Bill Papanastasiou • Stifel Financial Corp.

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CEO Paul Prager stated that while the company has seen 'tremendous amount of demand' from multiple parties and will continue those engagements, the immediate focus is on executing for its new partners, FluidStack and Google. He emphasized the desire to grow with these world-class partners and address the CB5 option before determining the right customer for the Cayuga site.

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CEO Paul Prager identified the single most important milestone as the energization of the first Core42 building (CB-1), which he believes will be the catalyst to convert ongoing discussions into signed contracts. On mining, he stated there are no current plans for expansion, with the focus being on optimizing the existing fleet. Any near-term hash rate changes would come from efficiency gains rather than new capacity.

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CEO Paul Prager stated that TeraWulf holds a competitive advantage due to its large-scale sites, low-cost power, and unique energy expertise. Both Prager and CFO Patrick Fleury expressed high confidence in securing project financing, citing 'massive demand' from lenders, the engagement of top-tier banks like JPMorgan and Morgan Stanley, and a favorable financing precedent set by their customer, Core42.

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CEO Paul Prager stated that the current demand is just the "tip of the iceberg." He cited third-party projections that data center power demand will triple by 2030 and that overall power demand growth is accelerating from 1% to 5% annually. He argued that this creates a growing scarcity of power, positioning TeraWulf favorably due to its existing infrastructure and development expertise.

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CEO Ben Gagnon identified Sherbrooke as the highest priority for conversion in Quebec. He highlighted its 96 MW of power as their largest concentration in the province, offering significant scale. Gagnon also pointed to Sherbrooke's robust infrastructure, strong local political support, and community economic incentives as key factors making it the 'lowest hanging fruit' for HPC development in their Canadian portfolio.

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CEO Ben Gagnon reiterated a consistent outlook from mid-2023, having positioned the company for a 2025 Bitcoin bull run with its fleet upgrade. He now sees the best use of capital in HPC electrical infrastructure. A key lesson from the HPC transition was learning the higher level of quality control required, crediting advisors WWT and ASG for helping the company quickly adapt and understand the nuances of HPC development.

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CEO Ben Gagnon suggested that some high-profile peer deals may not be repeatable and that structures like triple-net leases are attractive. He stated that Bitfarms' remaining South American sites are profitable, cash-flow generating assets, which is a very different situation from the undeveloped Yguazu site. While open to compelling offers, divesting these operating assets is not a current focus.

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President and CEO Zachary Bradford explained that tariffs are part of their calculus, and they mitigate them by exploring the secondary market and capitalizing on the trend of manufacturers moving production to North America. CFO Gary Vecchiarelli detailed that in a rising Bitcoin price environment, they sell less BTC to cover OpEx, and in a falling one, they sell more, using derivatives to generate premiums and provide downside protection.

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Executive Zachary Bradford explained that competitors pivoting to HPC is advantageous as it reduces the global hashrate, thereby increasing CleanSpark's share of the fixed daily Bitcoin rewards. He affirmed that the company will continue to scale strategically and responsibly as long as it remains profitable and value-accretive.

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CEO Tyler Page explained that Black Pearl Phase 2 is being designed as a flexible "tier one-half" data center, enabling a rapid conversion to HPC in under six months. He noted that while hyperscaler interest was quieter in Q2, it significantly revived in July, and he believes they are increasingly viewing miners as viable partners for their power needs.

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CEO Tyler Page contrasted the two business models, explaining that while bitcoin mining offers high but cyclical returns, an HPC lease provides a stable, long-term revenue stream from a creditworthy tenant that is highly financeable with low-cost debt. For CapEx, he outlined approximately $200 million remaining for Black Pearl Phase 1. He noted that building out Phase 2 for bitcoin mining would cost an additional $260 million, a path they could pursue by raising capital if an HPC deal does not materialize.

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CEO Tyler Page explained that hyperscalers are showing an "outsized focus" on capacity available in 2025, typically screening for sites of at least 100-150 MW. He noted that securing sites is getting more challenging, which is why Cipher has moved earlier in the development cycle with its "3Ms" purchase options. Page highlighted a trend where grid operators are pushing hyperscalers to pair new load with new generation, which increases lead times and makes Cipher's existing interconnected sites more valuable.

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CEO Nangeng Zhang confirmed that Canaan has successfully run a small-scale trial production in the U.S. but noted the process is extremely complex and costly. The internal goal is to limit the cost increase to 15-20% over Malaysian production, but it is not yet commercially viable. CFO Jin James Cheng added that a larger-scale move is a dilemma dependent on U.S. customer demand justifying the higher costs.

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CEO Nangeng Zhang confirmed that as of February 2025, the company had over 6 EH/s deployed globally and is on track for its 10 EH/s North American target for the first half of the year. He stated that the company's operations are smooth and self-mining expansion will be managed to keep cash flow healthy. He acknowledged that Canaan's market share is small compared to competitors and that the focus is on gaining share. The call was disconnected due to technical difficulties before the answer was fully completed.

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Founder and CEO Michael Novogratz stated that while CoreWeave is an excellent partner, Galaxy's long-term strategy is to build a diversified portfolio with multiple tenants to manage credit risk. He confirmed the unallocated capacity is available for other clients. Regarding capital, he acknowledged that as a growth company, they will raise capital and are evaluating all avenues, including debt, converts, and equity, to find the optimal solution.

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Executive Christopher Ferraro called the SAB 121 repeal a major but not final step for institutional adoption, noting other regulatory work is needed. He highlighted GK8's selection as the tech backbone for the AllUnity euro stablecoin as a key win. He confirmed there was no prepayment for Phase 1 of the CoreWeave deal and expects CoreWeave to move quickly on its options to secure future capacity.

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Executive Christopher Ferraro explained that the decision is driven by economics. While increased power demand for AI could positively impact Bitcoin mining globally by constraining hash rate growth, the economics of the AI/HPC opportunity at Helios are 'clearly more interesting' for Galaxy. He indicated the move is a strategic shift, with the AI partner's demand expected to encompass the vast majority of the site's capacity, rather than a dynamic, ongoing allocation between the two uses.

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CEO Adam Sullivan clarified the 50-100 MW opportunities are with large enterprises that could absolutely scale further, potentially taking capacity across multiple sites over many years. Regarding the ASICs, he reiterated the expectation to receive them in the second half of 2025, noted the impact from tariffs should be insulated, and confirmed the contract is for a fixed price.

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CEO Jason Les reiterated the cash SG&A run-rate guidance of $30-$33 million per quarter, clarifying this excludes unpredictable, one-off expenses like litigation related to the Rhodium settlement. He stated that while open to any value-maximizing option, the company is increasingly focused on a build-to-suit data center model as the optimal path, which would likely involve a JV and a financing partner.

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CEO Jason Les emphasized that minimizing dilution is central to the Bitcoin Yield strategy, achieved through low-cost mining and seeking the least dilutive financing. On the data center build-out, he stated that while Riot has significant in-house expertise, it will be supplemented by both internal hires and third-party partners as required by the final deal structure.

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CEO Jason Les stated that demand for ESS Metron's products is very robust, limited primarily by facility size, and that they are exploring ways to increase capacity. Regarding Bitfarms, Les explained that as a large shareholder, Riot wants them to succeed and will continue to evaluate its position based on market dynamics and Bitfarms' execution, having made no final decisions on its long-term plans for the stake.

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Darcy Daubaras, Chief Financial Officer, explained that the company is laser-focused on executing the current 300-megawatt Paraguayan expansion before considering additional growth, although they remain open to future opportunities in Latin America. He clarified that SG&A will not scale linearly with hashrate growth, as the company expects to achieve significant economies of scale from operating larger facilities.

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President and CEO Aydin Kilic reiterated that the Paraguay expansion is a 'home run' due to its unique combination of low CapEx, low power costs, and large-scale green energy, which is a key part of their accretive growth strategy. Regarding GPU compute sustainability, Kilic explained that while hourly rates for GPUs decline over time with new hardware releases, the rate of decline is much slower than for Bitcoin ASICs. He emphasized that delivering high uptime and a good user experience are critical for securing long-term, stable revenue contracts.

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Jeff LaBerge and Haris Basit noted that European sites are attractive for HPC, potentially offering a longer opportunity window than the U.S., but the current focus remains on U.S. sites. Jeff LaBerge reiterated that the long-term capital allocation strategy is unchanged: to diversify revenue streams with stable HPC income alongside the more volatile Bitcoin mining, regardless of short-term mining economics.

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CEO Asher Genoot responded that the company's current focus is on net new megawatt expansion rather than immediate fleet upgrades, as existing machines remain cash-flow positive with the help of curtailment software. He confirmed that the strategy to use the Bitcoin stack for accretive growth opportunities has been reassessed, but noted that recent projects like the Salt Creek site were successfully funded through strong operational cash flow, preserving the Bitcoin treasury.

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CEO Asher Genoot responded that the immediate focus is on megawatt expansion and maintaining cash-flow positive operations with the current fleet, utilizing curtailment to manage profitability. He noted that while they are monitoring new miner technology, securing new power capacity is the primary bottleneck. Genoot confirmed the company will use its Bitcoin stack for accretive growth opportunities when the investment return is compelling, though recent growth like the Salt Creek site was funded through operational cash flow.

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