Marathon Digital Holdings, Inc. (NASDAQ:MARA) Q1 2024 Earnings Call Transcript

John Todaro : Got it. Thanks guys. Appreciate it.

Salman Khan: Thank you.

Operator: Thank you. Our next question comes from the line of Joe Flynn with Compass Point Research. Please proceed with your question.

Joe Flynn: Hi. I had a question. I was wondering what the progress is on Auradine and also, Brad, when you talk about the Kevin’s latest and greatest 21, are you referring to 17.5 joules per terahash the most recent Pro version, where it’s 15 joules per terahash? Thanks.

Fred Thiel : Yes. So on Auradine, I’m not going to comment specifically on all the company’s achievements, because I’ll let the management team do that. But what I will say is we are in the process of — we’ll be deploying Auradine in our 2-phase immersion tanks will have essentially the ability to put almost 800 kilowatts of mining capacity in a 8-foot container, which is a huge power density factor, and you can essentially take a — what is today a — if you look at our UAE sites, we have essentially each 40-foot container is about 1 megawatt. Well, we can retrofit that container to dual-phase immersion and end up with 3.2 megawatts in that same form factor at fairly low cost for the upgrade. Same miners, just more of them and the ability to consume more power, more power is available.

So we believe that that’s going to be a big differentiator going forward. The advantage with Auradine miners for us is a lot of the intelligence that’s built into them regarding fleet management. And like any fabless semiconductor company, Auradine is building wafer capacity with their vendors and continue to grow supply. And we’ll continue to buy product from them as the supply chain increases. In regards to the Bitmain question, yes, there’s a mix of pros and the 17 joules per terahash. The immersion version of the 2021 does not come in, in a Pro version. But the immersion version operates more efficiently than the air version. So it kind of mitigates the two. Hopefully, that answers your question.

Joe Flynn: Yes. Appreciate the color. Thanks.

Operator: Thank you. There are no further questions. I’m going to turn the call back over to Rob Samuel for closing remarks.

Robert Samuels: Thank you all for your time today. If you have the questions that were not answered during today’s call, please feel free to contact our Investor Relations team at ir@mara.com. And thank you. Enjoy the rest of your day.

Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.