Gary Vecchiarelli: Hey, Josh, great question. I’ll jump into that. So 2022 was a challenging year. Everybody knows it on the energy side. Our third fiscal quarter, we had prices right around the $0.04 range on average. And all these prices I’m going to name are across our entire portfolio, owned and operated and the hosting. Q4 fiscal ending September, we saw those rise and they were right around $0.05. And last quarter, we did see prices start to average around $0.06 is where they rose to. With that said, we were able to navigate those really well because of our active energy management strategy. But also most importantly, we’ve been put in a position and we’ve recently seen power prices as low as $0.018 at our facilities. We’re consistently seeing prices in that $0.02 range.
And right now, if you do a look back at, for example, at the last 7 day average, we are seeing across all our entire portfolio an average price at $0.031. So we really saw December be a tough month, and then January was – it looked great. It was kind of the godsend that we needed to shift tides and bring the margins back where we want them to be.
Josh Siegler: Understood. That’s very helpful color. Appreciate that. And then looking forward to the rest of 2023, can you provide an update in terms of your relationship with MEAG right now and how you’re thinking about power costs for the rest of the year? Thank you.
Gary Vecchiarelli: Yes, absolutely. We’re having really constructive conversations. One of the things we’re finding is the active energy management strategy we’re deploying, we’re actually outperforming the fixed price opportunities that we have in front of us. And so based on that, we feel like patience is going to be part of our strategy in dealing with them. And the reason that is, is because when you buy a locked-in power strip, for example, you – the other side of that, the hedge is really making a bet on the upside or the downside. And our ability to manage and avoid a few hours here or a few hours there, again, our average power price is outperforming this. So I think that there will be the right time, and that right time is going to come as the energy markets continue to drop in energy prices.
We follow the energy markets very closely. And we think that wholesale prices, especially where we operate, but probably the country as a whole are on a really positive trajectory. And this winter being a mild winter and what we’re seeing happen with natural gas prices, we think it’s a little early to strike, and we’re going to wait and cool our heels until we pick it because it’s going to lock in something for a long term, and we want to make sure it’s as low as possible. And that’s going to happen as the energy providers really do see this impact their long-term forecast of what they’re going to generate on their side is energy providers and revenue.
Josh Siegler: Understood. That’s very helpful. Thanks for taking my question.
Operator: We’ll move next to Greg Lewis of BTIG.
Greg Lewis: Hey, thank you. And good afternoon, good evening, everybody. And thanks for taking my questions. Zack, I was – thanks for all your detail around the path towards that 16 exahash. I did kind of want to talk about or kind of get your thoughts around. Clearly, there is a lot of opportunities on the M&A side. It sounds like of physical assets. But just given the fact that CleanSpark, you mentioned the low leverage, you kind of have differentiated or started to differentiate yourself as an operator. What is potential appetite from CleanSpark and what type of opportunities are you seeing to kind of continue to go down the co-hosting route? Is that something that you have any interest in doing just as you think about whether getting to 16 or even potentially higher later this year?
