Kevin Dede: But I wasn’t really looking for that. I appreciated the way you responded to the question, Greg. I just wanted to hear about your thinking. And I appreciate that.
Gregory Beard: That was like, I think my – you’ll know it’s over when we’ve won. That’s when it’s over.
Kevin Dede: Well, winning is only temporary, Greg. It’s a fight every day. I’ll tell you, I don’t think you want to put your miners in one of these Karboliths. I mean, I could see piping maybe some immersion heat over to it. That would make sense, but I think dust and machines just don’t mix well.
Gregory Beard: Come and check it out in person. And then we’d love to get your engineering advice.
Kevin Dede: Yes. Well, I think you have far sharper minds than mine on it. Can you give us an update on that potential third facility, the 25 megawatt one you guys have alluded to in the past?
Matthew Smith: Yes. So Kevin we tried to be thoughtful about addressing this. We have done extensive diligence and have had numerous discussions with third-party site owners and potential partners. And if we wanted to pull the trigger on one of those today, we could. But the reality is we are data driven allocators of capital and very much process oriented. And while we do, we are excited about the prospects of a third site with this inventory of $10 million or $15 million of data center equipment we have that we’ve already paid for. And we’re weighing that constantly against minor efficiency upgrades at our current sites where you could add the next hash or two in place at existing clubs [ph] with our low and we believe going much lower cost of power.
And so, those are to be compared against a secular growth story with no having event in the carbon capture opportunity that we just discussed. And so what I think [indiscernible] and Greg, if here it is over the next 69 months, there’s no having in carbon capture. We can test and start to deploy capital potentially if it’s data driven and makes sense in early 2024 and start to potentially sell these private carbon credits in the private markets for values, well in excess of what you can put money to work in a Bitcoin miner right now. And so what I would just point out that we’re going to do the right thing with capital. We’re going to be transparent about it. And so we look forward to the data we’ll have hopefully at the Analyst Day to help make that, that decision process clearer, but it’s about creating value and not putting a dogmatic vision of what a Bitcoin miner should be ahead of creating value and exploiting these assets to the fullest.
Kevin Dede: Thanks, Matt. Can you just rationalize that commentary with your four exahash target and the 3000 high spec miners mentioned in the press this morning?
Matthew Smith: Yes. So those miners were actually the tail end of the deliveries of already – of previously announced July purchases and the expanded CAN [ph] and Hosting agreement. So we’ve made no incremental minor purchases since July. All those deliveries happened in August as planned or at the latest – early September, but mostly by the end of August. And so, the press release needed to include the third quarter deliveries. That’s all we were citing were previously announced minor deliveries.
Gregory Beard: That’s for the hash. Yes. But as for the four exahash you can impute from the monthly coins that we have significant organic opportunity to increase and grow our hash – our actual effective hash rate by improving operations. And so we can pick up four or five, 600 petahash here over the next three months is in pretty short term with Frontier. And we look forward to doing that. And we then, we will systematically deploy capital like I described it’ll be carbon capture returns and payback unaffected by the halving. It’ll be replacing and upgrading minors in place that Scrubgrass or Panther, or it will be the third site. We’re going to do whatever makes sense to create value.
Kevin Dede: The CapEx guidelines that you’ve outlined, would that include I guess vehicles for transportation of ash, or do you feel like you’re well set there?
Gregory Beard: Yes. So we, thankfully we are, I believe we’re experts at moving materials, including ash on site at our plants. We do it every day. We have those costs embedded in our fixed and variable OpEx assumptions in our slides embedded in the EBITDA kind of the run rate EBITDA, illustration we provided. The capital expenditures are for two things primarily that we’re expecting for carbon, the $50 to $120 a ton. It’s primarily for the equipment, for the Karboliths. The final form they take, assuming they’re effective. And then it would be the kind of a flex labor in addition to the baseline fixed and variable operating expenses we’ve forecasted embedded in that illustration. I think we feel like we’ve been conservative in what we put out. We don’t want to miss. But it’s based on what we know now, it’s still early and so they’re our best forecast.
Kevin Dede: Well, congrats again, Gent [ph]. Very, very interesting. Thanks for entertaining my questions.
Matthew Smith: Thanks.
Gregory Beard: Thanks, Kevin.
Operator: [Operator Instructions] Our next question will come from the line of Josh Siegler with Cantor Fitzgerald.
Josh Siegler: Yes. Hi guys. Thanks for thinking my questions today. Congratulations on this new initiative, sounds super interesting and unique among the Bitcoin mining space. Most of my questions have already been addressed, but I want to touch on a couple of things. First, is there a political risk associated with changing administration that could impact the IRA and how you’re thinking about tax credits in the future?
