Iris Energy Limited (IREN) 12 May 222022 Q3 Earnings call transcript

Thank you for standing by and welcome to the Iris Energy Limited March Quarter Earnings Conference Call. All participants are in a listen-only mode. There will be a presentation followed by question-and-answer session. [Operator Instructions] I'd now like to hand the conference over to Mr. Kane Doyle, Senior Manager, Investor Relations. ahead. go Please

for I Lindsay Senior Manager, afternoon am and Vice Good Australia of in Anne our conference Ward, me President; and Investor Roberts, Daniel President you welcome ended Doyle, today Thank Interim call morning for for America and call earnings the Energy is good the Kane of in Co-Founder third those XXXX. North quarter to March you. Iris those the Relations with of XX, and on and Finance. Co-CEO; Hayes, you

webcast please with ability Before this a chat we begin, note to participants accompanying call question includes is and being the live box. live presentation via ask an for

via actual have For presentation. disclaimer dialed the information remind Listeners that you the or factors statements from the I'll of assumptions and undue like expectations the two slide and over to statements could call call company. Thank our Dan in you listeners those to based materially a differ results Energy I'd certain forward-looking not constitute refer forward-looking elect the Please conference on that to forward-looking to statements. reliance statements and accompanying place information turn during presentation. Dan. on within are that the question Iris risk make and moderator cautions on that cause now the may we certain Roberts. you after phone, can by to are ask that

last out you earnings the few It's What day an a Thanks over for call. or us week. call. earnings interesting been to Kane. joining days Hi everybody. on Thank our certainly have there

start in rate of terms the discussing we're terms where build-out. where just In is I'd to hash of like at

year. to we and bottom see would conducted at we we that first operational left-hand ahead to NASDAQ IPO bar, today that be expected delivering about If completed was site Columbia. now aware ramp-up. execution that look second the November we now site We The against today we December If as the mid-September, last deliver. be Canal our Mackenzie, to said then next was capacity hit the peta-hash. in for it's operational It's XXX original reiterate operating And peta-hash. XXX completed we the year are British last at around opportunity what site commitment at by Flats. around and spoke schedule. another you'll we've on April It forecast side, of of forecast XXth As our our

of nine The first ahead schedule. in again megawatts mid-April, was energized

the go more the a of previous will forward, the we their reiterate around again bit terms look detail little and into specific Lindsay ramp-up profile, guidance construction In around specific ramp-up expected sites but next on and deliveries move Bitmain accordance our early the installation and deployed then chips. next by under of year exa-hash with XX the to in XX full we If contract. slide. the exa-hash

met only outside not of have to has bit exa-hash, of will little banner Iris similar. a a of you be under more level talk previously team, operating managing operations record slide but as experience the track Asia next the businesses. it's Australia, not billion globally about obviously, energy just our infrastructure delivered building, and but within In obviously, running a who Collectively, Pacific many the deliver team's of the of in infrastructure you context in and terms and of CapEx and $XX Exchange. and of the in our projects, leadership or now listed the and record this have over but infrastructure that seen also Ward, decade -- Stock have site at the a more of Yes, $X got required XX like business, our looked management on Lindsay globally the people we He's who team information. track Australian decades about billion XXX David should region, Bartholomew, Iris. energy experience Iris, about over many well. of President would

a ultimately, times yes, the it's industry bitcoin assets, mining it's of energy operate, task infrastructure centers building similar the having we in just data in guidance. centers. done team we're that for foreign being infrastructure, data it context So, overly not hard and But many the before

We but We the a and them long day, it they're us are At We benefits shipping thrive the of previously, operate, extremely come a building the out focus it assets, doesn't really is believe with go around own see of In to the as over don't the extended all at financing. as asset through we've terms end is that don't day-to-day an terms just build recap continue get down tends believe time. centers. it's volatility data with in them multi-decade proprietary we're important operational up to the beyond up so to design asset also life in a we of after to XXXX, to building, performance. the bitcoin continue economic of industrial platform We us. and term of most to Recapping And sector And for spoken as know, lot building design. where go have difficult again we're These and the seeing our we we're that. Yes, for near data see. for to ventilation computers, to term. own possible, looking importantly, it's we how We've valuable life. it transformers the with and airflow own stay. warehouses, containers. seen we've monetize with go do a for very period lens and the We been our volatile and centers in since it's, we're of, what our here Will do I proprietary long retrofitting programs. bitcoin. seen

NASDAQ other mentioned number that on the IPO last conducted assisting. on screen our November. Canaccord, IPO a that As led we've JPMorgan, players mentioned of Citi before, with we

a six to they've continue over We of all have those with supportive, the and months. very parties relationship, good been last

XX at CapEx where funding to I in totality. we're about of, previously, In it's exahash, billion mentioned in deliver the terms of $X as

So not it. cash finish some through balance billion formal reinvesting that's from We're have debt what's at in we of already secured the to debt looking out the and terms processes at We're funding market $X day bit of But seeking flow. underway. current accounted operational to the and day in multiple that additional total. happening to debt there we $XXX We've moment. of complete and say, can immune a equity $X billion for start to and that little underway around million,

point. And realistic, seen by We the we're of That's that but daily now, say, the secured equity. over feeling ring-fenced performance, we that here, of right two. haven't about it. be balance maybe the computers the sitting We're not the today them procured. to won't impacted on our good sheet, operational volatility or have a we last pretty just they flows, The strength the against at non-recourse some our that week we're recap, cash generating, balance debt all some that basis to is all is

deliberately. It's So done sheet. very strong was a sheet. it’s clean balance very a balance It

now flow is record, that service would we've recognizing a multiple the we looking demonstrated top of and to time that to in cash now funding as daily that, track said out sites, Now flow debt we products. debt to cash use building on layer generating

So very stay on heavily the very pleased tuned. sitting where it but with today. We're obviously here moment, at at, focused it's

this to the it's say an We least. terms of a IPO intention. already listed interesting in We're what and we earlier you that's have journey our a do as of to be presentation. rate we I've company, on the this In alluded call where been as we large hash doing many said would at we're And as are at do ramp, would aware, delivering.

detailed endeavor and do. will say also item of doing monthly reports, construction, just to will operational our but procurement the with published we expected operating on We commencement metrics, terms monthly not lead individual we status of site-by-site in what updates continue date. We

to in that to our down, spend see little I'll these trading this what never a seek projects. can day-to-day. over we'll keep the an times basis we what we'd keep journey would do time the of of slide head XXXX, you the fairly At continue cash delivery the position, of We're today. the As said for and bit a comps. XXx interesting But the are encourage treating in execute XX day, contract the the under exahash in doing today. it. flow a discount have just September sitting business this from we lot we as We've here obviously deliver even and equity shown year. end a of does everyone early a I on to at sitting next are But chart, market we guess to by let alone and

As we're that liquidating now considering coin. balance continues selling $XX,XXX at to sheet. you're on selling a We've at all their bitcoin aware, vindicated decision ways, daily. selling some been Bitcoin be $XX,XXX with In coin, the others

here to at coin. a $XX,XXX sell will continue We

pricing, of I the exahash rate, link of your the the the where price, essence encourage business. around model. market bitcoin own hash we that more it. exahash with calculator alone everyone us Again business now XX understand strongly reinvesting digest a Lindsay for are can the I extremely day-to-day about the and in et bit will pass exciting have exahash everyone ignore power it this end a building contract. there, go zoom notes our if little gyrations global day XX pleased be the you and mining flow the who to bitcoin And Ward, a at and the through sites business the -- XX cash at flow assumptions and We that's noise note, essentially is individual that the cash out under and producing of the cetera. the let input we operations. President, will involved in to to a to out, On am that costs There's

three XXXX the diligently well business my a how chain also along our engineers strategy. overview our a -- We're diverse a great between operating we business as across we're geographically workforce. focus first a And towards strategy, our support QX sites. started about, internal We're sites just to bit the today, just X.X down additional we and those our a construction on power I our operators. having we're hair, British for that a we've Okay. Thanks, and Flats Dan we It's of exahash operational good And our not then regular execution how comes each and schedule, to America. gray we're we execute people at is the that execute sites, of basis. really year. assembled, good we're We're In advancing to executives, fast-forward fairly to our And staff of deploying construction it's of really talk working of now you our XX on the about challenges, pointing the of teams little three Columbia. supply a Canal is our of on Dan. the that managing with our North as out other. is give on ESG, sites, has how Critical It mix spread today is and to bit long quite great all we role And computing mix simple. proactively pretty detailed by welcoming three senior exahash teams. which working thing talked of operating We've fun site in assembled. building view, and is that When our ago mix of enjoy way, we've think to and on my to that a deployment a moment. focusing how youth, construction grow got success the continuing quickly at another perform

facility just Flats the our consistently starting So go It's more DNA. that's -- hydroelectricity expected little we was the running a talk predominantly in in focusing you XX-megawatt to and really at It's to I'll X.XX, Canal about how our facility. -- to operating on on detail get and picture optimize to and and which powered was we're what site, aural there our Canal now trying first construction operate the really our site. we a about X.Xx percenters it's our bit of there's with which exahash, exceeds a sites, that's really in one That exahash. by previously and X.XX And Flats.

effort invested into we're proprietary a so from of and of. lot is exahash, we to We've see have And we've you time optimizing X.X gone up X.XX a really which center. proud and data highly that see by It as efficient we're bitcoin mines team efficient that at really recognition. is exahash ranked in Canal some getting site analysts. one top of our particularly terms pleased per consistently to been of independent the Flats And miners that on design

in In of terms of center a continuing regular basis. are improvements of things to optimize how looking Flats we're seeing center R&D put and time things it. that and lot data There's how trialing Canal in we operate. we primary excellence to we facility, our can different design, a our an and is effort on our we improve looking at at lots of

we One fans cool. lie and to simply don't of our our our keep that our on big advantages is computers chips

temperature. pitch exhaust fans in The they fans can You adjust of top big large that to that their the see ambient roofs. speed on the the of

And really miner down optimize of integrated that to performance and system. key ancillary design consumption. that's the is power up ramp they So and success our optimizing

We're in and winter. on the mine throughout and standardized we've we Columbia hot temperature impact the up investigated the Flats Prince and to of way has area reinject trialed and And that the starting our themselves. life optimization British improvements down George to data Canal recirculate weather the and also summer. then great in well And a us winter both taking the in that roll centers from and particularly of a design in consistent out out Our coming Mackenzie, one those has and Childress. innovations chips exceptionally back inlet in that into now in the gives of extremes miners, that is air performed our which

give a lot facilities It's that of that we've facility facility. the the and little extensive Another different and schedule outcomes materials key quality quite is know-how got contributing effective at delivering themselves delivering in Flats the Canal bit does us confidence which a point for is to an and really really in fabrication a a price. and us that's

British one Columbia-based advantages competitive our our for again So of that's facilities.

capacity in, also So Dan set that moving first around X.X day since well It's of commissioned Mackenzie. successfully April. that started. is and This of exahash in It's on exceptionally the out. mentioned British Columbia in to day operation ahead schedule. exahash we well run It's X.X

and site also there we that and see We our haven't operators And control Roberts, have to the of had right. was the three months design lot a couple you a of key can of a think hiccup. And our implementation who inspecting the lot time co-founder I spent Will on operations really systems says site ago, on a team the there getting and the before went live. right

this continues. So year. remaining the online initial come of add schedule. QX exahash construction X.X of online XXXX. We'll in at will the the Mackenzie come exahash balance We're progressing calendar then X.X in that will And to

we'll hydro it's British have So facilities like when predominantly Mackenzie, at Flats we're X.X facility, so finished Canal in powering Hydro Columbia. and our all by energy exahash our BC is powered

along quite it's Again George. Prince nicely. is moving site third Our

there You are to to data The data We'll steel data for on we've our third our the progressing We on steel and center. once that move out foundation got quickly buildings. can center second start quickly fitting the move up see erected and we'll very works in centers. then first the other the we've data itself. soon plan center picture

that be and deliver that X.X, we'll a confident deliver So X XXXX. and there's exahash further that we're X.X XXXX about that QX will this around in we'll exahash in

synergies came of a Canal and into a drive then of labor Mackenzie our Prince bringing of a quite again people supervision keep from Mackenzie, into Prince lot So we're George. they're and of terms active and coming know-how site. hours an Flats we're lot down it's Pleasingly is George so within that in of getting couple

and we're fairly do So effectively. of how guys know a before. we the consistency together. putting we're are issues, very in seen And things knowledgeable. really troubleshoot it getting delivery a to lot They've They confidence when in it how have equally

the road is an the making site fourth this in second amazing later in I've So down will there the or Childress. couple and week for month progress early last June. in We're our visit of with bulk start my earthworks this access further been good in facility. months. It's Texas

the so, bit certainly, that And of a by really that's embraced in And couple I'll looking And more local on the next exciting. little incredibly touch community. slides.

and will our calendar locked the elaborate XX brings It a facility. in to transmission miners, next Childress back to capacity exciting. is transformational to us of a underway. up We'll up It Construction a little AEP, on XXX contract just it capability is be it go expansion you QX global when have British it our bit year pretty So a together completed is XX but we're We with put of big housing is megawatts Texas combine with company megawatts, well which Childress, XXX site. to for. opportunity. year. Columbia the exahash It has XX% contracted, push exahash by the

it's Again Texas and Why Why is about Texas. some transmission looking and in at Panhandle numbers in gigawatts down There as bitcoin renewables There's mind-boggling the we Houston. ways. are alone. energy miners are Dallas capacity abundant move XX just pretty around go load into So of well. renewable in Texas? not other that There's to region to do the exciting. The really excess

they very lines not so they're to generating down And you've cheap be all way like available generators transmission flexible The before. it Dallas the They really move got power. mentioned on into so as they're near where those to relying want loads. renewable the I large

being signals renewables to the designed the they're is there for right waiting so and coming equally to come And just price market. bitcoin Texas and that really miners a renewable permitted have synergy energy into great generators further between the really there's And area. been

know for is opportunity a which long-term, being supply price in not cap about to to schedule. side our a and risk not chain a I to delivering owe in of. energy really Texas the advantage going just that's to take again constraints talked next or keep of projects and on space execution bitcoin lot --- the us for there's construction so And companies great many The

got competitive I manage real the across position overcome laser part and operating risk, come think and from of to in in very of got We've chain a We've from implement one staff risk lots of maintenance that industry projects management. energy and personnel. excellence We've is strength supply strategies We've of it data puts across team that to risks. they've engineers, a centers, got execution all us mining operators, professionals, infrastructure it's experience construction strategy our world. safety knowledge operational got engineers. not operators. that a just managers. doers We've focus got And comes on to understand We've collective experienced our those advantage execution the And us broad experience the up but with competitive industry great asset real go renewables. having does support got that got finances, when towards infrastructure really excellence. and

supply that. don't from critical We hand-in-hand supplier. is don't But our walk out just have of key to multiple There items on away Going taught challenges management. there. suppliers with rely that chain are one experience us has

thing not what others. learned good is can, That's schedules. with with have don't suppliers, capable over delivery the supply management know business. to I've You've drive work supply got who suppliers, And chain I who suppliers internal to really the to expertise one leave know years incentivize personnel they're doing chain meet

got do to it You've internally.

looking got own it to we ways different doing because your innovation, a what us, standardized we order to we and know George time Equally suppliers because the because sure actually booking people what they're meet great And incentivizing relationship meeting for look suppliers ensure consistent we our got and Flats to in a need of supply we've We a we've lines that lots things And for for incentivized and gone look You've to got really always in Childress. in requirement we're timeframes. get from for. have for we're are that early We've ones order. meet we design, to we're we're Mackenzie equipment. now consistent know to number lines. ensure our that our to driving have our time down delivery early, got into we've we're common a Prince projects to with of a of Canal we making

know orders. And long-term our so in be deals consistency to lock going of there's we're supply to able who a with suppliers,

at So one we're chain that's It background we the pricing, think and think to through you and into around, to committed we're get initiatives ESG. don't are And very of out we and operate Australia us to we're about world managers. finances, that our Anne team, and about come the and myself in serious and just operate. quarter all have and Dan finally flows to getting think I I supply becoming and business. before getting then broader we're very of frames ESG I the really is all over ahead our Will competitive to will fundamental license time I the fundamental to funds schedule of And look management social helping our if hand don't talk fund manage when We risk. aware

environment to just different have looking good treating if it driving And the natural you safely, is of operate. just businesses. company we after do of to now. it to It's so of as cost performance. focusing one on to were no is things money ESG It's just part the working us. part run really how easy It's on,

down project just to just day enjoy love the Childress And community. say come We're contributors the them. to this the to engaging to just many a good up part been of in chatting And number with and so talking and that really community to we there. groups outside it. suppliers potential of our office love community. with the we talking engaging I've people We week,

things been that ordinarily our grant community where so all with grant out we funding for programs We're great. engage funding. community across it's wouldn't And rolling groups get and sites grant provide

and then have the programs to from grant the and firepower money that and help and unheralded and we and or we them projects, actively try put the it's packages local seek them us So governments together funding to unsung to don't the them. out support – like get county projects sometimes come

So again that something is we it really enjoy.

what In we of again our ordering, our what management, terms to day-to-day each it of of part is risk risk infrastructure do. business our the manage risk of risk that the a Board is how risk. aspects detailed policies we have our there's looked in of all of The activities, at They terms and It's do business assessment fundamental various and and day's procedures program audit actively committees. has support in to management. place pertaining

ESG it's us culture management, work, So the a about work our we but since do to us as about those enjoying again it's and is what's And of key beginning jumping have into our provide happening great with the great our us culture and people some about them and our been really business. joining soon really people. for environment within community, it's a risk

a construction supply the bit So around operational update ESG. management that's and little chain and

to Hayes, over hand President Vice to performance. financial very now I'll so about Anne our our talk And Thanks much. of Finance

I'm going the for talk performance hi, financial Lindsay Thanks, through and to Iris. everyone.

underlying both our over in manage sitting million, million what margin. increase review year. mined $X.X our one-off EBITDA March, XXX% our the of And on both As operating again returned the on items our slide, EBITDA gave a the of the uses time of P&L hash This quarter it what significant allows eliminate shows which the $XX.X XXX year that this last rate. this We that's bitcoin, and adjusted. last -- performance. or XXX% the is revenue we this reconciliation increase obviously back It in us we Lindsay, period prior that of mined the increases In slide, you've there's the this is had a is heard to in from growth for adjusted significant on management over our EBITDA year. in quarter, team In the account. a that. us adjusted and And organization been some XX% EBITDA and underlying to Dan non-cash and are

for the is metric, organization gives a months period view growth So, the on look nine this a we're at better which looking the we're much given months, -- better of at going. full how the nine way to the

of is times our generated million in which XXXX. year So we almost first that financial the months $XX.X revenue, XX in nine

prior in nine prior adjusted significantly Our million the million adjusted quarter obviously for was but the that's at XXXX. that just in the increased EBITDA greater and a had year margin was year months, $XX.X And the And XX% the margin. mentioned it's had we $X I XX% the EBITDA than so EBITDA under on obviously, over nine-month over period year. we

performance. financial Our

conversion it would in items Now this account slide, because flagging slide, I you and financial this this a we did undertaken and are our expense. at to in bottom mark-to-market the a the flag just profit was significant is non-cash to have of payments a is And share has our IPO in based notes impact our the obviously, just in expensing But very this statutory amortization our and sitting to statements. and convertible line. with our that the when of of discuss our you account, our significant show relates bottom QX, financial loss profit our and what impact loss is contained on very that that this and line. also, we

and asset by of the the and had as and property beginning million $XX This to done hardware of and of was of quarter cash with prepayments at equipment our well increased ended the quarter with We by assets financing, $XXX plant on mining million both two. total the worth in three as funded million from our increase million. In $XXX from that we end sheet. in cash an $XX a deal additional $XXX Finally, our quarter equivalents NYDIG. increased million reserves the balance assets period cash

increased obviously a that's Thanks. snapshot Dan closing quick all as also remarks. and you result back results, our of borrowings, a non-current I'll to And financial now deal. that for and you current Our attending. of turn thank for

Thanks Anne.

mute. off dropping Just

and Lindsay of That's from everyone for Again, now the end We're open live pleased in. up thanks So ongoing to thanks Anne. Q& to for the your all it dialing myself, formal once again support. presentation

Your Thank first Please Instructions] you. [Operator go Paul ahead. Macquarie Golding from from question comes Capital.

Great. power around in the as Childress, had question – we to much. energized I how Thanks PPAs Prince sort of power power? of that. of associated so I right fully trying with have market crowded And a just respective locations so for timing understand these some there getting a in to now Thanks George and get follow-up. terms with of much. being this closer out entrants then maybe terms in And looking market what's

key two for Prince projects years; British Canal few and then first three George. markets energized last phase; operating there's announced, the last has in the projects was that we've which for been So which Flats, Mackenzie, month Colombia, the

that As days energy that regulated to year. we hour Paul, it's It's QX There's a moment. in at XXX% to Childress that is to XXX of West Panhandle, as every forces we renewable mentioned are our two demand. commissioned Lindsay where Texas market underlying consume subject by market purchase deregulated certificates. in And very the and predictable XX% in renewables in sector, But market. we Texas, market the the then for up kilowatt renewable extremely The energy which is as on the site Lindsay through expected familiar an you the Childress probably Country the you call a price It's the aware then XX/X, a market market is of in year. site the enormous in of for pay same its separate of means of In means be amount this renewable. but market many there's an Columbia, regulated pricing take which built markets fourth of mentioned market more In there. many some is And Texas earlier. British it's that energy where is a nature. virtue stable supply

like transmission that and line like Something gigawatts capacity load the export to to centers XX XX Southeast. of the down in for capacity only gigawatts

region power oversupply in there's So of the specifically which energy renewable massive located. we're a up in

substantially in power Texas hour of the is a around on power levers. expect and through around to to said see what per kilowatt terms basis the to you $X.XX opportunity the In drive specifics $X.XXX that market average we've that can lower operational baseload with prices price, we

the lot the build down power market few own land. a all a price expense is them the those of There's that transformers, is ongoing access to available a in again, infrastructure. data this high-voltage of Not expenses this we but frequency we response can market. into But does the where with our where basis. us day, What of a networks. importantly, dynamically these even and computers hours, control peak the response proprietary price we prepaying in only And just So But drive there's programs to participate interface of we year. our can full control electrical we own stack and line obviates do we the terms for it, might or events market an to an on partly that control levers substations direct give throttle within directly of importantly, why not these lower. centers in ability low-voltage that the operational the demand pull our own infrastructure, number the the ability the we to a chips into own connect

that work market. that where Childress lock with in those price expect list to for short how We our contract coming we're But parties negotiations going we to again, detailed the a Texas as manage for time over a given power, through the had We're bit terms to process. power we've of little in In the a conducted we're where number at we of RFP have the of proposals. months. a just construction, exactly specifics proponents with of in now to

Daniel. that for Thanks

it conversations holding the place just feel favorable this In a like rates? all terms power holding you in Texas favorable with still that the comments, describing in your the are the sort despite dynamics you of that right? spot is of market were in on And you of guess so renewable sounds providers, I Texas, in your in terms for interest West based the this

that's Paul. think I right

focus what estimates, anecdotal zoom small built and and globally. if seeing and a listed really, that's Bitcoin's if the think a bitcoin's out in date context, X, terms amount you anyone's a still any fraction. being gigawatts not power. big look seeing impact. market, at X Texas impact if private, because right I couple we really the in track any We're -- it's miners of to not guess forecasts. globally really got The of Texas maybe a even it's of there. forecast just small but We're we to it's out is all really market XX you And And

like be in looking of that stage there's to before As renewables gigawatts are XX like Lindsay something permitting built. mentioned

up. we're where no prices shortage signals. market-based moment to to that at really respond is a the are So I they likely that a of economy evidence go price Not of believe concern there's any It's Paul. not focus Texas obviously very power. seeing that

I or thoughts hash one of We've bitcoin some if low-cost the power And how was are Great. price locking leveraged I could be rate in volatile more may wondering of terms color in what environment going. could where sort if network your in. there. in a sneak give you talked on about is

So I thoughts your what are projections expect, Thanks. your these levels? global terms on at you network in of get rate what predictions, to just cash wanted

we Look published about problems. forecasts haven't rate. hash global No

control efficient the price to data the bitcoin most believe control and construction operations. center pressures, happy execute the we which on views focus we and can we businesses that's plan the of what a operate can't I'm as what industry. our on pressures share. Bitcoin the can do hashrate, have our we on the We But one control upward and can't We we to some of and business, we downward control in mining be but can what

in those hear challenges. you dust, the the course own of the substantial change facilities, potentially more I'm many of you've people we still simply couple ordering a which six Yes, China. XPs degradation $XX I aware about some not the last hashrate Kazakhstan still given enormous ago in built placed was not been where about large market memory. that to terms per the people of way at have uses five, purely in conducive -- the can there's that may global capacity the large et what's due fact again responds with ones for got its from In then market in six, months they're terahash there's we that shipping even understand then haven't months and humidity, older where that's environment out it's in facilities additional then orders sure new of we I But procured procured there's that seen time. hardware. hits haven't they many the installed industry will fighting today a see dynamic XX operating, still then cetera. a heat, floats the whatever risks. of for risk. sorry there's current reason so capital conditions hardware guess a Maybe quite geopolitical the to short-term hashrate other go portion procure containers, months for the and additional warehouses six for Again some state Anecdotally the the where ones have is happening also that orders portion hardware Bitmain the coming if higher. a of But a at volume. been that hashrate think people of least. think And of market the where We miners hardware the overlay I'm been The not so yet. got portion last hashrate, in The source

in dynamic higher there's looking pressure float the and them world and result I we real to in. the tension try operate of as combined between wanting ongoing with think what people historical purchases and install reality hashrate hardware downwards So of a the this to and

Dan. Great color. Thanks so much,

Thank you.

go Your Stephen with Please next question ahead. Cowen. Glagola comes from

you some comments Thanks for the question. Dan, I just made. earlier want to unpack

$XXX capital still equipment in discuss how conditions, market that expansion current non-dilutive for in can do the you're given the to see any just financing fund And fund to financing confident you needed Thanks. you the you transactions responding for So your general incremental options at? looking are lenders million feel growth?

substantial end we Thanks have But that finances interface at of lot to information can in of market, with we're of I the bitcoin below are seeing daily a the on the in think relatively interface market to isn't day, a processes. a us, Look is of got their in only via to believe investors. We're business really believe for that last of we're business we the which have green look lenders lenders our out business on and naïve difficult is Stephen. going to which environment running. going flow underlying go than a the a to direct we've in in been asked mining there to been starting that we're asked of And the of what debt providing direct get we're I that's to exposure And not commodity. very the we processes the good a really that's asked terms Bitcoin to low lender, impact we're temper throughout and to at is the seeing with terms the that. But and months and looking believe argue any into rather direct and happening, cash center not is floor for Bitcoin Bitcoin looking front like they week when to act crypto-focused and immune. the selling bitcoin of They've to finance. is data not the return what's couple number leverage positive take rate been with to the terms operate. hang they've in around get those substantial this way At

where believe, have of very that where you reality lot different a to lens of equity picture apply at. compared isn't do volatility, cetera. exogenous lenders more a et I are sector don't present lot markets do and of are a a the be like markets type I like But to is again, have to the it factors optimistic that mark-to-market aware overly want we So

way our unencumbered I about hardware one exahash still got no where $XX NYDIG think with XX we with exahash is, closed tend think we've encumbered another X.XX it computers. of financing. I million We just to

$XX So a it terahash. round to

being financing hardware look in at the that's paid to capacity. then, comparables the for at the We done you're exahash, million And in terahash. our team if XX just $XX-plus, seeing that at hardware $XX, extrapolate $XXX you $XX. deals You sector, only

a in of So lot there's deck capacity that. latent

March, being million months, for delivered capital though XX not it's to financing capital hardware is for lenders The size really the typical up. more delivery large a $XXX one mark. checks. sector in case to units sweet year, next of the with reality this and $XX No that check months, around the aren't schedule spot that think are our lock next they're is And $XX is and XX lenders looking doing that I million. also over million today allocate

over these we're of debt So a that looking the sense to dates financing waiting processes likely Hardware structure. is up finance, more makes natures. time finance, cap down not facilities we've multiple and of other delivery we've pathway why the got topco, debt that, individual closer for it's units. mentioned underway, various But which asset

sitting in We've proven $XXX questions like, $X.X of But cash bank. today. a good in aware We've of almost No almost feel We we've feel The equity a balance position. million debt got again, to we're understand got the SPVs. really like, some the very and we are corporate business generating So We're the the market, sitting of we're model. ring-fenced operating coming. profit the in debt. today sheet computers here of strong is there. billion only

you. Thank

question go ahead. Your Canaccord Genuity. comes from from next Joe Vafi Please

a thought, morning. your are. term the is continued your team how didn't big medium focused had business on follow-up. the great the of if start any point? of Dan which like the commentary guys. It Thanks. on that good kind this I'll just comments may Good just of I here, team you where and Nice see on, revisit at we beyond have building And you're of the know expansion of of I be progress the feels size kind to size looking a Hey size model team we'd out. it and then, some at

part answer I'll, Maybe of that.

go sorry Joe, Hi ahead.

to to Dan, a slight sorry then just hand and that about part there's add I question of back lag, that. you. a Sorry, might

teams our Prince George also Just to currently Mackenzie. constructing XXX that put involves in site actively where context and we are

those both self-delivering not doing we're projects. through an So, it We're intermediary.

And corporate start to and where XXX to out need we're you Australian construction of people but giving USA opening it partnership construction XXX, And was context up But we've then and in that abundant there really started also starting because contract contract opportunity we the that it's where starting we've ourselves, Mackenzie we've Prince facility at George. covers the an at self-deliver got there worth site operating not we that Flats, Texas at are the look team. to got when you We've employee got operating we're team. to also facility our that EPCM we'll grow working the has context Canal need in got build two that there when so it saw we're And an put didn't Mackenzie. employed gentleman down at to in the out our Childress, we just have with we only a closely in those an BC. I with I -- Wood on but was Giles construction Texas as Walsh Group that labor projects number operational, self-deliver the and

lot makes That a Sure. of sense.

Maybe add to just a on that. comments couple of

Much appreciate, yes.

a there's Sorry, mentioned. bit a as of lag Lindsay

know. I Yes,

function growth we new corporate here and people resourcing at ambitions renewable program, also our outlook of energy we're opportunities, because not required development we're a I've the resourced what's our construction future of set actions that's looking which that's think corporate that through a deliver at a development substantial you we've exa-hash, and A, stage we're far before globally -- at said infrastructure new in to a that's resourcing. the large the operational one very in as in growth spoken experience of set got the XX if Lindsay greater And going today where cost resource to B, operate lot sites, look line et But as have. about; I business, we've is our XX in installed, exa-hash of it's once and with the corporate given cetera. and of one

business given I guys. least while maybe that? level these your know sell you price one color something Bitcoin of balancing kind great And progress. just right for or maybe see of again, just in here you're and good I at to at still be that looking the it's I it nice spot would That's way hold it. Once here on to guys. think Thanks. model hold Thanks against follow-up. relationships been with selling it Clearly, of where at like totality a there you call instead the lenders, prices that would a down Bitcoin, think And appreciate that.

and call like to we speculating we efficient But on great outside said good not selling of business traders. But as Thanks here in be and is price with of Joe. the want on our from dedicated we we're bitcoin. personally, as use really a We platform. of not we nothing, day-to-day in And the not an We're always Bitcoin as sit being got performance as data high. base. Bitcoin, we've bitcoin. we've don't make, in owning decision believe necessarily open the lot speculating of four, business to described but Look it business a asset sitting today, building conviction years And asset life that we're of the We're mine bitcoin. competitive it. the operating five a operational is be to here today, that I bitcoin business really have advantage a Bitcoin building We've a spent generate to to of every centers capital.

reinvesting of point advantage from at and those line, the it to delivering bitcoin some delivering when more to business we revenue continuing today infrastructure can we management operating treasury point a we're and by scale we certainly a substantial we're let every mining to is part compounding future? Do our bitcoin six, bitcoin Our of exponential the policy, medium team open seven, its monetize in it emerging experience Like alone is competitive as bitcoin, hold in reinvest and we're strategy. technology. but this every sound eight centers generate value Sure. the this the shareholder is really capability in data today believe the whatever strategy XX months believe and long-term over we

you. Thank

question Your Smith comes go ahead. JPMorgan. from Please next Reggie with

dig hoping how bit that color there in little color. slide. spent Good the would us I And have morning total appreciate the much on I CapEx of gentlemen. update was billion deposits. appreciate spend. the you in a I hard far. the can show guys $X include thus well financing all to as Curious you as

get Just of is gap trying to what a sense there? you and the where are

Yes, problems. no this. happy I'm Sure. to take

down to-date, over another million we've then balance CapEx. $XX-odd next be the million. of So, under will cash a NYDIG drawn We've on months million little the be that sheet. million then to in might facility some got $XXX of over undrawn $XXX $XXX close We've got spent today debt bit few

account on and being undrawn That to the week-to-week flow. to-date, amount portion So that basis allocated that's $XX a the profitability the XX in been there's our a is $XXX XX currently come few is then our but plug Mackenzie bank amount that's to us substantial really spent substantial up that reinvest as in unencumbered exahash. of debt capital substantial terahash that and facilities the next in George ability above while. exahash also scale a good position context. towards control in spent a to leaves above cash million. of likely at We've Prince scaling what million around Again in puts portion and cash be of Again a will is been remaining hit mentioned online operational billion And CapEx, profitable a to up a earlier what we've funded to and hardware million CapEx a months. $XXX that substantially $X ongoing I that profitable. particularly of for we're of $XXX through which And over

it If seen terahash $XXX like deals of million. a recent lot you $XX do we've that's at a

the shareholders a early, both early founders a set debt of as have So really us part of dilution believe capital that these look early weather the solutions incurring markets in and position we on that lot as and strategy strong IPO to to and layer and pre-IPO up structure. top as equity management raising of of

Thank you.

from Your Point. with ahead. question Compass comes Chase next Please, go White

guys. Thanks,

for site your -- issues or your regulatory any guys locations Texas issues service in any of you have and on permitting So point? at delays this more have experienced broadly with any

before energization engaging Childress studies our of well certainly, -- with them been been terms of submitted location, number and our now, AEP no. for All megawatts hold up the quarter of In to any XXXX. don't We've a Christmas. buildings XXX months our we reviewed of see by have occurring in delivering of the year, the first plan December current early this first with

all of signed. ahead our in. the connection until agreement wait was We got studies game. We all So in are didn't the

And so, see is to from don't impact we be there any part. our going

of there the waiting not in be Got to It plans out like to Panhandle potentially. lot all lines a the of of a lot seems about sounds able transmission like the export to Are online excess of go capacity spoken of you. renewable to that And then Panhandle, build you’ve to capacity energy Texas. come any capacity there's anywhere.

view kind just of I'm curious there. of plans your So

likely was far line as has as capacity the -- the additional I'm analogy XX numbers of truly geographically permitted, the that of many the or end on a commodity. often But but off happy source Internet. potentially Lindsay. chain and amount day the that in extend transmission and product, the Part there industry, today where take aluminum obviously, the any flexible, that digital that's I'm line over there broadcasting the logistics of dwarfed just may obviously this to substantial going difference not occur there about energy. exporting this, mining, of are a you're in building bitcoin the XX weather people and centers. use new near of load to term, power there's of wish gigawatts built aware supply With of low context the to to XX aspects, being to context so top down another modern smelting, gigawatts to exported asset of benefits been the the it's sit in because in be discussion I'm cost that transmission business was of Look capacity. operation

or there's staying up of go where firming that market, globally, areas, that Panhandle low-cost can in support. other So where we provide it's an staying renewables, excess abundance up the in into

So power. to operations and our to needs of then able load when industries abundance electrons the wind up allow retail, priced, the model. and that blows the market, curtailed, turn can our power, cheap being and through But that to negatively the flow shines being when et that's we give mop business essence essentially sun the market line where power needs, to there's it, electrical other back centers and those and cetera, down down is capacity transmission of

top-tier looking where this would what of at you in that. Thank so, for in the to the point? spot more. if market I may. have optionality additional one capacity decision kind last the you prices are you. one, for for you And And miners, And given on coming Got Are drive guys miners that if in Texas? purchase

we've we counter also bit intermediaries don't and a which At used secondhand we been parties, through Like and We those this since worth lot manufacturers started answer sector. direct of rely brokers. date, units we've to to units, got question the third little operate go that in we've again It's procure particularly to no. contracts. terms new and that just in in really and the from very that warranty, on stating, knowing we're this don't have got this the businesses basically, is a the that knowing stage, how is go happy other units Bitmain sector. units, that reluctant and used business, procure engage of, We're to this taking to

happy the support to in terahash, this Look XXX this we've As can the again the as in understanding, the at like sector last a units? one be Bitmain would moment. buy megawatts to mentioned chips buying to large XX secured, we're earlier for that players to XX two ago for seems five think my chips, building very probably at alluding units. exahash that call, months the just I to $XX additional And happen you're stage, us six no capacity. out capacity need I is buy person of What some paid

delivering more to into We'd look processes. debt market for enough got on, pivots to and to particularly, large, miners. XX%. keeping funding quickly, of purchasing XX. thinking than But about Current we got up not move units here sense pivot is can focus experience we're that earlier to market buying be we sitting prefer the Let's the we number market could additional be in ready capital this be to very believe up why as live today. we've it don't and we've which with front conditions, processes, I line end that on expect a know, us current on focused makes team machines the It's hard the that's above

Thank you.

ahead. question next Your a follow-up is go question with JPMorgan. Please Smith from Reggie

with the of actual build-out facility. My to has the question sector this really do

broader guys you and those I potentially two or you bottlenecks key bottlenecks facility hoping, out was strategy. just could managing you highlight of -- you kind to how related outlined applications. of that for the think three how are build your or I

bit think the in build-out little of I for I the two Childress. challenges you're think -- you're asking muffled, but a

great contractor from just Columbia, Flats, bit answer, they Prince knowledge, team by that managing, we've a design constant a Canal really of assembled understand do We're and chain side. been to way and and Mackenzie, knowledge and a skill a brought Wood in in scale roundabout deal of that Columbia, great Stantec, the geographically, risk, build-out center heavily since experienced and in we've EPCM program George with data of from [ph] who with of we've continuing because in do both reasonable the engineering. a design Childress. distance designs. They're very worked Group. our standardized everything EPC, We're We've capability the and and I think that construction they've British to work day studying and developed one in actual leveraging to -- and risk brought British we've away we

Board and and with really Stantec along going to long-lead tech key support actually here equipment, knowledge our purchase it around a to collective in to so where have And the lucky we're own the where go engineering time we're get frame. now from expertise

with a the to with with we're the I be and live we key We're that. to what XX don't have of Childress at to the – and remain anything comfortable through that. sure schedule mid-December, we we chain the we of very we're they're that's and very or schedule. things our challenges so We're and be equipment. into President the going own to leveraging program, going do impacting There's will have we that down this a supply And in doing Woods we'll our punches. but COO identify do. have week build about of XXX of leveraging to dates things few delivery this buildings first was megawatts number to that doubt there. Vice committed to stage do We'll and we're our our bit that through flexible I issues. delivered nimble Operations fat able that. see roll There'll And that used to And continue manage change no a make Stantec contacts we contacts But

supply are starting people managing the people bit challenges people challenge ramp team a but chain those. now the think are to We've point typically this ground on the got the we've but a of at ground got up. we're So I on is wood so

would And got point be two so feel managed I my at think comfortable we've I this in that issues. And time. fairly that them

are to structure things trying more that power – like are site – in are. trying the the lead the to lead primarily like understand whether of long On related related clarify it's related lead it's to items long wrong transform or as the understand. to the a where or or energizing the also to there just – I'm be just well? something time times can I but totally

those transformers the we particularly the And the No, doing. It knowledge is comfort around ordered you're equipment, pre and design. that mostly correct. knowing Yes. when in to we final have comes back electrical and we're no what actually

transformers that lower-voltage the and for final see that absolute that. And and the coming. then and transforms we equipment than into you We actually large we this need because you early went down a XXX-KV works all design rather ordered step constraint control chain two ordered and transformers. wait the the pretty till could So supply

to we that reacted it and ordered. make of design the meets transformers sure we've our to the we've specification And able modify so been

their certainly the orders that worked about were and fantastic placing relationships they because was the So to orders can they built, slots in the contract switchyard the the again they the to sure with in We've is large were Texas electrical player leverage to they were knowledge make booking gear so and it such get And again are need market the that area. placed advance, executed that that in a they early. AEP. be in get

until benefit the think So I projects. I is are is final think us certainly other electrical the waited that went haven't many we design items but we of early for grief and it causing that

Understood. Thank you.

you. Thank

Capital. go from a question Macquarie Golding ahead. Please question follow-up with next is Paul Your

if much your seems it you taking your Yes. which follow-up. considering to Thanks give other to not be flat. immersion any wanted and for to expectations you I ask proprietary which all to data at color and all Canal center outpacing at can if And can considering? just miners liquid be there's so relative just my know curious are design, Mackenzie around efficiency to seem least Flats

of efficiency might what liquid look model versus your like? the Just immersion Thanks.

Good question.

the our in takes generate the extraordinary. you about return one options, on answer a intention of it no returns the day reality really everything short in also also amongst a first. platform consider is Recall own got flexibility that We've operational is cooling. at We goal. up as in that Get war yourself. the of it's been efficiency XXX-degree been a on basis. it and we The immersion we is sector decisions the has term The that long the an all where rest fantastic design operating Fahrenheit of know the don't that and immersion. this in So our cash we've air-cool a and are maintaining it performance outperforming flows in focus We on heard terms basis day built consider return Canal operational approach for since this every temperatures risk risk on everything. that's of CapEx We've delivering. Flats best kick to have the stories facilities short-term care use been say

point immersion, bit I feedback to in makes So coming it it technology first -- is get there frequency. into at around there's elements a of before very right? the long them about to for been operate concerns think immersion the these chip in the able sorry sense I through Immersion oil make Shield a goes and higher a has fluid transformer protecting them from time. is being

you've and you consequences four this an an and that but medium-term efficient. higher the and run run use or The capacitors to understand the the you get and is potentially on see and have overclock number even harder in for space they at make can absolutely So the it upstream which uplift into harder pop swell that that months see data that we of and efficiency manufactured operate to off hashing and still and it. rate, asset can for that is energy. We I'm concerns hashboards, matter in because what immersion the of fit running directly using has got up impact they were work longer-term supports immersion. the have chipboards heard purpose these players forced machines gear in these sense to that manufactured more you a And the yet actually it's almost are life. miners that do data we're the I sound. then theory in we've weren't on more them reengineer doing manufacturers supports with to early

There's clear at it, can like at Google where look line the desert but everything state go West line kind East and challenges in in you're as the dry into is you're climate. then towards Texas you North air. in of you people air But lot managing environment and sector moisture into the that more If And lot of where had head there's weather a clear stickier. a the more South a you a humid and much look down a cooled. there's have that Maps

air where and whether because bring makes sense risk. cool design I or players work using perfectly a believe risk immersion and way climatic those they pursuing making. additional don't know if running in a efficient a it's more decision we've that I air as from an that's design So strategy away individual the doesn't it an considerations why outperforming, back the that's it's are environment cool more today they're return whether But of a it got it works take and that market,

R&D doing We on are the side.

it don't long-term last and sustainable We at jeopardize will focused be are risk types looking different But this of setups. out They're immersion measured, everything just a they're chipboards excessive will like don't expensive. take lock to first, the in going business, a it be long very risk build down business. it time,

are this to hand pre-submitted phone I'll at Roberts back time. for further There now question you. Thank no Mr. questions.

Wonderful.

having the quarterly with This our a earnings look is just I'm at first pre-submitted. pre-submitted questions. So

that. over will go pass So you of and more be Lindsay I'm through and them some we at of to might directed happy to them some

is XX% breakeven can today helpful was Bitcoin. all The miners price after price EBITDA Bitcoin again production which a now but circa depends answer not short is are That's answer. first flow, monthly it is our the renewable energy deployed? and So when April cash overly is a XXX what at cost answer hour an both and The US$X.XX one see I the power and of that's $X,XXX purchase the of Columbia, in REX. British kilowatt longer around the

Childress, As we're of to half machines are market. all located be it's as over in where very a our aware Texas different we enter expected

own the infrastructure, data portfolio, with market really is you directly control If we've Texas, electrical In we're by the to reiterate and let to across conditions. we $X.XX weighted centers and at that look of a average optimize again, the based power the ability down price really an alone thing $X,XXX. the land computers towards and all back But the average got Bitcoin on of the interfacing price market. on key the

during temporary lenders asking due a do of scenario? Bitcoin we are that extraordinary, have and miners see generating high-cost kick make the switch is play data. One history is one the We're starts can't And the the money the even forced cash throughout played talking they're different got moment volatility out bill, see So to we If blockchain People we've at much drawdown to this power how now the years the public Bitcoin questions where downside things of many hashrate their a at this of of data good we how are really dropping at out. is protections right? this today. as that's current lower. much, a two where and test look you about that mutable and flows can Like not price, And we're There's downside go in. the you global this at if about XX it in one right? off. pay who industry back can't on we're environments

will as percentage we go power closer of we power So Bitcoin off people are breakeven our down minutes. the up switch we miner, as to price, price a receiving the a other as get survive low-cost XX breakeven every share because driving

price circle to more intervals. throttle time the to for the we as industries, breakeven lowering and cost you've per Bitcoin So of down other high-priced point goes thereby, those hedge got versus of the here mine down this just volume markets the the price where you up, is is power chips if mining your can commodity the back second protection the then mined. of And lowered, our downside goes power

XX% power of hours. marginal you cut to when of just and cost the hours, So your off X% is X% of the price switch above cut out out hours, the the out of need come if market production.

And and operational control environments. set we're there's it's all and again, deliberate thrive own ensure levers up all So, to a everything have lot of very to to in that levers. those

are three, term, going Lindsay, longer as we've and Number and regarding I'll see pass supply short pass I'll challenges, it, we but terms infield, you probably the the addressed this, comment. to you energy environment chain the believe to in of additional costs the et question, We've challenges in these any cetera. In and the this. on second where answered present for what I

I more really don't that. I think answered a lot to add. have we've Look,

your to falls and this keep out, No cost price problems. numbers I’ll which bitcoin Look, When are out a levers compelling. And last two we answered. think the something a I Texas site that at decision, drive Stephen we have frank. you question to the believe we of your A can not back stage. weed really point read below much residual is QX online got to that of Childress, written Wang have then it's lowest the marginal plausible do look but March producers delays Glagola. frank survive for If And One ERCOT scenario in at price studies service at Thanks. this been Texas submit sector be on there's any pull from if we Is to be saw cause to in then was follow-up production, falling now production this XXXX? below for from Lee, to but to cost providers bitcoin provided, will And to you is the the question marginal expect transmission you something requiring loads. commentary your question your new questions, not our Lindsay this throttle interconnection the cost demands then I've real power have get any at loss at end running headspace a to in just to production? do calendar ability I site? you your of cost the or ever environment higher on to that

to …detail that.

ERCOT. would date been and studies confirm at time quarter done we're of anything just that And ERCOT studies of on the AEP the We've worked with of closely coming comfortable that by some that impact were ahead that changes in latest we other ago. to the studies we but first energization very out see XXXX. that viewed don't ERCOT have long have with those got that a of submitted the think very load I required,

Wonderful.

see to We it is, a these power of Asia, markets. sites. got price power of Asia we've other point in of it just development negative some actually you are lot remember to there's you take power the some in pricing see that The We Pac where There no profit Southeast paid Texas. get markets can monetize cost bitcoin. in scenarios power, get center. where two some negative and plausible two, with to centers you paid operate in into One

we've have why controlling So our pursued markets overbuilt again, in that strategy. this strategy markets renewables that low-cost targeting to of excess those exactly renewables frankly own these is the platform then ability monetize and

of that the to so or business for we'll be to dialing The XX going you call in profitable. simply price remain rest the but Thank remains few the everyone delivery. substantially transformational IPO. are do is comes the We of profitable. our control scale profitability time. our doing market, note, recently have corrected company. On next in said been The the recap. will what It George Mackenzie Prince it a for months working We're to months. focused next lot with we'd bitcoin remainder the has as on That online at the IPO, and before We of hard. we

and our when about institutional-grade for our everyone you industry know to our really monetize more the an behind on long other hosting. and highest dialing to on putting We what again the its risk. our are don't wheeling the agreements We're applications. for the We're looking don't there. We to We platform your own people's deliver that's business hands. both We Thanks out, returns that and control look will meter. challenges, lies platform in. you for amidst manage but at had market certainly rely use an We're on support. focus excited and It's that and through We access our center over data this a zoom specifically. get has transformers we're that exciting the the manage destiny destiny we building continue and best for time business risk. also day-to-day for ahead own time in in We been for and first. rely a build focus. Thank to really ongoing We've run.

dialing again, many the future. look and you once for thank catching you to of in near So forward with up in