Good day, ladies and gentlemen. Welcome to Marathon Digital Holdings' First Quarter 2024 Earnings Webcast and Conference Call. I would now like to turn the call over to your host, Robert Samuels, Vice President of Investor Relations. Please go ahead.

Thank you, operator. Good afternoon, and welcome to Marathon Digital Holdings' first quarter 2024 earnings call. Thank you for joining us for our call today. With me on today's call are our Chairman and Chief Executive Officer, Fred Thiel; and our Chief Financial Officer, Salman Khan. Before we get started, I'd like to remind everyone that our prepared remarks may contain forward-looking statements, and that we may make additional forward-looking statements during the question-and-answer session. These forward-looking statements are subject to risks and uncertainties and actual results may differ materially. When used in this call, the words anticipate, could, enable, estimate, intend, expect, believe, potential, will, should, project and similar expressions as they relate to Marathon Digital Holdings are as such a forward-looking statement. Please refer to our earnings release for a full recitation of our forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those anticipated by Marathon at this time. Some of these risks and uncertainties are more fully described in Marathon's public filings with the U.S. Securities and Exchange Commission, which can be viewed at www.sec.gov, and ir.mara.com. Finally, please note that on today's call, we will refer to certain financial measures that were not prepared in accordance with generally accepted accounting principles in the United States, including adjusted EBITDA and non-GAAP total margin. Marathon believes these non-GAAP financial measures are important indicators of its operating performance because they exclude certain items that are unrelated to and may not be indicative of its GAAP financial results. Please refer to our company's periodic reports on Form 10-K and 10-Q and to our website for a full reconciliation of these non-GAAP performance measures to the most comparable GAAP financial measures. As usual, we'll begin today's call with prepared remarks from Fred and Salman. After their comments, we will be going through some of the more popular questions from investors before transferring to a live Q&A with our covering analysts. And with that out of the way, I'm going to turn the call over to Fred to kick things off. Fred?

Thank you, Rob. The first quarter of 2024 was one of our most transformative to date. We officially transitioned Marathon from being an asset-light Bitcoin miner and laid a solid foundation on which we are building this organization into a globally diversified company that leverages digital asset compute to build a more sustainable and inclusive future. During the quarter, we significantly grew and improved the resilience of our portfolio of digital asset compute by acquiring and integrating our first fully owned and operated Bitcoin mining sites. At the end of last year, our portfolio consisted of 584 megawatts of capacity, only 3% of which we directly owned and operated. In less than 4 months, we initiated, negotiated, closed and integrated our first 2 acquisitions comprised of 3 sites. The first 2 being the sites in Granbury, Texas and Kearney, Nebraska, and the second being the site in Garden City, Texas, that is adjacent to a wind farm. We purchased these assets for approximately $458,000 and $437,000 per megawatt, respectively, which is approximately half the cost of what some of our competitors have paid to build new sites. In Q1, we effectively doubled the size of our portfolio to 1.1 gigawatts of capacity, and we gained far more direct influence over our operations by taking direct ownership and operational control of 54% of the portfolio. We did this while generating significant savings for our shareholders relative to building sites the way our competitors have, and we quickly gained enough capacity to meet our near-term growth targets of 50 exahash by the end of this year. As we cost-effectively laid this path to accelerate our scale and enhance our operational influence, we also launched our first products and services as an organization, each of which demonstrates our commitment to expanding and diversifying…

Thank you, Fred, and welcome, Rob, to team MARA. As Fred mentioned, our Bitcoin production was negatively impacted in the first quarter by transformer and other issues. Despite these challenges, the positive momentum in Bitcoin price, our strategy to increase our Bitcoin holdings over time and our team's consistent ability to execute help us drive record financial results for the quarter. Let's dig into the details. We reported net income of $337 million, or $1.26 per diluted share in the quarter. This was a 184% increase from net income of $119 million or $0.72 per diluted share in Q1 of last year. The increase in net income was primarily driven by favorable Bitcoin price, higher production, and fair market value of digital assets on our balance sheet. Revenues increased 223% to a record $165 million from $51 million in the first quarter of 2023. With the average price of Bitcoin mine being 126% higher this quarter than the year ago period, the increase in revenue was primarily driven by a $77 million increase in the average price of Bitcoin mined. We produced an average of 30.9 Bitcoin each day during the quarter compared to 24.4 Bitcoin each day in the prior year period. These improvements in production also contributed approximately $10 million to our top line. As a result of closing the recent acquisitions, we are temporarily providing hosting services to existing hosted customers during the transition period. The revenue we generated from hosting revenues was $21 million, which was not present a year ago. We expect this revenue to taper off in the coming quarters as we work with current tenants off the sites on their transition plans and use that space for our own growth. Our hosting and energy costs were $71 million compared to $33 million last…

Thanks, Salman. Over the past year, we've evolved from outsourcing our operations to third-party hosting providers to owning and operating sites, developing and marketing technology products, and using waste and stranded power to generate energy and recycle heat. During Q1, we laid the foundation for Marathon to become a globally diversified company that leverages digital asset compute to build a more sustainable and inclusive future. And as we transition into the second quarter, we are reorganizing the internal structure of the business to better align with our growth opportunities, sharpen our strategic focus, bolster accountability and maintain our speed and agility as we scale. Starting in the second quarter, Marathon will be restructured into a matrix organization consisting of 3 business units, utility scale mining, technological innovations, and energy harvesting and supporting organizations such as Marcom, Finance, et cetera. In my opening remarks, I spoke at length about the first 2 of these verticals. Utility scale mining is our large scale global digital asset mining operations. This vertical is what Marathon is primarily known for today, large-scale digital asset compute that's geared towards enhancing grid stability and the security of the world's preeminent blockchain ledger. Our technology division is focused on creating advanced technologies that transform digital infrastructure. This group has already launched its first series of products, and going forward, its mission will be to deliver innovative hardware, software and services that maximize energy efficiency, improve performance and unlock new opportunities for those who operate at the edge and for those who are building the foundation of the digital future. In March, at the Empower Conference, we demonstrated how the combination of MARA firmware and 2PIC immersion enabled us to operate state-of-the-art digital asset miners at significantly higher performance levels with near-minimal impact to energy efficiency. Using this solution…

[Operator Instructions] We'll start by answering some of the most popular questions submitted by investors through our Q&A platform. So our first question comes from [ Alexander Ren ], who asks, post halving, in what ways does MARA in a better position to stay profitable and grow compared to other mining companies? Fred, do you want to take that one?

Sure. So a number of things. By acquiring sites and vertically integrating, we lower our cost structure. So essentially taking out the middleman who was the third-party hosting operator and taking out their margin, which, in some cases, can lower our cost by as much as 20%. Additionally, the diversification of our revenue streams, technologies such as Slipstream, which enhance our ability to earn transaction fees over and above what normal FPPS pools earn, provide us with abilities to, in a lower Bitcoin block subsidy world such as post-halving generate, generally, greater revenues on a per block basis. So we believe we're very well positioned with our diversified revenue streams that we'll be developing over the coming years to be positioned to take advantage of whatever the market brings to us in the near- and long-term.

Our next question, and we have a couple of questions related to M&A, but [ Parminder S ] asks, is MARA looking for a merger or planning to buy out other miners in the short-term? Fred, do you want to take that one as well?

Well, we've already shown that we're acquiring hosting companies and the sites for capacity. Now, to date, these have been mostly sites where we have miners installed currently. So it's a very easy integration. The challenge with integrating and acquiring miners that have their own fleets of miners is the age of miners that they have in their fleets. Most companies today are still transitioning to the latest state-of-the-art S21 class of machines and may be running S19j Pros or even XPs. The challenge is, if we were to acquire a miner today and attribute any value to their fleet of existing machines, especially if their machines were S19j Pro or older, that wouldn't be a very smart idea. So essentially, as we acquire miners, you'll tend to find that pricing will be very focused on the infrastructure value as opposed to the miners that are installed, unless, of course, they have state-of-the-art miners installed, at which point you can value them at their replacement cost. But I think typically, most publicly traded miners have valuations which exceed essentially the cost to rebuild that infrastructure, and it comes down to a question of time to revenues. And what is it worth for you to acquire a miner that has capacity running and miners installed versus building it yourself and how much extra do you want to pay for that time to market.

Our next question comes from [ Roshan U ], who asks, what's the status of your open ATM? And do you think this is the reason that MARA has not been tracking the price of Bitcoin? Salman, I think this one is for you.

[ Roshan ], in Q1, there was a general rotation out of miners into the recently launched ETFs. We believe the top performing miners will see price appreciation as the investors see the results. Similar to other industries like oil and gold, ETFs have their own position in the value chain, while oil and gold companies create value for their stockholders and generally track the commodity price with premium on top of the commodity price. In terms of the ATM, as of March 31, 2024, we had not accessed the new ATM. And subsequently, we raised about $200 million. As a reminder, the ATM gives us low cost of capital to invest in accretive acquisitions or grow the company as we continue to use Bitcoin to fund our operating costs and G&A.

I think the next one is for you as well. [ Orlando C ] asks, what's your current breakeven for Bitcoin? You want to take that one?

Great question, Orlando. There seems to be a lot of diversity in the industry in terms of how the companies report their costs and where is it parked and all that stuff. So it's a difficult question to answer in terms of apples-to-apples comparison. So with that in mind, typically, you could look at multiple ways. One is, marginal cost of revenue without depreciation, which is cost of revenue minus depreciation non-cash items. And that's one way of doing it. The other way of doing it is to look at cost per hash, which we believe is a better representation in this industry. So cost per petahash, as we talked about previously in our prepared remarks, we have improved about 16%. And as we fully integrate these recently announced acquisitions, as Fred had mentioned, some of those acquisitions can be -- can save up to 20% on our costs. All these costs will continue to show up in the future quarters as these synergies kick in and we integrate these acquisitions completely. As a reminder, our mining fleet remains the industry's one of the most efficient, which will even get better and more efficient as we progress with time and we hit the 50 exahash towards the end of the year. And that larger scale of exahash, it will allow us to spread the fixed cost across the larger pool, which, on a unit basis, will make us even more efficient. Moreover, just a quick reminder, our G&A per hash or coin remains one of the lowest in the sector, and that shows how efficiently the company has operated historically.

Our next question comes from [ Tarik P ], who asks, what are your plans for increasing efficiency and reducing the recent downtime at several bitcoin mining facilities? Fred?

Yes, great question, [ Tarik ]. So if you think about what happened in Q1, as I mentioned in my prior remarks, we had transformer issues at third-party hosted sites and we had a utility line maintenance that was done that shut down one of our sites for a short period of time, and then we had weather events. All of these are exogenous factors. If you think about when you own and operate sites, you look to do things like standardize equipment across sites so you have standard operating procedures, you also have spare parts for everything you're doing. One of the challenges with the Ellendale site were transformer issues, where some of the transformers that were installed could not operate at their stated spec. And so, as those transformers started to fail, they had to be replaced and/or modified. And had we built that site, we most probably would not have used Chinese transformers but rather transformers of higher quality that would operate within spec. So again, over time, as more and more of the sites that we operate at come under our own control, I think we'll see uptime continue to tick up and we'll see performance improve. When you think about just operating efficiencies, again, stripping out the third-party hosting provider dramatically impacts your cost because you're stripping out some of these built-in margins. And we also begin deploying our immersion technology. The 2PIC immersion technology does a number of things. For one thing, it increases the -- essentially, the lifespan of miners because these miners that traditionally would be air cooled in many sites essentially have to be serviced every 30 days, they have to be cleaned, filters have to be changed, fans have to be replaced, and the mechanical load at the sites is higher. Using 2-phase immersion, you don't have a lot of those issues. We have immersion systems that have run for months without having to be serviced at all. And so, that reduces the overhead at the site, which reduces your operating cost, makes you more efficient, increases uptime. And the other advantage with 2PIC immersion is that, you become fairly immune from heat waves because, at the end of the day, the liquid in this tank is boiling, which means that it's likely to be hotter in the tank than the ambient temperature would be. So that makes heat much less of an issue, especially in places like Texas and in the UAE, for example. And if you look at our site in UAE, that site operates with 99.8% uptime. And this is in an environment where the ambient temperature is over 100 degrees and humidity is well into the 90% range. So I think that's a great example of how our sites operate more efficiently and more effectively when they're under our control.

In the interest of time, I think we'll have to wrap up this section of the Q&A. And again, we really appreciate the questions and interest. I'm now going to turn the call back to our operator to open the line to questions from our covering analysts. Alicia, back to you.

[Operator Instructions] Our first question comes from the line of Lucas Pipes with B. Riley Securities.

Fred, my first question is on the pool performance you mentioned. I think you said 44% better. To what extent was this chance versus you being able to pick off kind of above average rewards?

Yes. So over the past week period, which that number comes from, it's about 40-point-something percent, not 44%. But there were certain transactions that had very high fees. And at the end of the day, you have to win the block to get paid the transactions. But what Slipstream enables us to do is essentially generate additional fees on top of the standard fees that the pool otherwise would earn. And so, even if you look over longer periods of time, whether it's October through May, October of last year through May, MARA Pool has performed amongst the top pools from an average fee structure. A way to look at it is, if you were to optimally fill a block with the highest value transactions, that would be an index of 0. And then how does a pool perform against that with blocks? And most of the FPPS pools operate at a minus 1% to 2%, sometimes 3% below the optimum, where MARA Pool together with Slipstream has been performing above that. And for the period really for the early part of this year-to-date, it's been almost 6%, 7% and sometimes higher than FPPS pools that it competes against. So this is an advantage that, over time, may decline as more people start trying to leverage the types of technologies that built into our pool. But this is the whole reason why having a vertically integrated tech stack is so important. It allows us to do things that you can't when you're just buying best-of-breed technologies and putting it together. An analogy some people use when describing what we're doing is it's kind of the difference between the PC industry and the Apple ecosystem. Apple is all vertically integrated from their own chips, through their own software, their own cloud services, et cetera. Whereas the rest of the industry uses microprocessors from 1 vendor, operating system from another vendor, graphics, et cetera, from other vendors. So we believe a very tightly integrated tech stack allows you to operate large-scale digital asset compute in a much more efficient and optimized manner than just buying third-party services and leveraging third-party pools.

I appreciate that, Fred. And from a modeling perspective, would it be too early to guide on an additional revenue on that? Or would you...

Yes. I think you could definitely work with Rob to look at the data. And you can actually just see this in mempool.space. You can just run reports for different periods of time and you can see how our pool fees have averaged compared to others. But I think that over time, 2%, 3% would be a conservative estimate to use for modeling purposes. And then there will be times where it's higher and there may be times where we operate at the same as FPPS pools, but 2%, 3% on average should be fine, which over time becomes quite a large number.

Fred, and turning quickly to M&A, I know this has come up before, but where are you spending your energies right now? And are there kind of more opportunities like the ones you've executed on recently in front of you? I would appreciate your thoughts on that.

Sure. So with the acquisitions we've already done, we have capacity to get to our 50 exahash goal by the end of this year. And we obviously have the miners inbound to fill that available capacity. So as we look at acquisitions, going forward, we believe that, as I've said before, there's a mix of kind of third-party hosting sites that may be attractive. There's a mix potentially of sites where somebody has tied-up power, but hasn't fully built out the infrastructure. And then there are true greenfield where you're out talking to energy companies, solar project developers, wind project developers and trying to negotiate power deals and then having to build infrastructure from the ground up. So we're looking across all 3 of those buckets pretty equally. We believe that this period post-halving now is going to be quite rich when it comes to M&A opportunities. And we believe that there will be some great opportunities to acquire more capacity. We don't think that there will be a shortage of compute. We look at pricing in the marketplace and what we're seeing is more efficient rigs coming to market at essentially the same prices as they are now. And we don't see an additional buying wave now post-halving of compute. So we think that, that market will likely remain fairly stable with relatively easy access to be able to buy more rigs. And we continue to think that capacity, in other words, sites are kind of the shortage and there's a lead time if you're going to build sites also. So we think that as we look towards 2025 expansion because, obviously, we're not going to stop at 50 exahash and we look at '26, '27 and towards the halving in '28, we think that companies like Marathon, where you have very large scale, utility scale mining, if you would, combined with energy harvesting and technology sales provides you with a really robust and resilient business where you can weather ups and downs and then also get the leverage of being able to continually operate a little bit better than everybody else. That's the goal, be the most efficient, most optimized operator out there.

This is helpful. I want to turn it over. Fred, to you and the team, best of luck.

Our next question comes from the line of Joe Flynn with Compass Point Research.

I had a question regarding the Generate Capital acquisitions. I was wondering how many megawatts of capacities were currently hosted by legacy customers. And if you could provide more color on, ultimately, the timelines of freeing up that capacity and transitioning it to self-mining, that would be helpful.

Yes. So about 390 megawatts of total capacity of which we already had somewhere around 180-ish megawatts that we were using. There is about 75 or 80 megawatts, which will be vacated by the end of June, and then the balance, we think shortly thereafter. So we think we'll have 100% utilization of that site for our miners in Q3.

Great. And then a follow-up on kind of the power costs. The hash costs look to be impacted just due to the uptime. But just going forward, how should we think about maybe just power costs from a cost per kilowatt hour basis? And ultimately, how owning your own infrastructure can layer in to lower those costs and how much improvement can we see in kind of the second half as you install more efficient machines?

Sure. So if you look at the sites in Texas where we can take advantage of a variety of programs to monetize energy, when we were using sites that were operated by a third-party, we didn't get the benefit of economic curtailment in power trading, which is something we now have the benefit of. And we have actually reaped some very material gains already in the first quarter from some of that activity. But that's very opportunistic. It depends on temperature spikes, things that happen in the market that allow you to really benefit from that. The big challenge -- the big difference rather with owning sites versus using third-party sites as you strip out this kind of upwards of $0.02 a kilowatt hour that the hosting provider was charging you, which was their way of covering their infrastructure costs, their operating costs, et cetera. We believe we can operate sites that we own for somewhere between $0.05 and $0.01 per kilowatt hour. It kind of depends on the where and what type of technology. The more immersion technology we have, the lower the cost to operate the site as an example. When it comes to power prices, there's some wide ranges from PTAs that are in the sub $0.03 range to things that run upwards of $0.04. So somewhere in that range across the different sites. But the key savings from the shift from asset-light to owned and operated is stripping out that margin of the third-party hosted provider. So you can imagine $0.01 to $0.015 a kilowatt hour reduction in your cost to mine is pretty significant.

Our next question comes from the line of Kevin Dede with H.C. Wainwright.

Could you, Fred, maybe peel the onion back a little bit on power? I know you moved some rigs from Ellendale. Could you give us your thinking on when you might be able to move rigs back? And how you plan on building or filling out? I think you have available capacity at the old Generate Capital sites. Just give us some feeling for where you're going with power and how you'll be able to support 50 exahash this year?

So let me see if I understood your question properly. So from a capacity perspective, we'll be filling out a lot of the existing capacity over Q3 and a little bit into Q4 as well. As I said earlier to somebody's prior question, we should be seeing most of the hosted customers vacated, majority of the capacity really by end of this quarter and leading into a little bit into Q3. And we halve a whole slew of miners coming in to plug in that are all state-of-the-art S21 class machines. Within the case of Ellendale, power has -- we've been able to bring the site back up partially. Right now it's operating at about 60%, 65% of its max capacity, and each week, a little bit more comes online as transformer fixes are made by Applied on that site. And so far, we've been ahead of schedule there. So we -- miners ready to go to plug in there. We moved 9,500 miners from Ellendale to Garden City just as a way to -- we had the capacity, it was easy to make the move for the miners. And so, it made sense to do that. As Ellendale continues to come back online, we have machines ready to go to plug in to take up those empty slots. So no change in power cost, if that's what you were asking for in regards to power or if that was more related to energization. But essentially, the only site that we're really seeing a challenge at from an energization perspective is just what's left to do at Ellendale. But that's progressing on a weekly basis, as I mentioned, and that will be all back up over the balance of the next coming months.

Well, the subtext of the question, Fred, apologies for not making it clear was, I thought that the 2 sites that came with Generate Capital offered you flexibility and adding capacity, power capacity. I was just wondering how you were thinking about that. And whether or not you thought you might need it this year to reach 50?

No, we don't need to expand capacity at any sites. The capacity that we have that is energizable, if you would. So no need for additional expansion covers us to 50 exahash. So anything at the Generate sites that would be an increase in site capacity would be additive and think of that as more 2025 growth target.

One more if you let me, Fred. Could you add a little color please to your energy harvesting theme and your heat reuse theme? You mentioned a couple of things on calls, but not a ton of detail.

Yes. So, again, energy harvesting is taking essentially wasted or stranded energy. And that can come in multiple forms, right? It can come in the form of methane coming off of landfills and we've talked about the pilots that we have running in Utah in that regard. You can also capture methane flare gas from oilfields, for example, and there is methane coming out of a variety of agricultural processes. Obviously, dairy farming generates a lot of manure. You can take a lot of these things such as bio waste. Think of food processing plant, essentially, the waste that comes out of that, the stuff that comes out of ethanol, methanol manufacturing, which is all agricultural product base. You can take those base products and, through anaerobic digesters, generate electricity with them. You then use Bitcoin miners to consume that electricity. And then the heat generated by the miners can be fed back into the industrial process. So in the case of ethanol and methanol manufacturing, you need to pre-heat the biomass that you're using to make ethanol, alcohol, for example, manufacturing, spirits, beer, et cetera. You have to do similar things for the fermentation mass. And in the case of agriculture, you'll find there's a lot of bio waste that can be used and then you can generate heat and feed that back into things like greenhouses or shrimp farms, et cetera. So heat reuse is very important. You also have the simple use case of just heating buildings. You can take electricity that normally is going to power a boiler and you can replace that boiler with our 2PIC technology with miners in it and you can generate hot water just the same. Same amount of energy generates, same type of water at similar cost. And so, if…

Our next question comes from the line of John Todaro with Needham & Company.

I guess 2, if you could just kind of remind us through the cadence of getting 50 exahash by the end of '24? And then second question, do you anticipate G&A to kind of stay mostly flat from here? It sounded like there was still some hires you needed to do. But just wondering if we could drill into that a bit more.

So I'll let Salman answer the G&A question. But relative to the cadence of deployment, as I said before, capacity at the sites starts freeing up really at the end of this quarter and the early part of Q3. We have a large number of miners inbound to fill that capacity. And then the balance of capacity growth will happen over the latter part of Q3 and into Q4 as we continue to get Ellendale back online fully and fill out the little nooks and crannies of capacity that exist out there. We're at the same time also upgrading some of the sites that we acquired from air to immersion and doing things which will increase efficiencies and increase uptime. And this is all before we start talking about the benefits of 2PIC immersion and what it can do from an overclock perspective with minimal impacts to efficiency. So I think longer term, these types of technologies are going to become really important because if you can overclock S21s to the tune of 50% or 60% and you can do it with a de minimis loss of efficiency, then you can save a lot of CapEx, plus have the flexibility to overclock, underclock all depending on energy cost and Bitcoin price. It gives you a lot more flexibility and potentially saves a lot of capital. So we're very excited about kind of the impact of that on the longer term, especially as we grow well beyond 50 exahash at the end of this year.

On the G&A, if you think about it from a cash G&A standpoint, excluding stock compensation, which is a non-cash item, we expect it to be flattish on a quarter-over-quarter basis going forward from here. It's a quick reminder that, on a unit basis, we continue to improve from here as we deploy more exahash in the company and spread that across the larger exahash.

Our next question comes from the line of Joe Flynn with Compass Point Research.

I had a question. I was wondering what the progress is on Auradine. And also, Fred, when you talk about like having the latest and greatest S21, are you referring to 17.5 joules per terahash or the most recent Pro version where it's 15 joules per terahash?

Yes. So on Auradine, I'm not going to comment specifically on all the company's achievements because I'll let the management team do that. But what I will say is, we are in the process of -- we'll be deploying Auradine in our 2-phase immersion tanks. We'll have essentially the ability to put almost 800 kilowatts of mining capacity in a 8-foot container, which is a huge power density factor and you can essentially take a -- what is today a -- if you look at our UAE sites, we have essentially each 40-foot container is about 1 megawatt. Well, we can retrofit that container to dual phase immersion and end up with 3.2 megawatts in that same form factor at fairly low cost for the upgrade. Same miners, just more of them and the ability to consume more power, more power is available. So we believe that, that's going to be a big differentiator going forward. The advantage with Auradine's miners for us is, a lot of the intelligence that's built into them regarding fleet management. And like any fabless semiconductor company, Auradine is building wafer capacity with their vendors and continue to grow supply. And we'll continue to buy product from them as the supply chain increases. In regards to the Bitmain question, yes, there is a mix of Pros and the 17 joules per terahash. The immersion version of the 21 does not come in a Pro version. But the immersion version operates more efficiently than the air version. So kind of mitigates the 2. Hopefully that answers your question.

Thank you. There are no further questions. I'm going to turn the call back over to Rob Samuels for closing remarks.

Thank you all for your time today. If you have any questions that were not answered during today's call, please feel free to contact our Investor Relations team at ir@mara.com, and thank you. Enjoy the rest of your day.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.