Canaan (CAN) 20 Nov 242024 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Canaan Inc.'s Third Quarter of 2024 Earnings Conference Call. [Operator Instructions] Please note that this event is being recorded.

Now I'd like to hand the conference over to your speaker host today, Ms. [ Gwyn Lauber ], Investor Relations Director of the company.

Thank you. to conference welcome and everyone, the call. earnings Hello,

and Chairman Mr. Jin Senior Nangeng us Capital Cheng. today the and Manager CEO, and our are Markets of be President Mr. Joining of Zhang; IR, Xi available and our answer Wang, session. Vice Development; will Corporate and Leo during Zhang, James question CFO,

the Our company and the an overview quarter. CEO of will start the call highlights by for providing performance

for the CFO operating results Our then and the up on provide before company's the period call will details questions. open we financial for

except and release, and we to those required including assumptions. press refer and risks, the webcast, press may that cause on are not as Commission, performance the with to project any results we factors or call forth safe of do press would Before include uncertainties include, operating information may that our by law. These subject statements the I like company and to begin, filed call and for or Please not Securities the Today's speak statement to as forward-looking annual guarantee such or uncertainties and revise future differ earnings statements refer company. be our in are risk and today's the release statements assumptions in and documents company actual you of estimate These to statements forward-looking from our to, but performance our report in the on materially recent most obligation statements. only today will statements harbor These limited set Exchange that release. made statements. no Form to risks, XX-F the outlook assumes for future results

These which for a to call results. considered In performance. from believe or both we of we measures non-GAAP not GAAP and are measures, financial GAAP as should substitute financial and addition, isolation the in discuss as company's useful addition measures non-GAAP measures be and certain supplemental during will in today's webcast,

comparable the GAAP which on our call these You additional turn Mr. regarding ], Zhang. find release, our can company's CFO in disclosures I posted results including [ with website. With will Nangeng that, over to earnings reconciliations and Chairman press non-GAAP measures, is

This the for you everyone. joining Canaan. is conference of CEO Hello, NG, Thank call. our

Our QX James are with quarter reaching and you with the third everyone after share share thrilled recent I results XXXX our developments. I first CFO, our and new to pleased marked complete I this the heights, is excitement. price in Bitcoin and quarter believe halving.

mining historical Bitcoin to from market price our by time, this same price pushed on miners' these putting more network faced During volatility. Bitcoin mining quarter. last challenges We only than million hash headwinds, we paying rates hash combination X% total the in of another deliveries to expanded saw by the reach the our global USD efficiently, operations. profits. Despite the over attention the to targets, quarter, continued round we AXX to I'm Throughout to AXX every transition but detail. careful met our mass of we reaching series, plans and them, we completed that we of our production we report our sales slightly total our global At This pressure Bitcoin compared average price products, pleased XX.X exceeded the XX%. grew not QX, declined lows, revenue. optimized executed box

detail. Innovation remains Let our me cornerstone through you walk business. the each of in area

performance us drive deliver to allow that high and products market constantly investments R&D demands business ongoing growth. Our our meets

] series schedule and AXX quarter, delivery of our process. the began the improvements with our of internal partners ahead by This through through closely small-scale DTCO we working new foundry initial [

of both performance over yield the We the and series rate have made AXX recent to substantial improvements months.

joules XX.X with series, in AXX power of terahash power per per computing delivers Our XXX second low AXX Pro, model the efficiency terahash. as top as

fully We scale-up confident to in AXX our production for the are mass series. ability

deliver A Immersion our is provide improving for are product developing while line, where needs. specific we These their mining reliability customized solutions We terahash clock extreme comprehensive per that East. will base AXX steadily our have of and in unit proven AXXXXI solutions speeds. partnership example Cooling at mining performing even recent continuously expanding with heat Middle XXX and CleanSpark Miners the durability,

combined interfaces, that For consumer with target product principles. decentralization concepts individual have we household appliance

mining more more Following level the X Nano offerings will is plan. developing success proceeding broader new the according reach AXX we of are public, base. The customer These helping a general consumer series us to accessible of product, our to development our products. make

we completing more use partners, always, Through testing. The foundry collaboration optimization our we with in aim specific after AXX will power details achieve joules only terahash close advanced process nodes. will machine efficiency to XX-plus full per the range. As announce series and

For we our power to approach second. air-cooled terahash machines, expect efficient XXX per

machine volume million terahash of primarily of achieved series a mining driven by of of sales represents and sales X.X XX.X%, in quarter-over-quarter sales, This power. in second our year-over-year increase the quarters. In past per XX delivery marking terms computing miners, we a our continued increase highest XX.X% mass AXX of

Although AXX in significant price impacted to years. Since feedback. of and its our received XX.XX best the series product decreased by our past customer quarter-over-quarter, drove compliance attention has million, in sales strong with for the USD QX slightly new revenue launch positive record May, computing the power volume average selling X

With initiated We've improved. delivery further largely successfully inventory cleared units. of our has begun models. This advanced out, also we AXX series, delivering mix quarter, traditional X,XXX stocking models small-scale about

Bitcoin positioned to rose, demand. demand increased customer expected models the Following driving the U.S. in surge mining for well machines. inventory election, for meet has The new price us these

XXXX. AXX now, extended for February scheduled deliveries through orders of As

fourth the with quarter. the Miners In America, mining drive in units quarter. an system a sales AXXXXI customer of multidimensional listed November, public with delivery fourth secured sales. continues Immersion we In of long-standing recently Our from total also early for order X,XXX global agreements we the miners HIVE mining reached with North for a CleanSpark starting XX,XXX AXXXX planned company, for to delivery Cooling

Cipher and development system order also is customers X,XXX performance schedule. in Our ongoing our with process North on being delivery for America partnerships sales American with These the AXX reflect the recognizing units product more product and previous North of our delivered capabilities. promotion

we've demand customer the Africa. energy growing such and in seen Asia with regions Following advantages as halving,

these by power delivered sequentially. over to computing regions XX% increased Our

This delivered quarter, we to over East. miners XX,XXX the in Middle AXX customers

products in Our awareness local high brand markets. stability reputation expansional environment, demonstrated have in expanding our temperature and

positive accumulated third the primary XX,XXX become customers sales broadened quarter, diverse channel strong and protocol XX product the shipped reaching heater, for X, ability market the third regions of Avalon meet X, sales to orders X Additionally, line, have The with Nano in our Nano Nano over have units countries needs. responses. had XX,XXX by for during units end Online our our brand promoted of with our quarter. customer and mining demonstrated

our and Regarding price rapidly operations stagnant mining this network Bitcoin we hash rates. quarter, challenges posed increasing overcame by

after we efficiently season price energy conditions mining are quarter, X of relatively network year, which power. in of X,XXX due expansion revenue to partners joint wet in the resources XXXX. AXX fluctuations, price to mining the involving series still a to This hitting lows The in online by with second this in managed the stable margin deployment quarter, includes increase to wet the with environment million, Today, AXX mining to the produce XXX QX where quarter. In mining optimization driven has growth the and Despite outperforming active we Bitcoin our boosted positive pleased price about concentrated the are quarter X% computing during Africa a achieved making soft this hash abundant, with Africa and our X,XXX a America, XX our exahash Texas, output North units in of and announce August, stable operations X.XX progress. is of a the mining mining historic this reached gross Bitcoins, regulatory Bitcoin remaining XX% continued industry. per USD second projects favorable Our megawatt series later Lunar in third expected quarter. negotiations we compared industry This the arrived project remarkable come several performance season. along and average. this quarter-over-quarter, Despite Squares

Our is of the community. By will the and increased per totaling goal our X.X power in securing contribute quarter previous XXXX. our year's million more but holdings North deployment and our our to Bitcoin, per of online reaching operations, we not by influence support announced in this has record Bitcoin Today, joint operations X,XXX about in million by also of Bitcoin's have our believe in have significantly with only mining will our actively been agreement sales September, demonstrates funding. mining steady our the This X,XXX this AXX investments equipment and computing our second conditions their existing high. American reflects come better half new environment balance upgraded the USD mining strategic improve strong exahash to -- value. setting USD supports North as mining mining deployed XX site even with first significantly enhance North to preferred Stronghold To investor, long-term our another been end, which sheet venture to on We market company advances. confidence exahash an America, scheduled second end. goal America series Achieving development investment in XX we a miners, stock financing like and XX

working to focus our front, optimize on and operational increase internal operational challenges, improvements, efficiency. while the management On external maintained facing we our

we are quarter, R&D maintaining This our investments.

continued overall expenses, expenses last levels operating quarter. streamlined and over at keeping control We prudent to management marketing similar

changes fair non-GAAP value and XX.X has fixed Excluding Bitcoin XX% non-cash impairment as halving to USD such factors as million, investments, the as due of in year-over-year. the fluctuations EBITDA price loss financing well narrowing assets our

us Our for better to at a cash phase. solid company's USD North end. development mining our production and cash sales support America, This expansion enhanced million in laying quarter foundation investment reached and position XX reserves accelerate projects AXX mass next in the enable

will started these market and began contract for -- and quarter quarter, ahead the Bitcoin both in making quarter improving model companies. continuing we are spot for several pricing aligning yield first into our year. With orders progress and planned. delivery have as steady at the rate fourth Recently, we large-scale we deliveries listed least Looking rising conditions. this publicly secured adjust to orders, ramping which of price AXX fourth of to for with mining -- orders our These major sales up quarter series, production capacity with significantly, the next AXXXX enter the the

the R&D is advanced sales primary payments are for conclude this of orders. quarter. This -- proportion series We contract the work AXX to for also increasing expected

business, to developing approaching with both customers. mining. decentralized mentioned mining we These outlook these in we our to new in level rewards strengthen maintain deployment these consumer efforts, the as line. making products provide to unveil underway. quarter, Hemisphere, home cautiously are soon a factors, are an optimistic XXXX products plans we progress Northern comprehensive product heating value a America, for continues aim several Meanwhile, with last will With year. Based combine Through performance, particularly Additionally, we fourth increasingly winter North of the quarter and XXXX. that particle economic designed to make on our successful

fourth elections, actual Bitcoin's results may expect approximately XX numerous This We current conclusion cycle to the variables recent rates signaling the on million. operational completed, the becoming based company's are of USD vary. be the and U.S. With revenue halving for and market is force and Federal quarter market Reserve cutting guideline clear. conditions

centers. their Bitcoin mining increasingly observed. crypto-friendly to emerging are stabilize and are rise facilities recently. In North We expanding that data more America, price with communities have positive factors and we beginning miners These seen

current On computing we power supply-demand period explosion market beginning. is bull believe profitability the the dynamics. reversal critical and is only miners' a other of This hand, before

ready product continue our customers, As ongoing important and investment of various this juncture, series we in capacity in Meanwhile, delivery. we development and products to the performance AXX production invest diverse consumer, for our are miners as new future with enhance meet high mass capabilities. important market delivery needs maintaining to

forms. within embracing U.S. advancing fully actively the in are partnership our and our in compliance cooperation listed a and sales Bitcoin market as mining markets like leveraging strategies key We various participating company, advantages North America,

turn partners, that market achieve bull over confident in the the prepared our opportunities our Thank call with Thank are customers everyone. I we this market numerous you, remarks. to can together. This concludes together and now We seize CFO, you. will my growth James. and

financial is I'm QX of together with day, NG, glad and share our everyone. very good CFO you CEO. our This James, you, to Canaan. results with Thank

by third more post-halving. total As but quarter top NG a stated grew X% the rates the the was at that challenging given call, sequentially, was it the than price network hash of the The first Bitcoin declined industry's XXXX complete XX%. of average over by quarter quarter

the As AXX of the series, the the continuously we products, a the further quarter, production of sales efficiency of squeezed. completed result, miners' margin and to Facing AXX this strived delivery energy was mass series, performance yield with improved challenging optimize introduction the further and bulk the continued global for operations. expand AXX

me a summary of give X. our quick quarter Let performance in financial

Stronghold, of deliveries growth the choosing and North of important large-scale are generated AXX series a total revenue such earnings our from that $XX beats mining North more year-over-year HIVE continuing past including secured was highest with CleanSpark. customers, some our this our listed revenue of our and AXX call, our for significant million, America enabled products as of we First, breakthroughs. This for some XXX%. operations. we series, with Moreover, mining penetration AXX the of series which marking By $XX into million, companies X quarters. in have around guidance in more the their date nearly market the and we Cipher listed Together American achieved companies orders

ongoing the $X million in of Secondly, despite mined Bitcoins mining average of price the mined to mining situation revenue unfavorable our generated our with mining quarter because expansion Bitcoin per average $XX,XXX. of in compared We of exceeded the an operations. this revenue Bitcoin overall and over expectations quarter XXX this industry, performance our

reached a X.X increase per record XX accumulate helped Bitcoins, sequential self-mining around our X,XXX a total to of hash owned of rates second, high Our which exahash Bitcoin Bitcoins.

XX taken plan about added significant mid-XXXX. America exahash our which our in States. collaboration exahash in steps Squares, exahash upcoming Pennsylvania, collaboration this our to some North in towards have committed which States are added X.X we including reaching And Luna with United in target, about We of United X.X capacity with and Stronghold, Texas,

X our lowest quarter past in significantly the Thirdly, point its and inventory balance reached in this declined years.

structure our a our inventory reduced, value older of percentage further was from inventory As series optimized. sharply

AXX of end customer the of needs our was we inventory meet series the newer than this At inventory X, lower As quarter of XX% of of total point, value to prepared value. the with are the models. more

Let's start to and profit at look the a take loss.

XX% per And XX several from past We from Revenue line marking XXX% year-over-year series in sold per was the XX% $XX $XX XX% America terahash X, average sales our selling our orders power AXX As X.X terahash sales started in to year-over-year. From our XX% key North quarter. second, North In by highest and total Driven around revenue series a in price revenue. batch such the progress ASP increase representing in the I of million of small X, system the total machine customers million. terahash some $X.X delivered or sales year-over-year machine secured was positive delivery side, have and CleanSpark by our contributed Middle per second quarter. power key nearly The markets of around our the per clients as revenue. AXX sales contributed America large-scale we regional of product East volume increased quarter in sales by machine product our this from delivery second. per sales for of said, the significant The and a global quarters. HIVE. around quarter million. increased computing sold and and XX% multidimensional sales From from made $X.X machine side, from computing revenue ASP, increased during around

our orders by from nearly Nano $X.X the from this and In date America revenue for X sales. The in Turning X, X Nano achieved to from quarter customers recognized Europe. heater, in our earnings X streams. heaters around call, of the which million these XX,XXX we accumulated primarily units North XX,XXX Nano delivered revenue and revenue over mining Avalon diversified product

non-cash quarter, made gross For $XX.X is but impacting decrease machine clearance there for driven decrease our and was profit, These a mining million ongoing The prepayment rules write-down write-downs GAAP sales, impact this no we inventories quarter. our accrued the cash in our are balance. year-over-year stock U.S. by of write-down on in under XX%. representing

of for write-downs, to the revenue XXX%. the latest of the increase quarter. write-downs We reduction which in for machine $X Bitcoins increase second a mined exahash primarily a million achieved are price. Mining AXX This end a of XXX value would was sales. we series increase driven the mining according computing profit was Excluding from year-over-year mainly gross business, million quarter in inventory $X.X by year-over-year have power above of the X, The installed quarter, mining XX%. reached X.X the at our per market

per our end exahash our where We the X. mining at X.X Africa in reached expanded also of hash second further rates installed business quarter

Bitcoin per decreased that due Please which in $XX,XXX, here hosting, by mining decline the business machines. X.X%, of revenue but defined as average profit mining for revenues Gross X for X. is costs note our quarter profit mining was Our prices for over deployed or XX%. loss depreciation was and to of Bitcoin quarter net margin in the primarily without consideration in energy

to turning Now the expenses.

in decreasing $XX post-halving. series by Bitcoin expenses year-over-year, of mining including operating mainly performed organizational optimization Our in million, AXX totaled a as our share-based impairment XX% year-over-year. increased $X year. of recorded million decreased difficulty mining We deployed compensation, result Staff our in operations machines driven QX XX% costs, last

steady during impairment, expenses this XXXX. about million, were Excluding operating our $XX remaining

third hash cryptocurrencies As third price fair quarter assets the XX% XXXX accounting on EBITDA new XXXX, new narrowed allow million, XX, an of operating increased September around $XX market loss on XXXX, loss of the by to to fair contributing Series received gain QX $XX,XXX accounting adopt post-halving In June cryptocurrency measures. and performance comparably, value carried U.S. $XX recognized XX, the incurred A of $X.X as preferred of accurately we value around XX their treatment $XX,XXX order our more QX fair The proceeds excess chose quarter be accounting aggregate quarter. Despite exclude financing assets of rules. These shares convertible mentioned and liability our a and around we total the represent to X narrowing a to a on and it adjusted of accounting in we a to USD non-cash during to in on XX% price, more year-over-year according GAAP non-GAAP X, rules The change. our bottom-line issued impact tranche value. year-over-year million. January our XXXX. from X, million. In financing since was with at FASB the to early versus over challenging treatment Bitcoin the rules hit This million cryptocurrency

and paid flow. balance Turning to $XX supply. our our we received shares quarter secure cash sheet we financing X, to In wafer and million from our $XX preferred million

quarter, end at $X loans. of X. $XX quarter million sheet, cash approximately of of and $XX increase of operation from an we quarter by secured million X% production the refunds Consequently, the offset sales. a million million export inflow the During for $XX the outflow from from X, $X compared and VAT million cash cash of end balance on of to our held was

end to XX, $X of of decrease million, XX% of balance December compared As XXXX. receivable the was accounts our X, quarter a

policies market with corresponding demand We and continuously will credit evaluate caution. adopt

end USD Bitcoin X,XXX our September XX more quarter. of held market Bitcoins reaching of million. as Now This around high totaled at XX, last assets. the than to a in record XX. turning attention September as quarter, of On of owned holding the own the our assets XX X,XXX is Bitcoins kept value fair growing Bitcoins this our

than This gain value USD XX that a expansion mining the The long-term of loans Bitcoins believe million ] our million, million, Bitcoin pledged for and Bitcoin our $XX,XXX X reasonable an patience. In value our exceeded operation. the creation As level. owned price, this carrying reward we long-term at secured Bitcoins of or loans is and we yesterday, production, around interest value liquidity operations. at for the secured quarter, original what from other exciting and an is was $XX gained USD we aggregate for enable additional with value of higher XXX hold-own [ of

also product premise increase our In with of explore ways liquidity strategy, future, XXX hold-own term we owned Bitcoins through a We will for rate. a more fixed crypto our annual transferred return to under the assets. the adhering fixed to capital

be is an be to We to nearly million, revenues rapidly friendlier been The QX for rising of is expected $XX,XXX, and USD since increase XXXX. our Bitcoin cryptocurrencies quarter expect price November today's the price We point a compared believe halving. XX the before environment which highest XX% coming. has to best of exceeding

price high machines increase. continuing profit break highs. rising chosen believe Bitcoin be the just consumption However, stimulate will miners AXX our with Mining series. will by will We customers, the stable performance is power, mining of demand historical products low of the still and steadily machine growth the and to trusted for that like power and computing

self-mining to new are customers. sales We to allocated and be of expecting both deliveries machines to

as always various are the markets We and sales of in strongly strategies forms key participating needs to new of product our work research North America. expansion committed diverse mining XX in operation achieve in such to Bitcoin meet goal to capacity America development and customers, in we various as collaboration and exahash in North investing promoting

in our strong seize prepared the remarks. We and will customers we broad opportunities with the work huge partners concludes market that have to market. This our confidence

are now We open for questions.

comes Our Instructions] Cassidy question Rosenblatt. Kevin from [Operator with first

good Congratulations quarter. on the

up. a XXXX? of and the event you lot the seeing? How of How would you as say, described year and look far You in does halving as you're compare very in this demand a visibility strong demand XXXX when had like XXXX to, picking amount then

purchase large Thank X motivated final you are the prices similar. machines tend of pre-halving a of mining. for quite question. the patterns months quantity -- for I lower buyers think About halving, for round before the equipment by to will Overall,

halving of takeaway between demand customers afterwards. have again the and the Despite and the will usually and recover, the typically demand demand fluctuations all grow. approaches and normalize to have drops Bitcoin overall Once differences, market some lessened scale that professional these prices continues X halving Bitcoin have differences price demand the are when is more of inventory However, the rebound. That their timing key said, significantly immediately Market in events, as become trends, industry operations. levels evolved. there

I the XXXX, influence XXXX. in conflicts different may geographic will demand -- capacity regions some maybe I the and have the demand like think for think the and different

do you're to And meet in to mining shortage able make you systems have no or sure the going place sure what assembly just the there's even be of rigs? space the to foundry make of ASICs the and just demand,

Yes.

We joules our and And and production joint USD the completed on anticipated further will the to market yield we financial collaboration financing because also the support. mining sites in we bull require with developing XX by interactives terahash production coming. end advanced U.S. be foundries, in invest is new million rates of has improved efficiency partners early market year. At and to secured shortened self-mining per placing focused products, delivering cycles. These we September, trends XX the and know power capacity close models with approximately this our orders an

is our as to supply Recently, market stop well orders. customer there. The chain as to Bitcoin price So rapidly. bull have the us already rising for

So reflects us to million another listed to and demand. being company, advantage secured capital swiftly financing. expand XX meet deploy USD we This growing market allowing our a in capacity of

of start this in close think about months. placed I in But the the deliver the use production we will to will end year. to usually, September wafers X

time. improve refine XX most to chips, different work this achievable. includes a products design the both needs be to cycle in hardware. believe will is entire terahash shorten deliver integration also quarter. And performance we to BXC next doing whether the This of And ecosystem. per deliver This joules further. I year, solution product targeting can of levels, of we well are to continued methods, or have chip range machines and different We we'll and system to XX software products additional AXX cooling -- as as the power completed of The to investment of everything requires the BXB customers, we expect development. I our

-- extensive few and few coming past have continue conducted months, years this work development in the months. Over we the will product

Nick Riley Securities. from comes question next B. Our with Giles

Congratulations market. your basis, on could the What revenue an on coming this quarters was exahash start there. targets American wondering percentage on you customers. or with I expand the do efforts I'll sold if of deals you in recent either total have revenue? in North gross growth

I XX.X% third per we even stronger triggered the the year-over-year we think in with quarter, setting recovery mining demand anticipate over a X.X price publicly-traded a year. sequential second record demand in quarters. we terahash XX increase In orders XX.X% marking HIVE, power achieved computing have market in a CleanSpark rising next notable and high like million Bitcoin and a growth, North companies reflecting large-scale and the American announced Recently, past recovery demand. sold,

will supply sales we surpassed still pricing our adapt evolving will in early value market and policies in the And forward, believe bull began orders. As stages. sales Bitcoin align fair Bitcoin $XX,XXX, sales contract to prices we moving the adjusting strategies flexibly market demand line our price be for with market and increasing upfront and with We required dynamics. payment

an is as the AXX in just such think series initiatives your other XXXX. between around question My spend next How split about series? should we and Kendryte R&D expectations

think AI I side, the me development. -- focus we our we on this. I -- we say But Yes, about series for Yes, -- see. something I miner can something I think let have

Okay.

it's years, years, NVIDIA had the has clear discussions about and of rapidly X -- think my opinion. I I in direction In field. mean, company, the have winners. all personal its the about this think AI industry has leaders in closely I evolving few monitored last emerged and as with ecosystem I past for is our advancements This

capturing of takes it Bitcoin think for they I -- XXXX. the in will me This that -- began profit. are mining so boom and So yes, the majority capturing of remind

foresight. XX could how wave that Canaan has to XX ride AI foundation the participate. So Edge to design decisions the infrastructure. strong avenues of the mentioned, giving a years? itself the is series one chip Canaan product operational require question us is, areas you in computing development, position define just technological and right Making process, multiple the to Kendryte can This this like our next business

think fewer model than competition major the That XX the might over I already small number are consolidating winners already language today, model hardware for training in there. means essentially large and of years, large X demand companies foundation or models. large In model a be weightage there just globally comparable companies. X to is -- is So have that training training large the among

major training demand these AI a applications emerge in leading will based requirements. of on the mainstream, become opportunity next increase So likely that inference sharp exceeds power with models compute

time. to will At devices, specifically shift designing chips invest producing producing the heavily large and this wise would especially -- today's for stage, in be the However, models. take it and

So remain cover number have idle. typically to a should software AI complex, think. we with generate really so models will of decreases, rudimentary both different clear disappear more between are seen and year, relates mining, algorithms computation algorithms. AI computing tokens, we I cryptocurrency but foundational issue the for think on I This not a as

So making feasible more AI ]. be ASIC-based solutions for [ will

year, like first infrastructure particularly in I lay is resources afterwards. The power lay best preparation in to America. solid aim regions believe already phase the and to deploy begun. window foundation. accelerating us continue megawatts -- current By the this our a mid cycle right last we North just next deployment, the So has solid expand And to in underway, is now for of Bitcoin to a XXX X-year

the provide long-term services ASIC to applications possible mining, not using lowest our new is of years Bitcoin other vision. for at one compute only but also X optimized CapEx ahead, looking is tailored my in markets. This and for goal So hardware OpEx to

future. for very X build So strong a straightforward and or our our is X infrastructure foundation next focus immediate over the more deploying years to

the for long Sorry answer.

Our with Wainwright. question Kevin Dede from H.C. next comes

at series and AXX? look AXX with was I hoping on NG, AXX becomes seeing your wondering demand little versus the seeing. a a for bit Obviously, shift I'm what you in the versus could you're the from And to as increase orders the air-cooled immersion density, issue. side demand you're compute greater heat AXX

Okay.

terahash to and the than is $XX AXX think Firstly, to advantages. much is EOL close phase per -- very is lower AXX about have more I because the AXX series today is power now $XX. The the the AXX efficiency is $XX

I more than -- improvement. there's it's XX% think So

AXX of all So to -- AXX. capacity switching we are from our to

for -- the under -- is the much running is Celsius XX super stable. competitors because I our and bigger is terahash comparable to to demand the the side, close much our AXX tested We by system is air cooling performance liquid system. think machine the degrees So XXX today. our and cooling over in demand water-cooled is And laboratory,

is everything much AXX -- better. So is

the is the method, think cooling cooling for machine's So I increasing. liquid model

to think trying especially in use generate the of customers heat, some reason the machines is I is our winter. the to

XX we Celsius. cooling water Celsius So over customers to us, liquid from degrees models our with the -- working using to multiple is XX degrees have our and temperature generate hot

So in the that, for center it's because very is valuable think noisy. regions. And very data I equipment it's Bitcoin after mining a different many also sometimes --

operate to noise for requirement very customers. a So our with lower important is also

cooling is So model them to think very led the Yes, important. water this also the to cooling. I switch liquid

will or we to month have XXXX. year, this maybe January next of announce water-cooled end the in to the the or plans -- liquid in I think So system public the the we

hold want color I I for sure further make going I'm do just to understood AI you you thank appreciate think to I on though, development. your address know. development see ASIC immensely, back that until develop you a all an correctly. comments your you the you're as to to path NG, perspective curious market?

models. using this or by AXXXX advanced of using today the personal inference HXXX the think [indiscernible]. is more For training But question, reviews, the like I AXXX, the system Canaan the my model most is some and customers

in that me of mine They use GPUs. Bitcoin. GPUs rapidly CPU to to mining, very Bitcoins use reminds early they people this and the to Bitcoin mine switched stage So

say using is AI to today's is players status GPUs mine can you generate or the to So tokens.

the yes. what So inference currently on how to the disadvantage not does by This training is I is this ASIC using -- we today. at the are demand. stage. Yes, AI demand we have over something come I tokens think do what generate But seeing plans to the personally, I'm is technology, today,

next So kind AI to X is movement. as quarters of and cash wise mentioned, in just the this a X to I invest lot of one or ASICs

this will I to look continue to closely industry. So

might counterparty more X,XXX-plus you've using offer still how evaluating are Bitcoin do you for one I risk? see you. understand think Do you loans? Bitcoin. James, quick made you your Bitcoin? have How question that And loans the you

a question. wonderful think I that's Kevin,

a be as listed think very are company, we proud listed to NASDAQ. I in

to have So the access we the market. do capital

different doing usually, So of we we preferred company, what the methods have demonstrated have for do can fundraising, just like past, in the we shares.

to our can offering. Bitcoins And the can market do liquidity. generate also, also at We use we

very market suitable. not take easy price like all then last we is strong, And transparent. ATM it's all-time just be more be methods. quite possible asking would demand may because to this honest, if increasing we least, balance question, currently would Usually, to I usually shares preferred is Bitcoin between and high. So think sometimes, those the me And but to if it's

for Bitcoins of Of flow. to consider have do course, these we we to consider course, other using can But cash more of utilize methods generating pledge. Bitcoins to

is are For example, testing. we also doing some financing interest to generate something

So I all of methods. think currently, we are still kinds learning this in

this whatever haven't do terms, fundraising. in We how we yet fixed

try methods course, shareholders what's Of to suggestions our to us then we can for consider our fully can all more provide the best and shareholders.

think that's fundraising. doing the I all this of purpose

comes question Mike with next Grondahl from Northland. Our

guidance AXX For AXX ASICs, AXX? the between the that down quarter, XQ then the the $XX break or between the you could down and can that revenue million the And break roughly your for you AXX? December and product roughly

question, I Mike. question, I this take think this will for

like series. from X quarter mentioned of we that of is X,XXX delivery major NG the delivered series. only think I pieces AXX has AXX

different part mainly series. to North occupies of major Mike? a we think AXX And series for from percentage. I geographies question, But AXX your AXX did deliveries series. the kind major also, good a America. Does also stock is And and East is Middle that the the lot answer So of deliveries still clearance

XX% to be? and roughly, the XQ, between and And in split forecasting was to that going Yes, What's the the I then million $XX you're revenue. of AXX North AXX Middle think to East XX% America.

Yes.

still currently, is doing series ongoing the think delivery. I AXX

major And series mass major delivered quarter, first -- period. Cipher, from production is AXX will series introduction a consistent it's North still we in quarter still the in in climbing batch AXX we America at like CleanSpark it's to the X, think customers kind and a I of this part AXX of HIVE. still our have have and of delivery. the will main delivery But

quarter this look like. be will that So

if still go So is say, series about value we relatively percentage, and AXX me would but some I the you're to rest quite have AXX. still the asking clear, AXX to occupies smaller. percentage the then biggest And

inventory follow-up of the sheet? is how on Got Roughly that. to sitting it. a much And balance AXX just

If can of AXX now calculate inventory, the the you you value consider XX% is inventory series.

financing? then XX%, after a share balance count lastly, just rough cash have do the okay. And and you recent pro forma

I don't question. know I answered this if

Mike, we earnings in today. release our outstanding our have of shares disclosed as

again? for balance? you are question asking the What's cash Mike, the

I was talked financing that recent was just you it after the Yes. preferred. I guys the about, think

just a that you forma have cash If after financing? pro balance

Yes.

the think I million just $XX happening is today.

already end tranche received previous the We next $XX the end preferred or week of been in the cash. shares But haven't the we this all have cash. last Hopefully, yet can previous million $XX that of in of million week, receive in September. the received

question, million So your Mike? end the in counted the $XX of cash September. Does it's answer that balance to

trying anything million financing bit. million whatnot? take We would just operations this to minus that new for a that run for little I'm $XX and plus $XX Yes. forward

the only we about to on the supply, in invest can the also wafer we of site based Squares quarter, it mining this will invest together are But Texas with Luna not you Yes, do calculate to course, that. build-up. in going operations, more in West but

for That's turn the have time all company for call to remarks. any I'd back we the like over questions. the to closing

us today. again Thanks joining for

on please reach have us out we If or further to that contact questions, operator. our the feel to you have information directly free through website. Thanks,

the That everyone call for you. Thank attending. you Thank today. welcome. concludes You're

You may now disconnect.