7. PROPERTY AND EQUIPMENT

3 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property and equipment consist of the following:


($ in thousands)	December 31, 2023			September 30, 2023
Land	$	4,144		$	4,144
Land improvements		1,695			1,564
Building and improvements		57,705			52,198
Leasehold improvements		672			672
Miners		634,115			527,868
Mining equipment		18,753			18,706
Infrastructure		45,954			45,612
Machinery and equipment		2,190			1,907
Furniture and fixtures		766			386
Construction in progress		64,758			81,875
Total	$	830,752		$	734,932
Less: accumulated depreciation		(193,271	)		(170,537	)
Property and equipment, net	$	637,481		$	564,395

Depreciation expense for the three months ended December 31, 2023 and 2022 was $29,333 and $18,827, respectively. There were no disposals during either the three months ended December 31, 2023 or 2022. For the three months ended December 31, 2023, the Company disposed of $7,784 of miners with a net book value of $1,185 for $508 and recognized a $677 loss on disposal.

The Company placed-in service property and equipment of $120,721 during the three months ended December 31, 2023, which includes $240 in machinery and equipment acquired in the financing transactions. This increase in fixed assets primarily consisted of miners of $114,030.

On April 7, 2023, CleanSpark HQ, LLC (“HQLLC”), a single member limited liability company and subsidiary wholly owned by the Company, purchased certain real property located at 10424 South Eastern Ave., Suite 200, Henderson, Nevada (the "Eastern Property") for $4,100. The property consists of approximately 15,000 square feet of office space. The Company utilizes this office space as its new corporate headquarters. The real property is recorded in building and building improvements and was placed in service in the first quarter of fiscal 2024.

Construction in progress: The Company is expanding its facilities in the State of Georgia, including infrastructure, building, and land improvements to expand its mining operations.

As of December 31, 2023 and September 30, 2023, the Company has outstanding deposits for miners and mining equipment totaling $25,048 and $75,959, respectively. Such deposits are as long-term assets on the Consolidated Balance Sheets.