6. PROPERTY AND EQUIPMENT

9 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Property and equipment consist of the following:


	June 30, 2022			September 30, 2021
Mining equipment	$	12,161,401		$	2,817,074
Miners		313,410,536			120,330,769
Land Improvements		1,529,937			—
Office Equipment		206,101			—
Land and building		12,744,992			11,048,299
Machinery and equipment		231,609			63,978
Leasehold improvements		144,647			63,447
Furniture and fixtures		118,358			39,313
Infrastructure		12,338,191			81,868
Construction in progress		6,572,849			10,498,311
Less: accumulated depreciation		(37,272,698	)		(7,465,324	)
Property and equipment, net	$	322,185,923		$	137,477,735

Depreciation expense for the three months ended June 30, 2022 and 2021 was $14,319,194 and $1,584,159, respectively. Depreciation expense for the nine months ended June 30, 2022 and 2021 was $31,185,120 and $2,503,155, respectively. There were no disposals during the three months ended June 30, 2022. For the nine months ended June 30, 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 nine months ended June 30, 2021.

The Company placed-in service property and equipment of $218,441,023 during the nine months ended June 30, 2022. This increase in fixed assets primarily consisted of miners amounting to $214,680,416, which also includes miners received in-kind under miner purchase agreements valued at $308,038, mining equipment of $9,344,327, and infrastructure of $12,256,322.

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

As of June 30, 2022, the Company has outstanding deposits totaling $31,856,635 for mining equipment. 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.