Martin Toner • ATB Capital Markets

Answer

CFO Patrick Fleury clarified that the company is now guiding to project-level Net Operating Income (NOI), which is a more appropriate metric than site EBITDA. CTO Nazar Khan declined to comment on FluidStack's confidential customer base. CSO Carrie Langlais explained the Cayuga valuation resulted from a competitive process with third-party bids, with the final deal approved by an independent committee at a discount to those bids.

Ask Fintool Equity Research AI

Answer

Executive Nazar Khan explained that the company is transparent with customers about costs. He noted that price sensitivity varies by customer type; for Neocloud players, the lease rate is a small portion of their total cost of compute, while enterprise customers can be more sensitive. Overall, he described discussions as constructive, with customers understanding that cost increases, such as tariffs, must be accounted for.

Ask Fintool Equity Research AI

Answer

CEO Paul Prager described the Cayuga integration as a robust process managed by independent board members and advisors, without providing a fixed timeline. Regarding Lake Mariner, he stated that the power application has been in the queue and approval is expected 'at any time,' noting a constructive relationship with state authorities.

Ask Fintool Equity Research AI

Answer

CEO Ben Gagnon responded that there are no barriers to signing a deal now at either Panther Creek or the Washington site, as power and land are secured; the timeline is customer-dependent. He stated the current growth focus is on executing at existing sites, particularly expanding Scrubgrass, not new acquisitions. First HPC revenue is tied to customer contracts, with power scheduled to be energized in H2 2026.

Ask Fintool Equity Research AI

Answer

CEO Ben Gagnon explained that the current financing is sufficient for either the first complete HPC data center or the entire site's powered land infrastructure. He anticipates that as development progresses, the company will be able to secure additional, lower-cost financing. The decision on buildout scope will be driven by customer demand and timelines, with an initial focus on foundational infrastructure like substations that serve either development path.

Ask Fintool Equity Research AI

Answer

CEO Ben Gagnon explained that a final decision on the Sharon site's use is needed by late Q4 2024 or early Q1 2025 to meet end-of-2025 deployment timelines, which he believes is sufficient time to procure necessary equipment. He confirmed Bitfarms is actively seeking more opportunities, particularly in the PJM region. Gagnon noted the PJM auction doesn't directly set their cost but confirms the increasing value of energy trading and grid stabilization programs in the region.

Ask Fintool Equity Research AI

Answer

Management stated that overall GMV performance remained strong through both April and May. They acknowledged the dynamic environment but noted it was too early to determine the full impact. They declined to provide specific performance data for China-based merchants but confirmed the Q2 guidance accounts for the current trade landscape.

Ask Fintool Equity Research AI

Answer

CEO Jason Les explained that the decision to sell or hold Bitcoin is evaluated continuously based on capital needs, with the goal of choosing the lowest-cost, least dilutive option at any given time. He also clarified that the newly acquired land does not require a new regulatory process, as it will utilize the power already approved for the existing substation, making the land and power fungible.

Ask Fintool Equity Research AI

Answer

EVP and Head of Corporate Development Jason Chung explained that the combination of E4A's higher-margin services business and an expected recovery in the legacy ESS Metron business should lead to significant margin improvement. He also pointed to near-to-mid-term synergy opportunities, such as cost savings and cross-selling, that could further enhance the margin profile.

Ask Fintool Equity Research AI

Answer

Executive Christopher Ferraro stated that the facility is being built to a true Tier 3 N+1 redundancy standard across all systems, which is a major driver of the $11-13 million per megawatt CapEx. He explained the 1.5 PUE is a peak design metric to ensure the facility can power the full IT load with redundancy during peak demand, such as on the hottest days, without any downtime.

Ask Fintool Equity Research AI

Answer

Founder and CEO Michael Novogratz and Executive Christopher Ferraro responded. They explained that specific deal terms are confidential until a definitive agreement is signed but characterized it as a long-term offtake contract. The partner has options for 100% of the Helios campus's power, implying a full transition from Bitcoin mining at that site. The project will be funded by nondilutive, project-specific construction debt, which is separate from general corporate financing. However, they noted the improving regulatory landscape should lower Galaxy's overall cost of capital for its markets business. They declined to provide specific CapEx figures at this time.

Ask Fintool Equity Research AI

Answer

CFO Asha Bakshani explained that payments margin compression is primarily due to converting customers from high-margin residual revenue to Lightspeed Payments, which increases gross profit dollars but lowers the margin percentage. President JD Saint-Martin and CEO Dax Dasilva added that there are no plans to sunset legacy products as they are profitable, have low costs, and contribute to overall EBITDA.

Ask Fintool Equity Research AI

Answer

Interim CEO Alessio Artuffo confirmed that pipeline trends are growing positively, driven by efficiency improvements in demand generation. He identified key drivers including strength in software/cybersecurity, reskilling needs from onshoring, demand for e-commerce capabilities, and strong growth in financial services. He also highlighted the significant and accelerating contribution from the government sector pipeline.

Ask Fintool Equity Research AI