Applied Digital Corp (APLD) 2023 Q3 法說會逐字稿

Good morning, and welcome to Applied Digital's Third Quarter -- Third Fiscal Quarter 2023 Conference Call. My name is Melissa, and I will be your operator today. Before the call, Applied Digital issued its financial results for the third quarter of fiscal 2023 ended February 28, 2023, in a press release, a copy of which will be furnished and report on Form 8-K filed with the SEC and will be available on the Investor Relations section of the company's website. Joining us on today's call are Applied Digital's Chairman and CEO, Wes Cummins; and CFO, David Rench. Following their remarks, we will open the call for questions. Before we begin, Alex Kovtun from Gateway Group will make a brief introductory statement. Mr. Kovtun, please go ahead.

早上好，歡迎來到 Applied Digital 的第三季度——2023 財年第三季度電話會議。我叫梅麗莎，今天我將是你的接線員。在電話會議之前，Applied Digital 在一份新聞稿中發布了其截至 2023 年 2 月 28 日的 2023 財年第三季度的財務業績，將提供一份副本並在向美國證券交易委員會提交的 8-K 表格中報告，並將提供在公司網站的投資者關係部分。 Applied Digital 的董事長兼首席執行官 Wes Cummins 與我們一起參加了今天的電話會議；首席財務官 David Rench。在他們發言之後，我們將開始提問。在我們開始之前，來自 Gateway Group 的 Alex Kovtun 將做一個簡短的介紹性發言。 Kovtun 先生，請繼續。

Thank you, operator. Good morning, everyone, and welcome to Applied Digital's Fiscal Third Quarter 2023 Conference Call. Before management begins their formal remarks, we would like to remind everyone that some statements we're making today may be considered forward-looking statements under securities laws and involve a number of risks and uncertainties. As a result, we caution you that there are a number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward-looking statements. For more detailed risks, uncertainties and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the Securities and Exchange Commission.

謝謝你，運營商。大家早上好，歡迎參加 Applied Digital 2023 財年第三季度電話會議。在管理層開始正式發表評論之前，我們想提醒大家，我們今天所做的一些聲明可能被視為證券法規定的前瞻性聲明，並涉及許多風險和不確定性。因此，我們提醒您，有許多因素（其中許多是我們無法控制的）可能導致實際結果和事件與前瞻性陳述中描述的結果和事件存在重大差異。有關與我們的前瞻性陳述相關的更詳細的風險、不確定性和假設，請參閱我們的收益發布和向美國證券交易委員會提交的公開文件中的披露。

We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. We will also discuss non-GAAP financial metrics and encourage you to read our disclosures and the reconciliation tables to applicable GAAP measures in our earnings release carefully as you consider these metrics. We refer you to our filings with the Securities and Exchange Commission for detailed disclosures and descriptions of our business as well as uncertainties and other variable circumstances, including, but not limited to, risks and uncertainties identified under the caption, Risk Factors in our annual report on Form 10-K.

除非法律要求，否則我們不承擔更新前瞻性陳述以反映前瞻性陳述作出之日之後發生的情況或事件的任何義務或承諾。我們還將討論非 GAAP 財務指標，並鼓勵您在考慮這些指標時仔細閱讀我們的披露和我們收益發布中適用的 GAAP 指標的調節表。我們向您推薦我們向美國證券交易委員會提交的文件，以詳細披露和描述我們的業務以及不確定性和其他可變情況，包括但不限於我們年度報告中風險因素標題下確定的風險和不確定性在表格 10-K 上。

You may get Applied Digital's Securities and Exchange Commission filings for free by visiting the SEC website at www.sec.gov. I would also like to remind everyone that this call is being recorded and will be made available for replay via link available in the Investor Relations section of Apply Digital's website. Now I will turn the call over to Applied Digital Chairman and CEO, Wes Cummins. Wes?

您可以訪問 SEC 網站 www.sec.gov，免費獲得 Applied Digital 的證券交易委員會備案文件。我還想提醒大家，這個電話正在被錄音，並將通過 Apply Digital 網站投資者關係部分的鏈接重播。現在我將把電話轉給 Applied Digital 董事長兼首席執行官 Wes Cummins。韋斯？

Thanks, Alex. And good morning, everyone. Thank you for joining us for our fiscal third quarter 2023 conference call. I want to start by thanking our employees for their ongoing hard work, including our construction and operations team for getting through the winter and keeping our facilities operational and construction timeline reasonable. Before turning the call over to our CFO, David Rench, for a detailed review of our financial results, I'd like to touch on some updates from our business over the last quarter and why we remain excited about the future and in our ability to deliver long-term high-margin sustainable cash flow.

謝謝，亞歷克斯。大家早上好。感謝您加入我們的 2023 財年第三季度電話會議。首先，我要感謝我們的員工一直以來的辛勤工作，包括我們的施工和運營團隊度過了冬天，並保持我們的設施運營和施工時間表合理。在將電話轉給我們的首席財務官 David Rench 詳細審查我們的財務業績之前，我想談談我們上個季度業務的一些更新，以及為什麼我們對未來和我們的能力保持興奮提供長期高利潤的可持續現金流。

Let's start with an update on our 2 newest facilities, Ellendale and Garden City. We successfully completed energization of our 180 megawatt facility in Ellendale, North Dakota in early March. This marks the second facility that we energize within North Dakota following a successful 100-megawatt facility in Jamestown that was energized in 2020. Recall that we broke ground on Ellendale in September '22 and are now powering and operating the new site only 6 months after initial work (inaudible). This is a tremendous accomplishment given the harsh winter weather we experienced in North Dakota over the last several months, along with some construction delays.

讓我們從我們的 2 個最新設施 Ellendale 和 Garden City 的更新開始。 3 月初，我們在北達科他州埃倫代爾成功完成了 180 兆瓦設施的通電。這是繼 2020 年在詹姆斯敦成功通電的 100 兆瓦設施之後，我們在北達科他州啟動的第二個設施。回想一下，我們於 2022 年 9 月在 Ellendale 破土動工，現在僅在 6 個月後為新站點供電和運營初步工作（聽不清）。鑑於過去幾個月我們在北達科他州經歷的嚴冬天氣以及一些施工延誤，這是一項巨大的成就。

We continue to ramp up our capacity and anticipate the first half of capacity will be turned on by the end of April and the rest to be turned on by the end of June. The facility is fully contracted by Marathon for 5 years with a flat rate agreement and our agreement begins upon energization. Once fully energized, this location will bring Applied Digital to 280 megawatts of hosting capacity across all our facilities in North Dakota, all of which are contracted out to customers on multiyear terms. In addition to Ellendale, we're making great progress on our 200-megawatt Garden City facility in Texas.

我們繼續提高產能，預計上半年產能將在 4 月底開啟，其餘產能將在 6 月底開啟。該設施由 Marathon 簽訂了為期 5 年的統一費率協議，我們的協議在通電後開始。一旦完全通電，該地點將使 Applied Digital 在我們位於北達科他州的所有設施中的託管容量達到 280 兆瓦，所有這些設施均按多年期合同外包給客戶。除了 Ellendale，我們在德克薩斯州的 200 兆瓦花園城市設施也取得了巨大進展。

The construction of Garden City is complete and over 130 megawatts of miners are installed and ready to turn on. Our customers are continuing to send miners to the facility, and we are actively installing them. Given the unique behind-the-meter aspect of this facility, we are awaiting final approval on some final technical details and expect to resolve these issues in the coming weeks to begin energizing the facility. Once we energize our Garden City facility, we anticipate it ramping faster than our Ellendale facility due to the amount of miners already installed. As a reminder, both our, Ellendale and Garden City, facilities are fully contracted with fixed prices, and we are not exposed to any volatility in the crypto currency markets.

花園城市的建設已經完成，超過 130 兆瓦的礦機已安裝並準備開啟。我們的客戶繼續將礦機送到該設施，我們正在積極安裝它們。鑑於該設施的獨特之處，我們正在等待對一些最終技術細節的最終批准，並希望在未來幾週內解決這些問題以開始為該設施供電。一旦我們為 Garden City 設施通電，由於已經安裝的礦機數量，我們預計它的增長速度會比我們的 Ellendale 設施更快。提醒一下，我們的 Ellendale 和 Garden City 的設施都以固定價格完全簽訂合同，我們不會受到加密貨幣市場任何波動的影響。

Our 100-megawatt Jamestown facility continues to perform as expected and operated at full capacity throughout the quarter as we delivered revenue of $14.1 million in the quarter, exceeding the [12 million] steady-state capabilities of the facility that we previously discussed. As mentioned on our last call, we successfully retrofitted a small portion of our existing facility in Jamestown to accommodate HPC requirements to support a Web3 application with a non-crypto customer. We have decided rather than to use the GPU capacity for the Web3 application. It would be better used for machine learning and AI applications and have onboarded multiple customers and recognized our first HPC revenue in the quarter.

我們的 100 兆瓦 Jamestown 設施在整個季度繼續按預期運行並滿負荷運行，因為我們在本季度交付了 1410 萬美元的收入，超過了我們之前討論的設施的 [1200 萬] 穩態能力。正如我們在上次電話會議中提到的，我們成功地改造了我們在詹姆斯敦的一小部分現有設施，以滿足 HPC 要求，以支持非加密客戶的 Web3 應用程序。我們決定不為 Web3 應用程序使用 GPU 容量。它將更好地用於機器學習和 AI 應用程序，並吸引了多個客戶，並在本季度確認了我們的第一筆 HPC 收入。

We also broke ground on a 5-megawatt stand-alone facility adjacent to our Jamestown site in December that will [post] several hundred graphics processing units for a machine learning application with a new customer. Our first GPUs in the new facility are expected to be operational later this month or early May. The build-out will be completed in 2 additional stages with the first scheduled to come online this summer and the second later in the year. When finalized, we expect to have over 7,000 NVIDIA A100 class GPUs in the building, making it one of the largest GPU clusters of its kind in the world.

12 月，我們還在 Jamestown 站點附近的 5 兆瓦獨立設施破土動工，該設施將為新客戶的機器學習應用程序 [發布] 數百個圖形處理單元。我們在新設施中的第一批 GPU 預計將於本月晚些時候或五月初投入使用。擴建將分兩個階段完成，第一階段計劃於今年夏天上線，第二階段計劃於今年晚些時候上線。最終確定後，我們預計大樓中將擁有超過 7,000 個 NVIDIA A100 級 GPU，使其成為世界上同類中最大的 GPU 集群之一。

Importantly, it's worth noting that demand for hosting capacity across our facilities has not been impacted during the last several months, and we're exploring numerous opportunities. Now let's discuss the HPC opportunity in front of us and why we're excited about the year ahead. While we continue to see robust demand from cryptocurrency miners, we aim to diversify our customer base and exposure to the growing segments of the HPC market as we believe that will be the highest return of capital in the long term for our shareholders. Our goal remains to get at least 10% of our revenue from HPC by the end of this calendar year and ultimately diversify our revenue to a 50-50 split by 2025.

重要的是，值得注意的是，在過去幾個月中，我們設施對託管容量的需求並未受到影響，我們正在探索眾多機會。現在讓我們討論一下擺在我們面前的 HPC 機會，以及為什麼我們對來年感到興奮。雖然我們繼續看到加密貨幣礦工的強勁需求，但我們的目標是使我們的客戶群多樣化，並接觸到 HPC 市場不斷增長的部分，因為我們相信這將是我們股東的長期資本回報率最高的。我們的目標仍然是到本日曆年年底從 HPC 獲得至少 10% 的收入，並最終到 2025 年將我們的收入分散到 50-50。

We remain optimistic about the growth opportunities in HPC, while -- which is expected to reach $900 billion globally by 2030 and remain well positioned to capitalize on this opportunity. As data continues to grow at an exponential rate, more data centers are required -- will be required to store the data. And we believe our next generation facilities are ideal hosting sites for HPC applications as they can accommodate the unique demands for this growing industry. Our data centers offer a more purpose-built solution, offering lower costs combined with higher computing power compared to traditional data centers that are typically focused on delivering low latency and high computing power.

我們對 HPC 的增長機會保持樂觀，同時 - 預計到 2030 年全球範圍內將達到 9000 億美元，並且仍然有能力利用這一機會。隨著數據繼續以指數速度增長，需要更多的數據中心——將需要更多的數據中心來存儲數據。我們相信我們的下一代設施是 HPC 應用程序的理想託管站點，因為它們可以滿足這個不斷發展的行業的獨特需求。與通常側重於提供低延遲和高計算能力的傳統數據中心相比，我們的數據中心提供了一個更加專用的解決方案，提供更低的成本和更高的計算能力。

We are well positioned for success in this space given our expertise in hosting Bitcoin mining and realize that HPC applications require a different type of engineering that more resembles what you would see in the ASIC world of Bitcoin mining because of its dense power. The density of our (inaudible) is a key point as HPC applications require a different setup that provides sufficient power and cooling to handle those unique needs and properly scale efficiently. These applications don't require ultra-low latency, and so we believe that the deciding factor on whether these applications will be hosted comes down to the cost of compute. Our next-generation data centers are optimized for green computing. And we aim to be the lowest cost compute provider with our access to renewable energy and air cooling.

鑑於我們在託管比特幣挖礦方面的專業知識，我們在這一領域處於成功的有利位置，並且意識到 HPC 應用程序需要一種不同類型的工程，這種工程更類似於您在比特幣挖礦的 ASIC 世界中看到的，因為它具有強大的功能。我們（聽不清）的密度是一個關鍵點，因為 HPC 應用程序需要不同的設置來提供足夠的電力和冷卻來處理這些獨特的需求並適當地有效擴展。這些應用程序不需要超低延遲，因此我們認為是否託管這些應用程序的決定因素歸結為計算成本。我們的下一代數據中心針對綠色計算進行了優化。我們的目標是通過使用可再生能源和空氣冷卻成為成本最低的計算供應商。

To close, we remain confident that Applied Digital will continue to be a leader in digital infrastructure with our next-generation data centers. Demand for our services from both, traditional customers and emerging HPC applications, remains robust which validates our position as a financially strong and leading digital infrastructure provider to serve various hosting needs. With that update, I'll pass it over to our CFO, David Rench for a financial update.

最後，我們仍然相信 Applied Digital 將憑藉我們的下一代數據中心繼續成為數字基礎設施領域的領導者。傳統客戶和新興 HPC 應用程序對我們服務的需求依然強勁，這證實了我們作為財力雄厚且領先的數字基礎設施提供商的地位，可以滿足各種託管需求。通過該更新，我會將其傳遞給我們的首席財務官 David Rench 以進行財務更新。

Thanks, Wes, and good morning, everyone. Before I begin my remarks, I would like to note that like last quarter's call, since we did not have operations in a year ago comparable period, we will not be providing in a year-over-year comparison. Revenues in the fiscal third quarter were $14.1 million, which were entirely attributable to our hosting operations. The Jamestown site operated at full capacity throughout the quarter. Cost of revenues in the fiscal third quarter were $10.5 million, consisting of $8.6 million of energy cost to generate our hosting revenues, $900,000 of depreciation and amortization expense and $1 million of personnel expense for employees directly working on our Jamestown hosting facility.

謝謝，韋斯，大家早上好。在我開始發言之前，我想指出，就像上一季度的電話會議一樣，由於我們在一年前的可比期間沒有運營，因此我們不會提供同比比較。第三財季的收入為 1410 萬美元，這完全歸因於我們的託管業務。詹姆斯敦工廠在整個季度都滿負荷運轉。第三財季的收入成本為 1050 萬美元，其中包括產生託管收入的 860 萬美元能源成本、900,000 美元的折舊和攤銷費用以及直接在詹姆斯敦託管設施工作的員工的 100 萬美元人事費用。

Adjusted gross profit, a non-GAAP measure that excludes depreciation embedded in the cost of revenues and onetime electricity charges was $4.4 million or 31% of revenue for the fiscal third quarter of 2023. Operating expenses for the fiscal third quarter of 2023 were $10.5 million, which included $4.5 million of stock-based compensation, $3.9 million in other selling, general and administrative costs and $1.1 million in depreciation and amortization expenses. Net loss attributable to Applied Digital for the fiscal third quarter of 2023 was a loss of $7 million or a loss of $0.08 per basic and diluted share based on a weighted average share count during the quarter of approximately 94.1 million.

調整後的毛利潤是一項非公認會計原則衡量指標，不包括收入成本中的折舊和一次性電費，為 440 萬美元，佔 2023 財年第三季度收入的 31%。2023 財年第三季度的運營費用為 1050 萬美元，其中包括 450 萬美元的股票薪酬、390 萬美元的其他銷售、一般和管理費用以及 110 萬美元的折舊和攤銷費用。根據本季度約 9410 萬股的加權平均股數，2023 財年第三季度歸屬於 Applied Digital 的淨虧損為虧損 700 萬美元或每股基本和稀釋後每股虧損 0.08 美元。

Adjusted net loss attributable to Applied Digital for the fiscal third quarter of 2023 was a loss of $7 million or a loss of $0.08 per basic and diluted share based on a weighted average share count during the quarter of approximately 94.1 million. Adjusted net loss attributable to Applied Digital, a non-GAAP measure for the fiscal third quarter of 2023 was a loss of $1.4 million or a loss of $0.01 per basic and diluted share based on a weighted average share count during the quarter of approximately $94.1 million. Adjusted EBITDA, a non-GAAP measure for the fiscal third quarter of 2023 was $900,000.

根據本季度約 9410 萬股的加權平均股數，2023 年第三財季歸屬於 Applied Digital 的調整後淨虧損為虧損 700 萬美元，或每股基本股和攤薄股虧損 0.08 美元。 Applied Digital 的調整後淨虧損是 2023 年第三財季的一項非公認會計準則衡量標準，為虧損 140 萬美元，或者根據本季度約 9,410 萬美元的加權平均股數計算，每股基本和攤薄股份虧損 0.01 美元.調整後的 EBITDA 是 2023 財年第三季度的非公認會計原則衡量指標，為 900,000 美元。

Lastly, on our balance sheet, we ended the fiscal third quarter of 2023 with $22.9 million in cash and cash equivalents and $23.7 million in debt. During the third fiscal quarter of 2023, we received $11.7 million in net customer deposits and $32.3 million in net deferred revenue, which collectively amounted to a $44 million net cash inflow due to the structure of our commercial arrangements with our customers that incorporate upfront deposits and prepayments. In certain contracts, the prepayments are amortized back to the customers for the first year of their contract with no impact to revenue recognition, but the timing of cash flow with upfront cash to us is a major benefit for the company and that it helps with our CapEx funding needs as we build our data centers.

最後，在我們的資產負債表上，我們在 2023 年第三財季結束時擁有 2290 萬美元的現金和現金等價物以及 2370 萬美元的債務。在 2023 年第三財季，我們收到了 1170 萬美元的淨客戶存款和 3230 萬美元的淨遞延收入，由於我們與客戶的商業安排結構包括預付款和預付款項。在某些合同中，預付款會在合同的第一年攤銷給客戶，這對收入確認沒有影響，但預付現金給我們的現金流的時間安排對公司來說是一個主要好處，它有助於我們我們建設數據中心時需要資本支出資金。

Our balance sheet remains strong, and we have no exposure to Celsius Network First Republic Bank, STX, Signature Bank, Silicon Valley Bank or Silvergate Capital Corporation. Now turning to guidance. Similar to last quarter, we will not be providing explicit guidance for the forward quarter, given the revenue materiality of our Garden City potentially coming online and the continued ramp of the Ellendale facility that should occur in the fiscal fourth quarter. Once both facilities are online, we will have nearly 500 megawatts of hosting capacity that we expect to put us in an annualized adjusted EBITDA run rate of approximately $100 million. That completes my financial summary. Now I'll turn the call over to Wes for closing remarks.

我們的資產負債表依然強勁，我們沒有接觸 Celsius Network First Republic Bank、STX、Signature Bank、Silicon Valley Bank 或 Silvergate Capital Corporation。現在轉向指導。與上一季度類似，考慮到我們花園城市的收入實質性可能上線以及 Ellendale 設施的持續增長應該在第四財季發生，我們將不會為前一季度提供明確的指導。一旦這兩個設施都在線，我們將擁有近 500 兆瓦的託管容量，我們預計這將使我們的年化調整後 EBITDA 運行率達到約 1 億美元。這完成了我的財務摘要。現在我將把電話轉給 Wes 作結束語。

Thank you, David. I want to add a little more detail around our expectations for the current quarter. While we expect Garden City to energize during the quarter, if we exclude it completely and look at our expected ramp of Ellendale, we expect to generate approximately $24 million of revenue and approximately $4 million of EBITDA. Before we get to Q&A, I would like to quickly go over some key goals and initiatives for our company as we look to the future of Applied Digital. We remain focused on operating our Jamestown facility of high efficiency and look forward to energizing our Garden City facility and continuing to make progress at Ellendale -- at our Ellendale facility in the near term.

謝謝你，大衛。我想圍繞我們對當前季度的預期添加更多細節。雖然我們預計 Garden City 在本季度充滿活力，但如果我們將其完全排除並查看我們預期的 Ellendale 增長，我們預計將產生約 2400 萬美元的收入和約 400 萬美元的 EBITDA。在我們進行問答之前，我想快速回顧一下我們公司在展望 Applied Digital 的未來時的一些關鍵目標和計劃。我們仍然專注於高效運營我們的 Jamestown 設施，並期待為我們的花園城市設施注入活力，並在近期內在我們的 Ellendale 設施中繼續在 Ellendale 取得進展。

We will also continue to build out our non-crypto use cases to demonstrate the broad capabilities of our next-generation data center assets for HPC applications. So while the crypto industry remains volatile, we are well positioned to capitalize on strong demand for both, crypto and non-crypto, customers for our services. I remain optimistic about our future and I want to thank all of our team members for their dedication and service to apply digital. With that, operator, let's open up the call for questions.

我們還將繼續構建我們的非加密用例，以展示我們用於 HPC 應用程序的下一代數據中心資產的廣泛功能。因此，儘管加密行業仍然不穩定，但我們有能力利用對加密和非加密客戶對我們服務的強勁需求。我對我們的未來保持樂觀，我要感謝我們所有的團隊成員為應用數字化所做的奉獻和服務。有了這個，接線員，讓我們打開問題電話。

(Operator Instructions) Our first question comes from the line of Lucas Pipes with B. Riley Securities.

（操作員說明）我們的第一個問題來自 B. Riley Securities 的 Lucas Pipes 系列。

Congrats on the progress at Ellendale. And I do want to ask about Garden City. You mentioned an expectation that it could come online in the coming weeks. And I wondered if you could touch on the level of confidence on that -- for that statement. And in terms of a faster pace of energization, which was also mentioned in the prepared remarks, is the ability to quantify the cadence of the ramp once you have those final metering issues resolved?

祝賀 Ellendale 取得的進步。我確實想問一下花園城。你提到了它可以在未來幾週內上線的期望。我想知道你是否可以談一談對這一聲明的信心程度。在準備好的評論中也提到了更快的通電速度，一旦你解決了這些最終的計量問題，是否能夠量化斜坡的節奏？

Yes. Thanks, Lucas. This is Wes. Let me try to explain the specific issue -- the primary issue that we're dealing with. And it is an issue with behind-the-meter installation. We're not unique right now in Texas. And there's several large projects turning on or trying to turn on. And I think we might be the only Bitcoin mining project of its kind. So there are several other kind of projects that are turning on. The issue is the way they settle on metering and the visibility they want into the power gen plus the grid energy. And there's an issue with double settlement or being double counted.

是的。謝謝，盧卡斯。這是韋斯。讓我試著解釋一下具體問題——我們正在處理的主要問題。這是儀表後安裝的問題。我們現在在德克薩斯州並不是獨一無二的。並且有幾個大型項目正在啟動或試圖啟動。而且我認為我們可能是同類中唯一的比特幣挖礦項目。因此，還有其他幾種項目正在啟動。問題在於他們決定計量的方式以及他們想要了解發電和電網能量的方式。並且存在雙重結算或重複計算的問題。

There's not -- I'd say there wasn't really a framework for this in ERCOT, and we are dealing with it mostly on the Encore side, from a metering perspective. ERCOT had a meeting last week where they had a rule change that should solve this issue. So now it's back in the hands of Encore. We think that issue is solved, but they typically seem to move very slow. So while it wouldn't be -- didn't happen the next day, we expect some really meaningful progress on finalizing this. There's just my opinion, some very simple solutions for it, but it just has had to go through the process, and it feels like the process is now largely complete.

沒有——我想說在 ERCOT 中並沒有真正的框架，我們主要在 Encore 方面處理它，從計量的角度來看。 ERCOT 上週召開了一次會議，他們更改了規則以解決此問題。所以現在它又回到了 Encore 的手中。我們認為這個問題已經解決，但他們通常似乎進展得很慢。因此，雖然它不會 - 第二天沒有發生，但我們希望在最終確定方面取得一些真正有意義的進展。這只是我的意見，一些非常簡單的解決方案，但它必須經歷這個過程，感覺這個過程現在已經基本完成了。

With the rule change with ERCOT, it should solve the issue with Encore, not just for us, but for several different people. And so we expect this to move forward in the very near term. So hopefully, that makes sense. As far as the pace of energizing, so recall Ellendale, this is as we build, we're energizing. The buildings will go up much faster now, so we had all the concrete forward. We're finalizing the buildings, all of them get worked on in stages. But now it's just turning on each building as it's completed, as the miners are racked and as they're available to turn on.

隨著 ERCOT 規則的改變，它應該可以解決 Encore 的問題，不僅對我們，而且對幾個不同的人。因此，我們預計這將在近期內取得進展。所以希望這是有道理的。就充滿活力的步伐而言，請回想一下 Ellendale，這就是我們的建設，我們正在充滿活力。建築物現在會建得更快，所以我們把所有的混凝土都向前推進了。我們正在完成建築物的定稿，所有建築物都分階段進行。但現在它只是在每棟建築完工時開啟，因為礦工們都被折磨得焦頭爛額，而且他們可以開啟。

So that's much more like we did in Jamestown, but because we originally expected Garden City to energize much earlier, the construction is complete. The large majority of the miners are already racked. So we're not doing it in those types of stages as we've done in North Dakota. So when we have the final approval when we're ready to turn on, all of these buildings are ready to turn on. So you could see these come up in just a week or two. It still takes a little bit of effort on each building, but they're already in place and ready to go. That's why we would expect that to ramp up significantly faster than we're seeing in Ellendale or that we saw in Jamestown last year.

所以這更像是我們在詹姆斯敦所做的，但因為我們最初預計花園城市會更早地通電，所以建設已經完成。絕大多數礦工已經筋疲力盡。所以我們沒有像在北達科他州那樣在那些類型的階段中這樣做。因此，當我們準備好開啟時獲得最終批准，所有這些建築物都已準備好開啟。所以你可以在一兩週內看到這些出現。每棟建築仍然需要一點點努力，但它們已經就位並準備就緒。這就是為什麼我們預計它的增長速度會比我們在 Ellendale 或去年在 Jamestown 看到的要快得多。

That's very helpful. And for my second question, I do want to turn to HPC. And could you share some light on what an anchor agreement could look like in terms of revenue, unit economics, term duration? And then what would be the capital -- potential capital requirements for a large HPC kind of anchor tenant?

這很有幫助。對於我的第二個問題，我確實想求助於 HPC。您能否分享一些關於錨定協議在收入、單位經濟效益和期限方面的情況？那麼資本是多少——大型 HPC 類型的主要租戶的潛在資本要求是多少？

Sure, sure. So there's a couple of different models that we're exploring with HPC. So there's a model where the first ones that we are running in our -- in what we call the HPC closet, it's the retrofitted portion of one of the mining buildings. We own those GPUs. We rent the capacity out. I think we mentioned we've got 3 customers live on those, doing mostly machine learning, deep learning applications. And it's been going really well. If you recall, we have a software partner that is helping us with that on the front end that loads on to the system. So that's gone very well.

一定一定。因此，我們正在使用 HPC 探索幾種不同的模型。所以有一個模型，我們在我們的第一個模型中運行 - 在我們稱之為 HPC 壁櫥的地方，它是其中一個採礦建築的改造部分。我們擁有這些 GPU。我們出租容量。我想我們提到過我們有 3 個客戶在使用這些客戶，他們主要從事機器學習、深度學習應用程序。而且一切進展順利。如果您還記得的話，我們有一個軟件合作夥伴正在幫助我們加載到系統的前端。所以一切進展順利。

As we move into the pilot phase of the new building, so it will be around 300 GPUs that will ramp up. Those will also be owned by us. And so we'll have customers, we have customers that are booked for those GPUs as well. And then the rest of the building can go in 1 of 2 ways. So there's a potential for us to do just co-location on those areas. And then if you think about co-location, a good areas, we've gotten kind of put a finer point on this. A good way to think about this is on a per megawatt basis, and I'm just comping that to what we do with the Bitcoin mining, because that's what we've done so far. You should expect more in the 10 to 12x revenue versus per megawatt versus the Bitcoin hosting for the HPC applications and similar lift in EBITDA, maybe even slightly higher, maybe a little bit better margin on the EBITDA front from an HPC co-location.

隨著我們進入新大樓的試驗階段，將增加大約 300 個 GPU。這些也將歸我們所有。所以我們會有客戶，我們也有為這些 GPU 預訂的客戶。然後建築物的其餘部分可以採用兩種方式之一。因此，我們有可能在這些區域進行託管。然後，如果您考慮協同定位，一個很好的領域，我們已經在這方面提出了一個更好的觀點。以每兆瓦為基礎來考慮這個問題的一個好方法，我只是將其與我們對比特幣挖礦所做的比較，因為這是我們迄今為止所做的。你應該期待更多的 10 到 12 倍的收入與每兆瓦比比特幣託管的 HPC 應用程序和類似的 EBITDA 提升，甚至可能略高，也許 HPC 託管在 EBITDA 方面的利潤率更好一點。

If we move forward with owning GPUs, if that is what we land with a customer, it's a significant step-up again as far as revenue and EBITDA. But if we own the GPUs in the entire facility and we booked those out, and we would only do that if we had the right style of customer to do that and a very large solid counterparty to do that. That building would generate well north of $100 million of revenue and upwards of $50 million or $60 million of EBITDA. So we're still working through how -- what the business model, I think it will be a little bit split there. But right now, we're fully funded on our balance sheet now.

如果我們繼續擁有 GPU，如果這是我們與客戶達成的目標，那麼就收入和 EBITDA 而言，這將再次取得重大進展。但是，如果我們在整個設施中擁有 GPU 並且我們將它們預訂出去，並且只有在我們擁有合適的客戶風格和非常強大的可靠交易對手來做到這一點的情況下，我們才會這樣做。該建築將產生超過 1 億美元的收入和超過 5000 萬或 6000 萬美元的 EBITDA。所以我們仍在研究如何 - 什麼樣的商業模式，我認為它會在那裡有點分裂。但現在，我們的資產負債表上的資金已經全部到位。

We saw where the quarter ended the cash. As of yesterday, the company had about $41 million of cash, so actually a significant step up, but that was the debt facility that went in place post the close of the quarter on the Ellendale facility that boosted that. But we're fully funded to build the building and to put the GPUs that we plan to put inside the building currently. And we're working on financing if we're going to move forward with owning more of the GPUs. But I think when you think about a longer-term model here, you should really think about a co-location model is what we're chasing and then blend it in with some GPU ownership when necessary.

我們看到了本季度結束現金的地方。截至昨天，該公司擁有約 4100 萬美元的現金，因此實際上是一個重大進步，但這是在本季度結束後在 Ellendale 設施上實施的債務安排，推動了這一增長。但我們有足夠的資金來建造這座大樓，並將我們目前計劃放入大樓的 GPU 放入其中。如果我們要繼續擁有更多 GPU，我們正在努力融資。但我認為，當你在這裡考慮一個長期模型時，你真的應該考慮我們正在追求的託管模型，然後在必要時將其與一些 GPU 所有權融合在一起。

Very, very helpful. The $100 million revenue, what size of building would that be, megawatt wise?

非常非常有幫助。 1 億美元的收入，這將是多大的建築，兆瓦明智？

Yes. That's just the current build, the 5 megawatts, if we owned all the GPUs and did a leasing business, more of an integrated model like what you would see with an AWS, it would be -- I said $100 million, it would be well north of $100 million.

是的。這只是當前的構建，5 兆瓦，如果我們擁有所有 GPU 並開展租賃業務，更多的是像您在 AWS 上看到的那樣的集成模型，那將是——我說 1 億美元，這很好超過 1 億美元。

Our next question comes from the line of Rob Brown with Lake Street Capital.

我們的下一個問題來自 Rob Brown 與 Lake Street Capital 的對話。

Just wanted to get a little more color on the Jamestown facility. I think you said you had $14 million in revenue above its sort of (inaudible) capacity. What drove that? And do you see that continuing?

只是想在詹姆斯敦設施上獲得更多色彩。我想你說過你有 1400 萬美元的收入超過其（聽不清）的能力。是什麼驅使它？你看到這種情況還在繼續嗎？

Yes. Rob, thanks for the question. So just higher efficiency in the quarter for us was part of it. There was a little bit of a price lift. We do have the ability to increase price somewhat on our customers because we do have -- I think we've talked about this before. Last quarter, you saw a lower gross margin for us, and it's kind of the lagging effect of energy prices move around of some of that facility, and then we do pricing changes for our customers, but it's lagging.

是的。羅伯，謝謝你的提問。因此，本季度我們的效率更高是其中的一部分。價格略有上漲。我們確實有能力為我們的客戶提高價格，因為我們確實有——我想我們之前已經討論過這個問題。上個季度，你看到我們的毛利率較低，這是能源價格在某些設施周圍移動的滯後效應，然後我們為客戶進行定價調整，但它是滯後的。

And so we catch up with the pricing change. And then so you could see that go -- fluctuate up and down. We are turning on a little bit more. So we have about 6 megawatts of marathon containers at that facility that we expect to turn on any day that will boost the operations there a little bit. But I think that kind of that level that somewhere in the $13 million to -- on the upper bound, maybe $15 million or $16 million of revenue is reasonable on a quarterly basis from Jamestown.

所以我們趕上了價格變化。然後你可以看到它 - 上下波動。我們正在打開更多一點。因此，我們在該設施中擁有大約 6 兆瓦的馬拉鬆容器，我們希望在任何一天打開這些容器，這將稍微促進那裡的運營。但我認為這種水平在 1300 萬美元到 - 在上限上，詹姆斯敦每季度的收入可能是 1500 萬美元或 1600 萬美元是合理的。

Okay. Great. And then I just wanted to get a little bit into the cash flow of the customer prepayments and deferred revenue. You said it would happen over 12 months, but how long does it take to sort of burn off that balance sheet prepayment and sort of normalize the cash flow on the -- against the EBITDA you're reporting?

好的。偉大的。然後我只想稍微了解一下客戶預付款和遞延收入的現金流。你說這會在 12 個月內發生，但是需要多長時間才能燒掉資產負債表的預付款並使現金流量正常化——與你報告的 EBITDA 相比？

Yes. So basically, from the customers when their contract turns on, when we energize that portion of the contract, we begin to amortize that prepayment back to them. And so we get -- it's 4 months. It's fairly simple. So it's 4 months of prepayments amortized back over 12 months. And then once we go through a full 12 months, that deferred revenue will be gone off the balance sheet. Obviously, from a P&L perspective, you get the deferred revenue and you still get the same earnings impact.

是的。所以基本上，當客戶的合同生效時，當我們激活合同的那部分時，我們開始將預付款分攤給他們。所以我們得到 - 這是 4 個月。這很簡單。因此，這是 4 個月的預付款分攤到 12 個月內。然後，一旦我們經歷了整整 12 個月，遞延收入就會從資產負債表上消失。顯然，從 P&L 的角度來看，您獲得了遞延收入，並且您仍然會受到相同的收益影響。

From a cash flow perspective, you should think about as we're hitting that $100 million run rate. For the first year of that run rate, the cash conversion from EBITDA to cash flow is going to be lower, but there still will be significant positive cash flow for the company as we amortize that back to the customers. And then when -- after you get through that year, the cash flow versus the EBITDA should move up more towards 80% or 90%.

從現金流的角度來看，當我們達到 1 億美元的運行率時，您應該考慮一下。對於該運行率的第一年，從 EBITDA 到現金流的現金轉換將會降低，但隨著我們將其攤銷回客戶，公司仍將有大量正現金流。然後——在你度過那一年之後，現金流與 EBITDA 的比值應該上升到 80% 或 90%。

Our next question comes from the line of George Sutton with Craig-Hallum Capital Group.

我們的下一個問題來自 George Sutton 與 Craig-Hallum Capital Group 的對話。

Wes, one thing I wanted to just clarify, because we had multiple clients concerned about the proposed permitting framework in Texas, the Texas legislature. You are well beyond that. The modest delay we have had, has nothing to do with that. Is that -- that is a correct statement?

韋斯，有一件事我想澄清一下，因為我們有多個客戶擔心德克薩斯州立法機構提議的許可框架。你遠遠不止於此。我們的適度延遲與此無關。那是——那是正確的陳述嗎？

Yes, that's correct. And that's -- so there's a couple of things going there, George, and it's new, some of the stuff we just yesterday that we don't think -- so from that site specifically, so we're beyond that portion. And then also from -- on that side, specifically, you're talking about the grid balancing or the demand response benefits in the legislature now. And our -- the setup of that site, it is not an area where we -- it's not where we take advantage of those programs in Texas to reach the price on energy that we're contracting there. So we don't believe it has any impact on us.

對，那是正確的。那就是 - 所以那裡有一些東西，喬治，它是新的，一些我們昨天才想到的東西 - 所以特別是從那個網站，所以我們超越了那部分。然後 - 在那邊，具體來說，你現在正在談論立法機關的電網平衡或需求響應利益。而我們 - 該網站的設置，它不是我們 - 它不是我們利用德克薩斯州的這些項目來達到我們在那裡承包的能源價格的地方。所以我們不認為它對我們有任何影響。

Got you. Great. And then on the use cases for the HPC, I want to make sure I fully understood when we talk machine learning versus what I was viewing as large language models. I just want to make sure, have we seen somewhat of a use case change as we look to deploy in new customers?

明白了偉大的。然後關於 HPC 的用例，我想確保我完全理解我們談論機器學習與我所看到的大型語言模型時的區別。我只是想確定一下，當我們希望在新客戶中部署時，我們是否看到了一些用例變化？

No. No. The large language models are falling in that machine learning category. So it's training model. When I say machine learning, it's training the model, if you want to call it AI or machine learning, but the applications that are running now include the what we call natural language processing.

不，不。大型語言模型屬於機器學習類別。所以這是訓練模型。當我說機器學習時，它是在訓練模型，如果你想稱之為人工智能或機器學習，但現在運行的應用程序包括我們所說的自然語言處理。

Our next question comes from the line of John Todaro with Needham & Company.

我們的下一個問題來自 John Todaro 與 Needham & Company 的合作。

Two questions here. First, on the Bitcoin mining piece. Can you just remind us of -- for at least your major mining contracts, when those are up for renewal? And then any expectations you have with the -- having coming up in Q1 '24, which should raise those miners' costs (inaudible)?

這裡有兩個問題。首先，在比特幣挖礦方面。您能否提醒我們——至少對於您的主要採礦合同，何時需要續簽？然後你有什麼期望 - 在 24 年第一季度出現，這應該會增加這些礦工的成本（聽不清）？

Yes. So the contracts are -- the vast majority is contracted under 5-year contracts that are effectively just starting as we energize Ellendale. In Jamestown, I think -- I don't know off the top of my head, the exact contract life remaining, but it's probably in the 2.5-year timeframe. And so that's the majority of our contracts. And then on the having -- yes, the halving event, I mean, it's pretty simple to think through that. We think our current customers, I think we run a really efficient operation and our current customers are very profitable at the current Bitcoin price and significantly below the Bitcoin price when you think about just about variable costs. But effectively, the costs will increase double at the halving event.

是的。所以合同是 - 絕大多數是根據 5 年期合同簽訂的，這些合同實際上是在我們為 Ellendale 注入活力時才開始的。在 Jamestown，我想——我不清楚我的頭腦，確切的剩餘合同期限，但它可能在 2.5 年的時間範圍內。這就是我們的大部分合同。然後是——是的，減半事件，我的意思是，想通這一點非常簡單。我們認為我們當前的客戶，我認為我們的運營非常高效，並且當您考慮可變成本時，我們當前的客戶在當前比特幣價格下非常有利可圖，並且遠低於比特幣價格。但實際上，成本將在減半事件中增加一倍。

So it really depends on 2 things. It's the price of Bitcoin and then the network cash rate. And John, the thing about Bitcoin over the life that it has is generally, there's a self-correcting mechanism in the network of hash rate versus price that allows miners to stay profitable. There will be periods of time where they won't be. But at the end of the day, you're looking for the most efficient guys. I think they are the ones who will stay online post the halving. We're running only S19 Pro. And the majority of what we're turning on now and will be in our current -- the new facilities are all XTs. So running all the latest model, mining equipment. And so we think that we and our customers are well positioned for that.

所以這真的取決於兩件事。這是比特幣的價格，然後是網絡現金利率。約翰，比特幣在其整個生命週期中的特點是，在哈希率與價格的網絡中有一種自我糾正機制，可以讓礦工保持盈利。會有一段時間他們不會。但歸根結底，您正在尋找最有效率的人。我認為他們將在減半後繼續在線。我們只運行 S19 Pro。我們現在和將要開啟的大部分內容——新設施都是 XT。所以運行所有最新型號的採礦設備。因此，我們認為我們和我們的客戶已經做好了準備。

Got it. And then just the other question on the HPC segment. Obviously, a lot of interest in the space recently. I would imagine that's kind of increased some of the competition there. Could you just discuss that a little bit and some of the competitive landscape there?

知道了。然後是關於 HPC 部分的另一個問題。顯然，最近人們對該領域很感興趣。我想這會增加那裡的一些競爭。您能否稍微討論一下那裡的一些競爭格局？

Yes. I expect there will be plenty of competition and people entering the space. I expect it from the traditional data center providers. I expect new entrants to come into the space. I think it's a really large opportunity. And just to kind of frame this opportunity and why I think we have this opportunity and what the opportunity set is, we talk about these next-generation data centers a fair amount. But let me just give you kind of some comps of traditional data centers versus what we're building and what we see in the future. So traditional data center, we talked about is generally built for ultra-low latency interconnect video streaming, all of those types of things.

是的。我預計會有很多競爭和進入該領域的人。我期望來自傳統數據中心提供商。我希望新進入者進入這個領域。我認為這是一個非常大的機會。為了構建這個機會以及為什麼我認為我們有這個機會以及機會集是什麼，我們談論了這些下一代數據中心。但是讓我給你一些傳統數據中心與我們正在建設的以及我們在未來看到的東西的比較。因此，我們談到的傳統數據中心通常是為超低延遲互連視頻流而構建的，所有這些類型的東西。

Traditional data center build rack -- power to the rack, typically for a full rack, they deliver about 7.5 kilowatts. And so generally, their capability is somewhere around 10 to 15 kilowatts to a rack. When we load a rack full of -- in video box with 8 A100 GPUs, which is kind of the gold standard right now for machine learning and AI, that -- if you want that rack full, it requires about 40 kilowatts to power that rack. So you're looking versus what traditionally is there, almost a fivefold increase in the power needed. And then that really directly correlates to the amount of heat created. But we're talking to the largest players in the industry, and we're spending a lot of time with them.

傳統的數據中心構建機架——為機架供電，通常對於一個完整的機架，它們提供大約 7.5 千瓦。所以一般來說，它們的容量大約為一個機架的 10 到 15 千瓦。當我們在裝有 8 個 A100 GPU 的視頻盒中加載一個機架時，這是目前機器學習和 AI 的黃金標準，如果你想讓那個機架裝滿，它需要大約 40 千瓦來為它供電架子。所以你正在尋找與傳統的相比，所需的功率幾乎增加了五倍。然後，這與產生的熱量直接相關。但我們正在與業內最大的參與者交談，並且我們花了很多時間與他們在一起。

And the view is that things are going from 40 to 70 to 100 kilowatt needs per rack. So you're bringing this power density, it's increasing significantly, and it's really difficult to retrofit older data centers to do this. And then they might -- then you're thinking about the amount of power that they need. And I think you're going to see a trend for specifically machine learning and AI, because it's a very unique load that looks a lot more like what we're handling now to move them closer. To the power source, you don't need this ultra-low latency aspect for these. So we're positioned very well. We have large amounts of low-cost power. We're sitting mostly in very cold locations.

並且觀點是每個機架的需求從 40 到 70 到 100 千瓦。所以你帶來了這種功率密度，它正在顯著增加，並且很難改造舊數據中心來做到這一點。然後他們可能 - 然後你正在考慮他們需要的電量。而且我認為你會看到專門針對機器學習和 AI 的趨勢，因為它是一種非常獨特的負載，看起來更像是我們現在正在處理的使它們更接近的負載。對於電源，您不需要這些超低延遲方面。所以我們的定位非常好。我們有大量的低成本電力。我們大多坐在非常寒冷的地方。

In our data center, for example, the airflow is significantly higher than you would see from a traditional just, because we want to use air cooling to cut down on the electricity usage and lower our cost significantly. So a traditional data center, maybe 0.5 mile per hour of air flow through. You just see our new facility is designed for around 8 miles per hour of airflow, just massive amounts of airflow for the cooling, because the climate in North Dakota is absolutely perfect for this. We're sitting on a fiber grid. We have 100-gig connectivity now, going to 400 gig at the end of the year. So we have really good fiber connectivity, which is also necessary.

例如，在我們的數據中心，氣流明顯高於傳統的數據中心，因為我們希望使用空氣冷卻來減少用電量並顯著降低成本。所以一個傳統的數據中心，每小時可能有 0.5 英里的氣流通過。你只看到我們的新設施是為每小時約 8 英里的氣流而設計的，大量的氣流用於冷卻，因為北達科他州的氣候非常適合這一點。我們坐在纖維網格上。我們現在有 100 千兆連接，年底將達到 400 千兆。所以我們有非常好的光纖連接，這也是必要的。

You just don't need the ultra-low latency aspect, but we're sitting in a really good spot. Now, is it easy for everyone to go into this space? Just like we've seen in building out hosting capacity for Bitcoin mining, that was hard. I think this is even harder. We've put a really good team in place. We pulled some people out of a large company that builds data centers here in the U.S. and actually internationally as well. They were building data centers for some of the largest hyperscalers. So we have people that are experienced with doing this. We've spent a lot of time designing this specific design, now we're implementing it.

你只是不需要超低延遲方面，但我們正處於一個非常好的位置。現在，大家進入這個空間，容易嗎？就像我們在為比特幣挖礦建設託管能力時看到的那樣，這很困難。我認為這更難。我們已經組建了一支非常優秀的團隊。我們從一家在美國和國際上建立數據中心的大公司中抽調了一些人。他們正在為一些最大的超大規模企業建造數據中心。所以我們有在這方面有經驗的人。我們花了很多時間來設計這個特定的設計，現在我們正在實施它。

So I do think we're -- we have a significant lead versus almost everyone out there. We've seen a few other smaller players that have been doing this for a few years. But I think you're going to see some of the larger ones move towards it, but I do think we have a pretty good advantage given where we are now, the sites that we already have, the operations that we already have and the knowledge base we have with our -- really on our electrical engineering as far as being able to deal with this kind of power density already. But I do expect competition. I expect it to be an extraordinarily large industry, and there's no way you're going to have one industry like that without a lot of competition.

所以我確實認為我們 - 我們與幾乎所有人相比都有很大的領先優勢。我們已經看到其他一些較小的參與者已經這樣做了幾年。但我認為你會看到一些更大的公司朝著它邁進，但我確實認為我們有一個很好的優勢，因為我們現在所處的位置，我們已經擁有的網站，我們已經擁有的運營和知識就我們已經能夠處理這種功率密度而言，我們的基礎是我們的電氣工程。但我確實期待競爭。我預計這將是一個非常大的行業，如果沒有很多競爭，你就不可能擁有這樣一個行業。

The next question is coming from Mike Grondahl of Northland Securities.

下一個問題來自 Northland Securities 的 Mike Grondahl。

Wes, when do you think you kind of have a green light on the HPC opportunity? Is that when the 5 megawatts are sort of up and running, and that's shown everybody you can do this? Is that this summer, this fall? When do you think you have that? And then, what could the HPC business look like in 2 to 3 years in terms of number of megawatts and sort of a rough range for revenue?

Wes，您認為您什麼時候會對 HPC 機會開綠燈？是不是當 5 兆瓦啟動並運行時，向所有人展示了您可以做到這一點？是今年夏天還是秋天？你認為你什麼時候有那個？然後，就兆瓦數和收入的大致範圍而言，HPC 業務在 2 到 3 年內會是什麼樣子？

Sure. So I gave the kind of the revenue comparison earlier. I can repeat that if you want me to, but just to kind of frame where we think HPC is as far as revenue versus the Bitcoin mining. The green light, we've kind of -- we're definitely maybe like we've moved from red to yellow already. So we're operating in our site. We see that these work. We see the network connectivity works. We see the software works. We see this setup works. Now as we bring the building on, there will be some fine tuning on the 5-megawatt building for -- from a design perspective, for sure, just like we did some tuning up from when we've built in Jamestown versus what we built in Garden City and Ellendale.

當然。所以我之前給出了那種收入比較。如果你想讓我重複，我可以重複一遍，但只是為了我們認為 HPC 與比特幣挖礦的收入相比的框架。綠燈，我們有點——我們肯定可能已經從紅色變成了黃色。所以我們在我們的網站上運營。我們看到這些工作。我們看到網絡連接正常。我們看到軟件工作。我們看到此設置有效。現在，當我們建造這座建築時，將對這座 5 兆瓦的建築進行一些微調——從設計的角度來看，當然，就像我們在詹姆斯敦建造時與我們建造的建築相比做了一些調整一樣在加登城和埃倫代爾。

But we're really close, and the conversations that we're having and the people we're having these conversations with has really given me and the team a large amount of confidence that we're moving in the right direction. As far as what that could look like right now, trying to think about what that could look like a few years out, I mean we talked about getting to a 50-50 split. I think the demand that is out there for this type of data center build is large right now. And the people that we're talking to about hosting or about GPU rental, it's very large quantities, and it's something that depending on how a few of these things go over the next few months, this business will be potentially very material by the end of this year, but it could ramp extraordinarily quickly.

但我們真的很親密，我們正在進行的對話以及與我們進行這些對話的人確實給了我和團隊很大的信心，我們正在朝著正確的方向前進。就目前的情況而言，嘗試考慮幾年後的情況，我的意思是我們討論過要達到 50-50 的比例。我認為目前對此類數據中心建設的需求很大。和我們談論託管或 GPU 租賃的人，數量非常大，這取決於未來幾個月這些事情的進展情況，到最後，這項業務可能會非常重要今年，但它可能會非常迅速地增長。

But -- and if it starts -- Michael, if it starts to go this way, it's kind why these -- I think it will be a really long runway of growth. But the conversations we're having right now, we're seeing demands of people wanting individual demand of 10 or 20 megawatts and some 50 and 100 megawatts of HPC build, which is which is a very large amount, given, like I said, with the numbers were that I gave you earlier in the call about the revenue comparison for HPC versus Bitcoin mining. But we're seeing a lot of demand. We're getting to some certifications that we need, that we'll get in the summer. But I don't know that, that's going to stop us from signing some large customers prior to even reaching that because it's -- these are really in the stage of development projects that will need to be built and turned on. And so the cadence might call for some of these to come on or to be signed at least earlier than what maybe I initially expected.

但是 - 如果它開始 - 邁克爾，如果它開始以這種方式發展，這就是為什麼這些 - 我認為這將是一條非常漫長的增長之路。但是我們現在正在進行的對話，我們看到人們需要 10 或 20 兆瓦的個人需求以及大約 50 和 100 兆瓦的 HPC 構建，這是一個非常大的數量，就像我說的那樣，這些數字是我早些時候在關於 HPC 與比特幣挖礦收入比較的電話會議中給你的。但我們看到了很多需求。我們正在獲得一些我們需要的認證，我們將在夏天獲得這些認證。但我不知道，這會阻止我們在達成目標之前簽署一些大客戶，因為它 - 這些確實處於需要構建和啟動的開發項目階段。因此，節奏可能要求其中一些至少比我最初預期的更早出現或簽署。

Got it. Okay. And hey, I took away the revenue comparison. It's like 10 to 12x revenue you generate off a miner.

知道了。好的。嘿，我拿走了收入比較。這就像你從礦工那裡獲得的 10 到 12 倍的收入。

That's correct. And that's for -- Mike, that's for co-location. So if we just do the hosting, that's, I think, a good comparison right now. And if we own the GPUs, it's significantly higher than that.

這是正確的。那是為了——邁克，那是為了同地辦公。因此，如果我們只做託管，我認為這是一個很好的比較。如果我們擁有 GPU，它會比這高得多。

(Operator Instructions) Our next question comes from the line of Kevin Dede with H.C. Wainwright.

（操作員說明）我們的下一個問題來自 Kevin Dede 和 H.C.溫賴特。

Wes, thanks for the discussion on the HPC side. I guess it sort of begs the question. And given that you seem pretty fully contracted out on [500,] what other -- like can you give us, I guess, a peak into the pipeline for your next round of builds, your next site acquisition and that kind of timing?

Wes，感謝您在 HPC 方面的討論。我想這有點迴避了這個問題。考慮到您似乎完全承包了 [500，] 還有什麼——我想，您能給我們一個高峰期嗎？

Yes. So we have a very good site identified in another cold region, not in North Dakota that has a good power price for us. We're optioning that site. Actually, we have demand for Bitcoin mining for that site. But we're seeing the amount of demand, I think we're seeing emerge on the HPC front, I think it's -- the likelihood that it goes towards HPC is extraordinarily high. But we do have another site identified, and we also expect to expand at the Jamestown site even further. But those are the 2 primary ones in the pipeline.

是的。因此，我們在另一個寒冷地區確定了一個非常好的站點，而不是在北達科他州，那裡的電價對我們來說很好。我們正在選擇那個網站。實際上，我們對該網站有比特幣挖礦的需求。但是我們看到了需求量，我認為我們看到了 HPC 前沿的出現，我認為它是——它轉向 HPC 的可能性非常高。但我們確實確定了另一個站點，我們還希望在詹姆斯敦站點進一步擴展。但那些是管道中的兩個主要的。

Okay. Does Jamestown entail like another set of buildings? Or are you going to kind of do it in those 5 megawatt increments?

好的。詹姆斯敦是否需要像另一組建築物一樣？或者您打算以這 5 兆瓦的增量進行嗎？

The next build for HPC and Jamestown would be a larger -- above the 5 megawatts. And recall -- I guess I recall, but originally in Jamestown, we expected to go to 200 megawatts. And so I think we can push that beyond the 100 megawatts with the power provider there with HPC, not certain what that limit is for us just yet. But we do think that we can expand at that site, but then we'll push more towards new sites. But we have identified one very attractive site that we'll -- we expect to move forward with.

HPC 和 Jamestown 的下一個構建將更大——超過 5 兆瓦。回想一下——我想我記得，但最初在詹姆斯敦，我們預計會達到 200 兆瓦。因此，我認為我們可以通過 HPC 的電力供應商將其提高到 100 兆瓦以上，但目前還不確定這個限制對我們來說是什麼。但我們確實認為我們可以在該站點進行擴展，但隨後我們將更多地推向新站點。但我們已經確定了一個非常有吸引力的網站，我們希望繼續推進。

Okay. Can you just dig in a little bit on the co-location versus, I guess, machine-owned business models in HPC, Wes. How would you approach that from a financing perspective?

好的。 Wes，您能否稍微深入了解一下 HPC 中的主機託管業務模型與機器擁有的業務模型。你會如何從融資的角度來處理這個問題？

So from a financing perspective, the goal -- so on the owning the GPUs would be significantly more expensive. These are -- you guys probably know the pricing on these types of GPUs. They're extremely high. So we -- our team on the finance side has done a great job to date, getting us very low-cost financing for the sites that we have. For that particular market, if you want to own the GPUs, there is a much better, really well-developed financing mechanism and financing market for that. So we've already -- are down that path, and I think we'll be able to tap some of that financing, and we are on kind of the initial build. But if it is going to be extraordinarily large, we're working on solutions around that, but it is capital intensive.

因此，從融資的角度來看，目標——擁有 GPU 的成本要高得多。這些是——你們可能知道這些類型 GPU 的定價。他們非常高。所以我們 - 我們在財務方面的團隊迄今為止做得很好，為我們擁有的網站提供了非常低成本的融資。對於那個特定的市場，如果你想擁有 GPU，那麼有一個更好、真正發達的融資機制和融資市場。所以我們已經 - 沿著這條路走下去，我認為我們將能夠利用其中的一些資金，而且我們正在初步建設。但如果它變得非常大，我們正在圍繞它尋找解決方案，但它是資本密集型的。

So if you want to do the fully integrated model is one that we will pursue some to what amount, I don't know, and it's going to be -- could it be limited by our ability to finance that? Yes. On the co-ocation side, I don't think we'll have any issue financing that for HPC builds for co-location. The customers [set] there that will contract for that -- it's large companies AAA-type credit companies. I don't think with our ability to -- that we've had to finance the Bitcoin mining facilities once contracted with customers. I think it's going to be significantly easier even in a much more difficult financing environment that we're seeing right now just because of the customer profile for those types of co-location buildings.

所以，如果你想做完全集成的模型，我們會追求多少，我不知道，它會是——它會受到我們融資能力的限制嗎？是的。在託管方面，我認為我們不會有任何為 HPC 構建託管融資的問題。那裡的客戶 [set] 將為此簽訂合同 - 這是大公司 AAA 型信用公司。我不認為我們有能力——一旦與客戶簽訂合同，我們就必須為比特幣採礦設施提供資金。我認為即使在我們現在看到的更加困難的融資環境中，這也會變得容易得多，因為這些類型的託管建築的客戶概況。

Okay. Would you mind just sort of touching on the JV that you sort of set up on sort of picking up excess rigs? And how is that looking? What are you thinking about that now? What can you speak to?

好的。你介意稍微談談你建立的合資企業嗎？那看起來怎麼樣？你現在在想什麼？你能跟什麼說話？

Yes. So we didn't pull any significant amount of money in, unfortunately, on that JV. We saw an opportunity there. We just didn't get a lot of demand on the -- it was basically coming to set up like a fund structure, like an SPV to go out and do that. And the opportunity is kind of, I wouldn't say totally (inaudible), but the price of the equipment has moved up materially. That would have been a great trade, had we been successful in pulling money in. But at the time that we were doing that, we had a starter, but we never got critical mass to push that forward. It just wasn't a huge appetite on kind of the investor front to put money into the space, which maybe was a signal that we're -- it was a good opportunity, but we never really pulled anything material into that.

是的。因此，不幸的是，我們沒有在該合資企業中投入大量資金。我們在那裡看到了機會。我們只是沒有得到太多的需求——它基本上是像基金結構一樣建立起來的，就像 SPV 一樣出去做那件事。機會有點，我不會說完全（聽不清），但設備的價格已經大幅上漲。如果我們成功地吸引了資金，那將是一筆很好的交易。但在我們這樣做的時候，我們有一個首發，但我們從來沒有達到推動它前進的臨界質量。只是投資者對將資金投入該領域的興趣不大，這可能是一個信號，表明我們 - 這是一個很好的機會，但我們從未真正將任何實質性的東西投入其中。

Thank you. Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Cummins for any final comments.

謝謝。女士們，先生們，我們的問答環節到此結束。最後請康明斯先生髮表最後意見。

Thanks operator. And just to clarify in the prepared remarks, David repeated the -- or the adjusted earnings number twice at 2 different numbers. The appropriate one is a loss of $1.4 million and a loss of $0.01 on the adjusted net income. Outside of that, I just want to thank the shareholders that are on the call for their support and thank our employees, again. It was an extraordinarily difficult winter in North Dakota, and it's still going with more snow recently falling there as well. So everyone has done a great job getting the buildings up, operating the buildings that I really appreciate everyone's effort on that, and we'll talk to you next quarter. Thank you.

謝謝運營商。只是為了在準備好的評論中澄清，大衛在 2 個不同的數字上重複了兩次 - 或調整後的收入數字。適當的是虧損 140 萬美元和調整後的淨收入虧損 0.01 美元。除此之外，我只想感謝股東們的支持，並再次感謝我們的員工。北達科他州的冬天異常艱難，而且最近還在下更多的雪。所以每個人都在建造建築物和運營建築物方面做得很好，我非常感謝大家為此付出的努力，我們將在下個季度與您交談。謝謝。

Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路。感謝您的參與。