Applied Digital (APLD) 6 Apr 232023 Q3 Earnings call transcript

Good morning, and welcome to Applied Digital’s Third Quarter – Third Fiscal Quarter 2023 Conference Call. My name is Melissa and I will be your operator today.

Before the call, Applied Digital issued its financial results for the third quarter of fiscal 2023 ended February 28, 2023 in a press release, a copy of which will be furnished in a report on Form 8-K filed with the SEC and will be available on the Investor Relations section of the company's website.

Joining us on today's call are Applied Digital’s Chairman and CEO, Wes Cummins; and CFO, David Rench.

Following their remarks, we will open the call for questions.

Kovtun Group Alex brief make begin, statement. introductory we from will Gateway a Before Mr. ahead. go please Kovtun,

Thank morning, operator. third you, Good quarter Digital’s to XXXX fiscal Applied conference call. everyone, and welcome

like their and remarks, statements begins uncertainties. making be laws under may forward-looking today everyone number and management Before involve we're we would a that to formal some statements securities considered remind of risks

could caution of beyond the result, we those you actual which factors, our of a are from number that events As a forward-looking and are many which control, materially to cause results there statements. differ in described

For law. We made, disclosures relating occur to in as disclaim forward-looking undertaking to any more Securities statements filings our the release and the statements earnings are the see public obligation reflect that and or please detailed events risks, forward-looking circumstances or our made after by update uncertainties Commission. forward-looking to date Exchange assumptions the except with statements and required

non-GAAP business, encourage release carefully We and tables limited metrics. measures annual circumstances, with report disclosures descriptions Exchange “Risk as our earnings our and uncertainties Form caption also other Factors” risks and the and our you Commission in identified to to you applicable and on Securities metrics consider reconciliation well you and disclosures our discuss We as including of for uncertainties these to the our as not will detailed filings read variable GAAP to financial but refer under XX-K. the and

www.sec.gov. Digital’s the by Applied Exchange free visiting may filings website Securities Commission and get at for SEC You

replay Investor a be call of is Digital's Relations made website. link that available like would available recorded being this the I and remind section Applied in everyone will via for to

Wes? turn the Cummins. call Digital's Now, Wes I over and Applied CEO, Chairman to will

our work everyone. for conference operational thanking quarter ongoing the and construction you and hard facilities through to reasonable. and for for team fiscal I Alex, morning and good call. their by operations timeline our construction for getting us XXXX employees including our winter Thanks, joining our want Thank third keeping start

call the the results, future touch we I'd Rench CFO, quarter to David from business about remain deliver sustainable over a and high ability of margin turning to Before our excited on why and in detailed over some our our review last to cash flow. updates financial like for our long-term the

megawatt is broke the operating and XXXX. Ellendale an on Ellendale the update Let's early winter tremendous This the Dakota and ground completed after two XXX new successfully along are harsh in North energized that in we initial Recall Ellendale, the a months work with in facilities, within on facility now This following We March. that that last began. site in start North given several September, XXX Dakota facility the Garden accomplishment construction in we second newest delays. we facility our weather powering over energization energized experienced six of Dakota was with only some successful ‘XX City. in our marks and Jamestown North megawatt months

anticipate multi-year customers end of Marathon and June. – all bring of the energization. of flat be by agreement facility capacity out and on megawatts this turned of this fully The our capacity up ramp Once contracted is hosting rate across the by capacity five of end to first all our fully to to rest continue We on Dakota, upon begins contracted will and on XXX Applied turned Digital which our the by years half are be in North facilities to terms. a with April energized, will agreement location for

and XXX progress great ready megawatts of to complete in megawatt Garden are on. City City The construction Texas. Ellendale, we're our over is installed Garden to XXX making turn addition and In on of facility miners

Our send to customers and actively them. facility the installing are continuing to miners we're

behind meter awaiting details energizing and on final of approval issues the final expect technical unique to to coming some facility. the facility, the in we're this begin the aspect weeks Given resolve these

Once facility due Ellendale already of we we faster Garden City miners anticipated facility, than our ramping energize amount to our the installed.

both and fully markets. As Garden in are City prices a fixed facilities contracted reminder, not volatility the and exposed cryptocurrency our we are Ellendale with any

quarter facility we at operated Our expected the delivered previously continues million as revenue we in XXX and $XX megawatt as steady-state of facility that million capabilities quarter discussed. capacity of throughout the Jamestown to exceeding full the $XX.X the perform

Jamestown portion with As web mentioned a HPC in requirements customer. existing on of to our last facility successfully support retrofitted small non-crypto accommodate our a a application to call, we three

application, We the quarter. machine decided three rather capacity for and revenue web and for have better multiple be recognized HPC it customers the GPU used than and our have in to learning onboarded AI would first the applications use

hundred ground processing graphics X-megawatt broke a adjacent with application machine a will also that on December Jamestown new for We units standalone site facility or customer. several learning host in

making second year. in largest GPU its NVIDIA completed it of the to kind first new world. one Our facility summer, build-out this have additional to later X,XXX this May. When come operational the month the AXXX expected class online will in finalized, to in GPUs be two The stages later in be and early the the with are or clusters the of expect GPUs first we over in building, scheduled the

Importantly, during exploring it's capacity that months worth across we're several has hosting and noting the not impacted opportunities. last our demand numerous been facilities for

HPC the why we're of Now discuss and let's excited us ahead. year in front the about opportunity

diversify segments our and long-term for believe that the as we market, we While capital of we the base in HPC shareholders. of the will highest continue return to be the from miners, growing see robust customer to our exposure to demand cryptocurrency aim

end to while ultimately well our expected on XXXX split which from goal this revenue remain least the to to our Our positioned calendar and this to about year growth reach opportunities HPC, globally remain in XXXX. capitalize the billion We XX/XX at get and of is by remains XX% of HPC opportunity. diversify a by by revenue optimistic XXX

continues store we an the are to for sources will data hosting accommodate grow can demands and be they believe applications exponential at facilities the industry. required data growing As our rate, for ideal next-generation data sites unique HPC will to - more this as required

purpose-built latency lower offer Our more with costs, typically a solution higher computing combined focused compared high centers data are offering, data low that centers computing traditional power. on power delivering to and

a HPC applications in and different require as density provides this that unique at engineering set an given positioned of see each the is a that and would mining key point expertise We in of because ASIC different sufficient Bitcoin more mining a are to world power hosting space, type Bitcoin well in for its what applications realize HPC require properly you resembles success our cooling power. dense efficiently. those The needs scale handle racks up and of

will These so the the these applications on applications down and of that cost to ultra-low factor believe we deciding compute. hosted don't whether require be comes latency

Our provider, next-generation data are centers and to and renewable which access are aim the optimized energy cost computing, for compute we air to be lowest green cooling.

needs. a and our centers. digital robust, strong to customers that applications with to emerging To data traditional close, confident digital continue we next-generation infrastructure in serve remains our Digital be infrastructure leading for HPC and provider as our from financially both services a leader which validates various position remain hosting Demand Applied will

for financial a update, CFO, David update. it our Rench over With I'll pass that to

everyone. Thanks, Wes, and good morning

note comparable like year-over-year remarks, quarter's not last Before in did ago be a I I since would have any begin like we will we my to comparisons. not that operations call, year period, providing

consisting Dakota. entirely which fiscal to in quarter capacity million of were of throughout directly amortization were depreciation our attributable generate quarter working personnel third to the operated million, were operations. hosting in and our hosting $X million, the $XX.X Revenues revenues, $X.X fiscal cost of $XXX,XXX expense site Cost revenues The energy for Jamestown $XX.X of at expense at full Jamestown third our million of facility. and hosting employees

measure non-GAAP the depreciation million embedded in excludes third revenue of and one-time, quarter fiscal for a profit, the gross of revenues was $X.X electricity cost XX% of Adjusted charges XXXX. or that

stock-based amortization million, other $X.X $X.X the quarter and XXXX selling $X.X compensation, for expenses and expenses. million costs and in $XX.X million general third depreciation Operating were includes million administrative fiscal which in of of

a quarter $XX.X basic million. was diluted million a attributable of per and weighted fiscal of loss loss for $X $X.XX Net or average approximately XXXX Digital on a based third to quarter the share Applied of loss the share of during count

a Adjusted attributable $X quarter of Digital fiscal loss approximately third million or share the quarter on $X.XX of $XX.X during average per net Applied count of weighted a to was diluted for million. based of share, loss loss basic and the a XXXX

weighted a quarter Adjusted loss and quarter third share $X.XX to of non-GAAP for was Adjusted a a of million, diluted EBITDA, fiscal or a the loss a was $X.X for $XX.X of of measure quarter million. XXXX basic non-GAAP during count per fiscal third the based measure approximately attributable XXXX share, Digital, on loss $XXX,XXX. net of the Applied average

Lastly, the and our We with balance $XX.X in quarter equivalents on of sheet. cash XXXX cash, third million in fiscal million $XX.X debt. ended and

due $XX.X our collectively incorporate we revenue, the $XX in of inflow prepayments. which net upfront During commercial to XXXX, of in fiscal million received quarter that million and structure cash deposits customer third $XX.X with customers million the net our arrangements net and a amounted deferred deposits to

upfront but it as with In our revenue the the their no of that and were centers. year funding customers contract flow we helps build CapEx the our data to is company with contracts, prepayments the benefit major cash with to to a for us first back for amortized certain of cash timing recognition, impact the needs

First FTX, Capital Signature strong and Network, Valley Our sheet Silver remains have balance Bank, or no to Bank, Republic Corporation. exposure Celsius Silicon we Gate Bank,

materiality will quarter. given City fiscal should explicit to the of Garden occur to turning in online fourth the last Similar the facility revenue that providing and the guidance. coming continued fourth we Ellendale guidance ramp be for of the not our potentially quarter, quarter, Now

annualized Once we megawatts that we approximately those us expect adjusted of million. nearly facilities capacity are put to an XXX run hosting $XXX will of in rate have EBITDA online,

financial summary. That completes my

call for over Now closing Wes remarks. to I'll turn the

a more expectations David. current you, to I want the add around Thank our little detail quarter. for

energize Garden to approximately if EBITDA. at revenue it we million during the Ellendale, ramp generate City approximately $XX look of million of exclude of and quarter, expected $X expect expect we completely and our we While to

look Digital. and our company our operating make get in forward Jamestown to we quickly like Before of term. look go for over remain to initiatives the facility goals efficiency of the we energizing our as to on facility future We near our high, focused Q&A, Garden some City at facility Applied continuing Ellendale and I’d and to key to progress

of our center data We will capabilities also to non-crypto continue demonstrate to applications. assets build use the HPC cases next-generation our out broad for

we industry to for and on well volatile, are customers So our crypto remains crypto positioned demand capitalize both while services. non-crypto the for strong

members team service our their of all thank Digital. what dedication Applied and future and for our about optimistic remain I to

that operator, call open questions. let's the for up With

Thank Pipes you. Our comes proceed Instructions] question with Lucas [Operator Please with B. first question. Securities. of the line from your Riley

very you the about operator and Congrats want Garden at everyone. on ask progress much Ellendale and to morning good I Thank City. do

prepared energization, resolved. pace faster very also wondered final You I the in quantify the the touch mentioned once for issues, those an Thank the the metering the coming on come if remarks statement is could of And ability it terms ramp you of weeks. was confidence a of cadence you which that have could that to of that and online expectation you in mentioned level much. in on

is Thanks, This Lucas. Wes.

behind only is think specific unique me an project is on that large it the now Bitcoin I explain there Texas meter issue, of issue turn installation or the primary Let on the we're was not in right And trying and might several to we to mining the turning and kind. dealing projects we're its issue be which try with.

in projects plus we're way wasn't gen issue So the there's other a the say - side with with being the double perspective. mostly visibility really from that in the not energy ERCOT to on. they framework that or settlement it at or dealing kind on this several issue turning want and Encore metering The and metering a grid there's counted. double they There's settle there for an of in are and the power

last they rule a for meeting week a this had issue. that ERCOT change should had solve

solved, but So it's is back seem issue typically in hands now of slow. to move We very the Encore. they think that

to to through opinion, complete Encore, progress really go several like but rule people. different the feels process the So now process simple ERCOT – while but it on it expect be, we had didn't it for and it, for next the the my with finalizing day, just the change, largely solutions it not with - is meaningful wouldn't some just very for should the issue there some happen us, is solve with just

term. forward to expect very And near so, in this the we move

that hopefully, makes So, sense.

far build, energizing, we’re recall will as Ellendale, this buildings energizing. so is, as the faster. The up of As pace much go we

all finalizing We're had we concrete the Now, poured. the buildings.

them get as stages. on. racked it's on as and it's worked But as available the All just of completed now turning they're in each on turn to are miners building

that that's are large much more expected earlier, So complete, because, But majority we in of racked. already to did originally the is Garden energize City the much like Jamestown. miners the construction we

we're doing types North in not those as done So in stages of it Dakota. we've

ready or could we of So, to come see these two. these so to a ready the in have turn all we're turn buildings when on approval, you final when just week up on, are

would in place saw faster we ready expect to takes than we're a year. last of Jamestown still in in go. significantly Ellendale up little why over building. effort that seeing that already It on ramp they're we That's and to each But bit

That's my anchor Wes. very color could turn HPC. could And question, I you agreement on want the second I light helpful. appreciate to And for what share an to some much. the HPC kind then, like term very what potential would be anchor tenant? for revenue, large duration? terms look capital capital of unit, requirements Thank of a - economics, And you do

sure. Sure,

So, of there's were models exploring with different HPC. a that couple

the those the HPC and of We that we're class call in portion one out. rent So, where, capacity mining our retrofitted of it's the there the a - the ones We first what and own is buildings. GPUs. model running we

customers those doing and on learning three applications been really machine going that with been live mostly it's mentioned deep we think learning, well. I it's

the If the that us software partner a onto system. that you front recall with we have is helping that on end loads

gone that's well. So very

pilot owned the into it'll be also those GPUs move us. of ramp so up, the that we XXX new be As will phase building, will by around

for when those have well. we as that so, GPUs customers booked customers And are

the And then the rest of ways. go in one can building of two

on finer point potential if good this those at do kind to us about co-location you just a So a a for gotten co-location, we've there's think put areas. And areas, on of done a good with what basis what a that just way mining, on to that’s comping to we’ve think so because Bitcoin is megawatt I'm about far. we per this do and

lift slightly better bit more in a megawatt to EBITDA in for expect might that If margin and maybe XX significant on the with EBITDA owning with XX be per revenue what our should we customer, revenue as front and You the the from far an hosting the times is move even we land step versus forward HPC Bitcoin if GPUs, EBITDA. versus HPC higher, applications little similar co-location. it’s up again as

of $XX million very we out we’d $XXX in we that, the EBITDA. do style generate facility counterparty that we do of entire booked and to of right north to of if million had million customer and if and the would and of own $XX GPUs upwards building that solid only those or a large But that the well revenue do

how we business what model. – are So, the still working through

there. bit it be think split little I a will

we on now. saw our sheet funded We are quarter fully cash. the where ended But right with balance now,

yesterday, of million the had about As of company $XX cash.

we're working with but significant the to step put So the facility went close the GPUs on and the the are currently quarter we're move debt that, building we going actually build Ellendale the post was that owning put if facility the to up in that to of funded that fully place we forward inside building the But to plan boosted and a on GPUs. financing, more of that

necessary. about in then think GPU chasing, you I it blend what model really with here, and is should some think But co-location ownership you we're longer-term a about when model when think

$XXX Thanks lot What The Very, that revenue. a be? size building helpful. would of Wes. very million

north just build. did be model, it the and would That’s integrated an would you it The with said business a $XXX well of million, we be, if what the all I more leasing AWS, X million. current megawatts owned the would like $XXX an GPUs of see

The color helpful. of the appreciate and luck. the really you. X and megawatts, best all team super that's Thank West

you. Thank

you. Thank

Please proceed question Street of line Brown comes question. next your with Rob Our Lake Capital. from with the

a that? $XX sort you continuing? Wanted morning. above, Good the facility revenue of million capacity. on color What And you do it get to as that drove that see consider more Jamestown nameplate little

question. Rob. for good Yeah, Thanks the morning,

saw So, energy you – margin around quarter gross we we've changes bit some I us Last customers just do little customers, pricing a then to higher and this a was it's part lagging. There of, we for increase on of it. efficiency at of before. effect price about in for lower was somewhat the move do lagging price have for kind that lift. us We the do ability the it's because of our think our a prices talked quarter, facility but and have

with And so, catch we pricing change. the up

see you could that and go down. so, up then, - And fluctuate

a We on are turning little bit more.

with to that at have the But we we about that of So think Marathon on XX will a kind boost basis in somewhere quarterly bit. I containers from turn on there maybe operations any little XX million a the the the day X level or megawatts that that on on that, facility of bound, that of revenue in Jamestown. to is the upper million XX reasonable expect

And that the and off flow the burn sort and cash does in a the how cash are you of it would of little that prepayment XX to great. months, Is reporting? the bit customer then, of balance just to flow on sort Okay, it - get the happen deferred normalize that prepayments take – long wanted over sheet against revenue.

them. amortize to Yeah, contract so, when the that turns energize to when their contract, the we that of basically, prepayment on, begin customers from back we portion

And it’s simple. fairly months, so, get it's four - we

go full amortize prepayments XX we will sheet. that deferred through we So revenue be a it's gone months, And balance over months. back of then, off the that XX once four months

impact. is going XX% the Obviously, should, a that rate, back from of perspective, $XXX more you you run about from amortize revenue then, through a for EBITDA you versus flow cash know significant get and after the for million that flow the XX%. still to cash you get will year conversion P&L you we to the perspective, customers the be building company year positive that be earnings when up think lower. move cash we're first But deferred cash same and flow should still a flow the the get run or there the From rate as EBITDA as towards cash to

Great. Thank it I'll turn you. over.

Thanks.

Thank you.

line question next the Capital Sutton your with Craig-Hallum question. comes from Our Please of Group. George with proceed

Thank you. the because about Wes, Texas we Legislature. Texas, wanted multiple one to clarify, proposed in concerned had thing permitting framework I clients just the

You are, with we is statement? well, nothing That a beyond correct modest has that had have that. delay the to do

there's And of correct. so new. a that's Yeah, it's going things that's, George, there and couple there,

don't we Some specifically, that demand the specifically, that is that of balancing legislature that, the now. about from we're just portion. benefits then And talking response which the so, from grid beyond or think, are site, stuff also in site yesterday on the so they -

of the we’re we're the on those not energy site, programs area And our of - setup that contracting it price there, reach that there. take that – it's advantage is to not Texas, where contracting we in where an

don't impact any believe it has on us. So, we

I talk case to look make Gotcha. learning fully just of I new as want understood was on have we versus to language HPC, cases deploy viewing I customer? we And sure want the Great. what machine we use sure, as models. to for then, somewhat large in seen change I a when make use the

learning the that falling language machine no, in large models No, are category.

machine training include, it training are you I now language the some it's, if natural or we you learning, want that running call but A, When machine the learning, beyond model, call AI what applications to it's So model. processing. say can,

perfect. Thank Okay, you.

Thanks George.

Thank you.

the your comes John Todaro Our next and from line question with Please proceed with Needham of Company. question.

my Thanks taking Two here. questions guys. question for

mining in just piece. ask? And then, - contract, coming ‘XX QX mining your remind across renewal? us you up for, have at raise those the up least major for having Bitcoin questions, should which I with First should any on you when mining are those expectations Can the

contracts are I Yeah, energize - the my life contracted year year as just it's contracts we we Ellendale. starting probably so off Jamestown, time is but In - exact the I in five remaining, the are vast don't think, majority of are energize the two-and-a-half contract know - which under the head, top that the frame. effectively

the our that's so majority And contracts. of

simple And then, to and on current think cost very – profitable they're at are But variable to - efficient customers having having about think a event, the our we we customers, yeah, effectively, and Bitcoin price the I double on current think really pretty at I just having think price. current the run that, operation below through our the But mean it's your cost. about you event. significantly Bitcoin increase when the will go

that things. depends on really two So

stay It's John, and a the versus looking thing the profitable. the there's - had the they the price day, won't miners allows network Bitcoin the to has where And, efficient life of network of at then is generally, you're hash price of will guys. self-correcting But rate rate. be. most mechanism, be hash the it Bitcoin the in that of periods over for about time There the end that

to current We're XPs. now the Pro be - and all having. turning who the facilities they're the are only I we're our in will online on majority SXX think new running post and stay ones will what of

our we the customers latest for are running model - all So the well and and that that. equipment think we so positioned mining

a would bit it. there. the there? a competitive landscape you that. some on recently. little And I of that's the interest lot the of increased and the competition HPC for kind Got obviously, of just discuss the Thanks imagine, in other just question Could that then, something segment, space

space. the I there data come plenty and people expected expect the of providers. traditional entering entrants center expect from new space. I competition be to into I Yeah. the to

opportunity opportunity fair is, next-generation centers this these amount. I opportunity we and think of a we it's to a talked what I set about really opportunity. and large data think frame this the why have And kind just

data versus in let of just traditional comps some building see and you, what future. give me But we're of what the we kind centers

video data rack, talk ultra-low rack, a built they power - streaming we center, data build, typically for centers of X.X of types energized for the all those traditional So, to latency, things. about Traditional generally kilowatts. deliver it's about racked full

is their XX somewhere kilowatts rack. with around a When to load if kilowatts that GPUs, video rack that the kind right a XXX box - and of is to you machine – full, standard capability power gold which for that now generally XX that we the full a rack want eight, of, learning so AI, And XX it a requires to about rack.

heat versus correlates So traditionally the almost that and increase to needed directly you're they're what of five-fold really looking a the amount in then power created.

to going and talking in with from to them XX is so a largest lot we're time industry spending view per that to and we're But, kilowatt rack. XX the players of are things the the needs

thinking older So And data this. amount density. the might they you of really difficult that need. it's this then do It's to they you're to retrofit increasing centers are power then and significantly about be, bringing power

And you're we're move a them and now source. to going lot I handling to more the a think AI, load that very learning it's looks machine like trend closer what because specifically or see to it a power unique

this ultra-low these. latency need don't You for aspect

we're So well. positioned very

power. amounts large have, of We low-cost

cost we to lower want to our In down in and air cold center, a cooling higher use the you just mostly sitting because our electricity usage the locations. significantly. from for example, very than would on airflow significantly is traditional, We're cut see data

of So cooling. of center, you around traditional just massive miles for our amounts air half per flow is hour facility air new data can maybe mile flow, flow eight see for hour air per designed the through, a of

absolutely Because in is perfect climate Dakota the North this. for is,

grid. a sitting fiber We are on

We Gig XXX connectivity now. have

are the We the at year. the end - XXX going Gig to to end of

which we fiber also So connectivity, have good necessary. is really

But in just aspect. the ultra-low good sitting need really You don't a spot. we're latency

this go Bitcoin Just Now, like it for hosting capacity hard. was out easy building is everyone mining, space? into in we've seen that to for

here really US in some of well. We’ve large data good team actually harder. out internationally, that is and a think place. a even the pulled this as centers I company We’ve put builds people in

of data hyperscalers. building the for were They largest centers some

a people have with of So spent time design. specific we that We've this. lot are designing doing the experienced

we're Now it. implementing

everyone a that So few years. do lead for we're, have a doing been We've almost this other we seen I think out significant there. few smaller have versus players a

But ones where move the have, have good already I you're some given going a larger But think towards we do I we sites where see now, think advantage, that are to it. pretty we of the and that kind the as knowledge far already we really, engineering, - the our with power already. to deal have able electrical we being with of operations our density on as this have base

like I no of you expect industry without large have an I will to that competition. But extraordinarily expect be a there's one it do industry, and way lot competition.

Got Wes. it. That's great. Thanks, Appreciate it.

Yes. Operator?

Mike Grondahl Please Securities. go Thank you. from of The next question ahead. of Northland coming is

think do green HPC do Is you shown that running? a you kind of light can up on of think when HPC X megawatts three revenue? to sort you the in of range are a the of years when of the terms everybody and for could what when and megawatts fall, thanks. guys, have opportunity? you this number two look Wes, And summer, in this you then, Is have business like And rough that that's Hey that? sort this?

Sure.

we're just HPC gave kind is but the you - mining, revenue red the – we've green So repeat kind kind think as we Bitcoin I if maybe lights, frame as it want of we've of comparison from versus earlier. already. revenue the me I that moved to, can like far definitely to where the of to yellow

that see that the our network works, So these we're we've site. see connectivity in operating We works.

works. see works. these setup this We We the see software

bring be what versus when X from we a we as Jamestown tuning megawatt we the Garden perspective, City - sure, built Now, design the built some we on did in will like building some and fine on, up for building in for there just Ellendale. from tuning

are But amount a these really that conversations the and we're moving given in with people we're close and we me conversations really we’re right having that of large and has team direction. the the the having confidence

far could trying to talked what like to few as, could a split. look think I about years getting we that if look XX/XX about As are now, like mean, we that a right what out,

things demand talking GPU there that it's And, material this out on potentially now. that people end the for And of few depending that build think I of large is or next how rental, this it's very to hosting is a large will something about right these be the data of year. that few very months the this over quantities. is by business we're go type the about center

But could and XX the is of build, which But HPC amount the kind the HPC I of Mike, - demand growth. having But way, XX very runway what numbers go for I megawatts and be people the individual we’re said, a right of ramp to I starts in with these, right it's versus now, it long extraordinarily will demand or comparison wanting of you call mining. we're a - seeing large conversations were one Bitcoin there earlier of given, this of it starts, it quickly. think XXX XX really like about some and revenue if if that megawatts gave

development because these that's some But in certifications will that to demand. on. we're will to signing really seeing stop from but stage reaching know the get some that, We're The need projects we prior and I need. of to it's, turned that even of are large to built the be that don't a in summer, customers lot getting we going us

to might may for of signed these cadence so, be on there some at And to than the least initially be earlier I expected. call what come

it. Got

away times. it's took XX I revenue XX is comparison, hey, like to And Okay. the

Yes.

Revenue miner. generate of a

it. Got Okay.

for - And that's co-location. Mike, for that's

that hosting do own higher just we GPUs, And comparison a it's significantly than that's that. if right now. I good the if the think we So

Got it.

Okay, thanks.

Our with Thank you. Dede [Operator comes Please line Instructions] with question. of next from the C. your question proceed Kevin H. Wainwright.

timing? What acquisition fully of pipeline I of on that Wes. thanks the given the into kind I of that it the HPC your give guess, your for other next site round - sort peek us, begs, out XXX. sort on, the of you and Hi Thanks for it on can a pretty builds, for next you begs, discussion - question contracted guess, side. seem

Yes.

site But Bitcoin mining have a power a not the that amount for actually have for front. us. another optioning - good demand HPC the of amount the North site. we're demand Dakota, have site. We're that in seeing we're identified I region price a has - that think we in for we emerge on very we So, cold good seeing I

the two I But site ones the that and do further. have it we HPC to identified it's expect the even at But also high. likelihood another site are primary Jamestown the is extraordinarily in pipeline. goes towards those expand we think

Does Okay. going set it entail or increments? like megawatt are another kind buildings of in you X to Jamestown do of those

larger And The the - would Jamestown, in recall next HPC to Jamestown guess, above be originally – but in I to – we megawatts. megawatts. expected a X build XXX for recall I go

us And I can power the XXX there beyond what is I limit not just so, provider HPC. with think yet. we with for that am certain push that

to we we'll that push have expect sites. but towards with. think then more that forward we we expand can But site do move very identified one at that new attractive But will we site,

dig the you just Wes? perspective? business you from HPC, I How in models financing a Can that little approach owned a bit do guess, co-location in versus, Okay. the on machine

the be - probably from you significantly goal financing the types So expensive. are are pricing these these guys know That so on extremely owning, more - a the GPUs - that GPUs on on of high. perspective, the, the will

a has So, to financing very mechanism for team and market developed the we there we better sites us own really financing the that much the you getting market if job side well GPUs, particular to-date want that. for that a is great done low-cost on our - have for financing finance

already able large, path. it solutions capital-intensive. are build. be think that it tap And down is are of kind working on But on of initial to if that So be we're is And I we've that. to going we'll the some we around it But is extraordinarily financing.

fully the some is, that we So integrated one what amount you full, if is do to know. model will to pursue I don't want the

you be, limited be it's could by ability finance And that? to know, our it going Yes. to

think large the don't the builds mining ability The contract that don't finance will it's financing set On Bitcoin credit HPC we've - facilities. I triple for type customer had that have there any our that companies, we'll for to think co-location issue what that companies, A I for co-location. with side, to

a seeing with of going easier buildings. Once types co-location financing even think of location we're environment co- be contracted in that it's difficult customers, to the – just because for I more significantly much right now, those customer profile

up the speak touching What Okay. up looking? on how's you What And of you sort thinking you of picking now? are sort of excess that set on Would that that can JV just about to? touch Rigs? you mind sort

the we significant We the, the of, had was the that like unfortunately, trade totally it's it was out never go fund we were that, a an been that a of get Yes, amount price any a demand that there, in say like or we starter, forward. great we up And Kevin, materially push on been can but do the of opportunity I pull and is that moved but set got wouldn't mass lot that. money that to kind in which saw of the didn't to we so, basically, on money up that but - the and SPV on structure come opportunity of a has pulling at went, critical had successful would time doing in equipment JV.

to pulled opportunity. which really appetite It good that. the was put maybe anything was space, on money of into a kind signal material a the just we into But it wasn't front that, huge a just never investor

All right? Pretty insight. Thanks so much, Good significant Wes. effort.

Thanks, Kevin.

any session. to I'll turn for concludes Cummins gentlemen, Thank comments. Mr. back that the question-and-answer you. and floor final our Ladies

employees adjusted a loss that shareholders repeated clarify on Thanks and it’s of And loss to and $X.XX one call million to are support on the prepared I the of adjusted numbers. and the just their the for the operator. want again. net of two thank David income. Outside thank earnings our is that remarks, different The twice, $X.X number just a appropriate in

difficult and recently falling in extraordinarily Dakota, winter as snow there, North an well. was It it still going with more

next buildings So that job the we'll a on quarter. effort great Thank that everyone's buildings everyone appreciate you you. Operating getting done that to I up. really talk and has the

concludes conference. This you. today’s Thank

may Thank time. your participation. you this disconnect for You lines your at