Hut 8 Mining (HUT) 12 Aug 212021 Q2 Earnings call transcript

Welcome to the Q1 Earnings Release Conference Call. My name is John. I'll be your operator for today’s call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. turn over I’ll Shane Now Instructions] the to call Downey. [Operator

Good morning, John. everyone. Thanks

directly to standards quarter quarter still by its So Hut XXXX during industry achieved good the morning is reporting many second do as of X. reporting. Corp. IRS address initiatives infancy, the joined and asset refined CEO first digital X I'm in earnings CFO this asset very Leverton, morning full not much Jaime my Hut accounting We as Mining for call, digital

QX I part jump to forward With ongoing management and language, consultation which said, of well change made we'll I'll and active Sue engagement estimate As of short Jaime analysis classification some management and and of a Jamie, both as with it an our into open I and the review things summary I'll rest that then in will change up Q&A. as with disclaimer and sheet look team, QX, for some we the our then with turn results. address balance our below. start over then our to auditors, in shareholder with base. accounting additional of Along

course, this quarter by new XXXX. financial Start setting amounts regarding forward-looking remind year for earned to find These year our I like December highlights revenue press with are for call record with significantly in of statements will Corp $XX.X for to are of earlier I'd factors and mining as release this all QX results uncertainties Bitcoin average XXXX. applicable but addition as, comments both the exahash In form uncertainties at exahash a Mining the million X.XX are include $XX,XXX million in to statements mining dollars. year-over-year. XXXX, from today, respect price could up XXXX, as our you revenue, risks denominated QX versus an approximately prior XXX that of not meaning subject information differ the cause This through X, current of XX, Canadian Hut to to statements average are the to and and activity. well Total approximately We include to another Hut ended of the million rate, on referred QX future driven At within Securities and Company's issued Unless and, of its made expectations. our hash annual the to we with in QX otherwise hutXmining.com. was Legislation XXXX may noted combination can strong XXXX compared variety from X shortly year-over-year such, of due materially financial per first as in subsidiaries. to in by SEDAR – on MD&A limited you is the mined up quarter. increased during that quarter X.X in the website discussed risks actual appreciation is and result the a $XX.X revenue expectations performance coin. for $X.X current These second activities at XX% X.XX time, which Bitcoin walk

of grow line hosting well. Our business continues to as

a over as late second $X customer added we of revenue, think I in million May.

years. from compared of company's of costs addition to mostly The in operating life four approximately to electricity, year. in cost but to the prior for QX net Hut the increase of want minors depreciation decrease ten costs, Site compared inclusive $XX,XXX I expense useful costs, depreciation was results the infrastructure of to QX and the $XX,XXX million revised associated depreciation monitoring, $XX.X to fleet. continued was largely expense bring million decreased was result approximately a each increased estimated expansion, expense. Cost cost operating as electricity of as assets this $XX.X XXXX, with our specifically year, costs. for and Bitcoin is excluding operating due site of T&D, to mining maintenance Moving QX of of in are of fees, quarter. network the increase Modest in to well costs, emphasis loaded X’s the personnel, our an XXXX mine fully equipment figures fact repair revenue that

are aware, that successful fees. it's the asset Hut pool costs the share-based from Moving of digital in NASDAQ’s million, of to with list were million Canadian expense excellence. tier All building the these of out $X.X as of of resulted into successfully capital the the top new Market, in as the regulatory year only the speaks was up a Further, $X.X best a considerable streams million to period. non-cash ultimately but legal fact considerable we investment NASDAQ, Global general NASDAQ to strategic counsel. resulted The administrative commitment result compared which are is the compensation commitment corporate miner much prior company's fees, and Both in initiatives managers X costs, to shareholders G&A listing various of not the and a Select of $X.X increased excluding increase team's deeper listing portion and external larger costs practices. involvement markets up to executives management our NASDAQ, first also to legal in and to year-over-year in

income. of quickly growth. balance income, our Bitcoin volatility We normalize company To from continues the expected year-to-date $X.X two XXXX arrangements. company lending a earned on the of for QX We We during to net our now LLC earned million million expect earned and active is though result agreements loss cost We of This generate arrangements quarter, arrangements G&A fee strategy. signed related $X as agreements. asset at holdings million driven finance experience well are from finance $XX.X the expense. income lending lending allow our in million over the Galaxy Digital the digital change income combination finance and as huddle revaluation new as short-term $X.X a Bitcoin lending these was have quarter by XXXX. tax continued the deferred recorded of our income to comment to supporting in lending of classification to to $XX.X arrangements, net significant leverage all flow, unrealized compared of during with cash to reported loss These QX lending continue XXXX million $X.X additional million have and the

reflective results. are income for gain opposed The both us to custody Neither simply to losses is gain the basis, related or specifically in concern determined most core core Just clear, box of in to upon equity net lending considerable QX of these unwind from subject price or as are the of This of mark-to-market be assessment in unrealized recorded operating part particular revaluation loss reason move non-cash management interest comprehensive a as arrangement. team. classification an neither unrealized being items held appropriate, through digital and lending amounts our XXXX, the is through effectively P&L. in arrangements downward XX, other the was of consistent of unrealized those was to consultation auditors as other ongoing assets, loss Bitcoin XX, any that US$XX,XXX from action XX approximately March the to which at results US$XX,XXX by serves at June of $XX.X approximately was to QX to QX in a being the down June XX. million March with The whereby by driven to with and recorded digital it which assets, our tax management a

of tax Bitcoin in a for OCI, was of $XXX,XXX modest gain, Given $X.X of year-to-date of price went the through which QX, million movement recovery. unrealized $X.X the this million net deferred

effectively bring ago. positive that above, year-to-date net I deferred moment referred million on a fact basis, million of to the expense net it that of emphasis income million. $X.X have to The reversed the a tax recovery $X of deferred really QX tax $X.X mentioned recovery So $XX.X reserves million we

compared Bitcoin EBITDA. in driven as mining QX EBITDA just Turning previously. our adjusted as discussed period, $XX,XXX profitability as X million in that of achieved average to for $XX.X XXXX, hashrate Hut by fundamentally increased adjusted QX XXXX well to

healthy. capital invested equipment, Alberta. of the build-out million mining raise be new orders, MicroBT The in the will including of $XX.X sheet. to of continue the sheet acquisition latest the the in growth this company remains to $XXX announced from Turning raised balance January. proceeds Fundamentally, June, the through supplementing million the mining XXXX, previously We in raised and well location in as balance our NVIDIA of our as third

subject totaled Our of at X,XXX of to marked arrangements custody balance Bitcoin and fair and million, Galaxy. Genesis XX. X,XXX held in Bitcoin X,XXX $XXX.X holdings with value Bitcoin consists This as are and June lending Bitcoin reflecting

I long-term Jamie. during and our quarter. any the over turn will emphasize to things hodl with And to We continue sell not that, did Bitcoin strategy

Thank you, Shane.

sheet. held to So expanding QX and on leaders say to market very the obviously busy Bitcoin X. leveraging the balance excited new right on relationships incredibly our we've progress in in Hut were off been our revenue power key making agreements, I'm the diversified We want finalizing continuing executing self-mined at the top, cutting-edge strategies, procure I hardware, about to reach be

operating and Our active continues strategy, generate strategy limit and expenses its protection markets Bitcoin. to downside bull the helps to of in X bear help emphasize diversified offering more markets. dollars strategically taking U.S. upside to revenue fund while It Hut matters. some Canadian capture during selling us hodl steps

settlement As custody. passion to based anticipate and Shane network XX daily wanted of during mentioned, was self-mined per all dynamics, XX to deposited equate Bitcoin to the I into on current XXX% also quarter, Bitcoin contracted day. our mention we will equipment second once

X,XXX was providing June This flexibility $XXX shares to course, NASDAQ, a of and proceeds for the face asset uncertainty gives able improved $XX opportunity of equipment, a XXth, miner we've on opportunities. as mine will QX making to an of be has Concurrent purposes provide in pool and with which the to raises future them investment us fiscal approximately are of in megawatts to initially for settlement public incredibly the that closed digital two cutting-edge who's that strategic equipment both consume those one on market operating Shane XX,XXX list substantially competitive and quarter open the at increased high-performance liquidity to gigahash. on pick result X company CMPs, first We this offering main tenure. only market deployed as achievement year. to the NVIDIA price Hut Bitcoin of team per on for company of anticipate project cards of while were continue available the been to terahash We cutting-edge our settling shareholders. listing, executing in network and meaningful power of three highlights investors, becoming to mentioned, heads future successfully exahash on to current an down this to using investments of will up capital in and Bitcoin. access while common of Canadian million not finalized Ethereum this the and discussed raising very in X.XX the at delivering method. mine X will We the see megawatts in These early were a Of on this day Bitcoins X.X approximately in

for forward of monitoring We of enterprise this staff of this hardware used installation plethora deal which Hut we to hardware, additional and The our month. of company and with look crew. it while grade. later all the equipment onsite the as Dell quality we technology new in unlocks for capabilities is X also to technical significant tools ordered new pursue enterprise the and conjunction server in be a is And cards, controlled excellence support, beginning

building to low a finally, of establishing incredibly a agreement discussed, in our previously Alberta landfill, rates. vehicles. and purchase in of waste we emission with power launched ESG-related LED invested all power initiatives, third also And fleet throughout out of the several recycling program as to facility lighting We a robust compelling sent electrification of onsite volumes our installation including facilities, limit the

facilities on the efficiency focus half is Our the of that and of on our we've across purchases our continuing average mined execution. our expansion cost second the to made about bring down fleet. the increasing all Executing Bitcoins for operational

Bitcoin associated fleet upgrade expand cost Once also new that Our operating fully new provide reducing of costs, continuing our installed and GPUs. powered reduction. our and further course, power will deal to primary additional per the be instrumental ASICs with efficiency and in and we'll being cost with

So manage much support, you to as we'll you turn it over so and thank always, now Q&A. John we your for so Thank to much.

question first And we’ll And session. begin [indiscernible] you. question-and-answer Thank our now is [Operator the from Instructions]

Congratulations Thank your on you. uplist.

the you given the out a actually loaned limiting put are Bitcoin much market? self-mind. Is larger X,XXX much can why size curious I'm So into to you there factor that how

morning. question, and Great George, good

morning. Good

earlier and embarking with with into the the And account it comfort yield then We account remainder started with our time. success Genesis. in yield with we this initial strategy this on X,XXX on and Bitcoin Bitcoin opening another went put at January only that And started May the of a our with then on in that as year of based our execution of and arrangement program, talked about the remained entered that in Bitcoin. another X,XXX we Galaxy custody. into And we

to it We held It time. two for the hold our be only of on as also earning the advantage price we’ll served our cost a of custodians. held we the Bitcoin So that sheet. obviously historically, really Bitcoin the diversifies risk this over the believe was Bitcoin. appreciation take base purposes, – of of with income Well, it balance where continue of serves portion of

the stream, incremental think this one we So strategy well risk as of right our as diversification is for revenue holdings.

answer continue see opportunities. this this will very question, But hope to evolve may program time. interested it explore at and we the where days for yield got incremental we’re early over and other point, still George. in We I potentially to much avenues to

Thank That does. you.

the a power new it’s So the just down to per get adjustments, the where coin difficulty your coin of with see that we with minors, a at a coming quarter-over-quarter, and cost you nice ultimate can from where cost ultimately we new sense you do give look for cost to do directionally us new with per coin? arrangements, see

that it. that able back question. into solve had want big I not if variables enough to go spreadsheets for come for But can to one into been really to detail coin. that George, per a about to so we a build me, course. it’s coin. of fully to you answering build There’s all want It is per And play, did much our to of difficult what at Shane just we predict and don’t goes some into go cost loaded cost the

so that want go And I the on inputs Shane, IFRS think add know into us recognize anything. that number to for based you important people that of for that’s accounting. to I all don’t if

yes, frankly, has in I IFRS we to No, as itself, add in out price of And sentiment the that’s extremely be Yes. building I to up as they terms Bitcoins assumptions just with think how and echo commented. line calculation to the future don’t the specific is of where in which would per modeling the build simple, much the expect and what challenging. of land Jaime

difficult to where Alberta, has second as of the Jaime But combination up we’ve a a it’s at specific on stood getting earlier put it. number commented in So location on… commented

Third.

will the to board, then NVIDIA price coming Excuse that guess a that’s the more we power miners happening accelerate has be power the and extremely location any sure. just the is from Alberta of is on the miners which continue been to that today. a location throughout NVIDIA me, chips, really third generally Relative certainly basic compelling expect the for And X X.X and in like other perspective consumption locations relative our from perspective I megawatts of chips – from specifically to year. the efficient to at will our efficient

the certainly Got you. appreciate difficulty. I

a our previous depreciated. in efficient, a it’s suite, And market. we of a early because participating is suite space. miners you significant is this traded it actively been one less which George, mining or the diversified of we’re oldest therefore, is We’ve generation. have the of publicly remind The portion thing I’ll fully since this add XXXX other just we around but And means – in do in of

to something And margin so to that’s be difference. aware of from a perspective, and the note

We have profitably That’s fully very today. depreciated mining equipment.

Bitcoin, so factored because it play equation. into obviously does And into per cost the isn’t depreciation that

away. get a How last benefit could adjusted leaving does there Got and the now? adjustments much the didn’t that that? way right Is the that to I how Chinese if you you. One impact quantify question you with did difficulty miners much negatively market,

accident resulting happen that adjustments majority until beginning didn’t the of of from July. the the Well, difficulty

there was majority any really of rate benefit. level. in for QX – if global the our in at hash QX And much the So that much shown results isn’t higher and

and the So that it of the production saw which result will be of we results, a benefit in as difficulty seen obviously October. increased adjustment that in be will our QX

Understand. Thanks guys.

Our pleasure. George. Thanks,

ahead. question [H.C. next Our Dede. Wainwright] from is Please go Kevin

Kevin. morning, Good

talk Shane, about the Thank Hi this morning, environment the accounting very Good bit P&L you. Jaime. Shane. much your attorneys sheet. thank with you Maybe graciously accountants for the you. that you had sort and negotiations in just and Jaime, could prepared balance and Hi insight appreciated. rearranging a fluidity is remarks, in of your thanks the on little

discuss Yes. to anything it we’ve happy The subject discussion to that sheet, to Happily I in to comment and say attorneys terms further. classify that of change I can I that yes, lawyers. of lending balance fundamentally arrangements. a mean, bit with is had none and nothing, – Bitcoin or rearranging do made with the whatsoever

So is classified it Jaime earlier. flowing than arrangement at being gains in what QX. XX, through associated through Any happened gains OCI. will Bitcoin Bitcoin on lending and now that’s the That’s the XXXX June associated with is or which commented P&L, losses rather the losses that flow with

very on same all that equity of liabilities, So and treatment would net which get through in get – kind digital is basis, into not won’t applies exact underneath assets be into financial in analysis digital excuse IFRS X. far The IFRS fiat gets through of too is do an that in fundamentally IFRS other a classified. the fall I tax sort loan any applied box which would assets assets aware me, world that to custody. much Well, to world balance the held through of sheet the the are X

conceptually XX accounting. And within so accordingly asset intangible staying we’re sort of IAS

it’s that that And an away. sort of no goes impact on you perspective the explains truly sheet no impact perspective noise, operations, balance year-to-date change and at a from look that that, really cash. QX when only, QX that’s then on So accounting classification there a and

and understand Bitcoin that full thinking I treated correctly, Shane, just you your did not holdings way, So, that the XXXX lent. are

exactly That’s right. Correct.

not Validus okay things Okay. deal. on add things. a congrats color. we I’m energy more was Jamie if tech good wondering could with with I little so

needed help ensure, my wells will third in could flare, that on its consistent understand will its happen understanding mean, add location Because Congratulations and that clearly, ensure the of us accumulate number So quality, me consistent fine, color what so seen Hat I how it’ll not can Give might gas any Medicine pricing its in of there, new your delivery. idea the to you some sort location. right? ensure you years. it’s with we’ve be clear that on operate the more are just on, them source. but you that Drumheller It’s for

on greatly be So any I would think us comfort appreciated. can that you give

the up of use energy way question, So the gas minus for The well And annual we and produce is has it’s alone. be – adjustment connected a at the of power the use stood a we’re new behind again, the they’re are It summed plus commitment $X.XXXX an to they’re site because and And Kevin, I’m will on fixed to primarily XX% fence, through connected XX% part specifically not using turbines rates power. and being trying ultimately or grid that to be uptime produced directly and arrangement understood out the Canadian natural site your mechanism. based contract the uptime. meaning because as site store our answer the site. directly a the think is our is best connected will that just built an

we working the up our we end then XX the again and a it. have XX And flare respect gassing stood performance specifically gas operational We’ll this has contractually So in as is the perform. to of phase the disclosed to the which be And history expect of and purpose-built being know what of one environments they with megawatts, is and site of costs the been start amount included reliability by use. year. long use we’re the natural about working site of detail is through obligated that QX these for to with not to in yet

gas, it using gas So the power that predominantly answers source. behind fence as generated right. is your Because it question. will natural be forced natural Hope, the

up Yes, that a that helps right. I box, we’re clear mean, was kind it of tremendously. trying to black

light get power X.X we’ll The is network. exahash any of additional how So that great. it much to then will how you your by on to XX XX, X.X. that have adding you the need much get plan you’ll end, to you the year on more to full And this

exahash. exahash mentioned as the exahash that XX So we XX it’ll expected that in for an between ordered. is exahash of be we’ve petahash the for delivery now. and recorded And MicroBT, from to onsite full will exahash, then using megawatts That’s the about It’s already X.XX the that the incremental we’ll equipment megawatts. October MicroBT of And XX use compute XX deliver December.

with contracted well what just to cards actively alone have that exahash. today, X ordered that that and X.X as online coming us NVIDIA equipment gets in online, production coming are as with the exahash for the then MicroBT we So

Okay.

I XX you’ll that in able be little target. my guess, to your So new to sum – just full with up brain of support sort X.X megawatts, with

That’s right.

Okay.

then Okay. fully be it the end seems could full to of you’ll assumption? have of And And the be year. deployed a that end the the quarter? that would fair it assume up the XX by March fair Is the X.X by

fair that a Certainly, our chain target. by That and the is of grace willing supply is god assumption.

Alberta of grace winter, the an I think more by Jamie.

we We Alberta love free winters. winter, how during of miners advantage Alberta air That’s winter. The our cooling. risk Kevin. the absolutely love take We Alberta

Okay.

all transformer need the at the on infrastructure that So that – that Validus for or all is deployment yes, you’ll is is down you? supply full site, – to or that

partner in and already already site building schedule as back are has long are all ordered, lead of we items so that we’ve – work all out ordered working a then with a been progress. the got and all infrastructure full the That’s in

Okay.

I’ll you in jump great. the back indulging me. Sounds queue. Thank for

Anytime, Kevin.

our And question is [indiscernible] next from

Hi. Good previous of other question, two team colleague Validus. Jaime, of to and your the around just the concentrating now, $XX Shane, question members. And is course, million. I to size voices, on was hear the the one

So, if addition watt the cost be I $XX in may of the ask per or per kilowatt overall setup to would million.

a how site to this would long Hut this For agreement Is there X? going under lease is Hut eventually? operating X or be site be owned by

million So, believe the the $XX the that to to, out. you’re side related is amount I referring rate

owned So the own do, it not we then that’s is term how the land is year options initial agreement And cost. an which ongoing we that have five the five-year that. and has rate an after do that then renewal it the We the center own two operating site downstream of sites the with is are as just transformers, is X. Kevin, that the that Hut we will discussed the data leased, land nor be being infrastructure on. we on all containers our any by land but The infrastructure

Great.

million? we if another $XX new put five another So term mean that year a

No.

I be overall that setup this to to that can a need eventually. call the Is is the of bit It going see seems what Validus of there put, be what previous the clarify just on be set costs is to be include? you disclosed again, to of – part a to will it not little provide Because the clarified does does that. need be Because cost agreement it include, that something disclosed. basis again, around do

discussed, setup we to be procured? the any of On will million covered. site for that I boxes by black is part covered be another of the $XX going previous would be set the as be assume will of there that the call

to site, we we Drumheller numbers want expensive site, on economically continue So that is becoming this thus most this on the assume is given if fact that our the power. are operating if published given that far,

Validus all be and continuing and would So at Hat on, cost efficient the Validus looking of mining in more later Medicine Alberta? sites the between Drumheller economic what maybe on,

the Well, future having answer potential that is, I think we’re best to way conversations for always opportunities about growth.

a diplomatic That’s next to... question with is very regard it. The Got answer.

true. Very

Yes. regard to The next NVIDIA. with question is

the I in our timeline If was to you it was expanded was announced, this recall think initial when July, August. previous then call

Now two and today, the subset it’s trench, a news being split September August into a another on subset.

initial On of was delivery. the – of delay can deal, on our was because or Is explained? of if commitment value justification our NVIDIA logistical there the or a reasons the be the for timelines from on site, of that site it this said NVIDIA

infrastructure It’s chain supply the equipment. actually support to infrastructure, the related the to power the required

So the partner offsite at just have to and to with container use our Dell to into strategic Amulet working we Hotkey, so they’re and assembled fully plug did a an them team everything assembled source. when appropriate the location data site, that needs they arrive center the with appropriate power

weeks of we’ll to production. that have And be been on going I And some they’ve site. will the obviously downstream on spent the to assembly they process. then weeks, through – delays in mentioned, they’re then they the delivered over equipment the essentially or right as onsite. the in items power and in go and we process time, kind the the the the assembled the in of infrastructure into because phases, delivered plug delivered But the chassis arrived schedule support fully it being related cards last few six next So on of as get

That’s the clear. business. The hosting next question is around

is I amazing. for Would amazing, we thank side. year clients Quarter one, new are two hosting First have really quarter if great interlock, would was not calculation, on targeting. performance the the you invested of we on power if for securing then any overall our on be all, than target megawatts, on XX forecast of the And company. a this XX see of the we could challenge. mental Because media it the around On again, for offset interview business that I kind one business? simple can plus put that or are modeling the this. I the to investing solid model overall was this a the put line we so cost available associated on again, running with that the far But as the percentage in material think do XX% you are number more a what

the So hosting for there targeted a is business? number whole

course, that’s that future There continue look fee-based is that mix to number. we’ll unlimited It targeted mix the excitement to support suffice conditions it’s the future between a like. more critical to up continue right dynamics. of it new split kind streams with be is what we’re we’re right to has limiting one is without it’s for a hard ultimately, and of the to built-out maximum, because self unlimited the hosting. power, to huddle limiting for strategy put market of the mining comfortable us not to to say, power expansion now, hard expansion site at and our revenue is to market to built-out conversation and really is it and And we’re absolutely get really maximum power factor. fluid And Bitcoin, right that's fluid, allow us. it's because we'll an based But continue look now And based look without number And power factor. a and set on a on diversified that we will are will kind self-mining really number capacity. help put power, important for, available at activities a is on And our it and the

potential it current the reminder for on deal think accounts, for regard warrants XXXX the available the Great. the cash XX% the for almost see in million the year? $XX with and loans to I because need of cash interest. another you position a Do available capacity came loan business and given With HX more target

it's that market kind cycle. of look, of between we in is and Bitcoin something since haven't right? an healthy our interesting incredibly sold Bitcoins Well, its on, conditions have cash. We early based and balance, an sheet beliefs balance and Bitcoin where January it's But

We operations certainly mining. before were selling of it's we during fund market, bear were Bitcoin, majority we selling were the growth. and the So January, and to

to and continue in So I position us put volatility with sheet so. and where think we'll has we're just the this always balance associated market a first, thinking cyclicality do

they this for on the before XXXX plus on previous thrown I've balance. insisting When in balance. I going again, on call, Bitcoin And they a to remaining that are question. final one the super know the us? – That's work are remaining

we we initial so January, account the first we it I react because a and with and the market of forward would back really kind are when now – we started do fast as of for about obviously, love to struggled it And in and more. kind move. looking talking more team of and thing being kind even that right thought the business months and people how this you later, yield was the And just opening favorably? and leadership it for be we thought eight then, would made to we

commentary around, quite continue it's one pursue with positive strategy. and that more time in an the his with looking coming Kevin, in so at yield. that there's – sentiment and that evolution And question after from aggressively to for we'll and both quite I it's about on more find it Shane I fascinating program quarter of absolutely, so much under now us previous spend We'll been around part chair comfortably it's looking And you that But yield belt. a his business. full the

it. I So great and feedback, appreciate really that's

is personally, well And Jamie Again, being would thank there periods, you lot Bitcoin investor evident for for leadership. things, being think Shane the [indiscernible] team was I volatility a us, the company inquiries IR of tough performance to Again clarifying to being during under responsive of for for I a it your the that's interactive. for thank the period.

you. thank So

Thank a sure. with that We much. quarter volatility certainly It biter you it. for a of so nail appreciate was really

next our Brad question is And [indiscernible]. from

that the business for Thank my May that having last get done had yield? guys have about came you kind for this one course, the quarter, say, time to Celsius sources you're the funny on or or like appreciate work questions can't of all new It's for today, you that looking really of I is more guys customer Hello. that this Network, the that call you you in customers if of of of revenue last are your doing.

Expanding yield? around into potentially new relationships

say farming mean, customers a looking you you hosting, with? Yeah. doing are I you're or customer when someone are providing customer, is for that yield

we those we customer that technically two the and we customer hosting a two And have sentence clients. the customers, From have of yield with word, the only relationships strategic relationships. Yes. then have I the, we're but think true are partners,

a maybe do other in with you. crypto? Okay. I you're or to relationships level really part at where PR your to expenses getting other your some the you all, of is machines question it where employees next taking or got And expenses to these pay the company. yield then subject my some different yield considered actually to farming Have you of around the pay

Okay.

in to in unfortunately, in settle for intention mechanism income employees income current Ethereum to initial isn't paying versus and be I a our although that do and Bitcoin. so one Bitcoin it, is love the see Canadian kind guidelines, in there, and there of would within crypto mining, to as actually clarify that network guidelines So paid is tax

there happen. at rational make I day, that that this could hope there one that's something just way become a So point that to but possible, isn't

is, to have Minsky I for Bitcoin which at or guess both? now doing yield about thing the you last network either do hosting, they because Southeast they're And talked farming or all mining for Alex

we No, any conversations. no, haven’t had

Yes. Okay.

those Well, you very end Thank are my of questions. Okay. much.

much. so Thanks Anytime.

Please question another from ahead. have we And Kevin. go

back. I’m Jaime, Sorry,

Hi, Kevin, missed did you us?

especially record. miss course in I the Of you. missed Miami you I for

very that’s Very know I special true. Even true. trip.

up. catch We’ll

catch will We up.

should Okay. I third call spot it location, apologies maybe X, haranguing on tray. again the for we you

of name location have yet. not does as a It

Spot X for tray.

you. give will We

in Can you XX of agreement and take then same beyond win… sort the that

a that. up it XXX go ability then has to The initial to and have beyond – agreement we is do the

know power on know It’s a are agreements of to Hat power your now. with increase all Medicine sort there, same I there. different different work both I and they’re suppliers? Then but question the chance about is capacity Drumheller. there the you Okay.

Yes, no.

rich. I think, Alberta, it’s aggressive continue about energy grid what’s about got so know And associated I Medicine to having between farms really increase course, now respect are what capacity future of market. Alberta maximum, greening the as is future. things right power about as carbon say, really farms investments to oh, – about we’re It’s before, incredibly natural to in of the happening we incredibly Alberta the like of a in targets I lot the particular they’ve grid at the province. exciting there’s And exciting we know footprint that available at I this and the happening I it now. power Nuclear up think and both could and on And equipment now. gas But renewables significantly, be And of talked used to hydrogen one with currently Drumheller. an with about could we XX% of Hat there’s solar reducing all innovation the lot in the XXXX, they’ve absolute all significant like, very look of exploratory look their wind space. is innovation made but and in around focused conversations ton really of a

grid we’re the for really in significant new how on one community behind and being fence like without us with connected we’re both So, locations it. can that that for and happy a that stable building drive the partnered we’re innovation off-taker we’re locations, we off-taker

space think I completely innovations mining definitely peak. off-taker we’re part years. power back two, that exciting Kevin, strategic the watch in think able a we’re – really is the when growth one to like critical – to where right? over spaces most opportunity for the five, grid really stable one, to were put we next And for power and conversations XX new it’s this So, is a ton It’s the there’s of is consent. of needed of that,

between liners. plus a more one such start the working it’s and where power that’s one independent five. thinking we natural members symbiotic together really the relationship producers And outside box, So and equals

the suppose the your serve assortment is can and through add. as It is, not in province mining was of ramp a that of demand, relationships there extension that suppliers the but I going to you plenty was and or mean, to you whether seems that with power up just balancing. suppose function that And I load power comment I changes vis-à-vis Well, me of I the activities. capacity competitors

So question I the next have….

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mining to official echo Okay. next is last vis-à-vis changes promise should but price difficulty of think use I the the of there shareholders [ph] function the about might mining any Ethereum contract I or The I can you we mechanics of How Bitcoin. any assets last there What one. it. set and you and hoping use will take ratios Bitcoin change, us love that way sentiments question, are you be conversion there? that Ethereum prices. has through Yes, was that this my maximize

on so how at that we look in how made detail So anybody those of the FAQ them can actually our are calculations making our had websites. we’re

the frequently publish are details associated this asked all NVIDIA with we and there. So, the questions project

that, So, I that pointing will to all that you point if seen detail. we’re haven’t

the Thank guidance you. Thank the in oversight, power too. thank you. for you for I and Alberta. the Jamie, Appreciate that apologize color on

questions I this time. Kevin. no [Operator No have Thanks problem. at Instructions] further Anytime.

to again, to time, a our always for be It’s support. Well, and so want shareholders. much Okay. everyone directly we pleasure thank once their able with attention to connect

so thank again to soon. forward we much. And look you So again, talking

concludes today’s And Thank and participating. ladies now you may you Thank gentlemen call. that you, disconnect. for