Ladies and gentlemen, thank you for standing by, and welcome to Canaan Inc.'s Second Quarter 2025 Earnings Conference Call. Please note that this event is being recorded. Now I'd like to hand the conference over to your speaker today, Ms. Gwyn Lauber, Investor Relations of the company. Please go ahead, Gwyn.

Thank you, operator. Hello, everyone, and welcome to our earnings conference call. Joining us today are Chairman and CEO, Nangeng Zhang; and our CFO, Jin James Cheng; Leo Wang, Vice President of Capital Markets and Corporate Development; and Xi Zhang, Senior IR Manager, will also be available during the question-and-answer session. Our CEO will start the call by providing an overview of the company and performance highlights for the quarter. Our CFO will then provide details on the company's operating and financial results for the period before we open up the call for your questions. Before I begin, I would like to refer you to our safe harbor statement in our earnings press release. Today's call will include forward-looking statements. These statements include, but are not limited to, our outlook for the company and statements that estimate or project future operating results and the performance of the company. These statements speak only as of today, and the company assumes no obligation to revise any forward-looking statements that may be made in today's press release, call, or webcast, except as required by law. These statements do not guarantee future performance and are subject to risks, uncertainties, and assumptions. Please refer to the press release and the risk factors and documents we file with the Securities and Exchange Commission, including our most recent report on Form 20-F for information on risks, uncertainties, and assumptions that may cause actual results to differ materially from those set forth in such statements. In addition, during today's call, we will discuss both GAAP financial measures and certain non-GAAP financial measures, which we believe are useful as supplemental measures of the company's performance. These non-GAAP measures should be considered in addition to, and not as a substitute for, or in isolation from, GAAP results. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP results, in our earnings press release, which is posted on the company's website. And finally, please note that during the call, all dollar amounts refer to U.S. dollars. With that, I will now turn the call over to our Chairman and CEO, N.G. Zhang. Please go ahead.

Thank you, Gwyn. Hello, everyone. This is Nangeng Zhang, CEO of Canaan. Welcome to our earnings call. Together with our CFO, James, we are in our Singapore headquarters to share our Q2 2025 business results and updates with you. This past quarter marked the first anniversary since the most recent Bitcoin high, and we are delighted to celebrate Bitcoin's all-time high price in recent days. We are pleased to report the strongest quarterly results in the current Bitcoin cycle and also the best quarter in the past 10 quarters since Q3 2022. Total revenue for Q2 reached $100.2 million, up 40% year-over-year, breaking the $100 million mark. Gross profit rose to $9.3 million, a significant increase from $0.6 million in Q1. Operating loss narrowed to $27.1 million. EBITDA turned profitable at $1.68 million, and adjusted EBITDA reached $25.3 million, both hitting record highs since we began reporting these metrics in Q1 2024. We attribute our strong results this quarter to three main factors: the higher and stable Bitcoin price, our quick and effective response to the new tariff policy environment, and the rapid growth of our home-use Bitcoin mining product line. Throughout the quarter, Bitcoin remained strong, rising from around $75,000 at the start of the quarter to the peak of nearly $120,000 by late May, and then staying at a high level with some volatility. At the same time, total active hash rate also stayed high, which kept mining margins under pressure. The hash price in Q2 moved overall from a low of about $48 per petahash per day to a peak of $58 per petahash per day in May. In addition, during this quarter, many countries were affected by the cyclical tariff policy, which includes the import cost of equipment for U.S. mining customers and created a lot of uncertainty in global trade. This led many U.S. customers to delay building mining sites or deploying hash rates. Facing these challenges, our sales, supply chain, and compliance teams worked closely together and focused on markets outside the U.S., delivering strong performance that offset the negative impact from the U.S. market's weaker business environment. Our product sales reached approximately $72 million, including $55.9 million from Avalon Industrial Mining Solutions and $5.7 million from the Avalon Home-Use Miner Series. In Q2, we delivered a total of 6.4 million terahashes per second of computing power with an average selling price of $11.10 per terahash. Our Avalon Home Miner product line delivered strong performance this quarter, generating $5.7 million in revenue, a sharp increase of 359% from $1.3 million in the previous quarter and maintained a gross margin of 13%, which is higher than that of our institutional mining machines. This segment now accounts for over 5% of our total revenue. What is most remarkable is that this growth was achieved despite the challenges of high summer temperatures and rising electricity costs. Looking ahead, we will continue to rapidly expand the home-use mining market, especially in heating-related application scenarios, where energy that might otherwise be wasted can be turned into additional value. In Q2, our self-mining operations produced 284 Bitcoins, up about 9.4% from 259 Bitcoins in the previous quarter, benefiting from the rise of Bitcoin prices during this period. Our mining revenue reached a record $28.1 million, an increase of over 15% from $24.3 million in Q1. At the end of June, our total installed mining capacity worldwide reached 8.15 exahashes per second, with 6.57 exahashes per second already in operation. Last week, we also released our July Bitcoin production and mining operations update, showing continued progress in our mining business. By the end of July, our Bitcoin treasury had reached 1,500 Bitcoins. This brings us to our next topic, our Bitcoin treasury. Historically, we have increased our Bitcoin treasury in three ways: first, by accepting Bitcoin payments for mining equipment; second, by earning Bitcoins through our mining operations; and third, by directly purchasing Bitcoins in the open market. Looking back at this Bitcoin cycle, we have steadily accumulated Bitcoins at all stages. In recent quarters, our cash cost of mining has constantly been lower than the average market price of Bitcoin during the same period. While the cost of acquiring Bitcoins may fluctuate from quarter to quarter, its long-term value has continued to rise. This is why accumulating Bitcoin remains a profitable strategy for us even during bear markets. At Canaan, we are proud to be one of the few companies in the Bitcoin ecosystem that truly achieves vertical integration. Vertical integration is not just about mining Bitcoin. We design and manufacture our own ASIC chips and mining machines. We operate our mining business globally with partners, and we follow a disciplined treasury strategy to accumulate Bitcoins at attractive price levels. These three pillars work together to help us lower the cost of acquiring Bitcoins, reducing operational risks, and maintaining strategic flexibility throughout the Bitcoin cycle, all while steadily enhancing our Bitcoin treasury. Since our founding, we have always believed that Bitcoin is both a global asset class and the foundation of the entire cryptocurrency ecosystem. Likewise, our business expands globally and does not rely on any single country or customer growth. Our ability to adapt flexibly across different markets and supply chains has helped us achieve steady improvements through market cycles and policy changes. We have a strong reputation in many countries, especially in the United States, which has earned us repeat orders from some of the most respected mining companies in the industry. In R&D and supply chain, our A-16 series is now in the chip packaging and testing stage, and will soon move into full machine testing. We are making every effort to bring the A-16 series to market as quickly as possible. On the supply chain side, our manufacturing capability in the U.S. is now up and running, complementing our existing capacity in Malaysia. This allows us to meet back delivery needs for U.S. customers with only a modest cost increase. This includes fulfilling part of the order from the listed company, Cipher, in Q3. Recently, we also secured a follow-on order from Cleanspark for our A-15 emerging cooling model, showing strong customer recognition of our products and services. As a U.S. listed company committed to 100% compliance, our customers have great confidence in the compliance of our offerings. In today's already volatile trade environment, reducing potential regulatory risks for our clients is more important than ever. Looking ahead, we will continue to follow our unique full-cycle strategy, our vertical integration, disciplined Bitcoin treasury management, and ability to flexibly shift between self-mining and Bitcoin purchases when market conditions are right, giving Canaan a clear edge at every stage of the Bitcoin cycle. By designing and producing our own hardware, operating mining under the most favorable conditions, and steadily building our Bitcoin strategy, we have established a clear competitive advantage. One that allows us to keep accumulating Bitcoins at a cost lower than the market price, even in challenging environments. Our ongoing commitment to build a company with both resilience and agility, leveraging the advantages of vertical integration to grow our Bitcoin assets, protect shareholder value, and seize every market opportunity. We believe this strategy will carry us through short-term volatility and deliver long-term, stable, and outstanding returns. It will also position Canaan as a leading institution in both technology innovation and Bitcoin treasury management. We will continue to focus on North America as our core expansion region, strengthening product execution and customer service while closely monitoring policy changes to adjust our strategy, seize opportunities, and mitigate risks. In summary, based on the current situation, we remain cautiously optimistic for Q3 2025, with revenue expected to be in the range of $125 million to $145 million. This forecast is based on the present market and operational conditions, and actual results may vary given recent policy uncertainties and market fluctuations. This concludes my prepared remarks. Thank you, everyone. Now I will hand it over to our CFO, James.

Thank you, NG, and good day, everyone. This is James, CFO of Canaan. I'm very glad to share our Q2 financial results with you today. As NG stated at the start of the call, we are firmly committed to vertical integration in the Bitcoin ecosystem. Our vertically integrated model encompassing the entire chain of R&D, manufacturing, sales of mining equipment, self-mining operations, and pivotal currency treasury management positions us uniquely. With the cryptocurrency industry and Bitcoin ecosystem gaining increasing attention and support globally, we are confident that our forward-thinking strategic investment is demonstrating its sustained value potential. We are pleased to report record quarterly results with both the peak of the current Bitcoin cycle and the highest performance in the past 10 quarters since Q3 2022. Let me give a quick summary of our financial performance. First, we reported strong Q2 results with total revenue of $100.2 million, not only exceeding our guidance but also reaching $100 million quarterly milestone and representing a 40% year-over-year increase. Our product sales delivered a robust performance with revenue of $72 million, an increase of 23% quarter-over-quarter and up 17% year-over-year. In Q2, we experienced a softening U.S. demand under the pressure of tariff uncertainties while continuously delivering some early booked contract sales orders from U.S. customers. We were also working hard to expand our distribution channels in Asia. With our efforts, our average selling price, or ASP, increased to $11.10 per terahash per second, reaching a new quarterly high in the past two years. Turning to the revenue from our Avalon Home series. In Q2, we delivered approximately 13,000 units of our Avalon Home products, contributing revenue of approximately $5.7 million and reaching a gross profit margin of 39%. As of August 13th, unfulfilled orders and finished deliveries in Q3 totaled $9.5 million. Second, our mining business also recorded its best quarterly performance. Our mining revenue surged 202% year-over-year to $28 million. We mined 284 Bitcoins in the quarter, up 101% year-over-year. Our deployed hash rate expanded 23% from 6.6 exahashes per second at the end of Q1 to 8.15 exahashes per second at the end of Q2. In Q2, more than 10,000 mining rigs were newly deployed in our American projects and the installed computing power in America reached 3.66 exahashes per second at the end of Q2. Next, driven by the strong results of machine sales and mining operations, our profitability improved both sequentially and year-over-year. Gross profit came in at $9.3 million compared with $0.6 million in Q1, also setting a record high for the first time since Q3 2022. Adjusted EBITDA achieved a gain of $25 million, a significant turnaround from the prior quarter's loss of $38 million. Our basic and diluted net loss per ADS narrowed to $0.03, representing the lowest loss in the past 10 quarters following Q3 2022. Last but not least, we maintained a solid balance sheet with over 1,480 Bitcoins with a market value of approximately $160 million at the end of Q2. We continue to manage our Bitcoin reserves to generate sustainable outperformance. Turning to expenses. Our operating expenses totaled approximately $36 million, remaining flat sequentially. As previously announced, we are steadily progressing with the exit of our AI business. Once completed, this is expected to significantly reduce operating costs, although there will be a one-time expense related to organization optimization in the short term. The overall operating expense structure will become healthier. By the end of the second quarter, the price of Bitcoin increased to around $107,000 versus around $83,000 at the end of the first quarter. The increased Bitcoin price on the last day of the quarter resulted in an aggregate unrealized fair value gain on crypto assets of $34 million. The noncash accounting treatment for the fair value change of the preferred shares impacted our Q2 bottom line with $17 million consisting of $8 million from the Series A1 preferred shares converted during this quarter and $9 million from the remaining unconverted Series A and Series A1 preferred shares at the quarter-end. In order to represent our performance more accurately and more comparably, we have excluded the impact of this accounting treatment for our non-GAAP measures. Turning to our balance sheet and cash flow. In Q2, we paid $41 million to secure our wafer supply, $62 million for production and operations, and $5 million prepaid for our share repurchase program. The cash outflow aforementioned was offset by cash inflow of $66 million from sales, $7 million from export VAT refunds, and $4 million from ADI program reimbursement. Consequently, at the end of Q2, we held cash of $66 million on our balance sheet. Now turning to our Bitcoin assets. Bitcoin held as our own holding assets increased in the quarter, reaching a record high of 1,484 Bitcoins as of June 30th. This is 76 more than the 1,408 at the end of the first quarter. On June 30, 2025, the fair market value of our owned Bitcoins totaled around $160 million, and our hold gain was approximately $82 million higher than the original value of the Bitcoins that we gained from mining or other operations. As of July 31st, our total Bitcoin treasury increased to 1,511 as already disclosed. As announced recently, by the end of July 2025, all Series A1 preferred shares had been converted into ADS's and sold. As of the date of the earnings call, we have cumulatively repurchased approximately 3.6 million ADS's for approximately $2.4 million under the share repurchase program. With rebounding customer demand and proven local manufacturing in North America, we will maintain our strategic focus on this core market. Concurrently, we will continue to be agile in response to geopolitical and policy shifts, seizing opportunities while mitigating risks. Given these developments, we expect revenue for the third quarter to be in the range of $125 million to $145 million. This concludes our prepared remarks. We are now open for questions.

Your first question is from Mike Grondahl with Northland Capital Markets.

This is Logan on for Mike. Congrats on the quarter. First, it was nice to see the 6.4 exahash sold at an ASP of $11.10. Is there anything to call out on current market dynamics, pricing strategy, and demand for A15 you guys saw in July and August?

Hi, Mike. Yes, in Q1 this year, first, I'll give some numbers. Bitcoin price has now risen to new heights. And demand for A15 today looks somewhat different from when we issued our first 2025 guidance in January. And in Q1, I think the ASP for our miners was $10.50 per terahash, and Q2 ASPs rose to $11.10 per terahash. Yes, this is the ASP side. But in Q2, there's an impact from the tariff policy, which has increased the overall cost for our U.S. customers. I think the estimated impact is roughly from 15% to 25%. It remains fluctuating. As a result, many mining customers in the U.S. are still taking a wait-and-see approach, but several recently announced U.S. orders, especially from publicly listed miners, show that through joint efforts customers are gradually adapting to the tariff changes and they are returning to the market. Also, we have opened our production facilities in the U.S., allowing us to deliver machines from both the U.S. and Malaysia to avoid some of the tariffs and improve the overall user experience. In the last three quarters, our ASP has increased, and ongoing demand outside the U.S. for high-performance miners is also growing. Due to better manufacturing processes for the A15, performance is improving, and costs are slightly lowering. This all supports our ASP and gross margin.

Great. Thanks for the color there. And then one follow-up from us. Congrats on the Cipher and Cleanspark order during the quarter. Can you guys just provide an update now with the United States production facility, how is Canaan viewing a strategy for penetrating the North American market? Any updates on how you see growing market share there?

First, I will say regarding Cipher's orders, maybe James will add some color after that. I think we have always believed that actively expanding in the North American market is the right decision, at least in the mid and long term. Fully in line with our long-term strategy, I think the U.S. continues to send strong policy signals supporting the cryptocurrency industry. The U.S. has the world's most vibrant crypto community and is home to the largest number of publicly listed mining companies. It also has abundant and diverse power resources, including wind, solar, and renewable energy that can support large-scale deployments. America's culture of innovation and its capital markets ecosystem provide a strong foundation for institutional miners. For us, institutional miners always have set habits in site operations and equipment purchasing. So the key to gaining more market share in the U.S. is to get more customers to try our products first. Our machines must demonstrate clear performance advantages. Our service quality must be the highest in the industry standard. In 2024, North America already contributed about 40% of our total mining machine sales revenue. On the mining side, we already deployed 3.67 exahashes per second for mining hash rate in this region. In Q2, our mining revenue in North America reached a record high of $28 million. We also established manufacturing capacity in the U.S. This all solidifies our long-term growth in North America. In the short term, however, changes in the business environment and policies earlier this year slowed our expansion pace in the U.S. But we have made adjustments, and I think the most transitional period is now behind us. Key metrics are recurring, and we remain confident in the long-term potential of the North American market.

Yes. I will add some color on this because the U.S. market is so important for us. In our annual report, we mentioned that 40% of our revenue in 2024 has come from the U.S. market. Recently, we received orders from Cipher and Cleanspark. The Cipher order is the first time we utilized our manufacturing factory in the United States as a new alternative. Although the costs are a little higher, I think it's beneficial to our customers. It's geographically closer to them, and they recognize our product performance. This improves our delivery capability and overall cooperation experience for them. This shows our execution of the strategic thinking from the CEO, just to highlight that we really value our customers in the United States, and the U.S. strategy is one of the most important in our entire integrated system. I believe customers are coming back to us, and we have started receiving orders. I'm confident we will have more opportunities.

Our next question coming from the line of Edward Engel with Compass Point Research.

This is Bill McLever on for Ed. Can I just ask, have you seen any changes in customary site demand since May? And has sentiment rebounded back towards Q1 levels, for example?

I think since July this year, we have indeed seen some positive changes in the market demand recently. We have announced several new orders from institutional customers in North America, showing that local customers are gradually adopting this new tariff environment, and their willingness to purchase is returning. It's important to note that the direct impact of the tariff policy is concentrated mainly in the U.S. During Q2, we saw very active demand in Asia and other regions, where we secured a large number of orders this quarter. The company delivered over $100 million in revenue, with more than $70 million for mining machine sales, and most of these orders did not come from the U.S. This shows that overall global demand remains healthy. In July, Bitcoin prices also reached new all-time highs multiple times, which has been an important driver for miners to increase purchases. However, the U.S. tariff policy uncertainties remain, and demand from U.S. customers has not fully returned to pre-tariff levels. The situation is complex, as historical imbalances caused by the tariff policy have forced machines originally intended for the U.S. market to be sold to other regions at discounted prices. To address this, we must continue to work on other ways to get machines into the U.S. at a lower cost. Our U.S. manufacturing operation is already functioning, but it remains complex due to tariffs. Overall, we believe this setup helps us lower costs and improve supply speed for the U.S. market.

Our next question coming from the line of Kevin Cassidy with Rosenberg Securities.

Yes. Congratulations on the great results. Can you describe the effect that Bitcoin miners pursuing AI and HPC co-location hosting agreements are having? Is that slowing the demand for Bitcoin mining rigs?

Yes. We have seen some miners in recent quarters shifting a part of their power and facilities to AI/HPC co-location projects, and some have done so very successfully, often leveraging their experience in Bitcoin mining and access to energy resources. We see AI/HPC and Bitcoin mining as complementary for two reasons. First, AI/HPC products typically have longer sales cycles and capital recovery periods than Bitcoin mining. So when Bitcoin prices are high and network demand is strong, mining continues to offer higher and more predictable returns, which is why many companies are pursuing both avenues. Second, from an energy standpoint, there is no direct competition for resources. Bitcoin mining is already a flexible power consumer. Over the long term, it can quickly secure large volumes of energy at very low costs, enabling rapid scaling. This also helps stabilize supply for AI/HPC. Many large energy projects are now planning for both mining and potential HPC customers together, improving overall energy utilization. Overall, our customers include large institutional miners, distribution partners, and home users around the world, with a flexible product portfolio and global delivery capabilities. We can meet a wide range of deployment needs. We expect Bitcoin mining equipment to remain a core driver for our business.

Okay. And maybe just as a follow-up, can you give us an update on the next-gen A-16s? And are you seeing a trend for more liquid cooling versus immersion systems than in the past?

Firstly, I will answer the liquid cooling and air cooling question. Yes, we have seen steady growth in demand for liquid cooling systems. However, air cooling models still account for most of our miner sales. The reason is that they have lower deployment requirements. It's easier to install and maintain, and can be quickly rolled out across various global markets, especially for customers who value flexibility and low operating costs. Water cooling systems perform very well in high-density computing environments but require stricter standards for water quality and operations. They are mainly used by large mining farms with fixed infrastructure. Since July, we've seen growing demand in Asia from customers who want to use the heat output for water heating, many of them starting with small batches of several hundred machines, while preparing for larger deployments later in winter. Immersion cooling is also growing very fast, particularly in North America and parts of the Middle East. Large institutional miners like Cleanspark are choosing immersion for its strong performance, high density, low noise, and very stable output. These projects often involve higher customization and long-term capital investments, which also bolster customer loyalty. For the next generation, we will offer all three different cooling options and optimize designs for different markets or even different customers based on different energy conditions. For example, in hotter regions, immersion cooling may be more attractive, while distributed sites or smaller-sized air cooling might continue to deliver strong cost-effectiveness. Regarding the A-16, it is currently in the stages of chip assembly and testing. We expect to have full machine testing results within 1-2 weeks. After that, we will officially announce the A-16 to the market.

Our next question coming from the line of John Todaro with Needham & Company.

Two for you. One, if we could just dig a little bit more into the Bitcoin treasury strategy and your thoughts on some of the Bitcoin treasury companies out there? Is there a possibility you could start getting a premium in the stock, similar to those companies? As a follow-up, as you think about your Bitcoin stack, and I apologize if I missed this, but is there any way to generate yield off it, derivative strategies, anything like that among your peers who have been able to generate a yield on Bitcoin holdings?

Thank you, John. This is James speaking. I would like to introduce a little bit about our Bitcoin treasury strategy. Our approach to Bitcoin treasury management aims to establish a conservative foundation to ensure the safety of our holdings while increasing their long-term value and liquidity. First of all, we have developed a way of doing collateralized financing. In a rising Bitcoin market, we can pledge part of our Bitcoin to access low-cost capital for high-return projects, such as miner production and self-mining expansion. When the financing term ends, we usually can repay the principal and also generate additional financing, which improves the efficiency of our capital use. Secondly, we are exploring placing some Bitcoin in short-term interest-bearing accounts to earn a modest yield while ensuring safety and compliance. We are also evaluating selective derivative strategies to manage price volatility or capture additional returns under certain market conditions. Overall, we have a vertically integrated model that allows us to grow our Bitcoin reserves through multiple channels, such as accepting Bitcoin payments for miners, mining at a cost below market average, and directly buying Bitcoin in the secondary market when prices are more attractive. While we are still in the early stages, our Bitcoin treasury has already reached 1,511 coins by the end of July. Over time, I believe the market will recognize us not just as a hardware maker or mining machine provider, but as a capable Bitcoin treasury company.

Our next question coming from the line of Kevin Dede with H.C. Wainwright.

NG, James, I'm curious to dig in a little bit deeper following up on John's question. Would you consider using the Bitcoin treasury to help fund operations? I wasn't really clear if that was part of the intention.

Kevin, we can fund different operations like mining site expansion and also, in certain stages, we can use Bitcoin as collateral to obtain loans.

That helps very much. Appreciate it, James. I'm also curious about the geographies that you're finding the greatest demand for the Avalon home miners and how you intend to market that effort?

Yes, I think currently, we will sell the Avalon Home series globally across many different countries. But I believe the primary region is still the U.S. In Q2 and now in Q3, we have seen much better performance than in Q2. We are trying to sell more heaters in summer and we are getting good results. The interesting factor is we are introducing a new product line for the industry. We are working and learning from feedback. I believe our home miners have reached a good level for product performance aimed at miners. For the traditional consumer market, we still need to enhance various aspects, including user experience, costs, and quality to meet the expectations for traditional consumers. We are building a special team to focus on product development.

Our next question is from Mark Palmer with the Benchmark Company.

Yes. Congratulations on the resilience demonstrated during the quarter. I wanted to see if you could address the company's current capital deployment priorities. Given where the share price is, how inexpensive the stock appears, it seems like buybacks would be very much in order. I know that there were some executed during the second quarter. How are you thinking about capital deployment at large, where buybacks fit into the mix versus alternative uses of capital?

Thank you, Mark. I think we have already completed the $100 million preferred share financing in March. After that, we have not utilized our ATM program. We have paused the ATM program since February 20th to avoid putting additional pressure on the market, especially after our share price fell below $2 in early February. Instead, in May, we announced a share repurchase program of up to $30 million. In June, both the CEO and I personally purchased around 817,000 shares. At this current stage, we believe our shares are significantly undervalued, so buying back stock at this level is a better use of capital than issuing equity. So far, we have already purchased around 3.6 million ADS's. In using the funds recently, demand in Asia remains strong, and customers in North America are steadily recovering their interest in expanding their mining fleets. The overall market demand is increasing as every quarter shows better results than the previous one. This allows us to prioritize capital from operations for expansion while also continuing our self-mining efforts. Flexible capital allocation based on actual business needs is a priority.

Our next question coming from the line of Thedosia Belling with B. Riley Securities.

Hello, everyone. NG and James, maybe my question is a summary and follow-up of what's already been asked regarding our North America plans. Given that many miners postponed their expansion plans due to HPC AI initiatives, how do you see the evolution of average selling price by the end of 2025 and maybe going forward in 2026?

Yes, I think the global market is quite active currently. The hash price stands around $58 per petahash per day, indicating a strong market for miners. However, due to tariff policy fluctuations in North America, the ASP for miners is currently lower than it normally should be. While the higher ASP for the U.S. market is influenced by these cost fluctuations, what we need to do is to reopen manufacturing channels in the U.S. to better meet supply and demand dynamics. Although the tariff situation may increase prices, it will not facilitate healthy ASP growth. Most of our orders have occurred outside the U.S. in Q2. However, more customers are coming aboard in Q1 and Q2, making deals with us now.

Thank you. As there are no further questions in queue, now I'd like to turn the call back over to the company for any closing remarks.

Thank you, everyone, for joining us on the call today. If you have any further questions, feel free to reach us directly or through the contact information that you can find on our website. Thank you.

That concludes the conference call for today. Thank you, everyone, for attending, and you may now disconnect.