7. PROPERTY AND EQUIPMENT

6 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Property and equipment consist of the following:


($ in thousands)	March 31, 2024			September 30, 2023
Land	$	6,813		$	4,144
Land improvements		5,431			1,564
Building and improvements		75,382			52,198
Leasehold improvements		672			672
Miners		658,677			527,868
Mining equipment		22,579			18,706
Infrastructure		105,664			45,612
Machinery and equipment		2,727			1,907
Furniture and fixtures		1,253			386
Construction in progress		14,037			81,875
Total	$	893,235		$	734,932
Less: accumulated depreciation		(222,725	)		(170,537	)
Property and equipment, net	$	670,510		$	564,395

Depreciation expense for the six months ended March 31, 2024 and 2023 was $60,999 and $39,656, respectively. For the six months ended March 31, 2024, the Company disposed of $11,648 of miners with a net book value of $2,837 for $508 and recognized a $2,329 loss on disposal.

The Company placed-in service property and equipment of $214,448 during the six months ended March 31, 2024, which included $287 in machinery and equipment acquired in equipment loan transactions. This increase in fixed assets primarily consisted of miners of $142,456. Assets acquired through acquisition transactions (see Note 3 Acquisitions) resulted in an additional $23,340 in total assets placed in service. Additionally, in January 2024, the Company purchased raw land next to the Sandersville, GA location for approximately $1,038.

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 in Henderson, Nevada (the "Eastern Property") for $4,100. The property consists of approximately 15,000 square feet of office space. The Company utilizes this office space as its new corporate headquarters. The real property is recorded in building and building improvements and was placed in service in the first quarter of fiscal 2024.

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 March 31, 2024 and September 30, 2023, the Company has outstanding deposits for miners and mining equipment totaling $161,309 and $75,959, respectively. Such deposits are as long-term assets on the Consolidated Balance Sheets.