CleanSpark, Inc. (NASDAQ:CLSK) Q4 2022 Earnings Call Transcript

<div>CleanSpark, Inc. (NASDAQ:<a target="_blank" href="https://www.insidermonkey.com/insider-trading/company/cleanspark+inc/827876/" rel="nofollow noopener" data-ylk="slk:CLSK" class="link ">CLSK</a>) This fall 2022 Earnings Name Transcript December 14, 2022CleanSpark, Inc. misses on earnings expectations. Reported EPS is $-0.99 EPS, expectations have been $-0.41.Operator: Good afternoon. My title is Brent, and I will probably be your convention operator at this time. Presently, I wish to welcome everybody to the convention name. All traces have been positioned on mute to forestall any background noise. After the audio system' remarks there will probably be a question-and-answer session. Thanks. Presently, I wish to flip the ground over to Isaac Holyoak, Chief Communications Officer.Isaac Holyoak: Thanks, Brent. And thanks for becoming a member of us at this time for CleanSpark's fourth quarter and financial full 12 months monetary outcomes name. Our press launch was issued about half-hour in the past and is offered on our web site at www.cleanspark.com/traders. At the moment's name can also be being webcast, and a replay and transcript will probably be out there on our web site. I'm right here with Zach Bradford, our Chief Govt Officer; and Gary Vecchiarelli, our Chief Monetary Officer. Understand that among the statements we make at this time are forward-looking and primarily based on our greatest view of the world and our enterprise as we see it at this time. As described in our SEC filings and on our web site, these components might change because the world adjustments. We can even focus on sure non-GAAP monetary measures about our efficiency throughout at this time's name.Yow will discover the reconciliation of GAAP monetary measures in our press launch, which is offered on our web site. It's now my pleasure to show the decision over to Zach.<figure class="caas-figure"><div class="caas-figure-with-pb" style="max-height: 427px"><div><div class="caas-img-container caas-img-loader" style="padding-bottom:67%;"><img class="caas-img caas-lazy has-preview" alt="" src="https://s.yimg.com/ny/api/res/1.2/kbM2Qxw8WlU23f1ZByZYhQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY0MQ--/https://media.zenfs.com/en/insidermonkey.com/f303462827afcfb532e17805a34c6c56"/><noscript><img alt="" src="https://s.yimg.com/ny/api/res/1.2/kbM2Qxw8WlU23f1ZByZYhQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY0MQ--/https://media.zenfs.com/en/insidermonkey.com/f303462827afcfb532e17805a34c6c56" class="caas-img"/></noscript></div></div></div></figure>Photograph by Brian Wangenheim on UnsplashZach Bradford: Thanks, Isaac. Good afternoon and thanks for becoming a member of our name. I need to pause for a minute and say, What a 12 months. It is true what they are saying about Bitcoin. It strikes lightning quick, and so can we. Very similar to canine years, it appears like a 12 months in Bitcoin is about seven years of expertise in conventional markets. And for CleanSpark, that point distortion has been even higher. We have established ourselves as one of many main publicly traded <a target="_blank" href="https://www.yahoo.com/video/top-15-bitcoin-mining-companies-135559095.html" data-ylk="slk:Bitcoin;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;" class="link yahoo-link" rel="noopener">Bitcoin</a> miners on this planet, all in only one 12 months. Once we checked in with you final December for our fiscal 12 months 2021 earnings name, we reported income for that fiscal 12 months of $49.4 million. We had simply over 10,000 machines operational for about 1 exahash. And on the time, we have been simply utilizing 33 megawatts of energy.<button class="link caas-button collapse-button" aria-label="" title="" data-ylk="elm:readmore;slk:Story continues">Story continues</button>We had two websites, one totally working at School Park and one underneath growth at Norcross. And for the fiscal 12 months, we mined 892 Bitcoin final 12 months. And we have been additionally working two enterprise segments. Now this fiscal 12 months we have doubled, tripled, and even quadrupled a few of these key efficiency indicators. Our income for fiscal 12 months 2022 was $131.5 million, virtually a 250% enhance over the prior 12 months. Our adjusted EBITDA was $65.7 million, a 500% enhance. On the finish of the fiscal 12 months, we had over 42,000 miners operational, a 330% enhance -- a 313% enhance. Our hash fee was 4.16, a 312% enhance. And our operational megawatts have been 140 megawatts, a 324% enhance. As of this name, we now have 4 owned and operated websites that we personal 100% with no companions and little debt.And for fiscal 12 months 2022, we mined 3,750 bitcoins, a 320% enhance in our manufacturing. I get requested on a regular basis after I'm at occasions, what our secret is. I inform them two issues. First, I consider that a variety of the entrants into this house thought the bull market would by no means finish. And so, they forgot to plan accordingly. This isn't to forged aspersions on our colleagues. All of us hoped it might web, but it surely did. And we consider strongly it would come again. We began making ready early on by calibrating the three levers of capital out there to us, Bitcoin, fairness, and debt. And principal amongst these is Bitcoin. Since October final 12 months, we have used our Bitcoin to fund our operations and development, and that has made an enormous distinction for us. For instance, our common sale <a target="_blank" href="https://www.yahoo.com/now/10-best-low-price-pharma-130309836.html" data-ylk="slk:price;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;" class="link yahoo-link" rel="noopener">price</a> per Bitcoin in fiscal 2022 was over $35,000 of Bitcoin.The second factor I inform folks is that the important thing to profitable Bitcoin mining is operational. Some teams consider that it so simple as buying capital and plugging in machines. Properly, which will have been true within the bull market. The important thing differentiator now could be operational prowess. It's a must to roll up your sleeves and do the work. That is what makes us a Bitcoin miner. Regardless of harsh financial realities, we now have assembled the groups, instruments and concepts to make the very most of this bear market. We consider nice corporations use bear markets to develop, and we have actually grown so much throughout this bear market. We're significantly happy with the expansion and growth of our owned and operated amenities. Within the final 4 months, we have expanded our campuses with the acquisition of the Washington and Sandersville websites.We additionally totally accomplished Part 2 of our Norcross campus. Whereas the smallest of our websites, Norcross is really a particular place, deploying the state-of-the-art immersion cooling expertise. We have not too long ago opened the power to the local people, together with dignitaries, enterprise leaders, and different officers, all walked away impressed. It jogs my memory that as we do the work of teaching folks about Bitcoin and Bitcoin mining, seeing actually is believing. We did one thing related in Washington. After buying the power, we invited the Mayor, Metropolis Council, Chamber of Commerce and group members to tour the air cooled facility. Once more, that is the way in which to the hearts and minds of the communities we function in, full transparency as we work to domesticate belief in an business that's new for most individuals.The very last thing I need to point out about our development in Georgia is that it has made us an influence purchaser of consequence. We are actually one of many largest energy purchasers within the state of Georgia, and we're the municipal power affiliation of Georgia's largest buyer. We intend to proceed to construct {our relationships} with our associate cities and to obtain the absolute best energy charges for us and the communities we function in. One final key spotlight for the 12 months, and this was a really massive one for us. We transitioned to a pure play Bitcoin miner. As many on this name know, Matt and I based CleanSpark in 2014, to assist folks obtain power independence for houses and small companies. We constructed localized energy grids or micro-grids for navy bases, factories, small companies and folks's houses.In 2020, we started making use of that experience to Bitcoin mining. Once we acquired our very first Bitcoin mining campus in Georgia, since then, we have grown our experience in Bitcoin mining to the purpose that we're passing the baton on our micro-grid enterprise. Subsequent to the quarter's finish, we offered lots of our power property, together with our mPulse and GridFabric merchandise and the contracts related to them. Together with the sale of these property, we transitioned our total software program workforce to new house owners. These strikes carry two clear benefits. First, it permits us to proceed to deepen our experience in Bitcoin mining by streamlining our operational focus. Second, it secures us vital value financial savings within the discount of payroll and dealing capital necessities which might be extremely impactful in a bear market surroundings.As our longtime traders know, this was a low-margin high-capital enterprise, the exit of which is able to save us tens of hundreds of thousands in capital, within the very near-term. We're within the means of promoting the remaining property and we hope to completely divest of our legacy enterprise and the very close to future. I might now wish to transition my dialogue to speak a bit bit extra about what subsequent 12 months appears to be like like for us and what you may fairly anticipate from us as we proceed to develop. A couple of minutes in the past, we filed the brand new Type S-3 with the SEC. Together with his submitting, we additionally filed a brand new on the market providing that permits us to promote into the market as much as $500 million of frequent inventory in a number of public choices over the following three years. These are two issues that -- there are two issues to notice about this submitting and I need to handle each head on.First, we beforehand filed an providing underneath the identical phrases. This submitting features as a refresh of our current shelf providing, which was additionally $500 million, of which we solely threw down about $280 million. The submitting of our up to date shelf registration assertion is designed to present us higher monetary flexibility, permitting us to proceed to safe further capital on an opportunistic foundation to reap the benefits of present market alternatives. Second, I need to take a second to debate issues about dilution. CleanSpark has established a transparent observe document of selecting to situation fairness for accretive functions. We make acquisitions inside a particular ROI vary, as a result of we anticipate them to be accretive to the shareholders in the long term. This transfer permits us to maneuver by a bear market whereas strengthening our operations and establishing a platform for development.During the last two years, we now have added extra property than we have offered in fairness. Over these two years, we raised roughly 395 million in fairness. And through the identical time, we bought miners, amenities, infrastructure and acquisitions, totaling roughly $440 million, additionally including solely round $20 million in debt to our stability sheet. All of the whereas, using as of at this time, about 130 hardworking folks. So as to add to that, our Bitcoin mining income and adjusted EBITDA for final two years mixed was $170 million and $77 million, respectively. These strikes translated into particular development alternatives which have made us one of many high publicly traded Bitcoin mining corporations. This month, we have now hit a excessive of 5.8 exahash per second, and we're on observe to hit 6 exahash per second earlier than the top of the 12 months.As a result of machines we have been quickly internet hosting our requirements off website are actually being moved out sooner than anticipated. Including to that, our every day Bitcoin manufacturing excessive has reached 21.7. We additionally exceeded our year-end hash fee steerage, and in November mined a document 535 Bitcoin that month. I need to reiterate that our technique of utilizing equities is paired with how we use the Bitcoin we mine, even earlier than the present bear market, when the Bitcoin value was nonetheless hovering across the $50,000 value stage. We used Bitcoins to assist our operations and development when our friends have been selecting to dilute shareholders in favor of holding the Bitcoin they produced. On the time, this was a daring transfer. We proceed to consider on this strategy to maximise worth for our shareholders, and reserving fairness as a monetary device to assist development.This technique has rewarded us properly, permitting us to develop even throughout these robust instances for the mining business. However, we is not going to prioritize development at any value, daring development sure, however not the type of arms race that has so shortly deteriorated the monetary well being of our business. With that in thoughts, I might wish to spend a while speaking about our development philosophy. We set daring realizable projections for our hash fee development in our final earnings name. At the moment we guided in direction of 22.4 exahash by the top of 2023. Earlier this 12 months, we introduced a partnership with Lancium. As a part of the settlement, Lancium agreed to construct clear campuses in West Texas to host 200 megawatts of our machines or about 6.6 exahash of our 2023 calendar year-end steerage. Initially, they dedicated to offer the primary 50 megawatts in December of this 12 months and the following 150 megawatts in spring of '23.In August, Lancium tell us they have been experiencing delays and we communicated to you that we have been shifting our expectations for the preliminary 50 megawatts to early '23. Only recently, they knowledgeable us of capital constraints affecting their capacity to satisfy their commitments for all 200 megawatts, pushing the readiness of those amenities into late 2023, and primarily based upon present market circumstances, it is more likely to be even later. Whereas we intend to proceed to work with Lancium long-term, everyone knows that being in a colocation enterprise is extremely tough proper now. And because of this, we're revising our 2023 calendar year-end steerage to 16 exahash. Look, if we may beat 16, which we need to do, we'll. We've a observe document of doing simply that.We guided a 5 exahash for the top of this calendar 12 months, and we're now taking a look at 6. We selected to enter the spot marketplace for machines as a substitute of locking up cash in long-term machine contracts. And we have been proper about that, typically setting the ground value. We selected to promote the Bitcoin we mined to fund our development in operations and that too has confirmed to be appropriate. And all alongside the way in which, we have gotten higher and higher about execution. This workforce continues to exceed my expectations, and I am happy with them. And I would like you as shareholders to have the identical satisfaction that I do. If we may beat 16 exahash, and we actually have a observe document of over-delivering on our steerage, we'll do our damnedest to proceed to take action. As I mentioned, we'll develop however in no way value.Thus far in our growth, we have been laser targeted on growing Bitcoin manufacturing. With Bitcoin's present costs, we're additionally targeted on maximizing margins. If producing much less Bitcoin at a better revenue margin is the proper factor to do, we'll do this. Let me repeat, the aim is to maximise margins. And the surest method to try this is to responsibly mine. We're being attentive to each Bitcoin and energy costs. And to be clear, simply because we're maximizing margins doesn't imply we're seeing giant manufacturing decreases. Presently, our uptime averages are higher than 90%. Properly, our inside evaluation signifies that we're in or nearing the underside of the bear market. That doesn't imply we're out of the woods. I need to thank our shareholders for trusting us and taking this journey with us.Bitcoin is just not some passing fad it's a technological and monetary development in human historical past. Our world is barely starting to know it. Adoption is growing all through the world. Layer two and three applied sciences proceed to emerge and develop. That is transformational expertise. And that half about adoption is vital. When the web was at Bitcoin's present stage of development, adoption was rising at 85% a 12 months versus the 165% a 12 months that Bitcoin is rising. We're simply in the beginning. So, to our shareholders, thanks for sticking with us on this journey. You spend money on CleanSpark since you consider in our workforce, that we're environment friendly, expert operators who mine at one of the best margins potential for our shareholders. Earlier than passing the mic to Gary, I might wish to make another remark, and that's to thank the groups which have made this all potential.The CleanSpark workforce is unbelievable. From company headquarters to the mining campuses, our individuals are dedicated to do what we're collectively undertaking. I might particularly wish to thank our groups within the discipline. You've got racked and repaired in warmth and chilly, rain and shine, 24 hours a day, seven days per week. The result's a very spectacular community of mining campuses which might be making a distinction within the lovely communities they're situated in. Thanks. I might now like to present the ground to Gary, our Chief Monetary Officer, to debate our monetary outcomes.See additionally <a target="_blank" href="https://www.yahoo.com/video/10-best-copper-stocks-buy-161324595.html" data-ylk="slk:10 Best Copper Stocks To Buy Now;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;" class="link yahoo-link" rel="noopener">10 Best Copper Stocks To Buy Now</a> and <a target="_blank" href="https://www.yahoo.com/video/11-reit-dividend-stocks-over-153642113.html" data-ylk="slk:11 High Dividend REIT Stocks To Buy.;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;" class="link yahoo-link" rel="noopener">11 High Dividend REIT Stocks To Buy.</a>Gary Vecchiarelli: Thanks, Zach. I wish to echo a number of factors Zach made, as they can't be emphasised sufficient. 2022 was a transformative 12 months for CleanSpark, and whereas the Firm achieved historic revenues and adjusted EBITDA, it might not have been potential with out what we contemplate to be a best-in-class operational workforce. It's that workforce and the people who comprise that workforce, which have made us one of the vital environment friendly Bitcoin mining operations on the planet. Their efforts are the explanation why we are able to speak about these document numbers at this time. Reviewing the numbers for the 2022 fiscal 12 months, you will notice that our revenues have been $131.5 million, which was a rise of 235% over the prior 12 months. This was clearly resulting from a full 12 months of Bitcoin mining operations, the place we elevated our hash fee by over 3 instances by the top of the 12 months.Granted, Bitcoin has been a risky asset, we began the fiscal 12 months with Bitcoin costs at close to all time highs, solely to finish at multi-year lows. Whereas our GAAP revenues mirrored a major decline at Bitcoin costs, we proceed to mine extra Bitcoin each single month and ended the 12 months with 3,750 bitcoins mined for the 12 months. We did see a considerably higher web loss this 12 months, greater than doubling. The first drivers of this web loss have been non-cash in nature with over $100 million of non-cash gadgets hitting our P&L. A few of these gadgets relate to the exiting of the power enterprise, as we mentioned on our Q3 name. We even have vital non-cash prices associated to modification of fairness devices, primarily pushed by the volatility in our inventory in recent times, for which volatility is a key put in analysis of valuing fairness devices.We additionally noticed virtually $50 million in depreciation, immediately associated to a speedy development and acquisition of miners and associated gear, a few of which was recorded at a lot larger prices than present spot market pricing. Whereas we all know Bitcoin market costs and margins compressed as 12 months went on, if you take a step again, I consider these numbers paint an vital image, and that's the energy and scale of our enterprise. When Bitcoin value is excessive, our margins develop, and we expertise vital money movement. Nevertheless, when Bitcoin costs depressed, as we're within the present market, our enterprise mannequin and operations have the resiliency to nonetheless function on a constructive adjusted EBITDA foundation. Our capacity to mine Bitcoin effectively and profitably throughout a bear market is a direct reflection of our disciplined operations and low debt leverage.Trying on the fourth quarter particularly, you possibly can see the results decrease Bitcoin value had on the newest quarter. We mined greater than twice as a lot Bitcoin within the fourth quarter in comparison with the identical quarter final 12 months, and solely acknowledged a rise of 15% in income. Evaluating the fourth quarter to previous third quarter, it is a related story. We mined 27% extra Bitcoin than the third quarter, but noticed 16% decline in income. Since mined extra Bitcoin, we used extra power, which immediately affected our gross revenue. In comparison with the identical quarter 2021, our gross margins have been solely 36%, producing $9.5 million of gross revenue in comparison with virtually $20 million in the identical interval final 12 months. Trying on the fourth quarter in comparison with the speedy prior third quarter, our margins have been reduce in half as a result of decline in Bitcoin pricing.Shifting to the following slide. You will notice we had a lack of over $42 million within the fourth quarter in comparison with $5.4 million within the fourth quarter of the prior 12 months. We skilled vital web losses on a GAAP foundation for a number of causes. Foremost, as a result of decline in Bitcoin costs, we had impairments to our goodwill stability of over $12 million. These goodwill balances have been initially acknowledged because of our entry into the Bitcoin mining business again in December of 2020. The evaluation required by the accounting guidelines didn't assist the carrying worth of the goodwill. Like lots of our business friends, our goodwill was written down. Our stock-based compensation was virtually $14 million, which is critical larger than the prior durations resulting from modification of sure fairness devices.It is vital to notice that these two gadgets represented virtually $26 million of the hole base loss alone. And each of those prices have been noncash gadgets. Moreover, we did see the lack of discontinued operations decreased from $7.5 million within the third quarter to $1.1 million within the fourth quarter. This can be a direct impact of our exit from the power enterprise. And we anticipate this quantity to drastically lower in 2023 and finally be zero as we full the sale of any remaining power enterprise property. On the proper facet of this slide, you will notice our fourth quarter adjusted EBITDA, a non-GAAP metric administration makes use of to judge the money movement from operations. This additionally exhibits the impact of a low Bitcoin value has our money movement. As you noticed adjusted EBITDA margins decreased 11%, a few quarter of what the adjusted EBITDA margins have been at each This fall '21 and the previous third quarter of this 12 months.Nevertheless, I need to level out that whereas our margins and money flows have been compressed, our wonderful operations workforce continues to mine Bitcoin on a worthwhile foundation. That is achieved by an hourly evaluation of breakeven pricing fashions, incorporating present Bitcoin costs, present energy costs, and our hash fee as a share of the worldwide hash fee. This fixed monitoring of our operations permits us to not solely acknowledge Bitcoin on a worthwhile GAAP foundation, but additionally on an adjusted EBITDA foundation. Looking at our stability sheet, you will notice that we had over $31 million whole liquidity as of September thirtieth, with over $20 million in money. This liquidity was primarily used for the Sandersville Georgia acquisition, and our $28 million buy of 10,000 S19J Professional machines from Bitmain subsequent to year-end.We additionally had a good market worth of $9 million for property held on the market associated to our power enterprise. As you learn in our Type 10-Ok, we offered a portion of those property in November. The remaining power enterprise property are anticipated to be offered within the close to future. As I identified beforehand, we now have little or no leverage on our stability sheet with roughly $21.2 million of notes payable excellent. This quantity is primarily the Trinity mortgage that we closed early within the 12 months. In August, we had a $7 million of assumed mortgages and a brief time period vendor carry again mortgage associated to the acquisition of the Washington Georgia website. We consider we now have among the finest, if not one of the best, stability sheets within the mining business. And we anticipate to make the most of our stability sheet for continued development within the coming 12 months.On the following slide, you will see a snapshot of our present CapEx. We've 58,500 miners deployed with over 4,000 able to be deployed and one other 6,400 to be delivered in January. Our present hash fee is 5.8 exahash, and as Zach talked about, we anticipate it to be at 6 exahash by December thirty first, numbers which have surpassed expectations and are a testomony to the operational workforce we now have on the bottom in Georgia. I additionally need to level out that we now have no present excellent commitments for miner CapEx. This is a crucial information level because it supplies us the power to be nimble and shortly purchase property on the spot market if we so select. We even have budgeted $70 million for building to construct the 200 megawatt expansions at Sandersville and Washington, which represents an approximate value of $350,000 a megawatt.We at the moment want a further 95,000 miners to achieve our present steerage of 16 exahash by December thirty first of subsequent 12 months. This quantity is just not mirrored right here because the variety of miners and the price of that CapEx will fluctuate. This value will fluctuate relying on the mannequin miners we buy and the associated fee per terrahash. The 95,000 quantity was primarily based on assumption that every one of these miner purchases can be S19J Execs. And the quantity may probably be decrease if the corporate decides to buy extra XPs or different fashions with larger processing energy. As you additionally see them on the slide, we now have over 10,500 miners that we energize within the close to future, which represents a further 1 exahash of processing energy, which might get us near 7 exahash early subsequent quarter.I need to finish my feedback speaking about our capital technique, one thing that has actually set us aside amongst our friends. Our first quarter name, we mentioned the three levers we may pull for capital in our enterprise. We have utilized a minimal quantity of debt on our stability sheet, and having low debt service has allowed us the pliability to develop throughout these robust instances Whereas debt markets are at the moment closed for many mining corporations, we proceed to have constructive dialog with lenders, primarily due to our stability sheet and monetary place. Nevertheless, we stay cautious given the contracted margins and we'll get hold of debt at a time after we really feel comfy, one thing I beforehand known as good leverage. And what I imply by that's that we aren't going to tackle poisonous debt that can jeopardize the good work and development we have skilled so far.Bitcoin is one other lever of ours, which we now have been very clear about utilizing. In 2021 and all through 2022, we have been vocal about promoting Bitcoin to pay for operational expenditures and development CapEx. Our technique once more proved efficient as we offered Bitcoin at a median value of over $35,000 for the fiscal 12 months 2022. Now, it is easy to Monday morning quarterbacks this contemplating the place Bitcoin costs are actually, however we consider then, as we do now, that Bitcoin is our useful forex and we'll proceed to make use of our Bitcoin manufacturing as a method of liquidity. And final I need to handle our use of fairness. As Zach mentioned earlier, we now have filed for a refresh in our ATM facility of $500 million. I see the power as simply one other device in our toolbox, one in every of a number of instruments in fairness we are able to use however wouldn't have to make use of.We've used each the Bitcoin and fairness levers to get us up to now and it is paid off as our hash fee has exponentially elevated within the final 12 months, particularly over the previous couple of months. We are going to proceed to make use of fairness as applicable. However I need to be very clear. Once we use fairness, we intend to make use of it for development capital expenditures the place the return on funding is significant and helps produce accretive consequence for our shareholders. From the place I sit, utilizing fairness will permit us to amass property, which is able to produce free money movement and don't have any encumbrances or debt service. That is vital to our firm as we need to be ready for the following enhance in Bitcoin value. And having unencumbered property will permit our free money movement margins to enormously enhance.Moreover, we now have mentioned earlier than {that a} rising tide lifts all ships. Which means with a rising Bitcoin value, we might anticipate there can be corresponding will increase within the value per terrahash of machines and infrastructure, and hopefully a rise in our inventory value too. Nevertheless, we additionally anticipate {that a} larger Bitcoin value would enhance economics and important miners, additionally lowering the variety of alternatives for low priced acquisitions. In reality, if Bitcoin value have been to rebound considerably, the restricted acquisition alternatives may truly name for a premium reverse of what we're seeing at the moment within the market. Subsequently, we see a lot alternative within the quick and midterm to make accretive acquisitions at traditionally low costs.Thanks to your time. Isaac, again to you.Isaac Holyoak: Thanks, Gary. Operator, this concludes our ready remarks. We might now wish to open the road for questions from analysts.To proceed studying the Q&A session, please <a target="_blank" href="https://www.insidermonkey.com/blog/cleanspark-inc-nasdaqclsk-q4-2022-earnings-call-transcript-1100739/#q-and-a-session" rel="nofollow noopener" data-ylk="slk:click here" class="link ">click here</a>.</div>