Riot Blockchain (RIOT) 1 May 242024 Q1 Earnings call transcript

Greetings, and welcome to the Riot Platforms First Quarter 2021 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Philip McPherson, Vice President of Capital Markets and Investor Relations. Thank you, Phil.

You may begin.

Devine. you, Thank welcome Call. and Platforms Quarter First Good to Earnings XXXX morning, Riot My me Jason and are McPherson, and name Phil is joining President Corporate CEO; Yee, Strategy. Vice Jason Colin on CFO; Executive and Chung, of Development Les, call today's

Riot supplement can our On discussion and include today's XXXX prepared Investor first which presentation, of website, and items. a release remarks press earnings Relations certain are quarter you the find earnings intended non-GAAP to which

considered as prepared Non-GAAP substitute provided GAAP financial in not be the first measures clarifying performance measures superior further or financial and additional company's the investors quarter in a to to as should for with aid performance. items understanding are of included accordance

potential expectations These management's uncertainties. During based on assumptions are and future events. to today's will statements call, we risks current statements are be and subject making and regarding forward-looking

be differ results section XX-Q press and the to ended and of Platforms. Commission. comments earnings today could factors would in XX, quarter included to I With Actual will Risk call and today's other during and materially discussed XX-K, in Form release our call Form the made due filed the responses CEO which for to today's XXXX, of and that, after market Exchange the turn like Jason filings with Les, March over close Securities Riot Factors

which of of building of of on integrated morning, of developing of company, a Riot a primary low-cost first section and pillars XXXX quarter Riot's producer focus both the key and available Investor everyone. presentation our good a filed strategic balance you, significant morning, developing this been being and website. leading built Thank vertically Phil, mining press sheet release scale, on on and strength. Riot's owning operations earnings Bitcoin has Relations are the X Bitcoin

build able By strategy, are these a to focusing vertically integrated best we pillars. on

acquisition with with of scale. acquisition ESS for continued facility, mining of teams key segment, strategy strategy low-cost building introduction supply of past X The focused on which and this and the and developing Metron equipment engineering operations Bitcoin began been the contracts. out This electrical the its infrastructure. Over helps development have the at and control bottleneck the our power years, our we fixed Rockdale

And we the our broadened space strategy development our The benefits of Bitcoin moving And has facilities. capacity of to see similar portfolio and in finally, miners power are facility Corsicana other the today. strategy. a towards on mining result, this as of display access purpose-built a

most Corsicana are strategy at out of able others facilities based key we pieces equipment, not who build already this developed and fully has ordered scale, electrical Riot to like Since further, XX-plus while have month landmark chain dedication the months of team's of that is funded Riot our to growth has fully achievement Corsicana means clear, constraints. our a plan. The energization This strategy. of result long-term supply this

Riot phase hash for puts buildings, utilizes facility end this our leader at which us track is XX XXXX. facility well The on all increase first immersion the by the a technology rate deploying of to of Corsicana industry in cooling its EH/s of in scale. The to self-mining

the about executing excited provides incredible years, look forward we several very for growth are this the to for We the next Corsicana on facility and plan. pipeline further

of Bitcoin primary why have drives strategy, significantly ability power. that key power and our of for built mining, this input leader in reputation is mining benefits our we own XXX our is stability and Power for long-term of operating and our variable have power fixed-price owning we cost grid of as our on part down business. an the a which agreements, to Through sites the execute demonstrates of portfolio unique and megawatts unmatched the Bitcoin

position. liquidity scale at and acquisitions, price for financial pipelines requires large maintaining fixed contracts and power developing a growth Making strong

to a all Our long-term we is on and basis for and purchasing leading-edge are MicroBT. fixed growth sheet price this our funding rate their strong miners for plans through our this unmatched Corsicana near and position, intermediate-term strength of success. balance makes expand With responsible increase possible hash

growth remain In we remaining In because enhancement of the at we hosting XXXX, focused and under conclusion, on our business. those perform Rockdale failure the customers' legacy X agreements. self-mining facility both of contracts terminated to

of results, reduction execute separate the eliminated we As and business reporting Riot's a at unprecedented the a segment segment. first in have our result this on enabling of results starting is strategy scale. mining business consolidating into our as focus center to us maximizing Bitcoin the hosting quarter the mining revenue, XXXX data and in Bitcoin hosting is an

that, would Platforms. Colin to now Riot Yee, CFO the turn to of like I With call over

I'm Jason. you, of for of financial the XXXX, key a Riot quarter Riot's excited which during first results to Thank achieved number present milestones.

pages. metrics For ease reference, quarter presents on following snapshot first X the for of a of highlights But Slide let's the go key over some XXXX. of

in and the Rockdale. America. And this operations Bitcoin continue in largest we miners of North quarter, deploy We one to own mining operate past during

which We Corsicana energized have our has at with facility, activities also and operations been pushed since have development new ahead begun.

And by first Bitcoin we EH/s, achieving mining of a a Jason At of business total rate had capacity rate of deployed the total the previously hash XXXX, represents EH/s XXXX. end mentioned, increase XX XX% segment end XX.X an our which of of as hash anticipate year-over-year. self-mining quarter the

Bitcoin January doubled quarter decrease primarily to more of the was first network during the XXXX, a XX% quarter This increase we X,XXX the the first significant of mined which X,XXX in Bitcoin Bitcoin, due since XXXX. XXXX. has of we than represents from mined the During difficulty, which

end in the end with did more by day halving per spite that the increase a expected this Bitcoin XX, recent rate capacity hash of few of weeks year, by ago XXXX, on we growth occurred even of significant the than year of XXXX. the in producing first we anticipate our in quarter However, April the the in

increase end X,XXX quarter to first the In significantly $XX.X of an million Riot reported prices by has of XX% primarily of $XX.X was quarter XXXX, offset up by year-over-year. due held that Bitcoin, of relative of Bitcoin to the than XXXX. XXXX XXX% at the a increase Bitcoin Bitcoin in XXX more XXXX. which driven year-over-year, increase quarter first quarter for lower This of the million compared Riot again, significant year-over-year, increase ended revenue as network decreased the doubled the which to first first XXXX, primarily total in production, January was the average since difficulty, Bitcoin XX% we

should equates as gross Bitcoin to during as first computed the XX footnote totaled And received that credits for approximately million of power XXXX. approximately to this Bitcoin $X.X received #X, In compared quarter daily million you margin equaled curtailment the note monthly $X.X by were quarter closing a to cost revenues, these or using our If average on million $XX.X basis. a our have prices margin. non-GAAP power of applied XX% would profit credits total

guidance elected compared in first crypto EBITDA Riot fair now its final adopt quarter XXXX, Bitcoin December on under XXXX. Riot value $XX.X in and million in as to assets the of $XXX.X in XXXX. issued held million recognizes was the income. adjusted which EBITDA value recognized in early standard Based at for with adjusted now Non-GAAP the this of on FASB's non-GAAP first quarter to fair changes

share $X.XX million $X.XX in share quarter for the XXXX. compared same income was $XX.X period million net to per the of or $XXX.X Net for per income or

for the net value noncash $XX change compensation income our a to Bitcoin million. $XXX.X the of depreciation fair expense million quarter stock-based amortization of equal As included of $XX.X and in a million, reminder, and

our X-year depreciation a for a to its legacy Beginning adjusted based we mining operational own schedule XXXX, hardware in X from evaluation practice our hosting In the agreements. and first Riot schedule data quarter on center history. our of market XXXX, X-year terminated of

no hosting material profit. data from from both During revenue the was the XXXX, first longer agreement of quarter revenue final center and

commencing segment. hosting a so report we no will And longer data quarter, reportable this separate as center

center We hosting to to no services also plans customers. new have data offer

quarter mining was compared which of prices of totaled revenue first $XX XXXX. due This higher of Bitcoin to XXXX, primarily increase the For $XX,XXX increase which to an the first first million hosting the $XX.X quarter million of XXXX, $XX,XXX in averaged in year-over-year. revenue, in $XX.X Bitcoin quarter million, included

mined of is the this to increase difficulty. of to compared significant network the increase decrease in a first However, quarter due Bitcoin offset in Bitcoin again, the the XXXX partially XXXX, in first quarter by

consists Bitcoin a Mining Bitcoin amortization. XX% margin or direct revenues depreciation margin from production of Mining revenue the of including to $XX.X a primarily This expansion of of of Mining first costs, was revenue capacity primarily increase is facility. in at driven cost by quarter our electricity, quarter and in increase for as Bitcoin and mining of Bitcoin million, excludes Rockdale the cost the from was XXXX. of the XX% compared million excess which revenue insurance labor and of $XX.X

decreased to revenue were million increasing have non-GAAP credits $X.X Mining on Mining power cost costs Bitcoin or Mining power basis. $XX.X If a directly of to by $X.X hosting contracts. allocated cost included the Bitcoin of cost for Bitcoin our Bitcoin of XX% million, remaining revenue, million also Mining margin would

to Riot's mine. Slide cost down X breaks

to customers for In agreements. business remaining the data both XXXX, the hosting of to first XXXX segments. changes X Riot due center the failure of The reporting legacy to under their quarter Riot had obligations meeting terminated agreements our the under

XXXX mining operations financial captured costs the been been such, and segment have in segment mining absorbed and the by self As statements. our hosting within that first center in previously reported Bitcoin quarter data had our presented

Direct Bitcoin. rate Riot's of increase in of driver difficulty mine an $XX,XXX the XX% The was accompanying the in $XX,XXX which cost network to Bitcoin, increase or behind and per total. of increase power direct Other cost the mine $X,XXX hash represents XXXX the in of costs quarter network XX%. remaining first average in was global were primary the of costs

insurance, other equipment and property miner direct expenses. miner costs costs taxes, utility land related Other lease network related and miner include labor, and repairs,

XXXX. Rockdale and as We have second be facility. the the begin Bitcoin deployment which new facility, increased in at of to already machines hash rate our operational deployed expect quarter of uptimes Rockdale production is of at ordered additional And deployed we will increased, MicroBT

increases, our thereby cost fixed the spread costs each Bitcoin be will of So of these as number across Bitcoin. production of produced, mine greater lowering

the ended resulting for constraints to in $XX.X primarily on same XXXX. delayed delivered in through and able carried million business Riot's X-month receipts up reported of potentially worth recognize period the this products of as engineering certain of revenue for therefore, in revenue. $XX.X compared million, This to owned not of first $X.X X not chain large Metron, materials. decreased projects of attributable the wholly supply million $XX.X quarter, decrease subsidiary were ESS completion the global was million of The quarter custom we XXXX Riot's being in to which

the chain to backlog of supply manufacturing also due lack capacity. shortages These in impacted our projects

of the that these year. engineering issues, However, the as loss quarter results Jason by the we quarter now gross will resulting be $X.X anticipate million similarly to the of towards Les. currently end of XXXX. this over in of third $X.X first quarter compared for for of I issues a our margin was impacting to the gross back supply the gross will resolved Engineering turn call impacted chain profit million a

Thank to to its strategic you, aerial of new Colin. for was is where power of the purchased our in switch We land shot location an slide available. next this Navarro on due this facility. the facility X Pictured gigawatt capacity Corsicana XXXX

buildings. which the site's support immersion total of spans consisting cooled phase in infrastructure, to the have total gigawatt this Bitcoin Mining beginning we capacity, Over megawatts years, X with X XXX% past develop XXX X of first worked reaching

this The XXX-megawatt first remains month the end to of would already in North America gigawatt underway reach and X substation of status development XXXX, we development commenced. the largest potentially the rest dedicated complete to Mining and intend of site Construction total by facility the last globally. cement was which first and operations as XXXX, continue the for mining phase the Bitcoin have in phase eventually facility capacity, to in Corsicana's Corsicana's of energized

this EH/s plans MicroBT rate. our EH/s at growth a and to hash pipeline Riot's would rate self-funding This XX total exit hash Based XXXX. purchase of represent EH/s miner over agreement long-term XXXX includes our facility direct plans, path in development growth in with at XXX rate our purchase developed, hash X.X infrastructure XX increase facility. new Corsicana agreements a on of reaching and us fully with XXX% Altogether, and of EH/s. with Rockdale provides when and Riot current self-mining to a clear

the infrastructure EH/s the Riot Riot EH/s following of to with and developing first predictable These megawatts amount MicroBT Bitcoin XX Corsicana MXXS of capacity. allow the astray components substantial a visible XXX the Platforms remaining completion Fully capacity most a its facility pipeline purchase and development Riot for XXX provides nearly needed goal. part Corsicana Riot our remaining total words, other the in In directly the executing give of through purchase phase the reach utilize Mining of options option and miners reach to in of sector. of would our MicroBT for

In air-cooled of into entered next-generation order the past performance. observing strong environments total infrastructure, after MicroBT miners to these to agreements both series latest various testing enter The with EH/s a of over large-scale came to fully decision MicroBT of of XX months and our several we pipeline have utilize in XX months, and immersion purchase of agreements a generation operating miners.

by is to improve our As XX.X a of result XX.X% overall expected deployment investment, purchase orders full of fleet this J/TH. to efficiency our

This for substantially options of $XX.XX fixed order. and As XX an MicroBT, fleet terms provides next-generation our for similar ceiling miners long-term overall miners have to per on EH/s additional Riot order purchase with of in to original on further support part improving option a its TH growing our price of agreement we efficiency.

value exercise with our would Riot full a our fleet to sheet Bitcoin and prioritizes in balance cash our efficiency and drive for significant XX.X deployment miners, long-term those even to holdings maintaining purchase improve further shareholders. J/TH. Assuming order of of strong options creation

result, growing mining continuously meet opportunities to and act scale business decisively As a our in the Bitcoin space. the we can

XX slide. $XXX call which you see Our print EH/s capital million broken on down in to growth this in reach can plans XXXX, expenditures, over for

expect growth to first We the have XXXX. the with XXXX quarter plans we and to of resources fund liquidity out these of end total sufficient entirely, that exceeding end financial of

the has to vision. world's vertically now several our we is results, us platform. Riot's us leading rate this bearing XXX% reaching over in the have our EH/s past which The have realize infrastructure has begun we be year by to rate. growth this total self-mining vision unmatched to XX driven to Bitcoin position executing years lead increase to the strategy, strategy been Through pipeline hash EH/s goal integrated and of to an infrastructure created our ultimately XXX on

Riot's our and to a result, targets. balance fully XXXX growth ability plans And funded. sheet strength our XXXX these are achieve as underpins

is executing this EH/s. year, path incredibly to what we are excited on accomplishing about stated We achieving our Riot XXX to our and on look goals forward

for now Operator? like Thank We to for you all listening open presentation. the call to our would questions.

Instructions] [Operator

Q&A now Phil, session. yours floor the is for the

from H.C. We'll Devine. you, Wainwright. Kevin Kevin? at Thank take our call Dede first

off. It move We'll looks he dropped the to one. next like

Our next from come BTIG. question of will Greg Lewis

watching -- kind I ebbs couple started build Yes. maybe the to monthly we that seems on inventory we've Jason, inventory just the we of like some like strategy recently, Bitcoin don't Bitcoin based seems think terms management. gone back through the More February guidance, with it Bitcoin. least Bitcoin. holding and production really trying March. in at unfold and in in funding a saw I and we think operations of terms flows It of of

we in look offset are of as managing then you're time, and the about I generating terms kind kind the that? some to Any takes you thinking trying Bitcoin beyond, puts halving to how at, and thoughts inventory. that Post and costs now, same of build around of the using that guess, May at

Sure. Thanks, Greg.

strategy a our to sheet. strong So is maintain balance always

in by key I Bitcoin. played both we've and in Riot. a cash business for This out now, as all includes strength how think seen

Bitcoin. We in are We here value believe because we're a a Bitcoin long-term company. of

hold try possible. to we So as Bitcoin as much

we updates, we In sold any beginning selling monthly noted, Bitcoin. and we you through February not the this Bitcoin. As in year at of March January, have reported our stopped

any Bitcoin. currently, So selling we not are

our we for in need light growth. capital from However, to expenses we monitor continuing what what sheet of operational and need we balance are always

today, reserves such to cash of balance our sheet a expenditures. continue our position sufficient have ATM reporting to and that a further cash with maintaining strong By we to we're fund cash and growth plan our access all operating to program

evaluating value the in trying So that parallel the we're capital basis with the possible. of as decision evaluating much goal it's as and Bitcoin options, hold on a our to financing cost market, of month-by-month a of making

other then the kind Bitcoin question here a the X-part -- but business. that's question Great. just a of a driver guess terms I there's the of Clearly, that was Realizing it's Mining, on the engineering was not engineering. of in And company. my major -- Okay. there

any should With the don't we first be we to being, over is that thinking out look I next, seasonality there about as quarters? know, X the X

that bought also, get as centers. a on benefit curious, to ongoing then an that we're to Riot's be opportunity Metron, isn't And there this of infrastructure like Is miner Metron? seems of of at data of... core kind clearly, business AI was I midst when maybe you not the going in Is infrastructure to the wave equipment involved function it's kind AI realizing that all kind side, that positioned from -- around was

Yes.

So the let me last tackle with this, starting question, Greg.

right for is demand there type first, incredible electrical So of now. this agreement

While Riot we to owned service. data are ton and have data a of a of are of Metron, business one these for type demand all rapidly out of they -- that build smallest ton this Overall, customers. the centers ESS from trying meet and AI demand centers

manufacturing, really are they opportunity. with access the parts has chain. limited from And and it's business on to global So supply warehouse been input the capacity what overloaded

million over has our the purchase this here, we've we about in the them equipment increase meet it the since benefiting ESS $XX one number are AI But a and purchasing X centers, centers this, data our One, years for these -- acquired you deck they our as they CapEx purchasing from for quite of to electrical for so reason So the data them. and this business cetera. demand strategic. bit expense noted stated, Metron reduced by are we was et capacity looking can from

been equipment it design component controlling competitors might custom to need. other important external engineering critical they this to procure design more to have our control what while supply has a on even electrical in-house. of parties than But chain and that, the able We're rely

have can Corsicana. to us as We supply It's make around visibility we out advantageous move We can We both our changes. this. been very chain. and built in Rockdale

Then seasonality question, of first your the though, was part results. -- your

will I we this moving supply amount orders which forward. noted, impacted see big were a by global these X results seasonality the chain issues, back quarter good Like of think held first you from year.

and those completed. jobs forward that being could occupy only be from stops as they move not not space So orders revenue, other recognized

expect XXXX. up cleared second be So these to the during we half of

We resolving procured. of on have additional warehouse we top space issues. They're supply the chain

will flowing of these X move key that So infrastructure. data we revenue the those to about forward. quite backlog you with demand, then which full can contracts and AI allow and the other can asked as We center is, recognize keep

Our Wainwright. Mike? Mike is from next Colonnese H.C. question from

First really one a more question is for of high-level me.

with curious post prices thinking are cash you the the are how halving, here? guys out play Riot operating all-time Just you to for to less forced the down here your as growth efficient trajectory expect landscape at environment implications power about at how miners lows M&A and

Mike. Thanks the for Sure. question,

answer the talk and of part, to our first Corporate here. Head turn Let Chung, to me question, it about then Jason M&A the over other I'll Development

this offset the that really the Immediately and as one, from blocks transaction time reward they is because I saw, block huge in XX halving. there, decrease for There right? always with up tough Bitcoins fees were seems from think in we it the that after a the but transaction bad scaled fees not of -- halving influx a miners.

gone the But subsided recently, price and that has has down.

cost producer, with types for Riot trough in we with Culminating able the economics. being by our power these think here, low-cost is summer focusing strategy, especially on periods Mining I positioned are of responsive well mine, Bitcoin very to a price direct Riot use and a be to with fall of very off when here. power, of lower to that that others allows producer have network be the to the our low-cost

margin and fall then higher-cost as difficulty you those when that as we're widens And again the producers know, mining Bitcoin. adjust more off,

we of just of type where bullish holding is on we are Bitcoin. in on the So term. the we're system Obviously, I talked long-term long environment believe believe strategic about display. the upside full we're Riot's this because Bitcoin pillars

on -- be a the through be low to more difficult have to that cost having reach cost power of focus a of But company, market. long this we points Bitcoin and production in to term, maintain low to leading Mining

turn On the Chung. I'll M&A and over it to Jason question, go ahead

And differences really price can and question. on on sellers wide prices, Thank Mike, buyers of and pretty really look the fairly have public thanks our in seen between seller across volatility think -- Bitcoin expectations volatility historically, underlying these miner a stock factors a to factors. underlying by for have of Bitcoin perspective, all you, number buyer Jason. led the gap been other a We and sector expectations what I deals tendered From among the we've expectations valuation in at in as historically. valuation factors.

pre-halving, I At has our will But post increase healthy we've think we're continue. that so sense seen flow think that to gap particularly think narrow, started I deal trend that post-halving. will further is deal halving, we now that the that, same pre-halving and and very time,

you when X these factors for to I be interesting think in deals consideration approaching into a opportunity window done there's the of sector. together, So take really

most in of our upcoming we we space, believe sophisticated precisely is lot team what And side, window. building out the on development our address spent this corporate time a to

experience are go guys for experiencing? saw we you the of with the year, going year? should engineering about especially we this Appreciate elevated back are especially given for level, great That's run growing resolved business chain an growing color. last think what the rate that. to once that expect line How given issues moment. revenues we just more the And should later backlog the a engineering supply to Should business? demand in we Or back

Mike, just performance for think you historical can now. about say it I the would following

has expanding the It's issue of work that main the our increasing demand the financial scale thing driver will warehouse to us. there. engineering segment. business enormous. The really this for not capacity. That been is really manufacturing think an be capacity performance we of to on need is I that That improved

wouldn't that could time. I next towards something I working on but our that we're that, So at it's higher expecting a on increase call. at But touch guide earnings for think we

We'll next Darren? from Aftahi take ROTH Great. Darren from our call MKM.

Two to Rockdale. going you're I if replace may. questions, The in machines

quarter. on you think you secondly, going I in said to release, those the those added? sense cadence of kind shift any just start to hosting self at capacity, speak Could the And how in second of in of kind what publicly of there, the the you resolution say kind to you are of the are mining on in be terms then can going least some how of that to future?

Darren. Yes,

receiving hash begin say for this would rate miners May, latest at of at So we can expect the We've growth those MXX the to This series, generation we We're the I replacement deploy been to with preparing month. MicroBT miners. probably and that purchased. Rockdale. July. June through end is this and those continued

starting about the so I But those over of June. how happen deployments weeks bulk deployments foresee this month X will or think during the later we going. the is

And both are replace our increase rate that our facilities performance will in we then these growing hash machines, and which existing operating as will well. the problematic

with under will miners MXX considerably saw, XX that are we the operating mines enhancement deployed. EH/s making conditions. the really that when really We've performance from this other impressed Rockdale EH/s decision. over these or little tougher -- excited So to all and before MXXS a those resilience miners XX.X tested MicroBT the miners and We're about growth. now this We're take

deploy that months the really we couple excited from definitely So results next as of see over the those them about here. we're we miners

litigation With I is respect that. really always unpredictable. hosting to related give the litigation, guidance can't on

see certainly think a and are lot effort And it just that I from now. goes we'll have to litigation. of towards putting resources We how

question comes next Toner from Martin at ATB Martin? Capital. Our

particularly, to great quarter? SG&A here, for forward? a about the should in the hosting. maybe drivers what on of Congrats higher And we you data sequentially the thinking be rate progress center talk going let's run say, Can

Sure.

we continue right through litigation these we're that X here. but This long legal of now. increased customers. touched So expense as a on, expense we've litigation level one is go just term, with continuing of again, not things process it's had type should hosting One,

the mentioned that I we've The as as other center hosting segment eliminated I of segment. is, eliminating result point in presentation, on the a would data that touch

in I'll Some were is cost here. revenues of into SG&A. gone large leave the business building that have previously there commentary point a now you we're that costs with The of for segment final the

we into. We this business growing built into are have what now

have we're we for there, and we're seeing with now at accomplishing side. business into Corsicana -- see and So the built EH/s we're a that newer to we're XX growing And starting what beyond. results

like I what can expenses. as far cash going as in $XX SG&A So $XX can forward, million look you think expect quarter a to million

we to that number. right and fall the I not And able think now. that's legal can improve that a as that litigation good estimate be expenses are give we'll ongoing, continuous off, hopefully,

the in -- the ago? puts have a that are about less you Any the Day been any there little Can Analyst noteworthy? strategy And revenue talk quarter. power bit than since and month curtailment Great. few then to a takes a changes

summer of end every results the So but of in really really course, most in most of the see quarter, second them in we And the We get the June. at quarter QX come weighted. that third months. some are some quarter, power the strategy of of

opportunities $X us really ancillary just have we approximately that come during up the participate services the that and first quarter, in. of quarter million from see always revenue So the limited advantage you taking that's that

QX up to cannot weather external It's to factors is going here? and that plays summer control. and So be how hard It mainly like this we out predict. it on in based coming generation performance

power we've price of act opportunities are megawatts the what occur power on XX/X developed, we XXX a this have because learned they here. to and because have of these we because good position that fixed we when really strategy However, we've on in blocks the

megawatts, Rockdale. XXX that is that So

of Rockdale, we'll beginning So power power we Mining at benefit prices they just unhedged to of we'll be as be is as those also the occur they which selling over and strategy there, our us are hours priced capturing when of well. or responding price spot at priced power that Corsicana, Bitcoin negative spot occur the power then executing And exceeding very low revenue. when gives

Great.

comes Reggie? Smith question from next at Our Reggie JPMorgan.

the mine. kind still there network color those costs? your the that the and increase And could Slide question. large rather I'm not way color I seems in that you disclosure is of the to on be number. bridge in guess, have mind cost relation I then other all appreciate at cost the much of would and I X component. in And provide difficulty how Maybe looking -- follow-up X. it the think I a just of the sequential bridge components little helpful? clear kind to of of drivers on you XQ on, recurring one am increase And onetime-ish? Any that and versus

Thanks, Sure. Reggie.

difficulty as first, network XX% there's a you So increase about noted, in quarter-over-quarter.

for increase about accounted sorry, that coin per cost basis million $X,XXX, by So -- quarter. our per $X in the about for [ costs increased cost coin. ] Other $X,XXX per coin I'm $X,XXX

Mining of hosting now segment. elimination the data going driving is that that and expenses center to in the were the in therefore, the Bitcoin what consolidation that those business, some of segment, So be is of previously

repair things examples miner some of time. like Miner elevated this at So costs these repair. is include slightly

is So we problematic we this are this our replacing cost when at miners, continue to quantity. go not down that least all especially hope, and going at

in at $X,XXX we other time per this coin, X, what at costs, I would to Slide cost coin continuing. is on can think per we when best approximately say guide that is do the our So look including I

lot miner are same an has should repair by having on to decrease course, that, costs, we rate. to going notwithstanding other a those Of but halving the probably hope at which going forward. less continue the that impact But

Got repairs. it. say you miner And

are your repairing not the You're partners hosting now, equipment you? from

let Sorry, this. clarify me

blended comments was to were it the things? guess of trying some out hosting how the drag other from I like the business there. guess, much I'm versus the overhead I of figure of the, kind

Yes.

Miner mining. goods self So in repair let costs always me cost have clarify. for of been

we and XXXX then down forward. would not of those and QX the elevated say have in that that So sorry, -- I to go miner XXXX is expect a new both been in costs going QX QX are going that now QX XXXX, and of expense. repair

these paying our the and vendors we repair repairing for These -- are are costs that third-party third-party are to So costs. miners.

cost these that increase approximately in per by largely now that were other revenue. Mining of coin. cost hosting of other cost in expenses center data is previously $X,XXX That's Bitcoin quarter-over-quarter included revenue The

direct other examples utility of this incurred. lease some be some costs would that network So land expenses and some labor we property taxes expenses, then and and

Yes, one of makes guess, disclosure I for sense. I big the And EH/s. question on that XXX you. the picture appreciate then kind

the Do that of about does think of facility, assets the like, smaller you last big And ones you things XX the next ask that. think and What beyond final size like AI capacity light different beyond that power As of that interest like thinking terms all Corsicana just EH/s look of like? forward? and you growth of I in in of about Corsicana? are is How look facility? like could kind Corsicana, going be there'll that

Yes.

at these forward. the have probably that Bitcoin to ever probably and critical it be one we Corsicana last is site up approved. power will scaling and the Access is probably exists what that X only is gigawatt Miners think constraint X very industries going valuable I going for other a that the gigawatt last site, be because to

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and from have of always speaking and we And be excited our concludes on going about in That do Very the forward. everyone, for Thank results to as basis presentation QX Okay. to August. in sharing We'll look and providing executed we Q&A. analysts. Corsicana. questions our updates listening QX what the you, more forward monthly our with for results everyone a after end on

So with Have day. you, that, a good thank everyone.

teleconference. today's concludes This

Thank your have lines may day. wonderful you at a your this and for participation, You disconnect time.