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Deposits on Mining Equipment

3 Months Ended

Mar. 31, 2023

Note 4. Deposits on Mining Equipment

Deposits on mining equipment, consisted of the following:

Schedule of Mining Equipment

	Cryptocurrency Miners			Mobile Data Centers			Total
Balance December 31, 2021	$	7,089,000		$	524,230		$	7,613,230
Deposits on equipment during the period		1,602,300			530,430			2,132,730
Equipment delivered during the period		(4,722,300	)		(349,980	)		(5,072,280	)
Balance December 31, 2022	$	3,969,000		$	704,680		$	4,673,680
Balance beginning	$	3,969,000		$	704,680		$	4,673,680
Deposits on equipment during the period		47,600			—			47,600
Equipment delivered during the period		—			—			—
Balance March 31, 2023	$	4,016,600		$	704,680		$	4,721,280
Balance ending	$	4,016,600		$	704,680		$	4,721,280

All of our miners were manufactured by Bitmain, and incorporate application-specific integrated circuit (ASIC) chips specialized to solve blocks on the Bitcoin blockchains using the 256-bit secure hashing algorithm (SHA-256) in return for Bitcoin cryptocurrency rewards. As of March 31, 2023, we had 510 Bitmain S19J Pro miners with 51.0 Ph/s of hashing capacity and 270 Bitmain S19 miners with 24.3 Ph/s of hashing capacity.

On December 17, 2021 the Company entered into a Non-Fixed Price Sales and Purchase Agreement (the “Bitmain Agreement”) with Bitmain Technologies Limited (“Bitmain”) for 600 Bitmain S19XP miners with a reference price of approximately $11,250 per miner. The miners have a total of 84 Ph/s of hashing capacity and an initial estimated purchase commitment of $6,762,000 (the “total reference price”), subject to price adjustments and related offsets, including potential adjustments related to the market price of miners. The final adjusted price under the contract was $4,016,600 as of March 31, 2023, and the Company has made payments of $4,016,600 (classified as deposits on mining equipment) to Bitmain pursuant to the Bitmain Agreement as of such date.

As of March 31, 2023, none of the 600 miners purchased from Bitmain have been delivered to the Company, and will remain undelivered until all fees are paid to ship the miners from the Bitmain facility to the Company.