Chris Brendler

Chris Brendler questioned the 'gig of critical IT available today' mentioned in the presentation, specifically if it includes hosted sites and the potential for running AI loads there. He also asked about the expected size of projects within the Starwood partnership and their economic impact compared to current Bitcoin mining operations.

Answer

Fred Thiel, Chairman and CEO of MARA Holdings, clarified that the 'gig of critical IT' refers to additional capacity or readily available expansion at existing sites, where nameplate capacity often exceeds current operations. He stated that MARA is pursuing much larger projects than 40-50 MW sites. He deferred on specific economic numbers, noting that project economics will vary significantly based on the tenant, development costs, and MARA's ownership percentage (up to 50%), akin to real estate development where leases are secured before building on spec.

Chris Brendler, Senior Research Analyst at Rosenblatt, questioned the potential for MARA to run AI data center loads at sites currently in hosting mode, and sought clarification on the expected project sizes and economic impact of the joint venture compared to current Bitcoin mining operations.

Answer

Fred Thiel, Chairman and CEO of MARA Holdings, explained that existing hosted sites often have additional capacity or readily available expansion for AI loads. He stated that the joint venture is targeting 'much bigger things' than 40-50 MW projects, citing a Texas site with over 200 MW capacity as an example, but deferred specific economic details until tenant contracts are signed due to project variability.

Chris Brendler of Rosenblatt Securities conducted an in-depth interview covering MARA's strategic direction, including the balance between its core Bitcoin mining business and high-performance compute (HPC) ambitions. He questioned the company's sovereign data strategy, particularly its plans for international partnerships in regions like Saudi Arabia and France, and how this compares to the UAE venture. Brendler also probed MARA's 3-gigawatt power pipeline, the adoption of hydrocooling technology, quarterly production volatility, and the company's perspective on the growing trend of Bitcoin treasury companies. Finally, he asked about the long-term strategy for MARA's own substantial Bitcoin holdings, including active management for yield generation and future capital expenditure plans.

Answer

Chairman and CEO Fred Thiel detailed MARA's focus on being a category leader in Bitcoin mining while strategically expanding into sovereign data and AI inference through partnerships with governments and energy companies. He emphasized a disciplined growth strategy focused on controlling energy assets, targeting 50% of revenue from international sources by 2028. Thiel also addressed production volatility, attributing it to seasonal curtailment, and expressed caution about the 'frothy' market for pure-play treasury companies, highlighting MARA's identity as an operator. CFO Salman Khan explained that MARA actively manages its Bitcoin treasury to generate yield, with nearly a third of its holdings deployed in strategies to create cash flow. Khan also confirmed that the company's 75 exahash target for year-end is almost fully funded, with only $150 million in miner capital remaining.

Chris Brendler inquired about the consistent 1.25 PUE across TeraWulf's sites, asking why the company achieves such efficiency, and if avoiding large diesel generators contributes to this. He also sought clarification on the half-gigawatt of battery power mentioned for Morgantown.

Answer

Nazar Khan (Co-Founder and Chief Technology Officer, TeraWulf) attributed the 1.25 PUE to favorable geographic locations and significant investment in cooling design. He confirmed that brownfield industrial sites provide built-in power redundancy, eliminating the need for on-site backup generation. For Morgantown, Mr. Khan explained that battery storage allows the site to be a net energy supplier to the grid, acting as a critical peak demand shaver, with a target of 0.5 MW of storage per megawatt of load. Paul Prager (Co-Founder, Chairman, and CEO, TeraWulf) highlighted 'Critical IT Capacity: The Metric that Matters' as a key reporting focus.

Chris Brendler inquired about TeraWulf's consistent 1.25 PUE across sites, asking for insights into how they achieve such efficiency compared to competitors. He also asked about the redundancy strategy without diesel generators and the significance of the half-gigawatt battery power at Morgantown.

Answer

Nazar Khan, Co-Founder and Chief Technology Officer, explained that the 1.25 PUE is achieved through geographic location (northern half of the country) and heavy investment in cooling design. He noted that brownfield industrial sites provide built-in redundancy, eliminating the need for diesel generators. Mr. Khan clarified that the 0.5 MW of battery storage per MW of load at Morgantown aims to make the site a net energy supplier to the grid, acting as a critical peak demand shaver. Paul Prager, Co-Founder, Chairman, and CEO, emphasized reporting 'Critical IT Capacity' as the key metric for monetized execution.

Chris Brenner asked to quantify the benefit to financing terms from the new Google partnership, inquired if the annual expansion target was accelerating, and questioned if the prior 70% LTV financing target was still relevant.

Answer

CFO Patrick Fleury described the Google partnership as a 'game changer' for their credit profile, making prior financing targets like 70% LTV 'out the door' and no longer relevant. CTO Nazar Khan explained the 150-200 MW annual expansion target is based on financing and execution capacity, which could potentially increase following this transaction.

Christopher Brendler questioned if the Q1 power price spike was solely weather-related, whether that risk could be hedged in the future, and how important successful project financing would be for prospecting additional HPC clients.

Answer

CFO Patrick Fleury confirmed the spike was a rare, weather-driven event and that hedging is not cost-effective given the infrequency. CEO Paul Prager and CFO Patrick Fleury both emphasized that project financing is critical for recycling capital to fund growth. They are highly confident in executing a deal with a long-term financial partner, which they believe will be beneficial for future expansion, though the strength of the customer's credit is the primary driver.

Chris Brendler from Rosenblatt Securities inquired about the implications of tokenized equities for MIAX's business operations and strategy, both currently and in the future.

Answer

Thomas Gallagher, Chairman and CEO, stated MIAX has no current plans for tokenization but evaluates opportunities as a market disruptor, though it's not a primary focus for 2026. Shelly Brown, CEO of MIAX Futures and Chief Strategy Officer, added that tokenization discussions are mainly focused on equities clearing, a small part of MIAX's business, and not yet on options or on-chain trading technology.

Chris Brendler inquired about the strategy behind MIAX's recently proposed fee increases, their potential impact on market share among different customer segments, and the elasticity of these changes. He also asked about the implications of tokenized equities for MIAX's current and future operations.

Answer

Shelly Brown, CEO of MIAX Futures and Chief Strategy Officer, and Thomas Gallagher, Chairman and CEO, clarified that the primary fee change for March was the expiration of a non-transaction fee waiver for MIAX Sapphire trading floor members, which had been a generous moratorium since September. Regarding tokenization, Mr. Gallagher stated MIAX has no current plans but is evaluating opportunities, supporting market innovation while focusing on core business growth. Ms. Brown added that tokenization discussions are mainly centered on equity clearing, not options, and on-chain trading technology is not yet mature.

Chris Brendler asked about the trend in revenue per contract (RPC) for the options business, noting a slight dip this quarter, and whether MIAX sees an opportunity to increase RPC or if it's a natural outcome of other successes.

Answer

Thomas Gallagher, Chairman and Chief Executive Officer, discussed how MIAX's technology helps market participants provide greater liquidity, leading to increased volumes. Lance Emmons, Executive Vice President and Chief Financial Officer, confirmed mixed shifts between Q2 and Q3, a temporary regulatory fee reduction, and the company's focus on maximizing positive revenue even at lower capture rates. He also mentioned publishing capture rates for additional transparency.

Chris Brendler asked about MIAX's strong market share gains and the trend in revenue per contract (RPC), questioning if there's an opportunity to further increase RPC in the options business or if it's a natural outcome of other successes.

Answer

Thomas Gallagher, Chairman and CEO, MIAX Exchange Group, highlighted that MIAX's technology investments differentiate it, helping firms provide liquidity to retail customers and leading to increased volumes. Lance Emmons, EVP and CFO, MIAX Exchange Group, clarified that the slight dip in RPC was due to mixed shifts between Q2 and Q3, with no major fee changes except a temporary regulatory fee reduction. He reiterated MIAX's focus on maximizing revenue, even from business with lower capture rates, as long as it's positive.

Chris Brendler asked for an early read on the project-level financing deal for River Bend CapEx, given recent market volatility, and how Hut 8 views its Bitcoin holdings as a potential source of funding for the equity portion.

Answer

CEO Asher Genoot confirmed that the equity portion for River Bend is fully funded, and upon project financing completion, Hut 8 expects a multi-hundred million dollar cash-out, with ongoing 10% funding. He noted improved financing terms (90% LTC at SOFR + 240) and strong commitment from JPMorgan Chase & Co. and Goldman Sachs. Regarding Bitcoin, he stated that while it was crucial for financing credibility last year, the focus is now on removing Bitcoin exposure from the balance sheet, holding it instead through equity ownership in American Bitcoin, as Hut 8 prioritizes building businesses and driving down capital costs.

Chris Brendler at Rosenblatt Securities asked for an update on the project-level financing deal for Riverbend CapEx, considering market volatility, and how Hut 8 views its Bitcoin holdings as a potential source for the equity portion.

Answer

CEO Asher Genoot stated that the equity portion for Riverbend is already fully funded, and the project financing, once closed, will result in a multi-hundred-million-dollar cash-out for Hut 8, with ongoing 10% funding. He confirmed commitment from JPMorgan Chase & Co. and Goldman Sachs, noting an improved loan-to-cost ratio (90% LTC). He also indicated a shift away from holding Bitcoin on Hut 8's balance sheet, with future exposure managed through equity ownership in American Bitcoin.

Chris Brendler asked about the competitive environment for power, where pressure appears in Hut 8's pipeline, and the company's strengths in sourcing power. He also inquired about an updated pro forma ownership percentage for American Bitcoin following its ATM filing.

Answer

CEO Asher Genoot detailed Hut 8's strengths in behind-the-meter and generation assets, creating a competitive moat. He stressed discipline in deal-making to ensure long-term value and resilience. Regarding American Bitcoin, he confirmed consolidation will continue due to a super vote, and despite the ATM, dilution has been minimal, keeping Hut 8's ownership percentage roughly intact.

Chris Brendler asked about the competitive environment for power, specifically where competitive pressure shows up in Hut 8's pipeline, and how Hut 8 is positioned to win in sourcing and closing on power sources. He also asked for an updated pro forma ownership percentage of American Bitcoin and when it might become unconsolidated.

Answer

CEO Asher Genoot discussed three ways to consume power: front-of-the-meter, behind-the-meter, and net new generation. He noted increasing competition for front-of-the-meter, but highlighted Hut 8's unique expertise in behind-the-meter assets (half a gigawatt in its portfolio) and experience in running natural gas power plants (30% of its portfolio). Genoot emphasized discipline in deal-making, avoiding overpriced sites and ensuring long-term value creation. Regarding American Bitcoin, Genoot stated that Hut 8 maintains voting control due to a super vote, ensuring consolidation for the foreseeable future, and that dilution has been minimal, keeping ownership percentage roughly intact.

Chris Brendler from Rosenblatt Securities inquired about the prioritization of power assets between American Bitcoin and third parties, and plans for project financing for HPC developments.

Answer

CEO Asher Genoot explained that Hut 8's goal is to be 'long megawatts' to serve a variety of customers, including American Bitcoin and other third parties across different industries. He also confirmed they are actively working with lenders on project financing for new developments and will disclose details as deals materialize.

Chris Brendler of Rosenblatt Securities asked about the future of existing hosting contracts and whether American Bitcoin would be prioritized, and inquired about project financing for HPC sites.

Answer

CEO Asher Genoot stated that Hut 8's vision is to be 'long megawatts,' enabling them to serve a diverse customer base that includes American Bitcoin, other Bitcoin miners, and HPC clients. He confirmed they are actively engaged with lenders to secure project financing for new developments and will announce details as agreements are finalized.

Chris Brendler inquired about Cipher Digital's new hires to strengthen its team for the shift towards HPC and data centers, and the anticipated impact of ERCOT's new batch study process on interconnection visibility and certainty.

Answer

CEO Tyler Page explained that Cipher is adding depth to its construction, engineering, and operations teams, often recruiting senior talent from hyperscalers like Google and Apple. He highlighted the strategic hire of Lee Bratcher as Head of Policy and Government Affairs to navigate the Texas regulatory landscape. Page views the evolving ERCOT batch process as a positive development for serious operators like Cipher, expecting it to increase visibility and certainty for their well-positioned sites.

Chris Brendler asked about Cipher Digital's new hires and team expansion strategy to support the shift towards HPC and data center operations, and the anticipated impact of ERCOT's evolving batch study process on the visibility and certainty of interconnection approvals for sites in the queue.

Answer

CEO Tyler Page explained that Cipher Digital is adding depth of excellence to its construction, engineering, and operations teams, hiring senior talent from hyperscalers like Google and Apple to accommodate building multiple data centers simultaneously. He highlighted the strategic hire of Lee Bratcher as Head of Policy and Government Affairs to navigate the Texas regulatory landscape. Page views ERCOT's efforts to streamline the interconnection queue as positive for serious developers like Cipher Digital, increasing confidence in securing approvals for their mentioned sites.

Chris Brendler of Rosenblatt Securities asked for an update on the Barber Lake HPC deal timeline, the nature of its progress, and any exclusivity timelines with Fortress. He also sought to reconcile the rising power cost estimate with a stable cost of revenue.

Answer

CEO Tyler Page described the Barber Lake deal progress as a 'crab walk'—uneven but moving forward—and remains confident a deal will be signed this year, prioritizing the 'right deal' over the 'fastest deal'. He clarified the 3.1¢/kWh power cost is a forward-looking estimate including the new Black Pearl site, while recent stable cost of revenue reflects the historical mix dominated by the lower-cost Odessa PPA.

Christopher Brendler asked about the timing of the Fortress facility signing and if it has accelerated negotiations with HPC tenants. He also asked about the drivers behind the strong cost of revenue performance and the potential impact of tariffs on new rig deliveries.

Answer

CEO Tyler Page confirmed the Fortress deal was signed just days before the call, with the goal of accelerating the finalization of a tenant lease. On mining costs, he attributed the strong performance to the first full quarter of operating the newly upgraded, more efficient fleet at Odessa. Regarding tariffs, he mentioned ongoing discussions with manufacturers to mitigate the impact and expressed confidence in meeting projections, currently anticipating a 10% tariff.

Chris Brendler inquired about the momentum and growth potential of Bullish's options business, noting it has exceeded IPO expectations and asking how much bigger it could become in 2026.

Answer

Chairman and CEO Tom Farley stated that Bullish's options business has significantly exceeded expectations, growing faster than the broader crypto market. He attributed this success to their institutional focus, a single global order book, and significant margin offsets, which have allowed them to rapidly gain market share and become the clear number two Bitcoin options platform globally, with aspirations for the number one spot. Farley believes there is substantial growth potential remaining, primarily from the overall maturation of the crypto options market rather than just market share gains.

Chris Brendler inquired about the exceptional momentum of Bullish's options business, its potential for continued growth, and how much larger it could become in 2026 compared to earlier expectations.

Answer

Tom Farley, Chairman and CEO, explained that Bullish's options business capitalized on the observation that crypto options were a tiny market relative to the broader crypto space, with a strong belief in its long-term growth. He attributed its rapid success to focusing on institutions in a regulated setting, utilizing a single global order book, and offering significant cross-margin offsets. He noted that open interest, volumes, and customer counts are all increasing, positioning Bullish as the clear number two Bitcoin options platform globally, with aspirations for number one. He believes there is substantial growth left, primarily from the overall expansion of the crypto options market rather than just market share gains.

Chris Brendler asked for clarification on the monthly metrics regarding options spreads, questioning why they might not be higher than spot spreads, and sought color on the negative spread observed in perpetual futures in October.

Answer

CEO Tom Farley explained that options spreads are in early days, with ongoing experimentation to maximize total adjusted transaction revenue across all products. He attributed the negative perpetual futures spread in October largely to volatility, while noting continued progress in perpetual futures and the expectation that options activity will positively influence them.

Chris Brendler with Rosenblatt Securities asked for clarification on why options business spreads were not higher than spot in the early days and inquired about the negative spread observed in perpetual futures during October, specifically if it was volatility-related.

Answer

CEO Tom Farley explained that options spreads are in early days, with Bullish experimenting with pricing to maximize total adjusted transaction revenue per unit of volatility, noting that products often work together. He confirmed that volatility was largely the driver behind the negative perpetual futures spread in October, expressing hope that ramping options activity will positively influence perpetuals going forward.

Chris Brendler asked about the recent uptick in monthly spreads, especially in August, the sustainability of these spreads, and how they factor into Q3 guidance and the outlook for Q4, considering the implemented pricing changes.

Answer

Tom Farley, CEO and Chairman, explained that Bullish optimizes for revenue by running pricing experiments, aiming for a "sweet spot" that balances volume and revenue, rather than competing solely on price like retail platforms. David Bonanno, CFO, added that the implied September spread is consistent with August but slightly lower due to lower volatility, noting that while spreads have increased, they still have some sensitivity to volatility. He suggested August as a good benchmark for spot spreads going forward.

Chris Brendler asked about the recent uptick in spreads, particularly in August, their sustainability, and how they factor into Q3 guidance and the outlook for Q4.

Answer

CEO Tom Farley explained that Bullish optimizes for total revenue rather than just spread, running experiments to find a sweet spot between volume and revenue. CFO David Bonanno noted that the implied September spread is consistent with August but slightly lower due to lower volatility, and that while spreads have increased, they still retain some sensitivity to volatility. He suggested August as a good benchmark for spot spreads going forward.

Chris Brendler asked about the sustainability of the recent uptick in Bullish's spreads, particularly in August, and how this trend factors into the Q3 guidance and outlook for Q4.

Answer

Tom Farley, CEO and Chairman, clarified that Bullish optimizes for total revenue rather than just spread, continuously experimenting with pricing. He noted that the team has found a 'sweet spot' that balances volume and revenue. David Bonanno, CFO, added that the implied September spread in the Q3 guide is consistent with August but slightly lower due to lower volatility. He stated that August serves as a good benchmark for spot spreads going forward, though they remain sensitive to volatility.

Chris Brendler asked two questions: first, if the late 2028/early 2029 timeline for the new 830 MW power capacity would slow negotiations with potential tenants; and second, if Galaxy One's 8% yield is at risk from the Clarity Act and stablecoin rewards compromise.

Answer

President and CIO Chris Ferraro stated that while the 830 MW capacity has a later online date, negotiations will not be slow due to voracious demand for future power. CFO Tony Paquette confirmed that Galaxy One's 8% yield is not at risk from the Clarity Act, as it is an offering for accredited investors, controlled by Galaxy, and serves to diversify funding sources.

Chris Brendler asked two questions: first, about the negotiation timeline for the new 830 MW of power at Helios and whether it would slow the pace of current discussions; second, if Galaxy One's 8% yield product is at risk from the Clarity Act and the stablecoin rewards compromise.

Answer

President and Chief Investment Officer Christopher C. Ferraro stated that negotiations for the 830 MW would not take a year, emphasizing strong demand for 2028-2030 power and the need to secure partners quickly due to long lead times. CFO Tony Paquette confirmed that Galaxy One's 8% yield is not at risk from the Clarity Act, as it's an offering for accredited investors with controlled rates, diversifying funding sources.

Chris Brendler of Rosenblatt Securities asked about the long-term growth strategy for the data center business, including the pace of expansion, and sought updated thoughts on potentially separating the data center and digital asset businesses.

Answer

President & CIO Christopher Ferraro stated the growth strategy is methodical, focusing on excellent execution and building a base of high-quality assets before accelerating. Founder, CEO & Director Michael Novogratz added that the two businesses will remain under one roof as long as the combination creates value, but they would consider a split if markets indicated it was more accretive.

Chris Brendler asked about the initial impact of Vega, Webull's AI-powered decision partner, and whether there's an ongoing expense for running this AI or if it was developed entirely in-house.

Answer

Anthony Denier (Group President and U.S. CEO, Webull) stated that Vega was developed entirely in-house, so there is no increased cost. He reported phenomenal user engagement, with tens of millions of engagements for actionable trading or analysis, and noted regular user returns, believing it's the beginning of a new way retail investors engage with their portfolios.

Chris Brendler asked about the growth in funded accounts, particularly the shift in marketing strategy towards assets over accounts, and the outlook for funded account growth into 2026. He also inquired about the impact of crypto and prediction markets on Q3 DARTs and trading revenues, and the initial impact and expense structure of the new AI-powered decision partner, Vega.

Answer

Group President and U.S. CEO, Anthony Denier, projected increased funded account attribution from outside the U.S., noting that non-U.S. growth is now equalizing with or outpacing U.S. growth, driven by maturing international broker-dealers. He emphasized a focus on quality customers in the U.S. Group CFO, H.C. Wang, clarified that Q3 metrics included Webull Pay's AUM and funded accounts, but not its revenues, transaction volumes, or DARTs, which will be consolidated starting in Q4. Denier described Vega AI as a game-changer, developed in-house with no increased cost, providing portfolio analysis and trading insights, and showing phenomenal user engagement with tens of millions of interactions.

Chris Brendler asked about the significant improvement in Bitcoin mining gross margins and whether this trend is expected to continue with the full run rate of Phase 3. He also inquired about HIVE's capital strategy, specifically balancing capital needs between HPC and Bitcoin mining growth.

Answer

Aydin Kilic, CEO and President of HIVE, confirmed expectations for continued gross margin improvement due to increased hash rate (from 16.1 EH/s to 25 EH/s), more efficient S21+ Hydro machines, and cheaper electricity in Paraguay. He outlined the capital strategy, highlighting the attractive $250,000 per megawatt cost for the additional 100 MW in Paraguay and the use of vendor financing for the $360 million GPU CapEx, reducing reliance on equity or debt.

Chris Brendler inquired about the significant improvement in HIVE's Bitcoin mining gross margins quarter-over-quarter and whether this trend of declining hash costs and improving gross margins is expected to continue with the full operationalization of Phase 3. He also asked about HIVE's capital strategy, balancing the needs between HPC and Bitcoin mining growth, and any preference for one over the other.

Answer

Aydin Kilic, CEO and President of HIVE, confirmed that gross margins are expected to improve due to increased hash rate from the latest generation S21+ Hydro machines (15 joules per terahash) and cheaper electricity costs in Paraguay. He noted the average hash rate for the reported quarter was 16.1 exahash, now at 25 exahash. For capital strategy, he highlighted the attractive $250,000 per megawatt expansion cost for the additional 100 megawatts in Paraguay and emphasized vendor financing for the $360 million GPU CapEx, alleviating the need for significant equity or debt financing for GPU growth.

Chris Brendler asked about American Bitcoin's expansion strategy, focusing on ASICs, the initial performance of the uniform factor at the Vega site, and future plans for ASIC manufacturers, cooling, and efficiency.

Answer

Executive Chairman Asher Genoot detailed the Vega site's pioneering direct-to-chip liquid cooling and uniform factor, which delivers high ASIC efficiencies, noting a gross profitability of approximately $0.18 per kilowatt-hour. He explained their novel ASIC purchase concept, allowing Bitcoin to be pledged against purchases to maintain Bitcoin upside optionality. Future ASIC purchases will consider hash price assumptions, price per terahash, efficiency, and the roadmap for next-generation ASICs.

Chris Brendler asked for more details on American Bitcoin's expansion strategy, particularly concerning ASICs, including the initial performance of the uniform factor at the Vega site and future plans for manufacturers, cooling, and efficiency.

Answer

Executive Chairman Asher Genoot explained that the Vega site utilizes direct-to-chip liquid cooling and a uniform factor, achieving high efficiencies and a gross profitability of $0.18 per kilowatt-hour. He also described their novel approach of pledging Bitcoin against ASIC purchases to maintain Bitcoin upside. Future ASIC purchases will be evaluated based on profitability, price per terahash, efficiency, and the roadmap of next-generation ASICs.