PROPERTY AND EQUIPMENT

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

The components of property and equipment as of March 31, 2024 and December 31, 2023 are:

(in thousands, except useful life)	Useful life (Years)	March 31, 2024		December 31, 2023
Land	—	$	610	$	—
Land improvements	9	25,246		—
Building and building improvements	25	3,119		—
Mining rigs	3	934,381		862,055
Containers	10 - 15	58,898		5,676
Equipment	7 - 15	42,249		—
Software and hardware	2	3,307		—
Asset retirement obligation	8	7,879		—
Other	7	839		242
Total gross property, equipment		1,076,528		867,973
Less: Accumulated depreciation		(274,196)		(196,201)
Property and equipment, net		$	802,332	$	671,772

The Company recorded an asset retirement obligation of $7.9 million for the Granbury data center land lease. The asset retirement obligation represents the estimated cost to return the site to its original state. The asset retirement obligation is being depreciated over the term of the lease which is approximately 8 years. The Company’s accretion expense related to the asset retirement obligation for the three months ended March 31, 2024 was $0.2 million.

The Company’s depreciation expense related to property and equipment for the three months ended March 31, 2024 and 2023 was $78.0 million and $17.7 million, respectively.