Q & A Highlights

Q: Have you had any initial discussions with potential counterparties to provide a co-location style arrangement since announcing the AI/HPC hosting expansion? A: Bruce Rodgers (Chairman and CEO) confirmed that while no definitive agreements have been announced, the company is actively engaged in discussions with potential counterparties and is working through the process.

Q: Can you provide color on the economics and operations of exploring containerized AI/GPU infrastructure to scale up the single GPU pilot, and how would you fund it? A: Bruce Rodgers (Chairman and CEO) noted that manufacturers of HPC containers are sophisticated and often come with willing financial partners due to the high price of compute and the scarcity of cheap power. He declined to provide specific material developments, stating the company is not at that point yet.

Q: What are the steps needed for capacity expansion at your existing sites, and do you expect local pushback on deploying an AI data center? A: Bruce Rodgers (Chairman and CEO) explained that pushback varies by community. The Oklahoma site is in an isolated area with no community concerns, while the Columbus, Mississippi site has some local sentiment to manage. He highlighted that the company's ability to curtail power during peak demand is being positioned as a community benefit, and a recent local newspaper interview was well-received.

Q: What is the strategic rationale for the company's pivot to AI infrastructure and HPC hosting? A: Bruce Rodgers (Chairman and CEO) stated that the defining constraint in AI infrastructure has shifted to power. The company's 26 megawatts of energized, low-cost power ($0.036/kWh blended average) across two industrial sites makes it an attractive partner for AI compute customers, as greenfield grid connections can take years to permit.

Q: What is the potential revenue opportunity from a full buildout of the company's power capacity? A: Bruce Rodgers (Chairman and CEO) reiterated that a full buildout of the existing 26 megawatts could represent a $20 million to $50 million annual revenue opportunity. He emphasized this is an illustrative estimate, not guidance, and is subject to substantial capital, customer contracts, and execution risks.

Q: What were the key drivers of the year-over-year revenue growth in the second quarter? A: Richard Russell (CFO) reported total revenue of $2.1 million, a 9.8% increase year-over-year. This growth was driven by an increase in the number of miners actively mining at a decreased difficulty rate, partially offset by a lower average Bitcoin price.

Q: Can you explain the new Arch Lending refinancing structure and its impact on the company's liquidity? A: Richard Russell (CFO) explained that the company refinanced and consolidated $18 million of existing debt with Arch Lending, secured by 307 Bitcoins. The new facility has a revolving 30-day term at 2% APR, replacing debt with a blended annual rate of around 13%. This structure allows the company to hold its Bitcoin rather than sell it, retaining participation in Bitcoin appreciation between the contractual floor and ceiling.

Q: What is the company's near-term priority regarding the AI/HPC transition? A: Bruce Rodgers (Chairman and CEO) stated that the near-term priority is proving out the model with the single GPU proof-of-concept at Oklahoma. The company aims to learn about demand cheaply before committing capital at scale, while simultaneously marketing approximately 4 megawatts of available capacity at the Columbus, Mississippi site for co-location and hosting.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .