MGTI - Earnings call transcript Q3 2019 | MGT Capital Investments, Inc.

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Operator

Good day, everyone. And welcome to today's MGT Investor Update Conference Call. Please note this call maybe recorded.

It is now my pleasure to turn today's program over to Mr. Lowrey, the Company's Chief Financial Officer. ahead. go Please

Rob Lowrey

morning. investor Good the to third MGT's to Thank update. And And XXXX call taking thank quarter join. you. welcome you time for

for Chief Joining highlights give to of discuss the business of the for Officer. Ladd, to-date. is and overview is third MGT's the company year-to-date of me The Mr. company Robert an periods. agenda quarter financial status today's the Ladd I call for then Executive and its will

are presented that the We company. will questions then to address

Prior to I'd call, like to disclaimer. read forward-looking starting the the following

business, call, our differ that During what only and SEC, discussed on our most statements, events These could subject are materially. factors performance we predictions in Capital forward-looking and risks, XX-K, may or of this the financial future recently risk filed results factors may in may based obligation are we we forward-looking assumptions affect about statements believe make forward-looking other and the the we are today's on financial other that call. to our future today, including statements make contained and no trends. X-Ks. update other to forms detail in and and Investments MGT our and information which uncertainties, any the statements our which These earnings results performance with XX-Q today's filings assumes release, actual

Mr. overview Ladd With that an said, turn I'd for now to the over company. call of the

Robert Ladd

Thanks Rob.

I minimum that the is we mining XXX SXX At constructed just facility, simplify At able immediate As at in with time, the facility the serve Bitcoin cents operations LaFayette, we two we its most power that have megawatts nearby to a transformers owns complete. decided hour.MGT of Georgia. by miningoperations Pro to five the on price company to per better of containers. know, site, of hooked received. its to substantially attractive substation Bitmain each am with control this Antminers digits and single June, transformer operating kilowatt three access you nearly this back containers low announce XX upto the in an at electrical the have transition pleased in consolidating present one we

The waiting ordered delivery are other two containers previously SXXs. of

The is for PODX also containers house two the waiting balance to SXX company of of delivery the miners.

megawatt. computing expect all said in all December. drawing and load during have be MGT five electric X containers, to to place expects of in is We power hardware an done, over XX When in of excess petahash

and By will forth end statement owned about infrastructure directly. Let per production new of PTC housed of owned MGT and me put MGT containers own and XXXX, on X,XXX all year generation land more by current the MGT. miners difficulty XX rate, at this outright operate by Bitcoin month approximately capable

entails less megawatts additional landlord additional presently a is two the capacity investment; proposition electrical to monetize risk buying place and methods second the continue miners, of the for that in considering a capital to infrastructure other is As to in LaFayette, first the for be X company miners; spending. containers and is its

and of of Lastly, selling previous the our Antminers. SX unwinding process agreements we remaining continue the generation inventory

back now financial provide details quarter from mic will Rob week's I'll who Lowrey, third to the turn report. last

Rob Lowrey

Rob. Thanks

company-owned months $XX,XXX managed to for of activities consolidating result the quarter derived third operations our activities in quarter and nine mining disclosed third Bitcoin for revenue, all ended of the and As XX-Q, our a $XXX,XXX facilities. as all is [minus] our from mining which house was our

company of the a due unfavorable did from to through XXXX January miners operate Additionally, May its economics. not majority of Bitcoin

Sweden. company's keeping during we this from its in to, the compare those compare of XXXX time to operations able the which included was were [XX] operating while management importantly, mind expenses in transition More operating costs, primary

the expenses or XXXX, operating decrease ended period the and $X XX% XX% summary, a $XX drivers XXXX months during comparison and The fixed of million a asset were three million month decreased in administrative -- $X reduction reduction or in three during compared So nine month decrease $X.X million operations. XXXX that the same mining million general months and and a comparisons. $X in a million expenses, three impairment in Bitcoin occurred XXXX in primary $X.X for million period absent charge

operating And in expenses XXXX in was absent operations. mining and reduction in fixed $X.X $X.X XXXX drivers assets to a charge a restructuring and million million XXXX, primary decrease in decrease million then $XX the the nine the general in administrative were Sweden, related months XXXX, and spend, comparing of impairment $X.X Bitcoin million which $X.X charge absent to in XXXX, million

$X.X As than the a XXXX. the the million months million company's or net the XXXX. loss same of $X.X $X.X XXXX ended than net was three And loss XX, less September result $XX.X foregoing, comparison, period lower the same month the in for period or the was million for in period nine million

That the And concludes moderator to operating turn Q&A. to for back I'd remarks my the like for results. it

Operator

time, were discuss. the and note Please that call. not Lowrey, ahead investor will there were submitted which the company in is Mr. at the liberty to Mr. litigation, questions of point this At ongoing several respond Ladd to questions regarding that

revenue does Joseph comes additional first who company streams? Our to from today build asked, the Kay, plans what have question

Robert Ladd

This question. that Ladd, I’ll is take Rob

capital with place eluded infrastructure land for place we others, immediate a that briefly electricity. minors in would our are to, be a investors and lower So risk, be either in I looking want at or or ways them lower oversight a essence as intensive to monetize lower way owners to, that to

having and operated. our dependent than it next And question So different Bitcoin still machines is while please. all be slightly revenue, owned it’s

Operator

A. Sebastian the Is from towards headed comes question next Our bankruptcy? company

Rob Lowrey

filing been facility new that from ongoing not address for the G&A sufficient all the the is the We mining operations. This spend. Rob is They’re And LaFayette as Lowrey, believe will paid the infrastructure as for. the or would once said, today costs variable at be, keep paid mind paid in costs they’re to completely to machines. on mostly sustain doing. provide and I'll reduced Rob operations all bankruptcy. capital of for that And company not our will of planning X,XXX cash question. And electricity relating the the have in, still costs mining But are cost as the are

Next question please.

Operator

We’ll take the question asks, stock Which why gone Robby. has a from down? price

Robert Ladd

something of business going the We, forward. our out most for equity statement I This obviously, that is, Ladd. by is control. from literally I'd as management, months point first of two better in Rob We last of to outstanding substantially. have that gone And the hopefully make had like party. profile that, to held that. questions have The many know pretty debt is the the it's of one sources, reason I several a third up as has that as well line you decisions conversion shares number guess result a think the

I at idea investors when maybe as their would or to So what to our just worth. head may the remind a is, also market business price, stock capitalization looking outstanding consider in develop shares not

a XXX value So about million right now, we of million. have $X shares market outstanding, giving about us

question. Next

Operator

does M. The next the from Tim How question currently debt company cash versus much hold? comes

Rob Lowrey

that address question. Lowrey, This is and Rob I’ll

XXXX, the October of cash as in holdings, and of note disclosed million. million on issuance disclosed amount nine company quarter have So the during example, it $X principal in that as paid dollars disclosed has about we company’s first XX-Q, mind, payable, keep on opposed made the the this was our remaining million. through was does over did just can common XXst, outstanding to note in cash. of months an as payments as to third And be principal stock common one on XX-Q, of $X.X debt, comparison stock. amount of But And for date

please. question next Okay,

Operator

question Roy mined all B. saw next from The comes Bitcoins? MGT Does

Rob Lowrey

This is Lowrey, Rob again.

amount take cash the So earned any as if policy is at it's may forward our will mass a always so, policy policy reporting period. of to period, And company of changes sheet, such of operating balance supplement Bitcoin we the commencement its sell the look the a the disclose end LaFayette end But been any hand of at as coin reporting And there facility. its on flow. company's going you with change. to at

Operator

questions from We G. three have Chris

are says, additional miners? there to plans question first The purchase any

Robert Ladd

Ladd. Rob is This

the acquire, both to in, more, in advantage are we to price the buy In with discussions and relationship miners addition have some on coming Bitmain X,XXX contractual coupons that miners. are based to protection on our

a As quite a result, are the we X,XXX as we bit less indicated anticipated. had earlier costing than

utilize that fully now buy ensure we So in space we'll few the container additional is next all that the idea the miners some weeks. to to have

Next question?

Operator

Chris from management's question what halvings? second upcoming says, the the about thoughts are And

Robert Ladd

is stays blogs our sites. that written production revenues and add is that in beyond more And anything The will the answer So same, in And that if of short half. our course be price same, sure it will I'm our cut not on down day, can Web other half. on be will millions of on electricity pages our the half. profits than cut get exact we since

state. So that's steady

again, repeat. Bitcoin, If extremely in no reason has last history price well miners. than been and making to two production you beneficial more But impact the up halving halving, for there halving is the look of two at to why last overall the of has

rate, very would caveat costs right about price. on much necessarily one But with our have information said, the Bitcoin that price that, because in current what that breakeven Bitcoin everyone be since halvings, wasn't But be our being would of So I'll it $X,XXX us we'll are difficulty on one, at and asked, difficulty breakeven rate, Post quantity, asked. fixed. X,XXX that piece number per that add the depends for also other the in now. is half price

Next?

Operator

the question and third company's cost? term is ask, the what is long plan in from And MGT's Georgia power what Chris

Robert Ladd

it to cost, its the consume just to is load. put out be Volkswagen number, going low-single-digits. including There's But think the forward. across will due manufacturers, give as power since per can reluctance a exact said, I because the cities price has the report, sensitivity as a not apples-to-apples hour, number, with a reluctance So we to XX/X determinable I the the street. But I plant on kilowatt say It's low-single-digits. we I other as city said,

locations that there in number at our the Our land current we're but or megawatts there's power other we availability. arrangements we've at only other few similar a learned would from Georgia grow, to long term that XX similar be not one. and being looking found have to also that location, And

which that expand, far. we on can money would prove we So like but avenues so megawatts make our XX depending to will on [indiscernible]

more So I first Any questions? that be think any would quarter. plans in for the

Operator

further on does have this participation third time. at thank questions today's today's update. everyone for their conclude call. investor This quarter We We do XXXX

any You at time. may disconnect

MGT Capital Investments (MGTI) 19 Nov 192019 Q3 Earnings call transcript