J Darrin Gross

I'd like to ask you, Beau Turner, what is the BIGGEST RISK?

Beau Turner

Well, I think the Bitcoin network itself is very challenging to find any sort of risk in, and I think that would be surprising to most people to hear. But part of the reason it is such an incredible innovation is how it is designed to be resilient in almost any case. I mean, like, short of a forever nuclear winter and the Internet going down forever everywhere, there's not really a legitimate way to take this network out. So what I would say the risk is for our business, since we're in the mining space, is that we're actually in the physical world. So Bitcoin is a unique asset among assets, because it is digital. It's theoretically indefinite. It doesn't have a lifespan. It doesn't have a half life. It can exist forever. When you get into mining, people are usually getting into mining to outperform Bitcoin, to get, you know, the tax advantages of depreciating equipment, to get the income stream. But when you enter into the mining space, the risk that you're taking is that now you're dealing with the physical world, whereas you weren't, if you were just doing what you do, which is, you know, hold Bitcoin and cold storage digitally. And so you have to be very careful. And I mentioned, you know, briefly, our story of our first experience getting into mining in the physical world. And so the people that you work with, to me, are the most important risk to account for. That kind of goes untalked about. Your environment matters a lot. So we were, we were hosting originally in Georgia, which is a very hot, humid climate for you to run computers that are going 24/7 so we've, we've decided to locate in the beautiful state of Oregon, where we've got pretty cool climate, year round, lots of renewable power inputs and very low natural disaster risk. There's a pretty good set of reasons why you see a lot of the largest data centers and hyperscalers in the world choosing to make Oregon and the Pacific Northwest a home. That's part of it. And then we mentioned energy risk as well, which I think that's, that's probably the key economic risk. You know, the other things I talked about were more like, Is my asset going to exist? What can, what can, critically threaten me, actually owning this thing and it being safe? The energy risk is more about the business model, insulation. So, you know, energy pricing has gone up for most people, across the board, almost everywhere. The way that we guard against that really is just diversification. So we have sites in many different utilities. We have six facilities right now and building two more, and they all have a totally different energy procurement situation. They're all in different utility jurisdictions. That helps us with mitigating outages, but it also gives us insulation to the energy markets themselves. So those would be the key risks that I would highlight, and the ways that we uniquely tackle them.

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