Argo Blockchain (ARBK) 2 May 222021 Q4 Earnings call transcript

Good afternoon and welcome to the Argo Blockchain Full Year Results Investor Presentation. Throughout this recorded presentation, investors will be in listen-only mode. [Operator instructions] The company may not be in a position to answer every question it receives in the meeting itself.

However, the company will review all questions submitted today and publish responses where it's appropriate to do so.

Before we begin, we would like to submit the following poll, and I'm sure if you could give that your kind attention, the company would be most grateful. would hand do, Wall, to further CEO. any like over to Peter Without afternoon. Good

Thanks us. Thank XXXX for you, everyone Mark. joining results full call. Welcome year our to

questions With the As pop and CFO; up they going later, of our as Relations bit of Peter, investor said, Investor Divine, is and I'm a of some our Mark Argo Appleton, little I'm Tom of Blockchain. in. is to -- me head our relations. today Alex is the CEO come curating VP Tom

great see to joining. some the Hopefully little great, we'll some so morning have if So a those done. Thank that And them you right. media. with you It's soon. for we've share with for results far of followed busy of Done of closely us. coming you have out. to been have interviews a not, our company bit All the social on us media had chance a

the legal will look Exahash. So, let's seen Most changes before, it. of presentations jump a off that our you those a X.X into next Normal importantly, to lot have familiar the disclaimer for of the slide little top. of bit little, presentation. with The

the May, month, is to that the And IPO that back of the from and good the progress, next are installed still the that ordered in following So, Helios we machines we October. still which just those starting our mining is Bitmain and a have of have. to Exahash installed be days by in plan from that is month is few those away. at capacity end looking existing. adding order X.X We're contracted two Bitmain The XX,XXX September,

two Exahash of the that the we in to that currently. confident October, given reached place have is by going all all pieces we're the That of So, Exahash that end of be coming that the about That's current to from X.X XX,XXX XX,XXX then XX,XXX in talking and already was about. that order translates extra I the fleet is just our machines. Bitmain mining to machines

very friendly big out on big put we those on neutral update achieve the to company the releasing we're I We to a big story. ESG neutrality values, climate year. think Argo, to We'll were a is XXX% being a knows miner very our of carbon certain bitcoin be be an able were reason along is report lines. future sustainability, last strategy regions. that everyone We and that part focused an first located part near in being carbon in of a our miner

same power. zone load power primarily power, renewables, in First using hydroelectric of in enormous amount in where strategy an from Texas of are we all, following is XX% up of coming we're West West in the Quebec, the renewable where the by wind. Texas, setting there's West

and for So, we that, what is and and is are of a us continues do. that key we part story who

On Argo At end the of bitcoin allocated Labs. XX% our bitcoin HODL bitcoin March, is that equivalent, HODL X,XXX side was things. bitcoin the to in of of

innovation in-house the launched later update many a earlier Web within the broader and Labs. this give non-mining the As with And in Web Argo ecosystem. -- -- presentation blockchain know, of little our eco It's focused arm, you Labs we X.X of on Argo about I'll year. activities X.X activities

peers, which proud Finally, among of. of and really XXXX a right. is the XX%, All was our we're highest margin our number mining is for all

the is everyone's we're two new going the regions facility. our been of which financial see we're where right facility All that to the hand and on is mining mining, our today, two from Quebec. flagship the map slide, Texas, our and then next the The soon facilities to So, very Mirabel, in slide and Bay think Texas locations of from in where you the which Como last side our slide, then jump year. opening Helios highlights right. I we're I'm waiting – ahead for

So Argo. it as year you can see, for transformational was a a for great us, year

$XXX from or of the £XX was increase million, before. XXX% Our an year million, revenue

million, EBITA million, £XX XXX% Our year. previous the or was $XX up from

Our £XX up X XXXX. was income from million – less net up $XX in or million, million

X,XXX Our the before, bitcoin balance – sheet, XX%. the bitcoin -- money and bitcoin end equivalents the of was just that the on XXXX. sorry was December mine of of of end about I X,XXX. as the year, entire X,XXX north and we end At was for year year, so just And margin held that at the –X,XXX said

very but Chinese year. year ban margins on also driven board throughout as well our throughout the costs, us entire was largely not are with, can the as well control low the – that soon scientific was mining on the money to and as really – place bitcoin our good the able global rate the all temporary Quebec. cost cost will bitcoin hash for by took have that in the we're consistent mining performance. our being chart with, hosting strong of operating drop That right, deals with very Core as strong we that see across eighties we power in kept that the currently you or still with price high helped year. the in This was On our and our of the mining miners, mid The be margin in for mining last

All XXXX. miner jump about was key to great and milestones the our right. to same from operational power, summarize much XXXX we to cost access with a highlights low So a be time and ahead way very to To the are year, XXXX. feeling

a Texas to the But going the in the a and growth place today. for The lot infrastructure. for third was foundation Helios I'm a Probably, like have an year. happened acquisition all. most we go of to important the and them parties our couple one was to was was the it busy gave operating our own part owning strategy the from not GPUOne a first A at through being for out that that the in happened. major shovel was I'm took hosted It that Core So us point going highlights in project. the year It Panhandle our incredible year. Helios shift It project of of project quarter. ready

that Como. So first Bay took the moving back our as going acquisition second quarter, place facilities own were these infrastructure. that owning and in case Mirabel. at the the in a our machines two And was the centers far XXXX in of one of as big originally into operating Mirabel part quarter. closed and one we data in In in of hosting We Quebec, – our

common that the listing something shareholders miners a which third access asking access very Nasdaq in space worked capital. on were for was moment saw or it obviously of hotlist the and the most It because the to be Nasdaq. for. – The the a this company. on huge saw most of much the year. toward pool was the to lot or that's US, listed was important now very stakeholders obviously something quarter in the of is It's something US that's It markets, best a on we for that large the gives for it's And capital

we some quarter that All order $XXX right. in million, As are immediately stop. starting raised the the and fourth machine didn't -- that Helios. toward install went listing, capital now XX,XXX In we part of that we of to that made

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of the third in Helios. progress We broke also great right. fourth to some the structure main outside metrics. Jumping the talk a of later ahead end the there had updates. the building. All bit We on completed And a more bit facade about to quarter, we some ground I'll little the and in more by little the made presentation get Helios but quarter, key

page, this kind A growth on from of dramatic into XXXX of see XXXX. how our So lot was. this rate you can -- the up to on

to rate the about we exahash from exahash. On side, X.X hash X.X grew

Our these from all went are US$XX US$XXX to million. million, figures XX in revenue million

up Our also XX%. money doubled margin to

to and in assets from million from end Net December year million our at XXXX. $XX in to --- And EBITA income to digital million. end XXXX. from went the $XX Our $XX $X cash of and $X million about $XXX cash went XXXX million at million

pleased important some we growth and really metrics right. obviously, very the for with the were So year. All

power needed house. the necessary However, machines about and also it's capital. And as and only our about and facilities, and only people. we team not to started operate our in own only bring to grow expertise about It's about we own really

end of seven headcount from the start Actually were the of still small people. end XX a CEO. people when over Our very around grew seven took at we company at We the as XXXX at at people to I XXXX, were of XXXX. around

right team XXX accrued data of ops members. of all We our approaching we're As about now, center people.

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nutshell. seems fast XXXX Obviously, this is ago. space. like long already a in is that a time moving So a XXXX

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six, You cooler eight to of the coming almost is dry the the taken months. that's the side are the on there can rapid up place seven, see over line. The development last end

that of So And this primary our year. -- for development. really, focus is great the great rest

the So to jump the initiatives ahead let's for year. key

obviously Helios of filling in having all finished by That and X out be So of end for it still completion machines. and of includes with is up time the completely those of baked year. to infrastructure fully ahead the Phase machines, place slated this

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being we rate X.X of. proud that the end expect Exahash that number All our of And said, very to to hash that's a by of we're this year. grow

whole, kind Our philosophy. of,

that quarters and years. people been think we to slow has I on company growth closely and focus are to really sure that follow on and and steady the make know focusing

say is little end that that And today, details believe know bit the key to absolutely number into happy us X.X there's and entail? year. But a does And will what asking, folks really of a that that that's year. our does be so end achievable by this the something a I expectation of we'll Exahash for is not get this What we by more. we're those entail?

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our a staff XX activities, our about Helios got On you of of labor. we see can facility there the now, have staff recent XX the right-hand side, onboarding during temporary another photo

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of them machines, to out think that, to running air cooled. can we in we compared environment them boost addition an get In significant rate overclock i.e., when a immersion that the hash

the once largest the it's in deployed, be we're So the that immersion in being all will Texas, right. said, of cooling world. building systems All system fully one that

to having gives like the of have is machine relationship. We're the the work Intel four machines. think the In they options custom baked our diverse ASICs are cost the company intel than out to our increase it entered a a going in a space. the And chosen margins. more supply rate credibility fully coming chain, is space mining a mining blue is key rig, industry have mining more the and Intel chips of be available mining to be proud. competitive with them bitcoin one as per incredibly companies to shelf chips what's we And We're cheaper focuses also for a has also that one to in, It to bitcoin benefit important. that opposed terahash space the rig Intel further will currently to chip mining this going custom will into utilize to to our building basis on announced excited terms hash use that very and We earlier chips which with off more but these development, us of of and Intel, have coming market. significantly is to this relationship as year us available at allow

closely to top the the mining them be deploy third-party year. developing of manufacturer. on relationship machine, great design expect we we terms We're In working that very able and the have bottom, a of toward these with to from the to with the machine machines end of

for to those along the XXX lines the look Helios. to us So ahead year at looks like get this is the what megawatts

services includes So the that to ancillary completed major here advantage important been on and we construction be with really of to a We've working that in workstreams see the are have able ERCOT. that pieces of you The dry putting substation, I immersion of that demand well as part and some the going on just obviously, mining. equipment see all needs you pumps, piping the that can installation facility, the the to inside That we coolers Texas. before very that well. the the is mentioned place building, to the machines and in start work tanks, the of or Helios the ERCOT with progress. the are take finalize response obviously be to offers inside of been the That's can and facility, can in time the as

we installing of soon, machines installation terms the as the Core In machines. Scientific start both of very Bitmain as machines, well the expect machines to

structured Core two machine lines can here. has way any So mitigate been in downtime. a see swap to those The you

install from take machines new machines our their that'll also and unplug, in over take and So particular to Helios. as on different the we Core to facilities, and rate eliminate batches, the them them having in four This located hash will gates. ship and the place machines receive will plug downtime

XXX% with which arrangement really we'll July, us. the milestone operated end for Once we're that another at no with and more arrangements, So of is complete Core. the pleased be swap big hosting with we Core self-owned

get it's a and the it diamond soon. In XXXX. an little important we'll operations make then then it’s Intel to critical a terms happen announcement machines diamond And soon to in the you slated Helios. of on to feel machines are this design piece, for testing at market started mining for the Very, expect event currently a It's, the year of obviously, Intel finally happens. because we energization, does see we deploy those phase very the little when so a like end into very there, dot and to toward us,

expect machines, That quarter. dotted fourth more to chart. you the Intel deploy just there'll is we as see stop the into well. be So can won't when XXXX We on the then with line and the

So hash what impact online, mean phase completing does all significant have terms rate. a hash of one rate? Helios will, obviously, Bringing our our this in on

be delivered, May machines So the We right going then and this Exahash. that increase to part from install as are on rate others ordered as times XX,XXX of in We’ll I've capacity. of Bitmain. we Pros starting in to to in before hash in Exahash we presentation These the now we are May that have SXXJ said, And there. and started X.X -- see start then X.X Core the many QX rigs October. end through

machines. from X.X see hash an So them we year, obviously. Exahash. That's the additional bump another about will get deploy the increase as we an ASIC end in At uplift of rate of Exahash in the we'll Intel

that most online. rate not year the megawatts merchant. from we any with does This at to end with the around full include Helios XXX So expect X.X hash the Exahash of uplift

about our conservative rate hash under-promise, be overdeliver. to we're So Again, trying projections.

remember, capacity. XX including rate, is still we this megawatts nameplate hash have nameplate immersion. not another then -- And So of

Bitcoin where we both facilities, and Our Zcash. mine Quebec

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with that and talking We the we've machines. which just ASIC also of us have agreement, supply steady about, provide will supply been a

manufacturing manufacture those, third with will terms again, that, it machines, custom than and a are a available party In on those terahash we're cost currently to result basis market. working what's of in the we confident per cheaper

to would So access we these megawatts north obviously include the of getting factors together, of add see us Exahash and additional This the development Helios. full chips, by capacity all of the power of XXX XXXX. and the to XX at

that taken So in year this XXX in earlier coming the will future megawatts for announced Phase a There's even to long that power. quarter full steps We to though four are on we've we and XXX we year. that the lead -- only still be will megawatts the second additional of time first those the phases transformers take they X, us already. up next ordered of

there built-out. a orders important All full we we get But right. to the XXX So to it's clear megawatts in. have getting those path

taking it? look back. So are going a in quick to the for we But things? plan and capital we for the are power. -- that's doing What side So obviously, plan of for pay how machines that's

As everyone external the a capital. XXX raised we've million of is XXXX, business beginning this capital Since nearly intensive of knows, business.

took the in million like listing, placement the equity, also bonds, XX backed the been has and debt the place space we've forward. continued at that loan, of looking that on Bitcoin XXXX NASDAQ in we've moving NYDIG. private early but loan with of in Some baby and and we're our a markets, efforts we that debt loans seeing done infrastructure like that capital where is What the maturation is, is the are focusing issued raising

the that how XXXX. growth next is finance us to in slide, which takes to we're So our going

equity, megawatts, then to order both into combination capital the of three additional levers we're bitcoin. in raising Phase now, selling We a as have Right fully capital which need X roughly a more bitcoin. includes capital to through issuing in raise So can XXXX. infrastructure, million build of debt we Helios, we and out And times, on which we machines $XXX of capital. additional bit the I've equity when to don't XXX debt, complete and and we many said little plan anticipate pull

with financing. see particularly As really this providers the maturing, market XX space. looking some debt Galaxy, three, the are strong months, last strong lots to the to to capital and with with. in They're into -- relationships over machine is with including deploy four that look miners We've looking the NYDIG, with last we over built who capital, relationships deploy new space other folks reputable of all leading years, moving to and the opportunities,

a So and really we're good on our side focus. that's position in financing the

debt. In financed of sell bit terms with We as selling with little bitcoin. most people know, bitcoin, much and of I didn't we XXXX, equity, our in a think growth

However, different going to bitcoin a portion monthly our expenses growth fund a cover forward, of operating selling and approach, we're our plans. help to taking and production slightly our

our think approach to bitcoin. to growth. sell history bit you fund about and costs going doing to if XXXX, had help right. mix All company any. sell the XXXX, didn't a of we're a taking cover This bitcoin blended debt, we a back to XXXX, of operating of and we So the year,

of from our on part a story, we Moving that's to key we are, start, part part mining why a have. key located I facilities our key we ESG, who said a where and as of of the obviously,

is capacity are a First out Last the from Quebec, where carbon where put and machines year, panhandle, of off, Texas the we the climate strategy, up most running power. hydroelectric wind became coming now in power, generation in neutral.

that. to out report XXXX XXXX update coming that, to is climate the and in strategy space company on first The forthcoming that. do alongside the

citizen our working really On that focus good the in. S things, in corporate side we're of be of side is a communities social things, the to the

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XXX During construction we about at created Helios, the jobs. construction phase

have Most We of hiring County. -- jobs full has place X XX the for taken of in the that we've facility. taken been time created Phase has Dickens

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a also to we're quickly been made as back to We that's have is and -- pool, completed community project contribution since that the to community the community with as refurbish XXXX. working the get That closed and underway, we can.

experience On who banking Gow, the government Perrella, a CFO. and Raghav and our a experience, of of management the former is side with who great In who Sarah three asset background members. XX strengthened we've is in a of things, background; Directors wealth Maria finance public new and has a last brings we investing. months, of Chopra, company Board addition the added has

in we're on a So great Board They're have that. really is the grateful very a place. to and them very active, board. stronger because of the We're company

that. with right. pleased very I'm So All

those before say let the and are really the Finally, disruptive ecosystem Labs, in looking us the large. have Labs for Argo -- like to of now. I Sebastien it participate person ways informally Chalus, six this we've you really, for always last felt has started although who's Alex. that for about turn system the and been they our over blockchain, me year, Chief informally a sectors We've there's well, word know years opportunities Strategy Argo company Web at always Argo blockchain of a we've And quick X.X Labs. codified many It's called now in that team group led by ecosystem. We leading to Officer, Seb,

that's us it is things, team bitcoin. the side started generate mining of on that our was portion a bitcoin this generally, simply a of side innovation of So or side, the outperforms holdings, the And small take uplift for holding it's non-mining of team additional small holding a that simply to and bitcoin outperforms things. just the like that working goal team

well. assets. my They're on XX% Alex That great far, right. a allocated for That's over digital slides. him. so our quarter-by-quarter total doing basis. amount going So, a they it that will we far of couple hand have job so to is I'm All the going reassess to we've of that a for and allocation them

Thanks, Peter.

great the these up lot detail. That's and £XX year. I to a little been by toward the this the in it's also them already, on both $XXX going is know came I most figures through mentioned, driven So, the touched actually which really million, it's of Peter's in bit worth increased more of bitcoin increase Peter's price, think on a year. million. Revenue a our year which, but been in end capacity, of

margin where we Petahash XXX full that into access And we'll we're moving into additional with Peter's already Helios that then that's have miners. expansion Mining said this, So so course, and also, strong. stay go the there. directly to Again, of that among of the as XXXX, market leading of Helios. FDA, what's we see the power. impact remained the very low of bitcoin And we cost to intend why of

but of cost low operational going the have by to the machines element power, And you've to updates, margins tightened in at building margins from very bit, so, enviable most we're seen the miners TAA of as access that which is XXs, still our And out well. well and little and industries. into stay also across that immersion the having that a we're

strong That's at million strong, million very meant the gross £XX through year. for profit, very XX%. that's for to $XX So

we the strengthened we'll operating terms employee in we've With team, business. also, costs, team cetera. the on gone owned In the increased. model, the And yes, operating have grown staff also executive expenses, strengthened more how and -- management and as to and Peter's we we've within of they it through costs take moved et of terms we

seen expenses So, the there. increase have an general you in administrative

do Additionally, more more dual incur professional more listing, cetera. with the consulting fees, fees, et we fees,

cash going as that about million, is those based is well. I'll there the on That or million. of on through your draw $X.X actually, the that see also that's cost attention expenses is that's is you'll £X So costs operating charge there, the taken share payment a charge £XX there actually flow proud through of achieve not Still really profit, there. this down a that XX business. us million operating pounds. expenses to It's takes which adjustments. total And year, accounting million the to we operating very which healthy of, profit, our the

In other debt. and taken on some terms of we've income expenses,

expenses down And some £XX which have to different we et some So cetera, there's of there. leads increased our million. net then, income interest re-evaluations,

proud So continue phase pleasing on a year sheet. and to continue we're a say, profitable level. well-positioned really the we're really The and as I very And balance one growth of.

Peter private sheet. has as which said, year, of placements, this really So number strengthened have we had a the – we've balance

you year the got of sheet, stronger end of very in could net. our see strong balance year, we've So terms the last than significantly a

installed assets prepayments $XXX or we've into with gone actually that used and put put up the ground, worth that and and put £XX order. Bitmain there's million we machines, million for about machines on on lot we've of the the that mostly million cash of actually the There's machines, a great raised? the we've the installed net ground majority to the cash into for purchased. $XXX has have what we done well that we've of are So are Our – either the – And that so. machines

Helios, had about the back a the in on in during very, down. interest year interest XX%. rates that's pressure rates as and June has the seen Alongside have to also bulk in impacted our there's we which seeing number the fall said, bitcoin well we're now around move asset with what cost million, I interest order. significant million And of that. continued remember year. Peter actually £XX now. which seeing At X%. we able rate actually that loan part into backed of forward significantly question XX as with XXXX, interest the been invested the for And and capital. as was Bitmain come was assets of heavily and the quite gone well-placed we – to digital selling We've our that nearly that's that over are So and rate downward as we're there how that HODL, of we're continue mine. over also being to end, debt a we also some strategy that, are to grow of the We've of And options we've are first obviously –

sat. So you, look near future. forward the look very I'm the optimism opening back coming and we're sir. with year we as we excited into Peter, see in pleased we forward, to very to where very with And Helios

of will All before now to answer. during presentation, the I'm to Tom our the to Divine, presentation on And questions both on on. Q&A Thank in group you, side, questions side. going Alex VP the from some the and from come he's right. the out invite section read then Alex. Tom and has or I gathering Investor been the and Relations, chat going

the We've side Thanks, of Yeah. Peter. been in, getting research sell of some as lot from are listening analysts. who questions well a as folks

go to going I'm of So through some those.

is So His the uplift of B. target announced XXXX? from Jason immersion question the our comes included in that we've first is, question X.X Exahash end for

Jason. Thanks, right. All

So deliver. our the trying Again, no. conservative to with we over answer make projections, that under-promise, we're is sure are

from uplift an does Exahash emerging. not include X.X the So

Great. Okay. Peter. Thanks,

of miners? at do Our Darren with sort think can other Roth Intel Capital Partners. Aftahi next give What the question comes you versus from supply agreement you advantage

the question, for Darren. Thanks

very much custom shop. a think, kind I and much of And kind agreement not factor Intel, you really which our like using you're the Darren, source a In we hash important to will of stable we have to a of when know, ability advantage as rate or cheaper machines very be mean rigs. mining plug-and-play the cooling. a turn our a our granular, in plug-and-pray to That's This that, optimize company. with supply run for chips, customize mining. is growth, in control, terms is a of very mining access immersion better will us very We a

with immersion to we granular allows of cheaper can more the get more get so that those into and our do machines And that put can can build access we have own we our can environment. out can chips we to custom and the rigs, and operations. mining So we most really the us our an

Great.

XXX you Could equipment explain Is preorders S. for the agreement with electrical for Thanassis from what needed it financing megawatts? entailed? NYDIG comes question next the Our equipment

Sure. to want take take You to one? Alex, that you that want me one.

back take great is have ground a to the NYDIG. moment. to Yes. sector. that with traditional really we have compared the We're interest electrical Absolutely. pleased the X.XX% infrastructure at for again, rate, in it. competitive NYDIG And partner when that very with space. this I'll on the It's is

deal Helios opportunity initiatives. build debt it’s for really So provide out further for a it's And something as an will a us. forward collateral give use to us good for we that going that will be further to able

Great.

ASICs at question I from point? putting you're go are not Our full on have detail partner from a Joe systems more Do comes next this into you Canaccord. Intel? purchasing you believe the a at bit Could design they together. Vafi

Sure. Thanks, Joe.

how I'll So bit a on about little a he with mining background and of you custom then the those a to Intel, little came rigs. work give -- bit

working of kind work with of mining you ESG ESG very said, reached what around and the we'd of folks doing, interested." doing walked what all side fit in number space interested that chip. in we in they to things. "Hey, been miners in out we we've "That the the said, we're Are back So with that course, us?", "Absolutely, side line said, QX we're And to our we're and going to going a and last things So be what said, of on only "Listen, of of developing a year on are doing sounds they we Intel a -- be values great. particular." through with And

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Great. Thanks, Peter.

at Our it do Texas do extent the question available pre-submitted was with and mining next To for new has to limit ERCOT power what Helios? rules ERCOT. the companies

question. Yes. It's good another

this is think So something that is we affect us. going to not

capacity. full interconnection our of have agreement XXX in megawatts We the for place

also a this We actually have just ERCOT. week in with with solid Texas. really were relationship We a at them meeting

you a to have They Power. Power mining folks manage relationship a be manage they the they're working also client energy want that services. they in with. flexibility, We load Priority Priority in agreements, key really as an industry manage is Texas leader interconnection of PPAs, power

getting ERCOT, what's that not I already miners the encourage in we because changes on. exactly need. Texas that, have that, relationships, power that those And power need, place, about of because they that sure we worried in getting to folks and are and to think any ERCOT make going are that's the So we're pieces our they

region, very in that important power load, a probably which made. load local chosen important for generation really very has think importantly of but And high really being most I very a for also particular stability. there's grid region be this lots power, little for that means makes demand to a our for capacity, flexible and low but us, we've

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Capital next Our from comes Partners. Aftahi at question ROTH Darren

during Helios? machine is core how swap, do you that? the of filling downtime that On your way initial mitigate And

Yes.

presentation, a this little that downtime. covered swap I we in avoid the Darren. bit structured, So is The so

So as out Core machines are them from already the that then we're we'll at arriving, the installing machines for be swapping Core. are and

are already machines at Our Core.

So we've the any -- consideration. into of kind part as we taken structured anticipating that have. downtime. deal we're not That's We've of why

years. for facility. captains the run be our But to them to with be with own want friends we able have and We a those many relationship good We're Core. worked We've with our guys. ship own ultimately, of

at all capacity significant end machines So the end in year, this you have arriving degree tell that already what from facility. to an the relationship of And that Core be Texas. started to an coming way. is at July of By a that, have machines -- that those amicable in is will are we'll all those I our of can Core

the installation is underway. time also So of that Helios that parallel process place in -- at will starting to arrive the at right already that the with And take the now. process as are same Bitmain machines

Great.

Stifel. Suthan is Sukumar question next at from Our

the Is needs will be money this this spent for rig capital On on? what incremental or procurement? one, phase infrastructure

good a Thanks, It's Yes. question. Suthan.

rest majority is machines, main you the of Bitmain three CapEx buckets this there's then we've think already machines. it. the of So there's and our obviously, paid that kind The about there's for Intel year, infrastructure, if vast for, of built infrastructure,

you're with If pay to as construction you you work need folks, them building.

much So infrastructure Tiny already but that's pretty whole not left, for. paid a cost bit and done of lot.

the Bitmain machines, The machines, paid second, the we've on Bitmain XX,XXX order.

north of We have those. of two-thirds paid for

And those for. are last piece then, majority of the Intel paid is the already the So machines. machines

of that of the Alex, do that? for machines, the relationship, you want deposit -- the Intel started with that majority for capital to be be will a we've Intel. We've anything capital but side. We and machine add have majority will to the

No.

you've pretty Peter. think covered it, much I

As you of left machines. is say, majority majority the significant a machines,

the them, stand thirds the million. said, Peter main over to the X and Bitmain cost, with way of Intel way X million not thirds of we two as through that today, two payments As is its through looking the forward, cost we're for

Great.

at in on others the option and and a wind some gotten from at [indiscernible] times few own we've Do solar of Kevin chat. the our fields you Helios? looking farms question, building next Our intend

for Kevin. Thanks the question,

is yes. solar renewable So it's That's there. the so as a at great is, answer development an there's both wind. spot we're much Obviously, and In that the for option. long-term, looking short Texas something why for

agreement well, closer the two develop of this this rigs then, to Intel develops, space, our grid XXX you're key, we as the with. you're But industry And on seeing power. the as the And is seeing three the -- phase we're really In that megawatts we terms miners which with really getting deal. now developments. in short-term, interconnection is key remaining that, obviously, using as XXX have megawatts focused next

You're getting to power. closer

presentation miners You're you on, closer because And as that going to is see -- and piece see last get capital then, coming in and to start the providers and closer the of to capital we've more and key, the debt power a one closer side. mining. space, this to key more getting mentioned into

are to things three a pieces are miner. those those happening, the So, be all key of because successful

future. be power you to And as so about obviously, miner in need generating from renewables own that, is the thinking a something your

give comes bit of can quarter you of per Our the Intel you from a Can mining cost machines? intel the Intel rigs? XXXX Petersen. to on chips? come these talk Jon us little expansion Is any terahash your all likely fourth from question in And mining about indication more the next

Jon JJ. Thank Jefferies, you, from Jon.

year in in growth at short, will coming chart. the quarter -- the going as really this our in to yes, be rate the is That's hash Intel, saw from fourth So increase from Helios. of coming where in be you

we that In terahash of able per cost a terahash, terms share to per yet. have don't cost we're

right shelf the lower the then very then -- options be -- terahash now. per off cost are off optimistic that will shelf the We

and that's so to an software, to the etc., ability be etc., piece design as the it, a able well machines And as environment. optimize of over control the of key emerging the have in to

Great.

Labs Our HODL is at et Atom, on earning your Are any or Solana, XX% next way such from the APY as chat submitted in Argo Thanassis. from cetera? Ethereum, staking question actively you

Thanassis, Thanks, again.

a nodes portion significant and a is that staked is and is good guides in to validators, APY. yes, in our DeFi, way So an a of ability us in earn HODL deployed

Next miners you if at are El-Assal question impact -- Russia, are in we where drop the on of Ramsey crippled How mining you Russia in by is sanctions how thinking hashrate about the Barclays. sanctions? global from see

Yes, it's question, a good Ramsey.

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a might significant. I have might I be think it down terms think but it – things will that don't of slow little a growth, bit in

lots rate miners, we'll is United that hit we're traded be numbers of I now of to States. growth hash particular miners going hash the lots have publicly they've to X-ex at date, and And this those see and by if of numbers out think said watch they out. to the put place have put right

is year execution. XXXX is growth. us, was For year of the the of execution. year XXXX this of the

really in number as over times we couple been a we on, I making put under sure XXX% that and can delivering we've call, if it. of a focusing and out, So, we're said, that this confident meet promising

chain on issues impact What [ph]. R business? Abey the had from comes question next Our have supply

bit stay around schedule are Definitely, little deadlines, meet Yes. to still are with Thanks, challenging global our on Abey. tough been supply it's to a able the Healios. more but chains world. Listen, we

hired who now out, logistics who of as team Argo that at an XXX of with us we’ve expert full is and working chain right time have in that someone we're part works We on world. building recently supply She's pieces. that that

than years sure take It's miners. seriously expensive into. XX% helpful. very And for lot for -- effort two and been miners. more that's to ago we to shipping now of So costs it's was an XXX% We something saw a approximately in it increase shift put

we've we're out for the our But of of they've impact we cognizant had them that's building to feel need an be been efforts – team. when that of because sure, So while like weather to something we our etcetera. budgets, our able

Great.

Alan build-out Our be Helios are spread at will next you Phase Howard be about at thinking three than over next from X the Tennyson. question expensive How phases? comes out less evenly future years? Will it the it and for

thank for the Alan, question. Hey you

So yes, Helios. we listen, have a runway at significant

XXX I megawatt, a As big said chunk fill. it's its to

building second our infrastructure and rates. on then and going the costs are first on focus to We CapEx there the the

it the done We've we're of as expectation in is, In expensive. – the relationships Texas some of to the also long lot the put pieces. right will groundwork I those a sure yes, We've of are of less as big We've learned, pieces the lead prepaid. some suppliers. relationships, infrastructure the right place know getting with in already terms items the for grown. transformer things, we've have I in our already be that mentioned make of side right

less it So yes, Phase than in terms expensive of the infrastructure side, expectation our is that, X. will be

terms per cost with have again, than is to thanks to lower the rig first terahash In will side, be it XXX than expected -- megawatts. this our of relationship the it for Intel, been is

have Are countries think competitive a from Luke cities comes concerned you and question you involved P. with infrastructure? or next in your getting do with you mining advantage Our

Thanks, Luke. Good question.

I Worth. think with I referring recently think, probably from news, you're to the happened what Fort

That's positive network. thing. not whole general, a believe we're about this as countries decentralization. the In see point the concerned We cities and involved. overall, so And getting in we of bitcoin

mining clear current infrastructure, with experience, with have our competitive advantage We a our future infrastructure. our with

we're space like incredible of the excited come. really that feels to all little years slowed charging markets, I'm and under the a equity about the momentum space has. the of excited a year to have markets ahead. while growing and me crypto And Even about bit in they're down general the listen, it are So, this though pressure, the lot,

your Our you options the Can next We've Brendler the Davidson. have D.A. and that debt mentioned? interested the that? Chris more you terms speak about banks on expanding financing traditional question comes more that sector. at become from give you Can also perspective improving in heard

hand over it one Chris. question, for the Thanks Alex. this start and I'll then to I'll Sure.

-- out there's terms Just ago, them options. mean was are basically than was that debt no of months relationships are -- more in of that there with there XX financing ago there -- just XX lenders, now months I

you've got established companies. of very Now a number

get terms earlier, as to space. looking folks are Alex into the new getting got said better. And You've

market So, that they're who more are options, lending say impacting selective about conditions lenders the to our financing be to. I'd going

a said, if came your new XX think and I are you facility you I'm megawatt name a opening out minor, place in, a you went you hey, and to lender.

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teams existing that I that in to place, records, going are able that grow. that relationships in track think miners are think place, be the miners I to have have those have

think scale yes, dipping And they're matters matters. matter. and reputation toes. heard but Relationships we've I banks, from So their traditional

turn, time think a I those are think They not lot need they it's are a shift. I big relationships we're still -- yet, effort still a -- there's turn. there those take long of to to and

But they're to there yet. way. get ready quite their not they're so on And

to just I new a comes to. there around to Peter they're -- in Yeah. is partner diligence moves of, more who what echo market. the said terms planning of lot they're are that into lend that, what planning due And who a with, with lot

to we more prudent the that. take and have show and very But So, stay our of we strong well. that on We've a prudent We stand we we been within think things. got and EBITDAs, et sheet good all really is track room debt don't record still more We've stand in position, internal important of those amount that. we on very wisely. have because debt, et ratios, as to bitcoin cetera, that today, used without our used balance where cetera, we've a -- significant

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at self -- the could almost -- and debt, and cetera. we look just et mine use fact, using In parts of

to said, going we our that's forward. going As be process

really position into. the forward we -- that market strong. it's So we we're are And to strong in debt remains on we're looking something -- move

King F. close so getting few a questions top we from hour, have We're the only more to the of Great.

general, Given unpredictability mining crypto and different any volatility price blockchain opportunities or your space to the of diversify in plans you of do bitcoin into capacity have assets? the the

question. King, Yes. Thanks. Thanks, the for

that the of Labs And Argo Can't at looking the at. thinking point share they're there moment diversification. at. But, we're avenues it's what look to always main is Labs about. other something exactly is exploring the Argo So yes, always anything is team

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Great.

question there other into plans diversify Our last hosting to miners from at Are C. Helios? Gary

Gary. question, the for thanks So,

expertise of at you've "Hey, people with we're our We're have, When of door plan with got your a looking and say, power now, we you good In big facility like ourselves. with that coming we terms with at We've our using available on -- they in of take that miners, hosting other for conversations. mining, opportunities. margins we had some -- on and really the team the can online, mining. always the we machines?", lots feel have, the for knock

can so So, ourselves. much use as power as for to we want we

having and folks of report the to at But future, opportunity significant right potentially any in Helios Potentially, on some phase? to is we're into now. an the conversations. those nothing some there host in way Moving next

hosting That's their closing feedback. Peter, I with that much. you a ask and to if for wondered wrap will engagement. you before I investors Q&A. And and provide great. up for for comments may Alex thank I few so, thoughts redirect very much their just Thank Tom, to very you and But Peter, expectations your you get shortly doing And with. indeed

so and of of Sure. us Listen, company don't the in next able weeks I got to Hopefully, to I with big some least the people engagement. -- answer on mean, there's media, this turning months. notes, it's many this. today but we of being of we lots this much always know -- on that really came social how few things people sending about everyone. us We at shareholder had things the great it. call, Thanks, And one is there's CEO some coming we've things appreciate up were engaging the out. like questions that

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to be time onwards Argonaut, an say. would so So, it's and I a great And upwards.

your sure take opportunity Good complete, Alex, your will Could good to will the now to Thank this provide Argo as you. Peter, the and can on your company I'm better very Tom, thank redirect expectations. to morning US, please much thoughts order updating in for indeed behalf you grateful and team to you, the great. to in from the thank but Blockchain PLC, there presentation. feedback company you much indeed Peter, investors. session, I the for afternoon most like few That's be understand of not This for everyone moments the a would and attending to today's you over very ask might really close time automatically this investors afternoon for in UK.