Geoff Morphy: Exactly. Kevin, we’re doing that every day. We utilize all the latest generation miners. We have an (ph) of the M30 MicroBTs, but we also have the S19s. They’re all very good miners. And we are able to achieve amongst the best efficiencies in the industry right now based on our software system, and our operations, and our technicians. And that comes from making sure that you have all your machines up and running, fully running, and fully optimized. And we’re very good at that, and that’s why we continue to achieve these great efficiencies. Now, sure, there are great sort of high-performance S19s, and M50s that are achieving even better efficiency, but they’re two or three times the cost; and this has been a challenging environment.
We think that you can’t just take a look at the watts per terahash or joules per terahash in isolation. You need to take it combined with how well you operate your fleet and your power costs, because, at the end of the day, what you need is cash flow from operations to provide a return on investment. And I think there’s a lot of other people out there that are growing for growth sake. And clearly, with our targets of 6 exahash, we’re not doing that. We have prudent growth, very disciplined, because we want to provide value to our shareholders. And as Jeff Lucas has mentioned with these hardware credits, like we’re able to roll at a substantial increase in production without a substantial cash outlay, which means far less dilution to shareholders.
We think this is key, we think this is important for our shareholders to know that we can substantially grow without a substantial outlay. And we have been achieving positive cash flow from operations even through some pretty lean times. So, Kevin, when you look at the joules per terahash for these miners, you also have to look at power costs and take them in conjunction with that and your payback periods, and your ROI. So, that’s what we do. Our computational — at least our calculations on how to do it is a mixture of the performance of the machine, the capital cost of the machine, and then the expected output in terms of cash flow. So, it’s more complicated than just looking at the joules per terahash. But when you get that figured out, you can generate good returns.
Jeff Lucas: Yes. But let me add a comment to that, if I may. We’re also, as we look at ROI and payback, we’re also very aware that we have a halving event coming next. And so, while a lot of our peer companies may be investing in higher performing and more expensive miners out there, I think people have to be very attuned to things that go beyond a one-year payback, recognizing that year two or year three would be impacted by the halving event which, of course, is a great element of uncertainty.
Kevin Dede: Well, thank you, gentlemen. Appreciate you taking the time.
Geoff Morphy: Thanks, Kevin.
Operator: Our next question will come from Bill Papanastasiou with Stifel. Please go ahead.
Bill Papanastasiou: Hi, gentlemen. How are you? Thanks for taking my questions.
Geoff Morphy: Hi, Bill.
Bill Papanastasiou: Hi, and congrats again on the recent efforts to reduce the indebtedness and the renegotiation of those previous contacts. My first question is related to treasury management. In the first couple of months this year, the company has maintained (ph) balance of just over 400 Bitcoin, but we continue to see positive price action for these digital assets. And based on financial economic outlook how it seems like things are only going to improve from here, fingers crossed. So, wondering whether you can share your outlook on in terms of treasury management strategy as we progress into 2023 with the halving in the back of our minds?