Full Year 2021 Argo Blockchain PLC Earnings Call

That translates to about 44,000 mining machines, that's 24,000 machines already in our current fleet, and then the extra 20,000 that is coming from the Bitmain order that I was just talking about.

4000 mining machines, that's 24000 machines already in our current fleet and then the extra 20000 that is coming from the bit made order that I was just talking about I think everyone knows we're very focused at Argo on sustainability and ESG friendly minor is a big part of our company values a big part of our story, we were the first pick one.

As I think everyone knows, we're very focused at Argo on sustainability. Being an ESG-friendly miner is a big part of our company values, a big part of our story. We were the first Bitcoin miner to be 100% carbon neutral last year. We put out a climate strategy along those lines. We'll be releasing an update to that report in the very near future.

Minor to be 100% carbon neutral last year.

Put out a climate strategy along those lines, we will be releasing an update to that report in the very near future.

And a big reason we were able to achieve that carbon neutrality is being located in certain regions. First of all, in Quebec, using hydroelectric power. We're following the same strategy by setting up in West Texas, where there's an enormous amount of renewable power. 85% of the power in the West load zone, where we are in West Texas, is coming from renewables, primarily wind. So that story continues for us and is a key part of who we are and what we do.

And a big reason, we were able to achieve that carbon neutrality is being located in certain regions are first of all in Quebec using hydroelectric power. We're following the same strategy by setting up in West, Texas, where there's an enormous amount of renewable power, 85% of the power in the west loads out where we are in west Texas is coming.

From from renewables, primarily wind.

So that that can story continues for us and it is a key part of who we are and what we do.

On the Bitcoin HODL side of things, at the end of March, our Bitcoin HODL was 2700 Bitcoin and Bitcoin equivalent. 10% of that is allocated to Argo Labs. As many of you know, we launched Argo Labs earlier this year. It's our in-house innovation arm focused on non-mining activities within the broader blockchain and Web 3.0 ecosystem. And I'll give a little update later on the presentation about the activities of Argo Labs.

On the Bitcoin hotel side of things at the end of March our.

Bitcoin was 2700, bitcoin bitcoin equivalent 10% of that is allocated to Argo labs as many of you know we launched our go labs earlier this year as our in house innovation arm focused on non mining activities within the broader blockchain and what throughput ecosystem web three point out ecosystem and I'll give a little update later in the presentation.

With with.

About the activities of Argo lapse.

Finally, our mining margin for 2021 was 84%, which is amongst the highest of all our peers, and is a number we're really proud of.

Finally, our mining margin for 2021, with 84%, which is amongst the highest of all our peers are and there's a number we're really proud of.

All right, so then on the right hand side of the slide, you see a map of our two locations where we're mining or two regions where we're mining, Texas and Quebec, the facilities in Bay Como and Mirabel, and then the new flagship facility we're opening very soon in Texas, the Helios.

Alright. So then on the right hand side of the slide you see a or a map of our two locations, where we're where we're mining are two regions were reminding Texas in Quebec the facilities as they come out with Mirabel and then the new flagship facility. We're opening very soon in Texas, The Helios facility.

Alright, I'm going to jump ahead to the next slide, which is, you know, the slide that I think everyone's been waiting for today, which is our financial highlights from last.

Alright, I'm going to jump ahead to the next slide which is the slide that I think everyone's been waiting for today, which is our financial highlights from last year.

So, as you can see, it was a great year for us, a transformational year for Argo. Our revenue was 100 million USD or 74 million pounds, an increase of 291% from the year before. Our EBITDA was 71 million U.S. or 53 million pounds, up 594% from the previous year. Our net income was 42 million U.S. or 31 million pounds, up.

So as you can see it was a great year for us at a transformational year for Argo, our revenue with 100 million USD or 74 million pounds, an increase of 291% from the year before our EBITDA was 71 million U S were 53 million pounds up 594% from the previous year, our net income was $42 million.

The us or 31 million pounds up less upfront from $2 million in.

less up from 2 million in 2020. Our Bitcoin mine for the entire year was 2,000, 2,045. So just north of 2,000. And as I said before, that mining margin was about 84%.

In 2020.

Our bitcoin mine for the entire year was 2000 2045. So just just north of 2000 and as I said before that money margin was about 84%.

At the end of the year, we held 2,585, sorry, 2,595 Bitcoin and Bitcoin equivalents on the balance sheet. And that was at the end of the year, end of December 2021.

At the end of the year, we held 2000 and 585, sorry, 2595, bitcoin bitcoin equivalents on the balance sheet and that was at the end of the year end of December 2021.

On the chart on the right, you can see our mining margin was very strong and consistent in the 80s for the entire year. This was driven largely by the high price of Bitcoin, as well as us really being able to control our operating costs, you know, very good hosting costs with our core scientific deals that we are mining, we're mining with, or currently still are mining with, but soon will not be, as well as, you know, the low cost of power that we have.

On the chart on the right you can see our money margin was very strong and consistent any ATM for the entire year. This was driven largely by the high price of bitcoin as well as us really being able to control our operating costs.

Very good hosting cost with our core scientific deals that we're mining we're mining with Orix currently still our money with but soon will not be.

As well as the low cost of power that we haven't got that.

The temporary drop in global hash rate that took place with the Chinese ban on Bitcoin mining in mid last year also helped our performance that was across the board for all miners, and that kept margins strong throughout the year.

Temporary drop in global hatch rate that took place with the Chinese ban on bitcoin mining in mid last year also helped our performance that was across the board for all miners.

And that kept margins strong throughout this throughout the year.

So.

To summarize the year 2021 was a great time to be a miner with access to low cost power and we are very much feeling the same way about 2022.

Alright, I'll jump ahead to our key operational highlights and milestones from 2021, so I'm not going to go through them. All it was it was a busy year a lot happened, but I'm going to point out a couple of the major highlights that took place for the year.

Probably the most important one for the year was our acquisition of the Helios project in the Texas Panhandle that happened in the first quarter.

The Helios project was a shovel ready project gave US an incredible foundation for the growth that we have today.

It was a part of our shift in strategy from being hosted at third parties like core and GPU, one to owning and operating our own infrastructure.

So that took place in the first quarter. In the second quarter, we closed the acquisition of two data centers in Quebec, one in Mirabel and one in Baycomo. We were originally hosting our machines at these facilities, going back as far as 2018 in the case of Mirabel. And that was a big part of our moving into ODEs and operating our own infrastructure.

So that took place in the first quarter in the second quarter, we closed the acquisition of two data centers in Quebec.

One in Mirabel and wanted they come out we originally hosting our machines at these facilities going back as far as 2018 in the case of Mirabel and and and that was a big part of our moving into owning and operating our own infrastructure.

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The third quarter saw the listing or saw us list on the NASDAQ.

The third quarter saw the lifting.

Our saw US list on the NASDAQ in the U S. There's a huge moment for the company is something that we worked on towards for much of the year. It was something that a lot of shareholders and stakeholders. We're asking for is something that's obviously very common in this space for miners to be lifted now on NASDAQ and that's because it's the most important access.

The huge moment for the company is something that we worked on towards for much of the year. It was something that a lot of shareholders and stakeholders were asking for. It's something that's obviously very common in the space for miners to be listed now on NASDAQ. And that's because it's the most important access or gives the best access to the US capital markets, which is obviously a very large pool of capital.

Our gives the most important the best access to the U S capital markets, which is obviously, a very large pool of capital S.

As part of that listing, we raised $130 million U.S., and some of that capital immediately went towards the 20,000 machine Bitmain order that we are now starting to install in Helios.

As part of that listing we raised $130 million U S and some of that capital immediately went towards the 20000 machines. They may order that we are now starting to install in Helios.

All right, in the fourth quarter, we didn't stop. We also had the installation of about 530 more petahash of machines, which came from orders that we placed earlier in the first half of the year. We also made great progress on Helios. We broke ground there in the third quarter. But by the end of the fourth quarter, we had completed the main structure and the outside facade of the building. And I'll talk a little bit more about Helios a little bit later in the presentation and give some more updates. All right.

Alright in the fourth quarter.

We didn't stop we also had the installation of about 530 more pet a hash of machines, which came from orders that we placed earlier in the first half of the year. We also made great progress on Helios, we broke ground there in the third quarter, but by the end of the fourth quarter. We have completed the main structure any outside facade.

The building and I'll talk a little bit more about Helios, a little bit later in the presentation. It gets some more uptick.

Alright jumping ahead too.

some key metrics.

Some key metrics.

So on this page, you can see how dramatic our growth was. You know, a lot of up and to the right from 2020 to 2021. On the hash rate side, we grew from about 0.6 exahash to 1.6.

So on this kind of on this page you can see how dramatic our growth was.

Lot of up into the right from 2020 to 2021 on a harsh rate side. We grew from about six X or has to one six a M.

The hash our revenue went from 26 million. These are all figures in U S $26 million to a $100 million our money margin also doubled up to 84%.

Our revenue went from 26 million. These are all figures in US, 26 million to 100 million. Our money margin also doubled up to 84%.

Our EBITDA went from $11 million in 2020 to $71 million in 2021. Net income from about $2 million U.S. to $42 million. And our cash and digital assets at year-end went from $9 million to $125 million U.S. at the end of December .

Our EBITDA went from $11 million in 2000 $20 million to $71 million in 2021 net income from about 2 million to $42 million.

And our cash on cash and digital assets at year end went from 9 million to $125 million U S. At the end of December .

So really some important metrics and obviously we're very pleased with the growth for the year.

2021, so really some some important metrics.

And obviously, we were very pleased with the growth for the year.

All right. However, it's not only about machines and only about power and only about capital. It's also about people. And as we started to own and operate our own facilities, we really needed to grow our team and bring the necessary expertise in-house.

Alright, however, it's not only about machines and only about power and only about capital. It's also about people and as we started to own and operate our own facilities, we really needed to grow our team and bring the necessary expertise in house.

Our headcount grew from around seven people. We were a very small company at the start of 2020, when I took over as CEO . Actually, at the end of 2020, we were still at seven people, to around 39 people at the end of 2021. As of right now, we're approaching about 100 people. We include all of our data center ops team members.

Our head count grew from around seven people, we were a very small company at the start of 2020, when I took over as.

As CEO I can say at the end of 2020, we were still at seven people.

To around 39 people at the end of 2021 as of right now we're approaching about 100 people when you accrued all of our data center ops team members.

On the senior management team, we also added several key folks to round out the original crew that consisted of myself, Perry, and Seb, and then Alex, who joined in 2020.

The senior management team. We also added several key folks to round out the original crude that consisted of myself Perry said and then Alexey, who joined in 2020, I'm Davis Zappy as our general Counsel runs our legal Department, Justin Nolan was the cofounder of the Helios project and really the force behind.

Davis Zappi is our general counsel, runs our legal department. Justin Nolan was the co-founder of the Helios project and really the force behind getting set up in Dickens County. He found the land and set up the project. After the acquisition of DPN, which was his company, Justin came on board and has been a really key part of our business development team and is leading our efforts there.

You know getting set up in Dickens County, he found the land.

Set up the project.

After the acquisition of a VPN, which was his company just came on board and it's been a really key part of our our our business development team and is leading our efforts there.

Jean Estier works very closely with Peri Hati, he's our VP of technology and development, and has been primarily focused on the design and the build out of the immersion system at Helios.

John F D. A works very closely with Perry hockey Who's our VP of technology and development and it's been primarily.

Primarily focused on the design and the build out of immersion system, our Helios b.

Theo Papadakis is our VP of data center operations, comes from the world of data centers, a long career in that space, and he's built a world-class data center operations team to manage our three data centers, obviously with a huge focus in Texas.

Theo Papadakis is our VP of data center operations comes from the World of data centers, a long career in that space and he's built a world class data center operations team to manage our three data centers, obviously with a huge focus in Texas right now.

And then finally, Tom Devine, who is on the call today, you'll see him pop up a little bit later. He leads our investor relations and as well as our government relations.

And then finally, Tom Devine, who is on the call today Youll see them pop up a little bit later, he leads our investor relations.

As well as our government relations efforts.

All right. So that is 2021 in a nutshell. Obviously, this is a fast moving space.

Alright, so that is 2021 in a nutshell. Obviously this is a fast moving space.

2021 already seems like a long time ago so for the rest of the presentation, I'm going to talk about 2022 and beyond. Obviously, there's, you know, there's a lot going on with with us as a company, a lot going on in the space.

2021 already seems like a long time ago. So for the rest of the presentation I'm going to talk about 2022 and beyond.

Obviously, there's you know there's a lot going on with us as a company a lot going on in the space.

I love this picture. This picture was taken just a couple days ago. I think two days ago. That's the latest shot from our Helios facility. You can see that the rapid development that's taken place there over the last six, seven, eight months. You know, the dry coolers coming up on the side are almost to the end of the line. So, so great, great development and and really that is our primary focus for the rest of this year. So let's jump ahead to the key initiatives for the year. So Completion of phase one of Helios.

I Love. This picture. This picture was taken just a couple of days ago I think two days ago. That's the latest shot from our Helios facility you can see that the rapid development that's taken place there over the last 678 months.

The dry coolers coming up on the side of our almost to the end of the line.

So so great great development, and and really that is our primary focus for the rest of this year.

So let's jump ahead to the the key initiatives for the year. So.

Completion of phase one of Helios.

is still slated to fully be baked out and finished by the end of this year. That includes filling it up completely with machines and obviously having all the infrastructure in place ahead of time for those machines.

Is it still slated to fully be baked out and finished by the end of this year that includes filling it up completely with machines.

And obviously, having all the infrastructure in place ahead of time for those machines.

Our construction team's done just an absolutely incredible job. The substation is complete, and that taps into the cottonwood substation, which is across the fence line. All of that being said, we expect our hash rate to grow to 5.5x a hash by the end of this year.

Our construction team has done just an absolutely incredible job.

The substation is complete and that taps into the Cottonwood substation, which is across the fence line and all of that being said, we expect our hatch rate to grow to five and a half fix the house by the end of this year.

And that's a number that we're very proud of. Our whole kind of philosophy, I think people that follow the company closely know, has been to really focus on growth and to make sure that we are slow and steady and focusing on quarters and years.

And that's a number that we're very proud of.

Our our whole kind of philosophy I think people that follow the company closely know has been to really focus on growth and to make sure that we are slow and steady and focusing on quarters and years and.

And so today we're happy to say that our expectations will be 5.5x a hash by the end of this year.

And so today, we're happy to say that our expectations will be five and a half extra hatched by the end of this year and we'll get into those details a little bit more I know theres folks asking what does that entail what does that not entail.

And we'll get into those details a little bit more. I know there's folks asking, you know, what does that entail? What does that not entail?

But that's a really a key key number for us and something that we believe is absolutely achievable by the end of this year You know the philosophy is really to kind of under promise and over deliver as much as we can and Certainly, I think the speed with this the speed with which we built this facility Has been amazing and you know, just even on the ground in Dickens County people are saying they've never seen anything like it So it's pretty awesome what our team

But that's a really key a key number for us and something that we believe is absolutely achievable by the end of this year.

Loss of fee is really to kind of under promise and over deliver as much as we can and certainly I think the speed with this the speed with which we built this facility.

It has been amazing and.

Just even on the ground into Kings County people are saying they've never seen anything like it so it's.

It's pretty awesome, what our team has done. Furthermore, we're also not just working on infrastructure, but we're also developing a custom designed mining rig which will utilize the Intel block scale ASIC chips.

Furthermore, we're also not just working on infrastructure, but we're also developing a custom designed mining rig, which will utilize the Intel block scale ASIC chip.

and I'll talk a little bit more about what that's gonna look like on a slide coming up. All right, a couple more shots of

And I'll talk a little bit more about what that's going to look like on a slide coming out.

Alright, a couple more shots of Healy.

helios. So on the left hand side, you can see the immersion tanks, which are on double decker rack.

Helios so.

On the left hand side, you can see the emergent tanks, which are on double decker racks shout out to the double Decker buses in London.

Shout out to the double decker buses in London. On the right hand side, you can see a photo of our Helios facility staff during the recent onboarding activities. Got about 40 staff there now. We have another 20 temporary labor. So we've got an incredible team. They're charging ahead, doing incredible work. We'll have some more content, some more video coming out soon, very soon, about the work that's going on there and are really excited to announce to the market when that facility is energized. That's the next big step for us there.

On the right hand side, you can see a photo of our of our Helios facility staff. During the recent Onboarding activities got about 40 staff there now.

Another 20 temporary labor. So we've got an incredible team they're charging ahead doing incredible work, we will have some more content more video coming out soon very soon about the work that's going on there and are really excited to announce to the market when that when that facility is energized. That's the next big step for us there.

On the emerging cooling side of things.

Um, you know, we've discussed before how Helios has been built.

We've discussed before how Helios has been built to use our proprietary emerging cooling system that we've co designed with a large U S based global manufacturing company I think as everyone knows in Texas. It gets hot it's Dusty it's windy, it's not a great environment for mining and last year using immersion, which allows you to protect the machine.

use our proprietary immersion cooling systems that we've co-designed with a large U.S. based global manufacturing company. I think as everyone knows in Texas it gets hot, it's dusty, it's windy, it's not a great environment for mining unless you're using immersion which allows you to protect the machine, it's more efficient at keeping the machines cool, it keeps you know particulate matter, dust, sand out and all of that extends the lifespan of the machines.

More efficient to keeping the machines cool. It keeps you know particular matter dust sand out and all of that extends the lifespan of the machines. In addition to that we think that we can get a significant hash rate boost out of the machines I E kind of overclock them when running them in an emergent <unk>.

In addition to that, we think that we can get a significant hashrate boost out of the machines, i.e. kind of overclock them when running them in an immersion environment compared to air cool.

<unk> compared to air cool so.

All that being said, the system that we're building in Texas, once it's fully deployed, will be one of the largest immersion cooling systems in the world.

All that being said the system that we're building in Texas. Once it's fully deployed will be one of the largest ah emergent cooling systems in the world.

All right, in terms of machine development.

Alright in terms of machine development.

You know, we announced earlier this year a relationship with Intel and one of our key focuses is building a custom mining rig to utilize the Intel chips that are coming out of that relationship. We're very proud. We're excited to be one of the four companies that Intel has chosen to work with us as they enter the Bitcoin mining space.

We announced earlier this year, our relationship with Intel and one of our key focuses is building accustomed mining rig to utilize the Intel chips that are coming out of that relationship where we're very proud. We're excited to be one of the four companies that Intel has chosen to work with us as they enter the bitcoin mining space and having them enter the space is.

And having them enter the space is incredibly important. It gives the Bitcoin mining space more credibility to have, you know, a blue chip company like Intel coming in. But it also will benefit the industry to have a more diverse supply chain and more options for ASICs and also to have chips available as opposed to fully baked machines.

Incredibly important it gives the bitcoin mining space more credibility and to have a blue chip company like Intel coming in but it also will benefit the industry to have a more diverse supply chain and more options for Asics and also to have chips available as opposed to fully baked machines.

We think our custom mining rig, which is going to use these Intel mining chips is going to be significantly cheaper on a cost per terahash basis than what's currently available off the shelf in the market. And this will allow us to further increase our hash rate.

We think our custom mining rig which is going to use these intel mining chips is gonna be significantly cheaper on a cost per <unk> basis than what's currently available off the shelf in the market.

And this will allow us to further increase our hatch rate at competitive margins.

In terms of developing that machine, we have a great relationship with a third-party manufacturer. We're working very closely with them on the design of the mining machine from top to bottom and we expect to be able to deploy these machines towards the end of the year.

In terms of developing.

That machine, we have a great great relationship with a third party manufacturer, we're working very closely with them on the design of the mining machine.

From top to bottom and we expect to be able to deploy these machines towards the end of the year.

So along those lines.

This is what the look ahead for the year looks like to get us to the 200 megawatts at Helios.

This is what the look ahead for the year it looks like to get us to the 200 megawatts of Helios. So.

You can see some of the kind of major work streams here that have been completed or that are in progress. We've been on time with the construction of the Helios facility and the substation. We are working to finalize the demand response pieces with ERCOT. That's obviously a really important part to be able to take advantage of the ancillary services.

You can see some other kind of major work streams here that have been completed or that are in progress. We have been on time with the construction of the Helios facility and the substation we are working.

To finalize the demand response pieces with ERCOT, that's obviously, a really important part to be able to take part.

Our advantage of the ancillary services ancillary services that are that are caught offers in Texas.

ancillary services that ARCOT offers in Texas.

The installation of the immersion equipment is going very well. That includes the dry coolers that I just mentioned that you can see on the outside of the building, as well as the tanks and the pumps and the piping inside the facility. Obviously, all that needs to be in place before we can start putting machines, you know, to work and, and, and, and mining. In terms of the installation of machines.

The installation of the emergent equipment is going very well.

That includes the dry coolers that I just mentioned that you can see on the outside of the building as well as the tanks and the pumps and the piping inside the facility.

Obviously all of that needs to be in place before we can start putting machines.

To work that and and mining in.

In terms of the installation of machines, we expect to start installing machines very soon both the core scientific machines as well as the bit main machine. So you can see that those two lines here.

start installing machines very soon, both the core scientific machines as well as the bitmain machines. So you can see those two lines here. The core machine swap has been structured in a way to mitigate any downtime. So as we receive the new machines and install them in batches, core will take over the hash rate from our machines located in their facilities. And that'll take place on four different particular dates.

CT machines swap has been structured in a way to mitigate any downtime. So as we received the new machines and install them in batches core will take over the hash rate from our machines located in their facilities and that will take place on for four different particular dates this will eliminate downtime.

This will eliminate kind of downtime and also, you know, having to unplug the machines and ship them to Helios. So we're really pleased with that arrangement with Core.

And also having to unplug plug the machines and ship them to helium. So we're really pleased with that arrangement with core.

Once we complete the core swap, at the end of July , we'll be 100% self-owned and operated with no more hosting arrangements, which is another big milestone for us.

Once we complete the core swap.

At the end of July it will be 100% self owned and operated with Nomura hosting arrangements, which is another big milestone for us.

In terms of energization, you see a little dot there, a little diamond, it does feel like a diamond because it's so important for us. It's slated to happen very soon, very, very soon. We'll make an announcement to the market when it happens. It's obviously a critical event to get mining operations started at Helios.

In terms of <unk>, you see a little dot there little Diamond does feel like a diamond because it's so important for us is slated to happen very soon.

<unk> very very soon we will make an announcement to the market when it happens. It's obviously a critical event to get mining operation started at Helios.

And then finally, on the Intel piece, we are currently in the design testing phase for the Intel machines. And we expect to deploy those machines towards the end of this year, and then into 2023. So you can see the dotted line on the chart. That is when we expect to deploy the Intel machines. And yeah, and then there'll be more into 2023 as well. We won't stop with just the four.

And then finally on the Intel piece, we are currently in the design testing phase for the Intel machines.

And we expect to deploy those machines towards the end of this year and then into 2023. So you can see the dotted line on the chart.

That is when we expect to deploy the Intel machines.

And and and Yeah, and then there'll be more into.

Into 2023, as well, we won't stop with just the fourth quarter.

So what does all this mean in terms of our, of our hash rate? Um, you know.

So what does all this mean in terms of our of our hatch rates.

You know what.

bringing Helios online, complete phase one, will obviously have a significant impact on our hash rate.

Bringing helios online.

Completing phase one will obviously you have a significant impact on our hatch rate. So right now we have 1.6 extra hashing capacity. We started Q2, there were seeing increase in hatch rate as we start to install the 20000 S 19, J pros that we order from bit name. These rigs are going to be delivered as I've said many times before on this presentation.

So right now, we have 1.6 ExaHash in capacity. We started 2.2 there. We'll see an increase in hash rate as we start to install the 20,000 S19J Pros that we ordered from Bitmain. These rigs are going to be delivered, as I've said many times before on this presentation and others, in May, starting in May, and then through to the end of October . And then the core machines are part of that 1.6 ExaHash, so we will get an increase in ExaHash from them, obviously.

Others in May starting in May and then through to the end of October .

And then the CT machines are part of that 1.6 extra harsh so we won't get an increase in S and X are harsh from them obviously.

At the end of the year, we'll see an additional uplift in hashrate as we deploy the Intel ASIC machines. That's another bump of about 1.8x.

At the end of the year, we'll see an additional uplift and hatch rate as we deploy the Italy machines.

That's another bump of about 1.8 extra harsh so we expect to end the year around five and a half ex the harsh with most of that hash rate I've Helios, a with the with the full 200 megawatts online. This does not include any uplift from immersion. So we're trying to be conservative about our hatch rate projections again.

So we expect to end the year around five and a half exahash with most of that hash rate at Helios with the full 200 megawatts online. This does not include any uplift from immersion. So we're trying to be conservative about our hash rate projections. Again, you know, under-promise, over-deliver. So this is kind of nameplate hash rate numbers.

Under promise over deliver so this is kind of nameplate.

Nameplate.

Hatch rate not including immersion.

And then remember, we still have another 20 megawatts of capacity. Our Quebec facilities, we're mining both Bitcoin and Zcash. All of our Zcash mining is taking place in Quebec. We currently do not have any mining other than Bitcoin mining slated for the Helios facility.

And then remember we still have another 20 megawatts of capacity, our Quebec facilities will remain both bitcoin.

Anti cash all of our Z cash mining is taking place in Quebec. We currently do not have any money other than a bitcoin mining slated for the Helios facility.

Alright jumping ahead to the future.

Um, we, we think that one of the, you know, the primary benefits of our Helios facility is obviously the potential for this, this, you know, growth, this runway for growth.

We think that one of the primary benefits of our heroes facility is obviously the potential for this.

Growth this runway for growth we've.

We've got an interconnection agreement for 800 megawatts of power, which means we have an additional 600 megawatts of capacity remaining once this 200 megawatts is up and going. We also have the ASIC supply agreement.

We've got a interconnection agreement for 800 megawatts of power, which means we have an additional 600 megawatts of capacity remaining once this 200 megawatts is up and going we also have the ASIC supply agreement with them, which we've just been talking about and that will provide us with a steady supply of machines.

just been talking about and that will provide us with a steady supply of of

In terms of, you know, manufacturing those machines, we're working with a third party to custom manufacture those, and that, again, we are confident will result on a cheaper cost per terahash basis than what's currently available in the market.

In terms of manufacturing those machines were working with a third party to customer manufacture those and not again. We are confident will result on a cheaper cost per carat harsh basis than what's currently available in the market. So add all of these factors together.

So add all of these factors together, the power and the access to chips, and we see us getting to north of 20x a hash by 2024. This would include the full development, obviously, of the additional 600 megawatts of capacity at Helios.

How're and AR and the access to chips, and we see us getting to north of 20 extra harsh by 2024. This would include the full Delta development, obviously of the additional 600 megawatts of capacity at Helios. So even though we are still only in phase one.

So even though we are still only in phase 1, the 200 megawatts, we've taken steps for the future phases already. We announced earlier this year that we ordered four additional transformers that will take us up to the full 800 megawatts of power. There's a long lead time on those, that they will be coming in the first and second quarter of next year. So it's important we get those orders in. But we have a clear path to getting there to the full 800 megawatts built out. All right.

200 megawatts, we've taken steps.

<unk> for the future phases already we announced earlier this year that we ordered four additional transformers that would take us up to the full 800 megawatts of power. There's a long lead time on those that you know they they they will be coming.

In the first and second quarter of next year. So.

We get those orders and but we have a clear path to getting there to the to the full 800 megawatts built out.

Alright, so that's the plan for them.

for machines, and obviously that's planned for power, but how are we gonna pay for it? What are we doing on the capital side?

For machines and obviously, that's the plan for power, but how are we going to pay for it what are we doing on the capital side of things So taking a quick look back.

So taking a quick look back, as everyone knows, this business is a capital-intensive business. And since the beginning of 2021, we've raised nearly 300 million of external capital. Some of that has been equity, like the private placement loans that took place in early 2021, and the NASDAQ listing. But we've also issued debt, like the Bitcoin-backed loan, the 40 million in baby bonds, and the infrastructure loan that we've done with NIDA.

As everyone knows this.

This business is a capital intensive business.

Since the beginning of 2021, we've raised nearly $300 million of external capital.

Some of that has been equity like the private placement loans that that took place in early 2021, and the NASDAQ listing, but we have also issued debt like the bitcoin back loan that $40 million in baby bonds and the infrastructure alone that we've done with <unk>, what we're seeing in the spaces is a continued maturation of the debt markets.

What we're seeing in this space is a continued maturation of debt markets. And that is where we are looking at focusing on our capital raising efforts moving forward. So that takes us to the next slide, which is how we're going to finance our growth in 2022.

That is where we are looking at focusing on our capital raising efforts moving forward.

It takes us to the next slide which is how we're going to finance our growth through 2022.

So in order to complete phase one of Helios, which includes both a little bit more capital into infrastructure and then machines.

So in order to complete phase one of Helios, which includes both a little bit more capital its infrastructure.

And then machines are.

To fully build out the 200 megawatts, we need roughly 125 million of additional capital.

To fully build out the 200 megawatts, we need roughly $125 million of additional capital.

You know, as I've said many times, we have three levers which we can pull on when we're raising capital, debt, equity, and selling Bitcoin. Right now, we plan to raise the additional capital through a combination of debt and Bitcoin. We don't anticipate issuing equity in 2022.

As I've said many times, we have three levers, which we can pull on when were raising capital debt equity and selling bitcoin right now we plan to raise the additional capital through a combination of debt and bitcoin, we don't anticipate issuing equity in 2022.

As this debt market is maturing, we've seen lots of opportunities, including machine financing. We've built some really strong relationships with the leading capital providers in the space over the last three, four years, particularly over the last 12 months.

As this debt market is maturing, we see lots of opportunities, including machine financing, we built some really strong relationships with the leading capital providers in the space over the last three or four years and.

Particularly over the last 12 months.

you know, strong relationships with Galaxy, with NYDIG, with other new folks who are moving into the space. They're all looking to deploy capital and looking to reputable miners to deploy that with. So we're in a really good position on the financing side, and that's our focus.

Strong relationships with Galaxy with 90 day with other new folks who are moving into the space. They are all looking to deploy capital and to lucky and looking to reputable miners.

To deploy that with so we're in a really good position on the financing side and that's our focus.

In terms of selling Bitcoin, I think as most people know, in 2021 we didn't sell much Bitcoin. We financed our growth with equity and with a little bit of debt. However, going forward, we're taking a slightly different approach and selling a portion of our monthly Bitcoin production to cover our operating expenses and to help fund our growth plan.

In terms of selling bitcoin I think as most people know in 2021, and we didn't tell much bitcoin.

We financed our growth with with equity and with a little bit of debt. However, going forward, we're taking a slightly different approach.

And selling a portion of our monthly bitcoin production to cover our operating expenses and to help fund our growth plans. So if you think about the history of the company you know going back to 2019 2020, we had to sell bitcoin to cover operating costs to help fund our growth probably 'twenty. One we didnt sell any this year, we're taking a bit of a blended approach and joining mix.

So if you think about the history of the company, you know, going back to 2019, 2020, we had to sell Bitcoin to cover operating costs to help fund our growth. 2021, we didn't sell any. This year, we're taking a bit of a blended approach and doing a mix of debt and Bitcoin.

At and and Bitcoin.

All right, moving on to ESG, obviously, as I said from the start, a key part of our story, a key part of who we are, and a key part of why we've located our mining facilities where we have.

Alright, moving onto ESG are obviously as I said from the start a key part of our story a key part of who we are and you know that's a key part of why we've located at our mining facilities, where we have first off in Quebec, where you know where the.

First off in Quebec, where the machines are running off hydroelectric power, and now in the Texas panhandle, where most of the generation capacity is coming from wind power. Last year, we put out a climate strategy, became carbon neutral.

The machines are running off hydroelectric power and now in the Texas Panhandle, where most of the generation capacity is coming from wind power.

Last year, we put out a climate strategy became carbon neutral first company in the space to do that 2021 update is forthcoming.

first company in the space to do that. 2021 update is forthcoming to kind of report on that and the 2022 climate strategy coming out alongside that.

Kind of report on that end and in the 2022 climate strategy coming out alongside that.

On the S side of things, the social side of things, our focus is really to be a good corporate citizen in the communities that we're working in.

On the <unk> side of things the social side of things.

Our focus is really to be a good corporate citizen in the communities that we're working on so our efforts in tickets County, we feel are bringing economic benefits, we have a very solid relationship with the community. There during the construction phase at Helios, we created about 130 construction jobs.

So our efforts in Dickens County, we feel are bringing economic benefits, we have a very solid relationship with the community there during the construction phase at Helios we created about 130 construction.

We have 40 full-time jobs that we've created for phase one of the facility. Most of the hiring has taken place in Dickens County. Some of it's from the neighboring region, from the Lubbock area.

We have 40 full time jobs that we've created for for phase one of the facility. Most of the hiring has been taken place in Pecos County, some of it's from from the neighboring region from the Lubbock area.

We've got another 20 part-time staff or kind of temporary staff that are helping in the last push to get the facility up and running. We also have made

We've got another 20, part time staff or kind of a temporary staff that are helping in the last push to get the facility up and up and running.

We also have made.

a contribution back to the community to refurbish the community pool and that's you know that that pool has been closed since 2009. That project is underway and we're working with the community to to get that completed as quickly as we can.

Our contribution back to the community to refurbish the community pool.

And that's you know that the call is been closed since 2009 that project is underway.

And we're working with the community to get that.

Completed as quickly as we can.

On the governance side of things, we've strengthened our board of directors with the addition of three new members in the last 12 months.

On the governance side of things.

We strengthened our board of directors with the addition of three new members in the last 12 months. We've added regards Chopra, who is has a great experience background in banking and investing.

We've added Raghav Chopra, who has a great experience, background in banking and investing. Sarah Gao, who has a finance and asset management background. And Maria Perella, who brings a wealth of experience as a former public company CFO . So we're very grateful to have them on the board. We're a stronger company because of that. They're very active and the board is in a really great place. So I'm very pleased with that.

Eric out who has a finance and asset management background, and Maria Perrella, who brings a wealth of experience as a former public company CFO . So we're very grateful to have them on the board, we're a stronger company because of that they're very active.

And the board is in a in a really great place. So I'm very pleased with that.

All right, finally, let me say a quick word about Argo Labs before I turn it over to Alex. We started Argo Labs last year, although we've kind of informally always, you know, those of you that know the company well, we've informally always

Alright, finally, let me say a quick word about our go labs before I turn it over to Alex We started Argo labs last year, although we've kind of informally always you know those of you that know the company well. We've importantly always felt like there's opportunities in the in the blockchain ecosystem system at large.

felt like there's opportunities in the blockchain ecosystem at large. And really, Sebastien Chalut, who's our chief strategy officer, has been leading that for many years now. We now have this codified group called Argo Labs. It's a six-person team led by Seb.

And really Sebastian shall Lu who is our chief strategy officer has been leading that effort for many years now we've now have this codifies group called Argo Labs, it's a six person team led by <unk> and.

And they are really looking for ways for us to participate in the disruptive sectors of the blockchain and Web 3.0 ecosystem.

And they are really looking for ways for us to participate in the disruptive sectors of the blockchain and where three pointed out web three point out ecosystem. So just like it was a small team of us that started the mining side of things if a small team that's kind of working on the innovation side, the non mining side of things and generally the goal for this team is to take a portion of our bitcoin.

So just like it was a small team of us that started the mining side of things, it's a small team that's kind of working on the innovation side, the non-mining side of things. And generally, the goal for this team is to take a portion of our Bitcoin holdings and generate additional uplift that simply outperforms holding Bitcoin.

Holdings and generate additional uplift that simply outperforms holding bitcoin.

or that outperforms simply holding Bitcoin. So, so far we've allocated them 10% of our total digital assets. That's going well, they're doing a great job so far, and we'll reassess that, the amount of allocation that they have on a quarter by quarter.

Or is that outperformance simply holding bitcoin. So so far we've allocated them, 10% of our total digital assets, that's quite well, they're doing a great job, so far and we'll reassess at the amount of allocation that they have on a quarter by quarter basis.

All right, that is my slides. I'm going to hand it over to Alex for a couple of.

Alright that is.

My slides I'm going to hand, it over to Alex for a couple for him.

Thanks Peter. So it's really been a great year.

First pizza I'm, sorry, it's it's really been a great yeah other pieces.

touched on a lot of these these figures already, but I think it's worth sort of going through them in a little bit more detail. You know, revenue is up to $100 million, £74 million.

First on a lot of these these figures already but I think it's worth sort of going through them in a little bit more detail.

Revenue is up $200 million 74 million pounds, that's being driven by both the increase in bitcoin price, which pieces mentioned and also our increased capacity most of which and this year actually came on towards the end of the year, so without that additional 500 bed hospital.

That's been driven by both the increase in the Bitcoin price, which Peter has mentioned, and also our increased capacity, most of which in this year actually came on towards the end of the year. So that additional 500 petaHash at the end of the year, so we'll see the full impact of that as we go into 2022 and then also, of course, with the expansion of Helios.

So we will see the full impact of that as we go into trying to stretch to and then also of course with the expansion.

Helios.

Mining margin has remained very strong. Again, you know, Peter has already said this, among the market leading Bitcoin miners.

Mining margin.

It's remained very strong our guy and he's already said this among the market leading a bitcoin minus.

And we intend to stay there, and that's why we're moving in towards Helios, where we have access directly to that low cost of power. And so your margins, you've seen from our operational updates.

And where do you intend to stay there and that's why we're moving into walks Helios, where we have access directly it's about low cost.

Cost of power and so your margins you've seen from our operational.

Margins have tightened a little bit, but still well into the 70s, which is enviable across most industries.

<unk> margins have tightened a little bit, but still well into the seven series, which is enviable.

Across most industries and we're gonna stay at the very end up T. I, a off minus by having access to low cost power.

And we're going to stay at the very, in that tier A of miners by having access to low cost power and also the machines that we're building out and the immersion element of that as well.

And also the machines that were building out in the immersion element of that as well.

So that's spent for gross profit, very strong, very strong for the year, could turn through $70 million there, 50 million pounds at 70 cents.

So that's bad for gross profit very strong a very strong for the year.

$370 million of that 50 million pounds at 17 cents.

In terms of operating costs and expenses, yes, they have increased. You know, Peter's gone through how we've strengthened the executive team, we've strengthened the management team within the business, and also as we've grown and we move to the owned and operating model, we've also taken on more staff in terms of employee costs, etc. So you have seen an increase in the sort of general administrative expenses there.

In terms of operating costs and expenses, yes, they they have increased.

Peter's gone through how we've strengthened the executive team, we strengthened the management team within the business and also as we've grown and we moved to the owned and operating them motto will also we've taken on more stuff in terms of employee costs et cetera. So you have seen an increase in sort of general administrative expenses there.

Additionally, with the dual listing, we do incur more fees, more professional fees, more consulting fees, et cetera. So you'll also see those costs going through the operating costs that they spend.

Additionally, with.

With the dual listing we do incur more fees more professional fees consulting fees et cetera. So you'll also see those costs going through the operating costs and expenses there as well.

there as well. I'll draw your attention as well to the share based payment charge that is on there that's two million pounds or 2.6 million dollars.

I'll draw your attention as well as share based payment charge that is all net of 2 million pounds of $2 $6 million.

That is actually, that's the charge that is taken on to the counting adjustments. It's not actually a cash flow through the business and that takes us down to our total operating expenses there of £10 million.

That is actually that's the charge them.

Take it onto the accounting adjustments, it's not actually a cash flow through through the business.

And that takes us down to our total operating expenses of 10 million pounds.

Still a very healthy profit, operating profit, which we're really proud of, which we've achieved this year, 43 million pounds there. In terms of other income and expenses, we've taken on some debt, so we have some increased interest expenses there, and then there's some.

So a very healthy profit operating profit was really proud off which achieved this year 43 million pounds that in terms of other income and expenses. We've taken on some debt. So we have some increased interest expense is the and then there's some different revaluations et cetera, which leaves us down to a net income.

revaluations etc which leads us down to our net income of £30 million. So a really pleasing year and one we're really proud of and as I say we're well positioned to continue on the growth phase and continue at a very profitable level.

All 30 million pounds.

So a really pleasing year on one we're really proud of and I would say, we're well positioned to continue.

Continue on the growth phase and continue a very profitable level.

the balance sheet. So this year, as Peter said, you know, we have

The balance sheet. So this year as pizza set you know we have.

We've had a number of private placements, which has really strengthened the balance sheet. So you can see the end of the year, we've got a very strong balance sheet, significantly stronger than last year. In terms of our net, our net assets are well into the 200 million, 220 million also. And we are, what have we done with the cash that we've actually raised?

Had a number of private placements, which has really strengthened the balance sheet. So you can see the end of the year we were very.

Very strong balance sheet is significantly stronger than last year.

In terms of our net assets are well into the 200 million $320 million.

Also and we are what are we doing with the cash that we've actually raised.

So the great majority of that has gone into machines, either machines that we've installed and put on the ground, so it's about £40 million worth of machines that we've installed and put on the ground and purchased.

So it would be great majority of that is going to machines.

Are the machines that we've installed and put on the ground and so it's about 40 million pounds worth of machines that were installed and put on the ground to purchased there's a lot of cash.

There's a lot of cash that we've used to actually put up the prepayments for the machines mostly for the bit main order. That's nearly 50 million with the bulk of that being for the bit main order.

Cash that we've used to actually put up the prepayments of the machines, mostly from Maine, all the stuff, maybe $50 million with the bulk about paying for the main answer.

We've also invested heavily in Helios and that asset as well. There's over £70 million that's also gone into that. Alongside that, as Peter said, we've been able to continue to hodl and grow our digital assets, which are quite significant now. And we are well-placed to move forward with our strategy of now selling some part of what we mine. And also we have a number of options around debt.

We've also invested heavily in Helios and in that asset as well as over 70 million pounds has also gone into according to that alongside that as Peter said, we've been able to continue to huddle and grow our digital assets, which which are quite significant now.

And Ah we are well placed to move forward with our strategy of now selling some part of what we mine them on also where all we have a number of options around that.

which are very, and there's a question actually in there about the interest rates and how that's impacted us. We're actually seeing interest rates come down. I remember the first Bitcoin back loan that we had back in June .

Which which are very and then there's a question actually in the fall in interest rates and how that's impacted is we're actually seeing interest rates come down and I remember the first the first bit card Butler that we had back in June of 'twenty. One you know the interest rate was over 12% and we've seen that fall significantly during the year at year end.

21, the interest rate was over 12%. We've seen that fall significantly. During the year, at the year end, the interest rate was 8%, and we're seeing continued downward pressure on the cost of capital.

Rate was 8% and we're seeing continued downward pressure on the cost of capital.

So we're very pleased with where we're sat and as we look forward, we look forward with optimism into the coming year and very excited to see Helios opening in the very near future.

So we're very pleased with where we thought and as we look forward, we look forward with optimism.

The coming year and very excited to see him. He also opening and about any future.

It's about tusa.

Yeah.

All right. Thank you, Alex. I'm now going to invite Tom Devine, our VP of Investor Relations, to come on. Tom has been gathering questions both from before the presentation and from during the presentation in the chat group on the side or the Q&A section on the side. And he's going to read out some questions and then Alex and I will answer.

Alright, Thank you Alex I'm now going to invite Tom Divine our VP of Investor Relations to come on Tommy has been gathering questions. Both from before the presentation and from during the presentation in the chat group on the side or the Q&A section on the side and he's going to read out some questions.

And then Alex and I will answer it.

Yeah, thanks, Peter. We've been getting a lot of questions from folks who are listening in, as well as some of the cell side research analysts. So I'm going to go through some of those. So our first question comes from Jason B. His question is, is immersion uplift included in the five and a half exit hash target that we've announced for the end of 2021?

Yeah. Thanks, Peter we've been getting a lot of questions from folks who are listening in as well as some of the sell side research analysts.

Go through some of those so our first question comes from Jason B is question is is immersion uplift included in the five and a half exit hash target that we've announced for the end of 2022.

Alright, Thanks, Jason So the answer is no again, we're trying to make sure that we are.

All right, thanks, Jason. So the answer is no. Again, we're trying to make sure that, you know, we are conservative with our projections under promise over deliver. So the five and a half X dash does not include an uplift from immersion.

Our conservative with our projections under promise over deliver so the five and a half of that cash does not include an uplift from immersion.

Okay, great. Thanks, Peter. Our next question comes from Darren of Tahi at Roth Capital Partners.

Okay, great. Thanks, Peter Our next question comes from Darren of Tau He at Roth Capital Partners.

What sort of advantage do you think the supply agreement with Intel can give you versus other miners?

What sort of advantage do you think the supply agreement with Intel can give you versus other miners.

Thanks for the question, Darren. In terms of the supply group with Intel, the advantage for us is that we will have a better access to a stable source of chip.

Thanks for the question Darren.

Terms of the supply agreement with Intel the advantage for US is that we will have a better access to a stable source of chips.

which in turn will mean cheaper hash rate growth, ability to customize our mining rigs. That's a really important factor when you're using immersion cooling. I think as you know, Darren, we like to be, you know, very granular, very much in control, very much optimize our machines and our mining. We run a very kind of custom mining shop. This is not a plug and play or a plug and pray kind of company.

Which in turn will mean cheaper hash rate growth ability to customize our mining rigs that's a really important factor when you're using immersion cooley.

I think as you know darrin, we like to be very granular very much in control very much optimize our machines and our mining we run a very kind of custom mining shop. This is not a plug and play or plug and pray kind of a company.

So the more we can get granular with our machines and the more we can have access to chips that we can build our own custom rigs, and we can do so cheaper, and we can put those into an immersion.

So the more we can get granular with our machines and the more we can have access to chips that we can build our own custom rig and we can do so cheaper and we can put those into an immersion.

environment and that allows us to really get the most out of our mining operation.

Environment and that allows us to really get the most out of our mining operations.

Great. Our next question comes from Finastis S. Could you explain what the equipment financing agreement with NYDIG entailed? Is it for electrical equipment pre-orders needed for the 600 megawatts?

Great. Our next question comes from Vanessa is S could you explain what the equipment financing agreement with Knight did entailed.

Is it for electrical equipment preorders needed for this 600 megawatts.

Sure. Alex, do you want to take that one or do you want me to take that one? Yeah, absolutely. I'll take it. It's for electrical infrastructure that we have on the ground at the moment. We're really pleased with that and I think it's a great partner to have in this space.

Sure Alex you want to take that one or you want me to take absolutely I'll take it.

It's for electrical infrastructure that we have on the ground at the moment.

We were really pleased with that and I think that makes a great partner to have in this space.

And again, back to the interest rate, 8.25% is, you know, very competitive when compared with the traditional sector. So it was a really good deal for us and it's something that will provide an opportunity going forward, you know, for as we build out Helios, that will give us further collateral to be able to use for further debt initiation.

And again back to the interest rate $8, two 5% is very competitive when compared with the traditional sector. So it was really good deal for us.

And it's.

Something that will provide an opportunity going forward.

You know for US we build our Helios that will give us further collateral.

To use a further for the definition of this.

Great. Our next question comes from Joe Vafi at Canaccord. Could you go into a bit more detail on the ASICs you are purchasing from Intel? I believe they are not putting full systems together. Do you have a design partner at this point?

Great. Our next question comes from Joe <unk> at Canaccord could you go into a bit more detail on the Asics you were purchasing from Intel I believe they're not putting full systems together do you have a design partner at this point.

Sure. Thanks, Joe. So those, I'll give you a little bit of a background on how we came to work with Intel and then a little bit about the custom mining rigs. So Intel, you know, reached out to a number of folks in the space back in around Q4 of last year.

Sure. Thanks, Joe.

So those I'll give you a little bit of a background on how we came to work with Intel and then a little bit about the custom mining rates. So Intel.

<unk> reached out to a number of folks in this space back in around Q4 of last year.

and said, hey, we're going to be developing a mining ship. Are you all interested in working with us?

And said Hey, we're going to be developing a mining chip are you all interested in working with us.

And of course, we said, absolutely, we'd be very interested. And they said, listen, we're only going to work with miners that fit, that kind of align with our values on the ESG side of things in particular.

And of course, we said absolutely we'd be very interested and they said listen you know, we're only going to work with miners that fit.

That kind of a line with our values on the ESG side of things in particular, so we walk through what we're doing what we've been doing and what we are doing on the ESG side of things and they said that sounds great that you guys sound like a good fit and then through that relationship by the way. They found that we have a very strong technology team led by our CTO Perry and.

So we walked through what we've been doing and what we are doing on the ESG side of things. And they said, that sounds great. You guys sound like a good fit.

So theres been lots of collaboration and lots of conversation with Intel about what Theyre doing and Theres been lots of education kind of back and forth on both sides. So it's been a it's been a really good relationship so far.

We're excited to be working with them in terms of what that final system is going to look like yeah, you're right. Joe they are not putting a full system together they are developing chips. That's what they do that's what they're really good at.

In terms of what that full final system is going to look like, yeah, you're right, Joe. They are not putting a full system together. They're developing chips. That's what they do. That's what they're really good at. And then just like they sell chips to computer manufacturers like Dell, they're going to sell chips to certain miners that can then put them to work in their own machines. So there is an opportunity to either go with a supplier from Intel or to go with a supplier of our choice, the third party of our choice. So we haven't announced that yet, what we're doing, but we will be working with the third party to develop these custom mining rigs. And as soon as that relationship is ready to announce to the market, we will.

And then just like they sell chipset to.

Computing computer manufacturers like Dell Theyre going to sell chips to certain miners that can then put them to work in their own machines. So there is an opportunity to.

So there is an opportunity to either go with a supplier from Intel or to go with a supplier of our choice, the third party of our choice. So we haven't announced that yet, what we're doing, but we will be working with the third party to develop these custom mining rigs. And as soon as that relationship is ready to announce to the market, we will. But it's something that we're really excited about and something that we think is a key differentiator for us at this point.

To either go with a supplier from from Intel or to go with a supplier of our choice of third party of our choice. So.

So we haven't announced that yet what we're doing but we will be working with a third party to develop these custom mining rigs and as soon as that relationship is ready to announce to the market, we will but it's something that we're really excited about and something that we think is a key differentiator for us at this point.

Great, thanks, Peter. Our next question was pre submitted and

Great. Thanks, Peter our next question was pre submitted.

<unk>.

It has to do with ERCOT. To what extent do the new Texas ERCOT rules for mining companies limit the power available at Helios?

It has to do with ERCOT to what extent did the new Texas ERCOT rules for mining companies limit the power available at Helios.

Yeah, it's another good question. So this is not something that we think is going to affect us. We have our interconnection agreement in place for the for the full 800 megawatts of capacity. We also have a really solid relationship with our caught. We were actually just at a meeting with them this this week in Texas. We also have a

Yeah. It's it's another good question. So this is not something that we think is going to affect us we have our interconnection agreement in place for the for the full 800 megawatts of capacity. We also have a really solid relationship with ERCOT. We were actually just had a meeting with them. This week in Texas.

Also have a relationship as a client of priority power party powers as an industry leader in mining energy services. They manage interconnection agreements they manage ppas they manage power load flexibility there really kind of the key folks in Texas that you want to be working with so because of those relationships because we.

relationship as a client of Priority Power. Priority Power is an industry leader in mining energy services. They manage interconnection agreements. They manage PPAs. They manage power load flexibility. They're really kind of the key folks in Texas that you want to be working with. So because of those relationships, because we already have our pieces in place, we're not worried about any changes to ERCOT. And we encourage ERCOT to make sure that folks in Texas are getting the power that they need and miners are getting the power that they need. And I think that's exactly what's going on.

Already have our pieces in place.

We're not worried about any changes to ERCOT and we encourage ERCOT to to make sure that that folks in Texas are getting the power that they need and miners are getting the power that they need and I think that that's exactly what's going on I think probably most importantly for US. We've also chosen to be in a particular region that has a very high generation capacity, but it.

I think probably most importantly for us.

We've also chosen to be in a particular region that has a very high generation capacity, but a very low local load, which means there's very little demand for power, but lots of power being made. And this makes our flexible load really important for that region and really important for grid stability. So I think ERCOT, the first time I said to Brad Jones, who's the head of ERCOT, hey, we're setting up a 200-megawatt facility in Dickens County, Texas in the west load zone, he looked at me and he said, we need load in that area. That's amazing. That's great. So I'm very pleased with where we've chosen to set up, and I don't see any issues.

A very low local load, which means there's very little demand for power, but lots of power being made and this makes our flexible load really important for that region and really important for grid grid stability.

I think ERCOT.

First time, I, I said to Brad Jones, Who's the head of ERCOT, Hey, we're setting up a 200 megawatt facility indicative County, Texas and the West Lode Zone. He said he looked at me and he said we need load in that area. That's amazing that's great. So I I am very pleased with where we've chosen to set up and I don't see any issues in.

in Texas with the grid for us.

In Texas with the great for us.

Our next question comes from Darren at Roth Capital Partners on the core machine swap. How do you mitigate downtime during that? And is that your initial way of filling Helios?

Our next question comes from Darren <unk> at Roth Capital partners on the core machine swap how do you mitigate downtime during that and is that your initial way of filling Helios.

Yeah, so I covered this a little bit in the presentation, Darren, the swap is structured so that we avoid downtime. So as the machines from core are arriving, we're installing them and then we'll be swapping out for the machines that are, that are already at core, our machines are already at core, so we're not anticipating any downtime. We've kind of taken that into consideration. That's part of why, you know, we've, we've structured the deal as we have, we have a good relationship with core. We've worked with them for many years.

Yeah, So I covered this a little bit and in the presentation Darrin.

Wap is structured so that we avoid downtime so as the machines from core are arriving we're installing them and then we'll be swapping out for the machines that are they're already at core our machines are already of course, so we're not anticipating any downtime, we've kind of taken that into consideration that's part of why.

We've structured the deal is we have we have a good relationship with <unk>. We've worked with them for many years were friends with those guys, but ultimately we want to be you know the captains of our own ship and be able to run our own facility.

You know, we're friends with those guys, but ultimately, we want to be, you know, the captains of our own ship and be able to run our own facility. So, the relationship, you know, is coming to an end in an amicable way. By the end of July this year, we'll have, you know, all of those machines that are, all that capacity that that core will be at our facility. And what I can tell you is that those machines from core have already started arriving to a significant degree in Texas. So, that process is already underway. And that process will take place.

So the relationship is coming to an end in an amicable way by the end of July this year, we will have oh.

All of those machines that are all of that capacity is at that core will be our facility and what I can tell you is that those machines from core have already started arriving.

To a significant degree in Texas so.

That process is already underway and that process will take place.

at the same time as

At the same time as the.

in parallel with the installation of the bitmain machines that are also starting to arrive at Helios right now.

In parallel with the installation of the <unk> machines that are also starting to arrive at any lost Helios right now.

Great. Our next question from Sutan Sukumar at Stiefel. On the incremental capital needs for phase one, what will this money be spent on? Is this infrastructure or rigged?

Great. Our next question from Suzanne Sue Kumar at Stifel on the incremental capital needs for phase one.

What was this money would be spent on as this infrastructure or rig procurement.

Yeah, it's a good question. Thanks, Susan. So if you think about kind of our three main buckets of CAP, CAPEX.

Yeah. It's a good question. Thanks, Susan So if you think about kind of our three main buckets of cap our capex for the rest of this year. There is infrastructure. There is a bit made machines and then there is intel machines.

For the rest of this year, there's infrastructure, there's Bitmain machines, and then there's Intel machines. The vast majority of the infrastructure is already paid for. Obviously, we built it. If you work with construction folks, you need to pay them as you're building, so that's pretty much already done and paid for. There's a tiny bit of infrastructure cost left, but not a whole lot.

The infrastructure the vast majority of that is already paid for obviously, we built it if you work with construction folks you need to pay them as you're building. So that's pretty much already done and paid for tiny bit of infrastructure cost left but not a whole lot.

The second, on the Bitmain machines, we've paid the $20,000 Bitmain order. We have paid for north of two-thirds of those.

Second on the bit named machines, we've paid the 20000 machines, but main order we had paid for north of two thirds of those.

So, the majority of those machines are already paid for. And then the last piece is the Intel machines. We have a deposit with Intel, we've started that relationship, but the majority of that capital will be for machines, and the majority of the machine capital will be for the Intel side. Alex, do you want to add anything to that?

So the majority of those machines are already paid for.

And then the last piece is the Intel machines, we have.

Deposit with Intel we started that relationship but the majority of that capital will be for for machines and the majority of the machine capital will be for the Intel side, Alex do you want to add anything to that no.

No, I think you've pretty much pretty much covered it, Peter, as you say. The majority left is machines. Significant majority is machines. As Peter says, you know, we're two thirds of the way through. As we stand today, we're over two thirds of the way through the main payments. And looking forward, it's Intel that is the main cost within that one to five.

No I think if you pretty much pretty much coming to Pinterest as you say the majority are left as machines a significant majority of these machines.

As we decided you know with two thirds the way through.

As we stand today, we're over two thirds of the way through the debate main payments.

And looking forward, it's Intel for these the cost main costs within that $1 million to $5 million.

Yeah.

Great. Our next question we've gotten a few times from Kevin R and some others in the chat.

Great. Our next question, we've gotten a few times from Kevin are and some others in the chat.

Do you intend on looking at the option of building our own solar fields and wind farms at Helios?

Do you intend on looking at the option of building our own solar fields and wind farms of Helios.

Thanks for the question, Kevin. So the short answer is yes, in the long term, it's something that we're looking at as an option. Obviously, Texas is a great spot for both solar and for wind.

Thanks for the question Kevin.

So the short answer is yes in the long term, it's something that we're looking at as an option obviously, Texas is a great spot for both solar and for wind. That's why there is so much renewable development there.

That's why there's so much, you know, renewable development there in terms of the short term, we're really focused on on this 200 megawatts, you know, using grid power. And then, you know, the next phase is that the remaining 600 megawatts, which we have the interconnection agreement with. But obviously, you know, as we develop as as miners in this space, as the industry develops, you're seeing kind of two key, well, really three key developments. And that is getting closer to to to rigs. You're seeing that with our Intel deal.

In terms of the short term, we're really focused on on this 200 megawatts using grid power and then.

The next phases that the the remaining 600 megawatts, which we have the interconnection agreement with but.

As we develop is as miners in this space as the industry develops youre seeing kind of to keep well really three key developments and that is getting closer to two rigs you're seeing that with our Intel deal you're getting closer to power you're going to start to see miners get closer and closer to power because that is a key piece of mining.

You're getting closer to power, you're going to start to see miners get closer and closer to power because that is a key piece of mining and then and then the last one getting closer to capital and you see more and more capital providers coming into this space.

And then and then the last one and getting closer to capital and you see more and more capital providers coming into the space.

And, you know, as we've mentioned in this presentation on the debt side, so.

And as we've mentioned in his presentation on the debt side. So all of those things are happening.

All of those things are happening because those are the three kind of key.

Those are the three kind of key pieces to be a successful miner.

pieces to be a successful miner and so obviously generating your own power from renewables is something that you know as a miner you need to be thinking about in the future.

And so obviously generating your own power from renewables is something that is a minor you need to be thinking about in the future.

Our next question comes from John Peterson.

Our next question comes from Jon Petersen.

Can you talk a little bit more about your Intel mining rigs? Is all of the expansion in fourth quarter 2022 likely to come from the Intel chips? And can you give us any indication of the cost per terahash on these Intel mining?

Can you talk a little bit more about your Intel mining rigs as all of the expansion in fourth quarter 2022 likely to come from the Intel chips and can you give us any indication of the cost per terabyte on these Intel mining machines.

Thank you, John . John from Jeffries, JJ. So in short, yes, the increase in the fourth quarter of this year will be coming from Intel. As you saw in our chart, that's really where the growth in hash rate is going to be coming from from from from at Helios. In terms of cost per terabyte.

Thank you John and John from Jefferies J J.

So in short, yes, the increase in the fourth quarter of this year will be coming from Intel.

Well in our chart that's really.

Where the growth in hatch rate is going to be coming from from from at Helios in terms of cost per taro hash.

We don't have a cost per terahash that we're able to share yet. We are very optimistic that the cost per terahash will be lower than off-the-shelf options right now. And so that's a key piece of it, as well as the ability to have control over the design of the machines and the software, et cetera, et cetera, to be able to optimize in an immersion environment.

Don't have a cost per hectare hash that we're able to share yet we are very optimistic that the cost per <unk> will be lower.

Then.

And then off the shelf.

Off the shelf options right now.

And so that's a key piece of it as well as the ability to have control over the design of the machines.

And the software et cetera, et cetera to be able to optimize in an immersive environment.

Great. Our next submitted question from the chat is from the NASA. Are you actively staking or earning APY in any way on your 10% hodl at Argo Labs, such as Ethereum, Solana, Atom, etc.

Great. Our next submitted questions from the chat is from finances are you actively staking or earning <unk> in any way on your 10% hurdle at Argo labs, such as cerium Solana, Adam et cetera.

Thanks, Dan asked US again, so yes, a significant portion of our of our hurdle.

Thanks, Thanastis, again. So yes, a significant portion of our hodl is in validators, in nodes, in stake, and is deployed in DeFi in a way that gets us an ability to earn a good APY.

Is is in Validators in nodes is stake and is deployed in <unk> in <unk> in a way that gets us a an ability to earn a good a P y.

Our next question is from Ramsey Ellisall at Barclays. How are you thinking about the impact of sanctions on mining in Russia? Will we see the global hashrate drop if miners in Russia are crippled by sanctions?

Our next question is from Ramsey El <unk> with Barclays.

How are you thinking about the impact of sanctions on mining in Russia, where we see the global harsh rate dropped if miners in Russia are crippled by sanctions.

Yeah, it's a good question, Ramsey. I think the last kind of number I saw of Russia was roughly 10% of global hash rate. Obviously, you know, the recent events with BitRiver having to shut down and they're, if not the biggest, one of the biggest players in Russia will have an impact. I don't think it's going to have the same kind of impact.

Yes, it's a good question Ramsey I I think the last kind of number I saw of Russia was roughly 10% of global half rate and obviously you know the recent events with bit river, having to shut down and they are if not the biggest one of the biggest players in Russia will have an impact.

I don't think its going to have the same kind of impact on global hash rate the way that the mining ban in China happened or did I think it might have it might slow things down a little bit in terms of growth, but I don't think it will be that significant I think the place to watch hash rate growth right now is in the United States and lots of miners.

publicly traded miners have put numbers out and said, we're going to be at XX a hash by this particular date. And we'll have to see if they hit those numbers that they've put out. For us, this is the year of execution. 2021 was the year of growth. 2022 is the year of execution. So we've been really focusing on, as I said, a couple of times in this call, under-promising and over-delivering and making sure that if we put a number out, we're 100% confident that we can meet it. Our next question.

It's a publicly traded miners have put numbers out and said we're going to be at X X a hashed by this particular date and we'll have to see if they hit those.

Those numbers that they've put out.

For us this is the year of execution 2021, with a year of growth 2022 is a year of execution. So we've been really focusing on.

2022 is the year of execution. So we've been really focusing on, you know, as I said, a couple of times in this call, you know, under-promising and over-delivering, and making sure that, you know, if we put a number out, we're 100% confident that we can meet it.

As I've said, a couple of times in this call under promising and over delivering and making sure that.

If we put a number out where 100% confident that we can meet it.

Our next question comes from Abby R. What impact have supply chain issues had on the business?

Our next question comes from Abbvie are what impact of supply chain issues had on the business.

Yeah, thanks, Abby. Listen, you know, global supply chains are tough around the world. Definitely, you know, it's been a little bit more challenging to meet our deadlines, but we're still able to stay on schedule with Helios.

Yeah, I think listen you know global supply chains are are tough around the world.

Definitely it's been a little bit more challenging to meet our deadlines, but we were still able to stay on schedule with Helios.

We have someone who works full time with us now at Argo that we've hired recently as part of that team of 100 that we're building out, who is working on logistics and supply chain pieces. She's an expert in that world. So that's been very helpful and it's something we take seriously and put a lot of effort into.

We have someone who works full time with US now at Argo that we've hired recently as part of that team of 100 that were building out who is working on our logistics and supply chain pieces. She is what she's an expert in that world.

So that's been very helpful and it's something we take seriously and can put a lot of effort into we saw an increase for sure is shipping cost for miners.

We saw an increase for sure in shipping costs for minors.

It's approximately 50% to 100% more expensive now than it was two years ago to ship miners. So that's something that we need to be cognizant of when we're building out our budgets, etc. But while they've had an impact.

Approximately 50% to 100% more expensive now than it is than it was two years ago to ship miners.

That's something that we need to be.

Cognizant of when we're building out our budgets et cetera.

But while they've had an impact for sure.

for sure. We feel like we've been able to weather them because of the efforts of our

We feel like we've been able to weather them because of all the efforts of all of our team.

Yeah.

Great. Our next question comes from Alan Howard at Tennyson.

Our next question comes from Alan Howard Tennyson.

How are you thinking about the build out at Helios for future phases? Will it be less expensive than phase one and will it be spread out evenly over the next three years?

Are you thinking about the build out of Helios for future phases would be less expensive than phase, one and will it be spread out evenly over the next three years.

Hey, Alan, thank you. Thank you for the question. So, yeah, listen, we have a significant runway at Helios, as I said, the 600 megawatts. It's a big, you know, it's a big chunk to fill. We are going to focus our CapEx costs there first on the infrastructure and the building, and then second on the rigs. In terms of the infrastructure side,

Hey, Alan Thank you. Thank you for the question so.

So yeah listen we have a significant runway at Helios as I said, the 600 megawatts.

It's a big it's a big chunk to Phil.

We are going to focus our capex costs, there first on the infrastructure and the building and then second on the rigs in terms of the infrastructure side of things our expectation is yes, it will be less expensive.

Our expectation is yes it will be less expensive. We know we've learned as we've grown. We've also done a lot of the groundwork in Texas to make sure that we're getting that you know have the right relationship rate the right relationships in place with the right suppliers. We've already put some of the long lead items in as I mentioned you know for the big transformer pieces.

No we've learned as we've grown.

We've also done a lot of the groundwork in Texas to make sure that we're getting that have the right relationships the right relationships in place with the right suppliers. We've already put some of the long lead items in as I mentioned for the big transformer pieces.

I know some of those pieces are already prepaid. So yes, in terms of the infrastructure side, our expectation is that it will be less expensive than phase one. In terms of the rig side, again, thanks to this relationship with Intel, our cost per terahash is expected to be lower than it is, than it will have been for the first 200 megawatts.

Some of those pieces are already prepaid so yes. It is.

In terms of the infrastructure side, our expectation is that it will be it will be less expensive.

<unk> phase one in terms of the rig side again, thanks to this relationship with Intel or cost per carat harsh.

Is is is expected to be lower than it is than it would've been for the first 200 megawatts.

Our next question comes from Luke P are you concerned with countries and cities getting involved in mining or do you think you have a competitive advantage with your infrastructure.

Our next question comes from Luke P. Are you concerned with countries and cities getting involved in mining, or do you think you have a competitive advantage with your infrastructure?

Thanks, Luke. Good question. I think you're probably referring to what happened recently with the news, I think, from Fort Worth.

Thanks, Luke Good question I think you are probably referring to what happened recently with the news I think from Fort worth.

So overall, we're not concerned about cities and countries getting involved in general. We see this as a positive thing. We believe in decentralization. That's kind of the whole point of the Bitcoin network. We have a clear competitive advantage with our mining experience, with our current infrastructure, with our future infrastructure. So so listen, we're we're excited about the space in general growing and all of the incredible momentum that the space has. You know, even though the equity markets have slowed down a lot.

So overall were not concerned about anything countries getting involved in general we see this as a positive thing we believe in decentralization, that's kind of the whole point of the Bitcoin network, we have a clear competitive advantage with our mining experience with our current infrastructure with our future infrastructure.

So listen we're we're excited about.

The space in general growing and all of the incredible momentum.

The momentum that the space has.

Even though that the equity markets have slowed down a lot it feels to me like the crypto markets.

Feels to me like the crypto markets, you know, while they're under a little bit of pressure, are really charging ahead. And and I'm excited about, you know, this year and the year.

While they are under a little bit of pressure are really charging ahead.

And I'm excited about this year and the years to come.

Yeah.

Our next question comes from Chris Brindler at DA Davidson. Can you speak more about the expanding debt financing options and the improving terms that you mentioned? We've also heard that traditional banks have become more interested in the sector. Can you give your perspective on that?

Our next question comes from Chris <unk> at D. A Davidson can you speak more about the expanding debt financing options and improving terms that you mentioned.

We've also heard that traditional banks have become more interested in the sector can you give your perspective on that.

Sure, I'll start this one and then I'll hand it over to Alex. Thanks for the question, Chris. You know, just in terms of relationships with lenders, there's just more of them that are available, that are out there now than there was, you know, 12 months ago, 18. I mean, 18 months ago, there was basically no debt financing option.

Sure I'll start just wanted to and then I'll hand, it over to Alex Thanks for the question Chris.

Just in terms of relationships with with lenders. There is just more of them that are available that are out there now than there was 12 months ago 18, 18 months ago. There was basically no debt financing options now you've got a number of very established company, you've got new folks looking to get into the space and as Alex said.

Now you've got a number of very established companies, you've got new folks looking to get into the space. And as Alex said earlier, terms are getting better. So, are market conditions impacting financing options? I say that.

Earlier terms are getting better.

So our market conditions impacting financing options.

I say that.

lenders are going to be more select about who they're lending to. I think if you were a new miner, you came out and you said, hey, I'm opening a 50 megawatt facility in, name your place, and you went to a lender, I think without a track record, you'd have a hard time getting financing. I think miners that have track records, that have existing teams in place, that have relationships in place, I think those are the miners that are going to be able to grow. So, I think scale matters. I think reputation matters. Relationships matter. And yes, we've heard from traditional banks, but they're dipping their toes. I think it's still, we're not there yet. I think those relationships are still, those are big ships. They take a long time to turn and they need a lot of effort to turn. And so, they're not quite ready to get there yet, but they're on their way.

Lenders are going to be more selective about who they're lending too I think if you were a new miner you came out and you said, Hey, I'm opening 50 megawatt facility in name your place and you went to a lender I think without a track record.

You'd have a hard time getting financing I think miners that have track records that have existing teams in place that have relationships in place I think those are the miners that are going to be able to grow so I think scale matters.

Reputation matters.

Relationships matter.

And yes, we've heard from traditional banks, but they're dipping their toes I think it's still we're not there yet I think those relationships are still those are there's a big ships. They take a long time to turn them and it would need they need a lot of effort to turn and so they are not quite ready to get there yet, but they are on their way.

Yeah, I just I just echo what Peter said there, you know, in terms of there are a lot of new movers into the market. And what comes with that is, you know, a lot more due diligence around, you know, who they're who they're planning to partner with, who they're planning to lend to. So so the track record, you know, is really important to show that, you know, we have used that we've used that wisely. You know, we've been very prudent with our debt. You know, we think we have we have more more room to take on more debt.

Yes.

I'll just echo what Peter said that you know in terms of there are a lot of new moves into the market.

And what comes with that is you know a lot more due diligence around you know who that do that playing its part in with through that trying to lend to so the track record.

Really important to show that we have used that we'd use that wisely we'd be.

Very prudent without that you know we think we have we have more more room to take on more debt.

and still stay within our, you know, our prudent internal EBITDA, debt ratios, et cetera, et cetera, and all of those good things.

And still stay within.

Our prudent internal.

EBITDA debt ratios.

Et cetera, et cetera, and all of those good things.

But, you know, where we stand today, we stand in a very strong position because we don't...

Where do we stand today, we stand in a very strong position because we don't we go on our balance sheet significant amount with bitcoin as well. So we are not wholly reliance on tax in fact.

We've got on our balance sheet a significant amount of Bitcoin as well. So we're not wholly reliant on debt.

In fact, we could almost self-buy and look at using just parts of debt, etc. As we've said, that's going to be our process going forward. So we're in a really strong position to move forward, and the debt market remains strong, and it's something that we're looking into.

Almost self mine.

On unused unused.

If I look at using just parts of death etcetera, as we set up that's going to be a process going forward. So we are we're in really strong position.

Move forward.

That market remains strong and it is something that we were looking into.

Great, we're getting close to the top of the hour, so we only have a few more questions. From King F, given the volatility of Bitcoin price and the unpredictability of the crypto space in general, do you have any plans or opportunities to diversify your mining capacity into different blockchain assets?

Great.

We're getting close to the top of the hour. So we only have a few more questions from King F. Given the volatility of bitcoin price and the unpredictability of the crypto space in General do you have any plans or opportunities to diversify your mining capacity into different blockchain assets.

Yeah. So thanks, Thanks, Tim for the question so.

So ArgoLabs is, you know, the kind of the main point of ArgoLabs is diversification and the team there is always exploring other avenues to look at. Can't share anything kind of at the moment exactly what they're looking at, but yes, it's something that, you know, we're always thinking about. In terms of, you know, mining other crypto assets, as we've done in the past with Zcash and then you go back into 2018, we mined.

So auto labs as is.

The main point of Argo labs is diversification and the team there is always exploring other avenues to look at cancer anything kind of at the moment exactly what they are looking at but but yes, it's something that we're always thinking about.

In terms of <unk>.

Mining other crypto assets as we've done in the past with the cash and then you go back into 2018, we mined.

you know, a host of, of altcoins, we're, we're always kind of opportunistic about other crypto assets. It's hard to get them king at scale, get kind of machines at scale the way you can for Bitcoin mining. You know, once in a while there is, there is opportunities again, like we had with the Z11s, mining Zcash. But for the most part, you know, our focus is on right now, making sure that Helios is, you know, the best.

First of all the coins.

We're always kind of opportunistic about other crypto assets.

It's hard to get them King at scale get kind of machines at scale. The way you can for bitcoin mining.

So once in a while there is there is opportunities again like we have with this the 11th.

Mining free cash.

But for the most part our focus is on right now, making sure that the Helios is the best immersion mining facility in the world and the machines that were focused on right now are our bitcoin machine.

immersion mining facility in the world. And the machines that we're focused on right now are Bitcoin.

Great. Our last question from Gary C. Are there plans to diversify into hosting other minors at Helios?

Our last question from Gary C are there plans to diversify into hosting other miners Helios.

So thanks for the question, Gary, in terms of hosting other miners.

So thanks for the question Gary in terms of hosting other miners.

For now, we plan on using the available power for ourselves.

Now we plan on using the available power power for ourselves, we're always looking at opportunities. We've had lots of conversations when you've got a big facility coming online people knock on your door and they say hey can you take can you take some of our machines.

We're always looking at opportunities. We've had lots of conversations. You know, when you've got a big facility coming online, people knock on your door and they say, hey, can you take some of our machines? We feel like with the margins that we have, with the team that we have, with our expertise in mining, you know, we're really good at mining. So we want to kind of use as much power as we can for ourselves.

We feel like with the with the margins that we have with the team that we have with our expertise in mining and we're really good at mine. So so we want to kind of use as much power as we can for ourselves moving into the future is there an opportunity to potentially how some folks at Helios.

Moving into the future, you know, is there an opportunity to potentially host some folks at Helios in the next phase, potentially, and we're having, you know, some of those conversations, but but nothing significant to report on in any way right now.

In the next phase potentially and we're having some of those conversations.

But but nothing significant to report on in any way right now.

Great, thank you very much and Tom thank you very much indeed for hosting that Q&A and Alex and Peter for your engagement. I will shortly redirect investors to provide you with their thoughts and expectations and get their feedback but Peter before doing so I'm wondering if I may just ask you for a few closing comments to wrap up.

Great. Thank you very much and Tom. Thank you very much and thanks for hosting that Q&A and Alex and pizza viewer engagement.

I will shortly return it to investors to provide you with their thoughts and expectations and get their feedback, but pizza before doing so I wonder if I may just ask you for a few closing comments to wrap up with.

Sure. Thanks, everyone. Listen, one of the great things about being the CEO of this company is that there's so much shareholder engagement. I mean, I don't know how many people we had today on this call, but there's always lots of people sending us notes, engaging with us on social media, turning up to things like this. We really appreciate it. Hopefully, we were able to answer at least some of the questions that came out. And we've got some big things coming in the next...

Sure.

Thanks, everyone listen one of the one of the great things about being a CEO of this company is that theres. So much shareholder engagement I don't know how much.

People, we had today on this call, but it's it's a there's always lots of people sending us notes engaging with us on social media I'm, turning up to things like this.

We really appreciate it hopefully.

Hopefully we were able to answer.

At least some of the questions that came out.

And we've got some some big things coming in in the next few weeks and months. So we're excited about about where we're at.

you know, a few weeks and months. So we're excited about where we're at. And, you know, I did say going back to, you know, the end of last year, quarters and years, and this thing takes time to build. And those of you that are sticking with us and that are, you know, believe in us, we really appreciate it. You really do. So it's a great time to be an Argonaut, I would say. And onwards and upwards.

And I did say going back to the.

The end of last year quarters in years, and this thing take time to build and those of you that are sticking with us and that are.

I believe in US we really appreciate it you really do.

So it's it's a it's a great time to be an argonaut, I would say and onwards and upwards.

great. Peter, Alex, Tom, thank you very much indeed for your time this afternoon and for updating investors. Could I please ask investors not to close this session as we'll now automatically redirect you for the opportunity to provide your feedback in order the company can really better understand your thoughts and expectations. This may take a few moments to complete but I'm sure the company will be most grateful. On behalf of the team from Argo Blockchain PLC we'd like to thank you very much indeed for attending today's presentation. Good morning to you Peter over there in the US and good afternoon Sarah.

Peter Alex Tom. Thank you very much and thanks for your time to something in from 18 vessels to that.

Please ask investors not to close this session as will now automatically redirect you for the opportunity to provide your feedback and all the company can really better understand your thoughts and expectations.

To take a few moments to complete but I'm sure. The company will be most grateful on behalf of the team from uncle Blockchain plc, we'd like to thank you very much indeed for attending today's presentation promoting to your pizza or they're in the U S and good afternoon to everyone. Thank.

Thank you.

Yeah.