Certain Balance Sheet Items

9 Months Ended

Sep. 30, 2024

Balance Sheet Related Disclosures [Abstract]

The following table summarizes other current assets (in thousands):


	September 30, 2024		December 31, 2023
Prepaid mining hosting services	$	1,129	$	980
Prepaid insurance	964		575
Prepaid services	224		193
Bitcoin mining hosting deposit	—		10,000
Other	205		190
Total other current assets	$	2,522	$	11,938

The December 31, 2023 Bitcoin mining hosting deposit was settled by shares of Core Scientific’s common stock issued to the Company, and is included in investment in equity securities at September 30, 2024.

The following table summarizes property and equipment, net (in thousands):


	September 30, 2024		December 31, 2023
Mining equipment	$	32,155	$	30,122
Construction in progress	500		—
Total	32,655		30,122
Accumulated depreciation	(9,264)		(5,956)
Property and equipment, net	$	23,391	$	24,166

Depreciation expense for property and equipment was $1.4 million and $1.3 million for the three months ended September 30, 2024 and 2023, respectively. Depreciation expense for property and equipment was $4.3 million and $2.9 million for the nine months ended September 30, 2024 and 2023, respectively.

For the nine months ended September 30, 2024 and 2023, the Company sold 450 and 2,925 miners, respectively, that were included in mining equipment, for proceeds of $0.2 million and $4.1 million, respectively. The Company had a loss on the sale of miners of nil and $0.7 million during the three and nine months ended September 30, 2024. The Company had a loss on the sale of miners of $0.3 million and $0.6 million during the three and nine months ended September 30, 2023, respectively.

Impairment of Property and Equipment

For the nine months ended September 30, 2024, the Company recorded an impairment to property and equipment related to idle mining equipment not expected to return to use. The Company compared the indicated fair value to the carrying value of the mining equipment, and as a result of the analysis, an impairment charge of $0.9 million was recorded for the nine months ended September 30, 2024. The estimated fair value of the Company’s mining equipment is classified in Level 3 of the fair value hierarchy. The Company incurred no property and equipment impairment charges for the three and nine months ended September 30, 2023.

The following table summarizes other non-current assets (in thousands):


	September 30, 2024		December 31, 2023
Prepaid mining hosting services	$	2,892	$	3,402

Other	4		4
Total other non-current assets	$	2,896	$	3,406