Listen on the go! A daily podcast of Wall Street Breakfast will be available by 8:00 a.m. on Seeking Alpha, iTunes, Spotify.Getty Images Good morning! Here is the latest in trending:First-mover advantage: Novo Nordisk (NVO) is on the rise after the FDA approved its Wegovy pill, the first oral GLP-1 therapy for obesity.Eye on China: Nvidia (NVDA) is reportedly aiming to start shipping its H200 GPUs to China by mid-February, subject to government approval.Another setback: The U.S. government suspended leases ...

ABU DHABI, UNITED ARAB EMIRATES, Dec. 08, 2025 (GLOBE NEWSWIRE) -- AlphaTON Capital Corp (NASDAQ: ATON), the world's leading public technology company scaling the Telegram super app, with an addressable market of 1 billion monthly active users, today announced the successful deployment and activation of its first NVIDIA H200 GPUs on Telegram's Cocoon AI Network. The H200s are now online and actively generating revenue, marking a significant milestone in the company's strategy to provide critical infrastruct ...

AI Infrastructure Expansion - Tesla significantly increased its AI supercomputer power by adding 16,000 new H200 GPUs [1] - The supercomputer's total capacity now equals 67,000 H100 equivalents [1] - The entire AI infrastructure, codenamed "Cortex," operates from Giga Texas [1]

Core Insights - Micron Technology, Inc. is set to report its third-quarter fiscal 2025 results on June 25, with high expectations driven by AI investments and strong partnerships with tech firms [1] - The DRAM segment is expected to show significant growth due to the demand from AI applications, while the NAND segment faces challenges [8] DRAM Segment Performance - Micron's DRAM revenues are projected to reach $7 billion in Q3, reflecting a remarkable 49.2% year-over-year growth, indicating strong market positioning and improved pricing dynamics [3][9] - The demand for high-performance DRAM is being fueled by AI systems, particularly large language models and generative AI applications, which require extensive data processing capabilities [2] Strategic Partnerships - Micron's collaborations with major tech companies like NVIDIA, AMD, and Marvell enhance its competitive edge in the AI sector, ensuring steady revenue streams [5][6] - The partnership with NVIDIA is particularly crucial, as Micron is a key supplier for NVIDIA's upcoming AI chips, which positions it favorably in the growing AI hardware ecosystem [6] NAND Segment Challenges - The NAND market continues to struggle with oversupply and weak pricing, which negatively impacts Micron's profitability in this segment [8][10] - Although there have been slight pricing improvements, the recovery in NAND pricing is slower than anticipated, potentially limiting overall earnings growth despite the strong performance in DRAM [9][10]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $25.1 million, a 17% decrease year over year and slightly below the $26.1 million reported in Q4 2024 [19] - Bitcoin mining revenue was $7.8 million, down 64% year over year and 26% sequentially, primarily due to the April 2024 halving event and increased network difficulty [19][20] - Cloud services revenue increased 84% year over year and 14% sequentially to $14.8 million, supported by new contracts [19][20] - Gross profit was $12.3 million, representing a total gross margin of 49%, compared to 47% in the same quarter last year [21] - Adjusted EBITDA was negative $44.5 million, compared to a positive $58.5 million in Q1 2024, primarily due to a $49.2 million mark-to-market loss on digital asset holdings [24] Business Line Data and Key Metrics Changes - Mining segment revenue decreased 64% year over year, with production declining 80% to 83 bitcoins for the quarter [5][6] - Cloud services gross margin expanded to 59% from 52% in the previous quarter, reflecting improved utilization and scale [21] - Colocation services gross margin improved modestly to 67% [22] Market Data and Key Metrics Changes - Active Hash rate stood at approximately 1.5 exahash, with fleet efficiency at approximately 24.5 joules per terahash [7] - The market value of digital asset positions appreciated on a mark-to-market basis, with Bitcoin prices increasing by 25% and Ethereum by 40% since the quarter end [25] Company Strategy and Development Direction - The company is focusing on investing in data center build-out and cloud services, with a strategy to secure multiyear contracts with creditworthy counterparties [8][12] - The company is pursuing nondilutive financing structures to support the expansion of its HPC platform and has initiated the process for commercial mortgage financing in the US [27][29] - The company is actively evaluating over 500 megawatts of potential capacity across Canada and the US, focusing on retrofitting existing sites [52][53] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the mining segment due to the halving event and increased competition but expressed confidence in the growth of cloud services [6][8] - The management is optimistic about securing large contracts with annualized revenue potential above $100 million, reflecting the strength of the platform built through disciplined investment [12] - Management emphasized the importance of maintaining a strong liquidity position to build trust with customers and support growth initiatives [29][30] Other Important Information - The company held $57.6 million in cash and cash equivalents and $3.7 million in restricted cash as of March 31 [25] - The company remains debt-free and spent approximately $65 million on capital expenditures during the quarter, primarily on GPUs and data center infrastructure [26] Q&A Session Summary Question: Update on white fiber rebranding and platform initiatives - The rebranding has been well received, with positive feedback on the new website and upcoming first-to-market technology announcements expected soon [33][34][35] Question: Demand from hyperscalers and enterprise users - Strong demand is observed from both hyperscalers and medium-sized NeoClouds, with updates expected in the coming months [38][40] Question: Delay in customer contract start date - The delay was due to internal product development schedule changes, but the company has options to utilize GPUs for other contracts if necessary [43][44][47] Question: Expansion in the US versus Canada - The company is evaluating over 500 megawatts of potential capacity in both regions, focusing on retrofitting existing sites for efficiency [51][52][53] Question: Balancing equity issuance and liquidating investments - The company maintains flexibility with its ATM program while balancing equity issuance with selling digital assets to fund growth responsibly [58][62] Question: Gross margin profile and GPU procurement strategy - The company aims to increase margins through long-term contracts and strategic procurement aligned with customer demand [70][78]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $25.1 million, a 17% decrease year over year and slightly below the $26.1 million reported in Q4 2024 [19] - Bitcoin mining revenue was $7.8 million, down 64% year over year and 26% sequentially, reflecting the impact of the April 2024 halving event and increased network difficulty [20] - Cloud services revenue increased 84% year over year and 14% sequentially to $14.8 million, supported by new contracts [20] - Gross profit was $12.3 million, representing a total gross margin of 49%, compared to 47% in the same quarter last year [21] - Adjusted EBITDA was negative $44.5 million, primarily due to a $49.2 million mark to market loss on digital asset holdings [23] - GAAP net loss per share was $0.32, compared to earnings of $0.43 per share in Q1 2024 [24] Business Line Data and Key Metrics Changes - Mining segment revenue decreased 64% year over year and 26% sequentially, with production declining 80% year over year to 83 bitcoins [5][20] - Cloud services gross margin expanded to 59% from 52% in the previous quarter, reflecting improved utilization and scale [21] - Colocation services gross margin improved modestly to 67% [21] Market Data and Key Metrics Changes - Active Hash rate stood at approximately 1.5 exahash, with fleet efficiency at approximately 24.5 joules per terahash [6] - The market value of digital asset positions appreciated on a mark to market basis, with Bitcoin and Ethereum prices increasing by 25% and 40% respectively since the quarter end [24] Company Strategy and Development Direction - The company is focused on investing in data center build-out and cloud services, with a strategy to secure multiyear contracts with creditworthy counterparties [11][12] - The company aims to pursue nondilutive financing structures to support the expansion of its HPC platform [26] - The acquisition of a 95-acre property in North Carolina is intended for data center development, with a robust pipeline of over 500 megawatts of potential capacity under evaluation [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the mining segment due to market conditions but expressed confidence in the growth of cloud services and colocation segments [5][19] - The company remains optimistic about securing large contracts with annualized revenue potential above $100 million [11] - Management emphasized the importance of maintaining a strong liquidity position to build trust with customers and execute growth strategies [28] Other Important Information - The company raised approximately $10 million through its ATM program during the first quarter and an additional $48 million subsequent to the quarter end [27] - The company sold approximately $32 million worth of Bitcoin holdings during the quarter to help fund growth [28] Q&A Session Summary Question: Update on white fiber rebranding and platform initiatives - The rebrand has been well received, with positive feedback on the new website and upcoming first-to-market technology announcements expected soon [32][33] Question: Demand from hyperscalers and enterprise users - Strong demand is observed from hyperscalers and medium-sized NeoClouds for capacity, with updates expected in the coming months [40] Question: Reason for customer contract start date shift - The shift in start date was due to internal product development schedule changes, and the company is prepared to utilize the GPUs for other contracts if necessary [44][47] Question: Expansion in the US versus Canada - The company is evaluating over 500 megawatts of potential capacity across both Canada and the US, focusing on retrofitting existing sites for efficiency [52][54] Question: Balancing equity issuance and liquidating investments - The company maintains flexibility with its ATM program while balancing equity issuance with selling digital assets to fund growth responsibly [60][62] Question: Gross margin profile changes and GPU procurement strategy - The company aims to increase margins by spreading operating lease costs over a larger revenue base and continues to minimize speculative procurement risks [71][78]