And you don’t have to actually be an operations expert. And the pricing of hiring those third party operates is fair and it’s not huge. And so we believe that as we look at the macro direction of renewables coming up congestion risk, happening governance, wanting to get involved. Not all of those folks who either want this asset that has kind of curtailable load or who want exposure to bitcoin mining actually want to be best in class operators and learn how to really operate facilities at scale if they can hire someone to do it for them, especially if it ends up being cheaper than them doing it themselves. It’s a really interesting product offering and that’s kind of where we’ve seen opportunity. And so the buckets of opportunities we see as we see kind of sovereigns and nation states coming and mining and lending our technology and our operational expertise, having kind of over a gigawatt now of assets under management, 27 exahash that we kind of recently announced in our production report.
And then also I think smaller kind of subscale miners are people who want access to mining. For them to hire a whole software team, data science team, operations team development team, it’s a lot of fixed SG&A, and so by hiring us, they’re able to have best in class talent, best in class software without having to spend those costs in order to build and grow. So, and we like that business because when you look at all in cost to mine a bitcoin, you have your cost of energy, your side expenses, then you have large corporate SG&A amongst kind of our industry. And I think that’s been a big issue historically. And so for us, kind of those stable cash flows offset a lot of that succession a, for us and our actual kind of cost of mine and bitcoin, from cost of energy and gross profit to kind of drop it down to the bottom line becomes a lot smaller of a step up because we have a lot of those six cost subsidized.
The second part is the colocation business. And so as we build more megawatts, we believe that those megawatts will be valuable. And so the first part of building megawatts is kind of like having that infrastructure and then it’s what’s the highest and best use? Do we put our own machines there? What if we get the full kind of tranche of megawatts we spoke about, now we have more megawatts. Do we want to put all of them with self mining machines? Or if you look at the colocations, we’ve implemented three different models historically through our sites and kind of the sites that we manage. The first is a very simple structure, which is we have the site, we invest in the site customer comes and pays a fixed lease payment per month. And so we pass through the cost of energy.
We don’t take that exposure. We don’t take uptime exposure. We, the customer basically pays a fee every single month, and it’s easy to model what our payback period is and what our IRRs are on that investment. On the other side of the spectrum, we basically take a profit share. Right? And we announced that with Celsius last year. And we basically take that exposure of hash price volatility without spending the CapEx to actually buy the machines upfront. And at different markets, you have better deals that you can strike. And then we had this kind of middle ground scenario, which we implemented when we were managing the sites on behalf of generate, which was instead of seven cent hosting, we can give customers a discount to a floor, call it $0.6.5 or $0 6.4 cents.
But in return, we would basically get more upside if hash prices ran. And so every single day, we looked at hash price and we had a hosting rate aligned with hash price. So you bring the floor down to 6.4, you can go up to $0.14 for the customer. That makes sense, because they have a lower floor, so they get more protected. On a downside scenario, if hash prices run as a percentage of their revenue, it’s still lower than when they first signed that deal. And so that allows you to get some exposure, but have a protected downside. And so we think owning infrastructure is extremely interesting because you can own machines, you can have really stable kind of cash flows, or you can have good proxy to the upside of hash prices without the CapEx spend as well.
And so I think having a multifaceted growth model is extremely important in the ability to manage through volatility and to capture as much upside as possible, meanwhile, protecting your downside. Thanks for that color, Asher, and congrats again on your first earnings call. I really appreciate the analytical approach to your strategic decision making.
Bill Papanastasiou j: Thanks again. Thanks, Bill. Appreciate it.
Operator: Thank you. There are no further questions at this time. Please proceed with any further remarks.
Asher Genoot: Really appreciate everyone for hopping on this morning and for listening to my first earnings call. The team has been working tirelessly and around the clock since I took over. We’ll connote to work tirelessly around the clock for our shareholders. So appreciate everybodys time.
Operator: Thank you. For your anticipation. This conclude the program you may disconnect. Everyone have a great day.+
