Michael Donovan

Michael Donovan asked about the target critical IT megawatt per building or hall for Maryland and Kentucky phase build-outs, and if repeatable modules similar to Fluidstack's design would be used, along with the drivers for such sizing decisions.

Answer

Nazar Khan, Co-Founder and Chief Technology Officer, confirmed that the Fluidstack design of 168 MW critical IT capacity (roughly 200 MW gross) serves as a base building block. He stated that designs with Fluor for Kentucky and Maryland incorporate this repeatable module, with Kentucky's 380 MW net capacity comprising a couple of these buildings.

Michael Donovan asked about the target critical IT megawatt per building or hall for Maryland and Kentucky phase build-outs, and what drives that sizing decision, specifically if repeatable modules similar to Fluidstack are being considered.

Answer

Nazar Khan (Co-Founder and Chief Technology Officer, TeraWulf) explained that the 168 MW critical IT capacity (Fluidstack's base design) is the typical building block, translating to a little over 200 MW gross capacity. He confirmed that discussions with customers and designs with Fluor incorporate this roughly 200 MW gross / 160 MW+ net critical IT megawatt block.

Michael Donovan asked how IREN plans to ramp up construction phases for Sweetwater, comparing it to Childress' 50-megawatt tranches, and requested more color on the existing assets, long-term lead assets needed, and additional permitting or studies required for the Oklahoma site build-out.

Answer

Kent Draper, Chief Commercial Officer, confirmed a phased build-out for Sweetwater, aligning with customer demand, capital, and construction pace, which is currently the primary constraint. For Oklahoma, he stated the 2,000 acres of land are secure, adjacent to a major utility substation, with 1.6 GW power secured, and upcoming work includes master planning and detailed local permitting, with power availability from 2028.

Michael Donovan from Compass Point asked about the planned phasing for construction at Sweetwater, assuming a smooth ERCOT batch process, and requested more color on existing assets, long-term lead assets needed, and additional permitting/studies for the new Oklahoma site.

Answer

Kent Draper, CCO, stated that Sweetwater will have a phased build-out, aligning with customer discussions, capital availability, and construction pace, which is currently the primary constraint. For Oklahoma, he confirmed 2,000 acres of secured land adjacent to a major utility substation with 1.6GW of secured power, with master planning and detailed local permitting ongoing for power availability from 2028.

Michael Donovan, a Senior Research Analyst at Compass Point, asked about IREN's cloud software stack and customer stickiness. He also inquired about the communication between Sweetwater One and Two sites once live, given the completed design work for a direct fiber loop.

Answer

Chief Commercial Officer Kent Draper explained that IREN's customers, primarily advanced AI and software companies, prefer a bare metal offering for raw compute and performance, layering their own orchestration platforms. Co-Founder and Co-CEO Daniel Roberts added that this approach allows IREN to focus on scale. Kent Draper also clarified that the direct fiber loop between Sweetwater One and Two provides additional optionality for customers requiring large-scale deployments, enabling the 2 gigawatts to function as a single, integrated campus.

Michael Donovan inquired about IREN's cloud software stack and customer stickiness, specifically regarding demand for bare metal versus layered software offerings. He also asked about the communication between Sweetwater 1 and 2 once live, given the direct fiber loop design.

Answer

Kent Draper (Chief Commercial Officer, IREN) stated that most customers, being highly advanced AI/software companies, prefer a bare metal offering for raw compute and performance, layering their own orchestration. Daniel Roberts (Co-Founder and Co-CEO, IREN) added that focusing on bare metal allows IREN to pursue scale and monetize its platform. Kent Draper explained that the direct fiber loop between Sweetwater 1 and 2 adds optionality for customers seeking scale, allowing 2 GW to operate as an individual campus despite physical separation.

Michael Donovan inquired about Correntis's competitive advantages as a liquid cooling solution, especially in light of NVIDIA's recent discussions regarding liquid cooling for its Rubin platform.

Answer

Wes Cummins, Chairman and CEO, highlighted Correntis's cold plate technology, which features specially designed patterned cold plates with microchannels that map individual chip heat points. This technology is designed to efficiently cool chips with increasing power density (e.g., 1kW to 3x or 5x power) using the same amount of liquid, effectively future-proofing data center infrastructure for high-density AI workloads.

Michael Donovan asked about the supply chain for long-lead equipment like transformers and generators, specifically if lead times or pricing have shifted materially in the past six months. He also sought clarification on how much additional funding, if any, would be needed for Polaris Forge 1 beyond the Macquarie financing.

Answer

CEO Wes Cummins stated that the company secured long-lead equipment two years ago by buying out manufacturing capacity, thus avoiding significant pricing inflation or stretched lead times, unlike the broader industry. He confirmed that between the Macquarie financing and project finance, no additional funding is expected from the company for Polaris Forge 1.

Michael Donovan asked about the supply chain for long-lead equipment like transformers and generators, specifically if lead times or pricing have shifted materially in the past six months. He also sought clarification on whether Polaris Forge 1 would require any additional funding beyond Macquarie and project finance.

Answer

Wes Cummins, Chairman and CEO, noted industry-wide stretched lead times but stated Applied Digital secured manufacturing capacity two years ago, mitigating pricing inflation and lead time issues for their specific needs. He clarified that Polaris Forge 1 would be fully funded by Macquarie and project finance, with no additional company contribution expected.

Michael Donovan, on behalf of Kevin Dede of H.C. Wainwright, questioned customer turnover and pricing trends in the Cloud Services business and asked about the company's efforts in engineering heat recirculation solutions.

Answer

Executive Wesley Cummins reported that GPU pricing has remained stable and the company continues to expand with its largest customer. He noted a potential need to swap out one customer but expressed confidence in backfilling the demand. Regarding heat recirculation, he confirmed they are actively exploring agricultural applications, such as greenhouses, for the liquid-cooled Ellendale facility, with potential deployment in calendar 2025.

Michael Donovan asked about the remaining inventory for the A15 series and the expected mix of A15 and A16 orders for Q2 2025. He also requested more details on the growth opportunities and progress of pilot projects in Canada and Japan.

Answer

CFO Jin James Cheng stated that Q3 inventory of $200 million reflected strong Q4 demand, with A15 inventory expected to be lower in Q1, and A16 mass delivery anticipated in Q3 2026. Chairman and CEO Nangeng Zhang elaborated on pilot projects in various regions, emphasizing their goal to validate technical and business models, with potential for scale-up, such as the Canada project expanding to 20 MW by mid-next year.

Michael Donovan asked about the remaining inventory for the A15 series and the expected mix of A15 and A16 orders for Q2 2025 guidance. He also requested more details on the pilot projects in Canada and Japan, including their growth opportunities.

Answer

CFO Jin James Cheng stated that Q3 inventory, including raw materials, was approximately $200 million, reflecting strong Q4 demand, and anticipated lower A15 inventory in Q1 2026. He expects A16 mass deliveries in Q3 2026, with early deliveries in late Q2, while A15 production will continue. Chairman and CEO Nangeng Zhang elaborated on global pilot projects, including those in Canada and Japan, emphasizing their goal to validate technical and business models rather than immediate financial returns. He noted low power costs and decent project-level gross margins, with potential for scaling up, such as the Canada project expanding to 20 MW by mid-2026.

Michael Donovan, on behalf of Kevin Dede, asked for more clarity on self-mining expansion plans and whether the U.S. tariff situation has led to an increase in rig orders for May compared to April.

Answer

CEO Nangeng Zhang detailed self-mining progress, noting total deployed global hash rate reached 8.15 EH/s, with strategic operations in Ethiopia providing a hedge against U.S. uncertainty. He confirmed that while non-U.S. orders have been strong in Q2, U.S. demand remains suppressed with no signs of recovery due to tariffs. CFO Jin James Cheng added context on the direct cost impact of the tariffs on U.S. miners.

Michael Donovan asked to quantify the premium on dollar per kilowatt for power secured in Pennsylvania or Washington versus Texas, and for more details on the regional campus strategy for connecting data centers.

Answer

Ben Gagnon (CEO) explained that dollar per kilowatt premiums vary by timeline, location, and risk. He estimated $140-$150/kW/month for Panther Creek today, potentially $180/kW/month if build risks were removed, emphasizing maximizing this for profit margin and multiple expansion. He described Amazon's regional campus strategy, where facilities within 300 miles (like Quebec sites within 90 minutes of Montreal) can achieve <2ms latency with direct fiber.

Michael Donovan asked for more details on Bitfarms' strategy of connecting data centers to function as one campus, specifically regarding the impact of distance between facilities on compute performance and latency.

Answer

Ben Gagnon (CEO and Director, Bitfarms) explained that Bitfarms is adopting Amazon's regional campus strategy, where facilities within a cost-effective range (e.g., 300 miles) can be connected via direct fiber to reduce latency. He noted that Bitfarms' Montreal facilities are much closer (within 90 minutes), allowing for sub-2 millisecond latency with direct fiber, which is crucial for high-end GPU performance and offers scalability benefits in a province where new megawatts are hard to secure.

Michael Donovan of H.C. Wainwright & Co., LLC asked for clarification on the Bitcoin mining capacity at the newly acquired Mississippi site, specifically how much capacity would be available after deploying existing miners from storage and what the plans were for purchasing new miners.

Answer

Chairman & CEO Bruce Rodgers and CFO Richard Russell explained that miners currently in storage would be fully utilized at the Mississippi site. Rodgers confirmed that the company will need to acquire additional miners to fully utilize the expanded capacity, which will total 26 megawatts across all sites once expansions are complete.

Michael Donovan, on behalf of H.C. Wainwright & Co., asked for updates on the Oklahoma site build-out, current plans for Texas, the status of unplugged miners following the S21 sale, and the geographic focus for new 5-20 megawatt sites.

Answer

Executive Bruce Rodgers clarified that Texas expansion is not a short-term focus due to a counterparty issue, while the Oklahoma expansion is on schedule. CFO Richard Russell added that for new site selection, the company is currently focused on opportunities in Oklahoma where they have favorable power agreements, contrasting with the situation in Texas.

Michael Donovan from H.C. Wainwright sought more clarity on the deployment of the remaining 18 exahash of computing power, including the finalization of the Ursalpha deal and its timeline. He also asked if Cango plans to use its Bitcoin holdings for lending or to earn yield.

Answer

CFO Yongyi Zhang clarified that the 18 exahash deal is expected to close by the end of July, with finalization pending the resolution of a separate PRC deal at an upcoming shareholder meeting. Regarding the 'Mine and Hold' strategy, Zhang stated the current priority is accumulating more Bitcoin, but the company will consider yield-generating activities once its holdings reach a sufficient scale.

Michael Donovan of H.C. Wainwright sought more clarity on the deployment timeline for the remaining 18 exahash of computing power and asked if the company plans to use its Bitcoin holdings for lending or to earn yield as part of its HODL strategy.

Answer

CFO Yongyi Zhang clarified that the 18 exahash deal is expected to close by the end of July, with finalization pending a shareholder meeting regarding a separate PRC deal. Regarding the HODL strategy, he confirmed the current focus is on accumulating Bitcoin, but the company will consider yield-generating transactions once its holdings reach a sufficient scale.

Michael Donovan inquired about the sustainability of recent cash flow improvements, sought details on the planned 2025 expansion into new verticals, and asked about the company's strategy for international expansion.

Answer

CEO Waqaas Al-Siddiq explained that the positive cash flow trend is sustainable due to expected margin improvements and prudent reinvestment in commercial growth. He clarified that vertical expansion includes launching complementary cardiac services and partnering to enter adjacent specialties like pulmonology. Regarding international growth, Al-Siddiq stated the strategy is opportunistic and partner-driven, with the primary focus remaining on the U.S. market, though Germany and Japan are key potential markets.

Michael Donovan inquired about the sustainability of Biotricity's recent free cash flow improvements, sought details on the planned 2025 expansion into new verticals, and asked about specific geographic targets for international expansion in 2026.

Answer

Executive Waqaas Al-Siddiq stated that cash flow sustainability will be driven by continued margin improvements and prudent reinvestment into commercial growth. He clarified that new 'verticals' include expanding the product portfolio for cardiologists and partnering in complementary fields like pulmonology and neurology. Regarding international expansion, Al-Siddiq emphasized a U.S.-first focus, explaining that any international moves would be opportunistic and partner-driven rather than building a direct presence.

Michael Donovan inquired about the predictive capabilities of Biotricity's Cardiac AI, the drivers behind the significant SG&A reduction, the rationale for the company's largest-ever inventory order, the market status in Canada, and specific opportunities within the new neurology and pulmonology partnerships.

Answer

CEO Waqaas Al-Siddiq explained that the Cardiac AI focuses on early detection of complex arrhythmias to prevent costly hospitalizations and improve patient outcomes. He attributed the 35.5% decrease in SG&A to a combination of economies of scale, a more efficient account management team, and a sales force refocused on larger GPO-related deals. Al-Siddiq stated the large inventory order provides all necessary assets to service new and upgrading customers, securing the company's path to profitability. He also noted that Canadian distribution partnerships are beginning to generate revenue and that the neurology and pulmonology initiatives are active, revenue-generating, and proving the thesis of targeting patient populations with cardiac comorbidities.

Michael Donovan of D.A. Davidson & Co. inquired about Biotricity's strategic expansion into the pulmonary and neurology fields, the status of ongoing pilot programs, the impact of U.S.-based GPO partnerships on international growth in markets like Canada, and expectations for future gross margins.

Answer

Executive Waqaas Al-Siddiq explained that the expansion into pulmonary and neurology is a partner-led strategy to bundle cardiac diagnostics with existing sleep and neurological tests, with plans to potentially offer these to Biotricity's own network later. He confirmed two active, multi-site pilot studies with a growing pipeline driven by GPO access. Al-Siddiq clarified that GPOs are U.S.-focused and the Canadian strategy relies on building a distributor network following Health Canada approval. He affirmed that while quarterly margins may fluctuate with hardware sales, the underlying subscription margin is trending towards the mid-to-upper 70s, and he expects overall margin improvement to continue as recurring revenue grows.

Inquired about the cardiac AI cloud platform's milestones and commercialization timeline, its priority within R&D spending, and whether the recent increase in device sales stemmed from existing relationships or new GPO contracts.

Answer

The executive detailed that the AI cloud aims to improve algorithms for scalability. An FDA filing is expected by the end of the year, with commercial availability projected for mid-to-late 2025. This platform is the top R&D priority, as other products have moved to a less resource-intensive maintenance mode. The increase in device sales was attributed to a combination of both growing existing accounts and newly closed accounts.

Michael Donovan of H.C. Wainwright & Co. inquired about the revenue potential of North American licensing partnerships, the impact of the incoming U.S. administration on regulations, potential M&A opportunities in 2025, the status of the coyni platform, and the key differentiators between the NanoKard and NEMS Core platforms.

Answer

CFO George Oliva addressed the licensing question, noting the primary agreement targets a vertical that previously handled 1 million transactions monthly, which they aim to approximate over time with higher profit margins. CEO Fredi Nisan expressed optimism about potential regulatory changes but offered no specifics. Nisan declined to comment on M&A, stating the company is not prepared to discuss it. Regarding coyni, Nisan explained it will not be spun out but its technology has been integrated and rebranded internally. He then differentiated NanoKard as a closed-loop, high-risk gift card solution, while NEMS Core is a broader platform for acquiring and core banking services (wire, ACH) aimed at ISOs and agents.

Michael Donovan of H.C. Wainwright & Co. inquired about the revenue potential of North American licensing partnerships, the impact of the incoming U.S. administration on regulations, potential M&A activity in 2025, the status of the coyni platform, and the market differentiation between the NanoKard and NEMS Core products.

Answer

CFO George Oliva detailed a key licensing deal for a previously vacated vertical, noting its potential to approximate 1 million transactions per month over time with high profit margins. CEO Fredi Nisan expressed optimism about potential regulatory changes but offered no specifics, and declined to comment on M&A. Nisan also clarified that coyni's technology has been integrated internally rather than spun out. He then differentiated NanoKard as a closed-loop, high-risk gift card solution, while NEMS Core is a broader platform for acquiring and core banking services aimed at ISOs and agents.

Michael Donovan inquired about the revenue potential of North American licensing partnerships, the impact of potential U.S. regulatory changes, the company's 2025 M&A outlook, the status of the coyni technology, and the key differentiators between the NanoKard and NEMS Core platforms.

Answer

CFO George Oliva detailed a key licensing agreement targeting a previously vacated high-volume vertical, noting significant profit potential despite lower per-transaction revenue. CEO Fredi Nisan expressed optimism about upcoming regulatory changes but declined to provide specifics or comment on M&A. Regarding products, Nisan and executive Ben Errez explained that coyni technology has been integrated internally rather than spun out, with its future tied to U.S. regulations. Nisan also differentiated NanoKard as a closed-loop solution for high-risk verticals, while NEMS Core is a broader platform offering acquiring, core banking, and licensing for ISOs to accelerate onboarding.

Asked for details on the partnerships with R3 and ACI Worldwide, future margin expectations, the impact of shifting from terminal-based to app-based processing in North America, the company's strategy regarding high-risk licenses, and hurdles to increasing market penetration in American Samoa.

Answer

The R3 partnership is for the RYVYL Block solution to move business workflows to a blockchain ledger, currently in a pilot phase. The ACI partnership enhances security and risk management for European growth. Visa Direct integration is in testing. Gross margins are expected to remain stable at 38-40%. The shift to app-based processing is a long-term strategy to improve customer touchpoints and risk management, though it may take time to rebuild momentum. The company focuses on niche verticals rather than competing with major players like PayPal in the general market. In American Samoa, the 60% penetration has plateaued as it covers most significant merchants, with future growth expected from e-commerce and coyni services.