CleanSpark (CLSK) 9 Feb 232023 Q1 Earnings call transcript

Good afternoon. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the conference call. [Operator Instructions] At this time, I would like to turn the conference over to Isaac Holyoak, Chief Communications Officer. Please go ahead.

XXXX. you Financial us period Results XXXX, December thank Fiscal for October and through Quarter First Call XX, Audra, for today joining CleanSpark's X, Thanks, covering the

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

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

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

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Thanks, the our afternoon, we as we the we of The discuss you, call. quarter, spoke fiscal the first with for December last shared you Isaac. will joining Isaac through and of year-end XXXX. mentioned, XXXX. time our results fiscal Today, of Good which, covers period first results our thank October

we Even time, During headwinds. of in the in more persisted grew. macro particular our significant face and industry headwinds, broadly that and the faced economy these we

work nearly our added has dark increased, mining those the days production hashing The to since rapidly machine a hashrate, hashrate last number increased month, bitcoin. bitcoin for month. XX,XXX. We ever growth winter resulted portfolio. quarter XXX was by The campus average Our subsequent which production in new over in in our grew outpacing the highest from global resulting significantly and bitcoin of

seeing matter the and bitcoin difficult also grew just expert is benefits the of we we the majority today quarter grew welcoming no and policy. No our Amanda Board, how who measure, are this the growth in Cavaleri, an We of matter beyond.

peers, our data single Minor Data focused terms Mag, published In amongst recently fact, research us and growth. on by institutional of percentage placed them. of every miners in one hashrate portal public of outpaced we the bitcoin miners first all a

second see hashrate for the XX. grew it now XX% continued the we hashrate, so since had and visual, network grew can by a second. We the per did the end the global XX% hashing as a to from we you outpace of XXXX, per at per XXX%. exahash As exahash of while the average Not Since X.X of December second. started with And then, by quarter. increase tremendous exahash hashrate a at January X.X X.X our over for quarter clip. We year, machine we've we stands had hashrate grown only XX,XXX grow did to

Our XX per was average at terahash. fleet running watts an efficiency of about

understand we over perspective, come some per of in For our XX at terahash. watts peers

only and part to Most Our of XPs. The tells story. acquire the of have machines tremendously quality from more we of series, efficient. BITMAIN's SXX fleet is started machines come the our

fleet, will Our immersion additional testing as We're over optimization the bitcoins. to allowed leverage for cool we software us of test of record optimization quarter, when a techniques and performance. mined also X,XXX to to facility occurs in to us our the ahead limits over-clocking a capabilities under halving bring has all of our optimize bitcoin of we prepare stay firmware us and and curve software to total air-cooled expect allow of for to under-clocking campuses. which This number the XXXX. We

mined of global our XXX%, represents hashrate. year, well fiscal in XXX last This we comparison, outpacing of For bitcoins. an quarter first the increase

increased XX%. by quarter-over-quarter production also We

mining, to model. us makes on introduces risks growth has execute we via we our mining destiny model a exposed North and We profits. This most parties, the uncertainties solvent. believe fastest exercise the growing, significant their to of efficient secret mining machines There proprietary and destinies. owned one publicly been the proprietary but mining We miners returns from have as in the proprietary are over many the company's procure in mining greater by bitcoin reliable of grown a like different edge. over operate of process. Contrast generated operate are proprietary importantly, that stay on power, also gives participating run exclusively the side us America. The We to that models traded company, believe company their reliably machinery this is a model, control believe by ability CleanSpark are operational with companies cut less asset-light In miners by almost other. as build the our the significant one the facilities, consistently out actively cared take our can and third most that and that asset-light there, control miners on higher strategy for hosting own through

conditions. our We bitcoin investors greater and minimizes it with even models the unexpected to giving react proprietary can various of real the plan provides First, optionality, the of time, predictability. impacts in model miners, mining difficult business us Out during for unforeseen market events.

with we We operate sites that also in multiple have control. own and complete different jurisdictions

exercise XX%. strategy. run develop mining Last the reliable. of infrastructure, we lines. Second, to one control ever, uptime necessary had ways our among and staff very we over We uptimes highest campuses the execute companies. and over highest teams and it have believe own time culture publicly makes We our our remarkable month, us maximum in our We more operational traded on

have uptime our team and rewards to who doing what happens in a XX% dedicated people share believe we're you have the work I in and underscore, when successes. the of who only the Now of

in And accrue to We benefits production means investments power long-term bitcoin parties. But in our lower costs, operating long Third, benefits. involved production rather cost costs, and directly long-term the producing variety shareholders assets amongst infrastructure providers or the being our dispersed proprietary staffing model the and run. costs other for than cost. those Many directly service the go third of lower factors introduces make including mining cost into assets. owning of long-term

very facilities up the our open We We our to not mining see the minds of but and are only has transformational them these on in Seeing bitcoin opportunity as every the hearts to campuses facilities in. effect mining to and operated winning we the and we a alike. and a owned work industry, competitive and advantage with. of proud operate as communities skeptics communities key bitcoin enthusiasts people the take

there, CleanSpark newest of our we've city that to recent the of in us calendar exceed team into up Sandersville, our And XXXX but guidance mid-October. home acquisition, to the Georgia, communities One be ramped is year-end our XX-megawatt to most facility an the not twice. closed allowing hashrate just quickly brought we once,

add the of tirelessly over in and megawatts complete the expect and expansion are also proud on partners broke into this XXX facility total. a megawatts total additional quarter, XXXX to an in are out We the Sandersville planning we the teams to megawatt X to Subsequent site buildout. working to that ground in exahash our by supporting particularly our day of of the day Washington. I'm XX expansion and well XXX end of for

long the proceeding buildings. concrete according example, lines. Construction an came pads were pouring before last is working start teams the for time to sun our to the As up Saturday

in house have end which sometime will a relevant keeps each also miners all building more of provider buildings, completed construction the our from and with the the community. weeks being to information that expected ready We regular X jobs tell share of in I construction all is be of we miners in take expect The megawatts May. Energization timely is Washington completed We provides partners and way. the receive will few glad late a in and updates the then utility city XX.X community. racked to and by of to resources you us can June.

very proud we that share witnessed me with growth the how has XXXX have are from great the transition hashrate over to XXXX. continue to the allowed future the to of triple you to We we've January to found plan year and past city January Washington. Allow us partners in to our rapid

viewed be should as best the performance. of future performance our past Our indicator

in pay how the with talking expectations take strategy we exahash our second financial I'd strategy greater by about year build how the detail earnings our per like the by it end plan calendar it, call, backs we last plan shared a XXXX. essentially, few XX you to to about moments our to for During guidance it. and now growth at of we meet that to talk and

we build like to talk plan I'd First, about to how it.

allow a exahash squeeze now bit X.X incrementally we have increase and will us operating per coming more to months, We this hashrate. expect out efficiency in to the second which

underway, which is XX,XXX expansion mentioned, rack I for result the over miners. space As Washington will in

ultimately so racked XXXX. and when of plan per as complete construction we can soon with months completion X.X the are on on we meet to We our over. plans, expect based handed the and we site partners. handoff that a go June, to This a expansion day as mix is the so substation of that miners in X.X target being We latest X.X the to to site second. intend of live exahash in hashrate we coming expectation the with line dependent to exahash the built our time increase completion us have have advance per go commence is year-end the our target. The -- facility will on our second the that utility our is expansion This brings live finalizing by in that our align power leaving schedules by Sandersville power date constructed minor exahash November the the

portfolio Sandersville to approximately bringing We exahash to per second, add per X.X exahash expect our the expansion XX second. total

the Now a to months. X per gap over fill second this XX next exahash with leaves us

We ability confident so. are to our in do

XX to greenfield or X evaluating and second an additional are and megawatts We acquire fill to targets gap per several to expect opportunities. new exahash acquisition XX source currently of the

appropriate. additional candidates multiple the pipeline have as we'll and We provide in details

we about not contractual completed. this the power other rights time, we I've when recently any to been hold Lastly, Lancium. the At have updates further do asked than still

We it let soon we'll the online and you not in outlook are come XXXX. beyond, expecting know. And have as any currently of XXXX we information more to about as

sourced at continues be full Over spot months, for to miners. a gone expect on Now we the rely brand have how to portion the we last fill market spot these dollar of at the new majority shelves? latest-generation The all and opportunities few we our market to We've inbox, the spot bottom prices. plan the to do miners for of purchases. of market these miners least secure to

prices strategy opportunities. are begin for large contracts once the future shift towards and We our for our starting the also in in expect tides and when to of again shift strategy part look believe is will the right be orders to coming locking to time We months.

upcoming on shares this about our even Central only Lastly, us are it the simply let we for number need access targeted the continue few to is provide flexibility We substantially plan challenging annual to trusting journey proposal shares. It hard issuance and shares we shares authorized have for market which meeting, quarter, flexibility from growth that To equity to share, share is provides a this thoughts shares us we us in maintain premised them. cash million use want That times. for growth. required thank capital want growth. note thank have but XXX just for important that authorized full the I teams to to this to market with these has XXX move for and our authorized the our that. I a at me as to all believe forward issue to their free quickly us Rather, why not shares not increasing these means This our allowed of is to taking proposed past. to we our would markets, issue to ever for grow us. achieving scale, work these is shareholders in to it. we increase we assets gives generate for path million that pay accretive shares guidance how flow. share to

but I financial call, well, that advancement strongly keeps grows fall, As keeps last price adoption said and will growing technological believe our recover. bitcoin is just year we rising. in after It a and year. and rise bitcoin Markets just

floor remind your in CleanSpark. you happen. are for Financial to We now support. I'd to as remind give indications Gary, to Officer, and starting I lightly invest do in discuss for our like colleagues And trust at to shareholders, is take the time that not our the to to the that financial shareholders you my us. the Thank place beginning. Thank results. choosing like our Chief I as seeing you are just all of as some I'd you we

numbers orange XXXX to page. Diving Zach. on you, attention want for Thank your bar year, into the our draw of this chart I quarter the fiscal first to the

You bitcoin deploying was our period. over due will months, an growth the miners year note we quarter in XXX% over same past we mined production of as that prior bitcoin. XX,XXX the experienced rapid that This over to additional increased XX the the X,XXX

However, see the about you $XX steep to period. price. revenue is strictly due will bitcoin recognized we that in million that same laps decline to compared in This

the end our over XXXX, $XX,XXX at $XX,XXX at just was recent over and bitcoin reference, price quarter. the of XX, For bitcoin was December of most

X% more saw quarter, bitcoin bitcoin greater September how the decline as see This XX, immediate the prior $XX,XXX story This fourth is chart to approximately price was bitcoin yet context as due the far also come you'll of in revenue. the quarters, bar we a similar at headwinds only Looking despite between XX% as prices into at we prices. a approximately have company bitcoin mined XXXX. puts of

be $X.X right-hand on bitcoin the last profit the of fourth which profit shows was saw directly slide, bitcoin gross When slightly in incremental despite elevated, were model million $XX in declined the in decline was from growth to the same This they just prior to over quarter, periods. immediate the attributable are the profitable which prices in side of decline to prices. the million, gross between Turning quarter. our quarter we profit business revenue can seeing This how compared decline gross year. our fourth a when

$XX we record net the recognized loss to due in primarily next X of due to dropped depreciation, was compensation $XX of point in net approximately to out with the we mostly net compared as of In million prior items. items with These $XXX Depreciation and the Moving prices QX the the that line. want in current stock-based on year. margins a terahash. was X the a high to slide. last respect of period. I to noncash income as depreciation million have large recognized the quarter, net Again, We GAAP a comprise miners million amortization high $XX to almost and million. $XX $X.X acquisition loss costs to million of bottom bitcoin million year recognized $XX.X current loss

compensation mentioned Additionally, compared and year expected was as quarter. immediately last come in number quarters, fourth to in as QX the compensation previous $XX this our relatively stock-based decreased down I've was million flat expense to in the from of preceding stock-based

the which the $XX net the loss significant to is compensation and to in partly our you'll recognized goodwill, from which see decreased quarter, stock-based million, charge attributed noncash in Regarding was fourth over quarter. fourth related reduction

did in bitcoin Looking was slightly as million. adjusted quarter prices EBITDA at we high forecasting a you'll prices to And operating how December, challenging a we negative resulted energy job of advance a was This EBITDA, on EBITDA and adjusted lower of margins. while compressed overheads. still $X.X recognized indicative see in negative fantastic due our a profitable adjusted operations of corporate recognized basis during team

negative we're feel expect this very not into in saying adjusted we While EBITDA quarter. I printing second that a comfortable the trend this to quarter, continue is

and our that since increase expanded you're XX% margins bitcoin As has significantly. our prices aware, price quarter end of the first almost increased in

are prices in will energy the the lowest future, some long time. operating at we prices as in predict profit can't we've bitcoin second in seen where quarter a a While comfortably the of we that will are say I go prices

our cooperate second much long as numbers uptimes. as quarter high extremely So so prices better teams maintain and to bitcoin we the operations be expect

balance Looking at December and over sheet. million. of total million brought cash on had That liquidity our bitcoin. hand $X at the We $X XX XXX to

than almost party over have energy for held week, that a total also million. a closed footnote subsequent $XX want point of will XX-Q, with is our million assets. a the in be event legacy to final We today. On in assets for further out third which Form is note, to sale. sell deal described debt less million this our $X we filed This I $X

is paid quarter, peers the total debt balances. the of of During X% $X.X which balance. have higher million approximately first we our Many down our of debt,

However, CapEx. have take rather now I'm future, could that speak happy one and sheet, want a to few on balance to leverage report clean a to in discuss in the I to will I healthy minutes. Right additional which

in which significant we expenditures. industry aware, an investment you're As requires are in capital

As December exahash. XX, had deployed, representing of XX,XXX we almost machines X.X

of point, for what to like While company looks get this the calendar CapEx to share want I remainder significant to this year. CapEx the incurred

on the we XX that year. stated will December by be discussed we machines. exahash an call, required of That additional As this have we exahash of earnings X.X last at XX

from you, went X.X Just XXXX, to exahash exahash XX, XX we X.X to months. at remind December in all

As primarily Zach there, XXX will get capacity online. additional said, of we have confidence through we the coming megawatts

costs expect total $XXX X.X exahash our at With range million, prices we've those efforts well. of to in megawatt to discounts. $XXX million we million in and $XXX,XXX coming to the our will and the in current that and purchases miners which the construction approximately additional represents We to coupons of expansion CapEx be Washington expect build announcements to are already the for out paid be for miners expected respect as million make Sandersville, weeks amount, approximately before $XX regarding sites. Of $XX a

exahash in range to of to the models on get purchases us speed model be miners miner our XX,XXX Our to to different miners. and XX,XXX comprised of XX depending could goal several total, between throughout XXXX help could the and

miners, deploying which have and very However, focused ROI. purchasing the we remain on greatest

new the other XPs there As value a is models. and disconnect we BITMAIN current Antminer mentioned, of between still cost previously

more buck hashrate get our CapEx mix for our models. eye So thus non-XP we of proverbial keep a and the the XP careful bang by optimizing we as on greater and

follow up, Before of few Zach's to comments. I I want on wrap a minute to a take up

seen very has growth explosive comfortable in CleanSpark Now We XX feel the with our months. last plans.

current December laser-focused clear discussed, our Zach XX XX with the of exahash path by executing this we to As are on goal year. of

in miners maintain calendar respect are strategy, term direction in us M&A, we that regarding strategy active. been guidance. With We date and we to has and our and the this infrastructure in most long of one same towards active machines all vision continue our to will the be rowing year-end a one long-term to the and have we for acquiring

decreased have flow the pick New deal holiday While Year. into since going the activity season, we seen up

we bitcoin that We are our levers still we're to as which has deploying That be calculated Zach efficient that of include of which X capital. use these when have and to the we proposal mentioned, will changed. continue flow will conscious capital pulling and strategy methodical million we meet emphasize start find of the now any as after accretive as a raising buyers in want shares. finance strategy our and as metrics want sale market our this count equity acquisitions, to of when to outstanding ROI and cash the note, is be To and that to share producing free and increase continue capital management XXX shareholder levers. I not to On to equity. And available acquisitions, responsible possible the deployment right shortly to us,

build use on fluctuate will have in balance, bitcoin advantage depending month be allowed month huddle us huddle [ our of. we to Therefore, prices take we in our back Additionally, the opportunities may to opportunistic marketplace. balance a the balance increase from to the recent ]

market. do apply time, month-to-month haven't we continue increase leverage So this final about our are expect when we cash the believe conversations CapEx and may of we few but cost believe CleanSpark so we but amount in much ago, And minutes hashrate differentiates we companies. reasonable balance to with be debt it decreases want a also a to vision that capital. On what note, to purchases strategy balance our and with Exactly sheet. to When and top huddle a time drive tone to for right, small mining lever, huddle to reports, at that of the where looks the a our strictly in industry. this talked note, flow. On for goal like have shared while also is of we discuss prudent over fluctuations lenders I do did be and goal in our proper we have take our that achieve there in expect year we I we other other Not from will X a Zach rather quickly, the model X what being business set miners miner. only about a

decision. XXX% may strategically You to we was not it prudent business sell and was and strategy huddle our remember, the was stated that that sustainable bitcoin plan

not selling balance As high XXXX that a at. We we helped bitcoin sold reported the calculated the much XXX% is mined of purchased believe experience now We're to at bitcoin know, buyers it even is idealistic or compared XXXX, and they our global we have oftentimes successful recently capital closing year. thoughtful orders this miners of only who the of us seeking hot the and that loss has in were in and accretive which last are strategy to what in flow. In the as underscore previous at closing, over of team hashrate, and and but growth have have bitcoin tell of that makes in strategic, sauce not can't we've even grow this and you also work. members. XX transactions can produce cash value enough the acquisitions. And we our deals in percentage secret total months, the our we completed market, sourcing past been meaningful the out They from that human bitcoin

brings XXXX time. continued Isaac, there of you. will While we quarter, you been to year macro over be to very back last see a your execution and have excited headwinds this growth. Thank as believe personally I'm what the for

line concludes would like Thank open you, We to from questions remarks. prepared the Audra, this our Gary. now for analysts.

question first at from Wainwright. Mike Instructions] to We'll go our Colonnese [Operator H.C.

bitcoin management prices our levels. look at view, first still these and question on is capital subdued allocation strategy. In your My

the you before you're point holding do to on that portion making to might bitcoin need factors what start would think of at larger see And So a you mining? you what call?

joining good and Great. the Mike, for call. to thanks it's talk

like we strategic this always an with ideological Just we said, than approach. approach rather very

to indicators. with We market will the you. We really measure look by agree this

expect bitcoin as see I we is, direction, real-time the of are again, balance intend why how think a that I add to a I is to we bit which tides and over change a said, But that. said, that let to basis. With to turning ideology Gary that approach want strategy grow. on this see do huddle is I'm going to little

the Thanks for Yes. Mike. question,

I particularly huddle these are. reflective at think you price the our bitcoin can be margins look balance, at to what levels of directly

expand, couple are now But a that the huddle accelerate. I'd it's be. the on a whether expect deal need a as a that days, by close the So really inflow, with having of can managing lot a market. miners day-to-day balance balance of or bitcoin of because on to infrastructure sees basis available we're Zach if margins matter we And strike of and deal bitcoin, right quickly

be thereof. and to of prices So, But to that continue we'll reflective going really, bitcoin opportunistically. balance is huddle directly that the use margins

any That's any locations these evaluating to PPAs? great. year, support greenfield offer any growth color can lock you the considering? in sites color. you opportunity talk the on plans of additional the appreciate specifically, sites to provide the if I the And that could you're for if you're an to And

Yes.

a at, can't we The is very wouldn't that kinds opportunities appropriate just say mix one and no course, want the factors so. it cost. into. But to basis. regions a into course, us to say of to speak they we the needs long-term least criteria going ultimately, to looking power criteria to a that lot addition low-cost to lot a we're of of of specifics go be put meet. best, that but a of that's to because to thing everything going look do a we of access investment PPA in I is you we lot to a to not have that And I will energy can So It is, do give that have. in have we we're course, all in a on be very have I the community to can us and of they have at pick tell important that, meet which, to the strict that in

Fitzgerald. to We'll go Cantor next at Josh Siegler

continued the always results January. on great really execution in to It's great see. and Congrats

question, to dive energy For seeing so trended you quarter what into speak how you're my into cost. first I'd and love during to Can XXXX? they the far

question. I'll into Josh, great that. jump

So year. the Everybody it side. energy on challenging XXXX was a knows

do $X.XX our that prices across we a and Our as as we've back and range. now most said, portfolio, at around were at to I'm had position entire navigate rise example, really because able were look quarter, facilities. they those But seen to. With average. that in hosting. a seeing strategy. ending saw entire right last the we importantly, average our you $X.XX. start management X-day to we've our And prices these average all we average, those $X.XX if are $X.XX September, is portfolio on price for fiscal recently where power an at $X.XX. We're we right around prices $X.XXX and are at, consistently all third right seeing well been also we in energy of the QX our low name active owned operated put and fiscal they around range rose the And across last to quarter, And did the prices see prices going and

where the we really January needed back godsend tough tides the kind margins we a then to that to shift December month So of was saw great. be wanted be. and them bring and -- was it It looked we

with Appreciate you're how ] Understood. you thinking the update That's and MEAG helpful costs [ forward rest about of to in of And then of terms now your XXXX, for provide that. relationship color. the an power very can looking right year? rest the

Yes, conversations. having constructive really absolutely. We're

of us. One the active deploying. management price energy of strategy opportunities front we is fixed actually We're in finding we're things that we're the outperforming the have

hedge of buy based so going patience is the power when that for other them. And on to hours there, part reason side avoid is strip, the manage because dealing feel outperforming -- the And is a really with is, our making you like price a strategy the this. you bet of be upside is example, to few downside. again, our that, locked-in in our we a average here a power that, hours on And ability the or few or and

come that prices. going that a right wait to think as to for providers on think it's time So where gas in our to their country sure but that's will possible. winter drop are to with do natural really right side it's closely. is heels it little seeing the be especially prices, to that really to We I and winter make energy in of see happen forecast want and long-term revenue. and a what very we're going their we energy follow as low probably markets whole there going impact going and going early the until wholesale to we're we strike as the and energy think providers on is lock the energy we it's to cool time And generate we being we markets mild happen because as and pick this operate, this they're long the something continue And term a a trajectory. And positive as what prices, energy a

BTIG. at Lewis Greg to next move We'll

fact differentiate XX get was What as about assets. of Zach, from it that about I getting the type kind path -- on higher have yourself you to that route? what sounds kind or started XX co-hosting go the differentiated CleanSpark? potentially to is around there's talk just interest of lot continue of just potential later in opportunities to whether have any down year? seeing or as you think the appetite low the to thanks even doing physical operator. And given all opportunities or kind you want a an that detail to this exahash. your But you And side, did for I something is are of of that leverage, towards you mentioned CleanSpark, of the clearly, of like thoughts around kind M&A your

to a I really really the think spoke with that question us the proprietary great and an in there, think want as to that's we And reliability mining it's we provides we model And to see. that important question. efficiency ask. No,

is but I human going And sauce. the you what team think a is to the human us I happens. we benefit things a produces are natural component said, dedicated of way a as we great can And results. hosting thing just do, that's have that our secret better that think, that that tell partner, Gary We directly that to in

when them a home. So results. see better to have without should to on we I seek mining growth, really long-term a miners towards do really opportunities then, rotate be place, can being give we basis mining. model produce our time place plan directly proprietary out being But when hosted to a because for truly a a have proprietary even believe would look that would say push that flexibility we but we We and a and we to or we into

and the have looked your potentially down. just And co-hosting where contracts it kind to guess, of 'XX, But that it that roll 'XX, was I of comes that existing hosting you amount related had optics like slide Is or was it that maybe progression off? there like the of in to point, looked a slide. the you

up increasing slide. put -- on plan terms don't the on now or megawatts have XX we right near we capacity don't the And of in we anything plan on hosted. We that that

it's them just because keep relationship plan miners scale, on We'll those decision. mining, end going different plan game in a to in now. We we're current our showing life we keep anything plan don't quo. proprietary increase really status we halving. running really the and make on probably until changing So they're there maybe It's but holding really, of or our really until

like then realizing developing technology, gaining traction. still it's it And it's but a just seems

how out opportunities As you infrastructure, immersion that future the potential, maybe about to thoughts you think of around leanings deploying about to or at continue think build your sites? and any kind

It Norcross. our you to supports Yes. at build tell Sandersville evaluating are more infrastructure maybe part We've takes it. to of It capital. Washington, absolutely to facility that that right into cooling. really great now And not. a in expansion immersion I'm we're that In comes our And why. experience in had with going immersion the down incorporating we site, capital the

next cool it that we over-clocking supportive. that in with under-clocking market, an like, that do do also bit. the is and in advances in think What air environment. mining changes immersion can does been But give we the we're as we hasn't you flexibility seeing over-clocking, really current market, that under-clocking, Now can there's a what In little lot I a bull it. though, about

there So and ultimately and down as the to bigger make immersion improve likely we that gap technologies what we're begins and It's when towards that's takes build opportunities it air closing capital comes cool immersion. this better that versus we'll get for close, And gap build to evaluating. moves are -- to cooling.

Brian Markets. And Dobson go at next Chardan we'll to Capital

how longer-term taking guess, company view, the are the you halving? ahead that bit impacting of XXXX competitive little I do So of positioning a a And the landscape? how you see

Yes.

of is efficiency to our miners. increase always Our the positioning

in we ago, or our improve terahash So a and XX% fleet watts you'll improved plan that continue was average efficiency and see to to to that. the close tools to year XX-Q, XX that per about we we've identified

in that a that where one. It's a we in in place where side of a our lastly, matters. making to lot the think the a the over-clock. And it us from going are upgrading miners. a operating lower. you're we position X, improving add this we're when really pulling a So mentioned, sure the we important is infrastructure X single I more where I and are all on long-term to long-term onetime efficient be drops efficiency give halving. And to can technologies, is and than it's making step take will be bring only hashrate going cutting most of occurs factors investing better always And remove are or we the to competitive can it be edge for the think least as is into right position machine, be, cost because deploying hashrate really but puts us you building the and down Step we on advantage That a investment it's those there's of important. every technology staying off not what's as time efficient when own landscape, at that but hashrate little under-clock, you really, those of we're efficiency and significantly actually did sure just low-performing the so both then under-clock a can string bit,

a to deal, add we year to compelled But We this things that, want have we to base talked about if our XX that just too. out I M&A. few do a and good Brian, don't is and Like be take smaller feel bitcoin executing case go obviously, we see not exahash. call can't miners advantage looking of to trouble. halving, a have going is capital and really it, think $XX,XXX They're if the potentially we'll going that that miners of close lot that. But markets. to private at, there's to access to

X and we we've good position similar at deals infrastructure months the so. done assets company or be to what want off pick to really to the So able to in last

want halving out around companies the standpoint, we So right some the other to forward looking really really are from to game. get that a some of of positioning opportunities

at next and you That's to I conference forward having the very helpful, look month.

Thank you.

All for We I'd Audra. and a to everyone you, questions for a good to good evening. your Back us thank you right. today. wish and joining listening like afternoon

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