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7. PROPERTY AND EQUIPMENT | 12 Months Ended
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Sep. 30, 2023
Property, Plant and Equipment [Abstract] |
PROPERTY AND EQUIPMENT | 7. PROPERTY AND EQUIPMENT Property and equipment consist of the following as of September 30, 2023 and September 30, 2022:
($ in thousands) |  | September 30, 2023 |  |  | September 30, 2022 |
Land |  | $ | 4,144 |  |  | $ | 2,978 |
Land improvements |  |  | 1,564 |  |  |  | 1,530 |
Building and improvements |  |  | 52,198 |  |  |  | 32,332 |
Leasehold improvements |  |  | 672 |  |  |  | 114 |
Miners |  |  | 527,868 |  |  |  | 356,501 |
Mining equipment |  |  | 18,706 |  |  |  | 17,587 |
Infrastructure |  |  | 45,612 |  |  |  | 12,422 |
Machinery and equipment |  |  | 1,907 |  |  |  | 1,269 |
Furniture and fixtures |  |  | 386 |  |  |  | 331 |
Construction in progress |  |  | 81,875 |  |  |  | 4,816 |
Total |  | $ | 734,932 |  |  | $ | 429,880 |
Less: accumulated depreciation |  |  | (170,537 | ) |  |  | (53,099 | )
Property and equipment, net |  | $ | 564,395 |  |  | $ | 376,781 |
Depreciation expense for the years ended September 30, 2023 and 2022 was $118,615 and $47,082, respectively. During the year ended September 30, 2023, $1,966 of property and equipment was disposed of for a loss of $1,931. The Company placed in service property and equipment of $231,135 during the year ended September 30, 2023. This increase in fixed assets primarily consisted of miners and mining equipment amounting to $175,558. 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 intends to utilize this office space as its new corporate headquarters. The real property is recorded in construction in progress as of September 30, 2023, and includes an additional $560 in building improvements. The completion is expected to occur in the first quarter of fiscal year 2024. On May 1, 2023, the Company entered into a Purchase and Sale agreement with the Development Authority of Washington County to purchase 16.35 acres of land that was previously leased by the Company and an additional 10 acres of parcels in Sandersville, GA ("Sandersville Land") for a purchase price of $1,300 (the agreement was subsequently amended in June 2023 to increase the purchase price to $1,400). The leased land had been subject to an operating lease which was acquired by the Company under the Mawson Transaction. In accordance with ASC 842-Leases, the Company reassessed the lease classification as a finance lease and recorded land at the present value of the lease term (net of the carrying amount of the operating lease at time of conversion) and the land was recorded at $1,167. The land was also reclassified from finance lease right of use asset to land upon final payment being made on June 30, 2023. Construction in progress: The Eastern Property is recorded in construction in progress. The Company is also expanding its facilities in Georgia, including infrastructure, building, and land improvements to expand its mining operations. As of September 30, 2023 and September 30, 2022, the Company has outstanding deposits for miners and mining equipment totaling $75,959 and $12,497, respectively. These deposits are paid to vendors and manufacturers to purchase miners. The deposits are to be applied to the purchase price when either the vendor ships the miners or when the miners are received, depending on the contracted terms. Such deposits are recorded in long-term assets on the Consolidated Balance Sheets. If miners are purchased with terms that pass title to the goods at time of shipment, then such miners are recorded in construction in progress until they are physically received and placed in service.

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