PROPERTY, PLANT AND EQUIPMENT

6 Months Ended

Jun. 30, 2023

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):

	June 30, 2023		December 31, 2022
Miners	$	99,671	$	71,114
Construction in process		1,949		32,360
Leasehold improvements		62,450		29,880
Equipment		15,258		7,208
Vehicles		104		—
Deposits on miners		872		57,626
		180,304		198,188
Less: accumulated depreciation		(18,528)		(6,667)
	$	161,776	$	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 $1.2 and $2.2 million for the three and six months ended June 30, 2023, respectively, and $1.6 million and $2.4 million for the three and six months ended June 30, 2022, respectively.

Depreciation expense was $6.4 million and $11.9 million for the three and six months ended June 30, 2023, respectively, and $200,000 and $204,000 for the three and six months ended June 30, 2022, respectively.