Massive Bitcoin Miner Predicts Big Bull Market!

Massive Bitcoin Miner Predicts Big Bull Market!

more institutional investors are looking
at Bitcoin miners because of the ETF
that’s a trend that we’ve seen really
since starting in December where more
institutional investors recognize the
ETF was coming and we’re trying to find
other ways to play the ETF launch you
know Bitcoin miners represent a
leveraged way to play on bitcoin because
you’re investing in a Bitcoin minor in
order to get a multiple on the US
dollars that you’re investing in a minor
versus just buying Bitcoin and so that’s
really one catalst is I think
institutional investors actually could
present kind of the next Bull cycle for
Bitcoin miners whereas retail is
generally driven that in the
[Music]
past all right guys bang bang I’ve got
Adam here with me Adam I thought a great
place to start this conversation is the
Bitcoin miners obviously like when
bitcoin’s price goes up we’ve seen
Bitcoin go very high it hit new all-time
high but it happened before the having
and the Bitcoin having I think a lot of
people question is this good or bad for
the minor so how do you think about
these two kind of inputs into you know
the next C six month or so we have a
high bitcoin price before the having and
then we have the having coming and so
how are you guys thinking about your
business today yeah I think one of the
big questions is is the ETF the the
mechanism for Bitcoin to go even more uh
parabolic posst having in a way where
it’s allowing more institutional
investors more retail investors access
to the market if that’s the case then we
might see a much different Bull Run than
we’ve even seen in the past where we
actually see it go higher than we
expected but the Bitcoin runup prior to
the having is actually creating a very
interesting situation post having where
a lot of the machines on the network
today are still going to be profitable
post having that’s much different than
2020 it’s much different than 2016 and
so as we look forward post having you
know we’re looking at a POS we’re
looking at a point where a lot of miners
are going to be marginally profitable
and they’re going to stay online for
kind of three to six months so I think
we’re going to see a much more drawn out
process and instead of seeing what we
saw in 2022 where we saw a much more
sped up process in terms of crypto
mining or Bitcoin mining companies and
and having failures you know that’s
going to take a little bit longer and we
might not actually see it until
2025 and are there things that would
affect how you view this whether it is
regulatory like kind of external shock
uh could there be um other ETFs that are
approved that like draw institutional
attention away does the ETF open up the
floodgates for institutional Capital uh
to kind of plow into Mining and so you
have more competition like how are you
just thinking about like other things
that could happen in the industry
outside of just this having moment yeah
I think right now really what we’re
seeing is just the fact that more
institutional investors are looking at
Bitcoin miners because of the ETF that’s
a trend that we’ve seen really since
starting in December where more
institutional investors recognized the
ETF was coming and we’re trying to find
other ways to play the ETF launch you
know Bitcoin miners represent a
leveraged way to play on bitcoin because
you’re investing in a Bitcoin minor in
order to get a a multiple on the US
dollars that you’re investing in a minor
versus just buying Bitcoin and so that’s
really one catalyst is I think
institutional investors actually could
present kind of the next Bull cycle for
Bitcoin miners whereas retail has
generally driven that in the past and
the only institutional leadership you
see really amongst Bitcoin miners today
is mostly passive funds I think you’re
going to see a lot more large active
funds taking positions especially as
these institutions get a lot smarter on
our economics really for the first time
those are the questions we’re getting
from institutional investors explain
your economics explain your power costs
explain your minor Fleet explain your
facilities explain your advantage we
never heard that before how does the
evaluation change in conversations as
they’re having it with you like if they
know where your wallets are they should
be able to see how many Bitcoin that
you’re actually mining uh if they know
how you’re treating that if you’re
selling it all if you’re keeping it all
um do they have like more insight into
what the revenue in a quarter is going
to be for a Bitcoin minor that maybe
they would say you know in a Facebook or
Amazon or or anywhere else well we’re
incredibly transparent on this point so
we actually post our daily bitcoin’s
mind every single day um you know we we
like the fact that people can understand
how our business performing and they can
judge us in real time uh they can also
see the effects of weather events and
when we have to curtail and so all of
those factors I think are really good
for institutional investors who are
seeking greater transparency you know
initially this was driven towards giving
the masses you know access to more
information information about the
company but now it’s institutional
investors that are saying yeah if you’re
not doing that it’s a problem because we
want to know how you’re doing other
companies have similar uh type I would
say information out in the market
whether because they’re running their
own pool but it’s very difficult to know
what some of the other miners are mining
on any given day and as you’re talking
to these institutions what are they
looking to do are are they interested in
investing with debt are they interested
uh at just buying the stock and kind of
equity capital
um and then how do you guys on the flip
side of that think about equity and debt
to help fuel the business yeah so today
um we have about $600 million in debt
and we have a number of different
instruments uh that are all publicly
traded and so we have a a wider range of
institutional conversations and I would
say most minors in this Spas have you
know we have convertible notes we have
term loans um and we have also we have
warrants on the equity side as well as
our common equity and so we have about
six publicly traded instruments and so
institutional investors find that
fascinating they love the fact that they
can be trading different instruments in
a Bitcoin mining company you know as
we’re thinking about going forward I
would say over the long term having
about one turn of debt in this type of
industry is probably the right thing in
a nonvolatile environment because then
if you get into a downside scenario you
know let’s say you’re two turns or two
and a half turns in in a deeply down in
a deep downturn but then in a bull case
you’re you’re at a half turn um I think
there is a place for leverage in in this
industry you know the industry is
historically been funded through Equity
we’ve seen some players take on debt uh
minor equipment debt was the uh was
definitely a uh a pretty dangerous uh
instrument for companies to take on I
would say short-term advertising debt in
this industry is you know that’s a
dangerous place to be because you have
very short-dated fixed US dollar
payments and you’re sitting you’re
you’re mining a volatile uh commodity
and so it can create flow scenarios uh
that are very tight and so for us you
know we’re in a very good situation our
debts mostly four and fiveyear debt uh
and we have a lot of optionality in the
capital structure I think that’s really
key you know convertible notes are
really interesting for miners um you
know you’re seeing it being used heavily
by micro strategy obviously if Bitcoin
outperforms you have a chance to Del and
that’s that’s a great place to be and
when you think about the strategy around
do you hold the Bitcoin or do you sell
the Bitcoin you’re mentioning like
you’re mining Bitcoin you’re telling
everyone here’s how much Bitcoin that
we’ve mined uh but then you’ve got this
like volatile commodity as you call it
um you have fixed cash payments both in
debt and expenses and so what is the
strategy like do you try to time the
market do you hedge do you sell
immediately what are you
thinking yeah I mean for us right now we
are currently selling our Bitcoin uh on
a daily basis you know what we’re really
focused on is operating extraordinarily
profitably you know we’re the best
Bitcoin miner out there from uh a number
of different angles and we’re one of the
largest Bitcoin miners as well uh we’ve
actually LED number of Bitcoins mined
since 2021 we’re leading again in 2024
so you know for us we’re really focused
on driving additional growth into the
company other companies have really
focused on diluting shareholders to pay
for cost of Revenue to pay for their
Opex so they can put Bitcoin on balance
sheet essentially that’s shareholders
buying Bitcoin at a massive premium um
you know you could say that’s a similar
situation with people buying micro
strategy but that you’re buying into a
leverage portfolio of bitco
in the micro strategy situation for
miners you’re just funding operating
expenses so that the minor can hold
Bitcoin you know for us if we’re going
to continue to grow this business we
have a massive growth portfolio of
facilities ahead of us of partially
developed infrastructure and we have a
lot of Ambitions and if we want to
achieve those Ambitions uh we just can’t
be sitting on a significant amount of
Bitcoin because there’s an opportunity
cost to that and it’s going to come at
the expensive our
shareholders now what is the counter
argument that you like most with you is
it just like hey if Bitcoin goes up then
we’re giving up upside but really as a
public company as a fiduciary you’re
trying to manage the downside and and
kind of the Bitcoin volatility
absolutely managing the downside this
business is about time and Market you
know as a mining company you’re playing
for the three months of year four months
a year where bitcoin price outpaces hash
rate rowth so that’s when mining
economics expand rapidly and you have to
be alive for those types of bull market
Cycles because that’s when you’re making
significant outside returns uh um so
really that’s you know that’s our Focus
right now and the other part is we have
better margins than all of our
competitors uh at scale and many of our
and many of the companies that are
operating smaller as well so for us
we’re experiencing a much larger upside
going forward as bitcoin price expands
than our competitors are so from our
perspective we don’t need to put Bitcoin
on balance sheet to experience the
upside of a Bitcoin bull market what
what drives the kind of better margins
for you guys
lower power costs and better operation
so you know for us it’s having the best
hash rate utilization or one of the best
hash rate utilizations in the industry
so that requires significant operating
experience our team’s run by mostly X
traditional data center folks so they
know what it means actually have very
high uptime uh the other part is
software you know we had to build our
own software stack we were the First
Institutional minor in North America
first one to 100 first one to 500 first
one to 700 megawatts we to solve a lot
of problems before people knew that they
were problems and so for us it was build
software that makes our machines more
efficient build software that allows our
machines to run longer all of those
things contribute to a much higher hash
rate utilization than others and then
talk a little bit about uh core um grew
very quickly went to bankruptcy has that
emerged and it’s a public company again
and I think a lot of folks uh not only
one part of the story either they know
the fast growth they don’t even know
about the bankruptcy uh they know about
the bankruptcy but they don’t know about
the before and after so like just kind
of like walk us through how did the
company grow so quickly uh and then why
did it go into bankruptcy and is that
actually a risk for some of the other
miners that they need to try to avoid
yeah let’s go back to 2021 B you know
every public mining company was raising
a specific amount of capital and the
market was rewarding aggressive growth
we achieved the most aggressive growth
strategy in the industry we built the
largest infrastructure footprint uh and
really the best designs in the industry
which are allowing us to achieve these
high hash rate utilizations now we went
public in January of 2022 uh we already
had a significant debt load on on the
company and so as we went through 2022
Network cash rate was increasing bitcoin
price was decreasing and we had the war
in Ukraine which jacked up power prices
due to the Natural Gas Spike and so all
of those things contributed to negative
lever free cash flow which is
essentially your free cash flow after
you pay for debt and so we went we filed
for chapter 11 in December of
2022 um in 2023 we went through a
13-month process starting in December
ending in January of 2024 uh I joined
the company actually in the middle of
the chapter 11 process so in April of
2023 um and we are able to eliminate
over $400 million in debt the main part
of it was we were actually able to
extend the maturities and include
optionality in the capital structure so
I talked about that earlier optionality
in a capital structure is incredibly
important so for us we have if our stock
performs well we have a we have a
warrant that is a cash exercise warrant
that brings in $670 million into the
business which more than covers double
covers our non-convertible debt then our
convertible debt has a mandatory
conversion feature so between those two
instruments we can be debt free and so
that’s really a highlight of going
through that process was just actually
making the structure of our debt proper
for a Bitcoin mining business because
there is a structure that works and it
includes long maturity and it includes
optionality in the capital
structure and talk a little bit as to
like you’re coming in how much of the
team turns over in that situation both
executive team and then also kind of U
you know the employee base and like how
do you change the business is it all
just literally like Financial
engineering and and balance sheet and
debt and kind of the things people would
assume are happening at bankruptcy or
are there also things that uh either
culturally or or kind of with the
employee base that you’ve got to do to
to Really make sure you’re in a good
position to come out of
bankruptcy yeah bankruptcies can be
extraordinarily challenging for
companies um I would say when I joined
the company you know we we had the best
operations team in the industry
obviously you need to have the best
construction operation software team to
actually build all of that
infrastructure at scale and build it
that quickly so I came in to a I would
say the most Talent talented team in our
industry and so it was really about
Shifting the focus of that team really
from hyper aggressive growth so let’s
focus on drilling into efficiency and
making our operations the best they can
possibly be because we knew we were
going to be on the plane field at some
point in the near future uh it ended up
taking you know another seven months to
get back on the playe field to being a
public company again but it was really
about that shift in Focus but you know
absolutely there’s challenges going
through a chapter 11 process you know
it’s a challenges with uh managing
Talent challenges with uh I would say
retaining top performers you know
luckily everyone understood where we
were taking this company and when you
have a vision for the business and
you’re executing on it people want to be
there people want to be a part of you
know a huge success story and we we
offer that of course scientific you know
we are a huge success story here having
the most successful chapter 11 process
in terms of equ recovery um and then
also we we maintained the largest
Bitcoin mining company in 2023 from
bitcoin’s mind perspective at a time
when we had both hands tied behind our
back and everyone thought we were a
punching bag turns out you we came out
we’re fighting even harder in 2024 we’re
still minding more Bitcoins than
everyone else and what are some of the
challenges that you all look moving
forward in terms of um you have this
having event uh there’s obviously like
always the capital markets but it almost
feels like maybe the last two years were
head wins and now you guys are starting
to get some Tailwinds um what are the
obstacles left or what are the friction
points that you you know you guys walk
into the Ops every day say hey we got to
solve these things or put ourselves in a
good position today’s episode has
brought to you to you by core scientific
they are one of the largest public
Bitcoin mining companies and hosting
Solutions in North America they
specialize in transforming energy into
high value compute with exceptional
efficiency at scale and recently
announced a contract with cor wee a
leader in AI Cloud compute to provide up
to 16 megawatt of Data Center capacity
with a substantial Fleet of their own
miners core scientific not only earns
Bitcoin for their own account but also
provides hosting services for
large-scale Bitcoin mining customers
operating out of seven data centers in
Georgia Kentucky North Carolina North
Dakota and Texas you can learn more
about core scientific by visiting cor
scientific.com that’s cor scientific.com
go check them out
today yeah so we announced a a deal with
cor weave actually on or on an HPC deal
you know that’s something that we’re
trying to solve over the course of 2024
so we’ve identified over 300 megawatts
in our existing portfolio that could be
converted
so you talk about the next big challenge
you know that’s the next big challenge
in in our in our company right now and
it’s not a challenge as much as it’s a
massive opportunity and everyone’s
really excited about executing on it and
so I would say having is definitely a
challenge from the Bitcoin mining side I
think that presents an opportunity for
us to buy a lot of machines post having
you know there’s going to be a lot of
challenged mining companies out there
you know going back to an earlier Point
2024 is going to be a challenging year
for a number of minors who are only
marginally profitable and they’re going
to have to find ways to raise Capital
the smaller they are the more challenges
they’re going to have in raising capital
and so for us it’s the opportunity to
refresh more machines post having that’s
an huge upside for us as a business and
then part two is the opportunity to go
execute on over 300 megawatts of
conversion of existing facilities into
more traditional
compute and
when those pieces of Hardware are coming
to Market it seems like every like two
years maybe you know 3 years
um I think miners have gotten their
heads around you know how often they
need to uh kind of update the hardware
but now there’s companies like uh
aradine and a few others that uh allow
for you either more granular controls or
you know different types of um clocking
and like all these like very intricate
things how much of the focus here is
like we got to get cheap power we got to
be good at operating we got to have the
latest version of the hardware versus
there’s like a technical component of if
we really optimize software we can eek
out extra profit and it’s almost like a
tech company that’s building
infrastructure versus it’s an
infrastructure company that has some
technology how do you view it yeah I
mean for us we had to solve a lot of
issues that other folks didn’t know they
had to solve and so we built software to
manage that not only keeping the
machines up longer and more efficiently
but also figuring out ways to overclock
machines during the night time or
underclock machines when mining
economics demand that to generate
greater profitability we built all that
stuff ourselves and so when we evaluate
new machines we always come at it from
the eye of are we paying for the value
that we’ve already
created I think what’s interesting is
2025 is the year of democratizing hash
rate and what I mean by that is there
are a number of Manufacturers coming to
Market they’re going to start Mass
producing at the end of 2024 in 2025
they’ll start hitting their stride in
terms of being able to build a large
number of machines and they’re going to
change their pricing model from we’ve
seen in the past and so what we’ve seen
in the past is Roi pricing essentially
pricing machines on a return on
investment from about 12 to 14 months
depending on what your economics are and
that’s what we saw in 2021 we saw
pricing go up to $80 a terahash now
going forward that’s going to be much
more challenging to raise prices that
high when there are a number of
Manufacturers who are going to price it
on a Cost Plus model essentially a cost
or a cost of added to the manufacturing
cost
and so that’s really going to change the
Outlook in 2025 for capex for mining
companies and also who we’re going to be
buying from and where the machines are
going to be sourced from and so I think
that’s a huge you know I would call it
the the major theme of 2025 versus how
much hash rate is going to be in the
network because all of that’s going to
be determined by market economics the
Bitcoin network is selfhealing and it
always has been and that’s never going
to go away um so that’s going to make
2025 really interesting
year and as we’re watching Core built
what is like the long-term Vision here I
I see a lot of miners now talking about
artificial intelligence I see you know
all these different kind of uh shiny
things that people could go do how do
you all think about the business over
the next you know called five to 10
years maybe two to three Bitcoin uh
having Cycles yeah I mean right now
we’re hyperfocused on 2028 you know the
good part is we have the most Nimble
infrastructure in the industry we built
it our facilities like a traditional
Data Center and so we have an much
easier time actually making conversions
we also looked at a lot of our
facilities from the perspective of being
data centers when they are initially
purchased and so for us it’s about
having Nimble infrastructure the ability
to execute on the highest opportunity
the highest value of compute we possibly
can and do that over the next three
years so that we’re prepared for 2028
and so that we can solidify how much or
I should say we want to solidify that
each of our facilities for Bitcoin
mining are going to be profitable at the
next having which is something that a
lot of folks can’t say today you know
we’re seing a lot of deals get done from
for facilities that have very high power
prices so that companies that have
overcommitted on machines can just bring
machines online you know that’s not our
game you know we’re at our core we are a
digital infrastructure company that
attacks new and emerging forms of
compute so that’s what we’re targeting
in 2028 have a healthy mix
of HPC Bitcoin mining and whatever other
types of compute are going to emerge
over the course of the next few years
which we have an outstanding design team
we we have an outstanding construction
team we have an outstanding operations
team so from our perspectively kind of
tick all the boxes for the major uh the
major companies whether it’s GPU as a
service whether it’s traditional AI
companies all of those companies know
that they can rely on us to provide them
the best infrastructure they can
possibly access now
I’ve seen you comment about picking up
cheap Hardware from other companies that
uh struggle post having is this a
industry where even with you focus on
2028 like the big guys get bigger as
mining gets harder and the
machines going forward they haven’t
really started that flywheel of just
being able to constantly refresh
machines in infrastructure that they’ve
already built you know we’re at that
point today and so if you take our
existing facility you can essentially
think about all right if we’re operating
you know about 18.9 x Ash today if we
convert all of our machines to the
newest generation machine you know we
could almost double that number and so
that’s what we’re starting to see is
really just that exponential growth of
hash rate
and that’s okay because as efficiency
gets better for each of the machine that
means the break even hash price lowers
for each new generation of machine which
means you can generate the same amount
of gross profit even at a lower hash
price on a newer and more efficient
machine and so you’re absolutely right
we’re going to see a lot of I would call
it hashrate consolidation amongst a few
of the top players but we represent such
a small portion of the overall Network
all public Bitcoin miners today are only
about 20% of the network so there’s
still a massive amount of
decentralization going on all over the
world one of the data points that I saw
online uh when I was kind of looking at
a bunch of the minors that I found
really interesting is um there was a
chart and you all had more hash rate
than
Marathon or I’m sorry they uh Marathon
had more hash rate than you but you all
had more Bitcoin produced in February
than them and it comes down to this idea
of minor utilization and I’m not picking
on Marathon or or you know anything but
just like explain minor utilization and
like how that ends up impacting the
business and like how volatile is that
number for each company over
time yeah so we actually post a good
chart in our earnings deck so it’s hash
rate utilization is the metric that a
lot of people have become focused on so
that means for every ex aash we have
running for core scientific we’re
generating about 10 more Bitcoin per
energized ex ahash than our competitors
now some of our competitors have
actually I would say gamed their numbers
a little bit by not actually telling the
market how many machines they have
running so they have a lot of machines
on the ground they hot swap them for us
we tell the market exactly how many
machines we own and our hatch rate
utilization still beats out all of our
scaled competitors and so from our
perspective it’s a you know it’s a huge
metric that we we really hang our hat on
because we don’t have to have as much
xash online as some of our competitors
and we can still mine more Bitcoin than
them goes down to a really talented
operations team really talented software
team and so that’s definitely a metric
that is in Focus right now you see it on
Twitter constantly right I don’t know if
you’ve seen it but I would say the
retail crowd is really sted to focus on
this metric because it it’s about
long-term longevity of our business like
if you can actually get better hash rate
utilization than a competitor that means
you’re generating a better return on
your
machines and as we start to watch you
guys expand site selection obviously
becomes a pretty important uh detail
what goes into
that you know right now we’re we have
372 megawatts of partially developed
infrastructure at two of our sites so
that I would say is less of a Focus
right now but we are continuously
running searches for new sites really on
the cost uh cost of power side that’s
probably the biggest focus and finding
areas that can provide lower power cost
in exchange for intermittency so what I
mean by that is essentially exchanging
uptime for a lower power cost there’s an
efficient Frontier of where you want to
fall on that curve but you can you’re
generally willing to accept lower
downtime or lower uptime in certain
situations for lower power cost and so
we’re constantly valuing those both
domestically and internationally right
now because you know the next generation
of our facilities are going to be more
focused on lights out facilities a lot
of people don’t talk about those but
essentially run them like you know where
the data center industry is moving which
is have less people involved have less
people touching them because usually you
get better uh you get better uptime out
of your machines and we can solve a lot
of the issues through through our
software stack so that’s what we’re
focused on in the future it’s building
out facilities in very lowcost power
centers that are essentially lights out
they need people to only go to those
facilities you know once or twice a week
to maybe exchange out some machines um
but we already have those processes
nailed centralized repair centers um we
have an amazing parts inventory or
centralized parts inventory Warehouse we
have all these systems already in place
to manage this and so for us you know
that’s the future right it’s smaller
sites that are focused on lights out
grabbing better margins because if you
have lower power costs you have lower
facility level operating costs you’re
going to have better margin profile and
we can already manage a large number of
facilities we have seven facilities
today easily blow that number out to 25
50 facilities when you have no problem
managing it but that’s really where the
industry is going to start moving to
it’s going to start moving away from
some of these Mega sites and start
moving towards some of these smaller
more modular sites that provide a lot
more optionality but you need to have
the right operations team you need to
have the right software stack otherwise
you’re going to really struggle to
manage that
infrastructure and as you kind of um
view bitcoin’s price going up what would
change your guys mind on not selling the
Bitcoin
yeah so right now we’re contractually
obligated according to our debt
covenants to or certain debt covenants
to sell our Bitcoin now if Bitcoin
really begins to perform well and we’re
able to start paying down some of that
debt you know that will provide an
opportunity for us to be much more
opportunistic I would say holding
Bitcoin on balance sheet will require a
I would say a more liquid hedging market
for Bitcoin and Bitcoin mining more
directly once that occurs Bitcoin is
going to a much more viable commodity to
hold in your balance sheet or on your
balance sheet because soon you’re going
to be running this very similar to a
trading desk where you’re going to be
trading like a traditional Commodities
company would and so that’s definitely a
place where you’re actually going to
start having cash on balance or Bitcoin
on balance sheet against some of your
hedge positions but right now it’s like
we walked into 2023 expecting to mine
between 13 and 14,000 Bitcoin that’s a
massive amount of Bitcoin exposure to
have and really I would say the the
accounting change that we’ve seen for if
bitcoin price increases you can take put
that on your income statement you know
some of that is just noise and a lot of
investors already recognize that so I
would say our Focus continue to execute
on growth continue to have the right mix
of cash on balance sheet versus paying
down debt and continue to grow the
company and so Bitcoin on balance sheet
is great for some companies who have who
have large huddles and I would say we
would start holding coin on balance
sheet after we uh start to clear some of
that debt and utilize it for hedging
purposes and what are the things that
maybe the average investor who’s looking
at these mining companies um what are
the things that they usually don’t ask
you or uh the things that they don’t
care about that you’re like as a person
who thinks about Capital allocation
these are the things when I look at a
minor that I really really pay attention
to that maybe should be more
important yeah I mean we talked about
utilization but that’s kind of coming in
Vogue now um I would say it’s really all
in cost of power and what’s the
flexibility and the power rates you know
everyone puts their headline number in
their deck well what’s the what’s the
power rate that you were charged that’s
not standardized today I think in the
future companies are going to have to
present a standardized metric for
presenting price of Bitcoin and then I I
think the next part is really related to
what does your infrastructure look like
because a lot of people who have built
infrastructure in the past haven’t been
performing proper maintenance on their
facilities it’s been a big focus of us
is actually ensuring that these
facilities can operate for tens of years
and so we’ve been performing significant
maintenance over time so we never incur
these major outages that’s a huge risk
you’re seeing it today with some of the
other large mining companies who have
facilities go out and their Bitcoin
production is low for sometimes months
at a time because they can’t get the
facility operational again you know
that’s a place a lot of ERS haven’t
focused on in the past but they
absolutely need to because
infrastructure is a high capex item and
so if you’re not maintaining that
infrastructure it can present massive
risks just a few years down the road
after you’ve completed it got it um and
then lastly like you joined during the
bankruptcy you’re out of the bankruptcy
what’s been the biggest surprise as CEO
of a company that’s kind of gone through
this uh this wild ride and now has the
Tailwind rather than the
headwind I would say it’s the uh it’s
the investor base you know people stuck
with us through the chapter 11 process
you know obviously a lot of people were
upset by it um but we came out a
stronger company I think a lot of people
recognize that we got the best Equity
recovery for Equity investors in history
in terms of percent of the company
received and so I would say we have a
lot of loyal fans out there and you know
I’m very thankful for all of them
because they supported us in our darkest
times and now they’re supporting us as
we’ve uh We’ve reemerged and we’ve
continued to absolutely pound the table
uh with all of our competitors and being
the biggest mining company even as we
weren’t able to grow through our chapter
11 process so I think a lot of people
recognize that and they’ve stayed loyal
to us and I think you know that’s been
the biggest surprise for me a lot of uh
a lot of friendly notes from a lot of
investors out there which I really
appreciate that’s okay they eventually
all come around right no they are
friendly that’s what I’m saying yeah
yeah yeah they’ll be just fine um
awesome where can we send people find
you on the internet or find out more
about core yeah uh on Twitter adamore
sullivan1 uh core uncore scientific um
you know those are probably the the two
best places to find us on is on uh on
Twitter it’s where we’re the most active
awesome Adam thank you so much for doing
this and I also appreciate you coming uh
to our our recent Bitcoin investor day
people really really enjoyed your
comments and uh I think that the having
specifically has uh some folks
questioning is this positive or negative
and and to hear your enthusiasm uh is I
think somewhat calming to them so I
appreciate your insights I think people
really learn a lot from this we
definitely do it again in the future
yeah and I I’ll give a quick pitch for
your the Bitcoin investor day amazing
conference um the the enthusiasm was
flowing out of the facility um it’s an
absolutely amazing event there’s a lot
of people there A lot of really
important people there too uh so it was
great to be able just to rub shoulders
to some of those folks uh walking
throughout the conference so a great
event I I I uh I did not compensate you
to say that but I appreciate it very
much all right we’ll do it again in the
future sounds great appreciate it

Adam Sullivan is the CEO at Core Scientific, one of the largest bitcoin miners in North America. In this conversation, we talk about building Core Scientific, public company impact, bitcoin halving, bitcoin ETFs, future of bitcoin miners, consolidation in the industry, metrics to evaluate a business, and future plans for Core Scientific.

Core Scientific (NASDAQ: CORZ) is one of the largest public Bitcoin miners and hosting solutions providers for Bitcoin mining in North America. To learn more about Core Scientific, please visit: www.corescientific.com

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