Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.21.2
Segment Information
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Information

Note 16. Segment Information

The Company applies ASC 280, Segment Reporting, in determining its reportable segments. The Company has two reportable segments: Cryptocurrency Mining and Data Center Hosting. The guidance requires that segment disclosures present the measure(s) used by the Chief Operating Decision Maker (“CODM”) to decide how to allocate resources and for purposes of assessing such segments’ performance. The Company's CODM is comprised of several members of its executive management team who use revenue and cost of revenues of both reporting segments to assess the performance of the business of our reportable operating segments.

No operating segments have been aggregated to form the reportable segments. The Company does not allocate all assets to the reporting segments as these are managed on an entity-wide basis. Therefore, the Company does not separately disclose the total assets of its reportable operating segments.

The Cryptocurrency Mining segment generates revenue from the cryptocurrency the Company earns through its mining activities. The Data Center Hosting segment generates revenue from long-term customer contracts for the provision/consumption of electricity, construction of infrastructure, operation of data centers and maintenance/management of computing capacity from the Company’s high performance computing facility in Rockdale, Texas.

All revenues are from external customers and no single customer or related group of customers contributed 10% or more of the Company's total revenue during the three and six months ended June 30, 2021 and 2020.

Through June 30, 2021, 100% of the Company’s cryptocurrency mining revenue was generated from the Coinmint Facility in New York, and 100% of the Company’s data center hosting revenue was generated from the Whinstone Facility in Rockdale, Texas.

33

Riot Blockchain, Inc. and Subsidiaries

Notes to the Condensed Interim Consolidated Financial Statements

(Unaudited)

The following table details revenue and cost of revenues for the Company's reportable segments for the three and six months ended June 30, 2021 and 2020, and reconciles to net income (loss) on the consolidated statements of operations:

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Reportable segment revenue:

Revenue, net - cryptocurrency mining

$

31,450

$

1,918

$

54,623

$

4,280

Revenue, net - data center hosting

2,874

-

2,874

-

Other revenue

24

24

48

48

Total segment and consolidated revenue

34,348

1,942

57,545

4,328

Reportable segment cost of revenue (exclusive of depreciation and amortization shown below):

Cost of revenues - cryptocurrency mining

9,325

1,440

16,859

2,847

Cost of revenues - data center hosting

3,736

-

3,736

-

Total segment and consolidated cost of revenue (exclusive of depreciation and amortization shown below)

13,061

1,440

20,595

2,847

Reconciling Items:

Acquisition-related costs

(17,032

)

-

(18,342

)

-

Selling, general and administrative

(3,512

)

(2,229

)

(7,664

)

(5,964

)

Depreciation and amortization

(5,738

)

(830

)

(8,584

)

(1,493

)

Change in fair value of derivative asset

17,536

-

17,536

-

Change in fair value of contingent consideration

(185

)

-

(185

)

-

Impairment of long-term investment

-

(9,413

)

-

(9,413

)

Impairment of cryptocurrencies

(17,507

)

-

(17,507

)

(989

)

Reversal of registration rights penalty

-

1,358

-

1,358

Gain on sale of equipment

-

18

-

35

Interest income

80

16

255

14

Interest expense

-

-

-

-

Other income (expense)

1,510

(12

)

1,510

(2

)

Realized gain on sale/exchange of long-term investment

26,260

-

26,260

-

Realized gain on sale/exchange of cryptocurrencies

29

-

29

106

Unrealized gain on marketable equity securities

339

-

339

-

Deferred income tax expense

(3,730

)

-

(3,730

)

-

Net income (loss)

$

19,337

$

(10,590

)

$

26,867

$

(14,867

)