CLEANSPARK INC
For the period ended Jun 30, 2024. Filed Aug 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.
Jun 30, 2024 · Filed Aug 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 2024-03-31; filed 2024-05-09.
0000950170-24-056330
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-09.
0000950170-24-094891
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 126 previous paragraphs and 135 current paragraphs.
55 unchanged; 56 reworded; 19 added; 14 removed; 1 previous and 5 current paragraphs rearranged.
Tables are not compared: 5 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 (19)
Current report
Results of continuing operations for the three and nine months ended June 30, 2024 and 2023
Current report
The Company records depreciation expense (a non-cash expense) on its miners on a straight-line basis over the miners' expected useful life. Such non-cash depreciation amounts are recorded within the Condensed Consolidated Statements of Operations and Comprehensive Loss as "Depreciation and Amortization". 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 since depreciation expense is not an avoidable operating cost, such as energy costs. The table above presents the non-cash miner depreciation expense on a "per bitcoin" basis, calculated by dividing miner depreciation expense in our owned facilities by the number of bitcoin mined in the owned facilities. On a "cost per bitcoin" ratio, miner depreciation expense was $16,753 and $10,320 for the three months ended June 30, 2024 and 2023, respectively, and was $13,067 and $9,620 for the nine months ended June 30, 2024 and 2023, respectively. The Company recorded accelerated depreciation on certain of its miners based on the reduction of the estimated useful life from 5 years to 3 years, which equaled $5,060 and $1,473 on a cost per bitcoin ratio for the three and nine months ended June 30, 2024, respectively. The number of bitcoin received by the Company was reduced by 50% effective April 19, 2024 when the bitcoin algorithm halved the rewards from 6.25 per block to 3.125 per block.
Current report
We have financing costs for a limited number of miners in our miner fleet and such costs are recorded within Interest Expense in our Condensed Consolidated Statements of Operations and Comprehensive Loss. The table above presents financing costs per bitcoin calculated by dividing direct interest expense on our miner financing agreement by the number of bitcoin mined in our owned facilities. On a cost per bitcoin ratio, financing costs were $208 and $419 for the three months ended June 30, 2024 and 2023, respectively, and were $214 and $460 for the nine months ended June 30, 2024 and 2023.
Current report
At our hosting facilities, the hosting fee as compared to KWHs utilized in the hosted facilities was $0.063 and $0.059 per KWH for the three months ended June 30, 2024 and 2023, respectively, and was $0.068 and $0.061 per KWH for the nine months ended June 30, 2024 and 2023, respectively. The Company did not have significant curtailment greater than 20% during the three months or nine months ended June 30, 2024.
Current report
On a "cost per bitcoin" ratio, miner depreciation expense was $28,328 and $15,786 for the three months ended June 30, 2024 and 2023, respectively, and was $23,091 and $13,826 for the nine months ended June 30, 2024 and 2023, respectively. The increase for both FY 2024 periods presented was mainly due to the decrease of bitcoin production as a result of the bitcoin halving on April 19, 2024 when the bitcoin algorithm halved rewards from 6.25 per block to 3.125 per block. The Company did not have any S19 XP or S21 miners at the hosted facilities during the periods presented and accordingly, there was no accelerated depreciation in the hosted facilities.
Current report
Depreciation and amortization expense increased to $40,727 for the three months ended June 30, 2024, from $21,850 for the three months ended June 30, 2023, an increase of $18,877, or 86%. Depreciation expense increased by
Current report
$18,929, or 89%, during the three months ended June 30, 2024, to $40,199 from $21,270, mainly due to accelerated depreciation expense on miners beginning in the quarter ended June 2024. In April 2024, we concluded that we will cease use of our S19J, S19 J Pro and S19 J Pro+ miners, which have an efficiency of 22 joules per terahash ("j/TH") or greater, through December 31, 2024. In April 2024, we modified our option contract for the purchase of 100,000 Antminer S21 miners to include the Antminer S21 Pro ("S21 Pros") miners and executed the full purchase with delivery to occur through the remainder of calendar 2024. Upon receipt of the newer more efficient S21 Pros, we will replace the lower efficiency S19J, S19J Pro and S19J Pro+ miners.
Current report
We also evaluated the useful lives of all miners and have concluded based on the continued enhancements in miner efficiency that effective May 1, 2024, all miners would be adjusted to a useful life of 3 years, a reduction from 5 years. Accelerated depreciation from the changes in estimates above was approximately $7,261 for the three months ended June 30, 2024.
Current report
Amortization expense for the three months ended June 30, 2024 was $528, a decrease of $52, or 9%, from $580 for the three months ended June 30, 2023.
Current report
Net (loss) income from Continuing Operations
Current report
Net loss
Current report
Results of continuing operations for the nine months ended June 30, 2024 and 2023
Current report
Gain (Loss) on fair value of bitcoin, net
Current report
Depreciation and amortization expense increased to $102,761 for the nine months ended June 30, 2024, from $62,525 for the nine months ended June 30, 2023, an increase of $40,236 or 64%. Depreciation expense increased by $40,272, or 66%, during the nine months ended June 30, 2024, from $60,926 to $101,198, mainly due to accelerated depreciation expense on miners beginning in the quarter ended June 30, 2024. In April 2024, we concluded that we will cease use of our S19J, S19 J Pro and S19 J Pro+ miners, which have an efficiency of 22 j/TH or greater, through December 31, 2024. In April 2024, we modified our option contract for the purchase of 100,000 Antminer S21 miners to include the S21 Pros and executed the full purchase with delivery to occur through the remainder of calendar 2024. Upon receipt of the newer more efficient S21 Pros, we will replace the lower efficiency S19J, S19J Pro and S19J Pro+ miners.
Current report
We also evaluated the useful lives of all miners and have concluded based on the continued enhancements in miner efficiency that effective May 1, 2024, all miners would be adjusted to a useful life of 3 years, a reduction from 5 years. Accelerated depreciation from the changes in estimates above was approximately $7,261 for the nine months ended June 30, 2024.
Current report
Amortization expense for the nine months ended June 30, 2024 was $1,563, an increase of $36, or 2%, from $1,599 for the nine months ended June 30, 2023.
Current report
Other income, net was $3,347 for the nine months ended June 30, 2024, compared with other expense, net of $817 for the nine months ended June 30, 2023, which is a change of $4,164. Other income, net for the nine months ended June 30, 2024 consisted primarily of interest income, which increased to $5,909 from $174 for the nine months ended June 30, 2023, an increase of $5,735 due to an increase in short-term overnight investments.
Current report
Net (loss) income from Continuing Operations
Current report
Net (loss) income
Removed paragraphs (14)
Previous report
Results of continuing operations for the three and six months ended March 31, 2024 and 2023
Previous 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.
Previous 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.
Previous report
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 report
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 report
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 report
Net income (loss) from Continuing Operations
Previous report
Net income (loss)
Previous report
Results of continuing operations for the six months ended March 31, 2024 and 2023
Previous 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.
Previous 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.
Previous report
Net income (loss) from Continuing Operations
Previous report
Net income (loss)
Previous report
1 Includes fees and expenses related to litigation, settlements, financing & business development transactions.
Reworded paragraphs (56)
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 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 condensed 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, 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.
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 June 30, 2024. We independently own and operate nine data centers in Georgia and three data centers in Mississippi for a total developed power capacity of approximately 520 megawatts (“MW”) as of June 30, 2024. 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 location. An independent data center operation in Massena, NY hosts 50 MW for us. We have also entered into a hosting agreement on June 26, 2024 with GRIID Infrastructure, Inc. to host up to 12 MW of our bitcoin miners. We design our infrastructure to responsibly secure and support bitcoin, the world’s most recognized digital commodity. 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 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.
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 June 30, 2024, our operating mining units were capable of producing over 20.4 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 Georgia and Mississippi, seek strategic acquisition targets, and through strategic co-location agreements. As of July 31, 2024, we operated a high of 21.2 EH/s of computing power. A company’s computing power measured in hashrate is a significant factor in its bitcoin mining revenue.
Previous 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.
Current wording
1-42 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 June 30, 2024 had a range of energy efficiency (watts per terahash – “w/th”) of 17.5 to 29.5 w/th with an average energy efficiency of 21.2 w/th.
Previous 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.
Current wording
As of June 30, 2024, we held 6,590 bitcoins. As of June 30, 2024, the Company held 99.8% of its bitcoin in cold storage and 0.2% in hot wallets. The fair value of our bitcoins as of June 30, 2024 was $413,033 on our Condensed 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 condensed consolidated financial statements. As a result, the carrying value of each bitcoin we held at October 1, 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, decreases 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 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.
Current wording
As of June 30, 2024, our operating hashrate was approximately 3.66% of the total global hashrate, and we received approximately the same percentage of the global blockchain rewards, which as of that date equaled approximately 14-16 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 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.
Current wording
The table below describes the average cost of mining each bitcoin for the three and nine months ended June 30, 2024 and 2023 and the total energy usage and cost per each kilowatt hour ("KWH") utilized within our owned facilities.
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 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.
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, Mississippi 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 a goal of 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 June 30, 2024 and 2023 were $0.048 and $0.041 per KWH, respectively, and were $0.045 and $0.048 per KWH for the nine months ended June 30, 2024 and 2023, respectively.
Previous 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.
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. The Company did not have significant curtailment greater than 20% during the three months or nine months ended June 30, 2024.
Previous wording
(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 wording
(1) Average revenue of each bitcoin mined is calculated by dividing the sum of bitcoin mining revenue for hosted facilities by the total number of bitcoin mined within the hosted facilities during the respective periods. We have determined that Coinbase is the principal market for valuing bitcoin transactions and use the closing prices as of 23:59:59 UTC 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.
Previous 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.
Current wording
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 69.5% and 59.0% as a percentage of bitcoin mining revenues during the three months ended June 30, 2024 and 2023, respectively, and were 63.8% and 64.4% for the nine months ended June 30, 2024 and 2023, respectively.
Previous 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.
Current wording
We earned $104,108 in bitcoin mining revenue during the three months ended June 30, 2024, which was an increase of $58,681, or 129%, as compared with $45,427 for the three months ended June 30, 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 June 30, 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 June 30, 2024, we mined 1,580 bitcoin with an average bitcoin price of $65,904 as compared to 1,623 bitcoin with an average bitcoin price of $27,982 during the three months ended June 30, 2023. The increase in bitcoin mining revenue for the three months ended June 30, 2024 was attributable to the increase in the average bitcoin price offset by the decrease in the bitcoin mined during the period and as compared to the three months ended June 30, 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 152,500 compared to 68,000, an increase of 124% between June 30, 2023 and June 30, 2024. The increase in our 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 $58 for the three months ended March 31, 2023. 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 $96 for the three months ended June 30, 2023. In fiscal year 2023 we ceased data center operations.
Previous 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.
Current wording
Our cost of revenues were $45,180 for the three months ended June 30, 2024, an increase of $24,499, or 118%, as compared with $20,681 for the three months ended June 30, 2023. These costs were primarily related to energy costs to operate the miners within our owned facilities, which were $38,545 for the three months ended June 30, 2024, an increase of $24,659, or 178%, as compared to $13,886 for the three months ended June 30, 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 $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.
Current wording
We also incurred hosting fees of $5,598 and profit sharing fees of $911 for the three months ended June 30, 2024, an increase of $307, or 6%, and decrease of $423, or 32%, as compared to $5,291 and $1,334, respectively, for the three months ended June 30, 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 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.
Current wording
Professional fees, which consisted primarily of legal, accounting and consulting fees, were $4,368 for the three months ended June 30, 2024, an increase of $2,143, or 96%, from $2,225 for the three months ended June 30, 2023. Legal expenses were $2,493 for the three months ended June 30, 2024, as compared to $1,210 for the three months ended June 30, 2023. This increase was primarily attributable to legal and other professional fees in connection with merger and acquisition transactions of $1,544 during the three months ended June 30, 2024, as compared to $16 of legal transactions during the three months ended June 30, 2023. Other professional fees, namely accounting and consulting, were $1,875 for the three months ended June 30, 2024, as compared to $1,015 for the three months ended June 30, 2023, representing an increase of $860. The increase in accounting fees was primarily related to tax services and consulting.
Previous 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.
Current wording
Payroll expenses were $17,150 for the three months ended June 30, 2024, an increase of $6,745, or 65%, from $10,405 for the three months ended June 30, 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 $14,204 for the three months ended June 30, 2024, representing an increase of 219% from $4,458 for the three months ended June 30, 2023, mainly attributed to an increase in employee headcount along with employee bonuses.
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 $9,797 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.
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 $2,946 for the three months ended June 30, 2024, a decrease of $3,001, or 50%, from $5,947 for the three months ended June 30, 2023. The decrease in stock based compensation was mainly attributed to the vesting of a certain performance based restricted stock awards vesting in the three months ended June 30, 2023.
Previous 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).
Current wording
General and administrative expenses increased to $8,235 for the three months ended June 30, 2024 from $5,064 for the three months ended June 30, 2023, representing an increase of $3,171. 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
Current wording
(Loss) gain on fair value of bitcoin, net
Previous 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.
Current wording
Loss on fair value of bitcoin, net for the three months ended June 30, 2024 was $48,338. As discussed in Notes 2 - Summary of Significant Accounting Policies and Note 5 - Bitcoin 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 (loss). The loss pertains to the change in bitcoin's fair value from $71,291 per bitcoin on March 31, 2024 to $62,675 per bitcoin on June 30, 2024.
Previous 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.
Current wording
Impairment expense in the amount of $740 was recognized for the three months ended June 30, 2023. There was no impairment expense related to bitcoin for the three months ended June 30, 2024 due to the adoption of ASC 350-60 (as described in Note 2 - Summary of Significant Accounting Policies and Note 5 - Bitcoin) 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
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.
Current wording
Realized gain on sale of bitcoin was $143 for the three months ended June 30, 2023. As described under the heading “(Loss) 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
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 wording
Other income, net was $3,341 for the three months ended June 30, 2024, compared with other income, net of $1,468 for the three months ended June 30, 2023, which is a change of $1,873. Other income (expenses) for the three months ended June 30, 2024 consisted primarily of interest income of $2,638 as compared to $52 in the same prior year period. This was partially offset by unrealized loss on derivative security of $1,188 as compared to loss for the same prior year period of $105.
Previous 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.
Current wording
Interest expense in the three months ended June 30, 2024 decreased by $204 to $485 from $689 for the three months ended June 30, 2023 due to lower average debt balances during three months ended June 30, 2024 as compared to the three months ended June 30, 2023.
Previous 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.
Current wording
Net loss from continuing operations for the three months ended June 30, 2024 was $236,242 as compared to net loss from continuing operations of $14,117 for the three months ended June 30, 2023, for the reasons discussed above.
Previous 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.
Current wording
Net loss for the three months ended June 30, 2024 was $236,242, a fluctuation of $222,023 compared to net loss of $14,219 for the three months ended June 30, 2023, for the reasons stated above.
Previous wording
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 wording
We earned $289,693 in bitcoin mining revenue during the nine months ended June 30, 2024, which was an increase of $174,032, or 150%, as compared with $115,661 for the nine months ended June 30, 2023. Bitcoin mining revenues are recorded net of bitcoin mining fees charged by our sole mining pool operator that equaled approximately 0.16% of gross bitcoin mining revenues for the nine months ended June 30, 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 nine months ended June 30, 2024, we mined 5,628 bitcoin with an average bitcoin price of $51,472 as compared to 5,025 bitcoin with an average bitcoin price of $23,016 during the nine months ended June 30, 2023. The increase in bitcoin mining revenue for the nine months ended June 30, 2024 was primarily due to the increase in the average bitcoin price and partially due to the increase in bitcoin mined during the period as compared to the nine months ended June 30, 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 152,500 compared to approximately 68,000, an increase of 84,500, between
Previous wording
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 wording
Other services revenues pertain to our former data center operations for which we earned $227 for the nine months ended June 30, 2023. In fiscal year 2023 we ceased data center operations.
Previous wording
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 wording
Our cost of revenues were $108,374 for the nine months ended June 30, 2024, an increase of $45,195, or 72%, as compared with $63,179 for the nine months ended June 30, 2023. These costs were primarily related to energy costs to operate the miners within our owned facilities, which were $86,644 for the nine months ended June 30, 2024, an increase of $44,046 or 103% as compared to $42,598 for the nine months ended June 30, 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 $0.045/KWH for the nine months ended June 30, 2024 as compared to an average cost of $0.048/KWH for the nine months ended June 30, 2023. 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 $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 wording
We also incurred hosting fees of $17,737 and profit sharing fees of $3,823 for the nine months ended June 30, 2024, an increase of $1,027 or 6%,and $546 or 17%,respectively, as compared to $16,710 and $3,277, respectively, for the nine months ended June 30, 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.
Previous wording
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 wording
Professional fees, which consisted primarily of legal, accounting and consulting fees, were $8,149 for the nine months ended June 30, 2024, a decrease of $657, or 7%, from $8,806 for the nine months ended June 30, 2023. Legal expenses were $3,438 for the nine months ended June 30, 2024, as compared to $6,505 for the nine months ended June 30, 2023. This decrease was primarily attributable to no legal settlements during the nine months ended June 30, 2024, as compared to $3,800 of legal settlements during the nine months ended June 30, 2023. Other professional fees, namely accounting and consulting fees, were $4,710 for the nine months ended June 30, 2024, as compared to $2,301 for the nine months ended June 30, 2023, representing an increase of $2,409.
Previous wording
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 wording
Payroll expenses were $49,291 for the nine months ended June 30, 2024, an increase of $19,334, or 65%, from $29,957 for the nine months ended June 30, 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 $26,595 for the nine months ended June 30, 2024, representing an increase of 115% from $12,389 for the nine months ended June 30, 2023, mainly attributable to an increase in employee headcount along with employee bonuses.
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 $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 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 $22,696 for the nine months ended June 30, 2024, an increase of $5,128, or 29%, from $17,568 for the nine months ended June 30, 2023. The increase in stock based compensation was mainly attributable to the vesting of a market-based restricted stock awards during the nine months ended June 30, 2024.
Previous wording
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 wording
General and administrative expenses increased to $20,058 for the nine months ended June 30, 2024 from $13,117 for the nine months ended June 30, 2023, representing an increase of $6,941. 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 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 wording
Gain on fair value of bitcoin, net for the nine months ended June 30, 2024 was $107,406. As discussed in Note 2 - Summary of Significant Accounting Policies and Note 5 - Bitcoin 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 of $26,961 per bitcoin on October 1, 2023, to $62,675 per bitcoin as of June 30, 2024.
Previous 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.
Current wording
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.
Previous wording
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 wording
Impairment expense related to bitcoin in the amount of $1,017 was recognized for the nine months ended June 30, 2023. There was no impairment expense related to bitcoin for the nine months ended June 30, 2024 due to the adoption of ASC 350-60 (as described in Note 2 - Summary of Significant Accounting Policies and Note 5 - Bitcoin) 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.
Previous wording
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 wording
Realized gain on sale of bitcoin was $762 for the nine months ended June 30, 2023. As described under the heading "Gain (Loss) on fair value of bitcoin, net", the gains (losses) recognized on bitcoin transactions in fiscal year 2024 are not comparable to fiscal year 2023.
Previous 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.
Current wording
Unrealized loss on derivative security was $1,005 as compared to a loss for the same prior year period of $1,110. This change between the periods was the result of a change in fair value of the underlying instrument.
Showing the first 40 of 56 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
We owned approximately 180,000 miners as of June 30, 2024, of which approximately 152,505 were in service as of June 30, 2024 and the remainder pertain to new machines ready to install in the Dalton, GA expansion, newly acquired LN Energy locations, and GRIID hosting facilities or are pending repair. Our miners in service range in age from
Current report — wording carried from elsewhere
(1) Average revenue of each bitcoin mined is calculated by dividing the sum of bitcoin mining revenue for our owned facilities by the total number of bitcoin mined by our owned facilities during the respective periods. We have determined that Coinbase is the principal market for valuing bitcoin transactions and use the closing price of bitcoin at 23:59:59 UTC 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 — wording carried from elsewhere
Power prices are the most significant cost driver for our wholly owned locations, and energy costs represented 40.7% and 40.6% as expressed as a percentage of bitcoin mining revenues during the three months ended June 30, 2024 and 2023, respectively, and were 33.9% and 50.3% for the nine months ended June 30, 2024 and 2023, respectively.
Current report — wording carried from elsewhere
The table below describes the average cost of mining each bitcoin for the three and nine months ended June 30, 2024 and 2023 and the total energy usage and cost per each KWH utilized within our hosted facilities.
Current report — wording carried from elsewhere
June 30, 2023 and June 30, 2024. The increase in miners in operation increases our hashrate (hash calculations), which when understood in the context of global hashrate, determines how much bitcoin we are able to mine.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Gain on fair value of bitcoin, net