Josh Siegler

Joshua Siegler from Cantor Fitzgerald asked for color on the exploration of a colocation model for the HPC business and about market dynamics and unit economics post-halving.

Answer

Co-Founder and Co-CEO Daniel Roberts explained that colocation is being explored, but the company must weigh the opportunity cost against owning and operating its own compute. Regarding post-halving dynamics, he noted the hash rate remains robust and reiterated IREN's focus on accretive organic growth, contrasting its $30 million per exahash build cost with the market's $135 million valuation, making organic growth a clear choice over M&A.

Asked about the strategy for timing capital deployment on new miners, considering potential price increases during a bull market, and whether diversifying into new verticals like AI would improve access to financing.

Answer

The company's primary focus is securing scarce energy infrastructure, which they see as the main bottleneck, not the availability of miners. They have over 1,000 MW of energy capacity under exclusivity and will time miner purchases to maximize returns, confident in their proven ability to scale operations. They confirmed that diversification creates different asset classes (e.g., data centers, GPUs) which attracts a wider pool of investors and enables more favorable project-level financing, lowering the overall cost of capital.

Josh Siegler of Cantor Fitzgerald inquired about Mawson's long-term strategic outlook on its self-mining versus hosting mix and asked for specifics on the new Ohio facility, including its power costs and access to energy demand response programs.

Answer

Founder and CEO James Manning stated that Mawson is refocusing on self-mining as new facilities come online, aiming to increase that proportion of its business. Chief Corporate Officer Tim Broadfoot added that the Ohio site operates in the PJM market with attractive index pricing and has access to the same curtailment programs as its Pennsylvania facilities. Manning also noted that market power rates range from $0.017 to the low $0.04s per kWh, with some power hedged at $0.036/kWh.

Josh Siegler from Cantor Fitzgerald inquired about Mawson's long-term strategy regarding the balance between self-mining and hosting, and sought details on the new Ohio facility's power costs and demand response program access.

Answer

Founder and CEO James Manning explained that Mawson is refocusing on increasing its self-mining operations, particularly as the Midland, PA facility comes fully online, though hosting remains a key part of the strategy. Chief Corporate Officer Tim Broadfoot added that the new Corning, Ohio facility will utilize attractive index pricing from the PJM market and has access to the same energy demand response programs as their Pennsylvania sites. Manning also noted that market power rates are competitive, ranging from $0.017 to the low $0.04s per kWh, and are sourced from 100% nuclear power.

Josh Siegler of Cantor Fitzgerald inquired about the current demand for hosting services and the company's progress in securing a new hosting partner. He also asked about the anticipated capital expenditures required to complete the construction of the Sharon, PA facility.

Answer

COO Liam Wilson responded that there is a substantial pipeline of hosting inquiries from both large and new miners, and Mawson is in the final stages of securing a partner. Wilson also clarified that the first 12 megawatts of the Sharon site are fully funded, and the company will seek a partner for the remaining 108 megawatts.

Josh Siegler of Cantor Fitzgerald inquired about the current hosting demand environment, particularly for the Sharon, Pennsylvania site. He also questioned the potential risks to Mawson's hash rate growth targets amidst low Bitcoin prices and asked for details on the capital required to meet these targets, including the use of proceeds from the CleanSpark asset sale and funding from hosting partners.

Answer

CEO James Manning explained that hosting demand is very strong, with significant inbound interest from miners displaced by competitors' bankruptcies, though Mawson is being cautious in selecting well-capitalized partners. Manning affirmed that mining remains profitable at current Bitcoin levels due to favorable power contracts in Pennsylvania and that the company is focused on cost-effective infrastructure build-out before committing to new hardware purchases. He also noted that the facility expansion is funded, with future miner acquisitions potentially financed by non-core asset sales to maximize capital efficiency. COO Liam Wilson added that the declining cost of mining hardware is a favorable factor.

Josh Siegler of Cantor Fitzgerald inquired about the current demand environment for Bitcoin mining hosting and asked for an assessment of the potential financial benefit from Mawson's energy demand response program for Q3 and beyond.

Answer

James Manning, Founder and CEO, confirmed that there is substantial inbound inquiry for hosting, making the company comfortable it could fill more capacity than it currently has. Regarding the energy demand response program, he stated that while he couldn't provide forward estimates, the program has a material impact by allowing Mawson to avoid peak pricing and generate additional revenue, which is expected to have a very positive effect on Q3 financials.

Josh Siegler from Cantor Fitzgerald inquired about the adoption trends and recent client wins for the LifeWallet platform. He also asked for an update on the demand letter initiative, specifically its initial success and how it might create more predictable revenue streams.

Answer

Founder and CEO John Ruiz explained that LifeWallet's real-time claims processing, using biometric and blockchain technology, is gaining significant traction as it addresses systemic issues like fraud and data disconnects. Regarding the demand letters, Ruiz noted that while accounting rules delay revenue recognition, the initiative is showing early success with a 2.1x recovery multiple on initial payments. He emphasized that data matching is improving predictability and that 49% of recent recoveries came from previously unidentified opportunities, highlighting significant upside.