Daniel Mullane

Daniel Mullane asked about Cango's strategy for addressing the High-Performance Computing (HPC) market, specifically whether it would be through cloud compute or a PowerShell model, and if the recent Bitcoin pullback could accelerate these timelines.

Answer

CEO Paul Yu explained Cango's differentiated approach in AI compute, focusing on flexible distributed compute units that integrate dispersed GPU resources into standardized pools for small and mid-sized enterprises, leveraging its distributed operational expertise and global energy footprint with an asset-light, edge-first strategy.

Daniel Mullane, on behalf of Kevin Dede, asked how Cango plans to address the High-Performance Computing (HPC) market, specifically whether through cloud compute or a PowerShell model. He also questioned if the recent pullback in Bitcoin prices could accelerate the timelines for these HPC ventures.

Answer

CEO Paul Yu explained that Cango is pursuing a differentiated approach in AI compute, focusing on flexible distributed compute units rather than large centralized data centers. This strategy involves integrating dispersed GPU resources into standardized compute pools and breaking them into smaller units tailored for small and mid-sized enterprises, leveraging Cango's distributed operational expertise and global energy footprint with an asset-light, edge-first strategy.

Daniel Mullane from H.C. Wainwright inquired if Antalpha anticipates an influx of new customers seeking financing for DATTs trading at a discount to NAV, potentially for stock buybacks. He also asked for general thoughts on rig demand over the past one to two months.

Answer

Herman Yu, Head of Strategy for Antalpha, stated that the company focuses on over-collateralized loans and risk management, not on how clients manage their treasury strategies or potential stock buybacks. He noted that machine loans were initially held off due to Bitcoin price volatility but are expected to pick up in the next one to two quarters, assuming stable BTC prices, especially with new machine models like the S23 and X21 XP entering the market.

Daniel Mullane from HC Rainbright inquired if the discounted NAV of many DATTs could lead to an increase in new customers seeking financing from Antalpha to buy back their own stock. He also asked for general insights into the demand for mining rigs over the past one to two months.

Answer

Herman Yu, Head of Strategy for Antalpha, stated that the company's loans are all over-collateralized, and their focus is on risk management rather than clients' treasury strategies. He emphasized that as long as clients have secured cryptos available, Antalpha will provide lending. Regarding rig demand, Yu mentioned that Antalpha had previously held off on machine loans due to Bitcoin price volatility. However, with Bitcoin prices stabilizing above $100,000 and new machine models entering the market, he anticipates an increase in machine loans over the next one to two quarters, assuming continued BTC price stability.