Release Date: March 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you give us an update on site acquisition activity and how you're approaching procuring power infrastructure in the current environment? A: Nangeng Zhang, CEO: We are actively looking for sites in energy-rich regions across North America. Our flexible cooperation model includes fixed-rate hosting, joint mining with profit sharing, or acquiring and building our own sites. We have secured enough site resources to support our current deployment plan of 10 exa hash in the first half of the year. Recent US policy changes may make new power generation capacity available, benefiting us further.
Q: Can you provide insights into the demand outlook for the second half of the year, given your 2Q guidance improvement? A: Nangeng Zhang, CEO: Our Q4 sales performance was strong, with 9.1 million terahashes of computing power sold. We expect larger numbers in Q2 and Q3 as new inventory builds. The second half's key factor will be Bitcoin price and the economic environment. If Bitcoin reaches around $100,000, it would significantly help achieve our annual target. James Cheng, CFO, added that demand remains strong, and they are confident in meeting the full-year target.
Q: What are your ASIC orders with your foundry partner, and how do they align with customer orders? A: Nangeng Zhang, CEO: We typically produce based on sales orders to control inventory risks. We are gradually increasing production but not at maximum capacity. We consider factors like cost, supply chain tightness, and market competition. While we don't disclose exact numbers, current production should meet both sales and mining operations. If demand increases, we can place additional orders.
Q: Can you discuss the architectural changes in the A16 ASIC that contribute to its performance improvement? A: James Cheng, CFO: The A16 uses cutting-edge technology and smaller transistor sizes, but it's not just a straightforward upgrade. Each generation of our products achieves significant performance improvements through numerous technical advancements. We focus on design technology co-optimization to enhance performance further. The improvements result from many small technical enhancements collectively leading to significant gains.
Q: How has customer service evolved in the US, and what are you doing better now to win customers? A: James Cheng, CFO: Bitcoin mining has become more global, requiring closer maintenance and support services. We offer a one-year warranty and have 26 service stations worldwide to shorten delivery cycles and improve service efficiency. Our products show strong operational stability, especially in high-temperature environments. We aim to outperform competitors by maintaining low failure rates and ensuring cohesive operations between our North American and Singapore teams.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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