Mawson Infrastructure (MIGI) 23 Mar 232022 Q4 Earnings call transcript

Company Profile

Participants

Tim Broadfoot	Chief Corporate Officer
James Manning	Founder and CEO
Liam Wilson	Chief Operating Officer
Ariel Sivikofsky	Chief Financial Officer
Josh Siegler	Cantor Fitzgerald
Kevin Dede	H.C. Wainwright

Call transcript

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Operator

Greetings. And welcome to the Mawson Infrastructure Group Fourth Quarter and Year End 2022 Earnings Results Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]

conference recorded. this reminder, a is being As It Tim Broadfoot, my pleasure your host, to introduce Chief is now Corporate Officer. Thank you, Tim.

You begin. may

Tim Broadfoot

and to Welcome and earnings hello, Group, you, call. annual XXXX fourth Mawson Inc.’s quarter Thank Infrastructure everyone.

me you and James Founder presentation through and CFO, the Manning; are look We Wilson; CEO, Ariel Liam investor today Sivikofsky. on COO, forward Joining call our our today’s our to today. taking

and today and this to are We to bring statements. may that I presentation. at part attention will cause expected. differ short disclaimer forward-looking forward-looking to make actual Q&A statements forward-looking as These subject on results aware to risks Firstly, around are also Please be statements. of those of a your materially we conclusion making assumptions from be based our need could the statements current expectations

certain about and We financial Q&A. will performance presentation non-GAAP also during today’s discuss measures the

find presentation, the GAAP the financial You available of at website. is our which measures reconciliation can our of end on

be well XX, forward-looking this Risks two, filed on March statements XX-K slide cautionary the presentation under Business. factors on to contained as text regarding Form refer Relating Please the our annual to in risk on in report to subheading Our XXXX, as the sure

With hand James that, CEO, it I will Manning. across our to

James Manning

Pennsylvania of our Thanks, sale into facility Georgia the moved QX as a was our welcome, CleanSpark assets we Tim, to everybody. and closed expansion. transitory period the all Mawson and facility for

through support revenue on and a our two macro market-leading During a self-mining; focus our I headwinds Mawson Markets the and these QX the price more revenue being total has with one and significant time, economy company’s broadly want and Energy through three, faced this profit to shares; hosting XXXX. industry, program. headwinds. model, a being little collocation; provides in to our and trade particular continued particularly revenue diversified converted

for million; completion Georgia of additional securing Phase for some of to from X growth, strategic for for $XX region. sites the firming PA; for include, Sharon, the on us PA the and our continue the binding capacity; of XXX-megawatt sale facility our highlights over in period $X.X up PA the of closing including entry million, to sale Midland, focus build-out a key our into Some megawatts enabling agreement Texas XXX facility

going to With financials run CFO, I for that Ariel year. summary, our am over hand through to the Sivikofsky, the to

Ariel Sivikofsky

Touching results Thanks, million, year-on-year; year-to-date for full of thank Mawson call. revenue million, to self-mining EBITDA gross coins. XX% on up million, up everybody record produced of to the joined XX% generated and and James, up $XX.X XX% $XX.X highlights of of increased who Bitcoin X,XXX profit year year-on-year; you of has the year-on-year; for XXXX, some has non-GAAP X% $XX.X

we almost this to depreciation Importantly, afforded with have EBITDA tax the in largest burden us, number. shared no

Pleasingly, colocation also in million solid XXXX. rising our business XXXX growth, $XX.X hosting generated to X,XXX% from

addition, margin In a new in of a of million had program the generated XX%. being at revenue $XX.X XXXX, Markets source Energy revenue in to gross that this Mawson

quarter in reduction proceeds shown as share-based four. reduce $XX.X to sale the balance subsequent million with to four, of payments sheet on partially funds been sheet with balance These facility of quarter received debt end. the million of the the Georgia hitting have Mawson in $XX.XX debt used from additional year payments

of assets increase million for $XX.X a associated $X.X a in as contracts derivative with highlights $X.X million sheet referred here in quarter in marketable assets to energy balance include; other held from million sale. Some securities; the addition an increase and assets;

at assets At $XX.X X, a of price per March of at share million, the assets on sit net shares issue net share of versus XXXX, our on $X.XX. were end our $X.XX based share million, per as XXXX, $XX.X

a XX% XXXX XXXX. our million million to of include; statement, some a in income expenses selling, the our half and increase administrative general to half Turning reduction in highlights $XX.X XXXX, second from year-on-year of in to versus in XXXX the sales other $XX XXXX first from hardware

XXXX ensuring balance of sheet XXXX. challenge that to in in Mawson us, the a with well in Through sales, focused are strong our and have on the behind we is for asset we strategic and XXXX capital grow operations raise Critically increases XXXX. placed

over provide to I Liam to will Wilson, now Officer, operational update. hand Chief an Operating

Liam Wilson

Ariel. Thanks,

Through Mawson to XXXX, events, coupled pay peak on as has and this social caused As model power operating flexible global touched developed prices worldwide. it a with dividends earlier, extreme we James diversified weather highly saw model. issues

favorable through was approach Our XXXX. highly infrastructure-first

model, to of an included top X.XX year Due to self-mining to operating the and in events online the ability XXXX exahash of the X.X online the exahash with average reached Mawson had XXXX. June these [Audio Gap] for

We first XXX-megawatt through PA, to megawatts forward our ramping up PA our and and the XX look QX our as online. facility self-mining significantly Midland, XXX-megawatt facility Sharon, QX come in of

purchasing for fleet. add to self-mining market the and upgrade our watching actively to are opportunities We

and a a of we and to appropriate exposure to our an hosting The Bitcoin model Mawson hosting pay record against justified earned hedge margin. stable hosting the continue million look hosting partners XX% hosting and a XXXX, of further to option was revenue future. XXXX, revenue for will during full in second at views favorable through which arm dividends run $XX.X continued our split, diversified mining which

the pre-holiday during was program would This competitors significant, offline. XXXX. stream, at top grid of resounding otherwise have hit of U.S. a storm, a On winter margin. this, Energy a when which across was during story the revenue contribution earned third our program ran the success period was in been Our particularly our million period XX% $XX.X Markets stability revenue

so climatic facility on Australian are the could attention This program. firmly and that Mawson the of They at all also for the believe provide participate our exited Mawson in opportunity focus decision and perfect QX, Markets We conditions was Condon. areas Ohio. these In Pennsylvania in made hosting. to mining Energy the

What some with very are you air cooled rare left cold favorable of climate, are weather mining are year. the freezing highly With with is days. winters events, extremely regards mild to XX% with warm summers to the few

and in is XXXX has can now our firmly Mawson pipeline. by achieved this eyes our energy be underpinned what secured on

and existing strategic first to near forward multiple model further look access sites in to future. Mawson announcing we and infrastructure-first the relationships given growth have Our attractive

deal look program develop to We for we sites, a search on believe to as which mix, highly add self-mining, will where or well. and either will hosting continue will Energy for our and be we lucrative applicable Markets to

we of are Mawson’s ESG to continue look program will the something for further proud and we XXXX. to incredibly program through opportunities is

nuclear of Beaver a is Valley station proximity advantage are our and certification. the XXX% Our strategic we nuclear very to proud

Midland, we we the we are Sandersville On in welcome have extremely involved recently the the education been were supporters PA, in to community to facilities Sharon, PA, three sale of to become this, community. years and arts, contributed healthcare and to community proud prior top active have grants. XXXX, and for with have During the our

that, pass Thanks, With James. James. will back I to

James Manning

Well employee said, Liam. team. Continuing and our and on today the an is of important our success to future part

operational is of the our Liam Wilson, the by Our led COO, company. driving team operational performance

our Ariel is corporate CTO; United then Hughes in CFO. General Craig overseeing Tom the consisting Sivikofsky, our development our team facilities our our Tim of and portfolio the in CCO; of States. Broadfoot, have Counsel; We Hibbard, our Tuzzio, Dan CDO,

ultimately of this and are coming and excited XXXX. combination years. that team any a sales we and into on now to brings confident structure, With knowhow wealth and from of personnel knowledge take challenges This experience the give into and many industries

and in material to Finally, Mawson decline other price. slide want the our the the peers we shareholders upon Mawson we of factors, consideration to everyone price be the prepared a external for sold see our value metrics. XXXX Bitcoin, versus observed Having as, price into to share market versus at price. such share we the to help market reflect in take several proposition current other the final share

our XXXX We summary, the XXX capacity pivotal which scale low-cost was team. facilities, at of Pennsylvania expanded from today exahash In stand of large on or Mawson computing power. approximately megawatts year X a simultaneously

facility one into hosting our early the million. this we and more self-mining throughout completed and also CleanSpark facilities approximately information expand with and expansion year. of sale our to $XX XXXX, sharing forward this in non-core And XXXX Pennsylvania on intend to look to We QX of

a giving their support answering forward Mawson just to continued questions of and look want With take you to updates for moment and the Thank in I that, thank any shareholders we you. to future.

Tim Broadfoot

complete. for presentation Thank wanted XXXX take XXXX. into opportunity thank now to With all ongoing their of We shareholders this gentlemen. to in and you, this employees, suppliers and support our

now answer any will We questions.

Operator

Instructions] [Operator Thank you. you. Thank

proceed Siegler from Josh Fitzgerald. is Our with Cantor with your Please first question. question

Josh Siegler

Hi, my taking guys. question Thanks Yes. today. for

you. first in hosting progress get love I I’d you of you a think hosting what one, seeing made terms for forward? are on partner moving Thank update an finding my demand the and in have to

James Manning

answer the from be who’s hear might of to sort He hosting day-to-day to would inquiries. Good dealing been Josh. Hi, I positioned one that. that with pass to Liam, you. best

Liam Wilson

guess Thanks for of there’s the simplest a ton is, Josh. inquiry through. Thanks, coming I question. answer the

of miners through through we off we hosting before. We XXXX facilities seeing of and plenty are hadn’t the dropped for previously for of now demand the that come heard have the that through looking hosting new market seeing other are from large plenty players

hosting there’s pipeline So large ready. of short, customers a in

are in some With on the be regards final the in hope with future, now. us day-to-day going stages the some that moment number at but nailing we through hosting to and of announcing are down partner, we parties we stringent near news a a pretty of hosting to exciting

Josh Siegler

construction Understood. Sharon, are to That’s will finish of to color. helpful the back that be what build-out to And and of you assuming love kind I’d site? circle CapEx required then of

Liam Wilson

take that. James, do a you to want

James Manning

Josh. Hi, Yeah. Yes.

than [ph]. more are delighted You

Liam Wilson

for Thanks. fully are megawatts Josh, already the first XX facility funded. that

all will first for wires transformers that that looking of and to online. XXX and get the the NDCs, execute megawatts, partner balance site. six The that’s we polls the So a to be the

Josh Siegler

All right. Thank Understood. you.

Operator

you. Thank

is with proceed question. question Dede Wainwright. from next with Our H.C. Please your Kevin

Kevin Dede

taking for Thanks James. my call. Hi,

exahash are was break us pretty more all was to go appetizing them? X.X and XX to a a you mix now, little look down? self-mining give that hosting. mix detail objectives megawatts on Your hoping behind X Can to and expect of you We wondering exahash I how and then on what

James Manning

Sure.

say at XX XX So we the and next of expect what we megawatts within days, are online be I’d megawatts is, to online. XXX sort

the that’s first So one.

the of us full is built XXX us on out infrastructure at about where probably due that. there is XX phase Midland, not megs giving in just is commissioning think whole and of balance facility credit So to are we meg the the credit

need when were site, couple we cans start we those come and to So on to in the intending to next weeks. phase commissioning. are and substation the the turning But is built on over we the testing are containers of market we probably -- of

close think probably online are. the it mark So is to where to about XXX we as megs more

So, to-date. and out and built that’s, obviously, being funded

is, to construction alluded one already and is next Liam finalized currently The Sharon, obviously, which also from we are, being perspective, a process been is but funded. -- as the fully

That infrastructure we XXX head out good a more us on are and where megawatts, like megawatts we build XXX built are. obviously So gives start infrastructure. total of

I or another almost outlay. three. XX, two, think see in to, XX megawatts of a alluded there site I very one small got There we quickly very, are low sites the slides, some we a you after we little that capital there’s CapEx, can have think, will it’s other very one, but on slide very sites on some turn

And and some with up LOIs locked we sites agreements. have got some those already binding

of well funded. and infrastructure the track having we is in are the down the infrastructure place So

that’s important think piece. the I So

we do company. it was profitability risk asked, of question to what do think, that’s really trying leaves we you picking then mix between and with a self-mine and and as that or us about part So is the the both really host, us optimize I

mix that any continue that are around we so feel looking at time, be bills comfortable pay their CapEx a a And like we in counterparties and or would on we to with both, for ultimately. that profitable bit looking the or of proportion self-mining are of security fund of failing provide hosting strong we relative to and do that obviously counterparties good what’s

-- do we a hosting just balancing partner. strong really, about And really it’s have it’s

also we just Bitcoin We data but like mining. a more of center the profitability are like the business,

So that we to are balance just there. trying find

the that are delicate of what payback based that around what a might or what going is manage ultimately return balance of the that mining facility the stuff. market and infrastructure our the cost is ready, we decisions be that’s and rigs profile additional what when CapEx is to and around had really, be And on is

have we over see just will we release you equipment from So in that Australia. have our got the moved

have some we moved We up equipment George. got have from

exahash to mark. So and we closer with turn gear on have the geared X turn we to get on that fundamentally

existing that our facilities bring So geared we have on forward as to what’s we the bring will gear on, what’s and mix moving to here we additional got then forward. in out look

Kevin Dede

going guess, and you. hosting? calculations. of and One sales out sort you James. other of choice mining energy Texas sell buying through, to mind Thank in helpful, Ohio is two is different Would balancing Very facilities versus for two the I the consumption versus

James Manning

Yeah. of both I to those. am really through happy go

So, business. down, Board, be a we real maybe focused a And to to the -- session. a group, wanted company last on and we be established as strategy we soul a operate as searching sat it strategy how where about did as year, a want we had wanted a and we we clear to we located, what and

and multiple our on U.S. one. are focused multiple traveling And a that of the -- big between managing outcome to sites, region. over be of all trips in wanted days we be the to do really We which we execs wanted was each

Pennsylvania. decided Texas we climate PJM competitive and be market, found like We we huge pricing energy the has like there market the with really So benefits. to we the

So decided the to we committed we want originally idea we Texas, the market. was, to Texas lead going although to would

energy those could more competitive refocus sell assets is a the and region, Pennsylvania where in our the realized that our bit Ohio, little in up Texas is climate really that We power we the forgiving. and market

why the move wanted we focus that of region. into So ultimately real up was that to

Kevin? So your of that answer portion does that question,

Kevin Dede

Yeah. James. Thank That Yeah. you. helps a lot

James Manning

sorry? And component, what other was the

Kevin Dede

Yeah.

what look the prospects your your would how you Just Pennsylvania market host we XX in and as you balance energy have you recommend sites what self-mining in you -- you How Ohio, allocate. Ohio? of strategy look that and deciding how would and will PA at you at XXX between -- and about will strategy? use your will how in developing versus I power do

James Manning

profit greatest I always gross the optimizing we guess, are margin. ultimately, So, that for

ultimately. a So we are we about because have profitability don’t we We do, sell our maximizing strategy. hurdle Bitcoin. Everything

And so to If we the decision. lucrative look model if market, be it’s Bitcoin, selling that. will we doing do will the most lucrative which an have be and that. ultimately at we that back more internal to algorithm, And ultimately which look helps to energy daily, mining to it’s we drive

So as I be are that’s great ultimately you, profitable as we modeling not we can to know a Kevin, a perspective is but as for be looking business. from what do

revenue most make really margin jump we So the we hosting make or ultimately -- the as to Markets between possible. make Energy mining

Kevin Dede

what Okay. Could for, Josh’s want just are bit flexibility expectation you flexibility in then we and partner sort consumption onion back your peeling The your us if… -- that energy the little guess, a idea and give making that you on question are decision looking on given of partners have the partners. I an to you of hosting

James Manning

Yeah. It’s a…

Kevin Dede

compensate find to that fit able that do them? how are you … something can you bill,

James Manning

Yeah.

book So are it’s open our contracts. cost Most plus a great contracts question. of power

exposed power we saw you price that fixed was had they price -- So unprofitable where we guess inputs to not because power. with not core are some has advantages, are I huge like risk

you per arrangements have are to they and where guess, seen come across hosting their a hour subsequently and ultimately. I of committed they similar kilowatt And they filed, some spiked power think prices companies I cost subsequently other with

have pricing model. in we our always So been transparent

model So a we recovery. have do cost got where charge infrastructure green plus we a

obviously, then, power the got and is a component business have margin for We power.

our very So that. we transparent are customers with on

want they a get people are operating because customers, arrangement, basis. to benefits our partnership they typically, it. seeing forms are And type power we on spikes, think of cost while that’s Wind be that where think the we a they don’t

off. turn very are they happy So to

of get -- And our new margins our how might customer, curtailment what what of built any consider get. benefit to the as we we of are say part margin benefit that any we see ultimately we I the our we contract hosting guess, into, that’s get on we

getting with don’t parts think it’s And prices that. making manage high right right power contract we need important to relationship our are mix customers, they So ultimately. want and our is they about the pay because of we and to negotiation sure that

Kevin Dede

Okay. Yeah.

James, hog I there? explore you or am and your days dealing not Liam’s sense last fear in hot immersion in and those not with few the making the of question, view the are given that and to climate right Pennsylvania, I of get call, Ohio the For going assumption

James Manning

a what we The stuff until per viable the product. through changes, very make doesn’t historically got prices, to emerging compete with depressed moment economic stack. have XXXX those Look, and a is reality especially to economics with cost been basis, at it it has this out the on megawatt hard it’s oil build

you are if to I do sitting of half if CapEx, that and comfortable given very have sitting that I But are, a you trade-off are guess, balance. think with I to explore pretty you OpEx are then and we between logical a all -- OpEx there’s think a CapEx in climate, that. But it’s in and reason where we

I’d that in up hottest switching year you power are the wake for a so days those of or somewhere of realize sense hours like a see pricing Ohio, economic also in also that few day makes the well. days as you for and off keep typically PA few say when the a and lot they in highest

don’t of operating and it So region climate are economic consider, given see huge we in when overall, we you amount the sense. makes that just a

Kevin Dede

Perfect. Yeah. Thanks that James. color. Appreciate it, for

James Manning

Not a problem.

Operator

have Thank further… you. Don’t

James Manning

have on don’t calls any we questions left -- calls. So

got got I questions and more well. a email couple Sorry, in some came I have have then as

a… from got have here who’s one Bert [ph], So we

Operator

Okay.

James Manning

great supporting … shareholder, are you?

Unidentified Analyst

Hello.

me okay. guys hear You

James Manning

from Great you. to hear

Unidentified Analyst

Yeah.

very congrats few with, the a pieces. clarify want moving just of year out closing I on obviously, So, lot first, things. strongly a to

closing we about agreement, few a that? months of $X.X about that? or Is time million. Did weeks? How a expectation Texas the the think within few and should about You talked that talk you

James Manning

Yeah.

in in that close we would I to at this expect April time. think point

Unidentified Analyst

Okay.

So it’s QX will other were that there And clarification other of considerations XXXX show but cash yet, just in form in on $X.X shares obviously what second a sounds quarter million be not XXXX on in reflected than QX received that like. on it of earn-out like most CleanSpark QX the you the stock.

So them on that as sit fair cash and as either stock now, your of they sheet they sold a assumption? became balance is the or you

James Manning

happy have of am CleanSpark those we to vast confirm I all majority that sold shares. Correct. the

Unidentified Analyst

Okay.

balance even So basically not so... sheet strength on the it’s in form is a in there QX that pretty cash yet, substantial of showing

James Manning

XX a much strengthened today, Yeah. overall. position December in stronger I we position The between, are and guess,

Unidentified Analyst

That’s question great your to targets. hear. Then on my is

in what’s You targeting short and to are taking million self-mining average X.X to the $XXX and megawatts XX% very the specific you me going Midland for Bitcoin going this you since from you mean you stronger million hosting going and the pricing infrastructure pretty those demand the XXX going XX already guys get obviously, through while year order, calls, able your talked alone. And walk XX% a were your in X.X the to on mean, walk call, a focus be up only obviously existing to beginning have could basically happen to to contracts. imagine or I are I $XXX to capacity gives with revenue as perspective, of more negotiate from in to you how and partner. and year about on you be see Could could from million $XX -- me increases, those are there? you through I substantial I

happen you average an rate end that the is obviously, that, higher going number about and me which to share exit how XXX-megawatt average. would the your for see assume but maybe of for for them, talk to year, be to Midland a could I that than year in So get what’s the through

granular give on maybe that? you are going to could on execute we how more that, So information

James Manning

will Sure. let Liam I this one. take

Liam Wilson

for Sure. the Thanks, question. Bert,

Maw I Midland that think XX first is thing turn the another to -- on about facility consider is the to megawatts.

weeks, megs look and is straight megawatts reality on. be we at Kevin’s when at away of going The XX moment, are that. are realistically, XXX looking we to to question after the then a Mawson earlier XXX that megawatts at So couple in we at

over rapid the period. next the So ramp-up is

probably that in then that Mawson and other we Post the looks on. work. levels too, have that at various of have do Kevin, mentioned at, a the commitment we sites not deck we All this of substation and looks number you which sites have answer but an have is sites at the require sites to all we Mawson the

look dramatically get look these it actually for, those that; and So look don’t the needed for facilities is substation the we we that CapEx; smaller for that require we sites B, time work, online. cuts sites the down to dramatically it reduces those reason A,

the some from getting within actually the at we at, walk-through initial to So of XX that online facilities that days. are for is time moment, we do the looking the power somewhere

-- get could Mawson to the easy be there. eye-opening So actually quite to very it’s that’s perceived but -- numbers, ramp how we what for it’s very as up

once see so with I the B, time roll will CapEx; A, mark get ton off you do we a of Midland, the And require; our which not done. get of other think, and at Sharon, in facilities, expansion ton numerous to Mawson XX-megawatt expansion a XX-megawatt quickly

Unidentified Analyst

Thanks of are short clarification. exahash from your hand, partner and here in And ship already is am weeks that to fairly you in on Australia very of that ready you obviously, period up a or a their in Perfect. can on immediately are or time come that on you what and Pennsylvania able sizable amount sitting connect also you hosting have what months, between end. you assuming and I for

is you growing sides how the order, both a of at short assumption? in least correct kind you have business, that So visibility into that are a of

Liam Wilson

That’s Yeah. correct.

As we the... in have somewhere

James Manning

That’s case. definitely the

Liam Wilson

Yeah.

to to as turned that the and ready their the We X.X have the go of of to remainder self-mining on, our have balance ready go, partners, then we be of gear somewhere exahash hosting X.X in gear exahash to well. equipment of vicinity

don’t number feel at have for we initial that’s X.X be I all? that exahash. struggle not to got think, hitting So, Mawson, We a it going was

Unidentified Analyst

forgot year, new I the range, part Ohio going are last of the brand well could Does side margin. am sites on are flexibility. question the but they million plan have necessarily? million with as going the -- in similar to I familiar you what’s that you $XX obviously, be business substantial to here, in the revenues the which with in very are created gives Okay. $XX that Pennsylvania, or is XX% And talking you not a about, another Ohio

James Manning

I will take that one…

Liam Wilson

Yeah.

For our…

James Manning

So, was… yeah, that

Liam Wilson

[Inaudible]

James Manning

you revenue So program Energy the has $X success are This We a saw in Bert. of for we Ohio we million right, are Markets December. that. worth -- been revenue even phenomenal us. will about similar excited and have really a

short is, answer the So yes.

I and able we thing given be going XXX and the megawatts And to grow is, well. of XXX go in the online build XXX to think Midland will up, revenue to more as coming near-term. in -- important that XX are that Sharon infrastructure XXX stream we worth in from

the revenue the grow to opportunity Energy So Markets has substantially as well.

Unidentified Analyst

get XXX that’s mean on so mean deck, about were or times megawatts. X put you if that’s I million there out just I guys what of at EBITDA. the you talking exciting. and to your size looking you you able generate Yeah. $XX I just am of, had

is successfully. are was last on So market am that the just it sentiment that’s exciting. deck the flip you today not competency that right where a a Bitcoin about positive But was to was your that when imagine basically stock the $XX completed core value, on mid-XX%s using that from of selling and down put into and My Bitcoin at, was was talking on what and realize I XX% lower converting was by versus that I equivalent that way the obviously, its slide your looking now. certainly you is very didn’t have sites net asset sentiment I question you market your its when to that are another navigating you discount in --

mean, disconnect discount pricing analyst you So you opinion sitting on but following else to do discount on long, is already coverage that disconnect, and some an job you is a are or great it’s that everything being price today share were What a that Bitcoin question, you. and the at in equal, XX% your they what that they call today? long creating have on to think do I $XX,XXX XX% a your

James Manning

complex Thanks, I a is tough mean, them. it’s and answers Ultimately, it’s of Bert. to think I set I think, which a for I us. know of long question all yeah, don’t XXXX

about of about was our part hosting continue think time pay, have on the there lot think being they continue but to and of security, people I they a Celsius, of a concerned but concern very pay lot that. we I got got food

I that concern and is to we that’s it of everyone seen paid with than a realizes everyone to And continue facility get think has them. the less and we continue operate

pretty that. around we are So comfortable

obviously, don’t it’s a year -- of just Look, the I fair I are price miners we got year, think tough a but put we had last And reflection. got into think unfortunately. unlocked section the market,

is disconnect is I value big when value where the evident discount think we think between, is market a there’s and the think of ultimately, and NTA it. takes I to

else I think in than less capital pound-for-pound, put market. more with on have anyone infrastructure we just about the

have we have just capital on we think don’t for I think what So been we we accordingly. rewarded said of we share that and would deliver good been actions price have stewards I delivered and in

If we of raise and similar group capital two number I today. sit the a peer one amount of think, you other -- number between group,

one us, ultimately. markets that don’t out is you hard capital but for that’s So problem I think a control we call

every drop our on to had. and profitability we on squeezing have of capital But return what we on can get greatest a our great we is balance and and last sheet do business getting that return out what higher profitable a being most focus the

Unidentified Analyst

as well. of Understood. ownership level a you And Sure. inside obviously guys high have

But So you. Thank price it’s share up have That’s certainly, shareholders. hopefully, pretty take and have. for what and all you planned keep value of, and work care for have should exciting skid to in the XXXX the I and game. execution you great

James Manning

Bert. Thanks,

Operator

Thank you.

James Manning

one We more have I believe. from Kevin Dede,

Operator

Kevin, you may proceed with your question.

Kevin Dede

this facility Thank and of you. or came up couple discussion sale. strategy guys I infrastructure-first maybe when Georgia your keeping strategic over or where you back, to the And appreciate as I as original year to it a of your were world. Cosmos would I me perceived you are through think whether back James. Thanks juncture get not it. thinking am at development sale. to the in taking this you times wondering how want I that work you discussion the shifting close to Mawson was of view for in the last back take I your building to maybe And are

our thinking maybe could there? reset So kind you of

James Manning

Yeah. Thanks, Kevin.

both is good I good think, We look, scale, have of understand the build megawatt. builders we efficiently, to it a build to cost ultimately. recognize bit how we what little good are per We very at and build it infrastructure. we are understand very how doing

And to think or in expand to and sell hosting as of business, customers well where those part our an as see sense, we sites that strategic manage a opportunity for either with business opportunities as profit. there’s many we hosting partner

where we us, the stack are importantly So, we capital for recognize in where are our we market. in and

would within we very well much. only can deal industry to regarded But with think and a we lot do like the counterparties are So I so of us.

those us own then do identify take and to potentially good contract, attractive or good sight ability sheet some customer well, do our some a of an them flow develop flow see on transactions. and So to move build on where can and deal of balance and recycle it is them option the those -- for on we we that as

So very fights. recurring get Kevin. looking is building angles recurring revenues we all with and business don’t focus sustainable on larger a just you selling much revenues ultimately are the But ultimately, at

program. the doing it’s combination energy mining hosting, So about of the a the and

And then portfolio go. we the optimizing as

portfolio sites we some some the would a focus operated in by the acquire we sites, third-party next built, slide and maybe we can once be on identify better as we these So of identify. that

we we build very out. about structure. So and realistic our are what can I they pulled And run it think given capital

of probably that ship of the in with are high We concentration business. largest of a them high owns, the managing ownership one or team management concentrated largest the

really we on on that, return of equity. return because and And capital focused on are that

see don’t want very much -- for sake. we a capital So delusion to growth keep

return right profile. we focused sure very have are So making we the got on

Kevin Dede

James. Thank you. answer, Great

James Manning

But is… that

Kevin Dede

time. the appreciate on Yeah. great taking that. I return on for was answer Yeah. with focus Thanks hearing the Yeah. capital. a It

James Manning

we got Perfect. a to of am are I longer a up. just a time from know take than queries a bit I too of written perspective. I have getting before questions. just couple couple those wrap we going

So first here, have I the Dave. got one from got I have

Liam large amount X that, the in sites, Pennsylvania. generation have You thanks, for exahash on assets. a at your message. has What’s might let of Dave, and it My across total infrastructure these use could you assuming latest generation latest capacity have NXP. the over exahash you amount run the in math based I of

Liam Wilson

question. James. Dave, Thanks, Thanks, the for

then XXX expect now. megawatts, XP an for I under math megawatts. online. if on we roughly So looking But XXX could you working using are out the to units you are X.X get the be that am just would -- just XX,XXX if exahash

you and the just If XX,XXX under are then shown we sites, are megawatts, is nameplate public look you are exahash capacity, at X.X run if which at XXX units at you XPs. Midland in the two actually which their

you If X.X the if standard you are a you XP. or just exahash X.X run at SXX, run

XX,XXX those at like, that’s our is looking numbers what moment. approximately are sites consider units what in So we the

James Manning

Liam. Thanks, Great.

Liam Wilson

Thanks, James.

James Manning

is MIGI next read a memory, the have assets. expire, from they i.e., year. do my from on this, one from one this USA When it how in on does analyst I is CLSK Josh months XX was long ROFR Next September report, have this John. --

Given become how the recent they cetera in relevant? could with et M&A the this space

first with date. a There structure those over part at Thanks. September refusal, expire the of was I and first offer in was USA. It’s of that, the might assets with CLSK six months rights take of that one. rate select right Yeah. a

some are longer a and up the is them coming just which XX-month tail. to expiry have of tail, some So

that, you and So but was correct it XX in are six months sale. months

I Look, for talk can’t CLSK.

have at acquired They other which We Georgia facilities obviously am our a in facility, built like there. would over have respect facility we and look great Zach due we a and our world-class his team there to to have course. they sure have I think

everyone want lot industry the or cards potentially that. and and the part, Mawson obviously to everyone there’s is see with making that if any that be occurring of and be are But in shareholders. this there for on make to to if will looking sure to obviously we talking cause year to a are I any table sure speculation there’s don’t space, playing out other we with in But right wants create preempt and anything counterparties M&A the deals opportunity we value at on at the

And on I it’s all think, the focus capital. back to return Kevin’s point, on

it. sure squeeze So we out every and drop of making last

extra identifying can much we to value. are we create focused very So anything on

a I Ariel might off. from got take I have have What’s one situation. debt liability the and I that pass got to one current Aaron. mail. to

Ariel Sivikofsky

speeding of Ariel million to just $XX and XX.X%. It’s trade of It’s -- a borrowings. end everybody. off $XX.X about payables year debt combination being and Mawson. trade payables Hi. current The balance sheet the Borrowings at Welcome about is from CFO million.

James Manning

energy is have for what From do that power your was, question, the might my industry, this Aaron, nuclear cost then, last I -- how it’s power, one in Thanks, the And long I analysis have the this sector, Thanks, Andrew. if question. the got green recall. among low Pennsylvania, is I of place? you lost which in and of in

The Pennsylvania power market a and power, of would hedge. a have combination comb and PG and -- we we got

the market locked at X.XX PJM PJM mid-$XX the in is and is Currently our high-teens then power So power. to spot megawatt market, market in megawatt. per the the per in hedges

per So $X.XX per hour megawatt megawatt between $X.XX and hour.

competitive else power power competitive anywhere it’s say USA. and I why And it’s the that’s within very

a you years -- all have right, that’s And it’s are nuclear zero run hedge four and power, it. approximately left it’s it to carbon. XXX% for is approximately We green on

is the really we important industry. and from power a zero that it’s ultimately a point to result very ESG us for will sustainable as towards an considered being believe be because perspective and that, important are it a carbon for industry business sustainable entire moving that that’s we So us on in

that criteria looking at they is like So ESG lens what from leading think and are and part charge the do. when mix we we important going are we generational to on it’s investment our the an to the that power of of would new are what’s sites,

And path to always at not carbon need a look being what’s look to site. site will negative in at site a some say, this say but the neutral it’s won’t we to we generation, and with

site makes what that’s for in and our selection. So, sites important us

I up real getting people like curve support. I’d -- like thank wrap wrap presentation. that, and their to their great participated for questions really I’d think balls thank the this the today. that I’d too all with in call like many up to today’s our for continued to shareholders

to sign grow. loop So, look the and everyone with thank everyone forward to keeping we as that, and like off I’d Thank for to you. XXXX in continue

Operator

today’s conference. concludes This

You your participation. may disconnect your you lines at this Thank for time.

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