00:00 Speaker A
How important was it that Google backstopped all this?
00:03 Asher
Critical. I mean, without Google, we would not be able to get JP Morgan, Goldman Sachs to commit the balance sheet financing to be able to give us up to 85% of the actual cost to build a data center for project financing, and at a really low rate of SOFR plus 2.25% target. And so overall, the the clarity of Google backstopping, and think about this.
00:30 Asher
It’s a $7 billion deal, that’s roughly $450 million a year.
00:33 Asher
$450 million on average a year for 15 years for Hut 8 transforms the business. You look at mostly data center infrastructure multiples trade at a 15 to 20x multiple. That’s somewhere between 7 and a half to 9 billion dollars of overall value. You take out the build costs, you’re at 5 and a half to 7 billion dollars of equity value creation. And so overall, we’re extremely excited because if you think about the company today, 330 megawatts alone is worth more than our full market cap today.
01:10 Asher
In addition to that, we own 60% of American Bitcoin, which is another publicly traded company we have with the Trumps. That’s worth about a billion dollars. We have about 10,000 Bitcoin on the balance sheet, that’s worth another billion dollars. And then we have 9,000 megawatts, 1,000 that we currently operate, another 8,000 of new development megawatts that I haven’t even counted. And so we’re extremely excited that about the company, its future growth potential. I think this is the first step in showing the market we have an ability to take a site from the very, very beginning on a piece of land that we find to bring it to a commercialized AI data center.
01:43 Speaker A
Asher, what’s the next step? Because if I, if it’s, if I have this correct, you have a pipeline. What does that pipeline look like? And and are you just on the cusp of announcing more deals like you just announced?
01:54 Asher
Yeah, so when we announced this deal, creating a program with partners that could scale is really important. You brought up Jacobs engineering. They have 40,000 contractors and engineers. You have Vertiv, one of the best equipment manufacturers within the whole data center space. Obviously, Goldman Sachs and JP Morgan have some of the largest balance sheets as banks. So we put together a group of partners that we believe could scale with us in our development pipeline. And so we spent this whole year creating that foundation, find the right customers who have the demand as well. And now it’s about repeating this program again and again and again to start growing the value of this company. And we’re extremely excited and we think, uh, if we’re on here a year from today, we’ll have uh had a lot of headway in the scale that we were able to deploy and develop for our shareholders.
