PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

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


$ in thousands	Estimated Useful Lives	December 31, 2022		December 31, 2021
Plant infrastructure	10 years	$	—	$	34,725
Miners	3 years	81,979		48,121
Miner facility infrastructure	10 years	14,203		15,143
Land	N/A	8,460		8,460
Equipment	5 years	45		226
Software	3 years	—		186
Coal ash impoundment	4 years	—		2,410
Construction in process	N/A	18,349		25,856
Miner deposits	N/A	7,381		98,110
		130,417		233,237
Less: Accumulated depreciation		—		(17,225)
		$	130,417	$	216,012

Total depreciation expense was $35.1 million and $8.5 million for the years ended December 31, 2022 and 2021, respectively.

The Company has reevaluated the useful lives of the assets and effective July 1, 2022, adjusted the lives of the miners from 5 years to 3 years, the lives of plant infrastructure from 15 - 39 years to 10 years and the lives of miner facility infrastructure from 15 years to 10 years.

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 2022, the Company recognized noncash impairment charges of $176.3 million to reduce the net book value of the long-lived assets to fair value. Fair value was determined utilizing the market approach.