Marathon Digital (MARA) 1 Aug 242024 Q2 Earnings call transcript

Good day, ladies and gentlemen. Welcome to MARA Second Quarter 2024 Earnings Webcast and Conference Call. I would now like to turn the call over to your host, Robert Samuels, Vice President of Investor Relations. Please go ahead.

Thank you, Darryl. to Quarter welcome Earnings and afternoon, MARA's XXXX Second Call. Good for joining you us Thank today. today's our Officer, call Executive on me With are Thiel; our Officer, Chairman and Chief Khan. Financial Salman Fred Chief and the during made laws. be statements federal call Certain meaning statements the this of considered may forward-looking within securities

of and by These and and such In financial our plan, words on particular, plans performance any the statements position, these estimate, liquidity are may, forward-looking not variations. reliance our about place our statements statements. to are similar Investors future identified often our use growth forward-looking believe, undue design, anticipate, future performance, growth or as cautioned expressions opportunities statements. are intend, would project,

uncertainties. All forward-looking on risks statements made today's call and involve

update some to except law. elect statements have forward-looking we future, may applicable point the extent current we intention doing at no required by While to of in the so, these

materially of our the outcomes and may Our including, periodic discussed annual in result other a the in heading to, differ actual under Form on with report we these recent and reports any as SEC. factors the from file Risk results various not that those limited Factors statements included most may but XX-K factors, forward-looking

recurring the GAAP for non-GAAP reconciliation the not be these reflect financial full United these MARA Finally, of we operations. indicators including refer prepared margin. not measures our directly the measures that may core financial accounting adjusted items operating of call, measures our in accepted operations that total please certain were exclude of EBITDA to financial a non-GAAP believes and comparable accordance we that to States, today's earnings Please to are note in its principles not refer on and they will most certain measures. financial do because non-GAAP with performance release important indicative generally believe

our of call their through we As call Fred will and on usual, the After from some that things Fred? with over to the with questions going a I'm kick before analysts. from way, Fred today's to to remarks investors more Q&A Salman. And comments, transferring we'll covering with begin off. return the to popular go prepared large

joining and our offer grid to going thank the to a second to launched developing our provide of on-site of and biomass ENERGY. district you, energy assets by key quarter and operations, asset Thank district an efficient energy hash reducing compute leveraging the I'm of boost launched strategic launch our digital diversify data In celebrated everybody, while local and into wood acquisition some the pilot the our a our economic completed for initiatives. We carbon to for successful by the alternative achievements government you, increased QX, highlight partnership Kenya us. several significant results Today, aimed of at City Rob, that Finds to the discuss closing successful business teams. innovative we in newly rate of XXXX Garden Texas, and with target exahash. burning our XX center underutilized and . Began source heat directly converting heating fund mining avoidance growth. revenues and emissions into pallet further development clean through of project low-cost Kaspa MARA's heating and electrical Finland, in insights

XX far authority Organized in hash. and pushing XX,XXX of efficiency new as of exahash, miners jewels capacity, tera growth. responsibility XX.X per MARA Continued into business for strategic with with the all-time energy through deployment organization hash reaching as down possible to the and the rate focus diversification increase installed teams an on of

the compute a vision speedier that transformation. growth industry sustainable digital leverages our demonstrate transform to energy accomplishments and enable These innovation, energy long-term asset dedication and to a

become to to discussed lay call, assets and for last a globally leverages compute future. As to that our beginning sustainable a are we build inclusive foundation company more during diversified I MARA the digital in

is the -- bolster sharpen second accountability as our we speed the opportunities, and recognized accelerate sorry, of focus, our to we quarter, and reorganized structure internal the business agility strategic align our a we During better growth streamlined consisting now business Beginning utility-scale these as specialized going well technology harvesting X teams, and energy MARA my support remarks scale. organization around of specialties. organizations. quarter, I'm this as organize mining, to

mining. stability today, utility known compute large-scale begin support MARA scale Let's specialty in primarily grid and for focused the energy on projects viability enhancing of digital energy transition. of at at with asset is scale The renewable providing the

unexpected Digital. failures Increased effort our production our post at operated issues is impacted the transformer rate April network were That said, global in quarter difficulty maintenance line Ellendale remediated the bitcoin recovery transmission was Ellendale in complete. in equipment site halving mitigated and and hash During and quarter, hash and the rate Applied event. by second by end result

operational Furthermore, we and to grew XX our of an over reached overall hash miners rate fleet operational by approximately XX% exahash. XXX,XXX

as at XX.X per hash we will expect -- SXX will remainder year efficiency the stands fleet deals additional deploy of and current pros Our tera we fully. through the this this continue and improve emerging

electrical by Garden with near MARA to improved site Turning by now exits. of since the upgrades. hash taking In our acquired we due site, almost customer newly and City, In completion hash and The airflow container almost Karney, to rate completed over XX% rate Texas, hosted enhancements XX% Miners. operates improved Nebraska, our sites. upgrades and entirely

inherited Grandbery, maintained poorly further recapture employee a site, control wall. took outages that we months, the outages progress infrastructure, Lastly, the few ] has team at HUD low will a fixing morale. earlier heat X [ to our site with and and resolving agricultural we from electrical year, made construction a date. that just which began to plans electrical significant In later of when numerous enhance was flawed In making we led infrastructure discuss sound we a this

the should of year-end. the merchant phase have with which We seen employee upgrade a infrastructure satisfaction. of of in by installation also single notable containers, to the XX% up uptick continues site Work make

good with made all transitioning in hosted customers of completing also transitions have progress QX. expectation on an We

of increased to hash. efficiency purposely miners and resulting upgrades deploying Moving We to XX mitigate clocking issues while pulteTransformers per able sites. maintaining By from software software tera resulting hash XX XX% installed our machines, efficiency hosted per deployed deals uptime. under we high been to tera third-party from in deals have upgrades increasing and

power own operate the assets approximately and currently We digital XX% of X.X gigawatts of portfolio compute. our of diversified in

the our owned continue XX be is delivering as lead continue goal amongst on sites will miners We focused remain percentage this to making to time occurs. exahash our We in install a on lower and energize cost material over cost intention to and plan. see greater the expect and our Longer term, of operated and savings industry. operators according to

portfolio our computing, is Kaspa asset that As a of we digital mining we proof-of-work digital assets. look MARA diversify announced to

fully We and continue capacity diversification. ] in benefits at that our currently mine hotel market. to global covering X% margin acquiring [ mine used currently G&A XX% the we which XX we margins, brings open strategy. or energy highly plus from those Kaspa only hash in recent consume bitcoin roughly me once Caspowill to is accretive everything the Furthermore, -- our megawatts. deployed, be we dollars highlighting change the X% expect further for rate of of the of can This The as

should corporations in bitcoin been a We have asset strategic for be treasury sovereign. long that advocating

million of $XXX current the purchased MARA XXXX, of hotel. our bitcoin, early which basis formed In

bitcoin market selling the since operating late operations increased As expenses. exemplified from launch have in bitcoin. bitcoin to institutional Market ETFs 'XX, successful have conditions regulatory and sovereign changed by in MARA pressures began of conditions investments and cover as improved eased

presidential candidates support Our asset signaling recent announcement for from recent and statements Conference. was Senator several National strategic as at a opportune, bitcoin given the Lummus reserve

dips our into point should a and Sedrin such transformation strategic to market corporations and we energy [indiscernible] desk order takes waste advantage support of Its clean opportunistically and digital energy in-house trading from the asset make as purchases of We value. time a our of energy stranded in energy underutilized advocate harvesting. continue as to harmful sources mission hold strongly will time that to to environmentally purchase bitcoin the open [ converting $XXX by recent ] assets, economic is of bitcoin. energy in million of market as

waste eliminate with redundant can and associated we Additionally, generating heat. expense

the the savings and and June, a and uptime a past computing. launch use. XX,XXX of X town X-megawatt energy sorry, a days I'm we of pilot residents asset required. of pilot valuable X.X X.X more -- July. sustainable location. ] we've total a cost In announced We project approach another and -- to over to report home [ megawatts approximately bitcoin would town pleased All that heating XX for capacity warm XX% at our winter to use energy start over the pilot before maintained a have new season the what each mined current than to Leading community heat Finland digital an and in increase to while individually to using in Les of a by June generating energy plan additional at the X-megawatt

scale over part of capacity of aims of unlike stranded energy our This finished electricity homes. or we an energy harvesting strategy more to mine price where typically utilizing or rid future. cost costs to approach that megawatts Finland reach unlocking approximately at resources energy utility projects recycled year-end, typically is power goal X our By aspect our time, reduce lack towards energy of that which market expect from X,XXX X in mining subsidized distinctive over or total in equivalent harvesting benefit is cost in our One is the purchased from utilities energy by interconnect. achieving substantially

we sites. our opportunities joint energy returns. a projects provides investors that collaborate harvesting harvesting see with to in than grow, Energy Mara partners have make potential higher longer and to lives generation global positive on business with landscape. the mining bitcoin As traditional expect potential impact energy for venture energy to appealing continues infrastructure Resulting and components

center infrastructure is year, customers working business. advanced technologies are asset technology transform with has data builders and digital evaluations potential on from lots this best-in-class PIC AI our for and launch and and its our optimization year. to OEMs, enable benefit this Turning attention, technology X and that positive orders later operators received and strategies. delivery end-user earlier compute partners we reseller The cooling Since of digital on to focus power and creating actively

of our deploying other us to past uptime begun or in may operate We increase technology issues operations curtailing have improve already and have immersion air-cooled and will to that The our our our the site. allow development due weather-related stability own impacted of without using our heat sites. technology the and to

time, our immersion, and overclock to us converted our and expect and sites be the our to firmware, ease greater Together we predominantly also clock immersion. sites under based be new help will to with on build majority will Over of immersion effect. with

load. AI recently version of designed infants As well be to specifically introduced or mining balance We provide perfect to as that the bitcoin is use complement to flexible AI. the tank a either for

As to change. can or a if not and data you mining to need HPC, you run the center move means operator, this when to infrastructure bitcoin want does that

We allows are AI since have concept for optimistic about this like OEMs they ready infrastructure to on the customers with it deploy side, and we're the AI. having conversations as it their

the we project, term. long-term companies a and While expect expect bitcoin build utilizing emerging the grow in to continue revenues sales In is see to as it Providing incrementally their near months. to update facilities to mining technologies. to infrastructure the XX to with space, next out to and scale mine XX in we technology begin data centers

our long-term our nonutility-scale progress. in over these stated, results will of are detail. originate our time, showing that turn Salman, going revenues take discuss As will objective more to I'm to new Achieving is goal mining. already to the Salman? for XX% call who this ventures previously from now

Thank you, Fred.

end. transformer As were to mentioned, where trade started on Digital facility hash is we hosted now subsequently climb quarter. up back The Allendale started the improve post by to quarter resolved track. back Applied issues as are at fully Fred our Ellendale during and

deployment quarter, bitcoin having in network our to production global miners impacted lower increased the April's of rate During increased due results. and despite and hash event resulting difficulty capacity, higher a

per unfavorable the having the in to in assets to diluted decrease net production market quarter. of share Let's due and of or million dig digital in loss $XXX bitcoin into the we reported Due value fair loss details. a $X.XX a April, event

price being price on digital quarter resulted value per second last bitcoin of a quarter lower the price in bitcoin XX, volatility due bitcoin but $XXX of loss of roughly year, or on versus to quarter on of on has $X.XX share this digital the after and of we a The of a X% price deteriorated in the booking in our million XXXX, the the XXXX, one recovered expect assets. on of loss year. loss or bitcoin XXXX, fair a XXXX. assets balance of This June than versus average in largest loss And The by XX, significant last corporate March during XX, compares this or of end quarter the second $X higher of resulting America day the to price was gain market sheet. net the quarter our in of July loss as to temporary bitcoin result quarter The of same last million diluted holdings

are if we million loss our our almost paper $XXX million the up combine I year-to-date. quarter, roughly the $XXX want to first paper still gain out quarter, million almost point that $XXX second in we in with

strategy, our sheet, expect of to our impact bitcoin number Hoddle As the extent. volatility price the we a bitcoin in continue larger announced larger to earnings we hold on recently a balance to

a million to For XXXX. price large hotel $XX result will $XXX earnings, ] our $XXX second position. million in to million impact quarter in of a change ] increased [ in from $XX,XXX XX% [ our the purely in bitcoin over example, due Revenue

million of price bitcoin We quarter increase The price of $XX this prior bitcoin a compared bitcoin during $XX period. higher the produced the quarter day than increase due lower average period. average production. each in XX.X the the million partially bitcoin, bitcoin average primarily XX.X driven year revenue by of offset to each to impact an in day, XXX% year prior the was in With mine by

offset XXX the sites in bitcoin to operated The X impact last quarter and integrated transmission the of line rate. successfully the rate of equipment company period, We in second X completely failures XX, the and operational to year an primarily having prior megawatts increased compared as global months. improvement issues due hash were in XXXX, by June average hash Subsequent partially at these maintenance, less operational unexpected resolved. XXX sites to third-party produced continued

from of result The ago. whose temporarily a was customers. year present are hosted the revenues $X a providing was hosting acquisitions, generated to we we As existing which services million, not value

off sites revenue use with growth. the on we and space this expect current to for transition as tenants our the quarters in work that We taper their own of coming plans

Our was mining unexpected existing the million costs transmission from the offsetting which and rigs driven $XX compared company's energy by hosting that hosting and or and resulted year. and new costs. increased hosting compared $XX downtime The was reduced facilities, the $XX million and deployment which approximately XX% to costs increase increase line impact in energy the to Partially in and failure rate energy of the were million prior of year primarily last growth energization maintenance, the equipment in period. hash

has to XXXX per in X% day petahash in quarters. QX sequential improved of in quarter per reflects $XX.X cost per Which non-GAAP petahash petahash $XX the a quarter XXXX. cost per of improvement Our day revenue of in the depreciation petahash XXXX. in of per QX XX% second XXXX without $XX per of Sequentially per from day second from day this $XX.X per to

our announced improve realized cost production we sites reenergized per a larger as we spread XX fixed go, at synergies we hosted acquisitions, As gear from cost third-party petahash times. our to towards recently expect the exahash our our day capacity per and at over

The $XX a deploying last million, was was since and result million prior the the quarter Depreciation $XX additional same change amortization increase the mining in of year. year. rigs from predominantly

period exahash our from grew XX.X hash rate year. to same energized from XX.X Here, last exahash the

margin, to last average change higher the this excluding same quarter million increased bitcoin and was and $XX year. compared operational efficiency. related million depreciation The amortization total non-GAAP predominantly prices quarter Our in $XX was to

million were with expenses This business. the third-party and of and excluding professional period. General and the to including $XX expenses compensation, increase million, acquisitions, prior compared in was other in with expenses, administrative stock-based associated $XX equipment and the increasing facility due business and benefits, the costs in year payroll fees, growth scale primarily

at at count year last grew of QX to of year. XX head QX from this employees the XXX Our end end employees

the earlier, fair growth X strategic in value we EBITDA structured a of company bitcoin initiatives mentioned diversified have at Primarily and to continue having, scale. of an from distinct expect business As as teams, unfavorable digital funding $XX million we to we we due an compared $XX of assets lower gain year reported the adjusted production million the prior to loss in Fred period.

treasury announced Last gain retain a bitcoin the remainder Part these go partially has in or and assets. digital we include loss on involved week, then of As the sheet. shift strategy policy huddle and numbers full selling operating all a adopted approach our treasury fair a to our value forward. our bitcoin handling balance reminder, cover management expenses significant on to

Unrestricted fair XX, ago. June holdings $XXX sheet. into $X.X a balance approximately million up XXXX. bitcoin June our XX, held our value hold on of bitcoin. bitcoin. the cash best world's long-term bitcoin bitcoin is increased In confidence addition, asset. adoption we $XXX year, strategic quarter and of to of bitcoin from and sheet. $XXX strategy our our holdings we cash on we XX,XXX of approximately value $X.X as was and position, reflects this a it XX,XXX make more our Also this purchased equivalents In bitcoin over the year purchases cash of bitcoin periodically our X% Subsequent open cash at market plan XX,XXX reserve billion the with balance worth that from balance bitcoin belief currently to The in Combined to billion treasury XX,XXX of QX and totaled we end, million, of million of Digging and

hosting expenses QX, cash These of including were and proceeds energy We operating other operating proceeds $XX and G&A. revenues cost to utilized fund sold expenses, million. X,XXX cash bitcoin of for realizing during

ended purchased XX, months announced X million the bitcoin XXXX, of to of [indiscernible] bitcoin our position. worth and million $XXX subsequently June worth During $XX adding we purchases

from equity for quarter, million costs, to sales, bitcoin acquisition we of $XXX intend which purposes. During at-the-market infrastructure raised general the use other corporate and purchases, miners we primarily operating

will market due periodic expect to through intend generally activities to increase add strategy. We future bitcoin our bitcoin primarily our holdings open [indiscernible] our and production holdings We our purchases. to

compute mentioned to digital Fred company asset the its Kaspa recently earlier, As introduced portfolio.

to of to Kaspa As its through XX primarily million The company holdings XX, activities. on we held our approximately add Kaspa balance June sheet. XXXX, coins its production intends

now, which in helps produce less to our significantly in us for And terms, pay of and larger Kaspa update. U.S. our we a cost As sheet. of balance completes my dollar hold to incur bitcoin expenses allows amount that

it I'll turn our Fred, back over about more future talk to plans. Fred? who will now

Bitcoin Thanks, that mining is speedier energy Salman. energy digital on peers, end MARA, executing to focused and a bitcoin leverages our a Unlike rather mining vehicle very is long-term destination. transformation. than a transform asset the vision the compute enable industry MARA

the the our AI been Over intersection past has years, data of at mining and industry. the centers few bitcoin of forefront

While model have business ], an operated our their parts several course. their HBC AI pivot stay we competitors [ to the chosen to to of of have intentions announced hosting

However, and and don't take entry that by. approach to opportunities mean we're the constantly evaluating right idly We're for looking point. sitting

write on at networks, how et center AI buy phone phone your inference be of cetera. the to by you to far be oilfields, machine-to-machine or human LLM such be the cell machine, edge widget as of at AI communications AI when of volume bulk operated use edge will not at vehicle-to-vehicle AI. will the case base in While telecom the the predominant majority The you're about best planes traffic The best for predominant where base find in telecoms investments the to application form the stations, in jet speech. to the inference industry, going query so will of data

large electrical is not varies. inference inference flexible similar on predominantly and compute and grid. operating consume consistent as vary a with the agreements, as it of demand it's used the the grid demand load to throughout power mining curtail are challenge AI, day. they as need The an amount its can out for It that inference to be the be of dissimilar load, how of due uneven a sites does varies on that energy to to scalable demand AI day. load energy. balancer Typically, load varies with Bitcoin purchase the to throughout patterns AI have energy The these compute compute. Which the connect smooth the use

which that of energy During the consistent We we clock under is can to is asset and energy redirected effective believe where bitcoin cost technology AI utilizing utilities. efficient preferred by digital when demand excess AI miners with energy more activity, low to highly mining compute, be pattern a periods the significantly synchronicity especially our synergistic maintain co-locating helping AI in at side. can and more overclock perfect our with consumption and

just of one of exploring. is we're This example currently opportunities types the

see won't compute a GPUs for and purchasing directly You us customer.

Whichever go and hosting. cycle remains a in we is early be greenfield big with As already it and to the operators us the still sites, we we offer opportunity where we placing do believe AI center for or bets. down, center with choose they do we concerns high data and build codevelop do us. overbuilding are to the There path may a the might we develop data M&A priority overinvesting. the mining AI a to site too

go additional or power, of even a power greenfield dedicated to competitor. capacity, acquiring long focus We a have a partially which pipeline means power developed

Our us is great energy professionals corporate opportunities execute seasoned a team development to building former on. M&A of for pipeline of

transaction to transaction. of a or do do the prepared a for not are just headlines sake grabbing to We

look at cost have set done on megawatt we've per the rather basis. you If low we bar that our the historically, transactions

trigger the one. the do but these of will only opportunities on right presented us, work, As we to types are we will our pull

proud this the In closing, our quarter. team performed way of I'm

We were our in out the of today, Scott by tech year-end energy He companies companies. in a And Galloway podcast recent most sight. valuable fan and of most firms I'm Professor pointed the valuable operational are goal world challenges, is companies. XXXX, we our release the that me. believe are and exahash in his a past struck XX

And the of Moving it's going right of back argues future, sit that, to for be it. to turn the and he and to compute. This is Rob with want it middle I'll the forward, power Q&A. we marriage in

At Fred. through of most popular We'll the we commence start some this answering today's submitted Q&A Q&A questions going to Thanks, investors platform. our call. by the time, section by are of

The first about Fred, asks, John P. little miners? question currently are want of to do bit comes one? and investment using from you can who talk you take in that Auradigm, your a any their you

Sure.

getting So [ very are currently. competitor believe we've In disclosed miner who and a this in the lot than begin positive shipments micro the And will industry. the and XX-Q orders year machines and best miners machines. Nashville, the and the it a payments half of X-nanometer amongst performance demonstrating is to forward. miners, evaluating into we they from And to Auradigm which the machines were Auradigm towards better the X-nanometer feedback and back for number strong best a due year in orders we choice ] believe of Bitman potentially Auradigm BT to of very the are of that its going option next

Great.

comes do you that? with of plan mine XXX% fund do [ question take of bitcoin, next you to ] who want Our continuing from asks, announcement the operations. Salman, strategy hotel to your how E&M,

had full a we this Marathon. that Look, strategy $XXX that worth until for [indiscernible] year. not and EM, Sure. has of Thank MARA bought million you, new has last to in bitcoin question. asking change XXXX is

MARA. back not this to is strategy, new to So the certainly

On cash of have talked team been that about on we've but Now we and business plan fund we how in the of year. sheet, our this margins. many in working we the balance MARA to on during top capital have diligently access remarks, of to initiatives has prepared the it terms that,

And current earlier that high to examples very the mind, that is Fred Kaspa, operations. to bitcoin margin come some of example, our compared for mentioned

And technology in that kind of launched for those the here move that in that, next into businesses we've addition in from us we as initiatives, to year quarters. additional earlier cash this result flows -- few will the

Salman. Thanks,

begin last asks, -- we A,who get earnings? Our guys color can great they to number some have want question from David you of will you a to that? Fred, and contribute ongoing comes revenue when more to initiatives really when on expect take to Salman,

take can I that. Sure.

to technology in listen, potential. our developing you synergies of business not are at where business, we're And is do. can at Harvesting, if you the businesses look begin focused together scale have on So have low businesses effectively utility resilient grid Energy bitcoin that long-term that buying very mine majority growth the you're off very miners that what a of electricity the cost as with

very combination energy things in businesses. residential active happen such that as to going those related storage, thing generation, going a playing of to we solar, solar, other we're . a lot believe of over bitcoin energy with we of think time, commercial et is cetera, going role see into is be to a The what mining you're lot to is related to movement a technologies

perspective the asset feel internationally, diversified why a longer here success term of key you're diversified we but not we're So diversifying geographically, also digital case a which just use is of to the compute. is where business from

balancing grid, but a for to is means earlier, we a also for bitcoin mining bitcoin is what We're to an offtake heat end. where and we business, our other very excited there. just about not think, technology said it's uses mine it's And simply as we're to So will telecoms to we to a the but lot around technology not and around able give to mining just good also provide industries shine. of think in players other also technology where it business, very AI benefits, and is but other going that going us, to be definitely doing

about So that. we're very excited

and to you. really we're to operator the to of open we questions I our to of now going interest analysts. covering . the time, up In appreciate to from our the Q&A. think Again, back this going wrap back to interest. Fred. Thanks, line call the the I'm Darryl, the turn section questions

[Operator Instructions] from JPMorgan. of questions Our line the with come first Reggie Smith

explain Thanks technical, get guess, quarters. And site is, for can And that, want a trying really I about . about maybe what get -- explaining wrong could I the issues? the what to question. the that I drove you at I it I'm what better to Operational I hoping those at last exactly guess I just how you've but guess another repaired. too don't understand was to little either was site. or went want that what issues likelihood again happen talked X just bit

Sure.

by at So to issues that look where if at operate the transformer been had -- long supplied predominantly operated spec term. the vendor the over were operated the site you did have when which you by Digital not Ellendale were transformers they Applied

failures. you And started to so see

And transmission folks this replacements, of a that also back modifying outside again just the that There wouldn't job but into as they ability so the put the of not hosting so be -- issues, which issue as transformer did to line their Digital electrical Applied utility. heroic by could service have they such also sourcing were control is to maintenance partners or ability that's control again. some that spent

third-party miners we happen That's it one about to sites the all make talked these we of so fact purposely what transformers. under looking this. the issues types reasons to risk sure our could wouldn't So do at wouldn't at these other remarks, that the we of hosted we why of run see that clocking sites the in of became were again. could strain started we Once prepared of And issues, some we our that happen. aware

operate. don't which these again, we and So own sites are

working place we hosting But sure closely the that's the again. we have potential make this to control there. happen partners for over very strategies with little so in been we've And the to to mitigate put infrastructure

know HPC I days. I appreciate on And -- your it's Understood. I early was thinking. curious of the and and kind strategy color

You follow of mining evaluate how I -- some of edge. different talked of economics you value type sense could do about edge my maybe cases use work. or -- the you a you of away I some, at what guess, the that have the guess on basis earn versus today you work what that Do doing question?

Yes.

edge. going said, AI be we of we're operator again, So as the operating inference the at to not the

of would, the the the their If equipment, NVIDIA's generations industry power which at technology over you map they're bitcoin transitions months, look if next XX and throughput, the in just technology benign. look X in see you makes that road quadrupling fairly you'll for

technology, said, it centers, in And for people the for we be a of use our look don't business. of this you at a go our technology, cooling you being inference of in is these into sheer areas. specifically look to amount if hugely that at look want infrastructure going to more do edge. want designed the CapEx-intensive at you is in to data provider especially spending So definitely That And immersion these business. all is inference we if infrastructure what be

business is bundled AI. sell It is immersion-based operating building that to business where ideal in to feel best play us market are the that infrastructure for we're future an opportunities them. to Bitcoin I They area. around that's way the people with should to and to that cooling include think partner at play believe to And going immersion But the real that just want miners GPU, and they for in don't And of cetera. are solutions us infrastructure. of really vendor AI containerized We marketplace. a hosting technology who doing there if really be going is they build interesting be be the very et can we're in in to. the the to that that edge,

electrical Bitcoin in and the running load you AI a variances at synergy Now data of data there. centers AI look mining the there's scale, inference bitcoin when and with believe larger the mining of center. great synergy perfect we inference between Because

with data don't But load to own want the because are spend And look the the we so bitcoin operators technology that fairly partner cycle make spend don't in the going the CapEx here, again, of to we the industry be AI. on mining in so small. the is to early that. want compute center We industry operator but will CapEx we in

a for bitcoin center of mining data megawatt. $XX million A $X looking million space, today. costs at megawatt over in And you're the

being from you you can believe industry could partner where it's can people benefit infrastructure it. in you you fast industry, the and an the to leaders to with see be infrastructure the follower can exactly who provider, and and it's an provider learn and So there where be we are a by an

Our next from Tyler questions the BTIG. of with come DiMatteo line

beyond rationale you, speed the goes I I resources, on deploying is some follow-up the How what personnel wondering, there? following breaking be And color business I'm the the X think it my do the part guess put units? then how I'm about your general the here also of is among I'm think Any you capital various that do curious. remarks various capital equation, amongst I'm guess though, what have that what units. curious, is the you for in units Fred, flexible out. the X the other and in streamlining being units? whether about you question or and the deploying decision for agility. among that into notes prepared -- mind and

Sure.

that's familiar way you're banks today. So most operate because matrix with the investment a organization

different And things. teams we're have notice You do talking our remarks, team. in you'll about that business

and business business the are are that there the to actually delivering the that their teams on we're that groups are support specialists functions organizations, in purposes. up communications, the -- the projects. are businesses go the able execute of in that various and business transactions centralized et So winning affecting IT, HR, these are The out the divided out there support cetera, execute finance,

specialized to organization. people have it's you benefit do have a have at that the business. So to special able things be units, from goal specialty rather The infrastructure but support redundant traditional being football is to It's look that's team, matrix not -- or how a redundant specialties we like very teams. able

very to a very Utility mining operate. easy well is understood, business. scale

teams doing swap O&M. have You

development, business have doing acquisition. You

energy case You running of actual pilots they have and grow. one-off running operations of folks In they them the then harvesting, start and sites. projects. are lot a the as And NOx

And so you do have to are have these and doing teams specialized project those. that

that you specialized to of a the knowledge. benefit it would be quickly. traditional organization, you it importantly, more wouldn't the very And do you siloed do If able difficult lose be would to in try

able to to these a do then From we're sites. we're so do it, And CapEx for can going example, pilot, a a out test, and move very we scale the it. for an co-investors is becomes it that on opportunity harvesting And the overall where your bring a need perspective, from asset. in specific energy deploying the energy how we have in interesting you to side, figure we quickly do We CapEx perspective. Marathon project generation on lowers

lot other a energy benefit The actual cost that is the projects, have of electricity is you of subsidized. the harvesting

a an on capital -- investment invested return So or model evaluating based model, on projects we are constantly ROIC capital. IRR

scale of you businesses we going or for which the a a of efficiency, and get becoming side site mines more energy. of power? cost tend right? value by the scale operational say a world, amount And different. operating investing you being energy, all heat finance in you mining you can about business energy energy to where attractive nontraditional is utility the for get why recipient essentially mining do than to ROIC amount mining And dealing the at bringing that's you're the of we the electricity because operate And bank do so with uptime the and consumption scale look businesses. you with provide at utility the the insignificant of of projects paid either waste these we're Those more as by traditional creating sites. it's you're look for some over utility side, reuse energy traditional how and starts sort cost time diversifying is be the about bitcoin. is in to cost on look third-party harvesting maximum the lowest you minor X partners CapEx all so how do the the In using when How ability How the mine the means at lowest it's side very which in of X the

technology side, and which end users partners channel services you're OEMs maintenance we're tied and O&M with eventually working to providing essentially and ongoing business a will revenues projects. at fees looking large then projects, On you're where technology, managed have also large for the recurring

teams invested capital as with great invested we a in talented and in our we it But type the separate in for just same Silicon like property intellectual leveraged that when Aradigm, So start-up business. company venture a Valley. we're example, we way of where view very together that we from again,

You'll invest we and we diversify as things see to business. the as in us continue build to kind that continue of like go

Pipes Our of from Securities. come line next the B. with questions Riley Lucas

to My Thank into out direct I much, whatever When I first question it, cash afternoon, the shake on back coin. want you Good per kind is of operator. may call around so everyone. side. cost, cost, cost $XX,XXX you

excludes reductions and as other comment And number, where where wondered could specific Do things. on could noncash more pluses broadly, macro-wise, it around if some that of then a be bit some So have I more you there's the could DNA such additional out cost in see you there first, might an if squeeze some think that. targets unit business? maybe environment that volatility. you obviously, items you minuses and cost about

Yes.

to try Let that question. answer me

noncash first The you're cash certain right. component includes it all, it, that's per So the coin, Lucas, and cost of way to viewing it.

way a and cost So this run a is mining better associated is the our viewing this a way G&A business representation we is day. we we better -- cost is matrix revenue. is cost of per hash way included our And cash The with deploying, better in and so also of and the that more from petahash that business, view the costs mining. structure which a KPI the we're perspective and that the is of effective. believe

that standpoint, target forward for as set ourselves. hash we energized that from So we perspective, as from and exahash it the head you we deploy a towards view more if we going XX

over expect of across to be a systematically the that. cost spread as to a the result a cost time, And period expect decline exahash we larger fixed of available. capacity We

as little and and have acquisitions, operating they certain to Fred QX are it reflected our and costs QX both. Secondly, to is the cost of about the assets some that previously what were we've there that that in structure back cost alluded got major them how the money, that quality to in bringing some maintenance in now. the our and things are legal in of bit we the we repairs way costs X managed remarks closed one-off is a -- our managing understand some We and requires additional and standard costs prepared versus

have disappear. to The of costs also one-off is other that we expect over some there -- we legal time thing a period in

last X some little a additional quarters, one-off on in G&A higher So the we've that at experienced least side. driving bit is the our cost

revenues, Now than about which in Kaspa, bitcoin costs we think those pilot margin business, Kaspa to is expect to Fred we But the then down increasing phase previously, the mining, to time. business driving less standpoint. current is more bring our the X% have from as materiality of harvest -- that introduced as than business not when our our margin also our the see you and only energy majority but kind business also And of of mainstream of capacity. our alluded a we produce our from businesses squeezing a with energy XX% passage

that hopefully, the So answers question.

I bit appreciate higher a is both that very much. second question My you. for of level

produced Bitcoin about of much share? maximizing measure bitcoin share Is it goal an is you some have the expenses most have is to some to held we per ROIC dollar it treasury? then that's U.S. perspective. broadly, -- Or more you pay important. And ultimately per you Thank obviously, the for strategy, really in just here maximize still the absolute dollar your number so Hoddle the bitcoin electricity, those think you. U.S. With what should liquidating salaries, bills,

Yes.

have have. fairly So a to not ago. we strategy again, strategy exclusively We to us. the recently, used as for Bitcoin new years purchases, which we is, announced X intend

So intend stage presidential sell this and conditions here. at Macroeconomic what's to geological the the we situation foreseeable and point the don't elections future. this for

discussed. the publicly based price, the in supply based that bitcoin We the space projections projected be was expect which tailwinds on and on to see we lots and and demand going of up already this

big So a for this selling bitcoin -- historically, point for bitcoin will our is strategy were stop our and midpoint that of in selling portion are strategy, harder standpoint, going operating operating of expenses. from we're expenses. bitcoin, and we produced some With our minor, pay haggling to paying yes, we we back strategy to for change original or a and a portion we

we shareholder perspective, does That capital what -- asset see have we perspective, accretive because to reserve is an to from our mean? means in that So that from a that deploy stockholders. more bitcoin any value highly our building will continue we that ROIC

us resource. we into days get past start market the the and was -- think to we're are businesses the or bitcoin very we are that of I wave the to $XXX bitcoin for go We're finite us attractive it I offerings to makes have never is a starting we we the bitcoin see when Canteritzgerald a sold. January substantial million sense did it able what in hold starting makes at the marketplace we're And only place invest. is to have it. institutional like it the in available in see investing the we're accumulated to to for And starting now to that. offering holding The [ end and XX say just beginning what's bitcoin ], of at just in going . And position a long-term And invest. of the then to just financing holdings pension at day, businesses, sense see financing funds do people prices, people of around buy as XXXX, who willing to holders many bought it sell.

bitcoin. for look that's we an And than historical so areas. We think kind very perform we has if time to the going better at of asset now, bitcoin it's of And offered. beginning the we to right a other returns continue that are in attractive believe

XX%, XX%. bitcoin accretive holding And for north said, shareholders. our very something can be at as Salman of looking You're

that the of one this. that's drove So reasons

questions Kevin of next from the Dede come H.C. line Our with Wainright.

curious I just might XX you now, exahash increase that a now add source, is about was detail to if come am -- wondering -- XX more little Fred, of target. XX.X where congrats going your to At kind power to you to talked And be will need? Pro I target? power you going [ it able Or change? Is introduction? more to hit efficiency? the the address do SX ] that you're much on how about think you know

the is we by the come that we that to the available assets. all going talked this vast did made and today. the case capacity from to be we So when owning target these the And us announced that of essentially about acquisitions Kevin, will majority remains

sources sites machine point, customers the help that -- we've sites. of them the to along So But we us add sites. as the essentially the have plugging we'll the the continue expand we continue And in refits other we're capacity power and do of to ready vacate this at way. from at we the as

we're buy have of XXX have. already way we we like well sounds it what out megawatts go that and do this. with power to along So to

you recommend the doesn't applied we enough. own power perspective City, Fair [ closer power get you the the cost your like you deal that where right, moving deal versus facility, How but GenAI target? X it on to Garden judge and to company ] in generation would really closer

harvesting Energy go sorry, ahead.

No, no, no.

go You ahead, Fred. Yes.

allows the say going power Yes. I the going the control our the is trading to power the the owning source. from was destiny. step of control that looking the -- our us power just actual at way and own to back generate in of infrastructure to the next removes all middleman own The infrastructure revenues

for go to with being to And is benefit a in minimis. harvesting have not down cost date is large-scale And revenues generate there to those which the for they effectively. the to marginal I'm de really is buy people to assets see power ask there where where are us operate generating aren't able of power partner monetize bunch X who team shutting on assets, are generation that sites opportunity locations because the But to side of Now can't then our locations assets. they out cost said, you where power-generating go power-generating today this world those energy. and going the those are

And energy of allow to us so with as partners very partnering low-cost get those types well.

So our provides cost will business per methane where over overall the lower bitcoin whether recapture, whether the cost, essentially mitigation, energy you'll that's is the time waste service, mining in subsidized low. energy additional then become from gas whether across cost that's harvesting the help provides, oilfields actual involved flare business projects heat board. start the it's seeing energy And or which consuming a harvesting landfills

When hostile of takeover in emphasis maybe you getting be at that involved look on will energy pipeline, your more back a though, it M&A and forth then fair be side, Versus business? the to initiative? assume the to that on your Fred, is that go seems harvesting in

a power sometimes multiple comment But potentially wants is XXX is kind provide megawatts greenfield, say, the But to XXX which can substation fun these our kind look you monetize effectively? of I we can don't a megawatts, is down, look mining but who of what they monetize M&A people. and lot power, in has maybe, the that of in you watch. you owns pipeline today. true example, then it things. somebody interconnect We a Or step renewable all next substation kind on have activities. interconnect buckets miner really energy maybe world at at. the remarks, have we prices, up somebody started doing Or bitcoin and has built as said attractive they who be the where, of to full an stuff. site a prepared with energy or an buying that. they let's have which then around to We of somebody XXX And can't see at have of for and have looking at project M&A in We're has operational

is under different this of megawatt. where very beginning which were it a of today, pricing year, the buying we at is paying kind where The were is $XXX,XXX than sites we market where

to where value So look we'll trying continue at we'll we long-term most the as to generate we be deals. think opportunistic, do to nameplate opposed and but can just

for going point, to further to this call there turn the are questions. At remarks. no Rob Samuels back closing I'm

Thanks, operator, and thank you all for your today. time

Investor answered If our and please at were ior@mara.com. the of Thanks, contact questions rest today's team free during the feel have enjoy you not Relations day. that call, to

your This you. appreciate We conclude Thank does today's participation. teleconference.

disconnect You Enjoy the of this at time. day. your your may rest lines