9. PROPERTY, PLANT, AND EQUIPMENT, NET

Property, plant and equipment, net was comprised of the following:

For the three months ended September 30, 2026 and 2025, depreciation and amortization expenses for property, plant and equipment were $11.0 million and $9.5 million, respectively and for the nine months ended September 30, 2026 and 2025, depreciation and amortization expenses were $30.8 million and $24.6 million, respectively. Construction in Progress represents assets received but not placed into service as of September 30, 2026 and December 31, 2025.

As of September 30, 2026 and December 31, 2025, accrued purchases for property, plant and equipment totaled $33.8 million and $27.5 million, respectively, and were included in other payables and accrued liabilities in the consolidated balance sheets.

On May 8, 2026, the Company acquired the MTL-3 property following the exercise of the purchase option under the related data center lease agreement (refer to Note 8. Leases). The purchase price of CAD $24.2 million (approximately $ 17.3 million), and the capitalized transactions costs of CAD $1.4 million (approximately $1.0 million), was allocated between land and building based on their relative fair value.

During the three months ended September 30, 2026, the Company placed its NC-1 data center into service and reclassified the related costs from construction in progress to buildings and colocation service equipment within property and equipment, net. Depreciation of these assets commenced when they were ready for their intended use.

In the second quarter of 2026, we had an impairment charge of $5.0 million (as described in the section below, Disposals of Property, Plant and Equipment). There were no other impairment charges recorded for the nine months ended September 30, 2026. 

During 2024 and 2025, the Company purchased data storage and network equipment that was subsequently derecognized from property, plant and equipment upon entering into sales-type lease arrangements, with the related assets recorded as net investments in leases, totaling approximately $10.6 million and $7.9 million, respectively. In the second quarter of 2026, upon termination of a customer agreement, the Company derecognized net investment in leases of $1.4 million for the related assets and recognized the amount in property, plant, and equipment. The Company then entered into a new sales-type lease arrangement with a separate customer, derecognizing the related assets from property, plant and equipment at carrying value of $0.3 million and recording net investment in leases. In the third quarter of 2026, the Company entered into another sales-type lease arrangement with the same customer under the same structure, derecognizing the related assets from property, plant, and equipment at their $0.3 million carrying value and recording them as net investment in lease. Refer to Note 8. Leases for further details.

Disposals of Property, Plant and Equipment

For the nine months ended September 30, 2026, the Company sold 1,162 bitcoin miners for a total consideration of $93 thousand. On the date of the transaction, the total original cost and accumulated depreciation of these miners was $1.6 million. The Company recognized a gain of $93 thousand from the sale of miners which was recorded in the amount of “Net gain (loss) from disposal of property and equipment”. The Company has received the cash consideration in October 2026.

For the nine months ended September 30, 2026, the Company sold 126 H200s GPU for a total consideration of approximately $26.1 million. On the date of the transaction, the carrying amount of these GPUs was $24.3 million. The Company recognized a gain of $1.8 million from the sale which was recorded within Net gain from disposal of property, plant and equipment. As of the date of this Form 10-Q, the Company has collected the full cash consideration of $26.1 million.

In the second quarter of 2026, the Company determined that it would discontinue further investment in, and use of, its internally-developed software platform. As a result of this decision, effective June 4, 2026, the Company recorded an impairment charge of the remaining book value of $5.0 million during the nine months ended September 30, 2026. The impairment charge is presented as a separate line item within operating expenses in the accompanying consolidated statements of operations and is excluded from depreciation and amortization expense.