The dirt is being moved about a 100 feet away, and then they dig some more, dump some more, and continue.
They are raising money, to dig a hole. That's it. They'll keep digging as long as the money keeps coming in. Right now they have been paid up for the next 33 hours of digging.
And you can watch it live.
Or you can pay 1.6 dollars per second. $5 = 8 seconds. $10 = 16 seconds. They've made around $67,500 so far
And as time goes on (this morning until tonight) the dollar buys a little less time - a dollar now (8pm) gets you half as much time as it did this morning, yet contributions have kept the time still paid for, nearly the the same (34.5 hour now, vs 33.5 hours earlier today)