Mining Equipment, Net

6 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

Mining Equipment, net

Note 6 — Mining Equipment, net

Mining equipment, net, was comprised of the following at (in thousands of dollars):

	Balance as of
	June 30,			December 31,
	2021			2020
Gross Mining Equipment:
Mining Equipment (non-GPUs)	$	1,158		$	554
GPUs		15,542			2,167
Accumulated Depreciation
Mining Equipment (non-GPUs)		(283	)		(242	)
GPUs		(2,636	)		(1,207	)
Mining Equipment, net	$	13,781		$	1,272

An Ethereum mining server consists of multiple commodity Graphics Processing Units (GPUs) and ancillary components such as chassis, CPU, motherboard, and power supply. The GPUs are solely responsible for the compute power to generate the cryptographic hashes for mining, while the other components act to support the system. Depreciation expense was approximately $1.5 million during the six months ended June 30, 2021, and $1.3 million for the three months ended June 30, 2021. Depreciation expense was approximately $0.4 million during the six months ended June 30, 2020, and $0.2 million for the three months ended June 30, 2020.

The Company (TTM Digital) purchased approximately 4,500 GPUs with specialized Cryptocurrency Mining Processors through execution of an Asset Contribution and Exchange Agreement and a Purchase Order for a lease to buy financing arrangement which total $2.2 million over 180 days subject to acceleration based on the completion of certain corporate events. The Company issued 35,588,548 shares of common stock at the merger. The assets and equity were exchanged in April 2021 prior to the reverse merger with Sysorex, Inc. See Subsequent event Note 10 for settlement of the obligation.