Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.22.0.1
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income (loss) $ (36,174,506) $ (10,447,771) $ (3,517,065)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation 14,831,102 2,993,036 923,304
Amortization of patents and website 71,176 71,176 71,177
Amortization of leasehold improvements 1,723
Deferred tax liability 23,020,721
Loss on conversion of debt 364,833
Impairment of mining equipment 871,302
Impairment of leasehold improvements 447,776
Realized gain (loss) on sale of digital currencies (11,659) (15,466) (36,092)
Change in fair value of warrant liability 1,048,286 309,588 (26,234)
Change in fair value of mining payable 66,547 (507,862)
Change in fair value of investment securities (73,778,545)
Gain on PPP loan forgiveness (62,500)
Impairment of cryptocurrencies 29,552,991
Stock based compensation 160,786,028 1,178,609 933,682
Amortization of right-of-use assets 200,301 96,986 82,840
Bad debt allowance  
Change in prepaid service contract 561,000
Changes in operating assets and liabilities:      
Digital currencies (150,512,940) (4,357,443) (1,185,227)
Lease liability (121,596) (86,842) (72,548)
Prepaid expenses and other assets 136,200 644,059 (435,159)
Accounts payable and accrued expenses 11,927,398 (23,318) 2,753
Accrued interest on bond payable 867,260
Net cash used in operating activities (18,218,560) (7,773,704) (3,318,655)
CASH FLOWS FROM INVESTING ACTIVITIES      
Sale of digital currencies 2,102,394 1,220,178
Interest received from digital currencies, restricted
Loan receivable (30,000,000)
Purchase of investment securities (150,000,000)
Purchase of SAFE investments (3,000,000)
Purchase of property and equipment (273,851,299) (17,742,315) (5,225)
Deposits for the purchase of mining servers (435,065,378) (65,647,592)
Net cash provided by (used in) investing activities (891,916,677) (81,287,513) 1,214,953
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds received on issuance of notes payable 62,500
Proceeds from issuance of common stock/At-the-market offering 324,768,476 229,961,998 255,893
Offering costs for the issuance of common stock/At-the-market offering (12,571,668) (7,069,955) (10,399)
Proceeds from issuance of convertible debt, net of agent’s discount 728,812,500
Other offering costs (406,578)
Proceeds from line of credit 77,500,000
Repayment from line of credit (77,500,000)
Value of shares withheld for taxes (4,713,652)
Proceeds from issuance of common stock and warrant, net 6,271,600
Proceeds received on exercise of options and warrants 1,445,402 464,887
Net cash provided by financing activities 1,037,334,480 229,691,030 245,494
Net (decrease) increase in cash and cash equivalents 127,199,243 140,629,813 (1,858,208)
Cash and cash equivalents — beginning of period 141,322,776 692,963 2,551,171
Cash and cash equivalents — end of period 268,522,019 141,322,776 692,963
Supplemental schedule of non-cash investing and financing activities:      
Par value adjustment due to reverse split 1
Receivable due to share issuance 74,767,226
Common stock issued for purchase of mining servers 171,622 3,064,687
Reduction of share commitment for purchase of mining servers 408,625 1,021,562
Options exercised into common stock 3
Warrants exercised into common shares 1,370,723
Restricted stock issuance 15
Common stock issued for note conversion 1,579,074
Common stock issued for service and license agreements $ 11,134,839 $ 11,220,000