Cipher Mining Inc.

Good day, and thank you for standing by. Welcome to the Cipher Mining Third Quarter 2021 Business Update Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you'll need to press star 1 on your telephone. I would now like to hand the conference over to your speaker today, Lori Barker from the Blue Shirt Group. Please go ahead.

Good morning, ladies and gentlemen. Thank you for joining us on this conference call to discuss Cypher Mining's third quarter 2021 business update. Joining me on the call today are Tyler Page, Chief Executive Officer, and Ed Farrell, Chief Financial Officer. You may also review our press release and presentation, which can be found on the Investor Relations section of the website at investors.cyphermining.com. Please note that this call will be simultaneously webcast on the investor relations section of the company's corporate website. The conference call is the property of Cypher Mining and any taping or other reproduction is expressly prohibited without prior consent. Before we start, I would like to remind you that the following discussion as well as our press release and presentation contains forward-looking statements including but not limited to CIPR's financial outlook, business plans and objectives, and other future events and developments, including statements about the market potential of our business operations, potential competition, and our goals and strategies. These forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those discussed here. Additional information that could cause actual results to differ from forward-looking statements can be found in CIFR's periodic and other SEC filings. The forward-looking statements and risks in this conference call, including responses to your questions, are based on current expectations as of today, and CIFR assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. Now I will turn the call over to Tyler. Tyler?

Thank you, Lori. Hello, this is Tyler Page, the CEO of Cypher Mining, and I'm going to discuss our third quarter today. So I'm going to begin our discussion by reminding everyone that Cypher Mining is a U.S.-based industrial-scale Bitcoin mining company. We recently completed a listing on NASDAQ with the ticker CIFR. And in our transaction to go public and close our pipe deal, we raised net proceeds of $391 million. We are currently executing a strategy to develop and deploy five data centers where Bitcoin production is expected to ramp up significantly throughout the course of 2022. When we think about Cypher compared to the competitive landscape, we have a series of long-term competitive advantages namely our five-year power purchase agreements, which have a compelling weighted average power price of 2.72 cents per kilowatt hour. We also have purchase agreements that we have executed for mining rigs that are capable of generating up to 19.5 exahash per second. Those machines are scheduled to be delivered over the course of 2022. And we have a long-term agreement with the experience team at Bitfury for operational services and equipment. And so when you think about us versus the competition, focusing on the key needs of any successful large-scale miner, we feel we are particularly strong in terms of our access to power at a cheap price, our access to new equipment with the delivery schedule for next year, and then our access to a best-in-class operations and services team. So I think before we get started, it's helpful just to reset everyone to where cyber mining is in the context of what has been a very busy year for Bitcoin. Just recall that Bitcoin came into the year at the beginning of the year around $30,000. There was a fair amount of enthusiasm early in the year, and it was up over 100%. It had an early year peak around the Coinbase IPO back in April, where it was up over 100% in the mid-60,000s. Over the summer, we saw some doldrums in the price. A particularly newsworthy story for us was that China shut down most of its mining capacity over the summer. Wonderful for us, considering that we came to market as a U.S.-based Bitcoin miner, and we have always preached a focus on the United States becoming the real head of Bitcoin hash rate in the world. Recently, the Bitcoin price has peaked back up. We've had a series of interesting events in the marketplace, including a futures-based ETF. And, in fact, we just this week have made all-time highs in Bitcoin. And so a lot has happened in a short year. When you think about Cypher mining, a lot has happened for us as well. So Cypher is a newer company. We were created in January of 2021, and we were created as a spinoff of an opportunity set from Bitfury. a European-based, privately held Bitcoin mining company. And we were spun off to focus on U.S. Bitcoin mining operations. And we went public via a SPAC. We have gone through the entire SPAC timeline. We merged with a company called GoodWorks Acquisition Company earlier in the year. That business combination was approved in late August. And we began trading on NASDAQ on August 30th. as our standalone public company under the ticker CIFR. It's important to remember that a lot has happened this year for Bitcoin and us, and we are coming to market as a greenfield company. The concept behind Cypher Mining was that we had an outstanding opportunity set to capitalize on building data centers in the United States and to build a U.S.-based Bitcoin mining champion, and we – have always planned to take our transaction proceeds from the closing and then implement that plan. So we've had a very busy start to our lives. We completed our first quarter at the end of September. And between going public and now, from a materiality standpoint, we have entered free material contracts for equipment purchases from a diversified group of mining rig suppliers, namely Bitmain, MicroBT, and Bitfury. As we look forward to flex our long-term advantages, we now are a publicly listed company, and we will have access to capital on an ongoing basis, which is an important thing as you're building a large-scale Bitcoin miner. From an operational standpoint, to be a very successful large-scale miner, you do need access to power. We have that with up to 910 megawatts with our current counterparties. and those are via five-year-plus contracts. They are long-term, not short-term. We also have a very robust pipeline of future deals that we're in discussions with. The energy industry in particular in the United States has seemingly become more interested in Bitcoin mining. We are having discussions with major power producers that want to have a Bitcoin strategy. I would note that one of our current counterparties on the power side, we've actually structured our relationship as a JV. And so in that joint venture, we are working together with the power provider to build a Bitcoin mining operation. I think that the scalability of that structure is something that could be very strong for us as we continue to talk to other potential partners that want to have a turnkey solution for accessing Bitcoin mining. On the equipment side, as I mentioned, we do have our diversified suppliers. I would note in particular that we have a seven-year framework agreement in place with Bitfury in particular that grants us a right of first refusal on new machines, as well as a most favored nation pricing framework to purchase those machines. And so we have a long-term advantage on equipment as well. Lastly, for operational expertise, which is sort of the last ingredient to being a successful Bitcoin miner, you've got your capital, you've secured your power, you've secured new equipment. Now you need to make sure that you can get everything up and running as thoroughly as possible and with maximum uptime. We will be leveraging the very experienced team at Bitfury for operational services. We do have an agreement with them Bitfury has been in the space for over a decade running Bitcoin mining operations. Next, I want to talk a little bit about our approach to thinking about environmental issues as a large-scale Bitcoin miner. I'd like to highlight our key points when it comes to evaluating the site from an environmental perspective. First of all, CIPR has no direct purchase agreements with coal power generation facilities. Coal-based electricity does have a particularly large amount of carbon emissions, and you can see in our materials that it generates a higher amount of carbon emission than the average U.S. electricity generation. At Cypher, in addition to not working directly with coal providers, we have a preference for renewable sources of power or nuclear. In fact, our first site that we plan to have online is a wind farm. It's 100% wind-generated power that is off the grid. One of our facilities that we plan to come online shortly thereafter is a nuclear power facility that does not have emissions. And so, you know, we're getting off to a good start. When you look at our average port, the weighted site portfolio of our initial deployment set, you can see that we intend to have about half the total carbon emissions of the average user of U.S. electricity. So we're starting off already on the right foot. We are well ahead of what is typical in the marketplace. But moving forward, we want to make sure as we deploy our centers, we measure and report our emissions, and then we're going to target carbon neutrality in our mining operations by 2023. We're currently evaluating different providers of carbon offsets, and as we deploy and measure our emissions, we will be putting in place an offset plan for the emissions that we do have. So with that opening overview of Cypher and sort of where we are philosophically, let me get into our implementation plan and strategy. So first of all, let's talk about site readiness. I mentioned that we are currently in process at five sites we are deploying. There's really three phases to site readiness in the way we think about it. The first phase is power readiness. And what I mean by power readiness is you can think of everything that is required for a us to have a mid-voltage connection point to draw power from at a site. And so that is both contractual relationships with the power provider and the necessary land, but also electrical infrastructure that would be needed, step-down transformers and substations, et cetera. So that's phase one. Phase two, then, is what I'll call infrastructure readiness. And you can think of that as everything that is required to take the power down from a mid-voltage connection point to the outlet, literally like the plug for a Bitcoin mining rig. And so that consists of a series of transformers, switchgears, cables, a fair amount of site engineering, a container to hold the mining rig up, as really the last piece. And so we are building containerized data centers. These are facilities that have many repurposed shipping containers on site that are full of technology and built to be extremely stable, robust, and create a lot of value when you set up your data center. The last step then to bringing a site to readiness is getting your mining rig. And so I'll call it mining rig readiness. You've got your power. You've got a place to put the mining rig. And then the mining rigs are on site. And so when we look at our deployment going forward, from a power and infrastructure readiness perspective, looking forward, we project that we will have a total megawatt buildout of 60 megawatts across our initial first three sites, Alborz, Bear, and Chiefs. in the first quarter of 2022. Now, Alborz, Bear and Chief are sites that are subject to our joint venture. And that joint venture is one in which Cypher owns 49% of the economics. So you can think of 29% of those megawatts as belonging to Cypher. In quarter two, We will add on Coshocton from a power and infrastructure readiness perspective. Coshocton is a nuclear-based power facility in Ohio. That is a 40-megawatt facility that we will own the economics 100% of, and so you can see the corresponding numbers in our deck, but that will bring our total deployment to 100 megawatts by the end of Q2 2022, and Cypher's share of that to 69 megawatts. And then we really ramp mid-year going into quarter three when we bring our ODESA site online from a power and infrastructure readiness perspective and also our phase two expansions at both bear and chief. And you can see that the total megawatts we plan to have from a power and infrastructure readiness perspective ready by the end of the third quarter of 2022 will be 379 megawatts. with 311 belonging directly to Cypher. You know, I will caution that this is our forecast now, and it's our best guess. We do live in a world of supply chain challenges and COVID pandemic that's not completely over. And so this is our best insight looking forward. But, of course, things can change. That leads me to mining regrettings, which is the last stage. And before we get there, I want you to understand tangibly what we're talking about with power and infrastructure. So there are a series of pictures in the materials that will be posted with this release. But firstly, we have to construct the containers. We've got dozens of contractors working on a lot of containers right now. These are repurposed shipping containers that have quite a bit of technology in them. If you click through the pictures in our deck, you will see, in addition to just some heavy engineering, sort of cutting open and building hinges and putting in walls for servers, et cetera, you do have a fair amount of cables, network switches, temperature gauges, control panel, et cetera, that go into these proprietary boxes that are Bitfury designed that we have purchased. Once those boxes are ready, we will truck them out to our sites and put them in place. And so, again, looking at our deck, we do have pictures of our first site that will be ready at Alborz, which, again, is a 100% wind power generated facility. You can see wind turbines as far as the eye can see. Looking at the site itself, there's a mid-construction picture we've got in there that shows some of the trenching for the cables, the transformers being laid out across the lot, as well as the foundational supports for the boxes that are coming out. And so those are live pictures from Alborz. And in short order, when this is finished, you will have a facility that looks somewhat like the facility on page 13 of our materials, This is a live containerized data center that has been set up by Bitfury in a slightly cooler climate, obviously. But that's what it is trending towards and what it is going to look like as we have power and infrastructure readiness available at the sites. And that leaves us now with mining rig readiness. So talking about mining rig readiness and delivery, we have to make a lot of strategic decisions about what to pay for mining rigs. there's really a spectrum. You can buy mining rigs for near-term delivery for a large premium, or you can try to buy mining rigs in large scale over time if you can secure them at potentially more favorable prices. We have tended to, based on what we have seen in the marketplace as far as prices for near-term delivery, we have focused very much on maintaining a price discipline based on not overpaying for hash rate. And so we analyze things on a dollars per terahash framework. If you look across what we are anticipated weighted average cost for our mining rigs, we are paying $38.58 per terahash. We think that's very compelling. That's across our portfolio of three providers, Bitmain, MicroBT, and Bitfury. And the goal with maintaining that price discipline is to make sure that we're being disciplined around our return on investment. We don't want to overpay for hash rate. This is a cyclical business. We want to make sure that just like we maintain discipline in what we will pay for power at a site, we want to maintain discipline on what we pay for hash rate. And what really happens when you combine those things is that you end up in a situation where we can then rely on our long-term advantages. Again, we don't want to rush and overpay. So if you look at page 14 of our materials, you can see a monthly delivery schedule for our three machine contracts aggregated in one place. I would note that this is what is in the three contracts as the delivery schedule. Again, I would highlight the risks of the world we live in that There are supply chain issues that, you know, we may not be able to forecast, pandemic, many things can happen. But this is what we have entered into contracts for and so we are reporting the anticipated deliveries month by month. I will highlight that the Bitfury contract in particular has flexibility. It has a minimum purchase amount as well as a maximum purchase amount. We've got them both illustrated on the slide. And when we report number of, you know, how many machines we're buying, I know some of the mining companies out there like to point to the number of machines they've purchased. We prefer to talk about the total hash rate generated by the machines that we've ordered, and that's because some of our machines are just, frankly, they have nearly twice as much hash rate per machine, the Bitfury ones in particular. And so you can see this scaled by hash rate. You'll see at the bottom of page 14, across the bottom of the screen, you can see boxes for month by month, the total hash rate represented by these monthly deliveries, as well as the cipher mining portion of the hash rate represented by these deliveries. As I mentioned, we are ordering machines, some of which will be going into a JV, which we own 49% of. And then you can see projected out as we scale later in the year and some of our large orders, particularly MicroBT and the Bitfury orders, their deliveries begin to arrive. You can see both the minimum amount of hash rate that we have contracted to purchase as well as the maximum amount across the top. And you can see, you know, if you go out to December, we show that – Assuming the maximum Bitfury machine order, we would have ordered 17.3 exahash of machines that would belong to Cypher mining and 19.5 exahash of machines overall. I want to finish by just reiterating some key statistics for everyone as we build out that they should keep in mind. So specifically, I want to reiterate that The pricing discipline we have shown has manifested itself in a $38.58 average price per terahash across the Cypher portfolio. We have purchased machines with a weighted average mining rate efficiency of 33.2 joules per terahash. We have a weighted average power price of 2.72 cents per kilowatt hour, And lastly, we have an anticipated infrastructure CapEx cost per megawatt across the portfolio of what is anticipated to be about $450,000. I would note, again, like many things, inflation does impact a lot of our work streams and a lot of what we are putting together, and this number could move around. It has moved around since earlier in the year. but that is our best forward-looking estimate that we wanted to arm potential investors and analysts with at this point in time, you know, subject to the idea that it can move around. So with that, I will end my remarks, and I will pass to Ed Farrell, our CFO.

Thank you, Tyler, and hello to everyone on the call. First, let me remind everyone that we closed the transaction in late August, and as Tyler mentioned earlier, We received net proceeds of $391 million and immediately commenced our deployment plan to build the data centers to support our Bitcoin mining activities. We are a greenfield company that on September 30th was in operation for about 30 days, and as such, our financials are relatively benign. That said, I'd like to walk you through some of the more significant items on our balance sheet that are critical in supporting our plan. Within days of closing and receiving the proceeds from the transaction, we entered into agreements to purchase in total 87,000 latest-gen mining machines from both Bitmain and MicroBT. As a result, we have $74 million in deposits on the balance sheet relating to those agreements and expect delivery in batches from January 2022 through December 2022. We committed capital to support obligations that are required to being a public company. In addition, we have security and collateral deposits of $9.4 million relating to purchase power agreements with one of our energy providers relating to the build-out of our data sets. Finally, we have $282 million in cash at the end of the quarter. I think it is important to mention that subsequent to September 30th, we entered into an agreement with Bitfury to purchase 28,000 to 56,000 next-gen mining machines with delivery commencing in June 2022 through December 2022. The deposit for this order was $10 million. In conclusion, I would state that Cypher, a greenfield Bitcoin mining company, is well on its way to becoming an industrial-scale Bitcoin mining company dedicated to expanding and strengthening the Bitcoin network's critical infrastructure in the United States. I'll stop there, and Tyler and I are happy to take your questions.

Thank you. As a reminder, to ask a question, you'll need to press star 1 on your telephone. To withdraw your question, press the pound key. Again, if you would like to ask a question, press the star, then the 1 key on your touch-tone telephone. Please stand by while we compile the Q&A roster. Again, if you would like to ask a question, press star 1. And we have a question from Aaron Rakers with Wells Fargo. Your line is open. Aaron, please check your mute button.

Sorry about that, guys. Can you hear me?

We can.

Awesome. Congrats on the first earnings call, hopefully on the path to many more. You know, I guess I first want to kind of, you know, ask about, you know, the progression of the minor deployments. What are you seeing today in terms of, you know, the progression towards the delivery given, obviously, a broad amount of industry supply constraints? And then, you know, I guess following on that, you know, if I look at the progression of your planned TerraHash, you know, capacity, that's a hash capacity by the end of 2022, you Can you help us understand the importance of the Bitfury systems as they come into the model? What's the capacity of those systems relative to the MicroBT and the Bitmain systems? Just trying to understand how you can leverage that Bitfury relationship strategically.

Sure. Yeah, thanks, Aaron. When it comes to mining rigs, I think, let me start with the beginning of your question, sort of thinking about supply chain reliability, it seemed like you were alluding to. And I think this is a big reason why we are working with, you know, multiple different suppliers, right? I think we have suppliers from different parts of the world using different boundaries and, you know, with both proven and tested machines and newer machines. And so managing the risks around thinking about deployment with mining rigs, you know, our best approach is to take a diversified approach. And so that's kind of the background, I think, of what you were getting at at the beginning of your question, thinking about sort of supply and reliability and thinking about it. Now, from a deployment perspective, as you get the sense from our presentation, we're lining up a lot of different work streams, right? So we've got five different sites in different phases of construction and preparation. We have a plan to line up the machine deliveries at the different sites that are in line with the schedules. Of course, there is some flexibility in this. So just thinking about when the machines arrive, obviously the bit period component of our order is big. I mean, you can see it if you look at page 14 of our materials, you know, sort of a bar chart, you can see that it represents, you know, something between roughly a third to half of the patch power that we've ordered, right? And so, you know, it is important to our plans. We're excited. I think the biggest thing about that relationship, obviously, we do have a special relationship with BitGiri. It has helped us get up price in terms of machines. I think We've got decent prices across all of our contracts, but obviously we have sort of a special pricing framework there, and that has helped strengthen the overall look of the rig fleet.

And the capacity, the terahash capacity of those systems relative to, I think the other ones were probably in that, call it 100, 110 terahash per second capacity range.

Yes, so in the – and this is in the contract – the machines from Bitfury are about 195 terahash per second estimated. And as is typical with those machines, you know, there's typically like a plus-minus 5% for particular machines. I think that's consistent with all the providers. That is the estimate. You know, I would say that also – those machines are physically different, so they draw more power as well. So from an efficiency standpoint and just a physical standpoint, we like to break things down to the per terahash level, and that's why we stress when you think about machines, sure, if you're buying just micro VC and bit main kind of top-of-the-line machines, it's pretty easy. They're all about 100 terahash. We've got this blend, and that's why we take it down to the sort of per terahash level when you think about rig efficiency and costs.

And what dictates, you know, $28,000 versus $56,000? I would assume your focus is on building out as quickly as you can. What's the determinant that brings you to the low end versus the high end of that range?

Sure. So looking out kind of far into the future beyond what we've talked about in the materials here, you know, we continue to have sites that we anticipate bringing online, but they may not be in a place where we're ready to report that power and infrastructure readiness estimated date yet. And so what I'd say is we have a pretty robust pipeline, both with our current providers looking at potential sites for later in 2022 and But also a lot of the discussions we've been having, and we alluded to this earlier, but we do see at least green shoots in the U.S. energy industry where a lot of the very large power producers in the United States are now taking a Bitcoin mining strategy very seriously. So we're having lots of interesting discussions at large scale. And the idea with the flexibility in that contract is to potentially take advantage of those opportunities if they come available. Okay. Thank you. Thank you, Aaron.

Thank you. Again, if you would like to ask a question, press the star, then the one key on your touchtone telephone. And we have a question from Kevin Deedy with HCW. Your line is open.

Good morning, Tyler. Thank you very much. Ed, thanks for taking my question. Appreciate it.

Of course. Hey, Kevin. How are you?

Good, good, good. Great to talk to you again. Could you just give us a little bit more on your supply reliability? Are you intending to fly your Bitmain and your micro-BT machines in?

We are. We are anticipating air freight on all our machines, and we regularly check in with our suppliers to sort of re-underwrite the delivery schedules that they have represented and that we've aggregated in this presentation. So I am well aware of some of the recent, you know, delivery challenges that I've seen at some of our competitors and some of the creative ways they've solved that. You know, I'd say like many parts of the supply chain that we're managing, taking this diversification of suppliers approach and maintaining a constant contact with them is our best risk mitigant. And, of course, if we get to the point where we need to be creative about getting the machines here, we will be. But at this point, we will be doing air freight, and hopefully that keeps everything as we anticipate.

And the big question is, you know, you always get this one from me. is just the progress you've seen in Bitfury's machine design. I guess this is, you know, your press earlier gave us some specs, and you alluded to 195 terahash. Got it. I think I saw 6.8 kilowatts. I'm wondering if you think they'll be UL rated, and then what adjustments you'll have to make on your infrastructure in order to accommodate either something drawing 3.2 versus something drawing 6.8, and, right, the accommodations that you'll need for your switchgear, right, at the minor point. And I'm sure that you've thought through this with your team. Just kind of hear me say how you see it.

Yeah, absolutely. I mean, I think, you know, I'd say we're an ambitious company. In addition to being a new company from a public listing perspective, we're an ambitious one. And so our ops team and the folks we have under contract with Bitfury from an operations perspective have to manage that as part of their work stream, sort of what tweaks need to happen at each site depending on which miners we're deploying at a particular site. So the good news is, you know, historically, Bitfury machines, obviously the Bitfury deployment team and their containers, you know, they have a very strong understanding of the engineering necessary to accommodate their machines. And the other piece that I like is that those same operations teams at Bitfury have deployed machines from Bitmain and MicroBT. And so to answer your question, Yeah, I mean, it's customized, and it's all part of the work streams at the different places that the boxes are slightly different. You know, from the outside, they are the same. But when you talk about cutting the server wall, analyzing everything like heat generated and cord length for hundreds of machines, et cetera, as well as, you know, dialing in the power, that's all part of the engineering process. But, again, we're working with an experienced team that has specific direct experience with that challenge. So, yeah. We don't anticipate any issues.

Fair enough. And then a little deeper just on their progress, Tyler, as best you can relay. I mean, I think the last time we spoke, you felt that they had the chip design set, but I know people are having a tough time getting wafer starts. I'm wondering what you might be able to share on their FAB, and, you know, the progress that you see them making there.

Sure. So I guess let me start by saying that though they are, Bitfury is our largest shareholder and near and dear to our hearts, you know, I don't have the kind of insider picture on everything that's going on on their design and manufacturing anymore. But what I would say is, you know, we are at the point where we have that purchase contract with them. And so, you know, their, their chip they had relayed to me has completed the important pieces of the tape out process and that they continue to work with their fab to meet the timeline they've got, which in their contract anticipates a June delivery of machines. And that is what's, what's listed, and then we break it out in our materials that it's anticipated to be a June to December of next year delivery schedule.

Do you have sort of any recourse? I mean, granted, it's, I guess I say, only a $10 million deposit, but I'm just sort of wondering if, you know, you get any sort of rebate or... what else you might have worked into that contract that will work to your favor and also incent them to meet their schedule?

Sure. I mean, I guess the easiest answer to this, which is I suppose somewhat of an obvious one, is that they are still our very large majority shareholder of Cypher, and they are locked up in that shareholding. So I think it's fair to say that probably – I mean, I don't want to speak for them, but I would imagine – no one is more interested in delivering their machines and hopefully convincing us to flex our order to the max than Bitfury. As far as recourse goes, off the top of my head, what I'd tell you in the initial contract, but I would say we buy a variety of things from Bitfury. Obviously, we pay for services and so forth, so I'm not too worried about recourse on our deposit on that machine order.

Right. There's nothing like skin in the game. Exactly. Can you sort of peel back the onion a little bit on their op team? How does that work? Are they contracted by Cypher or how many guys do you have on site? How does that sort of come together?

Yeah, so it's a big team if you go all the way to the subcontractor level. So, you know, we have a contract for services with Bitfury, and it has a framework for pricing that is generally a cost-plus framework, and so it is very favorable. The team at Bitfury is, you know, from a direct contact perspective on who's overseeing the site work, There's sort of a concentrated team and then a much broader team. So I'd say from a regular basis perspective, the concentrated team is about a half dozen people in charge, and then, you know, it goes to dozens of people across the organization that are touching this in one way or another. But, you know, a lot of what Bitfury is doing site by site, depending on the particular piece of work being done, is that, they are acting as like a general contractor and hiring subcontractors. And so when you get down to the subcontractor level, for example, the multiple teams that are at work fabricating containers for different sites, you've got dozens of people working at those contractors on our order, and that's across multiple contractors. Okay. So I guess it's hard for me to give you a total number of people touching every project in every way if I go down to the subcontractor level, but that's, you know, because by design we're working primarily with our general contractor, who is Bitfury, and then they are conducting RFQ processes to hire different subcontractors throughout the process.

Oh, fair enough. That's a wonderful description, so thank you, Tyler. Can we go sort of the top part of the hierarchy here? How are you managing Bitfury's touch?

From a construction and rollout perspective, our main point of contact from Cypher is our chief operating officer, Patrick Kelly. When he's not on the road wearing a mask to the sites, he is diligently working at odd hours in cases where he's got to speak to people that are spread across Europe. In addition to that, The team is ramping up, and we recently had an accepted offer for a chief construction officer to work for Patrick based here in the United States who is extremely experienced in the data center construction and procurement areas. And so that team, on a go-forward basis, will primarily manage the general contractor and subcontractors.

Perfect. Okay.

Yep.

Thank you so much for indulging me, Tyler. Pleasure speaking with you again.

Anytime, Kevin. Thanks for your coverage of the space.

Thank you. And there are no further questions. And if you would like to turn the call back to Tyler Page for closing remarks.

Okay. Thank you very much for everyone that dialed in. And I just wanted to close with a quick message to say that, You know, look, the team at Cypher Mining is near the beginning of a very ambitious journey in a rapidly evolving Bitcoin mining environment. We see all kinds of potential for this environment to expand over the long run, and we think we have positioned ourselves very well to take advantage of those trends that we see coming in the days, months, and years to come. And so every day is exciting for the management team, and we just want to thank all of our shareholders for their trust and support. So thank you very much.

This concludes today's conference call. Thank you for participating. You may now disconnect.