Q1 2022 Argo Blockchain plc Earnings Call

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As we discussed on the last earnings call, we're now more comfortable with using a portion of our monthly mining Bitcoin to fund our operating expenses.

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As we discussed on the last earnings call. We're now more comfortable with using a portion of our monthly mining bitcoin to fund our operating expenses and continued growth.

So we'll talk about that a little bit later as well. And lastly, our money margin for Q1 was 76% amongst the highest of all our peers and a really good number considering market conditions for the first time.

We'll talk about that a little bit later as well.

And lastly, our money margin for Q1 was 76% are amongst the highest of all our peers and in a really good number considering market conditions for the first quarter.

All right, slide number four is kind of a.

Alright slide number four.

Is kind of a.

snapshot of our 2021, our 20, geez, I keep saying that our Q1 2022 results.

Snapshot of our 2021 or 'twenty, two as I keep saying that our Q1 2022 results.

We generated a revenue of 19.5 million, just under 15 million pounds. That's a 9% increase over our revenue from the first quarter of 2021. Our adjusted EBITDA, which excludes non-cash items like share-based payments and unrealized change in the value of our HODL, was 19.1 million US or 14.5 million pounds.

We generated revenue of $19 5 million just under 15 million pounds, that's a 9% increase over our revenue from the first quarter of 2021, our adjusted EBITDA, which include which excludes noncash items like share based payments and unrealized change in the value of our total with $19 one.

Million U S or $14 5 million pounds. Our net income came in at $2 1 million U S or one 6 million pounds.

Our net income came in at 2.1 million US or 1.6 million pounds. And we mined...

And we mined 470, bitcoin, which is a 21% increase over the same period last year.

470 Bitcoin, which is a 21 percent increase over the same period last year.

I also mentioned earlier, our money margin for the quarter was 76%. That translates into a direct cost per bitcoin mined of just under $10,000, $9,779 to be exact, or £7,448.

I also mentioned earlier our money margin.

For the quarter was 76% that translates into a direct cost per Meg bitcoin mind of just under $10000, a $9779 to be exact or 7448 pounds.

This mining margin is a drop from the 84% mining margin that we saw for the full year of 2021 and that's primarily due to a higher global hash rate and associated increase.

This money margin is a drop from the 84% mining margin that we saw for the full year of 2021, and that's primarily due to a higher global hatch rates and associated increase in difficulty and that's not surprising them we knew that.

And that's not surprising. We knew that, you know, if Bitcoin, if the price of Bitcoin didn't come up and network difficulty continued to rise, that money margins would likely come down a little bit for the first quarter.

If the quality if the price of bitcoin didn't come up and network difficulty continued to rise.

That money margins would likely come down a little bit for the first quarter of this year.

At the end of the quarter, we held 2700 Bitcoin and Bitcoin equivalents on the nose, on the balance sheet.

At the end of the quarter, we held 2700 bitcoin bitcoin equivalents on the notice on the balance sheet.

Just a quick note, in terms of transparency, I want to acknowledge.

Just a quick note you know in terms of transparency I wanted to acknowledge these results are not the best we've ever had we always knew that Q1 is gonna be a bit of a slog, we knew that we'd see some sluggish performance as our hatch rates stayed flat at $1 six extra hash, while we were building our Helios b.

These results are not the best we've ever had. We always knew that Q1 was going to be a bit of a slog. We knew that we'd see some sluggish performance as our hash rate stayed flat at 1.6 exa-hash while we were building Helios.

The focus for Q1 was to get Helios online. We've done that. I'm very proud of our operations team for doing, you know, as well as we've done with the 76% margin for the quarter, amongst the highest of our peers, as I said. And obviously, I'm super proud that we've done that.

The focus for Q1 was to get Helios online, we've done that I'm very proud of our operations team for doing a.

As well as we've done with a 76% margin for the quarter amongst the highest of our.

Other of our peers as I said.

Obviously I'm Super proud that we launched Helios two weeks ago.

All right, on to a few more points for Q1 2022. Again, our focus, rather than growing our hashrate, was executing our plans for Helios.

Alright onto a few more points.

For Q1, 2022.

Again, our focus rather than than growing our hatch rate was executing our plans for Helios.

Along those lines, I've said many times, looking forward, you need three things to be a successful miner. You need access to power. You need access to rates. You need access to capital.

Along those lines you know I've said many times.

Looking forward you need three things to be successful miner, who need access to power need access to raise you need access to capital.

We're very well set with access to power at Helios. Our interconnection agreement there is 800 megawatts of capacity.

Well set with.

Access to power of Helios, a you know our interconnection agreement there is 800 megawatts of capacity.

I know that there's been reports out, people have been talking about ERCOT slowing the pace of grid connections for new Bitcoin mining facilities in Texas. ERCOT, who are the folks who manage the grid in Texas.

I know that there's been.

Reports out people have been talking about ERCOT slowing the pace of grid connections for new bitcoin mining facilities in Texas are cognizant, who are the folks who manage the grid in Texas.

We have our interconnection agreement in hand for the full 800 megawatts, so we don't anticipate any negative impacts from adjustments that ERCOT is making. Our specific location as well is a particular advantage for us because we are very far from major centers and there is almost no local load where we're based. So we're really confident in our access to that 800 megawatts.

We have our interconnection agreement in hand for the full 800 megawatts. So we don't anticipate any negative impacts from adjustments that ERCOT is making our specific location as well as it is a particular advantage for us because we are very far from major centers and there is almost no local load where we're based.

So we're really confident in our access to that 800 megawatts.

And with respect to rigs, you know, again, power, rigs, capital, with respect to rigs, we signed a supply agreement with Intel to purchase their new block scale AFIC chips this year. We'll be deploying those into custom-made mining machines at Helios during the second half of this year.

And with respect to rigs.

You know again power rigs capital with respect to rigs, we signed a supply agreement with Intel to purchase there are there new block scale ethics chips this year.

Be deploying those into custom made mining machines accurately OS during the second half of this year.

On the capital side, we also strengthen our access to capital by establishing

On the capital side, we also strengthened our access to capital by establishing a financing relationship with Knight dig and that came in two different forms one was in February we borrowed approximately $27 million for a loan secured by electrical infrastructure. That's deployed in Helios. These are things like high voltage low.

a financing relationship with NYDIG, and that came in two different forms. One was in February , we borrowed approximately $27 million for a loan secured by electrical infrastructure that's deployed at Helios. These are things like high voltage, low voltage transformers, etc.

Low voltage transformers et cetera.

And then just a few weeks ago, we signed an additional agreement. This happened after our earnings call. We said we were, you know, continuing to explore debt. And then we announced, yes, here's a debt deal. And that was an additional agreement with NYDIG to borrow 71 million U.S. And that is secured by some of the money machines.

And then just a few weeks ago, we signed an additional agreement. This happened after our earnings call. We said we were continuing to explore that and then we announced yes, here's a debt deal.

And that was an additional agreement with 90 to borrow $71 million U S and that is secured by.

Some of the mining machines that Helios.

I'll go into a little bit more detail on these loans, on this loan later on.

I'll go into a little bit more detail on these loans on Islam later on.

We also signed an agreement with Core Scientific, our hosting provider, in the first quarter of this year to do a machine swap. We have about 10,000 F-19s that were located at some of Core's facilities. And rather than spend the money and the effort and the time to unplug these machines and ship them to Helios, which would have resulted in downtime, Core is sending us brand new machines, brand new F-19J pros, and we're swapping out the machines that we have.

We also signed an agreement with core scientific our hosting provider.

In the first quarter of this year to do a machine swap.

Have about 10000 F 19th that we're located that at some of course facilities and rather than spend the money and the effort and the time to unplug. These machines and ship them to Helios, which would have resulted in downtime core sending us brand new machines.

New EF 19, J pros and we're swapping out the machines that we have.

that we already have at CORE. So as we install these new machines in batches between May, June , July , CORE will take ownership of our S19s that are located in their facility. And we've already done the first of those swaps along the way. So it's an elegant solution. It avoids major operational risk and it benefits both us and CORE. It's truly a win-win.

We already have a core so as we install these new machines in batches between May June May June July and core will take ownership of RF 19th that are located in their facility and we've already done the first of those swaps.

Along the way so it's an elegant solution it avoids major operational risk.

And it benefits, both us and courts, it's truly a win win.

So once that machine swap deal is complete at the end of July , we'll be operating all of our machines and we'll no longer have any machines hosted at their.

So once that machine swap deal is complete at the end of July we will be operating all of our machines and will no longer have any machines hosted at third parties.

We also officially launched ArgoLabs this quarter. I'll talk through a slide on ArgoLabs a little bit later on and some of the projects that they're working on. And finally, we strengthened our board of directors with the appointment of Raghav Chopra, formerly a portfolio manager at a large asset management firm in the U.S., since left that firm to start his own digital assets fund. And this has allowed him to come and join our board. So we're very excited to have him. He's added a ton of value already.

We also officially launched our go lives this quarter I'll talk through a side on aren't allowed to with it later on in some of the projects that they're working on and finally, we strengthened our board of directors with the appointment of <unk> Chopra, formerly a portfolio manager at a large asset management firm in the U S. Since like.

That firm started though digital assets fund.

And this has allowed him to come in and join our board. So we're very excited to have at least he's added a ton of value already.

Alright.

Moving on to our Helios update, so.

Moving on to our Helios update so definitely the most exciting thing that's happened for the company.

Definitely the most exciting thing that's happened for the company in 2022 so far is that we've officially opened Helios. We had an event, I guess it was two weeks ago now.

And in 2022. So far is is that we've officially opened Helios we.

We had an event.

Yes, it was two weeks ago now.

We energized the facility on May 5th, and we actually started mining Bitcoin that day. So here's kind of one of our latest photos. You can see the substation that we've built that's connecting to the Cottonwood substation in the foreground and in the background is the facility.

We energized the facility on May 5th and we've actually started we actually started mining bitcoin that day.

So here's a kind of one of our latest photo you can see the substation that we've built that's connecting to the Cottonwood substation in the foreground and in the background as the facility of 125000 square feet with the air coolers coming out on the side.

125,000 square feet with the air coolers coming out on the side.

In that picture, if you look carefully, you can see a tent on the left side down the building where there's, that was where we had our opening event, or part of the opening event, the food for the opening event on May 5th.

And that picture. If you look carefully you can see a 10th on the left side down the building.

Where there's a that was where we had our opening event are part of the opinion that the food for the opening event on may 5th.

All right, moving along a little bit more about our our grand opening. So we had about 300 folks in attendance, including most of our Argo team about 150 to 200 people were from the local community came out to show their support. It was great.

Alright, moving along a little bit more about our our grand opening.

So we had about 300 folks in attendance.

Equally most of our cargo team about 150 to 200 people were from the local community.

It came out to show their support it was great.

We also had US Congressman Ronny Jackson there to say a few words. This is the first mining facility in his district. He was happy to be there, happy to learn about the space and learn about our business. We also had Bill Flores, who's the Vice Chairman of the ERCOT Board of Directors, obviously a good ally to have. He came and gave some remarks, ERCOT.

We also had U S congressmen Rodney Jackson, there to say a few words as this is.

The first mining facility in a district he.

He was happy to be Theyre happy to learn about the space and learn about our business.

We also have Bill Flores, Vice chairman of the ERCOT Board of directors, obviously, a good ally to have.

He came and gave some remarks ERCOT.

as I've said, is excited about the opportunity for Bitcoin mining to play a role in stabilizing the grid in West Texas. So we're happy to have Bill come.

As I've said is excited about the opportunity for bitcoin mining to play a role in stabilizing the grid in West, Texas. So we're happy to have Bill com.

We had a bunch of other people there last week, we put out a video recap of the day. So if you haven't had a chance, it's up on YouTube, check it out. We're also gonna have a few other videos coming out in the next few weeks about some of the backstory of Helios and some of the kind of, you know, the trials and tribulations of setting up a large facility in the...

We had a bunch of other people there last week, we put out a video recap of the day. So if you haven't had a chance it's up on Youtube check it out.

We're also going to have a few other videos coming out in the next few weeks about about some of the back story of Helios and some of the the.

But the trials and tribulations of the.

Setting up a large facility.

In the.

in the Texas High Plains. But all said, it was a fantastic day and the team has done an incredible job. No one in Dickens County can believe that we built the facility as fast as we can. In fact, no one in the space can believe that we put it up as quickly as we can. So we're getting a lot of congratulations, which feels good, because obviously it was a big moment for us and a big part of our vision for the future.

In the in the Texas.

Hi planes, but all said it was a fantastic day and the team has done an incredible job knowing their biggest county can believe that we've built the facility as fast as we can in fact no. One in this space you know can believe that we'd put it up as quick as quickly as we can so we're getting a lot of a lot.

Congratulations which feels good because we obviously.

It's a big big moment for us and a big part of our vision for the future.

Alright, So a couple more pictures on the left you can see the crowd.

A couple more pictures on the left, you can see the crowd.

That came out, as I said, a ton of locals had a lot of partners there as well. A lot of people have helped our go along the way, and we wanted to make sure that they were recognized and had a chance to, you know, touch and feel what we're building and it was, it was awesome to have them there. And on the right you can see.

Him out as I said, a ton of locals had a lot of partners there as well a lot of people have helped our go along the way and that we wanted to make sure that they were recognized and had a chance to touch and feel what we're building and it was it was awesome to have them there and on the right you can see or emergent facility Perry <unk>. Our CTO has done an incredible job of coming up with.

Our emergent facility, Perry Hoty, our CTO, has done an incredible job of coming up with

um you know the design and the system for immersion um roughly speaking you know you can see those tanks those large silver tanks double decker um those hold the fluid which cool the machines the machines sit in those tanks

The design and the system for immersion.

Roughly speaking you can see those tanks those large silver tanks double decker those.

Those hold the fluid, which cool the machine to machine sit in those tanks.

And then the fluid is pumped, you know, you see the large pumps and hoses, the hoses that come out and then the larger piping below the fluid goes into those and it goes out into those air coolers that you see outside. Essentially, those air coolers are like a giant car radiator and they cool the fluid and then once the fluid is cool they come back in.

And then the fluid is pumped you see the large pumps and hoses those as they come out and then the the larger <unk>.

Below the fluid goes into those and that goes out into those air coolers that you see outside essentially those air coolers or like a giant car radiator.

And they cool the fluid and then once the blue's cool they come back in.

The black boxes which you see on the front of those.

The black boxes, which you see on the front of those.

Racks are PDUs, Power Distribution Units.

Racks are PD use power distribution units.

And, and those manage the electricity that flows into each mining machine. So those are important part of any mining facility. We had our custom ours custom built, you can see their branded Argo and.

And and those manage the electricity that flows into each mining machine. So those are important part of any mining facility. We had our custom custom built you can see their branded Argo and so it's really truly accustomed facility from top to bottom.

So it's really, truly a custom facility from top to bottom. And again, this is a new space, this is new technology, and we are at the absolute forefront of it. And Perry and our team are doing an incredible job. And really feel a sense of ownership over this design, over this facility, and that's what we want. We're good at mining, we're good at running facilities, and we've done, every time we've set out to do.

And again you know this is a new space. This is new technology and we are at the absolute forefront of it and Perry and their team and our team are doing an incredible job and really feel a sense of ownership over the design of this facility and that's what we want we're good at mining we're good at running facilities.

We've done every time, we've set out to do something on the technological level, we've achieved it and its heart.

something on a technological level, we've achieved it. And it's hard, you know, there's, it's not easy. People, that's the question I get all the time. How easy is it to do immersion mining? Why aren't more people doing it? A lot of people aren't doing it because it's challenging. And, but our team can do it because they're really good. So I'm very proud of.

It's not easy on people. That's a question I get all the time, how easy is it to do a merger mining why aren't more people doing it a lot of people are enjoying it because it's challenging and but our team can do it because they are really good.

So I'm very proud of the work the team has done.

All right, moving on to kind of a look ahead of Helios phase one. Again, we show this slide during our last presentation a few weeks ago.

Alright moving on to.

Kind of a look ahead of Helios.

Helios phase one again, we showed this slide during our last earnings presentation, a few weeks ago.

shows the basic kind of work streams moving forward. We've already started installing machines at Helios.

Shows the basic kind of work streams are moving forward and we've already started installing machines at Helios.

Let's pass over the construction because we're done that the key, the key little dot there is the energization dot that's happened, start of May, so you can check that one off. Then we've got, you know, demand response registration and installation of immersion equipment. Those are the main responses is is done. We're registered for that. The installation of immersion equipment is happening.

Let's pass over the construction because we've done that the the key the key little Dot. There is amortization thought that's happened started may. So you can check that one off and then we've got demand response registration and installation of immersion equipment. Those are the main responses is downward registered for that.

Installation of emergent equipment is happening.

still going on to the end of June , building out ahead of what we already have done so far. Then this core swap machines, which are also Bitmain machines, and then the Bitmain orders, those are being installed as we speak, as we said, to the end of July and then the end of August .

It's still going on to the end of June building out ahead of what we already have.

Done so far than this core swap machines, which are also bit knit machines, and then does it mean orders those are being installed as we speak.

As we said to me the end of July and then the end of August .

And then lastly, the Intel machines, we're in that design testing phase right now for those. And then the deployment of those would be in the second half of this year, we're targeting kind of very late Q3, early Q4.

And and then lastly, the Intel machines, we're in that design testing phase right now for those.

The deployment of those would be in the second half of this year, we're targeting very late Q3 early Q4.

All right, slide number 10, total hashrate capacity. Again, show this slide, last presentation at the end of Q1 had 1.6 exahash of mining capacity. We've started installing machines at Helios and are expecting to increase our hashrate to.

Alright.

Slide number 10 total hatchery capacity again showed this slide last night last presentation at the end of Q1 has one six <unk> of mine capacity, we've started installing machines at Helios and are expecting to increase our hatch rate too.

2.2 ExaHash by the end of Q2. We also expect to start deploying the Intel machines that I just said during Q4, so that will take us to approximately 5.5 ExaHash by the end of the year.

Two two X a harsh by the end of Q2.

We also start expect to start to point the Intel machines that I just said during Q4, so that will take us to approximately $5 five extra harsh by the end of the year.

Alright.

Slide 11 is kind of looking forward.

Slide 11 is kind of looking forward to 2023 and 2020 for and just kind of wanted to talk through the slide again.

to 2023 and 2024. And just kind of want to talk through this slide again, just to emphasize the incredible runway that we have for growth at Helios. So phase one, 200 megawatts of power. Beyond that, we have an additional 600 megawatts that we can develop over the next few years. Our supply agreement with Intel is a key differentiator for us here. So not only are we going to be deploying these chips.

Just to emphasize the incredible runway that we have for growth at Helios. So phase one 200 megawatts of power beyond that do you have an additional 600 megawatts that we can develop over the next few years, our supply agreement with Intel is a key differentiator for US here. So not only are we going to be deploying these chips.

which are more cost effective than buying stock machines, but we're able to custom design these machines to run specifically in our immersion system at Helios. So we won't have to rely on off-the-shelf machines, but able to put our own form factor and our own software, et cetera, into the machines, and that will really allow us to take advantage of the immersion.

Which are more cost effective than buying stock machines, but we're able to custom design. These machines to run specifically in our emergence as Matthew list.

So we won't have to rely on off the shelf machines, but able to put our own form factor in our own shop.

Software et cetera into the machines and that will really allow us to take advantage of the merchant benefits.

So all of this adds up to essentially a pretty significant amount of growth into 2024. And that's, you know, targeting roughly 20x a hash north of 20x a hash by 2024. And that obviously includes the full development of the 600 megawatt.

So all of this adds up to essentially.

Pretty significant amount of growth.

Into 2024, and that's targeting roughly 20 extra harsh north of 20 extra harsh.

By 2024.

And that obviously includes the full development of the 600 megawatts.

So even though we're still at phase one, we've already taken some of the key steps to kind of build out the next phase. Earlier this year, we announced four additional transformers that will take us up to that 800 megawatts of power. These are long lead items. You can't get a massive transformer overnight. So those take nine, 10 months. So we've got those coming in the first half.

So even though we're still at phase one where we've already taken some of the key steps to kind of build out the next phase.

Earlier this year, we announced four additional transformers that will take us up to that 800 megawatts of power. These are long lead items.

You can't you can't get a massive <unk>.

Transformer overnight. So those take 910 months. So we've got those coming in the first half of next year.

All right, slide number 12 is our financing our growth. So in our presentation a couple of weeks ago, we showed the slide and said we need roughly 125 million of additional capital to complete phase one. Also said, as I mentioned, that we'd be looking at primarily at raising debt and selling Bitcoin to fund this capital in early May, we announced.

Alright slide number 12 is our financing our growth so in our presentation.

Weeks ago, we showed the slide and said, we need roughly $125 million of additional capital to complete phase. One also said as I mentioned that we'd be looking at primarily at raising debt and selling bitcoin.

This capital in early May we announced the first where we announced the next debt deal.

first or we announced the next debt deal, a $71 million financing deal with NYDIG. We'll get into the details of that slide, that deal on the next slide. But additionally, essentially we need $50 million of capital remaining to, and we expect to finance this with a combination of additional debt and by selling a portion of our monthly Bitcoin production. So we were at $125.

$71 million financing deal with <unk>.

We'll get into the details of that slide.

That deal on the next slide but.

But additionally, it essentially we need $50 million of capital.

Remaining two and we expect to finance this with a combination of additional debt and by selling a portion of our monthly bitcoin production. So we were at 125.

you know, minus 70, 71, need roughly 50 million of additional capital to fully build out phase one. And that includes infrastructure, machines, you know, everything, the whole.

Minus 70, 71 need roughly $50 million of additional capital to.

Fully build out phase one and that includes infrastructure machines.

Everything the whole the whole kitten caboodle.

All right, our machine financing agreement with NYDIG. So feedback from.

Alright.

Our machine financing agreement with Knight egg so feedback from from shareholders large and small is they given where we're at right now non dilutive growth are non dilutive capital as our best factor for growth, our best way for us to grow.

Shareholders large and small is they given where we're at right now non dilutive growth or non dilutive capital is our best factor for growth.

our best way for us to grow. So that's what we've done with this latest machine financing agreement with NYDIC. We have built a relationship with them, going back to earlier this year. Obviously, they've been in the space for a while. We signed an agreement with them to borrow $27 million for building out parts of Helios. And that was secured by some of that electrical infrastructure at Helios.

So so that's what we've done with this latest machine financing agreement with <unk>.

We have built a relationship with them going back to earlier this year, obviously, they've been in the space for for a while.

We signed an agreement with them to borrow a $27 million for building.

Building out parts of Helios and that was secured by some of that electrical infrastructure and Helios.

So then we built upon that relationship with NYDIG and now have this $71 million finance agreement.

So then we build upon that relationship with <unk> and now have this $71 million financing agreement mm.

The borrowings from this deal, I think as people, if they read the RNS and they saw the deal, they'll be funded in tranches over the next few months.

The borrowings from this deal I think as people if they read the rns and they saw the deal there'll be funded in tranches over the next few months as we take delivery of the EF 19, J pros that are coming.

as we take delivery of the F-19J pros that are coming into the facility. The interest rate is 12% on this loan. You know, to the average consumer, obviously that's very high. If you come from a traditional finance background or if you're mortgaging your house, you're like, wow, that's a big number. But this is actually a very competitive rate for machine financing. You know, when Alex and I started talking about machine financing with people,

Into the facility.

The interest rate is 12% on this loan.

To the to the average consumer obviously, that's very high.

If you come from a traditional finance background or if your mortgage in your house you you're like Wow, That's a big number but this is actually a very competitive rate per machine financing.

Alex and I started talking about machine financing with people.

Not that long ago, 18 months ago, 24 months ago, rates were 24, 25, 27%. They've been in the high teens for most of the last 12 months. So getting down to 12% is a good number. But obviously, we want that number as low as possible moving forward. And we are seeing the trend in the industry in general is to move towards lower and lower interest rates.

Not that long ago, 18 months ago 24 months ago rates were 24 25, 27%.

They've been in the high teens for most of the last 12 months, so getting down to 12% is a.

A good number.

But obviously, we want that number as low as possible.

Moving forward and we are seeing that the trend in the industry in general is to is to move toward lower and lower.

Interest rates.

So, as I said, these machines are secured against the S19J pros.

So as I said these these machines or are secured against the D. S 19 J price.

Alright Argo labs.

Um, so Sebastian and the team at Argo labs have been doing a great job. Um, we started, uh, Argo labs last year and launched it to the market in, in the first quarter of this year. So, I mean, in a way we've been doing Argo labs since we, we first, um, you know, came together as a company. We've always been talking about other parts of the ecosystem, at least an informal way. We had made a few, you know, deployments of capital over the years, but now we have officially, you know, this, this thing called Argo labs.

So Sebastian and the team at Argo labs have been doing a great job.

We started our go lives last year and launched into the market in and of course first quarter of this year. So I mean, it in a way we've been doing Argonne labs since we first.

Came together as a company we've always been talking about other parts of the ecosystem at least an informal way we had made a few.

Deployments of capital over the years, but now we have officially.

Thing called Argo Labs.

And I think, as everyone knows, the focus is on mining activities, participating in the disruptive sectors of the broader blockchain and Web3 ecosystem. So far, we've allocated about 10 percent of our total digital assets to Argo Labs. You can see in the pie chart here, breakdown.

And I think as everyone knows the focuses is on mining activities participating in the disruptive sectors of the broader blockchain and web three ecosystem.

So far we've allocated about 10% of our total digital assets to Oracle labs.

You can see in the Pie chart here a breakdown.

some of those holdings. Polkadot, we first invested in back in 2019, has done very well for us, makes up a large portion of our ArgoLabs holdings. And then we also have exposure to Ethereum, Solana, Cosmos, Near.

Some of those holdings.

We first invested in back in 2019.

Done very well for us makes up a large portion of our or are the labs holdings.

And then we also have exposure to a theory EMS Atlanta Cosmos near.

and others, and aside from those specific tokens, the team is also looking at and deploying capital into early stage projects in the areas of GameFi, NFTs, and DeFi. But it truly is a diversified approach. We're also generating revenue through yield generation by running nodes, staking, and participating in DeFi liquidity pairs and others.

And others.

And aside from those specific tokens. The team is also looking at and deploying capital into early stage projects in the areas of game five ftes in default, but it truly is a diversified approach.

We're also generate journey generating revenue.

Through yield generation by running nodes staking and participated in deeper liquidity pairs and others.

Overall, generally, as I've said many times before, the goal for ArgoLabs is to take a portion of our Bitcoin holdings and generate additional uplift from those holdings that simply outperforms just holding Bitcoin.

Overall generally as I've said many times before the goal for AGA labs is to take a portion of our bitcoin holdings and generate additional uplift from those holdings that simply outperforms.

Just holding bitcoin.

Obviously, last week in the Web3 space and in the non-Bitcoin space, well in the Bitcoin space too, but last week was a particularly intense week with the collapse of the UST and Luna world, the Terra ecosystem.

Obviously last week.

And the when three space and in the non bitcoin space for them to make point space too, but but last week was a particularly you know.

Intense week with the collapse of the U S T and and and.

And Luna.

World Natera ecosystem.

We're not super heavily invested in the Terra ecosystem. We did have some UST. We were participating in yield generation on the anchor protocol. None of these amounts were material. We were able to sell our UST positions at 93 cents, which looking back was a very good move given where.

We are we're not super heavily invested in the Terry ecosystem, we did have some U S T M.

We were participating in yield generation on the anchor protocol. None of these amounts were material, we were able to sell our USG positions at 93.

Which looking back was it was a very good move given where last time I checked and he was trading at 12 cents.

Last time I checked, I think it was trading at 12 cents. So overall, on a net basis in the tariff ecosystem, we nearly broke even on our positions after taking into consideration the yield that we generated through our.

So overall on a net basis in the Taro Terry ecosystem, we nearly broke even on our positions after taking into consideration that generate that we the yield that we generated.

Through our through our.

through our holdings there. So, we did pretty well, all things considered with what happened.

Through our holdings there so.

You know, we did pretty well all things considered with what happened.

All right. So, that's my portion of the presentation. I'm going to hand it over to Alex. He's going to go into some more detail on our financial performance.

Alright, So that's my portion of the presentation I'm going to hand, it over to Alex.

He's going to go into some more detail on our financial performance.

Thanks Peter. Hi everyone. I just wanted to echo what Peter said about seeing the facility first hand. It's the first time that I've seen the facility a couple of weeks ago and really hats off to the Ops teams and the Techs team for, you know, we've invested, you know, a great deal of money there and we're now about to see the rewards from that investment. So really exciting time to be part of that build out and part of that facility.

Peter Hi, everyone just wanted to Echo what Peter said about saying that facility first time. This is the first time that I've seen it so let's see a couple of weeks ago, and really hats off to the ops teams and texting for.

We've invested.

A great deal of money that we're now we're about <unk>.

See the rewards from that investment so a really exciting time to be part of that build out and thought about for some time.

To go into the figures.

So as Peter said earlier, the first three months of this year, whilst we haven't been investing in new machines on the ground, we knew that this would be a bit of a difficult time. Having said that, our mining margin is still at 76%. Again, we always aim to be in Tier A and that is well within Tier A of our fellow miners.

At the Pizza said, yeah. The first three months of this year, whilst we haven't been investing in new machines on the ground. We knew that this would be a bit of a difficult time, having said that I'm not.

Marching is still at 76% again.

We seem to be in CRA in that as well, we didn't see a write off of our fellow minus.

Our cost per Bitcoin was just below $10,000 per Bitcoin or just under £8,000. So still very, very competitive and still very, very profitable.

Our cost per bit coin was just below $10000 a bitcoin.

Or just some of the 8000 pounds, so still very very competitive.

Still very very profitable.

In terms of what we are now starting to present to the market, we have made the decision to present an adjusted EBITDA. As Peter said, this excludes the share-based payment.

In terms of what.

What we announced starting to present to the market.

Make a decision 2% and adjusted EBIDTA as Pizza set this excludes the share based payment charge.

and also the change in fair value of digital currency. And what we think that really gives the shareholders a view of how the company is performing, taking some of the elements that we don't necessarily control out of the equation. So we're taking out those charges which go through or are seen.

And also with the change in fair value of digital currency and what we think that that really gives the shareholders. A view of how the company is performing taking taking.

Taking.

Some of the elements that we don't necessarily control out of the equation. So we're taking out those charges, which go through are seen all gains and data that is seen in our profit and loss account. So that people can see how we're actually performing as a business I don't see how should we look about adjusted EBITDA.

or gains indeed that are seen in our profit and loss account so that people can see how we're actually performing as a business.

And obviously, as we look at that adjusted EBITDA, it was very, very pleasing and a great figure in the high 90s there.

It was very very pleasing.

Great cigarettes.

In the high nineties that so the business is well positioned as we stand today.

So the business is well positioned as we stand today and as we build out Helios that will continue to grow and we will see the impact of the lower power costs that we're able to get at the Texas site and how that impacts our cost for Bitcoin as we have machines mining in the emerging facilities.

As we build out Helios seats that will continue to grow and we will see.

The impact of the lower power cost that we're able to get the types of sites and how that impacts our cost of bitcoin as we have machines mining and the emergence of celgene.

So, moving down the P&L, we can see that there's a couple of impacts here, particularly from foreign exchange. So, the pound weakening against both the US dollar and the Canadian dollar has adversely actually helped our income statement, and we've also had a revaluation of the contingent consideration. So, this was the monies that we paid for, sorry, the shares that we paid for DPN. They changed in value, and hence we had a gain in the face of the P&L for those.

So moving moving down the P&L, we can see that there's a couple of big impacts here, particularly from foreign exchange inside the pound weakening against the U S dollar and the Canadian dollars.

It actually helps our our income statements and we've also had a revaluation of the contingent consideration. So this was the monies that we pay to sorry, the shares to be paid for VPN.

They changed in value and hence we had a gain in the face of the P&L for those.

We've seen interest expense increase as we've moved towards away from the equity and we've lent into debt. So we've seen an increase as we would expect in our interest expense, well within our coverage ratios and our internal coverage ratios and targets that we have still very comfortably covered up.

Interest expense increase as we move towards away from the equity.

We went into that so we've seen it increases we would expect in our interest expense well within ASO coverage ratios and our internal coverage ratios and targets that we have I'm still very comfortably pivot off of that.

So that is our P&L. Again, given the challenges that we've seen in the first quarter and the challenges we knew we would face, really pleasing to see that we have a net income and a very healthy EBITDA, our mining profits, percentages and results. So moving on.

So that is that as you know our game given given the challenges that we've seen in the first quarter the Jos.

Really pleasing to see that we have a net income in a very healthy EBITDA remaining profit.

<unk> results, so I'm moving on to the balance sheet.

We can see that the balance sheet, we've increased particularly our property, plant and equipment, and we've also increased some of our trade and other receivables. The items that are flowing into trade and other receivables are significantly the machine prepayments that we've put down for Bitmain, and we've also, we made, in the first quarter, we made our first payment towards the Intel machine, so we've put $10 million prepayment down for those as well.

We can see that the balance sheet, we've increased our particularly our property plants and equipment and we've also increased from about trade and other receivables the items that are flowing into trade and other receivables up significantly the machine prepayments that we put down a bit.

And we've also we made in the first quarter, we made our first payment towards the Intel machine. So we put $10 million prepayment dome well receive digital assets move us we've moved away from the pure that's an equity structure to a debt on selling bitcoin structure, we've seen obviously a dishwasher.

We've seen digital assets move as we've moved away from the pure debt and equity strategy to a debt and selling Bitcoin strategy. We've seen our digital assets reduce as we sold those off to meet our operating costs and expenses.

Yes reduces we sold those off to meet our operating costs and expenses.

On the liability side, we've seen the debt increases, as Peter has talked about earlier, in terms of NYDIG. Again, very much within our internal targets for debt to EBITDA, both forward-looking and backward-looking, and we're in a very comfortable position with that. Our weighted average cost of capital is still below 10%, so we're very happy with that.

On the liability side, we've seen the data.

<unk> increases as Peter has talked about.

In terms of <unk> again, very much within our internal targets for debt to EBITDA are forward looking and backward looking and we're in a very comfortable position with our weighted average cost of capital is still.

Below 10%, so we're very happy with that.

And as Peter said, you know, the 12% on the face of it looks, appears high, but as Peter said, only six or seven months ago, I think we were offered within the high teens. So, you know, we're really seeing those rates come down alongside infrastructure rates are much more in line with traditional sector as well. So.

As Pete said.

The 12% on the face of it.

Is looks appears high books as Pizza said only every six or seven months ago. I think we're off as it was in the high teens. So we're really seeing those rates come down alongside infrastructure rates much more in line with traditional sector as well, so and really pleasing to see how the debt market is maturing and how we've got optionality there too.

Really pleasing to see how the debt market is maturing and how we've got optionality there to continue our build-out. And as Peter said,

Continue our build out and as Pete said, we presented a couple of weeks ago.

You know, we presented a couple of weeks ago, you know, the requirement for 125. We've already secured 70 million of that, leaving us with 50 million to be spread between debt and also selling of Bitcoin in the near future to get us to the end of that 200 megawatts phase one. Thank you, Peter. Pass it back to you.

The requirement for 125, we've already secured $70 million without leaving us with $50 million spread between that and also selling a big point in the near future to get us to the end of about 200 megawatts.

As one.

Thank you Peter I'll pass it back to you.

Alright, Thanks, Alex.

So again, you know, a classic slide that you've seen from us, three key differentiators. One, massive runway of power, 800 megawatts in Texas.

So again, a classic slide that you've seen from US three key differentiators, one massive runway power 800 megawatts in Texas.

I can't emphasize right now how important that access to power is and how important HEDOS is for us. We are continually hearing reports, having phone calls with people in the space.

This.

I can't emphasize right now how important that access to power is and how important Helios is for us.

We are continually hearing reports, having phone calls with people in the space.

And infrastructure is hard to get right now. And infrastructure at scale is hard to get right now. You know, everyone thought that machines were gonna be, you know, the issue with the supply chain, with chip shortage.

And the infrastructure is hard to get right now and infrastructure at scale is hard to get right now.

You know everyone thought that.

Machines were going to be.

The issue with with the supply chain with wood chip shortage.

Machines are not the issue right now. Access to power at scale is an issue right now for a lot of miners. So the fact that we're doing it and executing on in Texas is a huge advantage for us. And the fact that we have an incredible team, both on the construction side and on the operation side in Texas is another huge advantage for us. So we're very excited about that.

Machines are not the issue right now access to power at scale is an issue right now for a lot of miners. So the fact that we're doing it and executing on in Texas is a huge advantage for us.

And the fact that we have an incredible team both on the construction side and on the operations side in Texas is another huge advantage for us. So we're very excited about that.

Secondly, our relationship with Intel and our supply group that we have with them and the fact that we're building out.

Secondly, our relationship with Intel.

And our supply agreement that we have with them and the fact that we're building out.

our own custom machines for immersion is a huge advantage or will be a huge advantage for us in the second half of this year. And then lastly, I think it's important that we as a company continue to emphasize our climate friendliness and our emphasis on ESG. That's a big part of who we are. It's a big part of what brought a lot of people into the company or turned a lot of people's attention to the company.

Our own custom machines for immersion.

The huge advantage there will be a huge advantage for us in the second half of this year and then lastly, I think it's important that we as a company continue to emphasize our R.

Our climate.

Leanness and our emphasis on ESG, that's a big part of who we are.

A big part of what brought a lot of people into the company or turned a lot of people's attention to the company.

a couple of years ago, or even last year, and it's something we're gonna continue to emphasize, and that's why we're setting up in Texas where there's wind, and we're gonna continue to be leaders in that part of the state.

A couple of years ago, or even last year.

And it's something we're going to continue to emphasize and that's why we're setting up in Texas, where there is wind.

And we're going to continue to be leaders in that part of the space.

All right, so we're going to open it up now for questions. I think Tom Devine is going to come on and he will be our Q&A moderator.

Alright, so we can open it up now for questions I think Tom to mine is going to come on and he will be our our Q&A moderator.

No problem at all. And just before Tom comes in, may I remind ladies and gentlemen to continue to submit your questions using the Q&A on the right-hand corner of your screen. But just while the company take a few moments to review the questions submitted already, I'd like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, will be accessible via your Investamate Company dashboard. Tom, if I may, if I could hand back to you and just if I could ask you to read out the questions and give a response.

And just before Tom comes in May I'll remind ladies and gentlemen to continue to submit your questions in the Q&A on the right hand corner of your screen, but just wanted to take a few moments to review the questions for me sort of where the electro module that a recording of this presentation along with a copy of the slides and the published Q&A will be accessible volume investment company dashboard tell me if I may if I can hand back to you and just if I could.

I'll ask you to read out the questions and give a response, obviously, where it's appropriate. Thank you.

Great. Thanks, Mark. Peter, our first question today comes from Ramsey Ellisall at Barclays. Can you help – can you help us understand your margin expectations for the remainder of the year? To what extent will the launch of the Helios facility offset network margin pressures? Yeah. That's a good question. Thanks, Ramsey. Thanks, Peter.

Great. Thanks, Mark.

Peter Our first question today comes from Ramsey Al at Barclays can you help us can you help us understand your margin expectations for the remainder of the year to what extent will the launch of the Helios facility offset network margin pressures.

Yes, it's a good question. Thanks Ramsey.

So listen I think our R.

know, our overall margin is always determined by a number of factors, price of Bitcoin, power cost and money.

Our overall margin is obviously determined by a number of factors price of bitcoin.

Power cost and mining difficulty.

You know, we have expected this year that mining difficulty would continue to rise throughout the year. Bitcoin price is going to be Bitcoin price. It's, you know, we are bullish long term, but in the short term, as we saw over the last few weeks, Bitcoin can be volatile. So you know, in terms of margin expectations, it's not just our power costs that are going to determine, you know, what our overall margin is.

We have expected this year that that mine difficultly would continue to rise throughout the year take one price is going to be bitcoin prices. We are bullish long term, but in the short term as we saw over the last few weeks.

Echoing can can can be it can be volatile.

So.

In terms of margin expectations, it's not just our power costs that are going to determine.

What what our overall margin is that being said our power costs at Texas are expected to be lower than our operations in Quebec. That's why we set up in Texas, because we can take advantage of lower power costs.

That being said, our power costs at Texas are expected to be lower than our operations in Quebec. That's why we set up in Texas, because we can take advantage of lower power costs.

CLR, all of the advantages for being in that competitive Texas grid.

CLR all of the advantages for being in that competitive Texas grid.

<unk>.

is why we're there. So, we think we're in a good place there. We have more control over our operations. But ultimately, it's not just the price of power that's gonna have an impact on our margins. So, I don't wanna be overly bullish and say that we're gonna have an incredible mining margin at Helios right now. I think the margins would be good. I think they'll be better than Quebec.

This is why were there. So we think we're in a good place there we have more control over our operations, but ultimately.

It's not just the price of power that's going to have an impact on our margins. So I don't want to be overly bullish and say that we're going to have an incredible mining margin.

At Helios right now I think the margins will be good I think there'll be better then.

We're better than Quebec.

But I don't think, you know, to use your word, I don't think it's going to offset necessarily because we don't know, you know, where the price of Bitcoin is going to be. We know that difficulty is going to continue to rise because lots of people have invested in machines and infrastructure and more power is going to come on, more machines are going to come on. But ultimately, you know, the goal is to always be in that upper tier of efficiency.

But I don't think to use your word I don't think its kind of offset.

Necessarily because we don't know where the price of bitcoin is going to be we know that difficulty is going to continue to rise because lots of people have invested in machines in infrastructure and more power is going to come on more machines are going to come on.

But ultimately the goal is to always be in that upper tier of efficiency and being in Texas will get us into that opportunity I guess in Pittsburgh or is getting us into the upper tier of efficiency, especially with.

And being in Texas will get us into that upper tier of efficiency or is getting us into the upper tier of efficiency, especially with, you know, having an immersion facility.

Having an emerging facility.

Thanks. Thanks, Peter. Next question is for Alex. And we've received this a few times. We said that we'll be focusing on raising capital through debt and by selling Bitcoin. How much debt are we willing to take on?

Thanks, Peter next question is for Alex and we've received this a few times.

We said that we'll be focusing on raising capital through debt and by selling bitcoin how much debt are we willing to take on.

It's a good question, particularly given our strategy going forward and one we've given a great deal of thought to internally. So we've had discussions at board level in terms of what level of debt, particularly as I say against forward-looking EBITDA but also against backward-looking EBITDA.

It's a good question, particularly given our strategy going forward.

We've given a great deal of thought to internally. So we've had discussions about level in terms of what level of debt, particularly as I say against forward looking EBITDA, but also against backward looking EBITA.

And as a company, many of you have followed us for a while, you know that we take a very prudent approach.

<unk> as a company. Many of you have followed this for a while you know that we take a very prudent approach.

And those targets internally, we've not released to the market, but again, are very prudent. We wouldn't want to be exposed. And part of what our strategy is around debt is matching the length of the debt against the assets to which we are financing those against. So if you look at our machine debt, our machine debt is financed over a period of two years.

And those targets internally, we've not released the market, but again are very prudent.

We wouldn't want to be exposed and part of what our strategy is around that as much in the length of the debt against the assets to which we are.

Financing those against so if you look at our machines.

Our machine that is financed over a period of two years.

Our infrastructure debt is over a period of four years. So we're always taking a very prudent view on the length of the debt that we have exposed against the assets that is also being financed.

Infrastructure that is over a period of four years. So we're always taking a very prudent view on the length of the debt that we have exposed against the assets. There's also have been financed against so when we when we think about that for the rest of the build out what we will do is we'll continue with that approach and we also hope that when we look at the rest of the build out will be able to.

So when we think about debt for the rest of the build-out, what we will do is we'll continue with that approach. And we also hope that when we look at the rest of the build-out, we'll be able to...

<unk>.

take on financing, which will be able to, as we build out the rest of Helios in a more modular fashion, potentially, we will be able to shorten the lifespan of the debt against the assets to which it's financing. So if you think about how we've built out Helios today.

Take on financing, which will be able to.

As we build out the rest of Helios and a more modular fashion and potentially.

We will be able to shorten the lifespan of the debt against the assets to which is financing. So if you think about how we built our helios to date.

You know, we have used equity, it's been long lead items, and we've had a lot of investment for a long period of time. Whereas we expect to bring that down and have that over a much shorter period of time going forward. And again, as I said earlier, in terms of interest cover and looking at those sort of ratios, you know, our weighted average cost of capital is still in the single digits. We would expect that to also be the case going forward as we see the maturation of.

We've used equity it's been long lead items, and we've had a lot of investment for a long period of time, whereas.

We expect to bring that down and how 'bout Arthur much shorter period of time going forward and again as I said earlier in terms of interest cover and looking at those sort of ratios our weighted average cost of capital is still in the single digits.

We would expect that to also be the case going forward as we see the maturity of the.

you know, of the debt market and the ability for us to have debt against those.

The debt markets and the ability for us to have that against those items. So that's how we're thinking about it it's a very prudent approach.

So that's how we're thinking about it and it's a very prudent approach within bounds of both forward looking and backward looking EBITDA level.

Within a balance of both forward looking backward looking EBITDA levels.

Great. And a follow up question to that, you know, this comes from Darren of Tahi at Roth. Do you feel like you have ample financing options to complete phase one of Helios? And you just talked about debt, but how much of the strategy involves selling a Bitcoin on a monthly basis? Maybe you can go into that a little in a little more detail.

Great and a follow up question to that this.

This comes from Darren a tiny at Ross.

Do you feel like you have ample financing options to complete phase one of Helios and you just talked about that but how much of the strategy involves selling a bitcoin on a monthly basis. Maybe you can go into that in a little more detail yeah, absolutely. Yes, we do feel that we have a number of different options available to us.

Yeah, so absolutely, yes, we do feel that we have a number of different options available to us. We have machines which are unencumbered, which will be delivered.

Have machines, which are unencumbered, which will be delivered in the second half of Q3.

second half of Q3, and so we have machines there that we would be able to obtain financing against. There is still some infrastructure which we could obtain finance against as well. And we have really good relationships. So we have relationships with, you know, first of all, we've got current relationships with Nighting and Galaxy as some of the biggest lenders in the crypto space at the moment. And then we also have relationships with other, you know, more traditional sector, banks, et cetera, which we're also exploring. So at the moment, you know, we have seen a tightening of the market. That is absolutely true. But what that has meant really is that.

And so we have machines that that we would be able to.

Financing against there is still some infrastructure, which we can obtain finance against as well and we have really good relationships. So we have relationships with first of all we've got current relationships with nitrogen galaxy as some of the biggest lenses in the crypto space.

And then we also have relationships with all the more traditional sector Bonks etcetera, which we're also exploring so at the moment.

<unk> seen a tightening of the market.

It is absolutely true.

What that has meant really is that more new entrants to the market finding it much more difficult to find debt, whereas those who've got a proven track record as we have.

more, you know, newer entrants to the market are finding it much more difficult to find depth.

Whereas those who've got a proven track record, as we have, are able to provide the due diligence requirements that are necessary, et cetera. So we're finding that ourselves, we have options and we have optionality, you know, in terms of the debt market.

Are able to provide the due diligence requirements that are necessary etcetera. So we are finding ourselves we have options and we have optionality.

In terms of the debt markets.

In terms of selling Bitcoin, again, we have strategy around selling our Bitcoin and when it is, when it's obviously a good time, when it's a bad time, and we look at that and we can pull back and accelerate that as needs be. We're in a very healthy position at the moment in terms of our hodl, how much of our hodl is, you know, unencumbered or is collateralized against loan, et cetera, and we're very comfortable with our position today. So in terms of filling that gap for the 50, you know, the 50 million that we talked about to build out the rest of phase one, we're well positioned. And of course, every day we mine more and more Bitcoin.

In terms of southern Bitcoin again, we have a strategy around selling a bitcoin.

And when is when you don't see a per ton when it's about time.

We look at that and we can pull back and accelerate that as these big we're in a very healthy position at the moment in terms of our huddle, how much of a hurdle is.

Encumbered, our Scotts rise against loan et cetera, and we're very comfortable with our position today. So in terms of filling that gap to the $50 million to $60 million that we talked about to build out the rest of the phase one we're well positioned and of course every day, we mined more in multi client.

And so that position is.

Improves with everyday that passes.

Yeah.

Great. Thanks, Alex. Peter, our next question comes from Joe Vafi at Canaccord. Congrats on energizing Helios. It might be early, but have you begun using immersion there yet? And if yes, have you upped clock speeds? And any other comments on what you have learned there since energizing? Hey, Joe, thanks for the

Great. Thanks, Alex Peter Our next question comes from Joe <unk> at Canaccord, Congrats on energizing Helios it might be early but have you begun using immersion there yet and if yes have you up clock speeds and any other comments on what you've learned there since energizing.

Hey, Joe Thanks for the question.

So.

Yeah, Helios is entirely an immersion facility, so if we're mining at all at Helios, we are using immersion.

Yes.

Helios is entirely in emerging facility. So if we were if were.

And mining at all at Helios, we are using immersion. So yes, we have started using immersion.

We upped clock speeds, yet we are ramping up operations.

Sure everything is working properly we've done some we've done some overclock in testing, but we are not over clocking at scale, yet we want to make sure that everything's.

Awesome and working properly.

So once we have more kind of data on.

<unk>.

Everything what they overclock in systems.

That's functioning well.

We will update the market.

In terms of other comments on what we've learned since energizing.

The one thing I think I've learned is that

The one thing I think I've learned is that.

How you build the team on the ground for operations is really important and we've done an incredible job of building a team on the ground our facility manager their lane has a culture of.

How you build a team on the ground for operations is really important. And we've done an incredible job of building a team on the ground. Our facility manager, there Lane, has a culture of collaboration and teamwork and ownership. So, we're working with new technology. We're opening this new facility.

Collaboration and teamwork and ownership so we're.

We're working with new technology, where we're opening a new facility.

<unk>.

the team on the ground already feels a sense of ownership of that space. And that's incredible that that's happened in that short of time. So, the HR folks that built that team, the tech culture that Perry and his team have built and kind of brought to them. Because you obviously have a big moment like we had on May 5th where we energized and everyone's been working really hard.

The team on the ground already feels a sense of ownership of that space and Thats incredible, but that's happened in that short of time.

So.

The HR folks that built that team the tech culture that Perry and his team have built in and kind of.

Brought to them because you obviously have a big moment like we had on may 5th where we energized and everyone's been working really hard.

And then, you know, Perry doesn't live in, in Dickens County. He goes back to Ottawa and he's managing everything remotely.

And then Perry doesn't living in tickets County, he goes back to Ottawa, and he's managing everything remotely and jaw.

is also not there. And so you're kind of handing it over to your local staff and now they're running the show. Obviously Perry's managing things remotely and can do a lot from far away, but the sense of ownership that the team has on the ground is amazing. And that's the one thing that I'm most.

It is also not there and so youre kind of handing it over to your local staff.

And now they are running the show, obviously Perry's managing things remotely and can do a lot from far away, but the sense of ownership that the team has on the ground is amazing.

That's the one thing that I'm, most thrilled about especially when you're working with new technology, because there are bumps things do happen and Youre always troubleshooting.

thrilled about, especially when you're working with new technology, because there are bumps, you know, things do happen, and you're always troubleshooting. And I mean, you guys all everyone uses technology these days, you know, there's there's always things to fix and to optimize. And so the team on the ground is doing is doing an amazing job. And so ultimately, that's why we're going to be successful. I mean, you know, if you'd come Joe to our

And I think you guys. All everyone uses technology. These days you know theres always things to fix it to optimize.

And so the team on the ground. It has done is doing an amazing job and so ultimately that's why we're going to be successful.

If it could come Joe to our opening.

event. I mean, my message was, yes, we need these three things, you know, machines, power, and capital. But ultimately, we need people. And this is a people business. And we're only going to be as good as the team that we have. And one of the advantages I think that we have as a team is we truly have an amazing team. So that's, that's, I guess, the one thing that I've

I mean, my message was yes, we need these three things you know machines power and capital, but ultimately we need people and this is a people business and we're only going to be as good as the team that we have.

And one of the advantages I think that we have as a team is we truly have an amazing team.

So that's I guess, the one thing that I have.

I've learned.

Thanks, Peter. Our next question coming from the live Q&A is from Thanastis S. As Helios is immersion-cooled, can you explain the procedure for receiving the mining rigs to converting them to immersion-cooled setups? How long, on average, does that take from arrival in Helios to installment?

Thanks Peter.

Our next question coming from the live Q&A is from the masses S. As Helios is emerging cooled can you explain the procedure for receiving the mining rigs to converting them to immersion called setups, how long on average does that take from arrival in Helios to installment.

Alright, thanks to the masses.

All right, thanks, Donesis. And hey, how's it going? You always come and ask good questions, so thanks for asking another one. So the process for receiving minors and putting them in immersion is.

Hey, How's it going you always come and ask a good question. So thanks for asking another one.

So the process for receiving miners and putting them in immersion.

Is is a little more complicated than if you were just getting them normally and putting them on the shelf, but it's not it's not.

It's a little more complicated than if you're just getting them normally and putting them on the shelf, but it's not it's not it's not that complicated. We have a shipping and receiving area machines coming in on on on pallets.

It's not that complicated.

We have a shipping receiving area machines coming.

On pallets, we store them and then when they are ready to be installed we take them, we unbox and perhaps then we prep them by taking off the fans.

We store them, and then when they're ready to be installed, we take them, we unbox them, prep them. We prep them by taking off the fans. And then we actually have a team called the Dunk Team, D-U-N-K, the Dunk Team. And part of that culture that we already have at Helios, they then take them and dunk them into the fluid. And then once an entire system is ready, so the whole facility is broken down into four megawatt pods.

And then we.

Actually I have a team called the dunk team.

The U K the dunk team.

And they are part of that culture that we've already have.

Helios day, then take them and dumped them into.

The fluid.

And then once an entire system is ready so the whole facility is broken down into four megawatt pods.

And so, you can do the math, there's 200 megawatts. So, once each system is filled with miners, then we power on that pot, that 4 megawatts.

And so you can do the math, there's there's 200 megawatts.

So.

Once each system is filled with miners that we power on that part that a four megawatt system.

So, it's a fairly, you know, the team has already developed the process and the system, but essentially that's how it works. And then obviously once we have our own custom miner, we won't need to remove the fans because we won't need fans on an immersion miner. They will come without fans.

So it's a fairly the team is already developed the process in the system, but essentially that's that's how that's how it works and then obviously once we have our own custom.

Custom minor we won't need to remove the fans because we won't need fans on our emerging minor they will come whenever fans.

Great. Thanks, Peter our next question what.

What is the criteria for Argo Labs' involvement in crypto projects?

Is the criteria for Argo labs involvement in crypto projects.

Alright.

So, this is a Sebastian and his team, you know, are constantly evaluating projects. Some of the criteria that they look at are.

So this is sebastian and his team.

Constantly evaluating project some of the criteria that they look at our.

the token utility, how useful is that particular token, the track record of the team that is building out the project, the tokenomics of the project.

The token utility how useful.

Is that particular.

Token.

Track record of the team that is building out the project.

The token token omics of the project.

the overall quality of the blockchain and the network that it's built on. You know, is it scalable, speed, decentralization, et cetera. And then the community around the project. And that's, that's a key piece. You know, how active is the community around the project? How engaged are they, et cetera.

The overall quality of the blockchain and the network that is built on.

Is it scalable.

Speed decentralization et cetera.

And then the community around the project and that's a key piece how active is the community around the project how engaged are they etcetera etcetera, but in terms of those early stage projects that they're looking at those are kind of the basic criteria that theyre considering.

But, but in terms of those early stage projects that they're looking at, those are kind of the basic criteria that there.

And most of the time they have direct contact pretty much all of the time with the team. So there's a conversation with the team, and even going back to Polkadot, like when we originally invested in Polkadot, we had a conversation with a couple of the guys from the Polkadot team multiple times back in 2019. That's still a process now. We don't just deploy into projects that we don't know the team.

And most of the time they have direct contact pretty.

Pretty much all the time with the team so theres a conversation with the team.

And.

And.

Even going back to polka dot like we when we originally invested in polka dots like we had a conversation with with a couple of other guys from the polka Dot team multiple times back in 2019, that's still a process now we don't just deploy into into projects that we don't when we.

We don't know the team.

Great. Thanks.

Our next question comes from John S. in the chat. It was previously forecast that hash rate would be at 1.7 exa-hash by the end of the first quarter, but the actual hash rate was 1.6 exa-hash, which is where we are now. What's the reason for this reduction, and when will the shortfall be resolved?

Our next question comes from John S and the chat. It was previously forecast that hash rate would be at one seven extra cash by the end of the first quarter, but the actual cash rate was one six ex ash, which is where we are now.

Why why what's the reason for this reduction and when will the shortfall will be resolved.

Yeah, thanks, John . Good question. So the difference is back in 2021, we put in two orders for machines. One of those orders was with a company called Minerva. And it was for that difference, 100 petahash, it was 800 machines from Minerva.

Yeah. Thanks, John Good question. So the difference is back in.

2021, we put in to orders for machines.

One of those are orders with was with a company called Minerva.

And it was for that difference 100 pet a harsh is 800 machines for Minerva.

You know, other people put in larger orders, we thought we would put a small order in, a test order, those machines were supposed to come, you know, last summer, July , June , July , they got pushed back, they got pushed back.

Other people put in larger orders.

We thought we would put a small order in test orders.

Since we are supposed to come last.

Last summer.

July June July they've got pushed back I got pushed back.

And ultimately Minerva was unable to deliver on those machines and so we requested and received a full refund.

And ultimately Minerva was unable to deliver on those machines. And so we requested to receive the full refund from them. And so we've taken those funds and are deploying them into other mining machines. Um, but that's the difference. And so the shortfall, you know, is, is in terms of when it will be resolved, it's going to be resolved as we bring, you know, the other machines online, the, the, the Bitmain machines that we've ordered, et cetera, et cetera. Um, but you know, it wasn't a huge amount. Um, and we feel like.

From them and so we've taken those funds and are deploying them into other mining machines.

But that's the difference and so the shortfall.

Is is in terms of when it will be resolved, it's going to be resolved as we bring the other machines online. The deep debate may missions that we bordered et cetera et cetera.

It wasn't a huge amount and we feel like.

It was, it was, you know, when you're looking at new machines from new companies.

It was it was when you are looking at new <unk>.

Machines from new companies.

And Minerva is a good example. They had good specs, they had good price. So we thought it was worth putting a small order with them to test. It didn't work out. We got the refund. So, you know, no harm, no foul, ultimately. But that's ultimately why we wanna be able to have, again, more control over our own rig production. And that's why this relationship with Intel is so important.

And whenever it's a good example, they.

They had good spec they had good price. So we thought it was worth putting a small order with them to test.

It didn't work out we got a refund so.

No harm no foul ultimately.

But that's ultimately why we wanted to be able to have again more control over our own.

Production and Thats why this relationship with Intel is so important.

Okay. Thanks. Our next question is for Alex and this comes from the live chat as well with the continued maturation of that market why has the second no I dig loan been done at a significantly higher rate, 12% per year versus the first night big loan done at only 825% per year.

Thanks. Our next question is for Alex, and this comes from the live chat as well. With the continued maturation of debt markets, why has the second NYDIG loan been done at a significantly higher rate, 12 percent per year, versus the first NYDIG loan done at only 8.25

That's a good question, and it shows that people really are reading our RNSs, which is nice. Nice to see. The simple answer is that it's on different items. So when the debt market is looking at assets that they will collateralize loans against, they look at how easily, you know, if there was a worse scenario, how easily are they able to then sell on those assets in order to make back the money that they've lent out. Now, the

It's a good question.

And it shows that people really are reading our rns, this which is nice nice to see.

It is simple the simple answer is that it's on different items. So the when did that market is looking assets.

And that they will collateralized loans against they look at how easily.

It was worth from scenario, how easily or they're able to then sell them. There is I'll say small to make back the money that they've lent out.

Now the infrastructure as is.

You know, as Peter said earlier, high power transformers, medium power transformers, et cetera, et cetera. So those those are assets which are easily transferable to another technology, you know, another sector, et cetera. And therefore, the risk.

<unk> said earlier high power Transformers medium power Transformers et cetera, et cetera. So those those are assets, which are easily transferable to another technology into the sector et cetera, and therefore, the risk around those assets is much less and therefore, the interest that we have to pay around those assets is much less when you look at.

round those assets is much less and therefore the interest that we have to pay around those assets is much less. When you look at Bitcoin mining machines, Bitcoin mining machines have one use and one purpose and therefore the risk around them is they would have to be sold to basically another Bitcoin miner or the debtor.

Bitcoin mining machines bitcoin mining machines have one use of one purpose.

Therefore, the risk around them as they would have to be sold to basically I know the bitcoin miner or the better.

would have to take on those machines themselves, and therefore it attracts a higher interest rate. So the simple answer is that payoff between risk and reward and the risk and the interest rate there. So the second loan was against the machines, which have a higher risk attached to them than the infrastructure, which was at a lower rate.

Would have to take on those machines themselves and therefore their trucks are higher.

Higher interest rates. So that's the simple the simple answer is it's the payoff between risk and reward.

On the risk and the interest rate that so the second loan was against the machines, which.

Higher risk attached to them than the infrastructure, which was at a lower rate.

Okay.

Thanks, Alex. Peter, our next question is from Shigar S. from the live Q&A, what is your main focus after the Helios facility?

Thanks, Alex.

Peter Our next question is from Sugar S from the live Q&A what is your main focus after the Helios facility.

Thanks, Shigar, for the question. So our focus really for 2022 is to complete the build out of phase one of Helios. That's the initial 200 megawatts. Then we've got, as I said, the next 600 megawatts, and that's what we're calling phase two. And, you know, that's.

Thanks <unk> for the question.

So our focus really for 2022 is to complete the build out of phase one of Helios.

The initial 200 megawatts.

And then we've got as I said, the next 600 megawatts and Thats what were calling phase two.

And that's.

got that interconnection agreement, we've got some of the long lead items ordered. So the focus for us in 2023 and into 2020, you know, the first part of 2024 is that additional 600 megawatt capacity.

We've got that interconnection agreement, we've got some of the long lead items ordered so the focus for us in 2023 and into 2020.

First part of 'twenty 'twenty four is that additional 600 megawatt capacity.

above and beyond that, you know, in terms of phase three for the company.

Above and beyond that in terms of phase three for the company.

We haven't put out publicly what.

put out publicly what our thinking is for phase three. We are working behind the scenes to think the next step, because we always wanna be a few years ahead.

What are what our thinking is for phase III.

Our working behind the scenes to two two to think.

The next step because we always want to be a few years ahead to when we're ready to announce that we will but for now really the focus is on Helios phase one.

So when we're ready to announce that we will, but for now, really the focus is on Helios phase one.

and then Helios Phase 2. Obviously, we are big believers in not just Bitcoin mining and cryptocurrency mining, but in the space in general. That's why we have Argo Labs as a

And then Helios phase two obviously, we are big believers in not just between mining and cryptocurrency mining, but in the space in general that's why we have Argo labs.

as a foothold into the world of Web 3.0. But we're ambitious, Shigar. We, you know, we're, we.

As a as a foothold into the world of web three point out.

But we're we're ambitious sugar.

Sure.

We want to continue to grow as a company.

want to continue to grow as a company, you know, not just as a minor. So we're thinking big picture long term, but haven't announced that vision yet to the market.

Not just as a minor so were thinking big picture long term, but haven't announced that vision yet to the market.

Great. Our next question, Peter, is from Chris Brenler at DA Davidson. Does the Intel rig design require significant CapEx or R&D expense?

Our next question Peter is from Chris <unk> at D. A Davidson does the Intel rig design requires significant capex or R&D expense.

So thanks, Chris, for the question. So the design itself does not require significant CapEx or R&D expense in terms of the design, the testing, et cetera, et cetera. But as with other rigs, it's the order themselves that are CapEx intensive. Mostly it's the chips that is the biggest expense. Then the rest of the machines is a fraction of that.

So thanks, Chris for the question. So the design itself does not require significant capex.

Our R&D expense in terms of the design and testing et cetera et cetera.

But as with other rigs is the order themselves that are capex intensive mostly its the chips that is the biggest expense.

And then the rest of the machines.

The machines is a fraction of that.

<unk>.

Overall, the total cost on a per terahash basis, we anticipate being significantly less than buying off the shelf.

Overall, the total cost on a on a per <unk> basis.

We anticipate being significantly less than buying off the shelf miners, but it's not like we're dumping.

But it's not like we're dumping a ton of cash into R&D, which is, I think, kind of what you're getting at.

A ton of cash into R&D, which is I think kind of what youre getting out there.

Thanks, Peter. And to follow up on the subject of Intel, from Suthans Zukumar at Stifel, can you give an update on the Intel-based rig design and development process? Are you still confident about having those rigs ready to deploy by the end of the year?

Thanks, Peter and to follow up on the <unk> on the subject of Intel from Sudan, Zucker Morris Stifel can you give an update on the Intel based rig design and development process or are you still confident about having those rigs ready to deploy by the end of the year.

Yes sure.

Yeah, sure. The process is going well. I, you know, when we.

The process is going well.

Aye.

When we're ready to announce exactly.

exactly, you know, the update on the specs and all of that. And obviously, some of it is outside of our control because we're working with Intel and they have their own.

The update on the specs and all of that and obviously some of it is outside of our control because we're working with Intel and they have their own.

you know, processes of disclosure.

<unk> processes of disclosure.

But when we are ready to get the full update on specs and costs, we'll be excited.

But when we are ready to get the full update on specs and costs.

We'll be excited to do that and happy to share that.

do that and happy to share that. To answer your second question, in terms of having these Greggs ready to be

To answer your second question in terms of having to you Greg ready to be deployed by the end of the year. The expectation is yes, we will have those to be ready to be deployed by the end of year and we will update the market as we go in terms of that.

Deployed by the end of the year. The expectation is yes, we will have those

to be ready to be deployed by the end of the year. And we'll update the market as we go in terms of the steps.

Yeah.

The steps along the way.

Great. Our next question from the live chat. We've gotten this a few times both from John S. and cigar s. when will the board get a full time chairman.

Great.

Our next question from the live chat we've done this a few times both from John S and sugar S. When will the board get a full time chairman.

Yeah, it's a good question. We've been or fair question. I should say we've been working on strengthening the board as I talked about in the presentation. You know, we just have most recently added we're gov. We also added to board members last summer Maria umbrella and Sarah gal.

Yeah, It's a good question.

Ben or fair question I should say, we've been working on strengthening the board is as I talked about in the presentation.

We just have most recently added for Gov.

We also added two board members last summer Maria Perrella and Sarah Gao.

I'm really happy with where the board is at. They're very engaged, very involved, adding a ton of value, so that's great. The board itself is continuing to work on the chairman question, the chairman process, and working to strengthen the board. We do recognize and we want a chairman.

I'm really happy with where the board is at they are very engaged very involved adding a ton of value. So that's great.

Board itself is continuing to work on the chairman question Chairman process.

And are working to strengthen the board we do recognize that.

And we want a chairman.

So when we are, again, ready to update the market on who that will be, we'll make that announcement, but that process is ongoing.

So when we are again ready to update the market on a on on who that will be we'll make that announcement, but that process is ongoing.

Right. Alex, one of the questions for you just came in from the live chat from Jew L. Does your cost of Bitcoin that you talked about, so the mining margin, include all overhead of operating costs, amortization, depreciation, etc.?

Great.

Question for you just came in from the live chat from June <unk>.

Does your cost of Bitcoin you talked about some mining margin include all overhead of operating costs amortization depreciation et cetera.

No. It's simply includes the power costs.

No, it simply includes the power costs. So, once you plug the machine in, the only real cost line that matters is the power cost, or if you're hosting it, then the hosting cost. That is what these machines need. I mean, in terms of, if you look at our facility, for example, the Helios facility, in terms of techs and people on the ground, there's very few people on the ground, you're talking less than 30.

Once you flip the machine in the.

The overwriting the only real.

Cost line that matters is the power cost auryxia hosting it none the hosting cost.

That is what these machines need I mean in terms of if you look at our facility for example, the Helios facility in terms of tax and people on the ground. There's very few people on the ground youre talking less than 30.

And so actually the on cost, if you like, of plugging in the love the minor is very, very, very, very insane.

So actually the on cost if you like of plugging in the North of mine is very very very very insignificant.

So when we look at the cost of mining and the production cost per Bitcoin, we are simply looking at the power cost that goes into that mining.

So when we look at the cost of mining in the production cost per bit corn, we are simply looking at the power cost that goes into that machine.

Great. Another question. This one comes from John Peterson at Jefferies. When the price of Bitcoin recovers to peak levels, would you continue to sell Bitcoin to fund growth or will you go back to a hodl strategy?

Great another question.

This one comes from Jon Petersen at Jefferies.

When the price of Bitcoin recovers to peak levels would you continue to sell bitcoin to fund growth or will you go back to our Holdco strategy.

Alex you want to take that one you want me to take it that's fine yes.

I think at the moment our strategy is as we've described and it is to look at

At the moment, our our strategy is as we've described on is to is to look at.

Debt and also at selling Bitcoin, you know, obviously if you know if Bitcoin recovers significantly Our share price recovers significantly that would be something that we would look at but that would not be that's not the near-term goal And that's certainly not

And also Upselling bitcoin.

Obviously, if corn.

I'm recover significantly our.

Our share price recover significantly that would be something that we would look at but that would not be that's not the near term goal and that's certainly not just the short term structure. So yes. It used to continue to sell bitcoin and focus on that market no equity at the moment.

short term strategy. So yes, it is to continue to sell Bitcoin and focus on debt markets, not equity.

And I'll just add a little bit to this, John . I think it's a good question. You know, if you look at the history of the company, we've, we've, you know, if the, if this is the continuum, this is selling Bitcoin, this is never selling Bitcoin, we've been to both extremes and now we're in the middle and we're pretty comfortable in the middle. Like I actually think that it's the right place to be. I think.

And I'll, just add a little bit to this John I think it's a good question.

Look at the history of the company.

This is the continuum. This is selling bitcoin. This is never selling bitcoin, we've been to both extremes and now we're in the middle and we're pretty comfortable in the middle like I actually think that it's the right place to be I think.

HODL is great to have. It's a great piece to have in the balance sheet. It's something you can do a lot with, whether you're deploying some of it into Argo Labs, whether you're using some of it to borrow against, whether it's just appreciating. That's fine. But ultimately, at the end of the day, we still live in a fiat-dominated world, and you're going to need fiat for operations if you ever do a dividend, etc. You want to have a war chest of fiat as well as a war chest of Bitcoin.

Hold is great to have it's a great piece to have in the balance sheet and it's something you can do a lot with.

You did point to some of it into are the labs, where do you see some of it.

Borrow against.

Whether it's just appreciating those are that's fine, but ultimately at the end of the day, we still live in a in a Fiat dominated world and Youre going to need Fiat for for operations. If you ever do a dividend et cetera. Like you you want to have a war chest of Fiat as well as our war chest of bitcoin.

So I'm quite happy with where we are in the middle. And, you know, it might fluctuate a little bit this way or that way, but I don't think we'll ever go back to either.

So I'm quite happy with where we are in the middle.

And.

It might fluctuate a little bit this way or that way, but I don't think we'll ever go back to either extreme.

Thanks, Peter. Our next question comes from Anthony Power at Compass Mining. With 29 listed companies currently in North America, do you see this number getting bigger or do you see any M&A activity or consolidation? At what point do you believe the big energy companies ramp up their interest and investment in this space? Are there any opportunities to partner?

Thanks, Peter next question comes from Anthony Power Compass mining with 29 listed companies currently in North America do you see this number getting bigger or do you see any M&A activity or consolidation.

At what point do you believe the big energy companies ramp up their interest and investment in this space are there any opportunities to partner.

Yes, so I think two questions in there Anthony good question.

Yeah, so I think two questions in there, Anthony, good questions. Yeah, it's hard to believe 29 listed companies. It's it's it's happened pretty quickly. I remember when there was like five of us.

It's hard to believe 29 listed company that it's.

It's happened pretty quickly.

I remember when there were like five of us.

So do I see M&A activity.

So do I see M&A activity, you know, and particularly with kind of the market we're in right now? I think there's always people out there evaluating deals. I would say as a whole, as a space, there will likely probably be some M&A activity in the second half of this year, given where, you know, market, where the market is, and some consolidation. I mean, it's a lot of lift to come.

Particularly with kind of the market. We're in right now I think there's always people out there evaluating deals I would say.

As a whole as a space.

There will likely probably be some M&A activity in the second half of this year, given where market where the market is.

And some consolidation and it's it's a it's a lot of listed companies.

In terms of energy companies ramp up their investment and interest, I think that's happening, but I think they move slowly. So, and, you know, I think.

In terms of energy companies ramp up their investment and.

And interest I think that's happening, but I think they move slowly so.

And I think.

They it's still probably a couple years away, but I know that they are looking at it. They've got skunkworks happening. There's there's projects happening, but in terms of really ramping up. I think it's we're probably into the next, you know, full cycle before we see that happen in a big way. And in terms of opportunities to partner. Yeah, look, I think you're seeing

They it's it's still probably a couple of years away, but I know that they are looking at it they've got skunk works happening, there's there's projects happening, but in terms of really ramping up.

I think it's we're probably into the next.

Full cycle before we see that happen in a big way.

And in terms of opportunities partner, Yeah look I think youre seeing people get closer to rigs and people to get closer to power, we're getting closer to rigs with the relationship with Intel.

get closer to rigs and people get closer to power. We're getting closer to rigs with the relationship with Intel, getting closer to chips with the relationship to Intel. I think that's going to start to happen on the power side.

Getting closer to chips with the relationship the Intel I think that's going to start to happen on the power side.

We're fortunate that we're in a Texas market where we can really get low cost power using the grid. That's not the case for everywhere in North America.

We're fortunate that we're in in the Texas market, where we can really get low cost power using the grid that's not the case for for everywhere in North America.

You do have to have relationships with utilities or power generators. But ultimately, this space is heading in that direction.

You do have to have relationships with utilities or power generators.

But ultimately this this space is heading in that direction for sure.

All right, Peter, we're coming up on the top of the hour, but we've got two two last just quick questions for you. The first one from the live chat from Kevin D with the core machine swap. Is it a machine for machine swap? Or is it based on total care?

Great Peter we're coming up on the top of the hour, but we've got to to US just quick questions for you first one from the live chat from Kevin Dede with the core machine swap is it a machine for machine swap or is it based on total terror house.

Yeah, thanks, Kevin. It's total tera hash. Pretty much when you're always doing machines, it's based on on tera hash.

Yeah. Thanks, Kevin It's total terror hash.

Pretty much when you're always doing machines, it's based on Ontario.

Great. And then our last question, Peter, also from the live chat. This is from both policy and Kevin are given the shortage of power. The other companies are facing. Is there an opportunity for us to host third party rigs at Helio?

Great and then our last question Peter also from the live chat. This is from both policy and Kevin are given the shortage of power. The other companies are facing is there an opportunity for us to host third party rigs that Helios.

I think in the short term, it would be challenging for us, given our commitments to ourselves, with our Bitmain machines coming in, and with plans for Intel in the second half of this year, the Intel rates in the second half of this year. Looking into 2023, 2024, it's something that we're always thinking about, is there an opportunity for us to diversify our revenue a little bit and have some hosting relationships? I would say unlikely for 2022, maybe for 2022.

I think in the short term.

It would be challenging for us given our commitments to ourselves with our machines.

The machines coming in and with plans for it until the second half of this year. The Intel raised the second half of this year looking into 2023 2024.

It's something that we were always thinking about is there an opportunity for us to diversify our revenue a little bit and have some hosting relationships.

So I would say unlikely for 2022.

Maybe for 2023.

Tom, thank you very much indeed for managing that Q&A and obviously just given the considerable attendance you've got on today's call it's not possible to take everybody's question but thank you to everybody that did submit questions and we'll make those available to the company post today's call as well. Peter, I'm shortly going to redirect investors as usual to give you their thoughts, their expectations and their feedback but before doing so I wondered if I may just ask you for a few closing comments and then I'll conclude.

That's great Tom. Thank you very much at the information that Q&A and I don't know if you've just given the considerable tenants you'll go on today's call. It's not possible to take everybody's question, but thank you to everybody that did submit questions and we'll make those available to the company posted as cool as well.

Pizza I'm sure, they're going to be direct investors as usual to give you their thoughts their expectations and their feedback, but before doing so I wondered if I may just ask you for a few closing comments and then I'll conclude the meeting.

Great. All right. Thank you, Mark. Well, thanks, everyone, for attending. It seems like we're doing these more and more frequently, which is part of our commitment to transparency, as well as our commitment to, now that we're NASDAQ listed, we're doing earnings. Not something we need to do as a UK headquartered, primarily listed company, but we're happy to be doing these earnings calls. And

Great Alright, Thank you Mark.

Everyone for attending it.

It seems like we're doing these more and more frequently which is part.

Part of our commitment to transparency as well as our commitment to.

Now that we're NASDAQ listed we're doing earnings.

Not something we need to do as a U K kind of.

Headquartered primarily listed company, but we're happy to be doing these earnings calls.

And.

terms of where we're at, I'm incredibly pleased with the work that the team has done to get Helios up and off the ground, and excited about the second half of this year. I think, you know, it'd be nice if the price of Bitcoin could help us along a little bit. But ultimately, for us, it's really about, you know, head down, executing, under-promising, over-delivering. And I think if we do that, we're going to be successful in the long term.

Terms of where we're at.

I'm incredibly pleased with the work that the team has done to get us up and off the ground and.

Excited about the second half of this year I think.

It would be nice if the price of bitcoin it could help us along a little bit, but ultimately for us, it's really about head down executing.

Under promising over delivering and then and I think if we do that we're going to be successful in a long time.

Peter, Alex, Tom, thank you very much indeed for updating investors this afternoon or this morning in your case Peter. 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 management team can better understand your views and expectations. This will only take a few moments to complete but I'm sure will be greatly valued by the company. On behalf of the management team of Argo Blockchain PLC we'd like to thank you for attending today's presentation and may I wish you all a very

That's great Pizza, Alex Tom. Thank you very much indeed for updating investors. This afternoon. This morning in your case pizza could I. Please ask investors not to close this session is when they'll automatically retirement you for the opportunity to provide your feedback in order to the management team can better understand youll fusing expectations. Just wanted to take a few moments to complete but I'm sure we'll be great be funded by the company on behalf of the management.

Team of Argo Blockchain plc would like to thank you for attending today's presentation and biofuel.