PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2022

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

NOTE 6 — PROPERTY, PLANT AND EQUIPMENT

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

	December 31, 2022		December 31, 2021
Miners	$	71,114	$	—
Construction in process		32,360		20,867
Leasehold improvements		29,880		—
Equipment		7,208		19
Deposits on miners		57,626		70,560
		198,188		91,446
Less: accumulated depreciation		(6,667)		—
	$	191,521	$	91,446

The Company capitalizes 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 asset’s useful life. Capitalized interest costs were $5.3 million and $94,000 for the year ended December 31, 2022 and the period February 8, 2021 (date of inception) to December 31, 2021, respectively.

Depreciation expense was $6.7 million and $0 for the year ended December 31, 2022 and the period February 8, 2021 (date of inception) to December 31, 2021, respectively.