Gregory Beard: It’s important that we don’t expect like equipment delays. This stuff is mostly off the shelf. We can assemble them pretty rapidly. And so, I don’t know, this is not something where you order something, you get it six months or a year later. So, it’s just going to be data driven.
Chase White: Got it. That’s helpful. And then kind of changing gears a little bit. I mean, how should we think about the benefits associated with and also the OpEx associated with the Frontier agreement?
Matthew Smith: Yes, I can start. So, I think we have not had the mining uptime that we aspire to, which is at the same time we’ve known the Frontier team for a couple of years and have really respected their work. And so, I think we have entered into an agreement that essentially outsources the management at uptime of the data centers of Frontier. And in the first month of operations, they have shown a market improvement over the status quo prior to them working on our behalf. And I think it essentially is going to allow us to hopefully enter the top quartile for uptime versus our industry peers. And I think I can say that should, I would expect that to happen over the next three months. I’m sure all lenders would agree with that and is incentivized to do so. Like, yes, the Frontier deal has rewards for hitting uptime metrics that include both cash and stock.
Gregory Beard: Chase, I would just add that we spent a significant capital this year, all of which is funded with no sort of incremental CapEx required down the road. And we did that to upgrade the efficiency of the fleet. And as we got through the summer, we just – we weren’t hitting with the stride we expected in terms of uptime on the miners. And so our land, when you spreadsheet it, [indiscernible] and the frontier team represented a – we’ll call it a $5 million to $10 million revenue pie over the next 12 months at a consistent hash price with today versus hiring a team of people to do the same thing, technology stack experts with firmware and other expertise. And so for us it was a – in our view, a no brainer mathematically to bring in the frontier team, and we’ve already seen the fruits of that start to play out. And so we’re quite excited about that kind of meaningfully improving our revenue generation.
Chase White: Got it. Thanks, guys.
Gregory Beard: Yes.
Operator: Our next question will come from the line of Kevin Dede with H.C. Wainwright.
Kevin Dede: Good morning, guys. Kevin Dede. Yes, congrats for thinking outside of the Bitcoin mining box on the carbon capture plan. I guess I’m kind of curious about your go sort of no go decision tree. I mean, as it is now, you’re rolling out your first big real life test. And I understand you’d like to go, I understand Matt’s comments. You can’t see a better option in using your CapEx. But I just like to hear your take on the variable – the inputs that you get from this test and how you rationalize those inputs in making your deployment decision?
Gregory Beard: Yes. Hey, Kevin, thanks for your interest in the comments. Let me just start with just a bit of like a history lesson on the plants. Like part of why this opportunity is here is that we have these legacy plants that are worth hundreds of millions of dollars, and so that’s very much part of the process, so I appreciate the compliment, but like what makes us different as Bitcoin miner is we did – we also have 40,000 rapidly appreciating Bitcoin mining machines, but we have options around power and now around carbon capture. And so, we have this first Karbolith, this first device that we have constructed. This isn’t – while it’s our first big field test, from my perspective, we’ve shown a lot of discipline before coming out to the market and explaining what we’re doing.
And now we’re only doing it after a really extensive testing, lab testing with I can just tell you bucket after bucket, after bucket after bucket of our ash. We’re shipping this stuff out to a lab in California and they have simulated conditions that will emulate what we have in Pennsylvania. And it’s not great weather in Pennsylvania. So this is – we are past the point where we say, well, hey, we’ll see what amount of carbon the ash can capture. We know it’s going to – we know the amount it’s going to capture. The only question is the pace that it captures it. Because this is the chemistry, when we describe the process to guys that are geologists or chemists, they’re like, well, of course your ash captures carbon. You use limestone as a part of the process and it’s not a giant mystery.
It’s a chemical certainty that carbon is going to bind with this process and be permanently and geologically removed from the air. The only question we have is how long does it take? And then how long does it take under certain temperature conditions, under certain wind conditions? We need to study the airflow that the carbon that creates. And by the way, even as I’m thinking and sitting here who knows if we end up sticking 50 Bitcoin mining machines inside of a Karbolith that help that airflow along. It’s where we are going to make this airflow through this ash and it’s going to capture the carbon. It’s just a matter of iterating around it. And I don’t know, hey, we’re motivated and we have a bunch of creatively minded people. And I think we have all the ingredients for a great project.
But hey, then sitting next to a lawyer is like, hey, but it’s not done. We got to do the work. We have to test it. But I can tell you how the story ends. It ends with this ash capturing all this carbon. The timeline is the only question that we’re going to know a lot by the end of today, we’re going to know more tomorrow. And we’ll have a – we’ve announced sort of an Analyst and Investor Day, December 12th. My bet is we’ll put out some news before then. But I think just given the data that we have from the test, I won’t understand it if we don’t have a fairly rapid carbon capture just with our current setup. And then I think the – we’ll still say, well, how do we make it faster? How to make it better? How do we make the process cheaper? How to make the design of these things cheaper?
But I think we’re already really capital efficient because the big project cost was spent $400 million was spent decades ago to build the plants. That was the big expense. And that’s the tough to get part of the process. The Karbolith and this part is the relatively easy part. And we’ll just iterate around it. So I know I didn’t – you’re looking for a day that’s in – I mentioned that some days and we can’t give you that yet.
