Geoff Morphy: Well, as I commented earlier and on earlier quarterly calls too, we think there’s areas in the United States that represent really neat strategic opportunities to us. We do. As we said in the script, we do want a balanced portfolio, and the United States is an area that we are lower than we’d like to be there. We continue to look for good opportunities there. We’re looking at a couple right now, but it’s early stage. We’ve looked at many, many opportunities over the last year, 1.5 years, and for whatever reason they haven’t come together. But this year might be different. And we will continue to look. We look with a very open mind and open eyes to trying to do something very interesting there. Hopefully something will materialize.
William Carlson: Thanks for the color.
Operator: The next question comes from Lucas Pipes with B. Riley. Please go ahead.
Fedor Shabalin: Hi. This is actually Fedor Shabalin asking questions on behalf of Lucas Pipes. Congratulations on paying down debt. And my first one maybe for Ben, as it’s more technical. I want to talk more a little bit about outperformance of T21. So you said when you tested it, they outperformed the manufacturer specifications in both normal and high energy modes. Can you talk more a little bit how high you — were hash rate readings? And what about power consumption? And, I mean, how economical is to run them on, I mean, higher than stated characteristics?
Ben Gagnon: Yeah, great question. Happy to answer it. So we have our first 12 T21 miners, and we’ve been — in our test, we’ve been seeing in the normal energy mode performance anywhere between 193 versus a — 193 to 195 terahash per miner at the same exact energy efficiency that’s specified by the manufacturer at that 19 watts per terahash level. In a high energy mode, most of our miners are operating between 235 and 238, but we’ve seen miners go up to 241, and that’s actually better than the energy efficiency mode that was promised by Bitmain. So that’s just under the 22 watts per terahash that they advertised. If you go back and you take a look at that hashcost table that I showed you, you can see that that 22 watts per terahash efficiency, especially with our really low cost of power around $0.04 is incredibly attractive and incredibly profitable.
And so by squeezing more units, more hash rate out of the units, effectively what we could get is a cheaper miner, both in terms of absolute cost, because it’s less than the — it’s a lower price than the S21. And we also get a significantly lower effective cost per terahash that we purchase. So when we bought these miners at $14 a terahash, that’s at the 190 spec. But when we operate them at the 233 or this kind of 235 range, that number goes down significantly below $14, down into, I think, around $11.30 or $11.40, if my memory is correct, per terahash. So we get a lot more out of the miners. They generate greater levels of profitability and a faster payback.
Fedor Shabalin: I appreciate all the color, Ben. That’s very interesting and exciting news. And my second one may be about the cadence of additional capital rise in 2024 to funding your stated growth and maybe potential M&A opportunities. How are you going to raise funds for this if it’s the case? Thank you.
Geoff Morphy: Over to you, Jeff Lucas.
Jeffrey Lucas: Great. Thank you. Good morning, Fedor. So a couple of comments here. First of all, our liquidity still continues to be very strong, comparable to the level that we reported in December. And this is actually after having made substantial payments towards the 36,000 miners that were part of the upgrade that we announced November 28th here. So when you think about the numbers overall, that liquidity level that we had in mind as we’re going forward here and we’re bringing the operations online, particularly down in Paraguay here, the business overall has the capability really to be generating about $7 billion of cash flow above operating expenses per month. And bear in mind that the fact that we’ve actually paid down our debt in February in full, except for lease obligations, which are small, that brings additional $2 million as part of that $7 million here.
So we’re in pretty good shape overall here. We do have further expenditures involved here in the CapEx side as we’re continuing to build out of Yguazu and Paso Pe, and what’s happening in Baie-Comeau here. And that’s roughly around maybe the $40 million level. And then we have a continuing out payments on the 36,000 miners. And if we were to exercise the option come into play as well. So generally in a cash position, we’re pretty good. But all that being said, we are considering and certainly giving attention to additional potential raises in the marketplace. And I do really want to underscore here that any capital raise that we do, we always do with an eye towards what is going to be the accretive element that’s going to benefit our shareholders.
An example I gave here — in my script here, where we’re spending about $95 million on the 36,000 miners here, yielding about $350 million of incremental value to our shareholders. That is a key element and a key metric that we look at as we consider whatever fundraising we’re going to be doing going forward.
Fedor Shabalin: I appreciate all the color here, Jeff. And my last one, just trying to squeeze in high level one. We know we already talked about M&A opportunities and industry consolidation, potential for halving. But in your opinion, at current economical environment, current BTC pricing, less efficient miners there, but we’re still efficient. And don’t you think it could be less M&A for halving if these conditions persist? Thank you.
