Mike Grondahl: Got it. Hey, thanks guys.
Paul Prager: Mike, I just want to add, we in our other lives as power investors and owners have had this facility for decades. So, we’re pretty familiar with the pricing up there and we’ve seen the range of it. So, we’re very, very excited about, what we think is our cost profile there for energy at that facility. And it’s what makes it really work as a Bitcoin mining and it’s what made it not work really as a power supplier because it was emitted, it was right there on the highway with all that green power coming down from Niagara. So, we’re pretty bullish on that.
Mike Grondahl: Well, that’s it for me guys. Thank you.
Operator: Thank you. Our next question comes from the line of Josh Siegler with Cantor Fitzgerald. Please go ahead.
Josh Siegler: Yeah. Hi, thanks for taking my question today. A lot of iron is in the fire right now. So, definitely wanted to follow up on some things. First, I’d love to get some more color on the decision to purchase the latest generation rigs, the S19j. I’m curious if you’ve had initial tests with these rigs and how they’re comparing to older legacy rigs. And also, if you could walk through a little bit around the decision around payback period for these rigs as well, that would be helpful.
Patrick Fleury: Yeah, sure. So, I don’t know if Nazar, are you able to answer that first part?
Sandy Harrison: Some technical issues there.
Patrick Fleury: Yeah. So, Josh, let us see if we can get, Nazar, one of Wulf’s Co-Founders, COO, to kind of answer that first one. But yeah, on the second one, look, I think the short answer is every single investment decision we take, we’re running return on invested capital calc. And look, that calc, as you know, depends on a couple of key items. One is equipment cost, right? Two is power cost and then three is Bitcoin price, right? And network cash rate. And so, I would say when we’re looking at equipment now, just kind of, I would say, like any of our peers, generally speaking, you know, we want to see an equipment payback term of somewhere between nine months and kind of 18 months. And so, in addition, even given the newest generation of equipment, I think generally speaking, certainly what we use for GAAP and otherwise, but, the lives of these equipment is probably somewhere in the sort of four to six year range, right?
And so, I think we feel like the average life of our equipment, given the location in a more temperate zone, and we’re not obviously using immersion cooling, will be on the longer end of that spectrum, whereas a lot of, we think, equipment that’s used in hotter with immersion cooling will have a lower average life. So, I would just say those are the parameters that we look at and then, Nazar, are you on or able to answer that first part? If not, Josh, we’ll get back to you on that.
Sandy Harrison: He was muted. Okay. Nazar? Hi, Nazar. Can you hear us?
Nazar Khan: Yeah. Can you hear me? Good morning, Josh. So, on your first question on testing of the units, the architecture of the units is similar to the S19j XP and the S19j XP, we’ve been running now for quite some time and the results that we’ve had at LMD and Nautilus both have been very strong. We’ve heard in the market that the XPs have been finicky and from what we understand, a lot of that comes from operations kind of in hotter, industrial environments, both our facilities in northeast and a little more moderate. So, we’ve had a very kind of strong performance on the XPs and that the architecture for the JXPs is similar. So, we are expecting, similar, if not better performance out of the JXPs in terms of how we’re thinking about it.
