Bit Digital (BTBT) Q3 2026 Earnings Call Transcript

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DATE

Thursday, Nov. 12, 2026

CALL PARTICIPANTS

• Head of Investor Relations - Charles Brady
• Chief Executive Officer - Samir Tabar
• Chief Financial Officer - Erke Huang

TAKEAWAYS

• Total Revenue -- $27.1 million, representing an 11% decline year over year compared to $30.5 million.
• Cloud Services Revenue -- $18.1 million, reflecting a slight increase year over year at a gross margin of approximately 56%.
• Colocation Revenue -- $5.6 million, representing a 232% increase year over year driven by the MTL-3 site and initial contributions from the NC-1 facility.
• Native Staking Revenue -- $1.0 million, representing a 14% sequential increase from the second quarter driven by higher Ethereum prices.
• Digital Asset Mining Revenue -- $2.0 million, reflecting a 63% decline year over year for the first nine months of the year as the company winds down the segment.
• Gross Profit -- $15.2 million, representing a consolidated gross margin of 56.1%.
• Net Income -- $28.5 million attributable to shareholders, compared to a net loss of $107.2 million in the second quarter of 2026.
• Diluted EPS -- $0.08, supported by realized and unrealized gains on digital assets and non-operating items.
• Operating Cash Flow -- $163.2 million for the nine months ended Sept. 30, 2026, supported by customer advance payments.
• Ethereum Holdings -- 163,726 ETH and ETH equivalents, with a fair market value of $439.4 million as of Sept. 30, 2026.
• Native Staking Rewards -- 474 ETH earned during the third quarter, with an average annualized yield of approximately 3.4%.
• WhiteFiber Equity Stake -- 59.7% majority ownership, representing 27,043,750 shares with an implied market value of approximately $487 million.
• Remaining Performance Obligations (RPO) -- $729 million total at quarter end, with $13.5 million expected to be recognized in the remainder of 2026 and $235.1 million in 2027.
• NC-1 Operational Capacity -- 40 megawatts of contracted capacity is now operational and billing under a 10-year, $865 million contract.
• Consolidated Cash Balance -- $143.5 million, with $5 million held at Bit Digital and $138.5 million held at WhiteFiber.
• Debt Obligations -- $445.3 million in consolidated convertible notes, including $150 million in principal for Bit Digital's 2030 notes.
• At-The-Market Program -- $11.6 million net raised in July through the issuance of 6.9 million shares at an average price of $1.71 per share.
• WhiteFiber Bridge Loan -- $100 million outstanding following an additional $70 million drawdown in October to support infrastructure development.
• Galaxy Loan Repayment -- $30 million repaid in September, reducing collateralized liquid ETH requirements from 39,000 to 19,000.
• Contract Liabilities -- $154.1 million as of Sept. 30, 2026, compared to $7.7 million at the end of the previous fiscal year.
• Digital Asset Gains -- $84 million in gains on digital assets recorded during the quarter.
• Bitcoin Mining Production -- 28.4 bitcoin mined during the quarter, down from 64.9 bitcoin in the prior year period.
• WhiteFiber Financing -- $300 million secured credit facility closed by WhiteFiber to support repayment of bridge loans and future development.
• Liquid Staking Collateral -- 64,000 liquid staking tokens pledged as collateral as of Oct. 21, 2026, to support borrowing facilities.
• Native Staking Fees -- 2.5% of rewards plus a fixed fee per node paid to third-party validator partners.

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RISKS

• Tabar warned that ETH price volatility and borrowing obligations pose risks, stating, "ETH remains volatile, staking revenues vary, and borrowing against liquid-staked assets creates collateral and liquidity obligations."
• Huang noted a $3.2 million non-cash impairment on liquid staking tokens during the quarter due to accounting treatment and market fluctuations.

SUMMARY

Bit Digital, Inc. (NASDAQ:BTBT) reported a significant shift in its consolidated revenue composition as it transitions from Bitcoin mining toward Ethereum staking and artificial intelligence infrastructure. Management stated that the company operates as a strategic asset entity, focusing on owning high-conviction assets and making them productive rather than passively awaiting market cycle shifts. The company maintains a majority ownership stake in WhiteFiber, which serves as its primary vehicle for providing high-performance computing services. CFO Erke Huang noted that the company is utilizing its balance sheet to convert liquid capital into operating assets and contracted revenue streams.

• Cloud, colocation, and staking segments together accounted for approximately 91% of consolidated revenue, compared to 74% in the prior year period.
• The company reported a 39% discount to net asset value, which management identified as a primary driver for evaluating share repurchase programs.
• CEO Tabar indicated that the board cannot authorize a share repurchase program independently, as the Articles of Association require shareholder approval for such initiatives.
• Bit Digital is developing an internal alpha-oriented business that management expects will generate non-cyclical revenue, with further details anticipated in the first quarter of 2027.
• The company stated it does not intend to sell its WhiteFiber shares during 2026 but may consider measured sell-downs in 2027 to fund potential share buybacks.
• WhiteFiber completed the acquisition of the NC-2 and NC-3 sites in North Carolina, adding to its development pipeline for AI infrastructure.
• Management stated the company does not expect to allocate meaningful growth or maintenance capital to Bitcoin mining going forward as it prioritizes infrastructure and Ethereum strategies.

INDUSTRY GLOSSARY

• ASC 606: An accounting standard for revenue recognition from contracts with customers.
• ATM (At-The-Market): A type of follow-on offering that allows a company to sell shares directly into the secondary market at prevailing prices.
• ETH: Ethereum, a decentralized, open-source blockchain with smart contract functionality.
• LsETH: Liquid Staking Ethereum, a token representing staked ETH that can be used as collateral while still earning rewards.
• MOIC: Multiple of Invested Capital, a performance metric used to measure the value of an investment relative to its initial cost.
• NAV: Net Asset Value, representing the total value of an entity's assets minus its liabilities.
• NC-1: The designation for WhiteFiber's first data center campus located in North Carolina.
• RPO: Remaining Performance Obligations, representing the total amount of contracted revenue that has not yet been recognized.

Full Conference Call Transcript

Operator: Hello, and welcome to the Bit Digital Third Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, today's call is being recorded. I'll now turn the call over to your host, Charles Brady, Head of Investor Relations at Bit Digital. Charley, please go ahead.

Charles Brady: Thank you and welcome, everyone, to Bit Digital's third quarter of 2026 earnings call. Joining me today are Sam Tabar, our Chief Executive Officer, and Erke Huang, our Chief Financial Officer. Before we begin, I'd like to remind everyone that some of the statements we make on this call are forward-looking in nature and subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, but are not limited to, those factors described in today's earnings press release, our Form 10-Q for the quarter ending September 30, 2026, filed today, as well as other filings we may make with the SEC from time to time.

Throughout the call, we may also refer to non-GAAP financial measures. Reconciliations to most directly comparable GAAP measures can be found in our earnings materials available on our website. Following today's prepared remarks, we will open the call for questions. With that, I'll turn the call over to Sam. Sam?

Samir Tabar: Thank you, Charley. And good morning, everyone. Charley recently joined us to lead Investor Relations. It's really good to have him with us on his first Bit Digital earnings call. The third quarter is a useful reminder of why we built Bit Digital as a strategic asset company. Our goal is to own high-conviction assets, actively manage and make them productive, and allocate capital in a way that compounds value per share over time rather than passively waiting for the cycle to improve. The mix of our business is changing. Some of that is deliberate, particularly our continued exit from Bitcoin mining. Some reflect the timing and variability of cloud services revenue.

At the same time, colocation continues to expand and Ethereum staking revenue has improved sequentially. Together, cloud, colocation, and staking accounted for about 91% of consolidated revenue this quarter, compared with about 74% a year earlier. That is a meaningful change in the composition of the business. Last quarter, we described how we were putting our balance sheet to work. This quarter, the focus was on turning that capital into operating assets and contracted revenue. In August, WhiteFiber's NC-1 facility began contributing revenue on the first 20-megawatt data hall. And, although some temporary issues related to switchgear slightly delayed the ramp, today the full 40 megawatts of contracted revenue is operational.

That contracted revenue is connected to an $865 million contract over 10 years. In addition, WhiteFiber recently closed a $300 million secured credit facility, which is expected to be funded later this month and will support repayment of the bridge loan we made to WhiteFiber. Following the end of the third quarter, WhiteFiber completed the acquisition of the NC-2 and NC-3 sites in Yadkin County, North Carolina, with additional development opportunities. Turning to Ethereum, as of the end of September, we owned approximately 163,726 ETH and ETH equivalents. During the third quarter, native staking generated approximately 474 ETH in rewards at an average annualized yield of about 3.4%.

Through the first 9 months of 2026, we earned 1,863 ETH through native staking. In September, following WhiteFiber's $30 million delayed draw facility repayment, Bit Digital repaid $30 million of the loan from Galaxy, allowing us to reduce the amount of collateralized liquid ETH from 39,000 to 19,000. Subsequent, to the end of the third quarter, WhiteFiber received an additional $70 million drawdown, bringing the total outstanding under the facility to $100 million. As of October 21, collateralized liquid ETH totaled 64,000, equating to 70,892 ETH. We remained focused on the simple test for every allocation decision. What does it do for value per share after considering the cost of capital and the risks we assume?

We do not try to own the most ETH or announce the most transactions. We are trying to make the assets we already own work harder and protect the optionality to act when the economics justify it. With that, I'll turn the call over to Eric, our CFO, to review the financial details.

Erke Huang: Thank you, Sam. Good morning, everyone. Our results consolidated WhiteFiber in full with a portion attributable to non-controlling interests. Third quarter revenue was $27.1 million compared with the $32.1 million in the second quarter. For the first 9 months, revenue was $87.1 million, up 7% year-over-year. Cost of revenue was $11.9 million, excluding depreciation and amortization of $11.1 million, which is reported separately. Operating cash flow for 9 months was $163 million, supported materially by customer advance payments. These payments relate to services we have not delivered. Consolidated net income was $0.6 million after allocating $27.9 million of losses to non-controlling interests. Net income attributable to Bit Digital shareholders was $28.5 million, or $0.08 per diluted share.

Turning to our operating segments, cloud services revenue was $18.1 million compared with $23.8 million in the second quarter. This includes a $3.4 million of termination fee revenue from our initial customer. Recurring revenue following that customer's termination was partially offset by deployments for new customers. Colocation revenue was $5.4 million compared with a $4.7 million in the second quarter and $1.7 million a year ago. Growth reflected MTL-3 and the initial contribution from NC-1, which generated about $1.1 million of net income during the quarter. Native staking revenue was $1 million compared with a $903,000 in the second quarter. We earned 474 Ethereum, up from 440 Ethereum.

Rewards accruing within liquid staking tokens are accounted for separately and are not included in the revenue figure. Digital asset mining revenue was $2 million on 28.4 Bitcoin mined compared with a $2.4 million on 32.3 Bitcoin in the second quarter. Turning to valuation and financing items. We recorded $84 million of gains on digital assets, $5.4 million of gains associated with the transfers of liquid staking tokens into collateral arrangements, and a $3.2 million of impairment on liquid staking tokens. Separately, we recorded $10.7 million gain from remeasurements of the derivative liability associated with our convertible notes. Other income included $17.1 million of unrealized gains on digital assets held through a third-party fund.

WhiteFiber settlement of a portion of its 2031 convertible notes resulted in an $80.8 million induced conversion expense. The transaction involved both cash and WhiteFiber shares. Consolidated interest expense was $10.4 million. Turning to the balance sheet and treasury. On September 30, we held 74,606 Ethereum direct with a fair value of approximately $200 million. Separately, we held 47,192 ETH staking tokens at approximately $98 million and the digital asset collateral receivable carried at $37.1 million. We also maintain digital asset exposure through a third-party fund. Those positions were measured on a different accounting basis. Consolidated cash and cash equivalents were $143.5 million at quarter end. We repaid $30 million of our Galaxy borrowing in September, leaving $30 million outstanding.

But after quarter end, we borrowed an additional $70 million and advanced this additional $70 million to WhiteFiber in late October. In July, Bit Digital raised $11.6 million net through its at-the-market program, issuing approximately 6.9 million shares at an average price per share of $1.71. Proceeds were used for working capital purposes. Finally, remaining performance obligations under ASC 606 totaled $729 million at quarter end. We expect to recognize a $13.5 million in the remainder of 2026, approximately $235 million in 2027, and approximately $207 million in 2028, with the remaining balance thereafter. These figures exclude lease arrangements and certain other contracts and variable considerations. They are not a consolidated revenue forecast.

With that, I'll turn the call back to Sam.

Samir Tabar: Thank you, Eric. I want to close with a few thoughts on Ethereum and where Bit Digital fits in the broader transition we see taking place. Eric's review covered substantial non-cash gains on digital assets, as well as changes in our operating revenue mix. Both matter, but when we assess our strategy, we look at the income our assets generate and whether our capital decisions are increasing value per share over time. I've previously talked about developments in the Ethereum ecosystem that reinforce why we view the network as a foundation for programmable financial infrastructure. Stablecoins and tokenized funds are examples of how blockchain infrastructure can be used to hold and transfer financial assets.

Ethereum faces competition, and more network activity does not automatically mean a higher ETH price. Even so, its established ecosystem, security, and developer base are important reasons why we continue to see value in this network. We're also closely watching the connection between Ethereum and AI. In October, the Ethereum Foundation highlighted zkAPI, an application that uses Ethereum to support payments for AI and other software services while protecting the link between a payment and the user's identity. It's an early example, but what interests us is the potential for software and AI agents to pay for services directly, with payments that can be verified and processed automatically. That is one way Ethereum could become useful as these applications develop.

We see it as a part of a longer-term investment case rather than a near-term revenue assumption. We also recognize the risks. ETH remains volatile, staking revenues vary, and borrowing against liquid-staked assets creates collateral and liquidity obligations. Our experience through different market cycles has reinforced the need to manage those exposures alongside our investment conviction. Our majority stake in WhiteFiber is another important part of the investment case. It represents ownership of an operating AI infrastructure business that is generating revenue today. All 40 megawatts of contracted capacity at NC-1 are now operational and billing. And WhiteFiber's broader portfolio of signed customer contracts supports even further growth.

Turning to Bit Digital's valuation, our shares continue to trade at a substantial discount to our NAV. The NAV calculation we have disclosed starts with our ETH Treasury and WhiteFiber shares, then subtracts the $150 million face amount of our convertible notes. I understand why shareholders want to see action on that discount. We have discussed repurchases before and I want to address where it stands. The board cannot authorize a program on its own. Our articles of association require shareholder approval before we can implement a repurchase program, including approval of how the purchases would be made. We recognize the appeal of buying back shares at the current discount to NAV, which is currently about 39%.

Before seeking shareholder approval, though, we would need to identify how we would fund those purchases and whether that approach would improve value per share while preserving the liquidity the business needs. The purchase price and the source of funds both matter to that assessment. Selling ETH to fund repurchases, for example, would allow us to reduce the share count, but it would also mean giving up staking rewards and some exposure to any future increase in Ethereum's value. We need to determine whether the expected benefit of the repurchase justifies that trade-off, while retaining enough liquidity to meet our financing obligations. We view repurchases as a capital allocation decision that must be weighed against other uses of capital.

That same standard applies to each opportunity, the expected benefit to value per share after considering financing costs, liquidity, and risks. We continue to see long-term opportunities in Ethereum and AI infrastructure through WhiteFiber. Our responsibility is to translate that opportunity into returns for Bit Digital shareholders. With that, let's open the call for questions.

Operator: [Operator Instructions] We will take our first question from Nick Giles with B. Riley Securities.

Henry Hearle: This is Henry Hearle on for Nick Giles. Sam, you highlighted the NAV discount and buybacks as a potential option through shareholder approval, but beyond repurchases, what other levers are you considering to help the market recognize the value of your underlying assets?

Samir Tabar: Well, I think we're one of the only ones in, if you look at what some people might refer to as our peers, we have an actual real business with very significant revenue. So we have a controlling majority stake in WhiteFiber, and that's a lever that no other peers of Bit Digital has. And so I don't think the market has really recognized that. And as WhiteFiber continues to show its execution ability, which it has, especially recently, we believe the markets will begin to provide shareholder value to WhiteFiber, which will cascade to Bit Digital. So that's one lever we have. Another lever we have is, of course, Ethereum going up. That should be helpful.

Another lever that we have is WhiteFiber at some point, potentially next year, we may sell down the shares and use that cash to buy Bit Digital shares. So that's three levers that we have and we're well positioned for that. But I can, again, I understand the frustration. I own myself a lot of shares of Bit Digital, but I do see sunnier skies ahead, given the three levers that we just talked about.

Henry Hearle: Understood. Thank you for highlighting those 3 levers. And then you mentioned potentially selling them.

Samir Tabar: There is a fourth lever, is that we are vigorously looking at an alpha-oriented business that we're developing in-house, that will help us create some proper revenue under Bit Digital itself. So there's a number of levers there. So those are the four levers.

Henry Hearle: Got it. I was just going to ask, you mentioned selling down potentially the WhiteFiber stake in 2027. At this time, could you say what your target stake in WhiteFiber might be, or is this still something that you and management are working through?

Samir Tabar: There's no math around that. There's no specific number. It really depends. But we see the potential of WhiteFiber. We see what's in the pipeline. So we're in no rush to sell down the WhiteFiber shares. In fact, when we do so, if we do so next year, we will do that in a very measured manner in order to not put any selling pressure on WhiteFiber. But Bit Digital is in a good situation. It's a capital-light business and currently we're in pretty good shape. So we don't have any liquidity concerns on the Bit Digital side.

However, should the markets begin to credit WhiteFiber where credit is due and the market cap of WhiteFiber goes to where we believe it should, then it would make a lot of sense to start selling down the shares of WhiteFiber and potentially using the cash to repurchase Bit Digital shares. But that's what's on the menu and there's nothing formulaic or structured about it. It will be a judgment call.

Operator: We will take our next question from Kevin Dede with JonesTrading.

Kevin Dede: Hi, Sam. The dog has some questions for you. Yes, but couldn't come to the phone right now. Listen, I'm impressed with the way that you're managing your ETH in helping to finance WhiteFiber, but I think the mechanics of it are a little over my head. And I was wondering if you and Eric could kind of walk through how you're looking at that and what the timeline having that ETH back at Bit Digital may be. Then a follow-up for you too, please.

Samir Tabar: Can you just rephrase the first question? I think that question is for Eric, but I just want to make sure we understand it. Can you just say it again? Or Eric, maybe if you already understand it.

Erke Huang: I think Kevin is asking about the mechanics of the Bit Digital bridge to WhiteFiber. Is that right, Kevin?

Kevin Dede: Yes, absolutely right.

Erke Huang: Okay. Yes, so it's quite simple. You know, we had converted our native staked ETH. We had taken it out and converted it to the liquid staking ETH, so LsETH. By doing that, we're not giving up the Ethereum staking rewards appreciation. And we use the LsETH as a collateral and borrow U.S. dollars from Galaxy with a reported rate of 5.5% annualized. And at the same time, we borrow that amount of U.S. dollars to WhiteFiber through the bridge. We have set a 1.1 MOIC mechanism for 180 days. So we're looking to get those funds repaid back the second quarter of next year. And right now the facility sits at $100 million outstanding.

Kevin Dede: Thanks, Eric. Appreciate it. The 5.5% that Galaxy is paid is paid by Bit Digital. And then the loan WhiteFiber has paid that intercompany arrangement back to Bit Digital.

Erke Huang: Yes, it's a bridge loan. Yes, the interest is 9.5% annualized with a 1.1 MOIC feature.

Kevin Dede: Right, right. Okay. Would you mind running through the balance of your ETH treasury strategy? How much do you intend to keep in native staking and what other alternatives might you consider in DeFi? And I'm wondering, obviously, Sam, you alluded to an alpha-oriented business. I'm wondering if DeFi is on the table for that.

Samir Tabar: It is on the menu, absolutely. We can't get too much into it. Eric is leading a particularly interesting business under the Bit Digital umbrella, but it needs a little bit more development. But it is an alpha-oriented business in that we're not attached to cyclical market movements in generating revenue from that particular business that we have in mind. But I can't get into it too much. And Eric is probably thinking right now that I'm already being a bit too open about it.

Kevin Dede: You've overstepped your bounds?

Samir Tabar: Right.

Kevin Dede: Maybe, Eric, just please offer a little more detail on your overall ETH management strategy, just to refresh my memory, please.

Erke Huang: The ETH on balance sheet, we like to keep them 100% native staking unless there are better opportunities, like the bridge opportunities we have with WhiteFiber is a good example. That's why we took some of that out of the native and turned to LsETH and borrow against that for advancing the bridge. Other than that, less than 10% is managed through some third-party funds that's generating higher yield than native staking. As you probably know, native staking rewards had been decreased in the past few quarters. Now it's about 2.2% native staking while we're seeing those funds can generating risk-adjusted returns, you know, 3% to 5% and above.

But with that being said, we like to maintain a small portion for that allocation and the majority of that as being native staked or more direct management by the Bit Digital.

Operator: We will take our next question from Mike Colonnese with H.C. Wainwright.

Michael Colonnese: First one for me, assuming you do move forward with the share repurchase program, curious what discount to NAV would compel you to sell a portion of your ETH holdings to fund potential buybacks as you balance the trade-offs there?

Samir Tabar: Yes, there's no actual formula. Eric, Charley, and I are thinking about it constantly. Eric, do you want to weigh in a little bit?

Erke Huang: Yes, like Sam said, we're still re-evaluating the situation. So in terms of selling ETH to a repurchase, we're still evaluating.

Michael Colonnese: How do you plan to allocate the capital from the bridge loan to WhiteFiber when it's fully repaid? Based on what it sounds like, that could be a 2Q '27 event, so it'd be great to get some more color on that near-term capital injection, if you plan to keep it in ETH or if you plan to reposition those assets.

Samir Tabar: Eric, you want to take that?

Erke Huang: Sorry, can you rephrase your question again?

Michael Colonnese: Sure. Based on your comments to another question earlier, you mentioned that in the second quarter of next year is when you plan to be repaid the bridge loan to WhiteFiber. So, I was curious how you plan to allocate that capital or if you intend to keep that in ETH.

Erke Huang: Yes, I think it's still a work in progress. While, like Sam said, there are a number of alpha-driven opportunity businesses that we are developing and will provide more color when it's more mature, but as of now, the strategy seems to be working well for us, you know, with the risk being assessed.

Michael Colonnese: Got it. And just last one for me, it would be helpful, maybe to investors, if you could provide a little bit more color on what that incubation or incubated business that you're potentially looking to launch, you know, what that could look like from a business model perspective would be great.

Samir Tabar: Repeat that. I'm so sorry, there was a bit of internet connection issues.

Michael Colonnese: Yes, sure. No problem. So, it sounds like you're working on incubating this potentially new revenue-generating business. I think it'd be helpful for investors to be provided maybe a little bit more color as to what that model could look like without obviously going into too much detail, given that it's not out there yet.

Samir Tabar: Yes, it's -- Eric, I will refrain from talking too much about it because I know it's very exciting, but embryonic. It's up to you if you want to provide some color since you're leading that workstream, or we could just wait until our next call.

Erke Huang: Yes, I would refrain from commenting on that into details, but it's some agendas and businesses that Bit Digital and WhiteFiber have been working on and will provide more color, I believe, in Q1 next year.

Operator: [Operator Instructions] We will take our next question from Brian Dobson with Clear Street.

Brian Dobson: Thanks for the additional details on those four levers of creating shareholder value. I suppose since a repurchase seems more complicated, as you're thinking about allocating incremental dollars, right? What do you see as the best use for those marginal dollars? Is it that alpha generation business that you alluded to?

Samir Tabar: It could be, that's 1 of the levers, certainly. I just want to take a step back. It's complicated that we have many options, right? Of course, we could sell our ETH, or we could sell down our stake in WhiteFiber. So those are 2 levers to repurchase our shares. But the complication is really getting the shareholder authorization. And until we figure that out and decide where we're going to get the funds to repurchase, that is really the complication. And that's something we're currently discussing and working on in terms of activating that process.

Operator: We will take a follow-up question from Kevin Dede with JonesTrading.

Kevin Dede: Sorry to bug you, Eric, but can you remind me, is it Blockdaemon that's handling your native staking? And is there any thinking behind maybe taking that in-house? And then I have a follow-up from the dog.

Erke Huang: It's Figment that we've been working with for native staking for the past few years. And, yes, we had discussions about bringing that native staking in-house, but so far we're pretty happy with their services. As you probably know, there are reporting requirements, controls requirements in place, etc. Figment is providing this institutional level of service. We're quite happy, all of us happy as well. So, far no change. But it's definitely in consideration.

Kevin Dede: Okay. So did you confirm Blockdaemon or did you say Figment? I wasn't sure. I missed that. Apologies.

Erke Huang: Figment.

Kevin Dede: Yes, Figment. Okay. Yes, the dog wanted to know how much you have to pay for that service and how you'd recommend that we calculate it going forward. That's for Eric.

Erke Huang: It is based off a percentage, if I'm not mistaken, remembering correctly, 2.5% of the rewards and certain dollar amount per node that we operate on that. I'm sure we've disclosed in the financials.

Samir Tabar: Thank you, Kevin.

Erke Huang: Thanks, Kevin.

Operator: There are no further questions at this time. I will turn the conference back to Mr. Tabar for any additional or closing remarks.

Samir Tabar: Thank you very much for your time today and your patience. We're working very hard towards increasing the share price. That is definitely our overriding concern as well, and we really do appreciate your patience. We'll get there. Thank you.

Operator: This concludes today's call. Thank you for your participation. You may now disconnect.

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