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PROPERTY AND EQUIPMENT
 9 Months Ended
Sep. 30, 2024
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT
Property and equipment, net consisted of the following (in thousands):
September 30, 2024December 31, 2023
Miners and mining equipment$182,768 $163,523 
Leasehold improvements137,582 138,883 
Land25,000 — 
Infrastructure32,567 — 
Office and computer equipment272 279 
Autos73 73 
Furniture and fixtures88 88 
Construction-in-progress55,587 49 
Total cost of property and equipment433,937 302,895 
Less: accumulated depreciation(123,238)(59,080)
Property and equipment, net$310,699 $243,815 
As of September 30, 2024, the Company has added approximately $55.6 million of construction-in-progress related to the build-out of the Black Pearl Facility. Depreciation expense was approximately $28.5 million and $16.2 million, respectively, for the three months ended September 30, 2024, and 2023, including approximately $0.5 million and $0.4 million, respectively, of accretion expense related to the Company’s asset retirement obligation. Depreciation expense was approximately $65.7 million and $42.3 million, respectively, for the nine months ended September 30, 2024 and 2023, respectively, and included approximately $1.4 million and $1.3 million for the nine months ended September 30, 2024 and 2023, of accretion expense related to the Company’s asset retirement obligation.
In June 2024, the Company entered into agreements with Bitmain Technologies Delaware Limited (“Bitmain”) and Canaan Creative Global Pte. Ltd. (“Canaan”) to purchase the newest generation miners to be delivered in the fourth quarter of 2024. As more efficient machines were available earlier than anticipated, this prompted a shift in the Company's planned use of the existing miners. The Company will use these new miners to replace less efficient machines at the Odessa Facility instead of deploying at the Black Pearl Facility. The Company deemed this event a trigger to reevaluate the estimated useful lives of the miners, and the Company reduced the estimated useful life of miners from five years to three years. The Company changed this accounting policy effective June 1, 2024 and accounted for it prospectively. This change in estimate resulted in a $9.4 million and $12.2 million increase in Depreciation and amortization expense, and respective reduction of Operating (loss) income, and Net (loss) income for the three and nine months ended September 30, 2024, respectively, and a $0.03 and a $0.04 increase in Net loss per share for the three and nine months ended September 30, 2024.
As part of this transaction, the Company acquired Property and equipment of related to electrical infrastructure of $26.0 million with an estimated useful life of 20 years, and land $25.0 million, deemed to have an indefinite life.