Earnings call transcript Q1 2023

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Operator

Good afternoon! And welcome to the Mawson Infrastructure Group First Quarter 2023 Earnings Results Conference Call.

During the presentation all participants will be in a listen-only mode. Afterwards we will conduct a question-and-answer session. [Operator Instructions].

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

begin. may You

Tim Broadfoot

Welcome ladies forward to of make In to and forward-looking gentlemen, operating the this Infrastructure for the presentation presentation Group. company. Mawson statements. In we we financial look and to today's you the updating performance QX may presentation

recently XX-Q. We attention to full regarding encourage and statements, read bring the our X and your you in disclosures filed most our these disclosures on XX-K to Slide

In the bring use attention a of addition, financial to non-GAAP those of for presentation some today's in metrics XX metrics. metrics. your We reconciliation Slide

all a dynamic industry. markets utilizes a in allows within revenue generation for its in standard robust revenue Mawson navigate associated approach operations. to This three-pillar our business model, to volatility the

Mawson our currently XX,XXX have facilities. at miners hashing we self-mining deployed its has and Firstly, operation.

into with XX the Secondly, hosting megawatts we over megawatts additional year. the planned long-term are remaining of deployed and entering contracts, XX

Mawson program. load during also Lastly, earn reducing returns strategically we periods. and have by pricing enables high grid, Markets our margin That high support to local energy Energy the risk, demand mitigate

operational I from will over Chief the our Officer, the Wilson now to through you quarter. to Liam take Operating hand updates

Liam Wilson

exahash Ohio. with started Texas has XX,XXX the Thanks Tim. strategic holding million. two addition XX just $X.X miners, capable the megawatts of land our facility We This bang. of equipment. leaseand to megawatts further of XX under of announced of with facility Mawson XXXX our a sale transformers Texas has the Corning, capacity, in Greenfield We with sale a new complemented

right hosting looking for for partner are the this actively site. We

have our our first On megawatts the the of Corning, build of at Sharon the mixture a secured we next facility as Operationally, month Midland, of the out be top megawatts Pennsylvania. at as in an we XX well megawatts the Ohio, additional during Pennsylvania with will self-mining XX and Midland, begun have facility, site hosting. XX facility. live The

We XXXX. to come that through having forward looking power online QX, are

We firmly believe that Mawson has operations. best-in-class

XX%. was Our up-time QX through

hours, through With were being revenue we the curtailed driving X% stream. when another

XXX online. XXX sewn-up have QX. megawatts megawatts We XX foresee megawatts We online having with through currently

What our and within was Celsius, Ohio Pennsylvania peak The and QX being mild which sit carbon X is free, with sites weather. that makes more average nuclear, temperature they also perfect cool both or and XXX% XX are winters impressive is point mining summers. Fahrenheit through

be which in strategically Mawson different locations, ways. provide acquires where variety in is an curtailment located option. conditions, to markets a in locates and operating We of assets specific deregulated sites our optimal like

grid. Most a reliable both air cool a we energy BTC inflated deflated low need near we However, is and operating We importantly, major workforce accessible model cities. climate, cool which to a and like prices. preferable love our at means the readily accessible

climates in advantage Our capital. efficient having strategic not efforts parts certain of huge in it advantage the allows a of on cooler operate to deployment our This decisions is the the immersion. to of U.S. to comes when us concentrate

leading market for in solution climates. manufactured the to which warmer miner, $X,XXX a approximately in per needed per MDC designed systems in-house in-store effectively This price. miner, Our is is farms mining to is operate $XXX comparison immersion

of energy in and one most pipelines the has the solid Mawson robust industry.

in Midland facility Our by facilities. flagship and Pennsylvania supported the Sharon is [inaudible]

we’re discussions market final soon. We excited in the to hopefully additional deep for which in also are sites announcing about our region,

has execute, and for XXXX our With solid, is but Not and a and ability our very set secure and reliable to beyond. execution history Mawson our only energy successful up itself leading. pipeline fruitful is pipeline of market

set XXXX, on our in installed targets the units of with by We XXXX. are aiming to Exahash X.X XX Exahash end

approximately year Exahash of million or current revenue. X.XX at price of Bitcoin per $XXX,XXX producing translates Our day. to Bitcoin equates the up per units is which power, moment, $XX mining XX,XXX X.X the of in This at fleet consists to a capable which to of day computing

We where test are the place actively looking large to and to decide new order. next our we units moment, at as when

in and the look deployed, for We pipeline to additional this miners our on due to space market have be updating course. in forward

Ariel With that, the will Financial Chief it I to pass you. for Officer, Thank further. Sivikofsky

Ariel Sivikofsky

Thanks, call who everybody Liam and the thank joined you has to today.

co-hosting program the of generated financial the from one contributing mining some the Mawson Following revenues of for Pleasingly, on to already, a XX%. of solid XXXX, $XXX,XXX at $X.X million. million revenue generate another quarter, of margin the gross growth Energy operational our quarter Markets measures business highlights continues $X.X at discussed with

of a similar loss loss and million, of one, U.S. Quarter was same $X.XX sale stock. $XX.X securities, being assets minor for being amounted net being a The result The cost loss marketable million. $X of adjusted net $X.X revenue sale million, the contributed of result CleanSpark primarily The million $XXX,XXX. to period last revenue, GAAP year. of EBITDA of was the EBITDA the

This balance total net of that the one and respectively. closed, the assets sheet, to $XX.X million, end value energy trade borrowing program, at markets liabilities million. receivables assets asset million, and million. $XX up in primarily in as other $XX.X fixed $XX.X $XXX.X of $XX.X million, position with million quarter assets and and to The and of being a trade relating of derivative the other results to amounted group $XX.X fair to Moving the amounted $XX.X made quarter payables million, of million

growth a of reporting, total margin two a loss $X.X cost statutory $XX.X minor same net in slides, the at achieved. $X was million, and overall and as our the $XXX,XXX summary revenues with of or of to of XX% was million million, loss achieved. adjusted an of profit revenues last similar to $X.X Now, million, reconciling of from a previous period from Further, year, EBITDA

Liam, of the with further our million quarter events asset earlier quarter, $X liabilities Texas our that in liability $XX.X by noted end, to the and strengthens million, close transaction, of out an raising, capital million and It successful total from one reduced million. by $X must this balance As highlighted is detailed the of as being $XXX.X assets and net the previously, be at million base amounted total subsequent sheet $XX that

Now, to I over Tim Broadfoot. hand

Tim Broadfoot

site Mawson’s an to has a operational have to and During making. nuclear, we its non-carbon that perspective development corporate This hosting operations. model power XXX% utilizes led mining responsible, decision to and like operations, emitting for

We also support grow. Mawson partner align that to and support we who the mission people community believe and in the local support our initiatives local us with

very shareholders At employees are community, for today. local to that are enable the we us Mawson, and we company that be the grateful supplies,

our Founder, hand you now and CEO over I’ll to Manning. James

James Manning

of the team. leadership executive is knowledge The to team experience at employees and a our our and robust down diversified level Thanks the team starts base Tim. board at and Mawson, The through the the takes management the that deep business. drives cornerstone of create success expertise

and be operations Each to the excited and the in place. every company to valuable we member support are and to the of company this addition drive through XXXX able brings a beyond with

important The value have they have us, is and Mawson the grateful is real undervaluing for are team we the we with. Mawson the very shareholder we and market brings to base at The to that provide company at support and us that. trust

discount the believe of there to the trading the recovered. in opportunity the value XX% a on of resources which a We and there's a and be tracking assets, the base they is net value As is we this large highlight for MIGI solid at invested stock slide, from Mawson.

and look we year. and our quarter relations we next In deployment operational which We has way shareholders very forward working the the on, with to forecasted our in hope continued have started our grow to to Mawson growth value same goals stakeholders look and all the our Mawson, we to the historically summary, forward of to been achieving of we as company. hard deliver

XXXX. presentation like all to their throughout suppliers to opportunity XXXX complete, support and now and the shareholder we’d With this ongoing take employees, for our thank into

now take will any questions. We

Operator

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

Josh Siegler

my long-term Yeah, an self-mining outlook to all, guys. you're of afternoon would hostings. first on how thinking on and about versus for guess today. hi I taking question company's the love Good get update thanks

James Manning

James a others sites some my announced. be here, know Josh, refocused and we Midland, the of turning we're the definitely on cough. that Josh. there’s to are in Thanks, other We're definitely and mining aspects. commissioning at on been midterm apologies and couple for that we've

in Obviously of some hosting some site. But served get customers are us our we get host that definitely looking to well, online. and continue we'll and to up the mix self-mining

that So with definitely mining share. that’s looking Ohio. ventures, self-mining in we whether see at that public equivalent some commissioning we And online the mining digital looking with apply some of part of time is to and hosting our arrangements do online at at how or We're part equipment right getting that or proportion joint equipment the of have. in infrastructure the we

quarter in GA, and one the was whole coming of – that the in we’ll many we this megawatts the between – had toughest us and time lag we've running have but out fully haven't ways been realize PA GA we and online, PA commissioning we've for got moved We as quarter. XXX online

to really have we're So on. excited that

You'll see a large accordingly. online hash jump in out

Josh Siegler

little follow-up, understood to Yeah, focus then the I'd new for regard. like bit my And facility. a Ohio that in on

demand thinking could Thank and a power response have access little do you bit at of if dive you cost there. Ohio energy you're similar Specifically you. how into about to programs

Tim Broadfoot

one. that take to going I’m James,

James Manning

Perfect.

Tim Broadfoot

Good Josh. day

market. PJM site So Corning, sits the within firstly, in the Ohio

to as we're these we're pricing and going think certainly pulling cheap levels it's confident at be index in We a very whole. So It’s moment. the at attractive enough. that

be moment. won't pulling the the from hedge we'll looking it We index. So to directly at up be

of mixture sites, hosting. regards the With split self-mining that'll a the and to be of

it. are move kind of the like question. We with second Josh, on of your number initial forward who would and a I've the significant part conversations of interested are site in forgotten on to parties just And

Josh Siegler

Thank it. I you much. very appreciate

Tim Broadfoot

programs and it’s Sorry, curtailment we have, have asked Pennsylvania. Midland, same the program that I around believe curtailment the we in exactly that curtailment, you the yes,

same, demand we through we So the have all and response same [inaudible] the programs. all access energy, to have and though access to research

on model well. an we're So that bullish operating as as pretty

Josh Siegler

Got it. Understood. Thank you.

James Manning

sort answer I've just add – I'll that here about asking question been a rates. with question to power posted online, another of also

So we're PJM market. in as Liam alluded the to,

at some know kilowatt of that are range we time. hour of but give into to a beyond hour in $X.XX we $X.XXX the you and And at But that high you of in seeing [ph] as good feel, hour, power and obviously old we bit last power kilowatt as to you a and low as pricing hedge hour how rates a of here market and taking kilowatt Midland per we’re so some we our kilowatt a over looking path. hedged have are we're $X.XXX power seeing power power today. know $X.XX as that volatility power In market the we're some

in it's power competitive really the PJM got as energy. cheap, nuclear we’ve we result strategically market. and contracted So that It’s reliable

So well you zero carbon overall an an I power think know quarter also so. but our as perspective, perspective which from overall, to from from power agency perspective, needs industry from the our

the to there. where think We’re I know part ahead think trying the those to I we’ve got clean a you that some of regulatory mix horizon have look in really energy, but you risks that’s when important story maybe of on contracted the

Josh Siegler

the I all color, for Thanks Great. it. appreciate guys.

Operator

Instructions] [Operator

James Manning

got several the via take coin? final we've will want one? self-mining the you What questions weeks the come Alright, be pricing to of have Liam, of web do that that in in kind interface.

Liam Wilson

visit. was – the is mix in your Absolutely James, is the hosting self-mining what our final final that and mix

James Manning

Correct.

Liam Wilson

thing. Sure

the Mawson. and percentage self-mining about a speak referred because see is months, us lot Midland think say our months, hosting certainly the it too it split It's of categorically that’s I the self-mining say I’ll We, final to Mawson, case-by-case and three Mawson self-mining going has more for to moment, at be much and turn a basis to that for over to on note. we larger for you do become as spoke important next as attractive Sharon throughout continuing what I hard a on to very So and we're would what the of I over two earlier. we'll think facilities past

operating business need been a customer, have us always screams we particular model that fully in that that then for best-buy a has the could be and will means site that funded, at if have a the mining self-mining. correct Mawson a site. site the site we and If hosting

then we a we're involved say really certainly yeah, James. getting be If a there’s then expanding it self-mining, example, that, at For it's mixture, few as mixture. now I to it there going lot self-mining. be past screened a means XX and fleet certain the over will But a to will do robust a will more our self-mining conversation Thanks been XX again. around days looking

James Manning

I through. and something that's and ask deal a another since that saw one you, and production where come in with XX-XX. the Bitcoin Stronghold present the came might at? did bitcoin Is looking – I it that Stronghold knowledge came the that At we’re got wheelhouse I've upset

Liam Wilson

to it. like Yeah, the would sure. are together you that a well. deal depending that as sooner. you well. Absolutely. miners certainly the and a pulling entertain article We Stronghold We mine that team deal, Congratulations entertaining over deals read that call would and of very, how in look at guess I equity currency miners deal very

we the would said we in as add what and hosting will like it’ll continue to and their an best this and say and structure. whether and world we again whether the decide miners I before, to currency the players to bring the around I jumping we’ll spoken self-mining as something to which We've major be just agreement sites, numbers manufacture by attic our this decide basically is it's and with decide something whether it's asset run like it's

So it great a pursue. deal and we're interested something to that that's was

James Manning

total see of $X million. million sold Ohio facilities Right, one business end million Liam. for if existing will of [inaudible] thanks. May Thanks subsequent whole Texas these part categories this bit. the around you in that are What is in and $X.X pay Ariel? in going for a are and and they April these to have of of Ariel. some probably still I at $XX.X This QX for the

Ariel Sivikofsky

for Look, it's and to last question. Liam's, question. Thanks on before I that James. our the e-marking guess, something Thanks from Thanks. were alluded James! you've Hi following cash.

them We looking whether move the the future. mechanism the are balancing type James. to strategy, add with actively new obviously that's looking joint Thanks work use it's as near we've But ventures also equipment our to looking and We're also our looking finance procurement deck and we and servicing in to to expand team or add operations deployment where really in partnerships that received on cash the commitments operations, time. equipment.

James Manning

got come coming from see Thanks, one on the through. more I’ve the Ariel. queue. shed in let one question stock Can light no details the come else the on that. you offering? you I've I one I've that’s details? last me call more no through regarding recent light more come that's – through. check got Can got shed question It’s Aaron.

Corning that the take out recently Sure that we're an Aaron, company's and I'll in shortly additional putting secured one. facility Look, facility.

put and a additional deployment So additional in some and form facilitate total the these to CapEx turning on sites the of capital we've it perspective, have company sites.

We've of coming as secured we of and so we combination and online, those quarters come additional enough his coming the already have some next turn will that them already Midland we're GA paid capacity, some be sites are sites quarter them of [inaudible] well. early that within on thousands on now will are up with we and we machines just from come Midland. and got on, Even –

sure have up. infrastructure and for working rate enough facilities those to turn fundamentally capital So making capital the capital around we is

that you And you for take which it question that And, miners already you have? turn Liam that came the the that on, the next is XX,XXX think do do actually miners time will on we want how to the about take to deploy covers long have.

Liam Wilson

absolutely. Yeah,

are units deployed I today – Mawson. and of can say XX,XXX the for So as operational

the XX the Sharon online megawatts deployment, We weeks. over our Sharon, and which we’re next stage have three see in deployment coming the happening next that be of to is will

balance come early online, in well. that June another then Mawson units coming future call asset very as through be the of on near those will the will and So that

end stated, fleet have June, as the we'll by of whole already our QX of we’ve So by deployed. the end

James Manning

Thanks got Liam. That's no through coming great. other I've questions guys.

the So, though, someone other this it think if through. up anyone, unless call. at a else we'll I leave to coming minute I'll pops that questions point one see are be just wrapping there's any

we will basis that on call up and investor the think No, I wrap today.

thank in really results future. call. call appreciate continued that analysts presenting look much. have to and near to support next the jumped forward investors wanted you on very and Just Thank the We the those we your

Operator

conference That ask and for thank lines. does conclude you your your please for disconnect We today. your call you participation that

Mawson Infrastructure (MIGI) 15 May 232023 Q1 Earnings call transcript