SEGMENT REPORTING
The Company has one reportable segment. The Datacenter Operations segment primarily derives revenue through datacenter hosting, crypto-currency self-mining, and power and capacity sales. The Company's chief operating decision maker is collectively the Chief Executive Officer and the President. They assess the performance of the segment and decide how to allocate resources based on segment gross profit and net income. The metrics are used to evaluate the investment in the expansion of new datacenters or other uses such as the continued deleveraging of the Company. Gross profit and net income is used to monitor budget versus actual results.
Years Ended December 31,
$ in thousands20242023
Segment revenue$59,533 $70,388 
Less:
Natural Gas Expense16,168 14,469 
Electricity for Mining Expense3,044 10,756 
Emissions Expense8,676 6,480 
Hosting Fee Expense 3,428 7,374 
Other Cost of Revenue (a)9,792 11,926 
Segment gross profit$18,425 $19,383 
Depreciation13,471 13,602 
Selling, general and administrative17,294 26,167 
Impairment of equity securities869 — 
Loss (gain) on sale of assets641 (9,903)
Impairment of long-lived assets169 4,000 
Remeasurement of environmental liability453 2,409 
Interest expense, net7,082 12,659 
Change in fair value of warrant asset477 — 
Gain on digital assets(2,154)— 
Gain on sale of digital assets— (512)
Other income, net(23)— 
Benefit from income taxes(69)— 
Segment net loss$(19,785)$(29,039)
Reconciliation of consolidated net loss
Loss from discontinued operations, net of tax— (471)
Net loss$(19,785)$(29,510)
(a) Other cost of revenue primarily consists of labor and repairs and maintenance expenses

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.