Q2 2024 Bitfarms Ltd Earnings Call

Unknown Executive: Before we begin, please note this call is being webcast with an accompanying presentation. This forward-looking information is based on certain assumptions and is subject to risks and uncertainties, and I invite you to consult Bitfarms' MD&A for a complete list. Please note that references will be made to certain measures not recognized under IFRS and therefore may not be comparable to similar measures presented by other companies. We invite listeners to refer to today's press release and our MD&A for definitions of the aforementioned non-IFRS measures and their reconciliations to IFRS measures.

Operator: Before we begin, please note this call is being webcast with an accompanying presentation. Today's press release and our presentation can be accessed at our website, Bitfarms.com under the investor section. Turning to slide two, I'd like to remind everyone that certain forward-looking statements will be made during the call and that future results could differ from those implied in this statement. The forward looking information is based on certain assumptions and it's subject to risks and uncertainties. And I invite you to consult Bitfarms MD&A for a complete list. Please note that references will be made to certain measures not recognized under IFRS and therefore may not be comparable to similar measures presented by other companies.

Unknown Executive: Before we begin, please note this call is being webcast with an accompanying presentation. Today's press release and our presentation can be accessed on our website, bitfarms.com, under the investor section. Turning to slide 2, I'd like to remind everyone that certain forward-looking statements will be made during the call and that future results could differ from those implied in this statement. Such forward-looking information is based on certain assumptions and is subject to risks and uncertainties, and I invite you to consult Bitfarms' MD&A for a complete list.

Before we begin please note this call is being webcast with an accompanying presentation todays press release and our presentation can be accessed at our website at farm Dot com under the investors section.

Turning to slide two I'd like to remind everyone that certain forward looking statements will be made during the call and that future results could differ from those implied in the statements.

The forward looking information is based on certain assumptions and are subject to risks and uncertainties and I invite you to consult the farms MD&A for a complete list.

Please note that references will be made to certain measures not recognized under ifr and therefore may not be comparable to similar measures presented by other companies.

Unknown Executive: Please note that references will be made to certain measures not recognized under IFRS and therefore may not be comparable to similar measures presented by other companies. We invite listeners to refer to today's press release and our MD&A for definitions of the aforementioned non-IFRS measures and their reconciliations to IFRS measures. Please note that all financial references are denominated in U.S. dollars unless otherwise noted. Importantly, I would like to highlight that we are unable to comment on the ongoing legal process with RIOT platforms beyond what has already been disclosed.

Operator: We invite listeners to refer to today's press release and our MD&A for definitions of the aforementioned non-IFRS measures and their reconciliation to IFRS measures. Please note that all financial references are denominated in US dollars unless otherwise noted.

We invite listeners to refer to today's press release, and our MD&A for definition of the aforementioned non I F RF measures and their reconciliation to ifr if measures.

Please note that all financial references are denominated in U S dollars unless otherwise noted.

Operator: Importantly, I would like to highlight that we are unable to comment on the ongoing legal process with Riot platforms outside of what has already been disclosed.

Importantly, I would like to highlight that we are unable to comment on the ongoing legal process with riot platforms outside of what has already been disclosed.

Operator: I would also like to add that we will be attending the following upcoming equity conferences: HC Wainwright's 26th Annual Global Investment Conference, taking place in New York City from September 9th to the 11th, and the AIM Set in Dubai, taking place from October 21st to the 22nd. If anyone would like to meet with us on the dates, please contact me or a sales representative from the firm.

Unknown Executive: I would also like to add that we will be attending the following upcoming equity conferences: H.C. Wainwright's 26th Annual Global Investment Conference taking place in New York City from September 9th to the 11th, and the AIMS conference in Dubai taking place from October 21st to the 22nd. If anyone would like to meet with us on those dates, please contact me or a sales representative from the firm. Now, turning to slide three, it is my pleasure to turn the call over to Ben Gagnon, Chief Executive Officer. Ben, please go ahead.

I'd also like to add that we will be attending the following upcoming equity conferences.

H C Wainwright, 26th annual Global investment conference, taking place in New York City from September 9th to the 11th.

And the insight in Dubai, taking place on October 21st to the 22nd if anyone would like to meet with US under the date. Please contact me or sales representatives from the firm.

Tracy Krumme: Now, turning to slide three, it is my pleasure to turn the call over to Ben Danyan, Chief Executive Officer. Then, please go ahead.

Now turning to slide three it is my pleasure to turn the call over to Ben Gagnon, Chief Executive Officer, Ben. Please go ahead.

Ben Danyan: Thank you, Tracy, and thank you everyone for joining us today. I am so excited to have stepped up into the Chief Executive Officer role. This has been my personal ambition for the past several years, and it is truly an honor.

Ben Gagnon: Thank you Tracy and thank you everyone for joining us today.

Ben Gagnon: Thank you, Tracy, and thank you everyone for joining us today. I am so excited to have stepped up into the Chief Executive Officer role. This has been my personal ambition for the past several years, and it is truly an honor. As this is my first conference call as CEO, I would like to give a quick background on myself for those of you who may not know me. Fourteen years ago, I discovered Bitcoin, and nine years ago, I began working full-time in the mining industry. I started from the very bottom, investing every dollar I had to build and operate a mining facility in mainland China of my own design. Since then, I have been through multiple bull and bear markets.

Ben Gagnon: I am so excited to have stepped up into the Chief Executive Officer rule. This has been my personal ambition for the past several years and it is truly an honor.

Ben Danyan: As this is my first conference call, CEO, I would like to give a quick background on myself for those of you who may not know me. Fourteen years ago, I discovered Bitcoin. In nine years ago, I began working full-time in the mining industry. I started from the very bottom, investing every dollar I had to build and operate a mining facility in mainland China of my own design. Since then, I have been through multiple bull and bear markets, three have any talks, and have seen and been involved with every aspect of this industry, from the mining floor to the sea suite of one of the largest publicly traded mining companies globally.

Ben Gagnon: And this is my first conference call as CEO I would like to give a quick background on myself for those of you who may not know me.

Ben Gagnon: 14 years ago, I discover bitcoin and nine years ago I began working full time in the mining industry I started from the very bottom.

Unknown Executive: I started from the very bottom, investing every dollar I had to build and operate a mining facility in mainland China of my own design, from the mining floor to the C-suite of one of the largest publicly traded mining companies globally. I am a proof-of-work CEO. The transition into this new role has been smooth and well received among our team and external stakeholders, in addition to all of our key partners and many of our investors.

Ben Gagnon: Every dollar I had to build and operate a mining facility in mainland China of my own design.

Ben Gagnon: Since then I've been through multiple bull and bear markets three have any blocks and have seen and been involved with every aspect of this industry from the mining floor to the C suite of one of the largest publicly traded mining companies globally.

Ben Gagnon: 3Haven Epochs, and have seen and been involved with every aspect of this industry, from the mining floor to the C-suite of one of the largest publicly traded mining companies globally. I have been with Bitfarms for five years and, for the last three years, served as chief mining officer, where I oversaw mining operations and strategy and worked intimately with every department in the country. I am a proof-of-work CEO. And the transition into this new role has been smooth and well received by our team and external stakeholders. Turning to slide four.

Ben Danyan: I have been with Bitfarm for five years, and for the last three years served the company as Chief Mining Officer, where I oversaw mining operations and strategy, and worked intimately with every department in the company.

Ben Gagnon: I've been with it for five years and for the last three years served the company as Chief Marketing Officer, where I oversaw mining operations and strategy and work intimately with every department in the company.

Ben Danyan: I am a proof of work, CEO, and the transition into this new role has been smooth and well received among our team and external stakeholders.

Ben Gagnon: I am a proof of work CEO.

Ben Gagnon: And the transition into this new role has been smooth and well received among our team and external stakeholders.

Ben Danyan: Turning to slide four. Over the past 30 days since my appointment, I've set aside time to speak with every key employee of Bitfarm. In addition to all of our key partners and many of our investors.

Ben Gagnon: Turning to slide four.

Ben Gagnon: Over the past 30 days since my appointment I have set aside time to speak with every key employee groups. In addition to all of our key partners in many of our investors from these conversations and for my first months in the new role I would like to share the following key points.

Ben Gagnon: Over the past 30 days since my appointment, I've set aside time to speak with every key employee at Bitfarms, in addition to all of our key partners and many of our investors. From these conversations and from my first months in the new role, I would like to share the following key points. We are excellent builders and operators. Our team is highly skilled and passionate, but more importantly, they believe in the Bitfarms vision. From site teams through senior management, we are happy to stay up late and get up early in the morning to do the hard work that is necessary as a miner. It is a meritocracy.

Ben Danyan: From these conversations and from my first months in the new role, I would like to share the following key points. We are excellent builders and operators. leaders, our team is highly skilled and passionate, but more importantly, they believe in the Bitfarms vision. From site teams through senior management, we are happy to stay up late and get up early in the morning to do the hard work that is necessary as a minor. Bitfarms is a meritocracy, and a lot of our staff have risen through the ranks due to their proof of work. Everyone here is incredibly excited to be a part of building the new Bitfarms, and there is so much energy in the air right now that we could probably mine a block with that.

Unknown Executive: From these conversations and from my first months in the new role, I would like to share the following key points. From site teams through senior management, we are happy to stay up late and get up early in the morning to do the hard work that is necessary as a miner. It is a meritocracy.

Ben Gagnon: We are excellent builders and operators our team is highly skilled and passionate but more importantly, they believe in the bid farms vision from.

Ben Gagnon: From site teams through senior management, we are happy to stay up late and get them early in the morning to do the hard work that is necessary as a miner.

Ben Gagnon: Bid forms is a meritocracy and a lot of our staff have risen through the ranks due to their proof of work.

Unknown Executive: And a lot of our staff have risen through the ranks due to their proof of work. And there's so much energy in the air right now that we could probably mine a block with it. We manage what I believe is the best and largest internationally diversified portfolio of energy contracts in the Bitcoin data center business. Lastly, the opportunities ahead of us to continue to grow and create value for shareholders are second to none.

Ben Gagnon: And a lot of our staff have risen through the ranks due to their proof of work. Everyone here is incredibly excited to be a part of building the new Bitfarm. And there's so much energy in the air right now that we could probably mine a block with it.

Ben Gagnon: Everyone here is incredibly excited to be a part of building the new bid forms and there is so much energy in the air right now that we could probably minor block with it.

Ben Danyan: This energy and excitement is also shared by our external stakeholders. Over the last few years, I had the pleasure of representing the company with cell site analysts, institutional investors, and in public speaking forums. During this time, I've gotten to know many of you, and many of you have gotten to know me. I am a known and trusted entity.

Speaker Change: This energy and excitement is also shared by your external stakeholders over the last few years I've had the pleasure of representing the company with sell side analysts and institutional investors.

Ben Gagnon: This energy and excitement is also shared by our external stakeholders. Over the last few years, I've had the pleasure of representing the company with sell-side analysts, institutional investors, and in public speaking forums, during which time I've gotten to know many of you, and many of you have gone to know me. I am a known and trusted entity.

Ben Gagnon: And in public speaking forums during which time I've gotten to know many of you and many of you have gone to know me.

Ben Gagnon: I am a known and trusted entity.

Ben Danyan: Our energy portfolio and strategic approach to growth sets us apart. We manage what I believe is the best and largest, internationally diversified portfolio of energy contracts in the Bitcoin data center business. We have been able to organically grow our footprint globally, while adhering to the decentralization ethos that is core to Bitcoin, and the profit maximum that is core to Bitfarms. Our exposure to different geographies, different sources of energy and providers, different climates, and different government authorities significantly de-risk our portfolio, and we lead nearly every market we operate in at scale.

Ben Gagnon: Our energy portfolio and strategic approach to growth sets us apart.

Ben Gagnon: Our Energy Portfolio and Strategic Approach to Growth set us apart. We manage what I believe is the best and largest internationally diversified portfolio of energy contracts in the Bitcoin data center business. We have been able to organically grow our footprint globally while adhering to the decentralization ethos that is core to Bitcoin and the profit maximalism that is core to Bitfarm. Our exposure to different geographies, different sources of energy and providers, different climates, different government authorities significantly de-risk our portfolio, and we lead nearly every market we operate in at scale.

Ben Gagnon: We manage what I believe is the best and largest internationally diversified portfolio of energy contracts in the between data Center business.

Speaker Change: We have been able to organically grow our footprint globally, while adhering to the decentralization E dose that is core to bitcoin and the profit maximalism that is core to bit farms.

Ben Gagnon: Our exposure to different geographies different sources of energy and providers different climates different government authorities significantly derisk, our portfolio and we lead in nearly every market we operate in at scale.

Ben Danyan: Lastly, the opportunities ahead of us to continue to grow and create value for shareholders is second to none. We believe that we represent one of the best opportunities for investors to gain high quality exposure to Bitcoin's upside through a fleet upgrade program as we continue to scale up for highly efficient operations and as we continue to gain market share.

Ben Gagnon: Lastly, the opportunities ahead of us to continue to grow and create value for shareholders are second to none. We believe that we represent one of the best opportunities for investors to gain high-quality exposure to Bitcoin's upside through our fleet upgrade program as we continue to scale up our highly efficient operations as we continue to gain market share. That being said, there are always ways to improve and to grow more efficiently and more effectively.

Speaker Change: Lastly, the opportunities ahead of us to continue to grow and create value for shareholders are second to none and we believe that we represent one of the best opportunities for investors to gain high quality exposure to big wins outside through our fleet upgrade program as we continue to scale up our highly efficient operations as we.

Unknown Executive: We believe that we represent one of the best opportunities for investors to gain high-quality exposure to Bitcoin's upside through our fleet upgrade program as we continue to scale up our highly efficient operations as we continue to gain market share. That being said, there are always ways to improve and to grow more efficiently and more effectively. Additionally, sometimes in the pursuit of growth, it is easy to miss out on smaller optimization opportunities.

Ben Gagnon: <unk> to gain market share.

Ben Danyan: That being said, there are always ways to improve and to grow more efficiently and more effectively. While we are growing at a tremendous rate, I have identified areas where our organizational structure can be revamped to better match the scale at which we are operating, as well as our ambitions to grow into the future.

Ben Gagnon: That being said there are always ways to improve into grow more efficiently and more effectively.

Ben Gagnon: And while we are growing at a tremendous rate, I have identified areas where our organizational structure can be revamped to better match the scale at which we are operating, as well as our ambitions to grow into the future. In the coming weeks, we will be reorganizing some of our teams to provide an even stronger foundation that supports an accelerated growth trajectory. Additionally, sometimes in the pursuit of growth, it is easy to miss out on smaller optimization opportunities. One question I asked every employee was, "What is the low-hanging fruit that you see?".

Speaker Change: Well, we are growing at a tremendous rate I have identified areas, where our organizational structure can be revamped to better match the scale at which we are operating as well as our ambitions to grow into the future.

Ben Danyan: In the coming weeks, we will be reorganizing some of our teams to provide an even stronger foundation that supports an accelerated growth trajectory. Additionally, sometimes in the pursuit of growth, it is easy to miss out on smaller optimization opportunities. One question I asked every employee was, what is the low-hanging fruit that you see? Numerous team members throughout the organization have suggested sometimes simple but powerful ideas to improve and optimize performance.

Ben Gagnon: In the coming weeks, we will be reorganizing some of our teams to provide an even stronger foundation that supports an accelerated growth trajectory.

Ben Gagnon: Additionally, sometimes in the pursuit of growth it is easy to miss out on smaller optimization opportunities.

Speaker Change: One question I ask every employee was what is the low hanging fruit that you see.

Ben Gagnon: Numerous team members throughout the organization have suggested sometimes simple but powerful ideas to improve and optimize performance. In addition to our focus on growth, we are also implementing these that will drive continuous optimizations throughout the organization with a focus on cost effectiveness. It is important to highlight that our 2024 growth plan and growth targets are not changing with my appointment to CEO. As Chief Mining Officer, I was the key architect behind our fleet upgrade in Brooklyn this year, and we remain committed to reaching 21 exa-hash and 21 watts per tera-hash by year. That being said, we are not stopping at 21-X-a-half. I am also laser focused on growth into 2025 and beyond. With our new strategic plan, the board has determined to end the strategic alternatives review process.

Ben Gagnon: Numerous team members throughout the organization have suggested sometimes simple, but powerful ideas to improve and optimize performance.

Ben Danyan: In addition to our focus on growth, we are also implementing systems that will drive continuous optimizations throughout the organization with a focus on cost-effectiveness.

Ben Gagnon: In addition to our focus on growth. We are also implementing systems that will drive continuous optimization throughout the organization with a focus on cost effectiveness.

Ben Danyan: It is important to highlight that our 2024 growth plan and growth targets are not changing with my appointment to CEO. As Chief Mining Officer, I was the key architect behind our fleet upgrade in growth plan this year, and we remain committed to reaching 21x a hash and 21 waspertair a hash by year. and David. But, being said, we are not stopping at 21x a hash.

Unknown Executive: It is important to highlight that our 2024 growth plan and growth targets are not changing with my appointment to CEO. We anticipate that our recently announced deal in Sharon, Pennsylvania, will just be the first of many new sites in the U.S. Turning to slide five.

Ben Gagnon: It is important to highlight that our 2024 growth plan and growth targets are not changing with my appointment to CEO.

Speaker Change: As Chief Mining Officer, I was the key architect behind our fleet upgraded in Brooklyn, This year and we remain committed to reaching 21 extra hash and 21 loss per Terra hashed by year end.

Speaker Change: That being said, we're not stopping at 20 onex a hash I am also laser focused on growth into 2025 and beyond with our new strategic plan. The board has determined to and the strategic alternatives review process. The company has certain that the best path forward to maximize value for all <unk>.

Ben Danyan: I am also laser focused on growth into 2025 and beyond.

Ben Danyan: With our new strategic plan, the board has determined to end the strategic alternatives review process. The company is certain that the best path forward to maximize value for all shareholders is to move forward with their standalone plan.

Ben Gagnon: The company is certain that the best path forward to maximize value for all shareholders is to move forward with their standalone plan. While it is too early to provide specifics today, I'd like to comment on some of the key initiatives I will be focused on moving forward. First, I am committed to continued diversification of our portfolio. This means both geographic diversification and diversification beyond Bitcoin mining.

Speaker Change: Our holders is to move forward with their Standalone plan.

Ben Danyan: While it's too early to provide specific today, I'd like to comment on some of the key initiatives I will be focused on moving forward. First, I'm committed to continued diversification of our portfolio. This means both geographic diversification and diversifying beyond Bitcoin mining. Our greatest asset is our portfolio of competitively priced energy assets. As portfolio managers, we are constantly re-evaluating how to maximize the value of these assets. This doesn't mean pivoting away from Bitcoin, but expanding into synergistic business lines that will increase our profitability and make us better Bitcoin miners. Some examples include HPC and AI, heat recapturing and recycling, energy generation, and of course energy trading.

Speaker Change: While it is too early to provide specifics today I'd like to comment on some of the key initiatives I will be focused on moving forward.

Speaker Change: First.

Speaker Change: I am committed to continued diversification of our portfolio.

Speaker Change: This means both geographic diversification in diversifying beyond bitcoin mining our greatest asset is our portfolio of competitively priced energy assets.

Ben Gagnon: Our greatest asset is our portfolio of competitively priced energy assets. As portfolio managers, we're constantly reevaluating how to maximize the value of these. This doesn't mean pivoting away from Bitcoin, but expanding into synergistic business lines that will increase our profitability and make us better Bitcoin miners. Some examples include HPC and AI, heat recapturing and recycling, energy generation, and, of course, energy trading.

Speaker Change: Portfolio managers, we're constantly reevaluating how to maximize the value of these assets.

Speaker Change: This doesn't mean pivoting away from bitcoin, but expanding into synergistic business lines that will increase our profitability and make us better pinpoint miners.

Speaker Change: Some examples include HBC nailing heat recapturing and recycling energy generation and of course energy trading.

Ben Danyan: To reiterate, these activities will not detract from our Bitcoin mining operations, but rather be integrated into our portfolio in order to make us more efficient and more profitable.

Ben Gagnon: To reiterate, these activities will not detract from our Bitcoin mining operation, but rather be integrated into our portfolio in order to make us more efficient and more profitable. Second, over the past two years, we have focused on developing our international portfolio. In 2025 and beyond, we will be largely focusing on increasing our U.S. exposure. We anticipate that our recently announced deal in Sharon, Pennsylvania, will just be the first of many new sites in the U.S. Third, we will be pursuing more minor purchases with creative structures that give strategic advantages to Bitfarms.

Speaker Change: To reiterate these activities will not detract from our bitcoin mining operations, but rather be integrated into our portfolio in order to make us more efficient and more profitable.

Ben Danyan: Second, over the past two years, we have focused on developing our international portfolio. In 2025 and beyond, we will be largely focusing on increasing our U.S. exposure. We anticipate that our recently announced deal in Sharon, Pennsylvania, will just be the first of many new sites in the US.

Speaker Change: Second over the past two years, we are focused on developing our international portfolio in.

Speaker Change: In 2025, and beyond will be largely focusing on increasing our U S exposure, we anticipate that our recently announced deal in Sharon, Pennsylvania will just be the first of many new sites in the U S.

Ben Danyan: Third, we will be pursuing more minor purchases with creative structures that give strategic advantage to bid farms. By way of example, last year, we were the first mining company to negotiate and announce a minor purchase option with bid name. They gave us the right, but not the obligation to purchase a significant amount of miners at locked-in competitive prices. This structure was so advantageous that nearly every one of our peers followed suit with their own option in the weeks and months after we announced.

Speaker Change: Third we will be pursuing more minor purchases with creative structures that give strategic advantage to bid farms by way of example last year. We were the first mining company to negotiate and announce a minor purchase option with bit name. They gave us the right, but not the obligation to purchase a.

Ben Gagnon: By way of example, last year, we were the first mining company to negotiate and announce a minor purchase option with Bitmain that gave us the right, but not the obligation, to purchase a significant amount of miners at locked-in competitive prices.

Speaker Change: He can't amount of minors at locked in competitive prices. This structure was so advantageous that nearly every one of our peers followed suit with their own auction in the weeks and months after we announced.

Ben Gagnon: The structure was so advantageous that nearly every one of our peers followed suit with their own option in the weeks and months after we announced it. As we look to the new highly efficient miner models currently being announced, investors can expect Bitfarms to continue leading the industry in utilizing and developing new, highly accretive structures that maximize flexibility and value creation for our shareholders. Turning to slide five.

Ben Danyan: As we look to the new highly efficient minor models currently being announced, investors can expect bid farms to continue leading the industry when utilizing and developing new highly creative structures that maximize flexibility and value creation for our shareholders.

Speaker Change: As we look to the new highly efficient minor models currently being announced investors can expect bit farms to continue leading the industry and utilizing and developing new highly accretive structures that maximize flexibility and value creation for our shareholders.

Ben Danyan: Turning to slide five, we are on track to deliver record hash rate growth and efficiency improvements in 2024. And we continue to execute on this growth plan in quarter two. Here, you will see a snapshot of where we are and where we plan to be by year and 24 and year and 25. In Q2, we increase our 2025 power capacity by 220 megawatts with agreements in Paraguay and the U.S. We grew our hash rate 70% from Q1, and hash rate growth will continue to accelerate in the second half of 2024 and into 2025.

Speaker Change: Turning to slide five.

Unknown Executive: We're on track to deliver record hash rate growth and efficiency improvements in 2024. We are so excited about this site for a number of reasons. First,

Ben Gagnon: We're on track to deliver record hash rate growth and efficiency improvements in 2024, and we continue to execute on this growth plan in quarter two. Here you will see a snapshot of where we are and where we plan to be by the year 2024 and the year 2025. In Q2, we increased our 2025 power capacity by 220 megawatts with agreements in Paraguay and the U.S. We grew our hash rate by 70% from Q1, and hash rate growth will continue to accelerate in the second half of 2024 and into 2025.

Speaker Change: We are on track to deliver record cash rate growth and efficiency improvements in 2024 and.

Speaker Change: We continue to execute on this growth plan in quarter two.

Speaker Change: Here, you will see a snapshot of where we are and where we plan to be by year end 'twenty four and year end 'twenty five.

Speaker Change: In Q2, we increased our 2025 power capacity by 220 megawatts with agreements in Paraguay in the U S.

Speaker Change: We grew our hatch rate, 70% from Q1 and hatch rate growth will continue to accelerate in second half of 'twenty 'twenty four and into 2025 OLED.

Ben Danyan: I'll let Jeff speak to the financial results in more detail, but I would like to highlight that we have a strong balance sheet with a 195 million total liquidity at the end of Q2, over a thousand big points at the end of July in a 2024 growth plan that is fully funded.

Ben Gagnon: I'll let Jeff speak to the financial results in more detail, but I would like to highlight that we have a strong balance sheet with 195 million total liquidity at the end of Q2, over 1000 bitcoins at the end of July, and a 2024 growth plan that is fully funded. Turning to slides.

Speaker Change: I'll, let Jeff speak to the financial results in more detail, but I would like to highlight that we have a strong balance sheet with 195 million total liquidity at the end of Q2.

Speaker Change: <unk> thousand big wins at the end of July and a 'twenty 'twenty four growth plan that is fully funded.

Ben Danyan: Turning to slide six, let's talk a little bit more about our new US site, Sharon. We are so excited about this site for a number of reasons. First, Sharon will be our first mega site in the US with over 120 megawatts of total capacity. This single location will increase our US footprint sevenfold, from 20 megawatts to 140 megawatts, and kickstart our aggressive US growth plan. Second, Sharon is located in Western Pennsylvania, which is close to major metropolitan areas like Cleveland, Pittsburgh, Philadelphia, New York, and is in close proximity to major fiber lines. Pennsylvania is a conservative, business-friendly jurisdiction with a notably pro-Bitcoin and pro-energy democratic government.

Speaker Change: Turning to slide six let's talk a little bit more about our new USA Sharon.

Ben Gagnon: Let's talk a little bit more about our new U.S. site. We are so excited about this site for a number of reasons. First,

Unknown Executive: Pennsylvania is a conservative, business-friendly jurisdiction with a notably pro-Bitcoin and pro-energy Democratic legislature. Third, the PJM grid is the largest wholesale electricity market in the US, offering abundant access to competitively priced and flexible power that is attractive for multiple uses, including Bitcoin mining, energy trading, and even HPC and AI. Fourth, For Bitcoin mining specifically, the site supports over 8x a hash with the latest generation miners, and there are significant curtailment, demand response, and energy trading opportunities available to effectively hedge your energy costs and bring down the total cost of power.

Speaker Change: We are still excited about this site for a number of reasons first Sharon will be our first mega site in the U S. With over 120 megawatts of total capacity. This single location will increase our U S footprint sevenfold from 20 megawatts to 140 megawatts and kicks.

Ben Gagnon: Sharon will be our first megasite in the U.S. With over 120 megawatts of total capacity, this single location will increase our U.S. footprint sevenfold from 20 megawatts to 140 megawatts and kickstart our aggressive U.S. growth. Second, Sharon is located in western Pennsylvania, which is close to major metropolitan areas like Cleveland, Pittsburgh, Philadelphia, New York, and is in close proximity to major fiber lines. Pennsylvania is a conservative, business-friendly jurisdiction with a notably pro-Bitcoin and pro-energy Democratic legislature. Third, the PJM grid is the largest wholesale electricity market in the US, offering abundant access to competitively priced and flexible power that is attractive for multiple uses, including Bitcoin mining, energy trading, and even HPC and AI.

Speaker Change: Our aggressive use growth plan.

Speaker Change: Sharon is located in Western Pennsylvania, which is close to major metropolitan areas like Cleveland, Pittsburgh, Philadelphia, and New York and is in close proximity to major fiber lines.

Speaker Change: Pennsylvania is a conservative business friendly jurisdiction with a notably probate point and pro energy Democratic Governor.

Ben Danyan: Third, the PGM grade is the largest wholesale electricity market in the US, offering abundant access to competitively priced and flexible power that is attractive for multiple uses, including Bitcoin mining, energy trading, and even HPC and AI. Fourth, for Bitcoin mining specifically, the site supports over 8x of hash with the latest generation miners, and there are significant pertainment demand response and energy trading opportunities available to effectively hedge your energy costs and bring down the total cost of power. Further, as PGM is rapidly adding renewable capacity and significantly contributing to the decarbonization of the grid, these grid stabilization programs make the site both economically and environmentally sustainable.

Speaker Change: Third the PJM grid is the largest wholesale electricity market in the U S offering abundant access to competitively priced and flexible power that is attractive for multiple uses including bitcoin mining energy trading and even HBC and AI.

Ben Gagnon: Fourth, For Bitcoin mining specifically, the site supports over 8x a hash with the latest generation miners, and there are significant curtailment, demand response, and energy trading opportunities available to effectively hedge your energy costs and bring down the total cost of power. Further, as PJM is rapidly adding renewable capacity and significantly contributing to the decarbonization of the grid, these grid stabilization programs make the site both economically and environmentally sustainable. Given these significant advantages, we are actively engaged in assessing additional new opportunities to expand our presence within the PJM region.

Speaker Change: Fourth for Bitcoin mining specifically this site supports over eight Axa has with the latest generation miners and there are significant curtailment demand response, and energy trading opportunities available to effectively hedge your energy costs and bring down the total cost of power.

Unknown Executive: Further, as PJM is rapidly adding renewable capacity and significantly contributing to the decarbonization of the grid, these grid stabilization programs make the site both economically and environmentally sustainable, which are currently monetized for Bitcoin mining. These are potentially very attractive and stable high-margin revenue streams not correlated to Bitcoin prices.

Speaker Change: Further as P J N as rapidly and adding renewable capacity and significantly contributing to the de carbonization of the grid. These grid stabilization programs make the site, both economically and environmentally sustainable.

Ben Danyan: Given these significant advantages, we are actively engaged in assessing additional new opportunities to expand our presence within the PGM region. In addition, based on numerous conversations with potential partners, we believe this site is very well suited for HPC and AI. One, the PGM market has very liable power, and the grid is much less prone to the weather-related stresses that you'll see in Texas. Two accessible fiber lines support connectivity and redundancy in close proximity to the four major metropolitan areas I mentioned previously. Three, the site is located in a deregulated market and is not tied to any one-power provider, providing unparalleled flexibility.

Speaker Change: Given these significant advantages we are actively engaged in assessing additional new opportunities to expand our presence within the PJM region.

Speaker Change: In addition, based on numerous conversations with potential partners. We believe this site is very well suited for HBC and AI.

Ben Gagnon: In addition, based on numerous conversations with potential partners, we believe this site is very well suited for HPC and AI. One, the PJM market has very reliable power, and the grid is much less prone to the weather-related stresses that you'll see in Texas. Two, accessible fiber lines support connectivity and redundancy in close proximity to the four major metropolitan areas I mentioned previously.

Speaker Change: One the PJM market Hasnt very reliable power in the grid is much less prone to the weather related stresses that youll see in Texas to access more fiber lines support connectivity and redundancy in close proximity to the four major metropolitan areas I mentioned previously.

Ben Gagnon: Three, the site is located in a deregulated market and is not tied to any one power provider, providing unparalleled flexibility. We have not yet started construction on the site, and so we maintain 100% flexibility in terms of the build-out plan. We have a clean slate and would not have to incur retrofitting expenses.

Speaker Change: Three the site is located in a deregulated market and is not tied to any one power provider providing unparalleled flexibility.

Ben Danyan: Four, we have not yet started construction on the site, and so we maintain 100% flexibility in terms of the build-out plan. We have a clean slate and would not have to incur retrofitting expenses. This also allows for an expedited deployment schedule capable of meeting AI customers' aggressive timelines.

Speaker Change: Sure.

Speaker Change: We have not yet started construction on the site and so we maintained 100% flexibility in terms of the build out plan.

Speaker Change: We have a clean slate and would not have to incur retrofitting expenses. This also allows for expedited deployment schedule capable of meeting AI customers aggressive timelines.

Ben Gagnon: This also allows for an expedited deployment schedule capable of meeting AI customers' aggressive timelines. We have, in fact, received so much interest over the past few weeks for you as sites in this 100 megawatt speed spot that I'd like to spend a minute here discussing the HPC and AI opportunity. Turning to slide seven.

Ben Danyan: We have, in fact, received so much interest over the past few weeks for you with sites in this 100 megawatts speed spot that I'd like to spend a minute here discussing the HPC and AI opportunity.

Speaker Change: We have in fact received so much interest over the past few weeks for you with sites in this 100 megawatt sweet spot.

Speaker Change: I'd like to spend a minute here discussing the HBC in AI opportunity.

Ben Danyan: Lee, turning to slide seven. The HPC and AI opportunity is a very exciting one that has been monopolizing the headlines for the past few months, and rightfully so. Bloomberg and UBS cite a total addressable market for the AI Cloud GPU services of $28 billion in 2022, growing to $420 billion in 2027, with related AI infrastructure growing eightfold from $26 billion to $195 billion over the same time period. We own and operate upward folio of high quality energy assets that are currently monetized for Bitcoin mining, but when we take a step back and look at how we get the most value and utilization out of this portfolio, we believe that HPC and AI has real potential.

Speaker Change: Turning to slide seven.

Speaker Change: The HBC and AI opportunity is a very exciting one that has been monopolizing the headlines for the past few months and rightfully so.

Ben Gagnon: The HPC and AI opportunity is a very exciting one that has been monopolizing the headlines for the past few months, and rightfully so. Bloomberg and UBS cite a total addressable market for AI cloud GPU services of $28 billion in 2022, growing to $420 billion in 2027, with related AI infrastructure growing eightfold from $26 billion to $195 billion over the same time period. We own and operate a portfolio of high-quality energy assets that are currently monetized for Bitcoin mining.

Speaker Change: Bloomberg and the UBS site, a total addressable market for the AI cloud GPU services of $28 billion in 2022 growing to 420 billion in 2027 with related AI infrastructure growing April from $26 billion to 195 billion over the same time.

Speaker Change: Period.

Speaker Change: We own and operate a portfolio of high quality energy assets that are currently monetize for bitcoin mining.

Ben Gagnon: But when we take a step back and look at how we get the most value and utilization out of this portfolio, we believe that HPC and AI have real potential. Recent HPC and AI deals are boasting revenues from approximately $140 to $210 per megawatt hour. These are potentially very attractive and stable, high-margin revenue streams, not correlated to Bitcoin prices.

Speaker Change: But when we take a step back and look at how we get the most value and utilization out of this portfolio. We believe that H B C and AI has real potential.

Ben Danyan: Recent HPC and AI deals are both seen revenues from approximately $140 to $210 per megawatt out. These are potentially very attractive and stable, high-margin revenue streams not correlated to Bitcoin prices. Comparatively, Bitcoin mining with T21 miners yesterday on August 7 yielded approximately $80 per megawatt hour. Properly timed, we still believe that investments in Bitcoin mining provide a better return on invested capital compared to HPC and AI due to their materially lower capEx requirements and upside exposure to Bitcoin prices.

Speaker Change: Recent H B C. N. A ideals are both seem revenues from approximately 140 to $210 per megawatt hour.

Speaker Change: These are potentially very attractive and stable high margin revenue streams not correlated to beckman prices.

Ben Gagnon: Comparatively, Bitcoin mining with T21 miners yesterday on August 7 yielded approximately $80 per megawatt hour. Properly timed, we still believe that investments in Bitcoin mining provide a better return on invested capital compared to HPC and AI due to their materially lower CapEx requirements and upside exposure to Bitcoin prices. That said, we believe that the most attractive opportunity is a combination of the two, with a potential integration in Q4 2025 or Q1 2026.

Speaker Change: <unk> Bitcoin mining with T 21 miners yesterday on August seven yielded approximately $80 per megawatt hour.

Speaker Change: Properly timed we still believe that investments in between mine provide a better return on invested capital compared to H B C. NII due to their materially lower capex requirements and upside exposure typically in prices.

Ben Danyan: That said, we believe that the most attractive opportunity is a combination of the two, with a potential integration in Q4 2025 or Q1 2026. This would potentially provide us in pre-sversification and exposure to varied revenue streams at what this has historically been the top of the Bitcoin boom market cycle and lines with HPC customers' timelines.

Speaker Change: That said, we believe that the most attractive opportunity did a combination of the two with a potential integration in Q4 2025 for Q1 2026.

Ben Gagnon: This would potentially provide us increased diversification and exposure to varied revenue streams at what has historically been the top of the Bitcoin bull market cycle and aligns with HPC customers' time. We are still in the early stages of evaluating the opportunities here, but we believe that our North American sites have the potential to be very well suited for these activities. To help us evaluate and develop this vertical, we are currently recruiting HPC and AI talent, ensuring we have the expertise to capitalize on this huge opportunity.

Speaker Change: This would potentially provide us increased diversification and exposure to varied revenue streams and what gets us extort. We've been the talk of the big win Bull market cycle, and aligns with H P C customers timelines.

Ben Danyan: We are still in the early stages of evaluating the opportunities here, but we believe that our North American sites have the potential to be very well suited for these activities. To help us evaluate and develop this vertical, we are currently recruiting for HPC and AI talent, ensuring we have the expertise to capitalize on this huge opportunity. Additionally, our very active corporate development team was constantly assessing new energy assets, for now evaluating all opportunities through multiple lenses, including the HPC and AI lens.

Speaker Change: We are still in the early stages of evaluating the opportunities here, but we believe that our north American sites have the potential to be very well suited for these activities.

Speaker Change: To help us evaluate and develop this vertical we are currently recruiting for HBC and AI talent, ensuring we have the expertise to capitalize on this huge opportunity.

Unknown Executive: Before we begin, please note this call is being broadcast with an accompanying presentation. Today's press release and our presentation can be accessed at our website, bitfarms.com under the investor section. Turning to slide two, I'd like to remind everyone that certain forward-looking statements will be made during the call and that future results could differ from those implied in this statement. The forward-looking information is based on certain assumptions and its subject to risks and uncertainties.

Unknown Executive: Additionally, our very active corporate development team is constantly assessing new energy assets. The key thing to drive home here is that HPC and AI will not replace Bitcoin mining for us. Moving to slide 8.

Ben Gagnon: Additionally, our very active corporate development team was constantly assessing new energy assets and is now evaluating all opportunities through multiple lenses, including the HPC and AI lens. The key thing to drive home here is that HPC and AI will not replace Bitcoin mining for us but rather seek to complement our current operations in order to create the most upside in value for our shareholders in line with the historical market cycle. Moving to slide eight.

Speaker Change: Additionally, our very active corporate development team was constantly assessing new energy assets are now evaluating all opportunities through multiple lenses, including the H P. C N AI labs.

Ben Danyan: The key thing to drive home here is that HPC and AI will not replace Bitcoin mining for us, but rather seek to complement our current operations in order to create the most upside and value for our shareholders in line with historical market cycles.

Speaker Change: The key thing to drive home here is at H P. C. N. A I will not replace bitcoin mining for us, but rather seek to complement our current operations in order to create the most upside and value for our shareholders in line with historical market cycles.

Unknown Executive: And I invite you to consult bitfarms MDNA for a complete list. Please note that references will be made to certain measures not recognized under IFRS and therefore may not be comparable to similar measures presented by other companies. We invite listeners to refer to today's press release and our MDNA for definitions of the aforementioned non IFRS measures and their reconciliation to IFRS measures. Please note that all financial references are denominated in US dollars unless otherwise noted.

Speaker Change: Moving to slide eight.

Ben Danyan: Moving to slide 8. I would now like to switch gears and tell you about our progress to 21XH and 21XH here today. What we did experience temporary delays in hitting our mid-year target 12XH, we did hit our efficiency target 25XH, representing a 19% improvement quarter over quarter, and a 29% improvement year-to-date. Lee. The 12x-the-hash milestone was delayed due to some temporary equipment delays, as well as a batch of nearly 3000 miners representing across 700 petahasht that underperformed and even low temperatures. The delayed equipment has since been received and installed, and these issues have been addressed with Bitmin and are not expected to be present in future batches of miners, including our August deliveries.

Speaker Change: I would now like to switch gears and tell you about our progress to 'twenty, one extra half in 'twenty, one watts per tower half year to date.

Ben Gagnon: I would now like to switch gears and tell you about our progress to 21 ExaHash and 21 Watts per TeraHash year-to-date. While we did experience temporary delays in hitting our mid-year target of 12 ExaHash, we did hit our efficiency target of 25 watts per terahash, representing a 19% improvement quarter over quarter and a 29% improvement year to date. The 12-exahash milestone was delayed due to some temporary equipment delays, as well as a batch of nearly 3,000 miners representing approximately 700 petahash that underperformed in even low temperatures. The delayed equipment has since been received and installed, and these issues have been addressed with BITME and are not expected to be present in future batches of minors, including our August delivery.

Speaker Change: We did experience temporary delays in hitting our mid year target 12 X a hash we did hit our efficiency target 25 watts for Terra ash, representing a 19% improvement quarter over quarter, and a 29% improvement year to date.

Tracy Krumme: Importantly, I would like to highlight that we are unable to comment on the ongoing legal process with riot platforms outside of what has already been disclosed. I would also like to add that we will be attending the following upcoming equity conferences. HC Wainwright's 26th Annual Global Investment Conference taking place in New York City from September 9th to the 11th and the aim set in Dubai taking place from October 21st to the 22nd. If anyone would like to meet with us on the dates, please contact me or sales representatives from the firm.

Speaker Change: The 12 X a half milestone was delayed due to some temporary equipment delays as well as a batch of nearly 3000 miners representing approximately 700 pet a hashed that underperformed even low temperatures.

Unknown Executive: The 12-exahash milestone was delayed due to some temporary equipment delays, as well as a batch of nearly 3,000 miners representing approximately 700 petahash that underperformed in even low temperatures. These new miners are expected to arrive and be installed in three weeks. With 7 of 11 data center upgrades now complete, the only remaining facilities to be upgraded are Pueblo Rica, Magog, Washington, and Argentina. The first batch of PDUs and minors is being shipped to Argentina this month, and we are scheduled to begin seeing improvements in hash rate and efficiency as early as October.

Speaker Change: The delayed equipment has since been received and installed and these issues have been addressed with pitney and are not expected to be present and future batches of miners, including our August deliveries.

Ben Gagnon: Bitmain is also rapidly replacing the 3,000 miners with new units at their facilities. These new miners are expected to arrive and be installed in three weeks. Our facility upgrades have also progressed rapidly. And nearly all of our sites in Canada have now been upgraded, resulting in up to a 52% improvement in energy efficiency per site and a 29% improvement in energy efficiency across the company. With 7 of 11 data center upgrades now complete, the only remaining facilities to be upgraded are Puebla, Colombia; Magog, Washington; and Argentina.

Ben Danyan: Bitmin is also rapidly replacing these 3000 miners with new units, at their expense. These new miners are expected to arrive and be installed in three weeks. Our facility upgrades have also progressed rapidly, and nearly all of our sites in Canada have now been upgraded, resulting in up to a 52% improvement in energy efficiency per site, and a 29% improvement in energy efficiency across the company. With seven of 11 data center upgrades now complete, the only remaining facilities to be upgraded are Villarica, Megad, Washington, and Argentina. PDUs are currently being shipped to Villarica and Megad, and new T-21 miners are scheduled to be sent in the coming days, with upgrades at both sites scheduled to be completed in September.

Speaker Change: It mean is also rapidly replacing these 3000 miners with new units at their expense.

Tracy Krumme: Now turning to slide three, it is my pleasure to turn the call over to Ben Ganyan Chief Executive Officer. Then please go ahead.

Speaker Change: These new miners are expected to arrive and be installed in three weeks.

Speaker Change: Our facility upgrades have also progressed rapidly.

Ben Ganyan: Thank you Tracy and thank you everyone for joining us today. I am so excited to have stepped up into the Chief Executive Officer role. This has been my personal ambition for the past several years and it is truly an honor.

Speaker Change: And nearly all of our sites in Canada have now been upgraded resulting in up to a 52% improvement in energy efficiency per site and a 29% improvement in energy efficiency across the company.

Ben Ganyan: As this is my first conference call CEO, I would like to give a quick background on myself for those of you who may not know me. Fourteen years ago, I discovered Bitcoin. In nine years ago, I began working full-time in the mining industry. I started from the very bottom, investing every dollar I had to build and operate a mining facility in mainland China of my own design. Since then, I have been through multiple bull and bear markets.

Speaker Change: With seven of 11 data center upgrades now complete the only remaining facilities to be upgraded our billerica Magog, Washington in Argentina.

Ben Gagnon: PDUs are currently being shipped to Billerica and Magog, and new T21 miners are scheduled to be sent in the coming days, with upgrades at both sites scheduled to be completed in September. Works are also progressing in Washington, which is both a data center upgrade and an expansion. Final works are scheduled to be completed in November.

Speaker Change: PD use are currently being shipped to billerica and Mega hubs and new T. 21 miners are scheduled to be sent in the coming days with upgrades at both sites scheduled to be completed in September.

Ben Danyan: Words are also progressing in Washington, which is both a data center upgrade and an expansion. Final works are scheduled to be completed in November. Lastly, in Argentina, we are currently working on a revised data center upgrade to marginally expand the total capacity of the site from 54 to 62 megawatts. With this expansion to 62 megawatts, we now expect this upgrade to be finalized in December or January. The first batch of PDUs and miners are being shipped to Argentina this month, and we are scheduled to begin seeing improvements in hash rate and efficiency as early as October.

Speaker Change: Words are also progressing in Washington, which is both the data center upgrade and expansion final works are scheduled to be completed in November.

Ben Ganyan: Three have any talks and have seen and been involved with every aspect of this industry. From the mining floor to the sea suite of one of the largest publicly traded mining companies globally. I have been with Bitfarm for five years and for the last three years served the company as chief mining officer, where I oversaw mining operations and strategy and worked intimately with every department in the company. I am a proof of work CEO and the transition into this new role has been smooth and well received among our team and external stakeholders.

Speaker Change: Lastly in Argentina, we are currently working on a revised datacenter upgrade to marginally expand the total capacity at the site from 54 to 62 megawatts.

Ben Gagnon: Lastly, in Argentina, we are currently working on a revised data center upgrade to marginally expand the total capacity of the site from 54 to 62 megawatts. With this expansion to 62 megawatts, we now expect this upgrade to be finalized in December or January. The first batch of PDUs and minors is being shipped to Argentina this month, and we are scheduled to begin seeing improvements in hash rate and efficiency as early as October. As for minor deployments, we have now deployed approximately 48%, or 42,000, of the 88,000 minors that we ordered for 2024.

Speaker Change: With this expansion to 62 megawatts. We now expect this upgrade to be finalized in December or January.

Speaker Change: The first batch of PD, you'd and miners are being shipped to Argentina. This month and we are scheduled to begin seen improvements in hash rate inefficiency as early as October.

Ben Danyan: On minor deployments, we have now deployed approximately 48% or 42,000 of the 88,000 miners that we ordered for 2024. These miners were mostly deployed in facility upgrades, and this replacement of our older, less efficient hardware is largely responsible for our rapid improvements in energy efficiency year-to-date. Roughly half of the remaining miners will be deployed in the four remaining data center upgrades, just mentioned. Further improving our energy efficiency down to our target of 21 watts per tear hash. The other half will be deployed in our new constructions, and will be responsible for most of the remaining hash rate growth to 21x hash.

Speaker Change: On minor deployments that we have now deployed approximately 48% or 42000 of the 88000 miners that we ordered for 2024.

Ben Ganyan: Turning to slide forward. Over the past 30 days since my appointment, I've set aside time to speak with every employee of Bitfarm. In addition to all of our key partners and many of our investors.

Unknown Executive: These miners were mostly deployed in facility upgrades, and this replacement of our older, less efficient hardware is largely responsible for our rapid improvements in energy efficiency year to date. Roughly half of the remaining miners will be deployed in the four remaining data center upgrades just mentioned. The other half will be deployed in our new constructions and will be responsible for most of the remaining hatchery growth to 21x1.

Ben Gagnon: These miners were mostly deployed in facility upgrades, and this replacement of our older, less efficient hardware is largely responsible for our rapid improvements in energy efficiency year to date. Roughly half of the remaining miners will be deployed in the four remaining data center upgrades just mentioned, further improving our energy efficiency down to our target of 21 watts per terawatt. The other half will be deployed in our new constructions and will be responsible for most of the remaining hash rate growth to 21x.

Speaker Change: These miners were mostly deployed and facility upgrades in this replacement of our older less efficient hardware is largely responsible for a rapid improvement in energy efficiency year to date.

Ben Ganyan: From these conversations and from my first months in the new role, I would like to share the following key points. We are excellent builders and operators. Our team is highly skilled in passionate, but more importantly, they believe in the Bitfarms vision. From site teams through senior management, we are happy to stay up late and get up early in the morning to do the hard work that is necessary as a minor. Bitfarms is a meritocracy, and a lot of our staff have risen through the ranks due to their proof of work.

Speaker Change: Roughly half of the remaining miners will be deployed in the four remaining data center upgrades just mentioned.

Speaker Change: Further improving our energy efficiency down to our target of 21 watts per tear ash.

Speaker Change: The other half will be deployed in our new constructions and will responsible for most of the remaining hatch rate growth to 20 Onex ash.

Ben Danyan: In terms of construction progress, we've made significant strides today in 2024. I am pleased to report that our 70 megawatt site at Pasapet is now fully online, and is our largest site by both megawatts and hash rate. Our 12 megawatt expansion vehicle model is well underway and is on track to be energized in September. In Iguazu, we started the year with 100 megawatts contracted, and as since double the contracted capacity to 200 megawatts, this site will represent the largest site in our portfolio in 2025. In terms of construction progress, we have now completed all of the necessary purchase orders and broken ground on seven of the warehouses.

Unknown Executive: In terms of construction progress, we've made significant strides to date in 2024. I am pleased to report that our 70 megawatt site at Paso Pei is now fully online and is our largest site by both megawatts and hash rates. In Iguazu, we started the year with 100 megawatts contracted and have since doubled the contracted capacity to 200 megawatts.

Ben Gagnon: In terms of construction progress, we've made significant strides to date in 2024. I am pleased to report that our 70 megawatt site at Paso Pei is now fully online and is our largest site by both megawatts and hash rates. Our 12 megawatt expansion in Baycomo is well underway and is on track to be energized in September. In Iguazu, we started the year with 100 megawatts contracted and have since doubled the contracted capacity to 200 megawatts. This site will represent the largest site in our portfolio in 2020. In terms of construction progress, we have now completed all of the necessary purchase orders and broken ground on seven of the warehouses.

Speaker Change: In terms of construction progress we've made significant strides to date in 2024.

Ben Ganyan: Everyone here is incredibly excited to be a part of building the new Bitfarms, and there are so much energy in the air right now that we could probably mine a block with that. This energy and excitement is also shared by our external stakeholders.

Speaker Change: I am pleased to report that our 70 megawatt site at Paso PE is now fully online and is our largest site by both megawatts and hatch rate.

Speaker Change: Our 12 megawatt expansion Bay Como is well underway and is on track to be energized in September.

Ben Ganyan: Over the last few years, I have had the pleasure of representing the company with cell site analysts, institutional investors, and in public speaking forums. During this time, I have gone to know many of you, and many of you have gone to know me. I am a known and trusted entity. Our energy portfolio and strategic approach to growth sets us apart. We manage what I believe is the best and largest, internationally diversified portfolio of energy contracts in the Bitcoin data center business.

Speaker Change: And it wasn't we started the year with 100 megawatts contracted and has since doubled the contracted capacity to 200 megawatts.

Unknown Executive: This site will represent the largest site in our portfolio in 2020. We expect 100 megawatts to come online in December, contributing approximately 5x a hash with 20 watts per terahash efficiency and an additional 100 megawatts to come online in the first half of 2025. Four months ago, this was just a soy.

Speaker Change: This site will represent the largest site in our portfolio in 2025.

Speaker Change: In terms of construction progress we have now completed all of the necessary purchase orders and broken ground on seven the warehouses.

Ben Danyan: We expect 100 megawatts to come online in December, contributing approximately 5x hash with 20 watts per tear hash efficiency, and an additional 100 megawatts to come online in the first half 2025.

Ben Gagnon: We expect 100 megawatts to come online in December, contributing approximately 5x a hash with 20 watts per terahash efficiency and an additional 100 megawatts to come online in the first half of 2025. Turning to slide nine, I would like to share with you some beautiful aerial photos of Iguazu that show the tremendous progress we have made. Four months ago, this was just a soybean.

Speaker Change: We expect a 100 megawatts to come online in December contributing approximately five extra hash with 20 watts per Tara Houska efficiency and an additional 100 megawatts to come online in the first half 2025.

Ben Ganyan: We have been able to organically grow our footprint globally, while adhering to the decentralization ethos that is core to Bitcoin, and the profit maximum that is core to Bitfarms. Our exposure to different geographies, different sources of energy and providers, different climates, different government authorities, significantly de-risk our portfolio, and we lead nearly every market we operate in at scale.

Ben Danyan: Jeff, turning to Slide 9. I would like to share with you some beautiful aerial photos of Igualzu that show the tremendous progress we have made. Four months ago, this was just a soy field. And in five months, it is expected to be between one half and three quarters of up percent of the entire Bitcoin network, powered entirely by renewable energy. From breaking ground to energization, the construction schedule is only nine months, far faster than what is possible in the U.S.

Speaker Change: Turning to slide nine.

Speaker Change: I'd like to share with you some beautiful aerial photos of Iguazu that show the tremendous progress we have made.

Speaker Change: Four months ago. This was just a soy field and in five months. It is expected to be between one half and three quarters of a percent of the entire bitcoin network powered entirely by renewable energy.

Ben Gagnon: And in five months, it is expected to be between one half and three quarters of a percent of the entire Bitcoin network. Powered entirely by renewable energy. From breaking ground to energization, the construction schedule is only nine months, far faster than what is possible in the U.S.

Unknown Executive: Powered entirely by renewable energy. The rapid scale at which we are developing the site is unparalleled. Turning to slide 10. I'd like to take a quick moment to welcome Fannie Philip to our board of directors. Fannie is a recognized expert in the blockchain technology field and an accomplished financial executive with an extensive background in audit, public company reporting, and M&A. Her skill set will be invaluable as we continue to drive organic and inorganic growth. Fannie represents our fifth director, four of whom are now independent. Turning to slide 11.

Ben Ganyan: Lastly, the opportunities ahead of us to continue to grow and create value for shareholders per second to none. We believe that we represent one of the best opportunities for investors to gain high quality exposure to Bitcoin's upside through our fleet upgrade program as we continue to scale up for highly efficient operations and as we continue to gain market share.

Speaker Change: From breaking ground to energize ace in the construction schedule is only nine months far.

Speaker Change: Far faster than what is possible in the U S.

Ben Danyan: The rapid scale at which we are developing the site is unparalleled, and is an incredible testament to our amazing team and capabilities.

Ben Gagnon: The rapid scale at which we are developing the site is unparalleled. It is an incredible testament to our amazing team and capability. Turning the slide to him.

Speaker Change: The rapid scale of which we are developing the site is unparalleled and is an incredible testament to our amazing team and capabilities.

Ben Danyan: Turning to Slide 10, I'd like to take a quick moment to welcome Danny Phillips to the board of directors. Danny is a recognized expert in the blockchain technology field and an accomplished financial executive with an extensive background in audit, public company reporting, and M&A. Her skill set will be invaluable as we continue to drive organic and inorganic growth. Danny represents our fifth director; four of which are now independent.

Speaker Change: Turning to slide 10.

Ben Gagnon: I'd like to take a quick moment to welcome Fannie Philip to our board of directors. Fannie is a recognized expert in the blockchain technology field and an accomplished financial executive with an extensive background in audit, public company reporting, and M&A. Her skill set will be invaluable as we continue to drive organic and inorganic growth. Fannie represents our fifth director, four of whom are now independent.

Ben Ganyan: That being said, there are always ways to improve and to grow more efficiently and more effectively. And while we are growing at a tremendous rate, I have identified areas where our organizational structure can be revamped to better match the scale at which we are operating, as well as our ambitions to grow into the future. In the coming weeks, we will be reorganizing some of our teams to provide an even stronger foundation that supports an accelerated growth trajectory.

Speaker Change: I'd like to take a quick moment to welcome <unk> to our board of directors Fannie is a recognized expert in the blockchain technology field and an accomplished financial executive with an extensive background in audit and public company reporting and M&A. Her skill set will be invaluable as we continue to drive organic and inorganic growth.

Speaker Change: <unk> represents our fifth director four of which are now independent.

Ben Danyan: Turning to Slide 11, I will close out with a summary of our impressive growth stats and trajectory for 2024 and 2025. In 2024, we will be tripling our fast rate, increasing our operating capacity by 83%, and improving our efficiency by over 40%. These are industry-leading benchmarks and numbers that I am incredibly proud of. We will continue to build on this growth in 2025. We've already added an additional 220 megawatts to our energy portfolio, supporting over 35X of hash, and stay tuned because there is more to come.

Speaker Change: Turning to slide 11.

Ben Gagnon: Turning to slide 11, I will close out with a summary of our impressive growth stats and trajectory for 2024 and 2025. In 2024, we will be tripling our hashrate, increasing our operating capacity by 83%, and improving our efficiency by over 40%. These are industry-leading benchmarks and numbers that I am incredibly proud of. You will continue to build on this foundation in 2025. We've already added an additional 220 megawatts to our energy portfolio, supporting over 35x a hash. And stay tuned, because there is more to come. And with that, I will turn to slide 12 and turn the call over to CFO Jeff Lucas.

Unknown Executive: I will close out with a summary of our impressive growth stats and trajectory for 2024 and 2025. You will continue to build on this rope in 2025. We've already added an additional 220 megawatts to our energy portfolio, supporting over 35x a hash. And stay tuned, because there is more to come.

Speaker Change: I will close out with a summary of our impressive growth stats and trajectory for 2024 and 2025.

Ben Ganyan: Additionally, sometimes in the pursuit of growth, it is easy to miss out on smaller optimization opportunities. One question I asked every employee was what is the low hanging fruit that you see numerous team members throughout the organization have suggested sometimes simple but powerful ideas to improve and optimize performance. In addition to our focus on growth, we are also implementing systems that will drive continuous optimizations throughout the organization with a focus on cost effectiveness.

Speaker Change: In 2024, we will be tripling our cash rate.

Speaker Change: Increasing our operating capacity by 83% and improving our efficiency by over 40%.

Speaker Change: These are industry, leading benchmarks and numbers that I am incredibly proud of.

Speaker Change: You will continue to build on this growth in 2025.

Speaker Change: We've already added an additional 220 megawatts to our energy portfolio supporting over 35 acts of hash and stay tuned because there is more to come.

Ben Ganyan: It is important to highlight that our 2024 growth plan and growth targets are not changing with my appointment to CEO. As Chief Mining Officer, I was the key architect behind our fleet upgrade in growth plan this year, and we remain committed to reaching 21x a hash and 21 waspertera hash by year, and David. But, being said, we are not stopping at 21X a hash. I am also laser focused on growth into 2025 and beyond.

Jeffrey Lucas: And with that, I will turn to Slide 12 and turn the call over to CFO Jeff Lucas. Thanks, Ben, and thanks everyone for joining us today. I want to underscore the great advantage of having Ben as our CEO. As a long-standing veteran of Bitflombs, in the architect of our growth and profitability improvement programs, we are under his leadership, position to develop and act quickly in our initiatives. In such a fast evolving environment, this is essential to keeping Bitflombs on the cutting edge of our industry.

Speaker Change: And with that I will turn to slide 12, and turn the call over to CFO, Jeff Lucas.

Jeff Lucas: Thanks, Dan and thanks to everyone for joining us today.

Jeff Lucas: Thanks, Ben. And thanks, everyone, for joining us today.

Jeff Lucas: I want to underscore the great advantage of having Ben as our CEO. As a longstanding veteran of Bitfarms and the architect of our growth and profitability improvement programs, we are, under his leadership, positioned to develop and act quickly on our initiatives. In such a fast-evolving environment, this is essential to keeping Bitfarms on the cutting edge of our industry.

Unknown Executive: I want to underscore the great advantage of having Ben as our CEO. As a longstanding veteran of Bitfarms and the architect of our growth and profitability improvement programs, we are, under his leadership, positioned to develop and act quickly on our initiative. General and Administrative Expense, excluding non-cash stock-based compensation and the sales tax refund, was $13 million in comparison to $10 million in the first quarter. Under IFRS, we are required to recognize the liability for these warrants even though they cannot and will never be settled for cash.

Speaker Change: I want to underscore the great advantage of having been as our CEO has galore and even better than a bad farms and the architect of our growth and profitability improvement programs. We are under his leadership.

Jeff Lucas: To develop and act quickly and our initiatives.

Speaker Change: Such a fast evolving environment.

Ben Ganyan: With our new strategic plan, the board has determined to end the strategic alternatives review process. The company is certain that the best path forward to maximize value for all shareholders is to move forward with their standalone plan.

Speaker Change: Until the keeping this farms on the cutting edge of our industry.

Jeffrey Lucas: Now, let's begin with an overview of our second quarter financials. Second quarter revenue of $42 million was down 16% quarter over quarter, and up to 17% year over year. The changes due primarily to the decrease in Black Awards on April having. During the quarter, we are in 614 Bitcoin, 35% fewer quarter over quarter, primarily the results of the having in a 10% increase in average network difficulty. Mining revenue was $40 million compared to $49 million in the prior quarter. Growth mining profit was $21 million, or 51% of money revenue, down from $31 million or 64% last quarter, and up from 48% in the prior year quarter.

Jeff Lucas: Now let's begin with an overview of our second quarter financials. Second quarter revenue of $42 million was down 16% quarter-over-quarter and up 17% year-over-year. The change was due primarily to the decrease in block rewards following the April hazard. During the quarter, we earned 614 Bitcoin, 35% fewer quarter over quarter, primarily the result of the halving and a 10% increase in average network difficulty. Mining revenue was $40 million compared to $49 million in the prior quarter.

Speaker Change: Now, let's begin with an overview of our second quarter financials.

Speaker Change: Second quarter revenue of $42 million was down 16% quarter over quarter and up 17% year over year. The change was due primarily to the decrease in block Award following April having during the quarter, we had 614 bitcoin, 35% fewer quarter over quarter, primarily there is.

Ben Ganyan: While it's too early to provide specific today, I'd like to comment on some of the key initiatives I will be focused on moving forward. First, I am committed to continued diversification of our portfolio. This means both geographic diversification and diversifying beyond Bitcoin mining. Our greatest asset is our portfolio of competitively priced energy assets. As portfolio managers, we are constantly re-evaluating how to maximize the value of these assets. This doesn't mean pivoting away from Bitcoin, but expanding into synergistic business lines that will increase our profitability and make us better Bitcoin miners.

Ben Ganyan: Some examples include HPC and AI, heat recapturing and recycling, energy generation, and of course energy trading. To reiterate, these activities will not detract from our Bitcoin mining operations, but rather the integrated into our portfolio in order to make us more efficient and more profitable.

Speaker Change: Are they having a 10% increase in average network difficulty.

Speaker Change: Mining revenue was $40 million compared to $49 million in the prior quarter.

Jeff Lucas: Gross mining profit was $21 million, or 51% of mining revenue, down from $31 million or 64% last quarter and up from 48% in the prior year quarter. General and Administrative Expense, excluding non-cash stock-based compensation and the sales tax refund, was $13 million, in comparison to $10 million in the first quarter. The $3 million increase pertained primarily to unusual costs associated with the Strategic Alternatives Review process, a response to Riot Platform's hostile takeover bid, and a shareholder rights plan, as well as fees associated with the employment competition dispute with the former CEO.

Speaker Change: With money and profit was $21 million or 51% of money revenue down from $31 million or 64% last quarter and up from 48% in the prior year quarter.

Jeffrey Lucas: General administrative expense, excluding non-cash stock-based compensation and the sales tax refund, was $13 million compared to $10 million in the first quarter. The $3 million increase pertains primarily to an usual cost associated with the Strategic Alternatives Review Process. Our sponsor, Riot Platforms, Hoss will take over bed in a sheerholder rights plan, as well as fees associated with the employment competition dispute with the former CEO. For the second quarter, our operating loss with $24 million, large young change from the first quarter. The operating loss includes $57 million of depreciation expense on all the miners made a $39 million depreciation in the first quarter.

Speaker Change: General and administrative expense, excluding noncash stock based compensation and the sales tax refund with $13 million in the past and a $10 million in the first quarter.

Speaker Change: $3 million increase pertain, primarily to unusual costs associated with the strategic alternatives review process, our sponsor riot platforms hostile takeover bid and a shareholder rights plan as Ralph piece associated with employment competition dispute with the former CEO.

Jeff Lucas: For the second quarter, our operating loss was $24 million, largely unchanged from the first quarter. The operating loss includes $57 million of depreciation expense on all the miners, and we made $39 million in depreciation in the first quarter. Under our upgrade program, our existing miners are being depreciated on an accelerated basis over the remainder of their expected operating life if they are replaced with more efficient miners. As such, a higher level of depreciation is expected in the first and second quarters of this year.

Speaker Change: But the second quarter, our operating loss was $24 million largely unchanged from the first quarter.

Ben Ganyan: Second, over the past two years, we have focused on developing our international portfolio. In 2025 and beyond, we will be largely focusing on increasing our US exposure. We anticipate that our recently announced deal in Sharon, Pennsylvania will just be the first of many new sites in the US.

Speaker Change: The operating loss includes $57 million of depreciation expense and all the miners made at $39 million depreciation in the first quarter.

Jeffrey Lucas: Under our upgrade program, our existing miners are being depreciated on an accelerated basis over the remainder of their expected operating life, as they are replaced with more efficient miners. As such, a higher level of depreciation was expected in the first and second quarters of this year. The depreciation expense is projected to normalize on the third and fourth quarters as the minor replacement program was largely completed by the end of June. In the second quarter, financial expense includes a $1 million non-cash expense for the revaluation of financial liability to warrants issued in earlier financing compared to a $9 million non-cash gain on the revaluation of this financial liability in the first quarter.

Speaker Change: Under our upgrade program, our existing miners are being depreciated on an accelerated basis over the remainder of their expected operating life is their replaces more efficient Myers.

Ben Ganyan: Third, we will be pursuing more minor purchases with creative structures that give strategic advantage to bid farms. By way of example, last year, we were the first mining company to negotiate and announce a minor purchase option with BitMain. They gave us the right but not the obligation to purchase a significant amount of miners at locked-in competitive prices. This structure was so advantageous that nearly every one of our peers followed suit with their own option in the weeks and months after we announced.

Speaker Change: As such a higher level of depreciation was expected in the first and second quarters of this year.

Jeff Lucas: Depreciation expense is projected to normalize during the third and fourth quarters as the mine and replacement program were largely completed by the end of June. In the second quarter, financial expense includes a $1 million non-cash expense for the revaluation of the financial liability for warrants issued in earlier financings, compared to a $9 million non-cash gain on the revaluation of this financial liability in the first quarter. Under IFRS, we are required to recognize the liability for these warrants even though they cannot and will never be settled for cash.

Speaker Change: Depreciation expense is projected to normalize during the third and fourth quarters as a minor replacement program was largely completed by the end of June.

Speaker Change: And the second quarter financial expense includes a $1 million noncash expense for the revaluation of financial liability for warrants issued earlier financings compared to $9 million noncash gain on the revaluation of its financial liability in the first quarter.

Ben Ganyan: As we look to the new highly efficient mining models currently being announced, investors can expect bid farms to continue leading the industry when utilizing and developing new highly acclaimed structures that maximize flexibility and value creation for our shareholders.

Jeffrey Lucas: Under IFRS, we are required to recognize the liability for these warns, even though they cannot and will never be settled for cash.

Andre: Andre I FRS were required to recognize the liability for this one even though they cannot you'll never be settled for cash.

Jeff Lucas: The net loss for the second quarter was $27 million, or a loss of $0.07 per share, compared to a net loss of $6 million, or a loss of $0.02 per share, in the first quarter. Now let's turn our attention to operating performance and put Bitcoin Meta. Our corporate cost of electricity for the quarter was $0.043 per kilowatt hour, an increase from $0.041 per kilowatt hour in the first quarter. Quarter over quarter, we benefited from the Canadian Revenue Agency ruling that allows us to recover the 15% DAT on our Canadian electricity purchases, which we calculated reduced our overall electricity cost by about 4 tenths of a cent per kilowatt hour. However, this savings was offset by higher electricity costs in Argentina as we shifted from lower summer rates to more expensive winter rates beginning in May and also a 3.2% increase in Canadian electricity rates effective April 1st.

Jeffrey Lucas: Net loss of the second quarter was $27 million, our loss of $7.00 per share; if they do a net loss of $6 million, our loss of $2.00 per share in the first quarter.

Speaker Change: Net loss for the second quarter with $27 million or a loss of seven cents per share compared to a net loss of $6 million or a loss of two cents per share in the first quarter.

Ben Ganyan: Turning to slide five. We are on track to deliver record hash rate growth and efficiency improvements in 2024. And we continue to execute on this growth plan in quarter two. Here you will see a snapshot of where we are and where we plan to be by year and 24 and year and 25. In Q2, we increase our 2025 power capacity by 220 megawatts with agreements in Paraguay and the US. We grew our hash rate 70 percent from Q1, and hash rate growth will continue to accelerate in the second half of 2024 and into 2025.

Jeffrey Lucas: Now let's turn our attention to operating performance and print big climatrix. Our corporate cost of electricity put a quarter with 4.3 cents per kilowatt hour. That's an increase in 4.1 cents per kilowatt hour in the first quarter. Quarter over quarter, we benefited from the Canadian Revenue Agency ruling that allowed us to recover the 15% DAT in our Canadian electricity purchases, which we calculated reduced our overall electricity cost by about 4.10% per kilowatt hour. This savings was offset by higher electricity costs in Argentina, as we shifted from lower summer to more expensive winter rates to the Canadian May and also a 3.2% increase in Canadian electricity rates effective April 1st.

Speaker Change: Now, let's turn our attention to operating performance and predict my metrics, our corporate costs about truth city for the quarter with 4.3 cents per kilowatt hour. That's an increase from 4.1 cents per kilowatt hour in the first quarter.

Unknown Executive: Our corporate cost of electricity for the quarter was 4.3 cents per kilowatt hour, an increase from 4.1 cents per kilowatt hour in the first quarter. Importantly, with our improvement in electrical efficiency from an average of 35 watts per terahash in the first quarter to 28 watts per terahash in the second quarter, our electricity cost per terahash decreased by 17 percent, from 3.6 cents per terahash per day to 3 cents per terahash per day.

Andre: Quarter over quarter, we benefited from the Canadian revenue agency ruling that allows us to recover that 15% D. A T euro Canadian electricity purchases, which we calculated reduced our overall interest cost by about four tenths of a cent per kilowatt hour.

Speaker Change: This savings was offset by higher electricity costs in Argentina, as we shifted from lower summer to murtha winter rates beginning of May and also at three 2% increase in Canadian electricity rates effective April one.

Ben Ganyan: I'll let Jeff speak to the financial results in more detail, but I would like to highlight that we have a strong balance sheet with a 195 million total liquidity at the end of Q2 over a thousand big points at the end of July in a 2024 growth plan that is fully funded.

Jeff Lucas: Importantly, with our improvement in electrical efficiency from an average of 35 watts per terahash in the first quarter to 28 watts per terahash in the second quarter, our electricity cost per terahash decreased by 17 percent, from 3.6 cents per terahash per day to 3 cents per terahash per day. Thus, our direct mining cost for Bitcoin in the second quarter was $30,600. Our total cash cost to mine Bitcoin was $47,300, and our revenue per Bitcoin was $65,800, resulting in a cash profit per Bitcoin of $18,500. Turning now to slide 14.

Jeffrey Lucas: Importantly, with our improvement in electrical efficiency from an average of 35 watts per tire hash in the first quarter to 28 watts per tire hash in the second quarter, our electricity cost per tire hash decreased by 17%, from 2.6 cents per tire hash per day to 3 cents per tire hash per day. Our direct mining cost per Bitcoin in the second quarter was $30,600. Our total cash cost to mine Bitcoin was $47,300, and our revenue per Bitcoin was $65,800, resulting in cash profit per Bitcoin of $18,500.

Speaker Change: Accordingly, with our improvement in electrical efficiency from an average of 35 watchman powerhouse in the first quarter.

Speaker Change: Okay, what's the terror as the second quarter, our electricity costs per tower has decreased by 17% from peak six cents per Terra has per day, the three <unk> per day our.

Ben Ganyan: Turning to slide six, let's talk a little bit more about our new US site Sharon. We're so excited about this site for a number of reasons. First, Sharon will be our first mega site in the US with over 120 megawatts of total capacity. This single location will increase our US footprint sevenfold from 20 megawatts to 140 megawatts and kickstart our aggressive US growth plan. Second, Sharon is located in Western Pennsylvania, which is close to major metropolitan areas like Cleveland, Pittsburgh, Philadelphia, New York, and is in close proximity to major fiber lines.

Unknown Executive: Our direct mining cost for Bitcoin in the second quarter was $30,600. Our total cash cost to mine Bitcoin was $47,300. For the second quarter, our adjusted EBIT was $12 million, or 28% of revenue, compared to $23 million, or 46% of revenue, in the first quarter. As we've noted in previous quarterly earnings calls, our adjusted EBITDA is very straightforward, being purely a measure of the cash profitability of our mining operations and the profit contribution of our Volta electrical subsidiaries.

Speaker Change: Our direct mining cost per bit coin in the second quarter was $30600 or total cash costs of mine bitcoin with $47300 and our revenue per bed claim at $65800 resolved and cash profit per bitcoin of $18500.

Jeffrey Lucas: Turning now to slide 14. For the second quarter, our electricity but that was $12 million, our 28% of revenue compared to $23 million, our 46% of revenue in the first quarter. The lower electricity but the larger it reflected the impact of the having, along with higher G&A expenses associated with the expansion of our operating activities. As we've noted in previous Corleon news calls, our electricity but that is very straightforward, being purely in measure of the cash profitability of our mining operations and the profit contribution of our Volta electrical subsidiary. As an IFIRS filer, we do not mark to market at Bitcoin holdings and we do not include this or any other balance sheet account valuation changes in our electricity, but that.

Andre: Turning now to slide 14.

Jeff Lucas: For the second quarter, our adjusted EBIT was $12 million, or 28% of revenue, compared to $23 million, or 46% of revenue in the first quarter. The lower adjusted EBITDA largely reflected the impact of the halving, along with higher GNA expense associated with the expansion of our operating activity. As we've noted in previous quarterly earnings calls, our adjusted EBITDA is very straightforward, being purely a measure of the cash profitability of our mining operations and the profit contribution of our Volta electrical subsidiaries.

Andre: For the second quarter, our adjusted EBITDA was $12 million or 28% of revenue compared to $23 billion.

Andre: A 46% of revenue in the first quarter.

Andre: The lower adjusted EBITDA, largely reflected the impact of the having along with higher G&A expense associated with the expansion of our operating activities.

Ben Ganyan: Pennsylvania is a conservative business friendly jurisdiction with a notably pro Bitcoin and pro energy democratic government. Third, the PGM grade is the largest wholesale electricity market in the US offering abundant access to competitively priced and flexible power that is attracted for multiple uses, including Bitcoin mining, energy trading, and even HPC and AI. Fourth, for Bitcoin mining specifically, the site supports over 8x of hash with the latest generation miners, and there are significant pertailment demand response and energy trading opportunities available to effectively hedge your energy cost and bring down the total cost of power. Further, as PGM is rapidly and adding renewable capacity and significantly contributing to the decarbonization of the grid, these grid stabilization programs make the site both economically and environmentally sustainable.

Andre: As we've noted in previous quarterly earnings calls our adjusted EBITDA is very straightforward being purely a measure of the cash profitability of our mining operations and the profit contribution of our broader electrical subsidiary.

Jeff Lucas: As an IFRS filer, we do not mark to market our Bitcoin holdings, and we do not include this or any other balance sheet account valuation changes in our adjusted EBITDA. Stated simply, our adjusted EBITDA of $12 million in this quarter equates to cash profit per Bitcoin of $18,500 multiplied by the 614 Bitcoin we mined during the quarter, plus approximately $300,000 of profit from our Volta electrical subsidiary. Turning now to slide 15.

Speaker Change: As in I F. I R. S. Filer, we do not mark to market a bit quite holdings and we do not include this or any other balance sheet account valuation changes in our adjusted EBITDA.

Jeffrey Lucas: State it simply, our electricity but that of $12 million in this quarter equates to cash profit per Bitcoin of $18,500 multiplied by the $614 Bitcoin we mined during the quarter plus the profit, $300,000 a profit, we're a Volta Electrical subsidiary.

Andre: Stated simply our adjusted EBITDA of $12 million in the quarter equates to cash profit per bitcoin of $18500 multiplied by the 614 bitcoin, we mined during the quarter plus approximately $300000 of profit ROE voltage network subsidiary.

Jeffrey Lucas: Terry.

Jeffrey Lucas: Turning now to slide 15. At June 30th, we had total liquidity of $195 million, consisting of cash of $139 million in Bitcoin value that took the $77 million. As he's noted previously, our program to achieve our year-end 2024 targets of $21X of hash and $21.50 is fully funded. At July 31st, we held $1,016 Bitcoin, up from $905 Bitcoin at the end of June. Our higher Bitcoin treasure balance reflects our solid cash position in strong cash flow from operations. Further, our synthetic hotline continues to grow, increasing from $280 equivalent Bitcoin at the end of June to $333 Bitcoin currently.

Speaker Change: Turning now to slide 15.

Jeff Lucas: At June 30th, we had total liquidity of $195 million, consisting of cash of $139 million and Bitcoin valued at $57 million. As you've noted previously, our program to achieve our year-end 2024 targets of 21 exahash and 21 watts per terahash is fully funded. At July 31st, we have 1016 Bitcoin, up from 905 Bitcoin at the end of June. Our higher Bitcoin treasury balance reflects our solid cash position and strong cash flow from operations.

Speaker Change: At June 30, we had total liquidity of $195 million, consisting of cash of $139 million and big coin valued at $57 million.

Ben Ganyan: Given these significant advantages, we are actively engaged in assessing additional new opportunities to expand our presence within the PGM region. In addition, based on numerous conversations with potential partners, we believe the site is very well suited for HPC and AI. One, the PGM market has very liable power and the grid is much less prone to the weather-related stresses that you'll see in Texas. Two, accessible fiber lines support connectivity and redundancy in close proximity to the four major metropolitan areas I mentioned previously.

Speaker Change: As we've noted previously our program to achieve our year end 2024 targets with 21 exit hash and put them on watch with Terra has is fully funded.

Ben Ganyan: Three, the site is located in a deregulated market and is not tied to any one-power provider providing unparalleled flexibility. Four, we have not yet started construction on the site and so we maintain 100% flexibility in terms of the build out plan. We have a clean slate and would not have to incur retrofitting expenses. This also allows for an expedited deployment schedule capable of meeting AI customers aggressive timelines.

Speaker Change: At July 31, we are 1016 bitcoin up from 905 big coin at the end of June.

Unknown Executive: Our higher bitcoin treasury balance reflects our solid cash position and strong cash flow from operations. Further, our synthetic hodl continues to grow, increasing from 280 equivalent Bitcoin at the end of June to 333 Bitcoin currently. Moving on to slide 16, I'll turn the call back over to Ben for a quick summary.

Speaker Change: <unk> hired a big client Treasury balance reflects our solid cash position and strong cash flow from operations further synthetic apparel continued to grow increasing from 208 equivalent pick Brian at the end of June to 333 Breakpoint currently.

Jeff Lucas: Further, our synthetic hodl continues to grow, increasing from 280 equivalent Bitcoin at the end of June to 333 Bitcoin currently. As a reminder, under our synthetic hodl strategy, we utilize excess Bitcoin generated each month to fund our growth at a low cost of capital, while maintaining upside potential by applying a portion of the proceeds towards the purchase of long-dated Bitcoin columns. In regard to our ATM facility, which we initiated in March and used solely to fund our growth initiatives and fleet upgrade, we raised $136 million in the second quarter. Since June 30th, we have raised an additional $68 million under the facility. Moving on to slide 16, I'll turn the call back over to Ben for a quick summary.

Jeffrey Lucas: As a reminder, under our synthetic hotline strategy, we utilized X's Bitcoin generate each month to fund a growth at a low cost of capital while maintaining up high potential by applying a portion of the proceeds towards the purchase of long-dated Bitcoin call options. In regard to our ATM facility, which we initiated in March and used solely to fund our growth initiatives in fleet upgrade, we raised $136 million per second quarter. Since June 30th, we have raised an additional $16 million under the facility.

Speaker Change: As a reminder, under our synthetic apparel strategy, we utilized excess bitcoin generated each month to fund that growth at a low cost of capital, while maintaining upside potential by applying a portion of the proceeds towards the purchase of long dated bitcoin call options.

Speaker Change: In regard to our ATM facility, which we initiated in March and you solely to fund our growth initiatives and fleet upgrade we raised $136 million in the second quarter.

Speaker Change: Since June 30, we raised an additional $6 million to $8 million under the facility.

Ben Danyan: Moving down to $516, I turn the call back over to Ben for a quick summary.

Speaker Change: Moving on to Slide 16, I'll turn the call back over to Ben for a quick summary.

Ben Gagnon: Thanks, Jeff. Turning to slide 17.

Ben Gagnon: Thanks, Jeff turning to slide 17.

Ben Danyan: Thanks, Jessica. Turning to slide 17.

Ben Ganyan: We have in fact received so much interest over the past few weeks for you with sites in this 100 megawatts speed spot that I'd like to spend a minute here discussing the HPC and AI opportunity. Lee, Turning to Slide 7. The HPC and AI opportunity is a very exciting one that has been monopolizing the headlines for the past few months, and rightfully so. Bloomberg and UBS cite a total addressable market for the AI Cloud GPU services of $28 billion in 2022, growing to $420 billion in 2027 with related AI infrastructure growing eightfold from $26 billion to $195 billion over the same time period.

Ben Danyan: Before opening up the call for questions, I want to drive home a few key points. We continue to dramatically alter our operating profile via ongoing fleet upgrades and our geographic expansion. This transformation will only accelerate as I work with the team to continually diversify our assets. We are taking a close look at all of our measurements and evaluating several opportunities to expand beyond Bitcoin mining, including HPC and AI. We have industry leading Bitcoin mine for ex a half and industry leading the efficiency. We will continue to distinguish ourselves by improving our operation efficiency and growing our profitability in this highly competitive industry.

Ben Gagnon: Before opening up the call for questions, I want to drive home a few key points. We continue to dramatically alter our operating profile via our ongoing fleet upgrades and our geographic expansion. This transformation will only accelerate as I work with the team to continually diversify our efforts. We are taking a close look at all of our megawatts and evaluating several opportunities to expand beyond Bitcoin mining, including HPC and AI. We have industry leading Bitcoin mining hardware for ExaHash and industry leading efficiency.

Ben Gagnon: Before opening up the call for questions I want to drive home a few key points.

Ben Gagnon: We continue to dramatically alter our operating profile via our ongoing fleet upgrades and our geographic expansion.

Ben Gagnon: This transformation will only accelerate as I worked with the team to continually diversify our assets. We are taking a close look at all of our megawatts and evaluating several opportunities to expand beyond between mining, including HBC NII.

Speaker Change: We have the industry, leading bitcoin mine for acts of hash and industry leading efficiency.

Ben Gagnon: We will continue to distinguish ourselves by improving our operational efficiency and growing our profitability in this highly competitive industry. I am very confident in our growth process and look forward to updating you as we, one, continue to execute on our 2024 growth plan, and, two, continue to build out our team and expertise to ensure we are well positioned to capture additional market share, both within Bitcoin mining, as well as within synergistic and additive business lines. With that, I will hand the call back to the operator for Q&A. Thanks for watching, and don't forget to like, share, and subscribe to our channel.

Unknown Executive: We will continue to distinguish ourselves by improving our operational efficiency and growing our profitability in this highly competitive industry. And we look forward to updating you as we, one, continue to execute on our 2024 growth plan, and, two, continue to build out our team and expertise to ensure we are well positioned to capture additional market share, both within Bitcoin mining, as well as within synergistic and additive business lines.

Ben Gagnon: We will continue to distinguish ourselves by improving our operational efficiency and growing our profitability in this highly competitive industry.

Ben Ganyan: We own an operator portfolio of high quality energy assets that are currently monetized for Bitcoin mining, but when we take a step back and look at how we get the most value in utilization out of this portfolio, we believe that HPC and AI has real potential. Recent HPC and AI deals are both seen revenues from approximately $140 to $210 per megawatt out. These are potentially very attractive and stable, high margin revenue streams not correlated to Bitcoin prices.

Ben Danyan: I am very confident in our growth prospects and look forward to updating you as we one continue to execute on our 2024 growth plan and two continue to build out our team and expertise to ensure we are well positioned to capture additional market share both within Bitcoin mining as well as within synergistic and added business lines.

Ben Gagnon: I'm very confident in our growth prospects and look forward to updating you as we one continue to execute on our 2024 growth plan.

Ben Gagnon: To continue to build out our team and expertise to ensure we are well positioned to capture additional market share both within bitcoin mining as well as within synergistic and additives business lines.

Operator: With that, I will hand the call back to the operator for Q&A.

Speaker Change: With that I will hand, the call back to the operator for Q&A.

Operator: Certainly. Everyone at this time will be conducting a question and answer session. If you have any questions or comments, please press star 1 on your phone at this time. We do ask that while you are posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press star 1 on your phone. Your first question is coming from Mike Colonnese from H.C. Wainwright. Your line is live.

Operator: Certainly, everyone. At this time, we conducting a question and answer session. If you have any questions or comments, please press star one on your phone at this time. We do ask that while posing your question, please pick up your handset if you're listening on speaker phone to provide optimum sound quality. Once again, if you have any questions or comments, please press star one on your phone.

Speaker Change: Certainly everyone. At this time, we are conducting a question and answer session. If you have any questions or comments. Please press star one on your phone at this time.

Ben Ganyan: Comparatively, Bitcoin mining with T-21 miners yesterday on August 7, yielded approximately $80 per megawatt hour. Properly timed, we still believe that investments in Bitcoin mining provide a better return on invested capital compared to HPC and AI due to their materially lower capital requirements and outside exposure to Bitcoin prices. That said, we believe that the most attractive opportunity is a combination of the two, with a potential integration in Q4 2025 or Q1 2026.

Speaker Change: We do ask about posing your question. Please pickup your handset if you're listening on speaker phone to provide optimum sound quality.

Speaker Change: Once again, if you have any questions or comments. Please press star one on your phone.

Michael Colonnese: Your first question is coming from Mike Colonies from HC Wainwright. Your line is live. Hi, good morning, guys, and thanks, and congratulations again on your position with the company and all the progress the team has made with these cleanup grazing growth strategies. You're really great to see here. So then for me, my first question and follow-up really around, you know, market trends here. You always have great insights. So I wanted to get your views on hash prices here, which just at all time highs, excuse me, all time lows last week at around 3.5 cents a terahash.

Speaker Change: Your first question is coming from Mike colonies from H C. Wainwright Your line is alive.

Mike Colonnese: Hi. Good morning, guys. And Ben, congratulations again on your new position with the company and all the progress the team has made with these fleet upgrades and growth strategy. It's really great to see you here. So, Ben, for me, my first question and follow-up are really around market trends here. You always have great insights. So, I wanted to get your views on hash prices here, which just hit all-time highs – excuse me, all-time lows last week at around 3.5 cents a terahash.

Mike Colonies: Hi, Good morning, guys and congratulations again on either your position with the company.

Mike Colonies: All of the progress the team has made with these fleet upgrades and growth strategy really great to see here. So for me My first question and follow up really around.

Ben Ganyan: This would potentially provide us increased diversification and exposure to varied revenue streams at what this has historically been the top of the Bitcoin bull market cycle and lines with HPC customers' timelines. We are still in the early stages of evaluating the opportunities here, but we believe that our North American sites have the potential to be very well suited for these activities. To help us evaluate and develop this vertical, we are currently recruiting for HPC and AI talent, ensuring we have the expertise to capitalize on this huge opportunity.

Speaker Change: Market trends here, you always have great insights. So I wanted to get your views on house prices here, which just hit all time highs excuse me all time lows last week at around three five cents of Terra how do.

Mike Colonnese: Do you think we've reached the bottom here? And as a follow-up to that, how does the current market environment influence your decision and timing to execute on some of these non-mining-related opportunities in the near term, if at all?

Ben Danyan: Do you think we've reached the bottom here?

Speaker Change: Do you think we've reached the bottom here and as a follow up to that how does the current market environment influence your decision and timing to execute on some of these non mining related opportunities over the near term if at all.

Ben Danyan: And as the follow-up to that, how does the current market environment influence your decision in timing to execute on some of these non-mining related opportunities over the near term, if at all?

Ben Danyan: Thanks, Mike. Yeah, it's a great question. Obviously, the pullback in Bitcoin price has an effect on hash price, and something that we've been talking about for a very, very long period is hash cost. Simply put, that's a very simple measure. We're combining the watt-patera hash efficiency of the miners, or pleats, combined with the electricity cost that's powering it. And when you look at our 4.3 cents average electricity cost that we had in Q2, and you combine it with the 25 lost Pratera hash lander decoder, that gives you a direct hash cost around 2.7 cents. So even with those pullbacks, we still remain cash low positives in our operations on a direct, on a direct, you know, mining basis.

Speaker Change: Thanks, Mike, Yes, it's a great question.

Ben Gagnon: Thanks, Mike. Yeah, it's a great question. You know, obviously, the pullback in Bitcoin price has an effect on hash price. And, you know, something that we've been talking about for a very, very long time is hash cost, right? Simply put, that's a very simple measure where we're combining the watt per terahash efficiency of the miners or our fleet, combined with the electricity costs that are powering it.

Speaker Change: Obviously the.

Speaker Change: The pullback in Bitcoin price has some effect on house price and something that we've been talking about for a very very long period is cash cost right simply put that's a fair.

Ben Ganyan: Additionally, our very active corporate development team was constantly assessing new energy assets, for now evaluating all opportunities through multiple lenses, including the HPC and AI lens. The key thing to drive home here is that HPC and AI will not replace Bitcoin mining for us, but rather seek to complement our current operations in order to create the most upside and value for our shareholders in line with historical market cycles.

Speaker Change: Simple measure where we're combining.

Speaker Change: The Walker tallahatchie efficiency of the miners or our fleet combined with the electricity costs, that's powering it and when you look at our $4 three.

Speaker Change: Average electricity costs that we had in Q2 and you combine it with the 25 <unk>. We ended the quarter that gives you a direct cash cost around $2.07. So even with those pullbacks, we still remain cash flow positive in our operations on a direct on a direct mining basis.

Ben Gagnon: And when you look at our 4.3 cents average electricity costs that we had in Q2, and you combine it with the 25 watts per terahash when we entered the quarter, you know, that gives you a direct hash cost around 2.7 cents. So even with those pullbacks, we still remain cash flow positive in our operations on a direct mining basis. When we look towards, you know, how the market is responding, what we've said for a long time is that we think the market starts responding in between $0.04 and $0.05. And that's exactly what we've seen happen.

Ben Ganyan: Moving to slide 8, I would now like to switch gears and tell you about our progress to 21x the hash and 21 hospital hash here today. What we did experience temporary delays in hitting our mid-year target 12x a hash, we did hit our efficiency target 25 hospital hash, representing a 19% improvement quarter over quarter, and a 29% improvement year-to-date. Lee, the 12x-the-hash milestone was delayed due to some temporary equipment delays, as well as a batch of nearly 3000 miners representing across 700 petahasht that underperformed and even low temperatures.

Ben Danyan: When we look towards, you know, how the market is responding, what we said for a long time is we think that the market starts responding in between 4 and 5 cents. And that's exactly what we've seen happen. If you keep track of kind of how the blocks are progressing and what that implies for difficulty changes at the end of the cycle, what you can see is that on Friday, prior to the major pullback, we were expecting a difficulty adjustment, kind of around negative 1%, and now we're trending significantly upwards, I think, of somewhere between 3 and 4%.

Speaker Change: When we look towards how the market is responding.

Unknown Executive: What we've said for a long time is that we think that the market starts responding in between $0.04 and $0.05. And that's exactly what we've seen happen.

Speaker Change: What we said for a long time is we think that the market starts to respond team and between four and five star and that's exactly what we've seen happen. If you keep track of kind of how the blocks are progressing and what that implies for difficulty changes at the end of the cycle, which you can see is that on Friday prior to the may.

Unknown Executive: If you keep track of kind of how the blocks are progressing and what that implies for difficulty changes at the end of the cycle, what you can see is that on Friday, prior to the major pullback, we were expecting a difficulty adjustment kind of around negative 1%. And now we're trending significantly upwards. I think it's somewhere between 3% and 4%.

Ben Gagnon: If you keep track of kind of how the blocks are progressing and what that implies for difficulty changes at the end of the cycle, what you can see is that on Friday, prior to the major pullback, we were expecting a difficulty adjustment of kind of around negative 1%. And now we're trending significantly upwards. I think it's somewhere between 3% and 4%.

Speaker Change: Pull back we were expecting a difficulty adjustment kind of around negative 1% and now we are trending significantly upwards I think its somewhere between three and 4%. This is happening halfway through the difficulty adjustment cycle, which means that the half that impact that requires that much more hatch rate in order to.

Unknown Executive: This is happening halfway through the difficulty adjustment cycle, which means that to have that impact, it requires that much more hash rate in order to have a meaningful reduction. So, yeah, now we're between negative 3.8 and negative 4.7. So the market is responding by either turning off miners or underclocking those miners. We think that with our fleet upgrade and our competitively priced electricity, we've positioned ourselves very, very well and have shielded ourselves from a lot of these events.

Ben Ganyan: The delayed equipment has since been received and installed, and these issues have been addressed with Bitming and are not expected to be present in future batches of miners, including our August deliveries. Bitming is also rapidly replacing these 3000 miners with new units, at their expense. These new miners are expected to arrive and be installed in three weeks. Our facility upgrades have also progressed rapidly, and nearly all of our sites in Canada have now been upgraded, resulting in up to a 52% improvement in energy efficiency per site, and a 29% improvement in energy efficiency across the company.

Ben Danyan: This is happening halfway through the difficulty adjustment cycle, which means that to have that impact, it requires that much more hash rate in order to have, you know, a meaningful reduction. So yeah, now we're between negative 3.8 and negative 4.7. So the market is responding by either turning off miners or underclocking those miners.

Ben Gagnon: This is happening halfway through the difficulty adjustment cycle, which means that to have that impact, it requires that much more hash rate in order to have a meaningful reduction. So yeah, now we're between negative 3.8 and negative 4.7. So the market is responding by either turning off miners or underclocking those miners. We think that with our fleet upgrade and our competitively priced electricity, we've positioned ourselves very, very well and have shielded ourselves from a lot of these events.

Speaker Change: Half.

Speaker Change: <unk> reductions yet now we're between negative $3 eight a negative $4 seven so the market is responding.

Speaker Change: By either turning off miners or under clocking those miners, we think that with our fleet upgrade and our competitively priced electricity, we've positioned ourselves very very well and have shielded ourselves from a lot of these events.

Ben Danyan: We think that with our fleet upgrade and our competitively priced electricity, we've positioned ourselves very, very well and have shielded ourselves from a lot of these, you know, events. And, you know, short-term Bitcoin price is going to do what it's going to do, but long-term, we believe that our growth and hash price is going to be well justified. And we're potentially, if the historical cycles play out, we're going to still see significant higher hash prices in the months to come. That's really great color.

Unknown Executive: And short-term, the Bitcoin price is going to do what it's going to do. But long-term, we believe that our growth and hash price is going to be well-justified. And potentially, if the historical cycles play out, we're going to still see significantly higher hash prices in the months to come.

Ben Gagnon: And short term, the Bitcoin price is going to do what it's going to do. But long term, we believe that our growth and hash price is going to be well justified. And potentially, if the historical cycles play out, we're going to still see significantly higher hash prices in the months to come.

Speaker Change: Short term <unk> prices.

Speaker Change: Going to do what it's going to do but long term, we believe that our growth and ash price is going to be well justified.

Ben Ganyan: With seven of 11 data center upgrades now complete, the only remaining facilities to be upgraded are Villarica, Megad, Washington, and Argentina. PDUs are currently being shipped to Villarica and Megad, and new T-21 miners are scheduled to be sent in the coming days, with upgrades at both sites scheduled to be completed in September. Words are also progressing in Washington, which is both a data center upgrade and an expansion. Final works are scheduled to be completed in November.

Speaker Change: And.

Speaker Change: Potentially if the historical cycles play out we're going to still see significantly higher highest prices.

Speaker Change: In the months to come.

Speaker Change: That's really great color and just as the follow up there does this influence or accelerate your decision to start to look at executing some of these non mining related opportunities in the pipeline be it HBC AI.

Ben Gagnon: That's really great color. And just as the follow-up there, does this influence or accelerate your decision to start to look at executing some of these non-mining related opportunities in the pipeline, be it, you know, HPC, AI?

Ben Danyan: And just as the follow-up there, does this influence or accelerate your decision to start to look at executing some of these non-lining related opportunities in the pipeline, be it, you know, HPCAI? When we look at the HPCAI opportunity, you know, we see a lot of potential here to achieve a high value revenue stream, but, you know, just to be clear that the timelines for integrating and building now that infrastructure is at least 12 months away. Personally, I think that is actually a very advantageous timeline because, you know, when you look at the value that you would get out of, you know, a T21, for instance, with current hash price at $4, it's roughly $80 a megawatt hour. But if hash price were to go up to $0.8, it would be $155 a megawatt hour.

Speaker Change: When we look at the HBC and AI opportunity.

Ben Gagnon: When we look at the HPC and AI opportunity, you know, we see a lot of potential here to achieve a high-value revenue stream. But, you know, just to be clear that the timelines for integrating and building out that infrastructure are at least 12 months away. Personally, I think that is actually a very advantageous timeline, because when you look at the value that you would get out of a T21, for instance, with the current hash price at $0.04, it's roughly $80 a megawatt hour.

Ben Ganyan: Lastly, in Argentina, we are currently working on a revised data center upgrade to marginally expand the total capacity of the site from 54 to 62 megawatts. With this expansion to 62 megawatts, we now expect this upgrade to be finalized in December or January. The first batch of PDUs and miners are being shipped to Argentina this month, and we are scheduled to begin scene improvements in hash rate and efficiency as early as October.

Speaker Change: We see a lot of potential here to.

Speaker Change: To achieve a high value revenue stream, but just to be just to be clear that the timelines for integrating and building out that infrastructure is at least 12 months of west.

Speaker Change: Personally I think that is actually a very advantageous timeline because.

Speaker Change: When you look at the value that you would get out of a $2 21 for instance, with.

Ben Ganyan: On minor deployments, we have now deployed approximately 48% or 42,000 of the 88,000 miners that we ordered for 2024. These miners were mostly deployed in facility upgrades, and this replacement of our older, less efficient hardware is largely responsible for our rapid improvements in energy efficiency year-to-date. Roughly half of the remaining miners will be deployed in the four remaining data center upgrades, just mentioned. Further improving our energy efficiency down to our target of 21 watts per tear hash. The other half will be deployed in our new constructions, and will be responsible for most of the remaining hash rate growth to 21x hash.

Speaker Change: With current ash price at <unk>, it's roughly $80 a megawatt hour, but Apache price were to go up to <unk>.

Ben Gagnon: But if the hash price were to go up to $0.08, it would be $155 a megawatt hour. If it went up to $0.12, it would be $230 a megawatt hour. And if it went up to $0.16, it would be $31, $310 a megawatt hour. So, you know, there's still a lot of potential for Bitcoin prices and Bitcoin mining economics in a Bitcoin bull run. And we don't necessarily want to, you know, rush and pay a premium to diversify away from that.

Speaker Change: $155 a megawatt hour if it went up to 12, it will be $230 a megawatt hour and if it went up to 16 sensor it would be $31 $310 a megawatt hour.

Ben Danyan: If it went up to $12, it would be $230 a megawatt hour. And if it went up to $0.15, it would be $31, $310 a megawatt hour. So, you know, there's still a lot of potential for Bitcoin prices and Bitcoin mining economics and a Bitcoin bull run. And we don't necessarily want to, you know, rush and pay a premium to diversify away from that, but continuing with the same timelines, you know, of roughly 12-ish plus months really means that we might be able to integrate these. Deversified Revenue Strains, towards what we would expect to be the top of the Bitcoin bull market cycle, according to historical trends.

Speaker Change: No.

Speaker Change: Still a lot of potential for bitcoin prices in bitcoin mining economics, and a decline bull run and we don't necessarily want to.

Speaker Change: Rush and pay a premium to diversify away from that but continuing with the same timelines.

Ben Gagnon: But continuing with the same timeline, you know, of roughly 12-ish plus months really means that we might be able to integrate these diversified revenue streams towards what we would expect to be the top of the Bitcoin bull market cycle, according to, you know, historical trends. And that timeline is something that I think is very, very compelling.

Speaker Change: Roughly 12 ish plus mines.

Speaker Change: Really means that we might be able to integrate these.

Ben Ganyan: In terms of construction progress, we have made significant strides to date in 2024. I am pleased to report that our 70 megawatts site at Paso Pay is now fully online, and is our largest site by both megawatts and hash rate. Our 12 megawatts expansion vehicle model is well underway, and is on track to be energized in September. In Iguazu, we started the year with 100 megawatts contracted, and has since doubled the contract capacity to 200 megawatts. This site will represent the largest site in our portfolio in 2025. In terms of construction progress, we have now completed all of the necessary purchase orders and broken ground on seven of the warehouses.

Speaker Change: Diversified revenue streams towards what we would expect to be the top of the <unk> market cycle. According to historical trends and that timeline is something that I think is very very compelling.

Ben Danyan: And that timeline is something that I think is very, very compelling.

Ben Danyan: Great.

Unknown Executive: Great Thank you for taking my questions.

Speaker Change: Great. Thank you for taking my questions.

Ben Gagnon: Great Thank you for taking my questions.

Michael Colonnese: Thank you for taking my questions.

Ben Danyan: Thanks, Mike.

Mike Colonies: Thanks, Mike.

Operator: Thank you.

Speaker Change: Thank you. Your next question is coming from Mike Grondahl from Northland Securities. Your line is live.

Operator: Thank you. Your next question is coming from Mike Grondahl from Northland Securities. Your line is live.

Operator: Thank you. Your next question is coming from Mike Grondahl from Northland Securities. Your line is live.

Michael Grondahl: Your next question is coming from Mike Grondahl, from Northland Securities. Your line is live. Hey guys, thanks, and congrats, Ben. On the HPC AI strategy, what pieces do you still have to put in place there to kind of execute on that? You talked about recruiting a team. Do you have you had discussions with hyperscalers and kind of give us a sense of the timeline and some of the pieces you still need to put together.

Michael Grondahl: Hey guys, thanks and congrats, Ben. Um, on the HPC AI strategy... Do you have had discussions with hyperscalers and kind of give us a sense of the timeline and some of the pieces you still need to put together?

Michael Grondahl: Hey guys, thanks and congrats, Ben. Um, on the HPC AI strategy... What pieces do you still have to put in place there to kind of execute on that? You talked about recruiting a team. Do you have had discussions with hyperscalers and kind of give us a sense of the timeline and some of the pieces you still need to put together?

Mike Grondahl: Hey, guys, Thanks, and congrats Ben on.

Speaker Change: On the H P C AI strategy.

Mike Grondahl: What pieces do you still have to put in place there to kind of execute on that you talked about recruiting the team.

Speaker Change: Did you have you had discussions with hyper scaler and kind.

Ben Ganyan: We expect 100 megawatts to come online in December, contributing approximately 5x hash with 20 watts per tear hash efficiency, and an additional 100 megawatts to come online in the first half of 2025, turning to slide nine. I would like to share with you some beautiful aerial photos of Igualzu that show the tremendous progress we have made. Four months ago, this was just a soy field. And in five months, it is expected to be between one half and three quarters of a percent of the entire Bitcoin network powered entirely by renewable energy.

Speaker Change: Kind of give us a sense of the timeline and some of the pieces you still need to put together.

Ben Danyan: Thanks, Mike. Yeah, it's a great question. You know, we are great builders and operators of electrical infrastructure. So when it comes to building out the facility and building out the substations and doing the interconnection work and doing the maintenance, we're fantastic at that.

Speaker Change: Thanks, Mike, Yes, it's a great question.

Ben Gagnon: Thanks, Mike. Yeah, it's a great question. You know, we are great builders and operators of electrical infrastructure. So when it comes to building out the facility and building out the substations and doing the interconnection work and doing the maintenance, we're fantastic at that. The area where we need to bolster, you know, our bench here is in the area of HPC and AI, specifically because the data centers required for HPC are fundamentally different than the Bitcoin data centers that we are specialized at building and operating.

Speaker Change: We are great builders and operators.

Unknown Executive: electrical infrastructure. So when it comes to building out the facility and building out the substations and doing the interconnection work and doing the maintenance, we're fantastic at that. The area where we need to bolster, you know, our bench here is in the area of HPC and AI, specifically because the data centers required for HPC are fundamentally different than the Bitcoin data centers that we are specialized in building and operating. So we do need to bring in more talent in order to help us properly evaluate and develop these opportunities, which we're actively recruiting for now.

Speaker Change: Electrical infrastructure. So when it comes to building out the facility and building out the Substations and doing the interconnection work doing the maintenance were fantastic at that.

Ben Danyan: The area where we need to bolster, you know, our bench here is the area of HPC AI specifically because the data centers required for HPC are fundamentally different than the Bitcoin data centers, you know, that we are specialized at building and operating. So we do need to bring in more talent in order to help us properly evaluate and develop these opportunities, which we are actively recruiting for now. But this is more specifically regarding the data center engineering for HPC as well as the data center management. It's going to require different systems, different technology, different equipment, different software.

Speaker Change: The area, where we need to bolster our bench here is the area of HBC and AI, specifically, because the datacenters required for HTC are fundamentally different than the deploying data centers that we are specialized at building and operating.

Ben Ganyan: From breaking ground to energization, the construction schedule is only nine months. Far faster than what is possible in the U.S. The rapid scale of which we are developing the site is unparalleled and is an incredible testament to our amazing team and capabilities.

Ben Gagnon: So we do need to bring in more talent in order to help us properly evaluate and develop these opportunities, which we're actively recruiting for now. But this is more specifically regarding data center engineering for HPC, as well as data center management. It's going to require different systems, different technology, different equipment, and different software. And those are things that we either need to bring in-house or partner with a third party. We have had numerous discussions with both hyperscalers and third parties to work on different projects.

Speaker Change: So we do need to bring in more mortality in order to help us properly evaluate and develop these these opportunities, which we're actively recruiting for now.

Speaker Change: But this is more specifically regarding the datacenter engineering for HCC as well as the data Center management, it's going to require different systems different technology different equipment different software.

Unknown Executive: But this is more specifically regarding data center engineering for HPC, as well as data center management. It's going to require different systems, different technology, different equipment, different software. And those are things that we either need to bring in house or partner with a third party. We have had numerous discussions with both hyperscalers and third parties to work on different projects, but we're still in the early days of evaluating that.

Ben Ganyan: Turning to slide 10.

Ben Ganyan: I'd like to take a quick moment to welcome Danny Philip toward board of directors. Danny is a recognized expert in the blockchain technology field and an accomplished financial executive with an extensive background in audit, public company reporting and MNA. Her skillset will be invaluable as we continue to drive organic and inorganic growth. Danny represents our fifth director, four of which are now independent.

Ben Danyan: And those are things that we either need to bring in house or partner with a third party. We have had numerous discussions with both hyperscalers and third parties, you know, to work with on different projects. But we're still in the early days of evaluating that. And I think for us, that timeline that most of the HPC and AI and hyperscalers are targeting of kind of a Q4 25, maybe Q1 2026 is ample timeline for us to bring the proper expertise into their farms, integrate it into our team, evaluate the various partners to be working with and identify and start working towards, you know, the right deployment at the right locations.

Speaker Change: Those are things that we either need to bring in house or partner with a third party.

Speaker Change: <unk> had numerous discussions with both hyper scaler and third parties.

Speaker Change: Work with on different projects.

Speaker Change: But we're still in the early days of evaluating that and I think for us that timeline that most of the HBC and AIA and hyperscale or targeting a kind of a Q4 'twenty five maybe Q1 2026 is ample timeline for us to bring the proper expertise into their farms integrated into our team.

Unknown Executive: And I think for us, that timeline that most of the HPC and AI and hyperscalers are targeting of kind of a Q4 25, maybe Q1 2026, is ample timeline for us to bring the proper expertise into their arms, integrate it into our team, evaluate the various partners to be working with, and identify and start working towards, you know, the right deployment at the right location for a target, maybe at the end of next year or the beginning of next year, or beginning of 2026, sorry.

Ben Gagnon: But we're still in the early days of evaluating that. And I think for us, that timeline that most of the HPC and AI and hyperscalers are targeting of kind of a Q4 25, maybe Q1 2026, is ample timeline for us to bring the proper expertise into their arms, integrate it into our team, evaluate the various partners to be working with, and identify and start working towards, you know, the right deployment at the right location for a target, maybe at the end of next year or the beginning of next year or beginning of 2026.

Ben Ganyan: Turning to slide 11. I will close out with a summary of our impressive growth stats and trajectory for 2024 and 2025. In 2024, we will be tripling our hash rate, increasing our operating capacity by 83% and improving our efficiency by over 40%. These are industry leading benchmarks and numbers that I am incredibly proud of. We will continue to build on this growth in 2025. We've already added an additional 220 megawatts to our energy portfolio, supporting over 35X of hash.

Speaker Change: <unk> the various partners to be working with.

Speaker Change: Identify and start working towards the right deployment at the right locations for a target maybe at the end of next year or the beginning of next year.

Ben Danyan: And for a target, maybe at the end of next year or the beginning of next year or the beginning of 2026, sorry. Got it.

Speaker Change: Beginning of 2026, sorry.

Speaker Change: Got it and then just one.

Ben Danyan: And then just one more, you know, with the 120 megawatts in Pennsylvania, do you have a, you know, a goal, something aspirational? Like you would, I don't like to get another hundred, another 300 of committed megawatts in 25 in the US. How do we think about what you want to do next in the US? Yeah, it's a great question. You know, when you look at our portfolio of energy assets, what you'll see is that right now the US is very underrepresented. You know, we only have currently active and hashing the 20 megawatts that we have in Washington, but we do have I think the best developed international portfolio.

Speaker Change: One more.

Michael Grondahl: got it and then just, you know, with the 120 megawatts in Pennsylvania. Do you have a goal, something aspirational, like you would, I don't know, like to get another hundred, another three hundred of committed megawatts in twenty five?

Speaker Change: With the 120 megawatts in Pennsylvania.

Ben Ganyan: And stay tuned because there is more to come.

Speaker Change: Do you have a.

Jeffrey Lucas: And with that, I will turn to slide 12 and turn the call over to CFO Jeff Lucas. Thanks, Ben, and thanks everyone for joining us today. I want to underscore the great advantage of having Ben as our CEO. As a long-standing veteran of Bitfonds in the architect of our growth and profitability improvement programs, we are under his leadership position to develop and act quickly in our initiatives. In such a fast evolving environment, this is essential to keeping Bitfonds on the cutting edge of our industry.

Speaker Change: Our goal something aspirational like you would.

Speaker Change: Like to get another hundred another 300 of committed megawatts in 'twenty five in.

Speaker Change: In the U S. How do we think about what do you want to do next in the U S.

Unknown Executive: Yeah, it's a great question. You know, when you look at our portfolio of energy assets, what you'll see is that right now, the US is very underrepresented. You know, we currently have only 20 megawatts that we have in Washington active and hashing. But we do have, I think, the best developed international portfolio. What we'd like to do next year is rebalance that portfolio with a much greater emphasis on the United States, but we're not going to.

Speaker Change: Yes, it's a great question when you look at our portfolio of energy assets, what Youll see is that right now the U S. It is very underrepresented.

Jeffrey Lucas: Now let's begin with an overview of our second quarter financials. Second quarter revenue of 42 million dollars was down 16% quarter over quarter in up 17% year over year. The changes to primarily to the decrease in block rewards on April having. During the quarter, we earned 614 Bitcoin, 35% fewer quarter over quarter, primarily the results of the having and a 10% increase in average network difficulty. Mining revenue was 40 million dollars compared to 49 million dollars in the prior quarter.

Speaker Change: We only have currently have did and hashing. The 20 megawatts that we have in Washington, but we do have I think the best developed international portfolio, what we'd like to do next year is rebalanced that portfolio with a much greater emphasis on the United States, but we're not going to.

Ben Danyan: What we'd like to do next year is rebalance that portfolio with much greater emphasis on the United States, but we're not going to, we're not going to pursue growth opportunities that are too expensive. They don't make sense for us. We're very, very disciplined and selective in choosing growth opportunities that we think are long-term economically sustainable. And that means that, you know, we're not targeting a specific megawatt. What we're targeting is a specific profile. And that profile is a long-term competitive energy profile that is not just suitable for Bitcoin, but is suitable for multiple applications. And so I can't provide a specific megawatt number that we're targeting, but what we are looking to do is constantly integrate competitive energy prices that are going to help us manage our energy price and drive those costs lower across the entire portfolio.

Speaker Change: And we're not going to pursue growth opportunities that are too expensive or don't make sense for us, we're very very disciplined and selective in choosing growth opportunities that we think are long term economically sustainable.

Speaker Change: That means that we're not targeting a specific megawatt what we're targeting is a specific profile and that profile is a long term competitive energy profile that is not just suitable for bitcoin, but is suitable for multiple applications and so I can't provide a specific megawatt number that we're targeting but what we.

Jeffrey Lucas: Growth mining profit was 21 million dollars, or 51% of money revenue, down from 31 million dollars or 64% last quarter, and up from 48% in the prior year quarter. General administrative expense, excluding non-cash stock-based compensation and the sales tax refund, was 13 million dollars compared to 10 million dollars in the first quarter. The $3 million increase pertain primarily to an usual cost associated with the strategic alternatives review process, our sponsor Riot Platforms Hoss will take over bid in a shareholder rights plan, as well as fees associated with the employment competition dispute with the former CEO.

Speaker Change: Are looking to do is constantly integrate competitive energy prices that are going to help us manage our energy price and drive those costs lower across the entire portfolio.

Ben Danyan: Williams. Thank you.

Speaker Change: Got it that's helpful. Thank you.

Ben Danyan: Thank you.

Mike: Thank you Mike.

Speaker Change: Thank you. Your next question is coming from Lucas pipes from B Riley Your line is live.

Lucas Pipes: Your next question is coming from Lucas Pipes from Be Riley. Your line is live. Thank you very much for waiting.

Operator: Thank you.

Jeffrey Lucas: For the second quarter, our operating loss with $24 million, large young change from the first quarter. The operating loss includes $57 million of depreciation expense on all the miners made a $39 million depreciation in the first quarter. Under our upgrade program, our existing miners are being depreciated on an accelerated basis over the remainder of their expected operating life, is their replacement for more efficient miners. As such, a higher level depreciation was expected in the first and second quarters of this year.

Mike: Yeah.

Fedor Shabalin: Thank you very much, operator. And good morning, everyone. This is Fedor Shabalin asking questions on behalf of Lucas Pipes. First of all, Ben and Jeff, congratulations on the good progress this quarter.

Ben Gagnon: Sorry

Mike: Thank you very much operator, and good morning, everyone. This is fedor sabellian asking questions on behalf of local pipes.

Lucas Pipes: Good morning, everyone. This is Heather Sableen asking questions on behalf of Lucas Pipes. First of all, Ben and Jeff, congrats on the progress this quarter. And my first one is on Sharon Seisen, Pennsylvania. So last week, PGM held an auction and prices in 2025-26 that will roughly 10 times higher compared to 2023-2024. And so the question is, where are you right now in terms of power supply for this site, and how are we going to negotiate today? Is it going to be PPA or something else? And what pricing range do you anticipate per negligible hour here?

Speaker Change: Its default.

Fedor Sabellian: That and Jeff Congrats on all the progress this quarter and my first one is on your share.

Ben Gagnon: Got it, and then just One more. You know, with the 120 megawatts in Pennsylvania. Do you have a, you know, a goal, something aspirational, like you would, I don't, like to get another hundred, another three hundred of committed megawatts in twenty five? In the U.S., how do we think about what you want to do next in the U.S.?

Speaker Change: Sizing, Pennsylvania, So last week PJM held at auction.

Fedor Shabalin: And my first one is on your sharing site in Pennsylvania. So last week, PJM held an auction, and prices in 2025-26 were settled roughly 10 times higher compared to 2023-2024. And so the question is, where are you right now in terms of power supply for this site and how are you going to negotiate it? Is it going to be PPA or something else? And what price range do you anticipate per megawatt hour here? Thanks very much for your perspective.

Speaker Change: Prices in 2025, 26, adult roughly 10 to 10 times higher compared to.

Speaker Change: 2021 'twenty two.

Mike: Sure.

Ben Gagnon: Yeah, it's a great question. You know, when you look at our portfolio of energy assets, what you'll see is that right now, the US is very underrepresented. You know, we currently have only 20 megawatts that we have in Washington active and hashing. But we do have, I think, the best developed international portfolio. What we'd like to do next year is rebalance that portfolio with a much greater emphasis on the United States.

Jeffrey Lucas: Depreciation expense is projected to normalize on the third and fourth quarters, as the miner replacement program was largely completed by the end of June. In the second quarter, financial expense includes a $1 million non-cash expense for the revaluation of financial liability for warrants issued in earlier financing, compared to a $9 million non-cash gain on the revaluation of this financial liability in the first quarter. Under IFRS, we are required to recognize the liability for these warrants, even though they cannot and will never be settled for cash.

Speaker Change: And so the question is where are you right now in terms of power supply for with site and how are we going to negotiate today.

Ben Gagnon: But we're not going to pursue growth opportunities that are too expensive or don't make sense for us. We're very, very disciplined and selective in choosing growth opportunities that we think are long-term economically sustainable. And that means that, you know, we're not targeting a specific megawatt. What we're targeting is a specific profile. And that profile is a long-term competitive energy profile that is not just suitable for Bitcoin but is suitable for multiple applications.

Speaker Change: It's going to be a PPA or something else.

Speaker Change: What pricing range do you anticipate per megawatt hour here, thanks, very much full prospectus.

Lucas Pipes: Thanks very much for your perspective.

Ben Danyan: Thanks, Peter. When we're looking at the Sharon site, one of the benefits there is that we do have, as we said in the call, we have multiple different power providers that we can work with at that site. We haven't locked in prices or power provider yet. But what we do know is that because of the reduction of thermal generating assets in TJM and because of the increase in renewable assets, what that means is that there's a lot more opportunity around the energy trading specifically. The capacity are the capacity auctions that you're referencing are referencing, what is the value that these very reliable base loads are able to secure.

Linda: Thanks, Peter Linda.

Speaker Change: When we're looking at a sharing site one of the benefits. There is that we do have as we said in the call. We have multiple different power providers that we can work with that that site, we haven't locked in prices or power provider, yet, but what we do know is that because of the because of the reduction.

Jeffrey Lucas: Net loss of the second quarter was $27 million, our loss of $7 cents per share, compared to a net loss of $6 million, our loss of $2 cents per share in the first quarter.

Linda: Thermal generating assets in PJM and because of the increase in renewable assets. What that means is that there is a lot more opportunity around the energy trading specifically the capacity or the capacity auctions that you are referencing are referencing.

Jeffrey Lucas: Now let's turn our attention to operating performance and print big climatrix. Our corporate cost of electricity for the quarter was 4.3 cents per kilowatt hour. That's an increase in 4.1 cents per kilowatt hour in the first quarter. 4.4. We benefited from the Canadian revenue agency ruling that allows us to recover the 15% DAT in our Canadian electricity purchases, which we calculated reduced our overall electricity cost by about 4.10 cents per kilowatt hour.

Linda: What is the value that is very reliable baseload are able to secure and the reason why that has increased so much is because of the the massive reduction in thermal assets that is taking place in replacement with those renewables and so we haven't locked in a fixed price.

Ben Danyan: And the reason why that has increased so much is because of the massive reduction in thermal assets that is taking place and replacement with those renewables.

Jeffrey Lucas: This savings was offset by higher electricity costs in Argentina, as we shifted from lower summer to more expensive winter rates to the Canadian May, and also a 3.2 percent increase in Canadian electricity rates effective April 1st. Importantly, with our improvement in electrical efficiency from an average of 35 watts per tire hash in the first quarter to 28 watts per tire hash in the second quarter, our electricity cost per tire hash decreased by 17 percent.

Ben Danyan: And so we haven't locked in a fixed price, and it would be hard to guarantee exactly what that price will be because the prices are subject to a lot of change. But what we do know is that it increases the amount of opportunity around trading the energy.

Linda: And then it would be hard to guarantee exactly what that price will be because the prices are subject to a lot of change, but what we do know is that it entries and increases the amount of opportunity around trading the energy.

Ben Danyan: Thanks very much.

Ben Gagnon: And so I can't provide a specific megawatt number that we're targeting, but what we are looking to do is constantly integrate competitive energy prices that are going to help us manage our energy prices and drive those costs lower across the entire portfolio.

Speaker Change: Got you thanks very much.

Lucas Pipes: And my follow-up is on HBC signs, just a little bit more detailed here. But beyond what you mentioned in the release, you touch on the cadence of the segment, but other players already build an HBC capacity and some AI cloud. And what are the perspectives on how you're going to use some of your capacity for this purpose just potentially? Is it going to be HBC or AI Cloud? You're going to purchase your GPUs for your own use or going to be just kind of mix of it. And where it will be possibly deployed, additionally, to Sharon.

Speaker Change: My follow up is on Hp's you signed.

Jeffrey Lucas: From 2.6 cents per tire hash per day to 3 cents per tire hash per day, our direct mining cost per Bitcoin in the second quarter was $30,600. Our total cash cost to mine Bitcoin was $47,300, and our revenue per Bitcoin was $65,800 resulting in cash profit per Bitcoin of $18,500.

Fedor Shabalin: Just a little bit more details here, but beyond what you mentioned in the release, and where it will possibly be deployed additionally to Sharon. And what's your plan? And the very, very important one is, what's your plan to finance this capital-intensive segment? You ATM on that.

Ben Gagnon: Got it. That's helpful. Hey, thank you.

Speaker Change: Just a little bit more details here.

Speaker Change: But beyond what you mentioned in their lease.

Speaker Change: You touch on kind of change in that segment, but other players already building HBC capacity, some AI cloud and what are your perspective on how we are going to use some of your capacity for this purpose.

Operator: Thank you. Your next question is coming from Lucas Pipes from B. Reilly. Your line is live.

Speaker Change: <unk> is going to be at HBC or AI quality, you're going to.

Jeffrey Lucas: Turning now to slide 14. For the second quarter, our electricity bet that was $12 million, our 28 percent revenue compared to $23 million, our 46 percent revenue in the first quarter. The lower electricity bet that largely reflected the impact of the having, along with higher G and A expenses associated, was the expansion of our operating activities. As we've noted in previous quarterly earnings calls, our electricity bet that is very straightforward, being purely in measure the cash profitability of our mining operations and the profit contribution of our Volta electrical subsidiary.

Linda: Torches Gpus.

Speaker Change: It should be used for your own use.

Speaker Change: Going to be just kind of mix of it.

Linda:

Lucas Pipes: Thank you very much, operator, and good morning, everyone. This is Fedor Shabalin asking questions on behalf of Lucas Pipes. First of all, Ben and Jeff, congratulations on the good progress this quarter.

Linda: And where it will be possibly deployed additional to share to Sharon.

Ben Danyan: And what's your plan?

Speaker Change: What's your plant.

Ben Danyan: And the important one is what's your plan to finance this kind of intensive segment? Are we going to use ATM or DEF? Thank you.

Ben Gagnon: And my first one is on your sharing site in Pennsylvania. So last week, PJM held an auction, and prices in 2025, 2026 were settled roughly 10 times higher compared to 2023, 2024. And so the question is, where are you right now in terms of power supply for this site, and how are we going to negotiate this? Is it going to be PPA or something else? And what pricing range do you anticipate per megawatt hour? Thanks very much for your perspective.

Speaker Change: Very important very important one is what you plan to finance its capital and contracts.

Speaker Change: So how are we going on.

Ben Gagnon: Thanks, Fedora. When we're looking at the Sharon site, one of the benefits there is that we do have, as we said in the call, multiple different power providers that we can work with at that site. We haven't locked in prices or a power provider yet, but what we do know is that because of the reduction in thermal generating assets in PJM and because of the increase in renewable assets, what that means is that there's a lot more opportunity around energy trading specifically.

Speaker Change: ATM all that thank.

Ben Gagnon: The capacity auctions that you're referencing are referencing, you know, what is the value that these very reliable base loads are able to secure? And the reason why that has increased so much is because of the massive reduction in thermal assets that is taking place in replacement of those renewables. And so we haven't locked in a fixed price, and it would be hard to guarantee exactly what that price will be because prices are subject to a lot of change. But what we do know is that it increases the amount of opportunity around trading energy.

Speaker Change: Thank you.

Ben Danyan: Another great question, Sador. I mean, when you look at the different compute markets, very clearly the capital requirements associated with HBC and AI are significantly different. When we look at what is our rough cost to build out one megawatt of compute power with T-21, it's roughly a million dollars in megawatt. Just to build out the infrastructure for HBC and AI, most estimates are putting it at 10 million dollars on megawatt for more. When you include the value of the compute in that, it can easily go up to 30 to 40 million dollars in megawatt.

Unknown Executive: Another great question, Fedor. I mean, when you look at the different compute markets, very clearly, the capital requirements associated with HPC and AI are significantly different. You know, when we look at what our rough cost to build out one exahash of compute power, or sorry, one megawatt of compute power with T21s, it's roughly a million dollars a megawatt. Just to build out the infrastructure for HPC and AI, most estimates are putting it at $10 million. A megawatt or more.

Speaker Change: Another great question for door I mean, when you look at the different compute markets.

Jeffrey Lucas: As an IFIRS filer, we do not mark to market at Bitcoin holdings and we do not include this or any other balance sheet account valuation changes in our electricity bet that. State it simply, our electricity bet that of $12 million in this quarter equates to cash profit per Bitcoin of $18,500 multiplied by the 614 Bitcoin we mined during the quarter plus $300,000 a profit from our Volta electrical subsidiary.

Speaker Change: Clearly the capital requirements associated with <unk> are significantly different when we look at what our rough cost to build out one acts of hash compute.

Speaker Change: Compute power sorry, one megawatt of compute power with $2 20, once it's roughly a $1 million a megawatt just to build out the infrastructure for HBC and AI. Most estimates are putting it at $10 million a megawatt or more.

Jeffrey Lucas: Terry. Turning now to slide 15. At June 30th, we had total liquidity of $195 million, consisting of cash of $139 million in Bitcoin value that took the $77 million. As you've noted previously, our program to achieve our year-end 2024 targets of $21X of hash and $21.50 is fully funded. At July 31st, we held $1,016 Bitcoin up from $905 Bitcoin at the end of June. Our higher Bitcoin treasure balance reflects our solid cash position in strong cash flow from operations.

Speaker Change: When you include the value of the compute in that it can easily go up to 30% to $40 million a megawatt we don't have any interest in.

Ben Danyan: We don't have any interest. and Biden, the actual HPCNAI compute. But we have an interest in developing, owning, and operating the infrastructure that provides the power to the HPCNAI compute. And there are so many hyper-staylers and so many companies right now trying to deploy GPUs that we don't have to worry about how those, we don't have to worry about the actual value of the compute hardware, who's going to pay for it because there are so many parties who want that space and who are valuing the infrastructure. Our core competencies and strengths is on building and operating energy infrastructure.

Unknown Executive: When you include the value of the compute in that, it can easily go up to $30 to $40 million a megawatt. But we don't have any interest in buying the actual HPC and AI compute. What we have an interest in is developing, owning, and operating the infrastructure that provides the power to the HPC and AI compute. And there are so many hyperscalers and so many companies right now trying to deploy GPUs that we don't have to worry about how those, we don't have to worry about the actual value of the compute hardware, who's going to pay for it, because there are so many parties who want that space and who are valu

Speaker Change: And buying the actual HP CNA I compute, but we have an interest in is developing owning and operating the infrastructure that provides the power to the H B C. NAD compute and there are so many.

Speaker Change: Hyperscale orders and so many companies right now trying to deploy GP is that.

Speaker Change: We don't have to worry about how those though we don't have to worry about the actual value of the comp your hardware and who's going to pay for it because there's so many parties who want that space and we're valuing the infrastructure.

Jeffrey Lucas: Further, our synthetic HODL continues to grow, increasing from $280 equivalent Bitcoin at end of June to $333 Bitcoin currently. As a reminder, under our synthetic HODL strategy, we utilized X's Bitcoin generate each month to fund a growth at a low cost of capital while maintaining outside potential by applying a portion of the proceeds towards the purchase of long-dated Bitcoin call options. In regard to our ATM facility, which we initiated in March and you solely to fund a growth initiative in Fleet F Great, we raised $136 million in the second quarter. Since June 30th, we have raised an additional $16 million under the facility.

Unknown Executive: Our core competencies and strengths are in building and operating energy infrastructure, so that's where we're going to focus our efforts. When it comes to the financing question, I mean, this is still very much open to very different structures. But what I can say is that, based on the numerous conversations we've had with different parties so far, there's no shortage of different financing opportunities and financing structures available to help finance the construction of these different infrastructures and these different opportunities.

Speaker Change: Our core competencies and strengths is on building and operating energy infrastructure. So that's where we're going to focus our efforts when it comes to the financing question. I mean, this is still very much open to.

Ben Danyan: So that's where we're going to focus our efforts. When it comes to the financing question, I mean this is still very much open to very different structures. But what I can say is that, based on the numerous conversations we've had with different parties so far, there is no shortage of different financing opportunities and financing structures available to help finance the construction of these different infrastructures and these different opportunities.

Speaker Change: Different structures, but what I can say is that based on the numerous conversations we've had with different parties. So far there is no shortage of different financing opportunities and financing structures available to help finance the construction of these different infrastructures.

Speaker Change: These different opportunities.

Lucas Pipes: Thank you very much for your perspective and Mr. Flodden. Thank you. Thank you so much. Thank you.

Speaker Change: Got you. Thank you. Thank you very much for your perspective on that.

Fedor Shabalin: Thank you very much for your perspective and best of luck, and thank you.

Jeffrey Lucas: Moving on to $16, I turn the call back over to Ben for a quick summary. Thanks, Jeff. Turning to slide 17. Before opening up the call for questions, I want to drive home a few key points. We continue to dramatically alter our operating profile via our ongoing fleet upgrades and our geographic expansion. This transformation will only accelerate as I work with the team to continually diversify our assets. We are taking a close look at all of our measurements and evaluating several opportunities to expand beyond Bitcoin mining, including HPC and AI.

Speaker Change: Best of luck. Thank you.

Speaker Change: Thank you so much.

Speaker Change: Thank you. Your next question is coming from Martin Toner from ATB capital. Your line is live.

Martin Toner: Your next question is coming from Martin Toner from ATB Capital. Your line is live. Good morning. Thanks so much for taking a question. You mentioned not having broke ground in Sharon, and that that creates some flexibility for you.

Ben Gagnon: I got you. Thanks very much.

Martin Toner: Good morning, and thanks, so much for taking <unk>.

Speaker Change: Question.

Ben Gagnon: And my follow-up is on HPC signed. Just a little bit more details here, but beyond what you mentioned in the release, you touched on CAD and some things in that segment, but other players are already building HPC capacity, some AI cloud, and what are your perspectives on how you're going to use some of your capacity for this purpose, just potentially? Is it going to be HPC or AI cloud? You're going to purchase your GPUs for your own use, or is it going to be And where it will possibly be deployed additionally to Sharon. And what's your plan? And the very, very important one is: what's your plan to finance this capital-intensive segment? You can ATM on that.

Speaker Change: You mentioned.

Speaker Change: Not having broke ground and share that.

Speaker Change: That creates some flexibility for you.

Ben Danyan: Can you talk to how long you're really to wait before you need to start committing to Bitcoin specific infrastructure development in Sharon and what, you know, the possibility of that putting pressure on your 2024 2025. Yes, I have started. So there's two different components to share in one. There's an immediately available 12 megawatts, which we're going to be, we're still finalizing the electrical plans for that and the site plan. But we'll be dropping in containers for that site to quickly deploy 12 megawatts by the end of the year for the remaining capacity for that 120 megawatts.

Speaker Change: Can you talk to how long you are willing to wait before you need to start committing to.

Sharon: Bitcoin specific infrastructure development and Sharon and.

Speaker Change: Well the possibility of that are putting pressure on your 'twenty to 'twenty four 'twenty 'twenty five target.

Jeffrey Lucas: We have industry leading Bitcoin mine for X a half and industry leading the efficiency. We will continue to distinguish ourselves by improving our operation efficiency and growing our profitability in this highly competitive industry. I am very confident in our growth prospects and look forward to updating you as we one continue to execute on our 2024 growth plan and two continue to build out our team and expertise to ensure we are well positioned to capture additional market share both within Bitcoin mining as well as within synergistic and added business lines.

Unknown Executive: Sure. So there are two different components to Sharon.

Speaker Change: Sure. So there's two different components to Shan one there are some immediately available 12 megawatts, which we're going to be.

Ben Gagnon: Another great question, Fedor. I mean, when you look at the different compute markets, very clearly, the capital requirements associated with HPC and AI are significantly different. You know, when we look at what our rough cost to build out one exahash of compute power, or sorry, one megawatt of compute power with T21s, it's roughly a million dollars a megawatt. Just to build out the infrastructure for HPC and AI, most estimates are putting it at $10 million. A megawatt or more.

Unknown Executive: One, there's an immediately available 12 megawatts, which we're going to be, we're still finalizing the electrical plans for that and the site plan, but we'll be dropping in containers for that site to quickly deploy 12 megawatts by the end of the year. For the remaining capacity of that 120 megawatts, we have to build out the substation. We're expecting to break ground on that at the beginning of next year. And when we look at when we actually need to start building out and finalizing what we're doing there with the data center and the allocation of those megawatts, we really need to have that decision or be working towards that decision within Q4, with hopefully a final decision sometime at the end of Q4 or at the beginning of Q1, if we want to meet those timelines at the end.

Ben Gagnon: When you include the value of the compute in that, it can easily go up to $30 to $40 million a megawatt. But we don't have any interest in buying the actual HPC and AI compute. What we have an interest in is developing, owning, and operating the infrastructure that provides the power to the HPC and AI Compute. And there are so many hyperscalers and so many companies right now trying to deploy GPUs that we don't have to worry about how those; we don't have to worry about the actual value of the Compute hardware who's going to pay for it because there are so many parties who want that space and who are valu

Ben Gagnon: Our core competencies and strengths are in building and operating energy infrastructure, so that's where we're going to focus our efforts. When it comes to the financing question, I mean, this is still very much open to very different structures. But what I can say is that, based on the numerous conversations we've had with different parties so far, there is no shortage of different financing opportunities and financing structures available to help finance the construction of these different infrastructures and these different opportunities.

Ben Gagnon: Thank you very much for your perspective and best of luck, and thank you.

Speaker Change: Still finalizing the electrical plans for that and the site plan, but we will be dropping in containers for that site to quickly deploy 12 megawatts by the end of the year.

Operator: Thank you. Your next question is coming from Martin Toner from ATB Capital. Your line is live.

Speaker Change: For the remaining capacity for that 120 megawatts, we have to build out the substation.

Ben Danyan: So we have to build out the substation. We're expecting to break ground on that at the beginning of next year. And when we look at when we actually need to start building out and finalizing what we're doing there with the data center and the allocation of those megawatts, we really need to have that decision or be working towards that decision within Q4, with hopefully a final decision.

Martin Toner: Good morning. Thanks so much for taking the time to answer my question. You mentioned not having broken ground in sharing and that that creates some flexibility for you. Can you talk about how long you're willing to wait before you need to start committing to Bitcoin specific infrastructure development and sharing? And, you know, the possibility of that putting pressure on your 2024-2025 ExaHashTarget?

Speaker Change: We're expecting to break ground on that at the beginning of next year.

Unknown Executive: With that, I will hand the call back to the operator for Q&A. Certainly, everyone at this time we are conducting a question and answer session. If you have any questions or comments, please press star one on your phone at this time. We do ask the while posing your question, please pick up your handset if you are listening on speaker phone to provide optimum sound quality. Once again, if you have any questions or comments, please press star one on your phone.

Ben Gagnon: Sure. So there are two different components to Sharon.

Speaker Change: And when we look at when we would actually need to start building out and finalizing what we're doing there with the data center and the allocation of those megawatts, we really need to have that decision will be working towards that decision within Q4 with hopefully a final decision sometime at the end of Q4 or at the beginning.

Ben Gagnon: One, there's an immediately available 12 megawatts, which we're going to be, we're still finalizing the electrical plans for that and the site plan, but we'll be dropping in containers for that site to quickly deploy 12 megawatts by the end of the year. For the remaining capacity of that 120 megawatts, we have to build out the substation. We're expecting to break ground on that at the beginning of next year. And when we look at when we actually need to start building out and finalizing what we're doing there with the data center and the allocation of those megawatts, we really need to have that decision or be working towards that decision within Q4, with hopefully a final decision sometime at the end of Q4 or at the beginning of Q1. If we want to meet those timelines at the end of 20

Ben Danyan: And sometime at the end of Q4 or at the beginning of Q1, if we want to meet those timelines at the end of 2025. That's great. Yes. I mean, words of your mouth, some of the initial build-out is the same regardless of HPC or Bitcoin line. Yes, for the first 12 megawatts, since there's already location, since there's already capacity there. It's a very, very quick build-out. We are going to drop to containers for the both for the convenience, the speed and also the flexibility that if we do want to convert of those 12 megawatts later, you know, they can be refurbished at a different location.

Speaker Change: Q1, if we want to meet those timelines at the end of 2025.

Michael Colonnese: Your first question is coming from mic colonies from H.C. Wainwright. Your line is live. Hi, good morning guys and thanks and congratulations again on your position with the company and all of the progress the team has made with these cleanup raising growth strategies. You are really great to see here. For me, my first question and follow up really around market trends here. You always have great insights. I wanted to get your views on hash prices here which just hit all time highs, excuse me, all time lows last week at around 3.5 cents a tear of hash.

Ben Gagnon: That's great. Yes, the green one.

Speaker Change: That's great yes.

Speaker Change: I mean.

Unknown Executive: Put your words in your mouth. Some of the initial build-out is... is the same regardless of HPC or Bitcoin mining.

Ben Gagnon: Put your words in your mouth. Some of the initial build out is... is the same regardless of HPC or Bitcoin mining.

Speaker Change: Words in your mouth.

Speaker Change: Some of the initial build out is.

Speaker Change: Is the same regardless of HBC or corporate controller.

Michael Colonnese: Do you think we've reached the bottom here? And as the follow up to that, how does the current market environment influence your decision in timing to execute on some of these non-mining related opportunities over the near term, if at all? Thanks Mike. Yeah, it's a great question. Obviously, the pullback in Bitcoin price has an effect on hash price. And something that we've been talking about for a very, very long period is hash cost, right?

Ben Gagnon: Yes, for the first 12 megawatts, it's since there's already a location, since there's already capacity there, it's a very, very quick build out. We are going to drop into containers for both the convenience, the speed, and also the flexibility, that if we do want to convert over those 12 megawatts later, you know, they can be repurposed at a different location.

Speaker Change: Yes for the first 12 megawatts.

Speaker Change: Since there is already location consensus already capacity there.

Speaker Change: Very very quick build out where it's going to drop to containers for the both for the convenience of the speed and also the flexibility that if we do want to convert all of those 12 megawatts later.

Speaker Change: They can be repurposed at a different location.

Ben Gagnon: Fantastic. And can you talk about whether or not you have the building capability in Pennsylvania and the necessary materials, like access to materials for the substation, transformers, switches, etc., to be able to deliver that HPC compute in your stated timeline, which starts at 12 months?

Unknown Executive: Fantastic. And can you talk about whether or not you have the Building Capability in Pennsylvania and the necessary materials, like access to materials for the substation, transformers, switches, etc., to be able to deliver that HPC compute in your stated timeline, which starts at 12 months?

Ben Danyan: Fantastic, and can you talk about whether or not you have the building capability in Pennsylvania and the necessary materials, like access to materials for the substation, transformers, switches, et cetera, to be able to deliver that HPC compute in your stated timeline, which starts at 12 o'clock? For HPC and AI compute specifically, no, we do not have on hand the necessary equipment for that. And the reason for that is because we haven't determined the final plan there. No, when we have determined the final plan for what we're going to do with the Sharon megawatts, that's when we'll go out and start procuring that equipment.

Speaker Change: Fantastic can you.

Speaker Change: You talk about whether or not you have the.

Speaker Change: The building capability in Pennsylvania, and the necessary materials like access to our materials.

Speaker Change: Materials for the substation transformers switches et cetera to be able to deliver that H P. C. Compute in your stated.

Michael Colonnese: Simply put, that's a very simple measure. We're combining the Watt-Patera hash efficiency of the miners or our fleet, combined with the electricity cost that's powering it. And when you look at our 4.3 cents, average electricity cost that we had in Q2, and you combine it with the 25 loss criteria, hash land or decorder, that gives you a direct hash cost around 2.7 cents. So, even with those pullbacks, we still remain cash low positives in our operations on a direct, on a direct, you know, mining basis.

Speaker Change: Timeline, which starts at 12 months.

Ben Gagnon: For HPC&AI Compute specifically, no, we do not have on hand the necessary equipment for that. And the reason for that is that we haven't determined the final plan there. You know, when we have determined the final plan for what we're going to do with the Sharon Megawatts, that's when we'll go out and start procuring that equipment. So no, currently, we do not have the necessary equipment for an HPC&AI build in Sharon specifically.

Speaker Change: For HP CNI compute specific lead note, we do not have on hand, the necessary equipment for that and the reason for that is because we havent determined a final plan there when we have determined the final plan for what we're going to do with the sharing megawatt that's when we'll go out and start procuring that equipment.

Ben Danyan: So no, currently we do not have the necessary equipment for an HPC and AI build in Sharon specifically. Okay. Thanks so much. Do you see that as being a potential bottleneck, or are you guys confident that you have the relationships and access to necessary materials and equipment? We have at this point, you know, over 12 months, 12 to 16 months, if we wanted to get that energized by the end of the year. And I think the most realistic timeline for HPC and AI build is really Q4 or Q1, which extends that timeline out to possibly 19 months.

Speaker Change: So no currently we do not have.

Michael Colonnese: When we look towards, you know, how the market is responding, what we said for a long time is we think that the market starts responding in between 4.5 cents. And that's exactly what we've seen happen. If you keep track of kind of how the blocks are progressing and what that implies for difficulty changes at the end of the cycle, what you can see is that on Friday, prior to the major pullback, we were expecting a difficulty adjustment, kind of around negative 1%, and now we're trending significantly upwards.

Speaker Change: The necessary equipment for an H B C N a I build insurance specifically.

Ben Gagnon: Okay, thanks so much. Do you see that as being a potential bottleneck, or are you confident that you have the relationships and access to the necessary materials and equipment?

Unknown Executive: Okay, thanks so much. Do you see that as being a potential bottleneck, or are you confident that you have the relationships and access to the necessary materials and equipment?

Speaker Change: Okay. Thanks, so much do you see that as being a potential bottleneck or are you guys confident that you have good relationships and access to necessary materials and equipment.

Ben Gagnon: We have at this point, you know, over 12 months, 12 to 16 months, if we wanted to get that energized by the end of the year, and I think the most realistic timeline for an HBCI build is really Q4 or Q1, which extends that timeline out to possibly 19 months. That gives us, I think, a sufficient timeline to go out and procure the equipment, given our position and our existing industrial relationships with suppliers.

Speaker Change: We have at this point.

Speaker Change: 12 months 12 months to 16 months, if we wanted to get that energized by the end of the year and I think the most realistic timeline for HBC build is really Q4, or Q1, which extends that timeline out to possibly 19 months that gives us I think sufficient timeline to go out and procure those equipment given our position.

Michael Colonnese: I think it's somewhere between 3 and 4%. This is happening halfway through the difficulty adjustment cycle, which means that to have that impact, it requires that much more hash rate in order to have, you know, a meaningful reduction. So, yeah, now we're between negative 3.8 and negative 4.7. So, the market is responding by either turning off minors or underclocking those minors. We think that with our lead upgrade and our competitive lead price electricity, we've positioned ourselves very, very well and have shielded ourselves from a lot of these, you know, events and, you know, short-term Bitcoin price is going to do what is going to do, but long-term, we believe that our growth and hash price is going to be well justified, and we're potentially, if the historical cycles play out, we're going to still see significantly higher hash prices in the months to come.

Martin Toner: That gives us, I think, sufficient timeline to go out and procure those equipment, giving our position and our existing industrial relationships with suppliers. Okay. Fantastic. That's great.

Speaker Change: And our existing industrial relationships with suppliers.

Speaker Change: Yeah.

Speaker Change: Okay Fantastic that's great.

Speaker Change: Yeah.

Ben Danyan: Just wondering on the, you know, I mean, I think we're all very, very curious on the pipeline of development opportunities. I mean, wondering, I mean, one of the chances that there's another Sharon out there, you know, is it possible that it could be in a different U.S. ISO and is it possible it could be somewhere in some other countries? Yeah, it's a great question. You know, we have a, we do have a global view towards new opportunities and growth opportunities again, with a focus on securing the right energy profile and securing something that we believe is going to be economically sustainable for many years to come.

Speaker Change: Just wondering on the you know I mean, I think we're all very very curious on the.

Speaker Change: Pipeline of development opportunities I mean wondering I mean, what are the chances that theres another share out there.

Speaker Change: Is it possible it could be in a different.

Speaker Change: U S. ISO and is it possible it could be somewhere in some other countries.

Ben Gagnon: Yeah, it's a great question. You know, we have a we do have a global

Speaker Change: Yeah. It's a great question, we have a we do have a global view towards new opportunities and growth opportunities again with with a focus on securing the right energy profile and securing something that we believe is going to be economically sustainable for many years to come and certainly there are opportunities.

Ben Ganyan: That's really great color, and just as the follow-up there, does this influence or accelerate your decision to start to look at executing some of these non-lining-related opportunities in the pipeline, be it, you know, HPCAI? When we look at the HPCAII opportunity, you know, we see a lot of potential here to achieve a high value revenue stream, but, you know, just to be clear that the timelines for integrating and building now that infrastructure is at least 12 months away.

Ben Danyan: And certainly, there are opportunities all around the world. But what we're going to be focusing on over the, you know, 2025 and beyond, and even currently right now in our development pipeline, what we're currently focusing on is increasing our U.S. exposure. We think that there are tremendous opportunities in the United States, and we do really like the PGM region. It's got numerous benefits in terms of its procurement programs, demand response programs, opportunities for hedging and energy trading. We think there are more opportunities like Sharon out there, and we would love to pursue more opportunities in PGM.

Speaker Change: All around the world.

Speaker Change: But what we're going to be focusing on over the.

Speaker Change: 2025, and beyond and even currently right now in our development pipeline. We are currently focusing on is increasing our U S. Exposure. We think that there are tremendous opportunities in the United States and we do really like the PJM region.

Ben Ganyan: Personally, I think that is actually a very advantageous timeline because, you know, when you look at the value that you would get out of, you know, a T-21, for instance, with current hash price at 4 cents, it's roughly $80 a megawatt hour, but if hash price were to go up to 8 cents, it would be $155 a megawatt hour, if it went up to 12 cents, it would be $230 a megawatt hour, and if it went up to 16 cents, it would be $310 a megawatt hour. So, you know, there's still a lot of potential for Bitcoin prices and Bitcoin mining economics in a Bitcoin bull run, and we don't necessarily want to, you know, rush and pay a premium to diversify away from that, but continuing with the same timelines, you know, of roughly 12-ish plus months, really means that we might be able to integrate these diverse-hide revenue streams towards what we would expect to be the top of the Bitcoin bull market cycle according to, you know, historical trends. And that timeline is something that I think is very, very compelling. Great.

Speaker Change: It's got numerous benefits in terms of its curtailment programs demand response programs opportunities for hedging and energy trading. We think there are more opportunities like Sharon out there and we would love to pursue more opportunities in PJM.

Speaker Change: Yeah.

Speaker Change: Okay.

Ben Danyan: That's great. Thanks very much.

Ben Gagnon: That's great. Thanks very much. Is it fair to say the market has tightened since early June for power development?

Speaker Change: That's great thanks very much.

Ben Danyan: Is it fair to say the market has tightened since early June for Power Development Opportunity. There's always power available. You know, sites are constantly turning over what I don't know if necessary. The market's tightened, but certainly the demand and the interest did, the interested parties for more power is increasing rapidly. So I don't know if market conditions are necessarily tightened. Take this in the call.

Speaker Change: Is it fair to say the market has tightened since early June four.

Speaker Change: Power development opportunities.

Michael Colonnese: Thank you for taking my questions. Thanks, Mike.

Speaker Change: Alright.

Unknown Executive: You know, there's always power available. You know, sites are constantly turning over what I don't know if the market's tightened necessarily. But certainly, the demand and the interested parties for more power are increasing rapidly. So I don't know if market conditions have necessarily tightened so far.

Ben Gagnon: You know, there's always power available. You know, sites are constantly turning over what I don't know if the market's tightened. But certainly the demand and the interested parties for more power are increasing rapidly. So I don't know if market conditions have necessarily tightened. Talk to you later.

Speaker Change: Theres always power available.

Speaker Change: Sites are constantly turning over what I don't know if necessary the markets tightened, but certainly the demand and the interested the interested parties for more power is increasing rapidly.

Speaker Change: So I don't know if market conditions are necessarily tightened, Oregon the call talk to you Tonight.

Operator: Can we talk to you tonight? Sorry, can you repeat that? Thank you.

Speaker Change:

Speaker Change: Sorry can you repeat that.

Speaker Change: Oh.

Unknown Executive: Thank you. Hi guys, thanks for the question.

Mike Grondahl: Thank you. Your next question is coming from Mike Grondahl, from Northland Securities. Your line is live.

Speaker Change: Thanks.

Joseph Flynn: Your next question is coming from Joe Flynn from Compass Point Research and Trading. Your line is live. Let's first talk about where we are here.

Joe Flynn: Your next question is coming from Joe Flynn from Compass Point Research and Trading. Your line is live. Hi guys, thanks for the question. You know, it looks like you've built up a pretty strong balance sheet here, but maybe you could walk...

Operator: Thank you. Your next question is coming from Joe Flynn from Compass Point Research and Trading. Your line is live. Hi guys, thanks for the question.

Speaker Change: Your next question is coming from Joe Flynn from Compass point Research and trading your line is live.

Ben Ganyan: Hey, guys, thanks and congrats, Ben. On the HPC AI strategy, what pieces do you still have to put in place there to kind of execute on that? You talked about recruiting a team. Do you have you had discussions with hyperscalers and kind of give us a sense of the timeline and some of the pieces you still need to put together. Thanks, Mike. Yeah, it's a great question. You know, we are great builders and operators.

Speaker Change: Hi, guys. Thanks for the question of how.

Joe Flynn: It looks like you've built up a pretty strong balance sheet here, but maybe you could walk us through you know the remaining capex spend to get to.

Speaker Change: Access targets in 'twenty, 'twenty, four and five and.

Speaker Change: We just think about usage of the ATM going forward. Thanks.

Joe Flynn: Sure. Joe, I'm always glad to answer that question here.

Unknown Executive: Sure. Joe. I'm glad to answer that question here. So, let's first talk about where we are here regarding the 21 ExaHash and 21 Multi-Priority Hash Goals and targets that we have for the year-end. In terms of what we have left to spend here for the year-end targets, we've figured out we have roughly, at this point in time, we need to spend about another $50 million where we have remaining here for the infrastructure build-out. That's primarily with the Wazoo, and it's finishing that completion.

Speaker Change: Sure.

Speaker Change: I'm glad to answer that question here. So let's first talk about wherever you are here on regarding the 'twenty, one extra hashing platelet much Terry has goals and targets that we have for the year round here.

Ben Ganyan: We have a lot of electrical infrastructure. So when it comes to building out the facility and building out the substations and doing the interconnection work and doing the maintenance, we're fantastic at that. The area where we need to bolster, you know, our bench here is the area of HPC AI specifically because the data centers require for HPC are fundamentally different than the Bitcoin data centers that we are specialized at building and operating.

Joseph Flynn: We've already pointed out that we are fully funded for that, and let me give you some hard context to that. We pointed out that we have almost $200 million of liquidity and that our cash flow from operations over the next several months is projected to be around anywhere between $8 to $12 million a month to our roughly 50 to $55 million here. In terms of what we have left to spend here for the year and targets here, we've figured out we have roughly, at this point in time, we need to spend about another $50 million; we will have remaining here for the infrastructure buildouts.

Jeff Lucas: So let's first talk about where we are here regarding the 21 Exit Hatch and 21 Must Prepare Hatch Goals and Targets that we have for the year-end here. So we've already pointed out that we are fully funded for that. And let me give you some hard context on that.

Speaker Change: So we've already pointed out that we are fully funded for that let me give you some hard context to that we pointed out that we have almost $200 million of liquidity.

Jeff Lucas: We pointed out that we have almost $200 million in liquidity and that our cash flow from operations over the next several months is projected to be around anywhere between 8 to 12 million dollars a month or roughly could be 55 million dollars. In terms of what we have left to spend here for the year-end targets here, we've figured out we have roughly, at this point in time, we need to spend about another $50 million. What we have remaining here for the infrastructure build-out. That's primarily with the Wazoo, and it's finishing that completion.

Speaker Change: And then our cash flow from operations over the next several months projected date around anywhere between $8 million to $12 million in manta roughly could be the $55 million here.

Speaker Change: What we have left to spend here for the year end markets here.

Speaker Change: We figured out we have roughly.

Ben Ganyan: So we do need to bring in more talent in order to help us properly evaluate and develop these opportunities which we're actively recruiting for now. But this is more specifically regarding the data center engineering for HPC as well as the data center management. It's going to require different systems, different technology, different equipment, different software. And those are things that we either need to bring in house or partner with a third party.

Speaker Change: Point in time, we.

Speaker Change: We need to spend.

Speaker Change: About another we still got another $50 million, but we haven't made any payer putting infrastructure buildout, that's primarily really wouldn't want to do.

Joseph Flynn: And that's primarily really what you want to do in the finishing that completion. And then secondly here for the miners, we have remaining payments of roughly about $67 million from miners. We figure out the $20 to $25 million just for imports to do these insurance. So overall, we're envisioning an additional tax requirement for this year roughly around $140 million, which again, we're very well positioned here forward.

Speaker Change: And that completion and then secondly here for the miners, we have remaining payments of roughly about $67 million from minus I figured out the $20 million to $25 million. This for import duties insurance and things of that sort.

Unknown Executive: And then, secondly, here for the miners, we have remaining payments of roughly $67 million from the miners. We figure another $20 to $25 million just for imports, duties, insurance, things of that sort. So overall, we're envisioning an additional CapEx requirement for this year of roughly around $140 million, for which, again, we're very well-positioned here forward. Now what we are not reflecting here yet is what our plans are for next year in terms of our CapEx, and that's still unfolding, particularly as things move ahead with sharing other opportunities here. So while we feel we're pretty well-positioned at this point in time, that's something that we'll be addressing more in the future here.

Jeff Lucas: And then, secondly, here for the miners, we have remaining payments of roughly $67 million from the miners. We figure another $20 to $25 million just for imports, duties, insurance, things of that sort. So, overall, we're envisioning additional CapEx requirements for this year, roughly around $140 million, which, again, we're very well-positioned for here forward. Now, what we are not reflecting here yet is what our plans are for next year in terms of our CapEx, and that's still unfolding, particularly as things move ahead with sharing other opportunities here.

Speaker Change: So overall, we're envisioning additional capex requirements for this year roughly around $140 million.

Ben Ganyan: We have had numerous discussions with both hyperscalers and third parties, you know, to work with on different projects. But we're still in the early days of evaluating that. And I think for us, that timeline that most of the HPC and AI and hyperscalers are targeting of kind of a Q425, maybe Q126 is ample timeline for us to bring the proper expertise into their farms, integrated into our team, evaluate the various partners to be working with and identify and start working towards, you know, the right deployment at the right locations. And for a target maybe at the end of next year or the beginning of next year or beginning of 2026, sorry. Got it.

Speaker Change: Again, we're very well positioned here forward now.

Joseph Flynn: Now, what we are not reflecting here yet is what our plans are for next year in terms of our catbacks, and that's still unfolding, particularly as things move ahead with sharing another opportunity here. So while we feel pretty well positioned at this point in time, that's something that we will be addressing more in the future here.

Speaker Change: Now what we are not reflecting here yet is what our plans are for next year and because of our Capex and that's still unfolding, particularly I think move ahead with Sharon another opportunities here.

Jeff Lucas: So, while we feel we're pretty well-positioned at this point in time, that's something that we'll be addressing more in the future here. In reference to our ATM here, we've actually, you know, given the fact that our shares are now below $2, we've actually stepped back very, very dramatically in what we're doing here at the ATM. Because we're going to be very selective going forward here, and we again have the benefit of a strong cash flow from operations to fund ourselves going forward.

Speaker Change: We feel we're pretty well positioned at this point in time.

Speaker Change: It's something that we'll be addressing more in the future here.

Joseph Flynn: In reference to our ATM here, we've actually given the fact that our shares are now below $2. We've actually stepped back very, very dramatically in what we're doing currently ATM, because we're going to be very selected going forward here. We again have the benefit of a strong cash flow from operations; the funders are going forward here. And secondly, I think, you know, given the fact that we are now well positioned to be fully funded for this year, and have actually a kitty for next year as well here, we are going to continue to do very judiciously, more so I think, of the ATM for the next seven months.

Speaker Change: In reference to our ATM here, we've actually given the fact that our shares are now below $2. We've actually stepped back very very dramatically in what we're doing here on the ATM.

Speaker Change: Because we're going to be very selective going forward here, we again have the benefit of our strong cash flow from operations to fund ourselves going forward here and secondly, I think you know given the fact that we are now well positioned to be fully funded for this year and have actually a kitty for next year as well here. We are going to continue to be very judicious more so I think with the ATM over the next.

Jeff Lucas: And secondly, I think, you know, given the fact that we are now, well, positioned to be fully funded for this year and have actually a kitty for next year as well here, we are going to continue to be very judicious, more so, I think, with the ATM over the next several months.

Ben Ganyan: And then just one more, you know, with the 120 megawatts in Pennsylvania, do you have a, you know, a goal, something aspirational? Like you would, I don't like to get another hundred, another 300 of committed megawatts in 25 in the US. How do we think about what you want to do next in the US? Yeah, it's a great question. You know, when you look at our portfolio of energy assets, what you'll see is that right now the US is very underrepresented.

Speaker Change: Seven months.

Joseph Flynn: Thanks.

Speaker Change: Thanks, and maybe if you could.

Ben Danyan: And maybe if you could, you know, comment on the, you know, the strategic alternatives process. Joseph, just really any color there would be helpful. Sure. Happy to, you know, be special committee, obviously in consultation with its financial and legal and strategic advisors, did conduct a thorough review of all the different strategic alternatives in an effort to match my shareholder value. Really following the completion of this process based on, you know, the new strategic plan that we're moving forward with. The special committee has unanimously determined that, and really a certain that given all the compelling opportunities ahead for value creation, the best path forward to maximize value for all shareholders is to just move forward with our standalone plan.

Speaker Change: Comment on the.

Speaker Change: The strategic alternatives process.

Speaker Change: Just really any color there would be helpful.

Jeff Lucas: Sure. Happy to,

Speaker Change: Sure.

Speaker Change: Happy to be special Committee, obviously in consultation with its financial and legal and strategic advisors did conduct a thorough review of all the different strategic alternatives in an effort to maximize shareholder value.

Ben Ganyan: You know, we only have currently active and hashing the 20 megawatts that we have in Washington, but we do have I think the best developed international portfolio. What we'd like to do next year is rebalance that portfolio with much greater emphasis on the United States, but we're not going to, we're not going to pursue growth opportunities that are too expensive. They don't make sense for us. We're very, very disciplined and selective in choosing growth opportunities that we think are long term economically sustainable.

Ben Gagnon: You know, the special committee, obviously, in consultation with its financial, legal, and strategic advisors, did conduct a thorough review of all the different strategic alternatives in an effort to match my shareholder value. Following the completion of this process based on, you know, the new strategic plan that we're moving forward with, the special committee has unanimously determined that, and is really certain, that given all of the compelling opportunities ahead for value creation, the best path forward to maximize value for all shareholders is to just move forward with their standalone plan. Obviously, the board and management team remain open to any and all opportunities that may deliver value to shareholders. But right now, by far, the best opportunity is moving forward with standalone.

Speaker Change: Really following the completion of this process based on.

Speaker Change: The new strategic plan that we're moving forward with the special Committee has unanimously determined that and really a certain that given all of the compelling opportunities ahead for value creation. The best path forward to maximize value for our shareholders is to just move forward with our Standalone plan.

Ben Danyan: Obviously, the board and management team remain open to any and all opportunities that may deliver value to shareholders. But right now, by far, the best opportunity is just moving forward to stand up.

Speaker Change: Obviously, the board and management team remain open to any and all opportunities that may deliver value to shareholders.

Speaker Change: But right now by far the best opportunity is moving forward with Standalone.

Ben Ganyan: And that means that, you know, we're not targeting a specific megawatt. What we're targeting is a specific profile. And that profile is a long term competitive energy profile that is not just suitable for Bitcoin, but is suitable for multiple applications. And so I can't provide a specific megawatt number that we're targeting, but what we are looking to do is constantly integrate competitive energy prices that are going to help us manage our energy price and drive those costs lower across the entire portfolio. Julia, that's helpful.

Ben Danyan: Great. Thanks.

Speaker Change: Great. Thanks.

Brett Knoblauch: Thank you. Your next question is coming from Brett. No, Black from Cantor Fitzgerald. Your line is live. Hi guys.

Operator: Thank you. Your next question is coming from Brett Noblek from Cantor Fitzgerald.

Operator: Thank you. Your next question is coming from Brett Noble from Kansas.

Speaker Change: Thank you. Your next question is coming from Brett <unk> from Cantor Fitzgerald. Your line is live.

Thomas Shinsky: Hi guys, this is Thomas Shinsky on for Brett. Congratulations, Ben, on the new position within the team. I guess on Sharon and new site acquisitions, you mentioned that, you know, Sharon being close to a bunch of metropolitan areas is a good characteristic for AIHPC.

Brett Noble: Hi, guys. This is Thomas Shinsky on for Brett. Congratulations, Ben, on your new position within the team. I guess on Sharon and new site acquisitions, you mentioned that, you know, Sharon being close to a bunch of metropolitan areas is a good characteristic for AIHPC. I guess as you're looking in the PGM region, are you considering this characteristic for future site acquisitions? Yeah, I guess that's my question.

Speaker Change: Hi, guys. This is Thomas shouldn't stay on for Brett.

Ben Danyan: This is Thomas Shinsky on for Brett. Congrats, Ben, on the new position within the team. I guess on Sharon and new site acquisitions, you mentioned that, you know, Sharon being close to a bunch of metropolitan metropolitan metropolitan areas is a good characteristic for the AIHPC. I guess as you're looking in the PGM region, are you considering this characteristic for future site acquisitions? Yeah, I guess that's my question. Thanks, Tom.

Congrats ban: Congrats ban on the new position within the team.

Thomas: I guess on Sharon and news site acquisitions, you mentioned that you know Sharon being close to a bunch of metropolitan are met.

Speaker Change: Metro pilots in areas as good.

Ben Ganyan: Hey, thank you. Thank you, Mike. Thank you.

Thomas: Terrific for the H P C.

Congrats ban: Yes.

Speaker Change: As you're looking in the PJM region are you are you considering this characteristic for future site acquisitions.

Lucas Pipes: Your next question is coming from Lucas Pipes from Be Rylee. Your line is live. Thank you very much for being here.

Peter Sibeline: Good morning, everyone. This is Feather Sibeline asking questions on behalf of local Pipes. First of all, Ben and Jeff congrats on a good progress this quarter. And my first one is on your Sharon site in Pennsylvania. So last week, PJM held an auction and prices in 2025, 26, that will roughly 10 times higher compared to 2023, 2024. And so the question is, where are you right now in terms of power supply for this site?

Speaker Change: Yeah, I guess, that's my question.

Congrats ban: Yeah.

Speaker Change: Thanks, Tom Yes, its one of many things that we're looking at now with a different energy assets with the corporate development team.

Ben Danyan: Yeah, it's one of many things that we're looking at now with different energy assets with the corporate development team. We're not only looking for sites that are good for Bitcoin mining. We're looking at sites that will help us, as we said, diversify and expand beyond Bitcoin mining itself. So this means we're looking for sites that have more than one good application. Sometimes a site may only be good for one of the two applications. Maybe it's only good for Bitcoin mining. Maybe it's only good for HPC and AI, ideally, and it's much harder to find those opportunities, but ideally you find an energy profile that's good for both.

Speaker Change: We're not only looking for sites that are good for bitcoin mining. We're looking at sites that will help us as we said diversify and expand beyond bitcoin mining itself. So this means we're looking for sites that have more than one good application, sometimes a site may only it could be good for one of the two applications, maybe it's only good for bitcoin mining.

Ben Gagnon: Thanks, Tom. As we said, diversify and expand beyond Bitcoin mining itself. So this means we're looking for sites that have more than one good application. Sometimes a site may only be good for one of the two applications. Maybe it's only good for Bitcoin mining. Maybe it's only good for HPC and AI. Ideally, and it's much harder to find those opportunities, but ideally, you find an energy profile that's good for both

Speaker Change: Maybe it's only good for H B C N AI ideally.

Peter Sibeline: And how are we going to negotiate today? Is it going to be BPA or something else? And what pricing range do you anticipate per megawatt hour here? Thanks very much for your perspective. Thanks, Peter. When we're looking at the Sharon site, one of the benefits there is that we do have, as we said, in the in the call, we have multiple different power providers that we can work with at that site.

Congrats ban: And it's much harder to find those opportunities, but ideally you find an energy profile that's good for both.

Ben Danyan: Awesome.

Speaker Change: Awesome.

Ben Gagnon: and then just on the customer front. I know this is a little bit down the road. But do you have your idea of, you know, an ideal co-location customer on the AI HPC front? I know there's, you know, talk of hyperscalers, enterprises, you know, AI startups, who are a bit of a riskier play because you don't know the, you know, longevity of the, you know, hosting contract. So just your thoughts there. Yeah, you know, it's a good question.

Ben Danyan: And then just on the customer front, I know this is a little bit of ways down the road, but do you have your idea on, you know, an ideal co-location customer on the AIHPC front? I know there's a talk of hyperscalers, enterprises, and AI startups who are a bit of a more risky plug because you don't know the longevity of the hosting contract, so just your thoughts there. Yeah, you know, it's a good question. One of the things that we like about Bitcoin mining is that we have no customers, right? When we plug in Bitcoin mining compute, the customers, the network itself, and it becomes very, very easy for us to operate our business.

Speaker Change: And then just on the customer front I know this is a little bit a ways down the road.

Speaker Change:

Speaker Change: But do you ever your idea on an ideal co location customer on the H P. C front I know there's.

Speaker Change: Talk of Hyperscale or enterprises.

Peter Sibeline: We haven't locked in prices or power provider yet. But what we do know is that because of the reduction of thermal generating assets in PJM and because of the increase in renewable assets, what that means is that there's a lot more opportunity around the energy trading specifically. The capacity are the capacity value that these very reliable base loads are able to secure. And the reason why that has increased so much is because of the massive reduction in thermal assets that is taking place and replacement with those renewables.

Speaker Change: Startups, who are a bit of a more rescue player because you don't know the.

Speaker Change: Longevity of the AR.

Speaker Change: Of the hosting contracts so just your thoughts there.

Ben Gagnon: Yeah, you know, it's a good question. And one of the things that we like about Bitcoin mining is that we have no customers. Right, when we plug in Bitcoin mining, compute the customers, the network itself, and it becomes very, very easy for us to operate our business. When we look at HPC and AI, you know, we don't want to get into the business of developing a sales force and building out a software platform and marketing to individual customers.

Unknown Executive: Yeah, you know, it's a good question.

Speaker Change: Yeah. It's.

Speaker Change: Good question one of the things that we would like about bitcoin mining is that we have no customers right. When we plug in bitcoin mining compute the customers the network itself.

Speaker Change: And it becomes very very easy for us to operate our business when we look at HBC and AI.

Ben Danyan: When we look at HPC and AI, you know, we don't want to get into the business of developing a Salesforce and building out a software platform and marketing out to individual customers. Our primary focus here is again on developing, building, and operating the high quality electrical infrastructure. And so, you know, our ideal customer would be a hyperscaler, probably, or somebody with a very, very strong credit profile and strong balance sheet. That we can work with to take all the capacity and only work with one customer and leave them to handle how they're going to sell off the compute or monetize the compute on their own.

Speaker Change: Don't want to get into the business of developing a sales force and building out our software platform and marketing out to individual customers. Our primary focus here is again on developing building and operating the high quality electrical infrastructure and so our ideal customer would be a hyperscale are probably.

Ben Gagnon: Our primary focus here is, again, on developing, building, and operating high-quality electrical infrastructure. And so, you know, our ideal customer would be a hyperscaler, probably, or somebody with a very, very strong credit profile and a strong balance sheet that we can work with to take all the capacity and only work with one customer and leave them to handle how they're going to sell off the compute or monetize the compute on their end. Awesome, Thank you.

Peter Sibeline: And so we haven't locked in a fixed price and it would be hard to guarantee exactly what that price will be because the prices are subject to a lot of change. But what we do know is that it increases the amount of opportunity around trading the energy. Thank you. Thanks very much. And my follow-up is on HBC signs, just a little bit more details here. But beyond what you mentioned in the release, you touch on the patterns and things in this segment.

Speaker Change: Or somebody with a very very strong credit profile and strong balance sheet.

Speaker Change: That we can work with to take all of the capacity and only work with one customer and leave them to handle how theyre going to sell off the compute or monetize the compute on their end.

Ben Danyan: Scott. Awesome.

Unknown Executive: Awesome, Thank you.

Speaker Change: Awesome. Thank you.

Ben Danyan: Thank you. Thanks, Tom.

Dan: Thanks, Dan Thank you.

Martin Toner: Thank you. Your next question is coming from Martin Toner from ATV Capital. Your line is live. Welcome back, Martin. Maybe once again, Martin. Your line is live. Hey, thanks. Sorry for the mix-up there. My last question.

Peter Sibeline: But other players are already building HBC capacity and some AI cloud. And what what a perspective on how you're going to use some of your capacity for this purpose just potentially is going to be HBC or AI cloud. You're going to purchase your GPUs for your own use or going to be just kind of mix of it and where it will be possibly deployed additionally to Sharon. And what's your plan? And the important one is what's your plan to finance this comprehensive segment?

Operator: Your next question is coming from Martin Toner from ATV Capital.

Speaker Change: Your next question is coming from Martin Toner from ATV capital. Your line is live.

Martin Toner: Welcome back Martin.

Martin Toner: Once again, Martin, your line is live.

Speaker Change: Maybe once again Martin your line is live.

Martin Toner: Hey, thanks. Sorry for the mix-up there. My last question: Was the result of the PJM reserve auction such that you were more confident about what your cost of mine would be in that region?

Martin Toner: Hey, Thanks, sorry for the mix up there my last question.

Martin Toner: Was the result of the PGM reserve auction that you were more confident about what your cost of money would be in that region? We're still working on locking in our power provider there in Sharon. The auction that just took place really is primarily for people who are providing a base load capacity to the grid. That doesn't necessarily directly impact what we do here. What it means is that those thermal generating assets and those more stable baseline assets are increasingly more valuable, and that's due to the increase of amount of renewables on the grid and the increasing value associated with grid stabilization programs. It's not entirely clear the exact math and the exact uptimes for these different sites given the auction that took place.

Martin Toner: Was the result of the PJM reserve auction that you were more confident about.

Speaker Change: What your cost of mine would be in that region.

Ben Gagnon: We're still working on locking in our power provider there in Sharon. So, you know, the auction that just took place really is primarily for people who are providing base load capacity to the grid. That doesn't necessarily directly impact, you know, what we do here.

Speaker Change: We're still working on locking in our power provider there in Sharon.

Peter Sibeline: How do we do that? Use ATM or DEF? Thank you. Another great question, Sador. I mean, when you look at the different compute markets, very clearly the capital requirements associated with HBC and AI are significantly different. You know, when we look at what is our rough cost to build out 1x the hash of compute power, or sorry, 1 megawatt of compute power with T21. It's roughly a million dollars in megawatt. Just to build out the infrastructure for HBC and AI, most estimates are putting it at 10 million dollars on megawatt or more.

Speaker Change: So the auction that just took place really is primarily for people who are providing.

Unknown Executive: base load capacity to the grid. That doesn't necessarily directly impact, you know, what we do here.

Speaker Change: Baseload capacity to the grid.

Speaker Change: That doesn't necessarily directly impact.

Unknown Executive: What it means is that those thermal generating assets and those more stable baseline assets are increasingly more valuable. And that's due to the increase in the amount of renewables on the grid and the increasing value associated with grid stabilization programs. So, you know, it's not entirely clear the exact math and the exact uptimes for these different sites given the auction that took place. But what is certain is that these energy trading and grid stabilization opportunities have tremendous and increasing value in the light of a changing energy profile in PJM.

Ben Gagnon: What it means is that those thermal generating assets and those more stable baseline assets are increasingly more valuable. And that's due to the increase in the amount of renewables on the grid and the increasing value associated with grid stabilization programs. So, you know, it's not entirely clear the exact math and the exact uptimes for these different sites, given the auction that took place. But what is certain is that these energy trading and grid stabilization opportunities have tremendous and increasing value in the light of a changing energy profile in PJM.

Speaker Change: What we do here what it means is that those thermal generating assets and those more stable baseline assets are increasingly more valuable and that's due to the increase.

Speaker Change: Increase of amount of renewables on the grid and the increase in the value associated with grid stabilization programs. So.

Peter Sibeline: When you include the value of the compute in that, it can easily go up to 30 to 40 million dollars in megawatt. We don't have any interest, and Buying the Actual HPCNAI Compute. But we have an interest in is developing, owning and operating the infrastructure that provides the power to the HPCNAI Compute. And there are so many hyperscalers and so many companies right now trying to deploy GPUs that we don't have to worry about how those, we don't have to worry about the actual value of the Compute Hardware who's going to pay for it because there are so many parties who want that space and who are valuing the infrastructure.

Speaker Change: It's not entirely clear the exact math and the exact up times for these different sites given the auction that took place but what is certain is that these energy trading and grid stabilization opportunities have tremendous and increasing value in the light of the changing energy profile.

Ben Danyan: But what it is certain is that these energy trading and grid stabilization opportunities have tremendous and increasing value in the light of a changing energy profile in PGM. Great. Thank you for that. Thank you.

Speaker Change: While in PJM.

Unknown Executive: Great. Thank you. Thank you. That's it for me.

Martin Toner: Great. Thank you for doing this for me. Thanks. That's it for me.

Speaker Change: Great. Thank you.

Speaker Change: That's it for me.

Operator: Thank you. That concludes our Q&A session. I will now hand the conference back to Bing and Yan for Closing Remarks. Please go ahead.

Operator: Thank you. That concludes our Q&A session. I'll now hand the conference back to Bing and Yon from...

Speaker Change: Thank you that concludes our Q&A session I will now hand, the conference back to being in young from closing remarks. Please go ahead.

Operator: That concludes our next session.

Ben Danyan: I'll now hand the conference back to Binganyan from closing remarks. Please go ahead. Thanks.

Peter Sibeline: Our core competencies and strengths is on building and operating energy infrastructure. So that's where we're going to focus our efforts. When it comes to the financing question, I mean, this is still very much open to very different structures. But what I can say is that based on the numerous conversations we've had with different parties so far, there is no shortage of different financing opportunities and financing structures available. To help finance the construction of these different infrastructures and these different opportunities. Thank you so much for your perspective and Mr. Flodden. Thank you. Thank you so much. Thank you.

Speaker Change: Thanks.

Ben Danyan: Just want to thank everyone, really briefly, for joining us on today's calls and reiterate I'm very excited about our growth opportunities and look forward to updating you on all future developments. Thank you very much. Thank you all. Thank you. Thank you, everyone.

Bing Young: Just want to thank everyone really briefly for joining us on today's call and reiterate I'm very excited about our growth opportunities and look forward to updating you on all future developments. Thank you very much.

Speaker Change: Thank you well I think.

Speaker Change: Thank you everyone. This concludes today's event you may disconnect at this time and have a wonderful day.

Operator: This concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.

Speaker Change: You for your participation.

Martin Toner: Your next question is coming from Martin Toner from ATB Capital. Your line is live. Good morning. Thanks so much for taking a question. You mentioned not having broke ground in Sharon and that that create some flexibility for you. Can you talk to how long you're really to wait before you need to start committing to Bitcoin specific infrastructure development in Sharon and what, you know, the possibility of that putting pressure on your 2024 2025.

Martin Toner: Can you talk about how long you're going to wait before you start? Sure. So there's two different components to share and one, there's an immediately available 12 megawatts, which we're going to be, we're still finalizing the electrical plans for that and the site plan, but we'll be dropping in containers for that site to quickly deploy 12 megawatts by the end of the year. For the remaining capacity for that 120 megawatts, we have to build out the substation.

Martin Toner: We're expecting to break ground on that at the beginning of next year. And when we look at when we actually need to start building out and finalizing what we're doing there with the data center and the allocation of those megawatts, we really need to have that decision or be working towards that decision within Q4 with hopefully a final decision.

Ben Ganyan: And sometime at the end of Q4, or at the beginning of Q1, if we want to meet those timelines at the end of 2025. That's great. Yes. I mean, words of your mouth, some of the initial build out is the same regardless of HPC or Bitcoin line. Yes, for the first 12 megawatts, since there's already location, since there's already capacity there, it's a very, very quick build out. We are going to drop containers for both for the convenience, the speed, and also the flexibility that if we do want to convert over those 12 megawatts later, they can be refurbished at a different location.

Ben Ganyan: Fantastic, and can you talk about whether or not you have the building capability in Pennsylvania and the necessary materials, like access to materials for the substation, transformers, switches, etc. To be able to deliver that HPC compute in your stated timeline, which starts at 12 months. For HPC and I compute specifically, no, we do not have on hand the necessary equipment for that, and the reason for that is because we haven't determined the final plan there.

Ben Ganyan: No, when we have determined the final plan for what we're going to do with the Sharon megawatts, that's when we'll go out and start procuring that equipment. So, no, currently we do not have the necessary equipment for an HPC and I build and Sharon specifically. Okay, thanks so much, do you see that as being a potential bottleneck or you guys confident that you have the relationships and access to necessary materials and equipment.

Ben Ganyan: We have at this point, you know, over 12 months, 12 to 16 months if we wanted to get that energized by the end of the year, and I think the most realistic timeline for HPC I build is really Q4 or Q1, which extends that timeline out to possibly 19 months. That gives us, I think sufficient timeline to go out and procure those equipment, giving our position in our existing industrial relationships with suppliers.

Ben Ganyan: Okay, fantastic, that's great. Just wondering on the, you know, I mean, I think we're all very, very curious on the pipeline of development opportunities. I mean, wondering, I mean, what are the chances that there's another Sharon out there? You know, is it possible that it could be in a different US ISO? And is it possible it could be somewhere in some other countries? Yeah, it's a great question. You know, we have a, we do have a global view towards new opportunities and growth opportunities.

Ben Ganyan: Again, with a focus on securing the right energy profile and securing something that we believe is going to be economically sustainable for many years to come, and certainly there are opportunities all around the world. But what we're going to be focusing on over the, you know, 2025 and beyond and even currently right now in our development pipeline, what we're currently focusing on is increasing our US exposure. We think that there are tremendous opportunities in the United States, and we do really like the PJM region. It's gotten numerous benefits in terms of its procurement programs, demand response programs, opportunities for hedging and energy trading.

Ben Ganyan: We think there are more opportunities like Sharon out there, and we would love to pursue more opportunities in PJM. That's great. Thanks very much. Is it fair to say the market has tightened since early June for Power development opportunity. There's always power available. You know, sites are constantly turning over what I don't know if necessary, the market's tightened, but certainly the demand and the interest did, the interested parties for more power is increasing rapidly.

Ben Ganyan: So I don't know if market conditions are necessarily tightened. Take this in the call. Can we talk to you tonight? Sorry, can you repeat that? Thank you. Your next question is coming from Joe Flynn from Compass Point Research and Trading. Your line is live. Let's first talk about where we are here. We've already pointed out that we are fully funded for that. Let me give you some hard context to that. We pointed out that we have almost $200 million of liquidity and that our cash flow from operations over the next several months is projected to be around anywhere between $8 to $12 million a month to our roughly 50 to $55 million here.

Ben Ganyan: In terms of what we have left to spend here for the year and targets here, we've figured out we have roughly, at this point in time, we need to spend about another, we figure another $50 million will we have remaining here for the infrastructure buildouts. And that's primarily really what you want to do in the finishing that completion. And then secondly here for the miners, we have remaining payments of roughly about $67 million from miners with the other $20 to $25 million just for imports to do these insurance.

Ben Ganyan: So overall, we're envisioning an additional tax requirement for this year roughly around $140 million, which again, we're very well positioned here forward. Now what we are not reflecting here yet is what our plans are for next year in terms of our catbacks, and that's still unfolding, particularly as things move ahead with sharing another opportunity here. So while we're feeling pretty well positioned at this point in time, that's something that will be addressing more in the future here.

Ben Ganyan: In reference to our ATM here, we've actually given the fact that our shares are now below $2. We've actually stepped back very, very dramatically in what we're doing currently ATM because we're going to be very selected going forward here. We again have the benefit of a strong cash flow from operations, the funders are going forward here. And secondly, I think, you know, given the fact that we are now well positioned to be fully funded for this year and have actually a kitty for next year as well here, we are going to continue to be very judicious more so I think with the ATM for the next seven months.

Ben Ganyan: And maybe if you could, you know, comment on the, you know, and you know, the strategic alternatives process. Joseph, just really any color there would be helpful. Sure. Happy to, you know, be special committee. Obviously in consultation with its financial and legal and strategic advisers did conduct a thorough review of all the different strategic alternatives in an effort to match my shareholder value. Really following the completion of this process based on, you know, the new strategic plan that we're moving forward with the special committee has unanimously determined that and really a certain that given all the compelling opportunities ahead for value creation. The best path forward to maximize value for all shareholders is to just move forward with their standalone plan. Obviously, the board and management team remain open to any and all opportunities that may deliver value shareholders.

Joseph Flynn: But right now, by far, the best opportunity is just moving forward to stand up. Great. Thanks.

Brett Knoblauch: Thank you. Your next question is coming from Brett. No, black from Cantor Fitzgerald. Your line is live. Hi guys. This is Thomas Shinsky on for Brett.

Thomas Shinsky: Congrats, Ben, on the new position within the team. I guess on Sharon and new site acquisitions, you mentioned that, you know, Sharon being close to a bunch of metropolitan metropolitan metropolitan areas is a good characteristic for the AIHPC. I guess as you're looking in the PGM region, are you are you considering this characteristic for future site acquisitions? Yeah, I guess that's my question. Thanks, Tom. Yeah, it's one of many things that we're looking at now with different energy assets with the corporate development team.

Thomas Shinsky: We're not only looking for sites that are good for Bitcoin mining. We're looking at sites that will help us, as we said, diversify and expand beyond Bitcoin mining itself. So this means we're looking for sites that have more than one good application. Sometimes a site may only be good for one of the two applications. Maybe it's only good for Bitcoin mining. Maybe it's only good for HPC and AI ideally. And it's much harder to find those opportunities, but ideally you find an energy profile that's good for both. Awesome.

Ben Ganyan: And then just on the customer front, I know this is a little bit of ways down the road. But do you have your idea on ideal co-location customer on the AIHPC front? I know there's a talk of hyperscalers, enterprises, AI startups who are a bit of a more risky plague because you don't know the longevity of the hosting contract. So just your thoughts there. Yeah, you know, it's a good question. One of the things that we like about Bitcoin mining is that we have no customers, right?

Ben Ganyan: When we plug in Bitcoin mining compute the customers to network itself. And it becomes very, very easy for us to operate our business. When we look at HPC and AI, we don't want to get into the business of developing a Salesforce and building out a software platform and marketing out to individual customers. Our primary focus here is again on developing, building and operating the high quality electrical infrastructure. And so, you know, our ideal customer would be a hyperscaler probably or somebody with a very, very strong credit profile and strong balance sheet that we can work with to take all the capacity and only work with one customer and leave them to handle how they're going to sell off the compute or monetize the compute on their end. Thank you. Thanks, Tom. Thank you.

Martin Toner: Your next question is coming from Martin Toner from ATV Capital. Your line is live. Welcome back, Martin.

Martin Toner: Maybe. Once again, Martin, your line is live. Hey, thanks. Sorry for the mix up there.

Ben Ganyan: My last question. Was the result of the PGM reserve auction that you were more confident about what your cost of money would be in that region? We're still working on locking in our power provider there in Sharon. So, you know, the auction that just took place really is primarily for people who are providing a base load capacity to the grid. That doesn't necessarily directly impact, you know, what we do here. What it means is that those thermal generating assets and those more stable baseline assets are increasingly more valuable.

Ben Ganyan: And that's due to the increase of amount of renewables on the grid and the increasing value associated with grid stabilization programs. So, you know, it's not entirely clear the exact math and the exact uptimes for these different sites given the auction that took place. But what it is certain is that these energy trading and grid stabilization opportunities have tremendous and increasing value in the light of a changing energy profile in PJM.

Martin Toner: Great. Thank you.

Ben Ganyan: That concludes our meeting session. I'll now hand the conference back to Bing and Yon from closing remarks. Please go ahead. Thanks. Just want to thank everyone really briefly for joining us on today's calls and reiterate. I'm very excited about our growth opportunities and look forward to updating you on all future developments. Thank you very much. Thank you all. Thank you, everyone.

Unknown Executive: This concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.