Property and Equipment

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

NOTE 5. PROPERTY AND EQUIPMENT

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


	March 31, 2023			December 31, 2022
Miners and mining equipment	$	135,048		$	79,909
Leasehold improvements		118,036			94,807
Software		776			596
Office and computer equipment		88			88
Autos		73			73
Furniture and fixtures		75			69
Construction-in-progress		24,353			20,437
Total cost of property and equipment		278,449			195,979
Less: accumulated depreciation		(15,422	)		(4,195	)
Property and equipment, net	$	263,027		$	191,784

During the three months ended March 31, 2023 and 2022, the Company placed $17.6 million and nil, respectively, of construction-in-progress into service at the Odessa Facility. Depreciation expense was $11.7 million for the three months ended March 31, 2023 and included approximately $0.4 million of accretion expense related to the Company’s asset retirement obligation. Depreciation expense was immaterial for the three months ended March 31, 2022.

During the three months ended March 31, 2023, the Company received the remaining 17,094 MicroBT M30S, M30S+ and M30S++ miners (“MicroBT miners”) related to the framework agreement of September 2021 with SuperAcme Technology (Hong Kong) Limited (“SuperAcme”), which was amended and restated by the Amended and Restated Framework Agreement on Supply of

Blockchain Servers (the “Amended and Restated Framework Agreement”), dated as of May 6, 2022, and subject to the Supplementary Agreement of the Framework Agreement on Supply of Blockchain Servers (the “Supplementary Agreement). These MicroBT miners received during the three months ended March 31, 2023 had an aggregate cost of approximately $50.7 million and were purchased by the Company at the new fixed and floating price terms set forth in the Supplementary Agreement. During the three months ended March 31, 2023, the Company also received 4,622 Antminer S19j Pro (100 TH/s) (“S19j Pro”) miners from Bitmain with a cost basis of approximately $1.6 million. As of March 31, 2023, the Company had deployed a total of 34,927 MicroBT miners and 12,196 S19j Pro miners for a total of 47,123 miners at its Odessa Facility.