Property and Equipment

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 6. Property and Equipment

Property and equipment, excluding those associated with discontinued operations, stated at cost, less accumulated depreciation and amortization, consisted of the following:

	March 31, 2022			December 31, 2021
Cryptocurrency miners	$	3,890,063		$	1,784,062
Mobile data center		524,594			518,663
Computer equipment		12,771			12,771
Software		—			—
Equipment		—			—
Total		4,427,428			2,315,496
Less accumulated depreciation		(253,656	)		(89,136	)
Net, Property and equipment	$	4,173,772		$	2,226,360

Depreciation expense, excluding that associated with discontinued operations, for the three months ended March 31, 2022 and 2021 amounted to $164,520 and $4,955, respectively.

All of the miners we operate were manufactured by Bitmain, and incorporate application-specific integrated circuit (“ASIC”) chips specialized to solve blocks on the Bitcoin blockchains using the 256-bit secure hashing algorithm (“SHA-256”) in return for Bitcoin cryptocurrency rewards. In October 2021 we put 156 Bitmain S19J Pro miners into production and added another 84 into production in December 2021. In March 2022 we received 270 Bitmain S19 miners but as of March 31, 2022 they had yet to be placed into production. As of March 31, 2021, we had 240 Bitmain S19J Pro miners with 24 Ph/s of hashing capacity in production, 270 Bitmain S19 miners with 24.3 Ph/s of hashing capacity not in production, and deposits for an additional 870 miners with 111 Ph/s hashing capacity to be delivered in 2022.