Greg Beard: Chase, I apologize, and just to sort of follow back up with your question. Our capital cycle in 2021 and €˜22 has largely come to an end. And so we have been ratably over the course of the fall and into the winter as we’re working through these material deleveraging events, trying to get our balance sheet in the right place and cutting costs made sense to ratably monetize our Bitcoin and convert it to USD. And so €“ and we avoided significant depreciation in the price of Bitcoin last year with that method. We continue to vigilantly manage leverage and optimize for liquidity. And so I think we’re going to continue to take a balanced approach on having enough cash around to fund the business. Right now, we are in the market negotiating to fill our data centers as we described in our press release.
And the best hedge we have for that is to hold some Bitcoin if mine prices were to go up, which we have not seen yet, but if minor prices were to increase, holding Bitcoin is a nice hedge for that. And so we have €“ I would say we’ve held a little bit more Bitcoin, a little bit longer as we’ve moved out of the mid-year of the fall into this 2023 period. But I still expect that we’re going to take a balanced approach and monetize ratably by just maybe over slightly longer holding periods.
Chase White: Got it. Thank you.
Operator: And thank you. And our next question comes from Chris Brendler from D.A. Davidson.
Chris Brendler: Hi, thanks, and congrats on the success here, pretty impressive. I wanted to basically follow-up on Chase’s question about expenses in terms of the mining operations and power sales. Sort of quite lower than we expected on the fuel side. It didn’t look like there was any one-timers or any significant one-timers in operation and maintenance this quarter. So I’m calculating it sort of close to a 50% non-GAAP gross margin. I just wanted to know what does that look like in the first quarter? I imagine it won’t be quite as high and maybe if you could just talk about some of the puts and takes there. Thanks.
Matt Smith: Sure. So I just want to make sure I understand the question. We were flexibly curtailing in the fourth quarter as power prices dictated it. And we definitely saw an expansion in gross margin, particularly in December as power prices rose and our cost of energy was moving towards our favor. And so that was a key piece. Every line item, the cost started to trend down fuel costs, O&M €“ I mean, O&M was a step function improvement in the fourth quarter over the third quarter. Part of that is a function of outages in the third quarter. And part of that is a function of improved fixed cost amortization into the fourth quarter. And so I guess the good thing is those trends continue to be a tailwind into the first quarter, in terms of the absolute level of those costs.
Power prices came off, obviously. We’re a price taker. And so gross margins obviously compressed into the first quarter with power, but a pretty material offset has been the expansion of hash price and Bitcoin price as we moved into 2023. We’re not going to give first quarter guidance today on the call, but we’re glad that the business model has the flexibility to €“ if it doesn’t make sense to sell power to convert it to Bitcoin. And we’re glad we have the flexibility to import electricity instead of make it, which gives us a pretty good buffer with our gross margins, and that’s going to be pretty constructive, we think, especially relative to peers as we go through 2023.
