Henry Hearle

Henry Hearle asked about the earliest shipping date and expected scale for the new A16 models, along with price and margin expectations. He also sought management's perspective on public Bitcoin miners winding down operations and increasing ASIC supply, and how Canaan is responding.

Answer

Chairman and CEO Nangeng Zhang indicated that A16 series samples would ship to selected customers by the end of the current month, with volume shipments commencing in Q1 2026. He noted the A16 XP's industry-leading efficiency and acceptable margins despite higher per-terahash costs than the A15. Regarding industry trends, Mr. Zhang acknowledged some miners reducing operations but does not foresee a global hash rate slowdown, emphasizing the distinct energy requirements for AI/HPC versus mining. He highlighted Canaan's focus on building AI-ready mining facilities and securing energy resources.

Henry Hearle asked about the earliest shipping date and scale for the new A16 models, along with expectations for pricing and margins. He also sought management's perspective on public Bitcoin miners winding down operations and increasing ASIC supply, and how Canaan is responding.

Answer

Chairman and CEO Nangeng Zhang indicated that A16 samples would ship to selected customers by the end of the current month, with volume shipments beginning in Q1 2026. He noted market-driven pricing and controlled per-terahash costs. Regarding the market trend, Mr. Zhang believes the global hash rate will not slow down in the near term, distinguishing energy needs for AI/HPC from Bitcoin mining, and emphasized building AI-ready mining facilities.

Henry Hearle, Equity Research Associate at B. Riley Securities, asked about Bit Digital's expectations for consolidation within the digital asset treasury space, its approach to opportunistic M&A, and further guidance on future staking yields beyond the current 3% annual rate.

Answer

CEO Sam Tabar emphasized Bit Digital's unique positioning with Ethereum holdings and a controlling stake in White Fiber (AI infrastructure), questioning the value of acquiring other plain-vanilla DATTs. He firmly stated Bit Digital's commitment to not selling its White Fiber stake throughout 2026 due to high conviction. CFO Eric Huang elaborated that while native staking yields are expected to remain around 3%, they aim for at least 4% from external managers, targeting a 10-20% boost over the native staking benchmark by evaluating risk-return strategies.

Henry Hearle asked about Bit Digital's expectations for consolidation in the digital asset treasury space, its approach to opportunistic M&A, and further guidance on staking yields beyond the current 3% annually.

Answer

CEO Sam Tabar stated Bit Digital is focused on its unique position with Ethereum holdings and 71.5% ownership of WhiteFiber, an AI infrastructure company, and does not see value in acquiring other DATTs. He also affirmed the company's strong conviction in WhiteFiber, committing not to sell its stake in 2026. CFO Eric Huang expects native staking to remain around 3% in the medium term, with a goal to achieve at least 4% yield from external managers, boosting overall yield by 10-20% compared to native staking.

Henry Hearle, on behalf of Nick Giles, inquired about the key drivers for the anticipated second-half EBITDA improvement, the macro factors influencing the newly acquired Phoenix Global, and the status of contract renewal discussions with SunCoke's largest customer.

Answer

VP of Finance & Treasurer, Shantanu Agrawal, explained that second-half performance will be driven by a normalization of the contract and spot coke sales mix, bringing EBITDA per ton back to the yearly average. He also noted logistics volumes are expected to recover in Q3. President and CEO Katherine Gates added that while more details on Phoenix Global will follow post-acquisition, its historical EBITDA remains a reasonable baseline, and the focus is on organic growth. Regarding customer contracts, she expressed surprise at public comments from Cliffs but confirmed that active renewal discussions are ongoing.

Henry Hearle of B. Riley Securities inquired about the key drivers for the projected EBITDA increase in the second half of 2025, the underlying assumptions for coke sales volumes, the long-term macro drivers for the newly acquired Phoenix Global, and the status of contract renewal discussions for the Haverhill facility with its largest customer.

Answer

VP of Finance Shantanu Agrawal explained the expected EBITDA ramp-up is due to a normalization of the contract-to-spot coke sales mix, targeting a $46-$48/ton margin, and a recovery in logistics volumes. CEO Katherine Gates added that Phoenix Global's growth will be driven by expanding services to new EAF customers and reiterated its ~$61M trailing EBITDA is a reasonable baseline. She also confirmed SunCoke is in active contract renewal discussions with Cliffs, despite recent public comments from the customer.

Henry Hearle of B. Riley Securities inquired about the key drivers for the projected quarterly EBITDA increase in the second half of 2025, specifically asking for assumptions around coke sales volumes. He also sought more detail on the long-term macro drivers for the newly acquired Phoenix Global and asked about the status of contract renewal discussions with SunCoke's largest customer for the Haverhill facility.

Answer

Shantanu Agrawal, VP - Finance & Treasurer, explained that the second-half EBITDA improvement is expected from a normalization of the contract and spot coke sales mix, with about 2.0 to 2.1 million tons of coke sales anticipated. He also noted a recovery in logistics volumes is expected. Katherine Gates, President & CEO, added that while full details on Phoenix Global will be shared post-acquisition, its growth will be driven by expanding services to new and existing customers, including EAF operators. Regarding the Haverhill contract, Ms. Gates stated that SunCoke is in active renewal discussions with Cliffs, expressing surprise at their recent public comments.

Henry Hearle of B. Riley Securities inquired about the key drivers for the projected 22% quarterly EBITDA increase in the second half of 2025, the underlying assumptions for coke sales volumes, the long-term macro drivers for the newly acquired Phoenix Global, and the status of contract renewal discussions with Cleveland-Cliffs for the Haverhill facility.

Answer

Shantanu Agrawal, VP - Finance & Treasurer, explained that the second half EBITDA improvement is driven by a normalization of the contract and spot coke sales mix, with an expected return to the average full-year EBITDA per ton of $46-$48. He also noted logistics volumes are expected to recover in Q3. Katherine Gates, President & CEO, added that while more details on Phoenix Global will follow post-closing, its ~$61M trailing EBITDA remains a reasonable figure, and SunCoke sees significant organic growth opportunities. Regarding the Haverhill contract, she expressed surprise at public comments from Cliffs, confirming that active renewal discussions are ongoing.

Henry Hearle, on behalf of Nick Giles, asked about the 50,000 metric tons of spare capacity at the Warrick smelter and what is preventing Alcoa from restarting it to capitalize on the high Midwest premium.

Answer

President, CEO & Director William Oplinger explained that restarting the idled fourth line at Warrick would require a substantial investment of approximately $100 million and would take about a year to complete. He stated that the company would need more certainty on the longevity of the current tariff environment before committing to the restart.

Henry Hearle, on behalf of Nick Giles, asked for an update on the potential sale of Casa Berardi, how higher gold prices are influencing the strategic review, and whether proceeds would be earmarked for debt paydown. He also inquired how the permitting timeline might impact the asset's valuation in any potential transaction.

Answer

Robert Krcmarov, President & CEO, stated that a sale is not a foregone conclusion and all strategic alternatives are being evaluated, with an update expected by the next quarter. He noted that while the permitting hiatus impacts valuation, the recent surge in gold prices provides a 'refreshed lens.' Russell Lawlar, SVP & CFO, confirmed that proceeds from any transaction would likely be used to delever the balance sheet.