John Todaro: Okay, got it. And just to clarify though, so even with the delays though, customers are still kind of lining up, knocking down doors, it sounds like?
Wes Cummins: Yeah, we have had no issue with that.
John Todaro: Okay, got it. Thanks, guys.
Wes Cummins: I would say, and I said this earlier, John, but I would say we’ve seen — with the entrance of the enterprise customer, I would say that overall we’ve seen demand increase from our last conference call. We haven’t seen anything slow down. We’ve seen it increase.
John Todaro: Got it. Thank you. Appreciate it.
Operator: [Operator Instructions] Our next question is from Mike Grondahl with Northland Securities. Please proceed.
Mike Grondahl: Hey guys. What is a rough estimate of Applied’s contribution to complete financing of the construction, just the project side of it for the anchor tenant? What do you guys have to pitch into that, roughly, just a number? How much have you done so far?
Wes Cummins: So — good question, Mike. When you think about — we say it’s 7 million megawatts. Let’s go to the high end of that. So it’s 7 million megawatts, right, we’re going to land anywhere from 65% to 85% — sorry, 65% to 80% on construction finance, on project level finance. And then we expect to have what we in the industry would call an equity partner. However, as I explained earlier, that generally looks more like mezz debt. And so at the end, you’re looking at us, our expectation is that we’ll contribute somewhere between 5% and 10% of the project in cash for the equity portion of that. And we’ve already spent north of…
David Rench: $25 million.
Wes Cummins: …$25 million on that currently for Ellendale. And then, Mike, when we look at that too, I think David mentioned this in his prepared remarks is for us on the cash flow for the company, I think it’s important to note that when we hit March 1, the cash flow from our Bitcoin data centers improves dramatically. Right? We burned through the vast majority of the prepayments at that point and so the cash flow from that portion of our business improves dramatically.
Mike Grondahl: Got it, got it, that’s helpful. And I’m assuming that the anchor tenant will be supplying the GPUs, but could you clarify there?
Wes Cummins: Yeah. So on the data center business, we are just providing space. Think of this as an Equinix or DLR style business. We’re providing the space, they select the equipment, and they buy the equipment and then we’re just hosting. Very similar to what we do on the Bitcoin side.
Mike Grondahl: Got it. Got it. And roughly, when would you begin to recognize revenue with this anchor customer? And hey, I’m not going to hold you to it, but roughly as this plays out, when would you expect that revenue to start?
Wes Cummins: So, right now, the expectation is the revenue would be the very early part of the second half of this calendar year.
Mike Grondahl: So, like July, August would be kind of…
Wes Cummins: Yeah.
Mike Grondahl: Okay. Great. Then just one last question. The Bitcoin hosting business, any contract renewals or extensions, any updated kind of terms, or is everything kind of locked down in that business?
Wes Cummins: Yeah, it’s locked down. The things of note, our largest customer there, we have four years, maybe a little over four years on most of the capacity for our largest customer there on the contract. The only thing of note, and this probably shouldn’t surprise you, but we’re seeing — we’re getting a lot more calls about hosting capacity. We are never out marketing because we don’t have any to offer, but we are getting a lot more calls about hosting capacity over the last you don’t call it six weeks, eight weeks as the price of Bitcoin has went up significantly.
Mike Grondahl: Got it. Okay. Hey, thank you.
Wes Cummins: Absolutely.
Operator: Our next question is from Kevin Dede with H.C. Wainwright. Please proceed.
Kevin Dede: Hi, Wes. [Technical Difficulty] question. I’m curious about the number of facilities that you’re running or leasing to supply the power you need for your cloud service at the moment.
Wes Cummins: Sure. So we have third-party facilities in Denver, in Minnesota, and in Salt Lake City. And then we have our own Jamestown facility in Jamestown, North Dakota.
Kevin Dede: Yeah. And Jamestown, you have maxed out at 8 megawatts, if I understand correctly.
Wes Cummins: So Jamestown will hold 5,000 GPUs for us. I can do it on megawatts, or I can tell you on the GPU capacity, however you prefer.
Kevin Dede: Oh, whatever you’re used to is fine. I guess the real genesis of the question is in meeting a cloud build-out, right? The amount — given the market’s really tight, how are you securing the power that you need to meet your customer demands on the cloud service side?
Wes Cummins: Yeah, so we secured this power back in the summer of last year. So middle of the year last year, we secured these power sites. We saw the demand and we ran out and grabbed the capacity to be able to service it. So we secured that at that point. And so we have the capacity both from third party and our own facilities for the 26,000 GPUs that we talked about. And then as we go beyond that, our expectation is that it will go into our own facilities post that 26,000 as we continue to grow.
Kevin Dede: Right, so [26,000 to 30,000 of that Delta will go] (ph) into the Ellendale facility that’s under construction now.
Wes Cummins: Yeah.
Kevin Dede: Okay. I think I correctly heard you mention a marketing initiative. And I was wondering if you could be more specific about the direction that you’re going to take that. Do you think that goes toward that enterprise market that you’re seeing starting to develop?
