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Deposits on Equipment | 9 Months Ended
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Sep. 30, 2022
Disclosure Deposits On Equipment [Abstract] |
Deposits on Equipment | NOTE 6. DEPOSITS ON EQUIPMENT As of September 30, 2022, the Company had outstanding executed purchase agreements for the purchase of (1) 27,000 Antminer S19j Pro (100 TH/s) miners from Bitmain Technologies Limited (“Bitmain”) and (2) 60,000 MicroBT M30S, M30S+ and M30S++ miners from SuperAcme Technology (Hong Kong) Limited (“SuperAcme”). The Company entered into an Amended and Restated Framework Agreement on Supply of Blockchain Servers with SuperAcme (the “Amended SuperAcme Agreement”) on May 6, 2022, which amended that certain Framework Agreement on Supply of Blockchain Servers with SuperAcme, dated September 2, 2021, to purchase 60,000 MicroBT M30S, M30S+ and M30S++ miners (the “Original SuperAcme Agreement”). The Amended SuperAcme Agreement established a new delivery quantity ratio of miners, as well as new fixed subtotal pricing. In connection with the Original SuperAcme Agreement, the Company previously paid an initial deposit of $22.2 million. No additional initial deposit was required as a result of the execution of the Amended SuperAcme Agreement. The expected final purchase price under the Amended SuperAcme Agreement is subject to both the new fixed price terms and certain floating price terms, with payment due in advance of certain batches of miners being delivered. See additional information regarding a supplementary agreement with SuperAcme in Note 15. The Company entered into two agreements with Bitfury USA Inc. (“Bitfury USA”), a subsidiary of Bitfury Top HoldCo, made under, and as a part of, the Master Services and Supply Agreement between the Company and Bitfury Top HoldCo dated August 26, 2021, to purchase a total of 240 units of BlockBox air-cooled containers (each a “BBAC”), the modular data centers that house mining machines. The delivery of those containers commenced in the first quarter of 2022 and is anticipated to be completed in 2022, as expected. See Note 9 for more information on the Master Services and Supply Agreement. The Company previously had an agreement for the purchase of between 28,000 to 56,000 mining rigs from Bitfury Top HoldCo, also made under, and as a part of, the Master Services and Supply Agreement. Upon execution of the agreement, the Company paid a $10.0 million deposit to Bitfury Top HoldCo; however, the agreement for the purchase of mining rigs was a non-binding commitment unless and until confirmed by a mutually executed order confirmation. No order confirmations were executed under this agreement and, as further described in Note 9, shares of the Company’s Common Stock held by Bitfury Top HoldCo were returned to the Company as consideration for, or repayment of, the $10.0 million deposit. The purchase agreement commitments, deposits paid and expected delivery timing (remaining balances are payable in advance of shipping) are summarized below as of September 30, 2022 (amounts in thousands):
Vendor |  | Agreement Dates |  | Original Maximum Purchase Commitment* |  |  | Open Purchase Commitment |  |  | Deposits Paid |  |  | Expected Shipping for Open Purchase Commitments
Bitmain Technologies Limited** |  | August 20, 2021 and August 30, 2021 |  | $ | 171,135 |  |  | $ | 55,500 |  |  | $ | 55,500 |  |  | October 2022 - December 2022
SuperAcme Technology (Hong Kong)**/*** |  | May 6, 2022 |  |  | 222,401 |  |  |  | 222,401 |  |  |  | 101,819 |  |  | October 2022 - December 2022
Bitfury USA and other vendors (primarily for BBACs)**** |  | Various |  |  |  |  |  | 57,173 |  |  |  | 42,715 |  |  |
Total |  |  |  |  |  |  | $ | 335,074 |  |  | $ | 200,033 |  |  |
__________ * Maximum purchase commitment does not consider discounts that the Company may qualify for with the respective vendors, which could reduce the total cost. ** Pursuant to the Company’s agreements with Bitmain and SuperAcme, the Company is responsible for all logistics costs related to transportation, packaging for transportation and insurance related to the delivery of the miners. *** See Note 15 for information regarding a supplementary agreement entered into on November 4, 2022 with SuperAcme. ****See Notes 9 and 15 for additional information regarding payments for BBACs. During the nine months ended September 30, 2022, the Company paid $184.1 million of deposits for miners and mining equipment. As of September 30, 2022, the Company had contributed equipment with a total cost of $93.2 million related to its contributions of 12,953 miners and other mining equipment to the Alborz Facility, which was reclassified from deposits on equipment to investment in equity investee on its consolidated balance sheet, with the exception of losses of $11.6 million and $7.2 million recognized by the Company related to the batches of miners contributed in June 2022 and July 2022, respectively. S ee additional information in Note 8.

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