Core Scientific Inc (CORZ) 2023 Q4 法說會逐字稿

Hello, and welcome to the core Scientific Inc. Fiscal Fourth Quarter and Full Year 2023 earnings conference call. My name is Harry, and I'll be coordinating your call today. If you'd like to ask a question during Q&A, you may do so by pressing star one on your telephone keypad. I'll now hand you over to Stephen Catlin, Senior Vice President, Investor Relations and Marketing at core scientific. To begin, please go ahead.

您好，歡迎參加 core Scientific Inc. 2023 年第四季和全年財報電話會議。我叫哈利，今天我將協調您的電話。如果您想在問答過程中提問，可以按電話鍵盤上的星號 1 來提問。現在我將把您交給核心科學部門投資者關係和行銷高級副總裁 Stephen Catlin。首先，請繼續。

Good afternoon, ladies and gentlemen, and welcome to core scientific fiscal year 2023 earnings conference call. This is Steven Catlin, Senior Vice President of Investor Relations for CoreSite. At this time, all participants are in a listen only mode. We will conduct a question and answer session after management's remarks. As a reminder, this conference is being recorded for replay purposes. And before we begin, please note that on this call, certain information presented contains forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statements other than historical or current facts that predict or indicate future events or trends, forecast, performance or achievements and may contain words such as believe, anticipate, expect estimate, intend, project, plan or words or phrases with similar meaning. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties that may cause actual results to differ materially. For further information on these risks and uncertainties, we encourage you to review the risk factors discussed in the Company's annual report on Form 10-K filed with the Securities Exchange Commission and the special note regarding forward-looking statements contained in the company's current report on Form eight K filed today and the earnings release and slide presentation contained therein.

下午好，女士們、先生們，歡迎參加核心科學 2023 財年財年財報電話會議。我是 Steven Catlin，CoreSite 投資者關係資深副總裁。此時，所有參與者都處於只聽模式。管理階層發言後，我們將舉行問答環節。謹此提醒，本次會議正在錄製以供重播。在我們開始之前，請注意，在本次電話會議中，提供的某些資訊包含 1995 年《私人證券訴訟改革法案》安全港條款含義內的前瞻性陳述。前瞻性陳述包括但不限於除歷史或當前事實之外的任何預測或指示未來事件或趨勢、預測、績效或成就的陳述，並可能包含諸如相信、預期、期望估計、打算、項目、計劃或具有相似意思的單字或片語。前瞻性陳述基於目前的預期、預測和假設，涉及可能導致實際結果有重大差異的風險和不確定性。有關這些風險和不確定性的更多信息，我們鼓勵您查看公司向美國證券交易委員會提交的 10-K 表年度報告中討論的風險因素以及公司當前報告中包含的有關前瞻性陳述的特別說明。今天提交了8 K 表格以及其中包含的收益發布和幻燈片演示。

Today's presentation is available on our website at core scientific.com in the Events and Presentations section. The content of this conference call contains time-sensitive information that is accurate only as of today, March 12, 2024 the Company undertakes no obligation to make any revision to any forward-looking statements contained in our remarks today or to update them to reflect the events or circumstances occurring after today.

今天的簡報可在我們的網站 core science.com 的「活動和簡報」部分中找到。本次電話會議的內容包含時效性信息，僅截至今天（2024 年 3 月 12 日）準確，本公司沒有義務對我們今天的言論中包含的任何前瞻性陳述進行任何修改或更新它們以反映今天之後發生的事件或情況。

Joining me today from core scientific, our CEO, Mr. Adam Sullivan, and Chief Financial Officer, and Ms. Denise sterling. We will now begin with remarks from Adam.

今天與我一起參與核心科學工作的是我們的執行長 Adam Sullivan 先生、財務長 Denise sterling 女士。我們現在從亞當的演講開始。

So Adam.

所以亞當.

Thank you, Steve, and good afternoon. I'd like to begin by highlighting a few key points that help frame QUARTER scientific leading position in our industry. As illustrated on slide 3, core scientific is one of the largest bitcoin miners in North America, earning more bitcoin than any other listed company in 2021, 2022 and 2023.

謝謝你，史蒂夫，下午好。首先，我想強調一些有助於確立 QUARTER 在我們產業中科學領先地位的關鍵點。如投影片 3 所示，Core Scientific 是北美最大的比特幣礦商之一，在 2021 年、2022 年和 2023 年賺取的比特幣數量超過任何其他上市公司。

Moving now to slide 4, we generated $502 million in revenue in 2023, more than any other listed minor North America. We own our 724 megawatts of infrastructure. That translates into 23.2 Exa Hashes as of December 31 and 25.2 Exa Hashes as of February 29, we are diversifying our hosting customer base beyond bitcoin mining into high-performance computing. With our recently announced contract to host for weeks, we are well positioned for having continuously improving our fleet efficiency with a pathway to delever our balance sheet, a plan to add more than 20 times half of self mining tax rate over the coming years. And I believe we have the best team in our industry. This being my first earnings conference call. Since taking the role as CEO, I'd like to express my gratitude to our Board members and our leadership team for their support.

現在轉到投影片 4，我們在 2023 年創造了 5.02 億美元的收入，超過其他北美上市小型企業。我們擁有 724 兆瓦的基礎設施。這相當於截至 12 月 31 日的 23.2 Exa 哈希值和截至 2 月 29 日的 25.2 Exa 哈希值，我們正在將我們的託管客戶群多元化，從比特幣挖礦轉向高效能運算。根據我們最近宣布的為期數週的合同，我們處於有利地位，可以不斷提高我們的船隊效率，並通過減少資產負債表的途徑，計劃在未來幾年將自營採礦稅率提高 20 倍以上。我相信我們擁有業界最好的團隊。這是我第一次召開收益電話會議。自擔任執行長以來，我謹對董事會成員和領導團隊的支持表示感謝。

I'd also like to acknowledge the hard work and dedication of every member of the scientific team stayed focused during the restructuring process. You maintained our market leadership position and you bring our values to life every single day. The restructuring lasted for the entirety of 2023 was not an easy period for the company, but we persevered learn from the experience, and it's built what I believe to be the best company in our industry.

我還要感謝科學團隊每一位成員在重整過程中保持專注的辛勤工作和奉獻精神。您保持了我們的市場領導地位，並且每天都將我們的價值觀變為現實。持續整個2023年的重組對公司來說並不是一個輕鬆的時期，但我們堅持吸取經驗，打造了我認為是行業中最好的公司。

One of the main reasons I joined core scientific in 2023 was the quality of the team and its ability to scale its own infrastructure rapidly and efficiently. It was the first company to energize 100, 250 and 500 megawatts for Bitcoin mining North America at a time when very few came anywhere close to that scale and even fewer met their growth targets.

我在 2023 年加入核心科學的主要原因之一是團隊的品質及其快速有效地擴展自己的基礎設施的能力。它是北美第一家為比特幣挖礦提供 100、250 和 500 兆瓦電力的公司，當時很少有公司能達到這一規模，達到成長目標的公司就更少了。

If I meet our own infrastructure, we can deliver financial operational and strategic advantages that I will address later. It's a privilege for me to lead this company, and I'm incredibly grateful and excited about this opportunity at building on strong momentum from 2023 core scientific and entered an exciting new chapter in our history.

如果我滿足我們自己的基礎設施，我們可以提供財務營運和策略優勢，我將在稍後討論。我很榮幸能夠領導這家公司，我非常感激和興奮有這個機會，在 2023 年核心科學的強勁勢頭基礎上再接再厲，進入我們歷史上激動人心的新篇章。

On today's call, I will speak to three key elements of this new chapter. The strength of our fundamental business, our preparations for the happen and the opportunities ahead of us. Denise Sterling will then share some key financial and operational metrics before I return for closing comments, and then we'll take your questions.

在今天的電話會議上，我將談到這個新篇章的三個關鍵要素。我們的基礎業務實力、我們對即將發生的事情的準備以及我們面前的機會。在我返回結束評論之前，丹尼斯·斯特林將分享一些關鍵的財務和營運指標，然後我們將回答您的問題。

Now let's talk about the strength of our business highlighted on our earnings presentation. A total of 19,274 bitcoin were mined in our data centers, 13,762 by itself, mining for our account for the any other public listed miner North America, we operated the largest infrastructure for Bitcoin mining North America with 724 energized megawatts. We ended 2023 with 15.9 times the Ashes self mining tax rate and 6.3 at the half of hosting hash rate for a total of 23.2 times. We demonstrate superior productivity running higher than average Bitcoin for Energisa has we have a disciplined manner and we develop and operate data centers less known is that we create technology solutions that support large fleets of computers. But I testified on slide 5, what we really do, 24, seven three 65 is transform energy into high value compute with superior efficiency at scale. We do this by designing, building and operating high-power digital infrastructure in which hundreds of thousands of computers operate with high uptime and high-productivity. The high-value compute we focus on today is bitcoin mining in our positions. Market is strong, owning our 724 megawatts and infrastructure shown in more detail on Slide 6, result in a lower cost to mine than if we relied on others to host our miners because we don't have to pay anyone in margin at both their hosting costs, the inorganic growth plan for completing another 372 contracted megawatt, partially built infrastructure at our Texas sites and incremental cost per megawatt of only about $200,000 or less than half of the cost of greenfield infrastructure. We plan to fund that growth from operating cash flow, a lesson we learned from our experience prior to our restructuring. This new infrastructure represents more than 20 EH/s of new half rate plan for the coming years. In addition, to our strong operational results in 2023. We also delivered strong financial results, starting with revenue of $502 million. While we experienced a net loss for the year of $247 million was mostly driven by $190 million in reorganization items associated with our restructuring, which are now mostly behind us in 2023, we generated strong adjusted EBITDA of $170 million, up from negative $10.7 million in the prior year. We generate cash flow by earning and selling bitcoin efficiently beyond our financial performance in 2023, which Denise will review in more detail. We also took the opportunity to evaluate our business carefully during our restructuring and made a number of changes that have strengthened our organization highlighted on slide 7. We emerge with a stronger balance sheet and a pathway to de-lever further based on convertible debt conversion and warrant exercises. We instill rigor and discipline in capital allocation, crafting an organic growth plan, funded out of operate operating cash flow. We reduced our spending and implemented a hedging strategy and power to manage our downside risks. We rationalized our hosting business, reducing the number of customers to a smaller set of financially strong companies in implementing new contracts designed to create more value for our shareholders and proceeds share. And we also paid off our debt financing utilizing free cash flow well and reorganization. And we completed a successful oversubscribed equity rights offering prior to our merger.

現在讓我們來談談我們的收益報告中所強調的業務實力。我們的資料中心總共開採了 19,274 枚比特幣，其中 13,762 枚為我們自己的帳戶，是北美任何其他上市礦商的帳戶，我們運營著北美最大的比特幣開採基礎設施，擁有 724 兆瓦的電力。截至 2023 年，Ashes 自挖礦稅率為 15.9 倍，託管算力一半為 6.3 倍，總計 23.2 倍。我們展示了高於 Energisa 比特幣平均水平的卓越生產力，我們有紀律，我們開發和營運資料中心，但鮮為人知的是，我們創建支援大型電腦群的技術解決方案。但我在投影片 5 上作證，我們真正做的 24、7、3 65 是將能源大規模地以卓越的效率轉化為高價值計算。我們透過設計、建置和營運高功率數位基礎設施來實現這一目標，其中數十萬台電腦以高正常運作時間和高生產力運作。我們今天關注的高價值計算是我們崗位上的比特幣挖礦。市場強勁，擁有我們的 724 兆瓦和幻燈片 6 中更詳細顯示的基礎設施，與我們依賴其他人託管我們的礦機相比，我們的挖礦成本更低，因為我們無需向任何人支付保證金成本，完成另外372 兆瓦合約的無機增長計劃，在我們德克薩斯州工廠部分建設基礎設施，每兆瓦增量成本僅約200,000 美元，不到綠地基礎設施成本的一半。我們計劃透過經營現金流來為這一增長提供資金，這是我們從重組之前的經驗中學到的教訓。這個新的基礎設施代表了未來幾年超過 20 EH/s 的新半速率計劃。此外，我們在 2023 年取得了強勁的營運表現。我們也取得了強勁的財務業績，營收達 5.02 億美元。雖然我們今年的淨虧損為2.47 億美元，主要是由與重組相關的1.9 億美元重組項目造成的，這些重組項目現在大部分已在2023 年過去，但我們的調整後EBITDA 強勁，達到1.7 億美元，高於2019 年的負1,070 萬美元。前一年。我們透過有效率地賺取和銷售比特幣來產生現金流，超越了我們 2023 年的財務業績，丹尼斯將更詳細地審查這一業績。我們也藉此機會在重組期間仔細評估了我們的業務，並做出了一些改變，這些改變增強了我們的組織，如幻燈片 7 所示。我們的資產負債表更加強勁，並基於可轉換債務轉換和認股權證行使進一步去槓桿化的途徑。我們在資本配置方面灌輸嚴格和紀律，制定有機成長計劃，並透過營運現金流提供資金。我們減少了支出，並實施了對沖策略和權力來管理下行風險。我們對託管業務進行了合理化，將客戶數量減少到較小的財務實力雄厚的公司，以實施旨在為我們的股東和收益分享創造更多價值的新合約。我們也充分利用自由現金流和重組償還了債務融資。在合併之前，我們成功完成了超額認購的股權發行。

Lastly, we strengthened our self mining business in a number of important ways, and I will detail shortly across these and other areas. We made tremendous progress over the past year and now having relisted on NASDAQ are excited at the opportunity to remain at the forefront of picoplatin mining North America.

最後，我們透過許多重要的方式加強了我們的自挖礦業務，我很快就會詳細介紹這些和其他領域。我們在過去的一年中取得了巨大的進步，現在在納斯達克重新上市，我們很高興有機會保持在北美吡鉑採礦領域的領先地位。

Now let's discuss the upcoming happenings in our business scale is important, but it's insufficient. We must deploy our resources and operate the superior efficiency to address the inherent volatility of our industry and the upcoming have any predictive publicly reported data shows that our hash rate realization based on the number of bitcoin We earned per average energized at the half. It has exceeded the average for our peer group in the last 12 months, as shown on slide 8, is much easier to operate efficiently with a small operation in much more difficult than scale. We continue to deliver superior efficiency at scale efficiency is critical to any business to prepare our business better for the volatility we expect during the having we've accomplished the following shown on slide 9, we continue to deploy new bitcoin miners to expand our hash rate and replace older less-efficient machines. By doing so, we improved fleet energy efficiency to 27.94 tools per Carecast by December 31, 2023 and at the end of February 2024 to 26.79 per terawatt hours. We've accelerated delivery and deployment of our 2.5 times half of new S21 through the first half of the year, which will improve our fleet efficiency. Even further leveraging our strong software development capabilities, we deployed our own proprietary firmware to our miners to generate greater profitability and create greater flexibility. We are able to optimize the machine performance based on power price changes as well as weather the facility level variables such as temperature, wind and pressure. This result in greater profitability at varying levels of economics, creating greater profitability at both lower and higher gas prices. We have optimized our fleet by reallocating miners to different locations based on their energy efficiency, aligning them with individual data center environmental conditions.

現在讓我們討論一下我們業務規模中即將發生的事情很重要，但這還不夠。我們必須部署我們的資源並保持卓越的效率，以解決我們行業固有的波動性，並且即將發布的任何預測性公開報告數據表明，我們的哈希率實現取決於我們平均賺取的比特幣數量的一半。在過去 12 個月裡，它已經超過了我們同行的平均水平，如幻燈片 8 所示，小規模營運比規模化更容易高效運作。我們繼續大規模提供卓越的效率，效率對於任何企業都至關重要，以便更好地為我們的業務做好準備，以應對我們預期的波動，在我們完成幻燈片9 所示的以下任務後，我們將繼續部署新的比特幣礦機以擴大我們的哈希率並更換效率較低的舊機器。透過這樣做，我們到 2023 年 12 月 31 日將車隊能源效率提高到每太瓦時 27.94 個工具，並在 2024 年 2 月底提高到每太瓦時 26.79 個工具。今年上半年，我們加快了 2.5 倍的新 S21 的交付和部署速度，這將提高我們的機隊效率。進一步利用我們強大的軟體開發能力，我們為礦機部署了自己的專有固件，以產生更大的盈利能力並創造更大的靈活性。我們能夠根據電價變化以及溫度、風和壓力等設施等級變數來優化機器性能。這會導致不同經濟水準下的獲利能力提高，從而在較低和較高的天然氣價格下創造更大的獲利能力。我們根據礦機的能源效率將礦機重新分配到不同的位置，使它們與各個資料中心的環境條件保持一致，從而優化了我們的機隊。

In Colorado, we implemented a power hedging strategy for the first time to minimize the impact of energy price volatility on our financial performance. And we've conducted rigorous scenario planning to determine what responses deliver the best result based on a variety of having driven cash price assumptions, our focus on efficiency has delivered positive financial results in 2023. We've reduced cash operating expenses by 27% year over year. We will continue to manage expenses carefully where to improve efficiency and continue preparing for the expected house price volatility around the happened. The strength of our business, combined with our focus on efficiency in preparation for the having positioned us very well to remain a leader in the bitcoin mining industry, the fact that we own our own infrastructure and possess unique capabilities and talent position us very well for emerging opportunities in other areas of high value compute, Onika infrastructure provides financial operational and strategic advantages. First, owning our infrastructure lowers our cost mine, producing self mining gross profit of 25% in 2023. It also gives us the flexibility to quickly and easily refresher miners to generate higher cap rates and the same operating power, increasing our productivity and profits. Second, because of our infrastructure, we can develop and deploy the new technology solutions that I mentioned earlier that help us boost productivity and operating efficiency This includes firmware, power management software and fleet management software. These solutions enable us to participate in programs offered by the utilities in different locations that can generate value for us. There there's so much more we can do with our deep technical capability that would be difficult or impossible to do if we did not own our own infrastructure. And third, we believe that the value of our themed infrastructure will only increase over time as the demand for available high-power term generation sites grows with the rapid growth of the HPC and AI cloud market. We believe that more opportunities will emerge to host clients such as corporate. To that point, our new multi-year hosting contract with core, we're an industry leader in GPU, accelerated workloads is valued at more than $100 million over the term of the contract. This new contract diversifies our hosting customer portfolio and enhances our potential to increase shareholder value by expanding our financing business to customers engage in important growing segments of the compute market. As a reminder, we hosted GPUs inter-data center for several years and even built a Tier three data center within one of our sites. Also, the majority of our data center operations team and IT leaders come from the data center industry, providing us with a deep understanding of the requirements in operating mechanics of infrastructure to service high-performance computing. In fact, our Head of Data Center Operations built and ran the very data center we have leased to his core we when he worked for HP., let me make it clear. We are fully focused on Bitcoin mining at scale. At the same time, we are uniquely positioned to address these emerging high value compute hosting opportunities as they evolve, representing strategic optionality for us and for you our shareholders.

在科羅拉多州，我們首次實施了電力對沖策略，以盡量減少能源價格波動對我們財務表現的影響。我們進行了嚴格的情境規劃，根據各種推動現金價格的假設來確定哪些應對措施能夠帶來最佳結果，我們對效率的關注在 2023 年帶來了積極的財務表現。我們的現金營運支出較去年同期減少了 27%。我們將繼續謹慎管理開支，以提高效率，並繼續為發生的預期房價波動做好準備。我們的業務實力，加上我們對效率的關注，使我們能夠很好地保持比特幣挖礦行業的領導者地位，事實上，我們擁有自己的基礎設施並擁有獨特的能力和人才，這使我們能夠很好地在其他高價值運算領域的新興機會中，奧尼卡基礎設施提供了財務營運和策略優勢。首先，擁有我們的基礎設施可以降低我們的礦山成本，到 2023 年自採礦毛利潤將達到 25%。它還使我們能夠靈活地快速、輕鬆地更新礦機，以產生更高的資本化率和相同的營運能力，從而提高我們的生產力和利潤。其次，由於我們的基礎設施，我們可以開發和部署我之前提到的新技術解決方案，幫助我們提高生產力和營運效率，其中包括韌體、電源管理軟體和車隊管理軟體。這些解決方案使我們能夠參與不同地點的公用事業公司提供的項目，這些項目可以為我們創造價值。我們可以利用深厚的技術能力做很多事情，如果我們沒有自己的基礎設施，這些事情將很難或不可能完成。第三，我們相信，隨著高效能運算和人工智慧雲端市場的快速成長，對可用高功率定期發電站點的需求不斷增長，我們的主題基礎設施的價值只會隨著時間的推移而增加。我們相信，將會出現更多接待企業等客戶的機會。至此，我們與 Core 簽訂的新的多年託管合約（我們是 GPU 加速工作負載的行業領導者）在合約期間的價值超過 1 億美元。這份新合約使我們的託管客戶組合多樣化，並透過將融資業務擴展到計算市場重要成長領域的客戶，增強了我們增加股東價值的潛力。提醒一下，我們在資料中心內託管 GPU 已有多年，甚至在我們的一個網站內建立了三級資料中心。此外，我們的資料中心營運團隊和IT領導者大部分來自資料中心產業，這使我們對服務高效能運算的基礎設施營運機制的要求有深入的了解。事實上，我們的資料中心營運主管建構並運行了我們在惠普工作時租給他核心的資料中心。讓我澄清一下。我們完全專注於大規模比特幣挖礦。同時，我們擁有獨特的優勢來應對這些不斷發展的新興高價值運算託管機會，這為我們和您我們的股東提供了策略選擇。

With that as an overview of the state of the business, I'd like to invite Denise early to provide some context for the key financial and operating results in 2023 is Thank you, and it's good to be here today.

作為對業務狀況的概述，我想提前邀請 Denise 為 2023 年的主要財務和營運業績提供一些背景資訊。謝謝，很高興今天來到這裡。

I'll begin by highlighting key income statement items. On a year-over-year basis, 2023 revenue of $502.4 million declined by $138 million or 22% from $640.3 million in 2022. $130 million of that decline was due to reducing the number of customers in our hosting business to improve its margin profile and sustainability and exiting the equipment sales business in 2023, which had contributed meaningfully to revenue in 2022.

我將首先強調關鍵的損益表項目。與去年同期相比，2023 年的營收為5.024 億美元，比2022 年的6.403 億美元下降了1.38 億美元，即22%。其中1.3 億美元的下降是由於我們減少了託管業務的客戶數量，以改善其利潤狀況和永續發展並於 2023 年退出設備銷售業務，該業務對 2022 年的收入做出了重大貢獻。

Cost of revenue decreased by $253 million, down 40% to $378.9 million from $631.9 million for the fiscal year 2022. The decrease in cost of revenue was primarily attributable to $128.1 million of decreased depreciation, driven by a fiscal 2022 non-cash impairment adjustment to the depreciable base for our deployed self mining units, $67.1 million of lower equipment sales costs due to our exit from the equipment sales business in 2022, $41.8 million of lower power costs and lower stock-based compensation of $20.7 million as prior year included accelerated vesting of awards as well as a decrease in equity awards granted during fiscal year 2023 as a result of our focus on efficiency. As Adam indicated, we reduced our cash operating expenses by 27%. This improvement was mainly the result of a significant reduction of professional fees and a decrease in headcount and related personnel costs. As we streamlined our organizational design to increase our operating efficiency.

營收成本下降 2.53 億美元，從 2022 財年的 6.319 億美元下降 40% 至 3.789 億美元。收入成本的下降主要歸因於折舊減少1.281 億美元，這是由於我們對部署的自採礦設備的折舊基礎進行了2022 財年非現金減值調整，以及由於我們退出了設備銷售成本減少了6710 萬美元。到2022 年，我們的設備銷售業務將減少4180 萬美元的電力成本，比上一年減少2070 萬美元的股票薪酬，其中包括加速兌現獎勵以及由於我們注重效率而減少2023 財年授予的股權獎勵。正如 Adam 所言，我們的現金營運支出減少了 27%。這項改善主要是由於專業費用大幅減少以及員工人數和相關人員成本的減少。我們簡化了組織設計以提高營運效率。

Our net loss decreased by $1.9 billion or 89% from $2.1 billion in 2022 to approximately $246.5 million in 2023. This decrease was driven mainly by a decline in noncash impairments of $1.9 billion, an improvement in gross margin of $115.1 million, lower operating expenses of $144.9 million, partially offset by bankruptcy related reorganization expenses of $191.1 million in 2023. 2023 adjusted EBITDA of $170 million increased by $180.7 million from a negative $10.7 million in 2022. As a percentage of revenue, 2023, adjusted EBITDA grew to 34% of revenue versus a negative 1.7% in 2022 because power is our single largest component of our cost of revenue.

我們的淨虧損從 2022 年的 21 億美元減少到 2023 年的約 2.465 億美元，減少了 19 億美元，即 89%。這一下降主要是由於非現金減損減少19 億美元、毛利率提高1.151 億美元、營運費用減少1.449 億美元，部分被2023 年破產相關重組費用1.911 億美元所抵銷。2023 年調整後EBITDA 為1.7億美元從 2022 年的負 1,070 萬美元增加了 1.807 億美元。作為收入的百分比，2023 年調整後 EBITDA 將成長至營收的 34%，而 2022 年為負 1.7%，因為電力是我們收入成本的最大組成部分。

I'd like to provide some additional background. We have power contracts with grid operators for each of our data centers. These contracts vary in price in terms of fleet by power cost averaged $0.044 in 2023. We project power costs in 2024 of between $0.045 and $0.047 times. We currently operate in both regulated and unregulated markets in regulated market. We are limited in our ability to manage the risk of power prices.

我想提供一些額外的背景資訊。我們與每個資料中心的電網營運商簽訂了電力合約。這些合約的價格因機隊數量而異，2023 年平均電力成本為 0.044 美元。我們預計 2024 年的電力成本將在 0.045 美元到 0.047 美元之間。我們目前在受監管市場和不受監管市場中開展業務。我們管理電價風險的能力有限。

In Texas, we implemented a hedging strategy for the first time on 50 megawatts of power to our pickup data center while stable winter power prices did not result in significant savings from this strategy. In 2023, we protected ourselves against downside risks stand. We established the processes necessary to engage in hedging at a larger scale and at other locations today, we operate two segments, self mining and hosting, as shown on slide 12, in 2023, our self mining to hosting mix was 76% to 24%. We plan to expand our self mining fleet as we add infrastructure capacity as well as refresh our less-efficient miners to increase efficiency and productivity. As we expand our self mining fleet, we expect the mix to change over time. Our 2020 through stuff, mining and hosting gross margins were 25% and 22% respectively, as compared to 1% and 2% in 2022. The significant improvement in year-over-year self mining gross margin was due to decreases in depreciation and stock-based compensation and an increase in our self mining hash rates. The significant improvement in our hosting gross margin was due to the rationalization of our hosting business that Adam addressed earlier, a critical driver to our operating efficiency and the preparation for the heading is the composition of our self mining fleet. As Adam indicated, our fleet-wide average energy efficiency was 26.79 for Terra hash as of February 29, 2024. And we expect continued improvement as we deploy new ES 21 miners this year as of the year-end 2023, we operated approximately 158,000 miners in our self mining fleet. The model mix shown on slide 13 was 13% S19, 71%. That's 19 Pro and F19J Pro and 16% S19JXP.

在德州，我們首次對我們的皮卡資料中心的 50 兆瓦電力實施了對沖策略，而穩定的冬季電價並未使該策略帶來顯著的節省。2023 年，我們保護自己免受下行風險的影響。今天，我們建立了在更大規模和其他地點進行對沖所需的流程，我們運作兩個部分，即自挖礦和託管，如幻燈片12 所示，到2023 年，我們的自挖礦與託管組合為76% 至24% 。我們計劃在增加基礎設施容量的同時擴大我們的自採礦隊，並更新效率較低的礦機以提高效率和生產力。隨著我們擴大自採礦隊，我們預計這種組合會隨著時間的推移而改變。2020 年，我們的商品、挖礦和託管毛利率分別為 25% 和 22%，而 2022 年為 1% 和 2%。自挖礦毛利率較去年顯著改善是由於折舊和股票薪酬的減少以及自挖礦算力的增加。我們的託管毛利率的顯著改善是由於 Adam 之前提到的託管業務的合理化，這是我們營運效率的關鍵驅動力，而準備的準備是我們自採礦隊的組成。正如 Adam 指出的那樣，截至 2024 年 2 月 29 日，Terra 哈希的整個車隊平均能源效率為 26.79。我們預計，隨著今年我們部署新的 ES 21 礦機，截至 2023 年底，我們的自採礦隊中運作著約 158,000 台礦機，情況將持續改善。投影片 13 中顯示的模型組合為 13% S19、71%。即 19 Pro 和 F19J Pro 以及 16% S19JXP。

Now I'd like to discuss the strength of our balance sheet and cash commitments. As illustrated on slide 14, we reduced our debt by approximately $400 million at emergence to $608 million as compared to just over $1 billion at the end of 2023, $260 million of our debt at Emergent consisted of secured convertible notes and the remaining $348 million included several non-convertible instruments. We have summarized the terms of these debt instruments on slide 15, including facility site, interest rate maturity and conversion of applicable.

現在我想討論一下我們的資產負債表和現金承諾的實力。如投影片14 所示，我們在緊急情況下將債務減少了約4 億美元，達到6.08 億美元，而2023 年底的債務略高於10 億美元，Emergent 的債務中有2.6 億美元包括有擔保可轉換票據，其餘3.48 億美元包括幾種不可轉換的工具。我們在投影片 15 上總結了這些債務工具的條款，包括融資地點、利率到期日和適用的轉換。

Slide 16 illustrates our pathway to reducing and potentially eliminating our debt. First, a stock price of $5.83 will put the convertible notes in the money and the price of $7.79 will trigger their mandatory conversion. Full conversion of these notes will result in an issuance of an additional 45 million shares and a $260 million reduction in debt to $348 million, assuming no other changes. Next, the exercise price of Tranche one warrants is $6.81 because these are cash warrants their full exercise would result in approximately $670 million in cash to core scientific, half of which we are required to use to pay down our debt as our net debt following the equitization of our secured convertible note amounts to $348 million. The receipt of $670 million would be more than sufficient to clear the balance sheet. Assuming no other changes, the full exercise of Tranche one warrants would also result in the issuance of an additional 98 million shares.

投影片 16 說明了我們減少並可能消除債務的途徑。首先，5.83 美元的股價將使可轉換票據兌現，而 7.79 美元的股價將觸發其強制轉換。假設沒有其他變化，這些票據的完全轉換將導致額外發行 4,500 萬股股票，債務減少 2.6 億美元至 3.48 億美元。接下來，第一批認股權證的行使價格為6.81 美元，因為這些是現金認股權證，其全部行使將為核心科學帶來約6.7 億美元的現金，其中一半我們需要用來償還我們的債務，作為我們的淨債務我們的擔保可轉換票據的股權化金額達 3.48 億美元。收到的 6.7 億美元足以清算資產負債表。假設沒有其他變化，第一批認股權證的全面行使也將導致額外發行9,800萬股。

As summarized on slide 16, the pathway to completely delevering our balance sheet based on the performance of our company and company stock is within RV, we have structured our 2024 plan to fund our operations and growth out of operating cash flow, including debt service, which is summarized on slide 17, we expect to pay a total of $71 million, $31 million in principal and $40 million in interest and debt amortization in 2020 for the majority of our existing debt matures in 2028 and 2029.

正如幻燈片16 所總結的，根據我們公司的業績和公司股票完全去槓桿化我們的資產負債表的途徑是在RV 內，我們制定了2024 年計劃，透過營運現金流為我們的營運和成長提供資金，包括償債、正如幻燈片17 中所總結的那樣，我們預計將在2020 年為2028 年和2029 年到期的大部分現有債務支付總計7100 萬美元、本金3100 萬美元以及利息和債務攤銷4000 萬美元。

Please refer to slide 15 for the terms associated with our debt instruments. Adam previously discussed our infrastructure expansion plans over the coming years. In 2024, we plan to spend approximately $20 million to complete 72 megawatts of infrastructure in Texas, which we will fund out of operating cash flow. Operating cash flow will also fund the cost of new miners to be deployed and energized from that 72 megawatt.

請參閱投影片 15 以了解與我們的債務工具相關的條款。Adam 之前討論了我們未來幾年的基礎設施擴張計劃。到 2024 年，我們計劃花費約 2000 萬美元在德克薩斯州完成 72 兆瓦的基礎設施，我們將從營運現金流中提供資金。營運現金流還將支付部署新礦機以及使用這 72 兆瓦發電的成本。

Moving now from CapEx, let's review our mining economics summarized on slide 18. Our total cash cost to South mine in 2023 was $14,982, which represents our direct cash expenses of power of $12,528, and facilities operations costs at $2,454 allocated based on the percentage of our fleet dedicated to self mining divided by total bitcoin self mined in 2023 at 13,762.

現在從資本支出開始，讓我們回顧一下投影片 18 中總結的挖礦經濟學。2023 年，我們對南礦的總現金成本為14,982 美元，這意味著我們的電力直接現金支出為12,528 美元，設施運營成本為2,454 美元，根據我們專用於自挖礦的車隊百分比除以2023 年自開採的比特幣總額 進行分配。13,762 年。

Another way to look at this is by calculating the cash based cash cost, which represents the cash expenses of power and facilities operations, costs divided by ourself mining fleet cash and interaction. Our cash, the cash costs in 2023 was $0.0398 per test. Again, we expect our operating cash flow to be sufficient to support operating expenses, debt service and CapEx associated with our organic growth plan in 2024, we are modeling a statutory effective tax rate of approximately 23% for 2024. We also have more than $300 million in net operating loss carryforwards, which will reduce future cash taxes.

另一種看待這個問題的方法是計算基於現金的現金成本，它代表電力和設施運營的現金支出，成本除以我們自己的採礦車隊現金和互動成本。我們的現金，2023 年每次測試的現金成本為 0.0398 美元。同樣，我們預計我們的營運現金流將足以支持與 2024 年有機成長計畫相關的營運費用、償債和資本支出，我們正在為 2024 年約 23% 的法定有效稅率進行建模。我們還有超過 3 億美元的淨營業虧損結轉，這將減少未來的現金稅。

Now I'll turn the call back to Adam to discuss our expectations for 2024.

現在我將把電話轉回給 Adam，討論我們對 2024 年的期望。

Atates produce has previously indicated in the business plan filed with the Board. We expect the following results in 2024. We plan to complete 17 megawatts with partially built infrastructure at our Denton, Texas data center for a total of 796 megawatts by the end of 2024 and Tokmanni half rate was 21 point the extra half.

Atates Produce 先前已在向董事會提交的業務計劃中表示。我們預計 2024 年會出現以下結果。我們計劃在 2024 年底，在德州丹頓資料中心完成 17 兆瓦的裝置容量和部分建成的基礎設施，總計 796 兆瓦，托克曼尼半率是額外一半的 21 個百分點。

To summarize, core scientific remains a leader in bitcoin mining with a strong business, significant progress preparing for the having potentially significant opportunities in other forms of high-value compute hosting. We took the opportunity during our restructuring to improve our company, and our team is engaged, aligned and laser-focused on operating effectively in achieving our growth plan. We are excited about how well our scientific is performing in positions, and we look forward to updating you on our progress against our goals over the course of this year.

總而言之，核心科學仍然是比特幣挖礦領域的領導者，擁有強大的業務，取得了重大進展，為在其他形式的高價值計算託管方面擁有潛在的重大機會做好了準備。我們利用重組期間的機會來改善我們的公司，我們的團隊積極參與、協調一致，專注於有效運營，以實現我們的成長計劃。我們對我們的科學研究工作在各個職位上的表現感到興奮，我們期待向您通報今年我們在實現目標方面取得的最新進展。

I am confident in the ability of our outstanding team to achieve superior results that earn your trust.

我相信我們優秀的團隊有能力取得卓越的成果，贏得您的信任。

Thank you for your time today. Now we will take your questions.

感謝您今天抽出時間。現在我們將回答您的問題。

We will now begin the question and answer session of today's call. If you have a question, please press star then one on your touchtone phone. If you wish to be removed from the queue, please press star then two. If you are speaking using a speakerphone, you may need to pick up your handset first before pressing the numbers and we respectfully ask that you limit your questions to two and then please reenter the queue to ask further questions. Once again to ask a question, please press star then one on your touchtone phone. Our first question today is from the line of Joe Flynn of Compass Point. Joe, your line is now open.

我們現在開始今天電話會議的問答環節。如果您有疑問，請按按鍵式電話上的星號，然後按一個。如果您希望從佇列中刪除，請按星號然後按兩顆。如果您使用免持通話，您可能需要先拿起聽筒，然後再按號碼，我們懇請您將問題限制為兩個，然後重新進入隊列詢問更多問題。若要再次提問，請按按鍵式電話上的星號，然後按一個。我們今天的第一個問題來自 Compass Point 的 Joe Flynn。喬，您的線路現已開通。

I sort of look into the first quarter with the stronger Bitcoin prices and hash rate. And given the you guys have the benefit of having scale already and high attach rate utilization on you guys should be able to build a pretty strong cash cash position here. So my question is on just near term plans going forward with that cash, what's balance between investing in growth, holding cash for a rainy day into the having and also as it relates to your decision to pay cash interest or packages?

我認為第一季的比特幣價格和哈希率都比較強勁。鑑於你們已經擁有規模和高附加率利用率的優勢，你們應該能夠在這裡建立相當強大的現金部位。所以我的問題是關於現金的近期計劃，投資於成長、持有現金以備不時之需以及與您支付現金利息或套餐的決定之間的平衡是什麼？

Thanks, Joe. No priority number one for us is execute on the business plan. We've laid out the next year, the growth for the next 72 megawatts to add on to our base of somewhere around 24 megawatts. And we believe that by executing on that business plan will provide a pathway to deleveraging for us. Priority two is paying down debt. That's hopefully something that we've been eyeing as we've been looking for over the course of 2024 but really our top priority right now execute on the business plan, continue operating with the best efficiency across the market, and we believe that will create a pathway for us to delever our balance sheet over the course of 2024.

謝謝，喬。對我們來說，執行業務計畫並不是第一要務。我們已經規劃了明年 72 兆瓦的成長，以增加我們約 24 兆瓦的基礎。我們相信，透過執行該業務計劃將為我們提供去槓桿化的途徑。第二要務是償還債務。希望這正是我們在 2024 年一直在尋找的目標，但實際上我們現在的首要任務是執行業務計劃，繼續以整個市場的最佳效率運營，我們相信這將創造這是我們在2024 年去槓桿化資產負債表的途徑。

Great. And then kind of question on the power prices. Looks like you guys saw a benefit there with that $0.044 per kilowatt hour is probably on lower natural gas prices. But I guess one more color maybe your existing power agreements and whether those are present stone. Are there further opportunities to get fixed price PPAs.

偉大的。然後是關於電價的問題。看來你們看到了一個好處，即每千瓦時 0.044 美元的天然氣價格可能較低。但我想還有一種顏色可能是你現有的權力協議以及這些協議是否是現有的石頭。是否有更多機會獲得固定價格購電協議？

And then also, if you could just.

然後還有，如果可以的話。

Yes, Ben, on your hedging strategy, if you can hedge it additional megawatts.

是的，本，關於你的對沖策略，如果你能對沖額外的兆瓦。

Yes, yes. Of course, I mean, let's take a look at the power markets more broadly. First and empower right now in the United States is a very competitive game. Bitcoin miners are competing against well-funded technology companies that are less sensitive to pricing. We view that as a big opportunity for us as a business which we can talk about later. But going back to Bitcoin mining and the our power prices over the course of 2023 were $0.044. We have a split between regulated and unregulated markets inside of our portfolio. We're operating in five different states. The unregulated market is Texas. And so a lot of our power prices are fixed and some of them have components that can fluctuate with different pricing like natural gas. And so we definitely have an eye towards further hedging programs like like the one that we did at our peak US locations. But you're right now what we're really focused on is not necessarily only achieving lower cost per bitcoin, but it's also really focusing on areas where we can have high utilization. It's something that we really pride ourselves on and believe provides a better return on capital for the investments that we've made, not only in our infrastructure, but also our miners. So the power programs that we're participating across regulated markets right now, it's some intermittency in exchange for lower power prices in Texas, in particular, looking at more short dated and fixed price PPAs that give us the opportunity to capitalize on different market environments. And that's what we're seeing across across the state of Texas. Power prices are changing rapidly, and that's something that we want to be able to have a flexibility to execute on those types of opportunities. And so you saw the first one that we executed on over the course of the winter. I'm in Texas.

是的是的。當然，我的意思是，讓我們更廣泛地看看電力市場。首先，授權現在在美國是一場競爭非常激烈的遊戲。比特幣礦商正在與資金雄厚、對定價不太敏感的科技公司競爭。我們認為這對我們的企業來說是一個巨大的機會，我們可以稍後再討論。但回到比特幣挖礦，我們 2023 年的電價為 0.044 美元。我們的投資組合內分為受監管市場和不受監管市場。我們在五個不同的州開展業務。不受監管的市場是德州。因此，我們的許多電價都是固定的，其中一些電價的組成部分可能會隨著天然氣等不同價格的變化而波動。因此，我們肯定會關注進一步的對沖計劃，就像我們在美國高峰地點所做的那樣。但現在我們真正關注的不僅是降低每個比特幣的成本，而且還真正關注我們可以實現高利用率的領域。這是我們真正感到自豪的事情，並相信為我們所做的投資提供了更好的資本回報，不僅是在我們的基礎設施方面，而且還包括在我們的礦工方面。因此，我們目前在受監管市場上參與的電力計劃存在一定的間歇性，以換取德克薩斯州較低的電價，特別是考慮更多短期和固定價格的購電協議，這使我們有機會利用不同的市場環境。這就是我們在德克薩斯州各地看到的情況。電價瞬息萬變，我們希望能夠靈活地抓住這些類型的機會。所以你看到了我們在整個冬天執行的第一個。我在德克薩斯州。

Thank you.

謝謝。

Our next question today comes from the line of Jon Tower of Needham & Company. Your line is now open.

今天我們的下一個問題來自李約瑟公司的喬恩·塔爾（Jon Tower of Needham & Company）。您的線路現已開通。

Great.

偉大的。

Thanks for taking my question, guys, and I'm a little bit newer to the story, but would love to get a little bit more color on the core we contract and any additional details you can drill down into their on such as kind of the operating margin profile we should be thinking about? And then you have to think longer term, is this a business you would like to get more into? And then just kind of expected CapEx, if you were to get in the business, maybe a larger scale, kind of what is the cost per megawatt as you would be thinking about?

謝謝你們提出我的問題，夥計們，我對這個故事有點陌生，但我很想在我們合約的核心上獲得更多的色彩，以及您可以深入了解的任何其他細節，例如我們應該考慮的營業利潤率狀況？然後你必須從更長遠的角度思考，這是你想要更多投入的業務嗎？然後就是預期的資本支出，如果你要進入這個產業，也許規模更大，你會考慮每兆瓦的成本是多少？

Yes, let me address the first part of the question first, we're excited about bringing Cory back to the clients. They were a client from 2019 to 2022 inquiries become a major brand in this space, but they knew our capabilities and know that we're well positioned to support them. This first deal that we signed with the Austin location. Our operations team has high familiarity with that site in many of the team members that we have actually built and operated that site when they worked for HP. to how we're thinking about this business right now, it's a natural hedge against the Bitcoin mining business. This is price how you'd see traditional data center deals, price charging a fixed per kilowatt kilowatt. The chart, regardless of whether that new capacity is utilized than a pass from things like power and utilities. We believe this deal this deal is going to be accretive to 2024, and it's going to provide a strong return on the CapEx that we spend on the upgrades and the expansion of the electrical infrastructure at that site.

是的，讓我先解決問題的第一部分，我們很高興將科里帶回客戶身邊。他們是 2019 年至 2022 年的客戶，詢問成為該領域的主要品牌，但他們了解我們的能力，也知道我們有能力為他們提供支援。這是我們與奧斯汀工廠簽署的第一筆協議。我們的營運團隊中的許多團隊成員都對該網站非常熟悉，他們在為惠普工作時實際建立並經營了該網站。就我們現在如何看待這項業務而言，它是針對比特幣挖礦業務的自然對沖。這是傳統資料中心交易中看到的價格，每千瓦固定收費。該圖表顯示，無論新產能是否被利用，還是來自電力和公用事業等部門的通行證。我們相信這筆交易將在 2024 年實現增值，並將為我們用於升級和擴展該站點電力基礎設施的資本支出提供強勁的回報。

The interesting part for us is how we're thinking about it going forward. And really what we're seeing in this market. There's low availability of high megawatts power are high megawatt sites with firm generation power. And right now infrastructure is a three to five-year game. And on the power side, it's at least two years out to go to any site today. We have a unique advantage where we can convert facilities that we have with a much lower timeframe. So we're looking at executing contracts with companies that have a preference for getting capacity on sooner rather than later and right now we're at a very interesting intersection between bitcoin mining and HPC. We can be extraordinarily competitive on future site development, whether that's the 372 megawatts to complete on the bitcoin mining side or whether it's on any of the existing infrastructure that we have, which is 300 megawatts within our existing footprint and have the potential to convert to HPC. like locations, given their proximity to major metropolitan areas and also access to low latency to those metropolitan areas. So for us, we're looking for to the business really from two perspectives. The first is continue to execute on the mining side with the Persian Gulf infrastructure that we have. And then part two is looking at improving our business by improving the margins of our Bitcoin mining business by shifting potentially some of our existing sites to this new HPT. business, where we have long-term fixed-price contracts it gives us the opportunity to provide greater stability and free cash flow.

對我們來說有趣的部分是我們如何思考它的未來。我們在這個市場上看到的確實是這樣。在具有穩定發電能力的高兆瓦站點，高兆瓦電力的可用性較低。目前基礎設施建設是一場三到五年的遊戲。而在電力方面，今天去任何一個網站都至少要兩年的時間。我們擁有獨特的優勢，可以在更短的時間內轉換現有設施。因此，我們正在考慮與那些傾向於儘早而不是稍後獲得容量的公司簽訂合同，而現在我們正處於比特幣挖礦和高效能運算之間一個非常有趣的交叉點。我們可以在未來的站點開發方面具有非凡的競爭力，無論是在比特幣挖礦方面要完成的372 兆瓦，還是在我們擁有的任何現有基礎設施上，即我們現有佔地面積內的300 兆瓦，並且有潛力轉換為高效能運算。類似的地點，因為它們靠近主要大都市區，並且還可以訪問這些大都市區的低延遲。所以對我們來說，我們實際上是從兩個角度來尋找業務。首先是繼續利用我們擁有的波斯灣基礎設施在採礦方面執行任務。第二部分是著眼於透過將我們的一些現有站點轉移到這個新的 HPT 來提高比特幣挖礦業務的利潤率，從而改善我們的業務。我們擁有長期固定價格合約的業務，這使我們有機會提供更大的穩定性和自由現金流。

Okay, great. And sorry if I missed it Winnercomm, when does the revenue from the contract start kicking in we expect the revenue from the contract for this to start showing up on our income statement at some point over the next few months. And so that's what we look forward.

好的，太好了。抱歉，如果我錯過了 Winnercomm，合約收入什麼時候開始生效，我們預計合約收入將在未來幾個月的某個時候開始出現在我們的損益表中。這就是我們所期待的。

To over the course of the next the next few earnings calls.

在接下來的幾次財報電話會議中。

Thank you.

謝謝。

Our next question today is from the line of Lucas Pipes with B. Riley Lucas. Your line is now open. Please go ahead.

今天我們的下一個問題來自 Lucas Pipes 和 B. Riley Lucas。您的線路現已開通。請繼續。

Thank you very much, operator, and good afternoon, everyone. Thanks for the update. Good to hear your voice on Adomite. My first question is on the on the fleet upgrade, can you remind us kind of the timing of the extra half addition side in general kind of the size of the opportunity? And then I think you mentioned the CapEx budget earlier on the call, but if you could just refresh that as well.

非常感謝接線員，大家下午好。感謝更新。很高興在 Adomite 上聽到你的聲音。我的第一個問題是關於艦隊升級，您能否提醒我們額外一半附加方面的時間安排以及機會的大小？然後我想你在電話會議的早些時候提到了資本支出預算，但如果你也能刷新一下的話。

I would appreciate. Thank you.

我將不勝感激。謝謝。

Sure. The fit here for me, Lucas. Yes, so let's talk about the minor refresh more broadly first, and we'll say again. So on a minor refresh basis, what you see our existing portfolio is a consistent roll into newer generation initiatives. That's why we had machines in our average machine fleet today is about 26.79 tools for trash, but we're looking at consistent roll into newer generation machines and to do it on a more consistent basis. That's how we're thinking about this business going forward is constantly having the ability to refresh the lower CapEx cycles because if you refresh all of our machines at once you're essentially creating maturity walls for that next CapEx cycle, reactor refresher and charter fleet. So you're seeing the first few deals that we've announced, the XP. deal that was part of our emergence. And then the S21 deal that was also announced in January, the S21 deal. That was an opportunity where we actually were able to accelerate the delivery based on accelerating payments for that contract interaction point for some of those deliveries to earlier part in Q2 of this year. So as we look forward to the rest of this year, we're going to look for more consistent mission purchases and we're going to be updating the market as we go for full. We'll be looking to pay for those out of operating free cash flow, some played out in our business plan. And on the infrastructure side, you're putting up 72 megawatts of infrastructure advantage and that's going to cost us $20 million to complete that site or to complete those next 72 megawatts. And so that would be paid for over the course of 2024.

當然。盧卡斯，這裡很適合我。是的，所以讓我們先更廣泛地討論一下小更新，然後我們會再說一次。因此，在小幅更新的基礎上，您所看到的我們現有的產品組合將持續融入新一代計畫。這就是為什麼今天我們的平均機隊中的機器大約有 26.79 個垃圾工具，但我們正在考慮持續滾動到新一代機器中，並在更一致的基礎上做到這一點。這就是我們對未來業務的思考，即不斷有能力刷新較低的資本支出週期，因為如果您立即刷新我們所有的機器，您實際上是在為下一個資本支出週期、反應堆刷新和包租機隊創建成熟度牆。現在您看到的是我們宣布的前幾項交易，即 XP。這筆交易是我們崛起的一部分。然後是一月份宣布的 S21 交易，即 S21 交易。這是一個機會，我們實際上能夠根據今年第二季早些時候部分交付的合約交互點的加速付款來加速交付。因此，當我們期待今年剩餘時間時，我們將尋找更一致的任務採購，並且我們將在全力以赴時更新市場。我們將尋求為那些失去經營自由現金流的人支付費用，其中一些在我們的商業計劃中得到了體現。在基礎設施方面，您要建立 72 兆瓦的基礎設施優勢，這將花費 2000 萬美元來完成該站點或完成接下來的 72 兆瓦。因此，這筆費用將在 2024 年期間支付。

Got it.

知道了。

Thank you for that. And then, Tom, on slide 18, I have a question on how to think about the operational cost. The $0.65, our Aclara hash, and I assume that this is mostly a fixed cost. So as you kind of refresh net miners have that excess cash, it doesn't really increase linearly, but would appreciate if that's kind of how to think about that, that number going forward in a rising?

謝謝你。然後，湯姆，在幻燈片 18 上，我有一個關於如何考慮營運成本的問題。0.65 美元，我們的 Aclara 哈希值，我認為這主要是固定成本。因此，當刷新網路的礦工擁有多餘的現金時，它並不會真正線性增加，但如果這是一種如何思考的方式，那麼這個數字會持續上升，我會很感激嗎？

It's a harsh environment, of course, Tony,

當然，這是一個惡劣的環境，東尼，

When you look at that on page 18, you're referencing the $0.65 in cash costs. We are part of that is definitely a fixed cost of the operations team. And but then there are also parts of it that are variable as well related to facility level expenses that are outside of the cost of power. So these are direct costs that are incurred and some of it would scale as we continue to scale our infrastructure fleet. But in terms of the amount of operating costs, this is something that we would expect to achieve operating leverage on going forward as we continue to increase the size of our infrastructure.

當您查看第 18 頁時，您指的是 0.65 美元的現金成本。我們屬於那絕對是固定成本的營運團隊。但其中也有一部分是變動的，也與電力成本以外的設施級費用有關。因此，這些都是產生的直接成本，其中一些成本會隨著我們繼續擴大基礎設施規模而擴大。但就營運成本而言，隨著我們繼續擴大基礎設施規模，我們預計未來將實現營運槓桿。

All right. I appreciate it. I'll turn it over for now and the best of luck it.

好的。我很感激。我現在就把它翻過來，祝你好運。

Our next question today is from the line of Rosemary Sisson of Odeon Capital Group versus your line is now a nice, thank you.

今天我們的下一個問題是來自 Odeon Capital Group 的 Rosemary Sisson 的問題，您的問題現在很好，謝謝。

And thank you for taking the questions on our side. Curious about whether you would comment on the plan that was part of the bankruptcy filing, whether you believe that you are those numbers still kind of in line with your expectations, at least or before current year.

感謝您接受我們的提問。我想知道您是否會對破產申請中的計劃發表評論，您是否認為這些數字至少或在今年之前仍然符合您的預期。

This is the guidance that we gave at the end of the end of the year. The call was that our guidance is in line with our business plan. So developing the next 72 megawatts of infrastructure and the 21.8 and extra hash expected our fleet by year end of 2024.

這是我們在年底給的指導。電話是我們的指導符合我們的業務計劃。因此，預計到 2024 年底，我們的機隊將開發下一個 72 兆瓦的基礎設施以及 21.8 兆瓦及更多的散列。

So from the perspective of the business plan. We're really focused on that from a CapEx perspective and focused on it from a growth perspective. So those are really the two key areas and that we believe will be consistent along with our business plan that was filed.

所以從商業計劃的角度來看。我們確實從資本支出的角度關注這一點，並從成長的角度關注它。因此，這些確實是兩個關鍵領域，我們相信這將與我們提交的業務計劃保持一致。

Okay, thank you for that. And do you and do you expect that there could be any any change in your power costs going forward? I mean, you obviously mentioned the cost that you expect coming up, but is that kind of set in stone or is that or could there be variability to that part power costs?

好的，謝謝你。您是否預期未來的電力成本會發生任何變化？我的意思是，您顯然提到了預期的成本，但這是一成不變的，還是該部分電力成本可能存在變化？

Yes.

是的。

And we gave guidance of $0.045 to $0.047. There's there is potential to be a bit of a range on power prices but this is something where we have high confidence in our ability to execute that range that we provided for this year.

我們給出的指導價為 0.045 美元至 0.047 美元。電價可能會出現一定的波動，但我們對執行今年規定的波動範圍的能力充滿信心。

If you go and you look back to previous years, there are events that can cause changes in natural gas pricing mechanisms, potential effects, not only in current years but future years. But right now, we have we have high confidence in our ability to execute on the existing guidance that we provide are related to power prices on one called.

如果你回顧一下前幾年，你會發現一些事件可能會導致天然氣定價機制的變化和潛在影響，不僅在當前幾年，而且在未來幾年。但現在，我們對執行我們提供的與電價相關的現有指導的能力充滿信心。

Thank you very much.

非常感謝。

Thanks, Robert.

謝謝，羅伯特。

Our next question today is from the line of Joseph Vafi of Canaccord Genuity. Joseph, your line is now open.

今天我們的下一個問題來自 Canaccord Genuity 的 Joseph Vafi。約瑟夫，您的線路現已開通。

Everyone, a good afternoon, and thank you for taking a couple of my questions. Maybe we'll just kind of focus a little bit more on the upcoming having I know you mentioned in your prepared remarks your operating cost per bitcoin. Clearly at these spot prices, you're going to remain profitable on on on a halving of that. Just wanted to drill down a little bit into some of your thoughts or how you're planning your operations for the year, maybe your expectations on perhaps where network difficulties may go post having? I know that's pretty hard to kind of forecast, but Tom, and then if you looked at your mining fleet, I guess would you be unplugging any of your miners post having versus where you are now? Thanks a lot.

大家下午好，感謝您回答我的幾個問題。也許我們會更專注於即將到來的事情，因為我知道你在準備好的評論中提到了每比特幣的營運成本。顯然，以這些現貨價格，即使減半，您仍將保持獲利。只是想深入了解您的一些想法或您如何規劃今年的運營，也許您對網路困難可能會出現在哪裡的期望？我知道這很難預測，但是湯姆，如果你看看你的採礦隊，我想你會拔掉任何礦工的電源嗎？多謝。

Appreciate that, Joe. So let's cover our preparations of having first. We think about it really three distinct buckets, operations, software and energy.

很欣賞這一點，喬。讓我們先介紹一下我們的準備。我們實際上將其視為三個不同的部分：營運、軟體和能源。

On the operation side, obviously, we're looking first at a minor refresh. We have the two previous announcements as we look to refresh and lower our average fuels per tire ash in the second part is that we've actually been relocating our machines based on their efficiency within our portfolio of facilities based on the power price and other economic earned other environmental conditions to allow us to maximize profitability. That's really one of the operation side.

顯然，在操作方面，我們首先考慮的是小幅更新。我們之前發布了兩個公告，因為我們希望在第二部分中刷新和降低每輪胎灰的平均燃料，我們實際上已經根據我們的設施組合中的效率重新定位了我們的機器，這些效率取決於電價和其他經濟因素。贏得了其他環境條件，使我們能夠最大限度地提高盈利能力。這確實是營運方面的一方面。

On the software side, we've rolled out new modes to adapt to changing economic conditions. So that's both over clocking and under clocking and providing us the opportunity to rapidly move. Our average tools for care has even lower based on changing economic conditions which can extend the life and improve the profitability of our machines based on different cash price assumptions.

在軟體方面，我們推出了新模式來適應不斷變化的經濟狀況。因此，這既是超頻也是低頻，為我們提供了快速移動的機會。根據不斷變化的經濟條件，我們的平均護理工具甚至更低，這可以根據不同的現金價格假設延長機器的使用壽命並提高機器的盈利能力。

Lastly, we talked a little bit about this earlier, but on the energy side, we've been working with all of our power providers to develop more advanced strategies that potentially increase intermittency in exchange for lower power prices. And so that's something that we've been working on, given our experience working with some of the largest utilities in the United States to be able to introduce new types of programs and work collaboratively with our energy providers to be able to lower our average power. So that's really 0.1 weeks. We definitely completed significant and rigorous scenario planning around many different cash price assumptions. And so we feel we're very prepared for this upcoming half.

最後，我們之前對此進行了一些討論，但在能源方面，我們一直在與所有電力供應商合作，制定更先進的策略，這些策略可能會增加間歇性，以換取更低的電價。鑑於我們與美國一些最大的公用事業公司合作的經驗，我們能夠推出新型計劃並與我們的能源供應商合作，從而降低我們的平均功率，這就是我們一直在努力的事情。所以這實際上是 0.1 週。我們確實圍繞著許多不同的現金價格假設完成了重要且嚴格的情境規劃。因此，我們覺得我們已經為即將到來的下半年做好了充分準備。

Now point to as a It definitely is interesting question related to our expectations around the how the bitcoin price will influence, how much hash rate stays online. Post that Bitcoin prices were to stay flat to where they are today. You'd expect to see less hash rate come off-line for this specific point was at 50,000. So as the starters, I believe based on what we're seeing from the data in previous generation units that are on the network, let's call it 38 tools for tariffs for later, which represents probably somewhere between 10% to 15% of the hash rate comes offline as they're not profitable anymore.

現在指出，這絕對是一個有趣的問題，與我們對比特幣價格將如何影響、哈希率保持在線的預期相關。發布消息稱，比特幣價格將與今天持平。您預計會看到更少的哈希率離線，因為這個特定點是 50,000。因此，作為初學者，我相信根據我們從網路上前一代單元的數據中看到的內容，我們將其稱為38 個關稅工具，以供以後使用，這可能代表哈希值的10% 到15 % 之間由於不再有獲利，利率已下線。

Given next step is to understand the efficiency mix versus power prices to really provide what the next step of machines that are going to come offline around the halving.

鑑於下一步是了解效率組合與電價的關係，以真正提供下一步將在減半前後離線的機器。

What I mean by that, are you how are older generation units and newer generation units allocated amongst the various power prices on the bitcoin network. So that's really been the next steps to understand how much more hash rate may come offline and then the last question here is how long the unprofitable I understand why the answer could be some of them shut off immediately. But the truth is many of them may stay online in hopes that network difficulty drops in minor margins improve. So for us, the way we're thinking about this upcoming having at the minimum, we're expecting somewhere in the range was about a 10% to 15% difficulty drop. And we believe based on the shift that we made across our portfolio and we would have our existing miner fleet be profitable across our portfolio, and that's something that we've worked really hard to achieve.

我的意思是，舊一代機組和新一代機組在比特幣網路上的各種電價之間是如何分配的。因此，接下來的步驟實際上是了解哈希率可能會離線多少，然後這裡的最後一個問題是無利可圖的時間有多長，我明白為什麼答案可能是其中一些會立即關閉。但事實是，他們中的許多人可能會留在網路上，希望網路難度能小幅下降並得到改善。因此，對我們來說，我們考慮即將到來的難度至少會下降 10% 到 15%。我們相信，根據我們對投資組合所做的轉變，我們將使現有的礦機隊伍在我們的投資組合中實現盈利，這是我們非常努力實現的目標。

But so that's really helpful. Thank you, Adam. And then just one more question on the having I know you're focused on larger hosting customers. How does how are you looking at having having positive or negative effects on your hosting business and your strategy there? Thank you very much.

但這確實很有幫助。謝謝你，亞當。然後還有一個問題，我知道您專注於較大的託管客戶。您如何看待對您的託管業務及其策略產生正面或負面影響？非常感謝。

Yes, so it's interesting, right. We're going to we're having with high house prices. It's really yet to be known what the house price will be post having. But if house prices stay high and older generation units stay online infrastructure. And this industry has become a point to be extraordinarily constrained. This is something that we like to capitalize on the business, and we always say that our hosting business is really optionality that we have inside of our infrastructure portfolio to capitalize on moments in time with infrastructure trades at a premium. And so there are different outcomes that could potentially occur post having. But we're in constant dialogue with potentially large hosting clients to host the newest generation of machines that provide us either strategic opportunities for instance, like our hosting agreement with Pitney or different types of financial opportunities like the proceeds sharing arrangements that we announced last year that provide us economic benefits similar to self mining and we like those types of opportunities going forward. And we're going to continue to be very opportunistic on the hosting side as we evaluate new and larger hosting clients that we could take inside of our portfolio.

是的，所以這很有趣，對吧。我們將面臨高房價。目前還不清楚房價會是多少。但如果房價保持高位且老一代單位仍保持線上基礎設施。而這個行業也成為了一個非常受限的點。這是我們喜歡利用業務的東西，我們總是說我們的託管業務實際上是我們的基礎設施投資組合中的可選性，可以及時利用基礎設施交易的溢價。因此，擁有後可能會出現不同的結果。但我們一直在與潛在的大型託管客戶進行對話，以託管最新一代的機器，這些機器為我們提供了戰略機會，例如我們與Pitney 的託管協議，或者不同類型的財務機會，例如我們去年宣布的收益分享安排這為我們提供了類似於自我挖礦的經濟效益，我們喜歡未來的此類機會。當我們評估可以納入我們的投資組合的新的和更大的託管客戶時，我們將繼續在託管方面非常機會主義。

Great. Thank you very much.

偉大的。非常感謝。

Yes.

是的。

Our next question today is from the line of Kevin Dede of H.C. Wainwright.

今天我們的下一個問題來自 H.C. 的 Kevin Dede。溫賴特。

Kevin, your line is now open. Please go ahead.

凱文，您的線路現已開通。請繼續。

Thanks. Thanks for having me, Adam and Denise, appreciate it. I guess I would piggyback on Joe's question. How know your competitors maligned the hosting business? I think you tried to get to this, but can you withstand as a hosting arrangement to that same sort of $0.04 cash cost level at what at what point or what hedge price, would you have to make some drastic changes to the arrangements that you have with your existing customers?

謝謝。感謝亞當和丹尼斯的邀請，我很感激。我想我會順應喬的問題。如何知道您的競爭對手誹謗了託管業務？我認為您試圖做到這一點，但是作為託管安排，您能否承受同樣的 0.04 美元現金成本水平，在什麼時候或什麼對沖價格，您是否必須對您的安排做出一些重大改變與您現有的客戶？

We've been really cognizant of this over the course of 2023 and so one of the main focuses we had over the course of 2023 was ensuring that the hosting clients that we took on were financially strong companies. And we're providing us with the newest generation mission. So as we moved into 2024, obviously, with having coming up next month, we wanted to be we wanted to ensure that we are in a position where we felt comfortable with not only our hosting counterparties, but also the mix that we are hosting for them. So where we stand today, we have a very strong hosting portfolio. We're evaluating new opportunities in the hosting mix to potentially add to our base. And going forward, we're always going to use hosting as an opportunistic business and if economics change dramatically, like we've seen in the course of 2022, we would be able to replace hosting clients with newer generation equipment and new hosting clients to be able to refit those existing and open slots be have to increase the profitability of that business once again.

我們在 2023 年確實認識到了這一點，因此我們在 2023 年的主要關注點之一是確保我們接受的託管客戶是財務實力雄厚的公司。我們正在為我們提供最新一代的使命。因此，隨著我們進入 2024 年，顯然，隨著下個月的到來，我們希望確保我們不僅與我們的託管對手方感到滿意，而且也與我們託管的組合感到滿意他們。因此，我們今天的立場是，我們擁有非常強大的託管產品組合。我們正在評估託管組合中的新機會，以增加我們的基礎。展望未來，我們始終將託管作為一項機會主義業務，如果經濟發生巨大變化，就像我們在2022 年所看到的那樣，我們將能夠用新一代設備和新的託管客戶端來取代託管客戶端能夠改裝那些現有的和開放的位置必須再次提高該業務的盈利能力。

Could you just sort of dig in a little bit, Adam, on the infrastructure costs associated with the HPC. business, given your excitement and work with core, we've again, I you mention and I totally agree that your infrastructure has great value, but the machine or the buildings you have at Denton aren't necessarily amenable to running HPC machine. So could you kind of give us an outline on how you would convert existing infrastructure build out future infrastructure to address that?

Adam，您能否稍微深入了解一下與 HPC 相關的基礎設施成本。業務，鑑於您的興奮和與核心的合作，我們再次，我您提到並且我完全同意您的基礎設施具有巨大的價值，但是您在 Denton 擁有的機器或建築物不一定適合運行 HPC 機器。那麼您能否向我們介紹如何將現有基礎設施轉變為未來的基礎設施來解決這個問題？

Yes. So we I mean, we've been in contact with some of the largest providers of cards in the industry, have to be able to work on how to retrofit existing facilities. This is something that's not uncommon in the data center industry. You see brownfield infrastructure being converted to data centers. And if you take a look at our designs for our facilities, they're actually just pared back data centers that have been developed over the course of the data center industry many years ago to we believe our infrastructure base. And we completely agree that it would be additional costs related to converting some of our existing facilities. But we believe with the counterparties that we're in discussions with that there will be opportunities for CapEx to be partially covered as part of the contractual arrangements with our clients, given the fact that there's such a high time preference right now, to get infrastructure online more quickly. These companies have to prove that they can scale. They have to prove that they can bring machines online, and that's something that we can provide given our advantage of owning our own infrastructure today. So this is something that we've been in deep discussions with a number of different companies, and we're really excited about the opportunities that exist and over the course of not only 2024. But beyond that, I touched on infrastructures that three to five-year game. The power right now at bare minimum is two plus years away for these data center companies. So this is a this is a big opportunity for us to be able to execute on to be able to bring down the time to market for a number of these companies. And there are a number of opportunities on the infrastructure side that can be brought in to help bringing that existing infrastructure that we have really up to the needs of the clients that we've been speaking to.

是的。所以我的意思是，我們已經與業內一些最大的卡片供應商進行了接觸，必須能夠研究如何改造現有設施。這在資料中心產業並不罕見。您將看到棕地基礎設施正在轉變為資料中心。如果你看一下我們的設施設計，它們實際上只是削減了多年前在資料中心產業過程中開發的資料中心，以確保我們的基礎設施基礎。我們完全同意，改造我們的一些現有設施會產生額外費用。但我們相信，我們正在與交易對手進行討論，考慮到目前獲得基礎設施的時間偏好如此之高，作為與客戶的合約安排的一部分，資本支出將有機會被部分覆蓋上網速度更快。這些公司必須證明他們可以擴大規模。他們必須證明他們可以使機器上線，鑑於我們今天擁有自己的基礎設施的優勢，這是我們可以提供的。因此，我們一直在與許多不同的公司進行深入討論，我們對 2024 年存在的機會感到非常興奮。但除此之外，我還談到了三到五年的基礎建設。對於這些資料中心公司來說，目前的最低電力還需要兩年以上的時間。因此，這對我們來說是一個巨大的機會，我們能夠抓住這些機會，縮短其中許多公司的上市時間。基礎設施方面有很多機會可以幫助我們現有的基礎設施真正滿足我們一直在交談的客戶的需求。

Just a real quick one for Denise. How are you how are you thinking about implementing the new FASB. on mark-to-market in your bitcoin holdings?

對丹妮絲來說，這只是一個非常快速的過程。您如何考慮實施新的 FASB？您持有的比特幣是按市值計價嗎？

Yes, Eric, it's a great question, Kevin. And as you know me, we actually stopped holding bitcoin on our balance sheet in 2022, we actually will adopt as of one one, 25 or 24. I apologize, but it really doesn't have a significant impact on us. We did see a significant improvement in our adjusted EBITDA as we talked in our prepared remarks. And that was really based on the fact that we saw the the change year over year in the impairments. So while our our competitors are actually seeing a significant improvement as they are taking into consideration the actual ability to write up their asset base, as you can see by our financial results, there really wasn't a significant difference between and where we are today and the application of the new standard.

是的，埃里克，這是一個很好的問題，凱文。如你所知，我們實際上在 2022 年就停止在資產負債表上持有比特幣，我們實際上將從 1 1、25 或 24 開始採用比特幣。我很抱歉，但這確實對我們沒有太大影響。正如我們在準備好的演講中所說，我們確實看到調整後的 EBITDA 有了顯著改善。這實際上是基於我們看到減損逐年變化的事實。因此，雖然我們的競爭對手實際上看到了顯著的進步，因為他們正在考慮編制其資產基礎的實際能力，正如您從我們的財務表現中看到的那樣，但我們今天的情況實際上並沒有顯著差異以及新標準的應用。

Thank you.

謝謝。

Our next question today is from the line of Jack Chan of Imperial Capital. Jack, your line is now open. Please go ahead.

今天我們的下一個問題來自帝都的陳傑克。傑克，你的線路現已開通。請繼續。

Could you guys see any opportunities for JVs or partnerships, perhaps too accelerate the self mining growth plan or perhaps to also accelerate the growth of the high compute?

你們能否看到合資企業或合作夥伴關係的任何機會，也許也可以加速自挖礦成長計劃，或者也可以加速高運算的成長？

Thanks, Jack. I mean, right now, what we're focused on is focused on executing this plan our business plan laid out our continued growth via funding out of operating free cash flow. There may be opportunities going forward that we may evaluate on the HPC side related to joint ventures, but this is something that we believe the team we've put together over the course of the past few years. If you think about the team that we developed in house, right? We built a team that scales and develop the largest infrastructure base in North America for Bitcoin mining. And this team is coming from the traditional data center industry to have an opportunity to execute on a very unique opportunity that will exist over the course of the next three to five years. And so right now, we're really just focused on building this out organically, finding good partners and good and clients that will work with us given our ability to execute more quickly. And so that's really our focus today on the HPC side.

謝謝，傑克。我的意思是，現在我們的重點是執行這個計劃，我們的業務計劃透過營運自由現金流提供資金來實現我們的持續成長。未來我們可能會在與合資企業相關的 HPC 方面評估一些機會，但這是我們相信我們團隊在過去幾年中組成的。如果您考慮一下我們內部開發的團隊，對嗎？我們建立了一個團隊，負責擴展和開發北美最大的比特幣挖礦基礎設施基地。這個團隊來自傳統的資料中心產業，有機會抓住未來三到五年內存在的非常獨特的機會。所以現在，我們真的只是專注於有機地建立這個項目，尋找優秀的合作夥伴以及願意與我們合作的客戶，因為我們有能力更快地執行。這確實是我們今天關注 HPC 的重點。

And on the bitcoin mining side, this is something where the largest mine in North America. I mean something that you need to remember is we've been setting the pace in 2021, 2022, 2023, we mined more bitcoin than any minor North America, and it appears we're setting the pace again in 2024.

在比特幣挖礦方面，這是北美最大的礦場。我的意思是，你需要記住的是，我們在2021 年、2022 年、2023 年一直在設定步伐，我們開採的比特幣比任何北美小國都多，而且看來我們將在2024 年再次設定步伐。

Appreciate that on the interest rate for your converts, how you're thinking about the cash pay versus the toggle option? Or will there be an announcement on such?

了解您的轉換者的利率，您如何考慮現金支付與切換選項？還是會不會有這樣的公告？

This is something that we evaluate and we can evaluate on a quarterly basis. And so that's something that we're still evaluating today for the first half, rounded in at the end of Q2.

這是我們評估的事情，我們可以每季評估一次。因此，我們今天仍在評估上半年的情況，並在第二季末進行舍入。

So you will be able to provide more updates to the market as we make decisions around whether we're choosing the 6% cash, 6% tech or the 10% cash.

因此，當我們決定選擇 6% 現金、6% 技術還是 10% 現金時，您將能夠向市場提供更多更新資訊。

And the only other thing to add is, you know, as we've actually detailed out our debt service on Slide 17, just to make sure that it says that it's clear that we do actually anticipate in the projections that we have included on slide 17 that we are looking at the option of the 6% cash and 6% pick that I'm suggesting that it is going to be a quarterly decision going forward.

唯一需要補充的是，你知道，我們實際上已經在幻燈片 17 上詳細說明了我們的債務償還，只是為了確保它表明我們確實在幻燈片中包含的預測中確實進行了預期17 日，我們正在考慮6% 現金和6% 選秀權的選擇，我建議這將是未來的季度決定。

Our next question today is from the line of Greg Lewis of BTIG. group. Your line is now open. Please go ahead.

今天我們的下一個問題來自 BTIG 的 Greg Lewis。團體。您的線路現已開通。請繼續。

Yes. Thank you, everybody, and thanks for taking my question. I had I was hoping you could talk a little bit about how you're thinking about allocating capital. And I mean, clearly, you've been upgrading the rig fleet on 20 at 27 Joe's tire Azure. But as you think about deploying those incremental dollars, how are you weighing the benefits of just using getting better efficiency out of your existing infrastructure and executing that long term infrastructure expansion, which you kind of laid out in the presentation?

是的。謝謝大家，也謝謝你們提出我的問題。我希望你能談談你如何考慮分配資本。我的意思是，很明顯，您一直在升級 20 at 27 喬的輪胎 Azure 上的鑽機車隊。但是，當您考慮部署這些增量資金時，您如何權衡從現有基礎設施中獲得更高效率並執行您在演示中列出的長期基礎設施擴展的好處？

Yes. Right now we are we're hyper-focused on executing our business plan right now executing that business plan is definitely putting additional cash on balance sheet given where mining economics are today. And so we're having that opportunity prior to this upcoming having to put additional cash on balance sheet for us to feel more comfortable around playing through different types of house price scenarios.

是的。現在，我們高度專注於執行我們的業務計劃，考慮到當今採礦業的經濟狀況，執行該業務計劃肯定會在資產負債表上增加額外的現金。因此，在即將到來的資產負債表上投入額外現金之前，我們有這個機會，以便我們可以更輕鬆地應對不同類型的房價情境。

As I mentioned earlier, priority to paying down debt. But the plans the path to deleveraging that is embedded in our capital structure today is an opportunity for us to be able to fully delever based on strong execution of our company. And so what that really looks like we have $600 million in debt of just over $600 million. We have a $260 million convert. That has a mandatory conversion feature. And so that leaves about $340 million in regular way debt. We have $670 million upon full exercise that tranche one warrant. And so right now, all of those, the Tranche one warrant, the conversion, the mandatory conversion of the convertible note, those are all things that are within reach if we just start trading somewhat closer to the mean of our peer group in our industry. So we believe upon strong execution of our business plan, continuing to outperform while the opportunity to pay down the debt through that pathway and an optionality that's embedded in our in our capital structure. And so really, that's our focus right now execute, put cash on balance sheet and work towards a pathway to deleveraging and moving to a positive net cash position.

正如我之前提到的，優先償還債務。但如今嵌入我們資本結構中的去槓桿化路徑計劃，為我們提供了一個機會，使我們能夠在公司強大執行力的基礎上全面去槓桿化。那麼，我們的實際情況是，我們有 6 億美元的債務，剛好超過 6 億美元。我們有一個價值 2.6 億美元的皈依者。具有強制轉換功能。這樣就剩下約 3.4 億美元的常規債務。全面行使一份認股權證後，我們將獲得 6.7 億美元的資金。因此，現在，所有這些，第一批認股權證、轉換、可轉換票據的強制轉換，如果我們開始以更接近行業同業平均水平的方式進行交易，那麼這些都是可以實現的。因此，我們相信，透過強有力地執行我們的業務計劃，繼續表現出色，同時有機會透過該途徑償還債務，並在我們的資本結構中嵌入選擇性。事實上，這就是我們現在的重點，將現金納入資產負債表，並努力尋找去槓桿化和實現正淨現金部位的途徑。

Super helpful. Thanks, Adam.

超有幫助。謝謝，亞當。

And our next question today is from the line of Darren Aftahi of Roth MKM DOWN. Please go ahead.

今天我們的下一個問題來自 Roth MKM DOWN 的 Darren Aftahi。請繼續。

Hey, guys. Thanks for taking my questions. I had was the live call. So excuse me, if any this document asset.

大家好。感謝您回答我的問題。我接到的是現場通話。所以請原諒，如果有此文檔資產的話。

Adam, I'm curious, two things on your agreement with core even in the broader strategy there. So first, have you expanded your megawatts into HHPC.? What does this call. We have out there on that, but the ore is about progress.

亞當，我很好奇，即使在更廣泛的策略中，您也與核心達成了兩件事。首先，您是否已將兆瓦功率擴展到 HHPC？這叫什麼。我們已經在這方面做了準備，但最重要的是進步。

Any future developments that we make. And we mentioned the 300 megawatts of opportunity within our existing infrastructure base that's up for grabs from the perspective of we have a great relationship with core. We've been in discussions with a number of other counterparties. And for us, it comes down to decision of working with given the contracts are longer dated or seven years as an eternity for most likely mining companies. But the data center industry battle, that's really the standard. And so we're going to be working with these clients over a number of years. We wanted to diversify our customer base over time. And so we're evaluating a number of different opportunities. And you have to remember right now, there's a high time preference in this industry to get capacity online more quickly into opportunities that allow for our clients still to bring capacity online more quickly and the type of contract that we'd be looking to execute on.

我們未來的任何發展。我們提到了我們現有基礎設施基礎中 300 兆瓦的機會，從我們與核心有著良好關係的角度來看，這些機會是可以爭奪的。我們一直在與許多其他交易對手進行討論。對我們來說，這取決於合作的決定，因為合約的期限較長，或者對於大多數可能的礦業公司來說，合約期限為七年。但資料中心產業之戰，這才是真正的標準。因此，我們將與這些客戶合作多年。我們希望隨著時間的推移使我們的客戶群多樣化。因此，我們正在評估許多不同的機會。您現在必須記住，這個行業有很高的時間偏好，需要更快地使產能上線，從而使我們的客戶仍然能夠更快地使產能上線，以及我們希望執行的合約類型。

And then when you look at return on invested capital and you talked about retrofitting some of these buildings, like how does that calculus work in looking at IHPCIAIRML. client with a longer-term time horizon relative to going down the DTCPAP.?

然後，當您查看投資資本回報率時，您談到了對其中一些建築物進行改造，例如 IHPCIAIRML 中的微積分如何發揮作用。相對於下降 DTCPAP 而言，客戶端具有更長的時間範圍。

Thanks.

謝謝。

Yes, I mean, the way we're thinking about it right now is there's there's refresh cycles on machines as well on Bitcoin mining machines. And so there's always additional dollars that need to be spent over the course of time, even to maintain a profitable mining business in any given site. So we're definitely evaluating different types of contracts with potential clients that allow for them to pay for some or a majority of that CapEx. And so it provides us an opportunity to get strong return on the invested capital that we will be making. And so that's really something that we've been evaluating. There's obviously something that we evaluated the first deal that we signed with Corley who we believe will have a return on that invested capital inside it inside of a year.

是的，我的意思是，我們現在考慮的方式是，機器上以及比特幣礦機上都有刷新週期。因此，隨著時間的推移，即使是為了在任何特定地點維持有利可圖的採礦業務，也總是需要花費額外的資金。因此，我們肯定會與潛在客戶評估不同類型的合同，以允許他們支付部分或大部分資本支出。因此，它為我們提供了獲得豐厚投資回報的機會。這確實是我們一直在評估的事情。顯然，我們評估了與科利簽署的第一筆交易，我們相信科利將在一年內獲得投資回報。

Our next question today is from the line of Josh Siegel of Cantor Fitzgerald.

今天我們的下一個問題來自坎托·菲茨杰拉德的喬什·西格爾。

Josh, your line is now.

喬希，現在是你的線路了。

Yes, hi, guys. Thanks for taking my questions today. Look, I'd love to get a little more color on how you're thinking about energy, especially as you expand into Texas, how are you thinking about navigating the Texas energy market?

是的，嗨，夥計們。感謝您今天回答我的問題。聽著，我很想更多地了解您如何看待能源，特別是當您擴展到德克薩斯州時，您如何考慮駕馭德克薩斯州能源市場？

Thanks, Josh. I mean, we've been in Texas for a number of years and we have two sites in Texas so we have our Denton facility and our Bakers locations. So the way we're thinking about power and we say in Texas over the course of the past few years, you've seen long term fixed price PPAs increase over the course of time, even renewable PPAs have increased over the course of the past few years. And so the opportunities to go longer dated today aren't as opportunistic for us as looking at shorter dated PPAs. Those also provide greater flexibility around collateral and margin. And so we've been looking at executing the shorter dated fixed price PPAs that provide us the coverage to that any potential downside risk as power prices could move in either direction. But it also provides us the opportunity to be able to be much more planful around the types of machines that we put at those sites. The power prices are constantly changing over the course of time that influences the efficiency of the machines that you're putting there. And so we're very well versed. It's in real and allocating machines based on site level profitability based on changing economic conditions. And one of the things that we're really proud of. We've built our own energy management software in house. This qualifies us for even the highest program inside of Texas, which are some of the most stringent requirements across the United States, and we've been able to qualify for office. And so that's something that we believe is unique to us. All of that capability is in house. It's not we're not relying on third party software provider to that. So not only do we feel we have a good strategy on the power hedging side, but also our internal capabilities our accept are exceptional in this industry.

謝謝，喬許。我的意思是，我們在德克薩斯州已經很多年了，我們在德克薩斯州有兩個工廠，所以我們有丹頓工廠和貝克斯工廠。因此，我們思考電力的方式，我們在過去幾年中在德克薩斯州說，您已經看到長期固定價格購電協議隨著時間的推移而增加，甚至可再生能源購電協議在過去的過程中也有所增加幾年。因此，今天對我們來說，期限較長的機會並不像期限較短的購電協議那樣機會主義。這些也為抵押品和保證金提供了更大的靈活性。因此，我們一直在考慮執行期限較短的固定價格購電協議，以便我們能夠應對電價可能朝任一方向變動時的任何潛在下行風險。但它也為我們提供了機會，使我們能夠對放置在這些站點的機器類型進行更有計劃的安排。電價隨著時間的推移而不斷變化，這會影響放置在那裡的機器的效率。所以我們非常精通。它是真實的，並根據不斷變化的經濟條件的站點級盈利能力來分配機器。這是我們真正感到自豪的事情之一。我們內部建構了自己的能源管理軟體。這使我們有資格參加德克薩斯州內最高的計劃，這是全美最嚴格的要求之一，而且我們已經有資格擔任公職。所以我們相信這對我們來說是獨一無二的。所有這些能力都在內部。這並不是說我們不依賴第三方軟體供應商。因此，我們不僅認為我們在電力對沖方面擁有良好的策略，而且我們所接受的內部能力在這個行業中也是非常出色的。

Great. Appreciate it. That's very helpful. Color on switching gears a little bit the HPC side of things. I was wondering if you guys have considered cloud compute? And if so, what made you expect with the direction of sufficient footprint?

偉大的。欣賞它。這非常有幫助。切換齒輪的顏色有點像 HPC 方面的東西。我想知道你們是否考慮過雲端運算？如果是這樣，是什麼讓您期望有足夠的足跡方向？

If you think about what we're really good at, right, we're really great at building infrastructure at scale rapidly and better than anyone else. And that's something that we've proven over the course of the past few years in the bitcoin mining side, building infrastructure that's better than the rest of the industry and faster than the rest of the industry. That's what we're really good at our design and development team on the infrastructure side comes out of the traditional data center industry. And so we need we're thinking about our core competencies here in our core competencies, our designing, developing and operating digital infrastructure at scale with great efficiency and that's something that we really pride ourselves on that we've been able to execute on better than anyone else in bitcoin mining. And we're expecting similar results on the digital infrastructure side as well.

如果你想想我們真正擅長的是什麼，那麼我們確實非常擅長快速大規模建設基礎設施，而且比其他任何人都做得更好。過去幾年我們在比特幣挖礦方面已經證明了這一點，我們建設的基礎設施比行業其他公司更好，速度也比行業其他公司更快。這就是我們真正擅長的地方，我們的基礎設施的設計和開發團隊來自傳統的資料中心產業。因此，我們需要考慮我們的核心能力，我們的核心能力，我們以極高的效率大規模設計、開發和運營數位基礎設施，這是我們真正感到自豪的事情，因為我們能夠更好地執行比比特幣挖礦領域的其他人都要多。我們預計數位基礎設施方面也會出現類似的結果。

Our next question today is from the line of Lucas Pipes of B. Riley Dukes. Your line is open. Please go ahead.

今天我們的下一個問題來自 B. Riley Dukes 的 Lucas Pipes。您的線路已開通。請繼續。

Thank you very much for taking my follow-up questions. I first first, Adam, sorry if I missed it, but what's the what's the CapEx budget for the miners In '24.

非常感謝您接受我的後續問題。首先，亞當，抱歉，如果我錯過了，那麼 24 年礦工的資本支出預算是多少。

But the pure computing we have that's something that we haven't announced yet. That's something that we're currently working through, and we're going to be opportunistic over the course of 2024 related to how miners are priced for the founding what I can say right now is the X P's, any S1 ones that reported so far for this year that have been announced, we've made all the payments required in 2024 on both of those deals. So we're very comfortable from where we're at today.

但我們尚未宣布我們擁有的純運算能力。這是我們目前正在解決的問題，我們將在 2024 年期間對礦工的創始定價方式採取機會主義態度，我現在可以說的是 XP，以及迄今為止報告的任何 S1 礦機今年我們已宣布，我們已支付了這兩筆交易2024 年所需的所有付款。所以我們對今天的處境感到非常舒服。

The only planned CapEx on the infrastructure side is our is the $20 million relates to the Denton expansion, and we'll continue to evaluate future minor purchases as we go through as we go through that happens.

基礎設施方面唯一計劃的資本支出是與 Denton 擴建相關的 2000 萬美元，我們將繼續評估未來的小額採購。

Thank you.

謝謝。

This will conclude the question-and-answer session for today.

今天的問答環節到此結束。

So I would like to hand back to Steve Gilman for any closing remarks.

因此，我想請史蒂夫·吉爾曼（Steve Gilman）發表結束語。

Thank you very much, Gary, and thank you all for your attention and your interest in core scientific An archived version of this call. All SEC filings and relevant Company and industry news can be found on our website, core scientific.com. We wish you a good day and we look forward to speaking with you again following next quarter's results.

非常感謝您，加里，感謝大家對本次電話會議的核心科學存檔版本的關注和興趣。所有 SEC 文件以及相關公司和行業新聞均可在我們的網站 core science.com 上找到。祝您有美好的一天，我們期待在下一季的業績公佈後再次與您交談。

This concludes today's call and thank you all for joining. You may now disconnect your lines.

今天的電話會議到此結束，感謝大家的加入。現在您可以斷開線路。