Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $21.8 million, down from $51.7 million in the prior year, primarily due to planned downtime for fleet upgrades and increased network difficulty following the April 2024 halving [20][21] - Net loss for the quarter was $134.3 million compared to net income of $250.7 million in the prior year, with adjusted EBITDA at negative $117.7 million, down from $297 million [21] - Energy costs per megawatt hour rose to $51.71 from $40.06 in the prior year, driven by fixed transmission and distribution charges [22] Business Line Data and Key Metrics Changes - Power segment revenue declined from $9.9 million to $4.4 million year over year, primarily due to a reduction in managed services revenue [39] - Digital Infrastructure segment revenue decreased from $5.8 million to $1.3 million, impacted by the termination of the ASIC colocation agreement with Ionic Digital [39] - Compute segment revenue fell from $32.1 million to $16.1 million, reflecting planned downtime and sector-wide headwinds [40] Market Data and Key Metrics Changes - As of March 31, 2025, the power origination pipeline expanded to approximately 10,800 megawatts, with about 2,600 megawatts under exclusivity [12] - The price of Bitcoin decreased from approximately $93,000 at the end of 2024 to $82,500 by March 31, 2025, affecting the company's financial results [21] Company Strategy and Development Direction - The company is focused on building an integrated energy infrastructure platform, emphasizing a power-first strategy to enhance capital efficiency and value creation [11][30] - The launch of American Bitcoin is seen as a pivotal shift, streamlining capital allocation and enhancing cash flow predictability [30][34] - The company aims to leverage its power assets for Bitcoin mining while also exploring opportunities in high-performance computing and digital infrastructure [31][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the transitional cost pressures due to investments and external headwinds but expressed confidence in the long-term benefits of their strategic initiatives [22][24] - The company anticipates a significant improvement in mining economics beginning in Q2 2025 following the completion of fleet upgrades [22][24] - Management remains optimistic about the demand for their services and the potential for future growth in the energy and technology sectors [31][34] Other Important Information - The company ended the quarter with 10,264 Bitcoin held in reserve, valued at approximately $847.2 million [23][45] - A total of $63.3 million was invested in property and equipment during the quarter, focusing on fleet upgrades and infrastructure projects [25][44] Q&A Session Summary Question: Update on Riverbend project - Management confirmed that initial site work has begun on the Riverbend campus, which spans 592 acres in Louisiana, and emphasized the importance of ensuring capital deployed is recoupable [49][52] Question: Logic behind colocation agreement with American Bitcoin - The colocation agreement is structured to achieve a payback equivalent to the depreciation cycle of the miners hosted, with additional revenue streams from managed services and shared services agreements [54][56] Question: Considerations for Vega's cooling architecture - The proprietary liquid cooling system at Vega is designed to enhance efficiency and longevity of ASICs, with potential applications for GPUs and high-performance computing [61][63] Question: HPC customer conversations and JV potential - Management indicated ongoing discussions with potential customers and emphasized a focus on securing definitive agreements rather than sharing letters of intent [73][75] Question: Decline in power under exclusivity - The decline in power under exclusivity was attributed to a more focused approach in vetting projects, ensuring that only the most promising sites are pursued [82][85] Question: HODL strategy for Bitcoin on balance sheet - The company views its Bitcoin holdings as investable capital, with plans to utilize it for funding growth opportunities as they arise [87][88]

Financial Data and Key Metrics Changes - Revenue for the quarter was $21.8 million, down from $51.7 million in the prior year, primarily due to planned downtime and top-line pressure from the April 2024 halving [18][20] - Net loss for the quarter was $134.3 million compared to net income of $250.7 million in the prior year [20] - Adjusted EBITDA was negative $117.7 million, down from $297 million [20] - Energy costs per megawatt hour rose to $51.71 from $40.06 in the prior year [21][22] - The company ended the quarter with 10,264 Bitcoin held in reserve, valued at $847.2 million [22][46] Business Line Data and Key Metrics Changes - Power segment revenue declined from $9.9 million to $4.4 million, driven by a reduction in managed services revenue [39] - Digital Infrastructure segment revenue fell from $5.8 million to $1.3 million, primarily due to the termination of an ASIC colocation agreement [39] - Compute segment revenue decreased from $32.1 million to $16.1 million, reflecting planned downtime and increased network difficulty [40] Market Data and Key Metrics Changes - As of March 31, 2025, the power origination pipeline expanded to approximately 10,800 megawatts, with about 2,600 megawatts under exclusivity [11] - The price of Bitcoin declined from approximately $93,000 as of December 31, 2024, to $82,500 as of March 31, 2025 [20] Company Strategy and Development Direction - The company is focused on building an integrated energy infrastructure platform, emphasizing a power-first strategy [9][28] - The launch of American Bitcoin aims to streamline capital allocation and enhance cash flow predictability [29][30] - Investments in infrastructure, including the Vega Data Center and Riverbend site, are expected to drive sustained margin expansion and capital productivity [24][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the transitional cost pressures and external headwinds but expressed confidence in the long-term value creation from recent investments [21][27] - The company anticipates a step change improvement in mining economics beginning in the second quarter following the fleet upgrade [21][24] - Management highlighted the importance of strategic partnerships and the ability to monetize power assets through mining [28][57] Other Important Information - The company executed a fleet upgrade, increasing deployed hash rate to 9.3 exahash with an average efficiency of approximately 20 joules per terahash [24][40] - A proprietary direct-to-chip liquid cooling system is being developed to enhance operational efficiency and reliability [25][67] Q&A Session Summary Question: Update on Riverbend project - Management confirmed initial site work has begun on the Riverbend campus, which includes civil work and substation development [52][54] Question: Logic of colocation agreement with American Bitcoin - The colocation agreement is structured to achieve a payback equivalent to the depreciation cycle of the miners hosted [55] Question: HPC customer conversations and JV potential - Management noted increasing interest in customer contracts and definitive agreements, with a focus on larger announcements rather than small milestones [78] Question: Decline in power under diligence and exclusivity - The decline is attributed to a focus on high-potential projects and a filtering of less promising sites [86] Question: HODL strategy for Bitcoin on the balance sheet - The company aims to use Bitcoin on its balance sheet as investable capital while maintaining exposure to Bitcoin upside through American Bitcoin [90]