Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | Bitfarms Ltd |
Trading Symbol | BITF |
Document Type | 40-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 224,200,000 |
Amendment Flag | false |
Entity Central Index Key | 0001812477 |
Entity Current Reporting Status | Yes |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Entity File Number | 001-40370 |
Entity Incorporation, State or Country Code | Z4 |
Entity Primary SIC Number | 7379 |
Entity Address, Address Line One | 18 King Street East |
Entity Address, Address Line Two | Suite 902 |
Entity Address, City or Town | Toronto |
Entity Address, State or Province | ON |
Entity Address, Postal Zip Code | M5C 1C4 |
Auditor Location | Oakville, Canada |
City Area Code | (647) |
Local Phone Number | 259-1790 |
Title of 12(b) Security | Common Shares |
Security Exchange Name | NASDAQ |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Interactive Data Current | Yes |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 271 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 122 E. |
Entity Address, Address Line Two | 42nd Street, 18th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10168 |
City Area Code | (800) |
Local Phone Number | 221-0102 |
Contact Personnel Name | Cogency Global Inc. |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current | ||
Cash | $ 30,887 | $ 125,595 |
Trade receivables | 701 | 1,038 |
Other assets | 4,512 | 3,225 |
Short-term prepaid expenses | 12,921 | 3,202 |
Taxes receivable | 12,142 | |
Digital assets | 4,635 | 66,031 |
Digital assets - pledged as collateral | 2,070 | 86,825 |
Assets held for sale | 1,220 | 1,211 |
Total current assets | 69,088 | 287,127 |
Non-current | ||
Property, plant and equipment | 219,428 | 136,850 |
Right-of-use assets | 16,364 | 9,397 |
Long-term deposits, equipment prepayments and other | 38,185 | 86,681 |
Intangible assets | 33 | 1,681 |
Goodwill | 16,955 | |
Deferred tax asset | 3,896 | |
Total assets | 343,098 | 542,587 |
Current | ||
Trade payables and accrued liabilities | 20,541 | 14,480 |
Current portion of long-term debt | 43,054 | 10,257 |
Current portion of lease liabilities | 3,649 | 4,346 |
Credit facility | 60,002 | |
Taxes payable | 12,093 | |
Total current liabilities | 67,244 | 101,178 |
Non-current | ||
Long-term debt | 4,093 | 910 |
Lease liabilities | 14,215 | 9,227 |
Asset retirement provision | 1,979 | 239 |
Deferred tax liability | 8,451 | |
Total liabilities | 87,531 | 120,005 |
Shareholders’ equity | ||
Share capital | 429,120 | 378,893 |
Contributed surplus | 65,512 | 43,704 |
Accumulated deficit | (239,065) | (15) |
Total equity | 255,567 | 422,582 |
Total liabilities and equity | $ 343,098 | $ 542,587 |
Consolidated Statements of Prof
Consolidated Statements of Profit or Loss and Comprehensive Profit or Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Profit or loss [abstract] | ||
Revenues | $ 142,428 | $ 169,491 |
Cost of revenues | 131,910 | 58,371 |
Gross profit | 10,518 | 111,120 |
Operating expenses | ||
General and administrative expenses | 51,506 | 43,238 |
Realized loss on disposition of digital assets | 150,810 | 289 |
Change in unrealized (gain) loss on revaluation of digital assets | (2,166) | 4,861 |
Loss (gain) on disposition of property, plant and equipment | 1,277 | (848) |
Impairment on equipment and construction prepayments, property, plant and equipment and right-of-use assets | 75,213 | 1,800 |
Impairment on goodwill | 17,900 | |
Impairment reversal on property, plant and equipment | (1,860) | |
Operating (loss) income | (284,022) | 63,640 |
Net financial (income) expenses | (27,560) | 21,003 |
Net (loss) income before income taxes | (256,462) | 42,637 |
Income tax (recovery) expense | (17,412) | 20,507 |
Net (loss) income and total comprehensive (loss) income | $ (239,050) | $ 22,130 |
Earnings (loss) per share Basic (in Dollars per share) | $ (1.15) | $ 0.14 |
Earnings (loss) per share Diluted (in Dollars per share) | $ (1.15) | $ 0.13 |
Weighted average number of common shares outstanding Basic (in Shares) | 207,776,000 | 157,652,000 |
Weighted average number of common shares outstanding Diluted (in Shares) | 207,776,000 | 169,392,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Number of shares | Share capital | Contributed surplus | Accumulated deficit | Total |
Balance at Dec. 31, 2020 | $ 32,004 | $ 5,588 | $ (22,145) | $ 15,447 | |
Balance (in Shares) at Dec. 31, 2020 | 88,939,000 | ||||
Net income (loss) | 22,130 | 22,130 | |||
Share-based payment | 22,585 | 22,585 | |||
Issuance of common shares and warrants | 229,712 | 30,228 | 259,940 | ||
Issuance of common shares and warrants (in Shares) | 64,526,000 | ||||
Conversion of long-term debt | 5,110 | (110) | 5,000 | ||
Conversion of long-term debt (in Shares) | 8,475,000 | ||||
Deferred tax expense related to equity issuance costs | 4,287 | 4,287 | |||
Exercise of stock options | 107,780 | (14,587) | 93,193 | ||
Exercise of stock options (in Shares) | 32,866,000 | ||||
Balance at Dec. 31, 2021 | 378,893 | 43,704 | (15) | 422,582 | |
Balance (in Shares) at Dec. 31, 2021 | 194,806,000 | ||||
Net income (loss) | (239,050) | (239,050) | |||
Share-based payment | 21,788 | 21,788 | |||
Issuance of common shares and warrants | 54,086 | 35 | 54,121 | ||
Issuance of common shares and warrants (in Shares) | 29,324,000 | ||||
Deferred tax expense related to equity issuance costs | (3,895) | (3,895) | |||
Exercise of stock options | 36 | (15) | 21 | ||
Exercise of stock options (in Shares) | 70,000 | ||||
Balance at Dec. 31, 2022 | $ 429,120 | $ 65,512 | $ (239,065) | $ 255,567 | |
Balance (in Shares) at Dec. 31, 2022 | 224,200,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from (used in) operating activities | ||
Net income (loss) | $ (239,050) | $ 22,130 |
Adjustments for: | ||
Depreciation and amortization | 72,420 | 24,476 |
Impairment on equipment and construction prepayments, property, plant and equipment and right-of-use assets | 75,213 | 1,800 |
Impairment reversal on property, plant and equipment | (1,860) | |
Impairment on goodwill | 17,900 | |
Net financial (income) expenses | (27,560) | 21,003 |
Digital assets mined | (138,985) | (164,393) |
Proceeds from sale of digital assets mined | 158,674 | 6,387 |
Realized loss on disposition of digital assets | 150,810 | 289 |
Change in unrealized (gain) loss on revaluation of digital assets | (2,166) | 4,861 |
Share-based payment | 21,788 | 22,585 |
Income tax expense (recovery) | (17,412) | 8,842 |
Loss (gain) on disposition of property, plant and equipment | 1,277 | (848) |
Interest and financial expenses paid | (17,724) | (3,981) |
Income taxes paid | (14,957) | |
Changes in non-cash working capital components | (3,978) | 15,390 |
Net change in cash related to operating activities | 36,250 | (43,319) |
Cash flows used in investing activities | ||
Purchase of property, plant and equipment | (153,138) | (108,161) |
Proceeds from sale of property, plant and equipment | 10,500 | 1,109 |
Purchase of marketable securities | (150,730) | (6,692) |
Proceeds from disposition of marketable securities | 202,379 | 12,841 |
Purchase of digital assets | (43,237) | |
Proceeds from sale of digital assets purchased | 21,055 | |
Acquisition through business combination | (23,000) | |
Equipment and construction prepayments and other | (41,840) | (85,095) |
Net change in cash related to investing activities | (155,011) | (208,998) |
Cash flows from financing activities | ||
Issuance of common shares and warrants | 54,086 | 259,174 |
Exercise of warrants and stock options | 21 | 63,317 |
Repayment of credit facility | (100,000) | |
Repayment of lease liabilities | (6,077) | (4,233) |
Repayment of long-term debt | (31,221) | (20,499) |
Proceeds from long-term debt | 67,201 | 14,227 |
Proceeds from credit facility | 40,000 | 60,000 |
Net change in cash related to financing activities | 24,010 | 371,986 |
Net increase (decrease) in cash | (94,751) | 119,669 |
Cash, beginning of the year | 125,595 | 5,947 |
Exchange rate differences on currency translation | 43 | (21) |
Cash, end of the year | $ 30,887 | $ 125,595 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Reporting Entity Basis Of Presentation And Liquidity [Abstract] | |
NATURE OF OPERATIONS | NOTE 1: NATURE OF OPERATIONS Bitfarms Ltd. was incorporated under the Canada Business Corporations Act on October 11, 2018 and continued under the Business Corporations Act (Ontario) on August 27, 2021. The consolidated financial statements of the corporation comprise the accounts of Bitfarms Ltd. and its wholly owned subsidiaries (together referred to as the “Company” or “Bitfarms”). The activities of the Company mainly consist of cryptocurrency mining and are divided into multiple jurisdictions described in Note 29 “Geographical Information”. The Company’s operations are currently predominantly in Canada and the United States, with new operations having commenced in Paraguay and Argentina in 2022. 9159-9290 Quebec Inc. (“Volta”), a wholly owned subsidiary, assists the Company in building and maintaining its server farms and provides electrician services to both commercial and residential customers in Quebec. Bitfarms owns and operates server farms comprised of computers (referred to as “Miners”) designed for the purpose of validating transactions on the BTC Blockchain (referred to as “Mining”). Bitfarms generally operates Miners 24 hours a day producing Computational power (measured by hashrate) which it sells to Mining Pools, for a formula driven rate commonly known in the industry as Full Pay Per Share (“FPPS”). Under FPPS, pools compensate Mining Companies for their hashrate based on what the pool would be expected to generate in revenue for a given time period if there was no randomness involved. The fee paid by a Mining Pool to Bitfarms for its hashrate may be in cryptocurrency, U.S. dollars, or other currency. Bitfarms accumulates the cryptocurrency fees it receives or exchanges them for U.S. dollars, as determined to be needed, through reputable and established cryptocurrency trading platforms. Mining Pools generate revenue by Mining with purchased hashrate through the accumulation of Block Rewards and transaction fees issued by the BTC network. Mining pools are purchasing hashrate and take on risk with the aim to mine more blocks than they should in a given time period in seek of profit. The common shares of the Company are listed under the trading symbol BITF on the Nasdaq and Toronto Stock Exchange exchanges. Terms and definitions In these financial statements, the following terms shall have the following definitions: Term Definition 1 Backbone Backbone Hosting Solutions Inc. 2 Volta 9159-9290 Quebec Inc. 3 Backbone Argentina Backbone Hosting Solutions SAU 4 Backbone Paraguay Backbone Hosting Solutions Paraguay SA 5 Backbone Mining Backbone Mining Solutions LLC 6 BTC Bitcoin 7 BVVE Blockchain Verification and Validation Equipment 8 CAD Canadian Dollars 9 USD U.S. Dollars 10 ARS Argentine Pesos |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2022 | |
Liquidity [abstract] | |
LIQUIDITY | NOTE 2: LIQUIDITY Bitfarms is primarily engaged in the cryptocurrency mining industry, a highly volatile market with significant inherent risk. Declines in the market prices of cryptocurrencies, an increase in the difficulty of cryptocurrency mining, delays in the delivery of mining equipment, changes in the regulatory environment and adverse changes in other inherent risks can significantly and negatively impact the Company’s operations and cash flows and its ability to maintain sufficient liquidity to meet its financial obligations. Adverse changes to the factors mentioned above have impacted the recoverability of the Company’s digital assets and property, plant and equipment, resulting in impairment losses being recorded. The Company’s current operating budget and future estimated cash flows for the twelve-month period, based on BTC market factors, including price, difficulty and network hashrate, as of the date these consolidated financial statements were authorized for issuance, indicate that it will generate positive cash flow in excess of required interest and principal payments due within the twelve-month period on its long-term debt. In December 2022, the Company renegotiated its 48,000 unit purchase agreements, extinguishing any future commitment related to the delivery and payment of BVVE, without penalty. Any prepaid deposits will be carryforward until the end of 2023 and be applied against future purchase agreements. On February 18, 2022, Backbone Mining entered into a $32,000 equipment financing facility with BlockFi Lending LLC (“BlockFi”). Backbone Mining owns or leases the assets of Bitfarms’ 20-megawatt active crypto mining facilities in the State of Washington. The loan is secured by certain assets of Backbone Mining, including its Miners and certain BTC produced by those Miners and is recourse only against Backbone Mining. As of December 31, 2022, the fair value of the assets collateralizing the loan is estimated by Backbone Mining to be approximately $5,000, while the outstanding principal and interest is approximately $20,000. During December 2022, the Company ceased making installment payments, which constituted a default under the loan agreement and entitled BlockFi to exercise various rights and remedies against Backbone Mining and in respect of the collateral. As of December 31, 2022, BlockFi did not exercise rights or remedies against the Company as a result of the default and the loan was classified as current. On February 8, 2023, BlockFi and the Company negotiated a settlement of the loan in its entirety for cash consideration of $7,750, discharging Backbone Mining of all further obligations and resulting in a gain on extinguishment of long-term debt of $12,578. Upon settlement, all of Backbone Mining’s assets, including 6,100 Miners, were unencumbered. At current BTC prices, the Company’s existing cash resources and the proceeds from any sale of its treasury and mined BTC will not be sufficient to fund its capital investments to support its growth objectives. If the BTC price does not increase, the Company would be required to raise additional funds from external sources to meet these requirements. There is no assurance that the Company will be able to raise such additional funds on acceptable terms, if at all. If the Company raises additional funds by issuing securities, existing shareholders may be diluted. If the Company was unable to obtain such financing, or if funds from operations and proceeds from any sale of the Company’s BTC holdings continue to be negatively impacted by the BTC price, the Company may have difficulty meeting its payment obligations. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Significant Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 3: BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The following accounting policies have been applied consistently in the consolidated financial statements for all periods presented unless otherwise stated. a. Basis of presentation of the financial statements The consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). These consolidated financial statements were approved and authorized for issue by the Board of Directors on March 20, 2023. The consolidated financial statements have been prepared on a cost basis, except for derivative financial instruments and digital assets that are measured at fair value. The consolidated financial statements are presented in U.S. dollars and all values are rounded to the nearest thousand, except where otherwise indicated. b. Significant accounting policies Presentation of profit and loss The Company has elected to present the profit or loss items using the function of expense method. The operating cycle The operating cycle of the Company is to mine digital assets and then routinely deposit them into custody, or convert them to fiat currency as needed. The Company’s activities have a one year operating cycle. Accordingly, the assets and liabilities are classified in the statement of financial position as current assets and liabilities based on the Company’s operating cycle. Consolidated financial statements These financial statements consolidate the Company’s subsidiaries from the date of acquisition until the date that control is lost. The subsidiaries are controlled by the Company, where control is achieved when the Company is exposed to or has the right to variable returns from its involvement with the investee and has the current ability to direct the activities of the investee that significantly affect the investee’s returns. The financial statements of the Company and its subsidiaries are prepared as of the same dates and periods. The consolidated financial statements are prepared using uniform accounting policies by all subsidiaries of the Company. Significant intercompany balances and transactions and gains or losses resulting from intercompany transactions are eliminated in full in the consolidated financial statements. Cash Cash consists of cash at banks, cash held in trust and short-term deposits with a maturity of less than three months. Business combinations Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date at fair value, and the amount of any non-controlling interests in the acquiree. Acquisition-related costs are expensed as incurred and included in general and administrative expenses. The Company determines that it has acquired a business when the acquired set of activities and assets include an input and a substantive process that together significantly contribute to the ability to create outputs. Goodwill Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company’s cash-generating units (“CGUs”) or group of CGUs that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. A CGU or group of CGUs to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the CGU or group of CGUs may be impaired. If the recoverable amount of the CGU or group of CGUs is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the CGU or group of CGUs and then to the other assets of the CGU or group of CGUs on a pro-rata basis of the carrying amount of each asset in the CGU or group of CGUs. An impairment loss recognized for goodwill is not reversed in a subsequent period. The Company has designated December 31 as the date for its annual impairment test. Foreign currency translation i. Functional currency and presentation currency The financial statements are presented in U.S. Dollars, which is the functional currency of the parent company, as well as the functional currency of Backbone, Backbone Argentina, Backbone Paraguay and Backbone Mining. The functional currency is the currency that best reflects the economic environment in which the Company operates and conducts its transactions. The functional currency of Volta, a Canadian subsidiary, is the Canadian dollar. The Company determines the functional currency of each subsidiary. Volta has a Canadian functional currency, and, as such, assets and liabilities are translated using the exchange rate in effect at each reporting date. Revenues and expenses are translated using the average exchange rates in effect for all periods presented. The resulting translation differences are included in other comprehensive income. The translation differences on foreign currency translation of Volta were immaterial for the years ended December 31, 2022 and December 31, 2021. ii. Transactions, assets and liabilities in foreign currency Transactions in foreign currency are initially recorded at the exchange rate in effect on the transaction date. Monetary assets and liabilities in foreign currency are subsequently translated into the functional currency at the exchange rate in effect at each reporting date. Exchange rate differences, other than those capitalized to qualifying assets or carried to equity in hedging transactions, are included in profit or loss. Non-monetary assets and liabilities in foreign currency stated at cost are translated at the exchange rate in effect at the transaction date. Non-monetary assets and liabilities in foreign currency carried at fair value are translated at the exchange rate at the date on which the fair value was determined. Revenue recognition Revenue from contracts with customers is recognized when control over the goods or services is transferred to the customer. The transaction price is the amount of the consideration that is expected to be received based on the contract terms, excluding amounts collected on behalf of third parties (such as taxes). The following are the specific revenue recognition criteria which must be met before revenue is recognized: i. Revenues from cryptocurrency mining The Company has entered into contracts with mining pools and has undertaken the performance obligation of providing computing power to the mining pool in exchange for non-cash consideration in the form of cryptocurrency. Revenues from cryptocurrency mining are recognized when the computing power is provided to the mining pool. The Company measures the non-cash consideration received at the fair market value of the cryptocurrency received. Management estimates fair value on a daily basis as the quantity of cryptocurrency received multiplied by the price quoted on www.coinmarketcap.com (“Coinmarketcap”) on the day it was received. Management considers the prices quoted on Coinmarketcap to be a level 2 input under IFRS 13 Fair Value Measurement. Any difference between the fair value of cryptocurrency recorded upon receipt from mining activities and the actual realized price upon disposal are recorded as a gain or loss on disposition of cryptocurrency. ii. Revenues from hosting cryptocurrency mining equipment The Company has entered into hosting contracts where it operates mining equipment on behalf of third parties within its facilities. Revenue from hosting contracts is recognized as the Company meets its obligation of operating the hosted equipment over time. These contracts have been terminated as of December 31, 2021. iii. Revenue from electrical services The Company, through Volta, sells electrical components and provides electrician installation for those components as well as repair and maintenance services. Revenues are recognized according to the stage of completion of the transaction as of the balance sheet date. The stage of completion is estimated based on the costs incurred for the transaction compared to the estimated cost of completion for the project. According to this method, revenues are recognized in the reporting period in which the services are provided. In the event that the outcome of the contract cannot be measured reliably, the revenues are recognized to the extent of the recoverable expenses incurred. Any amounts received in advance for future services to be provided are recorded as deferred revenues (contract liability), grouped with trade payables and accrued liabilities, and recognized as revenue in profit or loss when the services are rendered. Digital assets Cryptocurrency on hand at the end of a reporting period, if any, is classified as digital assets, and is accounted for under IAS 38, Intangible Assets The Company reports cryptocurrency on hand at the end of the reporting period as digital assets, which are classified as current assets as management has determined that the cryptocurrency on hand at the end of the reporting period has markets with sufficient liquidity to allow conversion within the Company’s normal operating cycle. The Company presents cryptocurrency pledged as collateral separate from unencumbered cryptocurrency. Income tax The income tax expense for the year comprises current and deferred taxes. These taxes are recognized in profit or loss, except to the extent that they relate to items which are recognized in other comprehensive income or loss or directly in shareholders’ equity. i. Current taxes The current tax liability is measured using the tax rates and tax laws that have been enacted or substantively enacted by the reporting date as well as adjustments required in connection with tax liabilities in respect of previous years. ii. Deferred taxes Deferred taxes are computed in respect of temporary differences between the carrying amounts in the financial statements and the amounts attributed for tax purposes. Deferred taxes are measured at the tax rate that is expected to apply when the asset is realized, or the liability is settled, based on tax laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is not probable that they will be utilized. Deductible carryforward losses and temporary differences for which deferred tax assets had not been recognized are reviewed at each reporting date and a respective deferred tax asset is recognized to the extent that their utilization is probable. Taxes that would apply in the event of the disposal of investments in investees have not been taken into account in computing deferred taxes as long as the disposal of the investments in investees is not probable in the foreseeable future. Leases The Company assesses at contract inception whether a contract is, or contains, a lease. The determination is based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company as a lessee applies a single recognition and measurement approach for all leases except for short-term leases and leases of low-value assets. The Company recognizes lease liabilities to make lease payments and right-of-use assets (“ROU assets”) representing the right to use the underlying assets. i. ROU assets The Company recognizes ROU assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). ROU assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of ROU assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. ROU assets are depreciated over the shorter of the lease term and the estimated useful lives of the assets, as follows: Asset Class Depreciation Method Depreciation period Leased premises Straight-line 4-10 years Vehicles and other Straight-line 3-5 years BVVE and Electrical components Sum of years 5 years If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset and is classified with property plant and equipment. Refer to the accounting policies of Property, plant and equipment in this note. The ROU assets are also subject to impairment. Refer to the accounting policies of Impairment of non-financial assets in this note. ii. Lease liabilities At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. iii. Short-term leases and leases of low value assets The Company applies the short-term lease recognition exemption to its short-term leases of machinery, equipment and farming facilities (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). The Company also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term. Assets held for sale Non-currents assets or a disposal group are classified as held for sale if their carrying amount is expected to be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the assets must be available for immediate sale in their present condition, the Company must be committed to their sale, there must be a program to locate a buyer, and it is highly probable that a sale will be completed within one year from the date of classification. From the date of such initial classification, these assets are no longer depreciated and are presented separately as current assets at the lower of their carrying amount and fair value less costs to sell. The gain or loss on disposition of assets held for sale will only be presented separately in other comprehensive income (loss) when it qualifies as part of discontinued operations. When an entity no longer plans to sell an asset in a sale transaction, it ceases the classification of the asset as held for sale and measures it at the lower of its carrying amount had it not been classified as held for sale or the recoverable amount of the asset on the date of the decision not to sell the asset. Property, plant and equipment Property, plant and equipment are carried at cost, including directly attributable costs, less accumulated depreciation, accumulated impairment losses and any related investment grants, and excluding day-to-day servicing expenses. Cost includes spare parts and auxiliary equipment that are used in connection with plant and equipment. The cost of an item of property, plant and equipment includes the initial estimate of the costs of dismantling and removing the item and restoring the site on which the item is located. Property, plant and equipment are depreciated as follows: Asset Class Depreciation Method Depreciation period BVVE Sum of years 5 years Mineral assets * N/A N/A Electrical equipment Sum of years 5 years Leasehold improvements Straight-line Shorter of the lease term and the expected life of the improvement Buildings Declining balance 4% Vehicles Declining balance 30% * Since the acquisition of mineral assets in 2018, there has been no production. The useful life, depreciation method and residual value of an asset are reviewed at least each year-end and any changes are accounted for prospectively as a change in accounting estimate. Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale and the date that the asset is derecognized. The sum of years depreciation method is calculated as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Rate 5/15 4/15 3/15 2/15 1/15 Percentage 33.33% 26.67% 20.00% 13.33% 6.67% Intangible assets Intangible assets consist of acquired software and a below market lease acquired in a business combination used in the Company’s cryptocurrency mining operations. Intangible assets acquired separately are initially measured at cost plus direct acquisition costs. Intangible assets acquired in business combinations are measured at their fair value as of the acquisition date. Intangible assets with a finite useful life are amortized over their useful lives using the sum of years method and are reviewed for impairment whenever there is an indication that the asset may be impaired. The amortization period and the amortization method for an intangible asset are reviewed at least at each year end. Intangible assets are amortized as follows: Asset Class Depreciation Method Depreciation period Computer software Sum of years 5 years Favorable lease Straight-line Lease term i. Software The Company’s assets include computer systems comprised of hardware and software. Certain hardware comes pre-installed with firmware. Without this firmware, the hardware could not function and therefore both the hardware and firmware are classified within property plant and equipment. In contrast, stand-alone software that adds functionality to the hardware is classified as an intangible asset. The sum of years depreciation method for computer software is calculated as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Rate 5/15 4/15 3/15 2/15 1/15 Percentage 33.33% 26.67% 20.00% 13.33% 6.67% ii. Favorable lease The favorable lease acquired during the business acquisition is described in Note 5. Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, who is responsible for allocating resources and assessing the performance of the operating segments, and which has been identified as the management team that makes strategic decisions. Impairment of non-financial assets The Company evaluates the need to record an impairment of non-financial assets whenever events or changes in circumstances indicate that the carrying amount is not recoverable. If the carrying amount of non-financial assets exceeds their recoverable amount, the assets are reduced to their recoverable amount. The recoverable amount is the higher of fair value less costs of sale and value in use. In measuring value in use, the expected future cash flows are discounted using a pre-tax discount rate that reflects the risks specific to the asset. The recoverable amount of an asset that does not generate independent cash flows is determined for the CGU to which the asset belongs. Impairment losses are recognized in profit or loss. An impairment loss of an asset, other than goodwill, is reversed only if there have been changes in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. Reversal of an impairment loss, as noted above, shall not be increased above the lower of the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the asset in prior years and its recoverable amount. The reversal of impairment loss of an asset presented at cost is recognized in profit or loss. Financial instruments i. Financial assets Initial recognition and measurement Financial assets are initially measured at fair value plus transaction costs that can be directly attributed to the acquisition of the financial asset, except in the case of a financial asset measured at fair value through profit or loss in respect of which transaction costs are charged to profit or loss. Subsequent measurement Financial assets presented at amortized cost are subsequently measured using the effective interest rate method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. The Company’s financial assets at amortized cost includes trade receivables and certain items included in other assets. Net changes in financial assets measured at fair value are recognized in the statement of profit or loss. A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the host and accounted for as a separate derivative if: the economic characteristics and risks are not closely related to the host; a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and the hybrid contract is not measured at fair value through profit or loss. Embedded derivatives are measured at fair value with changes in fair value recognized in profit or loss. This category includes the 2021 embedded derivative arising from the repayment terms of the Dominion loan described in Note 17. Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the fair value through the profit or loss category. Impairment The Company recognizes an allowance for expected credit losses (“ECLs”) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. ii. Financial liabilities Initial recognition and measurement Financial liabilities are classified at initial recognition at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade payables and accrued liabilities, credit facility and long-term debt. Subsequent measurement Financial liabilities are either measured at fair value through profit or loss or at amortized cost. Financial liabilities measured at fair value through profit or loss included a warrant liability, subject to the amendment of the warrant terms as described in Note 17 and the warrants issued in the private placements described in Note 21. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate (“EIR”) method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as financial expenses in the statement of profit or loss. This category generally applies to interest-bearing loans and borrowings. iii. Derecognition of financial assets Financial assets are derecognized when the contractual rights to receive the cash flows from the financial asset expire, or when the Company transfers the contractual rights to a third party to receive the cash flows from the financial asset or assumes an obligation to pay the cash flows received in full to a third party without significant delay. iv. Derecognition of financial liabilities Financial liabilities are derecognized when they are extinguished, which occurs when the obligation defined in the contract is fulfilled, cancelled or expires. A financial liability is fulfilled when the debtor repays the liability by paying cash; providing other financial assets, goods or services, or is otherwise legally released from the liability. Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement is based on the assumption that the transaction will take place in the asset’s or the liability’s principal market, or in the absence of a principal market, in the most advantageous market. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. Fair value measurement of non-financial assets takes into account the ability of a market participant to derive economic benefits from the asset through its best use, or by selling it to another market participant capable of using the asset to its best use. Assets and liabilities measured at fair value, or whose fair value is disclosed are classified into categories within the fair value hierarchy, based on the lowest level input that is significant to the overall fair value measurement: Level Definition Level 1 Unadjusted quoted prices in an active market of identical assets and liabilities Level 2 Non-quoted prices included in Level 1 that are either directly or indirectly observable Level 3 Data that is not based on observable market information, such as valuation techniques without the use of observable market data Provisions Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligations and the amounts can be reliably estimated. When the Company expects that part or all of the expense will be refunded, such as an insurance claim, the refund will be recognized as a separate asset only on the date when there is certainty of receiving the asset. The expense will be recognized in the statement of profit or loss net of the expected refund. Asset retirement provisions These provisions relate to Backbone and Backbone Argentina’s legal obligation, in relation to its leased properties, to restore the properties to their original condition at the end of the lease period. The provisions are calculated at the present value of the expected costs to settle the obligations using estimated future cash flows discounted at a rate that reflects the risks specific to the obligations. Changes in the estimated future costs, or in the discount rate applied, are recorded as an adjustment of the cost of the related asset. Shared-based transactions Transactions settled with equity instruments The cost of employee services paid in equity instruments is measured at the fair value of the equity instruments as of the grant date. The fair value is determined using a generally accepted option pricing model. Equity settled transactions with other services providers are measured at the fair value of the goods or services received in return for the equity instruments. The cost of equity-settled transactions is recognized in profit or loss together with a corresponding increase in contributed surplus during the period in which the performance and/or service conditions are to be satisfied and ending on the date on which the relevant employees become entitled to the award (“the vesting period”). The cumulative expense recognized for equity-settled transactions at the end of each reporting period until the vesting date reflects the extent to which the vesting period has expired and management’s best estimate of the number of equity instruments that will ultimately vest. Expenses related to grants that do not vest are not recognized. Grants where the fair value is determined at the date of the grant based on non-vesting market conditions are treated as vested, assuming all other vesting conditions (service and/or performance) were met. When the Company modifies the terms of equity-settled transactions, an additional expense is recognized on the date of the modification and is calculated as the increase in the fair value of the compensation granted in excess of the original expense. Cancellation of equity settlement that has not vested is treated as if it had vested on the date of cancellation, with the unrecognized expense recognized immediately. However, if the cancellation is subsequently replaced by a new agreement and is designated as an alternative settlement, then it is treated as a modification of the original agreement as described above. Earnings per share Earnings per share is calculated by dividing the net income attributable to the Company’s shareholders by the weighted average number of common shares outstanding during the period. Potential common shares are included in the calculation of diluted earnings per share if their effect dilutes earnings per share from continuing operations. Potential common shares that were converted during the period are included in diluted earnings per share only up to the conversion date, and from that date are included in basic earnings per share. Share capital and issue of a unit of securities Share capital represents the amount received on the issuance of shares, less issuance costs (net of tax). The issue of a unit of securities involves the allocation of the proceeds received before issue expenses to the securities issued in the unit based on the following order: financial derivatives and other financial instruments measured at fair value in each period. Fair value is then determined for financial liabilities that are measured at amortized cost. The proceeds allocated to equity instruments are determined to be the residual amount. Issue costs are allocated to each component pro rata to the amounts determined for each component in the unit. c. New accounting amendments issued and adopted by the Company The following amendments to |
Significant Accounting Judgment
Significant Accounting Judgments and Estimates | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Judgments and Estimates [Abstract] | |
SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES | NOTE 4: SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES The preparation of the consolidated financial statements requires management to undertake several judgments, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. These estimates and judgments are based on management’s best knowledge of the events or circumstances and actions the Company may take in the future. The actual results may differ from these assumptions and estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to assumptions and estimates are recognized in the period in which the assumption or estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Information about the significant judgments, estimates and assumptions that have the most significant effect on the recognition and measurement of assets, liabilities, income and expenses are discussed below. a. Judgements Going concern The Company has exercised judgment and used assumptions to determine that it will continue to operate as a going concern. Judgments and estimates were used in determining the Company’s future estimated cash flows for the twelve-month period following December 31, 2022, based on BTC market factors, including price, difficulty and network hashrate. Due to the sensitivity of cash flows to market conditions, small changes in these assumptions may give rise to the determination that there are material uncertainties. Revenue recognition There is currently no specific definitive guidance in IFRS or alternative accounting frameworks for accounting for the revenue recognition from cryptocurrency mining as well as subsequent measurement of cryptocurrency held. Management has determined that revenues should be recognized as the fair value of cryptocurrencies received in exchange for mining services on the date that cryptocurrencies are received and subsequently measured as an intangible asset. Management has exercised significant judgement in determining the appropriate accounting treatment. In the event authoritative guidance is issued by the International Accounting Standards Board, the Company may be required to change its accounting policies, which could have a material effect on the Company’s financial statements. b. Estimates and assumptions Leases The application of IFRS 16 requires the Company to make judgments and estimates that affect the valuation of the lease liabilities and the valuation of ROU assets. These include the determination of contracts in scope of IFRS 16, the lease term and the interest rate used for discounting future cash flows. The Company measures the lease liability at the present value of the lease payments using the implicit interest rate in the lease at the commencement of a new lease or when a lease is modified. If the rate cannot be readily determined, the Company evaluates its incremental borrowing cost using assumptions and estimates. The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease if it is reasonably certain not to be exercised. The Company has the option under some of its leases to lease the assets for additional terms of three to ten years. The Company applies judgement in evaluating whether it is reasonably certain to exercise the option to renew and it considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option to renew (e.g., a change in business strategy). The Company included the renewal period as part of the lease term for leases of most farming facilities due to the significance of these assets to its operations. The Company has not included renewal periods for farming facilities beginning 10 years from the commencement of the lease. Property, plant and equipment and intangible assets Estimates of useful lives, residual values and methods of depreciation are reviewed annually. Any changes based on additional available information are accounted for prospectively as a change in accounting estimate. Goodwill Determining whether goodwill is impaired requires an estimation of the recoverable amount of the CGU or group of CGUs. Such recoverable amount corresponds, for the purpose of impairment assessment, to the higher of the value in use or the fair value less costs of disposal of the CGU or group of CGUs to which goodwill has been allocated. The value in use calculation requires management to estimate future cash flows expected to arise from the CGU or group of CGUs and a suitable discount rate in order to calculate present value. The key assumptions required for the value in use estimation are the revenue per terahash, energy prices, discount rate and the terminal value. For the value in use approach, the values assigned to key assumptions reflect past experience and external sources of information that are deemed accurate and reliable. The value in use is categorized as Level 3 in the fair value hierarchy described under IFRS 13, Fair Value Measurement When using the value in use approach, cash flows for each CGU or group of CGUs are derived from the budget for the upcoming year, which is approved on an annual basis by members of the Company’s Board of Directors, and a long-term forecast prepared by management, which covers an additional period from 4 to 5 years. The discount rate is derived from the Company’s pre-tax weighted average cost of capital and is adjusted, where applicable, to take into account any specific risks. When applicable, management estimated the terminal value of the Miners included in the CGU for the purposes of the impairment testing to be the daily revenue per Terahash in effect at the end of the value in use calculation multiplied by the ending hashrate for a period of time. The main assumptions used for the goodwill impairment testing are disclosed in Note 11. Impairment and reversal of impairment of non-financial assets The Company reviews the need for recording impairment of mineral assets, as detailed in Note 11, for which purpose it engaged an independent external appraiser to assist in determining the value of the assets. The fair value was determined through use of the market approach, which includes analyzing similar and comparable mineral properties and making adjustments for differences between those properties and the subject among certain identifiable parameters. Management exercised significant judgement in estimating the inputs used to determine the value in use of its equipment and construction prepayments, property, plant and equipment, right-of-use assets and intangible assets. When there is any indication that any tangible and intangible assets other than goodwill have incurred an impairment loss, the determination of the recoverable amount of such tangible and intangible assets other than goodwill requires management to estimate cash flows expected to arise from these assets and a suitable discount rate in order to calculate the present value in a manner described above for goodwill. Long-term debt The Company entered into a secured debt financing facility with Dominion Capital LLC consisting of four equal loan tranches in 2020. Upon the drawdown of each loan tranche, management exercised significant judgement in determining the effective interest rates and the fair market value of the warrants issued in connection with each tranche. Management also exercised significant judgement in determining the fair market value of the embedded derivative, which was derecognized in 2021. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Business Combination [Abstract] | |
BUSINESS COMBINATION | NOTE 5: BUSINESS COMBINATION On November 9, 2021, the Company acquired a cryptocurrency mining facility in Washington State through its wholly-owned subsidiary, Backbone Mining, comprising land, buildings, 17 megawatts of electrical infrastructure, power purchase agreements totaling 12 megawatts and in-process power purchase agreement applications totaling 12 megawatts with a local hydro-electric utility producer. The consideration transferred was $26,676, including $23,000 of cash consideration and 415,000 common shares with a value of $3,676 on the closing date. The seller entered into a two-year consulting agreement with the Company in the amount of $2,000 for services relating to the operation of the facility. The Company also entered into a one-year lease agreement with the seller for a 5 megawatt cryptocurrency mining facility with monthly payments of $110. The primary reason for the acquisition was to expand the Company’s energy portfolio with existing infrastructure and to accommodate the Company’s expected delivery schedule of mining equipment. The following are the fair values of the identifiable assets as of the date of the acquisition: November 9, 2021 Consideration transferred Cash paid at closing 23,000 Value of 415,000 common shares transferred at closing 3,676 Fair value of total consideration transferred 26,676 Recognized amounts of identifiable assets acquired Electrical components 5,954 Buildings 748 Land 74 Intangible assets - favorable lease 2,000 Total identifiable assets acquired 8,776 Goodwill 17,900 Goodwill consists mainly of the benefit the Company expects to receive from acquiring a turnkey facility with active power purchase agreements compared to the timeline and process the Company would undertake to procure new power purchase agreements, the materials and equipment required to build a facility and complete the construction process in order to increase the Company’s share of the BTC network hashrate. The entire amount of goodwill is deductible for tax purposes. In May 2022, the valuation was finalized, resulting in measurement period adjustments. The acquisition date fair value of the electrical components was $5,954, a decrease of $1,127 compared to the provisional value. In addition, the fair value at the acquisition date of buildings decreased by $7, land decreased by $11 and intangible assets (favorable lease) increased by $200. The cumulative impact of these measurement period adjustments was recognized in the consolidated financial statements during the first quarter of 2022. The impact on the prior period was considered insignificant. As a result, there was a corresponding increase in goodwill of $945, resulting in $17,900 of total goodwill arising from the acquisition which is reflected in the table above. The Company generated $7,690 of revenues mainly from using the S19j pros installed at the Washington State facility, from November 9, 2021 to December 31, 2021. Prior to the acquisition, the Company incurred hosting fees of $3,907 during the year ended December 31, 2021. During the second quarter of 2022, the goodwill was subject to an impairment. Refer to Note 11a. |
Cash
Cash | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Cash And Cash Equivalents [Abstract] | |
CASH | NOTE 6: CASH As of December 31, As of December 31, 2022 2021 Cash in USD 24,596 120,846 Cash in USD held in trust — 322 Cash in CAD 4,916 3,475 Cash in CAD held in trust 78 — Cash in ARS 1,297 952 30,887 125,595 |
Trade Receivables
Trade Receivables | 12 Months Ended |
Dec. 31, 2022 | |
Trade Receivables [Abstract] | |
TRADE RECEIVABLES | NOTE 7: TRADE RECEIVABLES A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Most trade receivables are derived from the sale of electrical components and services to external customers by the Company’s wholly owned subsidiary, Volta. Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days. Information about the credit risk exposure of the Company’s trade receivables as of December 31, 2022 and December 31, 2021 is detailed in the trade receivables aging as follows: As of December 31, As of December 31, 2022 2021 1 - 30 days 501 441 31 - 60 days 99 382 61 - 90 days 53 73 > 91 days 85 260 Allowance for ECL (37 ) (118 ) 701 1,038 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
OTHER ASSETS | NOTE 8: OTHER ASSETS As of December 31, As of December 31, 2022 2021 Electrical component inventory 588 548 Sales taxes receivable* 3,816 1,980 Insurance refund and other receivables 108 697 4,512 3,225 * Refer to Note 28b for more details about the provision applied to the Argentine value-added tax (VAT) receivable included in sales taxes receivable. |
Digital Assets
Digital Assets | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Digital Assets [Abstract] | |
DIGITAL ASSETS | NOTE 9: DIGITAL ASSETS BTC transactions and the corresponding values for the years ended December 31, 2022 and December 31, 2021 were as follows: Year ended December 31, 2022 2021 Quantity Value Quantity Value Balance of digital assets including digital assets pledged as collateral as of January 1, 3,301 152,856 — — BTC mined* 5,167 138,985 3,453 164,393 BTC purchased 1,000 43,237 — — BTC exchanged for cash and services (9,063 ) (179,729 ) (105 ) (4,841 ) BTC exchanged for long-term debt repayment — — (47 ) (1,546 ) Realized loss on disposition of digital assets — (150,810 ) — (289 ) Change in unrealized gain (loss) on revaluation of digital assets — 2,166 — (4,861 ) Balance of digital assets as of December 31, 405 6,705 3,301 152,856 Less digital assets pledged as collateral as of December 31,** (125 ) (2,070 ) (1,875 ) (86,825 ) Balance of digital assets excluding digital assets pledged as collateral as of December 31, 280 4,635 1,426 66,031 * Management estimates the fair value of BTC mined on a daily basis as the quantity of cryptocurrency received multiplied by the price quoted on Coinmarketcap on the day it was received. Management considers the prices quoted on Coinmarketcap to be a level 2 input under IFRS 13, Fair Value Measurement ** Refer to Note 16 and 17 for details of the Company’s credit facility and long-term debt, respectively, and BTC pledged as collateral. |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Non Current Assets Or Disposal Groups Classified As Held For Sale [Abstract] | |
ASSETS HELD FOR SALE | NOTE 10: ASSETS HELD FOR SALE The following table summarizes the movement of assets held for sale: Antminer S9 Miners (a) Innosilicon T2T, Canaan Avalon A10, Antminer MicroBT Whatsminer M20S Miners (c) TOTAL Quantity Value Quantity Value Quantity Value Quantity Value Balance as of January 1, 2021 — — — — — — — — Additions 6,318 371 — — — — 6,318 371 Dispositions (258 ) (50 ) — — — — (258 ) (50 ) Impairment reversal — 890 — — — — — 890 Balance as of December 31, 2021 6,060 1,211 — — — — 6,060 1,211 Additions — — 2,051 325 4,071 1,778 6,122 2,103 Dispositions (3,982 ) (779 ) (207 ) (22 ) (1,559 ) (748 ) (5,748 ) (1,549 ) Impairment (2,078 ) (432 ) (572 ) (113 ) — — (2,650 ) (545 ) Balance as of December 31, 2022 — — 1,272 190 2,512 1,030 3,784 1,220 a. Antminer S9 Miners During the year ended December 31, 2021, the Company ceased using its Antminer S9 Miners and planned to dispose of them within the next 12 months. During the year ended December 31, 2021, 258 Antminer S9 Miners with a carrying amount of $50 were disposed for net proceeds of $75 resulting in a gain of $25. During the year ended December 31, 2022, 3,982 Antminer S9 Miners with a carrying amount of $779 were disposed for net proceeds of $101 resulting in a loss of $678. The remaining Antminer S9 Miners were not sold within 12 months since being classified as held for sale in 2021 due to the decline of the BTC price during the year ended December 31, 2022. As a result, these Miners were written off and an impairment loss of $432 was recognized. Refer to Note 11. b. Innosilicon T2T, Canaan Avalon A10, Antminer T15 and Antminer S15 Miners During the year ended December 31, 2022, the Company ceased using Innosilicon T2T Miners, Canaan Avalon A10 Miners, Antminer T15 Miners and Antminer S15 Miners with plans to dispose of them within the next 12 months. During the year ended December 31, 2022, 207 Antminer T15 Miners with a carrying amount of $22 were disposed for net proceeds of $31 resulting in a gain of $9. In addition, due to the decline of the BTC price during the year ended December 31, 2022, the remaining Canaan Avalon A10 Miners, Antminer T15 Miners and Antminer S15 Miners were written off and an impairment loss of $113 was recognized. Refer to Note 11. c. MicroBT Whatsminer M20S Miners During the year ended December 31, 2022, the Company ceased using its MicroBT Whatsminer M20S Miners and plans to dispose of them within the next 12 months. The Company sold 1,559 MicroBT Whatsminer M20S Miners with a carrying amount of $748 and disposed of them for net proceeds of $896 resulting in a gain of $148. Management determined that the remaining MicroBT Whatsminer M20S Miners continue to meet the criteria to be classified as held for sale as of December 31, 2022. |
Impairment
Impairment | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Impairment Loss and Reversal of Impairment Loss [Abstract] | |
IMPAIRMENT | NOTE 11: IMPAIRMENT The following tables summarize the impairment loss (reversal) in the consolidated statements of profit or loss and comprehensive profit or loss: Year ended December 31, 2022 2021 Impairment on equipment and construction prepayments, property, plant and equipment and right-of-use assets 75,213 1,800 Impairment on goodwill 17,900 — Impairment reversal on property, plant and equipment — (1,860 ) 93,113 (60 ) Year ended December 31, 2022 Equipment Assets held for ROU assets Property, plant and equipment Goodwill Total Washington State cryptocurrency mining CGU (“Washington CGU”) a, c — — 306 6,208 17,900 24,414 Argentina cryptocurrency mining CGU (“Argentina CGU”) b, c 50,326 — 1,728 32,027 — 84,081 Quebec cryptocurrency mining CGU (“Quebec CGU”) c (11,641 ) — — — — (11,641 ) Paraguay cryptocurrency mining CGU (“Paraguay CGU”) c (8,486 ) — — — — (8,486 ) Miners held for sale e — 545 — — — 545 Suni mineral asset f — — — 4,200 — 4,200 30,199 545 2,034 42,435 17,900 93,113 Year ended December 31, 2021 Quebec CGU d — — — (970 ) — (970 ) Miners held for sale e — (890 ) — — — (890 ) Suni mineral asset f — — — 1,800 — 1,800 — (890 ) — 830 — (60 ) a. Washington CGU’s impairment during the second quarter of 2022 i. Background As a result of the decline in the BTC price during the second quarter of 2022, the Company performed an evaluation of the recoverable amount of the property, plant and equipment and intangible assets for the Washington State cryptocurrency mining facility CGU as of June 30, 2022. As these groups of assets do not generate cash inflows that are independent of each other, the recoverable amount was calculated for the CGU comprised of the assets of BVVE and electrical equipment, long-term electricity deposits, land, building and favorable lease used in the cryptocurrency mining facility in Washington State. ii. Impairment loss The recoverable amount was calculated using the value in use model, which calculated the present value of the future cash flows expected to be derived from the Washington CGU, which was determined to be lower than its carrying amount. Based on its calculation, the Company recorded an impairment loss on its Washington CGU resulting in an impairment charge to goodwill of $17,900 during the second quarter. b. Argentina CGU’s impairment during the third quarter of 2022 i. Background During the third quarter of 2022, as a result of the decline in the BTC price, the Company performed an evaluation of the recoverable amount of the assets for operating the cryptocurrency mining facilities in Quebec, Washington State and Argentina separately. As the group of assets for each CGU do not generate cash inflows that are independent of each other, the recoverable amount was calculated for each CGU comprised of the property, plant and equipment, ROU assets, long-term electricity deposits, long-term construction and equipment prepayments and favorable lease used in the operating cryptocurrency mining facilities in Quebec, Washington State and Argentina. ii. Impairment loss The recoverable amount was calculated using the value in use model, which calculated the present value of the future cash flows expected to be derived from the Argentina CGU, which was determined to be lower than its carrying amount. Based on its calculation, the Company determined that an impairment loss should only be recorded on its operating Argentina CGU in the amount of $79,484 during the third quarter of 2022, of which $48,865 was allocated to equipment and construction prepayments, $1,648 to ROU assets and $28,971 to property, plant and equipment. The impairment loss was recognized in profit or loss under Impairment on equipment and construction prepayments, property, plant and equipment and right-of-use assets. c. Washington CGU and Argentina CGU’s impairment and Quebec CGU and Paraguay CGU’s impairment reversal during the fourth quarter of 2022 i. Background During the fourth quarter of 2022, as a result of the decline in the BTC price, the Company performed an evaluation of the recoverable amount of the assets for operating the cryptocurrency mining facilities in Quebec, Washington State, Argentina and Paraguay separately. As the group of assets for each CGU do not generate cash inflows that are independent of each other, the recoverable amount was calculated for each CGU comprised of the property, plant and equipment, ROU assets, long-term electricity deposits, long-term construction and equipment prepayments and favorable lease used in the operating cryptocurrency mining facilities in Quebec, Washington State, Argentina and Paraguay. ii. Impairment loss The recoverable amount was calculated using the value in use model, which calculated the present value of the future cash flows expected to be derived from the Washington CGU and Argentina CGU, which were determined to be lower than their carrying amount. Based on its calculation, the Company determined that an impairment loss should be recorded on its Washington CGU and Argentina CGU in the amount of $6,514 and $4,597, respectively, during the fourth quarter of 2022, of which nil iii. Reversal of impairment loss The renegotiation of the 48,000 unit purchase agreements, as described in Note 14b, allowed the deployment of Miners intended for the Argentina CGU to be reassigned to the Quebec CGU and Paraguay CGU. As a result, a portion of the equipment prepayments in the Argentina CGU that were impaired during the third quarter of 2022 was allocated to the Quebec CGU and Paraguay CGU. The deposits were transferred to the Quebec CGU and Paraguay CGU at the impaired amount. After performing the evaluation of the recoverable amount of the assets for these CGUs, the impairment losses previously recognized on these deposits were reversed into the Quebec CGU and Paraguay CGU by $11,641 and $8,486, respectively. The impairment reversals were recognized in profit or loss under Impairment on equipment and construction prepayments, property, plant and equipment and right-of-use assets. iv. Sensitivity analysis Changes in the following assumptions would result in further impairment on the Washington CGU as follows: Increase in impairment loss A decrease of 1% in revenues 476 An increase of 1% in the discount rate 460 An increase of 1% in energy prices 145 Changes in the following assumptions would result in further impairment on the Argentina CGU as follows: Increase in impairment loss A decrease of 1% in revenues 711 An increase of 1% in the discount rate 630 An increase of 1% in energy prices 211 For the Quebec CGU, a 1% decrease in revenues, a 1% increase in the discount rate or a 2% increase in energy prices would result in the recoverable amount being equal to the carrying amount. Additional changes in the following assumptions would result in impairment on the Quebec CGU as follows: Increase in impairment loss Additional decrease of 1% in revenues 2,861 Additional increase of 1% in the discount rate 2,432 Additional increase of 1% in energy prices 1,184 For the Paraguay CGU, management conducted a sensitivity analysis and determined that a reasonably possible change in any of the key assumptions would not result in an impairment loss. d. Quebec CGU’s reversal of impairment during the third quarter of 2021 i. Background In 2018, the Company recorded an impairment loss on its cryptocurrency mining CGU which resulted in $16,454 of impairment being allocated to BVVE and electrical components and leasehold improvements due to a significant decline in the BTC market price. As of September 30, 2021, the Company assessed whether there was an indication that the impairment loss recognized in 2018 may no longer exist or may have decreased, and concluded that there were observable indications that the CGU’s value had increased during the period. ii. Reversal of impairment loss The Company’s management estimated the recoverable amount of the CGU, using a value in use calculation based on the present value of the expected cash flows over the estimated remaining useful life of the previously impaired CGU assets of approximately 1.5 years. Based on management’s calculations, an impairment reversal of $970 relating to the CGU was recognized during the period. The increased carrying amount of the CGU assets reflects the carrying amount of the CGU assets that would have been determined, net of depreciation, had no impairment loss been recognized in 2018. Mining assets outside of Quebec and Antminer S9 Miners were not included in the CGU for the purposes of the impairment reversal calculation. The key assumptions used in the value in use calculation were as follows: Reversal of Impairment (a) Impairment (b) Impairment and Third quarter of 2021 Second quarter of 2022 Third quarter of 2022 Fourth quarter of 2022 Revenues* Two optimistic and two pessimistic scenarios and one status quo scenario, each with an estimated future BTC price and network difficulty, were used to project revenues and associated cash flows from cryptocurrency mining. Management assigned probabilities to each scenario to calculate weighted average expected outcomes. The weighted average daily revenue per Terahash used in the value in use calculation was $0.22/Terahash The weighted average daily revenue per Terahash used in the value in use calculation was $0.12/Terahash The weighted average daily revenue per Terahash used in the value in use calculation was $0.12/Terahash The weighted average daily revenue per Terahash used in the value in use calculation was $0.11/Terahash Discount The discount rate reflects management’s assumptions regarding the unit’s specific risk. The pre-tax discount rate used was estimated with some of the risk already being implicitly reflected through management’s allocation of probabilities to the various scenarios included in the revenue calculation. The discount pre-tax rate used was estimated at 18.3% The value in use of the CGU was determined based on the present value of the expected cash flows over a four-year period discounted at an annual pre-tax rate of 24.75% in varying scenarios The value in use of the Quebec, Washington State and Argentina CGUs were determined based on the present value of the expected cash flows over five-year, four-year and five-year periods, respectively, discounted at annual pre-tax rates of 29.00%, 29.75% and 38.25%, respectively, in varying scenarios The value in use of the Quebec, Washington State, Paraguay and Argentina CGUs were determined based on the present value of the expected cash flows over five-year, four-year, five-year and five-year periods, respectively, discounted at annual pre-tax rates of 25.25%, 26.00%, 30.75% and 34.75%, respectively, in varying scenarios Energy Management estimated that energy prices for the duration of the forecasted years will be approximately: $0.04 per kilowatt hour for the Quebec CGU $0.027 per kilowatt hour for the Washington State CGU $0.046, $0.027 and $0.030 per kilowatt hour for the Quebec, Washington State and Argentina CGUs, respectively $0.048, $0.044, $0.038 and $0.039 per kilowatt hour for the Quebec, Washington State, Paraguay and Argentina CGUs, respectively Terminal Management estimated the terminal value of the Miners included in the CGU for the purposes of the impairment testing to be the daily revenue per Terahash in effect at the end of the value in use calculation multiplied by the ending hashrate for a period of: Approximately 6 months Approximately 6 months Not applicable Not applicable * Changes in BTC price and BTC network difficulty that can lead to changes in expected revenues were considered in the various scenarios listed above. a. Assets held for sale Antminer S9 Miners were classified as assets held for sale since 2021. Refer to Note 10. During the year ended December 31, 2021, management has determined that the carrying amount of the Antminer S9, including the impairment recognized in 2018, was less than the estimated fair value less costs to sell. As a result, the Company recognized an impairment reversal of $890 relating to the impaired Antminer S9 Miners held for sale, reflecting the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized in 2018. During the year ended December 31, 2022, due to the decline of the BTC price, unsold Antminer S9 Miners were written off and an impairment loss of $432 was recognized in profit or loss under Impairment on equipment and construction prepayments, property, plant and equipment and right-of-use assets. During the year ended December 31, 2022, due to the decline of the BTC price, unsold Canaan Avalon A10 Miners, Antminer T15 Miners and Antminer S15 Miners were written off and an impairment loss of $113 was recognized in profit or loss under Impairment on equipment and construction prepayments, property, plant and equipment and right-of-use assets. b. Suni mineral asset In connection with the reverse acquisition of Bitfarms Ltd (Israel), the Company engaged an independent appraiser to determine the fair value as of the acquisition date, April 12, 2018, of Suni, an iron ore deposit located in Canada held by the acquiree. The appraiser’s valuation report was based on the market comparison method and the analysis of similar assets. Following certain adjustments resulting from changes in the price of iron ore, among other variables, Suni’s value at April 12, 2018 was estimated at $9,000. The independent appraiser was engaged also to determine Suni’s fair value as of December 31, 2021 and 2020. Using the same valuation techniques, the appraiser determined that the value of Suni was $7,700 on December 31, 2021, or $7,200 after reflecting estimated costs to sell, compared to $9,000 on December 31, 2020, which resulted in an impairment of $1,800 to Suni’s value. An independent appraiser was engaged to determine Suni’s fair value as of September 30, 2022 due to the decline in the iron ore price during the third quarter of 2022. Using the same method as the previous independent appraiser, the new appraiser determined that the fair value of Suni was $3,250, or $3,000 after reflecting estimated costs to sell, compared to $7,200 on December 31, 2021, which resulted in an impairment of $4,200 during the third quarter of 2022 to Suni’s mineral asset book value. There were no further impairment indicators as of December 31, 2022. The impairment losses were recognized in profit or loss under Impairment on equipment and construction prepayments, property, plant and equipment and ROU assets. The fair value measurement is categorized as level 2 in the fair value hierarchy. The Suni mineral asset was inactive during the reporting periods and as of the date of approval of the consolidated financial statements. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 12: PROPERTY, PLANT AND EQUIPMENT As of December 31, 2022 and December 31, 2021, property, plant and equipment (“PPE”) consisted of the following: Notes BVVE and electrical components Mineral assets Land and buildings Leasehold improvements Vehicles Total Cost Balance as of January 1, 2022 156,647 9,000 4,549 5,783 547 176,526 Measurement period adjustment to business combination 5 (1,127 ) — (18 ) — — (1,145 ) Additions 164,437 — 3,239 39,495 552 207,723 Dispositions (3,609 ) — (3,378 ) — (17 ) (7,004 ) Transfer to assets held for sale 10 (8,143 ) — — — — (8,143 ) Balance as of December 31, 2022 308,205 9,000 4,392 45,278 1,082 367,957 Accumulated Depreciation Balance as of January 1, 2022 35,766 1,800 286 1,560 264 39,676 Depreciation 66,319 — 193 1,703 124 68,339 Dispositions (2,562 ) — (366 ) — (13 ) (2,941 ) Transfer to assets held for sale 10 (6,040 ) — — — — (6,040 ) Impairment 11 24,820 4,200 157 13,107 151 42,435 Impairment on deposits transferred to PPE 1,794 — — 5,266 — 7,060 Balance as of December 31, 2022 120,097 6,000 270 21,636 526 148,529 Net book value as of December 31, 2022 188,108 3,000 4,122 23,642 556 219,428 Notes BVVE and electrical components Mineral assets Land and buildings Leasehold improvements Vehicles Total Cost Balance as of January 1, 2021 52,676 9,000 3,263 2,707 448 68,094 Additions through business combination 5 7,081 — 840 — — 7,921 Additions 114,323 — 470 3,265 136 118,194 Dispositions (6,146 ) — (24 ) (189 ) (37 ) (6,396 ) Transfer to assets held for sale 10 (11,287 ) — — — — (11,287 ) Balance as of December 31, 2021 156,647 9,000 4,549 5,783 547 176,526 Accumulated Depreciation Balance as of January 1, 2021 30,042 — 185 1,861 213 32,301 Depreciation 22,233 — 104 396 79 22,812 Dispositions (5,172 ) — (3 ) (148 ) (28 ) (5,351 ) Transfer to assets held for sale 10 (10,916 ) — — — — (10,916 ) Impairment 11 — 1,800 — — — 1,800 Impairment reversal 11 (421 ) — — (549 ) — (970 ) Balance as of December 31, 2021 35,766 1,800 286 1,560 264 39,676 Net book value as of December 31, 2021 120,881 7,200 4,263 4,223 283 136,850 BVVE Further details of the quantity and models of BTC BVVE held by the Company are as follows : Notes MicroBT Whatsminer* Bitmain S19j Pro Innosilicon T3 & T2T** Canaan Avalon A10 Bitmain S19XP Other Bitmain Antminers*** Total Quantity as of January 1, 2022 18,675 7,172 6,446 1,024 — 8,073 41,390 Additions 28,499 — — — 801 — 29,300 Dispositions (1,799 ) — (735 ) (1,024 ) (801 ) (8,073 ) (12,432 ) Quantity as of December 31, 2022 45,375 7,172 5,711 — — — 58,258 Classified as assets held for sale 10 (2,512 ) — (1,272 ) — — — (3,784 ) Presented as ROU asset**** 18 (3,000 ) — — — — — (3,000 ) Presented as property, plant and equipment 39,863 7,172 4,439 — — — 51,474 * Includes 2,512 M20S classified as assets held for sale as described in Note 10, 30,210 M30S and 12,653 M31S Miners. ** Includes 4,439 T3 and 1,272 T2T Miners classified as assets held for sale as described in Note 10. *** Included Antminer T15 and Antminer S15 Miners classified as assets held for sale and written off as described in Note 10. **** Includes 3,000 Whatsminer M31S+ with a net book value of approximately $3,330 as described in Note 18. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | NOTE 13: INTANGIBLE ASSETS Notes Systems software Favorable lease Total Cost Balance as of January 1, 2022 5,150 1,800 6,950 Measurement period adjustment to business combination 5 — 200 200 Balance as of December 31, 2022 5,150 2,000 7,150 Accumulated amortization Balance as of January 1, 2022 5,008 261 5,269 Amortization 109 1,739 1,848 Balance as of December 31, 2022 5,117 2,000 7,117 Net book value as of December 31, 2022 33 — 33 Notes Systems software Favorable lease Total Cost Balance as of January 1, 2021 5,150 — 5,150 Additions through business combination 5 — 1,800 1,800 Balance as of December 31, 2021 5,150 1,800 6,950 Accumulated amortization Balance as of January 1, 2021 4,773 — 4,773 Amortization 235 261 496 Balance as of December 31, 2021 5,008 261 5,269 Net book value as of December 31, 2021 142 1,539 1,681 |
Long-Term Deposits, Equipment P
Long-Term Deposits, Equipment Prepayments, Other and Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Long-Term Deposits, Equipment Prepayments, Other and Commitments [Abstract] | |
LONG-TERM DEPOSITS, EQUIPMENT PREPAYMENTS, OTHER AND COMMITMENTS | NOTE 14: LONG-TERM DEPOSITS, EQUIPMENT PREPAYMENTS, OTHER AND COMMITMENTS As of December 31, As of December 31, 2022 2021 VAT receivable a 2,083 2,067 Security deposits for energy, insurance and rent 3,872 1,555 Equipment and construction prepayments b 32,230 83,059 38,185 86,681 a. Refundable Argentine value-added tax (“VAT”) Refer to Note 28 for details about the discount expense applied to the Argentine VAT receivable. b. Equipment and construction prepayments As of December 31, 2022, the Company has deposits on BVVE and electrical components in the amount of $23,450, which includes the $22,376 credit for future purchase agreements as described below. In addition, the Company has deposits for construction work and materials in the amount of $8,780, mainly for the Argentina expansion. During the year ended December 31, 2022, the Company recognized an impairment loss of $30,199 on the equipment and construction prepayments. Refer to Note 11 for more details. A portion of the impairment was transferred to PPE along with the original amount of the deposits when the assets were received. Refer to Note 12 for more details. Commitments In December 2022, the Company renegotiated its 48,000 unit purchase agreements by extinguishing the outstanding commitments of $45,350 without penalty and establishing a $22,376 credit for deposits previously made which will be carried forward until the end of 2023 and applied against future purchase agreements. As of December 31, 2022, the Company no longer had commitments. |
Trade Payables and Accrued Liab
Trade Payables and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Trade Payables and Accrued Liabilities [abstract] | |
TRADE PAYABLES AND ACCRUED LIABILITIES | NOTE 15: TRADE PAYABLES AND ACCRUED LIABILITIES As of December 31, As of December 31, 2022 2021 Trade accounts payable and accrued liabilities 12,897 9,873 Government remittances 7,644 4,607 20,541 14,480 |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2022 | |
Credit Facility [Abstract] | |
CREDIT FACILITY | NOTE 16: CREDIT FACILITY As of December 31, As of December 31, 2022 2021 Revolving credit facility — 60,000 Interest payable on revolving credit facility — 2 — 60,002 Original terms On December 30, 2021, the Company entered into a secured revolving credit facility up to $100,000 (the “Credit Facility” or the “Facility”) for a term of 6 months with Galaxy Digital LLC (the “Facility Lender”). The Credit Facility bore interest at a rate of 10.75% per annum with a commitment fee of 0.75% per annum charged on the unused portion of the $100,000 Facility. The Facility was secured by BTC, with the value of BTC pledged as collateral calculated as a percentage of the amount borrowed. As of December 31, 2021, the Company had drawn $60,000 of the Facility and pledged 1,875 BTC as collateral with a fair market value of $86,825. During the first quarter of 2022, the Company drew an additional $40,000 on the Credit Facility, bringing the total amount drawn to $100,000 as of March 31, 2022. Amendments On June 30, 2022, the Company amended its Credit Facility and extended its maturity date to October 1, 2022. Under the new terms, the maximum limit of the amended Facility is $40,000, bears interest at 11.25% per annum and has a commitment fee of 0.25% per annum charged on the unused portion of the Facility. The amended Facility also includes a provision which allows the Company to repay up to $15,000 of the Facility prior to July 30, 2022, without incurring any prepayment penalty. On September 29, 2022, the Company amended its Credit Facility and extended its maturity date from October 1, 2022 to December 29, 2022. Under the new terms, the maximum limit of the amended Facility is $40,000, bears interest at 11.25% per annum and has a commitment fee of 0.25% per annum charged on the unused portion of the Facility. The amended Facility also includes a provision which allows the Company to prepay the Credit Facility with a prepayment fee of 50% of the remaining interest that would be owed if the Facility was held to maturity. In the event that the Company seeks to transfer or convert the Credit Facility prior to the scheduled maturity date in order to enter into a new transaction with the Facility Lender or its affiliates, the early termination fee shall be waived for the Company for any portion of the Facility subject to such transfer or conversion. Full repayment of the Credit Facility During the year ended December 31, 2022, the Company fully repaid the Credit Facility for an amount of $100,000. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Long-Term Debt [Abstract] | |
LONG-TERM DEBT | NOTE 17: LONG-TERM DEBT As of December 31, As of December 31, 2022 2021 Equipment financing 47,020 11,039 Volta note payable 127 128 Total long-term debt 47,147 11,167 Less current portion of long-term debt (43,054 ) (10,257 ) Non-current portion of long-term debt 4,093 910 Movement in long-term debt for the years ending December 31, 2022 and 2021 is as follows: As of December 31, As of December 31, 2022 2021 Balance as of January 1, 11,167 17,345 Conversion of lease liabilities — 3,904 Issuance of long-term debt 67,201 14,227 Payments (38,532 ) (22,382 ) Interest on long-term debt 7,311 1,883 Conversion of long-term debt and loan modification — (5,000 ) Derecognition of embedded derivative — 1,190 Balance as of December 31, 47,147 11,167 a. 2022 equipment financing BlockFi Loan In February 2022, the Company entered into an equipment financing agreement for gross proceeds of $32,000 collateralized by “ ” During December 2022, the Company ceased making installment payments, which constituted a default under the loan agreement and the loan was classified as current. On February 8, 2023, BlockFi and the Company negotiated a settlement of the loan in its entirety for cash consideration of $7,750, discharging Backbone Mining of all further obligations and resulting in a gain on extinguishment of long-term debt of $12,578. Refer to Note 2 for more details. NYDIG Loan In June 2022, the Company entered into an equipment financing agreement for gross proceeds of $36,860 collateralized by 10 b. 2021 equipment financing Foundry Loans In April and May 2021, the Company entered into four loan agreements for the acquisition of 2,465 Whatsminer Miners referred to as “Foundry Loans #1, #2, #3 and #4”. As of December 31, 2022, the Foundry Loan #1 matured and was fully repaid. Subsequently, in January 2023, the principal amount of the remaining Foundry Loans #2, #3 and #4 were fully repaid before their maturity date without prepayment penalty. Blockfills Loans In June 2021, the Company modified the terms of three lease agreements with its lender, Blockfills, for 4,000 Whatsminer Miners to convert them to loan agreements. The key terms, such as interest rates, term and payment schedules remain unchanged. A total of $3,904 was reclassified from lease liabilities to long-term debt as a result of the modification. The ROU assets related to the three leases were classified in property, plant and equipment and as a result no reclassification was made. As of December 31, 2022, all of the Blockfills loans matured and were fully repaid. c. Summary of equipment financing Details of the equipment financing and the balance of the loans and the net book value (“NBV”) of their related collateral, as of December 31, 2022, are as follows: Maturity date Stated rate Effective rate* Monthly repayment ($) Long-term debt balance ($) NBV of Collateral ($) Collateral** Foundry Loan #2 March 2023 16.5 % 16.5 % 94 185 1,254 300 Foundry Loan #3 April 2023 16.5 % 16.5 % 88 257 1,044 300 Foundry Loan #4 May 2023 16.5 % 16.5 % 100 387 1,231 400 Blockfi Loan February 2024 14.5 % 18.1 % 1,455 19,952 28,360 6,100 NYDIG Loan February 2024 12.0 % 14.4 % 2,043 26,239 34,852 10,395 Total 3,780 47,020 66,741 17,495 * Represents the implied interest rate after capitalizing financing and origination fees. ** Represents the quantity of Whatsminers and Bitmain S19j Pros received in connection with the equipment financing and pledged as collateral for the related loan. d. Dominion Capital Loan The Company repaid its remaining debt obligation with Dominion Capital LLC (“Dominion Capital”) in its entirety in February 2021. As a result of the early repayment, the Company incurred losses in 2021 as described below. i. Background On March 15, 2019, the Company entered into a secured debt financing facility for up to $20,000 with Dominion Capital. The debt facility was structured into four separate loan tranches of $5,000 per tranche. Each loan tranche bore interest at 10% per annum and the term of each loan tranche was 24 months with a balloon payment for any remaining outstanding balance at the end of the term. The loan features resulted in a loan liability measured at amortized cost, a warrant component recorded as equity, a warrant component recorded as a liability measured at fair value through profit or loss, and an embedded derivative measured at fair value through profit or loss. In September 2020, the Company entered into an agreement with Dominion Capital to amend the maturity date of tranche #2 from April 2021 to November 2021. In addition, a conversion feature was added to tranche #3, maturing in June 2021, providing Dominion Capital with the option to convert all or a portion of the loan tranche into shares. ii. Exercise of warrants In January 2021, Dominion Capital exercised their option to convert $5,000 of debt into 8,475,000 Common Shares. In January and February 2021, Dominion Capital exercised all of their remaining outstanding warrants resulting in the issuance of 5,251,000 common shares for proceeds of approximately $1,500. The warrant exercises described above include the cashless exercise of 1,667,000 warrants resulting in the issuance of 1,501,000 common shares. The Dominion Capital loan was fully repaid by the Company in February 2021. iii. Accounting impact for the year ended December 31, 2021 Included in financial expenses for the year ended December 31, 2021 is $472 of interest expense related to the loan. In addition to the loan modifications described above, a ca shless exercise feature was authorized for the warrants issued in connection with tranche #2 and tranche #3 which resulted in these warrants being reclassified from equity to a warrant liability measured at fair value through profit or loss. The derecognition of warrants containing the authorized cashless exercise feature resulted in a non-cash loss on revaluation of warrants of The early repayment of the loan resulted in the company recording a loss on embedded derivative for the year ended December 31, 2021 of $2,641 included in net financial expenses. Refer to Note 28. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | NOTE 18: LEASES Set out below are the carrying amounts of the Company’s ROU assets and lease liabilities and their activity during the years ended December 31, 2022 and 2021: Leased premises Vehicles Other equipment Total ROU assets Lease liabilities As of January 1, 2022 9,038 283 76 9,397 13,573 Additions and extensions to ROU assets 9,526 118 1,693 11,337 11,354 Depreciation (1,975 ) (129 ) (121 ) (2,225 ) — Lease termination (104 ) (7 ) — (111 ) (112 ) Impairment (791 ) — (1,243 ) (2,034 ) — Payments — — — — (7,528 ) Interest — — — — 1,451 Foreign exchange — — — — (874 ) As of December 31, 2022 15,694 265 405 16,364 17,864 Less current portion of lease liabilities (3,649 ) Non-current portion of lease liabilities 14,215 Leased premises Vehicles Other equipment Total ROU assets Lease liabilities As of January 1, 2021 5,129 180 84 5,393 11,023 Additions and extensions to ROU assets 5,713 205 21 5,939 5,911 Additions to property, plant and equipment — — — — 7,786 Depreciation (1,040 ) (99 ) (29 ) (1,168 ) — Lease termination (764 ) (3 ) — (767 ) (892 ) Lease liabilities converted to long-term debt — — — — (3,904 ) Payments — — — — (5,746 ) Issuance of warrants — — — — (2,160 ) Interest — — — — 1,513 Foreign exchange — — — — 42 As of December 31, 2021 9,038 283 76 9,397 13,573 Less current portion of lease liabilities (4,346 ) Non-current portion of lease liabilities 9,227 a. 2022 lease activity The Company maintains one lease agreement for mining hardware, consisting of 3,000 Whatsminer M31S+ Miners, with a net book value of approximately $3,330, classified as property, plant and equipment under BVVE and electrical equipment as described in Note 12. During the year ended December 31, 2022, the Company recognized an impairment loss of $2,034 on the Company’s ROU assets. Refer to Note 11 for more details. b. 2021 lease activity During the year ended December 31, 2021, the Company modified the terms of three two-year lease agreements for mining hardware, with a balance of $3,904 at the time of conversion, in June 2021, resulting in the lease liabilities being reclassified to long-term debt as described in Note 17b. No changes were made to the payment terms, interest rate or security interest of the former leases. As of December 31, 2021, the Company maintained one lease agreement for mining hardware, consisting of 3,000 Whatsminer M31S+, with a net book value of approximately $5,422, classified as property, plant and equipment under BVVE and electrical equipment. During the year ended December 31, 2021, the Company issued 468,000 warrants to the former lessor for a total cost of $2,160. The cost of these warrants was added to the cost of the leased assets which were recorded as an addition to property, plant and equipment and will be amortized over the useful life of the corresponding assets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Income Taxes [Abstract] | |
INCOME TAXES | NOTE 19:INCOME TAXES Current and deferred income tax expense (recovery) Year ended December 31, 2022 2021 Current tax (recovery) expense: Current year (9,030 ) 12,358 Prior year 68 (693 ) (8,962 ) 11,665 Deferred tax (recovery) expense: Current year (8,446 ) 8,665 Prior year (4 ) 177 (8,450 ) 8,842 (17,412 ) 20,507 The 2022 current tax recovery represents the expected tax refund as a result of losses realized in the current period that will be carried back to offset prior period taxable income. Effective tax rate Year ended December 31, 2022 2021 Income tax recovery at statutory rate of 26.5% (67,962 ) 26.5 % 11,299 26.5 % Increase (decrease) in taxes resulting from: Foreign tax rate differential 1,070 (0.4 )% 383 0.9 % Prior year 64 — % (516 ) (1.2 )% Non-deductible expenses and other (92 ) — % 12,996 30.5 % Deferred tax asset not recognized 49,508 (19.3 )% (3,655 ) (8.6 )% (17,412 ) 6.8 % 20,507 48.1 % Deferred tax assets and liabilities Deferred taxes are computed at a tax rate of 26.5% based on tax rates expected to apply at the time of realization. Deferred taxes relate primarily to the timing differences on recognition of expenses relating to the depreciation of fixed assets, loss carryforwards and professional fees relating to the Company’s equity activity that are recorded as a reduction of equity. Movement in deferred tax asset for the years ending December 31, 2022 and 2021, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows: Operating losses carried forward Lease liability Asset Retirement provision Financing fees PPE Reserves and other Total As of January 1, 2021 663 2,905 55 214 — — 3,837 Credited (charged) to statements of profit or loss (4,318 ) 236 29 (750 ) 478 1,288 (3,037 ) Credited to statements of equity — — — 4,287 — — 4,287 Deferred tax asset recognized in the statements of profit or loss 3,655 — — — — — 3,655 As of December 31, 2021 — 3,141 84 3,751 478 1,288 8,742 Credited to statements of profit or loss 43,713 1,020 42 144 15,855 11,335 72,109 Deferred tax asset derecognized in the statements of profit or loss (43,713 ) — — — (5,795 ) — (49,508 ) Deferred tax asset derecognized in the statements of equity — — — (3,895 ) — — (3,895 ) As of December 31, 2022 — 4,161 126 — 10,538 12,623 27,448 Movement in deferred tax liability for the years ending December 31, 2022 and 2021, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows: PPE ROU Asset Total As of January 1, 2021 902 2,935 3,837 Charged to statements of profit or loss 8,385 1,075 9,460 As of December 31, 2021 9,287 4,010 13,297 Charged to statements of profit or loss 12,231 1,920 14,151 As of December 31, 2022 21,518 5,930 27,448 Unrecognized deferred tax assets and liabilities As of December 31, 2022, the recoverability of the net deferred tax asset, due to the impact of the decrease in BTC prices as described in Note 2, was uncertain and as a result, the net deferred tax asset of $49,508 was not recognized. The Company will evaluate the likelihood of recoverability at each balance sheet date, and will recognize net deferred tax asset when and if appropriate. |
Asset Retirement Provision
Asset Retirement Provision | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Provision [Abstract] | |
ASSET RETIREMENT PROVISION | NOTE 20:ASSET RETIREMENT PROVISION As of December 31, As of December 31, 2022 2021 Balance as of January 1, 239 209 Additions during the period 1,701 91 Accretion expense 93 19 Effect of change in the foreign exchange rate (54 ) — Balance as of December 31, 1,979 319 Less current portion of asset retirement provision included in accounts payable and accrued liabilities — (80 ) Non-current portion of asset retirement provision 1,979 239 As of December 31, 2022, the Company estimated the costs of restoring its leased premises to their original state at the end of their respective lease terms to be $3,950 (December 31, 2021: $391), discounted to present value of $1,979 (December 31, 2021: $239) using discount rates between 7% and 10% (December 31, 2021: 8%) over the lease periods, which were estimated to range from seven to ten years depending on the location. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Share Capital [Abstract] | |
SHARE CAPITAL | NOTE 21:SHARE CAPITAL Common shares The Company’s authorized share capital consists of an unlimited number of common shares and without par value. As of December 31, 2022, the Company had 224,200,000 issued and outstanding common shares (December 31, 2021: 194,806,000). Warrants Details of the outstanding warrants are as follows: Year ended December 31, 2022 2021 Number of warrants Weighted average exercise price (USD) Number of warrants Weighted average exercise price (USD) Outstanding, January 1, 19,428,000 4.16 6,053,000 0.41 Granted 25,000 3.47 40,332,000 3.37 Exercised — — (26,957,000 ) 2.13 Expired (300,000 ) 1.19 — — Outstanding, December 31, 19,153,000 4.21 19,428,000 4.16 The weighted average contractual life of the warrants as of December 31, 2022 was 1.4 years (December 31, 2021: 2.4 years). Significant transactions i. Garlock Acquisition During the three months ended March 31, 2022, the Company acquired a building in Quebec referred to as “Garlock” in exchange for cash consideration of $1,783 and the issuance of 25,000 warrants granted with a strike price of $3.47 that have a contractual life of 2 years. ii. At-The-Market Equity Offering Program Bitfarms iii. Employee Stock Options During the year ended December 31, 2022, employees, directors, consultants and former employees exercised stock options to acquire 70,000 common shares (December 31, 2021: 6,074,000) resulting in proceeds of approximately $21 (December 31, 2021: $6,177) being paid to the Company. Significant transactions iv. Dominion Capital loan In January 2021, Dominion Capital exercised their option to convert $5,000 of debt into 8,475,000 common shares. In January and February 2021, Dominion Capital exercised all of their remaining outstanding warrants resulting in the issuance of 5,251,000 common shares for proceeds of approximately $1,500. The warrant exercises described above include the cashless exercise of 1,667,000 warrants resulting in the issuance of 1,501,000 common shares. The Dominion Capital loan was fully repaid by the Company in February 2021. For more details on the loan, refer to Note 17d. v. 2021 private placements In January, February and May 2021, the Company completed four private placements for total gross proceeds of CAD$155,000 in exchange for 40,187,000 Common Shares and 36,649,000 warrants to purchase common shares. In February 2021, 8,889,000 warrants and 615,000 of the 711,000 broker warrants related to the private placement that closed on January 7, 2021, were exercised resulting in the issuance of 9,504,000 common shares for proceeds of approximately $20,611 (CAD$26,172). In March 2021, 5,028,000 warrants related to the private placement closed on January 14, 2021 were exercised resulting in the issuance of 5,028,000 common shares for proceeds of approximately $15,587. In addition, 800,000 of the 925,000 broker warrants issued in connection with the private placement on February 10, 2021 were exercised resulting in the issuance of 800,000 common shares for proceeds of $2,712. In August 2021, 5,405,000 warrants related to the private placement closed on February 7, 2021, were exercised resulting in the issuance of 5,405,000 common shares for proceeds of approximately $16,268. In total, 20,737,000 warrants relating to the private placements have been exercised resulting in the issuance of 20,737,000 common shares for proceeds of $55,178. vi. Former lessor During the year ended December 31, 2021, the Company modified the terms of three two-year lease agreements for mining hardware, resulting in the lease liabilities being reclassified to long-term debt. T he Company issued 468,000 warrants to the former lessor with an exercise price of $0.40 and expiring in M vii. Other issuances An additional 415,000 common shares were issued in connection with the business combination described in Note 5, and 2,000 other common shares were issued during the year ended December 31, 2021. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Financial Instruments [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 22: FINANCIAL INSTRUMENTS Measurement categories and fair value Financial assets and financial liabilities have been classified into categories that determine their basis of measurement. The following tables show the carrying values and the fair value of assets and liabilities for each of the applicable categories as of December 31, 2022 and 2021: As of December 31, As of December 31, 2022 2021 Financial assets at amortized cost Cash Level 1 30,887 125,595 Trade receivables Level 2 701 1,038 Insurance refund and other receivables Level 2 108 697 Total carrying amount and fair value 31,696 127,330 Financial liabilities at amortized cost Trade payables and accrued liabilities Level 2 20,541 14,480 Long-term debt Level 2 47,147 11,167 Credit Facility Level 2 — 60,002 Total carrying amount and fair value 67,688 85,649 Net carrying amount and fair value (35,992 ) 41,681 The carrying amounts of trade receivables, trade payables and accrued liabilities, credit facility and long-term debt presented in the table above are a reasonable approximation of their fair value. Risk management policy The Company is exposed to foreign currency risk, cre Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company’s functional currency is the US Dollar as all of its cryptocurrency mining revenues, most of its capital expenditures and most of its financing are primarily measured or transacted in US dollars. The Company is exposed to variability in the and to US dollar exchange rates when making expenditures payable in . The Company funds foreign currency transactions by buying the foreign currency at the spot rate when required. A 5% increase or decrease in the USD/CAD and USD/ exchange rates may have an impact of an increase or decrease of on retained earnings at December 31, 2022 (December 31, 2021: $18). Amounts denominated in Canadian dollars and Argentine pesos included in the consolidated statements of financial position, presented in thousands of U.S. dollars, are as follows: As a of December 31, As a of December 31, 2022 2021 CAD ARS CAD ARS Cash 4,994 1,297 3,475 952 Other assets — — 675 23 Trade receivables 609 — 1,038 — Trade payables and accrued liabilities (6,228 ) (4,849 ) (4,964 ) (718 ) Long-term debt (126 ) — (126 ) — (751 ) (3,552 ) 98 257 Credit risk and counterparty risk Credit risk is the risk of an unexpected loss if a third party fails to meet its contractual obligations, including cash and cash equivalents. The Company is exposed to counterparty risk through the significant deposits it places with suppliers of mining hardware to secure orders and delivery dates as well as deposits it places with construction companies and suppliers of electrical components and construction materials. The risk of a supplier failing to meet its contractual obligations may result in late deliveries or long-term deposits and equipment and construction prepayments that are not realized. The Company attempts to mitigate this risk by procuring mining hardware from larger, more established suppliers and those with whom the Company has existing relationships and knowledge of their reputation in the market as well as by insuring deposits placed for construction work and materials. The Company also insures the majority of its construction deposits for the Argentina facility in order to mitigate the risk of suppliers not meeting their contractual obligations. The credit risk regarding trade receivables is derived mainly from sales to Volta’s third-party customers. The Company performs ongoing credit evaluations of its customers. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. The allowance for doubtful accounts is based on management’s assessment of a customer’s credit quality as well as subjective factors and trends, including the aging of receivable balances. Liquidity risk Liquidity risk is a risk that the Company will not be able to pay its financial obligations when they are due. The Company’s policy is to monitor its cash balances and planned cash flows generated from operations to ensure that it maintains sufficient liquidity in order to pay its projected financial liabilities. Refer to Note 2 for more details about the Company’s liquidity. The following are the undiscounted contractual maturities of financial liabiliti 2023 2024 2025 2026 2027 and thereafter Total Trade payables and accrued liabilities 20,541 — — — — 20,541 Long-term debt 45,747 4,085 — — — 49,832 Lease liabilities 4,333 3,587 2,493 2,408 8,869 21,690 70,621 7,672 2,493 2,408 8,869 92,063 Concentration risk Concentration risk arises as a result of the concentration of exposures within the same category, whether it is geographical location, product type, industry sector or counterparty type. The cryptocurrency mining industry is highly volatile with significant inherent risk. The Company also holds a portion of its working capital in BTC. A significant decline in the market prices of cryptocurrencies, an increase in the difficulty of cryptocurrency mining, changes in the regulatory environment and adverse changes in other inherent risks can significantly negatively impact the Company’s operations and the carrying value of its assets. The Company does not currently hedge the conversion of cryptocurrencies to fiat currency. |
Transactions and Balances with
Transactions and Balances with Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
Transactions and Balances with Related Parties [Abstract] | |
TRANSACTIONS AND BALANCES WITH RELATED PARTIES | NOTE 23: TRANSACTIONS AND BALANCES WITH RELATED PARTIES The following table details balance payable to related parties: As of December 31, As of December 31, 2022 2021 Trade payables and accrued liabilities Directors’ remuneration 1,522 19 Director and senior management incentive plan 95 1,465 1,617 1,484 Lease liabilities Companies controlled by directors — 1,357 Amounts due to related parties, other than lease liabilities, are unsecured, non-interest bearing and payable on demand. Transactions with related parties The Company made rent payments totaling approximately $273 for the year ended December 31, 2022 (for the year ended December 31, 2021: $475) to companies controlled by certain directors. The rent payments were classified as interest included in financial expenses and principal repayment of lease liabilities. During the year ended December 31, 2022, the Company’s leases with companies controlled by directors were renewed with third parties. The Company entered into consulting agreements with two directors. The consulting fees totaled approximately $1,267 for the year ended December 31, 2022 (for the year ended December 31, 2021: $625). During December 2022, the consulting agreements were terminated, roles and responsibilities were reduced and termination payments totaling $1,466 were accrued and included in trade payables and accrued liabilities (for the year ended December 31, 2021: nil The transactions described above were incurred in the normal course of operations. These transactions are included in the consolidated statements of profit or loss and comprehensive profit and loss as follows: Year ended December 31, 2022 2021 General and administrative expenses 2,733 625 Net financial expenses 70 126 2,803 751 Compensation of key management and directors The Company considers its Directors, Chief Officers and Vice Presidents to be key management personnel. The remuneration paid to directors and other members of key management personnel, to the extent that they are not included in the consulting agreements described above are as follows: Year ended December 31, 2022 2021 Short-term benefits* 48 5,004 Termination payments 1,466 — Share-based payments 19,077 21,174 20,591 26,178 *Short-term benefits include an incentive plan adopted by the Company in 2021 to reward certain directors and members of senior management with a total of 50 BTC. |
Capital Management Policies and
Capital Management Policies and Procedures | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Capital Management Policies and Procedures [Abstract] | |
CAPITAL MANAGEMENT POLICIES AND PROCEDURES | NOTE 24: CAPITAL MANAGEMENT POLICIES AND PROCEDURES The Company’s capital management objectives are to ensure its ability to maximize the return to its shareholders. The Company’s definition of capital includes all components of equity. Capital for the reporting period is summarized in Note 21 and in the consolidated statement of changes in equity. In order to meet its objectives, the Company monitors its capital structure and makes adjustments as required in light of changes in economic conditions and the risk characteristics of the underlying assets. These objectives will be achieved by maintaining a strong capital base so as to maintain investor confidence to sustain future development of the business, maintain a flexible capital structure that optimizes the cost of capital at acceptable risk and preserves the ability to meet financial obligations and ensuring sufficient liquidity to pursue organic growth. In order to maintain or adjust the capital structure, the Company may issue new common shares or debt. |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Subsidiaries [Abstract] | |
Schedule of significant subsidiaries | NOTE 25: SUBSIDIARIES In 2011, Bitfarms Ltd. (Israel) established AU Acquisition VI, LLC (“AU”) which is incorporated in the State of Nevada, USA, and was wholly owned and controlled by the Company. AU is registered as the legal owner of the mineral assets, Hidden Lake and Victorine. Also, in 2011, Bitfarms established Pembroke & Timberland, LLC (“Pembroke”) in the State of Maine, USA, which was also wholly owned and controlled by the Company. In 2022, AU and Pembroke were sold for a nominal amount to a third party. In 2022, Backbone established Bitfarms Paraguay General Partner Inc. (“Bitfarms Paraguay GP”) which is incorporated in the Province of Ontario, Canada, and is wholly owned and controlled by Backbone. A limited partnership, Bitfarms Paraguay Limited Partnership, was established in the Province of Ontario, Canada with Bitfarms Paraguay GP being the general partner and Backbone being the limited partner. The Company’s significant subsidiaries as of December 31, 2022 are as follows: Company name Security type Main place of business Securities Equity Voting Bitfarms Ltd. (Israel) Ordinary shares CDA 100 % 100 % 100 % Volta Ordinary shares CDA 100 % 100 % 100 % Backbone Ordinary shares CDA 100 % 100 % 100 % Backbone Argentina Ordinary shares ARG 100 % 100 % 100 % Backbone Paraguay Ordinary shares PAR 100 % 100 % 100 % Backbone Mining Ordinary shares USA 100 % 100 % 100 % Excluding the mineral assets with a carrying amount of $3,000, substantially all of the other assets, liabilities, revenues, expenses and cash flows in the consolidated financial statements are those of Backbone, Backbone Argentina, Backbone Paraguay, Backbone Mining and of Volta. Refer to Note 29 for geographic information of revenues and property, plant and equipment. |
Net Earnings (Loss) Per Share
Net Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Net Earnings (Loss) Per Share [Abstract] | |
NET EARNINGS (LOSS) PER SHARE | NOTE 26: NET EARNINGS (LOSS) PER SHARE Details of the number of shares and income (loss) used in the computation of net earnings (loss) per share are as follows: Year ended December 31, 2022 2021 Net income (loss) (239,050 ) 22,130 Weighted average number of common shares outstanding - basic 207,776,000 157,652,000 The effect of dilutive potential common shares — 11,740,000 Weighted average number of common shares outstanding - diluted 207,776,000 169,392,000 Basic (loss) earnings per share (1.15 ) 0.14 Diluted (loss) earnings per share (1.15 ) 0.13 For the year ended December 31, 2022, potentially dilutive securities have not been included in the calculation of diluted earnings (loss) per share because their effect is antidilutive. The additional potentially dilutive securities that would have been included in the calculation for diluted earnings per share had their effect not been anti-dilutive, for the year ended December 31, 2022, would have totaled approximately 1,748,000. |
Share-Based Payment
Share-Based Payment | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Share Based Payment Arrangements [Abstract] | |
SHARE-BASED PAYMENT | NOTE 27: SHARE-BASED PAYMENT The share-based payment expense related to stock options and restricted stock units (“RSU”) Year ended December 31, 2022 2021 Equity-settled share-based payment plans 21,788 22,585 Options During the year ended December 31, 2022, the Board of Directors approved stock option grants to shares in accordance with the Long-Term Incentive Plan (the “LTIP Plan”) adopted on . All options issued according to the LTIP Plan become exercisable when they vest and can be exercised for a maximum period of 5 years from the date of the grant. The inputs used to value the option grants using the Black-Scholes model are as follows: Grant date March 31, May 19, June 30, November 16, December 27, Dividend yield (%) — — — — — Expected share price volatility (%) 105 % 106 % 102 % 103 % 102 % Risk-free interest rate (%) 2.49 % 2.78 % 2.99 % 4.13 % 4.17 % Expected life of stock options (years) 3 3 3 3 3 Share price (CAD) 4.71 2.45 1.50 1.00 0.55 Exercise price (CAD) 4.71 2.45 1.50 1.00 0.55 Fair value of options (USD) 2.40 1.21 0.72 0.46 0.25 Vesting period (years) 1.5 1.5 1.5 1.5 1.5 Number of options granted 120,000 5,382,000 20,000 200,000 3,870,000 Details of the outstanding stock options are as follows: Year ended December 31, 2022 2021 Number of Options Weighted Average Exercise Price ($CAD) Number of Options Weighted Average Exercise Price ($CAD) Outstanding, January 1, 12,547,000 4.86 8,100,000 0.72 Granted 9,592,000 1.68 10,775,000 5.91 Exercised (70,000 ) 0.41 (6,074,000 ) 1.27 Forfeited (205,000 ) 5.65 (251,000 ) 3.41 Expired (60,000 ) 4.37 (3,000 ) 0.99 Outstanding, December 31, 21,804,000 3.47 12,547,000 4.86 Exercisable, December 31, 2,306,375 0.46 5,676,000 4.57 The weighted average contractual life of the stock options as of December 31, 2022 was 4.0 years (December 31, 2021: 4.3 years). RSUs On May 19, 2022, the Board of Directors approved the grant of 200,000 RSUs (during the year December 31, 2021: 200,000 RSUs) to certain members of senior management which vest 25% upfront and an additional 25% every 6 months (during the year ended December 31, 2021: vest ratably, on an annual basis, over a three-year period). The value of the RSUs on the grant date was $1.91 per unit (during the year December 31, 2021: $4.05 per unit). |
Additional Details to the State
Additional Details to the Statement of Profit or Loss and Comprehensive Profit or Loss | 12 Months Ended |
Dec. 31, 2022 | |
Additional Details to the Statement of Profit or Loss and Comprehensive Profit or Loss [Abstract] | |
ADDITIONAL DETAILS TO THE STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE PROFIT OR LOSS | NOTE 28: ADDITIONAL DETAILS TO THE STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE PROFIT OR LOSS Cost of revenues Year ended December 31, 2022 2021 Energy and infrastructure 56,415 30,195 Depreciation and amortization 72,420 24,476 Purchases of electrical components 1,759 1,973 Electrician salaries and payroll taxes 1,316 1,727 131,910 58,371 General and administrative expenses Year ended December 31, 2022 2021 Salaries and share based payment 30,040 30,334 Professional services 10,051 6,985 Advertising and promotion 333 174 Insurance, duties and other 9,370 4,920 Travel, motor vehicle and meals 1,152 423 Hosting and telecommunications 560 402 51,506 43,238 Net financial (income) expenses Year ended December 31, 2022 2021 Loss on revaluation of warrants — 19,524 Loss on embedded derivative — 2,641 Gain on disposition of marketable securities a (51,649 ) (6,149 ) Loss on currency exchange 2,945 647 Interest on credit facility and long-term debt 12,770 1,907 Interest on lease liabilities 1,451 1,513 Warrant issuance costs — 668 Discount expense on VAT receivable b 6,750 — Other financial expenses 173 252 (27,560 ) 21,003 a. Gain on disposition of marketable securities During the year ended December 31, 2022, the Company continued to fund its expansion in Argentina through the acquisition of marketable securities and in-kind contribution of these securities to the Company’s subsidiary in Argentina. The subsequent disposition of these marketable securities in exchange for Argentine Pesos gave rise to a gain as the amount received in ARS exceeds the amount of ARS the Company would have received from a direct foreign currency exchange. b. Discount expense on VAT receivable A portion of Argentine VAT is not expected to be settled within the next 12 months, and, therefore, it has been classified as a long-term receivable in Note 14 with the short-term portion being included in sales tax receivable in Note 8. The Company has discounted this VAT receivable to its present value, which is classified within during the . Historically, ARS has devalued significantly when compared to USD due to high levels of inflation in Argentina, which may result in the Company recording future foreign exchange losses on its Argentina VAT receivable. |
Geographical Information
Geographical Information | 12 Months Ended |
Dec. 31, 2022 | |
Geographical Information [Abstract] | |
GEOGRAPHICAL INFORMATION | NOTE 29: GEOGRAPHICAL INFORMATION Reportable segment The reporting segments are identified on the basis of information that is reviewed by the chief operating decision maker (“CODM”) to make decisions about resources to be allocated and assess its performance. Accordingly, for management purposes, the Company is organized into operating segments based on the products and services of its business units and has one material reportable segment, cryptocurrency mining, which is the operation of server farms that support the validation and verification of transactions on the BTC blockchain, earning cryptocurrency for providing these services, as described in Note 1. Revenues Revenues by country are as follow: Year ended December 31, 2022 2021 Canada 112,106 153,265 USA 25,095 16,226 Argentina 1,455 — Paraguay 3,772 — 142,428 169,491 Property, Plant and Equipment Property, plant and equipment by country is as follow: As of December 31, As of December 31, 2022 2021 Canada 142,654 83,402 USA 32,664 51,672 Argentina 31,927 665 Paraguay 12,183 1,111 219,428 136,850 |
Additional Details to the Sta_2
Additional Details to the Statement of Cash Flows | 12 Months Ended |
Dec. 31, 2022 | |
Additional Details to the Statement of Cash Flows [Abstract] | |
ADDITIONAL DETAILS TO THE STATEMENT OF CASH FLOWS | NOTE 30: ADDITIONAL DETAILS TO THE STATEMENT OF CASH FLOWS Year ended December 31, 2022 2021 Changes in working capital components: Decrease in trade receivables, net 429 64 Increase in other current assets (4,563 ) (5,082 ) Decrease (increase) in long-term deposits 188 (613 ) Increase in trade payables and accrued liabilities 94 9,244 Increase (decrease) in taxes payable (126 ) 11,777 (3,978 ) 15,390 Significant non-cash transactions: Addition of right-of-use assets, property, plant and equipment and related lease liabilities 11,354 8,682 Purchase of property, plant and equipment financed by short-term credit 1,601 2,802 Extinguishment of warrant liability and long-term debt through share issuance — 24,322 Issuance of shares in connection with business combination — 3,676 Equipment prepayments realized as additions to property, plant and equipment 54,135 — Deferred tax expense related to equity issuance costs (3,895 ) 4,287 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 31: SUBSEQUENT EVENTS At-The-Market Equity Offering Program During the period from January 1, 2023, to March 20, 2023, the Company issued 14,185,000 common shares in exchange for gross proceeds of $14,611 at an average share price of approximately $1.03. The Company received net proceeds of $14,122 after paying commissions of $490 to the Company’s agent. Refer to Note 21 for further details of the Company’s at-the-market equity offering program. BlockFi Loan During February 2023, the Company negotiated a settlement of its loan agreement with BlockFi with a then outstanding debt balance of $20,328 for a payment of $7,750. As a result, a gain on extinguishment of long-term debt will be recognized in the amount of $12,578 in the first quarter of 2023. Reliz Lease During February 2023, the Company modified its lease agreement with Reliz Ltd. (where BlockFi was the lender to Reliz Ltd.) in order to settle its outstanding lease liability of $379 for a payment of $118. As a result, a gain on extinguishment of long-term debt will be recognized in the amount of $261 in the first quarter of 2023. Repayment of Foundry Loans #2, #3 and #4 During January 2023, the principal amount of the remaining Foundry Loans #2, #3 and #4 were fully repaid before their maturity date without prepayment penalty for $829. Disposition of Miners During the period from January 1, 2023, to March 20, 2023, the Company sold 409 Bitmain S19 XP Miners for proceeds of $1,740 resulting in a loss on disposition of $556. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation of the financial statements | a. Basis of presentation of the financial statements The consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). These consolidated financial statements were approved and authorized for issue by the Board of Directors on March 20, 2023. The consolidated financial statements have been prepared on a cost basis, except for derivative financial instruments and digital assets that are measured at fair value. The consolidated financial statements are presented in U.S. dollars and all values are rounded to the nearest thousand, except where otherwise indicated. |
Significant accounting policies | b. Significant accounting policies Presentation of profit and loss The Company has elected to present the profit or loss items using the function of expense method. The operating cycle The operating cycle of the Company is to mine digital assets and then routinely deposit them into custody, or convert them to fiat currency as needed. The Company’s activities have a one year operating cycle. Accordingly, the assets and liabilities are classified in the statement of financial position as current assets and liabilities based on the Company’s operating cycle. Consolidated financial statements These financial statements consolidate the Company’s subsidiaries from the date of acquisition until the date that control is lost. The subsidiaries are controlled by the Company, where control is achieved when the Company is exposed to or has the right to variable returns from its involvement with the investee and has the current ability to direct the activities of the investee that significantly affect the investee’s returns. The financial statements of the Company and its subsidiaries are prepared as of the same dates and periods. The consolidated financial statements are prepared using uniform accounting policies by all subsidiaries of the Company. Significant intercompany balances and transactions and gains or losses resulting from intercompany transactions are eliminated in full in the consolidated financial statements. Cash Cash consists of cash at banks, cash held in trust and short-term deposits with a maturity of less than three months. Business combinations Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date at fair value, and the amount of any non-controlling interests in the acquiree. Acquisition-related costs are expensed as incurred and included in general and administrative expenses. The Company determines that it has acquired a business when the acquired set of activities and assets include an input and a substantive process that together significantly contribute to the ability to create outputs. Goodwill Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company’s cash-generating units (“CGUs”) or group of CGUs that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. A CGU or group of CGUs to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the CGU or group of CGUs may be impaired. If the recoverable amount of the CGU or group of CGUs is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the CGU or group of CGUs and then to the other assets of the CGU or group of CGUs on a pro-rata basis of the carrying amount of each asset in the CGU or group of CGUs. An impairment loss recognized for goodwill is not reversed in a subsequent period. The Company has designated December 31 as the date for its annual impairment test. Foreign currency translation i. Functional currency and presentation currency The financial statements are presented in U.S. Dollars, which is the functional currency of the parent company, as well as the functional currency of Backbone, Backbone Argentina, Backbone Paraguay and Backbone Mining. The functional currency is the currency that best reflects the economic environment in which the Company operates and conducts its transactions. The functional currency of Volta, a Canadian subsidiary, is the Canadian dollar. The Company determines the functional currency of each subsidiary. Volta has a Canadian functional currency, and, as such, assets and liabilities are translated using the exchange rate in effect at each reporting date. Revenues and expenses are translated using the average exchange rates in effect for all periods presented. The resulting translation differences are included in other comprehensive income. The translation differences on foreign currency translation of Volta were immaterial for the years ended December 31, 2022 and December 31, 2021. ii. Transactions, assets and liabilities in foreign currency Transactions in foreign currency are initially recorded at the exchange rate in effect on the transaction date. Monetary assets and liabilities in foreign currency are subsequently translated into the functional currency at the exchange rate in effect at each reporting date. Exchange rate differences, other than those capitalized to qualifying assets or carried to equity in hedging transactions, are included in profit or loss. Non-monetary assets and liabilities in foreign currency stated at cost are translated at the exchange rate in effect at the transaction date. Non-monetary assets and liabilities in foreign currency carried at fair value are translated at the exchange rate at the date on which the fair value was determined. Revenue recognition Revenue from contracts with customers is recognized when control over the goods or services is transferred to the customer. The transaction price is the amount of the consideration that is expected to be received based on the contract terms, excluding amounts collected on behalf of third parties (such as taxes). The following are the specific revenue recognition criteria which must be met before revenue is recognized: i. Revenues from cryptocurrency mining The Company has entered into contracts with mining pools and has undertaken the performance obligation of providing computing power to the mining pool in exchange for non-cash consideration in the form of cryptocurrency. Revenues from cryptocurrency mining are recognized when the computing power is provided to the mining pool. The Company measures the non-cash consideration received at the fair market value of the cryptocurrency received. Management estimates fair value on a daily basis as the quantity of cryptocurrency received multiplied by the price quoted on www.coinmarketcap.com (“Coinmarketcap”) on the day it was received. Management considers the prices quoted on Coinmarketcap to be a level 2 input under IFRS 13 Fair Value Measurement. Any difference between the fair value of cryptocurrency recorded upon receipt from mining activities and the actual realized price upon disposal are recorded as a gain or loss on disposition of cryptocurrency. ii. Revenues from hosting cryptocurrency mining equipment The Company has entered into hosting contracts where it operates mining equipment on behalf of third parties within its facilities. Revenue from hosting contracts is recognized as the Company meets its obligation of operating the hosted equipment over time. These contracts have been terminated as of December 31, 2021. iii. Revenue from electrical services The Company, through Volta, sells electrical components and provides electrician installation for those components as well as repair and maintenance services. Revenues are recognized according to the stage of completion of the transaction as of the balance sheet date. The stage of completion is estimated based on the costs incurred for the transaction compared to the estimated cost of completion for the project. According to this method, revenues are recognized in the reporting period in which the services are provided. In the event that the outcome of the contract cannot be measured reliably, the revenues are recognized to the extent of the recoverable expenses incurred. Any amounts received in advance for future services to be provided are recorded as deferred revenues (contract liability), grouped with trade payables and accrued liabilities, and recognized as revenue in profit or loss when the services are rendered. Digital assets Cryptocurrency on hand at the end of a reporting period, if any, is classified as digital assets, and is accounted for under IAS 38, Intangible Assets The Company reports cryptocurrency on hand at the end of the reporting period as digital assets, which are classified as current assets as management has determined that the cryptocurrency on hand at the end of the reporting period has markets with sufficient liquidity to allow conversion within the Company’s normal operating cycle. The Company presents cryptocurrency pledged as collateral separate from unencumbered cryptocurrency. Income tax The income tax expense for the year comprises current and deferred taxes. These taxes are recognized in profit or loss, except to the extent that they relate to items which are recognized in other comprehensive income or loss or directly in shareholders’ equity. i. Current taxes The current tax liability is measured using the tax rates and tax laws that have been enacted or substantively enacted by the reporting date as well as adjustments required in connection with tax liabilities in respect of previous years. ii. Deferred taxes Deferred taxes are computed in respect of temporary differences between the carrying amounts in the financial statements and the amounts attributed for tax purposes. Deferred taxes are measured at the tax rate that is expected to apply when the asset is realized, or the liability is settled, based on tax laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is not probable that they will be utilized. Deductible carryforward losses and temporary differences for which deferred tax assets had not been recognized are reviewed at each reporting date and a respective deferred tax asset is recognized to the extent that their utilization is probable. Taxes that would apply in the event of the disposal of investments in investees have not been taken into account in computing deferred taxes as long as the disposal of the investments in investees is not probable in the foreseeable future. Leases The Company assesses at contract inception whether a contract is, or contains, a lease. The determination is based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company as a lessee applies a single recognition and measurement approach for all leases except for short-term leases and leases of low-value assets. The Company recognizes lease liabilities to make lease payments and right-of-use assets (“ROU assets”) representing the right to use the underlying assets. i. ROU assets The Company recognizes ROU assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). ROU assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of ROU assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. ROU assets are depreciated over the shorter of the lease term and the estimated useful lives of the assets, as follows: Asset Class Depreciation Method Depreciation period Leased premises Straight-line 4-10 years Vehicles and other Straight-line 3-5 years BVVE and Electrical components Sum of years 5 years If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset and is classified with property plant and equipment. Refer to the accounting policies of Property, plant and equipment in this note. The ROU assets are also subject to impairment. Refer to the accounting policies of Impairment of non-financial assets in this note. ii. Lease liabilities At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. iii. Short-term leases and leases of low value assets The Company applies the short-term lease recognition exemption to its short-term leases of machinery, equipment and farming facilities (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). The Company also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term. Assets held for sale Non-currents assets or a disposal group are classified as held for sale if their carrying amount is expected to be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the assets must be available for immediate sale in their present condition, the Company must be committed to their sale, there must be a program to locate a buyer, and it is highly probable that a sale will be completed within one year from the date of classification. From the date of such initial classification, these assets are no longer depreciated and are presented separately as current assets at the lower of their carrying amount and fair value less costs to sell. The gain or loss on disposition of assets held for sale will only be presented separately in other comprehensive income (loss) when it qualifies as part of discontinued operations. When an entity no longer plans to sell an asset in a sale transaction, it ceases the classification of the asset as held for sale and measures it at the lower of its carrying amount had it not been classified as held for sale or the recoverable amount of the asset on the date of the decision not to sell the asset. Property, plant and equipment Property, plant and equipment are carried at cost, including directly attributable costs, less accumulated depreciation, accumulated impairment losses and any related investment grants, and excluding day-to-day servicing expenses. Cost includes spare parts and auxiliary equipment that are used in connection with plant and equipment. The cost of an item of property, plant and equipment includes the initial estimate of the costs of dismantling and removing the item and restoring the site on which the item is located. Property, plant and equipment are depreciated as follows: Asset Class Depreciation Method Depreciation period BVVE Sum of years 5 years Mineral assets * N/A N/A Electrical equipment Sum of years 5 years Leasehold improvements Straight-line Shorter of the lease term and the expected life of the improvement Buildings Declining balance 4% Vehicles Declining balance 30% * Since the acquisition of mineral assets in 2018, there has been no production. The useful life, depreciation method and residual value of an asset are reviewed at least each year-end and any changes are accounted for prospectively as a change in accounting estimate. Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale and the date that the asset is derecognized. The sum of years depreciation method is calculated as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Rate 5/15 4/15 3/15 2/15 1/15 Percentage 33.33% 26.67% 20.00% 13.33% 6.67% Intangible assets Intangible assets consist of acquired software and a below market lease acquired in a business combination used in the Company’s cryptocurrency mining operations. Intangible assets acquired separately are initially measured at cost plus direct acquisition costs. Intangible assets acquired in business combinations are measured at their fair value as of the acquisition date. Intangible assets with a finite useful life are amortized over their useful lives using the sum of years method and are reviewed for impairment whenever there is an indication that the asset may be impaired. The amortization period and the amortization method for an intangible asset are reviewed at least at each year end. Intangible assets are amortized as follows: Asset Class Depreciation Method Depreciation period Computer software Sum of years 5 years Favorable lease Straight-line Lease term i. Software The Company’s assets include computer systems comprised of hardware and software. Certain hardware comes pre-installed with firmware. Without this firmware, the hardware could not function and therefore both the hardware and firmware are classified within property plant and equipment. In contrast, stand-alone software that adds functionality to the hardware is classified as an intangible asset. The sum of years depreciation method for computer software is calculated as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Rate 5/15 4/15 3/15 2/15 1/15 Percentage 33.33% 26.67% 20.00% 13.33% 6.67% ii. Favorable lease The favorable lease acquired during the business acquisition is described in Note 5. Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, who is responsible for allocating resources and assessing the performance of the operating segments, and which has been identified as the management team that makes strategic decisions. Impairment of non-financial assets The Company evaluates the need to record an impairment of non-financial assets whenever events or changes in circumstances indicate that the carrying amount is not recoverable. If the carrying amount of non-financial assets exceeds their recoverable amount, the assets are reduced to their recoverable amount. The recoverable amount is the higher of fair value less costs of sale and value in use. In measuring value in use, the expected future cash flows are discounted using a pre-tax discount rate that reflects the risks specific to the asset. The recoverable amount of an asset that does not generate independent cash flows is determined for the CGU to which the asset belongs. Impairment losses are recognized in profit or loss. An impairment loss of an asset, other than goodwill, is reversed only if there have been changes in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. Reversal of an impairment loss, as noted above, shall not be increased above the lower of the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the asset in prior years and its recoverable amount. The reversal of impairment loss of an asset presented at cost is recognized in profit or loss. Financial instruments i. Financial assets Initial recognition and measurement Financial assets are initially measured at fair value plus transaction costs that can be directly attributed to the acquisition of the financial asset, except in the case of a financial asset measured at fair value through profit or loss in respect of which transaction costs are charged to profit or loss. Subsequent measurement Financial assets presented at amortized cost are subsequently measured using the effective interest rate method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. The Company’s financial assets at amortized cost includes trade receivables and certain items included in other assets. Net changes in financial assets measured at fair value are recognized in the statement of profit or loss. A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the host and accounted for as a separate derivative if: the economic characteristics and risks are not closely related to the host; a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and the hybrid contract is not measured at fair value through profit or loss. Embedded derivatives are measured at fair value with changes in fair value recognized in profit or loss. This category includes the 2021 embedded derivative arising from the repayment terms of the Dominion loan described in Note 17. Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the fair value through the profit or loss category. Impairment The Company recognizes an allowance for expected credit losses (“ECLs”) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. ii. Financial liabilities Initial recognition and measurement Financial liabilities are classified at initial recognition at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade payables and accrued liabilities, credit facility and long-term debt. Subsequent measurement Financial liabilities are either measured at fair value through profit or loss or at amortized cost. Financial liabilities measured at fair value through profit or loss included a warrant liability, subject to the amendment of the warrant terms as described in Note 17 and the warrants issued in the private placements described in Note 21. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate (“EIR”) method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as financial expenses in the statement of profit or loss. This category generally applies to interest-bearing loans and borrowings. iii. Derecognition of financial assets Financial assets are derecognized when the contractual rights to receive the cash flows from the financial asset expire, or when the Company transfers the contractual rights to a third party to receive the cash flows from the financial asset or assumes an obligation to pay the cash flows received in full to a third party without significant delay. iv. Derecognition of financial liabilities Financial liabilities are derecognized when they are extinguished, which occurs when the obligation defined in the contract is fulfilled, cancelled or expires. A financial liability is fulfilled when the debtor repays the liability by paying cash; providing other financial assets, goods or services, or is otherwise legally released from the liability. Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement is based on the assumption that the transaction will take place in the asset’s or the liability’s principal market, or in the absence of a principal market, in the most advantageous market. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. Fair value measurement of non-financial assets takes into account the ability of a market participant to derive economic benefits from the asset through its best use, or by selling it to another market participant capable of using the asset to its best use. Assets and liabilities measured at fair value, or whose fair value is disclosed are classified into categories within the fair value hierarchy, based on the lowest level input that is significant to the overall fair value measurement: Level Definition Level 1 Unadjusted quoted prices in an active market of identical assets and liabilities Level 2 Non-quoted prices included in Level 1 that are either directly or indirectly observable Level 3 Data that is not based on observable market information, such as valuation techniques without the use of observable market data Provisions Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligations and the amounts can be reliably estimated. When the Company expects that part or all of the expense will be refunded, such as an insurance claim, the refund will be recognized as a separate asset only on the date when there is certainty of receiving the asset. The expense will be recognized in the statement of profit or loss net of the expected refund. Asset retirement provisions These provisions relate to Backbone and Backbone Argentina’s legal obligation, in relation to its leased properties, to restore the properties to their original condition at the end of the lease period. The provisions are calculated at the present value of the expected costs to settle the obligations using estimated future cash flows discounted at a rate that reflects the risks specific to the obligations. Changes in the estimated future costs, or in the discount rate applied, are recorded as an adjustment of the cost of the related asset. Shared-based transactions Transactions settled with equity instruments The cost of employee services paid in equity instruments is measured at the fair value of the equity instruments as of the grant date. The fair value is determined using a generally accepted option pricing model. Equity settled transactions with other services providers are measured at the fair value of the goods or services received in return for the equity instruments. The cost of equity-settled transactions is recognized in profit or loss together with a corresponding increase in contributed surplus during the period in which the performance and/or service conditions are to be satisfied and ending on the date on which the relevant employees become entitled to the award (“the vesting period”). The cumulative expense recognized for equity-settled transactions at the end of each reporting period until the vesting date reflects the extent to which the vesting period has expired and management’s best estimate of the number of equity instruments that will ultimately vest. Expenses related to grants that do not vest are not recognized. Grants where the fair value is determined at the date of the grant based on non-vesting market conditions are treated as vested, assuming all other vesting conditions (service and/or performance) were met. When the Company modifies the terms of equity-settled transactions, an additional expense is recognized on the date of the modification and is calculated as the increase in the fair value of the compensation granted in excess of the original expense. Cancellation of equity settlement that has not vested is treated as if it had vested on the date of cancellation, with the unrecognized expense recognized immediately. However, if the cancellation is subsequently replaced by a new agreement and is designated as an alternative settlement, then it is treated as a modification of the original agreement as described above. Earnings per share Earnings per share is calculated by dividing the net income attributable to the Company’s shareholders by the weighted average number of common shares outstanding during the period. Potential common shares are included in the calculation of diluted earnings per share if their effect dilutes earnings per share from continuing operations. Potential common shares that were converted during the period are included in diluted earnings per share only up to the conversion date, and from that date are included in basic earnings per share. Share capital and issue of a unit of securities Share capital represents the amount received on the issuance of shares, less issuance costs (net of tax). The issue of a unit of securities involves the allocation of the proceeds received before issue expenses to the securities issued in the unit based on the following order: financial derivatives and other financial instruments measured at fair value in each period. Fair value is then determined for financial liabilities that are measured at amortized cost. The proceeds allocated to equity instruments are determined to be the residual amount. Issue costs are allocated to each component pro rata to the amounts determined for each component in the unit. |
New accounting amendments issued and adopted by the Company | c. New accounting amendments issued and adopted by the Company The following amendments to existing standards were adopted by the Company as of January 1, 2022: Amendments IFRS 3, Business Combinations Amendments to IFRS 3 are designed to: i) update its reference to the 2018 Conceptual Framework instead of the 1989 Framework; ii) add a requirement that, for obligations within the scope of IAS 37, Provisions, Contingent Liabilities and Contingent Assets Levies Amendments to IAS 16, Property, Plant and Equipment Amendments to IAS 16 prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced before that asset is available for use (i.e., proceeds received while bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management). Instead, an entity recognizes the proceeds from selling such items, and the cost of producing those items, in profit or loss. Amendments to IFRS 9, Financial Instruments Amendments to IFRS 9 clarify which fees an entity includes when it applies the “10 per cent” test in assessing whether to derecognize a financial liability. An entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other’s behalf. Amendments to IFRS 16, Leases Amendments to IFRS 16 remove the illustration of the reimbursement of leasehold improvements included in the Illustrative Example 13 of IFRS 16 since it does not explain clearly enough the conclusion as to whether the reimbursement would meet the definition of a lease incentive in IFRS 16. The adoption of the amendments listed above did not have a significant impact on the Company’s consolidated financial statements. |
New accounting amendments issued to be adopted at a later date | d. New accounting amendments issued to be adopted at a later date The following amendments to existing standards have been issued and are applicable to the Company for its annual period beginning on January 1, 2023 and thereafter, with an earlier application permitted: Amendments to IAS 1, Presentation of Financial Statements (“IAS 1”) Amendments to IAS 1 change the requirements in IAS 1 with regard to disclosure of accounting policies. Applying the amendments, an entity discloses its material accounting policies, instead of its significant accounting policies. Further amendments to IAS 1 are made to explain how an entity can identify a material accounting policy. Amendments to IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors Amendments to IAS 8 replace the definition of a change in accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. The following amendments to existing standards have been issued and are applicable to the Company for its annual period beginning on January 1, 2024 and thereafter, with an earlier application permitted: Amendments to IAS 1 Amendments to IAS 1 clarify how to classify debt and other liabilities as current or non-current. The amendments help to determine whether, in the consolidated financial statements, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. The amendments also include clarifying the classification requirements for debt an entity might settle by converting it into equity. Amendments to IAS 1 specify that covenants to be complied with after the reporting date do not affect the classification of debt as current or non-current at the reporting date. Instead, the amendments require to disclose information about these covenants in the notes to the financial statements. The Company is currently evaluating the impact of adopting the amendments on the Company’s financial statements. |
Comparative figures | e. Comparative figures revised Certain figures in the comparative period of the consolidated financial statements have been revised to conform to the current presentation. Specifically, within the consolidated statements of cash flows, cash flows related to the purchase and disposal of marketable securities were amended to be presented on a gross basis within investing activities, and as such, the financial statement line items “Purchase of marketable securities” and “Proceeds from disposition of marketable securities” were added in the current and comparative year, all within investing activities. Previously, such amounts were classified as a net cash flow within “Net financial (income) expenses” under operating activities. The revision between operating and investing activities was $6,149. |
Nature of Operations (Tables)
Nature of Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Reporting Entity Basis Of Presentation And Liquidity [Abstract] | |
Schedule of financial statements | Term Definition 1 Backbone Backbone Hosting Solutions Inc. 2 Volta 9159-9290 Quebec Inc. 3 Backbone Argentina Backbone Hosting Solutions SAU 4 Backbone Paraguay Backbone Hosting Solutions Paraguay SA 5 Backbone Mining Backbone Mining Solutions LLC 6 BTC Bitcoin 7 BVVE Blockchain Verification and Validation Equipment 8 CAD Canadian Dollars 9 USD U.S. Dollars 10 ARS Argentine Pesos |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Significant Accounting Policies [Abstract] | |
Schedule of right-of-use assets | Asset Class Depreciation Method Depreciation period Leased premises Straight-line 4-10 years Vehicles and other Straight-line 3-5 years BVVE and Electrical components Sum of years 5 years |
Schedule of property, plant and equipment | Asset Class Depreciation Method Depreciation period BVVE Sum of years 5 years Mineral assets * N/A N/A Electrical equipment Sum of years 5 years Leasehold improvements Straight-line Shorter of the lease term and the expected life of the improvement Buildings Declining balance 4% Vehicles Declining balance 30% |
Schedule of years depreciation method | Year 1 Year 2 Year 3 Year 4 Year 5 Rate 5/15 4/15 3/15 2/15 1/15 Percentage 33.33% 26.67% 20.00% 13.33% 6.67% Year 1 Year 2 Year 3 Year 4 Year 5 Rate 5/15 4/15 3/15 2/15 1/15 Percentage 33.33% 26.67% 20.00% 13.33% 6.67% |
Schedule of intangible assets are amortized | Asset Class Depreciation Method Depreciation period Computer software Sum of years 5 years Favorable lease Straight-line Lease term |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Business Combination [Abstract] | |
Schedule of fair values of the identifiable assets | November 9, 2021 Consideration transferred Cash paid at closing 23,000 Value of 415,000 common shares transferred at closing 3,676 Fair value of total consideration transferred 26,676 Recognized amounts of identifiable assets acquired Electrical components 5,954 Buildings 748 Land 74 Intangible assets - favorable lease 2,000 Total identifiable assets acquired 8,776 Goodwill 17,900 |
Cash (Tables)
Cash (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Cash And Cash Equivalents [Abstract] | |
Schedule of cash | As of December 31, As of December 31, 2022 2021 Cash in USD 24,596 120,846 Cash in USD held in trust — 322 Cash in CAD 4,916 3,475 Cash in CAD held in trust 78 — Cash in ARS 1,297 952 30,887 125,595 |
Trade Receivables (Tables)
Trade Receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade Receivables [Abstract] | |
Schedule of credit risk exposure of the company’s trade receivables | As of December 31, As of December 31, 2022 2021 1 - 30 days 501 441 31 - 60 days 99 382 61 - 90 days 53 73 > 91 days 85 260 Allowance for ECL (37 ) (118 ) 701 1,038 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Other Assets Text Block Abstract | |
Schedule of other assets | As of December 31, As of December 31, 2022 2021 Electrical component inventory 588 548 Sales taxes receivable* 3,816 1,980 Insurance refund and other receivables 108 697 4,512 3,225 * Refer to Note 28b for more details about the provision applied to the Argentine value-added tax (VAT) receivable included in sales taxes receivable. |
Digital Assets (Tables)
Digital Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Digital Assets [Abstract] | |
Schedule of Bitcoin transactions and the corresponding values | Year ended December 31, 2022 2021 Quantity Value Quantity Value Balance of digital assets including digital assets pledged as collateral as of January 1, 3,301 152,856 — — BTC mined* 5,167 138,985 3,453 164,393 BTC purchased 1,000 43,237 — — BTC exchanged for cash and services (9,063 ) (179,729 ) (105 ) (4,841 ) BTC exchanged for long-term debt repayment — — (47 ) (1,546 ) Realized loss on disposition of digital assets — (150,810 ) — (289 ) Change in unrealized gain (loss) on revaluation of digital assets — 2,166 — (4,861 ) Balance of digital assets as of December 31, 405 6,705 3,301 152,856 Less digital assets pledged as collateral as of December 31,** (125 ) (2,070 ) (1,875 ) (86,825 ) Balance of digital assets excluding digital assets pledged as collateral as of December 31, 280 4,635 1,426 66,031 * Management estimates the fair value of BTC mined on a daily basis as the quantity of cryptocurrency received multiplied by the price quoted on Coinmarketcap on the day it was received. Management considers the prices quoted on Coinmarketcap to be a level 2 input under IFRS 13, Fair Value Measurement ** Refer to Note 16 and 17 for details of the Company’s credit facility and long-term debt, respectively, and BTC pledged as collateral. |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Non Current Assets Or Disposal Groups Classified As Held For Sale [Abstract] | |
Schedule of movement of assets held for sale | Antminer S9 Miners (a) Innosilicon T2T, Canaan Avalon A10, Antminer MicroBT Whatsminer M20S Miners (c) TOTAL Quantity Value Quantity Value Quantity Value Quantity Value Balance as of January 1, 2021 — — — — — — — — Additions 6,318 371 — — — — 6,318 371 Dispositions (258 ) (50 ) — — — — (258 ) (50 ) Impairment reversal — 890 — — — — — 890 Balance as of December 31, 2021 6,060 1,211 — — — — 6,060 1,211 Additions — — 2,051 325 4,071 1,778 6,122 2,103 Dispositions (3,982 ) (779 ) (207 ) (22 ) (1,559 ) (748 ) (5,748 ) (1,549 ) Impairment (2,078 ) (432 ) (572 ) (113 ) — — (2,650 ) (545 ) Balance as of December 31, 2022 — — 1,272 190 2,512 1,030 3,784 1,220 |
Impairment (Tables)
Impairment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Impairment Loss and Reversal of Impairment Loss [Abstract] | |
Schedule of impairment loss (reversal) in the consolidated statements of profit or loss and comprehensive profit or loss | Year ended December 31, 2022 2021 Impairment on equipment and construction prepayments, property, plant and equipment and right-of-use assets 75,213 1,800 Impairment on goodwill 17,900 — Impairment reversal on property, plant and equipment — (1,860 ) 93,113 (60 ) |
Schedule of impairment on equipment and construction prepayments | Year ended December 31, 2022 Equipment Assets held for ROU assets Property, plant and equipment Goodwill Total Washington State cryptocurrency mining CGU (“Washington CGU”) a, c — — 306 6,208 17,900 24,414 Argentina cryptocurrency mining CGU (“Argentina CGU”) b, c 50,326 — 1,728 32,027 — 84,081 Quebec cryptocurrency mining CGU (“Quebec CGU”) c (11,641 ) — — — — (11,641 ) Paraguay cryptocurrency mining CGU (“Paraguay CGU”) c (8,486 ) — — — — (8,486 ) Miners held for sale e — 545 — — — 545 Suni mineral asset f — — — 4,200 — 4,200 30,199 545 2,034 42,435 17,900 93,113 Year ended December 31, 2021 Quebec CGU d — — — (970 ) — (970 ) Miners held for sale e — (890 ) — — — (890 ) Suni mineral asset f — — — 1,800 — 1,800 — (890 ) — 830 — (60 ) |
Schedule of further impairment | Increase in impairment loss A decrease of 1% in revenues 476 An increase of 1% in the discount rate 460 An increase of 1% in energy prices 145 Increase in impairment loss A decrease of 1% in revenues 711 An increase of 1% in the discount rate 630 An increase of 1% in energy prices 211 Increase in impairment loss Additional decrease of 1% in revenues 2,861 Additional increase of 1% in the discount rate 2,432 Additional increase of 1% in energy prices 1,184 |
Schedule of key assumptions used in the value in use calculation | Reversal of Impairment (a) Impairment (b) Impairment and Third quarter of 2021 Second quarter of 2022 Third quarter of 2022 Fourth quarter of 2022 Revenues* Two optimistic and two pessimistic scenarios and one status quo scenario, each with an estimated future BTC price and network difficulty, were used to project revenues and associated cash flows from cryptocurrency mining. Management assigned probabilities to each scenario to calculate weighted average expected outcomes. The weighted average daily revenue per Terahash used in the value in use calculation was $0.22/Terahash The weighted average daily revenue per Terahash used in the value in use calculation was $0.12/Terahash The weighted average daily revenue per Terahash used in the value in use calculation was $0.12/Terahash The weighted average daily revenue per Terahash used in the value in use calculation was $0.11/Terahash Discount The discount rate reflects management’s assumptions regarding the unit’s specific risk. The pre-tax discount rate used was estimated with some of the risk already being implicitly reflected through management’s allocation of probabilities to the various scenarios included in the revenue calculation. The discount pre-tax rate used was estimated at 18.3% The value in use of the CGU was determined based on the present value of the expected cash flows over a four-year period discounted at an annual pre-tax rate of 24.75% in varying scenarios The value in use of the Quebec, Washington State and Argentina CGUs were determined based on the present value of the expected cash flows over five-year, four-year and five-year periods, respectively, discounted at annual pre-tax rates of 29.00%, 29.75% and 38.25%, respectively, in varying scenarios The value in use of the Quebec, Washington State, Paraguay and Argentina CGUs were determined based on the present value of the expected cash flows over five-year, four-year, five-year and five-year periods, respectively, discounted at annual pre-tax rates of 25.25%, 26.00%, 30.75% and 34.75%, respectively, in varying scenarios Energy Management estimated that energy prices for the duration of the forecasted years will be approximately: $0.04 per kilowatt hour for the Quebec CGU $0.027 per kilowatt hour for the Washington State CGU $0.046, $0.027 and $0.030 per kilowatt hour for the Quebec, Washington State and Argentina CGUs, respectively $0.048, $0.044, $0.038 and $0.039 per kilowatt hour for the Quebec, Washington State, Paraguay and Argentina CGUs, respectively Terminal Management estimated the terminal value of the Miners included in the CGU for the purposes of the impairment testing to be the daily revenue per Terahash in effect at the end of the value in use calculation multiplied by the ending hashrate for a period of: Approximately 6 months Approximately 6 months Not applicable Not applicable |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Notes BVVE and electrical components Mineral assets Land and buildings Leasehold improvements Vehicles Total Cost Balance as of January 1, 2022 156,647 9,000 4,549 5,783 547 176,526 Measurement period adjustment to business combination 5 (1,127 ) — (18 ) — — (1,145 ) Additions 164,437 — 3,239 39,495 552 207,723 Dispositions (3,609 ) — (3,378 ) — (17 ) (7,004 ) Transfer to assets held for sale 10 (8,143 ) — — — — (8,143 ) Balance as of December 31, 2022 308,205 9,000 4,392 45,278 1,082 367,957 Accumulated Depreciation Balance as of January 1, 2022 35,766 1,800 286 1,560 264 39,676 Depreciation 66,319 — 193 1,703 124 68,339 Dispositions (2,562 ) — (366 ) — (13 ) (2,941 ) Transfer to assets held for sale 10 (6,040 ) — — — — (6,040 ) Impairment 11 24,820 4,200 157 13,107 151 42,435 Impairment on deposits transferred to PPE 1,794 — — 5,266 — 7,060 Balance as of December 31, 2022 120,097 6,000 270 21,636 526 148,529 Net book value as of December 31, 2022 188,108 3,000 4,122 23,642 556 219,428 Notes BVVE and electrical components Mineral assets Land and buildings Leasehold improvements Vehicles Total Cost Balance as of January 1, 2021 52,676 9,000 3,263 2,707 448 68,094 Additions through business combination 5 7,081 — 840 — — 7,921 Additions 114,323 — 470 3,265 136 118,194 Dispositions (6,146 ) — (24 ) (189 ) (37 ) (6,396 ) Transfer to assets held for sale 10 (11,287 ) — — — — (11,287 ) Balance as of December 31, 2021 156,647 9,000 4,549 5,783 547 176,526 Accumulated Depreciation Balance as of January 1, 2021 30,042 — 185 1,861 213 32,301 Depreciation 22,233 — 104 396 79 22,812 Dispositions (5,172 ) — (3 ) (148 ) (28 ) (5,351 ) Transfer to assets held for sale 10 (10,916 ) — — — — (10,916 ) Impairment 11 — 1,800 — — — 1,800 Impairment reversal 11 (421 ) — — (549 ) — (970 ) Balance as of December 31, 2021 35,766 1,800 286 1,560 264 39,676 Net book value as of December 31, 2021 120,881 7,200 4,263 4,223 283 136,850 |
Schedule of quantity of BVVE held by the company | Notes MicroBT Whatsminer* Bitmain S19j Pro Innosilicon T3 & T2T** Canaan Avalon A10 Bitmain S19XP Other Bitmain Antminers*** Total Quantity as of January 1, 2022 18,675 7,172 6,446 1,024 — 8,073 41,390 Additions 28,499 — — — 801 — 29,300 Dispositions (1,799 ) — (735 ) (1,024 ) (801 ) (8,073 ) (12,432 ) Quantity as of December 31, 2022 45,375 7,172 5,711 — — — 58,258 Classified as assets held for sale 10 (2,512 ) — (1,272 ) — — — (3,784 ) Presented as ROU asset**** 18 (3,000 ) — — — — — (3,000 ) Presented as property, plant and equipment 39,863 7,172 4,439 — — — 51,474 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Intangible Assets [Abstract] | |
Schedule of Intangible assets | Notes Systems software Favorable lease Total Cost Balance as of January 1, 2022 5,150 1,800 6,950 Measurement period adjustment to business combination 5 — 200 200 Balance as of December 31, 2022 5,150 2,000 7,150 Accumulated amortization Balance as of January 1, 2022 5,008 261 5,269 Amortization 109 1,739 1,848 Balance as of December 31, 2022 5,117 2,000 7,117 Net book value as of December 31, 2022 33 — 33 Notes Systems software Favorable lease Total Cost Balance as of January 1, 2021 5,150 — 5,150 Additions through business combination 5 — 1,800 1,800 Balance as of December 31, 2021 5,150 1,800 6,950 Accumulated amortization Balance as of January 1, 2021 4,773 — 4,773 Amortization 235 261 496 Balance as of December 31, 2021 5,008 261 5,269 Net book value as of December 31, 2021 142 1,539 1,681 |
Long-Term Deposits, Equipment_2
Long-Term Deposits, Equipment Prepayments, Other and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-Term Deposits, Equipment Prepayments, Other and Commitments [Abstract] | |
Schedule of long-term deposits, equipment prepayments, other and commitments | As of December 31, As of December 31, 2022 2021 VAT receivable a 2,083 2,067 Security deposits for energy, insurance and rent 3,872 1,555 Equipment and construction prepayments b 32,230 83,059 38,185 86,681 |
Trade Payables and Accrued Li_2
Trade Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade Payables and Accrued Liabilities [abstract] | |
Schedule of trade payables and accrued liabilities | As of December 31, As of December 31, 2022 2021 Trade accounts payable and accrued liabilities 12,897 9,873 Government remittances 7,644 4,607 20,541 14,480 |
Credit Facility (Tables)
Credit Facility (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Credit Facility [Abstract] | |
Schedule of credit facility | As of December 31, As of December 31, 2022 2021 Revolving credit facility — 60,000 Interest payable on revolving credit facility — 2 — 60,002 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-Term Debt [Abstract] | |
Schedule of long-term debt | As of December 31, As of December 31, 2022 2021 Equipment financing 47,020 11,039 Volta note payable 127 128 Total long-term debt 47,147 11,167 Less current portion of long-term debt (43,054 ) (10,257 ) Non-current portion of long-term debt 4,093 910 |
Schedule of movement in long-term debt | As of December 31, As of December 31, 2022 2021 Balance as of January 1, 11,167 17,345 Conversion of lease liabilities — 3,904 Issuance of long-term debt 67,201 14,227 Payments (38,532 ) (22,382 ) Interest on long-term debt 7,311 1,883 Conversion of long-term debt and loan modification — (5,000 ) Derecognition of embedded derivative — 1,190 Balance as of December 31, 47,147 11,167 |
Schedule of equipment financing and balance of the loans and the net book value (NBV) | Maturity date Stated rate Effective rate* Monthly repayment ($) Long-term debt balance ($) NBV of Collateral ($) Collateral** Foundry Loan #2 March 2023 16.5 % 16.5 % 94 185 1,254 300 Foundry Loan #3 April 2023 16.5 % 16.5 % 88 257 1,044 300 Foundry Loan #4 May 2023 16.5 % 16.5 % 100 387 1,231 400 Blockfi Loan February 2024 14.5 % 18.1 % 1,455 19,952 28,360 6,100 NYDIG Loan February 2024 12.0 % 14.4 % 2,043 26,239 34,852 10,395 Total 3,780 47,020 66,741 17,495 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of right-of-use assets and lease liabilities | Leased premises Vehicles Other equipment Total ROU assets Lease liabilities As of January 1, 2022 9,038 283 76 9,397 13,573 Additions and extensions to ROU assets 9,526 118 1,693 11,337 11,354 Depreciation (1,975 ) (129 ) (121 ) (2,225 ) — Lease termination (104 ) (7 ) — (111 ) (112 ) Impairment (791 ) — (1,243 ) (2,034 ) — Payments — — — — (7,528 ) Interest — — — — 1,451 Foreign exchange — — — — (874 ) As of December 31, 2022 15,694 265 405 16,364 17,864 Less current portion of lease liabilities (3,649 ) Non-current portion of lease liabilities 14,215 Leased premises Vehicles Other equipment Total ROU assets Lease liabilities As of January 1, 2021 5,129 180 84 5,393 11,023 Additions and extensions to ROU assets 5,713 205 21 5,939 5,911 Additions to property, plant and equipment — — — — 7,786 Depreciation (1,040 ) (99 ) (29 ) (1,168 ) — Lease termination (764 ) (3 ) — (767 ) (892 ) Lease liabilities converted to long-term debt — — — — (3,904 ) Payments — — — — (5,746 ) Issuance of warrants — — — — (2,160 ) Interest — — — — 1,513 Foreign exchange — — — — 42 As of December 31, 2021 9,038 283 76 9,397 13,573 Less current portion of lease liabilities (4,346 ) Non-current portion of lease liabilities 9,227 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Income Taxes [Abstract] | |
Schedule of current and deferred income tax expense (recovery) | Year ended December 31, 2022 2021 Current tax (recovery) expense: Current year (9,030 ) 12,358 Prior year 68 (693 ) (8,962 ) 11,665 Deferred tax (recovery) expense: Current year (8,446 ) 8,665 Prior year (4 ) 177 (8,450 ) 8,842 (17,412 ) 20,507 |
Schedule of effective tax rate | Year ended December 31, 2022 2021 Income tax recovery at statutory rate of 26.5% (67,962 ) 26.5 % 11,299 26.5 % Increase (decrease) in taxes resulting from: Foreign tax rate differential 1,070 (0.4 )% 383 0.9 % Prior year 64 — % (516 ) (1.2 )% Non-deductible expenses and other (92 ) — % 12,996 30.5 % Deferred tax asset not recognized 49,508 (19.3 )% (3,655 ) (8.6 )% (17,412 ) 6.8 % 20,507 48.1 % |
Schedule of deferred tax asset | Operating losses carried forward Lease liability Asset Retirement provision Financing fees PPE Reserves and other Total As of January 1, 2021 663 2,905 55 214 — — 3,837 Credited (charged) to statements of profit or loss (4,318 ) 236 29 (750 ) 478 1,288 (3,037 ) Credited to statements of equity — — — 4,287 — — 4,287 Deferred tax asset recognized in the statements of profit or loss 3,655 — — — — — 3,655 As of December 31, 2021 — 3,141 84 3,751 478 1,288 8,742 Credited to statements of profit or loss 43,713 1,020 42 144 15,855 11,335 72,109 Deferred tax asset derecognized in the statements of profit or loss (43,713 ) — — — (5,795 ) — (49,508 ) Deferred tax asset derecognized in the statements of equity — — — (3,895 ) — — (3,895 ) As of December 31, 2022 — 4,161 126 — 10,538 12,623 27,448 |
Schedule of deferred tax liability | PPE ROU Asset Total As of January 1, 2021 902 2,935 3,837 Charged to statements of profit or loss 8,385 1,075 9,460 As of December 31, 2021 9,287 4,010 13,297 Charged to statements of profit or loss 12,231 1,920 14,151 As of December 31, 2022 21,518 5,930 27,448 |
Asset Retirement Provision (Tab
Asset Retirement Provision (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Asset Retirement Provision [Abstract] | |
Schedule of asset retirement provision | As of December 31, As of December 31, 2022 2021 Balance as of January 1, 239 209 Additions during the period 1,701 91 Accretion expense 93 19 Effect of change in the foreign exchange rate (54 ) — Balance as of December 31, 1,979 319 Less current portion of asset retirement provision included in accounts payable and accrued liabilities — (80 ) Non-current portion of asset retirement provision 1,979 239 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Share Capital [Abstract] | |
Schedule of outstanding warrants | Year ended December 31, 2022 2021 Number of warrants Weighted average exercise price (USD) Number of warrants Weighted average exercise price (USD) Outstanding, January 1, 19,428,000 4.16 6,053,000 0.41 Granted 25,000 3.47 40,332,000 3.37 Exercised — — (26,957,000 ) 2.13 Expired (300,000 ) 1.19 — — Outstanding, December 31, 19,153,000 4.21 19,428,000 4.16 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Financial Instruments [Abstract] | |
Schedule of carrying values and the fair value of assets and liabilities | As of December 31, As of December 31, 2022 2021 Financial assets at amortized cost Cash Level 1 30,887 125,595 Trade receivables Level 2 701 1,038 Insurance refund and other receivables Level 2 108 697 Total carrying amount and fair value 31,696 127,330 Financial liabilities at amortized cost Trade payables and accrued liabilities Level 2 20,541 14,480 Long-term debt Level 2 47,147 11,167 Credit Facility Level 2 — 60,002 Total carrying amount and fair value 67,688 85,649 Net carrying amount and fair value (35,992 ) 41,681 |
Schedule of foreign currency risk | As a of December 31, As a of December 31, 2022 2021 CAD ARS CAD ARS Cash 4,994 1,297 3,475 952 Other assets — — 675 23 Trade receivables 609 — 1,038 — Trade payables and accrued liabilities (6,228 ) (4,849 ) (4,964 ) (718 ) Long-term debt (126 ) — (126 ) — (751 ) (3,552 ) 98 257 |
Schedule of contractual maturities of financial liabilities and lease liabilities (non-financial liabilities) | 2023 2024 2025 2026 2027 and thereafter Total Trade payables and accrued liabilities 20,541 — — — — 20,541 Long-term debt 45,747 4,085 — — — 49,832 Lease liabilities 4,333 3,587 2,493 2,408 8,869 21,690 70,621 7,672 2,493 2,408 8,869 92,063 |
Transactions and Balances wit_2
Transactions and Balances with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Transactions and Balances with Related Parties [Abstract] | |
Schedule of balances with related parties | As of December 31, As of December 31, 2022 2021 Trade payables and accrued liabilities Directors’ remuneration 1,522 19 Director and senior management incentive plan 95 1,465 1,617 1,484 Lease liabilities Companies controlled by directors — 1,357 |
Schedule of consolidated statements of profit or loss and comprehensive profit and loss | Year ended December 31, 2022 2021 General and administrative expenses 2,733 625 Net financial expenses 70 126 2,803 751 |
Schedule of compensation of key management and directors | Year ended December 31, 2022 2021 Short-term benefits* 48 5,004 Termination payments 1,466 — Share-based payments 19,077 21,174 20,591 26,178 |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Subsidiaries [Abstract] | |
Schedule of significant subsidiaries | Company name Security type Main place of business Securities Equity Voting Bitfarms Ltd. (Israel) Ordinary shares CDA 100 % 100 % 100 % Volta Ordinary shares CDA 100 % 100 % 100 % Backbone Ordinary shares CDA 100 % 100 % 100 % Backbone Argentina Ordinary shares ARG 100 % 100 % 100 % Backbone Paraguay Ordinary shares PAR 100 % 100 % 100 % Backbone Mining Ordinary shares USA 100 % 100 % 100 % |
Net Earnings (Loss) Per Share (
Net Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Net Earnings (Loss) Per Share [Abstract] | |
Shedule of shares and income (loss) used in the computation of net earnings (loss) per share | Year ended December 31, 2022 2021 Net income (loss) (239,050 ) 22,130 Weighted average number of common shares outstanding - basic 207,776,000 157,652,000 The effect of dilutive potential common shares — 11,740,000 Weighted average number of common shares outstanding - diluted 207,776,000 169,392,000 Basic (loss) earnings per share (1.15 ) 0.14 Diluted (loss) earnings per share (1.15 ) 0.13 |
Share-Based Payment (Tables)
Share-Based Payment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Share Based Payment Arrangements [Abstract] | |
Schedule of expense recognized in the financial statements for employee services received | Year ended December 31, 2022 2021 Equity-settled share-based payment plans 21,788 22,585 |
Schedule of inputs used to value the option grants using the black-scholes model | Grant date March 31, May 19, June 30, November 16, December 27, Dividend yield (%) — — — — — Expected share price volatility (%) 105 % 106 % 102 % 103 % 102 % Risk-free interest rate (%) 2.49 % 2.78 % 2.99 % 4.13 % 4.17 % Expected life of stock options (years) 3 3 3 3 3 Share price (CAD) 4.71 2.45 1.50 1.00 0.55 Exercise price (CAD) 4.71 2.45 1.50 1.00 0.55 Fair value of options (USD) 2.40 1.21 0.72 0.46 0.25 Vesting period (years) 1.5 1.5 1.5 1.5 1.5 Number of options granted 120,000 5,382,000 20,000 200,000 3,870,000 |
Schedule of outstanding stock options | Year ended December 31, 2022 2021 Number of Options Weighted Average Exercise Price ($CAD) Number of Options Weighted Average Exercise Price ($CAD) Outstanding, January 1, 12,547,000 4.86 8,100,000 0.72 Granted 9,592,000 1.68 10,775,000 5.91 Exercised (70,000 ) 0.41 (6,074,000 ) 1.27 Forfeited (205,000 ) 5.65 (251,000 ) 3.41 Expired (60,000 ) 4.37 (3,000 ) 0.99 Outstanding, December 31, 21,804,000 3.47 12,547,000 4.86 Exercisable, December 31, 2,306,375 0.46 5,676,000 4.57 |
Additional Details to the Sta_3
Additional Details to the Statement of Profit or Loss and Comprehensive Profit or Loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Additional Details to the Statement of Profit or Loss and Comprehensive Profit or Loss [Abstract] | |
Schedule of cost of revenues | Year ended December 31, 2022 2021 Energy and infrastructure 56,415 30,195 Depreciation and amortization 72,420 24,476 Purchases of electrical components 1,759 1,973 Electrician salaries and payroll taxes 1,316 1,727 131,910 58,371 |
Schedule of general and administrative expenses | Year ended December 31, 2022 2021 Salaries and share based payment 30,040 30,334 Professional services 10,051 6,985 Advertising and promotion 333 174 Insurance, duties and other 9,370 4,920 Travel, motor vehicle and meals 1,152 423 Hosting and telecommunications 560 402 51,506 43,238 |
Schedule of net financial (income) expenses | Year ended December 31, 2022 2021 Loss on revaluation of warrants — 19,524 Loss on embedded derivative — 2,641 Gain on disposition of marketable securities a (51,649 ) (6,149 ) Loss on currency exchange 2,945 647 Interest on credit facility and long-term debt 12,770 1,907 Interest on lease liabilities 1,451 1,513 Warrant issuance costs — 668 Discount expense on VAT receivable b 6,750 — Other financial expenses 173 252 (27,560 ) 21,003 |
Geographical Information (Table
Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Geographical Information [Abstract] | |
Schedule of revenues | Year ended December 31, 2022 2021 Canada 112,106 153,265 USA 25,095 16,226 Argentina 1,455 — Paraguay 3,772 — 142,428 169,491 |
Schedule of property, plant and equipment | As of December 31, As of December 31, 2022 2021 Canada 142,654 83,402 USA 32,664 51,672 Argentina 31,927 665 Paraguay 12,183 1,111 219,428 136,850 |
Additional Details to the Sta_4
Additional Details to the Statement of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Additional Details to the Statement of Cash Flows [Abstract] | |
Schedule of additional details to the statement of cash flows | Year ended December 31, 2022 2021 Changes in working capital components: Decrease in trade receivables, net 429 64 Increase in other current assets (4,563 ) (5,082 ) Decrease (increase) in long-term deposits 188 (613 ) Increase in trade payables and accrued liabilities 94 9,244 Increase (decrease) in taxes payable (126 ) 11,777 (3,978 ) 15,390 Significant non-cash transactions: Addition of right-of-use assets, property, plant and equipment and related lease liabilities 11,354 8,682 Purchase of property, plant and equipment financed by short-term credit 1,601 2,802 Extinguishment of warrant liability and long-term debt through share issuance — 24,322 Issuance of shares in connection with business combination — 3,676 Equipment prepayments realized as additions to property, plant and equipment 54,135 — Deferred tax expense related to equity issuance costs (3,895 ) 4,287 |
Nature of Operations (Details)
Nature of Operations (Details) - Schedule of financial statements | 12 Months Ended |
Dec. 31, 2022 | |
Backbone Hosting Solutions Inc. [Member] | |
Nature of Operations (Details) - Schedule of financial statements [Line Items] | |
Financial statements terms | Backbone |
9159-9290 Quebec Inc. [Member] | |
Nature of Operations (Details) - Schedule of financial statements [Line Items] | |
Financial statements terms | Volta |
Backbone Hosting Solutions SAU [Member] | |
Nature of Operations (Details) - Schedule of financial statements [Line Items] | |
Financial statements terms | Backbone Argentina |
Ankara Suites S.A [Member] | |
Nature of Operations (Details) - Schedule of financial statements [Line Items] | |
Financial statements terms | Backbone Paraguay |
Backbone Mining Solutions LLC [Member] | |
Nature of Operations (Details) - Schedule of financial statements [Line Items] | |
Financial statements terms | Backbone Mining |
Bitcoin [Member] | |
Nature of Operations (Details) - Schedule of financial statements [Line Items] | |
Financial statements terms | BTC |
Blockchain Verification and Validation Equipment (including miners) [Member] | |
Nature of Operations (Details) - Schedule of financial statements [Line Items] | |
Financial statements terms | BVVE |
Canadian Dollars [Member] | |
Nature of Operations (Details) - Schedule of financial statements [Line Items] | |
Financial statements terms | CAD |
U.S. Dollars [Member] | |
Nature of Operations (Details) - Schedule of financial statements [Line Items] | |
Financial statements terms | USD |
Argentine Pesos [Member] | |
Nature of Operations (Details) - Schedule of financial statements [Line Items] | |
Financial statements terms | ARS |
Liquidity (Details)
Liquidity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Feb. 08, 2023 | Dec. 31, 2022 | Feb. 18, 2022 | Dec. 31, 2021 | Apr. 12, 2018 | |
Liquidity (Details) [Line Items] | |||||
Purchase agreements | $ 48,000 | ||||
Equipment financing | 47,020 | $ 32,000 | $ 11,039 | ||
Estimated loan | 5,000 | $ 7,200 | $ 9,000 | ||
Outstanding principal and interest | $ 20,000 | ||||
Consideration of cash | $ 7,750 | ||||
Extinguishment of long-term debt | 12,578 | ||||
Backbone Mining’s [member] | |||||
Liquidity (Details) [Line Items] | |||||
Assets | $ 6,100 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Disclosure of Significant Accounting Policies [Abstract] | |
Operating and investing revision amount | $ 6,149 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of right-of-use assets | 12 Months Ended |
Dec. 31, 2022 | |
Leased premises [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of right-of-use assets [Line Items] | |
Depreciation Method | Straight-line |
Vehicles and other [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of right-of-use assets [Line Items] | |
Depreciation Method | Straight-line |
BVVE and Electrical components [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of right-of-use assets [Line Items] | |
Depreciation Method | Sum of years |
Depreciation period | 5 years |
Minimum [Member] | Leased premises [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of right-of-use assets [Line Items] | |
Depreciation period | 4 years |
Minimum [Member] | Vehicles and other [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of right-of-use assets [Line Items] | |
Depreciation period | 3 years |
Maximum [Member] | Leased premises [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of right-of-use assets [Line Items] | |
Depreciation period | 10 years |
Maximum [Member] | Vehicles and other [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of right-of-use assets [Line Items] | |
Depreciation period | 5 years |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of property, plant and equipment | 12 Months Ended | |
Dec. 31, 2022 | ||
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of property, plant and equipment [Line Items] | ||
BVVE, Depreciation Method | Sum of years | |
BVVE, Description of property, plant and equipment depreciation | 5 years | |
Mineral assets [Member] | ||
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of property, plant and equipment [Line Items] | ||
Depreciation method of property, plant and equipment | N/A | [1] |
Description of property, plant and equipment depreciation | N/A | [1] |
Electrical equipment [Member] | ||
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of property, plant and equipment [Line Items] | ||
Depreciation method of property, plant and equipment | Sum of years | |
Description of property, plant and equipment depreciation | 5 years | |
Leasehold improvements [Member] | ||
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of property, plant and equipment [Line Items] | ||
Depreciation method of property, plant and equipment | Straight-line | |
Description of property, plant and equipment depreciation | Shorter of the lease term and the expected life of the improvement | |
Buildings [Member] | ||
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of property, plant and equipment [Line Items] | ||
Depreciation method of property, plant and equipment | Declining balance | |
Description of property, plant and equipment depreciation | 4% | |
Vehicles [Member] | ||
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of property, plant and equipment [Line Items] | ||
Depreciation method of property, plant and equipment | Declining balance | |
Description of property, plant and equipment depreciation | 30% | |
[1]Since the acquisition of mineral assets in 2018, there has been no production. |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of years depreciation method | 12 Months Ended |
Dec. 31, 2022 | |
Year 1 [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of years depreciation method [Line Items] | |
Rate | 5/15 |
Percentage | 33.33% |
Year 1 [Member] | Computer software [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of years depreciation method [Line Items] | |
Rate | 5/15 |
Percentage | 33.33% |
Year 2 [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of years depreciation method [Line Items] | |
Rate | 4/15 |
Percentage | 26.67% |
Year 2 [Member] | Computer software [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of years depreciation method [Line Items] | |
Rate | 4/15 |
Percentage | 26.67% |
Year 3 [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of years depreciation method [Line Items] | |
Rate | 3/15 |
Percentage | 20% |
Year 3 [Member] | Computer software [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of years depreciation method [Line Items] | |
Rate | 3/15 |
Percentage | 20% |
Year 4 [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of years depreciation method [Line Items] | |
Rate | 2/15 |
Percentage | 13.33% |
Year 4 [Member] | Computer software [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of years depreciation method [Line Items] | |
Rate | 2/15 |
Percentage | 13.33% |
Year 5 [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of years depreciation method [Line Items] | |
Rate | 1/15 |
Percentage | 6.67% |
Year 5 [Member] | Computer software [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of years depreciation method [Line Items] | |
Rate | 1/15 |
Percentage | 6.67% |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of intangible assets are amortized | 12 Months Ended |
Dec. 31, 2022 | |
Computer Software [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of intangible assets are amortized [Line Items] | |
Depreciation Method | Sum of years |
Depreciation period | 5 years |
Favorable lease [Member] | |
Basis of Presentation and Significant Accounting Policies (Details) - Schedule of intangible assets are amortized [Line Items] | |
Depreciation Method | Straight-line |
Depreciation period | Lease term |
Significant Accounting Judgme_2
Significant Accounting Judgments and Estimates (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Significant Accounting Judgments and Estimates [Abstract] | |
Lease assets, descriptions | The Company has the option under some of its leases to lease the assets for additional terms of three to ten years. |
Business Combination (Details)
Business Combination (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | |
Nov. 09, 2021 | May 31, 2022 | Dec. 31, 2021 | Dec. 31, 2021 | |
Disclosure of Business Combination [Abstract] | ||||
Consideration transferred amount | $ 26,676 | |||
Cash consideration | $ 23,000 | |||
Common shares (in Shares) | 415,000 | |||
Common shares value | $ 3,676 | |||
Services amount | 2,000 | |||
Monthly payments | $ 110 | |||
Electrical components | $ 5,954 | |||
Decrease of provisional value | 1,127 | |||
Acquisition date of buildings | 7 | |||
Land | 11 | |||
Intangible assets (favorable lease) | 200 | |||
Goodwill | 945 | |||
Goodwill arising from the acquisition | $ 17,900 | |||
Revenues | $ 7,690 | |||
Hosting fees | $ 3,907 |
Business Combination (Details)
Business Combination (Details) - Schedule of fair values of the identifiable assets - Business combinations [Member] $ in Thousands | Nov. 09, 2021 USD ($) |
Consideration transferred | |
Cash paid at closing | $ 23,000 |
Value of 415,000 common shares transferred at closing | 3,676 |
Fair value of total consideration transferred | 26,676 |
Recognized amounts of identifiable assets acquired | |
Electrical components | 5,954 |
Buildings | 748 |
Land | 74 |
Intangible assets - favorable lease | 2,000 |
Total identifiable assets acquired | 8,776 |
Goodwill | $ 17,900 |
Business Combination (Details_2
Business Combination (Details) - Schedule of fair values of the identifiable assets (Parentheticals) | Nov. 09, 2021 shares |
Business combinations [Member] | |
Business Combination (Details) - Schedule of fair values of the identifiable assets (Parentheticals) [Line Items] | |
Common shares transferred at closing | 415,000 |
Cash (Details) - Schedule of ca
Cash (Details) - Schedule of cash - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash (Details) - Schedule of cash [Line Items] | ||
Cash | $ 30,887 | $ 125,595 |
USD [Member] | ||
Cash (Details) - Schedule of cash [Line Items] | ||
Cash | 24,596 | 120,846 |
USD held in trust [Member] | ||
Cash (Details) - Schedule of cash [Line Items] | ||
Cash | 322 | |
CAD [Member] | ||
Cash (Details) - Schedule of cash [Line Items] | ||
Cash | 4,916 | 3,475 |
CAD held in trust [Member] | ||
Cash (Details) - Schedule of cash [Line Items] | ||
Cash | 78 | |
ARS [Member] | ||
Cash (Details) - Schedule of cash [Line Items] | ||
Cash | $ 1,297 | $ 952 |
Trade Receivables (Details)
Trade Receivables (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Bottom of range [Member] | |
Trade Receivables (Details) [Line Items] | |
Trade receivables terms | 30 days |
Top of range [member] | |
Trade Receivables (Details) [Line Items] | |
Trade receivables terms | 90 years |
Trade Receivables (Details) - S
Trade Receivables (Details) - Schedule of credit risk exposure of the company’s trade receivables - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Trade Receivables (Details) - Schedule of credit risk exposure of the company’s trade receivables [Line Items] | ||
Gross carrying amount | $ 701 | $ 1,038 |
1-30 days [Member] | ||
Trade Receivables (Details) - Schedule of credit risk exposure of the company’s trade receivables [Line Items] | ||
Gross carrying amount | 501 | 441 |
31 - 60 days [Member] | ||
Trade Receivables (Details) - Schedule of credit risk exposure of the company’s trade receivables [Line Items] | ||
Gross carrying amount | 99 | 382 |
61 - 90 days [Member] | ||
Trade Receivables (Details) - Schedule of credit risk exposure of the company’s trade receivables [Line Items] | ||
Gross carrying amount | 53 | 73 |
> 91 days [Member] | ||
Trade Receivables (Details) - Schedule of credit risk exposure of the company’s trade receivables [Line Items] | ||
Gross carrying amount | 85 | 260 |
Allowance for ECL [Member] | ||
Trade Receivables (Details) - Schedule of credit risk exposure of the company’s trade receivables [Line Items] | ||
Gross carrying amount | $ (37) | $ (118) |
Other Assets (Details) - Schedu
Other Assets (Details) - Schedule of other assets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Other Assets [Abstract] | |||
Electrical component inventory | $ 588 | $ 548 | |
Sales taxes receivable | [1] | 3,816 | 1,980 |
Insurance refund and other receivables | 108 | 697 | |
Total | $ 4,512 | $ 3,225 | |
[1]Refer to Note 28b for more details about the provision applied to the Argentine value-added tax (VAT) receivable included in sales taxes receivable. |
Digital Assets (Details) - Sche
Digital Assets (Details) - Schedule of Bitcoin transactions and the corresponding values $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Schedule Of Bitcoin Transactions And The Corresponding Values Abstract | |||
Quantity beginning balance | 3,301 | ||
Value beginning balance | $ 152,856 | ||
Bitcoin mined, Quantity | [1] | 5,167 | 3,453 |
Bitcoin mined, Value | [1] | $ 138,985 | $ 164,393 |
BTC purchased, Quantity | 1,000 | ||
BTC purchased, Value | $ 43,237 | ||
Bitcoin exchanged for cash and services, Quantity | (9,063) | (105) | |
Bitcoin exchanged for cash and services, Value | $ (179,729) | $ (4,841) | |
Bitcoin exchanged for long-term debt repayment, Quantity | (47) | ||
Bitcoin exchanged for long-term debt repayment, Value | $ (1,546) | ||
Gain (Loss) on disposition of Bitcoin, Quantity | |||
Gain (Loss) on disposition of Bitcoin, Value | $ (150,810) | $ (289) | |
Revaluation of digital assets, Quantity | |||
Revaluation of digital assets, Value | $ 2,166 | $ (4,861) | |
Ending balance of digital assets, Quantity | 405 | 3,301 | |
Ending balance of digital assets, Value | $ 6,705 | $ 152,856 | |
Less digital assets pledged as collateral as of December 31, Quantity | [2] | (125) | (1,875) |
Less digital assets pledged as collateral as of December 31, Value | [2] | $ (2,070) | $ (86,825) |
Balance of digital assets excluding digital assets pledged as collateral as of December 31, Quantity | 280 | 1,426 | |
Balance of digital assets excluding digital assets pledged as collateral as of December 31, Value | $ 4,635 | $ 66,031 | |
[1]Management estimates the fair value of BTC mined on a daily basis as the quantity of cryptocurrency received multiplied by the price quoted on Coinmarketcap on the day it was received. Management considers the prices quoted on Coinmarketcap to be a level 2 input under IFRS 13, Fair Value Measurement |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Antminer S9 miners [Member] | ||
Assets Held for Sale (Details) [Line Items] | ||
Carrying amount | $ 779 | $ 50 |
Net proceeds | 101 | 75 |
Gain | $ 25 | |
Loss | 678 | |
Impairment loss | 432 | |
Innosilicon T2T, Canaan Avalon A10, Antminer T15 & Antminer S15 miners [Member] | ||
Assets Held for Sale (Details) [Line Items] | ||
Carrying amount | 22 | |
Net proceeds | 31 | |
Gain | 9 | |
Impairment loss | 113 | |
MicroBT Whatsminer M20S miners [Member] | ||
Assets Held for Sale (Details) [Line Items] | ||
Carrying amount | 748 | |
Net proceeds | 896 | |
Gain | $ 148 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - Schedule of movement of assets held for sale $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Assets Held for Sale (Details) - Schedule of movement of assets held for sale [Line Items] | |||
Quantity, beginning balance | |||
Value, beginning balance | |||
Quantity, Additions | 6,122 | 6,318 | |
Value, Additions | $ 2,103 | $ 371 | |
Quantity, Dispositions | (5,748) | (258) | |
Value, Dispositions | $ (1,549) | $ (50) | |
Quantity, Impairment | (2,650) | ||
Value, Impairment | $ (545) | $ 890 | |
Quantity, ending balance | 3,784 | 6,060 | |
Value, ending balance | $ 1,220 | $ 1,211 | |
Antminer S9 miners [Member] | |||
Assets Held for Sale (Details) - Schedule of movement of assets held for sale [Line Items] | |||
Quantity, beginning balance | |||
Value, beginning balance | [1] | ||
Quantity, Additions | 6,318 | ||
Value, Additions | [1] | $ 371 | |
Quantity, Dispositions | (3,982) | (258) | |
Value, Dispositions | [1] | $ (779) | $ (50) |
Quantity, Impairment | (2,078) | ||
Value, Impairment | [1] | $ (432) | $ 890 |
Quantity, ending balance | 6,060 | ||
Value, ending balance | [1] | $ 1,211 | |
Innosilicon T2T, Canaan Avalon A10, Antminer T15 & Antminer S15 miners [Member] | |||
Assets Held for Sale (Details) - Schedule of movement of assets held for sale [Line Items] | |||
Quantity, beginning balance | |||
Value, beginning balance | [2] | ||
Quantity, Additions | 2,051 | ||
Value, Additions | [2] | $ 325 | |
Quantity, Dispositions | (207) | ||
Value, Dispositions | [2] | $ (22) | |
Quantity, Impairment | (572) | ||
Value, Impairment | [2] | $ (113) | |
Quantity, ending balance | 1,272 | ||
Value, ending balance | [2] | $ 190 | |
MicroBT Whatsminer M20S miners [Member] | |||
Assets Held for Sale (Details) - Schedule of movement of assets held for sale [Line Items] | |||
Quantity, beginning balance | |||
Value, beginning balance | [3] | ||
Quantity, Additions | 4,071 | ||
Value, Additions | [3] | $ 1,778 | |
Quantity, Dispositions | (1,559) | ||
Value, Dispositions | [3] | $ (748) | |
Quantity, Impairment | |||
Value, Impairment | [3] | ||
Quantity, ending balance | 2,512 | ||
Value, ending balance | [3] | $ 1,030 | |
[1]Antminer S9 miners During the year ended December 31, 2021, the Company ceased using its Antminer S9 miners and planned to dispose of them within the next 12 months. During the year ended December 31, 2021, 258 Antminer S9 miners with a carry value of $50 were disposed for net proceeds of $75 resulting in a gain of $25. During the year ended December 31, 2022, 3,982 Antminer S9 miners with a carrying amount of $779 were disposed for net proceeds of $101 resulting in a loss of $678. The remaining Antminer S9 miners were not sold within 12 months since being classified as held for sale in 2021 due to the decline of the BTC price during the year ended December 31, 2022. As a result, these miners were written off and an impairment loss of $432 was recognized. Refer to Note 11.[2]Innosilicon T2T, Canaan Avalon A10, Antminer T15 and Antminer S15 miners During the year ended December 31, 2022, the Company ceased using Innosilicon T2T miners, Canaan Avalon A10 miners, Antminer T15 miners and Antminer S15 miners with plans to dispose of them within the next 12 months. During the year ended December 31, 2022, 207 Antminer T15 miners with a carrying amount of $22 were disposed for net proceeds of $31 resulting in a gain of $9. In addition, due to the decline of the BTC price during the year ended December 31, 2022, the remaining Canaan Avalon A10 miners, Antminer T15 miners and Antminer S15 miners were written off and an impairment loss of $113 was recognized. Refer to Note 11.[3]MicroBT Whatsminer M20S miners During the year ended December 31, 2022, the Company ceased using its MicroBT Whatsminer M20S miners and plans to dispose of them within the next 12 months. The Company sold 1,559 MicroBT Whatsminer M20S miners with a carrying amount of $737 and disposed of them for net proceeds of $896 resulting in a gain of $159. Management determined that the remaining MicroBT Whatsminer M20S miners continue to meet the criteria to be classified as held for sale as of December 31, 2022. |
Impairment (Details)
Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2018 | Dec. 31, 2020 | Apr. 12, 2018 | |
Impairment (Details) [Line Items] | ||||||||
Impairment charge to goodwill | $ 17,900 | |||||||
Equipment and construction prepayment | $ 1,461 | |||||||
ROU assets | 80 | |||||||
Property, plant and equipment | $ 42,435 | $ 830 | ||||||
Impairment loss | 4,597 | |||||||
Purchase agreement | 48,000 | |||||||
Deposits were reversed | $ 11,641 | |||||||
Useful life of impaired | 5 years | |||||||
Impairment reversal | $ 2,034 | |||||||
Estimated cost | 5,000 | $ 5,000 | 7,200 | $ 9,000 | ||||
Determined value | 7,700 | |||||||
Estimated cost compared | $ 9,000 | |||||||
Argentina CGU [member] | ||||||||
Impairment (Details) [Line Items] | ||||||||
Operating amount | $ 79,484 | |||||||
Equipment and construction prepayment | 48,865 | |||||||
ROU assets | 1,648 | |||||||
Property, plant and equipment | $ 3,056 | 28,971 | ||||||
Decrease in revenues percentage | 1% | |||||||
Actuarial assumption of discount rates | 1% | 1% | ||||||
Washington CGU [member] | ||||||||
Impairment (Details) [Line Items] | ||||||||
Equipment and construction prepayment | ||||||||
ROU assets | 306 | |||||||
Property, plant and equipment | 6,208 | |||||||
Impairment loss | $ 6,514 | |||||||
Deposits were reversed | $ 8,486 | |||||||
Decrease in revenues percentage | 1% | |||||||
Actuarial assumption of discount rates | 1% | 1% | ||||||
Quebec CGU [Member] | ||||||||
Impairment (Details) [Line Items] | ||||||||
Property, plant and equipment | (970) | |||||||
Impairment loss | $ 16,454 | |||||||
Decrease in revenues percentage | 1% | |||||||
Actuarial assumption of discount rates | 1% | 1% | ||||||
Energy price percentage | 2% | |||||||
Useful life of impaired | 1 year 6 months | |||||||
Antminer S9 miners [Member] | ||||||||
Impairment (Details) [Line Items] | ||||||||
Impairment loss | $ 432 | |||||||
Impairment reversal | 970 | $ 890 | ||||||
Canaan Avalon A10 miners, Antminer T15 miners and Antminer S15 miners [Member] | ||||||||
Impairment (Details) [Line Items] | ||||||||
Impairment loss | 113 | |||||||
Suni’s Mineral [Member] | ||||||||
Impairment (Details) [Line Items] | ||||||||
Property, plant and equipment | $ 4,200 | $ 1,800 | ||||||
Determined value | 3,250 | |||||||
Impairment value | 4,200 | $ 1,800 | ||||||
Suni’s Mineral [Member] | Bottom of Range [Member] | ||||||||
Impairment (Details) [Line Items] | ||||||||
Estimated cost | 3,000 | |||||||
Suni’s Mineral [Member] | Top of Range [Member] | ||||||||
Impairment (Details) [Line Items] | ||||||||
Estimated cost | $ 7,200 |
Impairment (Details) - Schedule
Impairment (Details) - Schedule of impairment loss (reversal) in the consolidated statements of profit or loss and comprehensive profit or loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Impairment Loss Reversal In The Consolidated Statements Of Profit Or Loss And Comprehensive Profit Or Loss Abstract | ||
Impairment on equipment and construction prepayments, property, plant and equipment and right-of-use assets | $ 75,213 | $ 1,800 |
Impairment on goodwill | 17,900 | |
Impairment reversal on property, plant and equipment | (1,860) | |
Impairment loss reversal | $ 93,113 | $ (60) |
Impairment (Details) - Schedu_2
Impairment (Details) - Schedule of impairment on equipment and construction prepayments - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Impairment (Details) - Schedule of impairment on equipment and construction prepayments [Line Items] | ||
Equipment and construction prepayments | $ 30,199 | |
Assets held for sale | 545 | (890) |
ROU assets | 2,034 | |
Property, plant and equipment | 42,435 | 830 |
Goodwill | 17,900 | |
Total | 93,113 | (60) |
Washington state cryptocurrency mining CGU (“Washington CGU”) [Member] | ||
Impairment (Details) - Schedule of impairment on equipment and construction prepayments [Line Items] | ||
Equipment and construction prepayments | ||
Assets held for sale | ||
ROU assets | 306 | |
Property, plant and equipment | 6,208 | |
Goodwill | 17,900 | |
Total | 24,414 | |
Argentina cryptocurrency mining CGU (“Argentina CGU”) [Member] | ||
Impairment (Details) - Schedule of impairment on equipment and construction prepayments [Line Items] | ||
Equipment and construction prepayments | 50,326 | |
Assets held for sale | ||
ROU assets | 1,728 | |
Property, plant and equipment | 32,027 | |
Goodwill | ||
Total | 84,081 | |
Quebec cryptocurrency mining CGU (“Quebec CGU”) [Member] | ||
Impairment (Details) - Schedule of impairment on equipment and construction prepayments [Line Items] | ||
Equipment and construction prepayments | (11,641) | |
Assets held for sale | ||
ROU assets | ||
Property, plant and equipment | ||
Goodwill | ||
Total | (11,641) | |
Paraguay cryptocurrency mining CGU (“Paraguay CGU”) [Member] | ||
Impairment (Details) - Schedule of impairment on equipment and construction prepayments [Line Items] | ||
Equipment and construction prepayments | (8,486) | |
Assets held for sale | ||
ROU assets | ||
Property, plant and equipment | ||
Goodwill | ||
Total | (8,486) | |
Miners held for sale [Member] | ||
Impairment (Details) - Schedule of impairment on equipment and construction prepayments [Line Items] | ||
Equipment and construction prepayments | ||
Assets held for sale | 545 | (890) |
ROU assets | ||
Property, plant and equipment | ||
Goodwill | ||
Total | 545 | (890) |
Suni mineral asset [Member] | ||
Impairment (Details) - Schedule of impairment on equipment and construction prepayments [Line Items] | ||
Equipment and construction prepayments | ||
Assets held for sale | ||
ROU assets | ||
Property, plant and equipment | 4,200 | 1,800 |
Goodwill | ||
Total | $ 4,200 | 1,800 |
Quebec CGU [Memebr] | ||
Impairment (Details) - Schedule of impairment on equipment and construction prepayments [Line Items] | ||
Equipment and construction prepayments | ||
Assets held for sale | ||
ROU assets | ||
Property, plant and equipment | (970) | |
Goodwill | ||
Total | $ (970) |
Impairment (Details) - Schedu_3
Impairment (Details) - Schedule of further impairment $ in Thousands | Dec. 31, 2022 USD ($) |
Washington CGU [Member] | |
Impairment (Details) - Schedule of further impairment [Line Items] | |
Increase in impairment loss decrease in revenues | $ 476 |
Increase in impairment loss increase in discount rate | 460 |
Increase in impairment loss increase in energy prices | 145 |
Argentina CGU [Member] | |
Impairment (Details) - Schedule of further impairment [Line Items] | |
Increase in impairment loss decrease in revenues | 711 |
Increase in impairment loss increase in discount rate | 630 |
Increase in impairment loss increase in energy prices | 211 |
Paraguay CGU [Member] | |
Impairment (Details) - Schedule of further impairment [Line Items] | |
Increase in impairment loss decrease in revenues | 2,861 |
Increase in impairment loss increase in discount rate | 2,432 |
Increase in impairment loss increase in energy prices | $ 1,184 |
Impairment (Details) - Schedu_4
Impairment (Details) - Schedule of further impairment (Parentheticals) | 12 Months Ended |
Dec. 31, 2022 | |
Washington CGU [Member] | |
Impairment (Details) - Schedule of further impairment (Parentheticals) [Line Items] | |
A decrease in revenues | 1% |
An increase in the discount rate | 1% |
An increase in energy prices | 1% |
Argentina CGU [Member] | |
Impairment (Details) - Schedule of further impairment (Parentheticals) [Line Items] | |
A decrease in revenues | 1% |
An increase in the discount rate | 1% |
An increase in energy prices | 1% |
Paraguay CGU [Member] | |
Impairment (Details) - Schedule of further impairment (Parentheticals) [Line Items] | |
A decrease in revenues | 1% |
An increase in the discount rate | 1% |
An increase in energy prices | 1% |
Impairment (Details) - Schedu_5
Impairment (Details) - Schedule of key assumptions used in the value in use calculation | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2022 | ||
Schedule Of Key Assumptions Used In The Value In Use Calculation Abstract | ||||||
Revenues | [1] | The weighted average daily revenue per Terahash used in the value in use calculation was $0.12/Terahash | The weighted average daily revenue per Terahash used in the value in use calculation was $0.12/Terahash | The weighted average daily revenue per Terahash used in the value in use calculation was $0.22/Terahash | The weighted average daily revenue per Terahash used in the value in use calculation was $0.11/Terahash | Two optimistic and two pessimistic scenarios and one status quo scenario, each with an estimated future BTC price and network difficulty, were used to project revenues and associated cash flows from cryptocurrency mining. Management assigned probabilities to each scenario to calculate weighted average expected outcomes. |
Discount rate and period | The value in use of the Quebec, Washington State and Argentina CGUs were determined based on the present value of the expected cash flows over five-year, four-year and five-year periods, respectively, discounted at annual pre-tax rates of 29.00%, 29.75% and 38.25%, respectively, in varying scenarios | The value in use of the CGU was determined based on the present value of the expected cash flows over a four-year period discounted at an annual pre-tax rate of 24.75% in varying scenarios | The discount pre-tax rate used was estimated at 18.3% | The value in use of the Quebec, Washington State, Paraguay and Argentina CGUs were determined based on the present value of the expected cash flows over five-year, four-year, five-year and five-year periods, respectively, discounted at annual pre-tax rates of 25.25%, 26.00%, 30.75% and 34.75%, respectively, in varying scenarios | The discount rate reflects management’s assumptions regarding the unit’s specific risk. The pre-tax discount rate used was estimated with some of the risk already being implicitly reflected through management’s allocation of probabilities to the various scenarios included in the revenue calculation. | |
Energy prices | $0.046, $0.027 and $0.030 per kilowatt hour for the Quebec, Washington State and Argentina CGUs, respectively | $0.027 per kilowatt hour for the Washington State CGU | $0.04 per kilowatt hour for the Quebec CGU | $0.048, $0.044, $0.038 and $0.039 per kilowatt hour for the Quebec, Washington State, Paraguay and Argentina CGUs, respectively | Management estimated that energy prices for the duration of the forecasted years will be approximately: | |
Terminal values | Not applicable | Approximately 6 months | Approximately 6 months | Not applicable | Management estimated the terminal value of the Miners included in the CGU for the purposes of the impairment testing to be the daily revenue per Terahash in effect at the end of the value in use calculation multiplied by the ending hashrate for a period of: | |
[1]Changes in BTC price and BTC network difficulty that can lead to changes in expected revenues were considered in the various scenarios listed above. |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Property, Plant and Equipment (Details) [Line Items] | |
Assets held for sale | $ 3,330 |
M20S [Member] | |
Property, Plant and Equipment (Details) [Line Items] | |
Assets held for sale | 2,512 |
T2T Miners [Member] | |
Property, Plant and Equipment (Details) [Line Items] | |
Assets held for sale | 1,272 |
M31S+Net Book [Member] | |
Property, Plant and Equipment (Details) [Line Items] | |
Assets held for sale | 3,000 |
M30S [Member] | |
Property, Plant and Equipment (Details) [Line Items] | |
Assets held for sale | 30,210 |
M31S [Member] | |
Property, Plant and Equipment (Details) [Line Items] | |
Assets held for sale | 12,653 |
T3 [Member] | |
Property, Plant and Equipment (Details) [Line Items] | |
Assets held for sale | $ 4,439 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - Schedule of property, plant and equipment - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cost [Member] | ||
Cost | ||
Balance beginning | $ 176,526 | $ 68,094 |
Additions through business combination | 7,921 | |
Measurement period adjustment to business combination | (1,145) | |
Additions | 207,723 | 118,194 |
Dispositions | (7,004) | (6,396) |
Transfer to assets held for sale | (8,143) | (11,287) |
Balance ending | 367,957 | 176,526 |
Accumulated Depreciation [Member] | ||
Cost | ||
Balance beginning | 39,676 | 32,301 |
Depreciation | 68,339 | 22,812 |
Dispositions | (2,941) | (5,351) |
Transfer to assets held for sale | (6,040) | (10,916) |
Impairment | 42,435 | 1,800 |
Impairment on deposits transferred to PPE | 7,060 | |
Balance ending | 148,529 | 39,676 |
Accumulated Depreciation | ||
Impairment reversal | (970) | |
Net Book Value [Member] | ||
Accumulated Depreciation | ||
Net book value as of December 31 | 219,428 | 136,850 |
BVVE and electrical components [Member] | Cost [Member] | ||
Cost | ||
Balance beginning | 156,647 | 52,676 |
Additions through business combination | 7,081 | |
Measurement period adjustment to business combination | (1,127) | |
Additions | 164,437 | 114,323 |
Dispositions | (3,609) | (6,146) |
Transfer to assets held for sale | (8,143) | (11,287) |
Balance ending | 308,205 | 156,647 |
BVVE and electrical components [Member] | Accumulated Depreciation [Member] | ||
Cost | ||
Balance beginning | 35,766 | 30,042 |
Depreciation | 66,319 | 22,233 |
Dispositions | (2,562) | (5,172) |
Transfer to assets held for sale | (6,040) | (10,916) |
Impairment | 24,820 | |
Impairment on deposits transferred to PPE | 1,794 | |
Balance ending | 120,097 | 35,766 |
Accumulated Depreciation | ||
Impairment reversal | (421) | |
BVVE and electrical components [Member] | Net Book Value [Member] | ||
Accumulated Depreciation | ||
Net book value as of December 31 | 188,108 | 120,881 |
Mineral assets [Member] | Cost [Member] | ||
Cost | ||
Balance beginning | 9,000 | 9,000 |
Balance ending | 9,000 | 9,000 |
Mineral assets [Member] | Accumulated Depreciation [Member] | ||
Cost | ||
Balance beginning | 1,800 | |
Impairment | 4,200 | 1,800 |
Balance ending | 6,000 | 1,800 |
Mineral assets [Member] | Net Book Value [Member] | ||
Accumulated Depreciation | ||
Net book value as of December 31 | 3,000 | 7,200 |
Land and buildings [Member] | Cost [Member] | ||
Cost | ||
Balance beginning | 4,549 | 3,263 |
Additions through business combination | 840 | |
Measurement period adjustment to business combination | (18) | |
Additions | 3,239 | 470 |
Dispositions | (3,378) | (24) |
Balance ending | 4,392 | 4,549 |
Land and buildings [Member] | Accumulated Depreciation [Member] | ||
Cost | ||
Balance beginning | 286 | 185 |
Depreciation | 193 | 104 |
Dispositions | (366) | (3) |
Impairment | 157 | |
Balance ending | 270 | 286 |
Land and buildings [Member] | Net Book Value [Member] | ||
Accumulated Depreciation | ||
Net book value as of December 31 | 4,122 | 4,263 |
Leasehold improvements [Member] | Cost [Member] | ||
Cost | ||
Balance beginning | 5,783 | 2,707 |
Additions | 39,495 | 3,265 |
Dispositions | (189) | |
Balance ending | 45,278 | 5,783 |
Leasehold improvements [Member] | Accumulated Depreciation [Member] | ||
Cost | ||
Balance beginning | 1,560 | 1,861 |
Depreciation | 1,703 | 396 |
Dispositions | (148) | |
Impairment | 13,107 | |
Impairment on deposits transferred to PPE | 5,266 | |
Balance ending | 21,636 | 1,560 |
Accumulated Depreciation | ||
Impairment reversal | (549) | |
Leasehold improvements [Member] | Net Book Value [Member] | ||
Accumulated Depreciation | ||
Net book value as of December 31 | 23,642 | 4,223 |
Vehicles [Member] | Cost [Member] | ||
Cost | ||
Balance beginning | 547 | |
Additions | 552 | |
Dispositions | (17) | |
Balance ending | 1,082 | 547 |
Vehicles [Member] | Accumulated Depreciation [Member] | ||
Cost | ||
Balance beginning | 264 | |
Depreciation | 124 | |
Dispositions | (13) | |
Impairment | 151 | |
Balance ending | 526 | 264 |
Vehicles [Member] | Net Book Value [Member] | ||
Accumulated Depreciation | ||
Net book value as of December 31 | 556 | |
Vehicles [member] | Cost [Member] | ||
Cost | ||
Balance beginning | 547 | 448 |
Additions | 136 | |
Dispositions | (37) | |
Balance ending | 547 | |
Vehicles [member] | Accumulated Depreciation [Member] | ||
Cost | ||
Balance beginning | $ 264 | 213 |
Depreciation | 79 | |
Dispositions | (28) | |
Balance ending | 264 | |
Vehicles [member] | Net Book Value [Member] | ||
Accumulated Depreciation | ||
Net book value as of December 31 | $ 283 |
Property, Plant and Equipment_4
Property, Plant and Equipment (Details) - Schedule of quantity of BVVE held by the company $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | ||
Property, Plant and Equipment (Details) - Schedule of quantity of BVVE held by the company [Line Items] | ||
Quantity as of January 1, 2022 | $ 41,390 | |
Additions | 29,300 | |
Dispositions | (12,432) | |
Quantity as of December 31, 2022 | 58,258 | |
Classified as assets held for sale | (3,784) | |
Presented as ROU asset**** | (3,000) | [1] |
Presented as property, plant and equipment | 51,474 | |
MicroBT Whatsminer [Member] | ||
Property, Plant and Equipment (Details) - Schedule of quantity of BVVE held by the company [Line Items] | ||
Quantity as of January 1, 2022 | 18,675 | [2] |
Additions | 28,499 | [2] |
Dispositions | (1,799) | [2] |
Quantity as of December 31, 2022 | 45,375 | [2] |
Classified as assets held for sale | (2,512) | [2] |
Presented as ROU asset**** | (3,000) | [1],[2] |
Presented as property, plant and equipment | 39,863 | [2] |
Bitmain S19j Pro [Member] | ||
Property, Plant and Equipment (Details) - Schedule of quantity of BVVE held by the company [Line Items] | ||
Quantity as of January 1, 2022 | 7,172 | |
Additions | ||
Dispositions | ||
Quantity as of December 31, 2022 | 7,172 | |
Classified as assets held for sale | ||
Presented as ROU asset**** | [1] | |
Presented as property, plant and equipment | 7,172 | |
Innosilicon T3 & T2T [Member] | ||
Property, Plant and Equipment (Details) - Schedule of quantity of BVVE held by the company [Line Items] | ||
Quantity as of January 1, 2022 | 6,446 | [3] |
Additions | [3] | |
Dispositions | (735) | [3] |
Quantity as of December 31, 2022 | 5,711 | [3] |
Classified as assets held for sale | (1,272) | [3] |
Presented as ROU asset**** | [1],[3] | |
Presented as property, plant and equipment | 4,439 | [3] |
Canaan Avalon A10 [Member] | ||
Property, Plant and Equipment (Details) - Schedule of quantity of BVVE held by the company [Line Items] | ||
Quantity as of January 1, 2022 | 1,024 | |
Additions | ||
Dispositions | (1,024) | |
Quantity as of December 31, 2022 | ||
Classified as assets held for sale | ||
Presented as ROU asset**** | [1] | |
Presented as property, plant and equipment | ||
Bitmain S19XP [Member] | ||
Property, Plant and Equipment (Details) - Schedule of quantity of BVVE held by the company [Line Items] | ||
Quantity as of January 1, 2022 | ||
Additions | 801 | |
Dispositions | (801) | |
Quantity as of December 31, 2022 | ||
Classified as assets held for sale | ||
Presented as ROU asset**** | [1] | |
Presented as property, plant and equipment | ||
Other Bitmain Antminers [Member] | ||
Property, Plant and Equipment (Details) - Schedule of quantity of BVVE held by the company [Line Items] | ||
Quantity as of January 1, 2022 | 8,073 | [4] |
Additions | [4] | |
Dispositions | (8,073) | [4] |
Quantity as of December 31, 2022 | [4] | |
Classified as assets held for sale | [4] | |
Presented as ROU asset**** | [1],[4] | |
Presented as property, plant and equipment | [4] | |
[1]Includes 3,000 Whatsminer M31S+ with a net book value of approximately $3,330 as described in Note 18.[2]Includes 2,512 M20S classified as assets held for sale as described in Note 10, 30,210 M30S, 6,391 M31S and 6,262 M31S+ Miners.[3]Includes 4,439 T3 and 1,272 T2T Miners classified as assets held for sale as described in Note 10.[4]Included Antminer T15 and Antminer S15 Miners classified as assets held for sale and written off as described in Note 10. |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Intangible assets - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cost | ||
Cost at beginning balance | $ 6,950 | $ 5,150 |
Cost, Additions through business combination | 1,800 | |
Cost, Measurement period adjustment to business combination | 200 | |
Cost at ending balance | 7,150 | 6,950 |
Accumulated amortization | ||
Accumulated amortization at beginning balance | 5,269 | 4,773 |
Accumulated amortization, Amortization | 1,848 | 496 |
Accumulated amortization at ending balance | 7,117 | 5,269 |
Net book value | 33 | 1,681 |
Systems software [Member] | ||
Cost | ||
Cost at beginning balance | 5,150 | 5,150 |
Cost, Additions through business combination | ||
Cost, Measurement period adjustment to business combination | ||
Cost at ending balance | 5,150 | 5,150 |
Accumulated amortization | ||
Accumulated amortization at beginning balance | 5,008 | 4,773 |
Accumulated amortization, Amortization | 109 | 235 |
Accumulated amortization at ending balance | 5,117 | 5,008 |
Net book value | 33 | 142 |
Favorable lease [Member] | ||
Cost | ||
Cost at beginning balance | 1,800 | |
Cost, Additions through business combination | 1,800 | |
Cost, Measurement period adjustment to business combination | 200 | |
Cost at ending balance | 2,000 | 1,800 |
Accumulated amortization | ||
Accumulated amortization at beginning balance | 261 | |
Accumulated amortization, Amortization | 1,739 | 261 |
Accumulated amortization at ending balance | 2,000 | 261 |
Net book value | $ 1,539 |
Long-Term Deposits, Equipment_3
Long-Term Deposits, Equipment Prepayments, Other and Commitments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Long-Term Deposits, Equipment Prepayments, Other and Commitments (Details) [Line Items] | |
Deposit | $ 22,376 |
Construction amount | $ 8,780 |
Lease agreement, description | the Company recognized an impairment loss of $30,199 on the equipment and construction prepayments. |
Commitments, description | the Company renegotiated its 48,000 unit purchase agreements by extinguishing the outstanding commitments of $45,350 without penalty and establishing a $22,376 credit for deposits previously made which will be carried forward until the end of 2023 and applied against future purchase agreements. As of December 31, 2022, the Company no longer had commitments. |
BVVE [Member] | |
Long-Term Deposits, Equipment Prepayments, Other and Commitments (Details) [Line Items] | |
Deposit | $ 23,450 |
Long-Term Deposits, Equipment_4
Long-Term Deposits, Equipment Prepayments, Other and Commitments (Details) - Schedule of long-term deposits, equipment prepayments, other and commitments - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Long Term Deposits Equipment Prepayments Other and Commitments [Abstract] | ||
VAT receivable | $ 2,083 | $ 2,067 |
Security deposits for energy, insurance and rent | 3,872 | 1,555 |
Equipment and construction prepayments | 32,230 | 83,059 |
Total | $ 38,185 | $ 86,681 |
Trade Payables and Accrued Li_3
Trade Payables and Accrued Liabilities (Details) - Schedule of trade payables and accrued liabilities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Trade Payables and Accrued Liabilities [Abstract] | ||
Trade accounts payable and accrued liabilities | $ 12,897 | $ 9,873 |
Government remittances | 7,644 | 4,607 |
Total | $ 20,541 | $ 14,480 |
Credit Facility (Details)
Credit Facility (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Sep. 29, 2022 | Jun. 30, 2022 | Dec. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Credit Facility [Abstract] | ||||||
Credit facility amount | $ 100,000 | |||||
Facility bears interest | 10.75% | |||||
Unused fees | 0.75% | |||||
Unused portion credit facility | $ 100,000 | |||||
Credit facility, description | The Facility was secured by BTC, with the value of BTC pledged as collateral calculated as a percentage of the amount borrowed. | |||||
Drawn credit facility | $ 60,000 | |||||
Fair market value | $ 86,825 | |||||
Company drew | $ 40,000 | |||||
Credit facility | $ 100,000 | |||||
First amendment, description | the Company amended its Credit Facility and extended its maturity date to October 1, 2022. Under the new terms, the maximum limit of the amended Facility is $40,000, bears interest at 11.25% per annum and has a commitment fee of 0.25% per annum charged on the unused portion of the Facility. The amended Facility also includes a provision which allows the Company to repay up to $15,000 of the Facility prior to July 30, 2022, without incurring any prepayment penalty. | |||||
Second amendment, description | the Company amended its Credit Facility and extended its maturity date from October 1, 2022 to December 29, 2022. Under the new terms, the maximum limit of the amended Facility is $40,000, bears interest at 11.25% per annum and has a commitment fee of 0.25% per annum charged on the unused portion of the Facility. The amended Facility also includes a provision which allows the Company to prepay the Credit Facility with a prepayment fee of 50% of the remaining interest that would be owed if the Facility was held to maturity. | |||||
Credit facility | $ 100,000 |
Credit Facility (Details) - Sch
Credit Facility (Details) - Schedule of credit facility - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Credit Facility [Abstract] | ||
Revolving credit facility | $ 60,000 | |
Interest payable on revolving credit facility | 2 | |
Total credit facility | $ 60,002 |
Long-Term Debt (Details)
Long-Term Debt (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||||||||
Mar. 15, 2019 USD ($) | Jun. 30, 2022 USD ($) Miners | Feb. 28, 2022 USD ($) Miners | Jun. 30, 2021 Miners | Jan. 31, 2021 USD ($) shares | Sep. 30, 2020 | May 31, 2021 Miners | Feb. 28, 2021 USD ($) shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Feb. 08, 2023 USD ($) | |
Long-Term Debt (Details) [Line Items] | |||||||||||
Gross proceeds | $ 36,860 | $ 32,000 | |||||||||
Gross proceeds units (in Miners) | Miners | 10,395 | 6,100,000 | |||||||||
Net proceeds | $ 36,123 | $ 30,994 | |||||||||
Closing transaction fees | $ 737 | $ 1,006 | |||||||||
Long term debt | $ 47,147 | $ 11,167 | |||||||||
Collateral market fair value | 2,070 | ||||||||||
Lease agreements units (in Miners) | Miners | 4,000 | ||||||||||
Reclassified from lease liabilities debt | 3,904 | ||||||||||
Number of tranches | 4 | ||||||||||
Proceeds from warrants | $ 54,086 | 259,174 | |||||||||
Interest expense, loan | 472 | ||||||||||
Subsequent Events [Member] | |||||||||||
Long-Term Debt (Details) [Line Items] | |||||||||||
Cash consideration | $ 7,750 | ||||||||||
Long term debt | $ 12,578 | ||||||||||
Foundry Loans [Member] | |||||||||||
Long-Term Debt (Details) [Line Items] | |||||||||||
Loan agreements units (in Miners) | Miners | 2,465 | ||||||||||
Warrants [Member] | |||||||||||
Long-Term Debt (Details) [Line Items] | |||||||||||
Warrants issuance common shares (in Shares) | shares | 5,251,000 | ||||||||||
Proceeds from warrants | $ 1,500 | ||||||||||
Warrant exercises (in Shares) | shares | 1,667,000 | ||||||||||
Warrants issuance (in Shares) | shares | 1,501,000 | ||||||||||
Net financial expenses | 2,466 | ||||||||||
Embedded Derivative [Member] | |||||||||||
Long-Term Debt (Details) [Line Items] | |||||||||||
Net financial expenses | $ 2,641 | ||||||||||
Dominion Capital LLC [Member] | |||||||||||
Long-Term Debt (Details) [Line Items] | |||||||||||
Secured debt | $ 20,000 | ||||||||||
Tranches loan | $ 5,000 | ||||||||||
Tranche bears interest | 10% | ||||||||||
Term of loan tranche | 24 months | ||||||||||
Convertible debt | $ 5,000 | ||||||||||
Common shares issued (in Shares) | shares | 8,475,000 | ||||||||||
Bottom of Range [Member] | Dominion Capital LLC [Member] | |||||||||||
Long-Term Debt (Details) [Line Items] | |||||||||||
Loan's maturity date, description | the Company entered into an agreement with Dominion Capital to amend the maturity date of tranche #2 from April 2021 to November 2021. |
Long-Term Debt (Details) - Sche
Long-Term Debt (Details) - Schedule of long-term debt - USD ($) $ in Thousands | Dec. 31, 2022 | Feb. 18, 2022 | Dec. 31, 2021 |
Schedule of Long Term Debt [Abstract] | |||
Equipment financing | $ 47,020 | $ 32,000 | $ 11,039 |
Volta note payable | 127 | 128 | |
Total long-term debt | 47,147 | 11,167 | |
Less current portion of long-term debt | (43,054) | (10,257) | |
Non-current portion of long-term debt | $ 4,093 | $ 910 |
Long-Term Debt (Details) - Sc_2
Long-Term Debt (Details) - Schedule of movement in long-term debt - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Movement in Long Term Debt [Abstract] | ||
Beginning, Balance | $ 11,167 | $ 17,345 |
Conversion of lease liabilities | 3,904 | |
Issuance of long-term debt | 67,201 | 14,227 |
Payments | (38,532) | (22,382) |
Interest on long-term debt | 7,311 | 1,883 |
Conversion of long-term debt and loan modification | (5,000) | |
Derecognition of embedded derivative | 1,190 | |
Ending, Balance | $ 47,147 | $ 11,167 |
Long-Term Debt (Details) - Sc_3
Long-Term Debt (Details) - Schedule of equipment financing and balance of the loans and the net book value (NBV) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | ||
Long-Term Debt (Details) - Schedule of equipment financing and balance of the loans and the net book value (NBV) [Line Items] | ||
Monthly repayment | $ 3,780 | |
Long-term debt balance | 47,020 | |
NBV of Collateral | 66,741 | |
Collateral | $ 17,495 | [1] |
Foundry loan #2 [Member] | ||
Long-Term Debt (Details) - Schedule of equipment financing and balance of the loans and the net book value (NBV) [Line Items] | ||
Maturity date | 2023-03 | |
Stated rate | 16.50% | |
Effective rate | 16.50% | [2] |
Monthly repayment | $ 94 | |
Long-term debt balance | 185 | |
NBV of Collateral | 1,254 | |
Collateral | $ 300 | [1] |
Foundry loan #3 [Member] | ||
Long-Term Debt (Details) - Schedule of equipment financing and balance of the loans and the net book value (NBV) [Line Items] | ||
Maturity date | 2023-04 | |
Stated rate | 16.50% | |
Effective rate | 16.50% | [2] |
Monthly repayment | $ 88 | |
Long-term debt balance | 257 | |
NBV of Collateral | 1,044 | |
Collateral | $ 300 | [1] |
Foundry loan #4 [Member] | ||
Long-Term Debt (Details) - Schedule of equipment financing and balance of the loans and the net book value (NBV) [Line Items] | ||
Maturity date | 2023-05 | |
Stated rate | 16.50% | |
Effective rate | 16.50% | [2] |
Monthly repayment | $ 100 | |
Long-term debt balance | 387 | |
NBV of Collateral | 1,231 | |
Collateral | $ 400 | [1] |
Blockfi Loan [Member] | ||
Long-Term Debt (Details) - Schedule of equipment financing and balance of the loans and the net book value (NBV) [Line Items] | ||
Maturity date | 2024-02 | |
Stated rate | 14.50% | |
Effective rate | 18.10% | [2] |
Monthly repayment | $ 1,455 | |
Long-term debt balance | 19,952 | |
NBV of Collateral | 28,360 | |
Collateral | $ 6,100 | [1] |
NYDIG Loan [Member] | ||
Long-Term Debt (Details) - Schedule of equipment financing and balance of the loans and the net book value (NBV) [Line Items] | ||
Maturity date | 2024-02 | |
Stated rate | 12% | |
Effective rate | 14.40% | [2] |
Monthly repayment | $ 2,043 | |
Long-term debt balance | 26,239 | |
NBV of Collateral | 34,852 | |
Collateral | $ 10,395 | [1] |
[1]Represents the quantity of Whatsminers and Bitmain S19j Pros received in connection with the equipment financing and pledged as collateral for the related loan.[2]Represents the implied interest rate after capitalizing financing and origination fees. |
Leases (Details)
Leases (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) shares | |
Leases [Abstract] | ||
Number of mining hardware | 3,000 | |
Property, plant and equipment net value | $ 3,330 | |
Impairment loss | $ 2,034 | |
Lease activity, description | the Company modified the terms of three two-year lease agreements for mining hardware, with a balance of $3,904 at the time of conversion, in June 2021, resulting in the lease liabilities being reclassified to long-term debt as described in Note 17b. No changes were made to the payment terms, interest rate or security interest of the former leases. As of December 31, 2021, the Company maintained one lease agreement for mining hardware, consisting of 3,000 Whatsminer M31S+, with a net book value of approximately $5,422, classified as property, plant and equipment under BVVE and electrical equipment. | |
Warrants issued (in Shares) | shares | 468,000 | |
Total cost | $ 2,160 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of right-of-use assets and lease liabilities - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Leased premises [Member] | |||
Leases (Details) - Schedule of right-of-use assets and lease liabilities [Line Items] | |||
Beginning balance | $ 9,038 | $ 5,129 | |
Additions and extensions to ROU assets | 9,526 | 5,713 | |
Additions to property, plant and equipment | |||
Depreciation | (1,975) | (1,040) | |
Lease termination | (104) | (764) | |
Lease liabilities converted to long-term debt | |||
Impairment | (791) | ||
Payments | |||
Issuance of warrants | |||
Interest | |||
Foreign exchange | |||
Ending balance | 15,694 | 9,038 | |
Vehicles [member] | |||
Leases (Details) - Schedule of right-of-use assets and lease liabilities [Line Items] | |||
Beginning balance | 283 | 180 | |
Additions and extensions to ROU assets | 118 | 205 | |
Additions to property, plant and equipment | |||
Depreciation | (129) | (99) | |
Lease termination | (7) | (3) | |
Lease liabilities converted to long-term debt | |||
Impairment | |||
Payments | |||
Issuance of warrants | |||
Interest | |||
Foreign exchange | |||
Ending balance | 265 | 283 | |
Other property, plant and equipment [member] | |||
Leases (Details) - Schedule of right-of-use assets and lease liabilities [Line Items] | |||
Beginning balance | 76 | 84 | |
Additions and extensions to ROU assets | 1,693 | 21 | |
Additions to property, plant and equipment | |||
Depreciation | (121) | (29) | |
Lease termination | |||
Lease liabilities converted to long-term debt | |||
Impairment | (1,243) | ||
Payments | |||
Issuance of warrants | |||
Interest | |||
Foreign exchange | |||
Ending balance | 405 | 76 | |
Total ROU assets [Member] | |||
Leases (Details) - Schedule of right-of-use assets and lease liabilities [Line Items] | |||
Beginning balance | 9,397 | 5,393 | |
Additions and extensions to ROU assets | 11,337 | 5,939 | |
Additions to property, plant and equipment | |||
Depreciation | (2,225) | (1,168) | |
Lease termination | (111) | (767) | |
Lease liabilities converted to long-term debt | |||
Impairment | (2,034) | ||
Payments | |||
Issuance of warrants | |||
Interest | |||
Foreign exchange | |||
Ending balance | 16,364 | 9,397 | |
Lease liabilities [member] | |||
Leases (Details) - Schedule of right-of-use assets and lease liabilities [Line Items] | |||
Beginning balance | 13,573 | 11,023 | |
Additions and extensions to ROU assets | 11,354 | 5,911 | |
Additions to property, plant and equipment | 7,786 | ||
Depreciation | |||
Lease termination | (112) | (892) | |
Lease liabilities converted to long-term debt | (3,904) | ||
Impairment | |||
Payments | (7,528) | (5,746) | |
Issuance of warrants | (2,160) | ||
Interest | 1,451 | 1,513 | |
Foreign exchange | (874) | 42 | |
Ending balance | $ 17,864 | 13,573 | |
Non-current portion of lease liabilities | 9,227 | $ 14,215 | |
Less current portion of lease liabilities | $ (4,346) | $ (3,649) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Income Taxes [Abstract] | ||
Deferred tax rate | 26.50% | |
Net deferred tax assets | $ 49,508 | $ (3,655) |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of current and deferred income tax expense (recovery) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current tax (recovery) expense: | ||
Current year | $ (9,030) | $ 12,358 |
Prior year | 68 | (693) |
Total current tax | (8,962) | 11,665 |
Deferred tax (recovery) expense: | ||
Current year | (8,446) | 8,665 |
Prior year | (4) | 177 |
Tax total | (8,450) | 8,842 |
Total deferred tax | $ (17,412) | $ 20,507 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of effective tax rate - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Effective Tax Rate [Abstract] | ||
Income tax recovery at statutory rate, amount | $ (67,962) | $ 11,299 |
Income tax recovery at statutory rate, percentage | 26.50% | 26.50% |
Increase (decrease) in taxes resulting from: | ||
Foreign tax rate differential, amount | $ 1,070 | $ 383 |
Foreign tax rate differential, percentage | (0.40%) | 0.90% |
Prior year, amount | $ 64 | $ (516) |
Prior year, percentage | (1.20%) | |
Non-deductible expenses and other, amount | $ (92) | $ 12,996 |
Non-deductible expenses and other, percentage | 30.50% | |
Deferred tax asset not recognized, amount | $ 49,508 | $ (3,655) |
Deferred tax asset not recognized, percentage | (19.30%) | (8.60%) |
Effective tax rate, amount | $ (17,412) | $ 20,507 |
Effective tax rate, percentage | 6.80% | 48.10% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of effective tax rate (Parentheticals) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Effective Tax Rate [Abstract] | ||
Statutory rate | 26.50% | 26.50% |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of deferred tax asset - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes (Details) - Schedule of deferred tax asset [Line Items] | ||
Balance beginning | $ 8,742 | $ 3,837 |
Credited (charged) to statements of profit or loss | (3,037) | |
Credited to statements of equity | 4,287 | |
Deferred tax asset recognized in the statements of profit or loss | 3,655 | |
Balance ending | 27,448 | 8,742 |
Credited to statements of profit or loss | 72,109 | |
Deferred tax asset derecognized in the statements of profit or loss | (49,508) | |
Deferred tax asset derecognized in the statements of equity | (3,895) | |
Operating losses carried forward [Member] | ||
Income Taxes (Details) - Schedule of deferred tax asset [Line Items] | ||
Balance beginning | 663 | |
Credited (charged) to statements of profit or loss | (4,318) | |
Credited to statements of equity | ||
Deferred tax asset recognized in the statements of profit or loss | 3,655 | |
Balance ending | ||
Credited to statements of profit or loss | 43,713 | |
Deferred tax asset derecognized in the statements of profit or loss | (43,713) | |
Deferred tax asset derecognized in the statements of equity | ||
Lease liability [Member] | ||
Income Taxes (Details) - Schedule of deferred tax asset [Line Items] | ||
Balance beginning | 3,141 | 2,905 |
Credited (charged) to statements of profit or loss | 236 | |
Credited to statements of equity | ||
Deferred tax asset recognized in the statements of profit or loss | ||
Balance ending | 4,161 | 3,141 |
Credited to statements of profit or loss | 1,020 | |
Deferred tax asset derecognized in the statements of profit or loss | ||
Deferred tax asset derecognized in the statements of equity | ||
Asset Retirement provision [Member] | ||
Income Taxes (Details) - Schedule of deferred tax asset [Line Items] | ||
Balance beginning | 84 | 55 |
Credited (charged) to statements of profit or loss | 29 | |
Credited to statements of equity | ||
Deferred tax asset recognized in the statements of profit or loss | ||
Balance ending | 126 | 84 |
Credited to statements of profit or loss | 42 | |
Deferred tax asset derecognized in the statements of profit or loss | ||
Deferred tax asset derecognized in the statements of equity | ||
Financing fees [Member] | ||
Income Taxes (Details) - Schedule of deferred tax asset [Line Items] | ||
Balance beginning | 3,751 | 214 |
Credited (charged) to statements of profit or loss | (750) | |
Credited to statements of equity | 4,287 | |
Deferred tax asset recognized in the statements of profit or loss | ||
Balance ending | 3,751 | |
Credited to statements of profit or loss | 144 | |
Deferred tax asset derecognized in the statements of profit or loss | ||
Deferred tax asset derecognized in the statements of equity | (3,895) | |
PPE [Member] | ||
Income Taxes (Details) - Schedule of deferred tax asset [Line Items] | ||
Balance beginning | 478 | |
Credited (charged) to statements of profit or loss | 478 | |
Credited to statements of equity | ||
Deferred tax asset recognized in the statements of profit or loss | ||
Balance ending | 10,538 | 478 |
Credited to statements of profit or loss | 15,855 | |
Deferred tax asset derecognized in the statements of profit or loss | (5,795) | |
Deferred tax asset derecognized in the statements of equity | ||
Reserves and other [Member] | ||
Income Taxes (Details) - Schedule of deferred tax asset [Line Items] | ||
Balance beginning | 1,288 | |
Credited (charged) to statements of profit or loss | 1,288 | |
Credited to statements of equity | ||
Deferred tax asset recognized in the statements of profit or loss | ||
Balance ending | 12,623 | $ 1,288 |
Credited to statements of profit or loss | 11,335 | |
Deferred tax asset derecognized in the statements of profit or loss | ||
Deferred tax asset derecognized in the statements of equity |
Income Taxes (Details) - Sche_5
Income Taxes (Details) - Schedule of deferred tax liability - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes (Details) - Schedule of deferred tax liability [Line Items] | ||
Balance beginning | $ 13,297 | $ 3,837 |
Charged to statements of profit or loss | 14,151 | 9,460 |
Balance ending | 27,448 | 13,297 |
PPE [Member] | ||
Income Taxes (Details) - Schedule of deferred tax liability [Line Items] | ||
Balance beginning | 9,287 | 902 |
Charged to statements of profit or loss | 12,231 | 8,385 |
Balance ending | 21,518 | 9,287 |
ROU Asset [Member] | ||
Income Taxes (Details) - Schedule of deferred tax liability [Line Items] | ||
Balance beginning | 4,010 | 2,935 |
Charged to statements of profit or loss | 1,920 | 1,075 |
Balance ending | $ 5,930 | $ 4,010 |
Asset Retirement Provision (Det
Asset Retirement Provision (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Asset Retirement Provision [Abstract] | |
Asset retirement provision, description | the Company estimated the costs of restoring its leased premises to their original state at the end of their respective lease terms to be $3,950 (December 31, 2021: $391), discounted to present value of $1,979 (December 31, 2021: $239) using discount rates between 7% and 10% (December 31, 2021: 8%) over the lease periods, which were estimated to range from seven to ten years depending on the location. |
Asset Retirement Provision (D_2
Asset Retirement Provision (Details) - Schedule of asset retirement provision - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Asset Retirement Provision [Abstract] | ||
Balance as of January 1, | $ 239 | $ 209 |
Additions during the period | 1,701 | 91 |
Accretion expense | 93 | 19 |
Effect of change in the foreign exchange rate | (54) | |
Balance as of December 31, | 1,979 | 319 |
Less current portion of asset retirement provision included in accounts payable and accrued liabilities | (80) | |
Non-current portion of asset retirement provision | $ 1,979 | $ 239 |
Share Capital (Details)
Share Capital (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2021 USD ($) shares | Aug. 16, 2021 USD ($) | Mar. 31, 2021 USD ($) shares | Feb. 28, 2021 USD ($) shares | Feb. 28, 2021 CAD ($) shares | Jan. 31, 2021 USD ($) shares | Mar. 31, 2021 USD ($) $ / shares shares | May 31, 2021 CAD ($) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Share Capital (Details) [Line Items] | ||||||||||
Weighted average contractual life, term | 1 year 4 months 24 days | 2 years 4 months 24 days | ||||||||
Cash consideration (in Dollars) | $ | $ 1,783 | |||||||||
Issuance of warrants granted | 25,000 | |||||||||
Strike price per share (in Dollars per share) | $ / shares | $ 3.47 | |||||||||
Contractual life, term | 2 years | |||||||||
Gross proceeds | $ 16,268 | $ 15,587 | $ 20,611 | $ 26,172 | $ 55,178 | |||||
Other transaction fees (in Dollars) | $ | $ 186 | |||||||||
Conversion of debt (in Dollars) | $ | $ 5,000 | |||||||||
Common shares | 8,475,000 | |||||||||
Warrants outstanding | 5,251,000 | 5,251,000 | 5,251,000 | |||||||
Common shares proceeds (in Dollars) | $ | $ 1,500 | $ 1,500 | ||||||||
Warrant exercises, description | The warrant exercises described above include the cashless exercise of 1,667,000 warrants resulting in the issuance of 1,501,000 common shares. | The warrant exercises described above include the cashless exercise of 1,667,000 warrants resulting in the issuance of 1,501,000 common shares. | ||||||||
Number of private placements | 4 | |||||||||
Common shares issued | 5,405,000 | 5,028,000 | 9,504,000 | 9,504,000 | 20,737,000 | |||||
Warrants share issued | 8,889,000 | 8,889,000 | 468,000 | |||||||
Broken warrant issued | 615,000 | 615,000 | ||||||||
Broken warrants related to private placement | 711,000 | 711,000 | 20,737,000 | |||||||
Warrants related to private placements | 5,405,000 | 5,028,000 | ||||||||
Exercise price per share (in Dollars per share) | $ / shares | $ 0.4 | |||||||||
Total cost (in Dollars) | $ | $ 2,160 | |||||||||
Other common shares issued | 2,000 | |||||||||
Common Shares [Member] | ||||||||||
Share Capital (Details) [Line Items] | ||||||||||
Common stock, shares issued | 224,200,000 | 194,806,000 | ||||||||
Common stock, shares outstanding | 224,200,000 | 194,806,000 | ||||||||
Private Placements [Member] | ||||||||||
Share Capital (Details) [Line Items] | ||||||||||
Gross proceeds | $ | $ 2,712 | |||||||||
Total gross proceeds (in Dollars) | $ | $ 155,000 | |||||||||
Common shares issued | 800,000 | 40,187,000 | ||||||||
Warrants to purchase common shares | 36,649,000 | |||||||||
Broken warrant issued | 800,000 | 800,000 | ||||||||
Broken warrants related to private placement | 925,000 | |||||||||
Employee Stock Options [Member] | ||||||||||
Share Capital (Details) [Line Items] | ||||||||||
Gross proceeds | $ | $ 21 | $ 6,177 | ||||||||
Employees exercised stock options | 70,000 | 6,074,000 | ||||||||
Additional common shares | 415,000 | |||||||||
At-The-Market Equity Program [Member] | ||||||||||
Share Capital (Details) [Line Items] | ||||||||||
Common stock, shares issued | 29,324,000 | 23,923,000 | ||||||||
Receiving aggregate proceeds (in Dollars) | $ | $ 500,000 | |||||||||
Gross proceeds | $ | $ 55,960 | $ 150,296 | ||||||||
Share price (in Dollars per share) | $ / shares | $ 1.91 | $ 6.28 | ||||||||
Net proceeds (in Dollars) | $ | $ 54,086 | $ 145,601 | ||||||||
Agent commission (in Dollars) | $ | 1,791 | $ 4,509 | ||||||||
Other transaction costs (in Dollars) | $ | $ 83 |
Share Capital (Details) - Sched
Share Capital (Details) - Schedule of outstanding warrants - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of warrants [Member] | ||
Share Capital (Details) - Schedule of outstanding warrants [Line Items] | ||
Number of warrants, Outstanding beginning balance | 19,428,000 | 6,053,000 |
Number of warrants, Granted | 25,000 | 40,332,000 |
Number of warrants, Exercised | (26,957,000) | |
Number of warrants, Expired | (300,000) | |
Number of warrants, Outstanding ending balance | 19,153,000 | 19,428,000 |
Weighted average exercise price [Member] | ||
Share Capital (Details) - Schedule of outstanding warrants [Line Items] | ||
Weighted average exercise price, Outstanding beginning balance | $ 4.16 | $ 0.41 |
Weighted average exercise price, Granted | 3.47 | 3.37 |
Weighted average exercise price, Exercised | 2.13 | |
Weighted average exercise price, Expired | 1.19 | |
Weighted average exercise price, Outstanding ending balance | $ 4.21 | $ 4.16 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Financial Instruments [Abstract] | ||
Currency increase decrease percentage | 5% | |
Increase or decrease of retained earning | $ 215 | $ 18 |
Financial Instruments (Detail_2
Financial Instruments (Details) - Schedule of carrying values and the fair value of assets and liabilities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets at amortized cost | ||
Cash | $ 30,887 | $ 125,595 |
Trade receivables | 701 | 1,038 |
Insurance refund and other receivables | 108 | 697 |
Total carrying amount and fair value | 31,696 | 127,330 |
Financial liabilities at amortized cost | ||
Trade payables and accrued liabilities | 20,541 | 14,480 |
Long-term debt | 47,147 | 11,167 |
Credit Facility | 60,002 | |
Total carrying amount and fair value | 67,688 | 85,649 |
Net carrying amount and fair value | $ (35,992) | $ 41,681 |
Financial Instruments (Detail_3
Financial Instruments (Details) - Schedule of foreign currency risk - Foreign currency risk [Member] $ in Thousands, $ in Thousands | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 ARS ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 ARS ($) |
Financial Instruments (Details) - Schedule of foreign currency risk [Line Items] | ||||
Cash | $ 4,994 | $ 1,297 | $ 3,475 | $ 952 |
Other assets | 675 | 23 | ||
Trade receivables | 609 | 1,038 | ||
Trade payables and accrued liabilities | (6,228) | (4,849) | (4,964) | (718) |
Long-term debt | (126) | (126) | ||
Foreign currency risk | $ (751) | $ (3,552) | $ 98 | $ 257 |
Financial Instruments (Detail_4
Financial Instruments (Details) - Schedule of contractual maturities of financial liabilities and lease liabilities (non-financial liabilities) $ in Thousands | Dec. 31, 2022 USD ($) |
Financial Instruments (Details) - Schedule of contractual maturities of financial liabilities and lease liabilities (non-financial liabilities) [Line Items] | |
Trade payables and accrued liabilities | $ 20,541 |
Long-term debt | 49,832 |
Lease liabilities | 21,690 |
Non-financial liabilities | 92,063 |
2023 [Member] | |
Financial Instruments (Details) - Schedule of contractual maturities of financial liabilities and lease liabilities (non-financial liabilities) [Line Items] | |
Trade payables and accrued liabilities | 20,541 |
Long-term debt | 45,747 |
Lease liabilities | 4,333 |
Non-financial liabilities | 70,621 |
2024 [Member] | |
Financial Instruments (Details) - Schedule of contractual maturities of financial liabilities and lease liabilities (non-financial liabilities) [Line Items] | |
Trade payables and accrued liabilities | |
Long-term debt | 4,085 |
Lease liabilities | 3,587 |
Non-financial liabilities | 7,672 |
2025 [Member] | |
Financial Instruments (Details) - Schedule of contractual maturities of financial liabilities and lease liabilities (non-financial liabilities) [Line Items] | |
Trade payables and accrued liabilities | |
Long-term debt | |
Lease liabilities | 2,493 |
Non-financial liabilities | 2,493 |
2026 [Member] | |
Financial Instruments (Details) - Schedule of contractual maturities of financial liabilities and lease liabilities (non-financial liabilities) [Line Items] | |
Trade payables and accrued liabilities | |
Long-term debt | |
Lease liabilities | 2,408 |
Non-financial liabilities | 2,408 |
2027 and thereafter [Member] | |
Financial Instruments (Details) - Schedule of contractual maturities of financial liabilities and lease liabilities (non-financial liabilities) [Line Items] | |
Trade payables and accrued liabilities | |
Long-term debt | |
Lease liabilities | 8,869 |
Non-financial liabilities | $ 8,869 |
Transactions and Balances wit_3
Transactions and Balances with Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Transactions and Balances with Related Parties [Abstract] | ||
Rent payments | $ 273 | $ 475 |
Consulting fees | $ 1,267 | 625 |
Accrued and included trade payables | 1,466 | |
Accrued liabilities |
Transactions and Balances wit_4
Transactions and Balances with Related Parties (Details) - Schedule of balances with related parties - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Trade payables and accrued liabilities | ||
Directors’ remuneration | $ 1,522 | $ 19 |
Director and senior management incentive plan | 95 | 1,465 |
Total trade payables | 1,617 | 1,484 |
Lease liabilities | ||
Companies controlled by directors | $ 1,357 |
Transactions and Balances wit_5
Transactions and Balances with Related Parties (Details) - Schedule of consolidated statements of profit or loss and comprehensive profit and loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of consolidated statements of profit or loss and comprehensive profit and loss [Abstract] | ||
General and administrative expenses | $ 2,733 | $ 625 |
Net financial expenses | 70 | 126 |
Total | $ 2,803 | $ 751 |
Transactions and Balances wit_6
Transactions and Balances with Related Parties (Details) - Schedule of compensation of key management and directors - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule of compensation of key management and directors [Abstract] | |||
Short-term benefits | [1] | $ 48 | $ 5,004 |
Termination payments | 1,466 | ||
Share-based payments | 19,077 | 21,174 | |
Total | $ 20,591 | $ 26,178 | |
[1]Short-term benefits includes an incentive plan adopted by the Company in 2021 to reward certain directors and members of senior management with a total of 50 BTC. |
Subsidiaries (Details)
Subsidiaries (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Disclosure of Subsidiaries [Abstract] | |
Mineral assets with a carrying amount | $ 3,000 |
Subsidiaries (Details) - Schedu
Subsidiaries (Details) - Schedule of significant subsidiaries | 12 Months Ended |
Dec. 31, 2022 | |
Bitfarms Ltd. (Israel) [Member] | |
Subsidiaries (Details) - Schedule of significant subsidiaries [Line Items] | |
Security type | Ordinary shares |
Main place of business | CDA |
Securities | 100% |
Equity | 100% |
Voting | 100% |
Volta [Member] | |
Subsidiaries (Details) - Schedule of significant subsidiaries [Line Items] | |
Security type | Ordinary shares |
Main place of business | CDA |
Securities | 100% |
Equity | 100% |
Voting | 100% |
Backbone [Member] | |
Subsidiaries (Details) - Schedule of significant subsidiaries [Line Items] | |
Security type | Ordinary shares |
Main place of business | CDA |
Securities | 100% |
Equity | 100% |
Voting | 100% |
Backbone Argentina [Member] | |
Subsidiaries (Details) - Schedule of significant subsidiaries [Line Items] | |
Security type | Ordinary shares |
Main place of business | ARG |
Securities | 100% |
Equity | 100% |
Voting | 100% |
Backbone Paraguay [Member] | |
Subsidiaries (Details) - Schedule of significant subsidiaries [Line Items] | |
Security type | Ordinary shares |
Main place of business | PAR |
Securities | 100% |
Equity | 100% |
Voting | 100% |
Backbone Mining [Member] | |
Subsidiaries (Details) - Schedule of significant subsidiaries [Line Items] | |
Security type | Ordinary shares |
Main place of business | USA |
Securities | 100% |
Equity | 100% |
Voting | 100% |
Net Earnings (Loss) Per Share_2
Net Earnings (Loss) Per Share (Details) | 12 Months Ended |
Dec. 31, 2022 shares | |
Disclosure of Net Earnings (Loss) Per Share [Abstract] | |
Additional potentially dilutive securities | 1,748,000 |
Net Earnings (Loss) Per Share_3
Net Earnings (Loss) Per Share (Details) - Shedule of shares and income (loss) used in the computation of net earnings (loss) per share - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Shedule Of Shares And Income Loss Used In The Computation Of Net Earnings Loss Per Share Abstract | ||
Net income (loss) (in Dollars) | $ (239,050) | $ 22,130 |
Weighted average number of common shares outstanding - basic | 207,776,000 | 157,652,000 |
The effect of dilutive potential common shares | 11,740,000 | |
Weighted average number of common shares outstanding - diluted | 207,776,000 | 169,392,000 |
Basic (loss) earnings per share (in Dollars per share) | $ (1.15) | $ 0.14 |
Diluted (loss) earnings per share (in Dollars per share) | $ (1.15) | $ 0.13 |
Share-Based Payment (Details)
Share-Based Payment (Details) - shares | 1 Months Ended | 12 Months Ended | |
May 19, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment (Details) [Line Items] | |||
Exercised period | 5 years | ||
Weighted average contractual life of the stock option | 4 years | 4 years 3 months 18 days | |
Restricted stock units description | the Board of Directors approved the grant of 200,000 RSUs (during the year December 31, 2021: 200,000 RSUs) to certain members of senior management which vest 25% upfront and an additional 25% every 6 months (during the year ended December 31, 2021: vest ratably, on an annual basis, over a three-year period). The value of the RSUs on the grant date was $1.91 per unit (during the year December 31, 2021: $4.05 per unit). | ||
Board of Directors [Member] | |||
Share-Based Payment (Details) [Line Items] | |||
Stock option grants to purchase (in Shares) | 9,592,000 |
Share-Based Payment (Details) -
Share-Based Payment (Details) - Schedule of expense recognized in the financial statements for employee services received - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Expense Recognized In The Financial Statements For Employee Services Received Abstract | ||
Equity-settled share-based payment plans | $ 21,788 | $ 22,585 |
Share-Based Payment (Details)_2
Share-Based Payment (Details) - Schedule of inputs used to value the option grants using the black-scholes model - $ / shares | 1 Months Ended | ||||
Dec. 27, 2022 | Nov. 16, 2022 | Jun. 30, 2022 | May 19, 2022 | Mar. 31, 2022 | |
Schedule Of Inputs Used To Value The Option Grants Using The Black Scholes Model Abstract | |||||
Dividend yield (%) | |||||
Expected share price volatility (%) | 102% | 103% | 102% | 106% | 105% |
Risk-free interest rate (%) | 4.17% | 4.13% | 2.99% | 2.78% | 2.49% |
Expected life of stock options (years) | 3 years | 3 years | 3 years | 3 years | 3 years |
Share price (CAD) | $ 0.55 | $ 1 | $ 1.5 | $ 2.45 | $ 4.71 |
Exercise price (CAD) | 0.55 | 1 | 1.5 | 2.45 | 4.71 |
Fair value of options (USD) | $ 0.25 | $ 0.46 | $ 0.72 | $ 1.21 | $ 2.4 |
Vesting period (years) | 1 year 6 months | 1 year 6 months | 1 year 6 months | 1 year 6 months | 1 year 6 months |
Number of options granted | 3,870,000 | 200,000 | 20,000 | 5,382,000 | 120,000 |
Share-Based Payment (Details)_3
Share-Based Payment (Details) - Schedule of outstanding stock options - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Outstanding Stock Options Abstract | ||
Number of Options Outstanding Beginning Balance | 12,547,000 | 8,100,000 |
Weighted Average Exercise Price Outstanding Beginning Balance (CAD) | $ 4.86 | $ 0.72 |
Number of Options Granted | 9,592,000 | 10,775,000 |
Weighted Average Exercise Price Granted (CAD) | $ 1.68 | $ 5.91 |
Number of Options Exercised | (70,000) | (6,074,000) |
Weighted Average Exercise Price Exercised (CAD) | $ 0.41 | $ 1.27 |
Number of Options Forfeited | (205,000) | (251,000) |
Weighted Average Exercise Price Forfeited (CAD) | $ 5.65 | $ 3.41 |
Number of Options Expired | (60,000) | (3,000) |
Weighted Average Exercise Price Expired (CAD) | $ 4.37 | $ 0.99 |
Number of Options Outstanding, Ending Balance | 21,804,000 | 12,547,000 |
Weighted Average Exercise Price Outstanding Ending Balance (CAD) | $ 3.47 | $ 4.86 |
Number of Options Exercisable, Ending Balance | 2,306,375 | 5,676,000 |
Weighted Average Exercise Price Exercisable, Ending Balance (CAD) | $ 0.46 | $ 4.57 |
Additional Details to the Sta_5
Additional Details to the Statement of Profit or Loss and Comprehensive Profit or Loss (Details) - Schedule of cost of revenues - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of cost of sales expenses [Abstract] | ||
Energy and infrastructure | $ 56,415 | $ 30,195 |
Depreciation and amortization | 72,420 | 24,476 |
Purchases of electrical components | 1,759 | 1,973 |
Electrician salaries and payroll taxes | 1,316 | 1,727 |
Cost of sales | $ 131,910 | $ 58,371 |
Additional Details to the Sta_6
Additional Details to the Statement of Profit or Loss and Comprehensive Profit or Loss (Details) - Schedule of general and administrative expenses - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of general and administrative expenses [Abstract] | ||
Salaries and share based payment | $ 30,040 | $ 30,334 |
Professional services | 10,051 | 6,985 |
Advertising and promotion | 333 | 174 |
Insurance, duties and other | 9,370 | 4,920 |
Travel, motor vehicle and meals | 1,152 | 423 |
Hosting and telecommunications | 560 | 402 |
General and administration expense | $ 51,506 | $ 43,238 |
Additional Details to the Sta_7
Additional Details to the Statement of Profit or Loss and Comprehensive Profit or Loss (Details) - Schedule of net financial (income) expenses - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule of net financial expenses [Abstract] | |||
Loss on revaluation of warrants | $ 19,524 | ||
Loss on embedded derivative | 2,641 | ||
Gain on disposition of marketable securities | [1] | (51,649) | (6,149) |
Loss on currency exchange | 2,945 | 647 | |
Interest on credit facility and long-term debt | 12,770 | 1,907 | |
Interest on lease liabilities | 1,451 | 1,513 | |
Warrant issuance costs | 668 | ||
Discount expense on VAT receivable | [2] | 6,750 | |
Other financial expenses | 173 | 252 | |
Net finance expenses | $ (27,560) | $ 21,003 | |
[1]During the year ended December 31, 2022, the Company has continued to fund its expansion in Argentina through the acquisition of marketable securities and in-kind contribution of these securities to the Company’s subsidiary in Argentina. The subsequent disposition of these marketable securities in exchange for Argentine Pesos gave rise to a gain as the amount received in ARS exceeds the amount of ARS the Company would have received from a direct foreign currency exchange.[2]A portion of Argentine VAT is not expected to be settled within the next 12 months, and, therefore, it has been classified as a long-term receivable in Note 14 with the short-term portion being included in sales tax receivable in Note 8. The Company has discounted this VAT receivable to its present value, which is classified within Net financial (income) expenses during the year ended December 31, 2022. Historically, ARS has devalued significantly when compared to USD due to high levels of inflation in Argentina, which may result in the Company recording future foreign exchange losses on its Argentina VAT receivable. |
Geographical Information (Detai
Geographical Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Geographical Areas Text Block [Abstract] | |
Material reportable segment | 1 |
Geographical Information (Det_2
Geographical Information (Details) - Schedule of revenues - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Geographical Information (Details) - Schedule of revenues [Line Items] | ||
Revenues | $ 142,428 | $ 169,491 |
Canada [Member] | ||
Geographical Information (Details) - Schedule of revenues [Line Items] | ||
Revenues | 112,106 | 153,265 |
USA [Member] | ||
Geographical Information (Details) - Schedule of revenues [Line Items] | ||
Revenues | 25,095 | 16,226 |
Argentina [Member] | ||
Geographical Information (Details) - Schedule of revenues [Line Items] | ||
Revenues | 1,455 | |
Paraguay [Member] | ||
Geographical Information (Details) - Schedule of revenues [Line Items] | ||
Revenues | $ 3,772 |
Geographical Information (Det_3
Geographical Information (Details) - Schedule of property, plant and equipment - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Geographical Information (Details) - Schedule of property, plant and equipment [Line Items] | ||
Property, Plant And Equipment | $ 219,428 | $ 136,850 |
Canada [Member] | ||
Geographical Information (Details) - Schedule of property, plant and equipment [Line Items] | ||
Property, Plant And Equipment | 142,654 | 83,402 |
USA [Member] | ||
Geographical Information (Details) - Schedule of property, plant and equipment [Line Items] | ||
Property, Plant And Equipment | 32,664 | 51,672 |
Argentina [Member] | ||
Geographical Information (Details) - Schedule of property, plant and equipment [Line Items] | ||
Property, Plant And Equipment | 31,927 | 665 |
Paraguay [Member] | ||
Geographical Information (Details) - Schedule of property, plant and equipment [Line Items] | ||
Property, Plant And Equipment | $ 12,183 | $ 1,111 |
Additional Details to the Sta_8
Additional Details to the Statement of Cash Flows (Details) - Schedule of additional details to the statement of cash flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in working capital components: | ||
Decrease in trade receivables, net | $ 429 | $ 64 |
Increase in other current assets | (4,563) | (5,082) |
Decrease (increase) in long-term deposits | 188 | (613) |
Increase (decrease) in trade payables and accrued liabilities | 94 | 9,244 |
Increase (decrease) in taxes payable | (126) | 11,777 |
Total | (3,978) | 15,390 |
Significant non-cash transactions: | ||
Addition of right-of-use assets, property, plant and equipment and related lease liabilities | 11,354 | 8,682 |
Purchase of property, plant and equipment financed by short-term credit | 1,601 | 2,802 |
Extinguishment of warrant liability and long-term debt through share issuance | 24,322 | |
Issuance of shares in connection with business combination | 3,676 | |
Equipment prepayments realized as additions to property, plant and equipment | 54,135 | |
Deferred tax expense related to equity issuance costs | $ (3,895) | $ 4,287 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2023 | Jan. 31, 2023 | Mar. 20, 2023 | |
Subsequent Events (Details) [Line Items] | |||
Principal amount | $ 829 | ||
At-The-Market Equity Program [Member] | |||
Subsequent Events (Details) [Line Items] | |||
Company issued common shares (in Shares) | 14,185,000 | ||
Gross proceeds | $ 14,611 | ||
Average price per share (in Dollars per share) | $ 1.03 | ||
Company received net proceeds | $ 14,122 | ||
Paying commissions amount | 490 | ||
BlockFi Loan [Member] | |||
Subsequent Events (Details) [Line Items] | |||
Loan agreement amount | $ 20,328 | ||
Loan payment | 7,750 | ||
Extinguishment of long-term debt | 12,578 | ||
BlockFi Lease [Member] | |||
Subsequent Events (Details) [Line Items] | |||
Extinguishment of long-term debt | 261 | ||
Lease liability agreement amount | 379 | ||
Lease liability payment | $ 118 | ||
Disposition of Miners [Member] | |||
Subsequent Events (Details) [Line Items] | |||
Miners for proceeds | 1,740 | ||
Loss on disposition | $ 556 |