Annual report pursuant to Section 13 and 15(d)

Property and Equipment (Tables)

v3.22.0.1
Property and Equipment (Tables)
12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment

Property and equipment consisted of the following as of December 31, 2021 and 2020 (in thousands):

Life (Years)

December 31, 2021

December 31, 2020

Buildings and improvements

 

 

10-25

$

78,548

 

$

-

Miners and mining equipment

 

 

2

87,921

 

14,406

Machinery and facility equipment

 

 

5-7

12,373

 

-

Office and computer equipment

 

 

3

1,007

83

Construction in progress

 

 

113,598

 

-

Total cost of property and equipment

 

 

293,447

14,489

Less accumulated depreciation

 

 

(30,467

)

(4,346

)

Property and equipment, net

 

 

$

262,980

$

10,143

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

As of December 31, 2021, the Company had outstanding executed purchase agreements for the purchase of miners from Bitmain for a total of 30,495 new S19j-Pro model miners and 30,000 new S19XP model miners, scheduled to be delivered through December 2022, and had paid a deposit of 43% of the total purchase price. 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 (in thousands):

Agreement Date *

Original Purchase Commitment

Open Purchase Commitment

Deposit Balance

Expected Shipping

April 5, 2021

$

138,506

$

52,838

$

85,668

First Quarter 2022 - Fourth Quarter 2022

October 29, 2021

56,250

31,950

24,300

Second Quarter 2022 - Third Quarter 2022

November 22, 2021

32,550

21,158

11,392

Third Quarter 2022 - Fourth Quarter 2022

December 10, 2021

97,650

63,472

34,178

Third Quarter 2022 - Fourth Quarter 2022

December 24, 2021

202,860

131,859

71,001

Third Quarter 2022 - Fourth Quarter 2022

Total

$

527,816

$

301,277

$

226,539

* 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 $85.7 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, through October 2022.