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3. ACQUISITIONS | 6 Months Ended
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Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract] |
ACQUISITIONS | 3. ACQUISITIONS Asset Acquisitions Dalton 3 Acquisition - Dalton, GA On February 2, 2024, the Company, through its wholly-owned subsidiary CSRE Properties Dalton, LLC, entered into two purchase agreements with Makerstar Capital, Inc. and its wholly-owned subsidiary, Eyas Investment Group, for approximately two (2) acres of real property (the “Dalton Property”) located in Dalton, Whitfield County, Georgia and all improvements, fixtures and personal property situated on the Dalton Property. The Dalton Property was in the early stages of construction and included a concrete f oundation and in-process electrical infrastructure. The combined purchase price (including direct acquisition costs of $132) for the real property and improvements, fixtures and personal property was approximatel y $3,569. The transaction was accounted for as an asset acquisition, whereby the total purchase price is allocated first to the fair value of the assets acquired and any excess purchase price is allocated to the acquired assets pro-rata. No goodwill is calculated in an asset acquisition. The allocation of the purchase price of the assets acquired are summarized below:
Purchase Price Allocation: ($ in thousands) |  | Allocation at Acquisition Date |
Land |  | $ | 327 |
Building/Improvements |  |  | 702 |
Infrastructure |  |  | 2,540 |
Total |  | $ | 3,569 |
Concurrent with the acquisition of the Dalton Property, the Company entered into a Construction Management Services Agreement dated February 2, 2024 (the “CMSA”) with Makerstar Capital Inc., pursuant to which the Company has engaged Makerstar Capital Inc. to manage the completion of the con struction of a 15 MW data center facility on the Dalton Property for aggregate consideration of $3,435. The construction was substantially completed, and the facility began bitcoin mining operations on April 4, 2024. Mississippi Locations Acquisition - Meridian, Vicksburg and Wiggins, MS On February 26, 2024, the Company, through its wholly-owned subsidiary CSRE Properties Mississippi, LLC, closed on the Real Property Purchase and Sale Agreement entered into with Makerstar Capital, Inc. on February 5, 2024, pursuant to which the Company agreed to purch ase three bitcoin mining facilities in Mississippi for an aggregate purchase price (including direct acquisition costs of $148) of $19,771. The three facilities are located in Meridian, Vicksburg, and Wiggins and each have power purchase agreements with capacities of 22 MW, 6 MW and 16 MW, respectively. The transaction was accounted for as an asset acquisition, whereby the total purchase price is allocated first to the fair value of the assets acquired and any excess purchase price is allocated to the acquired assets pro-rata. No goodwill is calculated in an asset acquisition. The allocation of the purchase price of the assets acquired are summarized below:
Purchase Price Allocation: ($ in thousands) |  | Allocation at Acquisition Date |
Land |  | $ | 1,304 |
Building/Improvements |  |  | 7,525 |
Infrastructure |  |  | 10,942 |
Total |  | $ | 19,771 |
Dalton 1 & 2 Acquisition - Dalton, GA On June 21, 2023, the Company completed the acquisition of two bitcoin mining facilities in Dalton, GA for $9,389. Each of the facilities are located on separate one-acre sites, each of which are under land leases. The combined facilities utilize 20 MW of power and operates a total of approximately 6,000 miners. The transaction was accounted for as an asset acquisition, whereby the total purchase price is allocated first to the fair value of the assets acquired and any excess purchase price is allocated to the acquired assets pro-rata. No goodwill is calculated in an asset acquisition. The allocation of the purchase price of the assets acquired are summarized below:
($ in thousands) |  | Allocation at Acquisition Date |
Land lease - right of use asset |  | $ | 266 |
Operating lease liability |  |  | (266 | )
Building |  |  | 1,328 |
Infrastructure |  |  | 8,061 |
Total purchase price |  | $ | 9,389 |
There have been no subsequent adjustments to the allocation of the purchase price after the preliminary allocation.

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- Definition Tabular disclosure of transactions that are recognized separately from the acquisition of assets and assumptions of liabilities in the business combination. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479328/805-10-50-2 + Details
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