Quarterly report pursuant to Section 13 or 15(d)

Liquidity and Financial Condition

Liquidity and Financial Condition
3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Liquidity and Financial Condition

Note 2. Liquidity and Financial Condition

At March 31, 2023, the Company had approximate balances of cash and cash equivalents of $158.3 million, working capital of $253.6 million, total stockholders’ equity of $1.1 billion and an accumulated deficit of $812.0 million. To date, the Company has, in large part, relied on equity financings to fund its operations. During the three months ended March 31, 2023, the Company sold 1,975 Bitcoin for proceeds of approximately $44.4 million. The Company monitors its balance sheet on an ongoing basis and continuously evaluates the level of Bitcoin retained from monthly production in consideration of the cash requirements and its ongoing operations and expansion. Bitcoin is classified on the balance sheet as a current asset due to the ability for it to be sold in a highly liquid marketplace and the Company’s intent to liquidate its Bitcoin to support operations when needed.

Subsequent to March 31, 2023, through the date of this Report, the Company issued 7,871,700 shares of common stock for net proceeds of approximately $95.7 million, at a weighted average price of $12.41 per share (see Note 13. Stockholders’ Equity).


The COVID-19 pandemic was unprecedented and unpredictable, and its impact may continue to result in national and global economic disruption, which may adversely affect our business. Presently, the Company has not experienced and does not expect any material impact on its long-term strategic plans, its operations, or its liquidity due to the long-term impacts of COVID-19. We will monitor any future COVID-19 related developments and the possible effects on the Company’s financial condition, liquidity, operations, suppliers, and the industry.


We have experienced, and are experiencing, the impact of domestic and global inflationary pressures largely outside of our control. This inflationary pressure impacts our cost structure by increasing the cost of materials, parts and labor, making both our operations and development more expensive for us, despite a continued focus on controlling our costs where possible. In addition, sustained inflationary pressures have led to central banks raising interest rates, raising the cost of debt financing, which may precipitate a broad-based macroeconomic slowdown, including a possible recession in the United States and in other key financial markets. Management is unable to accurately predict when, or if, these inflationary pressures will subside, or whether and to what extent a significant recession will arise following central banks’ efforts to constrain such inflationary pressures. As a result, management is unable to predict the impact of these inflationary pressures, or the possible follow-on conditions, on our business and results of operations, as well as our access to debt financing. See the discussion under the heading “Risk Factors” under Part I, Item 1A of our 2022 Annual Report for additional discussion regarding potential impacts sustained elevated inflationary pressures may have on our operations and plans for expansion.