Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment (Tables)

v3.21.2
Property and Equipment (Tables)
6 Months Ended
Jun. 30, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment

Property and equipment consisted of the following as of June 30, 2021 and December 31, 2020:

June 30, 2021

December 31, 2020

Buildings and improvements

$

60,037

$

-

Miners and mining equipment

60,145

14,406

Machinery and facility equipment

5,518

-

 

Office and computer equipment

459

83

 

Construction in progress

14,655

-

 

Total cost of property and equipment

140,814

14,489

 

Less accumulated depreciation

(11,999

)

(4,346

)

Property and equipment, net

$

128,815

$

10,143

Schedule of Purchase Agreement Commitments, Deposits Paid and Expected Delivery Timing

As of June 30, 2021, the Company had outstanding executed purchase agreements for the purchase of miners from Bitmain for a total of 15,500 miners (2,000 new S19-Pro model miners and 13,500 new S19j-Pro model miners), scheduled to be delivered through October 2021, and had paid a deposit of 20% of the total purchase price for the acquisition of an additional 42,000 model S19j miners pursuant to a purchase agreement entered into by the Company and Bitmain, dated effective as of April 5, 2021. A summary of the purchase agreement commitments, deposits paid and expected delivery timing (remaining balances are payable in advance of shipping) is summarized as follows:

Agreement Date*

Original Purchase Commitment

Open Purchase Commitment

Deposit Balance

Expected Shipping

December 18, 2020

(1 of 2)

$

26,308

$

10,523

$

15,785

Third Quarter 2021

December 18, 2020

(2 of 2)

$

8,577

$

-

$

5,718

Third Quarter 2021

March 11, 2021

$

7,224

$

3,612

$

3,612

Fourth Quarter 2021

April 5, 2021**

$

138,506

$

101,021

$

37,485

Deposit on 42,000 miners

Total

$

180,615

$

115,156

$

62,600

* Pursuant to the Company’s agreements with Bitmain, the Company is responsible for all shipping charges incurred in connection with the delivery of the miners.

** The Company paid approximately $29 million as a deposit for the miners to be acquired under the purchase agreement, dated effective as of April 5, 2021, with Bitmain to acquire approximately 42,000 Antminer model S19j Miners, which are scheduled to be shipped in 12 batches of approximately 3,500 miners each, on a monthly basis, between November 2021 and October 2022.