Property and equipment consisted of the following:

During the six months ended June 30, 2026, the Company incurred approximately $400,000 of capital expenditures that remained unpaid as of June 30, 2026 and were included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheet. Accordingly, these amounts were excluded from capital expenditures presented in investing activities in the accompanying condensed consolidated statement of cash flows.

Depreciation expense was $250,910 and $501,011 for the three and six months ended June 30, 2026 and $193,809 and $356,981 for the three and six months ended June 30, 2025, respectively.

On June 5, 2026, the Company de-energized substantially all of its bitcoin mining hosting operations following a decline in the price of bitcoin that rendered the Company’s hosting activities uneconomic at prevailing market conditions. The de-energization coincided with the Company’s strategic transition toward AI and HPC infrastructure development. The site remained de-energized as of June 30, 2026 and as of the date of this report the Company has not resumed hosting operations at the site. As of June 30, 2026, the Company had not committed to a formal plan of abandonment, retirement or asset disposal with respect to the current site, and no asset impairment, asset retirement obligation, restructuring liability or held-for-sale classification has been recorded in connection with the transition as of June 30, 2026.

Asset acquisition

On May 15, 2025, the Company entered into a Purchase and Sale Agreement with Blue Ridge Digital Mining, LLC to acquire 60 Antbox containers for a total contractual consideration of $2,332,000, payable in 24 equal monthly installments of approximately $97,167, beginning August 15, 2025 and ending July 15, 2027.

This transaction has been accounted for as an asset acquisition under common control in accordance with ASC 805-50, as both the Company and the seller are ultimately controlled by VCV Digital Infrastructure Holdings LLC. The Antboxes were delivered and accepted during the second quarter of 2025 and have been capitalized under equipment within property and equipment.

Future minimum payments as of June 30, 2026 related to this asset acquisition are as follows:

As of June 30, 2026, eleven installment payments of $97,167 each have been made.

The total remaining consideration payable of $1,263,168 as of June 30, 2026 is classified as follows in the condensed consolidated balance sheets:

Asset held for sale

As of December 31, 2024, the Company had nine mining containers classified as held for sale. These containers were measured at the lower of their carrying amount or fair value less costs to sell, in accordance with ASC 360-10, Property, Plant and Equipment – Overall.

During the first quarter of 2025, the Company sold the remaining nine mining containers for total proceeds of $132,000, resulting in a gain of $67,714 recorded in other income in the accompanying condensed consolidated statements of operations. As of June 30, 2026 and December 31, 2025, the Company had no mining containers classified as held for sale.