Quarterly report pursuant to Section 13 or 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.22.2.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
9 Months Ended
Sep. 30, 2022
Accounting Policies [Abstract]  
SCHEDULE OF RESTRICTED CASH

   

As of

September 30, 2022

   

As of

September 30, 2021

 
Cash and cash equivalents   $ 55,339,400     $ 32,854,092  
Restricted cash     8,800,000       -  
Cash, cash equivalents and restricted cash   $ 64,139,400     $ 32,854,092  
SCHEDULE OF ACTIVITIES OF DIGITAL CURRENCIES

The following table presents the activities of the digital currencies for the nine months ended September 30, 2022:

 

Digital currencies at December 31, 2021*   $ 123,243,264  
Additions of digital currencies     89,140,088  
Digital currencies transferred from fund     137,843,761  
Disposal of digital currency for charitable contribution     (20,297 )
Impairment of digital currencies     (153,045,376 )
Digital currencies at September 30, 2022   $ 197,161,440  

 

* Includes a loan of 600 bitcoin ($20,437,284) to NYDIG. On June 14, 2022 the Company terminated the loan and there are no loans of digital assets outstanding as of September 30, 2022.

 

Digital currencies at December 31, 2020   $ 2,271,656  
Additions of digital currencies     90,182,155  
Impairment of digital currencies     (18,472,750 )
Interest received on digital currencies, restricted     5,962  
Sale of digital currencies, net     (55,429 )
Digital currencies at September 30, 2021   $ 73,931,594  
SCHEDULE OF DIGITAL CURRENCIES HELD IN FUND

 

Digital currencies held in fund at December 31, 2021   $ 223,915,761  
Sale of digital currencies     (482,872 )
Realized and unrealized losses on digital currencies held in fund     (85,016,208 )
Management expenses incurred by fund     (572,920 )
Digital currencies transferred out of fund     (137,843,761 )
Digital currencies held in fund at September 30, 2022   $ -  
         
Digital currencies held in fund at December 31, 2020   $ -  
Purchase of digital currencies held in fund     150,000,000  
Realized and unrealized gains on digital currencies held in fund     74,696,002  
Management expenses incurred by fund     (780,241 )
Digital currencies held in fund at December 31, 2021   $ 223,915,761  
SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS

The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of September 30, 2022 and December 31, 2021, respectively:

 

    Fair value measured at September 30, 2022  
    Total carrying value at September 30,     Quoted prices in active markets     Significant other observable inputs     Significant unobservable inputs  
    2022     (Level 1)     (Level 2)     (Level 3)  
Assets                                
Money Market Accounts   $ 51,468,288     $ 51,468,288     $       -     $         -  

 

    Fair value measured at December 31, 2021  
    Total carrying value at
December 31,
    Quoted prices in active markets     Significant other observable inputs     Significant unobservable inputs  
    2021     (Level 1)     (Level 2)     (Level 3)  
Assets                                
Money Market Accounts   $ 266,635,158     $ 266,635,158     $ -     $ -  
Digital currencies held in fund   $ 223,915,761     $ -     $ 223,915,761     $ -  
SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE

Computation of potential shares for the diluted earnings (loss) per share calculation at September 30, 2022 and 2021 are as follows:

 

                 
    As of September 30,  
    2022     2021  
Warrants to purchase common stock     324,375       457,837  
Restricted stock     1,113,132       95,179  
Options to purchase common stock     -       81,120  
Convertible notes to exchange common stock     9,812,955       -  
Total     11,250,462       634,136  
SCHEDULE OF COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE

The following table sets forth the computation of basic and diluted loss per share:

 

    2022     2021     2022     2021  
   

For the Three Months Ended

September 30,

   

For the Nine Months Ended

September 30,

 
    2022     2021     2022     2021  
Net loss attributable to common shareholders   $ (75,444,407 )   $ (22,172,567 )   $ (280,027,638 )   $ (47,700,445 )
                                 
Denominator:                                
Weighted average common shares - basic and diluted     116,533,816       100,803,809       109,492,865       98,230,795  
Loss per common share - basic and diluted   $ (0.65 )   $ (0.22 )   $ (2.56 )   $ (0.49 )