John Todaro: Got it. That’s great. Thanks, Wes. Appreciate it.
Wes Cummins : Yes. Operator?
Operator: Thank you. The next question is coming from of Mike Grondahl of Northland Securities. Please go ahead.
Mike Grondahl: Hey guys, thanks. Wes, when do you think you kind of have a green light on the HPC opportunity? Is that when the 5 megawatts are sort of up and running? And that’s shown everybody you can do this? Is that this summer, this fall, when you think you have that? And then, what could the HPC business look like in two to three years in terms of number of megawatts and sort of a rough range for revenue?
Wes Cummins : Sure. So I gave the kind of the revenue comparison earlier. I can repeat that if you want me to, but just to kind of frame where we think HPC is as far as revenue versus the Bitcoin mining, the green lights, we’ve kind of – we’re definitely €“ it maybe like we’ve moved from red to yellow already. So we’re operating in our site. We see that these works, we’ve see that the network connectivity works. We see the software works. We see these this setup works. Now, as we bring the building on, there will be some fine tuning on the 5 megawatt building for – from a design perspective, for sure, just like we did some tuning up from when we built in Jamestown versus what we built in Garden City and Ellendale. But we’re really close and the conversations that we’re having and the people we’re having these conversations with has really given me and the team a large amount of confidence that we are moving in the right direction.
As far as, what that could look like right now, if we are trying to think about what that could look like a few years out, I mean, we talked about getting to a 50/50 split. I think the demand that is out there for this type of data center build is large right now. And the people that we’re talking to about hosting or about GPU rental, it’s very large quantities. And, it’s something that depending on how a few of these things go over the next few months is that this business will be potentially very material by the end of this year. But it could ramp extraordinarily quickly. But – and if it starts, Mike, if it starts to go this way, it’s kind of one of these, right – I think there will be a really long runway of growth. But the conversations we’re having right now, what we’re seeing demand of people wanting individual demand of 10 or 20 megawatts and some 50 and 100 megawatts of HPC build, which is a very large amount given, like I said, with the numbers were that I gave you earlier in the call about the revenue comparison for HPC versus Bitcoin mining.
But we’re seeing a lot of demand. We’re getting to some certifications that we need. The we will get in the summer, but I don’t know that that’s going to stop us from signing some large customers prior to even reaching that, because it’s, these are really in the stage of development projects that will need to be built and turned on. And so, the cadence might call for some of these to come on there to be signed at least earlier than what may be I initially expected.
Mike Grondahl: Got it. Okay. And hey, I took away is the revenue comparison, it’s like 10 to 12 times.
Wes Cummins : Yes.
Mike Grondahl: Revenue generate of a miner. Okay. Got it.
Wes Cummins : And that’s for – Mike, that’s for co-location. So if we just do the hosting that that’s I think a good comparison right now. And if we own the GPUs, it’s significantly higher than that.
Mike Grondahl: Got it. Okay, thanks.
Operator: Thank you. Our next question comes from the line of Kevin Dede with H. C. Wainwright. Please proceed with your question.
Kevin Dede : Hi Wes. Thanks for – thanks for the discussion on, on the HPC side. I guess, it sort of begs, it sort of begs, the question given that you seem pretty fully contracted out on 500. What other – can you give us, I guess, a peek into the pipeline for your next round of builds, your next site acquisition and that kind of timing?
Wes Cummins : Yes. So, we have a we have a very good site identified in another cold region not in North Dakota, that has a good power price for us. We’re optioning that site. I actually – we have demand for Bitcoin mining for that site. But we’re seeing the amount – the amount of demand I think we’re seeing emerge on the HPC front. I think it’s the likelihood that it goes towards HPC is extraordinarily high. But we do have another site identified and we also expect to expand at the Jamestown site even further. But those are the two primary ones in the pipeline.
Kevin Dede : Okay. Does Jamestown entail like another set of buildings or you are going to kind of do it in those 5 megawatt increments?
Wes Cummins : The next build for HPC in Jamestown would be a larger – above the 5 megawatts. And recall €“ I guess, I recall €“ but originally in Jamestown, we expected to go to 200 megawatts. And so, I think we can push that beyond 100 with the power provider there with HPC. I am not certain what that limit is for us just yet. But we do think that we can expand at that site, but then we’ll push more towards new sites. But we have identified one very attractive site that will we expect to move forward with.
Kevin Dede : Okay. Can you just dig in a little bit on the co-location versus, I guess, the machine owned business models in HPC, Wes? How do you approach that from a financing perspective?
Wes Cummins : So from a financing perspective, the goal – so on the, on the – owning, the GPUs will be significantly more expensive. That these are – you guys probably know the pricing on these types of GPUs that are extremely high. So, we – our team on the finance side has done a great job to-date getting us very low-cost financing for the sites that we have for that particular market if you want to own the GPUs, there is a much better really well developed financing mechanism and financing market for that. So we’ve already are down that path. And I think we’ll be able to tap some of that financing. And we are on kind of the initial build. But if it is going to be extraordinarily large, we’re working on solutions around that.
But it is it is capital-intensive. So if you want to do the full, the fully integrated model is, is one that we will pursue some to what amount I don’t know. And it’s going to be, you know, could it be limited by our ability to finance that? Yes. On the co-location side, I don’t think we’ll have any issue financing that for HPC builds for co-location. The customer set there that will contract for that – it’s large companies, triple A type credit companies, I don’t think what with our ability to that we’ve had to finance the Bitcoin mining facilities. Once contracted with customers, I think it’s going to be significantly easier even in a much more difficult financing environment that we’re seeing right now, just because of the customer profile for those types of co-location €“ co- location buildings.
