Riot Blockchain (RIOT) 30 Oct 242024 Q3 Earnings call transcript

Good day and thank you for standing by. Welcome to Riot Platforms' Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please also be advised that today's call is being recorded. I would now like to hand the conference call over to Phil McPherson, Vice President of Capital Markets and Investor Relations at Riot Platforms. Please go ahead.

Liz. you, Thank welcome Conference and Platforms' Quarter Third Good to Earnings Call. XXXX afternoon, Riot is President My and McPherson, Phil name Vice Investor of Relations. Markets Capital Jason CFO; And CEO; of Vice Corporate me on Strategy. call Head Riot joining and today's President and Colin Jason and are Yee, Development Chung, Executive from Les,

which quarter provided Relations of should you as as accordance supplement find a performance and or the to which non-GAAP for performance. with intended to measures our earnings substitute third in clarifying the in financial additional accompanying the quarter of not XXXX On measures be presentation, discussion website, investors prepared included Riot third considered prepared superior include remarks understanding items. Non-GAAP aid and to are today's Investor certain items GAAP and further release financial company's can a earnings press are

Commission. comments will and today's risks today's materially quarter responses today. XX-Q, Form events. Factors based our section for made to in XX-K as other be statements well earnings the as Securities call are future call, forward-looking and XXXX, factors in differ During during Exchange press subject potential current assumptions we statements of results regarding in the discussed and could and the which XX, These uncertainties. and and ended Risk later September including will Actual Form are management's today's be on filed due making release, with expectations and to filings

Jason Riot I With Les, over the CEO will that, of to turn call Platforms.

sheet built being producer vertically operations strength. developing been good integrated Riot's of key pillars owning balance on leading of of a building of focus on significant and strategic X everyone. has Phil, you, scale, a and low-cost afternoon, the Thank Bitcoin Bitcoin a mining company and developing primary

EH/s, to by XX year. third XX% XX on of we end target hash XX of quarter-over-quarter EH/s meeting pillars. of success quarter to X by rate of continue EH/s from total EH/s these reach all the the increased our XXXX, XX quarter demonstrate end at to Riot and deployed During track the

quarter led The production of Bitcoin subsidy was reduction Bitcoin which event, following late and to first X.XXX operational from quarter third X.XX full the which a block. of occurred the April, block per in to Bitcoin XXXX in halving the

Additionally, -- X% third our miners headwinds global Both bearish per in which these the created power significantly for quarter Riot's in relation to lowest below rate hash was to Bitcoin mine by cost the events, grew and in our miners unique average by to cost sorry, industry XX% quarter-over-quarter. the aided quarter. strategy, Despite the events among these cost price mine. the is during of Bitcoin

credits the third hour per generated Texas while supporting quarter, the during million the to supply demand. We also $XX.X during in all-in and power kilowatt of lowering $X.XXX during of grid times cost power in our quarter, disruption

third quarter, Riot operational address cash challenges the regarding During to rate. also continued our

on continued and we growth, standard of primary excellence. reaching always at is operational a this on focused time this metric While are focus improving our

rate. initiatives These an with believe operational across when operating a pleased a And excellence. from maintenance, XX cash Average excluding the from Facility XX representing with average initial miners latest improving of to period was October Bitcoin. XXX EH/s. month all remain we Bitcoin was our preliminary of achieving XX, beginning are was underperforming nameplate of large mining report This this rate already just EH/s., production over average the mining that is of continue on substation for that results, are hash approximately utilization down our rate the through sites, Rockdale and for month and Riot's portion And to is and miners underway of and we We scale. first on focused efficiency enabling X when unprecedented to Facility of our approximately the Corsicana a quarter, execute the our During redeployment X.XX capacity XX% operational at results, was positive results strongly through powered focus show days are we the operating of this focus of Bitcoin strategy enhancement on growth through business. generation the nameplate Riot's this positioned and we an EH/s, maximizing us is building our to with installation company-wide subsequent on completed EH/s focus September. Bitcoin the at the our X.XX capacity on May approximately momentum.

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

I'm you, XXXX. for to quarter the present Jason. of financial results third Thank excited Riot's

of ease Slide reference refer metrics always snapshot and back For financial can and XXXX. you third key a X. operating the of something This presents quarter for to of

details the the into jump following slides. on let's However,

continue capacity Riot self-mining our owns miners facility Facility, third to and we operates the expand the Bitcoin largest during Rockdale and world, where dedicated in quarter. deploy the mining the

Riot as dedicated Rockdale which world. largest facility continues supply add rate mining hash developed, Facility the at the Bitcoin addition, our Facility, In will fully Corsicana to the when in

quarter hash guidance development result Corsicana a our ongoing XXX% Facility and rate relative quarter. a of development the successful to of As for and ended XXXX Facility, third meeting with Rockdale at our of the quarter the an increase XX the Riot third our of installed EH/s,

network These X,XXX the during Bitcoin quarter, about in by the of in significant mined increased this of third XXXX in XX% year, Block day in quarter hash which the Bitcoin having difficulty, XXXX. subsidy remainder Bitcoin In capacity the of first these in producing XXXX. mined our than anticipate rate of of quarter by driven spite XXXX spite the we having more line through Riot occurred the notwithstanding. expected end which with of increase and the and the X,XXX did events, growth the we results we April came XXXX event, the of by in quarter third the per from During Bitcoin Bitcoin significant

In quarter. continued increase third all XXXX X,XXX to of an year-over-year. the XXXX, XXXX, XXX% quarter Bitcoin, XXXX. quarter to retain quarter compared the produced the Riot increase of in increase XX,XXX million Bitcoin $XX.X primarily the driven end ended third to relative quarter the that XX% of reported the Riot a of of Bitcoin for held the at we XX% was revenue of third $XX.X higher prices. This of million as third Riot total Bitcoin by third with

of of $X.X loss the $XX.X million non-GAAP to it, FASB's now of $XX.X EBITDA as quarter standard as under gross for recognized Gross $X.X final quarter assets recognizes was in now a the profit XXXX. crypto adopted million in issued compared Non-GAAP value loss are for of was compared third to third fair the the quarter profit held million in December quarter of XXXX. Bitcoin adjusted on value. in in XXXX, income. EBITDA fair with changes adjusted its Riot at And million which Riot

a end the price quarter. third at upward third of reference, a quarter As was $XX,XXX $XX,XXX. the adjustment the in the of Bitcoin the resulted quarter price This second the million at $X.X the was in in end and XXXX of mark-to-market

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

amortization expense equity million, on This loss of noncash million. of compensation stock-based unrealized quarter's $XX.X marketable of net $XX loss securities depreciation million $XX.X includes and and

XXXX, a mining the As we adjusted a on operational in first from based hardware schedule history. to schedule of a of our quarter reminder, our depreciation our for X-year evaluation own beginning X-year

Bitcoin was direct revenue For relative consists of XXX% of XX% totaled of quarter. a a the XX% quarter, only per power as global of Bitcoin Bitcoin Bitcoin or mining April quarter to per amortization. per margin third insurance EH/s $XX,XXX to In hash compared electricity, and in of quarter previous in Bitcoin. halving quarter EH/s second Riot's a or of XXX increased excluding gross XXXX, X% Bitcoin Bitcoin mining $XX,XXX of the increase the to on the in increase XXXX. costs the of profit third totaled XX $XX.X in representing an production and mine million, quarter average total mining increasing Bitcoin to XXXX XXXX, when quarter but quarter $XX.X of Bitcoin of of rate event network XX% amounted the spite a this mine, mining depreciation million. cost which costs third Bitcoin primarily of the revenue third including labor XXXX -- margin to third XXX% cost the XXX for of in operations, per mining by compared Cost $XX.X million, of a the of cost Bitcoin, depreciation, excluding $XX.X basis the revenue from and quarter million

Facility Corsicana as pleased hour previous hour of Quarter-over-quarter, cost of at proportionately which $X.XXX power portion with quarter. power the fewer from procured a an remains achieving with hour, spot kilowatt the than costs credits kilowatt offsetting kilowatt power remain to increased in a greater power market rates was $X.XXX $X.XXX a the the all-in industry. lowest of a We one of at

XXXX, minor totaled labor, down costs and land costs lease per network minor equipment insurance, and property nonpower related our includes XX% result a to of achieve ride accounted operating the costs. of of scale of from This direct facilities. for Direct expenses related mined, which taxes, utility nonpower direct cost repairs, at and XX% Bitcoin is quarter significant economies when drop minor $X,XXX other or second continuing total

of expect to cost see hash direct grow Bitcoin total lower. as to to continues percentage per Riot we nonpower As trend a rate, costs

anticipated the one to revenue to decrease $XX.X as carried that constraints. X-month of $X.X an profit was Riot's in ESS $XX.X have due gross million $X.X This the out a of gross engineering million third to chain the $X.X for compared government of engineering million through longer XXXX million. loss in resulted compared than Riot's to contract quarter million the for for quarter owned subsidiary, XXXX. in of This complete taken attributable third Metron, supply large XXXX, same decrease quarter of business to period primarily as wholly reported of

such power continued developers to to products important higher-margin to as power. of and shipped in the the by data as Our in contract has distribution our components generation in power the and end increased warehouse X/X division facilities. for contracts. At freeing products development well capacity And switchgear approximately there construction on center for large custom third distribution worldwide these government increase center electrical and work as up finally centers data demand been this demand increasing the and back are get allowing continually quarter, due this of

expense additional in expense in million, factoring $XX.X Kentucky, SG&A million. and compensation rate for quarter, $XXX,XXX quarter of expenses the per cost which $X.X $X for SG&A M&A quarter was line This SG&A million which the run our and respectively, general to $XX cash Riot's quarter. a puts our expenses cash and third at figure includes cash when million million, million onetime the third of litigation-related business from particularly third $XX in additional with little $XX.X added previous guidance in over onetime

of rate levels, we expenses be litigation quarter $XX XXXX, M&A $XX forecast quarter. the run significantly on come in fourth litigation and fourth to relative to challenging in the the third activity SG&A to cash out million expect quarter For will current based legal million the but range. we to anticipate expenses elevated were

Les. will Jason now to I turn over the back call

Thank securing our growth of consists you, expansion hash way achieve enable enough more a on in Kentucky. Kentucky, XXX gigawatt pathway Rockdale at capacity this our and to Riot's total of have in at direct Colin. ultimately megawatts will With growth of of of The gigawatts to self-mining Facility rate. are to we pipeline recent capacity X Facility, well of our that power Corsicana and than capacity XXX XXX capacity X megawatts EH/s target now our

the and we of full which of capacity. pleased second Today, XXX have phase of to take development the to the will initiated X Corsicana when are complete megawatts site add announce capacity we gigawatt Facility,

plan the demonstrating path where substation to of expect our We We overall have Riot to in plans, in we that completed fully growth XXXX. the be development this plan, long provide guidance also from. has just our on for on visibility a growth the credibility believe come long lead clear as anticipate orders Bitcoin placed the element vital to is miners equipment importantly, achieve on will strived specific and but just not any providing growth growth forecast. growth and

assessment opportunities for pursue. expansion strategy, resources based stages developed development us of organic for optimal are our vertically our our distribution or given various of opportunities growth Through be prioritized of pushed can portfolio multiple integrated and we to have infrastructure at the These back on any at of pipelines time. available of

level exceed higher more Going forward, that present internal revised more on we XXXX. targets approach relative our and Therefore, this We in basis confidence believe growth revising will us rate with for hash we prioritization a and position based to forecast and on our are to XXXX meet intend degree methodology. our a mind, of growth and conservative approach this expectations. to prior confidently

this installed For in into driven slightly a by estimate now EH/s. Kentucky X.X XX hash at MicroBT with EH/s, operating Since pushed of improve in back miners EH/s rate to have into of hash have XXXX orders for MXX we expected we converted EH/s down in adjustment hash initiatives accelerated MXX XXXX, we in our in of of large-scale rate XX our a year. which operational X guidance at This seen of summer planned Facility, Rockdale year-end our from fourth from Rockdale, is increase approximately specifically, growth X.X resulting MicroBT uptime. this deployment More prior efficiency. EH/s XXXX, a underway of our being improvement XXXX, rate miners decrease significant and quarter primarily offset purchase by the is our the growth expected delivery

redeployed of rate the in will buildings power delivered to strategy-related even across the line terahash the cool during year-end. per improving which fact, be hottest MXX efficiency one total period X our These only further joules all EH/s locations, new by fleet and be machines miners increasing of of our thus entirely In generation only summer, operated XX.X of the curtailment. Rockdale the XX% XX utilizing excluding miners over periods older at uptime buildings, of to to air will replace Facility's hash our other

has XXXX, out of by systems in we development. we XXX deployed, Facility first remain to been complete of are final on the Closing track the equipment and our this process the of All case fully Corsicana megawatts critical year-end. commissioning

exit XX hash For year-end to forecast XX.X from EH/s lowering our XXXX, we are EH/s. rate

a previous result expectation equipment for of EH/s XXXX Corsicana X approach in relative we more for X taking driven the a online lead longer This to approximately to guidance, cautious are buildings We as change our lower by prior come which now X expect on substation times versus of accounts guidance. of buildings.

are into expansion XXXX the expected XXXX we XXXX. some of out Kentucky for and pushing Additionally,

approximately In of change We now year. facility X.X the coming long-term XXXX, being purchase of will purchase made XXXX result out expect in a phase growth decision Coleman $XX.XX come EH/s a subsequent MicroBT with Road with either option the with with per in initial bases of price enter hash the XXXX and now XXXX This strategic XXXX. an to agreement an following Riot ceiling to online online the terahash. to additional in pushed XX EH/s

from the Rockdale. been During have and received extremely results XXXX, initial with of the pleased at purchase our models a emerging have deployed both miners of majority orders and purpose-built and at model the we air-cooled Corsicana

and operations our we facilities. We have to seen all with operating learned what we have a improve these significant machines, uptime are across improvement in leveraging

efficiency plate Riot's stands per appointments, terahash. recent now joules most the With at XX

at ahead our mines of date, orders for received for schedule. been or new have MicroBT To

approximately have XX,XXX majority received already vast with we As the miners now deployed.

generation efficiency for in improve additional expected received and XXXX. minus As joules deployed, Riot's is per fleet MicroBT terahash to are to XX.X newest total

in and The for based CapEx also reduced be beyond. latest growth $XXX in XXXX end balance million is us forecast. to setting a to next XXXX. our to note spending over of to EH/s. for the $XXX anticipate some of to XX.X rate CapEx Riot's foundation investments We guidance allow of X enables sheet growth that of of important future strength XXXX from growth It quarters XXXX that commit approximately hash will now us million our target growth on will prior the the achieve our spend

million example, CapEx developments XXX-megawatt which is approximately future an provide for we XXXX As Corsicana that sufficient can ensure additional $XX our in of on to substation, will site. power

the in is infrastructure liquidity decisions halving in were post strong deployed well Bitcoin-driven In day allows would XXX% rate we Riot's to long-term more of the a us process make this leading continue to results we mine Maintaining in vision to per than are position be Riot to completing that vision, a future. XXXX, yield prior. into the increase Bitcoin platform. world's achieving positioning hash

lowest to realize In the of industry's objective coming our We of the growing cost advantages one mine towards our also per quarter. working during leverage continue our the over efficiencies vision, at Bitcoin cost to into $XX,XXX is years. and scale

available timely is AI And Over robust assets notable attractive of And continue Riot we staying the on remain and a and has miners to AI hash assets pay energy while benefit we past now There reaching quarters, pipeline long-term active enhance into to both grown future. goal power term, Longer us. HPC opportunities see make Bitcoin HPC the to our sites. a to self-mining access pipeline significantly. trends to EH/s in the in that continue also our few XXXX. evaluate capacity to well power of our rate. companies focused for premium provide shareholders demand greatest of XXX for power sense urgency with continuing access the highly in willing industry for by total to a will of at decisions company monitor

and excited incredibly our and forward success. presentation. has this to our and all you stated about Thank you year, executing on reporting what listening goals we on We are look to for Riot our accomplished to progress

the Operator? call would like questions. open We now for to

Our Colonnese with [Operator from Wainright. the comes first Mike of Instructions] H.C. question line

really over Congratulations on the good rate past quarters, all expansion of couple hash see. the to

you're delta between me, the and you been bit for obviously, rights a But over but on September, rate numbers summer and the going think deployed rate. rate utilization Riot's operating evaluating investors a should hash can energizing big out this for rapidly really I one pointed actively Jason, months. call forward, just the new in And months. here, First recent how there's miners hash appreciate pretty that average maybe, about curtailing

in at we're here, compliant excluding prepared and in focused excellence. safe To of Currently, we related aiming are remarks XX% strategy. utilization super periods talked a rate, So the us, manner operations deployed as we greater that achieving running hash average power achieve operational uptime. about curtailment to is high this means a on of to large-scale than

that touched course, rapid fix, on, an pleased this we we but been we've as seeing. is been have improvements very, with overnight Of very not the Mike,

reporting XXXX was in it right, recent they're liners there, the at previously, pleased growth the the were range believe the this growth So systems I'm we're the rate XX% there, through MXX with with is how work now XX%. the continue combined the continued for very most strong. and month utilization to XX% sorry, month to at in the to on, Rockdale improve we operating hash -- installing utilization at over to we're we're continued touched Corsicana, very where Rockdale going new enter new and ongoing year, end with where that going and of that We

but not average goal utilization to get than is time. greater up an overnight fix, to our So XX%

one great. public next could in here. speak I'm appetite me. market here. what side? your to And the couple organic deals just for But Maybe you're seeing tremendous growth the M&A you next additional and Corsicana for guys have right for over great. Obviously, years private both That's That's of the you now on through opportunities curious, just

Sure.

Chung. over to Jason turn that question me Let

Mike, for question. thanks the

of I opportunities challenging point, to deal I on a the be believe continue of and say, fleets, side the that private private robust very conditions, aging capitulation to general capital lack in among as price both to miners private to upgrade of we on the in private and think to need both side, some the access address alongside to cash but public flow particular. a a comes would it Just particular, driving see having greater I miners. appears

of So first the usually team natural active position opportunities. these. in development of in see the large the very that's exploring and We've to the in exploring all one calls active given very we're bidders corporate we're got a one opportunities our industry,

we time beyond how the we I to very when pursue -- announced think is deals summer. about earlier in when we to be additional one the right disciplined think this overall, continue that

next line the Our comes ROTH. from Darren question of with Aftahi

best of MXX improving anything improved I one, Jason, machine comments new just performance? practice a about doing exclusive guess, the that's it your the utilization? outside machines. from logistical like utilization just Is that Or there First you're is

of number a host these how to on-the-ground utilization. repair are whole we've that this Yes, things implementing infrastructure. tweaks works. making improving Darren, to but with got support. electrical huge organization there's improving projects minor a We're from our we're our continuing our there's cooling We're And been pleased underway that results improve that of implement. we've to the and We're seeing around of course, we're miners, and

operations allowing monitoring a our We up you've our this and metric. We a to to have to put it's play things software and level ramped analytics at lot in and things respond improve We're capability. very now, us address order on here expertise detailed quicker quicker. of

if the but the are of not been getting have that over underway focus So helped. strong. getting tens, right operational part of projects new to on operating excellence, in there XXXX order very the to a course certainly state really miners to XXXX XXX of big That's it,

somebody if guess else will. asking this question, be it. I I'd Got assume And remiss not then

power all to aspirations the megawatts it additional spoken be today, of are portfolio? XXX mean for still exclusively to thinking mining? As you do to Corsicana I Or that's and use Bitcoin it in pertains that have terms as stands other going you

Yes.

capacity. megawatts XXX building we're So of additional

Of course, the that starts substation. with

for our pretty for can multiple -- be to uses. good Bitcoin that for mining. Bitcoin that's use now, plans So use for that energy. are That used to with Right

that's We just that another that's best economics. opportunities are open better shareholders, allocate to capacity in way to for

ago in but these XXXX, some available to weeks could begun preliminary, particularly we've So are interest we've ongoing. discussions capacity, receiving in they're that earlier and capacity several that alluded be

expanding deal as the a for the there's if rate. opportunity we of to that. a But hash right So good to are make is pursue course good relining power, now, going

of your line Fred, mute. Greg Lewis the with line from maybe comes BTIG. on question next Our

to one, on operator? we the move Can next

Our Paul with Golding comes next question Macquarie. from

hash freight the on Congrats growth.

ask to month. couple called And million $XX that that wanted Just into demand you on beginning didn't in the financials? factor it's the then... out that factored Or driven was that maintenance questions the your something credits? substation the by housekeeping of utility response here. a and Is of something One into is question that at

was that sorry you, to -- Paul, I'm interrupt please.

No, was follow-up, it's no, that my unrelated.

So go ahead.

It demand It purely of that planned wasn't our It internal was it. and right a Okay. response handled engineering. action. kind teams was scheduled

I one utilization then versus the third-party capacity you there it infrastructure deals wanted on And How integrated that specifically capacity? that you Is ESS contracts. it. -- ask marginal to of your the government talked think to broadly about are -- How thinking do out you other? is Got holistically? vertically about Metron a subsidiary benefit you ESS the as build more Metron and or on utilized about being

So is fairly small actually of a Riot customer ESS out Metron.

types As et of applications, much you now, building right there's generation interest out centers, other for data can so cetera. equipment the imagine,

customers can work something, the quickly, modifications we're probably with all flexible would they in to they build. it's more take lot is decision they're they our it Metron do when quick supply chain, us third-party because pivoting our jobs ESS is we're have visibility technology to be a too for how all together. queued other ability getting don't pursue make make. up not So very deploying cost have or to family the we much in with valuable that there. And a the tease really us to of reducing changing, than have note give We

quarter, prior can margin industry, working results. this with back higher-margin the this at on worked on of being gross in to slower freed seeing out new this now levels. that are will XXXX. typically going That's contract because capacity this government for available, start contracts Engineering on In we significant division booked and first quarter the third fourth begin great of they quarter engineering and that's So division. is that has shipped get capacity the up towards for track now revenue end manufacturing the But with

specific out the And Kentucky it. in for the as EH/s end. it's key sneak believe just one at of line X.X noted. here could quick Got call adjustment you Anything time driver if I the a one to I

Yes.

So growth all of the remain in plant intact. pipeline Kentucky support

only on just front that is full so can some most of Kentucky sense been we capacity power ensuring pushed nothing around. makes canceled get, growth we're to portfolio us. of The on has possible that in extra the in spend based the touched in what and or portfolio reason So while being with out that, right with the time also moving the at assets, that economics. we're really getting landscape best we order I maximize optimizing that the

So in a this [indiscernible]. short typically matter prioritizing of

next will Research Point question from & Compass come Joe Flynn Our from Trading.

the the the is which could hosting a as counterparties of of items, I that I into the drag SG&A, to provide what like over litigation on the was gross attributed on business? hoping continued to ligation looks quarter. And in you the be details into increases guess you fourth front, more onetime but it status profit continues like spilling that's

Thanks, Yes. Joe.

So I'll start backwards.

are update But still can't any on ongoing. really cases on So I can't litigation. provide comment these litigation. on it the We

We M&A G&A extremely cash have have been speaking XXXX. during we to active in the been

And Bitfarms, with to incurred financials G&A. Bitfarms. have costs, course, million we not of under such engagement so of you related classified in acquisition that resulted see Block mining activities of our million under for that the our the on cost in those M&A And are onetime $X our closing of bucket. in financials, acquisition-related and expenses expensed $X deals closed being as approximately

expenses legacy in the noted, we XXXX. Whinstone had due with elevated litigation. from you acquisition inherited to also hosting This ongoing As is we customers that

the and here that came remove onetime you M&A is important which is a think at run basis, we in on what $XX.X SG&A when our Now quarter, expenses cash million, rate litigation-related for and as is SG&A in And expenses Kentucky acquisition compensation operations $XXX,XXX includes in those a holding costs the with our and of in noting in. guidance. business result line previous this cash

business do on us now, rate the have we They're we're nature. in looking forward relative but an ones in be these to fourth yes, occur right we level. ongoing elevated So expect the The [indiscernible]. temporary quarter. to behind costs to unfortunately run our of having not are litigation and to the operating Unfortunately, to when

to off like regarding we be question. open would And substation. the options back all It taking earlier sounded the XXX-megawatt

Just going or like increased XXX substation could potential HPC with and megawatts even building and started early lead activity. that that if to curious forward you've counterparties if with conversations

the more demand is only optionality HPC capacity more explosion power belief that for is optionality makes AI and Our with valuable. of

that here but be struck to discussions Bitcoin over If I that we've like -- are the to But capacity We're that we'll these see mining. multiple parties. monetize preliminary, this encouraged improvement conclusion, trying the fact they at noted update So certainly ongoing. from earlier, if reaches a can good still interest deal a by least are that's are we seen market. then there's

Our Bill comes from with question Stifel. Papanastasiou next

line, growth you For satisfy to in today? demand in to the ability the how on recent some quarters ESS whether And in growth want is is its you're Curious share I this demand. first this AI from Can to Metron. HPC on Metron ESS touch just able space. quantify scalable color

far are there. the line there for workers of mainly in is out facility point. that I demand the get that the size the of available for interest jobs would And will lot equipment, but of these in type way the times size by the say services, a this to at accept there they delivery facility for of just and manufacturing is equipment on limited

have I opportunity we order you fit to demand. fully And factor capture quantify And that a that tell unfortunately, a don't right basically. -- that available. for I to you, something I growth, demand future, now many now. the we we can want just how get think immediate really for planning and cannot what is. many for increase capacity there limiting increases. line are can the this that forecast Obviously, for in years about for the demand for to right how is equipment robust when of that floor facility I a into have just factory size that So very the on is while lot us they don't and number But can companies there's capacity growth of it's you a in much

looking to business. the would to we're that revenue profile So that enable opportunities us increase increase because at of capacity that

That's one, you Bitfarms, the settlement just is great. attempt active its is how My did thinking your about another for Bitfarms at from And there. today and with second then stake going making management agreement at the understanding Helpful. following settlement on and the preclude agreement that curious the playbook. curious thoughts

Yes, that's correct, Bill.

Bitfarms start I shareholder a engagement as we them Bitfarms, a Bitfarms, than different our of corporate it at number was first And of today, of company much as large with and to this So a changes succeed. believe mean, of governance been want have a We is positive result the foremost, made. clearly year.

corporate We this other have You think that attempts no for and a change could into is entered made Bitfarms are the benefits shareholders all successful. will possibly be now governance be that agreement, to changes some help that settlement there time. even

of will the our position, be So evaluate to what we're best to to capital. we current use believe we're going our to continue respect with determine going and that.

A the such strategic what well of haven't longer-term all be development here. as is the dynamics by factors our market driven any We as decisions as own made development a plans really on as are execution number execution at of final play. Bitfarm's sector as well and and going to strategic this right lot

Our BTIG. next Greg comes from Lewis question with

Hello? Can you hear me?

Great. I hear you.

was potential technical Is to Rockdale I'm build-out were with the expand if the bigger any ERCOT? highlighting them to capacity, filings kind in is few the talk power as make Definitely over you you're those kind about you next of there just for to goes hoping sites possibility -- difficulties to through guess of go terms -- this like, could Okay. years of necessary well. there land curious, and I possibility out clearly, of there. Corsicana. and I the

question, the X but the and things out With place opportunities capacity what what for we've on a basis. learned don't current Thanks get in a relationships really building sites. it's whether These feel Greg. built in we're we've we've built as is Texas, mean pursue everything we additional these out, and also sites in both good huge being advantage on, We basis really the elsewhere greenfield operational to in I Texas, working Texas. or our are near have regular able

work pipeline that peak place immediate longer the and of at the things to like a growth this of ability us One affords is Corsicana term. having

we're gigawatt. all background immediate able have And come or its X meanwhile, the XXXX developing could we're to opportunities up to So in the our either in on or Corsicana, other operations working full projects XXXX, these team year, that future beyond even that.

have with that now. right update So can detail for I other you any don't I

we're optionality us and potential opportunities with and as opportunities doing more power capacity. well. both that And organic M&A We are increase looking always create growth our for to

But like Any straightforward. And around seems just going then it the in more later. that. can delays the kind Kentucky? -- are to -- conservative delays, of be Kentucky Okay. show There's of and you any around to of Super pretty of sounds is any going around kind of context some on of us kind the up course, what transformer we're guidance going with of that give helpful. lead kind the forward Canada kind color maybe

Yes.

pushed of you So getting in is opportunity first pieces biggest economics. growth get and Greg. that The of capacity order spend reason intact The these -- remain to reason I'll main to that that, growth the an to also is time out all lines Kentucky. in on some the give because that the power out pipelines X off, color possible these best time we're helping there's maximize were extra us well,

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comes Knoblauch Brett from next Our Fitzgerald. with Cantor question

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from Our Grondahl comes next Markets. with Northland question Capital Mike

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Beaden Brian with from comes question next Needham. Our

side. of couple questions a from Just our

follow-up So just the a last to couple. some of

Just into HPC? Bitcoin a the get kind customer coming see right of could for it of And separately, the kind electrical time dynamic what's cycle what X? between need simply getting on Is long would lines dig you going. on you those some to to or if delays, guys the of for delays the items lead time the line then equipment latest just time around,

AI what will in see the HPC. So to question, first need we your

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Lucas Riley. from B. with comes question Pipes next Our

Jason, you've would picture, -- at of you are you smaller at bit elephant you bolt-ons does and for of little few you what active great Are bigger where that. feel M&A focus mentioned wonder that at? be hunting? I today a sort a a looking opportunities M&A. And Are kind rank better times been looking have this looking to

Lucas. Thanks,

us. a the is the to it say not decision other one the team. of or development the invest in building long for out corporate We company in ago choice made would I So

is and company operations pipeline one on in us. the part while out the building of focused of So organic front

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Thanks, Jason. Lucas, comments a couple of that to question.

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quick this theme. A on follow-up

do HPC competing the BXC AI And you AI when screen focused yourself for secondly, find in? Or with are leading you more factor hyperscalers, or acquisitions First, on you really HPC organizations does not? side?

Lucas. that take I'll

AI that of for HPC. with competition advantage is much AI HPC But for a assets. than universe work is assets is Bitcoin there our mining that larger the that So of work some assets on companies

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Our from of the Smith Reggie comes next with line question JPMorgan.

allocation you of hash different But the Bitcoin just curious price decisions? weighs and your guys. the think to proceeds to competitors things to I Most cited and kind like larger that. been and they just obviously, and comments a mine buy land I hit. your decision about have things like build context directly and greenfield was that whether of base the price within you of and guess that recently to curious, asset pausing one sites of I about how buy capital of made company development that. kind Bitcoin hash of kind base into was using has

Thanks, Yes. Reggie.

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at and sites well, Austin. and of not lot Dallas HPC curious, a the more If come and -- look sense. asset know with could just makes of in that I actually or an key partners it a located discussing in you or but nauseam potential But That I to scale I as in, talked I at sites so was your that. them was sneak up guys close I tonight. curious whether on HPC X feature have of your being has like one about as discussing obviously

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advantage. question, major that a an Those Yes, locations is the good metropolitans is Reggie. near

AI operate getting mining It an Bitcoin takes whether if off, it's centers. these or to people for First HPC it's army data of people. sites large

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have -- attractive be an metropolitans been seem major So to quality.

I'd to to the question-and-answer closing remarks. session. concludes call That for back McPherson turn today's like Phil

available developments, Platforms on third call. joining We'll We'd to year operator. quarter questions. for thank updating year-end. everybody early Thank future look for you, for you Thank you. We your earnings always and see the we're like you next their to Riot forward 'XX on

concludes today's for This Thank call. conference participating. you

disconnect. now may You