PROPERTY, PLANT AND EQUIPMENT

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

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


	March 31, 2024		December 31, 2023
Miners	$	160,014	$	100,531
Construction in process	11,848		24,578
Leasehold improvements	77,689		62,850
Equipment	22,007		15,736
Vehicles	104		104
Deposits on miners	16,298		36,469
	287,960		240,268
Less: accumulated depreciation	(50,071)		(34,984)
	$	237,889	$	205,284

Prior to the three months ended March 31, 2024, the Company capitalized a portion of the interest on funds borrowed to finance its capital expenditures. Capitalized interest is recorded as part of an asset’s cost and is depreciated over the same period as the related asset. Capitalized interest costs were $0 and $1.0 million for the three months ended March 31, 2024 and 2023, respectively.

Depreciation expense was $15.1 million and $5.4 million for the three months ended March 31, 2024 and 2023, respectively. During the three months ended March 31, 2024, the Company recorded accelerated depreciation expense of $3.8 million related to certain miners of which the Company shortened their estimated useful lives based on expected replacement by April 30, 2024.