Bitmine Immersion (BMNR) 10-Q 15 Apr 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Feb. 29, 2024	Apr. 15, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Feb. 29, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--08-31
Entity File Number	000-56220
Entity Registrant Name	BITMINE IMMERSION TECHNOLOGIES, INC.
Entity Central Index Key	0001829311
Entity Tax Identification Number	84-3986354
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	2030 Powers Ferry Road SE
Entity Address, Address Line Two	Suite 212
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30339
City Area Code	404
Local Phone Number	816-8240
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		49,821,698

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Feb. 29, 2024	Aug. 31, 2023
Current assets:
Cash and cash equivalents	$ 342,296	$ 270,547
Prepaid expenses	198,084	105,000
Cryptocurrency	11,733	129,469
Notes receivable - short term	731,472	0
Notes receivable related party-short term	374,444	374,444
Total current assets	1,658,028	879,460
Notes receivable - long term	0	731,472
Notes receivable - related party long term	468,056	655,277
Investment in joint venture	867,247	987,429
Fixed assets, net	2,145,364	495,702
Fixed assets - not in service	2,711,142	4,453,466
Total assets	7,849,837	8,202,805
Current liabilities:
Accounts payable and accrued liabilities	403,739	74,904
Accrued interest - related party	200,730	97,460
Loans payable - related party	1,625,000	1,300,000
Bitcoin loan	93,779	0
Derivative liability	114,835	0
Deferred revenue - short-term	86,193	86,193
Total current liabilities	2,524,276	1,558,558
Deferred revenue long-term	343,787	386,884
Total liabilities	2,868,063	1,945,441
Commitments and contingencies
Stockholders' Equity:
Series A Preferred Stock, $0.0001 par value, 500,000 shares authorized, 453,966 and 453,966 shares issued and outstanding as of February 29, 2024 and August 31, 2023, respectively	45	45
Common stock, $0.0001 par value, 500,000,000 shares authorized; 49,821,698 and 49,665,649 shares issued and outstanding as of February 29, 2024 and August 31, 2023 respectively	4,982	4,967
Additional paid-in capital	11,738,635	11,183,720
Accumulated deficit	(6,761,889)	(4,931,367)
Total stockholders' equity	4,981,774	6,257,365
Total liabilities and equity	$ 7,849,837	$ 8,202,805

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Feb. 29, 2024	Aug. 31, 2023
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	49,821,698	49,665,649
Common stock, shares outstanding	49,821,698	49,665,649
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	453,966	453,966
Preferred stock, shares outstanding	453,966	453,966

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2024	Feb. 28, 2023	Feb. 29, 2024	Feb. 28, 2023
Revenue from the sale of mining equipment	$ 20,471	$ 51,564	$ 190,192	$ 124,364
Revenue from hosting	10,116	0	21,980	0
Revenue from self-mining	861,026	104,526	1,190,749	133,443
Total revenue	891,613	156,090	1,402,921	257,807
Gross profit (loss)	323,622	60,633	427,704	43,874
Operating expenses:
General and administrative expenses	229,047	42,633	297,445	61,113
Depreciation	235,370	88,213	457,901	147,265
Professional fees	227,530	101,065	303,390	262,803
Related party compensation	357,006	130,430	704,149	239,823
Impairment of fixed assets	0	0	0	122,950
Realized gain from the sale of bitcoin	(76,591)	(12,761)	(76,591)	(12,761)
Impairment of cryptocurrency	0	0	0	3,523
Total operating expenses	972,363	349,580	1,686,294	824,716
Income(loss) from operations	(648,741)	(288,947)	(1,258,590)	(780,842)
Other income (expense)
Interest expense	(54,279)	(22,211)	(153,699)	(27,019)
Loss on the extinguishment of debt	(183,670)	0	(221,208)	0
Loss on investment	(68,559)	0	(111,773)	0
Change in derivative liability	37,777	0	(114,835)	0
Other income	0	0	0	16,939
Interest income	14,791	3,751	29,584	12,850
Other income (expense), net	(253,941)	(18,460)	(571,931)	2,770
Net loss	$ (902,682)	$ (307,407)	$ (1,830,522)	$ (778,071)
Basic earnings (loss) per common share	$ (0.02)	$ (0.01)	$ (0.04)	$ (0.02)
Diluted earnings (loss) per common share	$ (0.02)	$ (0.01)	$ (0.04)	$ (0.02)
Weighted-average number of common shares outstanding, Basic	49,821,698	48,778,343	49,785,202	48,734,387
Weighted-average number of common shares outstanding, Diluted	49,821,698	48,778,343	49,785,202	48,734,387
Sale Of Mining Equipment [Member]
Total revenue	$ 20,471		$ 190,192	$ 124,364
Cost of Revenue	0	$ 1,500	180,891	44,580
Self Mining Cryptocurrency [Member]
Total revenue	861,026		1,190,749	133,443
Cost of Revenue	556,849	93,957	779,791	169,352
Hosting Services [Member]
Total revenue	10,116		21,980
Cost of Revenue	$ 11,142	$ 0	$ 14,534	$ 0

Condensed Statements of Changes

Condensed Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Series A Preferred Stocks [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Aug. 31, 2022	$ 45	$ 4,861	$ 9,865,865	$ (2,466,566)	$ 7,404,205
Beginning balance, shares at Aug. 31, 2022	453,966	48,606,915
Common stock issued for services -related party		$ 7	31,422		31,429
Common stock issued for services -related party, shares		71,429
Common shares issued for services		$ 10	43,990		44,000
Common shares issued for services, shares		100,000
Net loss				(470,665)	(470,665)
Ending balance, value at Nov. 30, 2022	$ 45	$ 4,878	9,941,277	(2,937,231)	7,008,969
Ending balance, shares at Nov. 30, 2022	453,966	48,778,344
Beginning balance, value at Aug. 31, 2022	$ 45	$ 4,861	9,865,865	(2,466,566)	7,404,205
Beginning balance, shares at Aug. 31, 2022	453,966	48,606,915
Net loss					(778,071)
Ending balance, value at Feb. 28, 2023	$ 45	$ 4,885	9,991,055	(3,244,638)	6,751,348
Ending balance, shares at Feb. 28, 2023	453,966	48,848,767
Beginning balance, value at Nov. 30, 2022	$ 45	$ 4,878	9,941,277	(2,937,231)	7,008,969
Beginning balance, shares at Nov. 30, 2022	453,966	48,778,344
Common stock issued for services -related party		$ 7	49,778		49,785
Common stock issued for services -related party, shares		70,423
Net loss				(307,407)	(307,407)
Ending balance, value at Feb. 28, 2023	$ 45	$ 4,885	9,991,055	(3,244,638)	6,751,348
Ending balance, shares at Feb. 28, 2023	453,966	48,848,767
Beginning balance, value at Aug. 31, 2023	$ 45	$ 4,967	11,183,720	(4,931,367)	6,257,365
Beginning balance, shares at Aug. 31, 2023	453,966	49,665,649
Stock based compensation -related parties		$ 8	277,458		277,466
Stock based compensation -related parties, shares		83,056
Net loss				(927,840)	(927,840)
Ending balance, value at Nov. 30, 2023	$ 45	$ 4,975	11,461,178	(5,859,207)	5,606,991
Ending balance, shares at Nov. 30, 2023	453,966	49,748,705
Beginning balance, value at Aug. 31, 2023	$ 45	$ 4,967	11,183,720	(4,931,367)	6,257,365
Beginning balance, shares at Aug. 31, 2023	453,966	49,665,649
Net loss					(1,830,522)
Ending balance, value at Feb. 29, 2024	$ 45	$ 4,982	11,738,635	(6,761,889)	4,981,774
Ending balance, shares at Feb. 29, 2024	453,966	49,821,698
Beginning balance, value at Nov. 30, 2023	$ 45	$ 4,975	11,461,178	(5,859,207)	5,606,991
Beginning balance, shares at Nov. 30, 2023	453,966	49,748,705
Stock based compensation -related parties		$ 7	277,458		277,465
Stock based compensation -related parties, shares		72,993
Net loss				(902,682)	(902,682)
Ending balance, value at Feb. 29, 2024	$ 45	$ 4,982	$ 11,738,635	$ (6,761,889)	$ 4,981,774
Ending balance, shares at Feb. 29, 2024	453,966	49,821,698

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Feb. 29, 2024	Feb. 28, 2023
Cash flows from operating activities
Net loss	$ (1,830,522)	$ (778,071)
Stock based compensation	554,931	125,214
Depreciation	457,901	147,265
Loss on the sale of equipment	31,641	0
Change in derivative liability	114,835	0
Loss on investment	111,773	0
Change in balance sheet accounts
Impairment of fixed assets	0	122,950
Cryptocurrencies	(128,010)	(14,627)
Notes receivable	187,221	(71,714)
Prepaid expenses	(93,084)	0
Accounts payable and accrued expenses	328,835	(41,134)
Deferred revenue	(43,096)	30,938
Accrued interest - related party	103,270	27,019
Net cash (used in) operating activities	(204,304)	(452,160)
Cash flows from investing activities
Return of capital on joint venture	8,408	0
Purchase of fixed assets	(57,355)	(469,843)
Net cash (used in) investing activities	(48,946)	(469,843)
Cash flows from financing activities:
Related party loans - net	325,000	800,000
Net cash provided by financing activities	325,000	800,000
Net increase (decrease) in cash and cash equivalents	71,749	(122,003)
Cash and cash equivalents at beginning of period	270,547	392,550
Cash and cash equivalents at end of period	342,296	270,547
Supplemental disclosure of non-cash financing activity
Proceeds received from Bitcoin loan	577,934	0
Repayment of bitcoin loan in bitcoin	484,156	0
Purchase of equipment with bitcoin	339,525	0
Sale of fixed assets for note receivable	0	613,514
Property contributed to joint venture	$ 0	$ 987,249

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended				6 Months Ended
	Feb. 29, 2024	Nov. 30, 2023	Feb. 28, 2023	Nov. 30, 2022	Feb. 29, 2024	Feb. 28, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss) Attributable to Parent	$ (902,682)	$ (927,840)	$ (307,407)	$ (470,665)	$ (1,830,522)	$ (778,071)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Feb. 29, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES	6 Months Ended
	Feb. 29, 2024
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES	NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES About Bitmine Immersion Technologies, Inc. Bitmine Immersion Technologies Inc. f/k/a Sandy Springs Holdings, Inc. (“ Bitmine Company By a written consent dated July 16, 2021, holders of a majority of the Company’s issued and outstanding common stock approved a resolution to appoint Jonathan Bates, Raymond Mow, Michael Maloney, and Seth Bayles to the board of directors of the Company, and to appoint Jonathan Bates as Chairman, Seth Bayles as Corporate Secretary, Raymond Mow as Chief Financial Officer, and Ryan Ramnath as Chief Operating Officer (collectively, the “ New O&Ds The appointment of certain of the New O&Ds to the Company’s board, and issuance to the New O&Ds of a controlling interest in the Company, were made in order to enable the Company to enter the business of creating a hosting center for Bitcoin mining computers primarily utilizing immersion cooling technology, as well mining the Bitcoin digital currency for its own account. Prior to the change of control to the New O&Ds, the Company was a shell company. During the fiscal year ended August 31, 2022, the Company began implementing its business plan by generating revenue from the mining of Bitcoin digital currency, hosting a third party Bitcoin miner and the sale of mining equipment. The Company’s year-end is August 31st. Basis of Presentation The foregoing unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“ GAAP SEC The preparation of condensed financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the condensed financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s condensed financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions that could have a material effect on the reported amounts of the Company’s financial position and results of operations. Operating results for the six months ended February 29, 2024, are not necessarily indicative of the results that may be expected for the year ending August 31, 2024. Management’s Representation of Interim Condensed Financial Statements The accompanying unaudited condensed financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company uses the same accounting policies in preparing quarterly and annual condensed financial statements. Certain information and footnote disclosures normally included in condensed financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These condensed financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. Use of Estimates The preparation of condensed financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements. The most significant estimates relate to the calculation of stock-based compensation, calculation of the Company’s derivative liability, useful lives and impairment of fixed assets, income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these condensed financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates. There have been no material changes to the Company’s accounting estimates since the Company’s condensed financial statements for the fiscal year ended August 31, 2023. Segment Reporting The Company operates in one segment - the cryptocurrency mining industry. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. All material Company operations qualify for aggregation due to their similar customer base and similarities in economic characteristics, nature of products and services, and procurement, manufacturing and distribution processes. Revenue Recognition On July 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). Results for reporting periods beginning after January 1, 2018, are presented under ASC 606. Revenues from digital currency mining The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: · Step 1: Identify the contract with the customer; · Step 2: Identify the performance obligations in the contract; · Step 3: Determine the transaction price; · Step 4: Allocate the transaction price to the performance obligations in the contract; and · Step 5: Recognize revenue when the Company satisfies a performance obligation. Step 1: Step 2 · The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct); and · The entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). Based on these criteria, the Company has a single performance obligation in providing hash calculation services (i.e., hashrate) to the mining pool operator (i.e., customer). The performance obligation of hash calculation services is fulfilled daily over-time, as opposed to a point in time, because the Company provides the hashrate throughout the day and the customer simultaneously obtains control of it and uses the asset to produce bitcoin. The Company has full control of the mining equipment utilized in the mining pool and if the Company determines it will increase or decrease the processing power of its machines and/or fleet (i.e., for repairs or when power costs are excessive) the hash calculation services provided to the customer will be reduced. Step 3 The transaction consideration the Company earns is all variable since it is dependent on the daily hash calculation services provided by the Company, as well as other factors outside the control of the Company, such as the difficulty index of the bitcoin network. The Company’s bitcoins earned through the contractual payout formula is not known until the Company’s computational hashrate contributed over the daily measurement period is fulfilled over-time daily between midnight-to-midnight UTC time. The Company’s expected amount of the global network transaction fee rewards earned are calculated at the end of each transactional day (midnight to midnight UTC time). There are no other forms of variable considerations, such as discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties, or other similar items. The Company fully constrains all variable consideration as a result of ASC 606-10-32-11 and 12 because the amount of consideration is highly susceptible to factors outside of our control as defined by the Company’s customer’s payout methodology. The variable consideration is constrained until the Company receives confirmation of the amount, usually via settlement of the fractional share of block reward and transaction fee in the Company’s digital wallet (i.e., at that point, the variability is resolved and there is no longer the reasonable possibility of significant reversal of revenue). Before settlement occurs, estimation of the variable consideration to which the Company is entitled, which depends on inputs unknowable to the Company, carries the risk of a significant revenue reversal from mis-estimation. Settlement of consideration typically occurs within 24 hours after the end of each day. Step 4 Step 5 In exchange for providing hash calculation services, the Company is entitled to the expected bitcoin awards earned over the measurement period, plus the expected global transaction fee rewards for the respective measurement period, less net digital asset fees due to the mining pool operator over the measurement period. The transaction consideration the Company receives is non-cash consideration, in the form of bitcoin. The Company measures the bitcoin at the closing U.S. dollar spot rate at the end of the date earned (midnight UTC). However, this accounting convention does not result in materially different revenue recognition from using the fair value of the bitcoin earned at contract inception and has been consistently applied in all periods presented. There are no deferred revenues or other liability obligations recorded by the Company since there are no payments in advance of the performance. At the end of the 24 hour “midnight-to-midnight” period, there are no remaining performance obligations. During the six months ending February 29, 2024, the Company utilized one mining pool for its self-mining operations, which charges 0.3% of the bitcoin payable to the Company as a pool management fee. During the three and six months ending February 29, 2024, the Company generated $ 861,026 1,190,749 Revenues from Hosting The Company provides energized space to customers who locate their equipment within the Company’s co-hosting facility. The equipment generating the hosting revenue is owned by the customer. The Company gives hosting customers the option of having all mining proceeds paid into a cold wallet address in the Company’s name, which case the Company pays the hosting client its share of mining awards on a daily basis, or having all mining awards sent to an account of the customer, in which case the Company bills the customer monthly for any hosting fee that is contingent on the amount of the client’s award. All performance obligations are achieved simultaneously by providing the hosting environment for the customers’ operations. Hosting revenues consist of amounts billed in U.S. dollars for electricity and other fees, and a percentage of cryptocurrency generated by the client’s hosting activities. With regard to hosting revenues that are billed in U.S. dollars, revenues are recorded at the time of invoicing. With regard to hosting revenues that are based on a percentage of cryptocurrency generated by the customer, revenues are recorded based on the Company’s share of cryptocurrency received from the mining pool on the date of receipt or invoicing. During the three and six months ending February 29, 2024, the Company generated $ 10,116 21,980 Revenues from the sale of mining equipment The Company records revenue from the resale of mining equipment it has purchased. Revenue for the sale of mining equipment is recognized under the guidelines of ASC 606. During the three and six months ending February 29, 2024, the Company generated $ 20,471 190,192 Cash and cash equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. On February 29, 2024, and August 31, 2023, respectively, the Company’s cash equivalents totaled $ 342,296 270,547 Cryptocurrency Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment quarterly, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses, if the price of cryptocurrency increases, is not permitted. During the three and six months ending February 29, 2024, the Company realized gains of $ 76,591 76,591 Cryptocurrency earned by the Company through its mining activities are included within operating activities on the accompanying consolidated statements of cash flows. The sales of digital currencies are included within investing activities in the accompanying consolidated statements of cash flows and any realized gains or losses from such sales are included in other income (expense) in the consolidated statements of operations and comprehensive income (loss). The Company accounts for its gains or losses in accordance with the moving weighted average method of accounting. The Company holds its cryptocurrencies in an account at Bitgo Trust (“Bitgo”), a well-known Bitcoin custodian, which it also uses to liquidate its Bitcoin when necessary. The Company also has an account with Gemini Trust Company, LLC, which is a qualified custodian regulated by the New York Department of Financial Services as a backup facility, and may hold Bitcoin from time to time in a cold storage wallet. The Company uses Bitgo’s multi-signature feature for account access. Income taxes The Company accounts for income taxes under FASB ASC 740, “Accounting for Income Taxes” “Accounting for Uncertainty in Income Taxes” Stock-based Compensation The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service. Net Loss per Share Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. Stock Purchase Warrants The Company accounts for warrants issued to purchase shares of its common stock as equity in accordance with FASB ASC 480, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock, Distinguishing Liabilities from Equity. If the warrants do not require liability classification under ASC 815-40, in order to conclude equity classification, we also assess whether the warrants are indexed to our common stock and whether the warrants are classified as equity under ASC 815-40 or other GAAP. After all such assessments, we conclude whether the warrants are classified as liability or equity. Liability classified warrants require fair value accounting at issuance and subsequent to initial issuance with all changes in fair value after the issuance date recorded in the statements of operations. Equity classified warrants only require fair value accounting at issuance with no changes recognized subsequent to the issuance date. We do not have any liability classified warrants as of any period presented. Property and equipment Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Estimated useful lives for leasehold improvements are typically the lesser of the estimated useful life of the asset or the life of the term of the lease. The estimated useful lives for all other property and equipment are as follows: Schedule of useful lives of assets Life (Years) Miners and mining equipment 2 Machinery and equipment 5 7 Office and computer equipment 3 No depreciation is recorded on an asset until it is placed in service. Due to the nature of the equipment, it can only be placed in service when the hosting site is properly configured to turn on the machines. As of February 29, 2024, and August 31, 2023, the Company had $ 2,711,142 4,453,466 Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Codification Improvements Codification Improvements to Topic 842, Leases (Topic 842) Targeted Improvements, We adopted ASC 842 on July 16, 2020. The adoption of this guidance did not have any impact on our condensed financial statements. In March 2022, the SEC staff released Staff Accounting Bulletin No. 121 (“SAB 121”), which requires entities that hold crypto assets on behalf of platform users to recognize a liability to reflect the entity’s obligation to safeguard the crypto assets held for its platform users, whether directly or through an agent or another third party acting on its behalf, along with a corresponding safeguarding asset. Both the liability and corresponding safeguarding asset shall be measured at fair value. SAB 121 also requires disclosure of the nature and amount of crypto assets being safeguarded, how the fair value is determined, an entity’s accounting policy for safeguarding liabilities and corresponding safeguarding assets, and may require disclosure of other information about risks and uncertainties arising from the entity’s safeguarding activities. The Company is not in the business of holding its customer’s crypto assets for safekeeping. For crypto assets that are not maintained on our platform and for which the Company does not maintain a private key or the ability to recover a customer’s private key, these balances are not recorded, as there is no related safeguarding obligation in accordance with SAB 121. This guidance is effective from the first interim period after June 15, 2022 and should be applied retrospectively. We adopted SAB 121 during the three months ended August 31, 2023, and it did not have any impact on our condensed financial statements.

CRYPTOCURRENCIES

CRYPTOCURRENCIES	6 Months Ended
	Feb. 29, 2024
Cryptocurrencies
CRYPTOCURRENCIES	NOTE 2 – CRYPTOCURRENCIES The following table presents additional dollar and unit information (each bitcoin represents one unit) about the Company’s bitcoin activity for the six months ended February 29, 2024: Schedule of Cryptocurrencies Beginning balance – August 31, 2023 $ 129,469 5.0 Revenue received from mining and hosting 1,212,729 29.9 Loan proceeds received in cryptocurrency 527,506 19.0 Purchase of equipment with cryptocurrency (339,525 ) (12.2 ) Payments of loan with cryptocurrency (705,363 ) (17.4 ) Cash proceeds from the sale of cryptocurrency, net of fees (783,257 ) (20.6 ) Cryptocurrency used to pay expenses and to purchase equipment (106,417 ) (3.5 ) Realized gain from the sale of bitcoin 76,591 – Ending balance – February 29, 2024 $ 11,733 0.2

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	6 Months Ended
	Feb. 29, 2024
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	NOTE 3 – REVENUE FROM CONTRACTS WITH CUSTOMERS The following table presents the Company’s revenues disaggregated into categories based on the nature of such revenues: Schedule of disaggregation of revenue Six Months Ended February 29, 2024 2023 Revenues from the sale of mining equipment - net $ 190,192 $ 124,364 Revenue from hosting, net 21,980 – Revenue from self-mining 1,190,749 133,443 Total revenue $ 1,402,921 $ 257,807

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Feb. 29, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 4 – PROPERTY AND EQUIPMENT The following table sets forth the components of the Company’s property and equipment at February 29, 2024 and August 31, 2023: Schedule of property and equipment February 29, 2024 August 31, 2023 Cost Accumulated Net Book Cost Accumulated Net Book Equipment $ 3,073,969 $ (928,605 ) $ 2,145,364 $ 966,407 $ (470,705 ) $ 495,702 Equipment not in service 2,711,142 – 2,711,142 4,453,466 – 4,453,466 Total fixed assets $ 5,785,111 $ (928,605 ) $ 4,856,506 $ 5,419,873 $ (470,705 ) $ 4,949,168 Equipment not in service as of February 29, 2024 was comprised of the following: Schedule of equipment not in service Transformers $ 1,625,000 Immersion containers and fluid 1,086,142 Total $ 2,711,142 For the six months ended February 29, 2024 and 2023, the Company recorded $ 457,901 147,265 Of equipment not in service at August 31, 2023, during the six months ended February 29, 2024, the Company: · placed $ 1,436,433 · placed $ 125,000 · sold 100 S19 Pro+/117/220 to Luxor for $ 149,250 180,891 31,641 On October 4, 2023, the Company purchased 1,050 488,775 As of February 29, 2024 the equipment not in service was solely comprised of 4 immersion containers, immersion fluid and 14 transformers.

INVESTMENTS AND NOTES RECEIVABL

INVESTMENTS AND NOTES RECEIVABLE	6 Months Ended
	Feb. 29, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
INVESTMENTS AND NOTES RECEIVABLE	NOTE 5 – INVESTMENTS AND NOTES RECEIVABLE Policy on Doubtful Accounts We evaluate notes receivable for impairment under the guidelines of ASC 310-10-35-41. We establish an allowance for doubtful accounts when we determine that collectability of the note is in question. Investment In October 2022, we entered into a joint venture arrangement with ROC Digital Mining to jointly develop and operate a Bitcoin mining operation in Pecos, Texas. Under the joint venture, we contributed one immersion container, six transformers and cash with a value of $ 987,429 240 4,400 1,200,000 5 As of February 29, 2024 the joint venture arrangement was classified as a long term asset on the Company’s balance sheet with a value of $ 867,247 111,773 8,408 Notes Receivable Notes receivable consist of notes received as partial consideration for the sale of mining equipment, and are collateralized by the mining equipment that was the subject of the sale. As of February 29, 2024 and August 31, 2023, notes receivable consist of the following: Schedule of notes receivable As of As of Note receivable with an amended principal amount of $ 731,472 5.0 $ 731,472 $ 731,472 Note receivable in original principal amount of $ 1,200,000 5.0 842,500 1,029,721 Total 1,573,972 1,761,193 Less: Non-current portion (468,056 ) (1,386,749 ) Notes receivable – short-term $ 1,105,916 $ 374,444 As of February 29, 2024 and August 31, 2023 the balance of notes receivable was $ 1,573,972 1,761,193 29,584

RELATED PARTY LOANS PAYABLE

RELATED PARTY LOANS PAYABLE	6 Months Ended
	Feb. 29, 2024
Debt Disclosure [Abstract]
RELATED PARTY LOANS PAYABLE	NOTE 6 – RELATED PARTY LOANS PAYABLE On October 19, 2022, the Company entered into a Line of Credit Agreement (the “2022 LOC Agreement”) with Innovative Digital Investors Emerging Technology, L.P. (“IDI), a limited partnership controlled by Jonathan Bates, the Company’s Chairman, and Raymond Mow, the Company’s Chief Financial Officer and a Director. The 2022 LOC Agreement provided for loans of up to $ 1,000,000 12 Effective May 13, 2023, the Company and IDI amended the 2022 LOC Agreement to increase the amount that the Company may borrow thereunder to $1,750,000, extended the date by which the Company could borrow funds thereunder to December 1, 2023, and extended the maturity date to December 1, 2024. Simultaneous with the extension, the Company borrowed an additional $500,000, primarily to fund the purchase of ASIC miners. As of February 29, 2024, the amount of principal and interest due to related party was $ 1,625,000 200,730 1,300,000 97,460

BITCOIN LOAN AND DERIVATIVE LIA

BITCOIN LOAN AND DERIVATIVE LIABILITY	6 Months Ended
	Feb. 29, 2024
Bitcoin Loan And Derivative Liability
BITCOIN LOAN AND DERIVATIVE LIABILITY	NOTE 7 – BITCOIN LOAN AND DERIVATIVE LIABILITY On October 4, 2023, the Company purchased 1,050 488,775 149,250 31,641 The remaining purchase price of $339,525 was financed via a forward sale of future Bitcoin production with Luxor via a hashrate derivatives contract (“Luxor Bitcoin Financing”, or “LBF”). Under the terms of the LBF, on October 4, 2023 the Company received 18.97542 Bitcoin valued at $27,799.39, each or a total of $527,505.19 in Bitcoin. In return the Company agreed to pay back Luxor 20.78946 Bitcoin in daily increments from bitcoin production generated by the 1,050 ASIC miners. The Bitcoin loan is due no later than April 1, 2024 and cannot be repaid in cash. The repayment must be in Bitcoin. As of February 29, 2024 the Company had repaid 17.4160392 Bitcoin and recorded a loss of $ 221,208 50,429 3.3734208 Schedule of assumptions for bitcoin to be delivered variables Price of Bitcoin on February 29, 2024 $ 61,179.58 Volatility 29.30 Term in days 180 Dividend rate -0- Treasury bill rate 4.87% Derivative liability calculation using the variables above was $ 114,835 On February 29, 2024 the Company had a Bitcoin loan balance due of $ 93,779 114,835

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	6 Months Ended
	Feb. 29, 2024
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 8 – STOCKHOLDERS’ EQUITY Stockholders’ Equity The Company is authorized to issue 500,000,000 0.0001 20,000,000 0.0001 49,821,698 49,665,649 Series A Convertible Preferred Stock As of February 29, 2024 and August 31, 2023, our board of directors had authorized the issuance of one series of preferred stock, the Series A Convertible Preferred Stock (the “Series A Preferred”), for 500,000 453,966 Dividends Liquidation Preference 10 Voting Rights Directors Voluntary Conversion Rights 0.575 Rank Redemption by Company Redemption by the Holders 30 2 10,000 Redemption on Fundamental Transaction Right to Participate in Future Fundings Anti-Dilution Protection Issuance of Shares During the six months ended February 29, 2024, the Company issued the following shares: · 72,993 32,117 · 83,056 36,545 The Company estimates the fair value of stock-based compensation based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). The Company attributes compensation to expense using the straight-line method. Since the Company’s common stock is thinly traded, the Company utilizes the value, or an estimate thereof, paid by third parties for common stock in arms-length transactions with the Company. In particular, the Company used the estimated fair value of its common stock derived from a Unit Offering completed in June 2022. Under the Unit Offering, the Company issued investors Units consisting of one share of common stock, one Class C-1 Warrant and one Class C-2 Warrants for $1.25 per Unit. The value of the Class C-1 and 2 Warrants were deducted from the Unit price to determine the fair value of the common stock included in the Units. The Class C-1 and 2 Warrants were valued under the Black-Scholes method using the following assumptions: volatility 223.30%; annual rate of quarterly dividends 0%; term 3 years; treasury bill rate 0.4%. Warrants As of February 29, 2024, and August 31, 2023, the Company had the following warrants outstanding: Schedule of warrants outstanding Class Amount Outstanding Exercise Price Expiration Date Class A Warrants 590,000 $ 2.00 August 5, 2024 Class B Warrants 590,000 $ 5.00 August 5, 2024 Class C-1 Warrants 4,147,600 $ 2.00 January 15, 2025 Class C-2 Warrants 4,147,600 $ 4.00 January 15, 2025 Class C-3 Warrants 25,600 $ 1.25 June 27, 2027 Total 9,500,800

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Feb. 29, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 9 – COMMITMENTS AND CONTINGENCIES As of February 29, 2024 and August 31, 2023, the Company had no contractual commitments.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Feb. 29, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 10 – SUBSEQUENT EVENTS In March 2024, the Company repaid the Luxor Bitcoin Financing in full (see Note 7). On March 6, 2024, the Company entered into a Machine Lease Agreement (the “Machine Lease”) with Luxor Technology Corporation (“LTC”). Under the Machine Lease, the Company leased 777 S-19 miners from LTC commencing March 8, 2024 and ending immediately prior to the next halving event for bitcoin, which is expected to occur in April 2024. The Company paid LTC 1.75 bitcoin upon entry into the Machine Lease and pays LTC 70% of all bitcoin mined during the lease term as rental payments. LTC is obligated to pay for all insurance on the units, repair and maintenance of the units, hosting fees, electricity costs, and any taxes assessed against the units. In April 2024, the Company agreed to extend the maturity date of a note receivable in the principal amount $731,472 from August 31, 2024 to December 31, 2024. At the same time, the Company agreed to extend a hosting agreement with the note obligor to December 31, 2024.

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Policies)	6 Months Ended
	Feb. 29, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The foregoing unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“ GAAP SEC The preparation of condensed financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the condensed financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s condensed financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions that could have a material effect on the reported amounts of the Company’s financial position and results of operations. Operating results for the six months ended February 29, 2024, are not necessarily indicative of the results that may be expected for the year ending August 31, 2024.
Management’s Representation of Interim Condensed Financial Statements	Management’s Representation of Interim Condensed Financial Statements The accompanying unaudited condensed financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company uses the same accounting policies in preparing quarterly and annual condensed financial statements. Certain information and footnote disclosures normally included in condensed financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These condensed financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year.
Use of Estimates	Use of Estimates The preparation of condensed financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements. The most significant estimates relate to the calculation of stock-based compensation, calculation of the Company’s derivative liability, useful lives and impairment of fixed assets, income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these condensed financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates. There have been no material changes to the Company’s accounting estimates since the Company’s condensed financial statements for the fiscal year ended August 31, 2023.
Segment Reporting	Segment Reporting The Company operates in one segment - the cryptocurrency mining industry. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. All material Company operations qualify for aggregation due to their similar customer base and similarities in economic characteristics, nature of products and services, and procurement, manufacturing and distribution processes.
Revenue Recognition	Revenue Recognition On July 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). Results for reporting periods beginning after January 1, 2018, are presented under ASC 606.
Revenues from digital currency mining	Revenues from digital currency mining The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: · Step 1: Identify the contract with the customer; · Step 2: Identify the performance obligations in the contract; · Step 3: Determine the transaction price; · Step 4: Allocate the transaction price to the performance obligations in the contract; and · Step 5: Recognize revenue when the Company satisfies a performance obligation. Step 1: Step 2 · The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct); and · The entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). Based on these criteria, the Company has a single performance obligation in providing hash calculation services (i.e., hashrate) to the mining pool operator (i.e., customer). The performance obligation of hash calculation services is fulfilled daily over-time, as opposed to a point in time, because the Company provides the hashrate throughout the day and the customer simultaneously obtains control of it and uses the asset to produce bitcoin. The Company has full control of the mining equipment utilized in the mining pool and if the Company determines it will increase or decrease the processing power of its machines and/or fleet (i.e., for repairs or when power costs are excessive) the hash calculation services provided to the customer will be reduced. Step 3 The transaction consideration the Company earns is all variable since it is dependent on the daily hash calculation services provided by the Company, as well as other factors outside the control of the Company, such as the difficulty index of the bitcoin network. The Company’s bitcoins earned through the contractual payout formula is not known until the Company’s computational hashrate contributed over the daily measurement period is fulfilled over-time daily between midnight-to-midnight UTC time. The Company’s expected amount of the global network transaction fee rewards earned are calculated at the end of each transactional day (midnight to midnight UTC time). There are no other forms of variable considerations, such as discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties, or other similar items. The Company fully constrains all variable consideration as a result of ASC 606-10-32-11 and 12 because the amount of consideration is highly susceptible to factors outside of our control as defined by the Company’s customer’s payout methodology. The variable consideration is constrained until the Company receives confirmation of the amount, usually via settlement of the fractional share of block reward and transaction fee in the Company’s digital wallet (i.e., at that point, the variability is resolved and there is no longer the reasonable possibility of significant reversal of revenue). Before settlement occurs, estimation of the variable consideration to which the Company is entitled, which depends on inputs unknowable to the Company, carries the risk of a significant revenue reversal from mis-estimation. Settlement of consideration typically occurs within 24 hours after the end of each day. Step 4 Step 5 In exchange for providing hash calculation services, the Company is entitled to the expected bitcoin awards earned over the measurement period, plus the expected global transaction fee rewards for the respective measurement period, less net digital asset fees due to the mining pool operator over the measurement period. The transaction consideration the Company receives is non-cash consideration, in the form of bitcoin. The Company measures the bitcoin at the closing U.S. dollar spot rate at the end of the date earned (midnight UTC). However, this accounting convention does not result in materially different revenue recognition from using the fair value of the bitcoin earned at contract inception and has been consistently applied in all periods presented. There are no deferred revenues or other liability obligations recorded by the Company since there are no payments in advance of the performance. At the end of the 24 hour “midnight-to-midnight” period, there are no remaining performance obligations. During the six months ending February 29, 2024, the Company utilized one mining pool for its self-mining operations, which charges 0.3% of the bitcoin payable to the Company as a pool management fee. During the three and six months ending February 29, 2024, the Company generated $ 861,026 1,190,749
Revenues from Hosting	Revenues from Hosting The Company provides energized space to customers who locate their equipment within the Company’s co-hosting facility. The equipment generating the hosting revenue is owned by the customer. The Company gives hosting customers the option of having all mining proceeds paid into a cold wallet address in the Company’s name, which case the Company pays the hosting client its share of mining awards on a daily basis, or having all mining awards sent to an account of the customer, in which case the Company bills the customer monthly for any hosting fee that is contingent on the amount of the client’s award. All performance obligations are achieved simultaneously by providing the hosting environment for the customers’ operations. Hosting revenues consist of amounts billed in U.S. dollars for electricity and other fees, and a percentage of cryptocurrency generated by the client’s hosting activities. With regard to hosting revenues that are billed in U.S. dollars, revenues are recorded at the time of invoicing. With regard to hosting revenues that are based on a percentage of cryptocurrency generated by the customer, revenues are recorded based on the Company’s share of cryptocurrency received from the mining pool on the date of receipt or invoicing. During the three and six months ending February 29, 2024, the Company generated $ 10,116 21,980
Revenues from the sale of mining equipment	Revenues from the sale of mining equipment The Company records revenue from the resale of mining equipment it has purchased. Revenue for the sale of mining equipment is recognized under the guidelines of ASC 606. During the three and six months ending February 29, 2024, the Company generated $ 20,471 190,192
Cash and cash equivalents	Cash and cash equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. On February 29, 2024, and August 31, 2023, respectively, the Company’s cash equivalents totaled $ 342,296 270,547
Cryptocurrency	Cryptocurrency Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment quarterly, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses, if the price of cryptocurrency increases, is not permitted. During the three and six months ending February 29, 2024, the Company realized gains of $ 76,591 76,591 Cryptocurrency earned by the Company through its mining activities are included within operating activities on the accompanying consolidated statements of cash flows. The sales of digital currencies are included within investing activities in the accompanying consolidated statements of cash flows and any realized gains or losses from such sales are included in other income (expense) in the consolidated statements of operations and comprehensive income (loss). The Company accounts for its gains or losses in accordance with the moving weighted average method of accounting. The Company holds its cryptocurrencies in an account at Bitgo Trust (“Bitgo”), a well-known Bitcoin custodian, which it also uses to liquidate its Bitcoin when necessary. The Company also has an account with Gemini Trust Company, LLC, which is a qualified custodian regulated by the New York Department of Financial Services as a backup facility, and may hold Bitcoin from time to time in a cold storage wallet. The Company uses Bitgo’s multi-signature feature for account access.
Income taxes	Income taxes The Company accounts for income taxes under FASB ASC 740, “Accounting for Income Taxes” “Accounting for Uncertainty in Income Taxes”
Stock-based Compensation	Stock-based Compensation The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.
Net Loss per Share	Net Loss per Share Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding.
Stock Purchase Warrants	Stock Purchase Warrants The Company accounts for warrants issued to purchase shares of its common stock as equity in accordance with FASB ASC 480, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock, Distinguishing Liabilities from Equity. If the warrants do not require liability classification under ASC 815-40, in order to conclude equity classification, we also assess whether the warrants are indexed to our common stock and whether the warrants are classified as equity under ASC 815-40 or other GAAP. After all such assessments, we conclude whether the warrants are classified as liability or equity. Liability classified warrants require fair value accounting at issuance and subsequent to initial issuance with all changes in fair value after the issuance date recorded in the statements of operations. Equity classified warrants only require fair value accounting at issuance with no changes recognized subsequent to the issuance date. We do not have any liability classified warrants as of any period presented.
Property and equipment	Property and equipment Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Estimated useful lives for leasehold improvements are typically the lesser of the estimated useful life of the asset or the life of the term of the lease. The estimated useful lives for all other property and equipment are as follows: Schedule of useful lives of assets Life (Years) Miners and mining equipment 2 Machinery and equipment 5 7 Office and computer equipment 3 No depreciation is recorded on an asset until it is placed in service. Due to the nature of the equipment, it can only be placed in service when the hosting site is properly configured to turn on the machines. As of February 29, 2024, and August 31, 2023, the Company had $ 2,711,142 4,453,466
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Codification Improvements Codification Improvements to Topic 842, Leases (Topic 842) Targeted Improvements, We adopted ASC 842 on July 16, 2020. The adoption of this guidance did not have any impact on our condensed financial statements. In March 2022, the SEC staff released Staff Accounting Bulletin No. 121 (“SAB 121”), which requires entities that hold crypto assets on behalf of platform users to recognize a liability to reflect the entity’s obligation to safeguard the crypto assets held for its platform users, whether directly or through an agent or another third party acting on its behalf, along with a corresponding safeguarding asset. Both the liability and corresponding safeguarding asset shall be measured at fair value. SAB 121 also requires disclosure of the nature and amount of crypto assets being safeguarded, how the fair value is determined, an entity’s accounting policy for safeguarding liabilities and corresponding safeguarding assets, and may require disclosure of other information about risks and uncertainties arising from the entity’s safeguarding activities. The Company is not in the business of holding its customer’s crypto assets for safekeeping. For crypto assets that are not maintained on our platform and for which the Company does not maintain a private key or the ability to recover a customer’s private key, these balances are not recorded, as there is no related safeguarding obligation in accordance with SAB 121. This guidance is effective from the first interim period after June 15, 2022 and should be applied retrospectively. We adopted SAB 121 during the three months ended August 31, 2023, and it did not have any impact on our condensed financial statements.

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Tables)	6 Months Ended
	Feb. 29, 2024
Accounting Policies [Abstract]
Schedule of useful lives of assets	Schedule of useful lives of assets Life (Years) Miners and mining equipment 2 Machinery and equipment 5 7 Office and computer equipment 3

CRYPTOCURRENCIES (Tables)

CRYPTOCURRENCIES (Tables)	6 Months Ended
	Feb. 29, 2024
Cryptocurrencies
Schedule of Cryptocurrencies	Schedule of Cryptocurrencies Beginning balance – August 31, 2023 $ 129,469 5.0 Revenue received from mining and hosting 1,212,729 29.9 Loan proceeds received in cryptocurrency 527,506 19.0 Purchase of equipment with cryptocurrency (339,525 ) (12.2 ) Payments of loan with cryptocurrency (705,363 ) (17.4 ) Cash proceeds from the sale of cryptocurrency, net of fees (783,257 ) (20.6 ) Cryptocurrency used to pay expenses and to purchase equipment (106,417 ) (3.5 ) Realized gain from the sale of bitcoin 76,591 – Ending balance – February 29, 2024 $ 11,733 0.2

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	6 Months Ended
	Feb. 29, 2024
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenue	Schedule of disaggregation of revenue Six Months Ended February 29, 2024 2023 Revenues from the sale of mining equipment - net $ 190,192 $ 124,364 Revenue from hosting, net 21,980 – Revenue from self-mining 1,190,749 133,443 Total revenue $ 1,402,921 $ 257,807

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Feb. 29, 2024
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Schedule of property and equipment February 29, 2024 August 31, 2023 Cost Accumulated Net Book Cost Accumulated Net Book Equipment $ 3,073,969 $ (928,605 ) $ 2,145,364 $ 966,407 $ (470,705 ) $ 495,702 Equipment not in service 2,711,142 – 2,711,142 4,453,466 – 4,453,466 Total fixed assets $ 5,785,111 $ (928,605 ) $ 4,856,506 $ 5,419,873 $ (470,705 ) $ 4,949,168
Schedule of equipment not in service	Schedule of equipment not in service Transformers $ 1,625,000 Immersion containers and fluid 1,086,142 Total $ 2,711,142

INVESTMENTS AND NOTES RECEIVA_2

INVESTMENTS AND NOTES RECEIVABLE (Tables)	6 Months Ended
	Feb. 29, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of notes receivable	Schedule of notes receivable As of As of Note receivable with an amended principal amount of $ 731,472 5.0 $ 731,472 $ 731,472 Note receivable in original principal amount of $ 1,200,000 5.0 842,500 1,029,721 Total 1,573,972 1,761,193 Less: Non-current portion (468,056 ) (1,386,749 ) Notes receivable – short-term $ 1,105,916 $ 374,444

BITCOIN LOAN AND DERIVATIVE L_2

BITCOIN LOAN AND DERIVATIVE LIABILITY (Tables)	6 Months Ended
	Feb. 29, 2024
Bitcoin Loan And Derivative Liability
Schedule of assumptions for bitcoin to be delivered variables	Schedule of assumptions for bitcoin to be delivered variables Price of Bitcoin on February 29, 2024 $ 61,179.58 Volatility 29.30 Term in days 180 Dividend rate -0- Treasury bill rate 4.87%

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	6 Months Ended
	Feb. 29, 2024
Equity [Abstract]
Schedule of warrants outstanding	Schedule of warrants outstanding Class Amount Outstanding Exercise Price Expiration Date Class A Warrants 590,000 $ 2.00 August 5, 2024 Class B Warrants 590,000 $ 5.00 August 5, 2024 Class C-1 Warrants 4,147,600 $ 2.00 January 15, 2025 Class C-2 Warrants 4,147,600 $ 4.00 January 15, 2025 Class C-3 Warrants 25,600 $ 1.25 June 27, 2027 Total 9,500,800

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Details)	Feb. 29, 2024
Miners And Mining Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	2 years
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	7 years
Office and Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years

BASIS OF PRESENTATION AND SUM_5

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2024	Feb. 28, 2023	Feb. 29, 2024	Feb. 28, 2023	Aug. 31, 2023
Product Information [Line Items]
Revenues	$ 891,613	$ 156,090	$ 1,402,921	$ 257,807
Cash equivalents	342,296		342,296		$ 270,547
Realized gain from sale of cryptocurrency	76,591	$ 12,761	76,591	12,761
Fixed assets and not service	2,711,142		2,711,142		$ 4,453,466
Self Mining Cryptocurrency [Member]
Product Information [Line Items]
Revenues	861,026		1,190,749	133,443
Hosting Services [Member]
Product Information [Line Items]
Revenues	10,116		21,980
Sale Of Mining Equipment [Member]
Product Information [Line Items]
Revenues	$ 20,471		$ 190,192	$ 124,364

CRYPTOCURRENCIES (Details)

CRYPTOCURRENCIES (Details)	6 Months Ended
	Feb. 29, 2024 USD ($) Decimal	Aug. 31, 2023 USD ($) Decimal
Platform Operator, Crypto-Asset [Line Items]
Cryptocurrency, balance | $	$ 11,733	$ 129,469
Crypto units, balance	0.2	5
Revenues From Mining And Hosting [Member]
Platform Operator, Crypto-Asset [Line Items]
Crypto asset addition, in units	29.9
Loan Proceeds [Member]
Platform Operator, Crypto-Asset [Line Items]
Crypto asset addition, in units	19
Purchase Of Equipment [Member]
Platform Operator, Crypto-Asset [Line Items]
Crypto asset reduction, in units	(12.2)
Repayment Of Loan [Member]
Platform Operator, Crypto-Asset [Line Items]
Crypto asset reduction, in units	(17.4)
Sale Of Cryptocurrency [Member]
Platform Operator, Crypto-Asset [Line Items]
Sale of cryptocurrency, in units	(20.6)
Payment For Expenses And Equipment [Member]
Platform Operator, Crypto-Asset [Line Items]
Payment for services, in units	(3.5)
Sale Of Bitcoin [Member]
Platform Operator, Crypto-Asset [Line Items]
Crypto asset realized gain, in units	0

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2024	Feb. 28, 2023	Feb. 29, 2024	Feb. 28, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 891,613	$ 156,090	$ 1,402,921	$ 257,807
Sale Of Mining Equipment [Member]
Disaggregation of Revenue [Line Items]
Total revenue	20,471		190,192	124,364
Hosting Services [Member]
Disaggregation of Revenue [Line Items]
Total revenue	10,116		21,980
Self Mining Cryptocurrency [Member]
Disaggregation of Revenue [Line Items]
Total revenue	$ 861,026		$ 1,190,749	$ 133,443

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details - Schedule of property) - USD ($)	Feb. 29, 2024	Aug. 31, 2023
Equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	$ 3,073,969	$ 966,407
Accumulated depreciation	(928,605)	(470,705)
Net Book Value	2,145,364	495,702
Equipment Not In Service [Member]
Property, Plant and Equipment [Line Items]
Cost	2,711,142	4,453,466
Accumulated depreciation	0	0
Net Book Value	2,711,142	4,453,466
Fixed Assets [Member]
Property, Plant and Equipment [Line Items]
Cost	5,785,111	5,419,873
Accumulated depreciation	(928,605)	(470,705)
Net Book Value	$ 4,856,506	$ 4,949,168

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details - Property not in service)	Feb. 29, 2024 USD ($)
Property, Plant and Equipment [Line Items]
Property and equipment not in service	$ 2,711,142
Transformers [Member]
Property, Plant and Equipment [Line Items]
Property and equipment not in service	1,625,000
Immersion Containers And Fluid [Member]
Property, Plant and Equipment [Line Items]
Property and equipment not in service	$ 1,086,142

PROPERTY AND EQUIPMENT (Detai_3

PROPERTY AND EQUIPMENT (Details Narrative)		3 Months Ended		6 Months Ended
	Oct. 04, 2023 USD ($) Integer	Feb. 29, 2024 USD ($)	Feb. 28, 2023 USD ($)	Feb. 29, 2024 USD ($)	Feb. 28, 2023 USD ($)
Depreciation expense		$ 235,370	$ 88,213	$ 457,901	$ 147,265
Property and equipment not in service		2,711,142		2,711,142
Loss on sale of property				31,641	$ 0
A S I C Miners [Member]
Units purchased | Integer	1,050
Payment for productive assets	$ 488,775
Sale To Luxor [Member]
Property and equipment not in service		180,891		180,891
Proceeds from sale of property				149,250
Loss on sale of property				31,641
Trinidad [Member]
Property and equipment not in service		1,436,433		1,436,433
Pecos Texas [Member]
Property and equipment not in service		$ 125,000		$ 125,000

INVESTMENTS AND NOTES RECEIVA_3

INVESTMENTS AND NOTES RECEIVABLE (Details) - USD ($)	Feb. 29, 2024	Aug. 31, 2023	Dec. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 1,573,972	$ 1,761,193
Notes receivable, non-current portion	(468,056)	(1,386,749)
Notes receivable, current portion	1,105,916	374,444
Note Receivable 1 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Note receivable face amount	$ 731,472
Note receivable stated interest rate	5%
Notes receivable	$ 731,472	731,472
Note Receivable 2 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Note receivable face amount			$ 1,200,000
Note receivable stated interest rate			5%
Notes receivable	$ 842,500	$ 1,029,721

INVESTMENTS AND NOTES RECEIVA_4

INVESTMENTS AND NOTES RECEIVABLE (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2024	Feb. 28, 2023	Feb. 29, 2024	Feb. 28, 2023	Aug. 31, 2023	Oct. 31, 2022
Long term asset	$ 867,247		$ 867,247		$ 987,429
Proceeds from Divestiture of Interest in Joint Venture			8,408	$ 0
Notes receivable	1,573,972		1,573,972		$ 1,761,193
Interest income	14,791	$ 3,751	29,584	$ 12,850
ROC Digital Mining I LLC [Member]
Long term asset	$ 867,247		867,247
Reduction in value of investment			111,773
Proceeds from Divestiture of Interest in Joint Venture			$ 8,408
Joint Venture Arrangement [Member] | ROC Digital Mining I LLC [Member]
Long term asset						$ 987,429
Investment per unit						4,400
Joint Venture Arrangement [Member] | ROC Digital Mining I LLC [Member] | Immersion Containers [Member]
Note receivable						$ 1,200,000
Note receivable interest rate						5%
Joint Venture Arrangement [Member] | ROC Digital Mining I LLC [Member] | ROC Digital Class B Units [Member]
Investment shares owned						240

RELATED PARTY LOANS PAYABLE (De

RELATED PARTY LOANS PAYABLE (Details Narrative) - 2022 LOC Agreement [Member] - USD ($)	Oct. 19, 2022	Feb. 29, 2024	Aug. 31, 2023
Line of Credit Facility [Line Items]
Line of credit facility	$ 1,000,000
Line of credit interest rate	12%
Amount of principal		$ 1,625,000	$ 1,300,000
Interest payable		$ 200,730	$ 97,460

BITCOIN LOAN AND DERIVATIVE L_3

BITCOIN LOAN AND DERIVATIVE LIABILITY (Details) - Bitcoin [Member]	6 Months Ended
	Feb. 29, 2024
Measurement Input, Share Price [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Determination assumptions used for valuation	61,179.58
Measurement Input, Price Volatility [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Determination assumptions used for valuation	29.30
Measurement Input, Expected Term [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Determination assumptions used for valuation	180
Measurement Input, Expected Dividend Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Determination assumptions used for valuation	-0-
Measurement Input Treasury Bill Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Determination assumptions used for valuation	4.87%

BITCOIN LOAN AND DERIVATIVE L_4

BITCOIN LOAN AND DERIVATIVE LIABILITY (Details Narrative)		3 Months Ended		6 Months Ended
	Oct. 04, 2023 USD ($) Integer	Feb. 29, 2024 USD ($) Decimal	Feb. 28, 2023 USD ($)	Feb. 29, 2024 USD ($) Decimal	Feb. 28, 2023 USD ($)	Aug. 31, 2023 USD ($)
Offsetting Assets [Line Items]
Loss on sale of property				$ 31,641	$ 0
Extinguishment of debt		$ (183,670)	$ 0	(221,208)	$ 0
Derivative liability		$ 114,835		$ 114,835		$ 0
Luxor [Member] | Bitcoin [Member]
Offsetting Assets [Line Items]
Bitcoin payable, in units | Decimal		3.3734208		3.3734208
Notes Payable, Noncurrent		$ 93,779		$ 93,779
Luxor Technology Corporation [Member]
Offsetting Assets [Line Items]
Extinguishment of debt				221,208
Financing costs				50,429
Sale To Luxor [Member]
Offsetting Assets [Line Items]
Proceeds from sale of property				149,250
Loss on sale of property				$ 31,641
A S I C Miners [Member]
Offsetting Assets [Line Items]
Units purchased | Integer	1,050
Payment for productive assets	$ 488,775

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details)	6 Months Ended
	Feb. 29, 2024 $ / shares shares
Class of Warrant or Right [Line Items]
Warrants amount outstanding	9,500,800
Class A Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants amount outstanding	590,000
Exercise price | $ / shares	$ 2
Expiriation date	Aug. 05, 2024
Class B Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants amount outstanding	590,000
Exercise price | $ / shares	$ 5
Expiriation date	Aug. 05, 2024
Class C-1 Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants amount outstanding	4,147,600
Exercise price | $ / shares	$ 2
Expiriation date	Jan. 15, 2025
Class C-2 Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants amount outstanding	4,147,600
Exercise price | $ / shares	$ 4
Expiriation date	Jan. 15, 2025
Class C-3 Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants amount outstanding	25,600
Exercise price | $ / shares	$ 1.25
Expiriation date	Jun. 27, 2027

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)	6 Months Ended
	Feb. 29, 2024	Aug. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock, shares authorized	500,000,000	500,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares outstanding	49,821,698	49,665,649
Officer Employment Contract [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares issued for compensation	72,993
Number of value issued for compensation	$ 32,117
Officer Employment Contract One [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares issued for compensation	83,056
Number of value issued for compensation	$ 36,545
Series A Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred stock, shares authorized	500,000	500,000
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares issued	453,966	453,966
Liquidation preference per share	$ 10
Conversion price	$ 0.575
Redeemed percenatge	30%
Number of value redeemed	$ 2,000,000
Number of shares redeemed	10,000
Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred stock, shares authorized	20,000,000
Preferred stock, par value	$ 0.0001