Property and Equipment

6 Months Ended

12 Months Ended

Jun. 30, 2024

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

6. Property and Equipment

Property and equipment, net consist of the following:


	Six months ended June 30, 2024			Year-ended December 31, 2023
Land	$	422		$	422
Assets not placed into service		1,656			831
Energy infrastructure		3,986			3,986
General infrastructure		12,217			12,214
IT infrastructure		858			824
Miners		18,050			15,802
Vehicle		76			76
Office furniture and equipment		343			343
Miner chip inventory		11,498			11,498

Gross property and equipment	$	49,106		$	45,996
Less: accumulated depreciation		(17,183	)		(15,152	)

Total property and equipment, net	$	31,923		$	30,844

Depreciation expenses related to property and equipment was $943 and $1,534

for three months ended June 30, 2024 and 2023, respectively. Depreciation expenses related to property and equipment was $2,031 and $3,070 for six months ended June 30, 2024 and 2023, respectively.

For the three and six months ended June 30, 2024, the Company had no sales of property and equipment. For the three and six months ended June 30, 2023, the Company sold certain property and equipment for total proceeds of $513 and $2,091 resulting in a gain of $281 and $1,480, respectively.

6. Property and Equipment

Property and equipment, net consist of the following:


	Year Ended
	December 31, 2023			December 31, 2022
Land	$	422		$	659
Assets not placed into service		831			662
Energy infrastructure		3,986			4,664
General infrastructure		12,214			12,402
IT infrastructure		824			820
Miners		15,802			15,759
Vehicle		76			140
Office furniture and equipment		343			343
Miner chip inventory		11,498			11,498

Gross property and equipment	$	45,996		$	46,947
Less: accumulated depreciation		(15,152	)		(9,791	)

Total property and equipment, net	$	30,844		$	37,156

Depreciation expenses related to property and equipment was $5,487 and $6,936 for years ended December 31, 2023 and 2022, respectively.

The Company entered into a supply agreement (see Note 14) where it has committed to purchasing a certain number of units of mining-related equipment. The miner chip inventory is a part of this purchase commitment, which commenced in June 2022.

For the year ended December 31, 2023, the Company sold certain property and equipment for total proceeds of $2,132 resulting in a gain of $1,059. For the year ended December 31, 2022, the Company sold certain property and equipment for total proceeds of $589 resulting in a loss of $16.

The Company reassessed the useful life of the fixed assets being reported within IT Infrastructure for the year ended December 31, 2022 from 10 years to 5 years. This is a change in the useful life and is also a change in accounting estimate under ASC 350 and ASC 360. At the time of this change, the Company performed a physical inventory count and abandoned some fixed assets before the end of their useful life. Both events triggered accelerated depreciation of $544 due to these two events. The effect on net loss from operations as well as net loss is $(544). Impairment for all assets was assessed after all adjustments were made and expense related to impairment was $95 for all asset classes.