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00:00:04.799Hey guys, welcome or welcome back to the channel McNally Money, the official home of power analysis.
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00:00:07.839A bit of relief today in the markets to close out the week.
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00:00:11.119We've got an absolutely stacked agenda on the podcast.
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00:00:14.400Before we get into it, take a second, smash a like button, guys.
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00:00:16.160Big help to myself and the channel.
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00:00:17.839Anthony absolutely loves it.
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00:00:21.359If you're not already subscribed, McNally Money, feel free to join.
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00:00:27.120And let us know in the comment section below how the portfolio is looking today and your current top pick in the space.
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00:00:30.239With that being said, let's get into today's episode.
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00:00:40.560All right, guys, away we go.
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00:00:42.159Final podcast of the week.
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00:00:44.000Markets pulling back a little bit.
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00:00:45.679Started off fairly strong.
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00:00:51.439We've got a stacked agenda today in terms of price targets, headlines, and industry news.
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00:00:53.200Typical fashion, Anthony.
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00:00:55.840Bitcoin, pretty eventful start to the day.
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00:00:58.399Uh pulled back a little bit now as well.
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00:01:01.520Yeah, we had a nice rally up to 87,000.
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00:01:11.519And as soon as it that top target line there, it's now pulled back to 85,500 and remaining at that point as the podcast goes on.
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00:01:16.000So hopefully we can end the the the week uh positively.
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00:01:21.120Um few more hours of trading, but uh yeah, disappointing that we've we've pulled back there.
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00:01:26.560I was hoping um for a for for a nice uh run-up before uh before before we close today.
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00:01:29.200Yeah, big blockbuster Friday would be nice.
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00:01:33.280We know it's option expiration day, so we'll stay tuned there.
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00:01:40.079In terms of Bitcoin, uh, on a larger picture here, Anthony, the ETFs, we haven't covered the inflows for a while.
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00:01:46.079We've got an annual view here, year to date, and a chart talking about some of the more recent inflows.
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00:01:50.159Again, looking fairly supportive of the move we've seen with Bitcoin.
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00:01:55.680Yeah, this has been a mixed bag year actually, in terms of you look at the inflows dominating the market there.
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00:02:02.879You can see that over the last uh month or so there, as we've seen Bitcoin price rally to over 80,000.
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00:02:07.359But if you look at June and July, it was pretty much outflows all the way through there.
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00:02:15.039Some significant um outflows, actually, the worst sequence of uh cumulative outflows um on record.
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00:02:19.280Um, so uh you can see those two blue lines um really dropping there.
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00:02:23.759A lot of bitcoin sold, but uh the last couple of months we've seen the reverse of that.
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00:02:29.120And although there have been a few days where we've had outflows, the majority of our inflows there.
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00:02:41.599If you look at the uh the number supporting the first chart there, um you can see uh over the last uh three months there we're sort of over six billion dollars of inflows for July, August, and September.
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00:02:49.439But if you look at the year-to-date position, we're only 0.9 billion up there, but still positive, still 0.9 billion of inflows into the ETFs.
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00:02:58.000Uh, we know that um Strategy have been continuing to to buy when they can, and certainly uh Strive have done the same as well.
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00:03:15.199Um, so you know some of the uh treasury companies have been buying, but this is really about the ETFs here, and uh they they sort of when they go out buying, they buy in in bulk, and uh also at the same time when investors want to sell their ETFs, then the Bitcoin associated with that has to be uh released as well.
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00:03:17.439So um this is the this is the issue.
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00:03:31.520You know, you you've got a door here that's um open and closes on a regular basis, and so let's um let's hope that we're at the start of a uh an info for the rest of the year and um and when we get some momentum going through to 2027.
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00:03:32.800Yeah, no doubt.
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00:03:43.199And speaking of treasury companies, we know Bit Digital, a strategic asset company, so a little different than a dat on the Ethereum front, they're up over 2700 today.
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00:03:50.400And Bit Digital CEO Sam Tabar, again, token 49, going to be taking the stage on a couple panels.
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00:03:53.520Yeah, he's going to Singapore uh next week.
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00:03:55.439Um, I'm gonna be in the area as well.
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00:04:05.280I'm gonna be in Kuala Lumpur and maybe be able to get down to the same conference there, hoping to uh try and get down for the 7th and 8th um of October.
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00:04:15.120Um, but he's on two panels, next generation of Ethereum on the 7th, and then on a further panel on the 8th, uh Ethereum's next act from asset to economy.
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00:04:17.519So a couple of interesting topics there.
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00:04:20.720I'm sure that Sam will put his case across on both of those.
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00:04:28.639I've listened to Sam many conferences, and um he's uh he he certainly uh does have a personality to get his points across.
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00:04:32.480Um it'd be interesting to hopefully catch up with him at the conference itself.
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00:04:35.199Yeah, always a favorite guest to have on the channel.
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00:04:37.439Now we move into the stocks here today.
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00:04:48.399Again, as I mentioned, they were probably twice this uh level in terms of percentage this morning, but we've seen that gradual pullback, very similar to what we're seeing on Bitcoin, Anthony.
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00:04:53.600Still sitting fairly green for the day, but as you mentioned, a few hours left in trading.
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00:04:57.519Yeah, this looks really green at the uh at the start of trading there.
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00:04:59.680It has but looks still looks green now predominantly.
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00:05:03.279Only move is marginally in the red and and you know 0.3.5%.
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00:05:10.240They've had a uh a great few days of trading compared to some of the other peer companies on this list.
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00:05:16.480But uh, yeah, some of these ABTC was up um up about nine percent in early trading.
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00:05:20.240Um, it's pulled back now um back to three percent there.
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00:05:22.079But BitDear having a good day.
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00:05:28.720Um, BitDeer probably got the largest hash rate of any public miner out there, it's in three figures, it's over a hundred exa hash.
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00:05:33.120Uh, that's probably around about uh 12% of the global market.
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00:05:37.600If you look at the global hash rate at the moment, keel having a good day, terrorolf having a good day as well.
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00:05:44.240But keel and uh TerraWolf were a seven and eight percent up respectively, uh not too many hours ago.
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00:05:48.319You can see now five and four percent, so a little bit of pullback there.
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00:05:52.000Uh still a few more hours of trading, Bitcoin holding ground.
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00:05:59.439Um, we haven't had anything sort of like big news out in terms of HPC to warrant any major changes.
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00:06:03.040Um, but um, you know, we'll take a green day.
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00:06:08.000We're still about uh, I think on average about six, seven percent down on the week.
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00:06:09.600So this is Friday.
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00:06:19.519Trading will end um, you know, uh, or after after hours tonight, and we have a couple of days before we reopen on Monday, um, but still down on the week, about six, seven percent.
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00:06:21.600I checked just before the podcast started.
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00:06:26.319Yeah, and as a result, we're seeing that first column of the heat map look pretty good today.
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00:06:30.160But as you mentioned, Anthony, we're making up some ground over the past week.
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00:06:32.560Yeah, it's bringing down the five-day change.
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00:06:37.519Well, remember, I said to you, any small changes on that on the on the daily rate will bring the five day down.
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00:06:47.759Um, at the moment, only Riot and Saloon are in double digits, and yet when we did the heat map yesterday, I think there was eight or nine companies at double digits in terms of down on the five day.
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00:06:55.920So a bit of a turnaround today, but that would have been a lot better as I earlier indicated if we'd have done this podcast at market open.
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00:07:00.399The fact we've waited a little bit um means that we've seen the share prices pull back.
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00:07:11.120The one month, the year today, and the one year still in positive territory, but the one year now only four percent, and literally only six companies in the green there.
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00:07:16.160Remember, that was over 200% up not too many months ago, back in June.
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00:07:29.680Um, so uh big changes all around there, but uh as I say, we'll hope for the that there's some more positivity because all what we're hearing at the moment is demand is still out there for HPC, bitcoin prices running.
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00:07:35.759So, both of those strategies should be giving um these companies um a little bit of momentum there.
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00:07:46.639We're not quite seeing it, we've seen a big pullback since June, and although we're having a an odd day where we're we're playing catch up, we need more more of these days just to even beat the weekly downs at the moment.
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00:07:55.360So, as I say, six-seven percent more to catch up um to where we're at the week, and probably twenty-five to thirty percent to catch up where we're in June.
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00:08:00.720So um uh big change to uh to to try and work through.
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00:08:01.920Yeah, exactly.
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00:08:05.360A big challenge ahead of us, but we're here for the long term, Anthony.
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00:08:12.879Now we've got a host of AI headlines today, really covering everything from actual construction, execution.
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00:08:15.519We've got CEO comments, price targets.
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00:08:18.639We're gonna start off with facilities here, an update.
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00:08:19.600We've got a few.
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00:08:21.360The first is applied digital.
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00:08:24.319So we've talked a lot about execution this year.
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00:08:32.639They've obviously got this massive contract, 400 megawatts, and they're continuing to deliver uh on time to their clients as well.
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00:08:34.240Yeah, absolutely.
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00:08:44.240And um they've just uh announced that 250 megawatts of their operational capacity has now been um executed at their Polaris Forge 1.
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00:08:53.759Three new 25 megawatt datals complete buildings to full 150 megawatts, bringing the total critical IT load at the campus to 250 megawatts.
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00:09:13.759Um, Polaris Forge 1 is a fully contracted AI factory at campus, meaning that 250 megawatts is now live against the full 400 megawatts already spoken for, and follows uh the initial 100 megawatt building and building's two first 75 megawatt phase, a repeatable delivery cadence.
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00:09:16.720Applied is now scaling across the whole platform.
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00:09:26.240Um, applied frames this as a continuation of long-standing local relationships rather than a new market entity at their Ellen site in North Dakota.
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00:09:29.200And the CEO Wes Cummins framing is actually worth noting.
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00:09:35.919Securing the power is only the starting point with 250 of the 400 now operational and already fully leased.
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00:09:39.840The remaining build out is just execution risk, not a demand question.
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00:09:44.159Yeah, and that really brings us into the next company here, Galaxy.
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00:09:50.159In terms of execution delivery, this is on a scale that we haven't seen much of so far.
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00:09:54.399Uh, they're making huge progress at their Helios data center campus.
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00:10:00.480We talked about the batch zero ERCOT ruling uh a little bit earlier in the month on that one or last month.
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00:10:07.840But really, Anthony, if we look at their slides here, we're seeing those same demand level numbers we talked about yesterday.
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00:10:12.480Uh appears vacancy rates are just non-existent in Texas.
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00:10:13.840Yeah, absolutely.
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00:10:20.399This is potentially probably the largest site that we'll see um in in North America there.
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00:10:24.399The total potential power at the site is 3.6 gigawatts.
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00:10:42.320They've got approved power for just shy of half of that, 1630 megawatts, and they've got their first big lease at the site for 800 megawatts of gross lease capacity, about 533 compute um uh megawatts uh with core weave.
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00:10:52.159And if you look at that uh that uh uh uh uh image there of the site, they're 2200 acres um for that campus itself.
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00:11:27.519Now they do have um obviously um you know a period now to continue delivering the remaining 400 megawatts of compute at that site there at the same time uh re reapplying for approval for the remaining uh two gigawatts of power at the site, they've got literally 1.6 of it approved there, but they can continue to build out that 1.6 uh gigawatts and at the same time um get all their other approvals and permits in place uh for that particular extension there.
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00:11:40.080And when that comes online, there we know uh without any doubt at all, um, in terms of the vacancy markets for GPUs and and compute IT, they are literally zero at the moment.
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00:11:48.399West Texas is zero, Austin is 0.1%, and if you go uh further down this there, you get to Las Vegas at 0.35%.
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00:12:04.240So you're talking 99.789%, and in West Texas, 100% um uh you know, in terms of uh you know fully occup full occupancy uh for for GPU power.
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00:12:06.879This just goes in line with that potential growth there.
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00:12:21.120In 2025, uh you know, 82 gigawatts um is required, and we know by 2030 Galaxy are indicating 219 gigawatts of power required, that's 167% growth.
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00:12:29.279Um, this is just you know going to be a market that is just continuing to expand over these next four or five years significantly.
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00:12:34.639All the major players are investing hundreds of billions of dollars.
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00:12:50.559The big names, the Metas, the Googles, the Microsoft's, Tesla's, SpaceX, you know, they're going to drive hundreds and hundreds of billions per year to do this, and therefore, you know, the capital expenditure that's going into the market.
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00:13:08.000We talked about this revolution uh of sort of uh data centers, which is you know uh three times the size of what the internet was and more than you know, uh 50% more than what the railway um revolution was back in the uh 19th century.
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00:13:12.320So you can see you know, we're onto something uh extremely big here.
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00:13:24.480This will bring masses of jobs as well to the market in terms of those construction, electricians, and a number of other um uh professional um uh professionals required to deliver this type of expertise.
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00:13:27.279It's not going to stop now, it's gonna continue there.
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00:13:36.240Um, and hopefully um some of the companies that we talk about on a regular basis will be uh lining up the rest of their power in the not too distant future.
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00:13:38.159Yeah, I think it's just a matter of time.
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00:13:47.840And the Helios site, just part of the portfolio at Galaxy, they've obviously got a big uh agenda plan for 2030, upwards of 5.7 gigawatts.
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00:13:55.519So in the same realm as Iron, uh north of five gigawatts, Merlin, Helios, Saline, uh, Caspian.
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00:13:57.519The list goes on and on there, Anthony.
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00:14:05.600Now, the next one we wanted to talk about, another big company that's already been delivering capacity at scale, Core Scientific.
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00:14:09.679We've looked at this PICOS development a few times on the channel recently.
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00:14:15.120This is an awesome time-lapse video showing the construction of the site in full.
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00:14:18.080We'll play the video as we get your thoughts here, Anthony.
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00:14:24.559But this is a company that's well ahead of most of the companies we talk about on a daily basis.
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00:14:25.679Yeah, absolutely.
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00:14:35.039In terms of those regular companies we discuss on the channel there, they've got the largest amounts of co-location um uh contracts signed over 1.1 gigawatts.
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00:14:38.159590 megawatts of that is with Core Weave.
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00:14:42.159The Picos uh facility now has now been handed over as well.
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00:14:49.519They're due to complete that whole 590 by the end of this year, or if not by the end of this year, very, very early into 2027.
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00:14:59.039And uh it'll be interesting now the next couple of quarters as we start seeing their revenues uh switch um increasingly to HPC.
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00:15:12.320Yes, they've got a small amount of mining hash rate at the moment until they physically switch the power on for HPC, uh making most use of that sort of contribution uh to overheads.
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00:15:31.919Uh but once the the sites are over, there'll be no more mining, and then it's a case of focus on the the next uh contract being delivered, which is the 530 megawatts with um AMD and uh with another potential 1.5 gigawatts of further expansion coming along too.
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00:15:36.320Yeah, now the final piece on the construction front here out from IRIN.
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00:15:41.919So Gilson posted on LinkedIn, he's the director at IRIN of AI infrastructure.
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00:15:46.879They're now hiring a vice president of construction in the Fort Worth, Texas area.
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00:15:49.919So obviously, their foot is on the gas as well.
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00:15:53.600We managed to grab a few photos of their other sites here, Anthony.
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00:15:58.639It looks like the retrofits, the build-out continues across the portfolio.
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00:16:04.480Yeah, we were we were actually still in this location um in November last year, and it looked nothing like this.
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00:16:08.879There was an empty shell there, some of the steel structure was up there, but nothing else.
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00:16:13.600And you can see now the change of that horizon one already been handed over.
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00:16:22.399Um, I mean I'm I'm hearing the scaffoldings come down from Horizon 2, so you can obviously see the potential that's going to be handed over in the not too distant future.
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00:16:28.639They are on track to deliver all four buildings by the end of this year, so we haven't got a lot of time left before the end of the year.
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00:16:41.360We're into sort of like uh the last sort of 90 days uh now, and so you know, with with horizon two getting ready, you're going to be seeing these buildings handed over literally on a six-weekly basis.
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00:16:47.919Um, and after commissioning and and all the checks and all that, revenues will start coming through.
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00:17:04.160So you'll hopefully in the in the Q4 earnings update there, we'll start seeing some of these uh revenues come through for Horizon 1, maybe Horizon 2, and then when we get to the first quarters of 2027, we'll start seeing the 200 megawatts in total there.
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00:17:12.240And by that time, I'm hoping a little bit more of that of their uh five gigawatts of available power as uh is contracted out as well.
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00:17:26.960Remember, they've already energized 300 megawatts at um at sweetwater, and at the same time now they are also converting uh some of the groundwork for liquid cooling at the McKenzie.
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00:17:29.279Uh so plenty of activity going on there.
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00:17:40.240There's a nice image there that's been provided uh by Ace Kicker uh taken from a drone there, but uh it looks like the supply and return branch lines for liquid cooling systems.
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00:17:49.839Uh, if you look closely at the map, there um are going through the wall and buried uh bump lines running parallel to the data hull for future liquid cooling loops.
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00:17:55.440So um again, thanks to the uh to the iron uh posse for uh getting this information out there.
00:17:55.519 -->
00:18:00.079We thought we'd share it on the podcast and uh make sure everyone's aware of what's going on.
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00:18:07.440Iron's obviously uh a big name in the space, and uh, you know, we like it as one of the companies we talk about on a daily basis.
00:18:07.519 -->
00:18:11.759So um, yeah, good good news for iron retail, good news for iron.
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00:18:15.519Yeah, those iron retail fans sure have a keen eye, Anthony.
00:18:15.599 -->
00:18:18.400They can tell anytime a spoon's moved on these sites.
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00:18:23.039Uh, we talked about Yoda in relation to iron, I think, yesterday on the podcast.
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00:18:26.400DMG down there as well, really making a statement.
00:18:26.480 -->
00:18:37.759They listed off some of the companies they've met with, some industry heavyweights, Bloom Energy, Schneider Electric, again, all in pursuit of getting that LOI at Christina Lake converted to a deal.
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00:18:49.039Yeah, and and hearing from Sheldon and Steve, they've had a few productive days um in Las Vegas, meeting with companies helping solve the biggest challenges facing AI infrastructure today.
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00:18:55.599That's power, cooling, electrical distribution, uh, resiliency, and the speed to deployment.
00:18:55.759 -->
00:19:03.759And as DMG advances its AI Dent Center Development, Christine Lake Roman, they've got that LOI for 50 megawatts there with an unnamed uh customer.
00:19:03.920 -->
00:19:14.160They've had great discussions with teams from uh Bhee, Genbacker, Caterpillar, Mitsubishi, Schneider, Bloom, you mentioned already, Fluke, Maddox, and many others.
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00:19:29.440Um, it sounds like it was a really um positive um conference to be at, and uh, we look forward to um hearing more about these discussions as they turn them into infrastructure on the ground in their home country of Canada.
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00:19:32.160Yeah, and we love hearing from the team at DMG.
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00:19:34.079So thanks for the update on Yada.
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00:19:41.599Uh Paul Prager, another CEO that we love hearing from, he's been on the road doing investor meetings the last few weeks, apparently.
00:19:41.839 -->
00:19:49.599Come up with a list of about 10 items, I think, here that are recurring topics, questions, points of interest during these discussions.
00:19:49.759 -->
00:19:54.960So I'll scroll through the full list here, Anthony, but any that caught your eye specifically?
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00:20:05.039Yeah, I mean, we we we've talked about it many times, and actually um Patrick Fleury was the one that really brought this to everyone's attention when he said it's everyone's going to get contracts out there.
00:20:05.200 -->
00:20:07.359It's now a case of who can execute.
00:20:07.519 -->
00:20:11.359So Paul is highlighting execution, execution, execution.
00:20:11.440 -->
00:20:14.319That's the the key focus for TerraWolf.
00:20:14.480 -->
00:20:19.680Now, C B4 remains on track for Q4, C B5 for Q1 2027.
00:20:20.160 -->
00:20:21.920The revenue ramp is coming.
00:20:22.000 -->
00:20:29.920Once C B5 is delivered and generating revenue, that's more than half of the contract in megawatts will be producing uh revenue.
00:20:30.079 -->
00:20:34.960Think about where they were a year ago and think about where they are actually heading.
00:20:35.119 -->
00:20:46.960Um, in terms of Hawesville, the primary path remains investment grade financing, supported by a silicon provider, and they're making great progress and activity targets in the credit markets for Q4.
00:20:47.279 -->
00:20:57.279Now, there's a lot of interest in Muskie and a great location, it's a business-friendly straight, strong utility partner with AEP, and they believe they've got something special there.
00:20:57.440 -->
00:21:02.079The level of customer engagement reinforces uh the actual conviction.
00:21:02.240 -->
00:21:09.359And if you're thinking bigger at Muskie, uh they're working on a full expansion, accelerating access to additional power.
00:21:09.599 -->
00:21:14.000So the focus isn't just on the first 500 megawatts or the next 500 megawatts.
00:21:14.240 -->
00:21:16.319Stay tuned next week.
00:21:16.480 -->
00:21:21.920Probably another big announcement, it's on the full potential of this Pacific campus.
00:21:22.240 -->
00:21:31.599Um, in terms of Brownfield, Greenfield, Utility Partnerships, New Market, the pipeline is very, very robust, and uh power alone is just not enough.
00:21:31.759 -->
00:21:50.640The real work is turning it into valuable, financeable infrastructure, and you know, every time they've announced a deal, uh they've been extremely disciplined, they've announced a deal, and within about a month of the deal being announced, Patrick has come back to the um you know to the table and said we've now got the financing in place to deliver that deal.
00:21:50.799 -->
00:21:59.759Um, so you know they're at they're not just executing on delivery from an operational standpoint, they're executing on delivery from a financial standpoint to make sure.
00:22:00.240 -->
00:22:10.400That all the ducts are in a row, and um they're all sort of like um you know making sure everything's covered in terms of funding that CapEx and delivering that operational requirement.
00:22:10.559 -->
00:22:22.960Now, Paul's highlighted uh one of the further things there, he's he talks about the three million share collar position, which has been used to fund taxes rather than selling those shares outright at today's price.
00:22:23.039 -->
00:22:34.319Uh he's borrowed against three million shares, and that in um in and if you look at what he's currently owns, he's he's got invested awards, he holds more than 50 million shares, warrants, and awards.
00:22:34.480 -->
00:22:36.640He's the largest individual shareholder.
00:22:36.720 -->
00:22:46.799And if you add up all the um inner circle in Terrawolf, the management team there, they've got something like 30% of the whole company, so they're very much vested in what they're building.
00:22:46.960 -->
00:23:01.680And I think Paul's final thought on that was you know, period, you know, um he doesn't want to sell his shares at the moment, he thinks they're still going to go higher, and he'll take the benefit of those shares going higher rather than having to sell the shares now to pay the significant tax balances.
00:23:01.839 -->
00:23:05.839He's not the only one in the company to have done that recently.
00:23:06.000 -->
00:23:10.240We had Patrick Fleury on, he paid his tax bill with his own cash.
00:23:10.400 -->
00:23:16.720Now that is extremely unusual, and this and the CTO and the COO have followed suit as well.
00:23:16.880 -->
00:23:25.839They've paid their taxes on vesting shares out of pocket rather than surrender their shares at the current price, what is it,$15,$16 a day.
00:23:25.920 -->
00:23:33.119Uh, not too many months ago it was$30, and some of the um some of the price targets we're seeing at the moment is in excess of$30.
00:23:33.759 -->
00:23:39.599And Patrick, uh, you know, very transparent, he expects the share price to go um, you know, north of$30.
00:23:40.079 -->
00:23:50.880This is why he went out and literally spoke to his wife, got approval, and paid the bill, which was, you know, in no short short form a a major amount of money to find.
00:23:51.039 -->
00:23:54.240Um, and uh he's done that because he believes in the company.
00:23:54.480 -->
00:23:57.680So uh a lot of updates there from Paul and Terra Wolf.
00:23:57.759 -->
00:24:03.039Um, and good to see that the CEO is prepared to come out and answer questions as he receives them.
00:24:03.279 -->
00:24:04.319Yeah, it definitely is.
00:24:04.480 -->
00:24:09.759Also, some commentary on Morganstown and the community involvement, which is obviously paramount.
00:24:09.920 -->
00:24:13.119We've been talking about that theme a lot on the channel.
00:24:13.200 -->
00:24:29.039Uh, speaking of which, personnel, a big part of these companies, Riot platforms, a big alkalade here for their SVP of AI and hyperscale sales, making it into the women top 100 on the tech capital list for 26.
00:24:29.759 -->
00:24:35.759Yeah, congratulations to uh uh Ray Williams, the senior vice president of AI and hyperscale sales.
00:24:35.920 -->
00:24:37.680She's in that top 100.
00:24:37.759 -->
00:24:44.559Uh, she's obviously very honored to be included with some amazing women friends, mentors, and people to get to know.
00:24:44.640 -->
00:24:54.480So uh a nice little tick in the box there for her, and uh hopefully we'll get to uh meet up sometime at one of our uh uh conferences or when we go and visit the site.
00:24:54.559 -->
00:25:02.720Remember, Bright, we've been to the Corsicana site not once, but a couple of times in the last couple of years, um, maybe make it our hat trick uh next year, maybe.
00:25:03.039 -->
00:25:05.440Still got my hard hat from Riot Platform.
00:25:05.519 -->
00:25:06.880So I'm ready to go, Anthony.
00:25:07.039 -->
00:25:12.400Hey, you just mentioned Paul Prager, uh, that three million share caller strategy.
00:25:12.559 -->
00:25:15.119We've got a very similar one out from HUD 8.
00:25:15.200 -->
00:25:24.319Again, the CEO Asher Januute taking to Twitter to basically explain Mike Ho's move here, uh, but a very similar update from HUD 8.
00:25:24.960 -->
00:25:38.400Yeah, Michael Ho's, a director and chief strategy officer of HUT 8, and he's reported um entering a financial contract involving 1.5 million of his shares um in HUT 8.
00:25:38.480 -->
00:25:45.839Now, what he's done is he's received about 58.3 million up front based on uh$40 per share.
00:25:46.079 -->
00:26:00.480The contract is scheduled to mature in May uh 2027, and at that time he's either going to deliver some or all of the shares or potentially pay cash depending on HUT 8 stock price during the agreed calculation period.
00:26:00.559 -->
00:26:13.039Now, with this, he has got downside protection:$40 a share, call um above$220, a wide collar range achieved specifically by collateralizing more shares to borrow less per share.
00:26:13.200 -->
00:26:18.640Now, this the a smaller collateral pool would have forced a higher put and lower call.
00:26:18.799 -->
00:26:25.039The larger pool lets the call sit further out of the money while still protecting the downside.
00:26:25.359 -->
00:26:32.720So um, you know, he's obviously again, like Paul and the team at Terrawolf, believing Hut 88 shares have got a long way to go.
00:26:32.880 -->
00:26:41.440Now we've covered some of the recent price targets, you know, heading towards$140 a share, which is significantly higher than the share price is today.
00:26:41.680 -->
00:27:03.359And, you know, one thing about um, you know, when you're a director of a company, or or in in in Michael's case, you know, um, you know, one of the senior members of the team there, he's going to have knowledge of what's coming down the line, um, you know, more than than than we will have in terms of you know when's the next potential contract going to be signed, are they in discussions for more sites, etc.
00:27:03.599 -->
00:27:04.000etc.
00:27:04.400 -->
00:27:08.079Um, one thing he does obviously believe is that share price is going higher.
00:27:08.160 -->
00:27:11.680He doesn't want to sell$58 million a share now to cover the tax.
00:27:12.000 -->
00:27:18.240He wants to sort of like do this financial instrument to protect him and get the cash now to pay that tax.
00:27:18.319 -->
00:27:30.640Well, the taxable has got to be paid, so he's using his shares effectively to borrow against, knowing that if the share price goes up, yes, he then has a choice then to pay it in cash or sell a smaller amount, which is which is a phenomenal uh way of looking at it.
00:27:30.880 -->
00:27:35.680Yeah, it's a good strategy, and I would expect we start to see this more from the companies we cover.
00:27:35.839 -->
00:27:39.759Obviously, a lot of equity tied up by the senior uh C-suite.
00:27:40.079 -->
00:27:42.160Now, you mentioned price targets on HUT.
00:27:42.240 -->
00:27:44.160We've got a few more for you today.
00:27:44.319 -->
00:27:47.279Uh, from Cantor, Core Weave is the first one here.
00:27:47.440 -->
00:27:49.759$176, Anthony.
00:27:50.160 -->
00:28:11.680Yeah, and Core Weave have reported some major progress after its fully connected conference um this week, highlighting production availability of NVIDIA, Vera Ruben, um, NVL72, and early customer at uh early customer cognition, achieving up to 4.8 types higher token throughput.
00:28:11.920 -->
00:28:28.640Now, the more strategic update is Forge, that's the integrated AI train, evaluate, improved platform, bundling weights and biases, OpenPipe and Marimo into tier three enterprise offering, aiming to make CoreWave a one-stop AI deployment platform.
00:28:28.799 -->
00:28:35.680Um, it's also recently launched a Vera CPU for agentic workloads and unveiled a partner ecosystem.
00:28:35.759 -->
00:28:53.519And Cancer, having gone through um all their discussions, have provided an overweight rating uh to the share and a target share price of$176, uh, which is significantly higher than the$90 it's it's current currently um uh at.
00:28:54.000 -->
00:28:55.279You're definitely right about that.
00:28:55.440 -->
00:29:04.960Lots of upside potential at Core Weave BitDeer, another one that caught our attention to here, 135% upside from current share price.
00:29:05.279 -->
00:29:14.880Yeah, and if you look at HC Wayne, right, they've reiterated a buy rating on this particular share and maintain that$25 uh target price change.
00:29:15.119 -->
00:29:23.759Um, share price is higher than the current price on there, so the share price has uh moved a little bit today, but still over a hundred percent of upside there.
00:29:23.920 -->
00:29:53.119Um, they're looking at the fact that you know um recent agreements have doubled at the total contracted AI revenue, and we've been covering that on a monthly basis when they've been announcing it, and their commitments now cover more than 70% of the 21.7 megawatts, the A201 facility in Malaysia, and these commit commitments represent$1.7 billion of expected five-year revenue and$340 million of annualized run rate.
00:29:53.279 -->
00:29:58.880Now, the Malaysia GPU ramp is becoming too large for investors to actually overlook now.
00:29:58.960 -->
00:30:05.200And we haven't even started on the sites that they've got in the US, they've got some enormous sites across the US.
00:30:05.359 -->
00:30:18.640They've recently signed um that 112 megawatt deal in Tidal in Norway, but some of the big sites, the 500 megawatt sites and bigger than that in the US, haven't announced any contracts yet.
00:30:18.799 -->
00:30:42.400And um, I think now, having proven what they can do in Malaysia in terms of running uh CSP contracts there, that puts them in a pretty good um you know, uh test and prove uh facilities if they're going to you know make that into an even larger um and expanded size, uh, like some of the sites they've got available coming up in the next six to twelve months in the US.
00:30:42.640 -->
00:30:47.039Well, and keep in mind they've got co-location, CSP, which you just talked about.
00:30:47.119 -->
00:30:57.519They're also the largest Bitcoin mining company in the world, and have one of the most advanced uh Bitcoin mining ASIC chips in the world, sub 10 joules per terahash.
00:30:57.599 -->
00:31:01.039So we've talked about BitDeer really firing on all cylinders.
00:31:01.119 -->
00:31:03.359It appears Wall Street's picking up on that.
00:31:03.519 -->
00:31:06.480Uh, the last one of the day for you, Mara here, Anthony.
00:31:06.640 -->
00:31:18.799This one's a little lower,$10 maintain, but again, citing many of the same things we've talked about, the Starwood partnership, the long ridge acquisition, and really waiting for that next catalyst.
00:31:19.119 -->
00:31:29.359Yeah, and that you know, the Clear Streets who provided this um, you know, reiteration of a hold rating and a$10 price target, which is actually lower than today's price.
00:31:29.519 -->
00:31:36.799There, um, you know, they're looking at Mara as a power owner first with about 1.4 gigawatts operating today.
00:31:36.960 -->
00:31:40.640They've got over 70 um exash in terms of mining.
00:31:40.799 -->
00:31:47.039Their total current capacity is 1.9 gigawatts with up to 4.8 gigawatts pending approvals.
00:31:47.200 -->
00:31:50.000The bill costs are going to be around 12 million per megawatt.
00:31:50.079 -->
00:32:02.400We've highlighted that number many times on the podcast for many of the uh companies moving from mining to HPC, and Core Scientific recently came out and reiterated their costs are now about 12 million.
00:32:02.720 -->
00:32:11.359And the great thing about MARA is they've got you know over 35,000 Bitcoin in the balance sheet, and they may use them is to fund some of the HPC development.
00:32:11.599 -->
00:32:42.799Now, the key issue is that the ERCOT batch study process is pushing some Texas analysis into uh 2028, and I know that Mara didn't get all the approvals they were expecting on some of their sites, um, and really the I suppose the big the big thing is at the moment is you know HPC still needs that um that first signed lease, and I'm sure when they do sign the first uh lease there, they've got some big sites uh that they can transform into HPC.
00:32:43.119 -->
00:32:49.119Um that will give the the share price uh the much needed boost um it probably needs and deserves at the moment.
00:32:49.359 -->
00:32:58.720Yeah, and keep in mind the big hottle with Mara, obviously, the Bitcoin mining as Bitcoin price increases bodes very well for this company alongside BitDear.
00:32:58.880 -->
00:33:01.519Now, we've talked about the website over the week here.
00:33:01.680 -->
00:33:03.039Newsletter went out today.
00:33:03.200 -->
00:33:04.960We've got Galaxy featured.
00:33:05.039 -->
00:33:10.880We've now updated or added the new AI data points for each and every one of the companies we cover.
00:33:11.039 -->
00:33:12.960So make sure you check it out over the weekend.
00:33:13.039 -->
00:33:14.160Let us know your thoughts.
00:33:14.400 -->
00:33:17.920Some great info points or data available on the site.
00:33:18.160 -->
00:33:20.160A lot of headlines today, Anthony.
00:33:20.240 -->
00:33:22.400Not the best week overall in the markets.
00:33:22.640 -->
00:33:26.319That being said, we'll be back here on Monday and do it all again.
