So, we’re really happy with where we’re at, but we do expect to make moves early €˜23, mid €˜23 to bring significant improvements to our blended power cost long-term.
Operator: Your next question is from the line of Josh Siegler with Cantor Fitzgerald.
Josh Siegler: I was curious, if you can make some commentary on what you’re currently seeing in the secondary market as far as pricing for rigs is going. What gives you confidence in your ability to acquire the 95,000 or so of rigs to hit your 16 exahash target based off the prices right now? Thank you.
Zach Bradford: Hey, Josh. Thanks for listening in. What we’re seeing right now from a rig pricing point of view is we are seeing buying opportunities continue to persist in the teens. And we do expect to — and what I mean teens, it’s in the dollars per terrahash anywhere from $11 to $19 and most of that on the low end, depending on if the units are state side or not. What we are anticipating is we’re anticipating there to be plenty of inventory available, especially over the first six months of next year. I do think that prices will stay largely suppressed for at least a few more months. With that said, though, one of the things we’re keeping a very close eye on is that when Bitcoin prices move up, the price of rigs seems to move up a little quicker than Bitcoin does because everybody’s moving in anticipation and worry that they’re seeing in the rear view mirror, which is why we have strategically chosen and the way that we’re going down its path is from a dollar cost average point of view.
We’ve acquired machines in the low teens. We’ve acquired machines in the 20s. We think that the fundamental long-term value is probably in the 30s. So, anything below the 30s we see is a really good thing. But we are absolutely confident that we can acquire those rigs at the low prices. So, a lot of inventory out there, we’ve obviously been privy to everything from new rigs coming directly from brick Bitmain. We’ve seen bankrupt asset cost. We’ve seen a lot of different things. So, there’s definitely 95,000 rigs out there for us to acquire. We also could, of course, evaluate doing future contracts back to the traditional way with Bitmain. And again, Bitmain is not the only manufacturer out there. There’s MicroBT and, and Canaan. We, of course, have chosen to work mostly with Bitmain.
That’s what we watch closest, but we’re seeing some really great technology moves out of MicroBT and the whatsminers in particular. So, suffice it to say, great prices, plenty of rigs.
Josh Siegler: Great. That’s extremely helpful color. Thank you. And I was wondering if, you can provide investors with the update on how to think about your auto balance, especially, the significant decline we saw in October. Is this kind of the new level that you feel comfortable with or is it more around tactically selling Bitcoin to help fund both, your site expansions as well as your miner rig purchases? Thanks.
Zach Bradford: Yes. How we want our investors to think about it is simply that using Bitcoin real time is the right move. Auto balance is the same as having cash in a bank account. But if we can use Bitcoin to get more Bitcoin by putting the cash flow from those into expansion, into rigs, whatever it may be, that’s the reason that we’re selling Bitcoin. It’s the one to support our operations — essentially we’re paying for our own lunch and not our shareholders. And that’s really how we want to see it. So, our shareholders should know that whenever we’re selling Bitcoin, that means we’re not pulling the equity lever or the debt lever to grow our business.
Operator: Your next question is from line of Brian Dobson with Jardine Capital Markets. Your line is open.
