Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment (Tables)

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

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

September 30, 2021

December 31, 2020

Buildings and improvements

$

75,608

$

-

Miners and mining equipment

67,466

14,406

Machinery and facility equipment

7,819

-

 

Office and computer equipment

239

83

 

Construction in progress

68,920

-

 

Total cost of property and equipment

220,052

14,489

 

Less accumulated depreciation

(19,301

)

(4,346

)

Property and equipment, net

$

200,751

$

10,143

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

As of September 30, 2021, the Company had outstanding executed purchase agreements for the purchase of miners from Bitmain for a total of 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

$

-

$

26,308

Fourth Quarter 2021

March 11, 2021

7,224

-

7,224

Fourth Quarter 2021

April 5, 2021**

138,506

82,498

56,008

Fourth Quarter 2021 - Fourth Quarter 2022

Total

$

172,038

$

82,498

$

89,540

* 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.

Subsequent to September 30, 2021, in October 2021, the Company entered into a purchase agreement with Bitmain to acquire 9,000 S19j Pro (100 TH/s) miners, for a total purchase price of approximately $54 million, with an anticipated delivery and deployment schedule set for May 2022 through October 2022.