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7. PROPERTY AND EQUIPMENT | 9 Months Ended
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Jun. 30, 2023
Property, Plant and Equipment [Abstract] |
PROPERTY AND EQUIPMENT | 7. PROPERTY AND EQUIPMENT Property and equipment consist of the following:
($ in thousands) |  | June 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 |  |  | 450,092 |  |  |  | 356,501 |
Mining equipment |  |  | 18,693 |  |  |  | 17,587 |
Infrastructure |  |  | 26,787 |  |  |  | 12,422 |
Machinery and equipment |  |  | 1,963 |  |  |  | 1,269 |
Furniture and fixtures |  |  | 377 |  |  |  | 331 |
Construction in progress |  |  | 39,960 |  |  |  | 4,816 |
Total |  | $ | 596,450 |  |  | $ | 429,880 |
Less: accumulated depreciation |  |  | (114,022 | ) |  |  | (53,099 | )
Property and equipment, net |  | $ | 482,428 |  |  | $ | 376,781 |
Depreciation expense for the nine months ended June 30, 2023 and 2022 was $60,926 and $31,185, respectively. There were no disposals during either the three months ended June 30, 2023 and 2022. For the nine months ended June 30, 2023, the Company disposed of $5 of miscellaneous furniture and recognized a $3 loss on disposal. For the nine months ended June 30, 2022, $4,390 of property and equipment was disposed of for a gain of $643, which included $411 of property and equipment that was written-off resulting in a loss of $278. The Company placed-in service property and equipment of $122,042 during the nine months ended June 30, 2023, which includes $31,193 in property and equipment acquired in the Mawson Transaction. This increase in fixed assets primarily consisted of miners and mining equipment of $94,698, which includes $12,914 acquired in the Mawson Transaction. 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 June 30, 2023 as there are building improvements occurring for which the completion is expected to occur in the first quarter of fiscal 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 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 financing 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 Company is expanding its facilities in the State of Georgia, including infrastructure, building, and land improvements to expand its mining operations. As of June 30, 2023, the Company has outstanding deposits totaling $98,594 for mining equipment included in long-term assets on the Consolidated Balance Sheets.

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