Mike Grondahl

Wes cited 3 customers already in the state, a ~1 GW hyperscaler self-build, and talks with other Tier 1 hyperscalers.

Saidal named project finance and IG bond structures beyond high yield, favoring terms refinanceable within 1-2 years post-construction.

Saidal laid out a three-part financing flywheel: Applied's balance sheet/revolver, the Macquarie JV equity (3/4), and site-specific project debt rolled to permanent financing.

Wes defended the lease economics as mid-to-high band for the customer quality/scale and cited ~$2B+ of annual contracted NOI as the payoff.

Saidal detailed the lease restructuring benefits -- the investment-grade CoreWeave offtake, a lockbox structure with Applied first in the waterfall, and a springing parent guarantee -- and said borrowing costs should move in line with an investment-grade tenant, citing favorable bond trading levels.

Wes said demand shifts quarter to quarter by who is aggressive, but every hyperscaler they target remains engaged aggressively; he noted it is hard to give a total market view and spoke to the locations they are marketing with multiple hyperscalers interested.

Wes disclosed advanced discussions on 3 sites totaling 900 megawatts.

Wes called the pipeline robust and said scaling and execution across multiple sites, not demand, is the key constraint for the business.

CEO said terms are largely coming in as expected; CFO detailed investment-grade pricing in the high 2s to low 4s with 70% loan-to-cost.

Direct, pricing stable over the last 90 days but up year-over-year, and said discussions continue with basically all hyperscalers across multiple campuses.

Partial, acknowledged the pressure characterization was fair but reframed the exit as a long-planned separation of two distinct businesses.

CFO said over $700 million is invested in Ellendale and the financing should return in excess of $300 million of cash to the parent.

Wes said pricing reflects strong demand, citing recent hyperscaler spend, and put the non-Ellendale pipeline at 1.6 gigawatts with 2026/2027 power.

Partial: management expects a possible additional-site LOI by the end of calendar '24, citing a very dynamic market with power timelines being pushed out.

Direct: since the prior call, inbound interest jumped from three additional hyperscalers pushing for 2025-26 capacity; a second-site LOI is likely in the Dakotas.

Jason Chung noted positive lender feedback driven by AMD's investment-grade credit, attractive development yield, and relative scarcity of AMD debt supply supporting competitive spreads.

Jason Chung broke down $33.2M into $32.2M tenant fit-out (5% margin) and $900K operating lease (91% margin), noting margins will normalize toward 80%+ target as AMD scales and O&M costs increase through Q3-Q4.

Management confirmed full power approval from Q4 2022 with the site already operational, noting the new ERCOT batch process only affects unapproved loads and further validates the scarcity value of Riot's existing approvals.

Management declined to disclose specific pipeline targets but confirmed expanding power beyond Corsicana and Rockdale is a strategic priority, with next 120 days focused on Core & Shell construction and tenant engagement.

Management identified two parallel priorities: building the data center team with credible hyperscale expertise, and completing the Corsicana basis of design to advance tenant discussions.

Management noted feedback drove land, water, and fiber improvements but declined to identify specific tenants, saying the full hyperscaler landscape is potential.

Management confirmed general interest from hyperscalers but noted inquiries have not been site-specific; more about needing power fast.

Management targets 38.4 EH/s by year-end 2025 (+22%), driven by Kentucky expansion, with continued focus on operational excellence and power strategy.

Logan Hennen, on for Mike Grondahl, asked what CleanSpark learned from leasing Sandersville; Matt said the tenant praised CleanSpark's energy-market DNA and collaborative execution, and the Texas exclusivity terms mirror the Sandersville lease as a rinse-and-repeat template.

Matt Schultz said demand for smaller 60-megawatt-plus sites is rising as mega-site minimum thresholds drop, citing a Neocloud seeking 8 gigawatts; a direct, upbeat answer.

Management said demand is escalating, citing positive conference feedback and Amazon's $200B 2026 AI infrastructure commitment; answered directly.