Q3 2025 MARA Holdings Inc Earnings Call

Your assistance during the conference. Please press Star Zero on your telephone Keypad. Please note. This conference is being recorded I will now turn the conference over to Robert Samuels VP of Investor Relations. Thank you you may begin.

Thank you operator, good morning, and welcome Tomorrow as third quarter of 2025 earnings call. Thank you for joining US today with me on today's call are our chairman and Chief Executive Officer, Fred Teal, and our Chief Financial Officer, some on corn.

Today's call includes forward looking statements, including those about our growth plans liquidity and financial performance. These involve risks and uncertainties and actual results may differ materially we disclaim any obligation to update these statements except as required by law for more details see the risk factors section of our latest 10-K and other SEC filings.

We will also reference non-GAAP financial measures like adjusted EBITDA and return on capital employed which we believe are important indicators of Mars operating performance because they exclude certain items that we do not believe directly reflect our core operations. Please see our earnings release for reconciliations to the most comparable GAAP measures. We hope you've had the chance to read our.

Shareholder letter and look forward to your feedback will begin with some brief prepared remarks from Fred and <unk>. After their comments, we are going to be conducting an analyst interview with management today's session will be conducted by Reggie Smith analyst at J P. Morgan and with that out of the way I'm going to turn the call over to Fred to kick things off Brett.

Thanks, Rob and thank you all for joining us.

This quarter, we continued to evolve Morrow from a pure play a bitcoin miner into a vertically integrated digital infrastructure company when the convert to energy into both value and intelligence at.

At the heart of our strategy is simple belief electrons or the new oil energy is becoming the defining resource of the digital economy powering everything from bitcoin mining artificial intelligence.

Speaker #1: Greetings. Welcome to MAR's Q3, 2025 earnings conference call. At this time, all participants are in a listen-only mode. Depending on what you require operator assistance during the conference, please press star zero on your telephone keypad.

And we believe those who control abundant low cost energy will shape, the future of both finance and intelligence.

Speaker #1: Please note this conference is being recorded. I will now turn the conference over to Robert Samuels, VP of Investor Relations. Thank you. You may begin.

Bill Clinton has now entered its institutional phase, we're seeing financial leaders, such as Blackrock Citicorp and now even JP Morgan integrating bitcoin neutral traditional framework and we're seeing the establishment of strategic bitcoin reserves by corporations and governments alike, and even the secretary of Treasury has posted positive notes about bitcoin.

Speaker #2: Thank you, Operator. Good morning and welcome to MAR's third quarter 2025 earnings call. Thank you for joining us today. With me on today's call are our Chairman and Chief Executive Officer, Frederick Thiel, and our Chief Financial Officer, Salman Khan.

On a.

Speaker #2: Today's call includes forward-looking statements, including those about our growth plans, liquidity, and financial performance. These involve risks and uncertainties and actual results may differ materially.

What miners have always understood is now being recognized by global markets. According to digital energy a mechanism for storing and transmitting value.

As one of the largest bitcoin miners in the World Mara sits at the center of this shift our energy to value infrastructure allows us to convert raw power directly to bitcoin that we hold on our balance sheet a distinct advantage the grounds, our broader mission transforming energy into intelligence.

Speaker #2: We disclaim any obligation to update these statements except as required by law. For more details, see the risk factor section of our latest 10-K and other SEC filings.

Speaker #2: We'll also reference non-GAAP financial measures like adjusted EBITDA and return on capital employed, which we believe are important indicators of MAR's operating performance because they exclude certain items that we do not believe directly reflect our core operations.

Every electron has potential value and artificial intelligence represents the next frontier of the transformation of energy into even higher value. We believe that inference AI, where the value is actually created in drive and not trading in foundational models.

Speaker #2: Please see our earnings release for reconciliations to the most comparable GAAP measures. We hope you've had the chance to read our shareholder letter and look forward to your feedback.

Is where the industry will create the greatest amount of value over time.

Speaker #2: We'll begin with some brief prepared remarks from Fred and Salman. After their comments, we are going to be conducting an analyst interview with management.

Every insight produced by an AI model has a cost per token driven by the cost to build and operate the data centers of which the energy costs makes up a major component.

Speaker #2: Today's session will be conducted by Reggie Smith, analyst at JP Morgan. And with that out of the way, I'm going to turn the call over to Fred to kick things off.

Over time, the cost to build the data center will drop as technology advances such as low cost Asics open source model and the ability to operate and less sophisticated and less costly datacenters drive efficiencies, resulting in rapidly declining drops in costs per token, making the AI data centers are today unable to compete on cost.

Speaker #2: Fred?

Speaker #3: Thanks, Rob. And thank you all for joining us. This quarter, we continued to evolve MARA from a pure-play Bitcoin miner into a vertically integrated digital infrastructure company.

Speaker #3: One that converts energy into both value and intelligence. At the heart of our strategy is a simple belief: electrons are the new oil, energy is becoming the defining resource of the digital economy, powering everything from Bitcoin mining to artificial intelligence.

Per token overtime without significant technology refreshes require even more and higher capital injections.

And we believe energy not compute really becomes the primary constraint on NII growth.

Speaker #3: And we believe those who control abundant low-cost energy will shape the future of both finance and intelligence. Bitcoin is now entered its institutional phase.

We are already seeing the alternatives the gpus into the market and open source AI is making it far easier and much less expensive for companies to deploy advanced AI systems directly in their own private cloud environments.

Speaker #3: We're seeing financial leaders such as BlackRock, Citicorp, and now even JP Morgan integrating Bitcoin into traditional frameworks. We're also witnessing the establishment of strategic Bitcoin reserves by corporations and governments alike. Even the Secretary of the Treasury has posted positive notes about Bitcoin on X.

In the past most models are only available through public cloud Apis that meant enterprises had the same data offsite and pay high per token fees to access AI capabilities, but today many of the world's most capable models like Lama strong others are available and open source for them given the company's full control to run AI more cost efficiently and fine.

Speaker #3: What miners have always understood is now being recognized by global markets. Bitcoin is digital energy, a mechanism for storing and transmitting value. As one of the largest Bitcoin miners in the world, MARA sits at the center of this shift.

Tune their models privately this is a major inflection point for enterprise computing and the shifts that plays directly to our strength as we build out low cost high efficiency <unk> powered by our own energy infrastructure. We believe we are positioned to provide the kind of private scalable environment enterprises need to deploy these open models securely.

Speaker #3: Our energy-to-value infrastructure, allows us to convert raw power directly into Bitcoin. That we hold on our balance sheet, a distinct advantage that grounds our broader mission: transforming energy into intelligence.

Speaker #3: Every electron has potential value, and artificial intelligence represents the next frontier of this transformation of energy into even higher value. We believe that inference AI, where the value of AI is actually created and derived, and not training and foundational models, is where the AI industry will create the greatest amount of value over time.

Mara is positioning itself with the Nexus of these two AI trends open source AI is expanding the addressable the addressable market for private cloud compute.

We believe that the future infrastructure will be built to serve that demand efficiently and profitably. This is where <unk> expertise in securing an operating low cost power gives us a distinct advantage just as we optimize for the lowest cost per Peter Hasson mining, we're now optimizing for the lowest cost per token and AI inference our law.

Speaker #3: Every insight produced by an AI model has a cost per token, driven by the cost to build and operate the data center, of which the energy cost makes up a major component.

Speaker #3: Over time, compute and the cost to build the data center will drop as technology advances, such as low-cost ASICs, open-source models and the ability to operate in less sophisticated and less costly data centers, drive efficiencies resulting in rapidly declining drops in cost per token, making the AI data centers of today unable to compete on cost per token over time without significant technology refreshes.

Long term vision is to integrate these two energy pathways bitcoin NII into a single platform.

Reminding monetize underutilized energy and stabilizes grids, while AI inference transforms that same energy into intelligence and productivity by bringing bitcoin NII together, we seek to maximize the value of every megawatt hour we manage.

Speaker #3: Requiring even more and higher capital injections. And we believe energy, not compute, really becomes the primary constraint on AI growth. We are already seeing the alternatives to GPUs enter the market and open-source AI is making it far easier and much less expensive for companies to deploy advanced AI systems directly in their own private cloud environments.

We have already begun executing on this strategy this quarter, we installed our first AI inference racks at our Grande Prairie site within a modular non water cooled containerized datacenter. This.

<unk> currently has 300 megawatts of nameplate capacity with potential opportunities to expand our growing AI inference business in combination with our bitcoin mining operations at the site.

This milestone marks a significant step forward and proving out our AI infrastructure and next generation in France hypothesis. It also demonstrates the versatility of our platform underscoring the potential flexibility of our mining sites to support AI workloads, along with bitcoin mining.

Speaker #3: In the past, most models were only available through public cloud APIs. That meant enterprises had to send data offsite and pay high per token fees to access AI application capabilities.

Speaker #3: But today, many of the world's most capable models, like Llama, Mistral, and others, are available in open-source form, giving companies full control to run AI more cost-efficiently and fine-tune their models privately.

Two major initiatives this quarter are propelling our strategy going forward first our pending acquisition.

Speaker #3: This is a major inflection point for enterprise computing and a shift that plays directly to our strengths as we build out low-cost, high-efficiency compute powered by our own energy infrastructure.

<unk> a subsidiary of EDF.

In France once regulatory approvals are completed and closing conditions have been met exon will expand our capabilities into enterprise grade AI optimized private cloud and HBC infrastructure. We believe this will position Mara is incredible partner for enterprises seeking secure localized influence capacity.

Speaker #3: We believe we're positioned to provide the kind of private, scalable environments enterprises need to deploy these open models securely. MARA is positioning itself at the nexus of these two AI trends.

Speaker #3: Open-source AI is expanding the addressable market for private cloud compute. We believe that the future infrastructure will be built to serve that demand efficiently and profitably.

Second today, we announced an initiative with MPLX a separately traded public company formed by Marathon Petroleum Corporation, the largest petroleum refiner refinery operator in the United States to develop and operate multiple integrated power generation facilities and state of the art data center campuses in West Texas.

Speaker #3: This is where MARA's expertise in securing and operating low-cost power gives us a distinct advantage. Just as we optimize for the lowest cost per petahash in mining, we're now optimizing for the lowest cost per token in AI inference.

Under this initiative MPLX will provide long term access to lower cost natural gas at scale, where Mara will develop and operate onsite power generation and compute infrastructure. The initial capacity is expected to reach 400 megawatts with the option to expand to up to one five gigawatts across three plant sites.

Speaker #3: Our long-term vision is to integrate these two energy pathways. Bitcoin and AI into a single platform. Bitcoin mining monetizes underutilized energy and stabilizes grids, while AI inference transforms that same energy into intelligence and productivity.

Speaker #3: By bringing Bitcoin and AI This site currently has 300 megawatts of nameplate capacity, with potential opportunities to expand our growing AI inference business in combination with our Bitcoin mining operations at the site.

We are also evaluating additional perspective sites to support modular AI and HBC data centers alongside mining operations, creating optionality for future AI inference workloads.

Speaker #3: together, we seek to maximize the value of every megawatt hour we manage. We've already begun executing on this strategy. This quarter, we installed our first AI inference racks at our Granbury site within a modular non-water-cooled containerized data center.

<unk> approach is to deploy smaller modular facilities directly at lower cost power sites instead of building hyperscale or campuses. We believe this distributed model will enable us to capture value at the end from flair, while continuing to monetize mining and grid sales.

This modular structure also gives them Ara the optionality to shift capacity towards <unk> over time, as and if economics and infrastructure maturities support greater utilization.

Speaker #3: This milestone marks a significant step forward in proving out our AI infrastructure and next-generation inference hypothesis. It also demonstrates the versatility of our platform, underscoring the potential flexibility of our mining sites to support AI workloads along with Bitcoin mining.

We believe <unk> is positioned to capitalize on a key structural advantage as power becomes the primary constraint in AI growth together excitement in MPLX connect the two sides of our AI and data center business energy and compute and strengthen our ability to control both cost and performance from power to influence internationally, we are deepening.

Speaker #3: Two major initiatives this quarter are propelling our strategy going forward. First, our pending acquisition of Xion, a subsidiary of EDF in France. Once regulatory approvals are completed and closing conditions have been met, Xion will expand our capabilities into enterprise-grade AI-optimized private cloud and HPC infrastructure.

So you should see across Europe, and the middle East, where we see significant opportunity to deploy our integrated energy and compute model our pending <unk> acquisition exemplifies this and we're honored to welcome Gerrard, Mr. Elliot President Metro and special energy onboard as an advisor tomorrow is expertise strengthens our global strategy as we pursue our.

Speaker #3: We believe this will position MARA as a credible partner for enterprises seeking secure, localized, inference capacity. Second, today we announced an initiative with MPLX, a separately traded public company, formed by Marathon Petroleum Corporation, the largest petroleum refinery operator in the United States, to develop and operate multiple integrated power generation facilities and state-of-the-art data center campuses in West Texas.

<unk>.

Driving 50% of revenue from international operations by 2028.

On the financial front, we continue to operate with discipline and transparency. We ended the quarter with 52000 and 850 bitcoin heavy remind over 2100 BTC during Q3.

We remain focused on improving free cash flow through ongoing cost optimization site level of efficiency gain and disciplined capital allocation. We have begun opportunistically monetizing breakpoint from production to fund operating expenses and aim to limit reliance on our ATM to support growth initiatives, helping to mitigate shareholder dilution as I.

Speaker #3: Under this initiative, MPLX will provide long-term access to lower-cost natural gas at scale, where MARA will develop and operate onsite power generation and compute infrastructure.

Speaker #3: The initial capacity is expected to reach 400 megawatts, with the option to expand to up to 1.5 gigawatts across three plant sites. We are also evaluating additional prospective sites to support modular AI and HPC data centers, alongside mining operations.

Spoke about last quarter, but corn prices have consolidated within a range since Q2 with intermittent volatility we view this as a healthy period of equilibrium characterized by institutional inflows into Etfs balanced by long term holder liquidation activity using a majority of visitors IPO analogy bitcoin is going through in <unk>.

Speaker #3: Creating optionality for future AI inference workloads. MARA's approach is to deploy smaller, modular facilities directly at lower-cost power sites instead of building hyperscaler campuses.

Speaker #3: We believe this distributed model will enable us to capture value at the inference layer while continuing to monetize mining and grid sales. This modular structure also gives MARA the optionality to shift capacity towards HPC over time, as and if economics and infrastructure maturity support greater AI utilization.

Were early investors in Dcs are exiting and institutional investors that are coming in forming a new base and foundation for growth.

Meanwhile, broader macro trends, including rate cuts and expanding liquidity suggest improving condition for risk assets, regardless of short term volatility our long term trajectory remains unchanged building enduring value through energy ownership operational excellence and strategic execution.

Speaker #3: We believe MARA is positioned to capitalize on a key structural advantage as power becomes the primary constraint in AI growth. Together, Xion and MPLX connect the two sides of our AI and data center business, energy and compute, and strengthen our ability to control both cost and performance from power to inference.

Finally, I want to provide an update on <unk>, while we continue to recognize the long term potential of two phase immersion. It's practical broad application is still a few years out and directed chip cooling remains the preferred Cooley methodology of data center operators and compute Oems we have exited near term investment in two phase immersion.

Speaker #3: Internationally, we're deepening relationships across Europe and the Middle East, where we see significant opportunity to deploy our integrated energy and compute model. Our pending Xion acquisition exemplifies this, and we're honored to welcome Gerard Mistralet, President Macron's Special Energy Envoy, as an advisor to MARA.

To focus resources on opportunities with a more immediate and higher return potential.

In closing Mara is evolving from a bitcoin minor into a digital infrastructure leader, combining energy generation bitcoin mining and AI compute under one scalable platform are guiding metric is simple profit per megawatt hour that measures, how effectively we convert energy into value whether in bitcoin AI inference or grid stability as we.

Speaker #3: His expertise, strengthens our global strategy as we pursue our goal of deriving 50% of revenue from international operations by 2028. On the financial front, we continue to operate with discipline and transparency.

Speaker #3: We ended the quarter with $52,850 Bitcoin, having mined over 2,100 BTC during Q3. We remain focused on improving free cash flow through ongoing cost optimization, site-level efficiency gains, and disciplined capital allocation.

Continue to execute we believe the market will increasingly recognize the strength of this diversified model and the strategic importance of energy ownership in the digital economy.

I want to thank our employees for their exceptional work this quarter and our shareholders for their continued support as we build mara into the world's leading digital energy infrastructure company with that I'll turn it over to sell non to review the financials.

Speaker #3: We have begun opportunistically monetizing Bitcoin from production to fund operating expenses and aim to limit reliance on our ATM to support growth initiatives, helping to mitigate shareholder dilution.

Speaker #3: As I spoke about last quarter, Bitcoin prices have consolidated within a range since Q2. With intermittent volatility, we view this as a healthy period of equilibrium, characterized by institutional inflows into ETF, balanced by long-term holder liquidation activity.

Thank you Fred.

During the quarter global hash rate grew by roughly 20%.

Cash rent and Netflix difficulty both hitting new all time highs by end of the quarter.

<unk> price remains relatively range bound trading between 104220 $4000.

Speaker #3: Using Jordi Visser's IPO analogy, Bitcoin is going through an IPO, where early investors in VCs are exiting in institutional investors that are coming in, forming a new base and foundation for growth.

Closing the quarter with a modest $7000 gain.

It was one of the most competitive mining environments in recent times and a difficult backdrop for our performance this quarter.

Speaker #3: Meanwhile, broader macro trends, including rate cuts and expanding liquidity, suggest improving conditions for risk assets. Regardless of short-term volatility, our long-term trajectory remains unchanged, building enduring value through energy ownership, operational excellence, and strategic execution.

Despite this Q3.

Highest revenue and extra headquarter in the company's history.

Our focus on operational and financial discipline over the past year is reflected in the substantial growth of our compute capacity and the point holdings.

Speaker #3: Finally, I want to provide an update on TUPIC. While we continue to recognize the long-term potential of two-phase immersion, its practical broad application is still a few years out, and direct-to-chip cooling remains the preferred cooling methodology of data center operators and compute OEMs.

In Q3, 2024, and 2025, our fifth point holdings expanded by over 98% growing from approximately 27000 to nearly 53000 bitcoin.

Our energized hatch rates also extended.

Speaker #3: We have exited near-term investment in two-phase immersion to focus resources on opportunities with more immediate and higher return potential. In closing, MARA is evolving from a Bitcoin miner into a digital infrastructure leader combining energy generation, Bitcoin mining, and AI compute under one scalable platform.

Increasing 64% from 30, $692 64 <unk> per second.

Bitcoin price appreciation resulted in approximately $1 3 billion or 256% increase year over year.

While Fred spoke to our vision and strategy, our vertical integration and capital allocation strategy is reflected on our financial results.

Speaker #3: Our guiding metric is simple: profit per megawatt hour. It measures how effectively we convert energy into value, whether in Bitcoin, AI inference, or grid stability.

That balanced execution allowed us to expand our holdings and take advantage of favorable market conditions, while maintaining liquidity and flexibility.

Speaker #3: As we continue to execute, we believe the market will increasingly recognize the strength of this diversified model and the strategic importance of energy ownership in the digital economy.

Do you mind to 144, Bitcoin and purchased an additional 202257.

Speaker #3: I want to thank our employees for their exceptional work this quarter and our shareholders for their continued support as we build MARA into the world's leading digital energy and infrastructure company.

The impact on our financials is evident in the results we achieved let's take it.

Speaker #3: With that, I'll turn it over to Salman to review the financials.

Speaker #2: Thank you, Fred. During the quarter, global hash rate grew by roughly 20%, with a hash rate and network difficulty both hitting new all-time highs by the end of the quarter.

Revenues increased 92% to $2 $52 4 million.

131, 6 million in the third quarter of 2024.

Speaker #2: Bitcoin's price remains relatively rangefound, trading between $104,000 to $124,000, closing the quarter with a modest $7,000 gain. It was one of the most competitive mining environments in recent times.

<unk> average price increased 88% over that time period, which contributed $113 3 million.

We mined an average of $23 three BTC a day throughout Q3 compared to <unk> 20 to <unk> 20.

Speaker #2: And the difficult backdrop for our performance this quarter. Despite this, Q3 was the highest revenue and extra hash quarter in the company's history. Our focus on operational and financial discipline over the past year is reflected in the substantial growth of our compute capacity and Bitcoin holdings.

22, five DTC in Q3 of 2024, which resulted in 74 more bitcoin mine this quarter.

Our strategy to deploy extra hashed responsibly resulted in growth of our BTC mind, despite a significant growth in global hatch rates and network difficulty levels.

Speaker #2: Between Q3 2024 and 2025, our Bitcoin holdings expanded by over 98%, growing from approximately $27,000 to nearly $53,000 Bitcoin. Our energized hash rate also expanded.

We reported a net income of $123 $1 million or 27 cents per diluted share last quarter compared to net loss of $124 8 million or negative <unk> 42 per diluted share in the third quarter of last year.

Speaker #2: Increasing 64% from 36.9% to 60.4% extra hash per second. Bitcoin price appreciation resulted in approximately $4.3 billion or $256% increase year over year. While Fred spoke to our vision and strategy, our vertical integration and capital allocation strategy is reflective of our financial results.

We also booked a $343 $1 million gain on digital assets, including receivables during the third quarter of 2025.

Reflecting the positive impact of the Big claims holdings on our balance sheet.

Now, let's talk about our cost structure.

Our purchased energy cost of bitcoin for the quarter was $39235 and our daily cost per <unk> per day improved 15% year over year.

Speaker #2: That balanced execution allowed us to expand our holdings and take advantage of favorable market conditions while maintaining liquidity and flexibility. We mined 2,144 Bitcoin, and purchased an additional 2,257.

Which we believe at scale is one of the lowest in the sector.

This improvement is directly tied to our growing inventory of owned and operated sites, which now account for approximately 70% of our nameplate megawatt capacity.

That transition supports our vertical integration strategy, but also paid dividends both financially and operationally.

Speaker #2: The impact on our financials is evident in the results we achieved. Let's dig in. Revenues increased 92% to $252.4 million, from $131.6 million in the third quarter of 2024.

Since we do not control the price of Bitcoin B mind.

Minimizing the cost of inputs like energy are critical to the financial resilience and long term success of the company.

Speaker #2: Bitcoin's average price increased 88% over that time period, which contributed $113.3 million. We mined an average of $23.3 BTC a day, throughout Q3, compared to $22.05 BTC in Q3 of 2024, which resulted in $74 more Bitcoin mined this quarter.

Next I'll provide some insights into our bitcoin buildings and digital asset management strategy.

<unk> is the second largest corporate public closure of a coin and we seek to generate returns on our holdings as bitcoin price appreciates.

Our approach combines the potential for long term bitcoin depreciation with disciplined efforts to generate return while managing risk.

Speaker #2: Our strategy to deploy extra hash responsibly resulted in growth of our BTC mine despite a significant growth in global hash rate and network difficulty levels.

Additionally, we have also use bitcoin as a collateral to borrow under lines of credit.

As of September 32025, we held a total of 52850, bitcoin, including 17357, Bitcoin equity wound actively managed and pledge as collateral.

Speaker #2: We reported a net income of $123.1 million or $27 cents per diluted share last quarter, compared to net loss of $124.8 million or negative $42 cents per diluted share, in the third quarter of last year.

As such approximately one third of our total holdings were activated through.

Our digital asset management strategy.

Speaker #2: We also booked a $343.1 million gain on digital assets, including Bitcoin receivables, during the third quarter of 2025. Reflecting the positive impact of the Bitcoin holdings on our balance sheet.

In Q3, the issued one point or two five or $1.0 billion to $5 billion.

On zero coupon convertible notes due 2032, extending our maturity profile and increasing balance sheet optionality.

Speaker #2: Now, let's talk about our cost structure. Our purchased energy cost the Bitcoin for the quarter was $39,235, and our daily cost per petahash per day improved 15% year over year.

With additional liquidity Mara gains strategic flexibility to act on opportunities.

Thats acquiring morbid coin funding, our acquisitions balance sheet management, our general corporate purposes.

Speaker #2: Which we believe at scale is one of the lowest in the sector. This improvement is directly tied to our growing inventory of owned and operated sites, which now account for approximately 70% of our nameplate megawatt capacity.

We have positioned <unk> to act in response to market conditions in order to maximize long term short with shareholder value.

As of September 32025, we held over $70 billion in liquid assets, giving us the flexibility to fund domestic growth and pursue international expansion.

Speaker #2: That transition supports our vertical integration strategy, but also pays dividends both financially and operationally. Since we do not control the price of Bitcoin we mine, minimizing the cost of inputs like energy are critical to the financial resilience and long-term success of the company.

To streamline our communications starting in Q4, we will share our production on accordingly basis investors can continue to monitor our monkey Moura, who will production in real time on demand pool.

Speaker #2: Next, I'll provide some insights into our Bitcoin holdings and digital asset management strategy. MARA is the second largest corporate public holder of Bitcoin and we seek to generate returns on our holdings as Bitcoin price appreciates.

As we have stated previously electrons or the new oil and.

And we are laying the groundwork for 2026 and beyond.

We're executing on our pipeline of energy infrastructure projects.

Speaker #2: Our approach combines the potential for long-term Bitcoin appreciation with disciplined efforts to generate return while managing risk. Additionally, we have also used Bitcoin as a collateral to borrow under lines of credit.

Look in the U S and internationally and we expect these investments to expand our capabilities, while keeping costs low.

With that I'll turn it over to Reggie Smith from Jpmorgan to begin our management interviewed Randy.

Speaker #2: As of September 30, 2025, we held a total of $52,850 Bitcoin, including $17,357 Bitcoin that were loaned, actively managed, and pledged as collateral. As such, approximately one-third of our total holdings were activated through our digital asset management strategy.

Thank you.

Good morning, guys. I. Appreciate you are you selecting me for this.

On this call here.

Obviously very big announcements. This morning, I guess kind of help me interpret this morning's announcements versus I guess kind of your prior strat.

Strategy.

Like what's being emphasized deemphasize, maybe talk about that from that like whats. The most emphasis you're placing on the business and maybe the least because there's a lot going on here.

Speaker #2: In Q3, we issued $1.025 or $1.025 billion of zero-coupon convertible notes due 2032. Extending our maturity profile and increasing balance sheet optionality. With additional liquidity, MARA gains strategic flexibility to act on opportunities.

Relative to the other big quite miners I know the other guys decline mining or kind of co location you guys seem to have a lot of Moores law.

<unk>, maybe talk through some of those differences.

If you think about.

Speaker #2: Whether that's acquiring more Bitcoin, funding acquisitions, balance sheet management, or general corporate purposes. We have positioned MARA to act in response to market conditions in order to maximize long-term shareholder value.

The deal we.

You announced today, it's about getting access to low cost energy that is reliable available 24, seven where because we are the generator provides us with a very low cost. If you look into the details of the announcements you will see that the pricing on the gases.

Speaker #2: As of September 30, 2025, we held over $7 billion in liquid assets, giving us the flexibility to fund domestic growth and pursue international expansion.

Amongst the lowest.

And the market. The other thing is that it gives us now the capacity to add potentially up to one five gigawatts of datacenter capacity, if we want to.

Speaker #2: To streamline our communications starting in Q4, we will share our production on a quarterly basis; investors can continue to monitor our monthly MARA pool production in real time on the mempool.

Which gives us lots of flexibility a lot of our bitcoin mining sites are very attractive to us for inference AI as we discussed earlier, we talked about what we're doing at granberry and what we'll be able to do with some of our other sites.

Speaker #2: As we have stated previously, electrons are the new oil. And we are laying the groundwork for 2026 and beyond. We're executing on a pipeline of energy infrastructure projects both in the US and internationally.

In a similar fashion, where we can blend inference AI and bitcoin mining.

But the relationship with MPLX and the opportunities. It provides give us so much broader canvas that we can paint on whether that is traditional HPV like some of our peers have done or whether we want to build it out as hybrid.

Speaker #2: And we expect these investments to expand our capabilities while keeping costs low. With that, I'll turn it over to Reggie Smith from JPMorgan to begin our management interview.

Inference, AI and bitcoin mining sites. So it gives us a lot of flexibility and we believe that controlling and owning power as a core part of any company that operates in the digital infrastructure space. When you look at the.

Speaker #2: Reggie? Thank you. Good morning, guys. I appreciate you selecting me for this call here. I would be very big announcements this morning. I guess kind of help me interpret this morning's announcement versus, I guess, kind of your prior strategy.

Spending that's going on and I think you've touched on our Dell said this.

In a recent podcasts.

It was quoted where he was quoted as saying that compute isn't the constraint energy is the constraint and.

Speaker #2: What's being emphasized, de-emphasized, maybe talk about that from the—what's the most emphasis you're placing on the business and maybe the least? Because there's a lot going on here.

So access to energy we believe.

Critical.

We think <unk>.

Over the long term is where all the value is going to get created in this space.

Speaker #2: Certainly relative to the other Bitcoin miners. I know the other guys, it's either Bitcoin mining or kind of colocation. You guys seem to have a lot of more balls in the air.

But we believe that bitcoin mining has a very important role to play and not just balancing grids, but providing a flexible load when mixed with AI such that AI can begin to operate.

Speaker #2: Maybe talk through those differences. Hey, guys, is everything okay?

In more places than it does today and the last thing I'd say.

Is that we believe that the technology curve.

<unk> is going to move so quickly in this space because you have to realize that just like in bitcoin mining where cost per <unk> is the most important metric that drives profitability in the AI business.

Unless you are in the application layer.

In other words running owning the data and the application that is generating value for the enterprise.

In health care owning the healthcare data running the actual AI analysis, the only thing hosting providers.

Speaker #3: Yes. I didn't hear anything. Did you catch my question?

Model operators provide.

Speaker #2: Oh, sorry about that. Sorry. I had a comms issue here. I'm in the UK, so it was a little bit of a problem. I'm back on now.

Our tokens in the sense of we need lowest cost per token if we're going to use that service.

And using the API is when the cloud providers is a very expensive way of running AI and most enterprises today are being confronted with the fact that the cost per token is too high use the existing systems and they want to move too.

Speaker #2: So yeah, I heard your question, Reggie. Sorry. So if you think about the deal we announced today, it's about getting access to low-cost energy that is reliable, available 24/7, where because we are the generator, it provides us with a very low cost.

Lower cost systems, and we're going to start seeing we already are seeing.

<unk> based solutions coming.

Speaker #2: If you look into the details, the announcement, you'll see that the pricing on the gas is amongst the lowest. In the market. The other thing is that it gives us now the capacity to add potentially up to $1.5 gigawatts of data center capacity.

<unk> source models.

All of which will allow enterprises to build.

Their own and operate their own private cloud or use those services from third parties.

Allowing them to drive value from AI, So I think.

For a lot of the big guys.

Speaker #2: If we want to. Which gives us lots of flexibility. A lot of our Bitcoin mining sites are very attractive. To use for inference AI, as we discussed earlier, we talked about what we're doing at Granbury.

The challenges they are doing deals.

With co location partners.

Where they are not taking on the debt the debt is being laid on the joint venture or the SPV related to that co location.

Speaker #2: And what we'll be able to do at some of our other sites. In a similar fashion, where we can blend inference AI and Bitcoin mining.

Facility and that co location partners, having to deploy a lot of capital to build those sites and equip those sites.

Speaker #2: But the relationship with MPLX and the opportunities it provides give us a much broader canvas that we can paint on. Whether that is traditional HPC, like some of our peers have done, or whether we want to build it out as hybrid AI inference AI and Bitcoin mining sites.

And you have technology obsolescence over the course of a 10 year lease you will have to upgrade the hardware in that location.

You have to estimate that and the cost of what it's going to be to build and operate and I think there is a risk.

Speaker #2: So, it gives us a lot of flexibility. We believe controlling and owning power is a core part of any company that operates in the digital infrastructure space.

Actually that one four trillion dollar of datacenter contracts signed by open AI over the that we will have to be operating in the next five years. According to what was recently reported in the press.

Speaker #2: When you look at the spending that's going on, and I think Sachin Ardel said this in a recent podcast that was quoted, where he was quoted as saying that compute isn't the constraint, energy is the constraint.

That's some of that may not actually be.

Are you able to come online and generate revenue so.

I think our approach is much better and more prudent.

Speaker #2: And so access to energy, we believe, is critical. We think inference over the long term is where all the value is going to get created in this space.

Certainly much more capital efficient.

By being at the end of the spectrum, where we're vertically integrated and able to operate at lowest cost per token and deliver lowest cost per token.

Speaker #2: But we believe that Bitcoin mining has a very important role to play in not just balancing grids, but providing a flexible load when mixed with AI, such that AI can begin to operate in more places than it does today.

We will have a significant advantage in the marketplace.

And Randy just a reminder, we.

Today, we control approximately two gigawatts of capacity and this added capacity is incremental to that takes us to close to three five gigawatts over a period of time.

Speaker #2: And the last thing I'd say is that we believe that the technology curve is going to move so quickly in this space because you have to realize that just like in Bitcoin mining, where cost per peta hash is the most important metric that drives profitability, in the AI business, unless you are in the application layer, in other words, running owning the data and the application that is generating value for the enterprise, in healthcare, owning the healthcare data, running the actual AI analysis, the only thing hosting providers and model operators provide are tokens in the sense of we need lowest cost per token if we're going to use that service.

Got it understood I'd like Fred.

I appreciate the color there and I was doing some kind of light mass.

This morning, and I think about I guess kind of AI and HBC you made a comment in your.

Shareholder letter about the price of power and the price of compute.

You made some parallels between bitcoin mining and HBC and I was looking at the numbers and I think maybe a little bit off but directionally. This is this is a fair statement. When you look at get quite mining the price of power and the price of the actual Asics. If you think about depreciated per hour or about the same but like a one to one ratio there.

Our Gpus that ratio is more like one power 10 GPU.

Speaker #2: And using the APIs from the cloud providers is a very expensive way of running AI. And most enterprises today are being confronted with the fact that the cost per token is too high using existing systems, and they want to move to lower-cost systems and we're going to start seeing—we already are seeing—ASIC-based solutions coming open-source models all of which will allow enterprises to build their own and operate their own private cloud or use those services from third parties allowing them to drive value from AI.

Depreciation charge narrow interpretation of Super high So you talked about.

Six and somehow I guess driving the cost of the.

Hardware.

Thinking about that right like what are you what are you seeing and kind of where do you see the world oil in there.

Think about it this way when bitcoin mining started we were running Cpus.

Alright, then we went to Gpus and then we went to FPGA. As then we went to Asics and when you look at the amount of compute power.

For think of us as the number of Terra how should we could produce for.

Speaker #2: So I think for a lot of the big guys the challenge is they are doing deals with colocation partners where they are not taking on the debt.

A jewel of energy.

It has dramatically changed so you are now processing, many more calculations at much lower cost of energy.

Speaker #2: The debt is being laid on the joint venture or the SPV related to that colocation facility. And that colocation partner is having to deploy a lot of capital to build those sites and equip those sites, and you have technology obsolescence.

And in our business, we depreciate the <unk>.

Compute over three years.

So if youre, a hyper scaler and you're signing a deal for 10 years. Some of these are 15 years.

Speaker #2: Over the course of a 10-year lease, you will have to upgrade the hardware in that location. And you have to estimate that in the cost of what it's going to be to build and operate.

And the depreciation schedule is five years for the machine.

Does that mean, they're going to have to replace those machines three times in that cycle.

Speaker #2: And I think there's a risk potentially that $1.4 trillion of data center contracts signed by OpenAI over that will have to be operating in the next five years, according to what was recently reported in the press, that some of that may not actually be able to come online and generate revenue.

Right and to your point Gpus to power is most probably a 10 to one ratio.

And as you get the Asics that starts dropping empower starts becoming even more important component.

And when you start looking at the and cost per token.

At that point the model cost sulfur comes into play and so if you have open source model.

Speaker #2: So I think our approach is much better, more prudent, certainly much more capital efficient. And by being at the end of the spectrum over a vertically integrated and able to operate at lowest cost per token and deliver lowest cost per token, we will have a significant advantage in the marketplace.

If you have.

Low cost hardware that is energy efficient youre operating data centers that don't cost you $10 million a megawatt to build.

Start getting to economics that start presumably bitcoin mining over time.

Okay understood.

Speaker #1: And Reggie, just a reminder, we today control approximately 2 gigawatts of capacity. This added capacity is incremental to that, which takes us to close to 3.5 gigawatts over a period of time.

I understand this.

I want to understand or make sure I'm hearing you correctly. When you think about kind of the investment and risk on the capex. The risks within the zinc absent you got guys that are building data centers you got people that are buying.

Speaker #3: Got it. Understood. I'd like Fred, I appreciate the color there. And I was doing some kind of light math this morning. And I think about, I guess, kind of AI and HPC, you made a comment in your shareholder letter about the price of power and the price of compute.

Like Gpus and hardware and then you're saying, obviously you get the model guys as well.

Alright, I guess your comments on kind.

Kind of where the Capex risk is greatest.

Are you, suggesting that the people that are buying the machines.

Taken on the most risk or do you think there is still substantial risk in building big data centers and asking that in the context of you guys. Just I guess, a few gpus yourself and so.

Speaker #3: You made some parallels between Bitcoin mining and HPC. And I was looking at the numbers, and I think they may be a little bit off, but directionally, this is, I think, a fair statement.

Speaker #3: When you look at Bitcoin mining, the price of power and the price of the actual ASICs, if you think about depreciating per hour, are about the same.

My square all of this together to understand kind of what your view is.

Speaker #3: It's like a one-to-one ratio there. For GPUs, that ratio is more like one power 10 GPU. So by depreciation charge, and not only depreciation is super high.

Sure.

Alright, so part of the question is are you in the business of being a bare metal shop.

You are providing essentially.

Hosting and Gpus, looking what irene's bare metal.

Speaker #3: So, you talked about ASICs and somehow, I guess, driving the cost of the hardware down. Am I thinking about that right? What are you saying?

Somebody has to load their software on it but they are renting capacity.

Gpus effectively.

Speaker #3: And kind of where do you see the world going there?

And that's key.

Cloud of this call.

Speaker #2: Listen, just think about it this way. When Bitcoin mining started, we were running CPUs. Right? Then we went to GPUs; then we went to FPGAs; then we went to ASICs.

That case.

The owner operator is funding the GPU purchases.

In the case of a co location.

There are some deals that have been done where the operator is funding.

Speaker #2: And when you look at the amount of compute power per—think of it as the number of terahash we could produce for a joule of energy—it has dramatically changed so you are now processing many more calculations at much lower cost of energy.

The Gpus and there are other deals where the.

The lesser of the space. If you would is bringing the gpus and they are the buyer and operator. So if Microsoft comes in is going to contract with you to just buy capacity from you they're going to bring the Gpus hopefully.

You would hope at least and Theyre, taking that risk, but there are lots of different models out there are being operated by people what we're doing with inference at the edge is much more.

Speaker #2: And in our business, we depreciate the compute over three years. So if you're a hyperscaler and you're signing a deal for 10 years, some of these are 15 years, and the depreciation schedule is five years for the machines, does that mean they're going to have to replace those machines three times in that cycle?

<unk>.

Around providing inference AI, which is not running on Gpus were running on it is a type solutions.

And so it's a very it's a different model from a hardware cost perspective, it's air cooled is not liquid cooled for example.

Which means your infrastructure is much less expensive youre not having to spend.

Speaker #2: Right? And to your point, GPUs to power is most probably a 10 to 1 ratio. And as you get to ASICs, that starts dropping, and power starts becoming an even more important component.

Many millions of dollars per megawatt on building infrastructure specialized cooling infrastructure and all of that adds up to the economics of what you can do but <unk> also done at smaller volumes.

Speaker #2: And when you start looking at the end cost per token, at that point, the model cost also comes into play. And so if you have open-source models, if you have low-cost hardware, that's energy efficient, you're operating in data centers that don't cost you $10 million a megawatt to build, you start getting to economics that start resembling Bitcoin mining over time.

You don't have to do.

<unk>.

100 megawatt sites yet.

Most of the needs for inference still are quite young it's early in the market, but if you believe what gartner in the analyst day.

Over the next three to five years influence will be the primary generated revenues and value creation within the AI space.

So.

That's where I was wondering.

Speaker #3: Okay. Understood. Now, help me understand this. I want to understand or make sure I'm hearing you correctly. When you think about kind of the investment risk and the CapEx risk within this chain, obviously, you've got guys that are building data centers, you've got people that are buying GPUs and hardware, and then you say, obviously, you've got the model guys as well.

Understood.

I'm going to skip around a little bit here I wanted to talk about <unk>.

Hi.

Can you kind of look back into the broader discussion, but obviously you guys are now set of acquisition.

Helping us.

Zane do today, maybe talk about the scale.

Their operations like are they running data centers today, and if so what's the size of those.

Speaker #3: I guess your comments on kind of where the CapEx risk is greatest, are you suggesting that the people that are buying the machines are taking on the most risk, or do you think there's still substantial risk in building big data centers?

What are they do exactly.

Zion.

Is today.

Until we close a fully owned subsidiary of EDF that operates EDF Datacenters, where.

Speaker #3: And I ask you that in the context of you guys just, I guess, bought a few GPUs yourself. And so help me square all of this together to understand kind of what your view is there.

All of the data for the nuclear fleet operates.

Process so they run.

Etfs.

AI and traditional data centers.

<unk>.

Speaker #2: Right. So part of the question is, are you in the business of being a bare metal shop? Right? You're providing essentially hosting and GPUs.

<unk> enterprise they have about four data centers today three in France. When you Canada. They also operate quantum technology in the Canadian data Center, which is.

Speaker #2: Look at what Iron's doing, right? It's bare metal. Somebody has to load their software on it, but they're renting capacity on GPUs effectively. And that's GPU cloud, as it's called.

Made available for research purposes, and they have built a whole set of software solutions that allow you to.

Operate the data center store data in full private mode, meaning the <unk>.

Speaker #2: In that case, the owner and operator is funding the GPU purchases. Right? In the case of a colocation, there are some deals that have been done where the operator is funding the GPUs, and there are other deals where the lesser of the space, if you would, is bringing the GPUs, and they are the buyer and operator.

Users data is fully encrypted the client doesn't have the keys to that data.

So where that data center to be broken into if you said it.

If somebody were to steal data the data and the data centers encrypted so.

It's the customer holds the keys to that data and so it's a way to build private cloud solutions.

Speaker #2: So if Microsoft comes and is going to contract with you to just buy capacity from you, they're going to bring the GPUs, hopefully. You would hope at least, and they're taking that risk.

That are fully secure and so the whole reason.

For making the investment in <unk> is it gives us access to.

Speaker #2: But there are lots of different models out there being operated by people. What we're doing with inference at the edge is much more around providing inference AI, which is not running on GPUs.

Team.

And the existing set of data centers that are tier three and tier four already.

They know how to operate the most sensitive data.

To protect it.

Speaker #2: We're running on ASICs. ASIC-type solutions. And so it's a different model from a hardware cost perspective. It's air-cooled. It's not liquid-cooled, for example. Which means your infrastructure is much less expensive.

They have existing customers. So they have experience and we are going to leverage.

Their knowledge their experience their technology and their platforms to expand what they do on a global basis.

Speaker #2: You're not having to spend many millions of dollars per megawatt on building infrastructure specialized cooling infrastructure. And all of that adds up to the economics of what you can do.

Got it so asset light they are more of a service layer and the engineers of software things like that like you don't actually own any data centers, it's really.

Running that data center, securing data is that the right way.

Speaker #2: But inference is also done at smaller volumes. Right? You don't have to do 100 megawatt sites yet. Most of the needs for inference still are quite young.

Okay is there a way to frame it maybe early.

Their revenue run rate and interestingly about that transaction I think the first.

Speaker #2: It's early in the market. But if you believe what Gartner and the analysts say, over the next three to five years, inference will be the primary generator of revenues and value creation within the AI space.

Basically what I'm, saying that the transaction you bought them for $168 million. The next 11% will be in a much higher rate.

Yes, it wasn't the thinking there.

Yes.

Yes.

Speaker #2: So that's where we're swimming.

I think.

You can think of how many times deals like this restructured.

Speaker #3: Understood. I'm going to skip around a little bit here. I wanted to talk about xion and kind of loop it back into the broader discussion.

You are paying for a portion of the business based on where it is today.

And then.

Speaker #3: But obviously, you guys have now set an acquisition. Help me understand what they do today. Maybe talk about the scale of their operations. Are they running data centers today?

The growth opportunity for the existing investors.

In executing on our plan to.

To help grow the business and therefore, youre going to pay a higher multiple for that.

Speaker #3: And if so, what's the size of those? What do they do exactly?

How you should think Vista.

Okay now when a child is back so the MPLX transaction.

Speaker #2: Yeah. xion is today until we close, a fully owned subsidiary of EDF. That operates EDF data centers where all of the data for the nuclear fleet operates in this process.

Real quick on that does it require any like ERCOT approval.

Most of these guys have the natural.

Natural gas you guys would make the power plant or whether generation assets data center, but is there anything needed from air patch.

Any roadblocks there how quickly could you.

Speaker #2: So they run EDF's AI and traditional data centers. Across the EDF enterprise, they have about four data centers today, three in France, one in Canada.

Data center up and running.

I think you have to think of it more as the first thing. We're doing is building a power generating station, which will be gas fired power plants. So you have regulatory requirements around air permits for example, which.

Speaker #2: They also operate quantum technology in the Canadian data center, which is made available for research purposes and they have built a whole set of software solutions that allow you to operate the data center stored data in full private mode, meaning the user's data is fully encrypted.

Yes.

In the current political environment should not be.

Exceedingly difficult to acquire.

We feel fairly confident that we'll be able to get those.

Without much problem. So once you've built the power plant then.

<unk>.

Because you are not.

Directly grid attached yet you then have to apply to attached to the grid and be it provider to the grid. So theres a regulatory process for that Meanwhile, you can be producing energy and operating data center fully behind the meter.

Speaker #2: xion doesn't have the keys to that data. So where that data center to be broken into, if you think of somebody were to steal data, the data in the data center is encrypted.

Speaker #2: So it's the customer holds the keys to that data. And so it's a way to build private cloud solutions that are fully secure. And so the whole reason for making the investment in xion is it gives us access to a team and an existing set of data centers that are tier three and tier four already.

And its aircraft gets involved when you connect to the grid.

Or the utility once you connect to the grid I understood. So and the goal here, what's really important to remember about this MPLX.

Relationship is.

It gives us.

The ability to.

Owned and operated gas fired power plants.

With very low cost gas.

Speaker #2: They know how to operate the most sensitive data. They know how to protect it. They have existing customers. So they have experience. And we are going to leverage their knowledge, their experience, their technology, and their platforms to expand what they do on a global basis.

With the ability to co locate large scale data centers.

With reliable 24 seven power.

Is it a very attractive part of the marketplace.

So it gives us a lot of control.

To really drive our growth.

Speaker #3: Got it. So their asset lake, they're more of a service layer than engineers or software, things like that. They don't actually own any data centers.

In a very cost effective way.

And I think it positions us very well.

Speaker #3: It's really running that data center, securing data.

Come what may in this <unk> market can you give us a lot of opportunities.

Speaker #2: Right.

Speaker #3: Is that the right way? Understood.

To really operate in.

Speaker #2: Yeah.

Speaker #3: Okay. Is there a way to frame it maybe early? Their revenue run rate and interestingly about that transaction, I think the first 64% of the transaction you bought them for 168 million.

Due to generate a lot of value for our shareholders.

Yeah I agree.

I've been thinking about this idea of like vertical integration and I didn't know if it was going to be.

Speaker #3: The next 11% will be at a much higher rate. What was the thinking there?

Tyler company acquiring.

Data center capabilities or the other way around so this is this is very interesting if I could dig.

Speaker #2: It's all.

Speaker #3: Anything you can provide there.

Digging a little bit more so I'm thinking you've talked about two points of megawatts of capacity to start.

Speaker #2: I mean, I think you can think of how many times deals like this are structured. You're paying for a portion of the business based on where it is today.

Should we think about.

Like the minimum effective dose to kind of get started so I don't know if you want to commit 400 megawatts were off the bad is it.

Speaker #2: And then the growth opportunity for the existing investors is in executing on a plan to help grow the business. And therefore, you're going to pay a higher multiple for that.

Megawatts.

And how quickly can conceptualize. This has come together and then I know, it's early days, but like we've heard estimates of up to $10 million per megawatt to build out a data center like what are you thinking about from that perspective.

Speaker #2: That's how you should think of it.

Speaker #3: Understood. Okay. Now, on a towerless deck. So the MPLX transaction, real quick on that. Does it require any ERCOT approval? Most of these guys have the natural gas.

As well.

So.

You don't build a power plant and 20 megawatt acreage.

You build it right to a certain size.

Speaker #3: You guys would make the power plant or the generation assets and then the data center. But is anything needed from ERCOT? Any roadblocks there?

At each site. So there are three sites.

We'll likely think of it in 100 megawatt increments initially.

Speaker #3: And how quickly could you have a data center up and kind of running?

But do you have the ability to scale these plants much.

Speaker #2: Yeah. I think you have to think of it more as the first thing we're doing is building a power-generating station, which will be a gas-fired power plant.

Much larger as it relates to the data centers.

We have the Optionality, we can build these as traditional bitcoin mining data centers that are fully containerized at somewhere around a $1 million a megawatt.

Speaker #2: So you have example, which in the current political environment should not be exceedingly difficult to acquire. We feel fairly confident that we'll be able to get those without much problem.

Including hardware costs.

For compute if you then want to look at.

Going to the AI route if we're doing it similar to how we're running the inference AI, we're running today the actual infrastructure cost is very similar.

Speaker #2: So once you've built the power plant, then because you are regulatory requirements around air permits, for then have to apply to attach to the grid and be a provider to the grid.

It may run a little bit more expensive depending on the cooling technology for use directed cooling or we continue to use air cooled.

Speaker #2: So there's a regulatory process for that. Meanwhile, you can be producing energy and operating data center fully behind the meter. And it's ERCOT gets involved when you connect to the grid.

And if you use directed chip Cooley.

Your cost of infrastructure will end up.

Somewhat higher but the key is we're not building buildings that take three years to build.

Speaker #2: Or the utility does. Once you connect to the grid. And the goal

We're doing these modular containerized solutions, which gives us full flexibility to reconfigure a site depending on whatever we wanted to do on it and I'm a big believer that you will see very high performing <unk> capable modular solutions on the marketplace within the next two to three years.

Speaker #3: Understood.

Speaker #2: here, what's really important to remember about this MPLX relationship is it gives us the ability to own and operate gas-fired power plants with very low cost gas with the ability to co-locate large-scale data centers with reliable 24/7 power in a very attractive part of the marketplace.

Where you will be able to deploy the same sophisticated solutions are building and these very sophisticated data centers.

People can.

<unk> run some of the most sophisticated.

Speaker #2: And so it gives us a lot of control to really drive our growth in a very cost-effective way. And I think it positions us very well come what may in this HPCAI market and give us a lot of opportunities to really operate and continue to generate a lot of value for our shareholders.

You need to remember there are not many customers in the world.

You need data centers of the scale that open AI needs it right.

AI needs a lot of compute capacity because of the breadth of data and the breadth of solutions their models operate if.

If you remember with deep seek did and how deep seek create this turn in the market, it's because instead of operating with a broad.

Speaker #3: Now, I agree. I've been thinking about this idea of vertical integration, and I didn't know if it was going to be a power company acquiring data center capabilities or the other way around.

Foundational model.

They only load into memory, specifically the model segments that they need and the data to solve the query.

Speaker #3: So this is very interesting. If I could dig in a little bit more. So I think you've talked about 400 megawatts of capacity to start.

Which means you know don't need all of that scale.

So what I think will happen in the marketplace.

Speaker #3: Should we think about the minimum effective dose to kind of get started? So I don't know if you want to commit to 400 megawatts right off the bat.

Is that youre going to have efficiencies in models going to open source clients developing their own models and training their own models because the clients don't want to give the data to opening out if I'm.

Speaker #3: Is it 20 megawatts and how quickly can something like this come together? And then I know it's early days, but we've heard estimates of up to 10 million per megawatt to build out a data center.

And I'll give you. An example, I was at <unk> last week, Saudi Arabia than I was sitting with the head of strategy for Aramco on a panel.

Speaker #3: What are you thinking about from that perspective as well?

And.

They don't put their seismic data in the cloud, they're not going to do that.

Speaker #2: So you don't build a power plant in 20 megawatt increments. You build it right to a certain size. At each site. So there are three sites we'll likely think of it in 100 megawatt increments initially.

What do they do it they would build their own months.

Other companies do the same thing.

What Lockheed just did the deal they just did with Google.

It's an on Prem solution.

I'm not going to put my data up into your cloud, Google Youre going to build a cloud instance on Prem on my site that has air gapped from your systems.

Speaker #2: But you have the ability to scale these plants. Much larger. As it relates to the data centers, we have the optionality. We can build these as traditional Bitcoin mining data centers that are fully containerized at somewhere around a million dollars a megawatt.

That's what corporations want they want data sovereignty, they want private cloud they don't want to run up in metal cloud Amazon's cloud.

Or.

Open systems.

Systems.

70% of corporate data today is still not in the cloud Theres a reason for that.

Speaker #2: Including hardware cost. For compute. If you then want to look at going the AI route, if we're doing it similar to how we're running the inference AI we're running today, the actual infrastructure cost is very similar.

And I think when you look at inference.

Inference is deriving insights.

The data that runs your company.

Right. It's if you're in the health care business doing drug discovery of all the patient data the lab samples et cetera, all of that data that youre driving insights from it.

Speaker #2: It may run a little bit more expensive depending on the cooling technology. If we use direct-to-chip cooling or we continue to use air-cooled. And if you use direct-to-chip cooling, your cost of infrastructure will end up somewhat higher.

Alright.

If you are doing.

You are building airplanes, it's all of the design data and the manufacturing data if you're running a factory. It's the operational state of the factory right. If you're running a power plant. It's the operations data of the power plant you don't want to run that off site you wont actually run it on site because those systems become mission critical and actually.

Speaker #2: But the key is we're not building buildings that take three years to build. We're doing these as modular, containerized solutions, which gives us full flexibility to reconfigure a site depending on whatever we want to do at it.

Speaker #2: And I'm a big believer that you will see very high-performing HPC-capable modular solutions on the marketplace within the next two to three years where you will be able to deploy the same sophisticated solutions you're building in these very sophisticated data centers where people can run some of the most sophisticated AI they need to.

Operate the resources.

And operate parts of the business.

You can't take the risk that you have a system failure.

That brings your whole business down just because you lose a link to a cloud or Amazon goes offline like it did the other day.

So I think as people really have to understand that.

Speaker #2: Remember, there are not many customers in the world who need data centers of the scale that OpenAI needs it. Right? OpenAI needs a lot of compute capacity because of the breadth of data and the breadth of solutions their models operate.

There is a limit to what data and how much risk people wanted to do in putting their core critical assets into a cloud operated by a third party.

And if they can solve.

The model issue and do it at lower cost.

Speaker #2: If you remember what DeepSeek did and how DeepSeek created the stir in the market, it's because instead of operating with a broad foundational model, they only load into memory specifically the model segments that they need and the data to solve the query.

Near prime or on Prem in a private environment. They will do it and I havent been speaking with the heads of AI for major corporations in the financial market today, who tell me that they are.

<unk> located.

AI systems out of the cloud.

Back to New York from on Prem private solutions, because it is significantly less expensive to operate than doing it in an Amazon cloud or other places like that.

Speaker #2: Which means you now don't need all of that scale. So what I think will happen in the marketplace is that you're going to have efficiencies in models going to open-source clients developing their own models and training their own models because the clients don't want to give the data to OpenAI.

And I think that the.

Analyst community really needs to do a much better job.

Of talking to the enterprises, who are the users. These are the people who are actually going to pay the money.

Speaker #2: If I'm—and I'll give you an example. I was at FII last week in Saudi Arabia, and I was sitting with the head of strategy for Aramco on a panel.

That will allow open AI to be successful or not that will allow microsoft to be successful or not.

Speaker #2: And they don't put their seismic data in the cloud. They're not going to do that. What do they do? They build their own models.

You can talk until you're blue in the face of the people building these things, but it's like building railways, if there isn't passenger traffic in arrhythmic cargo the rail lines sale.

Speaker #2: Other companies do the same thing. Look at what Lockheed just did, the deal they just did with Google. Right? It's an on-prem solution. You are not—I'm not going to put my data up into your cloud, Google.

So that would be countered on this but this is an important thing that a lot of people aren't doing you need to talk to the customers who's going to pay for this stuff.

Speaker #2: You're going to build a cloud instance on-prem on my site that is air-gapped from your systems. That's what corporations want. They want data sovereignty.

I want to make sure I'm hearing this right and connect these dots I think you mentioned Canada.

Smaller kind of I think a one megawatt.

Speaker #2: They want a private cloud. They don't want to run up in Meta's cloud, Amazon's cloud, or OpenAI's systems. Seventy percent of corporate data today is still not in the cloud.

When you call it.

I guess kind of like a sample or.

Yes.

Data center.

Alright, Thanks potash if I'm hearing this right are you, saying that like that could be kind of like the prototypes for.

Speaker #2: There's a reason for that. And I think when you look at inference, inference is deriving insights from the data that runs your company. Right?

Enterprises, having their own on premise.

Hey, John.

Yeah. So so think of it this way right.

Give you an oil drilling an example, right.

Speaker #2: If you're in the healthcare business doing drug discovery, it's all the patient data—the lab samples, etc.—all that data you're deriving insights from it. Right?

So you have an exploration drill drilling you have seismic data today.

You have to plan exactly the drill profile on what somebody what the drill operator is going to do.

Speaker #2: And if you are doing you're building airplanes, it's all the design data. And the manufacturing data. If you're running a factory, it's the operations data of the factory.

So there.

The oil companies have built these very sophisticated AI models that run in a module to container typically out on the drilling side that are collecting real time data from the drill and then feeding back instructions into the to the drill master.

Speaker #2: Right? If you're running a power plant, it's the operations data of that power plant. You don't want to run that off-site. You want to actually run it on-site because as those systems become mission-critical and actually operate the resources, and operate parts of the business, you can't take the risk that you have a system failure that brings your whole business down just because you lose a link to a cloud or Amazon goes offline like it did the other day.

Yes.

Existing example, you can go to a trading.

Initial trading company.

And.

The whole thing is speed and latency they want their systems operating under local network not on a wide area of connection where there's latency because.

25.

Milliseconds delay in a response means they lose the profit entrees.

Speaker #2: So I think people really have to understand that there's a limit to what data and how much risk people want to do in putting their core critical assets into a cloud operated by a third party.

And so there are whether you're looking at defense, which is going to be a huge growing sector. When it comes to AI just look at the amount of AI that's needed to operate.

And any theater of war today.

Speaker #2: And if they can solve the model issue and do it at lower cost, near-prem or on-prem in a private environment, they will do it.

Look at health care.

Look at manufacturing and production look at the.

Movie television industry, the single largest consumer of.

Speaker #2: And I have been speaking with the heads of AI for major corporations in the financial market today who tell me that they are relocating AI systems out of the cloud back to near-prem on-prem private solutions because it is significantly less expensive to operate than doing it in an Amazon cloud or other places like that.

Tokens and AI are video.

Illustrations and audio generation those are the systems. The consumers of these diffusion models are the single largest consumer of tokens.

And so cost per token is very critical to them, because if youre going to <unk>.

Speaker #2: And I think that the analyst community really needs to do a much better job of talking to the enterprises who are the users—these are the people who are actually going to pay the money that will allow OpenAI to be successful or not, that will allow Microsoft to be successful or not.

Generally a 510 15 minute clip a video takes multiple factors of magnitude more tokens, then asking open the eyewear you should eat lunch today.

And so again the marketplace gets all hyped up about these big contracts, but they really need to look at who is actually going to use this stuff what are they going to use it for.

Speaker #2: You can talk till you're blue in the face with the people building these things, but it's like building railways. If there isn't passenger traffic and there isn't cargo, the rail lines fail.

What can they afford to pay for it.

Right right well the pricing trends be over time.

To use the.

The worn out Wayne Gretzky technology.

If you're in our business you Wanna be skating to where the puck is going to be gone.

Alright, you don't want to be chasing the puck and I think there are a lot of people announcing deals out there getting on the bandwagon to pump their stock.

Sure.

I need to look at what is this industry going to look like in five years.

That actually it's a nice question for Ed So thinking about it.

Now significant catalysts like what should we look for from Meera to know that likely strategy is taking for I mean, we can start to frame an economic story or accretion story around some of these initiatives.

What are the milestones and announcements we should be looking for from you guys.

Here is where I think you should look for.

Four years ago, I made a presentation at a conference where I said the big coin miners are either going to become energy companies or be owned by energy companies.

I think what you should look for is when large energy companies start signed partnership agreements with companies like us.

To monetize their energy assets.

At large scale.

That will tell you that.

That happens to be us that they have chosen us to do with because they feel we are the best option for them to maximize the value of the electrons that they produce.

That's one step.

Next step is as you start seeing customers.

Using more and more inference, AI and you see us reporting a greater and greater mix of inference AI.

Our data centers.

And the real metric you should look for is what is our profit per megawatt hour that we talk about it.

Not a GAAP measure so.

It's not going to be.

Reported that way, but you can think of it as an operational kpis.

Sure.

The profit we can generate from every megawatt hour of energy that we consume or produce.

As a data point that our investors will be able to see and that will directly correlate to our profitability and ability to have a cash generating business.

Okay. Okay.

And to just to make sure.

I apologize I missed the question.

Hello.

Are you looking to sign co location clients are deals for this site in west, Texas or is this something that youre thinking about putting your own machines in.

And so cost per token is very critical to them. Because if you're going to generate a 5 10 15 minute clip a video, it takes multiple factors of magnitude more tokens than asking open AI, where your sheet lunch today.

And so, I think you again the the marketplace gets all hyped up about these big contracts.

It gives us.

I'm not going to answer the question directly.

But they really need to look at who's actually going to use this stuff. What are they going to use it for?

Because I think our competitors spend more than enough time listening to what I'd say and then emulator yet so I'm just going to say it. This way it gives us maximum optionality to decide what we want to do with whom.

Yeah.

Okay.

I only bring it up because you Didnt mentioned.

Signing a co location.

A milestone.

No you'll see if I can operate.

<unk> operate inference, AI and make money on it without signing our co location facilities.

What can they afford to pay for it right? Right. What will the pricing Trends be over time and you know to use the the um worn out Wayne Gretzky technology. You know, if you're in our business you want to be skating to where the Puck's going to be right. You don't want to be chasing the puck and I think there are a lot of people announcing deals out there getting on the bandwagon to pump their stock. When they're you know they need to look at. What's this industry going to look like in 5 years?

That will give you a little bit more insight into what the business model might actually be.

Okay.

Because think about the best thing about our bitcoin mining business as we don't have a customer.

What's the hardest thing all these co location deals how does that have to go find a customer.

Yes.

That that actually leads to my next question, Fred. So thinking about, you know, announcements and Catalyst, like what should we look for from Mara? Um, to know that like this strategy is taking form and we can start to frame the, uh, an economic story, um, or a creature story around some of these initiatives. So, like, what are the, what are the milestones and announcements that we should be looking for, for you guys? So, so here. Here's what I think you should look for. Um,

Okay. Okay.

Yeah.

People say.

<unk> changed my opinion going to effect change and does it pretty seems like a pretty major shift from like I said, you guys bought Gpus I guess in the last three months and you start to run them.

4 years ago, I made a presentation at a conference where I said that Bitcoin miners, are either going to become energy companies, or be owned by energy companies.

In your mind has changed that has changed your opinion or has your opinion changed in strategic now it seems like the company is kind of pivoting talks.

I think what you should look for is when large energy companies, start signing partnership agreements with companies like us um to monetize their energy assets um at large scale.

Talking about about that like what have you learned or gleaned in the last couple of months or quarters.

It is.

That will tell you that if that happens to be off that they have chosen us to do it with because they feel we are the best option for them to maximize the value of the electrons that they produce.

Great.

Yes.

Wish I could tell you that I had a lightning bolt strike me and I came to <unk>, but this is we're executing the strategy, we decided to execute over a year ago. It's just we have decided not to go totally open with the market and tell people what we're doing because it just gives our competitors insight into what we do and they can emulate it and we prefer.

That's one step. The next step is as you start seeing customers using more and more inference AI, and you see us reporting a greater and greater mix of inference AI in our data centers.

To control the timing on how we talk about what we're doing but I have been talking for the longest time about inference at the edge and that's where we would make our mark in the marketplace.

We are.

We've talked a long time about owning power and the desire to run.

And the real metric you should look for is, what is our profit per megawatt hour that we talked about? It's, you know, it's not a gap measure so, you know, it's not going to be um, reported that way. But you can think of it as an operational kpi where um, The Profit we can generate from every megawatt hour of energy that we consume or produce.

Our business based on controlling energy assets that were fully vertically integrated and we're doing that.

um,

There's no change in strategy. There is no pivot. It's just we have been purposely operating more like a startup.

is a data point that our investors will be able to see and that will directly correlate to our profitability and ability to have a cash generating business.

In the sense that we have really wanted to make sure that we had everything in place.

So that as the market becomes aware of what we're doing they just start seeing kind of announcement. After announcement after announcement that just gives them more and more confidence and that we're executing on the vision that we set out a year ago.

Okay. Um, and and to just to make sure and I apologize this is sort of the question. Um,

Yeah, No I would say from where I sit and I think about all.

Are you looking to sign collocation clients or deals for this site in West Texas? Or is this something that you're thinking about putting your own machines in?

All the pieces you guys have there are a lot of pieces and I'm not smart enough to figure out how to put it all together, but it seems like you guys have.

A lot of ways to kind of win here.

Yes.

I guess can you just have to kind of sit back and wait for those.

For those announcements as they kind of come through.

It gives us, you know, I'm not going to answer the question directly, um, because I think our competitors spend more than enough time listening to what I say and then emulating it. So I'm just going to say it this way: it gives us maximum optionality to decide what we want to do with whom.

I know, we've kind of spent a lot of time on this.

It wasn't a waste of time for people, maybe we can shift gears, a little bit and talk about.

Your ear like sovereign and foreign government initiatives.

Yeah, okay. Because I only bring that up because you didn't mention, you know, signing a, a collocation as, as like a milestone and

Things that are going on there like one of the questions I had.

As you think about this is like what what do you think gives you guys a right to win and the sovereign and view.

No, you see if I can operate in if I can operate, inference, Ai, and make money on it without signing a collocation facility.

That will give you a little bit more insight into what the business model might actually be. Yeah.

And kind of load management space.

Versus competitors.

You're competing with you.

Because think about it. The best thing about our Bitcoin mining business is we don't have a customer

You know.

You know.

So here are a couple of ways to look at it most of our competitors enter a marketplace by partnering with somebody or contracting for power. They don't bother talking to the government because they are afraid that if they do they may not be allowed to do what they want to do.

What's the hardest thing? All these co-locations deals have is they have to go find a customer.

Yeah.

Um,

okay, okay.

And that's the case in a lot of places in the Middle East.

We on the other hand chose to do it the other way so in UAE, where we've been operating now for.

A couple of years.

We chose to directly go and work with the sovereign. So we partnered with 82 in IHT.

And operator joint venture together with them were rebalanced the grid in the UAE. It's one of the most advanced liquid immersion technology sides in.

In the middle East the only one that's bigger than that as the liquid immersion site, we operated in cranberry.

And so.

You know that has given us a reputation of being somebody who.

Works well with government entities.

Follows the rules.

<unk> is focused on being a <unk>.

Good the grid citizens and balancing the grids, so when we talk to.

People.

In other countries such as.

People say uh, you know, change my opinion when the facts change and this is a pretty seems like a pretty major shift for me, like I said you you guys bought gpus I guess in the last 3 months and you start to run them like what in your mind has changed that has changed your opinion or has your opinion changed and and strategically seems like the company has kind of pivoting. Talk to me about about that. Like what what have you learned or or gleaned in the last couple of months or quarters? That, that is, that is, you know, recognition shift. Yeah. Reggie. I I wish I could tell you that. I had a lightning bolt strike me and I came to an epiphany but this is we're executing the strategy. We decided to execute over a year ago. It's just we have decided not to go totally open with the market and tell people what we're doing because it just gives our competitors insight into what we do and they can emulate it. And we prefer to control the timing on how we

In France.

Such as in the UK.

Such as.

Talk about what we're doing but you know, I've been talking for the longest time about inference at the edge and that's where we would make our Mark in the marketplace.

In Kenya.

and we are, um,

In Saudi Arabia.

Other places.

We are welcomed with open arms.

Cause we are focused on how can we make your grid more efficient and more effective how can we make sure that every electron.

We've talked for a long time about owning power and the desire to run our business based on controlling energy assets. So, we're fully vertically integrated, and we're doing that.

Generators generate.

Sorry.

Generate maximum value.

Um, there's no change in strategy. There's no pivot. It's just we have been purposely operating more like a startup.

Um,

And we are here to be a good good citizens.

And we are here to operate such that your grid becomes more stable.

And it becomes easier for you to bring on new types of loads.

AI data centers or whatever.

And.

The.

In the sense that we have really wanted to make sure that we had everything in place. Uh so that as the market becomes aware of what we're doing, they just start seeing kind of announcement after announcement after announcement that just gives them more and more confidence in that we're executing on the vision that we set out, you know, a year ago.

Challenge the way most people see it just it takes time right you know I have been crossing the Atlantic very frequently.

But I have been having meetings in at.

At the top levels of government.

And we have a lot of support we certainly.

Yeah, no, I tell you from where I sit and I think about, you know, all the pieces, you guys have there. There are a lot of pieces and I'm, I'm not smart enough to figure out how to put it all together, but it seems like you guys have um, a lot of ways to kind of win here.

<unk>.

Have seen.

Yes.

A lot of support.

On the European side, because you know there are certain dynamics.

In Europe there.

Create very large opportunity for us.

So same thing exists in.

Saudi Arabia for example.

In other places and we think that.

It's worth our effort to spend the time it takes the time to do this carefully and prudently and well thought out so that we're able to execute.

I guess we just have to kind of sit back and wait for those uh, for those announcements. Um, as they kind of come through, I know we've kind of spent a lot of time on on this. Um, I hope it wasn't a waste of time for people. Maybe we can shift gears a little bit and talk about, um, your your like stubborn and and, and foreign government initiatives. Um, yeah and things that are going on there. Like, 1 of the questions, I

I have.

Successfully have long term success of the countries.

If you think about this is like, you know what, what do you think? Gives you guys a right to win in the Sovereign commute and a load management space?

Does if were friends with the government then we have the advantage that.

Versus competitors, you know, who's who's who's even competing with you?

As they look to expand what they're doing if we are a good partner they will come to us and say hey, we want to do more with you.

And that's the type of relationship we want to have with <unk>.

Our partners across the industry be it governments vendors or.

And customers.

There, you know. Um, you know, I think, uh, so here a couple of ways to look at it: most of our competitors enter a marketplace by partnering with somebody or contracting for power. They don't bother talking to the government because they're afraid that if they do, they may not be allowed to do what they want to do.

And that's the case in a lot of places in the Middle East.

Just wondering you haven't talked about they quit Miami at all.

Brian It's Joe.

Just an update there.

Love to hear about the stuff that's happening at the wind farms flared gas initiatives may you could talk a bit about <unk> and the.

Then.

I guess your plans for growing attach rate.

And how you think about that.

That's kind of where cash prices and.

Why it makes sense to continue to grow your hedge rate.

<unk>.

We on the other hand, chose to do it the other way. So in UAE, where we've been operating now for, um, a couple of years, um, we chose to directly go and work with the sovereigns so we partnered with 82 and IHC um and it operated joint venture together with them where we balanced the Grid in UAE. It's 1 of the most advanced liquid immersion technology sites uh in the Middle East. Um the only 1 that's bigger than that is the liquid immersion site. We operate in Granbury

Level. Thank you.

So.

Maybe ill look at this and kind of somewhat reverse order so.

There is more hatch rate coming online every day from lots of players.

There are very well capitalized.

Two the company's COO.

Who are not public.

<unk>.

Um and so you know, that has given us a reputation of being somebody who uh, works well with government entities, uh, follows the rules and is focused on being a um good to grid Citizen and balancing the grid. So when we talk to play people, um, in other

You have access to huge amounts of capital who we have a stated goal of becoming the largest bitcoin miner in the world.

And.

If we don't grow our hatch rates, we will have an ever decreasing amount of.

The global hatch rates and produce ever decreasing amounts of bitcoin.

Countries such as uh in France um such as in the UK. Um, such as uh, in Kenya, um, in Saudi Arabia in other places. Um, we are welcomed with open arms.

And we think that is our duty to continue to grow our hatch rates not just in the United States, but globally to.

To support the security and diversity of the Bitcoin blockchain.

Because we are focused on how can we make your grid more efficient and more effective? How can we make sure that every electron your generators generate, sorry, um,

Generate maximum value.

And the Bitcoin network, because we don't want it to be dominated by a small handful of players.

And so we believe it's our duty to continue to grow hash rate. So how do we do that economically we do it with low cost power, which we can control.

It's tied to the MPLX deal it ties to.

Citizen. And, uh, we are here to operate such that your grid becomes more stable, um, and it becomes easier for you to bring on new types of loads and see them AI data centers or whatever. Um, and uh, you know, the

What we're doing with our wind farm, Texas it ties to what we're doing with flare gas.

We have doubled by the end of this year will have doubled our flare gas capacity.

And we're going to continue to grow that.

The wind farm.

Fully built out from a data center perspective.

Um, challenge the way. Most people see it is that takes time, right? You know, I have been crossing the Atlantic very frequently, um, but I have been having meetings in you know, at the top levels of government and we have a lot of support. Um, you know, we certainly

um,

And that's running.

And we're going to continue to look at opportunities to.

Far more energy.

Have seen a a a lot of support, uh, on the European side because, you know, there are certain Dynamics, um, in your Europe uh, that create very large opportunities for us.

That is low cost that we can then allocate between bitcoin mining or AI.

You have to start to think of us as we are going to own lots of electrons and where to put those electrons to best possible use in regards to Oregon.

Oregon.

and so um, same thing exists in um, Saudi Arabia, for example, in other places and we think that we're, it's worth our effort to spend the time and take the time to do this carefully and prudently and well thought out so that we're able to execute, um,

More recent hydro model, which competes very well with the <unk> and other vendors models.

<unk> is doing well.

We're deploying <unk> in our fleet.

We're not deploying exclusively Oregon at this point.

successfully and have long-term success in the country. Because if we're friends with the government, then we have the advantage that um as they look to expand what they're doing. Uh, if we are a good partner, they will come to us and say, hey, we want to do more with you.

There is still.

That's the type of relationship we want to have.

Machines have different characteristics that are really good for different environments, and we have a lot of different environments.

Our partners across industry. Be it governments vendors or um,

And so we're continuing to deploy a mix of of systems, but over time it will.

Would be logical to feel that we're going to add more and more Oregon.

Two our fleets.

And it's funny. We haven't talked about Bitcoin mining at all. No running short time. Just a an update there. Um,

Our systems offer some very unique capabilities, especially around load balancing that in a model such as the one that is beginning to gain steam and Texas, where.

love to hear about the stuff that's happening. The wind farm and some of your flared gas initiatives. Maybe talk a bit about Ardine. Um, and then

The utility wants to regulate your curtailment.

And shut you off and turn you on.

That requires special capabilities in the minors and that's something that exists in the Oregon systems.

I guess your plans for growing hash rate here. Uh and how you think about that in the context is kind of where um hatch prices and and why it makes sense to uh to continue to grow your hash rate uh, at these uh, levels. Thank you. Yeah, so um, maybe you'll look at this in kind of a somewhat reverse order. So um,

And so as more and more utilities start.

Looking for those capabilities amongst miners who are on grid I.

I think they will continue to gain some market share there.

There is more hash rate coming online every day from lots of players. Um, you know, the the there are uh, very well capitalized companies.

Other than that they have spun out some very interesting AI related businesses, one or escape, which is around securing large language models.

who uh, are not public who are uh,

Im sorry, which recently had.

Have access to huge amounts of capital, who have a stated goal of becoming, uh, the largest Bitcoin miner in the world.

A lot of positive.

um, and um,

Reviews at the RSA show earlier this year and then also scale up which is the startup around ultra high speed cluster interconnect.

Switch technology so.

That has been a great investment for us and we continue to look for investments like that where we can acquire or build technologies that can become part of our solutions over time.

You know, if we don't grow our hash rates, we will have an Ever decreasing amount of the global hash rate and produce ever decreasing amounts of Bitcoin and we think, um, that is our duty to continue to grow hash rate. Not just in the United States but globally.

And I guess last one for me you kind of talked about earlier.

To support the security and diversity of the Bitcoin blockchain, um, and the Bitcoin Network because we don't want it to be dominated by any small handful of players.

Obviously, a lot of market cap value has been created in the mining space amongst the publicly traded guys.

Um, and so we believe it's our duty to continue to grow hash rate. So how do we do that economically? We do it with low-cost power, which we can control.

I would argue that you guys have received.

Sure.

What what do you think the market is missing.

Hopefully will come to appreciate.

Which ties to the MPLX deal. It ties to, um, what we're doing with our wind farm in Texas. It ties to what we're doing with the flare gas. Um.

And in the near term medium term.

I think ashwin.

Yeah, I mean, I think the key for us is.

<unk>.

The floor on the valuation of our stock is essentially the value of our holdings and people don't put a lot of value on the bitcoin mining infrastructure or the bitcoin mining business per se.

You know, we have doubled uh, by the end of this year, we'll have doubled our flare, gas capacity. Uh and we're going to continue to grow that. Um the wind farm is um fully built out through a data center perspective. Uh and that's running.

and we're going to continue to look at opportunities to um,

And I think as our business continues to evolve, especially with the energy generation story.

The eye becomes a bigger piece of this and we generate more profit per megawatt hour consumed.

We will start getting.

More attention from people.

And I think youll start seeing.

People are realizing the benefit of what we're doing in our model.

We will get more credit for that.

Yes, Randy just to have prevented the power capacity that we have secured for these transactions that puts us at the forefront and here's where the actual value fluids.

Far more energy. Um, that is low cost that we can then allocate between Bitcoin mining or AI. Um, you know, you have to kind of think of us as, you know, we are going to own lots of electrons and we're going to put those electrons to best possible. Use in regards to oredein, um, oredein, uh, more recent Hydro model uh, which competes very well with, uh, the bit Main and, and other vendors models, um, is doing well. Uh, we're deploying ordine in our Fleet. Um,

Mining option value between AI ready assets, our operational flexibility with integrated power.

We're not deploying exclusively Orion at this point. Um, you know, there are still different machines have different characteristics, that are really good for different environments and we have a lot of different environments.

What's going to drive value for our stockholders from a long term perspective.

Perfect. Thank you guys congrats on the quarter.

Thank you.

Thanks, Rajeev, we appreciate it most of the questions that we've received from our retail shareholders have been answered. We're obviously running short on time, but thanks, everyone for joining US today do you have any questions that were not answered during today's call. Please feel free to contact our investor relations team at IR at <unk> Dot com, thanks, very much and enjoy the rest of the day.

Where, uh, you know, the the utility wants to regulate your curtailment, um, and you know, shut you off and turn you on, um, that requires special capabilities in the minors and that's something that exists um, in the Ardine systems.

and so as more and more utilities start, uh, looking for those capabilities amongst miners, who are on grid

um, I think, you know, they will continue to gain some market share their

um other than that they have spun out some very interesting AI related businesses 1 or Escape, which is around securing large language, models sorry which recently had

a lot of positive, uh,

um, reviews at the RSA show, uh, earlier this year. And then also, um, scale up, which is a startup around Ultra high-speed cluster, interconnect, uh, switch technology. So, uh, you know, that has been a great investment for us and um, you know, we continue to look for Investments like that where we can acquire or build technologies that can become part of our Solutions over time.

I guess last 1 for me, uh, we kind of talked about it earlier, but, you know, obviously, a lot of market cap. A lot of value has been created in the, uh, Bitcoin mining space, amongst the public trading guys. Um, I'd argue that you guys haven't received your, or gotten your, your share of that. Like what, uh, what do you think the market is missing? Um, and hopefully, we'll come to appreciate

And the uh in the in the near term for medium term.

So I think, yeah, I mean, I I think that the key for us is, um, you know, the floor on the valuation of our stock is essentially the value of our Bitcoin Holdings and people don't put a lot of value on the Bitcoin, mining infrastructure, or the Bitcoin mining business per se. Um, and I think as our business continues to evolve, especially with the energy generation story, um, and they I becomes a bigger piece of this and we generate more profit per megawatt hour consumed. Um, you know, we'll start getting, um,

more attention from people.

Um, and I think you'll start seeing, uh,

People realizing really the benefit of what we're doing in our model and uh we'll get more credit for that.

Yeah Reggie just to add to that the power capacity that we have secured through these transactions that puts us at the Forefront and here's where the actual value flows with uh Bitcoin mining option value between AI ready assets are operational flexibility with integrated power? That's that's what's going to drive value. For our stockholders from a long-term perspective.

Perfect. Thank you guys. Congrats on the quarter.

Thank you.

Thank you.

Thanks, Reggie, we appreciate it. Uh, most of the questions that we received from our retail shareholders have been answered. We're obviously running short on time but thanks everyone for joining us today. If you have any questions that were not answered during today's call, please feel free to contact our investor relations team at ir.com. Thanks very much and enjoy the rest of the day.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference, please disconnect your lines and have a wonderful day.