MIGI - Earnings call transcript Q2 2022 | Mawson Infrastructure Group, Inc.

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Operator

Greetings. Welcome to Mawson Infrastructure Group, Inc.

Second Quarter 2022 Earnings Results Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. Instructions]. [Operator conference this being is note, recorded. Please now Nick Hughes-Jones, will turn the host your to over Chief conference I Commercial Officer. Thank you.

You may begin.

Nick Hughes-Jones

thank Infrastructure is and hear Officer everybody, you the taking Hello time of about Mawson. Mawson Hughes-Jones, Group. Nick name My Chief Commercial for to

forward-looking Chief is be expectations well also this to are on to our may taking Please but Please this of forward-looking we Risks the as XX, presentation sub Officer, and me you results be Founder; today Executive around first, materially today, and cautionary text We Monday XX-Q today, disclaimer statements statements to make a short the Manning, August. Factors the today, through Report part Annual regarding refer the statements James Business, under XXXX, Joining presentation. filed our Ariel at heading read Form filed I Q&A to subject Chief These Sivikofsky. making of statements. in XX-K from actual based will to aware to risks our presentation We Officer forward-looking expected. Slide well on as in could are March those Our X, forward-looking XX, as our the conclusion and and Financial cause be statements. to differ that forward you the Relating current on need look as investor Risk sure as contained assumptions

mining and has NASDAQ Bitcoin sites the $XX is the million, close, five of under and the As USA approximately last M-I-G-I MIGI, listed night's a Australia. across market of Mawson capitalization Friday code on has

Throughout for and exahash, demand we installed we month Bitcoin of of in day. Mawson energy exchange XXXX, energy July production. bitcoin curtail to approximately was of reduce approximately continued response July, revenue current network believe end the programs, on based in our at our per operating use X.X participate self-mining the which capacity cost produces of As X.X whereby

bringing co-location installed Bitcoin of at and exahash, peers. co-location installed exahash hosting our mining the combined our installed capacity X.X the X.X amongst approximately operations Our self-mining listed end NASDAQ largest of to hosting as one July was capacity

EH measure As computing currently a slides, power. more an The abbreviated of an is you have the a these more speaking in basis. declines daily on produce exahash exahash reminder, online, a you

high operating second XXX We favorable Bitcoin facility a report of for that Bitcoin Pennsylvania we very pipelines Pennsylvania our today. our peers. megawatts mining This of to total are the XXX largest in advantage meaning of upgrading Sharon, which study amongst have energy energy for is X capacity the and strategic mining alluded energy recently infrastructure Mawson up pleased available is megawatts, that today exahash, given our one or facility in to infrastructure our NASDAQ the to significant for listed we mining at a have load demand today meaning Bitcoin confirmed to capable levels is received industry are

existing decline intention programs, normalize. capital continue our and to on further co-location we'll customers, fleet, in we'll defer mining in until expenditure our something forward announced later the touch market recently response instead demand hosting conditions also We presentation. participate continue And our energy to deploy sweat to major will

Manning. at over co-location deployed by approximately total we to by in carbon Resulting in exahash co-location to exahash we a self-mining X.X result, in on have that, hosting again And I'll QX presentation. James co-location agreement by our be of is a hosting operating miner the across QX at our installed largest approximately one expect will hosting Mawson something to provider, exahash With the self-mining later Founder, X As XXXX, X.X listed proudly net approximately anticipate Bitcoin mining at capacities amongst hand our of XXXX. peers. Bitcoin NASDAQ and business operations our zero we CEO also QX. and touch

James Manning

was for period QX solid Thanks, Nick. the a operational group.

co-location X.X exahash hosting million sequentially QX the hosting growing with from revenue revenue Our business in XXX%. over expanded or in XX X.X QX, megawatts materially from $XXX,XXX period or XX up to growing megawatts $X.XX in to

producing Our rising ahead continued in time of versus March of X.X X.XX up QX growth, rate an run of its XXXX. July's XXX approximately and high and interim exahash, exahash our X.XX XXX% self-mining from with self-mining slightly touching operation Bitcoin approximately exahash in all operations Bitcoin, June

We new our We in of result. production Demand also pipeline quarter cost added revenue commenced the overall Program signed in Exchange the Response late Corporation. of Stock megawatt Energy during reducing of X Texas to York shift energy in a mining listed quarter. significantly our or facility a part Land as the generating New Pacific with Texas second additional Bitcoin exahash We XXX capacity

megawatts at energy also exahash. second studies or Pennsylvania capable Sharon, We being also site load variable XXX our received for [Midland] X accommodating that site,

results. to Turning the our head QX

a generated operationally solid our quarter $XX.X business. was to percent The million up Mawson QX one QX, in revenue XXXX. in second compared for XXX%

was Bitcoin at million [XX%] up previous period. XXX% the Gross over non-GAAP revenue fell result XXXX. quarter. profit came price to QX versus XXXX. QX $XX.X up And slightly EBITDA million came good versus compared at approximately in the QX flat in The Our in considering $X.X the

in Georgia deployed out completed operating Turning to megawatts exahash. megawatt at QX. operational was build when of this commenced X.X XXX expand fully the to facility in of for QX, we XX QX. to in This our capable facility Having highlights work

also transaction Mawson Data shareholder entered XX% a a into We will when Infrastructure. become Tasmania in

out and strategic Subsequent mining period $XX million also facility July to we I CFO, hand raised Sivikofsky. scale large build a over end, to potential in in half the and capital. capital to Ariel our With will continue additional Southern to working developing Australia. of are for Bitcoin infrastructure for Tasmania that, increased in We digital hydropower transactions

Ariel Sivikofsky

James Thanks, hello, everybody. and

one. reflecting quarter to mentioned by in hardware million two, cash in XXXX of capital deployment Turning continued And $XXX.X and in in grew base provide quarter quarter across new property, financial from were some had deliveries, equivalents Bitcoin two. the to $X.X quarter from million Slide previously we X, down I quarter period energy Cash in $X.X end as from million James and will million $XXX in subsequent highlights Total our additions from two, one infrastructure plant $XX in equipment assets facilities. July. million and

from benefited in also derivative period. a million of reflecting the valuation increase favorable We $XX.X our contracts the over energy assets

our reducing pay foundry expect facility debt We debt to that down debt quarter pay We currently over Equipment monthly in million flow from our were one October to commensurately. approximately in XX two, quarter $X.X operational facilities. this quarter continue cash as period. deposits our by facility declined They've three. be paid off to the delivered completely in by this in quarter million down $X miners million increasing down Bitcoin to two, digital $XX.X to continued

to paid listed our delivered unique that, businesses. mining with an James payments, update to and co-location position back hosting our is and NASDAQ fully outstanding Our fleet in peers. self-mining With on provide for no a be amongst now I'll hand to

James Manning

Thanks expectations Ariel. forward X self-mining On Slide mining, we illustrate business. Bitcoin for our our

downtime July exahash of time at of sold of exahash all during due Mawson reflecting to from X.X downsized end having XXXX, period. As high deployments the June's operational approximately X.XXx capacity the of

maximize difficulty. until miner to network QX and market may existing exahash instead this develop and all the with market preferring reflecting defer normalize optimize Bitcoin as to to position decision assets. and we're and prices rise our capital by conditions encouraged in moves combined conditions XXXX This energy major to Bitcoin X.X change our We expenditure expect forward by the recent cost

and As revenue, of assuming slide deployed we a this today, to demonstrates, approximately Bitcoin produce XX.X a X.X million bitcoin network X.X per exahash current of difficulty and annualized fully this reducing to a to XX,XXX, price $XXX.X fleet would revenue be at Bitcoin assuming in rising of exahash, annualized million day, we expect $XX.X XX.X XXXX. and expect

capacity cement infrastructure megawatt megawatts from approximately further and our we attractive increase of our energy our in the anticipate pipeline. megawatts to by also XXXX XXX XXX as XXXX today megawatts QX end XXXX We

At and these making revenue all one USD quarter, over providers. division, revenue detailed XXX rising we from to paid third expand of additional Slide listed from services self-mining surplus We has now infrastructure XXX,XXX provide hosting in in this And million able of by hosting XXXX. XXX expect agreements further up to of XXXX for use to Mawson and customers. in hosting QX we to to which the with XXX in approximately hosting co-location business our this co-location generate the megawatts largest significantly then are megawatts from streams, party Our capacity QX. to end are megawatts have base XXX% expanded course we of in rising customer place, the NASDAQ co-location energy on given to the XXXX here to the requirements, infrastructure second X $X.X sequentially -- had

at halfway towards was end contracted front for interest updating hosting this over shareholders co-location operating due our approximately to July, demand Inbound look megawatts of be on continues XXX hosting fully the strong, and deployment megawatts. As of co-location we and forward our to business XX at in course.

like I'd spend some time Energy X, through business newest Slide the Programs. division, Mawson's to to Turning Response Demand going the

energy particularly over at use, and advantage of significantly local emissions across by volatility. participating look due support cost seen course. energy By energy the as today our a XXXX, Results investors able in we Mawson Mawson's This very the for our bill. managed decreases networks consultants energy By and at in additional markets movements to the for information parties. these have by and in Mawson curtailing is of team. Mawson also avoid overall providing energy Given encouraging use win-win -- moves COX month, course is to more receiving energy and programs forward the to and Voltus, known doing each revenue partner's energy benefit our our the from an curtailing so, same also these we've internal take swiftly all the process market time economic been quality, of in

obligation no under demand to response are participate our in energy We curtail programs. and

positive will the given balance the In that tested within energy quarter late our to as of to to this account contracts. value quarter in However, the reflect in initiated business. prices and of This in financial further quarter very two, $XX.X investors be importance have given the the that results on on program each required process our an be maximum under second asset extremely results of transparency additional the we million their to results sheet. we expected Mawson valuable to GAAP recognize quarter. in is provide are change energy the with U.S. been asset performance, This three Mawson's

facilities. second of the Pleasingly, quarter and megawatts diversification have and geographical spent hard very very in We strategic an demand, In megawatts only Turning in to course. energy advantage. a in Slide additional Sharon high-quality X, added the XX-year of new our due further megawatts long-term our considerable adding we Texas, first market, two not securing at in the additional in of energy focusing over puts with of tight the to resource infrastructure industry this out Mawson terms infrastructure customers cost the Pennsylvania as have second quarter, time anticipate buy This on we through infrastructure thesis, is well energy energy and portfolio option our as to provides by infrastructure. surplus sites addition energy fill at facilities. the to hosting these we our Central where but XXX us also infrastructure. we The evidenced facilities, to second low X the on focus is share we facility. some course XXX across global in

turn sales pipelines Sharon energy with available industry. XXX by existing with insight megawatts And second the ability of our The assets, XXX a in the ESG of depth signing pipeline as in first our one miners reality. and have of are of over of team. Nick focused over Texas most capacity to developing has them it our board at energy current and facility, management followed our positive addition receipt demonstrated infrastructure and facility, load the hosting touch on demonstrated of the Our megawatts our providing we've convert new energy now largest sits experience into both I'll to to infrastructure our on of Bitcoin focus the customers. Mawson quarter, infrastructure of global ensured we our pipeline we our at

Nick Hughes-Jones

and existing our infrastructure large has Slide portfolio. on Mawson developed a Expanding energy infrastructure James. energy pipeline Thanks, X, from

energy power committed to to market scale course miner targeting plus approximately expansion to current of operations. is will at power energy a brownfield Mawson Our XXX% we're be we leaves harbor the appropriately and have additional and to and the as sustainable Pennsylvania time, over of and lower major approved energy a secured greenfield is we been subject energy presentation, the between Valley being to facility. In reactors sourced the have come and selected sites. power new three months, nuclear as expand in and term opportunities mile two X up XXXX Critically, conditions. carbon potential these an of Georgia that put Westinghouse Midland, self-mining with hosting operating gigawatt reactors XX.XX X.X gigawatts, nuclear from site. Texas exahash. of to Bitcoin there reasons X sustainable of In XX at using next today included Ohio of in our operating which in grid. are co-location a carbon we these free carbon run lower at Pennsylvania, X Beaver be energy into us The XX where exahash one Pennsylvania. an to XXX by footprint recently plant the pressure sites Development plants this and initial long nuclear a Vogtle prices commenced Georgia, free from water capable local we brand the online. where we and just our additional megawatt We've This X, coming is new facility our for XXXX, to expect site is existing investor work our two megawatts threefold XX% bringing online in nuclear reactors, Vogtle potentially

Texas is accommodate collaborated time. the from of Sharon, substantial a as Pacific potential deregulated to their percentage second As from confirm across in expand the can received sources nuclear with of we to, state study a coming providing with by this one energy megawatts. Corporation, previously free land outcome exahash and with and Energy are Pennsylvania very facility, Group or a a positive acres load X this At us we of over market the to in in have Texas Land the of The with can up we've energy reminder the alluded site JAI landowners state. largest XXX our development Energy XXX,XXX of portfolio, facility carbon or of town Pennsylvania into excited Texas large the that opportunity

Pennsylvania Turning XX, Slide our images our where of can to you and facility. see Midland, both Georgia facility

high targeting low strict cost long process ensures selection are Our we life, and sites. quality

energy. carbon sites low this focus And the us. ESG of at energy our touched and for on on Sandersville, designed XXXX priority strategy Midland, Texas we in deployers net Pennsylvania, XX our cost carbon leases in of in the to through Georgia, Australia. in We briefly on term one years XX all free all in data Expanding of long us is We've sites. have a Pennsylvania, ensuring internally on years mix our and core We our industry. look of years lowest Sharon, XX our center technology, years XX the modular enabling years in carbon. our Mawson, at already lens, zero and ESG fastest use be topic is X

this, using supporting the to we and offset carbon carbon process. offset credits. addition In of we over residual XX,XXX XXXX, biodiversity footprint native In offset carbon wind in projects tons any

costs. We are quarter we now carbon reducing energy response revenue our in and offsetting assessing usage, process overall in and our footprint. curtailing of energy programs, the energy engaged receiving In demand XXXX two,

and trees avoid. X,XXX all every has alone the is Sandersville, is planted have Georgia which both academic supporting XX,XXX XX,XXX colleges, Bitcoin major approximately will also of S. benefits we emitting local is Park hours, very XXXX in also in across we over as We community communities something we other XXXX, blockchain. scholarship program these for U. a very community which of use on and engagement Pennsylvania, in the carbon trees the trees Mawson team avoided parties planted the is of as we in planted tons our One the health Year-to-date, end a arts the created Australia in member sponsoring county. time megawatt programs school centers a of local the place programs energy in local of block X.X curtailed We've we participating take football win-win system. X,XXX have local over and new have performing Buhl By active local operate, seriously. initiated well new in with the involved. sponsored and

from Lastly team. touches Slide Management XX me, on Board our and

of U. Hibbard, overseeing in Liam Our our development is S. Development portfolio Officer, Chief of with team United our by led Officer, States. Craig Chief Operating the Wilson facilities the

the You've years understanding cryptocurrency with and industry. brings already thorough stewardship of financial Sivikofsky and today heard XX team CFO, Ariel a from him joins who of our the Mawson's

across Our Board of energy CEO Greg and Directors, who of NASDAQ listed that, across audit Energy our AGL as by Keret, who Hughes, is hand and home. non-executive independent the markets, James extensive governance another Michael experience AGL capital to the businesses. presentation with to was experience for Australia's years Martin, years. I'll business and Yossi five chaired bring back it XX is largest for With has substantial

James Manning

Nick. Thanks

For wanted Board Mawson. XX% Mawson's senior Board approximately management are outline earned our our all I second fellow management with and to slide, just of currently highlight last and shareholders.

the with shareholder ensures huge game. peers So extremely we amongst all focused skin are NASDAQ have Mawson and a This is of we amount our returns. in unique on

XXX times megawatts to and in the to X.X anticipate significant Lastly we've the Exahash. over why environment. questions additional place, year a current in infrastructure of by in in approximately exahash with strategic business from XXXX co-location last July advantage X.X the of first of X.X We as to Mawson from infrastructure amount had end hosting Group? an growing this XX% in further energy me, our self-mining, before XX on months, we twelve move grown exahash summary, Infrastructure Well, invest business

most the energy We with on NASDAQ of are sources, predominantly sustainable of sustainable the energy. majority miners Bitcoin coming the nuclear one from our

Land We of efficient We're the shareholder have the mentioned Purpose place partners are Canaan very we most with Pacific infrastructure employers strategic one and XX% high have a focused Voltus, previously - Investments, returns. Texas in the of industry. as relationships cost lowest meaning on ownership And and Corporation. we incredibly insider our in

want XXXX. to back now our ongoing this suppliers to thank floor the in shareholders their take questions. for presentation support hand all the any and opportunity completed, With I'll to now we employees, us

Operator

of Fitzgerald. line Cantor Instructions] from you. first with proceed Siegler Our [Operator question. with Thank the comes question Josh your Please

Josh Siegler

you guys can was today. environment hi. additional some demand taking you provide I on right wondering Yes, hosting for my Thank if for question Thank color the you. now?

James Manning

Manning thanks for hosting. We've Hi a Josh, James question. got of here the inquiry inbound lot for

than we price view we're self-mining business time hosting to obviously our still the comfortable around getting at of out our there. we're very we could infrastructure the out I lot build lot and inbound focused, for capacity price goes moment. that there's Everyone's And at same more to we So as build So had think very the out but sensitive demand of a inquiry. a building

Josh Siegler

And the a have expect Thank hear. Do demand XQ size you it us benefit can impact to the then you to material potential you. help stability beyond? and in from great potentially energy program? response your That's profit on

James Manning

demand curtail that really Yes, peak avoid I'm big we want in those can what to but I forward two for start I had us times. Josh, is the pricing prices, providing as the don't allow to estimates, cautious op that to benefits responses us as say

requirements. As well additional from to that provide as responding market stream revenue

it as costs positive our I have to have as a produce expect have impact very well input in on a and does QX our cost overall effect on to had overall does energy - material a it our So financials. bitcoin

Josh Siegler

the color. Thank appreciate you much, very

James Manning

Thank you.

Operator

with question ROTH next with proceed the your Partners. comes Capital of question. line from Please Aftahi Our Darren

Unidentified Analyst

question. for Thanks on Darren. taking my Austin is this for Hi,

recently talk I'm Just varies one if that about cost currently? your pricing that can to for at and you've megawatt from average per all you seen develop on location-to-location? whether whether the infrastructure you Thanks. curious And change

James Manning

Look, It level. it very vary - does Darren, location-to-location. not high Hi great it's does question. from vary thanks

and existing and you're whether that to have own upgrades substations in, and we there's, or on whether which upgrades We're leveraging whether are will wires to group. So poles which location there jurisdiction to substation affect wires. depending poles the build

to a from the obviously of cost. manage So And it the in that lower lot think at $XXX,XXX does market. vary pressures that's of forward since per against infrastructure manage pressure site-to-site. that. and we've helped build But up infrastructure we're a that, us about We bit - we're I I than aware of inflationary little seen we've that average, that, On seeing we're that And very were our last megawatt lucky quite come but everyone's infrastructure. mid low year. think have in order of sort we coming

Unidentified Analyst

Thanks. Got that. it, appreciate I

Operator

with question question. Please comes you. [Operator of Kevin H.C. Dede the from Instructions] your proceed Thank line next Our Wainwright. with

Kevin Dede

Hi James, having Nick. Thanks for me.

more and both megawatts announced either to you say I Foundry customer the XXX to almost wondering this one, targets. luxury it's insight don't hosting know, You and year? might Xx a if folks I you by more, Celsius up afforded that I could your overall didn't another you. you've you increase address save specific then a if have set. really be Otherwise, year, was hosting on Xx next and maybe targets mean, offer that's

James Manning

that period us by is of do deliver I hosting installed what start mentioned, what seeing Kevin of that today. you're lot increase in we're I'd base a of - so demand think this a hosting. - as there's And with previously large Yes,

So infrastructure. we've installed megawatts over just got odd XX of -

down So provide by that - risk what have you. I confirm course the clients want they our we performing are hosting our wouldn't breakdown in helps we risk their around continue can and concentration ordering break as for businesses and customer is to of won't we'll customer boards. and customers be won't comfortable we contracts currently the hosting contracts that we build out, customer to don't But credit

Kevin Dede

Australia, that, well across you response right on congratulations can U. Mawson ubiquitous it and S. speak thank how the Yes, is given network you. to program, The implementing locations say, two in locations? the I'd demand what

James Manning

there. to and there. the an demand is got with all in which of curtail program Australia We broadly. can we have in we PJM market active response. our respect the sites up look, part PA, also outside And We've operationally some Yes

different curtailment us So Australia, - there non-response managing we've PA, to in that's demand And with bolters responses. market response the traditional slightly in that what American strategy a got it's new curtailment order past program. that and demand in helping

Kevin Dede

James. divvied I one not and you is little does - it's if a clear more offer your on I and deployment a me for partnership. understand Is would be power XXX last may. One apologize that up. guess you, Could insight I in that to the how lap through Texas, use that or thank Okay, what's just that hosting? fall entirely in self-mining a megawatts

James Manning

the great that of So Texas all lock do to size it And allows thing time. actually allows We're current got a can we'll we've to the that about are fundamentally. with and appropriate both approval. prices already energy is a build of can out low it's Texas it's self-mining I site because when as us a place. we're out which or of the a Corporation. Texas and we the is then with us focused build on air at combine any PA market head where in currently our opportunity. do, avoid and in guess smaller price series an with we to great turn comfortable a issues finalizing a, on I how partnership substations The on we combination guess, got Pacific Land hosting Texas CapEx It It's

Kevin Dede

queue. Okay in I'll great hop back the you. James. Thank

James Manning

Thanks, Kevin.

Operator

a proceed from question Kevin your Wainwright. question. [Operator Dede with with Thank is follow-up next Our H. Please Instructions] you C.

Kevin Dede

this Thanks for too, very one gentlemen. much taking

on Your machine? what power type of conversions to are exahash based

James Manning

Sorry where are Kevin? looking you at

Kevin Dede

at the some Well, and just And in - got you've wondering in instance, tariffs, was your And for basis what I'm great exahash tools? XXX just of offered right, in general insight megawatts. that just machine really you've four slides. terms output

James Manning

machine. Correct, X,XXX calculate on watts that a usually about we

we're So that end at looking we're comfortable the in of basis combination that mix units that Canaan the of mix some combination portfolio. so some, energy on we're consumption the of usually Obviously, MicroBT the our around a be of energy assumption. or units and efficiencies and running reflecting there. we'd take ultimately But that there'll sort bitcoin a the high units so units MicroBT currently

Kevin Dede

James then if output to wouldn't terahash what you And sharing? mind

James Manning

Between XX and XXX.

Kevin Dede

enough. fair much thanks. Thank Great very Okay gentlemen. you

James Manning

We're buy market, equipment - the assuming available on that we that can we're today readily how attacking that again.

Kevin Dede

very Right, could since you and you very on Well, might be and immersion to offer plans here, you good. that you strategy here much. Thank you're tests, right, insight wouldn't mind, if offer? anything still able James, I'm

James Manning

We're currently looking Texas at out. build how of emerging we roll part that out

a at have and We design like proprietary But market point out that do out current build solutions our obviously we most time. when I are also assessing there. think we're on design this in

Kevin Dede

Okay very good. getting the Appreciate Thank you a second at swing plate. very much.

James Manning

Thanks Kevin.

Operator

the There over the I now are you. will in call Thank no further turn Hughes-Jones. to questions queue. Nick audio

Nick Hughes-Jones

for Matt. give can It from a pretty Thanks, question energy in one comes please? Matt, energy go operator. I've meeting. next please on term, what's Pennsylvania, and you the got last question I before some the the submitted of ahead contract off detail the to cost through

James Manning

on as the can call well. I you're Matt. Thanks, see

$X.XX, five be under be some guaranteed So It's a same $X.XX. carbon our energy the mid PPA. to in to contract costs in they PA the year neutral. It's are are

the to converted the that and that we to us another realized responsibility energy. And change - Harbor June of was solution. that of respond contract and the there market So now liquidate a that period can it's it's have in as sort contract Energy a we that green - in in is the big our And and we for counterparty demand I that in a contract. think

Nick Hughes-Jones

it operator. I'll hand Thanks, now. to you back

Operator

your conference does and may reached you. a this have for Thank Ladies session. the we wonderful you time. Thank disconnect you and conclude your gentlemen, end and This have lines today's of question-and-answer the day. at participation

Mawson Infrastructure (MIGI) 23 Aug 222022 Q2 Earnings call transcript