XML 29 R16.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

8. PROPERTY AND EQUIPMENT | 9 Months Ended
--- | ---
Jun. 30, 2024
Property, Plant and Equipment [Abstract] |
PROPERTY AND EQUIPMENT | 8. PROPERTY AND EQUIPMENT Property and equipment consist of the following:
($ in thousands) |  | June 30, 2024 |  |  | September 30, 2023 |
Land |  | $ | 6,817 |  |  | $ | 4,144 |
Land improvements |  |  | 5,446 |  |  |  | 1,564 |
Building and improvements |  |  | 75,934 |  |  |  | 52,198 |
Leasehold improvements |  |  | 2,033 |  |  |  | 672 |
Miners |  |  | 752,489 |  |  |  | 527,868 |
Mining equipment |  |  | 24,325 |  |  |  | 18,706 |
Infrastructure |  |  | 131,797 |  |  |  | 45,612 |
Machinery and equipment |  |  | 2,857 |  |  |  | 1,907 |
Furniture and fixtures |  |  | 1,398 |  |  |  | 386 |
Construction in progress |  |  | 15,271 |  |  |  | 81,875 |
Total |  | $ | 1,018,367 |  |  | $ | 734,932 |
Less: accumulated depreciation |  |  | (449,974 | ) |  |  | (170,537 | )
Property and equipment, net |  | $ | 568,393 |  |  | $ | 564,395 |
In April 2024, as a result of the bitcoin halving event and the execution of the 100,000 miner purchase option for new Bitmain Antminer S21 Pro models (see Note 16 - Commitments and Contingencies), the Company concluded that various miner models (S19J, S19 J Pro and S19 J Pro+) would be removed from service and replaced with newer, more efficient miner models. The planned replacement is expected to be completed by December 31, 2024. Accordingly, the Company performed an impairment test on the miners planned for replacement, resulting in an impairment charge of $189,235, which is recorded in the Condensed Consolidated Statements of Operations and Comprehensive Loss as "Impairment expense - fixed assets". The fair value less residual value of the impaired miners will depreciated over the remaining period in which they are operating. Effective May 1, 2024, as a result of new information about actual lives of its bitcoin miners based on historical experience and advancements in overall miner efficiency, the Company has reduced the useful lives of miners from five years to three years. The impact of the change in useful lives of miners from five to three years increased depreciation expense and loss before income tax expense by approximately $7,261 for the three months ended June, 30, 2024, and decreased basic and diluted earnings per share by $0.03 and $0.04, for the three and nine months ended June 30, 2024, respectively. Total depreciation expense for the nine months ended June 30, 2024 and 2023 was $101,198 and $60,926, respectively. For the nine months ended June 30, 2024, the Company disposed of $14,075 of miners with a net book value of $3,079 for $798 and recognized a $2,281 loss on disposal. The Company placed-in service property and equipment of $317,147 during the nine months ended June 30, 2024, which included $287 in machinery and equipment acquired in equipment loan transactions. This increase in fixed assets primarily consisted of miners of $238,696. Assets acquired through acquisition transactions (see Note 3 - Acquisitions) resulted in an additional $46,967 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 for $4,100. 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 June 30, 2024 and September 30, 2023, the Company had outstanding deposits for miners and mining equipment totaling $284,541 and $75,959, respectively. Such deposits are recorded as long-term assets on the Condensed Consolidated Balance Sheets.

X
- References No definition available. + Details
Name: | us-gaap_PropertyPlantAndEquipmentAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-lived, physical asset used in normal conduct of business and not intended for resale. Includes, but is not limited to, work of art, historical treasure, and similar asset classified as collections. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Section 50 -Paragraph 6 -SubTopic 360 -Topic 958 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477798/958-360-50-6 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d) -SubTopic 360 -Topic 958 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477798/958-360-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Section 50 -Paragraph 7 -SubTopic 360 -Topic 958 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477798/958-360-50-7 + Details
Name: | us-gaap_PropertyPlantAndEquipmentDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration