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PROPERTY, PLANT AND EQUIPMENT
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, net consisted of the following (in thousands):
June 30, 2026December 31, 2025
Miners$182,124 $213,655 
Construction in process2,371,364 1,069,059 
Leasehold improvements579,016 265,010 
Land
331,384 — 
Electrical and computer equipment270,503 91,158 
Building and improvements
16,974 — 
Office furniture and fixtures413 375 
Vehicles501 194 
Total3,752,279 1,639,451 
Less: accumulated depreciation(152,088)(131,752)
Property and equipment, net$3,600,191 $1,507,699 
The Company capitalizes a portion of the interest on funds borrowed to finance its capital expenditures. Capitalized interest is recorded as part of an asset’s cost and is depreciated over the same period as the related asset. Capitalized interest costs were $32.7 million and $52.9 million for the three and six months ended June 30, 2026, respectively. The Company capitalized no interest costs during the three and six months ended June 30, 2025.
Depreciation expense was $21.2 million and $49.7 million during the three and six months ended June 30, 2026, respectively, and $18.8 million and $34.4 million during the three and six months ended June 30, 2025, respectively. During the three and six months ended June 30, 2026, the Company recorded accelerated depreciation expense of $2.6 million and $14.5 million, respectively, related to a miner building and related miners of which the Company shortened their useful lives based on the shutdown of operations as well as certain electrical equipment acquired at the Justified Data Campus, each for purposes of supporting the HPC operations. The Company did not record accelerated depreciation expense during the three and six months ended June 30, 2025. The Company recorded no impairment during the three months ended June 30, 2026. During the six months ended June 30, 2026, the Company recorded impairment charges of $25.7 million, consisting of $16.8 million related to asset retirement costs capitalized in connection with the Justified Data Campus asset acquisition and $8.9 million related to the shutdown operations of another miner building for purposes of supporting the HPC operations. The asset retirement costs were fully impaired because the assets associated with the asset retirement obligation are not expected to provide future economic benefit to the Company. The Company recorded no impairment during the three and six months ended June 30, 2025.
During the three and six months ended June 30, 2026, the Company sold or otherwise disposed of 360 miners and received proceeds of $0.1 million, resulting in a loss on disposal of property, plant and equipment of $0.2 million. During the three and six months ended June 30, 2026, the Company also reclassified 500 miners as held for sale which are included in other current assets in the condensed consolidated balance sheet measured at the lower of their carrying amount or fair value less costs to sell, resulting in a write-down of $0.3 million included in loss on disposal of property, plant and equipment in the condensed consolidated statements of operations. The miners were subsequently sold in July 2026 for proceeds of $0.1 million. In addition, during the three and six months ended June 30, 2026 the Company sold certain electrical equipment at the Justified Data Campus for consideration of a $0.6 million credit under a reimbursement agreement (see Note 12), resulting in a gain on disposal of property, plant and equipment of $0.2 million.
During the three and six months ended June 30, 2025, the Company sold or otherwise disposed of 2,918 miners and received proceeds of $1.9 million resulting in a loss on disposal of property, plant and equipment of $3.8 million in the condensed consolidated statements of operations.