v3.26.1
PROPERTY, PLANT, AND EQUIPMENT
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
PROPERTY, PLANT, AND EQUIPMENT
4. PROPERTY, PLANT, AND EQUIPMENT
The following table presents the composition of property, plant and equipment, net at the dates indicated (in thousands):
June 30, 2026December 31, 2025Estimated Useful Lives
Land and improvements(1)
$90,770 $21,769 
20 years
Building and improvements
509,709 275,186 
10 to 39 years
Mining equipment
308,479 393,623 
3 years
Electrical and mechanical equipment
127,885 80,384 
15 years
Other property, plant and equipment
7,385 18,164 
5 to 7 years
Total
1,044,228 789,126 
Less: accumulated depreciation and amortization
371,262 406,893 
Total
672,966 382,233 
Add: Construction in progress
1,101,176 911,066 
Property, plant and equipment, net$1,774,142 $1,293,299 
(1)Estimated useful life of improvements. Land is not depreciated.
Depreciation expense for the three and six months ended June 30, 2026 was $15.3 million and $31.6 million, respectively, compared to $18.6 million and $38.1 million for the three and six months ended June 30, 2025, respectively. During the six months ended June 30, 2026, $465.3 million of construction in progress was placed into service, primarily reflecting the commissioning of colocation infrastructure at the Company’s data center facilities.
The following table presents the composition of property, plant and equipment, net that is subject to operating leases with customers and is included in the total property, plant and equipment, net presented above, at the dates indicated (in thousands):
June 30, 2026December 31, 2025
Land and improvements
$79,590 $5,546 
Building and improvements
471,976 146,082 
Electrical and mechanical equipment
78,752 19,146 
Other property, plant and equipment
250 226 
Total
630,568 171,000 
Less: accumulated depreciation and amortization
16,473 9,856 
Property, plant and equipment, net leased to customers
$614,095 $161,144 
Depreciation expense for assets leased to customers was $4.9 million and $7.5 million for the three and six months ended June 30, 2026, respectively, and immaterial for the three and six months ended June 30, 2025, and is included in the total depreciation expense above.
During the six months ended June 30, 2026, the Company recognized impairment charges of $266.5 million on its mining-related property, plant and equipment, consisting of $151.6 million related to mining equipment and $114.9 million related to mining infrastructure, all of which were recognized during the three months ended March 31, 2026. No impairment charges were recognized during the three months ended June 30, 2026, or during the three and six months ended June 30, 2025.
The Company identified indicators of impairment of its mining equipment and mining infrastructure asset groups during the three months ended March 31, 2026, including declines in bitcoin prices, declines in bitcoin hashprice, and significant decreases in secondary market values for digital asset mining equipment. In accordance with ASC Topic 360-10, the Company performed a recoverability assessment of its mining-related asset groups. The undiscounted future cash flows for each asset group was less than its carrying amount, indicating the assets were not recoverable.
The Company measured the fair value of its mining equipment using a market approach based on observable secondary market pricing data for similar assets, classified as Level 2 within the fair value hierarchy. The Company measured the fair value of its mining infrastructure assets using an income approach based on a discounted cash flow analysis reflecting the estimated future cash flows a market participant would expect from operating the assets as mining hosting facilities, classified as Level 3 within the fair value hierarchy. Refer to Note 9 — Fair Value Measurements for the significant unobservable inputs used in the Level 3 measurement.
Assets Held for Sale
During the three months ended June 30, 2026, the Company committed to a plan to sell certain undeployed mining equipment and certain electrical equipment that the Company no longer intends to use in its operations. The assets met the criteria for held-for-sale classification under ASC 360-10-45-9, and the Company expects the sales to be completed within one year. Upon classification, depreciation ceased and the assets were remeasured to fair value less cost to sell; see Note 9 — Fair Value Measurements. The remeasurement resulted in a loss of $19.5 million, recognized within “Loss on remeasurement of assets held for sale” on the condensed consolidated statement of operations for the three and six months ended June 30, 2026. The remaining carrying value of $13.8 million is included within “Customer funding receivable and other current assets” on the condensed consolidated balance sheets as of June 30, 2026.