CLEANSPARK INC
For the period ended Mar 31, 2024. Filed May 9, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 9, 2024
CLSK$6.16+8.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2023-12-31; filed 2024-02-08.
0000950170-24-012812
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-03-31; filed 2024-05-09.
0000950170-24-056330
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 89 previous paragraphs and 126 current paragraphs.
45 unchanged; 43 reworded; 24 added; 1 removed; 0 previous and 14 current paragraphs rearranged.
Tables are not compared: 4 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
(1) Weighted average cost of mining one bitcoin is calculated by dividing the sum of total energy expense and other direct costs of mining non-energy utilities (owned facilities) and total hosting fee expense (hosted facilities) by the total bitcoin mined during the respective periods.
Current report
(2) Average revenue of each bitcoin mined is calculated by dividing the sum of bitcoin mining revenue for both owned and hosted facilities by the total number of bitcoin mined during the respective periods. We have determined that Coinbase is the principal market for valuing bitcoin transactions and uses the daily closing prices as the source of recording revenue. See the table "Range of intraday bitcoin prices" for information on the range of intraday bitcoin prices for quarterly periods since October 1, 2022.
Current report
(3) The weighted average cost of mining one bitcoin excludes equipment related expenses, such as miner depreciation expense and direct miner financing costs. Although the Company recognizes depreciation with respect to its mining assets, it does not consider depreciation in determining whether it is economical to operate its mining equipment. As a result, the Company does not consider the sunk costs or depreciation of past capital investments in its historical or forecasted breakeven analysis. If depreciation and financing costs of our miner fleet were factored into the above cost of mining analysis, the total "cost to mine one bitcoin" would increase by $13,652 and $10,221 per bitcoin mined for the three months ended March 31, 2024 and 2023, respectively, bringing the total “cost to mine one bitcoin” to $30,534 and $21,951, respectively. If depreciation and financing costs of our miner fleet were factored into the above cost of mining analysis for the six months ended March 31, 2024 and 2023, the total "cost to mine one bitcoin" would increase by $13,139 and $10,729 per bitcoin mined, respectively, bringing the total “cost to mine one bitcoin” to $28,738 and $23,132, respectively.
Current report
Other income, net was $1,209 for the three months ended March 31, 2024, compared with other expense, net of $680 for the three months ended March 31, 2023, which is a change of $1,889. Other income (expenses) for the three months ended March 31, 2024 consisted primarily of interest income of $2,684 as compared to $52 in the same prior year period. This was partially offset by unrealized loss on derivative security of $949 as compared to gain for the same prior year period of $56.
Current report
Results of continuing operations for the six months ended March 31, 2024 and 2023
Current report
Bitcoin mining revenue
Current report
Other services revenues
Current report
Our cost of revenues were $63,194 for the six months ended March 31, 2024, an increase of $20,696, or 49%, as compared with $42,498 for the six months ended March 31, 2023. These costs were primarily related to energy costs to operate the miners within our owned facilities, which were $48,099 for the six months ended March 31, 2024, an increase of $19,347 or 67% as compared to $28,752 for the six months ended March 31, 2023. The increase in energy costs was due to the increases in the volume of miners operating in our owned locations partially offset by the reduction in the average cost per KWHs, which approximated $0.043/KWH for the six months ended March 31, 2024 as compared to an average cost of $0.052/KWH for the six months ended March 31, 2023. We continually evaluate energy and bitcoin prices and periodically will curtail our mining operations when it is advantageous to do so.
Current report
We also incurred hosting fees of $12,140 and profit sharing fees of $2,911 for the six months ended March 31, 2024, an increase of $723, or 6%, and increase of $966, or 94%, as compared to $11,417 and $1,945, respectively, for the six months ended March 31, 2023. The hosting fees and profit sharing fees were primarily the result of our co-location agreement with Coinmint. The hosting fees increased primarily due to increases in utility rates partially offset by a slight reduction in KWHs utilized.
Current report
Professional fees
Current report
Professional fees, which consisted primarily of legal, accounting and consulting fees, were $3,780 for the six months ended March 31, 2024, a decrease of $2,801, or 43%, from $6,581 for the six months ended March 31, 2023. Legal expenses were $945 for the six months ended March 31, 2024, as compared to $5,295 for the six months ended March 31, 2023. This decrease was primarily attributable to no legal settlements during the six months ended March 31, 2024, as compared to $3,800 of legal settlements during the six months ended March 31, 2023. Other professional fees, namely accounting and consulting, were $2,835 for the six months ended March 31, 2024, as compared to $1,286 for the six months ended March 31, 2023, representing an increase of $1,549.
Current report
Payroll expenses
Current report
General and administrative expenses
Current report
General and administrative expenses increased to $11,822 for the six months ended March 31, 2024 from $8,053 for the six months ended March 31, 2023, representing an increase of $3,769. This increase was primarily attributable to increases in corporate overhead, including, but not limited to, property taxes and insurance premiums (primarily due to the substantial increase in owned assets).
Current report
Depreciation and amortization
Current report
Depreciation and amortization expense increased to $62,034 for the six months ended March 31, 2024, from $40,675 for the six months ended March 31, 2023, an increase of $21,359 or 53%. Depreciation expense increased by $21,343, or 54%, during the six months ended March 31, 2024, from $39,656 to $60,999, due to an increase in miners, mining equipment and infrastructure being placed in service during the comparative period. Amortization expense for the six months ended March 31, 2024 was $1,035, an increase of $16, or 2%, from $1,019 for the six months ended March 31, 2023.
Current report
Other Income (Expenses)
Current report
Interest expense in the six months ended March 31, 2024 decreased by $616 to $1,072 from $1,688 for the six months ended March 31, 2023 due to lower average debt balances during six months ended March 31, 2024 as compared to the six months ended March 31, 2023.
Current report
Interest income in the six months ended March 31, 2024 increased to $3,270 from $122 for the six months ended March 31, 2023, an increase of $3,148 due to an increase in short-term overnight investments.
Current report
Net income from continuing operations for the six months ended March 31, 2024 was $152,644 as compared to net loss from continuing operations of $48,654 for the six months ended March 31, 2023, for the reasons discussed above.
Current report
Net income (loss)
Current report
Net income for the six months ended March 31, 2024 was $152,644, a fluctuation of $200,135 compared to net loss of $47,491 for the six months ended March 31, 2023, for the reasons stated above.
Current report
Operating activities from continuing operations for the six months ended March 31, 2024 used $82,525 in cash primarily due to net income of $152,644, adjusted by adding non-cash adjustments to reconcile net income to net cash of depreciation and amortization of $62,034, stock based compensation of $19,750 and subtracting non-cash bitcoin mining revenues of $185,585 and gain on fair value of bitcoin, net of $155,743. Changes in operating assets and liabilities generating a net total of $18,784 of cash.
Current report
Operating activities from continuing operations for the six months ended March 31, 2023 provided $11,127 in cash primarily due to net loss of $47,491, adjusted by adding non-cash adjustments to reconcile net income to net cash of depreciation and amortization of $40,675, stock based compensation of $11,621 and subtracting non-cash bitcoin mining revenues of $70,234. The Company also sold bitcoin that it held for a short period of time for net cash proceeds of $76,203. Changes in operating assets and liabilities generated a total of $817 of cash.
Removed paragraphs (1)
Previous report
Realized loss on sale of bitcoin
Reworded paragraphs (43)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read together with the interim consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q, as well as our audited consolidated financial statements and related notes as disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 ("Form 10-K"). This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under Part II, Item 1A “Risk Factors” or in other parts of this Quarterly Report on Form 10-Q, as well as those identified in the “Risk Factors” section of our Form 10-K. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. See “Forward-Looking Statements.”
Current wording
The following discussion and analysis of our financial condition and results of operations should be read together with the interim consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q, as well as our audited consolidated financial statements and related notes as disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 ("Form 10-K"). This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in other parts of this Quarterly Report on Form 10-Q, as well as those identified in the “Risk Factors” section of our Form 10-K. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. See “Forward-Looking Statements.”
Previous wording
We are a bitcoin mining company. We have no intention to mine, purchase or hold any other cryptocurrency at this time or in the foreseeable future (although we held a de minimis amount of USD Coin ("USDC") as of December 31, 2023). We independently own and operate five data centers in Georgia for a total developed capacity of 230 MW. We are developing an additional 150 MW at our data center in Sandersville, GA. We have a partner in Massena, NY, that hosts 50 MW for us. We design our infrastructure to responsibly support Bitcoin, the world’s most important digital commodity and an essential tool for financial independence and inclusion. We strive to leave the planet better than we found it by investing in communities that source low-carbon energy, like wind, solar, nuclear, and hydro. We cultivate trust and transparency among our employees, the communities we operate in, and the people around the world who depend on Bitcoin.
Current wording
We are a bitcoin mining company. We have no intention to mine, purchase or hold any other cryptocurrency at this time or in the foreseeable future, and we did not hold any other cryptocurrency as of March 31, 2024. We independently own and operate five data centers in Georgia and three data centers in Mississippi for a total developed power capacity of approximately 435 megawatts (“MW”). We have completed an additional 50 MW of data center infrastructure in Sandersville, GA, which is pending the commissioning of a utility transformer before it goes into service, and we are currently finalizing the development of an additional 15 MW expansion at our Dalton, GA locations. We have a partner in Massena, NY that hosts 50 MW for us. We design our infrastructure to responsibly support bitcoin, the world’s most important digital commodity and an essential tool for financial independence and inclusion. We strive to leave the planet better than we found it by investing in communities that source low-carbon energy, like wind, solar, nuclear, and hydro. We cultivate trust and transparency among our employees, the communities we operate in, and the people around the world who depend on bitcoin.
Previous wording
Factors such as access to computer processing capacity, interconnectivity, electricity cost, environmental factors (such as cooling capacity) and location play important roles in mining. As of December 31, 2023, our operating mining units were capable of producing over 10.0 exahash per second (“EH/s”) of computing power. In bitcoin mining, “hashrate” is a measure of the computing and processing power and speed by which a mining computer mines and processes transactions on the bitcoin network. We expect to continue increasing our computing power through 2024 and beyond as we expand our infrastructure at our owned sites in the State of Georgia, seek strategic acquisition targets, and through strategic co-location agreements. As of the date of this filing, February 8, 2024, we are capable of producing 12.5 EH/s of computing power. A company’s computing power measured in hashrate is generally considered to be one of the most important metrics for evaluating bitcoin mining companies.
Current wording
Factors such as access to specialized mining servers, energy, electricity cost, environmental factors (such as cooling capacity) and location play important roles in mining. As of March 31, 2024, our operating mining units were capable of producing over 16.4 exahash per second (“EH/s”) of computing power. In bitcoin mining, “hashrate” is a measure of the computing and processing power and speed by which a mining computer mines and processes transactions on the bitcoin network. We expect to continue increasing our computing power through 2024 and beyond as we expand our infrastructure at our owned sites in the State of Georgia, seek strategic acquisition targets, and through strategic co-location agreements. As of April 30, 2024, we operated a high of 17.3 EH/s of computing power. A company’s computing power measured in hashrate is generally considered to be one of the most important metrics for evaluating bitcoin mining companies.
Previous wording
We own approximately 146,000 miners as of December 31, 2023, of which approximately 88,500 are in service and the remainder mainly pertains to new machines ready to install in the Sandersville, GA expansion. These miners range in age from 2-36 months and have an average age of approximately 11 months. We do not have scheduled downtime for our miners, however, we periodically perform unscheduled maintenance on our miners, but such downtime has not historically been significant. When performing unscheduled maintenance, we will typically replace the miner with a substitute miner to limit overall downtime. The miners owned as of December 31, 2023 have a range of energy efficiency (watts per terahash – “w/th”) of 17.5 to 38 w/th with an average energy efficiency of 26.4 w/th.
Current wording
We owned approximately 150,000 miners as of March 31, 2024, of which approximately 133,000 are in service and the remainder pertain to new machines ready to install in the Dalton, GA expansion or are pending repair. These miners range in age from 1-39 months and have an average age of approximately 14 months. We do not have scheduled downtime for our miners, however, we periodically perform unscheduled maintenance and curtailments on our miners, but such downtime has not historically been significant. When performing unscheduled maintenance, we will typically replace the miner with a substitute miner to limit overall downtime. The miners owned as of March 31, 2024 had a range of energy efficiency (watts per terahash – “w/th”) of 17.5 to 41 w/th with an average energy efficiency of 24.6 w/th.
Previous wording
We obtain bitcoin as a result of our mining operations, and we sell bitcoin from time to time, to support our operations and strategic growth. We do not currently plan to engage in regular trading of bitcoin (other than as necessary to convert our bitcoin into U.S. dollars) or to engage in hedging activities related to our holding of bitcoin; however, our decisions to hold or sell bitcoin at any given time may be impacted by the bitcoin market, which has been historically characterized by significant volatility. Currently, we do not use a formula or specific methodology to determine whether or when we will sell bitcoin that we hold, or the number of bitcoins we will sell. Rather, decisions to hold or sell bitcoins are currently determined by management by analyzing forecasts and monitoring the market in real time.
Current wording
We obtain bitcoin as a result of our mining operations, and we sell bitcoin from time to time to support our operations and strategic growth. Although we may engage in regular trading of bitcoin in the future, we have not previously engaged in trading of bitcoin (other than as necessary to convert our bitcoin into U.S. dollars) or hedging activities related to our holding of bitcoin; however, our decisions to hold or sell bitcoin at any given time may be impacted by the bitcoin market, which has been historically characterized by significant volatility. Currently, we do not use a formula or specific methodology to determine whether or when we will sell bitcoin that we hold, or the number of bitcoins we will sell. Rather, decisions to hold or sell bitcoins are currently determined by management by analyzing forecasts and monitoring the market in real time.
Previous wording
As of December 31, 2023, we held 3,002 bitcoins. The fair value of our bitcoins as of December 31, 2023 was $126,951 on our Consolidated Balance Sheet. Effective October 1, 2023, we adopted ASC 350-60 which required bitcoin to be measured at fair value. See Note 2 - Summary of Significant Accounting Policies for more details on impact of implementation to the financial statements. As a result, the carrying value of each bitcoin we held at the end of December 31, 2023 and each subsequent reporting period reflects the price of one bitcoin quoted on the active exchange at the end of the reporting period. Therefore, negative swings in the market price of bitcoin could have a material impact on our earnings and on the carrying value of our bitcoin.
Current wording
As of March 31, 2024, we held 5,021 bitcoins. As of March 31, 2024, the Company held 58% of its bitcoin in cold storage and 42% in hot wallets. The fair value of our bitcoins as of March 31, 2024 was $357,981 on our Consolidated Balance Sheets. Effective October 1, 2023, we adopted ASC 350-60, which requires bitcoin to be measured at fair value. See Note 2 - Summary of Significant Accounting Policies for more details on the impact of implementation to the financial statements. As a result, the carrying value of each bitcoin we held at December 31, 2023 and each subsequent reporting period reflects the price of one bitcoin quoted on the active exchange, Coinbase, at the end of the reporting period. Therefore, negative swings in the market price of bitcoin could have a material impact on our earnings and on the carrying value of our bitcoin.
Previous wording
As of December 31, 2023, we held $0.05 in USDC, which is a digital currency that is fully backed by U.S. dollar assets, with the value of one USDC coin pegged 1:1 to the value of one U.S. dollar.
Current wording
As of September 30, 2023, we held $0.05 in USD Coin (“USDC”), which is a digital currency that is fully backed by U.S. dollar assets, with the value of one USDC coin pegged 1:1 to the value of one U.S. dollar. As of March 31, 2024, the Company did not hold any digital currency other than bitcoin.
Previous wording
Through our wholly owned subsidiaries CSRE Properties, LLC, CSRE Property Management Company LLC, CSRE Properties Norcross, LLC, CSRE Properties Washington, LLC, CSRE Properties Sandersville, LLC, CSRE Properties Dalton, LLC and CleanSpark HQ, LLC, we maintain real property holdings.
Current wording
Through our wholly owned subsidiaries CSRE Properties, LLC, CSRE Property Management Company LLC, CSRE Properties Norcross, LLC, CSRE Properties Washington, LLC, CSRE Properties Sandersville, LLC, CSRE Properties Dalton, LLC, Dalton15, LLC, CleanSpark MS, LLC, CSRE Properties Mississippi, LLC, CSRE Properties Vicksburg, LLC, and CleanSpark HQ, LLC, we maintain real property holdings.
Previous wording
Results of continuing operations for the three months ended December 31, 2023 and 2022
Current wording
Results of continuing operations for the three and six months ended March 31, 2024 and 2023
Previous wording
There are a variety of factors that influence our ability to mine bitcoin profitability. Our ability to mine profitability is dependent on successfully navigating these fluctuating variables, which include bitcoin’s value in USD (the volatility of which is described above), mining difficulty, global hashrate, power prices, fleet energy efficiency, data center energy efficiency, and other factors.
Current wording
There are a variety of factors that influence our ability to mine bitcoin profitability. Our ability to mine profitability is dependent on successfully navigating these fluctuating variables, which include bitcoin’s value in USD (the volatility of which is described above), mining difficulty, block rewards and halving, global hashrate, power prices, fleet energy efficiency, data center energy efficiency, and other factors.
Previous wording
The energy efficiency of a mining fleet helps drive profitability, because the most significant direct expense for bitcoin mining is power. We measure efficiency by the watts of energy required to produce each terahash of processing power (“w/th”). We believe we operate a highly efficient fleet of miners. The table below describes our fleet as of December 31, 2023 and 2022 and describes our miner efficiency and computing power as compared to the global computing power.
Current wording
The energy efficiency of a mining fleet helps drive profitability, because the most significant direct expense for bitcoin mining is power. We measure efficiency by the watts of energy required to produce each terahash of processing power. We believe we operate a highly efficient fleet of miners. The table below describes our fleet as of March 31, 2024 and 2023 and our miner efficiency and computing power as compared to the global computing power.
Previous wording
As of December 31, 2023, our operating hashrate was approximately 1.80% of the total global hashrate, and we received approximately the same percentage of the global blockchain rewards, which as of that date, equaled approximately 15-17 bitcoin per day, excluding the bitcoin earned from network transaction fees. Ultimately, in order to mine profitably, we work to ensure that these mining rewards cover our direct operating costs.
Current wording
As of March 31, 2024, our operating hashrate was approximately 2.9% of the total global hashrate, and we received approximately the same percentage of the global blockchain rewards, which as of that date equaled approximately 25-27 bitcoin per day, excluding the bitcoin earned from network transaction fees. Ultimately, in order to mine profitably, we work to ensure that these mining rewards cover our direct operating costs.
Previous wording
The table below describes the average cost of mining each bitcoin for the three months ended December 31, 2023 and 2022 and the total energy usage and cost per each kilowatt hour ("KWH") utilized within both our four owned facilities and our hosted facility.
Current wording
The table below describes the average cost of mining each bitcoin for the three and six months ended March 31, 2024 and 2023 and the total energy usage and cost per each kilowatt hour ("KWH") utilized within both our four owned facilities and our hosted facility.
Previous wording
Power prices are the most significant cost driver for our wholly owned locations, and energy costs represented 35.0% and 71.8% as expressed as a percentage of bitcoin mining revenues during the three months ended December 31, 2023 and 2022, respectively. For our co-locations, hosting fees (which comprise direct operating costs of the third-party operator with energy as the largest cost) and profit sharing were a combined 61.3% and 74.6% as a percentage of bitcoin mining revenues during the three months ended December 31, 2023 and 2022, respectively.
Current wording
Power prices are the most significant cost driver for our wholly owned locations, and energy costs represented 26.6% and 48.4% as expressed as a percentage of bitcoin mining revenues during the three months ended March 31, 2024 and 2023, respectively, and were 29.7% and 56.9% for the six months ended March 31, 2024 and 2023, respectively. For our co-locations, hosting fees (which comprise direct operating costs of the third-party operator with energy as the largest cost) and profit sharing were a combined 62.0% and 61.0% as a percentage of bitcoin mining revenues during the three months ended March 31, 2024 and 2023, respectively, and were 61.7% and 67.5% for the six months ended March 31, 2024 and 2023, respectively.
Previous wording
Energy prices can be highly volatile and global events (including the war in Ukraine and the resulting natural gas shortage) caused power prices to increase nationwide in 2022. All of our wholly owned and operated sites in the State of Georgia and our hosted miners in New York State are currently subject to variable prices and market rate fluctuations with respect to wholesale power costs. Such prices are governed by power purchase agreements which vary by location and said prices can change hour to hour. While this renders energy prices less predictable, it also gives us greater ability and flexibility to actively manage the energy we consume with an eye towards increasing profitability and energy efficiency. Energy prices are also highly sensitive to weather events, such as winter storms and polar vortices, which increase the demand for power regionally. When such events occur, we may curtail our operations to avoid using power at increased rates. The average power prices we paid in our owned facilities for the three months ended December 31, 2023 and 2022 was $0.044 and $0.059 per kilowatt hour, respectively. At our hosting facilities, the hosting fee as compared to KWHs utilized in the hosted facilities was $0.067 and $0.064 per kilowatt hour for such periods, respectively.
Current wording
Energy prices can be highly volatile and global events (including the war in Ukraine and the resulting natural gas shortage) caused power prices to increase nationwide in 2022. All of our wholly owned and operated sites in the State of Georgia and our hosted miners in New York State are currently subject to variable prices and market rate fluctuations with respect to wholesale power costs. Such prices are governed by power purchase agreements which vary by location, and said prices can change hour to hour. While this renders energy prices less predictable, it also gives us greater ability and flexibility to actively manage the energy we consume with an eye towards increasing profitability and energy efficiency. Energy prices are also highly sensitive to weather events, such as winter storms and polar vortices, which increase the demand for power regionally. When such events occur, we may curtail our operations to avoid using power at increased rates. The average power prices we paid in our owned facilities for the three months ended March 31, 2024 and 2023 were $0.043 and $0.046 per kilowatt hour, respectively, and were $0.043 and $0.052 per kilowatt hour for the six months ended March 31, 2024 and 2023, respectively. At our hosting facilities, the hosting fee as compared to KWHs utilized in the hosted facilities was $0.075 and $0.059 per kilowatt hour for the three months ended March 31, 2024 and 2023, respectively, and was $0.071 and $0.061 per kilowatt hour for the six months ended March 31, 2024 and 2023, respectively.
Previous wording
The management team makes real-time determinations on the need and timing during which we should curtail. We curtail when power prices exceed the value we would receive for the corresponding fixed bitcoin reward. This means if bitcoin’s value decrease or energy prices increase, our curtailment will increase; likewise, when bitcoin’s value increases and energy prices decrease, our curtailment will decrease. The management team manages this decision on an hour-by-hour basis across all our sites both wholly owned and hosted.
Current wording
The management team makes real-time determinations on the need and timing during which we should curtail our operations. We curtail when power prices exceed the value we would receive for the corresponding fixed bitcoin reward. This means if bitcoin’s value decreases or energy prices increase, our curtailment will increase; likewise, when bitcoin’s value increases and energy prices decrease, our curtailment will decrease. The management team manages this decision on an hour-by-hour basis across all our sites, both wholly owned and hosted.
Previous wording
In the three months ended December 31, 2022, energy prices spiked nationwide due to weather events and, as a result, we curtailed a total of 15% of our fleet, with December being the month with the greatest curtailment. Our active curtailment strategy allowed us to avoid excessive cost during these events, but it also resulted in decreased production. The Company did not have significant curtailment during the three months ended December 31, 2023
Current wording
In the three months ended December 31, 2022, energy prices spiked nationwide due to weather events and, as a result, we curtailed a total of 15% of our fleet, with December being the month with the greatest curtailment. Our active curtailment strategy allowed us to avoid excessive cost during these events, but it also resulted in decreased production. The Company did not have significant curtailment during the three months or six months ended March 31, 2024.
Previous wording
We earned $73,786 in bitcoin mining revenue during the three months ended December 31, 2023, which was an increase of $46,040, or 166%, as compared with $27,746 for the three months ended December 31, 2022. Bitcoin mining revenues, are recorded net of bitcoin mining fees charged by our sole mining pool operator that equaled approximately 0.19% of gross bitcoin mining revenues for the three months ended December 31, 2023, are determined by two main drivers: quantity of bitcoin mined and the price of bitcoin on the date the bitcoin is mined. During the three months ended December 31, 2023, we mined 2,020 bitcoin with an average bitcoin price of $36,535 as compared to 1,530 bitcoin with an average bitcoin price of $18,129 during the three months ended December 31, 2022. The increase in bitcoin mining revenue for the three months ended December 31, 2023 was attributable the increase in the bitcoin mined during the period and the increase in the average bitcoin price as compared to the three months ended December 31, 2022. The increase in the quantity of bitcoin mined was primarily driven by the increased number of miners in operation, which increased to approximately 88,500 and compared to 63,700, an increase of 24,800 between December 31, 2022 and December 31, 2023. The increase in miners in operation increases our hashrate, which is our total computational power, and which when understood in the context of global hashrate, determines how much bitcoin we are able to mine.
Current wording
We earned $111,799 in bitcoin mining revenue during the three months ended March 31, 2024, which was an increase of $69,311, or 163%, as compared with $42,488 for the three months ended March 31, 2023. Bitcoin mining revenues are recorded net of bitcoin mining fees charged by our sole mining pool operator that equaled approximately 0.15% of gross bitcoin mining revenues for the three months ended March 31, 2024, and are determined by two main drivers: quantity of bitcoin mined and the price of bitcoin on the date the bitcoin is mined. During the three months ended March 31, 2024, we mined 2,031 bitcoin with an average bitcoin price of $55,029 as compared to 1,871 bitcoin with an average bitcoin price of $22,706 during the three months ended March 31, 2023. The increase in bitcoin mining revenue for the three months ended March 31, 2024 was attributable to the increase in the bitcoin mined during the period and the increase in the average bitcoin price as compared to the three months ended March 31, 2023. The increase in the quantity of bitcoin mined was primarily driven by the increased number of our miners in operation, which increased to approximately 133,000 compared to 71,000, an increase of 87% between March 31, 2023 and March 31, 2024. The increase in miners in operation increases our hashrate, which is our total computational power, and which when understood in the context of global hashrate, determines how much bitcoin we are able to mine.
Previous wording
Other services revenues pertain to our former data center operations for which we earned $73 for the three months ended December 31, 2022. In fiscal year 2023 we ceased data center operations.
Current wording
Other services revenues pertain to our former data center operations for which we earned $58 for the three months ended March 31, 2023. In fiscal year 2023 we ceased data center operations.
Previous wording
Our cost of revenues were $28,896 for the three months ended December 31, 2023, an increase of $8,480, or 42%, as compared with $20,416 for the three months ended December 31, 2022. These costs were primarily related to energy costs to operate the mining equipment within our owned facilities, which was $21,871 for the three months ended December 31, 2023, an increase of $8,604 or 65% as compared to $13,267 for the three months ended December 31, 2022. The increase in energy costs is due to the increases in the volume of mining equipment operating in our owned locations. We continually evaluate energy and bitcoin prices and periodically will curtail our mining operations when it is advantageous to do so.
Current wording
Our cost of revenues were $34,298 for the three months ended March 31, 2024, an increase of $12,216, or 55%, as compared with $22,082 for the three months ended March 31, 2023. These costs were primarily related to energy costs to operate the miners within our owned facilities, which were $26,228 for the three months ended March 31, 2024, an increase of $10,742, or 69%, as compared to $15,486 for the three months ended March 31, 2023. The increase in energy costs was due to the increases in the volume of miners operating in our owned locations. We continually evaluate energy and bitcoin prices and periodically will curtail our mining operations when it is advantageous to do so.
Previous wording
We also incurred hosting fees of $5,574 and profit sharing fees of $1,409 for the three months ended December 31, 2023, a decrease of $655, or 11%, and increase of $683, or 94%, as compared to $6,229 and $726, respectively, for the three months ended December 31, 2022. The hosting fees and profit sharing fees are primarily the result of our co-location agreement with Coinmint. The hosting fees remained consistent for both period since the decrease in KWHs utilized was offset by the increase in the rate charged per KWH.
Current wording
We also incurred hosting fees of $6,565 and profit sharing fees of $1,505 for the three months ended March 31, 2024, an increase of $1,377, or 27%, and increase of $286, or 23%, as compared to $5,188 and $1,219, respectively, for the three months ended March 31, 2023. The hosting fees and profit sharing fees were primarily the result of our co-location agreement with Coinmint. The hosting fees increased period over period due to increased rates charged per KWH even though KWHs utilized decreased slightly.
Previous wording
Professional fees, which consists primarily of legal, accounting and consulting fees, were $1,572 for the three months ended December 31, 2023, a decrease of $1,259, or 44%, from $2,831 for the three months ended December 31, 2022. Legal expenses were $158 for the three months ended December 31, 2023, as compared to $1,955 for the three months ended December 31, 2022. This decrease was primarily attributable to no legal settlements during the three months ended December 31, 2023, as compared to $1,010 of legal settlements during the three months ended December 31, 2022. Other professional fees, namely accounting and consulting, were $1,414 for the three months ended December 31, 2023, as compared to $876 for the three months ended December 31, 2022, representing a increase of $538.
Current wording
Professional fees, which consisted primarily of legal, accounting and consulting fees, were $2,208 for the three months ended March 31, 2024, a decrease of $1,542, or 41%, from $3,750 for the three months ended March 31, 2023. Legal expenses were $772 for the three months ended March 31, 2024, as compared to $3,339 for the three months ended March 31, 2023. This decrease was primarily attributable to no legal settlements during the three months ended March 31, 2024, as compared to $2,700 of legal settlements during the three months ended March 31, 2023. Other professional fees, namely accounting and consulting, were $1,432 for the three months ended March 31, 2024, as compared to $411 for the three months ended March 31, 2023, representing an increase of $1,021.
Previous wording
Payroll expenses were $15,321 for the three months ended December 31, 2023, an increase of $5,519, or 56%, from $9,802 for the three months ended December 31, 2022. Our payroll expenses include all compensation related expenses for our employees and mainly include salaries, wages, payroll-related taxes and benefits and non-cash stock-based compensation. Payroll expenses, excluding non-cash stock-based compensation, were $5,368 for the three months ended December 31, 2023, representing an increase of 37% from $3,924 for the three months ended December 31, 2022 mainly attributed to an increase in employee headcount.
Current wording
Payroll expenses were $16,820 for the three months ended March 31, 2024, an increase of $7,070, or 73%, from $9,750 for the three months ended March 31, 2023. Our payroll expenses include all compensation related expenses for our employees and mainly include salaries, wages, payroll-related taxes and benefits and non-cash stock-based compensation. Payroll expenses, excluding non-cash stock-based compensation, were $7,023 for the three months ended March 31, 2024, representing an increase of 75% from $4,007 for the three months ended March 31, 2023, mainly attributed to an increase in employee headcount.
Previous wording
We grant stock-based awards to certain employees as a significant portion of our payroll-related costs. Stock-based compensation, which is a non-cash expense, was $9,953 for the three months ended December 31, 2023, an increase of $4,075, or 69%, from $5,878 for the three months ended December 31, 2022. The increase in stock based compensation was mainly attributed to the vesting of a certain market-based restricted stock awards in December 2023.
Current wording
We grant stock-based awards to certain employees as a significant portion of our payroll-related costs. Stock-based compensation, which is a non-cash expense, was $9,797 for the three months ended March 31, 2024, an increase of $4,054, or 71%, from $5,743 for the three months ended March 31, 2023. The increase in stock based compensation was mainly attributed to the vesting of a certain market-based restricted stock awards in February 2024.
Previous wording
General and administrative expenses increased to $5,003 for the three months ended December 31, 2023 from $3,724 for the three months ended December 31, 2022, representing an increase of $1,279. This increase was primarily attributable to increases in corporate overhead, including, but not limited to, taxes, licenses, and insurance premiums.
Current wording
General and administrative expenses increased to $6,819 for the three months ended March 31, 2024 from $4,329 for the three months ended March 31, 2023, representing an increase of $2,490. This increase was primarily attributable to increases in corporate overhead, including, but not limited to, property taxes and insurance premiums (primarily due to the substantial increase in owned assets).
Previous wording
Gain on fair value of bitcoin, net for the three months ended December 31, 2023 is $36,041. As discussed in Notes 2 and Note 5 above, the Company adopted the amendments per ASC 350-60 in the current period, accordingly, we measured crypto assets within the scope of ASC Topic 350-60 -Intangibles - Goodwill and Other - Crypto Assetsat fair value in accordance with ASC Topic 820 -Fair Value Measurementand included the gains and losses from remeasurement in net income. The gain pertains to the change in bitcoin's fair value from adoption date, October 1, 2023, to December 31, 2023.
Current wording
Gain on fair value of bitcoin, net for the three months ended March 31, 2024 was $119,702. As discussed in Notes 2 and Note 5 above, the Company adopted the amendments per ASC 350-60 in the current period; accordingly, we measured crypto assets within the scope of ASC Topic 350-60 -Intangibles - Goodwill and Other - Crypto Assetsat fair value in accordance with ASC Topic 820 -Fair Value Measurementand included the gains and losses from remeasurement in net income. The gain pertains to the change in bitcoin's fair value from December 31, 2023 to March 31, 2024.
Previous wording
Prior to adoption of ASC 350-60 - Crypto Assets, bitcoin was classified as indefinite-lived intangible assets and were measured at cost less impairment. Additionally, in the previous guidance, subsequent increases in bitcoin prices are not allowed to be recorded (unrealized gains) unless the bitcoin is sold, at which point the gain is recognized. Accordingly, gains (losses) recognized on fair value of bitcoin in fiscal year 2024 are not comparable to fiscal year 2023.
Current wording
Prior to the adoption of ASC 350-60 - Crypto Assets, bitcoin was classified as indefinite-lived intangible assets and were measured at cost less impairment. Additionally, in the previous guidance, subsequent increases in bitcoin prices are not allowed to be recorded (unrealized gains) unless the bitcoin is sold, at which point the gain is recognized. Accordingly, gains (losses) recognized on fair value of bitcoin in fiscal year 2024 are not comparable to fiscal year 2023.
Previous wording
Impairment expense in the amount of $83 was recognized for the three months ended December 31, 2022. There is no impairment expense related to bitcoin for the three months ended December 31, 2023 due to the adoption of ASC 350-60 (as described in Note 2 and Note 5) which resulted in measuring bitcoin at fair value and recognizing gains or losses from remeasurement of the assets rather than at cost less impairment. The prior year impairment expense consists of bitcoin impairments due to the general decrease in bitcoin prices during the year. Decreases in bitcoin prices for periods subsequent to the mining date were recorded as impairment expense. Under ASC Topic 350 -Goodwill and Other(prior guidance), subsequent increases in bitcoin prices are not allowed to be recorded (unrealized gains) unless the bitcoin is sold, at which point the gain is recognized.
Current wording
Impairment expense in the amount of $194 was recognized for the three months ended March 31, 2023. There was no impairment expense related to bitcoin for the three months ended March 31, 2024 due to the adoption of ASC 350-60 (as described in Note 2 and Note 5) which resulted in measuring bitcoin at fair value and recognizing gains or losses from remeasurement of the assets rather than at cost less impairment. The prior year impairment expense consisted of bitcoin impairments due to the general decrease in bitcoin prices during the year. Decreases in bitcoin prices for periods subsequent to the mining date were recorded as impairment expense. Under ASC Topic 350 -Goodwill and Other(prior guidance), subsequent increases in bitcoin prices are not allowed to be recorded (unrealized gains) unless the bitcoin is sold, at which point the gain is recognized.
Previous wording
Operating activities from continuing operations used $39,626 in cash for the three months ended December 31, 2023, as compared to providing $4,703 in cash for the three months ended December 31, 2022. Our depreciation and amortization of $29,847, stock based compensation of $9,953, and a decrease in prepaid and other current assets of $9,010 were the main components of our operating cash inflow for the three months ended December 31, 2023, offset primarily by cash outflows for bitcoin mining of $73,786, net income of $25,909, and a decrease in accounts payable and accrued liabilities of $8,255. Our cash provided by operating activities during the three months ended December 31, 2022 was primarily driven by net loss for the period of $29,031, proceeds from the sale of bitcoin of $34,067, gain on change in fair value of bitcoin of $83, stock based compensation of $5,878, depreciation and amortization of $19,329, increase in accounts payable and accrued liabilities of $3,265, partially offset by mining of bitcoin of $27,746, realized gain on sale of bitcoin of $517, and increase in prepaid expenses and other current assets of $1,862.
Current wording
Realized gain on sale of bitcoin
Previous wording
Realized loss on sale of bitcoin was $517 for the three months ended December 31, 2022. As described under the heading "Gain on fair value of bitcoin, net", gains (losses) recognized on bitcoin transactions in fiscal year 2024 are not comparable to fiscal year 2023.
Current wording
Realized gain on sale of bitcoin was $1,422 for the three months ended March 31, 2023. As described under the heading “Gain on fair value of bitcoin, net” gains (losses) recognized on bitcoin transactions in fiscal year 2024 are not comparable to fiscal year 2023.
Previous wording
Depreciation and amortization expense increased to $29,847 for the three months ended December 31, 2023, from $19,329 for the three months ended December 31, 2022, an increase of $10,518. Depreciation expense increased by $10,506, or 56%, during the three months ended December 31, 2023, from $18,827 to $29,333, due to an increase in miners and mining-related equipment being placed in service during the comparative period. Amortization expense for the three months ended December 31, 2023 was $514, an increase of $12, or 2%, from $502 for the three months ended December 31, 2022.
Current wording
Depreciation and amortization expense increased to $32,187 for the three months ended March 31, 2024, from $21,346 for the three months ended March 31, 2023, an increase of $10,841, or 51%. Depreciation expense increased by $10,838, or 52%, during the three months ended March 31, 2024, to $31,666 from $20,828, due to an increase in miners, mining equipment and infrastructure being placed in service during the comparative period. Amortization expense for the three months ended March 31, 2024 was $521, an increase of $3, or 1%, from $518 for the three months ended March 31, 2023.
Previous wording
Interest expense in the three months ended December 31, 2023 decreased by $343 to $546 from $889 for the three months ended December 31, 2022 due to lower average debt balances during three months ended December 31, 2023 as compared to the three months ended December 31, 2022.
Current wording
Interest expense in the three months ended March 31, 2024 decreased by $273 to $526 from $799 for the three months ended March 31, 2023 due to lower average debt balances during three months ended March 31, 2024 as compared to the three months ended March 31, 2023.
Previous wording
Interest income in the three months ended December 31, 2023 increased from the prior year balance was due to an increase in short-term overnight investments.
Current wording
Interest income in the three months ended March 31, 2024 increased to $2,684 from $52 for the three months ended March 31, 2023 due to an increase in short-term overnight investments.
Previous wording
Net income from continuing operations for the three months ended December 31, 2023 was $25,909 as compared to net loss from continuing operations of $30,488 for the three months ended December 31, 2022, for the reasons discussed above.
Current wording
Net income from continuing operations for the three months ended March 31, 2024 was $126,735 as compared to net loss from continuing operations of $18,166 for the three months ended March 31, 2023, for the reasons discussed above.
Previous wording
Net income for the three months ended December 31, 2023 was $25,909, a fluctuation of $54,940 compared to net loss of $29,031 for the three months ended December 31, 2022, for the reasons stated above.
Current wording
Net income for the three months ended March 31, 2024 was $126,735, a fluctuation of $145,195 compared to net loss of $18,460 for the three months ended March 31, 2023, for the reasons stated above.
Previous wording
Other expense was $1,203 for the three months ended December 31, 2023, compared with other expense of $1,605 for the three months ended December 31, 2022, which is a change of $402. Other expense for the three months ended December 31, 2023 consisted primarily of an unrealized loss on derivative security of $1,243 as compared to loss for the same prior year period of $1,271. This change between the periods is the result of a change in fair value of the underlying instrument.
Current wording
Other income, net was $6 for the six months ended March 31, 2024, compared with other expense, net of $2,285 for the six months ended March 31, 2023, which is a change of $2,291. Other expense for the six months ended March 31, 2024 consisted primarily of an unrealized loss on derivative security of $2,192 as compared to a loss for the same prior year period of $1,215. This change between the periods was the result of a change in fair value of the underlying instrument.
Previous wording
We have not excluded our net gain on fair value off bitcoin ($36,041 in the quarter ended December 31, 2023), which we now record in our statement of operations as provided in ASC 350-60, as discussed elsewhere in this Form 10-Q.
Current wording
We have not excluded our net gain on fair value of bitcoin ($119,702 and $155,743 in the three and six months ended March 31, 2024, respectively), which we now record in our Consolidated Statement of Operations and Comprehensive Income (Loss) as provided in ASC 350-60, as discussed elsewhere in this Form 10-Q.
Previous wording
1 Represents legal fees related to litigation & settlement related expenses and financing & business development transactions
Current wording
1 Includes fees and expenses related to litigation, settlements, financing & business development transactions.
Previous wording
As of December 31, 2023, we had total current assets of $181,705, consisting of cash and cash equivalents, inventory, prepaid expenses and other current assets, bitcoin, investment in debt security and related derivative asset, current assets held for sale, and total assets in the amount of $862,731. Our total current liabilities and total liabilities as of December 31, 2023 were $42,393 and $52,170, respectively. We had working capital of $139,312 as of December 31, 2023. We sell the bitcoin we mine to fund operations and to fund capital expenditures. In addition, we have access to equity financing through our At-the-Market offering facility (see Note 12 - Stockholders' Equity and Note 17 - Subsequent Events to our consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q).
Current wording
As of March 31, 2024, we had total current assets of $687,771, consisting of cash and cash equivalents, inventory, prepaid expenses and other current assets, bitcoin, investment in debt security and related derivative asset, current assets held for sale, and total assets in the amount of $1,537,315. Our total current liabilities and total liabilities as of March 31, 2024 were $55,026 and $74,398, respectively. We had working capital of $632,745 as of March 31, 2024. We sell the bitcoin we mine to fund operations and to fund capital expenditures. In addition, we have access to equity financing through our At-the-Market offering facility (see Note 12 - Stockholders' Equity and Note 17 - Subsequent Events to our consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q).
Previous wording
We are a party to many contractual obligations involving commitments to make payments to third parties. These obligations impact our short-term and long-term liquidity and capital resource needs. Certain contractual obligations are reflected on the consolidated balance sheet as of December 31, 2023, while others are considered future commitments. Our contractual obligations primarily consist of cancelable purchase commitments with various parties to purchase goods or services, primarily miners and equipment, entered into in the normal course of business and operating leases. For information regarding our other contractual obligations, refer to Note 15 - Commitments and Contingencies in this Quarterly Report on Form 10-Q for the period ended December 31, 2023, and Note 17 - Commitments and Contingencies included in our Annual Report on Form 10-K as filed with the SEC on December 1, 2023.
Current wording
We are a party to many contractual obligations involving commitments to make payments to third parties. These obligations impact our short-term and long-term liquidity and capital resource needs. Certain contractual obligations are reflected on the Consolidated Balance Sheets as of March 31, 2024, while others are considered future commitments. Our contractual obligations primarily consist of cancelable purchase commitments with various parties to purchase goods or services, primarily miners and equipment, entered into in the normal course of business and operating leases. For information regarding our other contractual obligations, refer to Note 15 - Commitments and Contingencies in this Quarterly Report on Form 10-Q for the period ended March 31, 2024, and Note 17 - Commitments and Contingencies included in our Annual Report on Form 10-K as filed with the SEC on December 1, 2023.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged current paragraphs (14)
Current report — wording carried from elsewhere
($ presented in 000's, except for average bitcoin price)
Current report — wording carried from elsewhere
We earned $185,585 in bitcoin mining revenue during the six months ended March 31, 2024, which was an increase of $115,351, or 164%, as compared with $70,234 for the six months ended March 31, 2023. Bitcoin mining revenues are recorded net of bitcoin mining fees charged by our sole mining pool operator that equaled approximately 0.17% of gross bitcoin mining revenues for the six months ended March 31, 2024 and are determined by two main drivers: quantity of bitcoin mined and the price of bitcoin on the date the bitcoin is mined. During the six months ended March 31, 2024, we mined 4,051 bitcoin with an average bitcoin price of $45,811 as compared to 3,401 bitcoin with an average bitcoin price of $20,651 during the six months ended March 31, 2023. The increase in bitcoin mining revenue for the six months ended March 31, 2024 was attributable to the increase in the bitcoin mined during the period and the increase in the average bitcoin price as compared to the six months ended March 31, 2023. The increase in the quantity of bitcoin mined was primarily driven by the increased number of our miners in operation, which increased to approximately 133,000 compared to 71,000, an increase of 62,000, between March 31, 2023 and March 31, 2024. The increase in miners in operation increases our hashrate, which is our total computational power, and which when understood in the context of global hashrate, determines how much bitcoin we are able to mine.
Current report — wording carried from elsewhere
Other services revenues pertain to our former data center operations for which we earned $131 for the six months ended March 31, 2023. In fiscal year 2023 we ceased data center operations.
Current report — wording carried from elsewhere
Cost of revenues (exclusive of depreciation and amortization expense)
Current report — wording carried from elsewhere
Payroll expenses were $32,141 for the six months ended March 31, 2024, an increase of $12,589, or 64%, from $19,552 for the six months ended March 31, 2023. Our payroll expenses include all compensation related expenses for our employees and mainly include salaries, wages, payroll-related taxes and benefits and non-cash stock-based compensation. Payroll expenses, excluding non-cash stock-based compensation, were $12,391 for the six months ended March 31, 2024, representing an increase of 56% from $7,931 for the six months ended March 31, 2023, mainly attributed to an increase in employee headcount.
Current report — wording carried from elsewhere
We grant stock-based awards to certain employees as a significant portion of our payroll-related costs. Stock-based compensation, which is a non-cash expense, was $19,750 for the six months ended March 31, 2024, an increase of $8,129, or 70%, from $11,621 for the six months ended March 31, 2023. The increase in stock based compensation was mainly attributed to the vesting of a market-based restricted stock awards during the six months ended March 31, 2024.
Current report — wording carried from elsewhere
Gain on fair value of bitcoin, net
Current report — wording carried from elsewhere
Gain on fair value of bitcoin, net for the six months ended March 31, 2024 was $155,743. As discussed in Notes 2 and Note 5 above, the Company adopted the amendments per ASC 350-60 in the current period; accordingly, we measured crypto assets within the scope of ASC Topic 350-60 -Intangibles - Goodwill and Other - Crypto Assetsat fair value in accordance with ASC Topic 820 -Fair Value Measurementand included the gains and losses from remeasurement in net income. The gain pertains to the change in bitcoin's fair value from the adoption date, October 1, 2023, to March 31, 2024.
Current report — wording carried from elsewhere
Prior to the adoption of ASC 350-60 - Crypto Assets, bitcoin was classified as indefinite-lived intangible assets and was measured at cost less impairment. Additionally, in the previous guidance, subsequent increases in bitcoin prices are not allowed to be recorded (unrealized gains) unless the bitcoin is sold, at which point the gain is recognized. Accordingly, gains (losses) recognized on fair value of bitcoin in fiscal year 2024 are not comparable to fiscal year 2023.
Current report — wording carried from elsewhere
Other impairment expense (related to bitcoin)
Current report — wording carried from elsewhere
Impairment expense related to bitcoin in the amount of $277 was recognized for the six months ended March 31, 2023. There was no impairment expense related to bitcoin for the six months ended March 31, 2024 due to the adoption of ASC 350-60 (as described in Note 2 and Note 5) which resulted in measuring bitcoin at fair value and recognizing gains or losses from remeasurement of the assets rather than at cost less impairment. The prior year impairment expense consisted of bitcoin impairments due to the general decrease in bitcoin prices during such year. Decreases in bitcoin prices for periods subsequent to the mining date were recorded as impairment expense. Under ASC Topic 350 -Goodwill and Other(prior guidance), subsequent increases in bitcoin prices are not allowed to be recorded (unrealized gains) unless the bitcoin is sold, at which point the gain is recognized.
Current report — wording carried from elsewhere
Realized gain on sale of bitcoin
Current report — wording carried from elsewhere
Realized gain on sale of bitcoin was $905 for the six months ended March 31, 2023. As described under the heading "Gain on fair value of bitcoin, net", the gains (losses) recognized on bitcoin transactions in fiscal year 2024 are not comparable to fiscal year 2023.
Current report — wording carried from elsewhere
Net income (loss) from Continuing Operations