Good morning, welcome to the Q1 earnings call for Hut 8 Mining Corp. My name is Cheryl, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. During that question and answer session, if you have a question, you can press star then one on your touch-tone phone. Please note that this conference call is being recorded. I will now turn the call over to Shane Downey. Sir, you may begin. Thank you, Cheryl. Good morning, ladies and gentlemen, and welcome to the 2021 first quarter earnings call for Hut 8 Mining Corp. Personally, it's been a busy first three weeks, and I'm very pleased to join the great team that Jaime has assembled at Hut 8. With that said, I will start out with some short disclaimer language and then jump into a summary of our Q1 results. I'll turn things over to Jaime, and we'll open it up for some Q&A. In addition to the press release that we issued earlier today, you can find our financial statements and MD&A on both SEDAR and shortly on our website at hut8.com. Unless noted otherwise, all amounts referred to are denominated in Canadian dollars. I'd like to remind you that comments made during this call may include forward-looking statements within the meaning of applicable securities legislation regarding the future performance of Hut 8 Mining Corp. and its subsidiaries. These statements are current expectations, and as such, are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include the factors discussed in the company's annual information form for the year ended December 31st, 2020. At this time, I will walk through our financial highlights. Hut 8 achieved record- level financial results in the quarter ended March 31st, 2021, based on the combination of strong mining results of 539 new Bitcoin and robust Bitcoin price appreciation well in excess of the company's marginal cost to mine. Total revenue was CAD 32.5 million versus CAD 12.7 million in the first quarter of 2020. In addition to our core revenue stream being digital assets mined, we also recognized CAD 1.4 million of hosting services revenue and CAD 530,000 of interest income associated with our Bitcoin lending arrangement with Genesis. We view these revenue streams as strategically valuable in that they provide us fiat currency cash flows, which helps to sustain our strategy to hold Bitcoin rather than sell Bitcoin to fund the fiat-denominated operating expenses. Revenue from digital assets mined was CAD 30.6 million, up from CAD 12.7 million in the first quarter of 2020. Revenue growth with respect to digital asset mining came notwithstanding a decrease in the quantity of digital assets mined caused by a combination of the halving event, which occurred in May 2020, and increased network difficulty. As a combined result of these factors, we can mine 539 Bitcoin in Q1 2021 versus 1,116 Bitcoin in the prior year period. However, the May 2020 halving was followed by a strong appreciation in the price of Bitcoin. The price of Bitcoin averaged approximately US$45,000 in the first quarter of 2021 versus approximately US$8,000 in the prior year period, so roughly a 5.5x increase. In terms of operating costs, site operating costs for Q1 2021 were CAD 14.6 million compared to CAD 12.6 million in the prior year quarter. Site operating costs consist primarily of electricity costs as well as personnel, network monitoring, and equipment repair and maintenance costs. Total costs increased due to Hut 8's continued expansion and adding more miners to its Bitcoin mining fleet. The cost of mining each Bitcoin for Q1 2021 was approximately CAD 27,000, compared with approximately CAD 11,300 in the prior year period, with the increase primarily due to the May 2020 halving event. Just for clarity, that cost to mine is a fully loaded cost inclusive of electricity, T&D, and associated fees, as well as personnel, repairs and maintenance, et cetera. Other corporate operating expenses, excluding non-cash share-based compensation expense for Q1 2021, were CAD 3.2 million compared to Q1 2020 of approximately CAD 700,000, with the increase resulting from a one-time payroll expense of CAD 1.2 million, higher professional fees, as well as headcount-driven increase in salary costs. All that said, Hut 8 achieved adjusted EBITDA of CAD 16 million for Q1 2021 compared to a loss of CAD 560,000 in Q1 of 2020, driven by Bitcoin mining profitability within the period. In terms of non-cash items, we recognized CAD 2.8 million of share-based compensation expense in the quarter, which relates to previously announced equity awards, primarily to the recently expanded management team. We will be reporting lower quarterly share-based compensation expense for the balance of 2021. We also recorded an unrealized gain on digital asset loan receivable of CAD 22.9 million, which relates to the mark-to-market on our 1,000 Bitcoin loan to Genesis. Given balance sheet classification as a loan, the related mark-to-market flows through our P&L rather than OCI. I will address the CAD 6.8 million income tax recovery, which relates to changes in deferred taxes versus December 2020, as part of my brief balance sheet commentary in a moment. Shifting to balance sheet and capitalization. We raised CAD 77.5 million of capital in early January and have put that capital to work, as Jaime will discuss in some detail. One of our first actions was to repay the US $20 million loan facility to Genesis, removing all leverage from our balance sheet and fundamentally de-risking our Bitcoin holdings. Balance sheet accounting remains relatively straightforward. We continue to mark our substantial Bitcoin holdings to market, which results in unrealized gains or losses. Given Bitcoin price action in Q1, they were obviously gains. Digital assets held in custody continue to mark-to-market through OCI on an after-tax basis. These assets had a fair market value of CAD 168 million as of March 31st. Digital assets loaned are separately classified on the balance sheet, and the corresponding mark-to-market gain flows through the P&L, as I previously mentioned. These assets had a fair market value of CAD 74 million as of March 31st. Our combined self-mined Bitcoin balance of over 3,200 Bitcoin had a value of CAD 242 million as of March 31st. Deferred tax liability of CAD 14.4 million is primarily a function of the unrealized gains associated with Bitcoin. The CAD 112 million balance of unrealized gains in OCI reflects a CAD 88 million gain relative to December 31st, 2020, net of a CAD 21.2 million deferred tax expense. The above-deferred tax charges results in the CAD 6.8 million income tax recovery that's hitting our P&L in Q1. Finally, I can confirm that as of May 12th, our total Bitcoin balance, both held in custody and loaned, stands at approximately 3,522 Bitcoin. With that, I'll turn things over to Jaime Thank you so much, Shane. It's great to have you on board. I also want to thank all of you on the line for taking the time to join us this morning. I want to thank our shareholders for staying strong and having faith in us during periods of volatility and growth. I also want to thank the Hut 8 team for enabling me to execute on my plan to build Canada's next big tech story. For those of you who may not know, I come from the traditional technology space, and my passion is helping create value by driving growth and innovation in great Canadian companies like Hut 8. I joined Hut 8 because I saw an opportunity to transform and drive innovation at a cutting-edge technology company sitting at the forefront of the next great technological revolution. My goal over the past five months has been to create a growth in revenue diversification strategy for Hut 8 and bring value to our shareholders. My focus has been on hiring a best-in-class leadership team to design a master plan to grow shareholder value regardless of digital asset volatility. A plan to drive innovation and corporate growth that puts the environment, our communities, and governance into priority view at our boardroom table. We've looked at creative ways to execute on our mission to HODL and earn fiat while building ancillary business lines and revenue generation, like growing out our hosting line of business. We started the year by raising capital and paying off our outstanding debt obligation, thereby fundamentally reducing exposure and strengthening our balance sheet. We leveraged our extraordinary balance in self-mined Bitcoin and initiated strategic partnerships with Genesis and subsequently Galaxy Digital, who are both providing us the ability to earn fiat income on our Bitcoin balance. We executed on diversifying our fleet so that we could continue to build our Bitcoin reserves and HODL, but also capitalize on the growing blockchain and application development ecosystem in Ethereum by purchasing best-in-class GPU-based mining equipment directly from NVIDIA. If you haven't taken the time to do so yet, I strongly encourage you to read our recently published FAQ to get a better understanding of this strategic initiative. I'd also like to take this opportunity to address the controversy sparked last night by Elon Musk regarding Bitcoin's energy consumption. For me, this needs to start with a conversation about value and how much value we think Bitcoin creates for society. Bitcoin's ESG footprint isn't just about the environment. On social equity, Bitcoin enables people to escape tyranny, censorship, financial violence, and improved access to financial sovereignty. On governance, Bitcoin is permissionless and runs on open-source software. On ESG, Bitcoin mining presents many opportunities to accelerate the global energy transition to renewables. For good ideas and true innovation, you need human interaction, conflict, argument, debate, and we think conversations like these are great ones to be having. Hut 8 is more than a digital asset miner. We are accelerators and innovators in the blockchain and big data ecosystem, and have a responsibility to build and explore alternative mining practices. The future of our industry and our commitment to our investors is to continuously push new creative ways of thinking, which drive our competitive advantage. Just like we invest in hardware to get ahead of supply chain constraints, the same thoughtful approach needs to be applied to our energy and ESG objectives. We signed a deal earlier this year with Validus Power with the goal of furthering not only Hut 8's power capacity, but our ESG initiatives and sustainable mining practices. This partnership enables us to utilize leading-edge technologies to harness unproductive energy sources and turn them into productive digital energy that can now be transported over space and time in the form of digital currency. We hired a head of sustainability, whose first priority is to build us a path to carbon neutrality. We joined the Crypto Climate Accord. The accord, inspired by the Paris Climate Agreement, is a private sector-led initiative for the entire crypto community focused on decarbonizing the cryptocurrency industry. This is the start of many initiatives we have planned in prioritizing the environment and insight into how we look at building the narrative and being leaders in sustainable mining practices. The fear, uncertainty, and doubt that the ecosystem is not capable of growth or innovation is misguided. The future growth of the digital asset mining ecosystem relies on competitiveness and innovation, on skills and productivity, with the environment as not only a priority but a shareholder in our business. With that, I'd like to ask Cheryl to open the lines for Q&A. Thank you. We will now begin the question and answer session. If you would like to ask a question, you do so by pressing star then one on your phone. If you are using a speakerphone, you need to pick up your handset first before pressing any numbers. Once again, to ask a question, please press star then one on your touch-tone phone. Our first question comes from Deepak Kaushal. You are open. Oh, hi. Good morning, guys. Thanks for taking my questions. I've just got a couple of detailed questions on the results and then a couple of big picture questions, if I may. Just to start off, Shane, welcome on board. Just a question on the utilization rate in Q1. Was there any kind of capacity lost that you didn't expect you to either whether in early January or as you were upgrading to the machines? I can take that one, Deepak, and also good morning, Deepak. Okay. We did face some curtailment of energy in February, primarily due to extreme weather conditions that were in Alberta at that time. I think, as you know, ourselves and most Bitcoin miners, during peak power conditions, when communities require energy, we allow the energy to go back to the grid and therefore go back to the community. During some harsh periods in January and February, we redirected power to the grid accordingly. Got it. Okay, that makes sense. That helps explain some of the numbers for me. On the cost side to that, I know that you guys have undertaken in the past some cost rationalization on the operations side. Then there's been some more increases with some new executives on board. Are you now at a fully baked cost structure? Was that fully baked in Q1, or what can we expect in terms of quarterly costs going forward? Directionally, if not quantitatively. Yeah, I think directionally, we have the team in place that we need to have in place. Okay. I assume that wasn't fully baked in in Q1, or would you expect the Q1 cost structure to be consistent going forward? I think Q1, and I'll defer to Shane on the detail. Q1 had some costs in it that we don't expect to repeat going forward. He referenced some of the share-based compensation items being not expected to repeat at these levels. Shane, I don't know if you have any other detail to add for Deepak on that. I was going to add the line item I would look to Deepak is professional fees, I do think is for sure heavy. Daniel Woods, who joined us a few months ago as well, has been leading a thorough governance review, as Jaime referenced it in her comments. There's definitely some cost flowing through there that won't be fully repeating. The caveat to that, as you can imagine, for sure, I need to dig in further with the team, and we'll really have a more refined quarterly view going forward. I expect from a salary and benefits perspective that we're more or less there, recognizing that there is in the CAD 1.9 million salary and benefit figure, CAD 1.29 of that I would truly characterize as one-time in nature that relates to payroll tax payments related to vested RSUs. Got it. In terms of the direct costs that are included in gross mining margin to operate the mines, is that fully optimized now that you've severed the professional service agreement with Bitfury, et cetera? I wouldn't say it's fully done yet, Deepak. As you know, we hired Jason Zaluski in February as our new Head of Technology, and we're still going through all of the nuts and bolts of our operations. I wouldn't say that's fully complete yet. The other thing, as I know you know, is we have equipment still coming in from MicroBT over the next few months, as well as when the NVIDIA cards come online also over the next few months. That's going to change the cost profile as well. Okay, that's helpful. Thanks for delving into those details for me. The two big picture questions I have, one is on M&A. Jaime, we've seen a bit of horse trading going on in the market in recent weeks. Wondering what your thoughts are on M&A in general from a big picture. How active do you want Hut 8 to be in terms of M&A, and what are your kind of high-level criteria or objectives from that perspective? Yeah, I think we have to think through that as a team. I wouldn't be comfortable commenting on that at this point, Deepak. Okay. I'll just jump to my last one. I'm just curious on good comments and thoughts on the decarbonization of the mining industry for crypto. I'm looking forward to seeing how you guys innovate through that. When I think about costs, like interim costs, like carbon taxes and carbon credits, are those something that will impact your financials in the near term? How should I think about that in the near term as you move towards a more fully carbon- neutral footprint? I think it's too soon to give you that answer with any definition, Deepak. Certainly, as we look at our expansion with Validus Power, we expect our costs associated with carbon to be much more controlled. Okay. I'll put those questions on the shelf then, and as you guys evolve with the new team and the new thinking, I'll come back with those. Thanks again. Yeah, absolutely. Anytime, Deepak. Thanks. Thank you. Our next question comes from Brett. Your line is now open. Thank you. Good morning, Brett. Good morning, Jaime. Hope all is well, and you had a good weekend with your family. Good, thank you. Good. I'll start with a few questions around expansion. Has there been a full transition from Slush Pool to Foundry for mining at this point? There was that announcement. Has that been fully transitioned at this point, exiting the quarter? Yes. We're fully transitioned to Foundry. Foundry's our largest pool. The majority of our hash rate is in the Foundry pool. We also have some with Luxor. I hope you saw the announcement of us in the Luxor pool. That also plays into our intention to mine Ethereum with the new NVIDIA card purchase. We'll use the Luxor pool to mine the Ethereum network, initially to continue to settle in Bitcoin through that pool. Great. The other question around expansion with NVIDIA is it a fully baked in rackable solution that you're getting from NVIDIA, or are you partnering with some other system integrator to do the build-out in the summer for it with the NVIDIA GPUs? All that has been announced so far, the actual direct purchase of the NVIDIA cards that we've purchased from NVIDIA, and we're still sorting through the further details associated with that program. Okay. There could be some more CapEx, slight more CapEx on that build-out then once it gets fully integrated in operationally over the course of the summer, then? Yes. Okay, great. Then I guess another operational metric that I'm looking at, because a lot of other miners do it, Bitfarms as an example, is they kind of do a petahash per megawatt. Do you know what your current kind of expectation is for that for efficiency once you get the new expansions in place? Like what the petahash per megawatt would be if you have that metric or where maybe you would move towards that for shareholders so they understand where your expansion is in the efficiency? Yeah. We don't have that metric. As you know, the GPU mining equipment is measured in gigahash. We do need to sort through how we kind of represent those two metrics. I can't answer it today, but it is something that we're sorting through, and we'll work to have for our next earnings results. Sure. Great. I'll just follow up with one more item. With regard to current capacity, I know there's indications on that you have nine institutional BlockBoxes in effect. Are those new build-out BlockBoxes, or are they like with those institutional clients that are outside of in-house mining, are those recent expansions? I believe 94 is what you currently indicated is in-house, and those nine would be separate from the 94 that you have in terms of BlockBox data centers. I think about it more in megawatts. We have 109 MW actively in production, 100 MW being used for self-mining, all currently ASIC-based, and 9 MW being used for hosting. Okay. That's it. Thank you, Jaime. No, no problem. Anytime. Thanks, Brett. Thank you. Our next question comes from Luke Cunningham. Your line is now open. Morning, Luke. Good morning. I want to thank you personally as a shareholder. The team that you've created is, I believe, second to none. Even with since the CAD 1.04 price. Amazing. Yeah. We're holding on tight. I just want to, again, thank you because our TFSAs are showing up really good, and I see green in more ways than one for Hut. Aw, thank you, Luke. I'll let you get back to your job. Keep driving the ship forward. That's so sweet. Thank you for taking the time this morning. Yeah. You're plagued with a lot of wonderful problems, but you're handling them very well. I think the team is marvelous. Oh, thank you so much. I really appreciate it. Thank you. Our next question comes from Kevin. Your line is now open. Good morning, Kevin. Good morning, Jaime. Thank you for taking my questions. I appreciate it. Of course. Could you just give us a little insight on the WhatsMiner, the M30Ss that are coming in? Are you going to replace existing equipment? Just some insight on that. Yeah. Initially, we will replace existing equipment because we are at maximum power capacity. As you know, we're looking to stand up the initial 35 MW of the new site through our partnership with Validus this fall. We will monitor conditions in the environment and see what the productive life is of the equipment that we take offline, to be replaced with the MicroBT units, over the next few months. Okay. With regard to Validus, where do you think you're going to go? Do you have land established for that? How should we think about sort of the footprint there and the infrastructure build? Yeah. We haven't announced the exact location yet, but I can tell you it will be in the province of Alberta. Okay. That'll make it easier from an operational perspective, given. Yeah. Okay. Yeah, exactly. It'll allow us to continue to take advantage of the tech shop that we have. I think as you know, we do our own on-site repair and maintenance of our equipment. We've got an on-site tech shop in Medicine Hat, which also does the repair and maintenance for our equipment in Drumheller. Again, we see a lot of value driving continued economies of scale by remaining in Alberta. We love, obviously, the province. The climate is incredibly favorable for Bitcoin mining and the local government, again, very supportive of this kind of innovation in the province. We're really, really happy just to continue to expand in Alberta and work with the team there. Well, thank you for giving us more insight on your growth trajectory. That's very helpful. Of course. Just a little bit more help on the timing. I know you talked to the fall timeframe, do you think that's before the end of the third quarter, or how should we think about that? I think we're working through. There's a lot of detailed planning to go into this, standing up this initial incremental 35 MW. I think a reasonable expectation would be the October, November timeframe. As I say, we're still very much going through detailed planning exercise right now. Okay. Can you speak to the pool fees at Luxor? I'm not familiar with that one and how they might compare with Foundry. Both Foundry and Luxor's pool fees, highly competitive in the space and have provided significant savings from what we've paid historically. At Slush. Okay. Thanks so much, Jaime. Thanks, Kevin. Welcome aboard, Shane. Thanks, Kevin. Thank you. Thank you. Our next question comes from Manvar Singh. Your line is now open. Good morning, Manvar. Good morning, Jaime. How are you? Very well, thank you. Hi. Thank you. Jaime, I was just wondering, can you provide some insight on the Validus deal in terms of, you guys have 100 MW that you guys are going to be taking on. You provided information on consumption for four of those megawatts with the recent NVIDIA purchase. Can you just fill us in on the other 96 MW? What are expansion plans? As I just said with Kevin, we're working through standing up the initial 35 MW. That 35 MW is what we are looking to stand up later this year, and then we'll build a path for there. This arrangement with Validus gives us up to 100 MW, and we do need to work through the timing associated with that full build out. The first 35 MW will come this fall. Okay. Sorry, I missed that. Is there any more information you can provide on the Validus deal in terms of how the profits or the generation of BTC is going to be divvied in terms of the supplier of the flare gas, Validus and yourself? Is there any information? We have very limited information on this deal so far. Yeah. There's quite a bit of information provided in the MD&A that was released this morning. I encourage you to look to that. There's not a split involved of Bitcoin, so it's more of a typical power purchase agreement, although we've got a rate buydown element in it so that our effective rate will be incredibly competitive. If you don't include the rate buydown, the rate is less than CAD 0.03, inclusive. We're really excited about this partnership and we pay energy costs as we traditionally would. Oh, wow. I didn't know it's CAD 0.03. That's really good, actually. A follow-up question from yesterday's update regarding Nasdaq. It said there's plans since you've applied since March. Has there been any back and forth? Where are we at right now? How long do you anticipate for us to get a better answer on that? Successful listing, unsuccessful listing. When do you anticipate to share that with shareholders? We anticipate as we get concrete information that we can continue to share, we will. At this point, I can't give any further guidance than what was released yesterday publicly. Okay. That's all for me. Thank you. My pleasure. Thank you. Thank you. Our next question comes from Sally. Your line is now open. Hi, Jaime, and the rest of the team. Thanks for the meeting. I have a couple of questions. I'll start with the first, surround the communication strategy for the corporate. We have been observing recently that there is a lot of voice around institution-first kind of strategy for the corporate. That comes with a kind of specific treatment that eventually go around information protection, when it comes to the Nasdaq, when it comes to other aspects of the corporate. I would love to understand how do you see this moving forward for the corporate in the past four months, given the fact that up till recently, I think it's still majority around retail investors. Again, the sentiment on the market is that lots of information, such as the Nasdaq listing, should have been communicated regularly to the people, although we do understand that there is a limitation around the regulatory constraints for the information to be shared. I'd like to take your views around that. Yeah. My views around that are, look, we very much err on the side of conservatism. We want to make sure that when we're communicating, we're confident in what's being communicated. We really look to the leadership of the larger publicly traded technology firms. We're trying to model a much more kind of conservative, traditional approach to how we interact and how we disseminate information. The second question would be around the timeline's accuracy. If I may, when initially the MicroBT announced, it was announced for six months. In today's announcement for MD&A, it was said in August, which is almost an eight months kind of a thing. It's becoming a kind of a thing that timelines do extend. I do understand that so far, for example, for NVIDIA, we're given summer, which is a period of time. It's not even a month kind of a thing. How would you see the communication around those kind of things? The major event that eventually are being tracked for by investors in order for us to cite the potential gains for the corporate by the event happening. With these slippages in the timeline, how do you think the communication could have been driven or could happen so we can at least have a clear figure around when things would happen, given the fact that they are communicated to us earlier on? Right. NVIDIA, we've communicated that we expect all of the equipment to be up and hashing by the end of August. With respect to the MicroBT equipment, the first batch of 400 units was delivered in February, and the balance we expect to be up and hashing by the end of July. The six months window being February through July. As you know, we do have to work very closely with the supply chain, given the constraints that exist in the supply chain. We are confident based on our most recent communications with our partners, that the end of July is still the timeframe that we should expect. We are expecting deliveries over the next few weeks. That's super. I would go back as a follow-up question to the earlier question asked around the operational costs. We could see that there is an increase on the investor and public relation cost, regulatory cost. What would drive regulatory cost to increase and public relations, given the fact that we haven't seen much being done on both fronts? I would answer that. Obviously, as we look, we've gone through the process of working with Nasdaq. There's incremental regulatory costs associated with that. We've actually done quite a bit of work with respect to marketing and public relations. As you would see through what's been happening on social media, we've been incredibly much more active in interactions with the media and in a variety of different events. That's where those costs would be related to. That's super. The next question is around the estimates again. Initially on, I think 16th of February, the company did announce that it can generate, given the current capacity and network conditions, around 6.8 Bitcoin per day. On 24th announcement, it was only 6.1. In today announcement with the quarterly result for the quarter, I think it was 5.9 Bitcoin per day. For the period between 24th of March and 12th of May, it's even, I think, 5.8.7 or 8, which is less than 6.8, given the fact that on the period after March, there was a reduction in the difficulty given what happened in China. We thought that eventually there will be an increased productivity for the month of April. How would you comment on that given the fact that the number was given initially at around 6.8 Bitcoin per day? Anytime those numbers are put out, they're based on the economics of the day at full capacity. As you know, those are variables that change on a daily basis. There are impacts to power. We spoke earlier about moving power to the communities when they need them for peak power purposes. Ideal conditions don't always exist. Of course, we have seen a lot of movement both up and down on the difficulty side. You need to run the estimates almost on a daily basis, given what's happening in the broader environment. They're very much for guidance purposes only, and they absolutely fluctuate on a daily basis based on what's actually happening in the field. Don't you see the disparity between 6.8 and 5.9 big, given the overall conservatism on the way that the corporate is being run? Because I thought when 6.8 was announced initially, that this was the conservative kind of thing, given that as we established initially, we are following a very conservative kind of approach. So I- On the communication side. Yeah. I believe that was an estimate on a day. We very much counsel that the estimates need to be made directly by investors using all of the variables and information publicly available. Yes, that's great. The next question is around the ESG score. Should we expect something around an ESG score for the corporate, given the recent announcement around the appointment of sustainability head? Lots of. Yes. I go on? Yeah. Ronnie just joined us a few weeks ago, and he's working very hard at establishing baselines and objective data that we can then set targets against. As these programs get built out, we'll absolutely communicate them. Our first step, obviously, is with hiring a dedicated resource to focus on this area for us and establish objective measurements that we can then build programs against. That's all very much a work in progress. That's super. Many questions around the strategy. Today, we are having 2,000 coin on the yield account for the Genesis. Given the announcement today, we have 1,500 coin hypothetically sitting idle. What's the plan? Why don't this kind of agreement with the Foundry eventually end up everything on a yield account? What's the corporate view around the number of coins which are significant, 1,500, that are sitting seemingly idle for now? Well, I think it's great that our shareholders are so excited about this pivot that we've made to start to earn yield on Bitcoin. This is something that only we started doing in January, as you know. It's an area that obviously Shane's only been with us now for a few weeks as well. Certainly on Shane's list of things to dig into is how can we best continue to put our Bitcoin to work and generate yield while it continues to accumulate in value on our balance sheet, assuming that Bitcoin appreciates in value itself. I can't answer what Shane's going to come back with, but it's great to hear that you support the strategy that we've employed to start generating yield with that balance. Certainly, it's something that we'll look into further under Shane's tenure. That's super. My last question is around the BlockBoxes. Just to understand, for any new expansion now that you are going to have, would we need to have another set of BlockBoxes from Bitfury, or would we have this part of the Validus agreement that they will be building the data centers within which the miner would be working? I'm not so much sure how to understand around the BlockBoxes' future. Are they going to continue with this part of the infrastructure for the mining? Yeah, we do really like the container-based system for our data centers. We're looking at what we would want to do as far as purchase of incremental containers for the new site. We do have some containers that, due to the better efficiency of some of our newer equipment, it's actually freed up some containers. We'll be able to move some of our existing containers that are no longer needed at our Drumheller and Medicine Hat sites. They'll be able to move to the new site. We will be able to repurpose some of our existing containers for that. Future expansion where new containers are required, we will look to industry partners and explore the different solutions now available for new containers. Thanks a lot for your patience. I would like also to thank the IR team. They have been very responsive with all the messages and communications that we have been sending. If I may take and talk on behalf of everyone, I think the whole team is performing very great, and we are watching for each step and announcement that you guys are doing. We are rooting for you. We'll be waiting for the next quarter meeting to see another impressive result update. Amazing. Thank you so much for your support and your compliments. It really means a lot. Thank you for your time this morning. Thank you. Bye. Thank you. Our next question comes from Zach Wood. Your line is now open. Good morning, Zach. Good morning, Jaime. Hi, everyone. I just wanted to ask a quick question on what your plans were for your fleet upgrades. Will legacy miners be sold at premiums during the bull market, or will you hold them in storage until your energy infrastructure is built out to accommodate them? We're actively exploring all of those options, and I can't answer it today because we haven't made a decision. Okay. Would you, if the price was right for those miners? Are you making me an offer, Zach? Maybe. I think you're trying to buy something from me right now. If you're open for it, sure. The prices are pretty high. I think I might wait for the bear market to buy any more miners. Zach, you think a bear market's coming, do you? A bear market's always coming, just don't know when. Well, I'm not a seller of equipment today, Zach, unfortunately. Okay. Well, that's good to know, too. All right. Thank you, guys. Of course. Thank you. Our next question comes from Mike Richards. Your line is now open. Good morning, Mike. Hey, good morning, Jaime. I just have a quick question for you. I remember hearing you talk earlier in January and February, you wanted to be the gold standard, and you were trying to diversify revenue streams away from mining. I just wanted to hear any thoughts or any plans you have ongoing. Not away, adjacent to mining. Mining is absolutely core to our business. As you know, we do have the hosting line of business. We've also expanded on the yield side now. I think you're up to speed with how that diversification is starting to play out, and it's still very much in support of our core strategy being mining. The other strategic nuance for us, which is new, is of course expanding into GPU-based mining and starting to mine the Ethereum network, which we think gives us a great opportunity for incremental optionality and diversification away from just being tied to the Bitcoin network and Bitcoin mining economics associated with ASICs directly. I think it's been a very busy four months as we've announced different portions of how that strategy's actually being executed again. Yes. Indeed. I do like the execution. I think the CMPs will provide value. Maybe I was making an assumption. I really thought you guys would try and diversify away from mining, keep it core, but try to do some other types of revenue streams to try and even out the revenues throughout bull cycles and bear cycles. Is there nothing at all in that plan to diversify away from mining? Hosting is a different type of revenue, right? I think we'll continue to look at where we can grow on the hosting side of the business. I think the best way for me to answer is, again, I've only been here five months. I think we've done a lot in the area of diversification, as I've just kind of rattled off again. I can't speak to what we might do next, but I believe we're charting that path through the execution you've seen so far. Okay. One last question I have. What is Hut 8's competitive advantage versus its peers for mining? Obviously, the Bitcoin mining economics means that as long as there's profits to be made mining, the network hashrate always goes up, right? People put on more and more machines. The business model is you need to continuously add capital to upgrade your fleet just to maintain your percentage of the whole network, right? Let's say you had 1% of the whole network, like I think you almost had last year. If the Bitcoin network doubles, you essentially only have 0.5% of the network hashrate. Effectively, Bitcoin mining, you always need to spend capital just to maintain the same network hashrate. How does Hut 8 create excess value for shareholders, moving forward, compared to other companies? Yeah. I think it kind of points back to what we just talked about. We're really proud of having the largest self-mined Bitcoin balance of any publicly traded miner. All 3,500 of our Bitcoin are Bitcoin that we mined, and we're actively putting to work through the yield accounts as we've talked about. Our strategic pivot with the NVIDIA purchase and going into GPU mining gives us optionality to mine other networks. As I think you know, our expectation of the 10,000 cards that we purchased from NVIDIA, from a power usage perspective, we expect that whole kind of fleet, if you will, to use less than 4 MW of power. It gives us optionality to mine. Obviously, we're going to start with Ethereum, but there are other networks that can be mined as well. It gives us the opportunity for some optionality and diversification away from being tied exclusively to the Bitcoin network economics. Okay. To kind of go further on that, let's say you want to start mining Ethereum, obviously the most profitable right now. Let's say they go proof of stake in a year or so. What are the margins on just doing typical data center work for that side once you switch over to that eventually? I definitely would point you to our FAQ. If Ethereum goes proof of stake partway through next year, we would look at something like Ethereum Classic, which is also very profitable in today's economics. That's kind of the optionality that's there. Okay. We aren't just tied to Ethereum when we make this investment in the GPU mining cards. That's one of the things that's really compelling about it. Okay. Well, thanks for answering my question. Yeah, anytime. Thanks for joining this morning. Thank you. We have a follow-up question from Manvar Singh. Your line is now open. Hey, Jaime. Sorry, I forgot to ask one more question. It's regarding your share price, actually. Since about 10 weeks ago, I'd say almost all miners have relatively gone down. Your biggest competitor, from what I see, is probably Bitfarms, just because they're on the TSX as well. Comparatively speaking, we've lost about 65% of shareholder value. What are your plans, aside from what you've said, to kind of correct that and get us back on our feet? Well, you certainly know all of my plans. I know. Is there any other information you can provide? It kind of feels like we're in the bear market right now as a shareholder. Look, unfortunately, I can't give you any incremental information over and above everything that we've shared today. Obviously, our Nasdaq intention announcement yesterday we think is important. We will continue to work to drive long-term value. That's the way we're really looking at making decisions on how we make investments, how we look at the growth of the business. It's all about the long-term health of the business and long-term value that we look to create for shareholders. Do you anticipate future dilution in order to raise capital to further expand? I can't speak to that at this point in time. All right. Thank you. No problem. Thanks again. Speakers, we have no further questions in queue at this time. Thank you, Cheryl. Thank you again, everybody, for joining this morning. I look forward to speaking to you again soon. Thank you, ladies and gentlemen. This concludes today's conference. Thanks for your participation. You may now disconnect.