PROPERTY, PLANT AND EQUIPMENT

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

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


	September 30, 2023		December 31, 2022
Miners	$	100,337	$	71,114
Construction in process	12,731		32,360
Leasehold improvements	62,880		29,880
Equipment	15,613		7,208
Vehicles	104		—
Deposits on miners	16,347		57,626
	208,012		198,188
Less: accumulated depreciation	(26,718)		(6,667)
	$	181,294	$	191,521

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 is depreciated over the same period as the related asset. Capitalized interest costs were $0 and $2.2 million for the three and nine months ended September 30, 2023, respectively, and $1.9 million and $4.3 million for the three and nine months ended September 30, 2022, respectively.

Depreciation expense was $8.2 million and $20.1 million for the three and nine months ended September 30, 2023, respectively, and $1.5 million and $1.7 million for the three and nine months ended September 30, 2022, respectively.