Note 3. Fixed Assets and Intangible Assets, net

As of June 30, 2025 and December 31, 2024, there were approximately 5,560 and 5,840 miners, respectively located at various hosting sites. The Company’s depreciation expense recognized for the three and six months ended June 30, 2025 and 2024 was $2.0 million and $4.0 million, respectively for 2025 and $1.9 million and $3.9 million, respectively for 2024.

In order to accommodate an incoming shipment of S21 mining machines in April 2024, management identified 365 mining machines at a Core hosting facility that would require relocation. As part of its impairment testing management considered the possible cashflows and probabilities associated with the relocation and continued use of 365 mining machines at a separate hosting facility location and the potential sale of such assets to a third party. Based on the assessment performed, management concluded a sale was probable and an impairment of $1.2 million on the mining machines was recorded as of March 31, 2024, which was calculated as the net carrying value of the 365 mining machines of $1.3 million less the sales price of $79 thousand. The loss was recorded on our consolidated statements of operations as “Impairment loss on mining equipment” for the six months ended June 30, 2024.

On April 16, 2024, the 365 mining machines were sold to a third-party for $79 thousand. There was no additional loss recognized upon the asset sale.

There was a $100 thousand and $286 thousand loss on disposal of fixed assets during the three and six months ended June 30, 2025, respectively and a $34 thousand and $42 thousand loss on disposal of fixed assets during the three and six months ended June 30, 2024, respectively.

During three and six months ended June 30, 2025 the Company recognized $55 thousand and $110 thousand amortization expense, respectively. There was nil amortization expense recognized during the three and six months ended June 30, 2024.