PROPERTY AND EQUIPMENT

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

Property and equipment, net consisted of the following at March 31, 2023 and December 31, 2022:

$ in thousands	Estimated Useful Lives	March 31, 2023		December 31, 2022
Miners	3 years	$	30,072	$	81,979
Miner facility infrastructure	10 years	14,223		14,203
Land	N/A	8,460		8,460
Equipment	5 years	45		45
Construction in process	N/A	18,818		18,349
Miner deposits	N/A	—		7,381
		71,618		130,417
Less: Accumulated depreciation		(1,818)		—
		$	69,800	$	130,417

Total depreciation expense was $3.8 million and $3.7 million for the three months ended March 31, 2023 and 2022, respectively.

On January 30, 2023, Greenidge entered into an agreement regarding its 2021 and 2022 Master Equipment Finance Agreements with NYDIG. During the three months ended March 31, 2023, the Company transferred ownership of bitcoin mining equipment with net book value of $50.0 million and miner deposits of $7.4 million that remained accrued to Greenidge for previous purchases of mining equipment with a bitcoin miner manufacturer and the related debt was canceled pursuant to a debt settlement agreement entered into with NYDIG. There was no gain or loss recognized on the sales as these assets. The Company recognized a gain on the sale of assets of $1.7 million, which primarily related to the sale of bitcoin miner manufacturer coupons, including $1.1 million that were transferred as part of the debt restructuring agreement with NYDIG.