Q3 2021 Cipher Mining Inc Earnings Call
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Good day, and thank you for standing by welcome to the side for mining third quarter 2021 business update conference call.
At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question during the session you'll need to press star one on your telephone.
I would now like to hand, the conference over to your speaker today, Laurie Barker from the Blue shirt group. Please go ahead.
Good morning, ladies and gentlemen, thank you for joining us on this conference call just south of mining third quarter 2021.
Non comparable pilot Chief Executive Officer.
Chief Financial Officer.
Alcohol review, our press release and presentation, which can be found on the Investor Relations section of our website at investors that like the mining dot com.
Please note that this call will be simultaneously webcast on the Investor Relations section of the company's corporate website.
Conference call is the property of typhoon 19 of them keeping rather than production.
Pivoted without bias.
Before we start I would like to remind you that the following discussion as well as the press release includes information forward looking statements, including but not limited to Cypress financial outlook.
Its plans and objectives and other future events and developments, including statements about the micro potential of that business operation potential competition, and our goals and strategy.
These forward looking statements involve risks and uncertainties that may cause actual results to differ materially from those discussed additional information that could cause actual results to differ from forward looking statements can be found in Cyprus periodic and other SEC filings.
Forward looking statements in this.
Conference call, including responses to your questions are based on current expectations as of today on cycling assumes no obligation to update or revise them, whether as a result of new developments or otherwise except as required by law.
Now I will turn the call over to Paul.
Hi, Louis.
Thank you Laurie.
Hello. This is Tyler page the CEO of site for mining and I'm going to discuss our third quarter today.
So I'm going to begin our discussion by reminding everyone that.
Mining is a U S based industrial scale Bitcoin mining company.
We recently completed our listing on NASDAQ the ticker CIO harm and in our transaction to go public and close our pipe deal. We raised net proceeds of $391 million.
We are currently executing a strategy to develop and deploy five datacenters, where bitcoin production is expected to ramp up significantly throughout the course of 2022.
When we think about safer compared to the competitive landscape, we have a series of long term competitive advantages.
Namely our five year power purchase agreements, which have compelling weighted average power price of $2 72 per kilowatt hour.
We also have purchase agreements that we have executed for mining rigs that are capable of generating up to 19.5 exit hash per second.
Machines that are scheduled to be delivered over the course of 2022.
And we have a long term agreement with the experienced team at Duke theory for operational services and equipment.
So when you think about us versus the competition focusing on the key needs of any successful large scale miner, we feel we are particularly strong.
In terms of our access to power at a cheap price.
Our access to new equipment with the delivery schedule for next year.
And then our access to a best in class operations and services team.
So I think before we get started it's helpful. Just to reset everyone to where site for mining is in the context of what has been a very busy year for bitcoin.
Just recall that bitcoin came into the year at the beginning of the year around $30000. There was a fair amount of enthusiasm early in the year and it was up over 100% had an early year peak around the coinbase IPO back in April where it was up over 100% in the mid 60 thousands.
Over the summer we saw some doldrums in the price, particularly newsworthy story for us was that.
China shut down most of its mining capacity over the summer.
Wonderful for us considering that we came to market as a U S based bitcoin minor and we have always preached a focus on U S, becoming the United States, becoming the real.
Hum.
Of bitcoin cash rate in the world.
Recently, the bitcoin prices peaked back up we've had a series of interesting events in the marketplace, including our futures based ETF and in fact, we just this week had made all time highs in bitcoin and so a lot has happened in a short year. When you think about site for mining audits happen for us as well so no hooper as a newer.
Company, we were created in January of 2021.
And we were created as a spin off of an opportunity set from Bip Fury.
European based privately held bitcoin mining company.
And we were spun off the focus on U S. Bitcoin mining operations and we went public a spec we have gone through the.
The entire stack timeline, we merged with a company called good works acquisition company.
We are in the ear that business combination was approved in late August and we began trading on NASDAQ.
On August 30th.
As our stand alone public company under the ticker see ifr and it's important to remember that a lot has happened this year for bitcoin and us and we are coming to market as a greenfield company. The concept behind site for mining was that we had an outstanding opportunity set to capitalize on building data centers in the United States.
And to build a U S based bitcoin mining champion.
And we have always planned to take our transaction proceeds from the closing and then implement that plant. So we've had a very busy start to our lives. We completed our first quarter at the end of September.
And between going public and now for.
From a materiality standpoint, we have entered three material contracts for equipment purchases from a diversified group of mining rig suppliers, namely bit main micro VT Fury.
As we look forward to flex our long term advantages. We now are a publicly listed company and we will have access to capital on an ongoing basis, which is an important thing as you're building a large scale bitcoin miner from an operational standpoint to be a very successful large scale miner you do need access.
The power, we have that with up to 910 megawatts.
With our current Counterparties and those ERP, a five year plus contracts. They are long term not short term.
We also have a very robust pipeline of future deals that were in discussions with.
The energy industry in particular.
In the United States has seemingly become more interested in bitcoin mining, we are having discussions with major <unk>.
Our producers that want to have a bitcoin strategy I would note that one of our current counterparties on the power side, we've actually structured our relationship as a JV and so in that joint venture. We are working together with the power provider to build a bit of bitcoin mining.
Operation.
I think that the scale ability of that structure is something that could be very strong for us as we continue to talk to other potential partners that want to have a turnkey solution for accessing bitcoin mining.
On the equipment side as I mentioned, we do have our diversified suppliers I would note in particular that we have a seven year framework agreement in place with bit theory in particular that granted a right of first refusal on machines as well as the most favored nation pricing framework to purchase those machines and so.
We have a long term advantage on equipment as well lastly for operational expertise, which is sort of the the last ingredients of being a successful bitcoin miner, you've got your capital you've secured your power you secured new equipment now you need to make sure that you can get everything up and running.
Yeah.
Thoroughly as possible and with maximum uptime, we will be leveraging the very experienced team at bit theory.
For operational services.
We do have an agreement with them bit theory has been in the space for over a decade running bitcoin mining operations.
Next I want to talk a little bit about our approach to thinking about environmental issues as a large scale bitcoin miner.
I'd like to highlight our key points when it comes to evaluating the site from an environmental perspective.
First of all cipher has no direct purchase agreements with coal.
Our generation facilities.
Coal based electricity does have a particularly large amount of carbon emissions and.
You can see in our materials that it generates.
Our higher than at a higher amount of carbon emission than the average U S electricity generation.
At Seifer in addition to not working directly with coal providers, we have a preference for renewable sources of power or nuclear.
In fact, our first site that we plan to have online is a wind farm, it's 100% wind generated power that is off the grid now one of our.
Facilities that we planned to come online shortly thereafter as a nuclear power facility that does not have a mission and so you know.
We're getting off to a good start when you look at our average port the weighted site portfolio of our initial deployment set you can see that we intend to have about half the total.
Carbon emissions of the average user of U S. Electricity. So we're starting off already on our rights on the right foot. We are well ahead of what is typical in the marketplace, but moving forward, we want to make sure as we deploy our centers, we measure and report our emissions and then.
We're going to target carbon neutrality in our mining operations by 2023, we're currently evaluating different providers of carbon offsets.
And as we deploy and measure our emissions, we will be putting in place an offset planned for the emissions that we do have.
So with that opening overview of sypher and sort of where we are philosophically, let me get into our implementation plan and strategy.
So first of all let's talk about site readiness I mentioned that we are currently in process at five sites we are deploying.
There's really three phases to site readiness and the way we think about it the first phase is power readiness.
And what I mean by car readiness is you can think of everything that is required for <unk>.
US to have a mid voltage connection point to draw power from out of state and so that is both contractual relationships with the power provider and the necessary land, but also.
Electrical infrastructure that would be needed step down transformers and sub stations et cetera. So that's phase one phase. Two then is what I'll call infrastructure readiness and you can think of that as everything that is required to take the power down from our mid voltage connection point to.
To the outlets.
Literally like the plug for a bitcoin mining rig and so that consists of a series of Transformers switch gears cables, a fair amount of site engineering.
Container to hold the mining rig.
<unk> is really the last piece and so we are building containerized data centers. These are facilities that have.
Many repurpose shipping containers on site that are full of technology.
Technology and built to be extremely stable robust and create a lot of value.
You set up your data center. The last step then to bringing our site to readiness is getting your mining rigs and so I'll call. It mining rate readiness, you've got your power you've got.
A place to put the mining rig and then the mining rigs are on site and so when we look at our deployment going forward from a power and infrastructure readiness perspective.
Looking forward, we project that.
We will have a total megawatt buildout of 60 megawatts across our initial first three sites Albert Speer and cheap in the first quarter of 2022.
Now outdoors beer and chief are sites that are subject to our joint venture.
And that joint venture is one in which.
Seifer owns 49% of the economics. So you can think of 29% of those megawatts as belonging to cipher.
In quarter, two we will add on a co shocked in from a power and infrastructure readiness perspective.
Shocked into the nuclear based power facility in Ohio.
That is a 40 megawatt facility that we will own the economics, 100% of and so.
You can see the corresponding numbers in our deck, but that will bring our total deployment to 100 megawatts by the end of Q2, 2022 and safer share of that $2 69 megawatts.
And then we really ramp mid year going into quarter three when we bring our Odessa site online from a power and infrastructure readiness perspective and also our.
Phase two expansions at both bear and cheap and you can see that the total megawatts. We plan to have from a power and infrastructure readiness perspective ready by the end of the third quarter of 2022 will be 379 megawatts with 311 belonging directly to Cypress.
I will caution that this is our forecast now and it's our best guess, we do live in a world of supply chain challenges and Covid pandemic, that's not completely over and so.
This is our best insight looking forward, but of course things can change.
So that leads me to mining regretting switches the last stage and before we get there I want you to understand tangibly, what we're talking about with power and infrastructure. So there are a series of pictures in the material that will be posted with this release.
But firstly, we have to construct the containers we've got.
Dozens of contractors working.
On a lot of containers right. Now these are repurposed shipping containers that have quite a bit of technology in them.
If you if you click through the pictures in our deck you will see.
In addition to just some heavy engineering sort of cutting open and building hinges and putting in a walls for servers et cetera, you do have a fair amount of cables networks, which is temperature gauges.
Control panel et cetera that go in to these proprietary.
Boxes that within our big few redesign that we have purchased.
Once those boxes are ready, we will truck coming out to our sites and put them in place and so again looking at our deck, we do have pictures of.
Our first site that will be ready at hours, which again is a 100% wind power generating facility.
You can see wind turbines as far as the eye can see.
Looking at the site itself, there's a mid construction picture we've got in there that shows some of the trenching for the cables the transformers being laid out across a lot as well as the foundational supports for the boxes that are coming out and so.
Those are life pictures from Al bores and in short order. When this is finished.
You will have the facility it looks somewhat like the facility on page 13 of our materials. This is a live containerized datacenter.
It has been set up by the Fury in a in a slightly cooler climate, obviously, but that's what it is trending toward than what it is going to look like as we have tower and infrastructure readiness available at the site and that leaves us now with mining rig readiness.
So.
Talking about mining rig readiness and delivery, we have to make a lot of strategic decisions about.
What to pay for mining rates.
There's really a spectrum you can buy mining rigs for near term delivery for a large premium.
Or you can try to buy mining rigs in large scale over time, if you can secure them.
A potentially more favorable prices, we have tended to based on what we have seen in the marketplace as far as prices for near term delivery. We have focused very much on maintaining our price discipline based on not overpaying for hash rate and so we analyze things on a dollars per Tara.
Hash framework.
If you look across what we our anticipated weighted average cost for our mining rigs, we are paying $38.58 per <unk>.
We think that's very compelling that's across our portfolio of three providers <unk> micro bts.
And the theory and the goal with maintaining that price discipline is to make sure that.
We're being disciplined around our return on investment we don't want to overpay for hatch rate. This is a cyclical business, we want to make sure that just like we maintained discipline in what we will pay for power at a site, we want to maintain discipline on what we pay for hatchery.
And what really happens when you combine those things is that you end up in a situation where weekend then rely on our long term advantages again, we don't want to rush and overpay. So.
If you look at page 14 of our materials you can see a monthly delivery schedule for our three machine contracts aggregated in one place.
I would note that this is what is in the three contracts as the delivery schedule.
Again, I would highlight the risks of the world. We live in that there are supply chain issues that we may not be able to forecast pandemic. Many things can happen, but this is what we have entered into contracts for and so we are reporting the anticipated deliveries month by month I will highlight that.
The bit theory contract in particular has flexibility it has a minimum purchase amount as well as a maximum purchase amount.
We've got them both illustrated on the slide and when we report number of how many machines, we're buying I know some of the mining companies out there like to point to the number of machines. They purchase we prefer to talk about the total hatch rate generated by machines that we've ordered and thats because some of our machines are.
Yeah.
Frankly, they're nearly have nearly twice as much cash rate per machine.
The bit theory ones in particular, and so if you can see this scale by hash rate, you'll see at the bottom of page 14.
Across the bottom of the screen you can see boxes four months five months. The total hatch rate represented by these monthly deliveries as well as the cypher mining portion of the hash rate represented by these deliveries.
As I mentioned, we are ordering machines, some of which will be going into a JV, which we own 49% up.
And then you can see projected out as we scale later in the year and some of our large orders, particularly micro BT and the purity orders come their deliveries begin to arrive you can see both the minimum amount of hash rate that we have contracted to purchase as well as the maximum amount across the top and you.
C C.
If you go out to December we showed that.
You mean, the maximum bit Yuri machine order, we would've Levered 17.3 exit hash of machines that would belong to cite for mining and 19 five exacerbations overall.
I wanted to finish by just reiterating some key statistics for everyone.
As we build out that they should keep in mind, so specifically I want to reiterate that.
The pricing discipline, we have shown has manifested itself in a in a $38 58.
Average price per ton of hash across the safer portfolio.
We have purchased machines with an average weighted average mining rate efficiency of 33.2 joules per Terra hash.
We have a weighted average power price of $2.72 per kilowatt hour.
And lastly, we havent anticipated infrastructure capex cost per megawatt across the portfolio of what is anticipated to be about $450000.
I would note again like many things inflation does impact a lot of our work streams and a lot of what we're putting together.
And this number could move around that has moved around since earlier in the year, but that is our best forward looking estimate that we wanted to arm our potential investors and analysts with at this point in time subject to the idea that it can move around.
So with that I will end my remarks, and I will pass to Ed Farrell our CFO.
Thank you Tyler and Hello to everyone on the call.
First let me remind everyone that we closed the transaction in late August and as Tyler mentioned earlier, we received net proceeds of $391 million and immediately commenced our deployment plan to build the data centers to support our bitcoin mining activities.
We are Greenfield company that on September 30th was in operation for about 30 days and as such our financials are relatively benign.
That said I'd like to walk you through some of the more significant items on our balance sheet at a critical in supporting our plan.
Within days of closing and receiving the proceeds from the transaction we entered into agreements to purchase in total 87000 latest Gen mining machines from both <unk> and micro <unk>.
As a result, we have $74 million in deposits on the balance sheet relating to those agreements and expect delivery in batches from January 2022 through December 2022.
We committed capital to support obligations that are required to being a public company.
In addition, we have security and collateral deposits of $9 4 million relating to purchase power agreements with one of our energy providers relating to the build out of our data center.
Finally, we had $282 million in cash at the end of the quarter.
I think it is important to mention that subsequent to September 30, we entered into an agreement with fifth period to purchase 28000 to 56000, Nextgen mining machines with delivery commencing in June 2022 through December 2022.
Deposits the disorder was $10 million.
In conclusion, I would state that seifer Greenfield Bitcoin mining company to dwell on its way to becoming an industrial scale bitcoin mining company dedicated to expanding and strengthening the bitcoin networks critical infrastructure in the United States.
I'll stop there and Tyler and I are happy to take your questions.
Thank you as a reminder to ask a question you will need to press star one on your telephone to withdraw your question press the pound key.
Again, if you would like to ask a question press. The Star then the one key one theres touchtone telephone.
Please standby, while we compile the Q&A roster.
Again, if you would like to ask a question press star one.
We have a question from Aaron Rakers with Wells Fargo. Your line is open.
Aaron Please check your mute button.
Sorry about that guys can you hear me.
We can.
Congrats on the first the first earnings call hopefully on a path of anymore.
I guess I first wanted to kind of.
Asked about.
Regression of the minor deployments, what what are you seeing today in terms of the progression towards the delivery given obviously, a broad amount of industry supply constraints and then I guess following on that if I.
Look at the progression of your planned care at Ash.
Paas SaaS capacity by the end of.
2022 can you help us understand the importance of the bit Fury.
As they come into the model, what's the what's the capacity of those systems relative to the micro <unk>.
And the main systems, just trying to understand how you can leverage that fiduciary relationship strategically.
Sure, Yes, thanks Erin.
When it comes to mining rigs I think let me start with the beginning of your question sort of thinking about supply chain reliability. It seemed like you were alluding to and I think this is a big reason why we are working with.
Multiple different suppliers right I think we.
We have.
Suppliers from different parts of the world using different categories.
And with both proven and tested machines and newer machines and so managing the risks around thinking about deployment with mining rigs. Our best approach is to take a diversified approach and so that's kind of the background I think that what you were getting out at the beginning of your question thinking about sort of supply.
And reliability and thinking about it now from a deployment perspective.
As you get the sense from our presentation, we're lining up a lot of different work streams right. So we've got five different sites and different phases of construction and preparation we have a plan to line up the machine deliveries at.
At the different sites that are in line with the schedule of <unk>.
Of course, there is some flexibility in this so just thinking about when the machines arrive.
The bit Peary component of our order is big I mean, you can see it if you look at page 14 of our materials.
Sort of a bar chart, you can see that it represents.
Between and roughly a third to half of the Paas power that we've ordered right and so.
It is important to our plans. We're excited I think the biggest thing about that relationship. Obviously, we do have a special relationship with bit theory. It has helped us to get a price in terms of machines I think we've got decent prices across all of our contracts, but obviously we.
We have sort of a special pricing framework there.
And that has helped strengthen the overall look of the rig fleet.
And they and the capacity the tear has capacity of those systems relative to the other ones were probably in that call. It 100 110 right here in Quebec.
Right.
Yes, so in the and this is in the contract the machines from bit here are about 195 Tera hash per second estimated.
And as is typical with those machines.
Typically like a plus minus 5% for particular machines and if that's consistent with all the providers.
That is the estimate I would say that also.
Those machines are physically different feel like they they draw more power as well so from an efficiency standpoint.
And it's just a physical standpoint.
We like to break things down to the per terahertz.
Level in that so that's why we stress when you think about machines sure if youre buying just micro <unk> and <unk> kind of top of the line machines, it's pretty easy they're all about 100 <unk>. We've got this blend and that's why we take it down to the sort of per Terra hash level. When you think about rig efficiency and costs.
And what dictate.
98000 versus $56.
I would assume your focus is on building out as quickly as you as you can what's the determinants that brings you to the low end versus the high end of that range.
Sure. So so looking out kind of far into the future beyond what we've talked about in the materials here.
We continue to have sites that we anticipate bringing online, but they may or may not be in a place where we're ready to report that power and infrastructure readiness estimated date, yet and so what I pay as we have a pretty robust pipeline.
Both with our current providers looking at potential sites for later in 2022, but also a lot of the discussions we've been having and we alluded to this earlier, but we.
We do see at least green shoots in the.
U S energy industry, where a lot of the very large power producers in the United States are now taking a bitcoin mining strategy very seriously.
So we're having lots of interesting discussion that large scale and the idea with the flexibility and that contract is to potentially take advantage of those opportunities if they come available.
Okay. Thank you.
Thank you Eric.
Thank you again, if you would like to ask a question Press Star then the one key on your Touchtone telephone.
Yes.
And we have a question from Kevin Dede with H C. W. Your line is open.
Good morning, Tyler. Thank you very much and thanks for taking my question I appreciate it.
Of course, Hey, Kevin how are you good.
Great to talk to you again could.
Could you just give us a little bit more on your supply reliability.
Are you intending to fly your main and your micro beauty machines in.
We are we are anticipating airfreight on all our machines and we regularly check in with our suppliers.
To sort of re underwrite the delivery schedules that they have represented in that we've aggregated in this presentation. So I am well aware of some of the recent <unk>.
<unk> challenges that I've seen at some of our competitors in some of the creative ways they've helped that.
I'd say like many parts of the supply chain that we're managing taken.
Taking this diversification of suppliers approach and maintaining a constant contact with them as is our best risk mitigate and of course, if we get to the point, where we need to be creative about getting the machines here, we will be but at this point, we will be doing airfreight and hopefully that keeps everything as we anticipate.
And the Big question is you know you always get this one for me is just the progress you've seen in Victoria reason machine design.
I guess this is your press earlier gave us some specs and you alluded to 195 Terra hash got it I think I saw six eight.
Kilowatts.
I'm wondering if you think there'll be UL rated and then what adjustments you'll have to make on your.
On your infrastructure in order to accommodate a.
Either or something drawing three two versus something drawn six eight and right. The accommodations that youll need for your switch gear right at the mine are you at the minor point, but I'm sure that you've thought through this with your team.
Just curious on how you see it.
Yes, absolutely I mean I think.
Yeah.
I'd say, we're an ambitious in addition to being a new company from a public listing perspective, where an ambitious one and so our ops team and the folks we have under contract with bit theory from an operations perspective.
To manage that as part of their work streams sort of what tweaks need to happen at each site, depending on which miners were deploying at a particular site. So the good news is historically.
Bit Fury machines, obviously, the bit Fury deployment team in.
And their containers.
There have a very strong understanding of the engineering necessary to accommodate their machines.
And the other piece I'd highlight is that those same operations teams at victory have deployed machines from micro V T and so to answer your question, Yeah, I mean, if customized and its all part of the work streams at the different places that the boxes are slightly different from the outside they are the same but when you talk about.
Cutting the server wall.
Analyzing everything like heat generated in court length for hundreds of machines et cetera, as well as.
Dialing in the power that's all part of the engineering process, but again, we're working with an experienced team that has specific direct experience with that challenge. So we.
We don't anticipate any issues.
Fair enough and then a little deeper just on their progress Tyler's.
As best you can.
Relay.
I think the last time, we spoke you felt that they had.
The chip design set but I know people are having a tough time getting wafer starts I'm wondering what you might be able to share on.
On their fab.
And.
The progress that you see them, making there.
Sure.
So I guess, let me start by saying that though they are <unk>, our largest shareholder and near and Dear to our hearts.
I don't have the kind of insider picture on everything that's going on on their design and manufacturing anymore, but what I would say is.
We are at the point, where we have that purchase contract with them and so their chip they had relayed to me.
Has completed the important pieces of the tape out.
Process and that they continue to work with their fab two.
Meet the timeline, they've got which in their contract to anticipate.
June delivery of machines.
And that is what's what's lifted and then we break it out in our materials that is anticipated to be a June to December of next year delivery schedule.
Do you have.
Sort of any recourse I mean.
I mean granted.
I guess I would say only $10 million deposit, but I'm just sort of wondering if you get any.
Any sort of rebate or.
What else you might have worked into that contract that will work to your favor and also incent them to meet their schedule.
Sure I mean I guess.
The easiest answer to this which is.
I suppose somewhat of an obvious one is that they are still our very large majority shareholder of <unk> and they are locked up in that shareholding. So I think it's fair to say that probably I mean, I don't want to speak for them, but I would imagine no. One is more interested in delivering their machines and hopefully convincing to us.
To flex our order to the Max.
<unk> alright.
Alright, and as far as recourse as far as recourse.
I don't off the top of my head what I'd tell you in the initial contract, but I would say, we buy a variety of things from from Bip Fury, obviously, we pay for services and so forth. So.
I'm not too worried about recourse on our deposit on that machine order.
There's nothing like skin in the game.
Can you exactly can you sort of Peel back the onion, a little bit on their op team, how how does that work well are they.
Contracted by site for or guidance that you have on say how is that sort of come together.
Yes so.
It's a big team if you go all the way to the subcontractor level. So we have a contract for services with that theory.
And it has a framework for pricing that is generally a cost plus framework and so it is very favorable.
The team at fit theory is from a direct contact perspective on who's overseeing the site work there sort of a concentrated team and then a much broader team. So I'd say from a regular basis perspective. The concentrated team is about a half dozen people in charge and then it goes to them.
<unk> of people across the organization that are that are touching us in one way or another.
But a lot of what he is doing.
Site by site, depending on the particular piece of work being done is that they are acting as like a general contractor and hiring subcontractors and so when you get down to the sub contractor level for example.
The multiple teams that are at work fabricating containers for different sites, you've got dozens of people working at those contractors on our order and that's across multiple contractors.
Hi, guys. Its hard for me to give you a total number of people touching every project and every way if I go down to the subcontractor level, but thats.
Because by design, we're working primarily with our general contractor, who was bit Fury and then they are conducting RF key processes to hire different sub contractors throughout the process.
Fair enough.
Wonderful description. So thank you Tyler can we go sort of part of the of the hierarchy. How are you managing fisheries touch.
From a construction and rollout perspective, our main point of contact from cipher as our Chief operating Officer, Patrick Kelly.
When he is not on the road wearing a mask to the sites.
He is diligently working at odd hours.
In cases, where he's got to speak with people that are spread across Europe.
In addition to that we the team is ramping up and we recently had an accepted offer for a chief construction officer to work for Patrick based here in the United States, who is extremely experienced in the data center construction and procurement areas.
And so.
That team on a go forward basis will primarily manage the general contractor and subcontractors.
Perfect.
Yeah.
Thank you so much for indulging me Tyler pleasure speaking with you again.
Anytime Kevin Thanks for your coverage of the space.
Thank you and there are no further questions in queue I'd like to turn the call back to.
Tyler page for closing remarks.
Okay. Thank you very much for everyone that dialed in and I just wanted to close with a quick message to say that.
The team at site for mining is near the beginning of a very ambitious journey in a rapidly evolving.
The coin mining environment, we see all kinds of potential for this environment to expand over the long run and we think we have positioned ourselves very well to take advantage of those trends that we see coming in the days months and years to come and so every day is exciting for the manage.
My team and we just want to thank all of our shareholders for their trust and support so thank you very much.
This concludes today's conference call. Thank you for participating you may now disconnect.
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