Property and equipment consist of the following:


($ in thousands)	June 30, 2024			September 30, 2023
Land	$	6,817		$	4,144
Land improvements		5,446			1,564
Building and improvements		75,934			52,198
Leasehold improvements		2,033			672
Miners		752,489			527,868
Mining equipment		24,325			18,706
Infrastructure		131,797			45,612
Machinery and equipment		2,857			1,907
Furniture and fixtures		1,398			386
Construction in progress		15,271			81,875
Total	$	1,018,367		$	734,932
Less: accumulated depreciation		(449,974	)		(170,537	)
Property and equipment, net	$	568,393		$	564,395

In April 2024, as a result of the bitcoin halving event and the execution of the 100,000 miner purchase option for new Bitmain Antminer S21 Pro models (see Note 16 - Commitments and Contingencies), the Company concluded that various miner models (S19J, S19 J Pro and S19 J Pro+) would be removed from service and replaced with newer, more efficient miner models. The planned replacement is expected to be completed by December 31, 2024. Accordingly, the Company performed an impairment test on the miners planned for replacement, resulting in an impairment charge of $189,235, which is recorded in the Condensed Consolidated Statements of Operations and Comprehensive Loss as "Impairment expense - fixed assets". The fair value less residual value of the impaired miners will depreciated over the remaining period in which they are operating.

Effective May 1, 2024, as a result of new information about actual lives of its bitcoin miners based on historical experience and advancements in overall miner efficiency, the Company has reduced the useful lives of miners from five years to three years. The impact of the change in useful lives of miners from five to three years increased depreciation expense and loss before income tax expense by approximately $7,261 for the three months ended June, 30, 2024, and decreased basic and diluted earnings per share by $0.03 and $0.04, for the three and nine months ended June 30, 2024, respectively. Total depreciation expense for the nine months ended June 30, 2024 and 2023 was $101,198 and $60,926, respectively.

For the nine months ended June 30, 2024, the Company disposed of $14,075 of miners with a net book value of $3,079 for $798 and recognized a $2,281 loss on disposal.

The Company placed-in service property and equipment of $317,147 during the nine months ended June 30, 2024, which included $287 in machinery and equipment acquired in equipment loan transactions. This increase in fixed assets primarily consisted of miners of $238,696. Assets acquired through acquisition transactions (see Note 3 - Acquisitions) resulted in an additional $46,967 in total assets placed in service. Additionally, in January 2024, the Company purchased raw land next to the Sandersville, GA location for approximately $1,038.

On April 7, 2023, CleanSpark HQ, LLC (“HQLLC”), a single-member limited liability company and subsidiary wholly owned by the Company, purchased certain real property located in Henderson, Nevada for $4,100. The Company utilizes this office space as its new corporate headquarters. The real property is recorded in building and building improvements and was placed in service in the first quarter of fiscal 2024.

Construction in progress: The Company is expanding its facilities in the State of Georgia, including infrastructure, building, and land improvements to expand its mining operations.