CleanSpark (CLSK) 10 Aug 222022 Q3 Earnings call transcript

Good afternoon. My name is David, and I will be your conference operator today. At this time, I’d like to welcome everyone to the CleanSpark Fiscal Year 2022 Q3 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question-and-answer session. time, Holyoak, to Chief this over the At Isaac to Communications Instructions] I’d turn like floor [Operator Officer.

call. year Thanks, joining David. financial fiscal us for results XXXX today for And CleanSpark’s third thank you quarter

Chief our is today our Our press release Financial Keep and Executive based is our I Officer; as issued on about Vecchiarelli, a call Chief them here replay at the Today’s the make Zach being will Gary that am available we be our ago www.cleanspark.com/investors. available XX website mind we also on on of today. of businesses are Officer. some and minutes was view and in and and Bradford, our world see our webcast, and statements best with transcript website. forward-looking

As SEC our may as the website, and changes. our change on described in world those elements filings

today’s performance We measures about will our certain financial also call. non-GAAP during discuss

our of You which can reconciliation on the is find measures GAAP press website. available release, our in financial

Now call over to to turn the it Zach. pleasure is my

miner mining all fourth as a month Bitcoin the the by amount the to fourth quarter the be of Bitcoin The calendar afternoon track, to were any in set quarter mining We Thanks, public the call. highest joining out our vision third team the public compared that on spent you Bitcoin miner. our CleanSpark for when companies at I beginning for am Good and quarter to that whole. we five thank of year, finished we highest also executing Isaac. a of report June. CleanSpark of top the this pleased

is same of previous quarter the productive year In increase minting Bitcoin, quarter. fact, a over the terms our increase XXX X% prior in we Bitcoin over a XXX% had mined, quarter and ever most which

hash of rate. XX% and In our X.X our terms at this time, representing increase this Last X.X just exahash, a the under rate, as we quarter is hash exahash, exahash. in we of were rate call, started with year hash X

we in the seeing and we our strong mine. is announced with to live progress the With to facility this the a in amount Georgia, Bitcoin emerging and operational the growth our we growth, of pool work. and state-of-the-art Georgia significant continue, expect and are that We business newest support community. wonderful site morning, of the place we civic Norcross, enjoy

Our in. within Georgia and in operate the we a we the assembled growth is to at testament teams communities have CleanSpark

Internet releasing the notes clockwork, operating network important the every another emerge Bitcoin, into XX the that for it is these to of lower. hundreds the more potential of batch economy like as the believe result While of headwinds to into we continues creation most assets the social than decisions of ever current because All and our one the and Bitcoin our utility of it. Bitcoin We be actors since on most half themselves and online market of in proud block thousands but is of bad its we and Bitcoin financial lower, sustainable the fall, in building and next reverberated volatility century. before, through and extremely mined part prices was Internet’s the companies revenues the valuable of last irresponsible is transactions to as We the conditions and of economic ecosystem. and securing have last price model. Bitcoin few stage undervalued promises. of risks CleanSpark first have new Markets second money macro the quarter, our see were reported in world rewards miners, market evolution built both it a serious continue rise faced at of anticipated world, the minutes terms the in came

Importantly, including a deployment is market of emerge anticipate for prepared for shareholders, dynamics we through this companies and way One the important of the can as market that bear them, headwinds market. have prepare we elements come Bitcoin. are their from when we see They rewards these cyclical. that traditionally strategic

tools While continue this was make market. teams, portion selling to strategy summer, have liquidating miners pay long-held bear by we paid industry the use of we We done This off. we operations, holdings, ideas headlines of fund the have assembled our public early which great our to economic stay days in the course were off true Bitcoin most growth of markets grow. to will the companies their realities, able believe to to since of our bear rocked and a harsh Bitcoin XXXX. to of and Despite this

the new an expected batches that of partnership have units arrive machines, our June XXX mining a strategic Pro impressive the at were took over have use. we property Antminer machine. XP, announced we exceptional acquired during an colocation July, capacity and us fits power. to SXX deployed we our units Whatsminer as to renewable-powered long-term in fair edge more move mining quarter’s made digital in an to Each petahash unique this We while The that facility. of additional price, immersion for taken co-location X of at and tank Plano, at which were our hybrid this determine. headlines instant The own contract what XX to mining Texas. immersion us mining third an with expanding in machine, other proprietary TMGcore in and designed mining XXX substantially with tried cooled is We about in while hash our add performance also mining over additional machines, X,XXX space to We failure The of provided steps sustainably at by market are X,XXX that able are which of Then our to the units and conditions market, rate. our an grow assets. continued infrastructure, partnership move megawatts to one the their quarter believe improve our MXXS begin both incredible up existing to end. our facilities, the buying their acquire June, later secure be SXXJ in position our our These facility cool TMGcore leading Georgia state-of-the-art Bitcoin already In added shaping the an will will to in Park, machines decreasing created. approach for current rates contract of computing College of relationships first XX be because locations batches in beginning to We facilities capacity month. Coinmint’s simultaneously subsequent being excellent circumstances distressed Antminer grow at tanks co-locating The true and puts petahash we market builders. of

morning’s example both. add includes a infrastructure. new Speaking benefit in our reiterate five their also SXX agreement great moment hours publicly mining facility total City City and miner. to take community, Council petahash an our Manager last XXX with increasing Metro This night, a XX overall have of of power, of future facility existing about rate further for of a position megawatts how over come our bumping a the machines of expanding about -- in details rate am acquire XX%. site, entered of Atlanta the securing before top meeting, can traded I’d exahash, that XX like active the the in about a mining The them to closing, released open. total pleased agreement our Series ready of the community purchase machine. this X,XXX X.X into Georgia, The about new up the This outside power to of beautiful the bigness megawatts X.X the Council, the last exahash as unanimously industry Washington, to us, approved acquisition is economy. morning met transfer mining together other week, wire our X and in upon on we City of to trust small facilities, That plug-in a region. City I our immediately an XX-acre thank city full is and processing located our industry purchase We to hash deliver and and low-carbon We civic this public campus. the market hash with met of leaders The will will for

remainder land, We this as immediately The infrastructure the this have after for to have machines, and fill was We wholly-owned expect miners on hand that The debt. and paid space the seller debt that unique, facility. two to making soon a us, in third comprised shelf saw assumption our includes available equity facility levers million using total the $XX.X Consideration purchase capacity and closing. at financing and to note accretive will consideration finance a $X.X cash. million of mortgage. of opportunity of be was of

of on a that have calibrated the continues to infrastructure our first three Washington, previous for our calls, We I facility. draws outcome capital first and Gary levers As carefully where class and our majority obtaining levers, is secure our own instant The almost operate growth to Bitcoin, our equity. we to and site three significant selling these deploying mining debt opportunity shareholders. and approach Georgia seek a discussed strategy

to of X.XX once our much to new mine. our additional site production as our right we property the The at expect an X.XX additional substation initial difficulty XX XX-megawatt being increasing current total has future. rates. exahash, how at a we completed. impact exahash We about overall Bitcoin now The X for That by an facility Bitcoin add a points, production All baked built site to its increase facility will includes providing the is growth opportunities megawatts daily into we expansion about the next substantial Bitcoin Importantly, to significant that rights new daily Georgia megawatts the on XX in, have exclusive speak. XX of development. will estimate

effectively on While calendar a XX also our to uptime which strategy, to on take the Bitcoin come inspect schedule live update the now of the they one their Those efficiency, most XXXX likely them. of initial Since cooled of we planning little Lancium We infrastructure year. XXXX expected with immersion in stage well-run state-of-the-art adding Stockton, megawatts behind a to features you contracted a the like how operations. the traveled deploy focused Lancium. power, to has additional recently the originally by of us, XX alerted Fort megawatts moment first deployment online I’d existing of but first execution. the go end then, envision we quarter of to partnership are on are mining Texas our continue to facilities, in megawatts operational and with we are to to

opportunities near-term are capture We to the rates. the enough not about delays have Lancium, structure it experiencing, is the because more Lancium had concerned with excited allows. pricing remain relationship because by additional we of hash favorable than We

business. Now for the on long-awaited Energy update our

to We the have our sell of made assets Energy formal business. decision the

with share and reasons what so. this for me looks you Let our some like doing of

and foremost, mainly First are our GridFabric. software we of mPulse the technologies, sale pursuing and

our on more been grid. closer mining conclusion and outstanding will our for a I’d to sustainable business affordable of a and decision. working us is mining customers American clean, North discontinue with the resilient upon are We moment vision. Bitcoin we best CleanSpark the We Energy to take focused all reiterate that of the our believe to vision has energy that activities. long gets any like abundant, commitments Bitcoin behind reasoning hope

decision. the that, business, Perspective shareholders. micro the have business. say in mining, business, if And that decision previously is for grid transitioned could our Bitcoin since macro macro absolutely is important right we is the You grid grid the were this to in we

In of remarks. XX% the revenue done rate, megawatts, have amount to our on take is for hash sight the the information mentioned production, was efficiency a to cash ASICs, revenues from XX% of But it. that As and and in before before, on the provided it’s employees a use like the segment the quarter. all I CleanSpark’s of impact his about our of now behind mining, lose Bitcoin time discussion that working all the the Gary, spending a that capital negative work will resulted to we and the during have disproportionate thank financial easy over people flows. yet Gary and decision us over to more company I’d people they point moment transition of come still provide focused of this

yours. financial listening belong floor it To many teams results. Our thank the are our I to those the is groups. Gary, details additional and will now, you. over who Gary both With on to that, to provide commentary turn employees

Zach. you, Thank

into to I assets. Before its the Energy to quarter, decision get briefly results the divest third I financial business want discuss for the company’s

status, goal you maintain aware, five to it the our become As is miner. top and publicly are Bitcoin traded our

to decision are Bitcoin in on mining. excited next taken evolution and business of we the the Energy focus on the not While lightly, chapter business of move was solely exit the the CleanSpark to to

With line have business we XXX. the with the reclassified decision ASC in to our business, as revenues divest and assets, Energy liabilities, and discontinued guidance operations, expenses accounting Energy

going write-down business under as As expenses assets, has a write-down the and liabilities, intangible accounting have such vary a value. our respective the from from the similar directing is operations the to is Intangible The proceeds market flows must upon intangible given as of a the to essential of the their forward, estimate, items has because Energy current primarily adjust further and of value. expectation only the of assessed low statements. been business rules, Actual out result. valuations capital on business written expected reduced the financial to decrease the reclassification this company assets specifically, This business. I of items we may their environment portion its the called impaired the the cases macro sale to reasonable to its does support in assets but these the reclassification cash market the conditions. conservative assets estimate is feel reclassified impact assets not that to assets. not assets carrying to working has are in required Energy and write-down discontinued company this company because and due material zero, in Energy for substantial some businesses fair Energy which down value the the has from reflects a its to The goodwill, as

non-cash of while was significant is that However, period, a I out want item. negative the to it it net a for point GAAP driver our income

a to represents Our our reduction our statements on business in decreased efforts by us business. burn mining are mining. focus Energy being optimize now working on also our reported focus presented further maximizing over on These XX% of our Bitcoin continuing That cash expenses has metrics and of primarily and sole basis Bitcoin business. said, on financial allow the our operations the capital return investment will and

last million X.Xx slide, from increased see you the in As by was This increase this in have substantial on year. our revenues $X million to almost driven quarter growth same $XX our rate. hash

mining corner lower quarter, bottom-left despite slide, note Bitcoin this the was third prices at are of decreased Looking you Bitcoin mining will Bitcoin driven prices. we by revenues as the that This more at solely our in more XX%.

topline. QX As in effect you are aware, a Bitcoin and that decreased our on prices had direct have

you million On approximately profit last will the $XX right gross the to QX, side slide, profit. see year. the gross of quarter our same almost compared In three-fold our to increased

immediately profits to how our compressed prices Bitcoin Again, by we in the $X see final margin Bitcoin percentage XX decline did gross mining we In less quarter. substantial see this in margins quadrant decrease margins can profits, in gross in preceding a you had the affected slide, directly about prices. more profit. compared attributable gross XX% by and million to points, our decrease the approximately in Bitcoin, we While and despite saw of the increases our

the to Moving next slide.

assets same Bitcoin non-cash You quarter as the net driver of loss Bitcoin, Energy to sheet Since discontinued the of Bitcoin. realized it. is the not we Also companies price do this loss their rules had given price on where accounting impairment to I in due $XX.X to contributing includes QX is last as will approximately mark-to-market any on largest allow balance basis, on losses our day of million loss previously sale Bitcoin than increased of compared we operations impair reclassified first-out and minted note to Bitcoin a our our the on impairment when first-in, less held The of the year. to discussed. a

When these our loss. mine the the net to effect see we in will our non-cash QX at to While were in and versus last looking losses impact. $XX we is continue million us quarter took noncash current QX represent quarter, again, you which, a slightly in profitably, a adjustments of rules, Bitcoin loss the accounting red

solely On adjusted adjusted a our slide, Bitcoin be full our adjusted found basis right release will on the our income want see on EBITDA, from operations the you operations. that metric, net in side A of assess represents continuing is and reconciliation our can a out its non-GAAP website. to which to cash our our presented of EBITDA uses is point GAAP earnings I to flow EBITDA management operations. metric

performance EBITDA represents adjusted EBITDA Our are for and margins the million, $XX prices the will the XX%. to EBITDA margins Bitcoin of lower respect third not be the you note the to third approximately quarter, and mining compared are quarter second Bitcoin importance amounts in should business. translated adjusted corresponding margins preceding overlooked. margin. on revenue quarter EBITDA was to adjusted lower These With we The that our which adjusted of great in why our

decreased adjusted adjusted contracted approximately also our margins million $X XX points. EBITDA and EBITDA Our

EBITDA adjusted have our very and business considering the debt we margins represent model, especially very are currently resiliency service However, our of little still requirements. healthy

our several say to As want you decrease I operating some to that expenses. lower revenues Bitcoin in margins, contracted have discussing led prices the times heard me take recent and have time

significantly greater to survive our feel market today’s bear crypto while than winter. reflects, price structure we we any or Foremost, is in Bitcoin cost believe worth comfortable very

We our is purchase costs, agreements favorable we expect market what can run our we can especially this optimize our where we our control focus time. to what subject on and in rates, and power through costs. are control costs power to control we We long-term market

quarter, Over have kilowatt basis. per the on average power a hour $X.XX our costs last we blended under kept

demand periods in for in wholly-owned operations few energy hours a than the need While are of market to more immune surges prices, in Norcross and to we our peak our seen curtail not time. activities mining not have

with state We in and the peers as many operations Texas. very in also than uptime operations our who of our greater comfortable the feel geographic concentrated have location experienced Georgia of we

point anticipate built payroll our are see cost due where have other to anticipate reduced we expenses, that We a have containment expenses G&A we we will at Georgia. operating Looking the balance as new was turning wholly-owned total when you and XXth our at and sheet, increased at million, Washington, When efforts. adding scale Bitcoin. and at $XX margins locations, of looking over adjusted such cash EBITDA liquidity June comprised

which of mortgage. financial financing quarter we a exceptionally believe was and source our also and million we little had debt-to-EBITDA transaction $XX assumption $XX The debt ratio is strength is of which low. third facility morning facility of is is a of June and balance part as This million the million have our approximately our XXth. still Trinity to-date, when $X us our debt of seller $XX from closed of outstanding million down based our of on and bring We of apart drawn announced sheet debt, includes the peers. on The part million over will a to which this $XX total sets

much we flow. don’t carrying debt, at not so cash debt have burdensome obligations eating are away our We

miners which deployed. hand, have are on of XX,XXX July of XXst, As majority the we almost

XX,XXX will deployment ready miners the over for have put Washington Norcross. expansion we miners to delivered, be location the miners can the hand in With work to and in we X,XXX new and on expected

commitments less remaining the prices miner under miners signed has future July but in we due on to further protection kick commitments long-term our XPs million terahash. The our $X in no price the which want reasons resulted CapEx, also The protection, Looking remaining per This amounts total. likely further that discount, are why note average contract as few price of decreased small, in related minimal were caused only price at I to very have than June, XXst. contracts related outstanding that not contract. for at X,XXX the to a purchased in. Bitcoin commitments has to had

anticipate in of minimal, at The expect $X months. to more As a $X since potential be CapEx miners market with XX XX hand anticipate has per hitting near we few turnkey primarily Norcross facility in energy that we least on be relatively CapEx in expected already decision with We the miners our with on in will in be location producing location prices the Washington bottom capacity the to available would current make the at most over million, the miner was CapEx have But than Norcross. be to prices is Bitcoin the million megawatts XX next fill efficient. additional made the commitments decrease. Washington come construction the weeks, previous and remaining difficulty will or XXXX. not the improvements location. assessing capacity five on And discussed capital XX first megawatts, acquisition coming to of the near-term. levels. any calls, to is around will of miner we relates megawatts bottom, the miner commitments at tie our Also, on the month up either we location megawatts current purchasing be an and more spot which purchase means The to the based contracts commitments significant we long-term expectation to miners to that remaining In total putting portion our less the

is there will delivered that power us this no deployed that for of CapEx We to the utilize needed of months expansion to will cooling in be determine coming be is any completing and amount racks have on-premises since to to the substation the megawatts. in expected this adjacent It property, to will be to that is worth the the engineering noting it cost assessments XX is property. virtually switchgear, CapEx form and the additional the transformers,

the additional On early call. I to provide color the strategy, topic want of on on made the capital Zach comments

these all remains consider markets frequent we levers, approximately play raise place has a on and Bitcoin, This capital strategy much allowed Our $XX strategy names debt million, down now. we capital. three for transactions markets to quality very and have lenders In even morning. using proceeds basis. CleanSpark. with XXX% used we announced acquisition equity growth July, up entering in offense, our like and be of tightened still will, in fact, of which recent Most as to used months, will In the into to debt in are self-filing be only such used us this

However, regardless this debt how have we are, takes accretive to time, debt of the active a markets transaction didn’t opportunity. capture time

will to further. Going be lever we forward, using we continue opportunistic and debt remains anticipate a

As of Bitcoin Washington in assets, prices recover, will we believe our the acquisition also value. increase including the value

source Given potential time to capital Bitcoin we and guidance end Previously, the rate more to could exahash also exahash. end sites, issuing calendar a is the at but which expect sites striking we debt expected, currently only really We fact stress and the prices as contracted site this This make guidance and and deployment tend versus are starts when to our that guidance with take for months. final and like year not weeks will to XXth of committed acquisitions, and low of regardless ratios based hash at will higher other allows we calendar this asset year. facilities. for X.X how expansion market the our development our want opportunities nimble follow update we a guidance XX.X being minimize the quickly and note, values we contribute market is would at running important exahash acquiring low-to-loan pipeline, feel -- immediately us Furthermore, in this of us and process guidance. pricing, or September acquisition Furthermore, loan-to-value by planned colocation cash value current and of on of to our the current capital was exahash market. to a Washington the Bitcoin rise. asset rate year-end surpass mined, refinancing saying a four of This are nimble flow. number being important by we especially -- I in we what calendar is, between which pull, give exahash. our the producing the to XXXX under the we and On comfortable increasing five in hash than new X.X and the earlier in Bitcoin

help the our meeting we of in of of the our top position will exahash, guidance the strong secure history miners one in Given execution, which as XX.X world. confident feel

keep apprised We our rate transactions update you. Isaac, back to will investors progress continue of expectations and our to warrant. hash as

Thanks, remarks. Gary. David, this concludes our prepared

like So from to the analysts. for line we questions would now open

Thank Mike you. from Co. Wainwright first question Colonnese And H.C. we our Instructions] take & will [Operator with

Your line is now open.

Hi, Thanks. Great. third guys. our for business site of times the the Georgia, and exciting legacy acquisition Congratulations on you. sale the in of there very

of this proceeds provide that capital? you where you start, and could on can amount additional and of to potential in So extra any sale color would when the expect you you to business deploy finalize the the Energy terms of

is Thanks Hey, joining. Mike. for Zach. This

clarity add are to sale. we So pursuing the

But mining are that just estimate we But what does cash that directly from deploying we and executed don’t any be that now. come is not have will what say of final be. into now business. the that the agreement, now, obviously a have flow so We we in an right can pursuit I of right sale will right

it. Got big year-end on a clarification. next number. question guide, Thanks hash rate your is My the for obviously, XXXX

us through there just you contracted your and hash could us current walk how If what get today? rate stands you remind

Yeah.

So on that hash rate. actually contracted current our is built

in with adds that are the that adding megawatts we exahash So X.X. now, we X.X at XX Washington are

about few coming that X.X months. also X.X We will exahash additional online have be the next to in over Norcross

X.X. Washington expansion of XX-megawatt Now the is

And plans into about X.X we some be exahash. working we exahash pipeline then emerging contracted XX have also have that We facilities, number. that that will are of with on co-location our built

have some Lancium. Now detail megawatts, and on we with that contracted course that, to includes add color of XXX

are as then Now We XXX we beyond today and add in part own pass options. done we those of that, may would we do expand or further those our do expect may and facilities to have of both. we wholly-owned what

capacity own the but of do place we are that that in the worth of goal to we or feel optionality megawatts end next capacity confident there’s that So for contract through our XXX by extremely either site to co-location, have at get to under all year. us

That’s great. coming relates specifically, all capacity color the I appreciate it And as machine online. there. the

update there expect what’s side this in just online, end could contracted to of that could XXXX. you through and come on us we the see of the least in cadence terms potential calendar at that year If

that out spot on important I So, we is market. how going rely think it we the Mike, to am going point are to

of X.X machines have we that under we contract. So exahash have

lean worked expect and into has us heavily strategy very in We of execution spot market to well. the has it proved our

think fixation a of company there’s it number sometimes unless the have lot of number shown you matter that based that on to in our in. machines it the have has. have, I the that peers a doesn’t But a market of plug you machines plug

confident are obviously, even right So we the first But improving, plug available point there’s currently. available our supply serve we the before. that machines a can we that than is the approach infrastructure spot on more to, manufacturers chains reasons market ever on few very with going are spot well. and from now A will market market us also

and to contracts we required a future longer a seeing no of So lot good degree things. are are

of is minimizing we length machine $XXX a miners we is we and but in. fill part expect -- the to to gap As a if view, point that capital it have be going plugging important closely. machine use cost now do we the anticipate which or big between a think of coming that’s of to a the But of we that Gary on are next making for that also, believe focused bottom on We poor think of from variety frankly of strategy, near we time deploying of of for capital. machine that very the we capital and we and least and reasons, again, the prices that, quarters deploy at mentioned, we some are watch We made this million not that year, incredibly a arrive in side. months are moves our are

pull to cost the if that being days capital that and down limits the XX opposed in. actually As it between million the length even time of plugged machine $XXX to, out, us

in. stick to time to plugs ready these for and expect the that strategy do we plugged have So miners to be in

Got of participants. for rest it. into color Thanks, Appreciate queue and the will again. I the the back the all jump

Mike. you, Thank

you, Mike. Thank

And next go will Lewis Greg to BTIG. with we

now line Your open. is

and Hey. the of of Thank and a couple acquisition I facility have in yeah, everybody, good that. you questions Georgia. afternoon, congratulations around did on the

can provide You the in on Zach, around type power get transfer? remaining there expecting it PPA. it length in comments of transfer of the was the to of your is a the color too is and mentioned, that but us Not PPA, that, kind just any of you you prepared granular given the

a us It is see XX%-plus a really it that proceed power. free from provision of actually be us XX-year of Yeah. and structured. as going agreement advantageous approach. carbon it’s in we provides how The for Yeah. It provides majority bit It’s a has contract market in we is there a to in how a based quite nuclear that flexibility based.

No. we think that for couple sounds That’s about are to of is so of have And the -- a I left it? there’s it it PPA, seven years like just way there’s there the sounds think has facility it, been about -- on -- it we to eight sounds that years, great. as kind like like right

renewing We it. are actually

a have of will as this we part process. XX-year So full

the out the Okay. there, that these noticed we you that then I And the around than evolve Awesome. that build-out build-out When Great transformers. build mentioned are the for think in Great. we later to switchgears, items, sooner as Thanks. some as when you next, lead in hear. these you XXXX, about about lead chain decision to out have that, I times things. times make think guess, the around think rather things we a supply on or

that of this should is just in curious, that CapEx So to up year? show expect later kind we something

responsible Yeah. for from currently cost the that’s being and side, Most those substation all that. lead are of available, lead built. on is solely times a because MEAG times our readily MEAG it’s

already it’s they much it procuring middle already course. are our On smaller of times, procured, which of to they the and going are all basics transformers and side, own in have the So their there. lead of been the has

times has XX weeks, currently that available. pretty in under of readily most So lead

goal we utility stay year. is exercise and and likely to deploy those and going our the with is closely would So we at What full would engineering end the of expect late, begin in to to try be procure this touch the very the capital.

again, away. in So, line fired that we be and so up up of take when line that hits the to we this they property, -- right our hit are power the ready corner

So of side on I much construction happen early the our XXXX. will expect

call procurement begin before to So, months when our it, months we exercise. three that yeah, is four will

just that are facility the to as then in -- expect be we in we forward And I busy. Washington, we guidance, based continue there’s rigs obviously, existing more to going -- guys market, on that the acquire of guess, and you kind and SXXs. be bought on those Great. Realizing, to secondhand were rigs Okay. one you were you the busy,

this agnostic, the are can We at, know, rig $XX I we point, are doing about are a I we not X,XXX in to Pros interested knowing that at per terahash or think, you we bought XPs out to way more that we pick are there’s maybe pivoting terahash -- just per really or in don’t mentioned think i.e., to there, X,XXX we if in are still or range, that? $XX still up any you lot June, SXXJ XPs,

Yeah.

on what investment. best return about interested in are We It’s us the gives ROI.

bottom purchased probably simply one. that $XX nailed actually Whatsminer the example, think, terahash, just measured those at those for which ROI. based we And on some that so we Whatsminer, bought on is, and in We we a I

being a XPs than I pricing, is $XX its delivered the say, but their lower terahash which Bitmain will for from our comparison, this, August delivery. For pricing

discount than a our we lower a purchased a at have We by on again, price because XPs, that taking distressed asset. over

measuring we based So it are ROI. upon

perspective, the XXX% XPs than spot in an are XX% currently more on Pro are output. SXXJ more to about in So about They market. costing efficient that the put

delta. we measure that us, for So

we investments in on but very acquiring XPs, machine. interested that So we are will on always measure the return

Pros. we course, do switch we So and opposed they they But the and buy realistically, as equal, of closer XPs get SXXJ because more will get because expect, the over to as more to as and begin, continue there’s approach driven to going for gap a be period XPs, some this between and ROI. the to we the blended and new, to of are is going a are time, by probably SXXs again, XPs take

for of you No. That’s the been here do question able building last It’s what keep again great out pretty and been Thanks over to guys. Zach, hey, impressive to and yeah, quarters. have couple taking the my footprint. hear,

great a the day. have rest So of

Hey. you, Greg. Thank

And…

you, Mike. and Thank Greg Go ahead.

evening. a Just to I real and just thank everyone want Greg Mike afternoon, us everyone for joining fast, and I David. Back thank wish for to you, good their questions today.

Okay.

Sorry, oh, you, to sorry, David. back

that. about Sorry

Isaac. does Ladies Though, for attending. gentlemen, further you conference. We we you, questions. Thank today’s have thank that and no conclude

now You may disconnect lines. your