Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

Property and Equipment
3 Months Ended
Mar. 31, 2023
Property, Plant and Equipment [Abstract]  
Property and Equipment

Note 6. Property and Equipment

Property and equipment consist of the following:


March 31, 

December 31, 





Buildings and building improvements





Land rights and land improvements





Miners and mining equipment





Machinery and facility equipment



Office and computer equipment





Construction in progress





Total cost of property and equipment





Less accumulated depreciation





Property and equipment, net





The Company did not incur any impairment charges for its property and equipment for the three months ended March 31, 2023 and 2022.

During the three months ended March 31, 2023 and 2022, depreciation expense related to property and equipment totaled $57.9 million and $13.9 million, respectively.

Miners and mining equipment

As of March 31, 2023, the Company had a total of 94,176 miners deployed in its Bitcoin mining operation, all at the Rockdale Facility, excluding 17,040 miners currently offline as a result of damage sustained during severe winter storms affecting Texas in December 2022.

As of December 31, 2022, the Company had outstanding executed purchase agreements for the purchase of miners from Bitmain Technologies Limited (“Bitmain”) for a total of 5,130 S19 series miners, which were received in January 2023. As of March 31, 2023, the Company did not have any outstanding executed purchase agreements for the purchase of miners.

Casualty-related charges (recoveries), net

In December 2022, the Rockdale Facility was damaged during severe winter storms in Texas, impacting approximately 2.5 exahash per second (“EH/s”) of our hash rate capacity. Repairs have been ongoing and the Company continues to bring its hash rate capacity back online.

The Company has estimated that total damages of $11.2 million were incurred. No insurance recoveries have been received. Recoveries will be recognized when they are probable of being received.

Construction in progress

In 2021, the Company commenced expansion of our Rockdale Facility to 700 MW from its initial 300 MW of developed capacity. As of December 31, 2022, the 400 MW expansion at the Rockdale Facility had achieved multiple progress milestones while navigating challenges with the current state of the global supply chain. We also completed construction of three new buildings in 2022, and a fourth is nearing completion in the second quarter of 2023, which, when completed, will finalize our Rockdale Facility expansion.

In 2022, the Company initiated a large-scale development to expand its Bitcoin mining and data center hosting capabilities on a 265-acre site in Navarro County, Texas, strategically located next to the Navarro switch (the “Corsicana Facility”). Once complete, the Company expects the Corsicana Facility to have one-gigawatt of developed capacity for its Bitcoin mining and data center operations.

The initial phase of the development of the Corsicana Facility involves the construction of 400 MW of immersion-cooled Bitcoin mining and data center hosting infrastructure spread across multiple buildings, as well as a high-voltage power substation and

transmission facilities to supply power and water to the facility. Construction of the substation and the data centers is expected to be carried out through 2023, with Bitcoin Mining and Data Center Hosting operations expected to commence following the commissioning of the substation.

This first phase of the development of the Corsicana Facility includes land acquisition, site preparation, substation development, and transmission construction, along with construction buildings utilizing the Company’s immersion-cooling infrastructure and technology, and ancillary buildings. Through March 31, 2023, the Company had incurred costs of approximately $70.0 million related to the development of the Corsicana Facility, including $10.1 million for land, $55.2 million of initial developments costs and equipment, and a $4.7 million deposit for future power usage.