SATO Technologies Corp. (SATO) Earnings Call Transcript & Summary

There we are. Hey, guys, welcome to first of its kind here -- we've got an inaugural live cast. So today, we're going to be doing Q1 earnings from SATO Technologies. This is one of the companies we've covered for quite some time on the channel, really interesting developments from Romanian team that we're going to get into you guys, already 20 people in the room, Romain. Full house here standing room only guys. So we're going to do 30 minutes of presentation. We've got the deck from SATO Technologies, all loaded up. We'll walk through the earnings, some of the key catalysts for this company. And then we're actually going to flip it over to a live Q&A session. So you've got Romain Nouzareth, he's the CEO of SATO Technologies. We've also got the CFO, Kyle Appleby here to help answer some of the more financial questions. And once we get through those of you guys, then we're going to open it up to the floor, can ask real-time questions live to the leadership team here of SATO to learn more about the company. So Romain, Kyle, thanks so much for being here. We really appreciate the courage of coming on live and facing the viewers here and seeing what they have to say from their mouth.

Bryce, Anthony, thank you very much for having us, and welcome, everyone, who is watching live. We're super happy to do this first presentation. It was important for us to get access to the public to show what kind of projects we have been working on for the past 7 years and also more importantly, what do we go from there. So we've been working with you for a long time. Our voice have been on your show a few times already. I always had a great time. Anthony, we've known each other like 3 or even more -- even 4 years that we had this relation. So it's really a pleasure to be with you all today.

So great. Anthony, thanks so much for making it. Kyle, it's your first time on the program as well. So I just wanted to give you a quick opportunity to say, hi, introduce yourself, how you kind of came into the SATO family, and then we'll get right into it here.

Yes. Well, thanks again for having us. Yes, I'm the CFO since going public in the company. I work for a number of small cap companies in various industries. I've worked in the crypto business. I helped Hut 8 Mining go public when they met in I stayed on as a CFO for them as well as another crypto-based company called Tokens.com, which trades on the NEO exchange, help them go public and also remained on as a CFO for them. Both of those companies grew to a size of needing a full-time person. I'm very excited and happy to be with SATO as their CFO and helping them grow. And happy to be here, guys. Thank you.

Excellent and some good experience with capital markets and the crypto space as well. So we'll move right over to the presentation. You guys -- I'll probably switch to the views just so everyone can see the full slides here. Romain, are you going to be kicking off the presentation? Or will this be Kyle walking through the first.

I will start, and then Kyle will go over for the detail of the financials for Q1.

Sure. So we'll get right into it, everybody.

Well, thank you again. This is a lawyer slide to start off, our forward-looking information. Everything I will discuss, of course, is assumptions and estimates. Of course, we are reporting audited financial results, but for everything that is in the future as a forward-looking information. People can go online and read all of the text, if you want. Next slide, we are going to start talking about the company, what we've been doing, how we've been working for the past 7 years in the industry and more importantly, where do we go from there. We will then -- and I will then, as I was saying, I leave the stage to Kyle to go over our Q1 financials, amazing results for this quarter, again, after an amazing year for 2023 Q1, $4 million EBITDA, close to $6 million of revenues, operating cash flow positive and CAD 7 million in cash in the company in digital assets in cash. So we'll go over the details. And then we will finish with the Q&A with Bryce and Anthony, again, really happy to be a first executive doing a live cast and talking to our public and talking to our to people who are fun of Bitcoin mining. I know more and more people are really into Bitcoin mining and public Bitcoin miners. We are a small cap, we are a small brand, but we're working hard to become one of the big companies in the next 3 to 4 years or even faster if you can. So to start, who we are. Today, we run 20 megawatts of energy from Quebec, and that represents 0.1% of the total Bitcoin network. So it means that we get 0.1% on every block rewards and every transaction made every 10 minutes. We are not that bigger, as I was saying. You have bigger companies. But as you know, in the market of Bitcoin mining, it's very much distributed. So the biggest players at 3%, 4%, 5%. So we are in the race to go and to grow as far as we can and as fast as we can. One thing where we are excelling at is to be efficient in our reporting and our financials and also because we have one of the best energy in the world. In Bitcoin mining, the energy is key, it's 75% to 80% of your cost. You need to have a low price of energy, but more important than the low price of energy, you need to have an energy that is stable. And that's what we have in Quebec. Not only we have one of the best price in the world around $0.043 a kilowatt hour, but it's a very stable energy. People are focusing too much on just the price of energy, but it's about how can you distribute this synergy correctly into your data center to make sure that you're efficient. On top of this energy, that is stable and well priced, it's an energy that is close to being 100% renewable. It's -- 95% in the grid in Quebec is hydroelectricity. The rest, it's via gas, wind and solar. There is nothing from the carbon type of power. As you can see on the right, every year, we've been showing a growth in revenues and also operating cash flow positive. A few exceptions, mainly in 2021 when we went listed on the stock market. It's a CapEx business intensive. We run 2 types of CapEx. We run a CapEx for our infrastructure and CapEx for our computing power. Because we are infrastructure people and operator, we have built our own data center. We are transforming our own energy ourselves. It's a specific type of CapEx. Once these data centers or centers or mining farm or however you call it a build, you need to back them with computers and you need to use the energy that you have transformed to the maximum. That's another type of CapEx. So in order to be successful, we wanted to follow the steps other publicly Bitcoin miners have been doing before us, which is to get listed stock market. And that's why in 2021, we were listed on the Canadian market, on the Toronto Stock Exchange. Our ticker is SATO, like Satoshi Nakamoto, I'm sure, obviously, everyone have understood. And we're also available in the U.S. on the OTCQB. Next slide, we are talking about the history of the company. It's a company I've cocreated back in 2017, have been running in since then. And whatever the market, whatever the price of the Bitcoin whatever the difficulty, having COVID, crypto winter, you name it, we've been able to grow and we are going to continue growing. Myself, I'm an entrepreneur for the past 25 years, started in 1995 in France, moved to the U.S. in 2003 and in 2017 we decided to start mining. First, it was more like a side project. We were like, hey, passionate with Bitcoin, understood what it could become. And it sounded that mining was simple to do. So we decided to put our money together, but also our effort together and we started our first mining farm in Quebec, and it was working pretty well. We've been able to find 20 megawatts of energy. We've been able to find and source the right type of miners and we've been able to grow organically over the years. And the key to succeed in this business is efficiency. Whatever the price of the Bitcoin is, whatever the difficulty is, focus on extracting the most Bitcoin from the energy you get. That's the only way to survive. Next slide, please, Bryce, we are talking more about efficiency and efficiency, again, that's the most important thing that a miner can be focusing on. You need to build for the bad time. Of course, when the Bitcoin is up and when the hashrate is not completely crazy, everyone is happy, lots of people are making money, and that's why more people are plugging computers, but you need to think about the bad times. That's the only way to survive. And in order to survive, you need to have no intermediaries, again, between your energy and the computing power that you are producing. And that's what we do. We run our own energy, we are transforming it. We are distributing it into our data center to make sure at the bottom of our computer to make sure that the energy that we get is always stable number a certain level of voltage. Same thing for the temperature. We are doing our own cooling in our data center, only 2% of our energy is used for cooling. So it's very, very efficient. We have developed our own software in order to manage our fleet of miners. Today, we have like 6,000 -- close to 6,000 computers mining rigs running into our data center. I forgot to say we are 100% self-mining. So all the Bitcoin we make is for us. We don't rent our space to someone else. The efficiency to come back on this, where do we get it? So the software, the data centers, the electricity, the cooling and also from the miners that you have in your data center or your mining farm. It's important to have a short time idea, but also a very long-term vision with your computers because you want your computers to run as long as you can. It's a long-term business for some of the miners. We have close to 50% of our Bitcoin miners, rigs that are fully amortized. And we are making sure that we can increase our fleet of miners. Recently, we are publishing like every Bitcoin miners were publicly listed or most of them at least are -- monthly production. It's available on our website, www.bysato.com anyone can go and check everything. But we announced that we bought a new type of generation of miners S19, T21, S21, and we are going to continue doing this, because once you are efficient, grow big. And this is exactly where we are. If you want to go to next slide, Bryce, this is where we are. We are now at the beginning. I wouldn't say there is a cycle in our industry, but in Bitcoin usually, we see a cycle around 4 years. And we are saying around like how can we grow in the next 3 to 6 years. And it's the beginning of a new era. It's a new era for computing power in general, we started with Bitcoin mining. And like many other Bitcoin miners, we're also now looking at developing our expertise and experience into hosting computers and computing for AI and HPC. so we see 3 main phases for us, one, very short term, it's reaching a bigger exahash into our mining farm in Quebec. With our 20-megawatt of energy and the data center that we have, we could potentially reach 1.1 exahash of mining power by just adding new type of computers our center without any CapEx for infrastructure in the data center, we know et cetera. So that would be a first goal for the company short term is to increase our hashrate into our data center in Quebec. We are also starting for AI and HPC, and I will come back to this because this is really interesting what is happening today in the market. We have also another differentiator, we call it, BOB, building on Bitcoin. It's a more long-term vision on how can we make more revenues by collecting more fees in the future. And the idea is to develop software on top of Bitcoin that people will use. And by using them like on the Bitcoin network they will pay fees, and these fees -- we will collect them as a provider of the software. It's a longer term, it's more thinking about how can we be more performance for the next halving and the next halving. And that's something that is coming. But first, -- let's talk a little bit about AI and HPC. I know it's very Alamo, I'm sorry, can you come back? It's very Alamo, it's very at the first word of the day. Every Bitcoin miners, we tell you they are doing in AI and HPC. The thing is that we have a role to play in this new market. It's a new market because if you look at the data center in general, you have the legacy players, the big players, data centers are running hundreds of megawatt, traditional cloud computing. Then you have the hyperscalers, Google, Microsoft, et cetera. They are developing their own data centers. And of course, they have the mean and they can do everything they want to go at the speed they want, but they are going to do it for themselves. And not everyone will want to be hosted into the data centers. So there is a place for a new entrant to come into the market and to deploy AI and HPC computing power. And our idea and vision is that it will work extremely well if you mix it Bitcoin mining because if you look at the power level, how do you manage your energy, Bitcoin is exceptional, because we can curtail. We can stop our rigs in milliseconds, and give back the energy to the grid. You can't really do that with AI and HPC. You want to make sure that you have a very, very, very high access to your computer, 99.9% for AI and HPC. But at the grid level, at the energy level, if you say my Bitcoin miners are going to be at the cursors that I will be able to manage to manage electrical load on the grid that I'm on. But I will keep the AI and HPC at the same level it was, I think we will win. And I think this is where we will be able to find energy that was probably unlooked or overlooked by other people who are looking to get access to the same things. So for us, it's a key development. It's a new development. We haven't done it yet. A lot of people are talking about it. It's a new market. Is it going to be 4-year cycle, 6-year cycles, 10-year cycle? I don't know. I think nobody knows and honestly, and if someone pretend to know, good luck. What I know is that our knowledge, our expertise is transforming energy into computing power and we are going to do it for AI and HPC in the future. The way we want to address the market is to do it at least to start via the infrastructure play. Exactly like we did with Bitcoin mining. We started by building infrastructure, transforming the energy, having the data center ready. Maybe we will host for someone else, but the margin are incredible in this business. You could sell easily at $0.25 to $0.30 a kilowatt hour for AI and HPC, something we buy for [indiscernible]. So it's a market that it's really so interesting what's happening that in some regards, it could make the hashrate go down. You've seen a Bitcoin miners thinking about transforming part of their energy for AI and HPC. It will be taken out of something. It will be probably on the hashrate. So it's really a new moving play, and we want to be part of it. I believe we have a role to play maybe, again, not competing hyperscalers, not trying to replace the traditional data centers, having a specific way to do it as a Bitcoin miner as innovating on Bitcoin miner as being efficient on Bitcoin mining and doing it for AI and HPC. The second phase and -- the 3 phase, I'm not going to take too much time, but the second phase for us in '25, '26, even have started yet is to identify sites for us to grow outside of our center one in Quebec. We want to grow outside of Quebec. We are mainly looking in the U.S. a little bit north of Europe. We are also open to other countries, but it's true that this is where we know, this is where we are based, and it's also where you can really grow at scale, mainly in the U.S., you can find different kind of energies at scale and you can grow your operation. So at the first -- second set in the next 12 to 18 months, it's really about finding site of our size between 20 to 50 megawatts and being able to work with them, acquire them, host in them, a partnership with them. If you have one contact us, we are here to go, we are publicly listed. We can put some CapEx to play for this. Also, we think that in the design that we will do, will mix Bitcoin mining and AI computing power. And then for the next phase, of course, it only to find bigger energy. The idea here would be to sign a large PPA for a large amount of megawatt. It's more expensive because you need to buy high-voltage energy, so you need to transform it yourself. You need to have substation, transformers, et cetera. It costs more money as a CapEx for your infrastructures, also it takes time to build everyone from hydrogen, Tesla, anyone is trying to get energy. Everyone sees the value of owning energy and transforming this synergy. But by doing this, you can lower your price of kilowatt hour because if you're buying it high voltage, you will be able to get a very, very low price for your kilowatt however, with the idea to become a computing power leader in the next years. Again, we understand, we are a small player, we are a small fish, but we're getting there. We have everything ready to get to the next step and -- the next steps of our evolution People are bigger than us, yes. But in the business, it's not the bigger survive, it's the most efficient. That's what we've been doing, that's what we intend to continue doing. We'll go on the Q&A at the end. First, I'm going to leave the floor to Kyle Appleby, our CFO, to discuss more about our exceptional Q1 results. Kyle, please go ahead.

Yes. Thanks, Romain. Yes, I'm very pleased to present our positive results here. Just to first note, these results here that we see are all unaudited and reported in Canadian dollars. And for our full financial statements and MD&A, you can go to SEDAR Plus. So feel free to go there and review them. I'll present our highlights here. As Romain mentioned our strategy is growth, growing our computing power, our brand and maintaining efficiency. So you can see our revenue steadily growing over quarter-over-quarter, reaching almost $6 million in Q1 2024, which is an increase of 51% compared to Q1 2023. The revenue was derived from earning 83 Bitcoin during the quarter and was helped by obviously the steadily price increase of Bitcoin reaching about CAD 95,000 at the end of March. Our cost of revenues, which is mainly our electricity costs also includes insurance and repairs and maintenance, reaching a good gross profit in Q1 2024 of almost CAD 2.7 million. So our efficiency comes through. You can see our centers earning money and maintaining efficiencies. So the gross profit was 45% in 2024 Q1 compared to 28% in 2023 Q1. When you exclude depreciation, it's a 58% gross profit in Q1 2024. Our operating income after operating expenses as well as our net profit and the really strong EBITDA of CAD 4.9 million. So the results of our strategy, our growth and efficiency really come through with our results, which are really record results for us and a really strong quarter. If you want to take a look at our next slide, Here, you can see our compute power profit, which is really our mining profit. So you take our gross profit and add back depreciation and deduct some other income. So we had an 806% increase quarter-over-quarter, which is tremendous growth for us. We're very proud of that. And you can see our centers are making money, positive cash flow, EBITDA, again, almost CAD 5 million, adjusted EBITDA CAD 2.5 million. Adjusted EBITDA is just adjusted for some noncash items basically unrealized gains within our results. So EBITDA has increased 333%, again, all positive, all trending in the right direction following our growth strategy. For our next slide. You can see here our position, at March 31, we had CAD 1.3 million in digital assets, which is primarily Bitcoin, 63 Bitcoin at the end of March. We earn our Bitcoin from our revenues, we do have to sell some of the Bitcoin to cover our electricity and some of our operating costs. But with the -- we have a real positive long-term outlook on the price of Bitcoin. So accumulating some of our account is great for us and maintaining that. If we want to go now to our following slide. This is going to show our capital structure. So the quarter was $0.45. And shares outstanding almost 73 million, 40% would be held by insiders. So we have a tight share structure, and we have low dilution. A lot of our funds have been raised through debt. We're open to raise money in the future through debt and equity. So right now, it's a nice good tight share structure, low shares outstanding. And our tickers, as you can see, we trade on the Venture under SATO and on the OTCQB under CCPU.F. So you can take a look at those and follow us on both of those exchanges. Let Romain finishes off here with the end of the presentation.

Thank you, Kyle. Look, at the end of the presentation. This is just a sum up. We're a Bitcoin focused, but we have a potential for AI. We are an operator since 2017. We've been there, we've done that. Of course, we know that we're going to find other things on our way to grow. But that's really our expertise that is at play here. We know how to be efficient with power to be efficient. Yes, the market is difficult. It's volatile, the hashrate is are going down, halving, et cetera, but our efficiency is key. We're focused on high performance using the energy the right way. We publicly listed because we wanted the access to the public to really grow our operation, and again, to follow the steps of other Bitcoin miners who are now listed on NASDAQ and ultra successful with multibillion-dollar valuation. They have all been at the same place we are at today in the life cycle or in the life cycle before. So now we hope it's our turn, and we're ready for the next phase of growth. So thank you again for being with us, for listening to us, for being curious about learning about what we do and where we're going to. Now we will start the question if you want.

There you go. I'm just flipping Anthony and -- well done, you guys, a great presentation. We can jump over to the Q&A. I've seen a couple of questions coming already Romain. I know myself and Anthony have a few. [Operator Instructions] We'll start off with ours, then we'll move into the live Q&A section. So I guess, the first one we'd like to kick off here. Kyle, you talked about some of the real financial highlights of Q1. Obviously, we saw Bitcoin price very strong in the quarter as pre-halving so the Block Rewards were still full or double what they are now. Where do we see opportunities? You talk a lot about efficiency at SATO and that growth potential? Where do we see opportunities for Q2 and beyond, understanding that the macro environment may be a little bit more difficult. And I guess that could be for Romain or for Kyle.

Well, I'll be happy to go forward, except if Kyle, you want to start with it because our Q2 and Q3 and Q4 and the next year, that's where we are focusing on. It's true that the full Q1 quarter, like every other Bitcoin miners, there is a quarter with only 15 days post halving, so we had -- our last quarter that was exceptional everyone because the price of the Bitcoin high. The difficulty was also high. The difficulty has been going down a little since then. So it will also have an impact. What we have seen also is tremendous increase of fees on the block, mainly at the halving time. It was incredible. The Block 840,000 the reward went from 6.25 to 3.12. And at the same block, the fees were 37 Bitcoin. So it's really huge. And that's for Bitcoin miners in general, even depending on who is winning on the pool. But in general, this is what we've seen. So that's why we know it was a at the end of an [indiscernible] at the end of the [indiscernible]in Bitcoin mining. Now we are entering into a new world. And I think it's very early to apply the ratio to understand what's going to happen in the next 3 to 6 quarters. I think, we need to wait a little bit more time. As I was saying, the hashrate has been decreasing from what 640 to 580, but going back up to 600 exahash. It's moving, the price of the Bitcoin went from 70 at all-time 77 to 62, now back at 69. it's too early to tell. But again, focusing on efficiency, focusing on extracting the most Bitcoin you can, make us in a position to not be the first one who will unplug the miners and this is what counts in this business. Now how do we grow from there? We have cash. We have a site who is making money, and we want to be able to use what we have in front of us to be able to increase our hashrate very, very short term. I think it's great. It's an amazing time to buy hashrate and proof is, we've done it last month. We bought on not a lot. We bought 17 petahash of mining power with our cash. We also have access to that solutions possibly, equity. What we want to do with equity, we want to be smart with the way we use equity because we want to create dilution that are not what I call positive. And in our business, we can create positive dilution because the money we raised, we applied into buying more computing power, which will generate more of avenues in the future. This is really the goal for us, by now is really how can we grow organically or quasi organically, the 1 exahash mark is a good objective for us. I'm not sure how and when, because I can't tell you anyway. But we're really moving into that direction because we can do it in our center in Quebec with no more CapEx. I mean truth is, we have upgraded 7.5-megawatt of our energy to be able to host T21. T21, I'm not going too much into the details, if I'm sure the audience would like it, but it's a -- the new type of generation from Bitmain. It's really interesting because price that is lower. However, it's more complicated to operate because you need to put to 280 volt 3 phase on the miners. Usually, it means that you need to change your PDUs and some of your breakers depending on your situation, but you need to make it okay, but they are interesting minor because you can buy them or price that is lower than S21, we also bought S21. We have a few T21, S21, S19 that's kind of like the latest of the end of the latest generation. And that's CapEx that we spend and in a few years that you can see actually now in our Q1 to upgrade this kind of the center to be able to host. That's really the goal. At the same time, we are really focusing on how can we expand our energy and develop the AI and HPC. It's great to talk about it. But we don't -- we are not people who talk about things where people are doing things. In my life [indiscernible], that's always what I've done. Yes, we are at the beginning. We can tell, oh, yes, have a 3-megawatt or 5-megawatt data center running for AI. It's a different type of setup. It's not the same thing. You need to have different kind of energy, different kind of cooling system. The GPUs are different. Of course, at the Bitcoin miners and the CapEx are way more expensive for developing data center for AI and HPC. However, again, having a mix of the 2, this is the first goal we are focusing on. Bitcoin mining, AI and HPC and curtail the Bitcoin mining to make sure that your AI stays on all the time. This is why we will win. We want to prove that, and we are working on this, and we are focusing on this. Is it going to show results in Q2 and Q3 and Q4? It's difficult to say because, again, you have 2 ways to think about AI and HPC, you can find a client today and then start running it today or even delaying in 6 months or in 12 months. We might do this. At the same time, we are really focusing and making sure we can have the infrastructure to do it. And that's what we've been focusing on for the very short term.

Yes, as Romain mentioned, short term, fill a center, use our current cash and assets to grow, which -- and we have the ability to borrow money or raise equity to fill a center. We have efficient costs there. So that's a short-term goal for sure for us.

In terms of the site you have at the moment, of the 20 megawatts, how much are you actually utilizing with your self-mining, and is there an opportunity to actually get more than 20 megawatts at that site if you had an opportunity to expand?

So at Center One in Joliette, we're at full capacity self-mining. So we are using close to 20 megawatts. You never use 20 megawatts, but we have a little bit room to grow that, we are using for ourselves. It's part of our expansion plan for the reach of [indiscernible]. In Quebec, there is a moratorium for crypto mining. We can't, but nobody can add more energy for crypto mining. But it's not really the case for AI and HPC. So that's where if we wanted to grow in our Center One where we could find more ways to expand in our actual center for the very short term.

So by upgrading the fleet to the most efficient miners you're able then to utilize that power capacity to deliver more hashrates...

Exactly. Exactly. And that's what Kyle was explaining. It's using what we have in front of us. Equity debt and cash and Bitcoin that we use we generate. In the past, we have used our Bitcoin too by miners. It's one thing that Bitcoin miners have in their hands to go because we are striving to grow again once you're efficient, go as big as you can. And if we can make more Bitcoin in the future by being bigger, we'll find any way to be able to do it.

Amazing. I'm just taking a look at the share price today, Romain, up 9%. So SATO or SATO is currently leading the Bitcoin mining community right now, at least on the ones I track. So that's a success this morning and obviously, coming more of the backs of that strength in the financials that you talk about, Kyle. The market is really appreciating that from the signs of it. Anthony, I know you've had a chance to kind of go into the numbers. Was there anything that stood out from your perspective, maybe that we haven't talked about so far?

Yes. I mean I look through the income statement and the balance sheet this morning. I convert it into U.S. dollars because I look at all the mining companies. I use today's exchange rate and just the conversion. But -- from a free cash flow perspective, which really as a business, that determines how well you're operating. It sort of gets rid of all those noncash costs like depreciation, stock compensation and all the gains that you achieved with Bitcoin because it's great in Q1 when the gains come through. But in Q2, if the price achieved 70,000 on the 30th of June, you'd be recording unrealized losses for that particular quarter. So triple those out there. You had good free cash flow and I then do sort of like a percentage of your revenues, and I got 38% was the number I -- in terms of free cash flow. And actually, when you compare that to peer miners that fits you very well in the sort of top half of all the public miners that have already released their results. There's only a few more mines to release now. But certainly ahead of some of the sort of the miners in Canada, the likes of Hut 8 and Bitfarms. So obviously, something in the secret sauce there, although in terms of hashrates, you are one of the smaller miners on the public market at the moment, but it's like from an operational point of view, and I've been covering you, I think, since June, July 2023, so getting close now to a year, in my tables. And I noticed you included one of the year-to-date operational table, which highlights how productive Bitcoin miners are with their energized hashrates. And so at the moment of this year, your second and -- on a solid like -- on an equal part with Hive, I think you've both got the same number. If you went down to some additional plays, you're ahead of them. But bear in mind, in 2023, the -- you're in that top 4 group there just behind the same, again, Bitfarms, Hive and IREN. So from an operational point of view, doing really well. The numbers are really good. For me, I don't take it a stage further and look at sort of like try to understand the valuations of some of these mining companies and how the market is looking at mining companies. And you look at the big -- if you look at the big players, the Riot platforms, the CleanSpark and the Marathon Digital and you try to understand how the market is valuing them. Are you sort of seeing now the market likes to see the hashrate targets going to the planned hashrate targets, which these 3 companies -- and another number of other companies, but these 3 are really focused on delivering sort of like big numbers by the end of the year and certainly into 2025. It seems like the market is for getting a number of the miners out there that are also operating really well. Are you seeing that from yourselves?

Kyle, do you want to go on or...

Yes, for sure. I mean I think we're under the radar. We're small. I mean we're trying to get the word out there about us. As you said, we're very efficient. We're small, we're growing, hopefully, over the next couple of years, we'll have more visibility and traction in our name out there, so people really know who we are because I think we're a good name in the crypto space.

I mean if you look at -- and just take that stage further, you look at the value in terms of balance sheet value per exahash for these mining companies, -- and it's -- I use the production in terms of exahash because it's a great level. And if I use the valuation per [indiscernible] also levels out the miners as well in terms of what value they are. So looking at sort of like today's numbers, your valuation per exahash is coming in at $28 million, nearly $29 million. And then you start comparing that to CleanSpark, which is $195 million. You've got Cipher at $132 million, you've got Marathon at $160 million. You've got Riot $144 million per exahash in terms of valuation. So that sort of supports my theory that some of these miners are just not getting the same attention from the market. And bear in mind, 2 years ago, I started to include a small mining company called IREN in my analysis and look at where they are now and they're going to deliver, hopefully, third exahash by the end of the year. So every miner starts quite small. When we first met remain, the Marathon and the Riot were in sort of like single-digit exahash in terms of hashrate. And so it's trying to pick, I suppose, which the miners in that sort of like in that lower tier group who's going to break through and move forward.

I think you're totally right. And this is what we've seen in the past, and we are continuing saying it. People were all at a small phase in their life. The success for them was to be listed and to be able to get access to capital at the beginning of the cycle. This is the key, and this is where we are at today. And I can't agree more with what you said, Anthony. I mean, yes, if you look at the valuation per exahash, we are ridiculous. I mean, our valuation is undervalued, and we have a huge way to go. And I think it's also something that I see in the market, and I'm sure the people are saying the same thing. Obviously, the first money is going to go to the big market cap and the big brand listed on NASDAQ. It's normal. I mean, you would buy Coca-Cola before buying Pepsi when it's created -- but just at some point and at some time, we will see also [indiscernible] and people going into the smaller cap and people who can maybe have than 10x, 15x, 50x of growth in the cycle, whereas the other one, we have already taken it, I mean they are already there, and maybe they go the 5x or 10x, which is already great, but maybe the smaller people, and we hope and we are working for it. We're going to go way more that and I think this is what is interesting. And at some point, I'm pretty sure we will start capital flowing into the small cap like us or micro cap, if we compare, I think, risk is still a small cap in the NASDAQ grand scheme, I guess. But it's true that it's a road we want to follow. We want to follow these guys. We love what they do. They are extremely professional. It's also something that is great with Bitcoin mining and our industry or publicly Bitcoin miners. We are professionals. We are doing the right things, and we grow the right way -- and going the right way for the question of geopolitics, America and Asia and everything having computing power done the right way, this is what you want. And what are going to do the U.S. and Canada, they are going to relate on the private sector -- I mean, companies who are publicly listed are even better because we are fully transparent, regulator, et cetera. So I guess -- and we're kind of like seeing it recently. I mean, we see at least in the U.S., we see a new breed of crypto and openness coming from the politicians first from the publican now from the Democrats. What does that mean? They know -- I mean, everyone knows in the world, computing power is a new railroad. If you don't have computing power for your countries in the next 20 years, you're dead, your industry is dead, your companies are dead, -- not dead, but there will be less performance, your universities will be less performance. We need to build. It's a time to build. We have a way to do it. We have a way to do it from Bitcoin mining. We believe that merging computing power with Bitcoin mining is a way to go because, again, we can curtail. It means we can go to any kind of source of energy, use the wasted energy. If you have energy, and if you're not asking yourself how do I use it for computing power, you're missing up and we are an answer to that. We are not going to be the only one. We are going to be many Bitcoin miners, Bitcoin players, data center turning into that, but the demand is going to be so big and so much undervalued than what we think today that I think that will be a place for everyone. So yes, our valuation, and I would not know any CEO would say that their company is overvalued. But yes, I completely agree with you...

The way of looking at it is to remain is the fact that it could be that your value at the correct level and all these other companies are valued -- significantly overvalued. Just a point on halving. And back in January, these big analyst companies were saying that the global hashrate would drop significantly post the halving, by 20%, 25%. This is coming from the [indiscernible] and JPMorgan. These big companies who speculate on what's happening in a Bitcoin global hashrate. We never saw that happen. In fact, the actual difficulty increased by 2% post the halving, and then it dropped 6% at the second difficulty. We're now seeing that difficulty looks like it's going to increase again on Thursday, the next difficulty adjustment, which means that the global hashrates has been increasing because difficulty only increases when miners are actually producing blocks quicker than 10 minutes. So in terms of...

No, no, go ahead, go ahead.

I sort of like conversations about miners coming off the network, is your phone ringing more now in terms of potential opportunities out there with companies with, say, distressed assets or not -- or having difficulty to continue than it was, say, pre-halving. Are you seeing any actual change in the sort of like in the space that was expected when people were talking about this in January and even in last year, what was your [indiscernible] out there.

I would say yes, but not a huge yes, why? Because Bitcoin is still at a good price, I mean remember, like 6 months ago, I would have told you, Bitcoin will be at 70, you be like, wow, really it's amazing. People are like 74 weeks, and we don't really care. So I think a lot of Bitcoin miners will continue being able to run. One thing that you said, and it's true, we've seen the hashrate increasing, but it's also because we are receiving at the time the future orders. That's why [ Iris ] or IREN is not capable of saying, yes, we're going to do 1 exahash month. It's simple. They're receiving -- they are monthly shipping from Bitmain probably and they are going to rack them up monthly -- month by month. So that's why we're continuing seeing about the hashrates coming up. However, it's true that it creates a stress on your margin and how much money you make because from the block before the halving and the block after the halving, the Bitcoin did not go by 2, which would have been equal for us. So we are still looking at that. And it's -- for us, it's an even better situation in a sense because, look, don't get me wrong. I love bull market when it comes crazy and when the Bitcoin goes to the moon. But it also creates lots of [indiscernible] on the industry. Everyone wants to buy whatever they can at the price they don't care, either for energy solutions, miners, et cetera. In a market that is a little bit more structural like this, I think it's better for us to find the right opportunities and the right way to grow. So yes, we received lots of opportunities for buying sites, buying miners. The miners we bought, for example, we bought at the same price then the future order from 6 months ago. It's good, and I've seen it before when the market goes up, people by future and future, if you don't know exactly for sure when your electricity will be ready, it's very difficult to manage because 6 months later, the price per hashrate is not the same. The valuation is not the same. The price of Bitcoin is not the same. And you can always find spot mining rigs with the right type of people and the right knowledge of the market. So this is what we've been doing. But to also continue on this subject, which is really interesting for us in Bitcoin mining. I think this is also why AI and HPC is interesting because it gives us another cycle. There is no halving and there is no volatility on the price of the Bitcoin and for us, it's a second line of business that will even make stronger in the future. But again, it's not changing our business model. It's really working together because we're believing in Bitcoin, we're believing in Bitcoin mining. The fees are increasing even so they are not as big as before. I mean during the halving the fees are really increasing. And we can find more ways to get fees with developing software like we do. But more and more people are using Bitcoin in general. The valuation of Bitcoin is going high up. And I think it's -- Bitcoin mining is still an amazing business. And again, it's by mixing it with the PCs that you can win and exploit the energy the right way where it's available.

Romain, really good job unpacking that, and we're starting to get some good questions in here. So I want to jump over. We're now at all-time high concurrent viewers. We've got some good questions coming in. One thing you mentioned there, though, you talked about adoption, the Republicans, the Democrats in the states starting to use Bitcoin as an election platform. What are we seeing here in Canada? you mentioned there's -- moratorium in Quebec on new mining, are we seeing any political positioning here in Canada that may help or hinder you?

Sure. Yes, Canada in every provinces, they have difficulties is with Bitcoin mining. And overall, even in the U.S., we have issues, you probably saw in the U.S. by executive order from Biden, he put a halt on a Chinese farm in one of the states in the U.S. I forgot, which one. So everywhere, Bitcoin mining is under scrutiny, because for the past, what, 10 years, we had the same kind of story coming again about how much energy we use, how bad we were from the environment, and we have debunked all of these kind of things. And now we can really show the benefit of running a data center or Bitcoin miner in the grid. When you look at the local level, we win. We use energy that is wasted. We bring more revenues, more margin for this energy provider, we can now sell it. We have employees true, we don't have lots of employees in our data centers, but we pay them higher than the average of the median salary range in the region where we operate. We also work with lots of external contractors, electricians, constructor, et cetera, we probably spend like what, $4 million, $5 million just for people like this. We participate in the art and by giving Bitcoin to the museum. There is a museum in a city where we are at, where we give every year, we give some Bitcoin. And it's great for them because they've been able to keep it from one year to another year and then sell it and make more money. So it's -- at the local level, we are really winning and people are starting to realizing this. And it's not only us sensing, There are another Bitcoin miner you mentioned, which we really like CleanSpark. They have the same approach in Georgia. They work with the municipalities or different kind of firms, we are working, we are forced to use something that was unused before and we do it well. We will always have people who will say, you know what, it's bad for the environment, we should stop it. But then where do you stop at Bitcoin mining at Netflix at YouTube, where do you stop using the energy. What we think is that succeed as a nation is to be efficient in managing your energy and developing computing power. Let's do it well. Let's do it efficiently. I'm not saying we are the only one doing it, but this is really the key to approach. And I think doing it in Canada and in the U.S. will work, but it's true that we will have different kind of issues. So in Canada to come back to your questions. We had a pressure point -- we have pressure point like our choke point like they have in the U.S., mainly from the CRA being the IRS in Canada, and they kind of like modify the role on which we can claim back the intense the ITCs in Canada. It's been for the past 2 years, a Bitfarm a few weeks ago announced that it was resolved for them in their favor. So the means for them and -- every Bitcoin miner is under the same scrutiny from the CRA on that matter. We have not resolved our case. But you can see in our financial results, we have a provision of $4 million of ITC that we could claim back. Bitfarms announced it 2 or 3 weeks ago that it was resolved in their favor. I think they are going to receive close to $25 million. But more importantly, this is for the past, more importantly, it means that our cost in Quebec comes back to 15% less because we can claim back [indiscernible] in Quebec. So it's where we see some kind of like issues, but we'll see where it's going to be going. With the energy, we are also saying like the moratorium in Quebec. I think other provinces are also discussing about it [indiscernible] has some kind of things. It will probably happen in the short term. My guess is, but long term, it's going to open. They have to open, the government will realize they have to open their energy to data center be efficient. And there will be a reverse of mentality, and they will ask us to come and to use this energy the right way. I don't know when, Quebec is an amazing state and amazing province in order to grow. They have one of the best energy in the world. It's 100% noncarbon emissions or close to 100% noncarbon emission. And they have energy that is not used. One of the issues, as you know, and even more in the U.S., it's not the production of the energy, it's a transmission and we are missing transmission line. But we Bitcoin miners, we can go and be behind any energy producer in the U.S. and curtail the energy, when we come with Bitcoin mining and use it with AI and HPC and we don't need these transmission lines right now, we can really be a transition between when it's built and when it will be monetized. Right now, we can monetize your energy right now, it's not in 5 years and 7 years. No, it's today. And the energy that is unused and produced, it's lost forever, lost forever, I mean, except if you put in the batteries then it's different.

Yes, very interesting. I've not heard partnering with power plants before the transmission lines are in, either Romain. So that's interesting. Now I've moved myself to the bottom corner here. We can put the questions over my face instead of yours, you guys, if they're a large question. First and foremost, here, I love the format. So you guys -- this is the first time we've ever done this on the channel. I know they are companies do to live earnings broadcast, but I've never seen one with this level of engagement with the audience. I'm glad you enjoyed it. Next question from Raj talks about -- and this is actually something that came up in some of our other interviews with BTBT this week, Sam Tabar talked about margin compression on the HPC front. So you talk about these margins Romain. Their margins were in the neighborhood of about 70%. So very healthy as well. But he did say the rate card or rate per card may come down next quarter as there's more entrants into the HPC space, we're starting to see competition and margin compression. Kyle, maybe this is a good one for you. Do you see this as a risk? Or do you feel the HPC landscape is fairly stable. And I guess compared to Bitcoin, it's very stable.

Yes. I mean it is, for sure, stable compared to Bitcoin. I mean, I think it just presents like another opportunity for us, right, because we -- there's different focuses that we can go towards. We have our main Bitcoin operations, and then there's the HPC or AI front, which we can supplement our revenues and grow in these different ways, right? So we have the Bitcoin margins, which right now are strong and healthy. It's obviously very variable and uncertain in this business, but then we can go and seek like healthy pretty consistent margins on the other fronts.

I think it's also a very difficult question to answer at this time. But if you are looking like precise data of the market, I think we will see 2 things. We will see the margin for the power and the margin for the computing power and the margin for the power that is transformed for computing power will probably stay steady because we will need more and more of those megawatts to be able to transform computing power. For the GPU, yes, for sure, after the H100, where we see the Z100 or whatever they will name it has probably been announced already. So we will see more and more people plugging solutions more and more competition, but also more demand -- and not everyone can really do it at scale for what needs to be done. It's not simple. I mean we usually -- I mean what you need, you need at least a 100-kilowatt track for AI and HPC. That's what kind of like data center you want to build on, which traditional data centers don't have. They have 20, 30 megawatt -- sorry, kilowatt racks. So they still need to make some improvement. Will we see compression in the next 5 years, I'm not sure. I mean, I think the market is going to continue growing for the demand of hosting computers. For anyone. Anyone we need to have more computing power. It's again, our efficiency as humans as companies is working together into creating more value for the world.

Romain, quick question is, is there a moratorium on HPC, how you're using that, you've only mentioned about Bitcoin mining?

In Quebec, now the way it works is that if you want over 5 megawatts, you need to work with the government. And they are favoriting companies from Quebec like us, but also they have like particular industries alike, like hydrogen or batteries, for example. So it's possible and also it's possible to do it at least to show proof of concept of data center working with both and from there being able to expand mainly in the...

Ironically, those could be your customers.

Yes. Yes, definitely.

Yes, good point, Anthony. I cover a lot of lithium and precious materials and EV battery metals and that on the channel as well. And there's a real push right now to bring a lot of the production of that stuff onshore into North America. And as you talk about energy and the ability to have energy infrastructure, I can see that really becoming a key kind of competitive advantage around the world for nation states as well. Romain and that's where you talk about that HPC revaluation coming into play?

Yes. Also for Bitcoin mining, I mean at the chip level, there will be a shortage or there is already a shortage because as you said, the minerals, you need to build it are finite and difficult to extract and every nation stay to has it tried to keep it and sell it for more expensive from uranium to whatever you want. And for the chips, particularly, yes, it's going to create a concession, mainly most of the chips today are made in Taiwan even for Bitcoin miners. But I know that in the U.S., the first plant is designed for end of '26, I think. So we might see more chips being manufactured in the U.S. We are also saying for Bitcoin miners, it's interesting. We are seeing new type of bitcoin miners going into the market a [indiscernible] company, I forgot his name, as a name who are doing their own chip. I don't know I have it in my mind. There are more manufacturers going into the market with releasing ASICs for Bitcoin miners. On the AI, HPC front, it's mainly NVIDIA, I don't know exactly who the foundry, could be TSMC in Taiwan, maybe you have also for Bitcoin miner. You have a little bit of Samsung and I know a few projects who are getting there. But it's interesting because if there is a shortage, it will also mean that we will see a resurgence of the old generation miners coming back into play. And we've seen that in the past that at some point, the old S9 -- we call them the cash kickoff the rigs. They work at all time. But they were lost close to 0, but after 6 months, I don't remember exactly the time frame, but [indiscernible] was, again, a $200, $300. So if there is a shortage, having the chips and having ASICs the AI would be key. After that, it's very dependent to the world order. I mean -- and that's not something we control, unfortunately.

Fair enough. Now we're getting a flurry of questions here. So I'll try and get through them. I know we're over an hour here, guys. So we'll try and get through them in a rapid fire. Next one, -- so this looks like it was pulled from the deck, 806% year-over-year mining profit. I think, Kyle, you had said that was Q1 '23 versus Q1 '24, this...

That's correct.

So that will be a nice number to see if you can top that one next year.

It would be.

There you go. We've got one about the 9% increase today. So share price still moving. It looks like the Bitcoin sector overall is picking up. Now this is interesting, so Chase is small but mighty, which is definitely the sentiment that I think a lot of people have on SATO. We then have Rachel Saying exahash growth, please. On the other end of the spectrum. So I guess the question here, how would you position this, Romain, because we've got 2 camps, and I know, Anthony, you brought this up a few times as well. We've got the smaller miners that it's a struggle right now to raise an up capital to meaningfully grow the exahash. On the other side of the spectrum, Romain, like you've said, you guys are one of the top-performing miners in terms of efficiency you don't have to be the biggest in terms of scale to make a lot of money, and you've got all these other nice opportunities ahead of you. What would you say to the debate between exahash growth and efficiency, small but mighty.

I would say go step by step. First, go efficient and grow big. And once you are grow as big as you can, and that's where we are at right now in terms of our time frame. The thing, Bryce, being a publicly listed companies and even more in Canada than in the U.S. I would not be able to tell you we are going to have 5 exahash, 10 exahash, 20 exahash in x months if I don't show that we raise or that we have the money to do it. What I can only tell you is that, of course, we want to grow our exahash. We are striving and we are living in the business to grow our exahash to grow our mining power, computing power. What we are doing, as we explained before, we are using what we have in front of us, which is our cash, our Bitcoins and to some extent, equity and debt in order to do it the right way. At this point in time, we need [indiscernible] for Bitcoin. We need to extend our vision of the time frame. Yes, it's difficult to raise equity for Bitcoin miners today. But what is it going to be in 2 months, in 6 months, in 2 years. We don't really know. What we know is that we are going to be here, and we're going to be able to extract the right type of capital in order to build the kind of ideas that we have in mind. So we'll -- short term, we said in our center, we could potentially raise -- reach 1 exahash of mining power. And after that, it's going to be as big and as fast as we can. And it all depends on how much capital we can deploy. If we raise 10x more, it's in our business. If we were 10x more, we will probably be able to build 12x bigger because of the economies of scale of what you build. And it's a race, we are in the race, we are at the size we are in today. We don't pretend to be bigger and the bigger the biggest, but we are just playing into the race of growing and do it right and doing effectively for computing power. And it's just the best I have -- I'm having the best time of my life.

I'm glad you are. We're enjoying the Bitcoin space too. And the thing you say Romain that's so true, and we've heard Rob Chang from Griffin say the exact same thing, the Riots, the Marathon, the CleanSpark, they were exactly where you guys were only a couple of years ago. This whole industry is not even a decade old, really in terms of publicly traded markets. And Rob also said it took him about 2 years to go public. So the fact that you guys are already in that position at the start of a bull run, it's obviously very nice. Now we have Cody's an undiscovered gem Canadian Bitcoin miners get on board right on Cody. This one came up by 2 people, Romain. So KG initially said, when would you be ready to host the HPCs. And then we have -- I'm not even -- Z in real life saying same question as KG time line on infrastructure to install HPCs.

We don't have a precise time line on when we can deliver. I know that if -- we started the construction, which we have not started the construction for it will take at least a good 6 months before we can say, okay, we ready for a 2- to 5-megawatt type of installation that we could potentially we don't have a date where I can't give you a date at this point. Again, we are at the beginning of the cycle, lots of, but people are talking about doing this, doing that. we say that it's on our strategy. It's on our road map. We are doing it. We want to do it, but we'll announce it when it's really ready for when we have a date.

Sure. Next one for you, Romain. Very timely, again, KG. We just talked about this with Sam Tabar as well. Sam was expressing some frustration over valuation, Romain, in terms of share price sounds kind of similar to where SATO is coming from. He was even going as far to say, if the market doesn't properly value these components of his business, he may look to spin some out in terms of an HPC or mining -- is there any discussion at all at SATO Technologies about a potential subsidiary, a spin-out restructuring, any of that kind of stuff?

We are open and opportunistic. Right now, we want to keep the value for our shareholders where the company is listed. So we are we are working more into doing it under SATO technologies, but we are open also to the market to different options.

And probably last one we'll have time or here today, you guys from Z in real life again, -- and I know we talked about CapEx allocation growth strategy a little bit earlier. But Z, you had mentioned you weren't here for the start of the call. How do we see this CapEx split continuing throughout the year. It sounded like it's very much based on market opportunity for you guys.

Yes. Also, I would say, for the remainder of 2024, we still have like about Q3 and Q4. We could -- in Q3, probably not a lot of percentage of our CapEx will be on this. Q4 may be more, probably more. Now what I don't know also 2024, 2025, 2026. I don't know what will be the percentage of Bitcoin mining, we will run versus AI and HPC. Let's say, we have 200 megawatts of energy is it's going to be 150 megawatts for Bitcoin mining and 55 in HPC or the opposite. I don't have the answer today. I think it might be depending on the energy we get and the kind of curtailment we get at the energy source and that we should balance the mix between AI and Bitcoin mining. But if you speak particularly about the cost of building for AI and HPC. I can tell you, for Bitcoin mining, infrastructure [indiscernible] computers, we are about around 1 million per megawatt. For AI and HPC, it's closer to 5 million to 7 million per megawatt, maybe you can go higher. So it's a different kind of like a CapEx-intensive business, but it's the same job, transforming energy into computing power.

Yes. Great answer. And we've heard that from everyone in the space, the HPC CapEx is a lot more, but you've got the margin benefit, and Anthony, I know we're basically at time here. We've got through our questions. I wanted to give the mic back to you for any closing thoughts, then we'll let Romain and Kyle wrap it up. Great success here today. You guys -- we got some good questions, great presentation, took the full hour. Anthony, anything burning on your mind?

The results we got this morning. I went through this morning, I look at the presentation. Free cash flow is a key for any business to operate and they have a significant amount of free cash flow from the results in Q1. The challenge for all miners in Q2 is that the Bitcoin price maintain a level where it's still profitable to mine because we see all these analyst companies coming out with their sort of like cost to mine for all the mining companies post halving and it sort of -- it changes so many times, I'm not even sure -- and it's so difficult to be honest, in fairness, is difficult because you're dealing with so many variables, if you've got hashrates. But you don't know what the global cash rate is going to be. You don't what the quality adjustment is going to be, don't know what the bitcoin price is going to be and if you're on a sort of like at a market level for energy costs, that is also variable. So add all those together, and it's a challenge to determine. So -- and the price increasing -- Bitcoin price increase, it provides another issue because it means that other miners maybe going back on the network with less efficient machines because they can still make an element of profit or in my terms, as an accountant an element of contribution, because if you're bringing a contribution in towards your overheads, then some mining companies will continue to buy. If you're not delivering any contribution and Kyle, you'd be switching your machines off because it's just not it's just not worth it, all you're doing that if you're gambling on the price of Bitcoin really [indiscernible] in the future to recover some of those costs that you're incurring at the time. So I'm a management account. And so I look at costs on sort of a daily basis, hence, why my analysis is always thinking in the reverse. I don't tend to sort of give any forecast going forward about Bitcoin price. I leave that to all those YouTube experts out there who tend to sort of have all these wonderful graphs and lines and everything like that. But I certainly look at all the previous stuff to sort of gauge from performance, from financial performance, operational performance, looking into the monthly updates and have an understanding of where each of the companies are. And when I look at Q1 and you score well on your homework. So good Q1, certainly in comparison to all the miners I have listed there at the moment. You certainly don't anywhere near the bottom of those results. The factor is, I think, remains articulated. It's the challenges with growing and doing it. You've learned to get efficient. You know your numbers now month by month, you in that sort of top 3 or 4 miners on a monthly basis in terms of production by exahash. It's now -- I think everyone is now thinking where is the growth. We've seen these other companies putting orders that were just [indiscernible] most of the miners and it's just sort of eye-watering. But opportunities out there, whether there's some merger acquisition opportunities. We saw the benefits of USBTC merging with Hut 8, both wanted exactly what the other had. So USBTC had very little financial -- any money, let's say, at the liquidity of a great balance sheet, but they have the access to power and facilities in America. And so in terms of combination, that's quite a good combination. They both sorted each of these bond and maybe something down the line for you guys if something comes along that can equally get you that next stage. I think that's what shareholders will be keen to see. Yes, that was my closing thoughts.

Appreciate it, Anthony. Just taking a look, you guys bit clean and the miners continuing to move. Romain, you guys are up double digits that's about a in the $0.30 range...

Well, we have -- it's always good, but we have also a long-term vision on what we're building and where our market cap will go. And as we go up 1 day, we go down another day, that's life. We want to make sure that we create long-term value for our shareholders. And it's true that if you enter in that time into our company, we also hope to find people who can understand what we are building in the long term.

Exactly with that long-term vision and very fruitful horizon in terms of HPC. So Romain, Kyle, thanks so much for your time here today. You guys -- excellent presentation. Congrats on a phenomenal Q1. Hopefully, the start of things to come this year. I'll kick it back for any closing thoughts. Really appreciate your time.

Thank you very much, Anthony, Bryce and Kyle, for being with me today.

Yes. Thanks, guys. Hope you have us back 1 day.