Fixed Assets, net

3 Months Ended

Mar. 31, 2023

Property Plant And Equipment [Abstract]

Note 3. Fixed Assets, net

The components of fixed assets as of March 31, 2023 and December 31, 2022 are as follows:


	Useful Life (Years)	March 31, 2023			December 31, 2022
Mining machines	5	$	27,953,916		$		27,637,041
Furniture, computer and office equipment	3-5		217,907				216,312
Gross fixed assets			28,171,823				27,853,353
Less: accumulated depreciation			(1,462,909	)			(661,036	)
Fixed assets, net		$	26,708,914		$	$	27,192,317

As of March 31, 2023, there were approximately 3,700 mining machines in service at various hosting sites and approximately 1,950 machines in storage at a hosting facility. At December 31, 2022, there were approximately 2,700 mining machines in services at a Core location, approximately 2,700 machines at a Compute North LLC location which were awaiting transfer to storage as of December 31, 2022 and approximately 200 machines in transit. Depreciation has not commenced on those machines not yet in service. The Company’s depreciation expense recognized for the Three Months ended March 31, 2023 and 2022 was approximately $802,000 and $3,100, respectively.

There was no impairment loss recorded on fixed assets during the Three Months ended March 31, 2023 and 2022.