Full Year 2025 IREN Ltd Earnings Call

Today's conference is being recorded after the speaker's presentation there'll be a question and answer session to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again I would now like to hand, the conference over to your Speaker today, Mike Bauer VP.

Operator: I would now like to hand the conference over to your speaker today, Mike Power, VP Investor Relations.

Operator: Starting a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. I would now like to hand the conference over to your speaker today, Mike Power, Vice President of Investor Relations.

Investor Relations.

Thank you operator, good afternoon, and welcome to Islands FY 'twenty 25 results presentation. My name is Mike power VP of Investor Relations and with me on the call today are Daniel Roberts co founder and co CEO.

Mike Power: Thank you, operator. Good afternoon. Welcome to IREN's FY 2025 Results Presentation. My name is Mike Power, VP of Investor Relations, and with me on the call today are Daniel Roberts, Co-Founder and Co-CEO, Belinda Nucifora, CFO, Anthony Lewis, Chief Capital Officer, and Kent Draper, Chief Commercial Officer. Before we begin, please note that this call is being webcast live with a presentation. For those that have dialed in via phone, you can elect to ask a question via the moderator after our presentation. Before we begin, I would like to remind you that certain statements that we make during the conference call may constitute forward-looking statements, and IREN cautions listeners that forward-looking information and statements are based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of the company.

Mike Power: Thank you. Operator, good afternoon and welcome to IREN Ltd's FY 2025 results presentation. My name is Mike Power, VP of Investor Relations, and with me on the call today are Daniel Roberts, Co-Founder and Co-CEO, Belinda Nucifora, CFO, Anthony Lewis, Chief Capital Officer, and Kent Draper, Chief Commercial Officer. Before we begin, please note that this call is being webcast live with a presentation. For those that have dialed in via phone, you can elect to ask a question via the moderator after our presentation. Before we begin, I would like to remind you that certain statements that we make during the conference call may constitute forward-looking statements, and IREN Ltd cautions listeners that forward-looking information and statements are based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of the company.

Linda New Sephora, CFO, Anthony Lewis, Chief Capital Officer, and Kent, Try-pot, Chief Commercial officer.

Before we begin please note that this call is being webcast live with a presentation for those that have dialed in via phone you can elect to ask a question via the moderate after about presentation.

Before we begin I would like to remind you that certain statements that we make during the conference call may constitute forward looking statements and iron cautions listeners that forward looking information and statements are based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of the company listeners.

You should not place undue reliance on forward looking information or statements. Please refer to the disclaimer on slide two of the accompanying presentation.

Mike Power: Listeners should not place undue reliance on forward-looking information or statements. Please refer to the disclaimer on slide two of the accompanying presentation for more information. Thank you, I will now turn the call over to Daniel Roberts.

Mike Power: Listeners should not place undue reliance on forward-looking information or statements. Please refer to the disclaimer on slide 2 of the accompanying presentation for more information. Thank you, and I will now turn the call over to Daniel Roberts.

For more information, Thank you and I will now turn the call over to Dan Roberts.

Thanks Mark.

Good afternoon, everyone and thank you for joining air FY 2025 earnings call. So today.

Daniel Roberts: Thanks, Mike. Good afternoon, everyone, and thank you for joining our FY 2025 earnings call. Today, we will provide an update on our financial results for the fiscal year ended 30 June, along with some operational highlights and strategic updates across our business verticals. We'll then end the call with Q&A. FY 2025 was a breakout year for us, both operationally and financially. We delivered record results across the board, including 10 times EBITDA growth year on year and strong net income, which Belinda will discuss shortly. Operationally, we scaled at an unprecedented pace. We increased our contracted grid-connected power by over a third to nearly 3 GW and more than tripled our operating data center capacity to 810 MW, all at a time when power, land, and data center shortages continue to persist across the industry.

Daniel Roberts: Thanks, Mike. Good afternoon, everyone, and thank you for joining our FY 2025 earnings call. Today, we will provide an update on our financial results for the fiscal year ended June 30, along with some operational highlights and strategic updates across our business verticals. We'll then end the call with Q&A. FY 2025 was a breakout year for us, both operationally and financially. We delivered record results across the board, including 10x EBITDA growth year on year and strong net income, which Belinda will discuss shortly. Operationally, we scaled at an unprecedented pace. We increased our contracted grid-connected power by over a third, to nearly 3 gigawatts, and more than tripled our operating data center capacity to 810 megawatts, at a time when power, land, and data center shortages continue to persist across the industry.

We will provide an update on our financial results for the fiscal year ended June 30, along with some operational highlights and strategic updates across our business verticals will then end the call with Q&A.

So FY 'twenty five was a breakout year for us both operationally and financially.

We delivered record results across the board.

Including 10 times EBITDA growth year on year.

And strong net income, which Linda will discuss shortly.

Operationally, we scaled at an unprecedented pace.

We increased our contracted grid connected power by over a third.

Two nearly three gigawatts and.

And more than tripled our operating data center capacity to 810 megawatts.

All of the time when Pal land.

In data center shortages continue to persist across the industry.

We expanded our bitcoin mining capacity, 400% to.

Daniel Roberts: We expanded our Bitcoin mining capacity 400% to 50 exahash, and in the process, cemented our position as the most profitable large-scale public Bitcoin miner. At the same time, we made huge strides in AI, scaling GPU deployments to support a growing roster of customers across both training and inference workloads. We also commenced construction of Horizon 1, our first direct-to-chip liquid-cooled AI data center, and Sweetwater, our 2-gigawatt data center hub in West Texas, one of the largest data center developments in the world and a cornerstone of our future growth plans. These achievements underscore the strength of our execution and the earnings potential of our expanding data center and compute platform. We expect this momentum to carry into FY 2026 and beyond as we realize the revenue potential of our 50 exahash platform and advance our core AI growth initiatives.

Daniel Roberts: We expanded our Bitcoin mining capacity 400% to 50 exahash and in the process cemented our position as the most profitable large-scale public Bitcoin miner. At the same time, we made huge strides in AI, scaling GPU deployments to support a growing roster of customers across both training and inference workloads. We also commenced construction of Horizon One, our first directorship liquid-cooled AI data center, and Sweetwater, our 2-gigawatt data center hub in West Texas, one of the largest data center developments in the world and a cornerstone of our future growth plans. These achievements underscore the strength of our execution and the earnings potential of our expanding data center and compute platform. We expect this momentum to carry into FY 2026 and beyond as we realize the revenue potential of our 50 exahash platform and advance our core AI growth initiatives.

50 ex cash.

And in the process remains of their position as the most profitable large scale public between mono.

At the same time, we made huge strides in IR.

<unk> GPU deployments to support a growing roster of customers across both training and inference workloads.

We also commenced construction.

Our horizon, one our first direct to cheap liquid cooling II data center.

And Sweetwater, two gigawatt got us into hobby in West Texas.

The largest data center developments in the world.

And a cornerstone of our future growth plans.

These achievements underscore the strength.

Of our execution and the earnings potential of our expanding data center compute platform.

We expect this momentum to carry into statewide 26 and beyond because we realize the revenue potential of <unk> platform.

And advance our four growth initiatives.

So it reflecting on current operations.

Daniel Roberts: Reflecting on current operations, our AI cloud business is scaling rapidly, with more than 10,000 GPUs online or being commissioned in the coming months. Backed by multiple tranches of non-dilutive single-digit GPU financing, this rollout will feature next-generation liquid-cooled NVIDIA GB300 NVL72 systems at our Prince George campus. This strengthens our position as a leading AI cloud provider and a newly designated NVIDIA preferred partner. In parallel, while we have paused meaningful mining expansion, our 50 exahash platform continues to generate meaningful cash flow, over $1 billion a year in annualized revenue at the current economics, supporting our continued growth in AI. Together, these operations are approaching annualized revenue of $1.25 billion. That's the scale we're delivering today. However, the clear visibility to continued growth ahead is something we're quite excited about.

Daniel Roberts: Reflecting on current operations, our AI cloud business is scaling rapidly with more than 10,000 GPUs online or being commissioned in the coming months. Backed by multiple tranches of non-dilutive single-digit GPU financing, this rollout will feature next-generation liquid-cooled NVIDIA GB300 NVL72 systems at our Prince George campus. This strengthens our position as a leading AI cloud provider and a newly designated NVIDIA preferred partner. In parallel, while we have paused meaningful mining expansion, our 50 exahash platform continues to generate meaningful cash flow, over $1 billion a year in annualized revenue at the current economics, supporting our continued growth in AI. Together, these operations are approaching annualized revenue of $1.25 billion. That's the scale we're delivering today. However, the clear visibility to continued growth ahead is something we're quite excited about.

Our cloud business is scaling rapidly with more than 10000 Gpus.

Online or being commissioned in the coming months.

Backed by multiple tranches of non dilutive single digit GPU financing.

This rollout will feature next generation liquid cooled.

Nvidia JV 300, NBL 72 systems at our Prince George campus.

This strengthens our position as a leading IR cloud, Nevada and.

And a newly designated Nvidia preferred partner.

In parallel while we paused meaningful mining.

Mining expansion a P <unk> <unk>.

Platform continues to generate meaningful cash flow.

Over $1 billion a year in annualized revenue at the kind of economics supporting our continued growth in IR.

Together. These operations are approaching an annualized revenue of one point to $5 billion.

That's the skyway delivering today, however, the clear visibility to continued growth ahead.

It's something we're quite excited about.

On that note.

S strategies focused on scaling across the full AI infrastructure stack.

Daniel Roberts: On that note, our strategy is focused on scaling across the full AI infrastructure stack, from grid-connected transmission line all the way down to the digital world compute. With a strong track record building power-dense data centers and operating GPU workloads, we are uniquely positioned to serve AI customers end-to-end, from cloud services to turnkey cloud services, capturing a broad and growing addressable market. Beyond the current expansion to 10,000 GPUs, our 160 megawatts of operating capacity in British Columbia provides a path to deploy more than 60,000 NVIDIA GB300s, with Horizon One then offering the potential to scale that further to nearly 80,000. As we continue to assess market demand, this gives line of sight to billions in annualized revenue from our AI cloud business alone.

Daniel Roberts: On that note, our strategy's focused on scaling across the full AI infrastructure stack, from grid-connected transmission line all the way down to the digital world compute. With a strong track record building power-dense data centers and operating GPU workloads, we are uniquely positioned to serve AI customers end to end, from cloud services to turnkey location, capturing a broad and growing addressable market. Beyond the current expansion to 10,000 GPUs, our 160MW of operating capacity in BC provides a path to deploy more than 60,000 NVIDIA GB300s, with Horizon 1 then offering the potential to scale that further to nearly 80,000.

From grid connected transmission line, all the way down to the digital world compute.

With a strong track record building power dense data centers and operating GPU workloads, we are uniquely positioned to serve our customers and to and from.

From cloud services to turnkey location, capturing a broad and growing addressable market.

Beyond the current expansion 10000, Gpus at 160 megawatts of operating capacity in B C provides a path to deploy more than 60000, Nvidia G. B three hundreds.

With horizon, one then offering the potential to scale that further to nearly 80000.

As we continue to assess market demand. This give line of sight to billions in annualized revenue from our IR cloud business alone.

Daniel Roberts: As we continue to assess market demand, this gives line of sight to billions in annualized revenue from our AI cloud business alone. In terms of AI data centers, we're progressing three major data center projects to drive this revenue growth, as well as provide scope for future expansion. At Prince George in BC, we're continuing to transition existing capacity from Bitcoin to AI workloads with retrofits for air-cooled GPUs and the construction of a newly announced liquid-cooled data center underway to support our GB300 deployment. At Childress, Horizon 1 continues to remain on schedule for Q4 2025. Given strong demand signals, we've also begun site works and long lead procurement for Horizon 2, a second liquid-cooled facility. Together, these projects can support over 38,000 NVIDIA GB300s.

In terms of I O data centers, we're progressing three major data center projects to drive this revenue growth.

Daniel Roberts: In terms of AI data centers, we're progressing three major data center projects to drive this revenue growth, as well as provide scope for future expansion. At Prince George in British Columbia, we're continuing to transition existing capacity from Bitcoin mining to AI workloads, with retrofits for air-cooled GPUs and the construction of a newly announced liquid-cooled data center underway to support our GB300 deployment. At Childress, Horizon One continues to remain on schedule for Q4 2025. Given strong demand signals, we've also begun site works and long lead procurement for Horizon Two, a second liquid-cooled facility. Together, these projects can support over 38,000 NVIDIA GB300s. At Sweetwater, our flagship 2-gigawatt data center hub in West Texas, Sweetwater One remains on track for energization in April 2026. Construction is progressing well with key long-lead equipment either on-site already or on order. Upgrades to the utility substation have now commenced.

As well as provide scope for future expansion.

At Prince George and basically we're continuing to transition existing capacity from bitcoin to IR workloads with retrofits for air cooled Gpus and the construction.

The newly announced liquid cooled data center underway to support at GBP 300 deployment.

At children.

Horizon, one continues to remain on schedule for Q4 2025.

Given strong demand singles signals, we've also begun saltworks and long lead procurement for horizon, two was sacred liquid cooled facility.

Together these projects can support over 38000, Nvidia GBP 300.

At Sweetwater, our flagship two gigawatt data center hub in West Texas.

Daniel Roberts: At Sweetwater, our flagship 2 GW data center hub in West Texas, Sweetwater One remains on track for energization in April 2026. Construction is progressing well with key long lead equipment either on-site already or on order. Upgrades to the utility substation have now commenced. In summary, we've delivered record performance this year. We've got a clear AI growth path with near-term milestones. Most excitingly, we continue to position our platform ahead of the curve to monetize substantial opportunities in the AI infrastructure and compute markets. I'll now hand over to Belinda, who will walk through the FY 2025 results in more detail.

Sweetwater one remains on track for it.

<unk> in April 2026.

Construction is progressing well with key long lead equipment on their own sort of already on order.

Upgrades the utility substation have now commenced.

So in summary, we delivered record performance this year.

Daniel Roberts: In summary, we've delivered record performance this year. We've got a clear AI growth path with near-term milestones. Most excitingly, we continue to position our platform ahead of the curve to monetize substantial opportunities in the AI infrastructure and compute markets. I'll now hand over to Belinda, who will walk through the FY 2025 results in more detail.

We've got a clear growth path, we need to and milestones.

And most excitingly, we continue to transition our platform.

The curve to monetize substantial opportunities in the infrastructure and can be pockets.

I'll now hand over to Belinda, who will walk through the FY 'twenty five results in more detail.

Thank you Dan Good morning today from Sydney, and good afternoon Science in North America.

Belinda Nucifora: Thank you, Dan. Good morning to those in Sydney, and good afternoon to those in North America. As noted in our recent disclosures, we've completed our transition to a US domestic issuer status from 1 July this year. As such, we've reported our full-year results for the period ended 30 June 2025 under US GAAP and the required SEC regulations. For Q4 of FY 2025, we delivered a record revenue of $187 million, being an increase of $42 million from the previous quarter, primarily due to the record mining Bitcoin of $180 million as we operate at 50 exahash. During the quarter, we also delivered AI cloud revenue of $7 million.

Belinda Nucifora: Thank you, Dan. Good morning to those in Sydney and good afternoon to those in North America. As noted in our recent disclosures, we've completed our transition to a U.S. domestic issuer status from the 1st of July this year. As such, we've reported our full-year results for the period ended 30 June 2025 under U.S. GAAP and the required SEC regulations. For the fourth quarter of FY 2025, we delivered a record revenue of $187 million, being an increase of $42 million from the previous quarter, primarily due to the record Bitcoin mining of $180 million as we operate at 50 exahash. During the quarter, we also delivered AI cloud revenue of $7 million. Our Bitcoin mining business continues to perform strongly, supported by best-in-class fleet efficiency at 15 joules per terahash and low net power costs being $0.035 per kilowatt hour in Q4.

As noted in our recent disclosures we've completed our changes from Chilean U S. Domestic issuer status from the first of July this year.

And as such we reported our full year results for the period ended 30 June 2025 under U S GAAP and the required SEC regulations.

For the fourth quarter of FY 'twenty five went to live in a record revenue of $197 million.

Increase of $22 million from the previous quarter, primarily due to the record mining decline of 180 million absolutely operate at 50 ex ash.

During the quarter, we all signed to limit AI cloud revenue up $7 million.

A bitcoin mining business continues to perform strongly supported by best in class fleet efficiency at 15, gels, Katara hashed and alignment pallet costs paying $3.05 per kilowatt hour in key for.

Belinda Nucifora: Our Bitcoin mining business continues to perform strongly, supported by best-in-class fleet efficiency at 15 joules per terahash and low net power costs being $0.035 per kilowatt hour in Q4. Whilst our operating expenses increased to $114 million, primarily due to overheads and depreciation costs associated with our expanded data center platform and increased Bitcoin mining and GPU hardware, we've delivered a strong bottom line of $177 million. High margin revenues from our Bitcoin mining operations were a key driver of this profitability, with an all-in cash cost of $36K per Bitcoin mined versus an average realized price of $99K. Noting that these all-in costs incorporate expenses across our entire business, including the AI verticals, underscoring the strength of our platform.

<unk> operating expenses increased to $114 million, primarily jada either had some depreciation costs associated with our expanded data center platform and increase the Quin mining N. G. P hardware wait until they paid a strong bottom line of $177 million.

Belinda Nucifora: Whilst our operating expenses increased to $114 million, primarily due to overheads and depreciation costs associated with our expanded data center platform and increased Bitcoin mining and GPU hardware, we've delivered a strong bottom line of $177 million. High margin revenues from our Bitcoin mining operations were a key driver of this profitability, with an all-in cash cost of $36,000 per Bitcoin mined versus an average realized price of $99,000. Noting that these all-in costs incorporate expenses across our entire business, including the AI verticals, underscoring the strength of our platform. We closed the financial year with approximately $565 million of cash and $2.9 billion in total assets, giving us a strong balance sheet to support the next stage of growth. I'll now hand back to Dan to discuss the exciting growth opportunities that continue for IREN.

High margin revenue gains from that Bitcoin mining operations were a key driver of this profitability with an all in cash cost of 30, 6K pet a clean line.

Advent should realized price of 99 K.

Noting that these all in costs and corporate expenses across our Thai business, including the IR vehicles.

Scoring the strength of our platform.

We closed the financially with approximately $565 million of cash and $2 9 billion entitled assets, giving us a strong balance sheet to support the next stage of growth.

Belinda Nucifora: We closed the financial year with approximately $565 million of cash and $2.9 billion in total assets, giving us a strong balance sheet to support the next stage of growth. I'll now hand back to Dan to discuss the exciting growth opportunities that continue for IREN.

I'll now hand back to Dan to discuss the exciting growth opportunities that continue for Iran.

Thanks Melinda.

I think it's fair to say that the market backdrop for our cloud business is pretty compelling.

Daniel Roberts: Thanks, Belinda. I think it's fair to say that the market backdrop for our AI cloud business is pretty compelling. Industry reports demonstrate accelerating enterprise adoption of AI solutions and services with the percentage of organizations leveraging AI in more than one business function growing from 55% to 78% in the last 12 months alone. As almost all of us would know, demand is accelerating faster than supply. New model development, sovereign AI programs, and enterprise adoption are driving a step up in GPU needs, and the constraint is infrastructure and compute, not customer interest. Power availability, GPU-ready, high-density data center capacity remains scarce, with customers prioritizing speed to deploy and the ability to scale. IREN is uniquely positioned to meet this demand. Our vertical integration gives us control over the key bottlenecks. Significant near-term grid-connected power with data centers engineered for next-generation power dense compute.

Daniel Roberts: Thanks, Belinda. I think it's fair to say that the market backdrop for our AI cloud business is pretty compelling. Industry reports demonstrate accelerating enterprise adoption of AI solutions and services, with the percentage of organizations leveraging AI in more than one business function growing from 55% to 78% in the last 12 months alone. As almost all of us would know, demand is accelerating faster than supply. New model development, sovereign AI programs, and enterprise adoption are driving a step up in GPU needs, and the constraint is infrastructure and compute, not customer interest. Power availability, GPU-ready, high-density data center capacity remain scarce, with customers prioritizing speed to deploy and the ability to scale. IREN Ltd is uniquely positioned to meet this demand. Our vertical integration gives us control over the key bottlenecks.

Industry reports to demonstrate accelerating enterprise adoption of Iot solutions and services with the percentage of organization leveraging IR.

And more than one business function growing from 55% to 78% in the last 12 months alone.

As almost all of US would know demand is accelerating faster than supply.

New model development.

Silver and I O programs and enterprise adoption of driving the step up in GPU needs and the constraint is infrastructure and compute not customer interest.

Power availability GPU ready.

<unk> the data center capacity remains scarce.

With customers prioritizing speed to deploy.

And the ability to scale.

<unk> is uniquely positioned to maintenance demand.

Our vertical integration gives us control over the key bottlenecks.

Significant need term grid connected power with data centers engineered for next generation power dense compute.

Daniel Roberts: Significant near-term grid-connected power with data centers engineered for next-generation power-dense compute enables accelerated delivery timelines and rapid low-risk scaling. Because we own and operate the full end-to-end stack, we are able to deliver superior customer service, tighter control over efficiency, uptime, and service quality, translating directly into a better customer experience for our customers. We are leading our service with a bare-metal service because it gives sophisticated developers, cloud providers, and hyperscalers what they want most: direct access to compute and the flexibility to bring their own orchestration. As and when customer needs evolve, we have the flexibility to layer in software solutions to provide additional options to the customer. Our new status as an NVIDIA preferred partner is helpful in that regard. It enhances supply access and helps broaden our customer pipeline, supporting expansion across both existing relationships and new end users, platforms, and demand partners.

This enables accelerated delivery timelines and rapid low risk scaling.

Daniel Roberts: This enables accelerated delivery timelines and rapid low-risk scaling. Because we own and operate the full end-to-end stack, we are able to deliver superior customer service, tighter control over efficiency, uptime, and service quality, translating directly into a better customer experience for our customers. We are leading our service with a bare metal service because it gives sophisticated developers, cloud providers, and hyperscalers what they want most: direct access to compute and the flexibility to bring their own orchestration. As and when customer needs evolve, we have the flexibility to layer in software solutions to provide additional options to the customer. Our new status as an NVIDIA preferred partner is helpful in that regard. It enhances supply access and helps broaden our customer pipeline, supporting expansion across both existing relationships and new end users, platforms, and demand partners.

Because we own and operate the full and in stack.

We were able to deliver superior customer service.

To control over efficiency uptime.

Service quality translating directly into a better customer experience.

For our customers.

We are we are leaving our service with a bare metal service because it gives sophisticated developers cloud providers and <unk>, what they want most.

Direct access to compute and.

And the flexibility to bring their own orchestration.

As and when customer needs evolve, we have the flexibility to layer in software solutions to provide additional options to the customer.

Our new status as an immediate preferred partner is helpful in that regard.

It enhances supply access and helps broaden our customer pipeline.

Supporting expansion occur.

<unk> both existing relationships.

And new end users platforms and demand partners.

So the market is large it's accelerating supply is constrained and we have the platform to meet market demand for <unk> cloud and.

Daniel Roberts: The market is large, it's accelerating, supply is constrained, and we have the platform to meet market demand for AI cloud and meet that reasonably quickly. That is why we're immediately scaling to more than 10,000 GPUs, but also, now importantly, focusing on what comes next. Our 10,000 GPU expansion is underway. With it, we will be positioned at the front of the Blackwell demand curve, delivering first-to-market benefits. We saw this with our initial B200 deployment several weeks ago. Upon commissioning, it was immediately contracted on a multi-year basis. Importantly, we are funding growth in a CapEx efficient way. In the past week alone, we have secured two new tranches of financing, which have funded 100% of the purchase price of new GPUs at single-digit rates. Anthony will touch on this shortly, as well as what's next.

Daniel Roberts: The market is large, it's accelerating, supply is constrained, and we have the platform to meet market demand for AI cloud and meet that reasonably quickly. That is why we're immediately scaling to more than 10,000 GPUs, but also now, importantly, focusing on what comes next. Our 10,000 GPU expansion is underway. With it, we will be positioned at the front of the black world demand curve, delivering first-to-market benefits. We saw this with our initial B200 deployment several weeks ago. Upon commissioning, it was immediately contracted on a multi-year basis. Importantly, we are funding growth in a CapEx-efficient way. In the past week alone, we have secured two new tranches of financing, which have funded 100% of the purchase price of new GPUs at single-digit rates. Anthony will touch on this shortly, as well as what's next.

And make that reasonably quickly.

That is why we're immediately scaling to more than 10000 Gpus.

But also now importantly, focusing on what comes next.

So at 10000 GPU expansions underway.

With it we will be positioned at the front of the Blackwell demand curve delivering.

Delivering first market benefits.

We saw this with their initial beta 200 deployments several weeks ago.

Upon commissioning it was immediately contracted on a multiyear basis.

Importantly, we are funding growth in a capex efficient way.

In the past week alone we have secured two new tranches of financing.

Which is funded 100% of the purchase price.

New Gpus at single digit rates.

Anthony will touch on this shortly as well as what fixed.

In terms of revenue these gpus will be delivered and progressively commissioned over the coming months.

Daniel Roberts: In terms of revenue, these GPUs will be delivered and progressively commissioned over the coming months, targeting $200 to $250 million of annualized revenue by December this year. Approximately one exahash of ASICs will be displaced as a result, which we plan to reallocate to sites with available capacity, minimizing any impact to the overall 50 exahash installed hash rate. Finally, we also expect the strong margin profile of our AI cloud business to continue, underpinned by low power costs, but importantly, full ownership of our AI data centers, eliminating any third-party colocation fees from our cost base. Our Prince George campus will anchor this next phase of our AI cloud growth. As I alluded to earlier, we're pleased to announce today that construction is well underway on a new 10-megawatt liquid-cooled data center at Prince George, designed to support more than 4,500 Blackwell GB300 GPUs.

Daniel Roberts: In terms of revenue, these GPUs will be delivered and progressively commissioned over the coming months, targeting $200 to 250 million of annualized revenue by December 2024. Approximately 1 exahash of ASICs will be displaced as a result, which we plan to reallocate to sites with available capacity, minimizing any impact to the overall 50 exahash installed hash rate. Finally, we also expect the strong margin profile of our AI cloud business to continue, underpinned by low power costs, but importantly, full ownership of our AI data centers, eliminating any third-party colocation fees from our cost base. Our Prince George campus will anchor this next phase of our AI cloud growth.

<unk> $2 million to $250 million of annualized revenue by December this year.

Approximately one eggs hash of Asics will be displaced as a result.

Which we plan to reallocate and thoughts with available capacity minimizing any impact to the overall 50 eggs hash installed hash rate.

Finally, we also expect the strong margin profile of our <unk> business to continue.

Underpinned by low power costs.

Importantly, full ownership of our data centers.

Eliminating 83rd party co location space from our cost base.

Our Prince George Candace will anchor this next phase of our cloud growth.

So as I alluded to earlier, we are pleased to announce today that construction is well underway on a new 10 megawatt liquid cooled data center, Prince George designed to support more than four and a half thousand Blackwill JV 300 Gpus.

Daniel Roberts: As I alluded to earlier, we're pleased to announce today that construction is well underway on a new 10MW liquid-cooled data center at Prince George, designed to support more than 4,500 Blackwell GB300 GPUs. Following this build-out, half of Prince George's capacity will now be de-dedicated to AI cloud services. There is clear runway to double capacity to more than 20,000 GPUs at this site alone. Procurement is also in progress to equip every GPU deployment at Prince George with backup generators and UPS systems. Beyond Prince George, Mackenzie, and Canal Flats, our data center campuses in each of these locations create an even larger opportunity. With powered shells existing and designed to the same architecture as Prince George, these sites offer a straightforward and replicable pathway to more than 60,000 GB300s.

Following this build out half of Prince Georges capacity.

Daniel Roberts: Following this build-out, half of Prince George's capacity will now be dedicated to AI cloud services. There is then clear runway to double capacity to more than 20,000 GPUs at this site alone. Procurement is also in progress to equip every GPU deployment at Prince George with backup generators and UPS systems. Beyond Prince George, Mackenzie, and Canal Flats, our data center campuses in each of these locations create an even larger opportunity. With powered shells existing and designed to the same architecture as Prince George, these sites offer a straightforward and replicable pathway to more than 60,000 GB300s. Horizon One and our broader portfolio of data center sites in Texas open up a further path to continued AI cloud growth. It's fair to say we're incredibly excited by the AI cloud opportunity.

<unk> dedicated to <unk> services.

There is a clear runway to double capacity to more than 20000 Gpus at this site alone.

Procurement is also in progress to equip every GPU deployment at Prince George.

We have backup generators and systems.

Okay.

Beyond Prince George.

Mckinsey and can now flat.

Our data center campuses in each of these locations create an even larger opportunity with.

We powered shells existing and designed to the same architecture as Prince George.

These thoughts offer a straightforward and replicable pathway to more than 60000 GBP three hundreds.

Horizon, one and a broader portfolio of data center starts in Texas.

Daniel Roberts: Horizon 1 and our broader portfolio of data center sites in Texas opens up a further path to continued AI cloud growth. It's fair to say we're incredibly excited by the AI cloud opportunity. It's a business line that many are simply unable to pursue due to the significant technical expertise and requirements involved. With 2 to 3-year payback periods and the low-cost GPU financing structures we are securing, we see this as a highly attractive pathway to continue compounding shareholder value. Our ability to build and operate world-class AI services all the way down from the transmission line down to the compute layer uniquely positions IREN at the forefront of this digital AI transformation. Now, onto the major projects driving our AI expansion. Childress continues to show strong on-the-ground momentum with Horizon 1 construction progressing according to schedule and remaining on track for this year.

Women's up a further path to continued IR cloud growth.

It's fair to say, we're incredibly excited by the IR cloud opportunity. It's a business line that many are simply unable to pursue.

Daniel Roberts: It's a business line that many are simply unable to pursue due to the significant technical expertise and requirements involved. With two to three-year payback periods and the low-cost GPU financing structures we are securing, we see this as a highly attractive pathway to continue compounding shareholder value. Our ability to build and operate world-class AI services all the way down from the transmission line down to the compute layer uniquely positions IREN at the forefront of this digital AI transformation. Now, onto the major projects driving our AI expansion. Childress continues to show strong on-the-ground momentum, with Horizon One construction progressing according to schedule and remaining on track for this year. As you can see in the progress photos, the data center buildings are nearing completion, and the installation of the liquid cooling plant on the south side of the halls is underway.

Due to the significant technical expertise and requirements involved.

With two to three payback periods.

And the low cost GPU financing structures, we are securing we.

We see this as a highly attractive pathway to continued compounding shareholder value.

Our ability to build and operate world class IR services.

All the way down from the transmission line.

Down to the compute layer uniquely positions our forefront.

This digital transformation.

Now onto the major projects driving.

Expansion.

<unk> continues to show strong on the ground momentum with horizon, one construction progressing according to schedule the remaining on track for this year.

As you can see the progress photos that data center buildings and nearing completion.

Daniel Roberts: As you can see in the progress photos, the data center buildings are nearing completion, and the installation of the liquid cooling plant on the south side of the halls is underway. Based on customer feedback, we've also upgraded certain specifications, including introducing full Tier III equivalent redundancy across all critical power and cooling systems. Due to the expected timing gap before NVIDIA's Rubin GPUs are available, we have also reconfigured the design to be able to accommodate a wider range of rack densities while preserving the flexibility to accommodate next generation systems when they are available. Even with these adjustments, we expect to remain a very competitive build cost target, reflecting the efficiencies of our in-house design, procurement, and construction model.

And the installation of the liquid cooling plant on the south side of the holes is underway.

Based on customer feedback, we have also upgraded certain specifications.

Daniel Roberts: Based on customer feedback, we've also upgraded certain specifications, including introducing full Tier 3 equivalent redundancy across all critical power and cooling systems. Due to the expected timing gap before NVIDIA's GB300 NVL72 GPUs are available, we have also reconfigured the design to be able to accommodate a wider range of rack densities while preserving the flexibility to accommodate next-generation systems when they are available. Even with these adjustments, we expect to remain a very competitive build cost target, reflecting the efficiencies of our in-house design, procurement, and construction model. Finally, we're also moving ahead with certain tenant scope work to de-risk delivery timelines and provide additional flexibility, including the potential to monetize the capacity by our own AI cloud service. In that regard, engagement remains active with both hyperscaler and non-hyperscaler customers across both cloud and colocation opportunities. Site visits, diligence, commercial discussions, documentation ongoing.

Clearly introducing forty-three equivalent redundancy across all critical power and cooling systems.

Due to the expected timing gap before Nvidia as Ruben Gpus are available.

We've also reconfigured the design to be able to accommodate a wider range of rec entities, while preserving the flexibility to accommodate mixed generation systems when they're available.

Even with these adjustments we expect to remain.

A very competitive build cost target.

Reflecting the efficiencies of our in house design procurement and construction model.

Finally, we're also moving ahead with certain tenants Scutwork derisk delivery timelines and provide additional flexibility.

Daniel Roberts: Finally, we're also moving ahead with certain tenant scope work to de-risk delivery timelines and provide additional flexibility, including the potential to monetize the capacity via our own AI cloud service. In that regard, engagement remains active with both hyperscaler and non-hyperscaler customers across both cloud and colocation opportunities, with site visits, diligence, commercial discussions, and documentation ongoing. Building on this strong customer traction at Horizon 1 and general overall market momentum, we're pleased to announce that we've commenced early works and long lead procurement for Horizon 2, a potential second 50MW IT load liquid-cooled facility at Childress. Together, Horizons 1 and 2 will have capacity to support over 38,000 liquid-cooled GB300s, creating one of the largest clusters in the US market. In saying that, it's still modest compared to the capacity of our Sweetwater hub, which could support over 600,000 GB300s. Which is a good segue. Sweetwater.

Including the potential to monetize the capacity bar on IR cloud service.

In that regard engagement remains active with both hyper scaler non hyper scale customers.

Cross, both cloud and co location opportunities.

So our visits diligence commercial discussions documentation ongoing.

Building on these strong customer traction in horizon one.

Daniel Roberts: Building on this strong customer traction at Horizon One and general overall market momentum, we're pleased to announce that we've commenced early works and long lead procurement for Horizon Two, a potential second 50-megawatt IT load liquid-cooled facility at Childress. Together, Horizons One and Two will have capacity to support over 38,000 liquid-cooled GB300s, creating one of the largest clusters in the U.S. market. In saying that, it's still modest compared to the capacity of our Sweetwater hub, which could support over 600,000 GB300s, which is a good segue. Sweetwater. Both construction and commercial momentum continue to build at the 1.4-gigawatt Sweetwater One site, still scheduled for energization in April 2026. As you can see in the progress photo, construction of the high-voltage bulk substation is underway, and key long-lead equipment continues to arrive at site. On the commercial front, we're advancing discussions with prospective customers for different structures.

In general overall market momentum, we're pleased to announce that we've commenced early works and long lead procurement for horizon to a potential second 50 megawatts <unk> liquid cooled facility at Childress.

Together Horizons, one and two will have capacity to support over 38000 liquid cooled GBP three hundreds.

Creating one of the largest clusters in the U S market.

In China, it's still modest compared to the capacity of our Sweetwater hub.

Which could support over 600000 and GBP three hundreds.

Which is a good segue.

Rainwater.

So both construction and commercial momentum continues to build at the one four gigawatt Sweetwater one slot.

Daniel Roberts: Both construction commercial momentum continues to build at the 1.4 gigawatt Sweetwater One site, still scheduled for energization in April 2026. As you can see in the progress photo, construction of the high voltage bulk substation is underway, and key long lead equipment continues to arrive at site. On the commercial front, we are advancing discussions with prospective customers for different structures. The campus is inherently flexible by design, so we can meet demand across the entire AI infrastructure stack. Powered shells for partners who want to self-operate, turnkey colocation for customers seeking speed, and cloud services for those who would like us to run it end to end. While we have a multitude of other exciting growth opportunities preceding this, Sweetwater's combination of scale, certainty, and flexibility positions it as yet another growth engine for IREN in the accelerating wave of AI compute.

Still scheduled for <unk> in April 2026.

As you can see the progress for the construction of the high voltage bulk substation is underway.

Long lead equipment continues to arrive at site.

On the commercial front, we are advancing discussions with prospective customers for different structures.

The campus is inherently flexible by design.

Daniel Roberts: The campus is inherently flexible by design, so we can meet demand across the entire AI infrastructure stack. Powered shells for the partners who want to self-operate, turnkey colocation for customers seeking speed, and cloud services for those who would like us to run it end-to-end. While we have a multitude of other exciting growth opportunities preceding this, Sweetwater's combination of scale certainty and flexibility positions it as yet another growth engine for IREN in the accelerating wave of AI compute. Where do we sit today? Industry estimates call for more than 125 gigawatts of new AI data center capacity over the next five years, with hyperscale CapEx forecasts supporting the credibility of that trajectory. Yet, as most of us know, existing grid capacity is well documented as being far from sufficient to meet this demand.

So we can meet demand across the entire infrastructure stack.

Powered shells with partners, who want to self operate turnkey co location for customers seeking space and.

And cloud services for those who would like us to run it in the end.

While we have a multitude of other exciting growth opportunities preceding this sweetwater combinations skiles certainty and flexibility.

Positions it as yet another growth engine for our in accelerating wide compute.

So where do we sit today.

Daniel Roberts: Where do we sit today? Industry estimates call for more than 125 GW of new AI data center capacity over the next 5 years, with hyperscale CapEx forecast supporting the credibility of that trajectory. As most of us know, existing grid capacity is well documented as being far from sufficient to meet this demand. Against that backdrop, we have expanded our secure power capacity more than 100x since IPO. We've built over 810 MW of operational next generation data centers. In the process, demonstrating our ability to not only secure valuable powered land, but also deliver next generation data centers and compute at scale in some of the most demanding markets. It's a really exciting time for the industry, and it's a really exciting time for us.

Industry estimates call for more than a 125 gigawatts of new <unk>, New AI data center capacity over the next five years with hyper scale Capex forecast supporting the credibility of that trajectory.

As most of us know existing grid capacities, well documented as being far from sufficient to meet this demand.

Against that backdrop, we have expanded our secure power capacity more than 100 X since IPO, we've built over a 810 megawatts operational <unk>.

Daniel Roberts: Against that backdrop, we have expanded our secured power capacity more than 100x since IPO. We've built over 810 megawatts of operational next-generation data centers, in the process demonstrating our ability to not only secure valuable powered land but also deliver next-generation data centers and compute at scale in some of the most demanding markets. It's a really exciting time for the industry, and it's a really exciting time for us. With that hopefully providing a reasonably comprehensive overview of the opportunity in front of us, I'll hand over to our newly appointed Chief Capital Officer, Anthony Lewis, to discuss financing.

Next generation data centers.

In the process, demonstrating our ability to not only secure valuable powered land.

It also deliver next generation data centers.

And compete at scale in some of the most demanding markets.

It's a really exciting time for the industry and it's a really exciting time for us.

With that hopefully providing a reasonably comprehensive overview of the opportunity in front of us I'll hand over to our newly appointed Chief Capital Officer, Anthony Lewis to discuss financing.

Daniel Roberts: With that, hopefully providing a reasonably comprehensive overview of the opportunity in front of us, I'll hand over to our newly appointed Chief Capital Officer, Anthony Lewis, to discuss financing.

Thanks, Dan and good morning, or good evening, everyone as the case may be.

Anthony Lewis: Thanks, Dan. Good morning or good evening everyone, as the case may be. This slide highlights how we are funding growth across our AI verticals through a combination of strategic financings and strong cash flows from existing operations. The table to the right, which many of you will be familiar with, shows the illustrative cash flows from our existing Bitcoin mining operations. At the current network hash rate and a $115,000 Bitcoin price, we show over $1 billion in mining revenue. After subtracting all costs and overheads of our entire business, we arrive at close to $650 million of adjusted EBITDA. There is a further $200 to 250 million of annualized revenue on top of this, expected to come from the AI cloud business expansion, with an increasing contribution from that business over time.

Anthony Lewis: Thanks, Dan, and good morning or good evening, everyone, as the case may be. This slide highlights how we are funding growth across our AI verticals through a combination of strategic financings and strong cash flows from existing operations. To the right, the table to the right, which many of you will be familiar with, shows the illustrated cash flows from our existing Bitcoin mining operations. At the current net worth cash rate and $115,000 Bitcoin price, we show over $1 billion in mining revenue. After subtracting all costs and overheads of our entire business, we arrive at close to $650 million of adjusted EBITDA. There is then a further $200 to $250 million of annualized revenue on top of this, expected to come from the AI cloud business expansion, with an increasing contribution from that business over time.

This slide highlights how we are funding growth across a variety of verticals through a combination of strategic financings and strong cash flows from existing operations.

To the right the title to the right, which many of you are familiar with shows the illustrative cash flows from our existing bitcoin mining operations.

At the current network attach rate and a 115000 bitcoin price we show over $1 billion in mining revenue and after subtracting all costs and overheads of our entire business, we arrive at close to $650 million of adjusted EBITDA.

There has been a further $200 million to $250 million of annualized revenue on top of this expected to come from the cloud business expansion with an increasing contribution from that business overtime.

There is clearly some sensitivity to the relevant assumptions here, but the key message is we expect significant operating cash flow to invest in our growth initiatives over a range of operating conditions with our position enhanced by low cost power and best in class hardware performance.

Anthony Lewis: There is clearly some sensitivity to the relevant assumptions here, but the key message is we expect significant operating cash flow to invest in our growth initiatives over a range of operating conditions, with our position enhanced by a low-cost power and best-in-class hardware performance. These cash flows, together with existing cash and recent financing initiatives, which I'll touch on shortly, fully fund our near-term CapEx, including the cloud expansion discussed with liquid cooling and power redundancy at Prince George, taking GPUs to 10.9 thousand, completing Horizon One, and energizing Sweetwater One substations. Let me now turn to our funding strategy more generally. As a capital-intensive business growing quickly, we are clearly focused on diversifying our sources of capital so that we maintain a resilient and efficient balance sheet. The $200 million of GPU financings we announced this week are a recent example of that.

Anthony Lewis: There is clearly some sensitivity to the relevant assumptions here, but the key message is we expect significant operating cash flow to invest in our growth initiatives over a range of operating conditions, with our position enhanced by our low-cost power and best-in-class hardware performance. These cash flows, together with existing cash and recent financing initiatives, which I'll touch on shortly, fully fund our near-term CapEx, including the cloud expansion discussed with liquid cooling and power redundancy at Prince George, taking GPUs to 10,900, completing Horizon 1 and energizing Sweetwater One substations. Let me now turn to our funding strategy more generally. As a capital-intensive business growing quickly, we are clearly focused on diversifying our sources of capital so that we maintain a resilient and efficient balance sheet.

These cash flows together with existing cash and recent financing initiatives, which I'll touch on shortly fully fund our near term capex, including the cloud expansion discussed with liquid cooling and power redundancy of Prince George taking shape you use a 10 9000 completion horizon, one and <unk>.

Energizing Sweetwater one substations.

Let me now turn to our funding strategy more generally.

As a capital business in a capital intensive business growing quickly. We are clearly focused on diversifying our sources of capital so that we maintain a resilient and efficient balance sheet.

The $200 million of GPU financings, we announced this week.

Anthony Lewis: The $200 million of GPU financings we announced this week are a recent example of that. These transactions had 100% of the upfront GPU CapEx financed, allowing us to accelerate the growth flywheel for our AI cloud business at an attractive cost of capital. They pay down over 2 to 3 years, matching well against the accelerated paybacks on the underlying hardware. End-of-lease term options and instructions like these also give us added operational flexibility. We're also seeing strong institutional demand for asset-backed and infrastructure lending in the AI sector. With our existing portfolio of assets and the growth opportunities in front of us, we think IREN is well placed to access that capital. We are currently advancing a range of financing work streams which could support further growth. This could include further asset-backed financing, project-level and corporate-level debt.

Recent example of that.

These transactions had 100% of the upfront GPU capex financed allowing us to accelerate the growth flywheel for our cloud business and an attractive cost of capital and.

Anthony Lewis: These transactions had 100% of the upfront GPU CapEx financed, allowing us to accelerate the growth flywheel for our AI cloud business and an attractive cost of capital. They pay down over two to three years, matching well against the accelerated paybacks on the underlying hardware. End-of-lease term options and instructions like these also give us added operational flexibility. We're also seeing strong institutional demand for asset-backed and infrastructure lending in the AI sector. With our existing portfolio of assets and the growth opportunities in front of us, we think IREN is well placed to access that capital. We are currently advancing a range of financing workstreams which could support further growth. This could include further asset-backed financing, project-level, and corporate-level debt. We've also proven good access to the convertible bond market, with two well-supported transactions over the course of the financial year.

And I pay down over two to three years matching well against the accelerated paybacks on the underlying hardware.

End of lease term options instructions like this also give us added operational flexibility.

We're also seeing strong institutional demand for asset backed and infrastructure lending in the sector and with our existing portfolio of assets and the growth opportunities in front of US. We think are in as well private place to access that capital.

We are currently advancing a range of financing work streams, which could support further growth.

This could include further asset backed financing project level and corporate level debt.

We've also proven good access to the convertible bond market with two well supported transactions over the course of the financial year and that remains a further source of funding potential for us.

Anthony Lewis: We've also proven good access to the convertible bond market with two well-supported transactions over the course of the financial year. That remains a further source of funding potential for us. Of course, we'll also be focused on maintaining a prudent level of equity capital as we continue to scale, ensuring continued balance sheet resilience. In closing, with a foundation in strong operating cash flow from existing operations and a broad range of capital sources available to us, we feel we are well-placed to fund the next stage of growth. With that, we'll now turn the call over to Q&A.

Anthony Lewis: That remains a further source of funding potential for us. Of course, we'll also be focused on maintaining a prudent level of equity capital as we continue to scale, ensuring continued balance sheet resilience. In closing, with a foundation in strong operating cash flow from existing operations and a broad range of capital sources available to us, we feel we are well placed to fund the next stage of growth. With that, we'll now turn the call over to Q&A.

Of course, we will also be focused on maintaining a prudent level of equity capital as we continue to scale, ensuring continued balance sheet resilience.

So in closing with a foundation of strong operating cash flow from existing operations and a broad range of capital sources available to US. We feel we are well placed to fund the next stage of growth.

With that we'll now turn the call over to Q&A.

Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, one moment for questions.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment for questions. Our first question comes from Paul Golding with Macquarie. You may proceed.

Operator: Thank you. As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. One moment for questions. Our first question comes from Paul Golding with Macquarie. You may proceed.

Our first question comes from Paul Holden with Macquarie You May proceed.

Thanks, So much I wanted to ask on.

Paul Golding: Thanks so much. I wanted to ask on efficiency at these sites. I noticed that PUE in the British Columbia sites is down at 1.1, which is a very impressive efficiency ratio versus Sweetwater being about 1.4. Those may be peak numbers as opposed to average. I was wondering if you could give some color around how that might influence the thought process around rollout or concentration of sites receiving GPUs initially versus others as you think about the efficiency. Also just along the lines of this infrastructure being developed, with PUE that low being cited, how are you thinking about the backup generation for the existing pods that you have outstanding?

Paul Golding: Thanks so much. I wanted to ask on efficiency at these sites. I noticed that PUE in the British Columbia sites is down at 1.1, which is a very impressive efficiency ratio, versus Sweetwater being about 1.4. Those may be peak numbers as opposed to average, but I was wondering if you could give some color around how that might influence the thought process around rollout or concentration of sites receiving GPUs initially versus others as you think about the efficiency. Also, just along the lines of this infrastructure being developed with PUE that low being cited, how are you thinking about the backup generation for the existing pods that you have outstanding? I only ask that question in relation to the on-demand versus contracted customer dynamic and how you're seeing that evolve. Thank you so much.

Efficiency at these sites I noticed that <unk> in the British Columbia sites is down at $1, one which is a very impressive.

<unk> ratio.

Sweetwater being about one point for those maybe peak numbers as opposed to average, but I was wondering if you could give some color around how that might influence.

The thought process around rollout or concentration of slight receiving gpus initially versus others. As you think about the efficiency and then.

Also just.

Along the lines of this infrastructure being developed.

With <unk> got low being cited how are you thinking about.

The backup generation four.

The existing.

Pods that you have outstanding I only asked that question in relation to.

Paul Golding: I only ask that question in relation to the on-demand versus contracted customer dynamic and how you're seeing that evolve. Thank you so much.

The.

On demand versus contracted customer dynamic and how youre seeing that evolve. Thank you so much.

Hi, Paul happy to jump in and tie that one so as you mentioned across the base a sites.

Kent Draper: Hi, Paul. Happy to jump in and take that one. As you mentioned, across the BC sites, we're operating at a PUE 1.1, that's on an air-cooled basis. Once we install the liquid-cooled facilities there, we expect that to be operating on an average, slightly higher than that, but still well under 1.2 PUE across the year. At Childress, the Horizon 1 liquid-cooled installation, the number that you mentioned, is much closer to a peak PUE number, although we actually expect it to be less than 1.4, and the average PUE over the year to be around 1.2. In all cases, I think those are extremely competitive numbers across the industry.

Mike Power: Hi, Paul. Happy to jump in and take that one. As you mentioned, across the British Columbia sites, we're operating at a PUE 1.1. That's on an air-cooled basis. Once we install the liquid-cooled facilities there, we expect that to be operating on average slightly higher than that, but still well under 1.2 PUE across the year. At Childress, the Horizon One liquid-cooled installation, the number that you mentioned is much closer to a peak PUE number, although we actually expect it to be less than 1.4, and the average PUE over the year to be around 1.2. In all cases, I think those are extremely competitive numbers across the industry. We are more led in terms of our deployments across the different sites by what our customers are ultimately demanding.

Providing at a pay you a one one that's on an air cooled basis.

Once we install the liquid cooled facilities, we expect that to be operating on an average.

Slightly higher than that but still well under one point to pay you a across the year.

At Childress horizon, one liquid cooled installation the number that you mentioned.

Is much closer to a paid pay UAE number, although we actually expect it to be less than 1.4.

The average pay UA over the year to be around one two.

In all cases, I think tavis.

Extremely competitive numbers across the industry.

We are more of a lead.

In terms of our deployments across the different sites.

Kent Draper: We are more led in terms of our deployments across the different sites by what our customers are ultimately demanding. Within British Columbia, the ability to scale extremely quickly on an air-cooled basis has been a significant driver of demand for us. Again, that PUE level is extremely competitive regardless. That is where we are seeing some of the primary interest from our customer base. At Horizon 1, that liquid-cooled capacity in particular, is extremely scarce in the industry at the moment. The ability to locate a single cluster of up to just over 19,000 GB300s is significantly attractive and driving high levels of customer interest. I think, you know, less driven by PUE overall in terms of deployments and more driven by the customer side of the equation.

By what our customers are ultimately demanding within British Columbia.

Mike Power: Within British Columbia, the ability to scale extremely quickly on an air-cooled basis has been a significant driver of demand for us. That PUE level is extremely competitive regardless. That is where we are seeing some of the primary interest from our customer base. At Horizon One, that liquid-cooled capacity in particular is extremely scarce in the industry at the moment. The ability to locate a single cluster of up to 19,000 or just over 19,000 GB300s is significantly attractive and driving high levels of customer interest. I think, you know, less driven by PUE overall in terms of deployments and more driven by the customer side of the equation. To your question on redundancy, as Daniel Roberts mentioned in his remarks, we're introducing redundancy across the entire fleet of GPUs that we have in our existing operating business, as well as for the new GPUs that we purchased.

Related to scale extremely quickly on an equal basis has been a significant driver of demand for us.

And again that pay you a label is extremely competitive regardless and so that is where we are seeing some of the primary interest from our customer base.

At Horizon, one that will be quite cold capacity in particular is extremely scarce in the industry at the moment.

The ability to locate a single cluster of up to 19000 or just over 19000 Jae Bae three hundreds it significantly attractive and driving high levels of customer interest.

So I think yes, less driven by pay UAE overall in terms of deployments and more driven by the customer side of the <unk>.

To your question on redundancy as Dan mentioned in his remarks, we.

Kent Draper: To your question on redundancy, as Dan mentioned in his remarks, we're introducing redundancy across the entire fleet of GPUs that we have in our existing operating business, as well as for the new GPUs that we purchased. While we believe that for many of the applications that these clusters are used for, it's not necessarily the case that it's required to have redundancy. We have seen some of our customers wanting that redundancy and, you know, for us, we ultimately want to be driven by providing the best customer service, and that's really what's driving us to install that redundancy across the fleet.

Introducing redundancy across the entire fleet of Gpus.

And that we have in our existing operating business as well as for the new Gpus that we purchased.

While we believe that for many.

Mike Power: While we believe that for many of the applications that these clusters are used for, it's not necessarily the case that it's required to have redundancy, we have seen some of our customers wanting that redundancy, and for us, we ultimately want to be driven by providing the best customer service, and that's really what's driving us to install that redundancy across the fleet.

The applications that base cost and as you use for its not necessarily.

Nice that it's required to have redundancy, we have seen some of our customers wanting that redundancy and for US we ultimately want to be driven by providing the best customer service and that's really what's driving us to install that ray dominant say across the flight.

Thanks, Ken and if I could ask one quick follow up on the GBP 372.

Paul Golding: Thanks, Ken. If I could ask one quick follow-up on the GB300 NVL72 capability that has been incorporated or retrofitted into the original plan for Horizon 1, I believe. If you could just give us any incremental color around what that may have entailed and any impact that may have had on how financing availability or future financing plans may be impacted as you think about incremental costs for that density, and in particular, maybe, as you plan for Rubin, given this preferred partner status now. Thank you.

Paul Golding: Thanks, Kent. If I could ask one quick follow-up on the GB300 NVL72 capability that has been incorporated or retrofitted into the original plan for Horizon One, I believe. If you could just give us any incremental color around what that may have entailed and any impact that may have had on how financing availability or future financing plans may be impacted as you think about incremental costs for that density, and in particular, maybe as you plan for Ruben, given this preferred partner status now. Thank you.

Capability that has been.

Incorporated a retrofitted into the original plan or.

Horizon, one I believe.

Could just give us.

Incremental color around what that may have entail and.

Any impact that may have had on our financing.

Availability or future financing.

Lance may be impacted as you think about incremental cost for that density and in particular, maybe.

For Ruben gives.

Given this preferred partner status now thank you.

Yes, I think what you're referring to with Dan's comments around introducing flexibility for a wider range of densities.

Kent Draper: I think what you're referring to were Dan's comments around introducing flexibility for a wider range of densities. For us, that actually comes more towards lower density, so being able to operate at densities that are under what the Vera Rubin would require. The base design as we had it could handle up to 200kW a rack, easily able to accommodate the next iteration of GPUs. What we're seeing in the market today is that many customers actually want flexibility to be able to operate not only at the rack densities for GB300s, which are around 135kW a rack, but actually at even lower densities to accommodate additional types of compute within the data center infrastructure.

Mike Power: Yeah, I think what you're referring to with Dan's comments around introducing flexibility for a wider range of densities, for us, that actually comes more towards lower densities, being able to operate at densities that are under what the Vera Rubens would require. The base design, as we had it, could handle up to 200 kilowatts of rack, easily able to accommodate the next iteration of GPUs. What we're seeing in the market today is that many customers actually want flexibility to be able to operate not only at the rack densities for GB300s, which are around 135 kilowatts of rack, but actually at even lower densities to accommodate additional types of compute within the data center infrastructure. We've gone back and reworked some of the electrical and mechanical equipment to be able to actually accommodate lower rack densities.

And for us that actually comes more towards lower density side being able to operate.

At densities that are under what the payroll Rubens would require so the base design as we had it could handle up to 200 kilowatts, Iraq easily able to accommodate.

The next iteration of Gpus, but what we're seeing in the market today is that many customers actually want flexibility to be able to operate.

At the rack density could JV, three hundreds which are around 135 kilowatts, Iraq, but actually at even lower densities to accommodate additional types of compute.

Within the within the data center infrastructure and so what we've done is gone back and reworked.

Kent Draper: What we've done is gone back and reworked some of the electrical and mechanical equipment to be able to actually accommodate lower rack densities. As it relates to accommodating Rubin in the future, you know, no change from our perspective.

Some of the electrical and mechanical equipment to be able to actually accommodate love Iraq densities. So as it relates to accommodating Rubens in the future no no change from our perspective.

Mike Power: As it relates to accommodating Rubens in the future, no change from our perspective.

Great. Thanks, so much and congratulations.

Paul Golding: Great. Thanks so much, and congratulations.

Paul Golding: Great. Thanks so much and congratulations.

Thank you.

Our next question comes from John <unk> with Needham You May proceed.

Operator: Thank you. Our next question comes from John Todaro with Needham. You may proceed.

Operator: Thank you. Our next question comes from John Todaro with Needham. You may proceed.

Hey, guys. Thanks for taking my question and congrats on a very strong quarter.

John Todaro: Hey, guys. Thanks for taking my question, and congrats on a very strong quarter. First question on the cloud business, and apologies if I missed this, but just the average duration of the contract, kind of trying to determine, you know, given the three-year payback with the GPUs post infrastructure, the overlap there with the customer contract duration. I also follow up on the HPC side of things.

Speaker 7: Hey guys, thanks for taking my question and congrats on a very strong quarter. First question on the cloud business, and apologies if I missed this, but just the average duration of the contract, kind of trying to determine, you know, given the three-year payback with the GPUs plus infrastructure, the overlap there with the customer contract duration. I also follow up on the ECPC side of things.

First question on the cloud business.

And apologies if I missed this but just the average duration of the contract kind of trying to determine given the three year payback with the Gpus plus infrastructure the overlap there with the customer contract duration and then also a follow up on the EQT side of things.

Yes, we've got a range of contract lengths.

Mike Power: Yeah, we've got a range of contract lengths across our existing asset base today, all the way from one-month rolling contracts out to three-year contracts. For the newer gen equipment, including the Blackwell purchases that we've made, we've typically seen demand in slightly longer contract lengths whilst those Blackwells are new equipment on the market. A good indication of that is the initial portion of our B200s that, as Dan mentioned, as soon as they were installed, we were able to contract them on a multi-year basis. We do have contracts across the spectrum, but we are seeing for newer gen equipment, you know, often longer-term contracts being available.

Kent Draper: We've got a range of contract lengths across our existing asset base today, all the way from 1-month rolling contracts out to 3-year contracts. For the newer gen equipment, including the Blackwell purchases that we've made, we're typically seeing demand in slightly longer contract lengths. Whilst those Blackwells are, you know, new equipment on the market. A good indication of that is the initial portion of our B200s that, as Dan mentioned, as soon as they were installed, we were able to contract them on a multi-year basis. We do have contracts across the spectrum, but we are seeing for newer gen equipment, you know, often longer-term contracts being available.

Cross our existing asset base today, all the way from one month rolling contracts out to three year contracts.

For the newer gen equipment, including the Blackwell purchases that we made we typically saying demand in slightly longer contract lengths.

<unk> Black wells.

New equipment on the market.

And saw a good indication of that is the initial portion of our bay two hundreds that as Dan mentioned as soon as Ivor installed.

We were able to contract them on a multi year basis. So we do have contracts across the spectrum.

We are saying for you Jane equipment are often longer term contracts being available.

Got it that's great and then just with the success Youre, having so far on the cloud business.

John Todaro: Got it. That's great. Then just with the success you're having so far in the cloud business, you could take a step back and think, you know, do we need to sign HPC colo capacity? Would you be more comfortable kind of continuing at this at even a bigger scale? Then as it relates to just kind of thoughts on the CapEx to get you there, any targeted leverage ratio or a threshold on debt too?

Speaker 7: Got it. That's great. With the success you're having so far in the cloud business, you could take a step back and think, you know, do we need to sign HPC colo capacity? Would you be more comfortable kind of continuing with this at even a bigger scale? As it relates to just kind of thoughts on the CapEx to get you there, any targeted leverage ratios or a threshold on debt too?

You could take a step back and think.

Do we need to sign Hp's Niccolo capacity would you be more comfortable kind of continuing.

And even in a bigger scale and then as it relates to just kind of thoughts on the capex to get to get you there or any targeted leverage ratio threshold on that too.

Yes, we are constantly evaluating.

Kent Draper: Yeah. We're constantly evaluating, you know, the opportunities as it relates to both colocation and cloud. I think we're uniquely positioned in the sense that we are able to take advantage of both opportunities, which we think is quite differentiated to a number of others in the industry. They obviously have very different profiles in terms of the risk adjusted returns. Colocation, longer-dated contracts, typically in the range of 5 to 20 years, but lower payback periods, often higher than 7 years before you can get your capital back. In many cases, because of the nature of the debt financing associated with those, there's, you know, very little actual cash flow coming out of the business during that finance period.

Mike Power: Yeah, we're constantly evaluating the opportunities as it relates to both colocation and cloud. I think we're uniquely positioned in the sense that we are able to take advantage of both opportunities, which we think is quite differentiated to a number of others in the industry. They obviously have very different profiles in terms of the risk-adjusted returns. Colocation, longer dated contracts, typically in the range of 5 to 20 years, but lower payback periods, often higher than seven years before you can get your capital back. In many cases, because of the nature of the debt financing associated with those, there's very little actual cash flow coming out of the business during that finance period. Whereas cloud, you know, shorter dated contracts, but much stronger margins and shorter overall payback periods.

Yes, the opportunities as it relates to <unk> Colocation and cloud I think we're uniquely positioned in the sense that we are able to take advantage of both opportunities.

Which way you think is quite differentiated to a number of others in the industry.

Obviously, you have very different profiles in terms of the risk.

Adjusted return side Colocation.

Longer dated contracts typically in the range of five to 20 years.

But lower payback periods, often higher than seven years before you can get your capital back.

And in many cases because of the nature of the debt financing associated with those days you had very little actual cash flow come.

Coming out of the business during that.

<unk> backed finance period.

Whereas cloud.

Short dated contracts, but much stronger margins.

Kent Draper: Whereas cloud, you know, shorter-dated contracts, but much stronger margins, and shorter overall payback periods. We typically see around 2-year payback periods on the GPUs alone, and 3 to 4 years on the GPUs plus data center infrastructure. It is something that we're constantly evaluating, and overall, we're looking to maximize risk-adjusted returns across both models. I think you can tell from the comments today, you know, as it stands, we do find the cloud opportunity extremely compelling. Anthony, did you want to touch on the comments around financing?

Sure.

Overall payback periods are we typically say around two year payback periods on the on the Gpus alone.

Mike Power: We typically see around two-year payback periods on the GPUs alone and three to four years on the GPUs plus data center infrastructure. It is something that we're constantly evaluating, and overall we're looking to maximize risk-adjusted returns across both models. I think you can tell from the comments today, as it stands, we do find the cloud opportunity extremely compelling. Anthony, did you want to touch on the comments around financing?

Three to four years on the Gpus plus data center infrastructure.

So it is something that we're constantly.

Ali writing and overall, we are looking to maximize risk adjusted returns across both models.

I think you can tell from the comments today as it stands we do find the cloud opportunity extremely compelling.

Anthony did you want to touch on the on the comments around financing.

Thanks, Scott, Yes, I think obviously we have.

Anthony Lewis: Sure. Thanks, Kent. I think obviously we have very modest debt servicing requirements today and I guess as we scale the business, obviously where those opportunities have developed and the nature of the cash flows and the security of those cash flows will ultimately derive what an appropriate level of leverage is for the business. The capital structure will continue to evolve as we continue to grow, but we'll obviously be focused on maintaining a strong and resilient balance sheet as well as a, you know, an efficient cost of capital.

Anthony Lewis: Sure, thanks, Kent. I think obviously we have very modest debt servicing requirements today, and I guess as we scale the business, where those opportunities have developed and the nature of the cash flows and the security of those cash flows will ultimately derive what an appropriate level of leverage is for the business. The capital structure will continue to evolve as we continue to grow, but we'll obviously be focused on maintaining a strong and resilient balance sheet as well as an efficient cost of capital.

Very modest.

<unk> requirements today and.

I guess as we as we scale the business, obviously, the where those opportunities are developed and the nature of the cash flows and the security of those cash flows will ultimately to draw derive what an appropriate level of risk leverages for the business.

So the capital structure will continue to evolve as we continue to grow that will obviously be focused on maintaining a strong and resilient balance sheet as well.

As I.

An efficient cost of capital.

Understood. Thank you gentlemen.

Speaker 7: Understood. Thank you, gentlemen.

John Todaro: Understood. Thank you, gentlemen.

Thank you.

Our next question comes from Darren Italia with Ross You May proceed.

Operator: Thank you. Our next question comes from Darren Aftahi with Roth. You may proceed.

Mike Power: Thank you.

Operator: Our next question comes from Darin Attal with Roth. You may proceed.

Hey, guys. Good afternoon, thanks for taking my questions and congrats on all the progress a couple if I may.

Darren Aftahi: Hey, guys. Good afternoon. Thanks for taking my questions, congrats on all the progress. A couple, if I may. On Horizon 1 and 2, I guess there's commentary in the press release about what theoretically Horizon 1 could support in terms of GPUs, but you kind of left the door open that there may be other uses. I'm kind of curious on strategic thinking there. On Horizon 2, I think if my math is right, you guys only have 25 MW left at Childress, and you're talking about, I guess, 50 MW of critical load. Will you be borrowing from your Bitcoin business to kind of get there? Are there expansion opportunities beyond that? Second question, I guess on slide 9, one of your demand partners is Fluidstack.

Speaker 7: Hey guys, good afternoon. Thanks for taking my questions and congrats on all the progress. A couple if I may. On Horizon One and Two, I guess there's commentary in the press release about what theoretically Horizon One could support in terms of GPUs, but you kind of left the door open that there may be other uses. I'm kind of curious on strategic thinking there. On Horizon Two, I think if my math is right, you guys only have 25 megawatts left at Childress, and you're talking about, I guess, 50 megawatts of critical load. Will you be borrowing from your Bitcoin mining business to kind of get there, and are there expansion opportunities beyond that? Second question, on slide nine, you have one of your demand partners is Fluidstack.

So on horizon wanted too.

I guess there is commentary in the press release about what's theoretically horizon, one could support in terms of Gpus, but you kind of left the door open that there may be other uses some kind of curious on strategic thinking there and then on horizon two.

If my math is right you guys only have 25 megawatts left the children and Youre talking about I guess 50 megawatts of critical load.

Borrowing from UBS.

Bitcoin business, just kind of get there and other expansion opportunities beyond that.

Second question I guess on slide nine we have one of your demand partners as fluid stack.

Im more curious on the neo cloud side and maybe that.

Darren Aftahi: I'm more curious on the neocloud side and maybe that entity in particular, given one of your peers signed a deal with them and another partner there, just kind of what the demand drivers are with Fluidstack in particular. Thanks.

Speaker 7: I'm more curious on the NeoCloud side and maybe that entity in particular, given one of your peers signed a deal with them and another partner there, just kind of what the demand drivers are, what Fluidstack in particular. Thanks.

That entity in particular, given one of your peers signing a deal with them in another partner there just kind of what the demand drivers are what fluids back in particular thanks.

Thanks Darren.

Appreciate that so three questions out here in the horizon.

Kent Draper: Thanks, Darren. Appreciate that. Three questions I hear in there.

Daniel Roberts: Thanks, Darin. Appreciate that. Three questions I hear in there. For Horizon, we mentioned 19,000, it's just tick over based on the NVL72 configuration. GB300s, the project has been engineered specifically for liquid-cooled GPUs, so there is no other use case as an end market other than that. In saying that, there's a couple of different ways we might monetize that capacity. A is through different types of GPUs. As we mentioned during the presentation and Kent reiterated, we've now introduced the flexibility to accommodate a wider range of rack densities. We actually discovered building this that the issue is we're building rack densities that are too dense for where the industry is today. We've had to dial it back a little bit.

We mentioned 19 sales is just take over basically NBL 72 configuration.

Daniel Roberts: We mentioned 19,000. It's just tick over, based on the NVL72 configuration, GB 300s. The project has been engineered specifically for liquid-cooled GPUs, so there is no other use case as an end market other than that. In saying that, there's a couple of different ways we might monetize that capacity. A, is through different types of GPUs. As we mentioned during the presentation, and Kent reiterated, we've now introduced the flexibility to accommodate a wider range of rack densities. We actually discovered building this, that the issue is we're building rack densities that are too dense for where the industry is today. We've had to dial it back a little bit.

GBP 300.

The project has been engineered specifically for liquid cooled GPU. So there is no other use case as an end market other than that.

Inside that Theres, a couple of different ways, we monetize that capacity I E through.

<unk> types of Gpus, So as we mentioned during the presentation and Kent reiterated we've now introduced the flexibility to accommodate a wider range of directed to these.

We actually discovered during this that the issue is we're building <unk> to these that are too dense the way the industry is today. So we've had the back a little bit.

So accommodating low rack density gives us the ability to accommodate a wider.

Daniel Roberts: Accommodating lower rack density gives us the ability to accommodate a wider range of different GPUs whilst preserving the ability to service the Vera Rubins as and when they're released and potentially beyond that. That, that's exciting. In terms of monetizing the capacity, there's then colocation versus cloud. We may buy own operates the 19,000 GPUs, and we're having conversations with a variety of potential partners for that, including hyperscale customers. We're progressing financing work streams in parallel. That's a real option. If the risk-return balance is right, as Kent mentioned, then absolutely, we're in a unique position where not many people can build, own, and operate a cloud service. We're pursuing that, and we're excited about that.

Daniel Roberts: Accommodating lower rack density gives us the ability to accommodate a wider range of different GPUs whilst preserving the ability to service the Vera Rubens as and when they're released and potentially beyond that. That's exciting. In terms of monetizing the capacity, there's then colocation versus cloud. We may buy, own, operate the 19,000 GPUs, and we're having conversations with a variety of potential partners for that, including hyperscale customers. We're progressing financing workstreams in parallel. That's a real option. If the risk-return balance is right, as Kent mentioned, then absolutely, we're in a unique position where not many people can build, own, and operate a cloud service.

Range of different Gpus, whilst preserving the ability to service severe rubens.

As and when they're released and potentially beyond that so that's exciting.

In terms of <unk>.

<unk> the capacity there then.

Carlo occasion versus cloud so we may buy.

<unk> operates the 19000 Gpus and we're having conversations with a variety of potential partners for that including hyper scale.

Customers.

We're progressing financing work streams in parallel that as a real option if the risk return.

Balance is Raj as Kent mentioned, then absolutely we're in a unique position where not many people can build own and operate a cloud service.

We are assuming that it.

We're excited about that but equally we are seeing a lot of demand for co location and that would deliver more of an infrastructure return on capital will remain open to that structure, we want to see our risk return framework.

Daniel Roberts: We're pursuing that, and we're excited about that, but equally, we're seeing a lot of demand for colocation, and that would deliver more of an infrastructure return on capital and will remain open to that structure, but we want to see a risk-return framework that is compelling, and to date, I guess we haven't yet seen that. In terms of potentially displacing additional mining capacity, you referenced 25 megawatts potentially being displaced from Childress. Look, that's a cost of business. As we said seven years ago when we started this business, Bitcoin mining will help bootstrap the business, help us build out the data center capacity. As and when higher, better value use cases come along, then we have the ability and the flexibility to swap those in and monetize our data center capacity differently. In saying that, we don't envisage stopping building new data centers.

Daniel Roberts: Equally, we're seeing a lot of demand for colocation, and that would deliver more of an infrastructure return on capital, and we'll remain open to that structure. We want to see a risk-return framework that is compelling. To date, I guess we haven't yet seen that. In terms of potentially displacing additional mining capacity, you referenced 25 MW potentially being displaced from Childress. Look, that's a cost of business. As we said 7 years ago when we started this business, Bitcoin mining will help bootstrap the business, help us build out the data center capacity. As and when higher better value use cases come along, then we have the ability and the flexibility to swap those in and monetize our data center capacity differently. Saying that, we don't envisage stopping building new data centers. We've got 2 GW at Sweetwater.

There is compelling and to date I guess, we havent yet seen that.

In terms of potentially displacing additional mining capacity he referenced 25 megawatts, particularly being displayed through Childress look that's a cost of business as we said seven years ago. When we started this business declined mauney will help bootstrap the business help us build out the data center capacity.

As in wind higher beta value used cases come along then we have the ability and the flexibility to swap those and monetize dedicated capacity differently in saying that we don't envisage stopping building new data centers. We've got two gigawatts at Sweetwater. So it may simply be the case, where we just re.

Daniel Roberts: We've got two gigawatts at Sweetwater. It may simply be the case where we just reallocate capacity across different sites, and perhaps there's some relocation of mining capacity to Sweetwater at some point, but that's something we're working through. Finally, Fluidstack, yes, we've known the Fluidstack guys for quite some time. We've got a good relationship there. We speak to them, we speak to Google, we know what deals are being done, we look at the deals. As of today, we find a three-year payback on data center and GPU infrastructure pretty compelling, particularly when Anthony's lining up 100% GPU financing at single-digit interest rates. We'll remain open to colocation opportunities, but the devil is in the detail, and the high level is not always what you end up carrying over a longer period of time, so I might leave that there.

Daniel Roberts: It may simply be the case where we just reallocate capacity across different sites, and perhaps there's some relocation of mining capacity to Sweetwater at some point, but that's something we're working through. Finally, Fluidstack. Yes, we've known the Fluidstack guys for quite some time. We've got a good relationship there. We speak to them, we speak to Google. We know what deals are being done. We look at the deals. As of today, we find a 3-year payback on data center and GPU infrastructure pretty compelling, particularly when Anthony's lining up a 100% GPU financing at single-digit interest rates. Look, we'll remain open to colocation opportunities, but the devil is in the detail, and the high level is not always what you end up carrying over a longer period of time. I might leave that there.

Allocate capacity across different thoughts.

And perhaps is.

We relocated or Shouldnt, all mining capacity to Sweetwater at some point, but that's something we're working through.

Finally fluid stack, yes, we've noted the fluids gods for quite some time, we've got a good relationship there.

Speak to them, we expect to Google We know what deals are being done we look at the deals.

As of today, we find a three year payback on data center and GPU infrastructure.

Really compelling, particularly with Anthonys lining up a 100% GPU for that scene.

Single digit interest rates.

Look we will remain open to co location opportunities, but the devil is in the data and the high level.

He is not always what you end up carrying over a longer period of time somewhat later.

Great. Thanks for the insight.

Yes.

Darren Aftahi: Great. Thanks for the insight. Thanks a lot.

Paul Golding: Great, thanks for being safe. That's a lot.

Thank you.

Our next question comes from Joseph <unk> with Canaccord Genuity you May proceed.

Operator: Thank you. Our next question comes from Joseph Vafi with Canaccord Genuity. You may proceed.

Daniel Roberts: Thank you.

Operator: Our next question comes from Joseph Vathy with Canaccord Genuity. You may proceed.

Everyone.

Good morning.

Joseph Vafi: Everyone, good morning, and congrats on all the progress here in fiscal Q4 and quarter to date. Really, great progress. Just really 1 question for me, maybe just a 2-part, but a single question. Just wanna drill down a little bit more on the financing on the Blackwells. I know that you mentioned there's some optionality at the end of the lease financing period. I thought maybe, you know, we could kinda go into what you're thinking at the end of the lease financing periods, what may, you know, what may be a factor in having you decide what to do next with those.

Joseph Vathy: Hey everyone, good morning and congrats on all the progress here in fiscal Q4 and quarter to date. Really great progress. Just really one question for me, maybe just a two-part but a single question. I just want to drill down a little bit more on the financing on the Blackwells. I know that you mentioned there's some optionality at the end of the lease financing period. I thought maybe we could kind of go into what you're thinking at the end of those, at the end of the lease financing period, what may just, you know, what may be a factor in having you decide what to do next with those. Then just as a follow-up, it does seem like at least initially the, you know, building your own clusters with this financing does look attractive on a payback and time value of money basis.

Congrats on all the progress here in fiscal Q4 on quarter to date Rowley.

Progress just really one question for me and maybe just a two part single question just wanted to drill down a little bit more on the financing.

On the on the Black wells.

No.

And there is some optionality at the end of the lease financing period I thought maybe you can kind of grow in what you're thinking at the end of those at the end of the lease financing periods what may.

<unk>.

What may be a factor in helping you decide what to do next with those and then just as a follow up.

Joseph Vafi: Just as a follow-up, you know, it does seem like at least initially the, you know, the building your own clusters with this financing does look attractive on a, on a payback and time value of money basis. Just wondering, how much financing do you think is available in this market versus the kinda project financing that, you know, maybe yourself and others have discussed for, you know, for a broader colocation type project? Thanks a lot.

Does it seem like at least initially though.

Building your own clusters with this financing does look attractive on a on a payback.

Palm value money basis, just wondering how much financing do you think is available in this market versus the tunnel project financing that maybe yourself and others have described or.

Joseph Vathy: Just wondering how much financing do you think is available in this market versus the kind of project financing that, you know, maybe yourself and others have discussed for, you know, for a broader colocation type project. Thanks a lot.

For a broader co location.

Type project, Thanks, a lot.

Yes, thanks for thanks for the question in.

In terms of the you are probably familiar with the various types of leasing structures you can see in the market some of them are class.

Daniel Roberts: Yeah. Thanks for the question. You're probably familiar with the various types of leasing structures you can see in the market. Some of them are structured as more classic full payout finance leases. Other are more sort of tech rotation style, where you have fixed committed lease payments, and then you have an FMV option to acquire at the end, often capped at a percentage of the day one price.

Daniel Roberts: Yeah, thanks for the question. In terms of the, you're probably familiar with the various types of leasing structures you can see in the market. Some of them are structured as more classic full payout finance leases. Others are more sort of tech rotation style where you have fixed committed lease payments, and then you have an FMV option to acquire at the end, often capped at a % of the day one price. That obviously allows you the flexibility to potentially return the equipment if we wanted to reinvest in, for example, the next generation of GPUs at that time or obviously continue to own and operate the equipment depending on the conditions that we see. Sorry, could you just remind me of the second part of your question?

Structured as more classic Fuller full payout finance leases other is sort of more sort of ticked rotation star, where you have fixed committed lease payments.

You have an SMB the option to acquire at the end often often kept at a percentage of the day when price. So that obviously allows us the flexibility to potentially return the equipment. If you wanted to to reinvest in.

Daniel Roberts: That obviously allows you the flexibility to potentially return the equipment if we wanted to reinvest in, for example, the next generation of GPUs at that time or obviously continue to own and operate the equipment depending on the conditions and the conditions that we see. Sorry, could you just remind me of the second part of your question?

In for example, the next generation of Gpus at that time, or obviously continue to to own and operate the equipment depending on the on the.

<unk> and the conditions that we see.

Sorry could you just remind me the second part of your question.

Just the amount of financing capacity you see out there on the GPU side versus co location.

Joseph Vafi: Just, you know, the amount of financing capacity you see out there on the GPU side versus colocation.

Joseph Vathy: Just the amount of financing capacity you see out there on the GPU side versus colocation.

I think.

They're obviously quite different asset profiles.

Anthony Lewis: Yeah. Well, I think they're obviously quite different asset profiles. The amount of obviously leverage and the cost of that leverage depends greatly on the specific situation. On the cloud side, there's obviously, you know, focus on the underlying portfolio of customers, the diversity in the customer mix, the credit quality, the duration of the contracts that will all drive both the sort of pricing and leverage that you can secure. I guess similarly on the colocation side, obviously you can obtain very attractive cost of funds and very, you know, meaningful leverage against high quality offtakes such as hyperscale offtakes.

Daniel Roberts: Yeah, I think they're obviously quite different asset profiles, and the amount of leverage and the cost of that leverage depends greatly on the specific situation. On the cloud side, there's focus on the underlying portfolio of customers, the diversity in the customer mix, the credit quality, the duration of the contracts. That will all drive both the sort of pricing and leverage that you can secure. Similarly, on the colocation side, you can obtain very attractive cost of funds and very meaningful leverage against high quality offtakes such as hyperscale offtakes. As you come down the credit spectrum or the duration of the contract, that will flow through into the cost of the finance and the leverage that you can obtain.

And.

The amount of obviously leverage in the cost of that leverage depends greatly on the on the specific situations on the on the cloud side. There is obviously a focus on the underlying portfolio of customers the diversity and the customer mix the credit quality the duration of the contracts that will all drive both the sort of pricing.

And leverage that you can can secure and I guess similarly on the on the Colocation side. Obviously you can you can you can obtain very attractive cost of funds.

And.

Meaningful leverage against high quality offtake, such as harsco off types.

As you come down the credit spectrum or the duration of the contract that will obviously flow through into into the cost of the finance and the leverage that you can attack.

Anthony Lewis: As you come down the credit spectrum or the duration of the contract, that will obviously flow through into the cost of the finance and the leverage that you can obtain.

And maybe just to add to that Anthony Joe.

Daniel Roberts: Maybe just to add to that, Anthony, Joe, the two are not mutually exclusive, cloud and colocation, in the sense that we are arranging these 100% financing lease structures, as Anthony's mentioned over the GPUs. That doesn't preclude us then financing the asset base and the infrastructure base at a data center level, similar to how you would finance a colocation. It just happens to be the case that the colocation partner is an internalized IREN entity. That market is open. Well, a vast number of potential providers of capital for that. As Anthony's mentioned, we're looking up and down the entire capital stack to optimize cost of capital at a group level. You've got these asset level options, but then you've got corporate options as well.

Mike Power: Maybe just to add to that, Anthony, Joe, the two are not mutually exclusive, cloud and colocation, in the sense that we are arranging these 100% financing lease structures, as Anthony's mentioned, over the GPUs. That doesn't preclude us then financing the asset base and the infrastructure base at a data center level, similar to how you would finance a colocation. It just happens to be the case that the colocation partner is an internalized IREN entity. That market is open. We're talking to a number of, well, a vast number of potential providers of capital for that. As Anthony's mentioned, we're looking up and down the entire capital stack to optimize cost of capital at a group level. You've got these asset level options, but then you've got corporate options as well. We mentioned the BOINC convertible note market. That continues to look quite prospective.

The two are not mutually exclusive cloud and co location in the sense that we are arranging these 100% financing lease structures as Anthony mentioned over the Gpus, but that doesn't preclude us in financing the asset base.

The infrastructure base and the data center level.

Similar to how you would finance that co location. It just happens to be the case that the co location partner is an internalized our entity. So that market is open and we're talking to a number.

<unk> number all potential providers of capital for that.

As Anthony mentioned, we are looking up and down the entire capital stack to optimize cost of capital at a group level. So you've got these asset level options, but then you've got corporate options as well.

<unk> that Blake convertible note market that continues to look quite perspective.

Daniel Roberts: You know, we mentioned the buoyant convertible note market. That continues to look quite prospective. We've been prosecuting bond type structures at a corporate level as well. There's a whole different array. Every week, depending on level of demand, our revenue profile, how we're building out different elements of the business, the jigsaw puzzle from a financing perspective kind of falls into place and helps support that. It's that reflexive wheel of sources and uses of capital, and that's the benefit of now having Anthony on and dedicated full-time to optimizing cost of capital while Kent runs around North America looking to deploy it.

<unk> been prosecuting bond type structures at a corporate level as well so there's a whole different array and every week, depending on the level of demand our revenue profile, how we're building out different elements of the business. The jigsaw puzzle from a financing perspective kind of holds into place and help support that that reflects it.

Mike Power: We've been prosecuting bond type structures at a corporate level as well. There's a whole different array, and every week, depending on level of demand, our revenue profile, how we're building out different elements of the business, the jigsaw puzzle from a financing perspective kind of falls into place and helps support that. That reflexive wheel of sources and uses of capital, and that's the benefit of now having Anthony on and dedicated full time to optimizing cost of capital while Kent runs around North America looking to deploy it.

<unk> of sources and uses of capital and Thats the benefit of now having to Anthony on and dedicated full time to optimizing cost of capital.

Kent runs around North America looking to deploy it.

Alright, Thanks, Dan Thanks, Anthony.

Joseph Vafi: Great. Thanks, Dan. Thanks, Anthony.

Joseph Vathy: Great. Thanks, Daniel. Thanks, Anthony.

Thank you.

Our next question comes from Reggie Smith with Jpmorgan you May proceed.

Operator: Thank you. Our next question comes from Reggie Smith with J.P. Morgan. You may proceed.

Daniel Roberts: Thank you.

Operator: Our next question comes from Reggie Smith with JP Morgan. You may proceed.

Hey, everyone. This is Charlie on for Rajeev. Thanks for taking the question.

[Analyst] (J.P. Morgan): Hey everyone, this is Charlie on for Reggie. Thanks for taking the question. Can you talk a bit more about some of the key hires you've made in building out the cloud and colocation businesses and where, if anywhere, there is still some room to go? As a follow-up, digging in a bit more on the sales side, can you provide a bit more on how you're getting in front of and winning some of the AI clients, that you've called out in the slides? Thanks.

Speaker 7: Hey everyone, this is Charlie on for Reggie. Thanks for taking the question. Can you talk a bit more about some of the key hires you've made in building out the cloud and colocation businesses, and where, if anywhere, there is still some room to go? As a follow-up, digging in a bit more on the sales side, can you provide a bit more on how you were getting in front of and winning some of the AI clients that you called out in the slides? Thanks.

Can you talk a bit more about some of the key hires you've made in building out the cloud and Colocation businesses and where if anywhere there is still some room to go.

And then as a follow up digging.

Digging in a bit more on the sales side can you provide a bit more on how you are getting in front of and winning some of the AI clients that you called out in the slides. Thanks.

Yes happy to jump in there on the on the Resourcing question. So we've been hiring across the stack.

Kent Draper: Happy to jump in there on the resourcing question. We've been hiring across the stack, as Dan made clear. You know, at a level of vertical integration that we have, you know, we continue to need resources across all areas, including data center operations, networking, InfiniBand experts, developers on the software side. We also continue to build out our go-to-market function. That consists of hiring additional sales executives, as well as solutions architects. We're also expanding the marketing team in parallel with that. There is an ongoing, you know, level of hiring across the business to support the additional customer-facing work that we're doing. Sorry, there was a last part to your question that I missed. It was breaking up a little.

Mike Power: Yeah, happy to jump in there on the resourcing question. We've been hiring across the stack. As Dan made clear, at a level of vertical integration that we have, we continue to need resources across all areas, including data center operations, networking, InfiniBand experts, developers on the software side. We also continue to build out our go-to-market function. That consists of hiring additional sales executives, as well as solutions architects. We're also expanding the marketing team in parallel with that. There is an ongoing level of hiring across the business to support the additional customer-facing work that we're doing. Sorry, there was a last part to your question that I missed. It was breaking up a little.

As Dan made clear.

At our level of vertical integration that we have we continue to need resources across all areas, including data center operations networking Infiniband experts developers on the software side.

<unk> continued to build out our go to market function. So that consist of hiring additional sales.

Executives as well as solutions architects and we're also expanding the marketing team in parallel with that.

Sorry, the reason ongoing level of hiring.

<unk> the business to support the additional customer facing work that we're doing.

And sorry.

Last part of your question.

I missed it was breaking up a little.

Yes, just more on the sales side like how youre getting in front of our clients. What are you competing on why are they choosing iron things like that.

[Analyst] (J.P. Morgan): Yeah, just more on the sales side, like how you're getting in front of clients. What are you competing on? Why are they choosing IREN? Things like that.

Speaker 7: Yeah, just more on the sales side, like how you're getting in front of clients, what are you competing on, why are they choosing IREN, things like that.

Yes, so we get a mix of inbound and outbound.

Kent Draper: Yeah. We get a mix of inbound and outbound customer demand drivers. We have been active recently in the conference space. We have been getting out, telling our story, showing why we are differentiated. As I mentioned, we've been expanding the marketing team and our efforts there to help drive inbound. Particularly our activities across all social platforms have been ramping over the past 12 months in particular. We're seeing a high degree of interest there. As that gets out into the public sphere, as well as our ongoing provision of cloud services and customer word of mouth, we are starting to see more inbound inquiries as well around both our cloud services platform and the potential colocation platform.

Mike Power: Yeah, we get a mix of inbound and outbound customer demand drivers. We have been active recently in the conference space. We have been getting out, telling our story, showing why we are differentiated. As I mentioned, we've been expanding the marketing team and our efforts there to help drive inbound, particularly our activities across all social platforms have been ramping over the past 12 months in particular. We're seeing a high degree of interest there. As that gets out into the public sphere, as well as our ongoing provision of cloud services and customer word of mouth, we are starting to see more inbound inquiries as well around both our cloud services platform and the potential colocation platform. It is a bit of a mix there in terms of what we're seeing.

Customer demand drivers, we have been active recently in the conference by side, we have been getting out telling our story shut.

<unk> why we are differentiated as I mentioned, we've been expanding the marketing team and our efforts there to help drive inbound, particularly.

Particularly our activities across all social platforms.

Pain ramping over the past 12 months in particular.

And we're seeing a high degree of interest there and as that gets out into the public sphere as well as our ongoing provision of cloud services and customer word of mouth, we are starting to see more inbound.

Inquiries as well around both our cloud services platform and the potential colocation.

Platform. So it is a it is a bit of a mix there in terms of what we're saying.

Kent Draper: It is a bit of a mix there, in terms of what we're seeing.

And I think maybe just to add.

Daniel Roberts: I think maybe just to add to that as well, Kent, like this is exactly the point. The whole demand supply equation in this industry is imbalanced. Like there is little supply. The demand, when they need something, when people need something, they tend to find it, particularly when it's scarce. Word of mouth through these demand brokers, conferences, existing customers, word does get out. We do have three pretty unique competitive advantages compared to other competition around neoclouds. Like scale, we control the infrastructure end to end. We can scale up capacity up and down across our existing data center footprint, let alone the new footprint and building into that growth. Performance. Vertical integration is really important because it gives us direct oversight of every single layer in the stack.

Daniel Roberts: I think maybe just to add to that as well, Kent, this is exactly the point. The whole demand-supply equation in this industry is imbalanced. There is little supply. The demand, when they need something, when people need something, they tend to find it, particularly when it's scarce. Word of mouth through these demand brokers, conferences, existing customers, word does get out. We do have three pretty unique competitive advantages compared to other competition around NeoClouds. A, scale. We control the infrastructure end-to-end. We can scale up capacity up and down across our existing data center footprint, let alone the new footprint and building into that growth. Performance vertical integration is really important because it gives us direct oversight of every single layer in the stack. We've got tighter control over performance, reliability, service, and they get higher uptime as a result because there's no colocation partners.

To that as well.

This is exactly the point the whole demand supply equation in this industry is imbalanced.

It is lethal supply so the demand when they need something when people need something they tend to fund up particularly with its scale. So word of mouth through these demand brokers conferences existing customers, where does get out and we do have three pretty unique competitive advantages compared to.

Although competition around near clouds like scale, we control the infrastructure in the end, we can skylark capacity up and down across our existing does in the footprint, let alone the new footprint and building into that growth.

<unk> vertical integration is really important because it gives us direct oversight of every single layer in the stack. So we got caught a controller performance reliability service and they get higher uptime as a result, because there's no co location partners. There's no S allies with data centers that restrained and constrained.

Daniel Roberts: We've got tighter control over performance, reliability, service, and they get higher uptime as a result because there's no colocation partners, there's no SLAs with data centers that restrain and constrain your ability to update GPUs and get your hands on them. Finally, from a cost perspective, we've got no co-location fees and greater operational efficiency as a result. We're in a really good spot, and this also trans-relates to Salesforce and marketing support and general cloud support. Because we are in the industry, we are doing stuff, we've got available capacity. There's significant interest in joining IREN because we have capacity to sell. It's distinct from other providers who have no capacity, and salespeople are sitting there with not a lot to do.

Daniel Roberts: There's no SLAs with data centers that restrain and constrain your ability to update GPUs and get your hands on them. Finally, from a cost perspective, we've got no colocation fees and greater operational efficiency as a result. We're in a really good spot. This also translates to salesforce and marketing support and general cloud support because we are in the industry. We are doing stuff. We've got available capacity. There's significant interest in joining IREN because we have capacity to sell. It's distinct from other providers who have no capacity and salespeople are sitting there with not a lot to do.

Your ability to update Gpus and get your hands on them and then finally from a cost perspective, we've got no co location space and greater operational efficiency as a result, so we're in a really good spot and this also trends lights too.

The sales force.

And marketing support and general cloud support because we are in the industry. We are doing stuff. We've got available capacity is significant interest in joining our <unk> because we have capacity to sale as distinct from other providers, who have no capacity and sales people are sitting there with not a lot to do.

Perfect. Thank you for the question on that congrats again.

Kent Draper: Perfect. Thank you for the question and that. Congrats again.

Speaker 7: Perfect. Thank you for the question and congrats again.

Thank you.

Our next question comes from Brett <unk> with Cantor Fitzgerald you May proceed.

Operator: Thank you. Our next question comes from Brett Knoblauch with Cantor Fitzgerald. You may proceed.

Daniel Roberts: Thank you.

Operator: Our next question comes from Brad Novak with Canterbridge Capital. You may proceed.

Hi, guys. Thanks for taking my question, maybe on the cloud services front is.

Brett Knoblauch: Hi, guys. Thanks for taking my question. Maybe on the cloud services front, is the strategy to go out and order or purchase GPUs with a customer already in mind, or are you buying those GPUs and, you know, and then trying to find a customer? Could you maybe just elaborate on the power dynamics per GPU? I think the 19,000 GB300s for Horizon 1 implies it can be 380 of them per megawatt of critical IT load. Do you have, like, maybe a similar metric or so for the B300s or B200s? If you can provide any color there, that'd be helpful as well.

Speaker 7: Hi guys, thanks for taking my question. Maybe on the cloud services front, is the strategy to go out and order or purchase GPUs with a customer already in mind, or are you buying those GPUs and then trying to find a customer? Could you maybe just elaborate on the power dynamics per GPU? I think the 19,000 kind of GB300s for Horizon One implies it can be 380 of them per megawatt of critical IT load. Do you have like maybe a similar metric or so for the B300s or B200s? If you could provide any further there, that'd be helpful as well.

It is the strategy to go out and order our purchase Gpus with a customer already in mind or are you buying gpus and.

I'm trying to find a customer and then could you maybe just elaborate on the power.

Dynamics per GPU I think the.

19300 for Horizon, one implies it can be 380 of them per megawatt of critical it load do you have like maybe a similar metric or so for the <unk>.

300, <unk> 200.

Any color there that's helpful as well.

So take the first half.

Daniel Roberts: I might take the H1, Grant, if you want to do the H2.

Mike Power: Sure. I might take the first half, Kent, if you want to do the second half.

The second half.

The prospect of ordering Gpus before after a contract. This is the nature of the industry when companies won't compute they want it now.

Speaker 7: Sure.

Kent Draper: Sure.

Daniel Roberts: The prospect of ordering GPUs before or after a contract, this is the nature of the industry. When companies want compute, they want it now. Like, they don't want to wait 2 to 3 months. You think about an enterprise that's made the decision. You think about an AI scale-up or startup that's raised a bunch of capital. Very few companies are in a position where they can plan out and map out a 2 to 3-year timeline of GPU needs. Often it's, We need GPUs, we need them for a project, we need them for today. The world wants on-demand compute, and we almost use this as a universal motherhood statement to guide what we do. The world doesn't really want data center infrastructure. The world, at its core, wants compute, and it wants it now and when it needs it. That's the first element.

Mike Power: The prospect of ordering GPUs before or after a contract, this is the nature of the industry. When companies want compute, they want it now. They don't want to wait two to three months. You think about an enterprise that's made the decision. You think about an AI scale-up or startup that's raised a bunch of capital. Very few companies are in a position where they can plan out and map out a two to three-year timeline of GPU needs. Often it's, we need GPUs, we need them for a project, we need them for today. The world wants on-demand compute. We almost use this as a universal motherhood statement to guide what we do. The world doesn't really want data center infrastructure. The world at its core wants compute and it wants it now and when it needs it. That's the first element.

I don't want to wait two to three months do you think about an enterprise. That's made the decision do you think about scale Apple startup. It's raised a bunch of capital very few companies are in a position where they can plan out and map out two to three years timeline of GPU nase alternate when they gpus, we need them for our project, we need them for today.

So the world once on demand compute and we almost use these universal motherhood statement to guide what we do the world doesn't really want Odyssey infrastructure, the wilderness Colby computer once it now and when it needs. It. That's the first element. The second element is I feel like it's groundhog day with <unk>.

Daniel Roberts: The second element is I feel like it's Groundhog Day. We're back in this world, and it takes me back to Bitcoin mining, where every man and their dog promises certain amounts of capacity online by a certain date, and no one does it. No one hits the schedules. Everyone revises them downwards, stretches them out, cost blowouts, et cetera, because the real world's hard. Dealing with large-scale infrastructure projects, large-scale workforces, complex project delivery, safety. Like, it takes a lot of work and systems and structures to deliver that. This is why we're in such a good position. We never missed a milestone on Bitcoin mining. We're the most profitable, if only profitable, Bitcoin miner because we did things properly from the start.

Mike Power: The second element is, I feel like it's Groundhog Day. We're back in this world, and it takes me back to Bitcoin mining where every man and their dog promises certain amounts of capacity online by a certain date, and no one does it. No one hits the schedules. Everyone revises them downwards, stretches them out, cost blowouts, et cetera, because the real world's hard. Dealing with large-scale infrastructure projects, large-scale workforces, complex project delivery, safety, it takes a lot of work and systems and structures to deliver that. This is why we're in such a good position. We never missed a milestone on Bitcoin mining. We're the most profitable, if only profitable, Bitcoin miner because we did things properly from the start.

Back in this world.

Takes me back to Bitcoin mining, where every man in the adult promises certain amounts of capacity online by a certain date and no one does it.

Heats, the schedules Avon revises them downwards stretches the mask cost blowouts et cetera, because the real world Todd dealing with large scale infrastructure projects large scale Workforces complex project delivery safety like it takes a lot of work and systems and structures to deliver.

This is why we're in such a good position, we never missed a milestone will be coy money.

The most profitable if only profitable b claim on it because we did things properly from the start and we now sit in here and as I say, it's groundhog day with the cloud business, where again all of these companies neo clouds, and otherwise promus capacity online by a certain date and they rarely heated and as a result customers going to be gone.

Mike Power: We're now sitting here, and as I said, it's Groundhog Day with the cloud business, where again, all these companies, NeoClouds and otherwise, promise capacity online by a certain date, and they rarely hit it. As a result, customers get a bit gun-shy. The best thing you can do is to continue ordering the hardware. If it's snapped up as soon as it's commissioned, that's a pretty good sign that you're doing the right thing. As and when we install hardware and the sales cycle starts slowing down, then you know, okay, maybe we've just got to slow down on the orders. Each incremental order from here is a relatively small portion of our overall risk, so we can afford to take it. Thanks, Dan.

Daniel Roberts: We now sit in here, and as I said, it's Groundhog Day with the cloud business, where again, all these companies, neoclouds and otherwise, promise capacity online by a certain date, and they rarely hit it. As a result, customers get a bit gun-shy. The best thing you can do is continue ordering the hardware. If it's snapped up immediately as soon as it's commissioned, that's a pretty good sign that you're doing the right thing. As and when we install hardware and the sales cycle starts slowing down, then you know, okay, well, maybe we've just got to slow down on the orders. Each incremental order from here is a relatively small portion of our overall risk, so we can afford to take it.

So the best thing you can do is continue ordering the hardware if it snapped up soon.

As soon as it's commissioned that's a pretty good saw and that you're doing the right thing and as and when we install hardware and the south stock will start slowing down then you know okay, well, maybe we've just got to slow down on the orders, but each incremental order from here is a relatively small portion of our overall risk. So we can afford to take it.

Okay.

Thanks, Dan and with respect to the power question, Yes, we do continue to see.

Kent Draper: Thanks, Dan. With respect to the power question, yes, we do continue to see the overall power usage per GPU ticking up with each incremental release from NVIDIA and the other manufacturers. I think using some of the examples of the numbers that were presented early in the presentation, on an air-cooled basis for B200s, we can fit over 20,000 GPUs into the Prince George site, which is 50 MW. At Horizon 1, 50 MW of IT load, you're looking at around 19,000 GB300s. Yeah, it's not exact math there, but it does give you an idea of what we're seeing in terms of the amount of power per GPU going up over time.

Mike Power: With respect to the power question, yes, we do continue to see the overall power usage per GPU ticking up with each incremental release from NVIDIA and the other manufacturers. I think using some of the examples of the numbers that were presented early in the presentation, on an air-cooled basis for B200s, we can fit over 20,000 GPUs into the Prince George site, which is 50 megawatts. At Horizon One, 50 megawatts of IT load, you're looking at around 19,000 GB300s. It is not exact math there, but it does give you an idea of what we're seeing in terms of the amount of power per GPU going up over time.

Overall power usage per GPU ticking up.

H incremental release from <unk> and the other manufacturers I think using some of the examples of the numbers that were presented earlier in the presentation on an air cooled basis for Bay two hundreds we can fit.

<unk> thousand Gpus into the Prince George at site, which is 50 megawatts at horizon 150 megawatts of load.

We're looking at around 19000, GBP three hundreds so it's not not exact math there, but it does give you an idea of what we're seeing in terms of the amount of power per GPU going up over time.

Okay.

Perfect. Thank you guys I appreciate it.

Brett Knoblauch: Perfect. Thank you, guys. Really appreciate it.

Operator: Perfect. Thank you, guys. Really appreciate it.

Thank you.

Our next question comes from Nogales with B Riley you May proceed.

Operator: Thank you. Our next question comes from Nick Giles with B. Riley. You may proceed.

Mike Power: Thank you.

Operator: Our next question comes from Nick Dallas with B-Rail. You may proceed.

Yeah, Hi, guys. Thanks for taking my questions.

Nick Giles: Yeah. Hi, guys. Thanks for taking my questions. I wanted to go back to how the Horizon 1 capacity will be utilized, and you're closing in on that Q4 completion. At what point would you make the decision to fill Horizon 1 with your own GPUs versus pursue a colocation deal? Maybe said differently, I think Dan alludes to this from a financing perspective, but if you were to fill it with GPU, should we expect that to be the case for the entire capacity? Could we see you co-locate between your own GPUs and a third party? Thanks very much.

Speaker 7: Yeah, hi guys, thanks for taking my questions. I wanted to go back to how the Horizon One capacity will be utilized, and you're closing in on that for Q2 completion. At what point would you make the decision to fill Horizon One with your own GPUs versus pursue a colocation deal? Maybe said differently, and I think Dan alluded to this from a financing perspective, if you were to fill it with GPUs, should we expect that to be the case for the entire capacity, or could we see you colocate between your own GPUs and a third party? Thanks very much.

I wanted to go back to.

Although Verizon one capacity will be utilized in.

Youre closing in on that <unk> completion so.

What point would you make the decision to fill horizon, one with your end Gpus versus pursue a co location dealer.

Said differently I think 10 of Linzess from a financing perspective.

If you were to fill it with GPU should we expect that to be the case for the entire capacity could we see co located between your own Gpus and a third party. Thank you very much.

Yes, I think thats one of the advantages of where we're at is they're not mutually exclusive options for us.

Kent Draper: Yeah. I think that's one of the advantages of where we're at, is they're not mutually exclusive options for us. As we mentioned earlier, we are in a unique position that we can monetize that data center capacity in a number of ways, and it doesn't have to be ones or zeros. We don't need to do all of it as cloud or all of it as colocation. It could be a combination within Horizon 1. As Dan mentioned, we've started building out Horizon 2. Again, you know, that gives us significant optionality where we could potentially do Horizon 1 under one methodology and one type of monetization, Horizon 2 under another. What we will continue to do over time is try and maximize the risk-adjusted returns for how we monetize the assets.

Mike Power: Yeah, I think that's one of the advantages of where we're at is they're not mutually exclusive options for us. As we mentioned earlier, we are in a unique position that we can monetize that data center capacity in a number of ways, and it doesn't have to be ones or zeros. We don't need to do all of it as cloud or all of it as colocation. It could be a combination. Within Horizon One, as Dan mentioned, we've started building out Horizon Two. Again, that gives us significant optionality where we could potentially do Horizon One under one methodology and one type of monetization, Horizon Two under another. What we will continue to do over time is try and maximize the risk-adjusted returns for how we monetize the assets. That may fluctuate over time.

As we mentioned earlier, we are in a unique position that we can monetize that data center capacity in a number of ways and it doesn't have to be ones or zeros, we don't need to do all of it is cloud or all of it is kind of location it could be a combination.

Within horizon, one as Dan mentioned wave.

<unk> building out horizon two again.

A significant optionality, where we could potentially do horizon, one under one methodology.

One type of monetization horizon, two under another but what we will continue to do over time is try and maximize the risk adjusted returns for how we monetize the assets and.

That might fluctuate over time.

Kent Draper: That may fluctuate over time. You know, we're in an obviously incredibly dynamic industry here, and at different points in time, we may see very different risk/reward proposition in colocation versus cloud. We do, you know, we do have significant flexibility as to how we utilize the capacity.

Obviously incredibly dynamic industry here and at different points in time, we may say very different risk reward proposition and kind of vacation versus cloud.

Mike Power: We're in an obviously incredibly dynamic industry here, and at different points in time, we may see very different risk-reward proposition in colocation versus cloud. We do have significant flexibility as to how we utilize the capacity.

But we do have we do have significant flexibility as to how we utilize that capacity.

Thanks, Ken.

Just on the cloud services.

Nick Giles: Thanks for that, Kent. You know, just on the cloud services, you're focused on bare metal today, but I think you did make some comments that you could expand your software offerings or integrate if needed. What should we be looking for there? What would the incremental revenue opportunities be if you were to integrate?

Speaker 7: Thanks for that, Kent. You know, just on the AI cloud services, you're focused on bare metals today, but I think you did make some comments that you could expand your software offerings or integrate if needed. What should we be looking for there, or what would the incremental revenue opportunities be if you were to integrate?

Focused on our metals, but I think you did make some comments that you could expand your software all things or integrate if needed.

Should we be looking for there or what would the.

Incremental revenue opportunities be a few words.

Yes.

Today as Dan mentioned, the vast majority of the customers that we are dealing with which make up the majority of the compute market phase are highly experienced II players hyper scale as developers.

Kent Draper: Yeah. Today, as Dan mentioned, the vast majority of the customers that we are dealing with, which make up the majority of the compute market, these are highly experienced AI players, hyperscalers, developers. They are, for the most part, demanding bare metal because it actually suits them better to be able to bring their own orchestration layer. Where we see benefits over time from adding incrementally to the software layer is being able to serve a slightly different customer class, which might be smaller AI startups, or enterprise customers who are looking for a simpler single-click spin up, spin down type service. Today, you know, where we see the demand supply imbalance, you know, that bare metal offering that we have has a significant level of demand for it.

Mike Power: Today, as Dan mentioned, the vast majority of the customers that we are dealing with, which make up the majority of the compute market, these are highly experienced AI players, hyperscalers, developers. They are, for the most part, demanding bare metal because it actually suits them better to be able to bring their own orchestration layer. Where we see benefits over time from adding incrementally to the software layer is being able to serve a slightly different customer class, which might be smaller AI startups or enterprise customers who are looking for a simpler single-click spin-up, spin-down type service. Today, where we see the demand-supply imbalance, that bare metal offering that we have has a significant level of demand for it. We feel like we're well positioned where we're at today.

For the most part demand and bare metal because it actually suits them better to be able to bring their own orchestration layer.

We see benefits over time from adding incrementally to to the software layer is being able to serve a slightly different customer class, which might be smaller start ups or enterprise customers, who are looking for a simplot single click spin up spin down types.

This.

But today, where we see the demand supply imbalance.

Yes that bare metal offering that we have has <unk>.

And if I can.

Level of demand for Ed.

Yes.

Likewise, well positioned where we're at today.

Kent Draper: You know, we feel like we're well-positioned, where we're at today.

I think again just to reiterate this.

Daniel Roberts: I think, again, like just to reiterate this notion that software is required and these large sophisticated end users of GPUs want a third-party provider to staple their own software and make them use it. These guys are sophisticated. They just want compute. They want to run their own stuff. At the end of the day, software is eating the world. We know that. Software is not difficult to overlay. The large customers don't want your software. They want their own software. We are hearing it also firsthand from executives and employees at some of these companies that offer their own software, that it's a nightmare because every time the GPUs change, they need to update the software and rewrite it.

Daniel Roberts: I think, again, just to reiterate this notion that software is required and these large, sophisticated end users of GPUs want a third-party provider to staple their own software and make them use it. These guys are sophisticated. They just want compute. They want to run their own stuff. At the end of the day, software is eating the world. We know that. Software is not difficult to overlay. The large customers don't want your software. They want their own software. We are hearing it also firsthand from executives and employees at some of these companies that offer their own software that it's a nightmare because every time the GPUs change, they need to update the software and rewrite it.

Notion that software is required and these large sophisticated and uses of Gpus want a third party provider to stifle their own software.

And make them use it like these guys are sophisticated they just won't compute they want to run their own stuff.

And at the end of the day.

<unk> is eating the world we know that.

<unk> is not difficult to overlay the large customers don't want.

Your software they want their own software and we are hearing it also firsthand from executives and employees at some of these companies that offer their own software.

Because every time the cheap used change they need to update the software and rewrite it and its a constant evolution of code bugs rewriting updating etcetera over an area of the market.

Daniel Roberts: It's this constant evolution of code, bugs, rewriting, updating, et cetera, all for an area of the market that, yes, it might seem good as a narrative, but fundamentally and substantially in terms of revenue opportunity is quite small today.

Daniel Roberts: It's this constant evolution of code, bugs, rewriting, updating, et cetera, all for an area of the market that, yes, it might seem good as a narrative, but fundamentally and substantially in terms of revenue opportunity is quite small today.

Yes, it might seem good as a narrative, but fundamentally and substantially into the revenue opportunity is quite small today.

Great got it thanks for all the color and keep up the network.

Nick Giles: Great. Yeah, guys, thanks for all the color and, keep up the good work.

Speaker 7: Guys, thanks for all the color, and keep up the good work.

Thank you.

Our next question comes from Steven <unk> with Jones trading you May proceed.

Operator: Thank you. Our next question comes from Stephen Glagola with Jones Trading. You may proceed.

Daniel Roberts: Thank you.

Operator: Our next question comes from Stephen Glagoli with Jones Trading. You may proceed.

Yes.

Hi, Thanks for the question.

And the irony is now recognized as the preferred cloud partner on video website, I was hoping Dan and Ken maybe you can provide more detail on your participation in the <unk> cloud leptin marketplace.

Stephen Glagola: Hi. Thanks for the question. As IREN is now recognized as a preferred cloud partner on NVIDIA's website, I was hoping, Dan and Ken, maybe you could provide more detail on your participation in the DGX Cloud Lepton marketplace. Specifically, you know, how do the economics of working through the Lepton marketplace compare to maybe operating your own independent cloud offering? You know, what advantages does IREN get from being on that platform? You know, any insights into sort of NVIDIA's fee structure or take rate for participants there? Appreciate it. Thank you.

Speaker 7: Hi, thanks for the question. As IREN is now recognized as a preferred cloud partner on NVIDIA's website, I was hoping Dan and Kent, maybe you could provide more detail on your participation in the DGX cloud Leptin marketplace. Specifically, how do the economics of working through the Leptin marketplace compare to maybe operating your own independent cloud offering? What advantages does IREN get from being on that platform? Any insights into sort of NVIDIA's fee structure or take rate for participants there? Appreciate it. Thank you.

And specifically how did the economics.

Of working through that the leptin marketplace compared to maybe operating your own independent cloud offering what advantages does iron get from being on that platform.

And any insights into sort of Nvidia as fee structure or take rate for participants there appreciate it. Thank you.

Yeah happy to give some more color. There. So we are not currently participating in the Latin marketplace.

Kent Draper: Happy to give some more color there. We're not currently participating in the Lepton marketplace. As an NVIDIA preferred partner, we continue to evaluate platforms like that that could expand how we're able to get customers access to our infrastructure. It may offer us broader reach into developer communities, simpler onboarding. Again, to come back to the previous comments that I made on software, you know, it may open up some of the smaller areas of the market with smaller AI startups and enterprise customers who are looking for a simpler solution. We continue to monitor this. We are seeing an increasing number of these type of offerings coming to market.

Mike Power: Yeah, happy to give some more color there. We're not currently participating in the Leptin marketplace, but as an NVIDIA preferred partner, we continue to evaluate platforms like that that could expand how we're able to get customers access to our infrastructure. It may offer us broader reach into developer communities, simpler onboarding. To come back to the previous comments that I made on software, it may open up some of the smaller areas of the market with smaller AI startups and enterprise customers who are looking for a simpler solution. We continue to monitor this. We are seeing an increasing number of these types of offerings coming to market. For us, we think it'll be an additional demand driver for the underlying compute layer that we're providing.

As an Nvidia preferred partner, we continue to evaluate platforms like that.

That could expand how.

We are able to get customers access to our infrastructure.

It may offer us broader reach into Intel developer communities simple on boarding.

So again to come back to the previous comment that I made on software.

Open up some of the smaller areas of the market.

Smaller AI start ups in the enterprise customers, who are looking for a simpler solution.

So we continue to monitor today is we are seeing an increasing number of these types of offerings coming to market.

And for US we think it will be an additional demand driver for the underlying compete layer that we're providing.

Kent Draper: You know, for us, we think it'll be an additional demand driver for the underlying compute layer that we're providing.

Thank you Ken.

Just ask one more on horizon one.

Stephen Glagola: Thank you, Kent Draper. If I could just ask one more on Horizon 1. You know, is there any, you know, is the growth of your cloud services business, is that influenced which partners you're willing to consider for colocation potentially at Horizon 1, given arguably they can be competitors?

Speaker 7: Thank you, Kent. If I could just ask one more on Horizon One, is the growth of your cloud services business, is that influenced which partners you're willing to consider for colocation potentially at Horizon One, given arguably they can be competitors?

Is there any is the growth of your cloud services business is that influenced which partners youre willing to consider for co location potentially at horizon, one given arguably that can be competitors.

Yes.

It's something that we continue to.

Mike Power: Yeah, I mean, it's something that we continue to evaluate in terms of the mix. I think what you're probably referring to are NeoCloud customers on the colocation side. Now, the majority of NeoClouds have a very different profile to hyperscalers in terms of colocation. Even within the broader colocation market, there is a significant degree of differentiation. If you think of hyperscalers, they're typically looking for longer-term contracts, often 10 to 20 years, extremely creditworthy, but drive a hard bargain in terms of the financials and the economic returns that you're able to achieve. With NeoClouds, we often see shorter-term requirements. Typically, you know, it might be 5 to 15 years, less creditworthy than the hyperscalers. It's all something that we factor in in terms of that risk-reward element that we discussed earlier.

Kent Draper: Yeah. I mean, it's something that we continue to evaluate in terms of the mix. I think what you're probably referring to are, you know, neocloud customers on the colocation side. Now, the majority of neoclouds have a very different profile to hyperscalers in terms of colocation. Even within the broader colocation market, there is a significant degree of differentiation. If you think of hyperscalers, they're typically looking for longer term contracts, often 10 to 20 years, extremely creditworthy, but drive, you know, a hard bargain in terms of the financials and the economic returns that you're able to achieve. With neoclouds, we often see shorter term requirements. Typically, you know, it might be 5 to 15 years, less creditworthy than the hyperscalers.

Value added in terms of the mix and I think what you're probably referring to <unk> cloud.

<unk>.

Customers on the <unk> side.

Now.

Majority of Neo clouds have a very different profile to hyper scale is in terms of colocation, so even within the broader co location market.

There is a significant degree of differentiation. If you think of hyper scale as they are typically looking for longer term contracts, often 10 to 20 years extremely creditworthy.

But drive a hard bargain in terms of the financials and the economic returns that you were able to achieve.

With me are clouds, we often say shorter term.

Requirement side typically might be five to 15 years.

Less credit worthy than the Hyperscale is sorry.

Yeah, it's all something that we factor in.

Kent Draper: You know, it's all something that we factor in terms of that risk/reward element that we discussed earlier. In, in terms of, you know, 'cause we have heard from a number of people whether, you know, the fact that we're offering a cloud service limits our ability to do colocation. I would actually say quite the opposite. You know, most of the colocation customers that we're talking to significantly value the fact that we understand how to operate these clusters at scale, that we have the data center knowledge. We know how to design data centers to operate these clusters, and we proved out through our own cloud service that we can operate them at a very efficient level.

In terms of that risk reward element the way discussed earlier.

But in terms of now because we have heard from a number of people with.

Mike Power: In terms of, you know, because we have heard from a number of people whether, you know, the fact that we're offering a cloud service limits our ability to do colocation. I would actually say quite the opposite. Most of the colocation customers that we're talking to significantly value the fact that we understand how to operate these clusters at scale, that we have the data center knowledge, we know how to design data centers to operate these clusters, and we proved out through our own cloud service that we can operate them at a very efficient level. I don't see any kind of conflict there, and it hasn't been a particular issue for us over time.

Now the fact that we're offering a cloud service limit to our ability to do co location I would actually side quite the opposite now most of the colocation customers away talking too significantly valued the fact that we understand how to operate these clusters at scale that we have to do.

Data center knowledge, we know how to design datacenters to operate these clusters and we proved out our own cloud service the way that we can operate them.

At a very efficient level.

Sorry, yes.

I would say any kind of conflict there and it hasn't hasn't been a particular issue for us over time.

Kent Draper: You know, I don't see any kind of conflict there, and it hasn't been a particular issue for us over time.

Appreciate it appreciate it thank you.

Stephen Glagola: Appreciate it, Kent. Thank you.

Speaker 7: Appreciate it, Kent. Thank you.

Sorry, just to jump in on the on the Lipton.

Daniel Roberts: Sorry, just to jump in on the.

Daniel Roberts: To jump in on the AI cloud as well, it hasn't really been live functionally. NVIDIA has been working through a number of items in relation to making that available.

Stephen Glagola: Thanks

Cloud is well it hasnt really been live functionally say Nvidia has been working through a number of items in relation to making that available I think some of US will know bought early access and very direct conversation within the DAT integration at the moment. So it is a.

Daniel Roberts: on the Lepton cloud as well. It hasn't really been live functionally, so NVIDIA's been working through a number of items in relation to making that available. I think some of it's now live early access, and we're in direct conversation with them about integration at the moment. It is a demand partner that we can absolutely envisage using.

Operator: think some of us will now live early access, and we're in direct conversation with them about integration at the moment. It is a demand partner that we can absolutely envisage using.

A demand partner that we can absolutely envisage using.

Thank you. Our next question comes from Ben Summers with BTG you May proceed.

Operator: Thank you. Our next question comes from Benjamin Sommers with BTIG. You may proceed.

Mike Power: Thank you. Our next question comes from Ben Summers with BTIG. You may proceed.

Hey, good morning, and good afternoon, guys and thanks for taking my question, so kind of more on the co location side. Just curious what went into the decision to start developing a horizon two and if that was a lot of you know.

Benjamin Sommers: Hey, good morning, good afternoon, guys, and thanks for taking my question. Kind of more on the colocation side. Just curious what went into the decision to start developing Horizon 2, and if that was a lot of, you know, potential customers were thinking about potentially scaling beyond the initial 50 MW of Horizon 1. I think kind of more broader picture, you know, as we progress towards getting Sweetwater online. You know, what's the different customer profile, if any, for, you know, more larger scale sites versus, you know, potentially just wanting 50 MW or 100 MW? Just kind of any color on, you know, the counterparties that you're having conversations with. Thank you.

Daniel Roberts: Hey, good morning and good afternoon, guys, and thanks for taking my question. On the colocation side, just curious what went into the decision to start developing Horizon Two and if that was a lot of, you know, potential customers were thinking about potentially scaling beyond the initial 50 megawatts of Horizon One. I think more broadly, as we progress towards getting Sweetwater online, what's the different customer profile, if any, for more to larger scale sites versus potentially just wanting 50 megawatts or 100 megawatts, and just any color on the counterparties that you're having conversations with? Thank you.

Customers were thinking about potentially scaling beyond the initial 50 megawatts of horizon, one and then I think kind of more broader picture as we progress towards gaining Sweetwater online you know whats the different customer profile, if any for more larger scale sides versus potentially just wanting 50 megawatts or 100 megawatts of it as kind of any color on that.

The Counterparties that you are having conversations with thank you.

So.

We haven't committed.

Operator: We haven't committed the full CapEx to building out Horizon Two. Importantly, over the last seven years, our whole business model has been around cheap optionality. Sitting here right now today, looking at the bigger picture, and I can drill into that, it just makes sense to order long lead items and start moving the ball ahead on a potential commissioning of a Horizon Two facility. A lot of the way the S-curve works for CapEx in respect to these facilities is you've got long time and small cash outlays that build up over time before the larger CapEx commitments come in. It makes sense to put down deposits on long lead items, get the ball rolling so that we can maintain a really competitive, fast time to power for Horizon Two.

Daniel Roberts: We haven't committed the full CapEx to building out Horizon 2. Importantly, over the last seven years, our whole business model has been around cheap optionality. Sitting here right now today, looking at the bigger picture, and I can drill into that, it just makes sense to order long lead items and start moving the ball ahead on a potential commissioning of a Horizon 2 facility. A lot of the way the S-curve works for CapEx in respect to these facilities is you've got long time and smaller cash outlays that build up over time before the larger CapEx commitments come in. It makes sense to put down deposits on long lead items, get the ball rolling so that we can maintain a really competitive, fast time to power for Horizon 2.

The full capex to building out horizon, two so importantly over the last seven years, our whole business model has been around cheap optionality and sitting here right now.

Now today looking at the bigger picture one drilling to that it just makes sense to order long lead items and.

Stop moving the bowl ahead on a potential commissioning of our horizon two facility. So a lot of the way the S curve works for the Capex in respect to these facilities, you've got long time in smaller cash outlays.

Build up over time, but for the larger capex commitments come in so it makes sense to put down deposits on long lead items get the ball rolling so that we can maintain a really competitive fast time to power for horizon two.

Sitting here today relative to three six months ago, we're seeing further validation of the decision to spec a relatively small amount of capital. We are seeing demand take up for <unk>, we have seen the number.

Operator: Now, sitting here today, relative to three, six months ago, we're seeing further validation of a decision to spec a relatively small amount of capital. We are seeing demand take up for AI cloud. We're seeing the number of inbounds for colocation. We're seeing better visibility on the overall demand supply imbalance for liquid-cooled chips. It's a bit of a no-brainer, to be honest. In terms of committing full CapEx to that, we've got time and we'll just continue to monitor the market live because things are changing week to week in this industry. That flexibility, having a governance structure that's founder-led, the ability to make quick decisions, work with the board, and adapt to where the market's going is really important because it is super dynamic.

Daniel Roberts: Now, sitting here today, relative to 3, 6 months ago, we're seeing further validation of a decision to spec a relatively small amount of capital. We are seeing demand take up for AI cloud. We're seeing the number of inbounds for colocation. We're seeing better visibility on the overall demand-supply imbalance for liquid-cooled chips. It's a bit of a no-brainer, to be honest. In terms of committing full CapEx to that, we've got time, and we'll just continue to monitor the market live because things are changing week to week in this industry. That flexibility, having a governance structure that's founder-led, the ability to make quick decisions, work with the board and adapt to where the market's going is really important because it is super dynamic.

Of inbounds for co location, we've seen better visibility on the overall demand supply imbalance for liquid cooled chips. So it's a bit of a night Brian to be honest.

In terms of committing full capex to that we've got time and we will just continue to monitor the market law. It because things are changing week to week in this industry and that flexibility, having a governance structure of its founder led the ability to make quick decisions work with the board and adapt to where the market is going is really important because it is.

Stupid dynamic.

Awesome. Thank you guys.

Benjamin Sommers: Awesome. Thank you, guys.

Mike Power: Awesome. Thank you, guys.

Thank you I would now like to turn the call back over to Daniel Roberts for any closing remarks.

Operator: Thank you. I would now like to turn the call back over to Daniel Roberts for any closing remarks.

Daniel Roberts: Thank you. I would now like to turn the call back over to Daniel Roberts for any closing remarks.

Thank you very much thanks, everyone for dialing in and it's obviously been an exciting quarter and exciting year.

Daniel Roberts: Thank you very much. Thanks everyone for dialing in. It's obviously been an exciting quarter and an exciting year. We're thrilled about expanding to 10,900 GPUs in the coming months and really putting our AI cloud service further on the map. For us, most of our time is now focused on what lies beyond that. Expanding our 3GW-Power portfolio we're working hard on, that's exciting. That's many years away, but it was many years away, the 3GW when we started 7 years ago. Continuing to position ourselves ahead of the curve in every respect is just critical. It's really important when you're fighting this real world, digital world imbalance, where digital demand increases overnight, it goes exponential. Your ability to service that demand with real world infrastructure and compute works in a linear fashion.

Operator: Thank you very much. Thanks, everyone, for dialing in. It's obviously been an exciting quarter and an exciting year. We're thrilled about expanding to 10,900 GPUs in the coming months and really putting our AI cloud service further on the map. For us, most of our time is now focused on what lies beyond that. Expanding our three-gigawatt power portfolio we're working hard on, that's exciting. That's many years away, but it was many years away, the three gigawatts when we started seven years ago. Continuing to position ourselves ahead of the curve in every respect is just critical. It's really important when you're fighting this real-world digital world imbalance where digital demand increases overnight. It goes exponential. Your ability to service that demand with real-world infrastructure and compute works in a linear fashion. It's harder. It takes longer.

We're thrilled about expanding to 2900 Gpus in the coming months and really putting our IR cloud service.

Further on the map.

But for US most of our time is now focused on what lies beyond that.

Expanding our free gigawatt power portfolio, we're working hard on that's exciting that's many years away, but it was many years away. The three gigawatts, where we started seven years ago. So continuing to position ourselves ahead of the curve.

In every respect is just critical and it's really important when youll foresee in this real world digital World imbalance, where digital demand increases overnight. It goes exponential your ability to service that demand with real world infrastructure compute works.

<unk>, it's hard it takes longer so the ability to preempt those digital demands and build for tomorrow position for tomorrow, rather than where we are today is it can take a key competitive advantage and something we will maintain and it manifests itself in US building 200 kilowatt racks for the industry cant support 200 kilowatt racks. So her off.

Daniel Roberts: It's harder. It takes longer. The ability to preempt those digital demands and build for tomorrow, position for tomorrow, rather than where we are today, is a key competitive advantage and something we'll maintain. It manifests itself in us building 200 kilowatt racks, but the industry can't support 200 kilowatt racks. At Horizon 1, we're having to reconfigure to make it smaller. We'll continue to keep that in mind. We're excited about the future. We appreciate all of your support and can't wait for the next quarterly earnings. Thanks, everyone.

Operator: The ability to preempt those digital demands and build for tomorrow, position for tomorrow rather than where we are today is a key competitive advantage and something we'll maintain. It manifests itself in us building 200-kilowatt racks, but the industry can't support 200-kilowatt racks. At Horizon One, we're having to reconfigure to make it smaller. We'll continue to keep that in mind. We're excited about the future. We appreciate all of your support and can't wait for the next quarterly earnings, basically.

And one we're having to reconfigure to make it smaller so we will continue to keep that in mind. We're excited about the future. We appreciate all of your support and.

Can't wait for the next quarterly earnings Thanks, everyone.