PROPERTY, PLANT AND EQUIPMENT, NET

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

4. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net as of March 31, 2024 and December 31, 2023 consist of the following (in thousands):


	March 31, 2024		December 31, 2023		Estimated Useful Lives
Land and improvements1	$	20,583	$	21,852	20 years
Building and improvements	168,470		164,495		12 to 39 years
Mining and network equipment2	450,921		441,404		1 to 5 years
Electrical equipment3	65,006		64,810		5 to 10 years
Other property, plant and equipment4	2,788		2,935		5 to 7 years
Total	707,767		695,496
Less: accumulated depreciation and amortization5	320,394		293,974
Total	387,373		401,522
Add: Construction in progress	188,596		183,909
Property, plant and equipment, net	$	575,969	$	585,431

1 Estimated useful life of improvements. Land is not depreciated.

2 Includes finance lease assets of $6.8 million and $46.6 million at March 31, 2024 and December 31, 2023, respectively.

3 Includes finance lease assets of $12.7 million and $12.7 million at March 31, 2024 and December 31, 2023, respectively.

4 Includes finance lease assets of $0.4 million and $0.4 million at March 31, 2024 and December 31, 2023, respectively.

5 Includes accumulated amortization for assets under finance leases of $10.5 million and $43.4 million at March 31, 2024 and December 31, 2023, respectively.

Depreciation expense, including amortization of finance lease assets, for the three months ended March 31, 2024 and 2023, was $28.8 million, and $20.2 million, respectively. Depreciation for the three months ended March 31, 2024 and 2023, allocated to costs of revenue was $28.7 million, and $20.2 million, respectively.

Mining and network equipment

We have entered into and facilitated agreements with vendors to supply mining equipment for our digital asset mining operations. The majority of our purchases are made on multi-month contracts with installment payments due in advance of scheduled deliveries. Delivery schedules have ranged from one month to 12 months. As of December 31, 2023, we had two active purchase agreements with Bitmain. The first agreement was for the acquisition of Antminer S19J XP miners with a combined exahash of 4.08 or 28,400 miners, all of which have been delivered as of March 31, 2024. The second agreement was for the acquisition of Antminer S21 miners with a combined exahash of 2.52 or approximately 12,900 miners. As of March 31, 2024, the Company had received approximately 4,790 miners. The remaining miners were received in April 2024. As of the reporting date of this Quarterly Report on Form 10-Q, we have completed all 2024 payments due on miners ordered for deployment this year.