Jaime Leverton: Yeah. No. No. My pleasure. It is something we are very excited about. So the only facility within the four assets that are covered within that stalking horse bid that we had prior association with is the North Bay facility. So if you recall, we had just under 40 megawatts stood up at North Bay and so we would be looking to bring that data center capacity online as quickly as possible. And we believe that, if we are successful with the stalking horse bid and we would be able to close that sometime in the next two to three months. And so we would be looking to bring the North Bay facility back up as quickly as we could, obviously, infrastructure work needs to be completed. We need to bring the miners back to site.
We will be dealing with the dead of winter in North Bay at that time, most likely as well. So it will take some time to get us back up and running, but our intention is certainly to bring that site back online. And then the other three sites we mentioned, 40 megawatts at Kapuskasing, 110 megawatts in Kingston and 120-megawatt facility in Iroquois Falls. It remains to be seen what — how we would provision in and work with those assets. But as I touched on in my earlier commentary, it gives us a lot of optionality, which we love to have control directly over the largest operating expense for a Bitcoin miner, I think, as everybody knows, is the cost of power. So having better control over power inputs with respect to these plants is very exciting.
I think there’s a lot of upside as we look to the future with respect to how we see energy prices continuing to move in the market and our ability to have power assets that we can sell into the energy market. And then also be in control of our own destiny with respect to how we want to use that power when it’s not being utilized or needed by the grid, whether it’s for Bitcoin mining, high performance computing and we have got a lot of optionality there and excited for how this may progress for us.
Joseph Vafi: Great. Thanks for that color, Jaime. Much appreciated. Congrats on progress this quarter.
Jaime Leverton: Thanks so much, Joe.
Operator: Thank you. One moment for our next question please. It comes from the line of George Sutton with Craig-Hallum. Please proceed with your question.
George Sutton: Thank you. And my congrats on getting through the SEC process. I know how challenging that’s been. So, I am curious from the USBTC side, they have made a lot of progress, including the Celsius network deal. Can you just walk through sort of what’s your — what they are bringing to the table that may have changed since the announcement and how that improves the value of the deal from your perspective?
Jaime Leverton: Yeah. We are certainly very, very excited with the progress that the team has made with the Celsius transaction and I am not going to get into details on this call. But it is publicly available information where things stand with respect to the Celsius transaction. Certainly that — if that is ultimately successful and close it out will be a nice addition to the new Hut, as we lovingly refer to it internally, and, again, as I touched on earlier, really like the diversified nature of the USBTC business and they have certainly been growing their fee-based revenue lines since we first started talking to them almost a year ago with the managed services business, as I referenced, and then the work that’s being done on Celsius.
So, certainly, very, very pleased with the progress that the team has made over there and really looking forward to just bringing a whole team together and continuing the growth that we have been pursuing independently together as one team.
George Sutton: Jaime, I am wondering, you mentioned in your prepared comments that you are looking for opportunities to work your stack. Have you contemplated synthetic swaps as an alternative to bringing the Bitcoin on your balance sheet? In other words, taking 15% of the value, buying a swap, and taking the other 85% to redeploy?
Jaime Leverton: I don’t think there’s anything Shenif and his team haven’t looked at with respect to our options long-term around the stack. But let me turn it over to Shenif if you want to speak in more specifics about the swap rate in particular.
Shenif Visram: Yeah. Thanks for the question, George. I mean, obviously, we have looked at a lot of options with the rise in Bitcoin price covered calls have obviously been something we have looked at very diligently. Once we close the transaction with USBTC, we will be in a better position to kind of move forward with some plans we want to do. But, certainly, it’s on our list of items we want to work on, on leveraging our stack and creating more value for our shareholders from leveraging the stack in a different way than we have done historically at the company. So actively in pursuit of these items, and hopefully, once we get the deals over the line, we could spend a bit more time and then share with all of you what our plans are around that.
George Sutton: Understand. Thank you, guys.
Shenif Visram: Sure.
Operator: Thank you. One moment for our next question please. It comes from the line of Bill Papanastasiou with Stifel. Please proceed.
Jaime Leverton: Good morning, Bill.
Unidentified Analyst: Hi. Good morning. Hi. Good morning. It’s Daniel [ph] on for Bill today. My first question here is on your USBTC treasury strategy. Are there any plans to change strategy if we see an approval of a spot Bitcoin ETF?
Jaime Leverton: So, Shenif, just talked about some of the research and exploration that his team is doing around options to work the stack. I am not sure that we have any more color to add there and with respect to the treasury management and our historic and ongoing commitment to holding Bitcoin on balance sheet, I don’t have any additional color to add versus what I touched on in my opening remarks.
