Property and equipment consist of the following:


($ in thousands)	June 30, 2025			September 30, 2024
Land	$	39,299		$	32,190
Land improvements		9,690			5,449
Building and improvements		91,783			76,719
Leasehold improvements		2,941			1,995
Miners		1,320,655			1,035,128
Mining equipment		24,774			23,066
Infrastructure		287,535			155,191
Machinery and equipment		16,420			15,061
Furniture and fixtures		2,335			1,706
Construction in progress		17,180			19,455
Total	$	1,812,612		$	1,365,960
Less: accumulated depreciation		(483,305	)		(496,267	)
Property and equipment, net	$	1,329,307		$	869,693

Total depreciation expense for the nine months ended June 30, 2025 and 2024 was $236,916 and $101,198, respectively.

The Company had additions to property and equipment of $666,068 during the nine months ended June 30, 2025, which included $544,413 in miners acquired, which is the primary cause of the increase of fixed assets. Assets acquired through acquisition transactions (see Note 3 - Acquisitions) resulted in an additional $39,298 in total assets placed in service.

During the nine months ended June 30, 2025, the Company had disposals of miners with a net book value of $39,966 for approximately $42,831, recognizing a gain on sale of fixed assets of $2,865 attributable to miner sales.

Construction in progress: The Company is expanding its mining facilities, including infrastructure, building, and land improvements to grow its mining operations.

Deposits on miners and mining equipment: In April 2025, the Company exercised an option to purchase 13,200 miners for approximately $76,600, net of previously deposited funds. The Company negotiated the payment to be made with bitcoin at a 15% conversion premium to the spot price on the date of transfer. The total number of bitcoin transferred as consideration for the option exercise was approximately 691 and had a total fair value of approximately $66,630, or a spot price of approximately $96,400 per bitcoin. Additionally, as part of the agreement to pay in bitcoin, the Company received an option to purchase 691 bitcoin back at a later date at the conversion premium price, which is approximately $110,900 per bitcoin. The Company utilized proceeds from its Coinbase Line of Credit to purchase the 691 bitcoin at the spot price for this transaction.

In May 2025, the Company exercised an option to purchase 3,000 miners for approximately $15,700 net of previously deposited funds. The Company negotiated the payment to be made with bitcoin at a 10% conversion premium to spot price on the date of transfer. The total number of bitcoin transferred as consideration for the option exercise was approximately 128 and had a total fair value of approximately $14,250, or a spot price of approximately $110,900 per bitcoin. Additionally, as part of the agreement to pay in bitcoin, the Company received an option to purchase 128 bitcoin back at a later date at the conversion premium price, which is approximately $122,000 per bitcoin. The Company utilized proceeds from its Coinbase Line of Credit to purchase the 128 bitcoin at spot for this transaction.

The options to purchase bitcoin under these arrangements are presented in the consolidated balance sheets as $7,717. See also Note 6 - Investments and Derivatives, under the heading of Bitcoin derivative - Bitmain contracts for the balances outstanding as of June 30, 2025.

As of June 30, 2025 and September 30, 2024, the Company had outstanding deposits for miners and mining equipment totaling $196,151 and $359,862, respectively. Such deposits are recorded as long-term assets on the condensed consolidated balance sheets.