Other non-operating expense, net
207 401 (194)
3 unchanged sentences
$ (936,641) $ (902,013) $ (34,628)
−Removed: Results of Operations for the Nine Months Ended September 30, 2025 and 2024
+Added: Results of Operations for the Six Months Ended June 30, 2025 and 2024
The following table sets forth our selected condensed consolidated statements of operations for each of the periods indicated (in thousands).
−Removed: Nine Months Ended September 30,
−Removed: 2025 (As Restated) 2024 $ Change
+Added: Six Months Ended June 30,
+Added: 2025 (As Restated)
+Added: 2024 $ Change
Digital asset self-mining revenue
34 unchanged sentences
Reorganization items, net — (111,439) 111,439
−Removed: Loss on legal settlements
−Removed: 15,504 2,070 13,434
−Removed: Other non-operating income, net
−Removed: (73) (1,926) 1,853
+Added: Other non-operating expense, net 364 2,147 (1,783)
Total non-operating expense, net
4 unchanged sentences
$ (360,548) $ (691,466) $ 330,918
−Removed: Nine Months Ended September 30,
+Added: Six Months Ended June 30,
2025 2024 $ Change
11 unchanged sentences
Total revenue
−Removed: Total revenue decreased by $176.5 million or 42%, to $239.3 million for the nine months ended September 30, 2025, from $415.7 million for the nine months ended September 30, 2024, as a result of the factors described below.
−Removed: Digital asset self-mining revenue decreased by $141.8 million or 43%, to $187.0 million for the nine months ended September 30, 2025, from $328.8 million for the nine months ended September 30, 2024.
+Added: 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.
+Added: 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.
The year over year decrease in self-mining revenue was driven primarily by:
−Removed: • a 67% decrease in bitcoin mined to 1,855 for the nine months ended September 30, 2025, compared to 5,621 for the nine months ended September 30, 2024, driven primarily by:
+Added: • 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:
◦ an approximate net decrease of 12,100 deployed mining units due primarily to the strategic shift to Colocation;
◦ a 50% decrease in block rewards as a result of the April 2024 halving;
−Removed: ◦ a 20% decrease in self-mining hash rate to 16.3 EH/s for the nine months ended September 30, 2025, from 20.4 EH/s for the same period in the prior year;
−Removed: ◦ a 48% increase in the nine month average network difficulty driven by a 60% increase in the nine month average network hash rate over prior year.
−Removed: This decrease in self-mining revenue was partially offset by a 70% increase in the average price of bitcoin to $102,198 for the nine months ended September 30, 2025, compared to $60,031 for the nine months ended September 30, 2024;
−Removed: Total digital asset hosted mining revenue from customers decreased by $52.9 million or 74%, to $18.1 million for the nine months ended September 30, 2025, from $71.1 million for the nine months ended September 30, 2024.
+Added: ◦ 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;
+Added: ◦ 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: 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;
+Added: 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.
The decrease in hosted mining revenue from customers was primarily driven by our shift to our Colocation operations.
−Removed: Total Colocation revenue was $34.1 million for the nine months ended September 30, 2025, compared to $15.9 million for the same period in the prior year.
−Removed: The $18.2 million increase was driven by primarily by the completion of data halls at our Denton, Texas data center during the quarters ended June 30, 2025 and September 30, 2025, and initial capacity at our Marble, North Carolina data center during the quarter ended September 30, 2025.
+Added: 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.
+Added: 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.
Colocation operations began during the quarter ended June 30, 2024 at our Austin, Texas data center.
Cost of revenue
−Removed: Nine Months Ended September 30,
+Added: Six Months Ended June 30,
2025 2024 $ Change
2 unchanged sentences
13,238 116,463 (103,225)
−Removed: Cost of revenue decreased by $77.3 million or 26%, to $222.1 million for the nine months ended September 30, 2025, from $299.4 million for the nine months ended September 30, 2024.
−Removed: As a percentage of total revenue, cost of revenue totaled 93% and 72% for the nine months ended September 30, 2025 and 2024, respectively.
+Added: 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.
+Added: As a percentage of total revenue, cost of revenue totaled 92% and 64% for the six months ended June 30, 2025 and 2024, respectively.
The decrease in cost of revenue was primarily attributable to:
1 unchanged sentence
• a $20.0 million decrease in depreciation expense driven by an increase in the number of miners becoming fully depreciated;
−Removed: • a $5.6 million decrease in proceed sharing costs due to the termination of our proceed sharing arrangements in 2024;
+Added: • a $4.7 million decrease in proceed sharing costs;
• a $1.4 million decrease in facility operation expenses, due primarily to lower facility maintenance expenses.
−Removed: • a $1.9 million decrease in stock-based compensation expense.
This decrease in cost of revenue was partially offset by:
+Added: • 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;
• a $6.2 million increase in payroll and benefits due to increases in bonuses and salaries driven primarily by an increase in employee headcount.
−Removed: • an $8.7 million increase in Colocation segment costs, primarily a $5.5 millionincrease in Colocation power fees passed through to the customer and a $3.2 million increase in Colocation rent expense due to the expansion of our Colocation operation.
(Increase) decrease in fair value of digital assets
−Removed: Nine Months Ended September 30,
+Added: Six Months Ended June 30,
2025 2024 $ Change
2 unchanged sentences
Percentage of total revenue
−Removed: Change in fair value of digital assets was a gain of $30.1 million for the nine months ended September 30, 2025, and reflects the increase in the price of bitcoin and the higher balance of bitcoin held during the nine months ended September 30, 2025.
−Removed: Loss on disposal of property, plant and equipment
−Removed: Nine Months Ended September 30,
−Removed: 2025 (As Restated)
+Added: 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.
+Added: Decrease in fair value of energy derivatives
+Added: Six Months Ended June 30,
2025 2024 $ Change
+Added: Decrease in fair value of energy derivatives
+Added: $ — $ 2,757 $ (2,757)
+Added: Percentage of total revenue
+Added: 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 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.
Loss on disposal of property, plant and equipment
+Added: Six Months Ended June 30,
+Added: 2025 2024 $ Change
+Added: Losses on disposal of property, plant and equipment
$ 4,172 $ 3,552 $ 620
Percentage of total revenue
−Removed: Loss on disposal of property, plant and equipment increased by $0.4 million to $4.5 million for the nine months ended September 30, 2025, from $4.1 million for the nine months ended September 30, 2024.
+Added: 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.
+Added: The loss for the six months ended June 30, 2025 was primarily due to losses on disposal of transformers and miner equipment.
+Added: The loss for the six months ended June 30, 2024 was primarily due to the disposal of mining equipment.
Impairment of property, plant and equipment
−Removed: Nine Months Ended September 30,
+Added: Six Months Ended June 30,
2025 2024 $ Change
Impairment of property, plant and equipment
+Added: $ — $ 97,261 $ (97,261)
Percentage of total revenue
−Removed: Impairment of property, plant and equipment was $97.3 million for the nine months ended September 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 nine months ended September 30, 2025.
+Added: 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.
+Added: No impairment charges were recorded for the six months ended June 30, 2025.
Selling, general and administrative
−Removed: Nine Months Ended September 30,
+Added: Six Months Ended June 30,
2025 (As Restated)
3 unchanged sentences
Percentage of total revenue
−Removed: Selling, general and administrative expenses increased $82.2 million or 93%, to $170.9 million for the nine months ended September 30, 2025, from $88.7 million for the nine months ended September 30, 2024.
+Added: 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.
The increase was driven primarily by:
2 unchanged sentences
• 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;
−Removed: • $5.5 million of advisor fees related to the proposed merger with no comparable activity for the same period in fiscal 2024;
−Removed: • 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 Part I, Note 3 — Restatement of Previously Issued Financial Statements;
−Removed: • a $4.2 million increase in professional services.
−Removed: This increase in selling, general and administrative was partially offset by a $0.9 million decrease in rent, a $0.6 million decrease in advertising and marketing, and a $0.6 million decrease in post-emergence bankruptcy advisor fees.
+Added: • 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;
+Added: • a $4.4 million increase in professional services, partially offset by
+Added: • a $2.1 million decrease in rent expenses.
Non-operating expense, net
−Removed: Nine Months Ended September 30,
+Added: Six Months Ended June 30,
2025 2024 $ Change
6 unchanged sentences
Reorganization items, net — (111,439) 111,439
−Removed: Loss on legal settlements
−Removed: 15,504 2,070 13,434
−Removed: Other non-operating income, net
−Removed: (73) (1,926) 1,853
+Added: Other non-operating expense, net 364 2,147 (1,783)
Total non-operating expense, net
$ 286,863 $ 655,661 $ (368,798)
−Removed: Total non-operating expense, net decreased by $693.6 million, to $376.0 million for the nine months ended September 30, 2025, from $1.07 billion for the nine months ended September 30, 2024.
+Added: 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.
The decrease in total non-operating expense, net was primarily driven by:
−Removed: • During the nine months ended September 30, 2025, we incurred a $781.1 million decrease in Change in fair value of warrant and contingent value rights due to a $3.89 per share increase in the Company’s stock price to $17.94 per share as of September 30, 2025, from $14.05 per share as of December 31, 2024, compared to a $8.42 increase in stock price to $11.86 as of September 30, 2024, from $3.44 as of January 23, 2024, the date the Company emerged from bankruptcy;
−Removed: • a $40.1 million decrease in Interest (income) expense, net driven primarily by an $22.5 million decrease in interest expense due to lower interest rates during the nine months ended September 30, 2025, and a $17.9 million increase in proceeds from money market funds.
−Removed: This decrease was partially offset by:
−Removed: • $111.4 million in Reorganization items, net incurred during the nine months ended September 30, 2024 with no related activity during the same period in the current year.
+Added: • 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;
+Added: • 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.
+Added: 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.
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.
−Removed: • a $13.4 million increase in loss on legal settlements, related to claims made during bankruptcy.
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: Nine Months Ended September 30,
+Added: Six Months Ended June 30,
2025 2024 $ Change
10 unchanged sentences
Digital Asset Self-Mining gross profit $ 8,844 $ 99,137 $ (90,293)
−Removed: $ 6,844 $ 92,720 $ (85,876)
Digital Asset Self-Mining gross margin 7 % 38 % (31) %
14 unchanged sentences
Maintenance and other
−Removed: 1,628 82 1,546
Licensing revenue
22 unchanged sentences
Digital Asset Self-Mining
−Removed: For the nine months ended September 30, 2025, gross profit in the Digital Asset Self-Mining segment decreased by $85.9 million compared to the nine months ended September 30, 2024, reflecting a Digital Asset Self-Mining segment gross margin of 4% for the nine months ended September 30, 2025, compared to 28% for the nine months ended September 30, 2024.
+Added: 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.
The decrease in the Digital Asset Self-Mining segment gross profit was primarily due to a 50% decrease in self-mining revenue driven by:
−Removed: • a 67% decrease in bitcoin mined to 1,855 for the nine months ended September 30, 2025, compared to 5,621 for the nine months ended September 30, 2024, driven primarily by:
+Added: • 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:
◦ an approximate net decrease of 12,100 deployed mining units due primarily to the strategic shift to Colocation;
◦ a 50% decrease in block rewards as a result of the April 2024 halving;
−Removed: ◦ a 20% decrease in our self-mining hash rate to 16.3 EH/s for the nine months ended September 30, 2025, compared to 20.4 EH/s for the nine months ended September 30, 2024;
+Added: ◦ 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;
◦ 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;
partially offset by
−Removed: • a 70% increase in the average price of bitcoin to $102,198 for the nine months ended September 30, 2025, compared to $60,031 for the nine months ended September 30, 2024.
+Added: • 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;
This decrease in the digital asset self-mining revenue was partially offset by:
• a $40.8 million or 25% decrease in the total cost of digital asset self-mining driven by:
−Removed: ◦ a $30.3 million or 36% decrease in depreciation expense, which was driven primarily by an approximate net decrease of 34,400 deployed miners during the current year;
◦ a $25.1 million decrease in power costs due primarily to lower power rates;
+Added: ◦ a $18.3 million or 33% decrease in depreciation expense, which was driven primarily by an approximate net decrease of 12,100 deployed miners during the current year;
partially offset by
1 unchanged sentence
Digital Asset Hosted Mining
−Removed: For the nine months ended September 30, 2025, gross profit in the Digital Asset Hosted Mining segment decreased by $16.8 million compared to the nine months ended September 30, 2024, reflecting a Digital Asset Hosted Mining segment gross margin of 27% for the nine months ended September 30, 2025, compared to a gross margin of 30% for the nine months ended September 30, 2024.
−Removed: The decrease in Digital Asset Hosted Mining segment gross margin for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024 was primarily due to:
+Added: 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.
+Added: 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:
• a $44.8 million or 83% decrease in the digital asset hosted mining revenue driven primarily by our shift to Colocation operations, partially offset by:
3 unchanged sentences
◦ a $1.8 million decrease in depreciation expense and a $1.9 million decrease in employee compensation.
−Removed: For the nine months ended September 30, 2025 and 2024, the top three hosting customers accounted for approximately 98% and 89%, respectively, of the Digital Asset Hosted Mining’s segment total revenue.
−Removed: For the nine months ended September 30, 2025, gross profit in the Colocation segment was $5.5 million compared to $1.9 million for the nine months ended September 30, 2024.
−Removed: The $3.6 million increase was driven primarily by the completion of data halls at our Denton, Texas data center during the quarters ended June 30, 2025 and September 30, 2025, and initial capacity at our Marble, North Carolina data center during the quarter ended September 30, 2025.
+Added: 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.
+Added: 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.
+Added: 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.
Colocation operations began during the quarter ended June 30, 2024 at our Austin, Texas data center.
1 unchanged sentence
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 nine months ended September 30, 2025 and 2024, is as follows (in thousands):
−Removed: Nine Months Ended September 30,
−Removed: 2025 (As Restated) 2024 $ Change
+Added: 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):
+Added: Six Months Ended June 30,
+Added: 2025 (As Restated)
+Added: 2024 $ Change
Reportable segment gross profit
3 unchanged sentences
— 2,757 (2,757)
−Removed: Loss on disposal of property, plant and equipment
+Added: Losses on disposal of property, plant and equipment
4,172 3,552 620
4 unchanged sentences
Operating loss
+Added: (73,322) (35,455) (37,867)
Non-operating expense (income), net:
5 unchanged sentences
Change in fair value of warrants and contingent value rights 288,494 735,921 (447,427)
−Removed: Loss on legal settlements
−Removed: 15,504 2,070 13,434
−Removed: Other non-operating income, net
−Removed: (73) (1,926) 1,853
+Added: Other non-operating expense, net 364 2,147 (1,783)
Total non-operating expense, net
5 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 September 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 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.
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: September 30, December 31,
+Added: June 30, December 31,
2025 2024 $ Change
2 unchanged sentences
Total cash, cash equivalents and restricted cash $ 581,345 $ 836,980 $ (255,635)
−Removed: As of September 30, 2025, the Company had no restricted cash.
+Added: As of June 30, 2025, the Company had no restricted cash.
As of December 31, 2024, restricted cash 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: Nine Months Ended September 30,
+Added: Six Months Ended June 30,
2025 (As Restated)
13 unchanged sentences
Operating Activities
−Removed: Changes in net cash from operating activities results primarily from cash received from customer for hosting fees, colocation base license fees, and power fees.
+Added: Changes in net cash from operating activities results primarily from cash received from hosting customers payments for power fees and equipment purchases.
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 provided by operating activities was $120.7 million for the nine months ended September 30, 2025 and $29.1 million for the nine months ended September 30, 2024.
−Removed: The increase in net cash provided by operating activities was primarily due to an increase of $387.4 million from operating assets and liabilities driven primarily by an increase in deferred revenue from colocation services of $323.8 million.
−Removed: The increase in net cash provided by operating activities was offset by a decrease of $189.5 million from our bitcoin holding strategy and a decrease of $106.3 million in net income after the effects of non-cash adjustments.
+Added: 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: The decrease in net cash provided by operating activities was primarily due to a decrease in $132.0 million from our bitcoin holding strategy and a decrease of $69.6 million in net income before the effects of non-cash adjustments.
+Added: 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.
Investing Activities
−Removed: Net cash used in investing activities consists primarily of purchases of property, plant and equipment.
−Removed: Net cash used in investing activities for the nine months ended September 30, 2025 and 2024, was $463.0 million and $66.4 million, respectively.
−Removed: Purchases of property, plant, and equipment were $449.8 million during the nine months ended September 30, 2025.
+Added: Our net cash used in investing activities consists primarily of purchases of property, plant and equipment.
+Added: 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.
+Added: Purchases of property, plant, and equipment were $205.3 million during the six months ended June 30, 2025.
Of those purchases, $176.1 million related to the Colocation segment and $29.2 million related to the digital asset mining segments.
−Removed: Prepaid base license fees of $323.8 million recognized as deferred revenue during the nine months ended September 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 investments in intangible assets of $10.2 million and a $5.0 million purchase of a strategic equity investment.
+Added: 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.
+Added: The increase in net cash used in investing activities was further driven by a $5.0 million purchase of a strategic equity investment.
Financing Activities
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 $41.3 million for the nine months ended September 30, 2025, compared to net cash provided of $221.4 million for the nine months ended September 30, 2024.
−Removed: The decrease was primarily driven by the absence of $447.6 million in proceeds from the issuance of convertible senior notes, $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, which were partially offset by a $283.3 million reduction in principal payments on debt.
+Added: 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.
+Added: 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.
+Added: The decreases were partially offset by a $19.7 million reduction in principal payments on debt.
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 September 30, 2025, are based on our estimates and assumptions about these obligations, including their duration, anticipated actions by third parties and other factors.
+Added: 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.
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.
8 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.