6. PROPERTY AND EQUIPMENT

6 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Property and equipment consist of the following:


	March 31, 2022			September 30, 2021
Mining equipment	$	11,782,820		$	2,823,218
Miners		256,063,805			120,330,769
Land Improvements		1,529,937			—
Office Equipment		167,329			126,584
Land and building		12,624,608			11,048,299
Machinery and equipment		331,172			323,682
Leasehold improvements		158,110			69,056
Furniture and fixtures		82,601			30,934
Infrastructure		12,439,515			81,868
Construction in progress		4,172,407			10,498,311
Less: accumulated depreciation		(23,022,215	)		(7,657,982	)
Property and equipment, net	$	276,330,089		$	137,674,739

Depreciation expense for the three months ended March 31, 2022 and 2021 was $10,435,760 and $706,417, respectively. Depreciation expense for the six months ended March 31, 2022 and 2021 was $16,907,784 and $930,324, respectively. For the three months ended March 31, 2022, $3,978,676 of property and equipment was sold for a gain of $920,861. For the six months ended March 31, 2022, $4,390,160 of property and equipment was disposed of for a gain of $642,691, which included $411,484 of property and equipment that was written-off resulting in a loss of $278,170. There were no disposals during the three and six months ended March 31, 2021.

The Company placed-in service property and equipment of $160,345,487 during the six months ended March 31, 2022. This increase in fixed assets primarily consisted of miners amounting to $135,733,036, which also includes miners received in-kind under miner purchase agreements valued at approximately $308,038, mining equipment of $8,959,602, and infrastructure of $12,357,647.

Construction in progress: The Company is expanding its facilities in Georgia.

As of March 31, 2022, the Company has outstanding deposits totaling $69,902,321. These deposits are in prepayments paid to premier suppliers and manufacturers to purchase mining ASICs and equipment. The prepayments will be applied to the purchase price when the vendor ships the miners.