PROPERTY, PLANT AND EQUIPMENT

9 Months Ended

Sep. 30, 2022

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

NOTE 6 — PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment, net consisted of the following (in thousands):

	September 30, 2022		December 31, 2021
Miners	$	50,488	$	—
Construction in process		39,706		20,867
Leasehold improvements		20,700		—
Equipment		5,628		19
Deposits on miners		87,327		70,560
		203,849		91,446
Less: accumulated depreciation		(1,719)		—
	$	202,130	$	91,446

The Company capitalizes a portion of the interest on funds borrowed to finance its capital expenditures. Capitalized interest is recorded as part of an asset’s cost and will be depreciated over the asset’s useful life. Capitalized interest costs were $4.3 million and $0 for the nine months ended September 30, 2022 and the period February 8, 2021 (date of inception) to September 30, 2021, respectively. Approximately $46.9 million of the miners were placed in service as of September 30, 2022.

Depreciation expense was $1.7 million and $0 for the nine months ended September 30, 2022 and the period February 8, 2021 (date of inception) to September 30, 2021, respectively.