Brian Dobson

Brian Dobson asked about American Bitcoin's capital allocation strategy between expanding the mining business and open market Bitcoin purchases, particularly how this might evolve approaching the next halving. He also sought insights into the competitive landscape and market consolidation among mining peers.

Answer

Asher Genoot, Executive Chairman, stated that capital allocation prioritizes increasing long-term Bitcoin holdings, with mining investments justified only if they yield more Bitcoin than direct purchases. Eric Trump, Co-founder and Chief Strategy Officer, highlighted American Bitcoin's unique position, mining at a 53% discount to spot in Q4, and its ability to grow Bitcoin holdings while competitors struggled.

Brian Dobson inquired about American Bitcoin's capital allocation strategy between growing the mining business and open market Bitcoin purchases, particularly how this might evolve approaching the next halving. He also asked for management's perspective on the competitive landscape and how the market might shake out given pressures on peers.

Answer

Executive Chairman Asher Genoot stated that the core driver for capital allocation is increasing Bitcoin holdings long-term, with every dollar spent on mining needing to demonstrate a greater increase in Bitcoin than direct purchases. Co-founder and Chief Strategy Officer Eric Trump added that the company focuses on daily dollar-cost averaging for Bitcoin accumulation, pursuing mining opportunities only when accretive due to structured deals, cheap energy, and strong returns. Eric Trump further highlighted American Bitcoin's differentiation from competitors, citing a 53% discount in mining costs to spot, a 58% increase in Bitcoin holdings, and a 53% gross margin in the quarter, which allowed the company to thrive even as difficulty rates fell.

Brian Dobson asked about American Bitcoin's strategy to compete for megawatts against high-performance computing (HPC) providers in the United States and what gives the company a special advantage in growing its portfolio.

Answer

Executive Chairman Asher Genoot explained that American Bitcoin benefits from community support for U.S.-based Bitcoin infrastructure and the distinct load profiles of Bitcoin compute versus AI data centers. He highlighted their ability to consume low-cost, curtailable power at sites like Vega, supporting the grid, which AI loads cannot do, thus providing a competitive edge.

Brian Dobson asked about American Bitcoin's strategy to compete for megawatts against high-performance computing (HPC) providers and its unique advantages for portfolio growth.

Answer

Executive Chairman Asher Genoot explained that American Bitcoin benefits from community support for US-based Bitcoin infrastructure and the distinct load profiles of Bitcoin compute versus AI data centers. He highlighted Bitcoin's ability to be a curtailable load, supporting the grid and consuming low-cost power, citing the Vega site's behind-the-meter interconnection as an example. AI loads, he noted, cannot offer this flexibility.

Brian Dobson asked if the rising CapEx commitments from companies like Amazon indicate broad sector demand for AI data centers from various hyperscalers, or if caution is increasing. He also inquired about CleanSpark's confidence in signing a contract soon, given existing construction commitments, and whether their Bitcoin mining operational strategy has changed in light of HPC expansion.

Answer

Matt Schultz, Chairman and CEO, confirmed an emphatic "yes" to escalating demand across hyperscalers, noting constant inbound inquiries. He expressed high confidence in securing a contract, attributing any "delay" to disciplined efforts in co-designing with offtake customers to ensure delivery and avoid punitive terms. Regarding Bitcoin mining, Schultz explained it remains a strategic tool for rapid monetization of new energy sources, allowing CleanSpark to secure sites ahead of hyperscalers and redeploy miners to profitable locations as data centers come online.

Brian Dobson asked if positive CapEx comments from companies like Amazon are indicative of sector-wide demand from hyperscalers or if caution is increasing. He also inquired about CleanSpark's confidence in signing a contract soon given construction commitments and the evolving thought process on operating Bitcoin mines in tandem with HPC expansion.

Answer

Matt Schultz (Chairman and CEO, CleanSpark) confirmed escalating demand across the sector and expressed high confidence in signing a quality lease soon, emphasizing a disciplined approach to design and delivery. He explained that Bitcoin mining remains a strategic tool for rapid power acquisition and monetization in new communities, allowing for miner redeployment once data centers are operational.

Brian Dobson asked about the recent stock volatility, the nature of conversations with potential HPC-AI clients, and the demand outlook for the HPC-AI space over the next two years. He also inquired about the strategy of pairing Bitcoin mining with HPC campuses for power usage versatility.

Answer

Matt Schultz, Chairman and CEO of CleanSpark, detailed extensive conversations with potential clients, including NVIDIA, noting strong inquiries for the Sandersville and Sealy, Texas sites. He expressed optimism about demand given CleanSpark's financial strength and operational track record. Schultz also explained that utilities are interested in blending AI/HPC with interruptible Bitcoin mining loads to provide load balancing services, indicating a dual-pronged strategy for many sites.

Brian Dobson inquired about the recent stock volatility, CleanSpark's discussions with potential clients, and the demand outlook for the high-performance computing (HPC) and AI space over the next two years. He also asked about the strategy for pairing Bitcoin mining with HPC campuses to provide power usage versatility.

Answer

Chairman and CEO Matt Schultz highlighted extensive conversations, including with NVIDIA, and strong inquiries for the Sandersville and Sealy sites, indicating robust demand. He emphasized CleanSpark's financial strength with an $800 million annual run rate and 55% gross margins. Regarding power versatility, Mr. Schultz shared insights from a utility CEO in Georgia, who expressed interest in blending AI, HPC, and Bitcoin mining to maintain interruptible load capabilities, suggesting a dual-pronged strategy for future sites.

Brian Dobson of Clear Street LLC followed up on the yield generation strategy, asking what percentage of the HODL balance would be utilized. He also inquired about the potential for selling power assets and whether Bitcoin treasury companies are accelerating broader adoption.

Answer

CFO Gary Vecchiarelli clarified that the plan is to use 40% of the HODL balance to generate a target 4% yield on the entire treasury, ramping up over the next year. President and CEO Zachary Bradford noted that while they evaluate all options for their power assets, Bitcoin mining currently provides superior returns. Both executives agreed that treasury companies are a positive tailwind for Bitcoin adoption.

Brian Dobson from Clear Street questioned if the company would consider using its Bitcoin holdings for share repurchases, the outlook for Bitcoin-backed financing, and the M&A landscape for mining assets as peers pivot to HPC.

Answer

CFO Gary Vecchiarelli noted that with the book value exceeding the market cap, equity is not an attractive funding source. CEO Zachary Bradford added that reinvesting in CapEx to mine more Bitcoin is the current priority over buybacks. Vecchiarelli confirmed strong market appetite for Bitcoin-collateralized lending. Bradford affirmed that bolt-on acquisitions remain a key interest, especially at advantageous valuations as competitors exit the space.

Brian Dobson inquired about the management philosophy driving CleanSpark's operational improvements and the potential for using in-kind exchanges to generate yield.

Answer

Executive Zachary Bradford attributed the company's success to a focus on the intersection of all key performance indicators, not just one, driven by the team's perseverance. Executive Gary Vecchiarelli noted that while Bitcoin ETFs are positive for adoption and could be part of a future treasury strategy, it is too early to determine their direct impact on the company's operations.

Brian Dobson asked which markets RedCloud finds most compelling for 2026 and 2027, specifically requesting a deeper dive into Nigeria's economic trends that support the 2026 revenue outlook. He also inquired about the importance of finding strong JV partners for market entry, particularly in Turkey, and whether RedCloud plans to follow a similar partnership-driven expansion strategy for future markets.

Answer

CEO Justin Floyd identified Nigeria as RedCloud's founding and largest market, citing its projected growth to the world's fifth-largest economy by 2075, the critical need for essential consumer goods despite macroeconomic challenges, and its role as a trading hub for neighboring African countries. He affirmed that RedCloud's AI-fueled trading infrastructure is well-suited for this market. Mr. Floyd emphasized the absolute necessity of strong JV partners for new market expansion, highlighting their significant local relationships and influence, which de-risk market entry and accelerate scaling. He confirmed that this capital-efficient, AI infrastructure licensing model with local partners is RedCloud's preferred strategy for future markets, including Turkey and Saudi Arabia.

Brian Dobson inquired about RedCloud's most compelling markets for 2026 and 2027, specifically asking for details on economic trends in Nigeria that support the 2026 revenue outlook. He also questioned the importance of finding a strong JV partner for the Turkey market entry and whether RedCloud plans to follow a similar partnership path for future market expansions.

Answer

CEO Justin Floyd highlighted Nigeria's long-term economic potential, its growing consumer population, the critical demand for essential goods despite microeconomic challenges, and its role as a trading hub for Africa. He emphasized the deliberate choice of JV partners in Turkey and Saudi Arabia, who possess significant local influence and relationships, enabling a capital-efficient and quick-scaling model for RedCloud's AI infrastructure licensing.

Brian Dobson, Managing Director of Disruptive Technology Equity Research at Clear Street, asked about Bit Digital's competitive differentiators in the broader market over the next two years and its preferred methods for raising capital.

Answer

CEO Sam Tabar highlighted Bit Digital's unique position, stemming from its successful history in Bitcoin mining and the IPO of its HTC business (White Fiber, 71.5% owned), deep technological involvement with Ethereum since 2017, and innovative financial engineering, such as unsecured convertible notes. CFO Eric Huang added that while unsecured convertibles are favored, Bit Digital maintains a conservative approach to leverage, closely monitoring its ETH holdings and utilizing its ATM program judiciously based on market conditions and MNAV.

Brian Dobson inquired about what differentiates Bit Digital from its competitors in the digital asset treasury space over the next two years and the company's preferred method for raising capital going forward.

Answer

CEO Sam Tabar highlighted Bit Digital's successful history, including profitable Bitcoin mining and the WhiteFiber IPO, his deep involvement with Ethereum since 2017, and their unique ability to execute unsecured convertible notes. CFO Eric Huang stated that convertible notes are always considered, but the company closely monitors leverage. He also mentioned the ATM program is used conservatively when market conditions and mNAV are favorable.

Brian Dobson of Clear Street LLC inquired about the growing institutional acceptance of Ethereum staking and how Bit Digital sees this business model developing over time.

Answer

CEO Samir Tabar responded that broader adoption validates the asset and benefits all participants. He emphasized Bit Digital's long history of actively staking ETH to compound value, contrasting it with static holdings. Tabar also highlighted the company's large stake in White Fiber as a unique source of potential non-dilutive capital to grow its ETH position, noting that ETH treasury companies offer investors access to staking yields that ETFs may not provide.

Brian Dobson from Clear Street requested a high-level perspective on how demand for data center colocation from hyperscalers and enterprise users is expected to evolve over the next six months.

Answer

Billy Krassakopoulos, head of the data center business, confirmed that they are seeing 'very strong and positive demand' from both hyperscalers and medium-sized neo clouds for capacity that is planned to come online later in the year, with more news expected in the coming months.

Brian Dobson inquired about the strategic rationale for potentially separating the Bitcoin mining business, asking if the primary goal was to simplify the company's narrative for investors. He also asked what aspects of the Enovum acquisition pipeline management finds most exciting.

Answer

CEO Samir Tabar affirmed that a separation is being studied to unlock the higher valuation multiples of the pure-play HPC business and to improve financing options by creating a 'cleaner story' for lenders wary of crypto. Regarding Enovum, Tabar highlighted the extensive development pipeline, and Enovum CEO Billy Krassakopoulos added that he is most excited about bringing new capacity online to meet strong 2025 customer demand.

Brian Dobson asked if Bitfarms sees broader opportunities to redeploy its Bitcoin mining megawatts to other locations or uses beyond the current HPC AI transition.

Answer

Ben Gagnon (CEO and Director, Bitfarms) stated that opportunities for redeploying Bitcoin mining assets elsewhere are few and not a good use of management's time. He reiterated that the best strategy is to convert estimated free cash flow from mining operations into cash for immediate reinvestment into HPC and AI.

Brian Dobson inquired about the evolution of the global hash rate over the next few years as more miners transition megawatts to HPC, and opportunities for broader megawatt redeployment.

Answer

Ben Gagnon (CEO) predicted global hash rate will continue to evolve, but public miners' shift to HPC/AI could create headwinds, leading to rotation to lower-cost, higher-risk jurisdictions (Middle East, Africa, Russia). He stated that redeploying Bitcoin mining assets elsewhere is not a focus, preferring to reinvest free cash flow into HPC/AI.

Brian Dobson from Clear Street LLC asked about the strategy to use the share repurchase program amid expected selling pressure and how recent positive data center announcements in Pennsylvania have impacted client conversations.

Answer

CEO Ben Gagnon affirmed their belief that the stock is undervalued and stated they will continue to actively buy back shares as long as the market disconnect exists. He noted that massive investments from major players like Amazon and CoreWeave near their sites validate the region's potential as an AI hub, which significantly strengthens their position in customer conversations.

Brian Dobson asked for a high-level characterization of the willingness of enterprises and hyperscalers to commit resources to near-term data center expansion, given some market chatter about a potential slowdown.

Answer

CEO Ben Gagnon described the demand for HPC data centers as 'insatiable,' dismissing short-term market headlines as irrelevant to long-term, multi-billion-dollar investment cycles. He emphasized that the primary bottleneck for growth in the AI sector is power, not chips, and compared the current environment to the early days of the internet, stating that Bitfarms sees no slowdown in demand or investment from potential clients.

Brian Dobson asked how Bitfarms frames its experience as a Bitcoin miner when speaking with potential HPC clients and what their reaction has been.

Answer

CEO Ben Gagnon acknowledged the different cultures of the mining and HPC industries, noting HPC's higher capital intensity demands more stringent diligence. He emphasized that Bitfarms has hired key internal experts and engaged strategic advisors to bridge this gap and apply their core competencies effectively. He reported that this professional approach has been received very well by potential partners.

Brian Dobson asked about the key themes expected to emerge in 2026 and what Hut 8 might look like in a year, given the business's evolution.

Answer

CEO Asher Genoot stated that 2026 will be a year of execution, where companies must deliver on promises to customers and the market to maintain credibility. He emphasized the importance of transparency in Hut 8's pipeline, segmenting projects from diligence to exclusivity, development, and management to help investors understand project probability and value. Genoot expects Hut 8 to show continued progress on announced and new sites, aiming for market leadership in the data center industry.

Brian Dobson asked about the key themes expected to emerge in 2026 and what Hut 8 might look like in a year, given its tremendous evolution.

Answer

CEO Asher Genoot stated that 2026 will be a 'year of execution' for data center providers and AI companies. He emphasized Hut 8's focus on delivering on its data center platforms and providing increased transparency into its development pipeline (diligence, exclusivity, development, management) to better inform the market.

Brian Dobson from Clear Street LLC asked for commentary on demand for HPC assets and what further regulatory progress is needed for Bitcoin in the U.S.

Answer

CEO Asher Genoot described HPC demand as robust but cyclical by customer, with a growing acceptance of regional diversity for large-scale campuses. On regulation, he expressed satisfaction with the current pro-business environment in the U.S., stating the company's focus is on execution rather than lobbying for specific new rules.

Brian Dobson of Clear Street LLC asked about the demand for HPC assets amid sector M&A and what further regulatory progress is needed for Bitcoin in Washington.

Answer

CEO Asher Genoot described HPC demand as strong but cyclical among customers, with a trend towards larger, geographically diverse campuses. On regulation, he expressed gratitude for the current pro-business environment in the U.S., stating that the company's focus is on execution rather than advocating for specific changes.

Brian Dobson of Clear Street inquired about WhiteFiber's strategy for additional data centers, comparing returns and client types for larger versus smaller projects, and what excites management most about industry growth through 2026-2027.

Answer

WhiteFiber President Billy Krassakopoulos and CEO Sam Tabar explained that larger projects typically attract household names, while smaller sites, often customer-driven, can offer "juicier" economics and immediate power availability with expansion pathways. They expressed excitement about the shift to high AI customer demand and WhiteFiber's proven retrofit model, which delivers 2x faster and 40% cheaper builds, giving them a competitive edge.

Brian Dobson questioned the expected returns for large versus small additional data center projects and the types of clients seeking each. He also asked what excites management most about industry growth through 2026 and 2027.

Answer

Billy Krassakopoulos, President of Data Centers, stated that household names typically seek larger projects, while smaller ones cater to AI users deploying private infrastructure, with decisions driven by customer demand. Sam Tabar, CEO, added that smaller sites often offer 'juicier economics.' Both executives expressed excitement about the industry's shift to significant inbound AI customer requests and White Fiber's growing reputation for building two times faster and 40% cheaper through its specialized retrofit model.

Brian Dobson asked about the returns on larger versus smaller data center projects, the types of clients seeking each, and what aspects of industry growth through 2026 and 2027 most excite White Fiber's management.

Answer

Billy Krassakopoulos, President of WhiteFiber, explained that household names typically pursue larger projects, while smaller projects cater to AI users deploying private infrastructure. He noted that smaller sites can offer 'juicier' economics but might involve less prominent counterparties, though still well-known. Site selection is primarily driven by customer demand and available capital, with a focus on immediate power availability and a pathway to future expansion for smaller sites. Sam Tabar, CEO of WhiteFiber, expressed excitement about the company's growing reputation for building 2x faster and 40% cheaper using its specialized retrofit model. He highlighted that White Fiber acquires facilities not initially marketed as data centers, converting them into Tier 3 data centers, which is a significant advantage given the execution risks of greenfield builds and the time-sensitive nature of AI technology deployment.

Brian Dobson questioned how the Google partnership would strategically alter discussions with future clients and whether it serves as a significant endorsement from a marquee player in the AI space.

Answer

CTO Nazar Khan noted the deal's unique structure addresses both capacity and financing, setting a new model. CEO Paul Prager added that he expects it to be seen as a major endorsement, highlighting that Google likely chose TerraWolf for its site infrastructure, execution on the Core42 project, liquid-cooling expertise, and experienced management team.

Brian Dobson asked about the near- and medium-term demand environment based on conversations with enterprises and hyperscalers, and also inquired about the outlook for global Bitcoin hash rates and TeraWulf's strategy to combat potential pressures.

Answer

CEO Paul Prager noted that near-term demand is strong for sites with ready power, and medium-term demand will be high as new generation struggles to keep pace. Regarding mining, he stated they can't control hash rate but can focus on low-cost production, with a long-term strategy to redeploy those megawatts to higher-value HPC. CFO Patrick Fleury added that the mining business proved resilient in a tough Q1 and is now operating profitably again.

Brian Dobson of Clear Street LLC asked about the next most impactful regulatory improvements for Bitcoin and what feedback the company has received from the buy-side on its recent preferred equity offerings.

Answer

Executive Chairman Michael Saylor identified clarifying the digital assets taxonomy (distinguishing securities, commodities, and tokens) as the most needed regulatory step. EVP & CFO Andrew Kang noted that demand for their offerings has grown with each IPO, attracting more institutional, retail, and high-net-worth interest, and mentioned potential for international offerings and filling out the yield curve.

Brian Dobson of Clearwater asked for commentary on the core drivers behind the recent uptick in the global Bitcoin hash rate, including its geographical sources and sustainability.

Answer

CEO Jason Les attributed the recent rise in global hash rate to a lag effect, where miners are now deploying hardware ordered six months prior when Bitcoin's price began to increase. He believes growth is global but highlighted that publicly traded miners in the United States continue to be significant contributors to the network's expansion.

Brian Dobson asked about the potential impact of the U.S. election on the green energy sector, the development of new distributor relationships, the progress and timeline for the Stellantis Phase 3 project, and the company's most exciting prospects for 2025 and 2026.

Answer

CEO Dan Brdar stated that the adoption of EVs and renewables is a global trend and that customers remain focused on cost and performance, mitigating concerns over U.S. policy shifts. CFO Tim Burns clarified that new distributors are primarily for demand creation and introductions, with large customers eventually handled directly. CEO Dan Brdar added that Stellantis is refocusing on its EV platform after internal distractions, with the B-TRAN module completion targeted for 2025. He expressed excitement about the significant volume potential from large global customers adopting B-TRAN technology.

The analyst inquired about the company's process for handling PFAS chemicals in light of recent EPA regulations. He asked how the chemicals are mitigated, whether this provides a competitive advantage over pyro-based recycling, and if competitors might need to cease operations under the new rules.

Answer

The executive stated that Li-Cycle's non-thermal process is a key advantage as it keeps fluorine in a solid, non-emitted form, unlike thermal processes which can release harmful fluorine-based binders into the air. This is seen as a significant competitive advantage, as competitors using thermal methods face challenges with fluorine emissions. While it's unclear if competitors would have to stop operations, the issue is a 'hot topic' that generates renewed interest in Li-Cycle's approach.

Brian Dobson of Chardan Capital Markets asked about the market feedback from potential customers following the U.S. Continental contract announcement and whether similar deals could be expected later in the year. He also inquired if Cyngn sees vehicle automation replacing or supplementing conveyor belt technology as a key opportunity.

Answer

VP of Business Development Ben Landen confirmed a positive response to the U.S. Continental news, noting it helps move customers along the adoption curve, and that the sales team is focused on securing more such success stories. Regarding conveyor belts, Chairman & CEO Lior Tal highlighted that autonomous vehicles offer greater flexibility than fixed conveyors. Ben Landen added that it's not an either/or situation, as their vehicles can also supplement conveyors by streamlining maintenance and repair operations in large facilities.