Ben Gagnon: Sure. Well, we don’t have any MicroBT hydros up and running in Paraguay right now, but we do have quite a bit of experience with immersion. Personally, I founded a immersion technology company back in 2018 where I was doing immersion with 3M, an US manufacturing for Bitcoin mining purposes. Realistically, when we look at immersion versus air-cooled, sure there are some benefits from using immersion from efficiency perspective, but the capital expense required to set up that infrastructure versus the air-cooled infrastructure, really we just feel is unjustified. The MicroBT hydro units are pretty different. The way that they’ve designed those hydro units makes it a lot more analogous to how we operate our air-cooled facilities.
We have miners that are physically sitting in some sort of a server rack that can be pulled in, can be plugged back in, they can be hot swapped. When you’re doing immersion technology, you’ve got to deal with all this fluid, you’ve got to deal with cleaning the miners, preparing the miners. Every single time you interact with a minor, it’s quite a laborious process. With the hydro miners, we expect them to be operating relatively similar way that we operate our air-cooled miners. The only thing that’s really different is how that heat is pulled out of the miner itself, which — from everything that we’ve seen so far in the tests and the tours of the hydro sites that we’ve seen is done in a very, very clean, efficient and stable manner.
Kevin Dede: Last question for me. What’s on site and what’s contracted for Yguazu, Geoff? It’s — understand you have the site not clear if you’ve got transformers lined up. And give us your take on meeting your timeline objectives there?
Geoff Morphy: Sure. The timeline there is, we will have production by the end of the year, full production there at the end of the year. We secured the land in January, which you needed the physical address to be able to start the other studies. So there’s a environmental and electrical study on the go with ANDE right now. We have hired a third-party company to — which is an EPC contract to construct the connect at the ANDE substation, which is right across the road from us. So that’s specked out. That’s underway. There’s a — approximately seven month line of sight from when they will get that done. Seven, eight months there. There’s — the timeline for transformers and cabling is about seven months. It’s pretty much exactly the same as what we went through at the Paso Pe site.
So we expect that those orders will be going in now so that we can get the important connection points, the primary connection points in place later this year, probably fourth quarter. And we’ve already had the scheduling done with the T21s for going into there. So things are coming together nicely. It’s — Kevin, the site is quite exceptional. As I mentioned, it’s right across the street from the ANDE substation, which is brand new. And we will do an underground cable. It will leave the substation, it will go under the road and basically right into the field where we are now, which is nice high ground. It’s not subject to water. It’s nice and firm and solid. We’ve got enough land to fully develop the 100 megawatt power purchase agreement there.
And in fact, a bit more. It really is a superior site.
Kevin Dede: Thank you very much, gentlemen. Appreciate it. I’ll turn over the floor.
Operator: The next question comes from Josh Siegler with Cantor Fitzgerald. Please go ahead.
William Carlson: Hey, team. This is Will Carlson on for Josh. First question, do you have any foresight into additional PPA opportunities in Paraguay?
Geoff Morphy: Good morning, Will. Yes, we do. They — as I mentioned earlier, they’ve taken a very conservative approach to bringing in Bitcoin and crypto mining into the country. They’ve allocated megawatts some at high voltage, some at medium voltage, sort of in the order of about 650 megawatts in total, because they do not want to run out of power in the country. They want to go it slow, but they also want to do it in a meaningful way so that the sector has — can go into production there and generate revenues for the company. But I do not expect any new power purchase agreements there to be let over the next couple of years, maybe just a year. It’s tough to say for sure, but for the time being, they’re wanting to make sure that the power purchase agreements they’ve signed will actually be developed.
We are well on our way with ours. There’s some others that are well underway. There’s others that are going a little more slowly. So I expect that if in the short term, we are to pick up a contract, it probably will not be a new contract, but one that’s already been existing, that will be an existing contract that we might be able to buy or joint venture or do something with that’s already out there. But I think as we as a company and as a sector continue to develop there, I think ANDE will get more confidence. I think the government and the people will get more confidence at what we can bring to the whole country. It really is a partnership and it’s still fairly early stages of that partnership. So I think there’s more there. But for the time being, we’re just going to focus on developing our 170 megawatts that we already have, that we’ve already acquired, that we already have in place, and we’ll go from there.
William Carlson: Great. Really appreciate that cover. And the second question, you guys have done a phenomenal job in your international expansion by all measures. I’m just curious, how are you guys thinking about future expansion opportunities within the United States?
