Geoff Morphy: I think you’re right. Originally with the halving coming up, we thought probably 2025, maybe even 30% of the network hash rate would come off from the less efficient miners. That’s what’s happened in the past. But this time with the ETFs, the demand, the price going up to an all-time high, effectively like five weeks ahead of the halving, these are different market conditions that are prevailing right now. This — we are in a transitionary market, a paradigm shift, as I said in my script. And things at this point are different this time. And as a result, I think it’s probably going to give a longer lifespan of some of those less efficient miners. It’s going to make some of the miners that maybe have been struggling because of older machines, not getting the same type of margins, maybe not the same type of access to capital.
It allow them to continue to carry on as opposed to either going out of business or seeking somebody larger that can come and upgrade their operations. So I think you’re right there. It may not have the same level of M&A activity and consolidation as we probably thought even a few months ago.
Fedor Shabalin: I appreciate all the current details around here. Thank you very much, guys, and continue. Best of luck. Thank you.
Geoff Morphy: Thank you.
Jeffrey Lucas: Thank you.
Operator: And we have a follow up from Kevin Dede from H.C. Wainwright. Please go ahead.
Kevin Dede: Thanks for staying on, gentlemen. I appreciate it. Ben, you showed a shot of the T21s racked up in location in Quebec. But what wasn’t clear was whether or not you’re intending to run them in three phase or two phase, if you’re using the same PDUs that you were using for the M30s, and what kind of CapEx requirement or any change you’d need to make in those legacy facilities.
Ben Gagnon: Yeah, great question. One of the advantages of the T21 is kind of the robust design of it, and that includes a pretty powerful power supply unit that operates at three phase. So in order to support that, we are upgrading all of our PDUs to smart PDUs that supply the power in three phase. So if you look back on that photo, what you can see is you can see the PDU that’s above the T21s looks pretty different than the PDU that’s below. The upgrade process there is incredibly simple. Basically, the panel goes right up to the rack, and then you’ve got a one plug from the PDU directly into the panel and the breaker there. We don’t even need to change the cable, we just need to change the PDU that’s plugged into the cable.
So that plug-and-play nature of the PDU upgrade makes it really, really cost effective and really, really quick. That is the only infrastructure upgrade that we need to make at basically every single site that we operate at. And Jeff Lucas could probably speak better to the CapEx costs associated with that.
Jeffrey Lucas: Actually, the CapEx costs associated with what Ben was spoken to was pretty modest, particularly very modest relative to what’s involved with the miners themselves.
Kevin Dede: Thank you.
Geoff Morphy: I think, just to — Kevin, just to punctuate a little more what we were saying there, keep in mind 68% of these T21s are going into existing facilities in a plug-and-play installation. And when Ben said it was pretty straightforward, yes, we are upgrading the racks modestly, but we’re ready to go. It really is a straightforward and certainly a less complex build out with substantial gains than building new infrastructure. So this — when we said this is going to be the fastest, most dramatic increase expansion in our company history, it’s true. And this is why. Unfortunately, it’s so cost effective. And frankly, simple in comparison to building new facilities. We have our hands full with the two big installations in Paraguay that are going to take the other miners. But this is going to be a big year for us. And fortunately, most of it’s fairly straightforward. So I just wanted to add that.
Kevin Dede: Thanks, Geoff. Thank you very much, gentlemen. Appreciate you following up with me. Thank you.
Geoff Morphy: Thank you, Kevin.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Geoff Morphy, CEO, for any closing remarks.
Geoff Morphy: Thank you all for attending today’s conference call. We look forward to updating you with our monthly reports, other developments and on our Q1 2024 conference call in May. Thank you for attending.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
