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Deposit, Property and Equipment and Intangible Assets
 3 Months Ended
Mar. 31, 2021
Property, Plant and Equipment [Abstract]  
DEPOSIT, PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS

NOTE 3 – DEPOSIT, PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS


On January 27, 2021, the Company purchased 500 next generation Micro BT M30S ASIC Miners from Foundry Digital LLC. The purchase price per unit was $2,640 giving rise to a total purchase price of $1,320,000. The miners arrived in February 2021.


On February 5, 2021, the Company entered into a Long-Term Purchase Contract with Canaan Convey Co Ltd (“Canaan”) for the purchase of 11,760 next generation Avalon A1246 ASIC Miners (Avalon). The purchase price per unit is $2,889. for a total purchase price of $33,974,640 (the “Canaan Transaction”). There will be a final adjustment to the purchase price in the last delivery due in March 2022 based on the actual tera hash delivered, based on the agreed price per tera hash under the terms of the contract.


The Canaan Transaction schedule of payments is as follows:


(1) Fifty percent (50%) of the total purchase price shall be paid on or before 20 February 2021.


(2) The Company shall pay the remaining fifty percent (50%) of the total purchase price in equal monthly instalments due not less than forty (40) days prior to the scheduled delivery of the Product(s) as follows:


a)$1,058,000 no later than March 20, 2021

b)$1,058,000 no later than April 20, 2021

c)$952,560 no later than May 20, 2021

d)$952,560 no later than June 20, 2021

e)$1,799,280 no later than July 20, 2021

f)$1,693,440 no later than August 20, 2021

g)$1,587,600 no later than September 20, 2021

h)$1,587,600 no later than October 20, 2021

i)$1,587,600 no later than November 20, 2021

j)$1,587,600 no later than December 20, 2021

k)$1,587,600 no later than January 20, 2022

l)$1,587,600 no later than February 20, 2022

As of March 31, 2021, the Company had prepaid approximately $18.05 million in advance for 11,760 Miners. The shipment of the first Miners was received in May, 2021. The Company will recognize these assets as Property and Equipment on the consolidated balance sheet when the transfer of risk and title occurs for each shipment (i.e., the Miners have been delivered by Canaan to the agreed-upon port of loading in China).


On March 26, 2021, the Company acquired an additional 1,000 Avalon A1166 miners from Canaan in addition to the Canaan Transaction. The purchase price per unit is $6,237.00 for a total purchase price of $6,237,000.00. The Company subsequently re-sold 200 of these Avalon A1166 miners.


As of March 31, 2021, approximately $18.05 million cash paid for Miners was recorded as a deposit on the balance sheet.