PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Property and equipment, net consisted of the following at September 30, 2022 and December 31, 2021:


$ in thousands	Estimated Useful Lives	September 30, 2022		December 31, 2021
Plant infrastructure	10 years	$	10,226	$	34,725
Miners	3 years	176,309		48,121
Miner facility infrastructure	10 years	32,368		15,143
Land	N/A	8,460		8,460
Equipment	5 years	1,012		1,660
Software	3 years	636		636
Coal ash impoundment	4 years	—		2,410
Construction in process	N/A	26,076		25,856
Miner deposits	N/A	27,281		98,110
		282,368		235,121
Less: Accumulated depreciation		(36,297)		(18,030)
		$	246,071	$	217,091

The Company has reevaluated the useful lives of the assets and adjusted the lives of the miners from 5 years to 3 years and the lives of plant infrastructure from 15 - 39 years to 10 years effective July 1, 2022. Total depreciation expense was $13.6 million and $2.7 million for the three months ended September 30, 2022 and 2021, respectively, and $22.0 million and $5.5 million for the nine months ended September 30, 2022 and 2021, respectively.

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine recoverability of a long-lived asset, management evaluates whether the estimated future undiscounted net cash flows, based on prevailing market conditions, from the asset are less than its carrying amount. If impairment is indicated, the long-lived asset is written down to fair value.

As a result of the significant reduction in the price of bitcoin and increased energy prices during the nine months ended September 30, 2022, the Company recognized a noncash impairment charge of $71.5 million for the assets associated with the Cryptocurrency Datacenter and Power Generation segment to reduce the net book value of the long-lived assets

to fair value. Fair value was determined utilizing the market approach. The excess of the book value over the estimated fair value was allocated to the long-lived assets of the Cryptocurrency and Power Generation segment.