CleanSpark (CLSK) 10 Feb 222022 Q1 Earnings call transcript

Good afternoon, everyone and welcome to the CleanSpark Fiscal Year 2022 Q1 Earnings Call. [Operator Instructions] Please also note, today’s event is being recorded. At this time, I would like to turn the floor over to Rachel Silverstein, VP of Compliance and General Counsel.

Welcome, everyone. On behalf CleanSpark, Inc., thank you for joining our first quarter financial results conference call for fiscal year 2022. Silverstein Counsel. am Rachel Compliance VP is General and name and CleanSpark’s I of My today prepared Chief us Bradford; With with and Officer, Chief Gary Zach Executive Vecchiarelli, our Financial remarks Officer. are CleanSpark’s provisions we will statements Safe securities On today’s of make federal call, the under forward-looking the Harbor laws. statements. may differ these those contemplated from results Actual in materially

with as Additional information the cause release forward-looking information by are statements would in these to undertake today’s and to no press Except of otherwise. or results as update concerning actual factors the our we law, these filings new contained required a that from materially SEC. in obligation differ result statements

During talking today’s performance. discuss certain we also about non-GAAP financial our will measures in call,

release, is available that, Zach which website. With find our pleasure over my our is financial can You reconciliation press of on it the turn CEO, GAAP to the to Bradford. call our measures in

all little we Thank thank and you It you Park, College very ago that joining. much. year Georgia. a Good very mined Bitcoin in a for was first our afternoon over

been just over we it’s that say new it’s no I year, longer to this are fair in believe space. a While

blockchain. new Bitcoin it for and for deepened We the for ecosystem, of the era for to it does committed good Bitcoin project the This brings value the a have CleanSpark ourselves world. industry, our the to is mining our fully and developed across relationships understanding shareholders the the in and

to company discipline and our Bitcoin more operational become as bring an Mining a and do. expect intentional great to transparent, this and and are We we deliberate, we fiscal business opportunity. focus becoming what evolving as industry, more in more has

want this actually with new share communications with I our It’s our about do for to mind feedback transparency. vision quite you in a era your heard simple. usher to Spark. hope previous that, that To Clean and to call in of have We use

cryptocurrencies. and emphasis digital now other any different we five than on is Our our clear other superior miner. money, money Fidelity’s have for analysts recently is my in Bitcoin said. note Bitcoin top Please revenues. clear. other Bitcoin, XX% than to before I vision is market. types come echo to rather a Bitcoin of of vision be what form that of the different is also us. accounts How get The than there currency a

the mining to All commitment options we Our But means on this. considering energy the are for are alternatives strategic Bitcoin know table. business.

us quarter time breaking what transition different sense in With It to company. As I’d for investing focus our the in a word. to quarterly a we intentions was almost to help unveil you a to that, business from understand some miners. investor, some of other every highlights our mining strategic After Clean Spark you of results, share are Bitcoin our like the will take sustainable we makes quarter. our record

We the that ended these busiest exahash. through Because And of exahash am second. of have remarkable X alone. hash X.X in the was the time we the of incredible I mined ended, after teams XXX per to we I appreciative cannot how days work, with quarter of results. achieve so been. December Bitcoins, over mined enough growth has racked a third this of machines emphasize which quarter year a exceeded their rate just

our We co-location which own of power currently are megawatts facilities. and Bitcoin of XX are XX mining, megawatts operating of support XX in megawatts properties at are

under an newest megawatts development have additional facility. XX also We our at

over year, hash had this Our Since and area steadily X,XXX have X.X exahash. to of rate our growth Bitcoins January mined remarkable. increased we truly in now been has last exceed

programs. down doubling scholarships have Technical which will degree. is way to in That’s better, computer the in in this students we a entire make fairer, we awarded sustainable, One science more associate’s these it’s are the calls, a recently on why are scholarships Gwinnett people. we we X little and College’s lot communities more made this doing the operate. resilient. talk on While to the commitments about business, numbers about The We in world cover by student’s we

make in just of in are first, getting back, to involvement community We the in in important give demonstrating about the not our talk for Gary. operate. floor partnership commitments I’d call. But but and started like we I with the long-term are expect These the similar the to commitments to only sense more will future. giving later our communities which

more brings and on just that, or Gary experience than demonstrated say his operational just brings than ability I doing technical, has markets, great and team. two experience accounting so, in CleanSpark. lead in last happens a Gary are He He and priorities. communicate deep decades capital to also guy. of and strategic to have days strategic more the be to to our in Before finance want to we effectively how thrilled XX

let you from it I’ll Gary, him. here. have to lucky take are We

a year And of to I Zach for for every said we team CleanSpark a that you very been first the by CleanSpark’s before the quarter. are with Thank also earlier, thrilled here was quarter performance high future, that allow to and growing excited and tremendous a and excited is me will reiterate am From and revenues balance bring. much take very I vision see strategic share what in direction at well-positioned am significantly I be am perspective, clear to outstanding Most numerous advantage have this almost my margins at the what sheet metric. we bottom you, smooth with a looking what company record-breaking the see to with want us evaluating. opportunities transition. I to the a forward assisting I I fiscal thank and Zach. especially opportunities to CleanSpark. that to calendar for very want line. this strong I importantly, dropped the has will

quarter year. this total Total compared revenues The of revenues to SEC, have over to-date exponentially digital of made we $X the was increased As presented an totaling to majority the by the quarter first investments first overwhelming our have same which million. prior with in for $XX million over versus has our revenue with of been the the revenues quarter Form driven were XX-Q, increase in filed these The $XX our almost contributed record segment, million, representing of currency revenues. XXXX XXx.

and year. segment quarter same increase of almost as acquisition well, the increased growth $XXX,XXX million to to top $XX Our a of the energy were of QX XXXX. The million. due Watt growing from revenues new of in hash the saw the million the which the saw Revenues majority healthy line growing from first in of Solar Bitcoin this in of throughout $X growth second installations XXXX also Again, sequential quarter almost prior was XX% in versus the QX quarter. period increased revenue rate, $XX increases prior these to the by a miners of as driven

$XX.X the approximately to in When in most comparing also to year. approximately million, million from Looking margins the from the same at will high representing to company’s profit that Gross $XX profit see last period increased in XX% compared to performance increase to margins recent ago. in the translated period brings. you the QX QX million particularly $XXX,XXX XX% Bitcoin revenues increased increased Gross due quarter, increase. $XX a gross gross XX% profit, mining $XX same to dramatically in the year a from greater profitability, million

increase continued margins quarter sequentially gross in fourth the from first well in to Our quarter. as the increasing to XX% XX%

income. Much slide, form. business next will the of the model take our translates – see to in much leverage of Moving see start you to revenues to in our will net you the increases operating increase

quarter the preceding U.S. net the a income last of GAAP on to in XXXX, and improvements net a was EBITDA margins million of earnings determine net net million. be saw management the reconciliation basis. million metric, a produced in Form of A $X from flow QX in $X Net X-K. represented for Adjusted $XX.X EBITDA from non-GAAP as is $XX.X same reversing operations. Sequentially, release quarter can the a million to adjusted fourth income income Net quarterly turned quarter to For first well. loss loss positive found income XX% the company year. uses which cash in

related to turned in QX same negative to the prior day-to-day stock almost based $X.X million QX. of saw adjusted the expense that expenses. on from year. The difference payroll income adjusted $XX QX see callout EBITDA final because of our non-cash compared QX compensation continued will to make grants. million to expenses. a reversing on I remain operating $X significant of for majority net note largest the in want to accounting $X.X is adjusted equity Sequentially, is You specifically to this stock-based seeing I QX. due want the EBITDA few profitability of the million mindful EBITDA important adjusted income is comments theme related improved as the in quarter compensation increases of significant million $XX expenses saw It same valuation Despite the this by our EBITDA, to expenses positive also almost difference. of we this is Payroll to regarding to our in million company required increase methods primarily and $X.X quarter value the last in expense. statement. increase of to year, or million two-thirds

year, requirements in of have expense. has this relates and of million $X.X same and decrease underlying increase inputs shareholder prior based seen to and million computed elevated impacts inherently it will do in they is quarter due these audit remains A $X.X stock-based compensation consulting the the also quarters. valuation company’s a these subsequent year. methods the aligned compensation valuation large competitive to volatility as consulting and significantly on accelerated the the company’s past fees, audit compliance fees in that the the stock. of significant increases not in and the increased for of expenses used portion versus fact to the methods filer. short, is with Professional to One primarily of to new the these expect stock company a in this We over QX stay significant In value non-cash interests. providing volatility Since is value committed

Turning approximately December of balance cash to million on sheet, hand at we our had $X.X XX.

and quarter see Bitcoin, company’s expenses. cash minimal $XX forward, The amounts CapEx million. XXX Additionally, million, over hand converted as going $XX of operational we pay the we And total Bitcoin store company during for USD the a we on owned bringing expect value liquidity to Bitcoin XXX value. growth maintain to as a book over to with

fiscal attention first SXX additional state-of-the-art double want will XX,XXX commitments over machine current I note, hash rate. miner our to to almost your bit for which final During turn $X assigned We for company commitments. miners. Bitcoin million the machines, our used raised was a XXXX, On growth of quarter in which million purchase of almost CapEx $X and proceeds, most equity the to

commitments, On raised through delivery payments million paid and $XXX of is deposits to for these over Bitcoin we through this using proceeds issuance already which of million previously remaining I deliveries. equity, conversion just already this will make and commitment to point to we million, applied out these want year. be future of $XXX have funded And that and deliveries for expect $XX shy of the of cash the October take monthly is

miners be of expect already about it Additionally, secure and the turn in coming vision our now committed miners have to detail these to more to over remaining talk Zach and to the we months. to infrastructure infrastructure I’d in strategy. delivered like for half

talking about I time been now spend vision. incredible Thanks, am quarter. an It’s going Gary. some to

plan crafted are we for strategy. third two First, we ESG the will Gary about Then, our measure which how I capital which strategy, our will there. will talking and get strategy will And talk I I by pillar. we first pillars, strategic our about about will is how have our pillars up infrastructure the wrap our to discuss talk success.

a mentioned As miner. top vision call, beginning this at a be the X of Bitcoin have we I to

to So by of we to profitability in be a that? miner and We publicly mean what our do sustainability. top terms commitment traded hash X intend efficiency, rate,

of spend and right these each see a talking me we ourselves minute now. where about Let

with exahash plan exahash to goal by our hash year. In We we promises. X.X over-deliver the a the end the terms of have on of of rate, X achieved

the We have as already intention that with place by sustainable many miners, – multiples place energy. assets exahash for thoughtfully in of secure approximately in we and exceeding contracts X of

mine to most numbers energy traded In X the of but now, we terms to we of is wholly $X,XXX. harder these locations are Bitcoin are at efficiency, Right approximately our one efficient owned miners. our publicly believe Bitcoin costs compare,

As Gary growing you shared we quickly with in earlier, are profitability.

This been ever. has most quarter our quarter profitable

introduce top like intend our our over apart these from a will get I see years. pillars about now vision pace metrics this are excited you am and mind, that us how Bitcoin for you when months I’d them sustainability year. us CleanSpark, in industry the a nearly they We likely place other later These as strategy in With When the expect see mining profitability miner. coming the our ESG X to to strategy to share that with invest we grow rapid guide to public prepared in set there this as continue call. investing talk miner. of we year. you substantially will key to with I to is and I more foundational to the preview change is you believe every in

adaptable is an the last approach the infrastructure. that for rapid me change some expect first This to we to our of pace talking Let pillar, see. foundation time part, spend about

will infrastructure to about majority how own grow. when have how is Our we letting goal This we with and than of about of continuing rather the destiny, under we is when external we owning build ultimate our build dictate or strategy factors management. megawatts the

Now, co-location soon possible. Right and make as of received share the towards with datacenters our hybrid colocation arrangements to is of now, facilities. mining infrastructure sure fully as that we weighted includes that balance infrastructure And a we owned machines to as a any to owned needed deploy intend are hashing use combination values. partners

in evaluating we a We present. for to are expand future additional our our colocation strategy and thoughtfully agreements the are operations securing believe useful sites

chosen the risk. years to – regard start future, to This advancements want We governs advantage without machines we these on consequence. all horizon. balance. believe of have also peers taken that and peers start The be of the of in the to acquire our technology of is taking hashing. the huge delivery when or even will making dates, many while outdated approach approach in expeditious how heel even our are pillar up contractual be many of tying into before we on capital ripe our ever with and infrastructure disruption. machines, take Our orders Many significant the substantial machine months position Many the machine have to of in they in is Achilles the strategy ecosystem of ASIC growth for amounts

of competing extremely most is are of of product you the and last with be years have to them understand improvements all the technological handful a progress will hold space do while consider process While companies difficult, that – to XX coming.

investing As part in of cooling. heavily this immersion strategy, we are

by We facility cooled this expect run many loads you more more energy to cooling faster also as first It our of helps efficient. some to immersion call and longer and our know, quarter. current have our end be machines believe immersion of hashing we the otherwise at us by unnecessary machines the And to reduces XX% allows estimates. or by batch Norcross on of

initiatives. pillar governs ESG second our Our

thing do. right campaign, a the to marketing way business. because but fundamental are we the It to it’s We to do principles, not ESG committed is

have analyze advisory our performance for ESG to their NASDAQ’s us achieving we and roadmap help engineer engaged such, a services success. As

journey are no the We easy. be and under illusions will that quick

It we The store. said intentional gold We will have a immediately hanging believe than will miners. convenience work it Bitcoin low take able effort. quick a that But identified like the some results. better the of we standard on in traded more drive be standard as set is we is our those improvements to results publicly or cross-country efforts, this to for will see fruit roadmap some so trip and a that sustained fast are to

tighten use scrutinize a in regulators believe environmental respect will taken in year We We to impact. Bitcoin oversight this and keen how continue to energy. our have miners their long interest

prioritizing solar programs energy We Simple like mitigating wind, also renewable carbon-producing why energy. and that are nuclear mixes There clean impact Georgia’s which energy regional buy we carbon offsetting by the in and energy, we from, some Solar. including is participate in are

positioned supporting We economy. committed role miners large the that support scale forward-looking mining Bitcoin to and believe plays work to important are Unlike the infrastructure. of even uniquely nuclear renewable renewable other projects. are perhaps Miners an decarbonizing energy energy in

While our a in environmental to of as G in spent miner time and keep there our a lot the about we efforts, is also the have history mind. S talking

both vision workforce terms Bitcoin firmly to on making we inclusive more achieving a our being focusing We diverse we something and top celebrated of women and we talking look color. Social, be it how a and in miner. are our workforce X believe think by to hiring is and we We that just is people of think diverse how to of be want diversity crucial a don’t point.

undertaking and matter We ensure long-termism paid to in where they healthcare are foster also have this to market no healthy access initiatives balance. the affordable will employees, believe work our that a for rates, at have life hierarchy, are our employees. above are We approach

extend and Gwinnett the I resources the others. mining lives social bolster our philanthropic share Our intend communities Bitcoin County. benefit. we work. mentioned include profitable and we our commitments live in in beyond by should improve We the endeavor. communities scholarship earlier an where of is to workforce The contributing to the work incredibly efforts

to want Governance. briefly talk Lastly, I about

is make Over in the our Bitcoin monthly another strategy we transparency production by Articulating the to bolster way took issuing vision to last hope updates. way in we demonstrate efforts our decisions. and this quarter, we call transparency

value people worldwide blockchain. working shareholders rely We and are of Bitcoin for the millions our that to on the

underscores to the ethical Our an commitment Board company. Oversight, Governance, attention including be to

the turn our to of the capital now game, just of obligation fair our I’d third like strategy. rules. is to to the to over playing these to Gary discuss final pillar, harm. not adoption means and time Governance what right, the but do to us have and rules We avoid an by in only leading

you, Thank Zach.

is our Our use operate business capital profitable on sustainable wise strategy our in behind resources. of fashion. clear. and intend We motivating capital principle disciplined strategy premised and to our the and smart, straightforward is The a

Our achieve the as equity. our vision. we capital to them strategy has that and These levers and potential three of levers or Bitcoin I of to think like use debt, can pull are three components tools

especially types perspective, investment in components want available further. business, forward. views surprise, in and company. them important coupled allocation propel with When discipline to how a three to we significant share to cash how CapEx. a management you going While of the strict capital eye our expect its even the which no From growth and is very keen is our since costs are our our expenses, requires I are it use those we a and capital will allocation involved operating help priority, proper allocation with fiscal CapEx on capital

me in expect used with will levers in you how forward. these Let detail share strategy we capital individual going be our

obvious debt acquiring and capital sheet opportunity. our an Foremost, is balance leveraging

are in related capital have strong and aware, debt our opportunity instruments you we sheet of budget for to to cost utilize substantial currently. lowest long-term forecast As three we is growth. of currently to debt the to cost capital no The the of types capital balance easiest frankly, and the see invest of and

see new more time traditional actively banking capital capital note, we inject the goes we as are especially to relationships, of debt have structure rates. traditional as a optimistic, only lending markets expect established to at are reasonable industry. rates. continue our at the up seeking On recently which commercial We We favorable to more become will debt on, in side cost warm crypto lead to to debt

and leverage. nearly consists miners, The mining strong balance and latest of of opportunity immediate portfolio I line the for top overwhelming are to capital the attractive them, our all an sheet mentioned, models. We our of SXX we to believe As this use facilities needed us similar of operations. majority lenders makes presents exploring ABO is growth the provide the our to to or asset-backed of generation expand

available The lever is Bitcoin holdings. our us to second

both believe of a store of exchange. are future in as of the Bitcoin business, we a value We the and in because medium

Bitcoin is Bitcoin get sense makes currency Therefore, our even we miner, it a paid. to As more how use Bitcoin. to think generate functional and we

be mean to we develop only holdings further selling into recently from to yield at expect Now, Bitcoin advanced new monetizing relationships producing and Bitcoin does recognize strategies. established the deploy help these will Meanwhile, strategies Bitcoin we to our about opportunistic the continue Bitcoin to we market, right selling yields not have prices.

Bitcoin there can’t mentioned to I long-term, mined we the some holdings in I earlier, one enough, convert And long-term USD, is point incrementally increase is approach over our very strategic. other will because our huddling will we to of expect value Bitcoin While stress the we as believe Bitcoin.

everything not received have mined. huddling occasionally we We for feedback

Bitcoin shareholder clear, I We However, shareholders. to huddle way value strategy selling growing our believe be with the for long opportunistically run. XXX% best a significant want strategically and be the a to very comes that will in downside protect balance

publicly In other one miners use believe we to growth, miners first our fund and openly the fact, following as actively operations to are of our traded Bitcoin and lead. will and

utilizing Finally, about equity. spend equity November our not use the want ‘XX. we talking since by I some saying issued that let ATM to of me begin have time

We also near heard no facility in make, future. continue the to on presentation, strategic to drawdown we about our of Like the and equity. have we including every will disciplined be throughout decision you issuance the plans have

an its But valuation in that emphatically when discount stock state significant option. an issuing its traded at publicly is a want As have feels management equity always interest we to to a trading I be issuing will company, equity, not do peers.

a other capital. of also much have capital recognized cost lower means are We allocation, which there of

equity. issuing anti-dilutive Looking the expectation using will into as make of to recognized in be see I respectable the position accretive our regarding as note well. an We want be acquisitions enter represents naturally final a do in the and to that is currency, we into take M&A One the equity our equity consideration but in only as we transactions in may future. equity consolidation any that Therefore, advantage we opportunity valuation. fair at and future to there industry want

continue consider executed buybacks. expect company as close, of significant a stock to the pass trade-offs. likely most form three We the daily between important of our capital of note profitability, to shareholders we Bringing cost to returning to that description have changes and our third will is in which capital each this of our components, is these that pillar strategy up it

exists of capital continue available also the we in Zach of family. recognized to to be the capital over dilution, them be returns measured shareholder to We we lowering the shareholders prioritize know stakeholders, and total be always nimble line open mindful capital. turn will of a to the opportunistic to company. maximizing remain now when our order in and the like gap capital especially by the for the we of member valuation by before by call value cost the allocation and the driven our when We and of concept be of our How will lowest making execution CleanSpark will questions. I’d strategy while proud cost

financial be Bitcoin Combined spending Thank Gary our Gary you for is – our time believe accomplished of ESG you we our for pillar. which be strategy, and the top all pillars, to for outlining is and vision sustainable. thank five capital with a our thank you and of will you, miner that centerpiece infrastructure

best and use will We and shareholders, of our interest employees, Bitcoin and us us help clarifying community these the by in of remainder live pillars. beyond. the framework as at large. of calendar to guide the intend can efforts during all a make year stakeholders, our to decisions that community to You They the them are expect fiscal

and future opportunities horizon. we the the about on optimistic are We see the

and for that We is evolving Our this industry our would concludes Operator, open process. we questions. CleanSpark is leading to remarks. now prepared the believe like line this

comes point, Instructions] at begin Ladies question. H.C. Dede gentlemen, your session. go first Please with Kevin the [Operator question Wainwright. Our today question-and-answer this from will ahead and we from

is Thanks of [indiscernible] Wainwright. questions. this join much Hi, for for H.C. us taking for call. Kevin to the our so inviting Dede Thanks

We questions can hoping address have if series that we one-by-one a of am that’s okay. I

let’s Nick, for it. Yes, go

Awesome. Thank you.

address power CleanSpark CleanSpark’s rate does to against Given to its plan current needs? power. near-term viewed How plans hash access rollout

That’s a approach. that we Like is the view what to through means mentioned co-location do I presentation, to great market. are question. in hybrid we speed going a it Again, is really

that develop and build co-location. infrastructure, to management. we maintain supplement always going is instead co-location. be getting the to of putting of hash year. speed, the grow But our as is to more up. again, it’s interest a business megawatts going But in hands that to our of that attached it solely hash in us majority allows own So, most than intend with under our worth we that sustainable We to to a speed we Right rate are a our own control about believe way worth today destiny every now, it’s

So, we of opportunity later. capture want that now to instead

sites? Thank for are are it. the sources What you. important new access Got evaluating energy in and which extending in new mining or power criteria most current facilities, sources for potential

really, going look we is first unless of at lot. the is and there. us, a sustainable But to something won’t matter price For power mix foremost,

has takes both both an and agreements have company or, power the it’s the often that think one focus of the either be we of we also it the we viewed be rather is, it time think sometimes a grabbing And at think why that’s the nearest ensuring being important, the that’s going price. for we us. high without structure as And can don’t together. looked view it that seeing to renewables to both, than problems they also sustainability the We I but on view and right to of of see of those so in a one together, other. are So, mix the industry that

CleanSpark other Bitmain chip rig the primarily discuss month? Intel slated you review, CleanSpark’s introduction later the currently, understand what Could company and how view does mining relies manufacturers to mining hardware? are on team We Mine view the under Bonanza this management

promising. more to are understanding there, to There that anything And And of do believe doing of bring that diligence series. lot delivers. something really diligence use prior the about is actually is are adopting really and on SXX somebody a what it statements We Intel that out claims a the new, extensive we are lot have being technology shareholders sure right there do miners also better. excited do we and bring We for we to would best select importantly, has made. making market the actually in think so is table. that will That’s the we available. until decision they that to we to some to vendors are their results can now, on offer miners diligence it’s continue important that that we most Right hearing make deliver are Bitmain to our what truly can and due the

on everyone a high escalation? again, management rate potentially year? call bull, this trading network hash how Bitcoin this is continued steep And Bitcoin that how does see Given

I can think speculate. be and very they that’s also on We we where strong advantage ebbs run we go to going expect strategy a is really future. the something to believe ebbs where our But to to occur. that flows all opportunistic it’s going that is there And continue into we play comes as that’s take into and those of believe flows.

future a countries to at We of it’s that, long adopting could strong adoption of easier any us we get, will different value. with, currency. it. so, Bitcoin run has increase increased a it’s own form ahead level their a think interact are very levels, of with think we it We where both really going all the come that as ahead from regulatory And it. government see got think And of to

machines difficulty a future We going a that to difficulty, increase. is There that lot that certainly increase lead in be the new will to is think are coming online it relates are there the as point. that balancing in to Now, future. to going of

bringing are machines We online. new

midway offline the we But are are for going some a a new these machines bringing year. less through increase. where or But means online. see are see I online. That this exchange coming an Our I period something do efficient that to going still them affect at whether balancing think miners going generation, an to year, point, the going see time, are whole, to we to I of some sometime a efficiency happen event unplugging to are actually continue difficulty some new this And point to are least, for a tipping year of are machines think think miners, machines come I in think do for some we going at it’s effect as similar. we a peers that SX see of older the older

I So, this going speculate will that not year. it like. difficulty But percentage that I to increases that percentage looks what am do be a think meaningful

it’s about growth so. believe We us, difficulty. do For that exceeds we can pace a that keeping of

continue so And to our going be to intention. that’s

many how Thanks relationships energy utilize CleanSpark question position it? one the a then you. management’s should How so ability and And for to for about investors answering as uses miner? four. previous Bitcoin And that its to final bolster much think asset

forward question want of going relationships that it’s about expertise the they really that about understand have bit. garnered, we each think Bitcoin everything said And We less. our we so with – it. what inside and your to over business to I more rephrase and the energy in the to experience. I as is I is that What have what It’s that’s mind. a is past the bringing less employees do our gained that It’s experience the little years. before, business energy we the are brings lives value that we are, and

us, we for mentioned efficiency. the So to of is going I measurements are one use

pay of drive to that experience renewables. going the of future mining dividends operations. our And continue to going And we So, to definitely we very continue efficiency periods are those on We understand focus to come. well. in will are to both

it. for again taking our Got Thanks questions.

I Wainwright Nick. And appreciate interest. H.C. appreciate taking questions, the

Absolutely. so much. Thanks

from question next Tyler DiMatteo your Please with BTIG. question. go ahead from Our comes

afternoon. everybody. there? Good. doing Hi, Good you How

Thank Tyler. you. great, doing Hey,

Thank you. Good.

your to bit just here? of co-location the of half that the built to little alluded infrastructure. of more color timeline, me in I touched Could here? capacity kind a briefly that kind by upon, out the the I you of just facility know terms year you know the the it. facilities? ramp kind built? you I at for and can should about another add versus of touch see how timeline end upon some think Can we So, But we

Yes, absolutely.

So, right under management. XX we have now, megawatts

our way, which building rate. that see That’s in We hash should we well, in well, should jump fairly this its the on XX but significant of a process another megawatts. quarter, bring are

that between is what pursuing and XX now megawatts. Now, leaves essentially us for ex-hash

into in both angles facility forward inside and intend discussions to XXXX also a do co-location use actually a of facility of and enter both part We of other as into to both talking underway. side. exceed we co-location have But, of acquire we side that, that that, a about those arrangements. look demands new further Now, from in opportunities we the coming believe are and put weeks. We to our

to our side mid-year you think substantial both very some year is before our are going increases goal. with I see end happening So, on

Okay, great. that. Thank for you

quarters? even that for here just race pricing in could of kind talk guess curious if market when an this hard thinks just just How $X,XXX to medium-term? CleanSpark And it’s is to the ignore, about we the lot near of through you is how $X,XXX am think rig and rigs a really arms rig we today, right the So, in over look of this for SXX of I I next there Pro given pricing, couple about I and XXXX. guess guess the now. do beginning sort about follow-up, the at at XXXX, I going I

Yes.

concept the it. at is Our wrong view look is maximizing arms the way our in believe of capital. the We race to use

need have rigs to we them. find always able We been when

delivery. down you where along we way contracts the payments futures you have future entered make for into and Now, pay

have engaged We pricing. in spot also

see spot are isn’t have in now were as we from what fairly in actually down are developed the quarter. prices. And I in. last immediately coming made Now, our a significantly, going they those we to also seen were and opportunities miners lot come this just That market. of we it’s for of immediate machines onto It an as so should advantage miners down miners glut price into led price a last their the did their other able but There plug the economics plug were has on by simply of other where We spot coming contracts was are Intel to in we to coming those opportunistically where comes inability miners. machines future prices announcement. Bitcoin, months, the further a demand. delivery. has supply the or coming suppliers quarter, where several to capital. continue other taking or seeing rig announcements we This in. expect right purchase And around. solely we opportunities think push market to with of just belief prices to There spot actually we And that driven decrease is down believe XX% as it of entered and in are made much decrease other mining spot online. it manufacturers prices whether

be Some than credible of these others. to going are more

than race calling entering millions and obsolete of hundreds they before and be well ever down dollars that into manufacturers miners to it And take results. be higher positioned some contract to going Again, up. could an advantage a rather new performance, of efficiency, now, And arms others to are to putting deliver be of show won’t. we technology, able actually want better for

strategy. it So, tied our it’s about all to timing. a balanced capital and But approach back

queue. to Really Okay, great. the appreciate turn back will that. Thank I it you.

interest the actually We the Thank really in Tyler. questions. Appreciate do time very appreciate concludes have BTIG’s especially and you CleanSpark. This much, we analysts. Alright. to everybody’s allocated participation, you

available later release joining. you today. today’s to replay to Please press refer would that end the everyone earnings remind this instructions call for I Thank available via replay we Before like and call, company’s for for dial-in will be website. today’s

gentlemen, thank and do today’s for attending. conference. with will that you conclude we We Ladies

may disconnect your You now lines.