BTBT - Earnings call transcript Q1 2024

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Operator

Hello, and welcome to the Bit Digital First Quarter 2024 Earnings Conference Call. Good morning, good afternoon and good evening, depending on where you're joining us from. Thank you for being here.

We are just giving a few more moments for attendees to dial in.

So thank you for your patience. Bit a call conference Cameron over of Relations as now being Schnier, Also Investor the hand to at Instructions] reminder, is today's recorded.I'll Head [Operator Digital. your host, Cameron, the floor yours. is

William Schnier

XXXX and morning, the First Good you. Earnings welcome Thank Call. Bit to Digital Quarter

forward-looking. Erke are would of Joining and today like be all that call risks materially some to statements cause Executive the those our Officer.Before we making I, Financial involve filings. on are Sam yesterday's These remind Chief results us Chief we the will Tabar, today projected our Officer; SEC Huang, you other filing, refer statements. could matters X-K begin, I that uncertainties participants and our filings these to to from differ XX-F therefore, and latest in

non-GAAP may financial today comments also measures. Our include

prepared and are call details found be X-K our Additional comparable directly over to our questions. turn the most [Operator on to measures that, website. we filings, reconciliations GAAP I and the Instructions]With can financial our will call up XX-F remarks, yesterday's which will for filings Sam. open in the After

Samir Tabar

prepared our you, then more strong, open first, I'll and on quarter detail off team. by strategic provide and Cam. will you my thank speak joining discuss on first third, our and Erke the and for our update line and Thank the initiatives; outlook the the then results Cam your we results; In our the effort results, XXXX. will today. of X questions.We execution remainder and the to gentlemen, us things: year financial secondly, quarter for our call our first for an Ladies remarks, on on thoughts started

a sequentially. and diluted the GAAP of and by revenue QX over million $X.XX. $XX EPS adjusted of XX% generated over grew Our EBITDA prior We fully from year XXX% by

start -- emphatic that quarter exahash year-end. -- the active emphatic X.XX coalesce rate March me.Our fleet X.XX we what the year, at as primary that the the to We be X.XX cautious landscape our mining halving, figure evaluating to a an and for heading first approach business first in post-halving our are to X the certain employed into year to of The still pardon view near lines curtailment fleet. the time compared should expansion lifting hash marks term. approximately to produce to The was start above bring XX we programs X.X the growing of

year-end. goal Our remains by reach exahash X to

deployments, expect Having growth deploying number are and to with programs fleet for growth We fleet the be on to of allows of which X meet capital. economics are new revenue of and finalized uncorrelated our in criteria. discussions we imminently.However, be counterparties implement will only a streams selective growth some hosting timing the we we us cautiously, opportunities new if approaching still

Our per as efficiency March metric fleet slight mining We our build our of more aim XXXX. average the as to we fleet fleet considerably for XX, improve out that terahash active to was Bitcoin XXXX year-end sources. mining power with improvement XX.X of a increased joules compared XX% a our that our of from fleet decrease run more grids XX, carbon miners.As efficient carbon-based use year-end an consumption was decrease XXXX, The of March by XXXX, driven XX%. energy approximately was rate free,

must X megawatts to incentivize reach from help to operations deployment. around starts market our sustainability greater miners goal. use. hope practices that Ultimately, mentioned secure to weigh carbon each in need mining do to at economic This will industry become exahash the quarter, greater we that for large.As our last transparency sources power we to still we XX strive continue We entirely trade-offs on the free, demand but the the

that into partners in that with significant currently requirement if were discussions agreements are hosting potential several put respective late-stage the We dent would consummated. a

also We've acquired side mining to recently or strategic partnership. an and are high-performance for some for in several increase M&A computing outright HPC. actively or of services, looking the entities We seen be either sort on both reverse opportunities, evaluating inquiries from

will the that expect further ripen the interested or hash if we're improve M&A, M&A levels.Regarding margins near side our returns. strategic likely more We current forma opportunity remains a gap interested We're not hash pro and portfolio set acquiring on the in mining particularly solely in in potential price opportunities rate. fill

exahash had approached one digital we our our believe out to worth and that assets wanted year our arise X strength us maximize this sellers post-halving. that had at One because slow might have and of we we to on reason -- have March is opportunities build that is have the reasons I flexibility of played over the of end of the cash We prospective over million balance sheet. debt. capitalize $XXX

represent debt options as actively Bit quarter However, business results evaluating of to accelerate Digital this computing statement. the has within financing from contribution that time our referred our we first first impacted are the XXXX the services AI business.Our to income high-performance growth our financials

produced million. revenue business profit and this $X.X gross million quarter, in the a For of $X.X

compensation for that may is during than optimization million deployment the that initial million $X.X the the our customer quarter.The about driven first the be utilization notice charge. delta revenue included which $X.X lower numbers To we is monthly as phases. this published our the sum number to is in period, clear, You reduced monthly during testing first a by for X we revenue nonrecurring of a the reports months credit issued onetime and

anchor GPUs. AI X,XXX an includes GPU double our contract the as for onetime that be like to lease expense gross has accounting profit HPC gross margins XX% illustrative I requested our that add the to that Bit purposes.As we segment includes the for Digital size as and the if would also we client treat For customer we our point operating business out the purposes, previously disclosed, deployment back of compared the credit. another the reported lease that credit would to approximately XX.X% revenue, for

finalizing and process terms announce of our with to customer in weeks. the final are vendors, terms the we respective coming and hope We in the

our goal progress business discussions other of with segment the to in to also We $XXX revenue to million intact. customers.Our prospective remains annualized grow HPC year-end by continue

Given from this customer, market rate and trends it's an that that the additional X,XXX achieve is assuming only existing -- volume-based only discounts, deployment run our will unlikely pricing finalized. we the GPU contract from

to expect to returns relative a This However, us relative to to profile initial at deployment.Nonetheless, GPUs our we of similar purchase. and sorry, revenue help a conversations payback will based our rate we maintain initial be to procure the based able reduced on nonetheless, should the our the customers that prospective our we continue for believe the on market, with year. conversations goal and achieve -- overall our period view

multiyear business. this business. strong in invested we the growth the We are up set of minimally To business development or have side for HPC in date, customer a acquisition

become team we expand support our to that of add growth the it's to us headcount need dedicated However, and to clear this business.

us financial on hires will the hand to we will making growth.I'll now results. help key very that accelerate are over now discuss So working who that our actively line Erke,

Erke Huang

by Bitcoin year. quarter for services the realized Thank revenue discuss first compared financial the XXX% driven The increase prior increase of revenue results million, price primarily certain a Total business. of you, and start higher I was now $XX.X Sam. our XXXX. to will was the HPC

and an network in increase to offset was driven increase XX% our increased rate by production by The in Bitcoin increase XXX.X. partially hash year-over-year difficulty. active Our an Bitcoin

our million Our as quarter, we and first active $X.X began Bitcoin generated during the previously services of revenue start difficulty credit HPC mining quarter. was $X.X net primarily fleet, higher million in of $XXX,XXX customer, increase total was network our services in the and revenue and $X.X onetime increase mid-January to year. This issued the business our generating recognized $XX.X million million prior compared Ethereum during is The strategy an of HPC mentioned.Our of staking the business. the by a driven cost to approximately

Our approximately for $X.XX kilowatt hour electricity quarter. price the was per

QX. by fees approximately quarter. production Our to amounted sharing fees production hosting increase per for sharp due cost per other for Bitcoin electricity around $XX,XXX Profit Bitcoin as defined divided Bitcoin to price. fees spiked to amounted in the $XX,XXX Profit Bitcoin the and

a and HPC share gain pretax margin the introduction increase prices. assets. expenses. in $X.X Depreciation of block digital prices, of balance and expense to year, in XXXX. GAAP deployed $XX.X compared asset that halving.General the and larger gross the resulted million the $XXX to The for improvement decrease quarter, approximately in year loss following expansion while quarter, March the the million amortization impact mining approximately Bitcoin $XXX high-margin rewards, a restricted XX, administrative $XXX quarter $XX.X of by EBITDA assets value course, quarter. first to consulting The offset quarter million. to million during which driven and compared shareholders' in was prior margin position of GPU was The year.Turning the the approximately QX XXXX. million driven accounting by on halving per fair cash and and were professional profit worth to the amounted driven increase FASB during We approximately million for materially our was from fleet a reduction new We by and sharing rules as for our Bitcoin quarter fleet and at was $X.XX compared compared Adjusted partially million costs a million implemented higher our earnings QX cash business $X.X the and the primarily However, and with million. was should digital were of $X sheet. early in was of the of to the the mostly and, prior XXXX, million held current of end which million of equity fees after $XX $X.XX total should $X.X higher last $X.X

net our HPC remains sale-leaseback was used than Our purchase capital servers.We of million raised by HPC higher call the are majority financing was partially we January the approximately that balance the miners. during during turn share raised was and will the the agreement our our proceeds a of ahead free, XX our approximately and commitment to into quarter was for business. shares first grow and price enter of issuance to evaluating reduced halving.I now build-out the the fund to quarter. $XX.X remarks. debt closing the CapEx Note million shares fortify of were business The of debt to the from decision X,XXX Sam XX.X balance quarter back sheet when million the both for $X HPC proceeds our to for sheet potential actively to but less issued were the ordinary in of

Samir Tabar

a focused but has it Erke. succeeds company to from we all-time We prepared We of the gladly cycle. the hash Digital the of were and benefit, and the we April. with that you, post-halving, mining phases halving Bitcoin is price Thank a knew on that that all Bit the would accordingly. end offset prices, benefited expecting lows in difficult building in at falling environment run-up

we held We our we have margin and in there not for capital that reduced. when cash is team, been allocate GPU this of lines can our sheet is and macro mining we risk/reward hostage halving HPC an a we why earmarked to error looking a also are expand balance the is and is HPC a into business worth run a to of our advantage. events also the we to at afford aspirational, being out enough find Bitcoin be key formidable Bit This build already that don't income to ourselves to designed why but generates runway think we fleet Digital's space. our AI.Look, side, we profitable nature, us business don't and current overhead. resilient Having we distinct accept real, to in has breadth still to trade-off, starting and business in X we as on terms control. certain where enhance be are It's business that hash speculative ourselves cover hash we've reminding price, is we our to the our of actively secular on on in those business capital, tailwinds.We want offerings. optionality no price is speculation. business by and the we see event don't entire growth HPC mining significant This and position diversified want capitalize it's but predicated AI the

of lever. We reinvest the are one always line profile. don't just single forced regardless We a not in to business have returns

Returns capital.Bitcoin many to prefer are by mining utility macro generates can is the our having a the believe predictable factors. of champion, that consensus flow the mining are to options sector raise given company a business. the is be exahash we line and price. that in given on We marginal cash business to the uncorrelated naturally business growth time reinvested by time. our is on the would that to business to We it's business prudent Bitcoin weigh external able a pursue when capital-intensive It returns perplexing perpetual given primarily at We different any model time expect then the notion when to at mechanism the justify chase capital invest at investment the capital idea any can hash be in continuously us. or exahash a for invest return in an best to into diminished don't dictated terrible area a depending great growth yield any free

to we're complementary HPC business rate run the team company business But side the we designs, the business, is mining plays about this the for one mining would have time business. does would our don't HPC will misunderstood grow earlier, in up short It's of we remains and opinion just in exclusively same to $XX the to our valuation considerably markets. concerned that how to open normalize That synergistic institutional HPC time.With mining some the million used mentioned the questions. I revenue business our believe while that, like our do with Bitcoin seem very business market I line invest investors unclear more to business a and retail lever.Finally, is able are like by believe the said, business. it over we we out. the regardless, like a us As see and growing the It run

Operator

Instructions] Securities. Mike question first [Operator Northland Grondahl We'll take with from our

Mike Grondahl

the taking GPUs final in second that and about of do March, GPUs XX? what's think those or so back June late then there be you still question, installed long First of sort you final And letter received kind for terms X,XXX contract? by live will

Erke Huang

This is Erke speaking.

Samir Tabar

on I ahead, Go mute. Oh, apologize. ahead, accident. I'm was on sorry, Erke. was go I by I [indiscernible] so mute But Erke.

Erke Huang

Okay. Yes.

And with took why so time. are around deployment? of more time. and vendors little for to long all And the so was yes, combination the to by June bit working for as vendor deployment, it preparing So the we see expecting it the ultimately, that a -- a or client we're took installations XX

that's still So target. the

Samir Tabar

Yes, Mike.

in this So basically we're weeks. finalizing

Mike Grondahl

generating Got installation guess June is it. still, And I know, don't XX your best of and revenue? when it's

Samir Tabar

take or a Give week.

Mike Grondahl

Okay.

Samir Tabar

We're talking weeks more. here, not

Mike Grondahl

related the a little at also that what, referred also? purchase little price discount, to because Got customer them the getting is bit? it. And you to about X,XXX. a GPUs, volume But a getting think you're Got of market that, like second you so just a explain competitive Could finding, think bit it's discount. you lower I a kind you for Are a I it. talked which

Samir Tabar

to take of want I us. either do one that? it's Yes. you Erke, can --

Erke Huang

Yes.

the up are And the then manufacturing pricing up. service OEMs give competitive the onetime and of ]. that seeing yes, customer [ as was we those for to we are from production installation, more a chips So due the backing coming credit for

we So perspective be from well. pricing our seeing better procurement our for as should -- procurement

Mike Grondahl

Got it.

give that? below it can it I for a direction? networking think the us kind $XX on first million you was of Or, the meaningly and GPUs equipment. know, don't X,XXX, Is about the sense I of

Erke Huang

previously going its being like lower, to finalized. but it's Yes, be I said,

weeks. that So in We be finalized yet. to coming it's should announce not able the

Mike Grondahl

Or help and with team, Got team, Has you process. message regards trying still second [ that hiring sales that a ] customer I'm moving it. you're guess I or down? to a to that rapidly? there like X, is to it. think understand said then I in what slowed getting said your you process is customer. about X a potential Got And X, third

Samir Tabar

I'm happy to take that.

at nobody that space. owns And pretty we relevant the so been We've in yes, ahead moving revenue. actually people the experienced the accelerate the clients very is that's discussions -- to forward, and unleash sales final process of with and in process owns but why need the much moment, we're process who we're So with business. somebody hiring potential

of to that hire X to all team. build key done the been inquiries absolutely But business there do we intend we announce that that the frankly, Mike, we with and But process owning moving Bit so why term, making a that forward. had But way has the But management the and take and medium the soon. getting, salespeople clients, of that and and to is Digital.Everything potential faster owns look sales the of existing And that in far. to is in the there's so person, we're at we which forward and if that process, revenue this that move important interviewing meantime, in it's someone the order on forward head clients, team this revenue somebody grow are head unleash it in could process. is announcement that is

Mike Grondahl

Got it. think best your summer, time a a do I to third mean could you draw announce line, something it's What's but you fall, guess? second hard customer? or about

Samir Tabar

work the at team. where these accelerate all need my of and get still sales from This why of will to and also soon. believe, help have business, the pregnant our that's sales landscape she and running the imagine. certainly, have the revenue, And and it's -- own head management But would somebody again, a the quo pipeline. reasons Well, cycle. It's process one we you the leads clients. status revenue And be prefer accelerate all as is is I asked owning and we sales inquiries the or with head certainly a to of now. right just, it sales hopefully, because need hiring customer? look be business doesn't For have this is cycle, he question It to -- these remains just to view, I for that the announcing you that that team we'll will answer we of sales we'll just the a from that unleash can we to

Mike Grondahl

Is lastly, line about time it. place Got guys of credit last a done? then facility in put getting there does And that to Where kind you just call, GPU it. talked that finance stand? purchases. a help Got the for getting on

Samir Tabar

Bitcoin in debt and debt took is I for money equipment past, on flows of borrowing on course, predictable Bitcoin errand, credit at But very don't because client. Yes. fool's the the looking Every to the is we cash open-minded the facilities can't going you taking to we're to business remain cash a with drawing cash respect flow. never because AI we it's mean, know from where a mining be. predict very because month, you

of sense.We options. looking we but lot to But look best So to been in But we have that enthusiastic now, our optimize involved signed, perspective, who the to have been the very from financing want, are optimize certain to for we counterparties investors just a we a all that -- we sure financing at. want until we're There best aggressively this at we're very terms. looking business and with make just and -- menu want just makes a of term. is we've are options that there's terms speaking get

Operator

[ our ]. Markets question Noble Instructions] [Operator move Gomes next Noble (sic) Joe Capital from Partners Capital to We'll with

Joseph Gomes

wanted to there. the on off start HPC margin adjusted I gross

you increase XX.X%. that Or it margin think expect think of type about similar there? we I could you that a even margin do from possibly going was forward? said Should

Samir Tabar

It's of you question. Erke, take do more a finance want that? to

Erke Huang

Yes.

for well hour to do first be see the we same pricing the as per going cards for margin. forward, But for pricing. So compressing HXXX batch, going some it's

market. I So say But be the be the contract would being margin to going decreased. the would yes, is until finalized it's in

Samir Tabar

yes, And margins remain great.

William Schnier

batch. that margin gross does first the expense for lease include report we The this

some finalized, will margin batch, that as gross in extent So a expense dictated is of terms those whenever the the whether are there also second well. lease be

Joseph Gomes

$X.X million consulting And increased million. Okay. from and professional expenses to $X then

more could on costs. color Just maybe driving was a just you what give little those us

Samir Tabar

take can I Yes, that.

were the services costs those So for equipment. the related process sales related of professional the And to to placing deal. installation

Joseph Gomes

of if seeing color maybe give on environment wondering little Okay. as to sense kind I And then what out you've give a color Sam, seeing just, more of us maybe detail more what little overall could halving, you on us you're there the or been today. was a kind

Samir Tabar

mining business respect to HPC relates business or how Bitcoin With just generally? to the it or the

Joseph Gomes

business. business. mining The The mining

Samir Tabar

everything only see hammer, I saying, Well, price. the the sometimes that have lever. and is if everything are is an There's have old And sector one by myopic I think mean, a dictated they nails. you hash all you is that

they we've costs. And lever HPC we're is have is identifying respect And our because real to able to and that sector, that of that know-how a at a and business side procurement real have with we to one so with only been we specialized the lever, all dangerous. machines able have data -- growth that related centers. avoid on to respect our existing And leverage

establish And following to just business it's -- a have were emphasize, I the able a want business line.And so only we to you things. X that that

access to to these have you which are get. machines, difficult If

to lastly, to you have center And you access those machines. clients. have If a park data

it's X, those all have don't you just an aspiration. If

all X. those So we have

historically business. the sexy always mining a respect very that because business really that the is real worked has we're to well that headlines. a to overpay and ran drawing month, for just have has things. so We're allocate get We and overpaying to countercyclical Bit important strategy. every able time And we're growth Digital right revenue at not Bitcoin not with out

we're So comfortable with position. really our

price. the We begin normalize have levers that and understand will to and our hopefully, market

Joseph Gomes

a and add HPC capacity? have hosting for Or side, batch already to additional agreement get assuming were a once X hosting second customer X is do customer you if contract under capacity. for the HPC to need queue. with I'm you close back on you more side? the in one have done, so the then X, X, hosting me, I'll But on And capacity jump the customer or the enough Okay. that you X, already do on

Samir Tabar

Yes.

We you And sure we HPC will accommodate add to side. to why and get acquire that that market is just less I to on for basically us have capacity integrated for amount mining in on than are revenue produce XX% the HPC the interesting The the potentially basically business, energy same even reason enough require -- vertically the client Bitcoin margins basically on it's demand. side. that's the the of the side

question definitely vertical interesting to to side capacity that considering integration directly, an That we get of integrate it's once we're potentially side and are to to that your we seriously the business. have. already So are is meet something again, vertically enough But we business. talking counterparties vertically on answer of to have various looking client that demand. But on the integrated we

Operator

Kevin We'll question Dede H.C. with to move our Wainwright. from next

Kevin Dede

just infrastructure. Sam, back your Can Erke, through kind I your list to question see you own to of you're Cam. your can comfortable given about that touch, regardless there of commentary just or go regarding rationalization Sam, just price. hash and But... more building your which on you timing? my guess acquiring because right, of last go was return, investments

Samir Tabar

right. That's

Kevin Dede

Maybe...

Samir Tabar

same Bitcoin megawatts side mining HPC the For produces revenue amount the XX megawatts of as example, on the on X side.

is math nice. the So

Kevin Dede

to think in timing be able you'd the have had expertise So you on expertise insight to what can accommodate on that that? kind mind? you what you The that team the to some -- you us side of to and management do need give do

Samir Tabar

is expertise record the the now, a way in to respect have doing track with successful, Well, we pretty Sure. already. which we're it

data not We were going and to very the center things have If are in Iceland client grow contracted -- be well, not with fleet. going the we've that very would things well. asking

well team are front. to management this and business, accommodate our to we're integrated, business. if that that there's vertically going of to be and going to business and course, particular acquire that on integrate But a vertically vertically we become pretty infrastructure, very deeply things to there, in pretty is center we'll this the if data margins on expand expertise and of good So be once that the when were attached integrated very, team order on management leveraging side we a

Kevin Dede

Do I understand everything correctly...

Samir Tabar

Yes, ahead. sorry, go

William Schnier

the the leads. sort of on attractive an acquiring place new of that is M&A existing I and component in an run operation mean and team that's an able existing acquire existing we book would that pipeline of to to also business be just of side

Kevin Dede

idea then, expansion I Cam, versus as think there buy the build? should your about So

William Schnier

That's correct.

Kevin Dede

understand I that the Is Have you all side. in side, micro okay any super existing equipment? with for next Do correctly, are too? on Okay. Sam, that? tranche everything you GPU that issues InfiniBand the your And customer, gaining had

Samir Tabar

because InfiniBand actually a great are of are HXXXs We indeed. I the And that's the question a mean, precious. lot even precious, people the think course, of -- press more but is

weights. of InfiniBand, caught lot very people paper So a the down need also Otherwise, they their have not with got pants expensive just getting HXXXs, realizing that they

had that first covered tranche. when have executed covered. we on We we that yes, So the

-- that covered have have that very So tranche. on we'll already well we second the

William Schnier

And we...

Kevin Dede

you mind... Would

William Schnier

bold we're single it, that ] I we vendor? when but will in So be terms not announce [ mean the finalized into necessarily a

Kevin Dede

on Okay. next the lease decision buy me tranche? you mind walking gents through versus the Would

Samir Tabar

guess you the mentioned. produce to be I just will much same the math amount need basically revenue. of The -- it megawatts I less

So...

Kevin Dede

No, I no, HXXXs I'm to of sorry. how just right, and you set intend it? X,XXX Sam. I'm in finance sorry, the mean of, next terms

Samir Tabar

because cash free have understandably options, mining HPC a who because past we very want side, Bitcoin to optimize side. may people of part best sure credit on We looking We looking our make many to mining There We of predictable that trouble different at of for better the per in balance flow lot looking at. are credit we it's get much just counterparties some the versus the aren't month, a menu financing that. It's Bitcoin options. much we equipment, borrow on use the we're But different want options the easier money terms. that years. sheet. get anymore on got There that financing at so of are a to side things. couple to in We're but AI want

But counterparties with So respect that we discussions deeply to at haven't very kind facility. that anything -- signed of deep much to see where various with yet we're goes.

Of forward that move course, that. we'll if be announcing with we

Kevin Dede

you right, on you the leased? Right, how in versus handle tranche remind right. of first Bit me Can Digital terms owned

Samir Tabar

that I'll Erke. Yes. to leave

Erke Huang

-- we first deployed own of financing tranche, were we XX lease through servers arrangement. we them XXX a Yes, XXX. the have And for and

Kevin Dede

XXX XX owned leased, right, Okay. and Erke?

Erke Huang

Yes.

Kevin Dede

the that more hunting still hour potential elaborate mentioned you're could XX share. rev $X.XX cost down? we around chance megawatts? you and power that, maybe changes Erke, those Is for prices you see go per to on Can a kilowatt there given

Erke Huang

the are we as got we agreements through what pay directly electricity, majority a pass-through of -- we and $X.XX hosts rest were share our the of top pass-through. from our on the arrangement So profit a paid besides were and

As down the summer, power the able but because I should think year, a the to higher, price has see compared to quite be forward of last be down pricing we will pricing, in come gas price coming going lot.

So portfolio our some us as of hosts better forward-looking. some quotes giving are

Kevin Dede

you. you -- Sam, Yes, the Then thank yes, guess -- Okay. offered I okay.

Mike offered on a -- for the great customers You side. GPU the on explanation following on

this point. I'll So cede the floor at

Operator

to question, Securities. next our with return Mike we'll Northland Grondahl For

Mike Grondahl

question. quick Just a

know, operations ex of of get quarter, digital digital of think I you to help of million, those out kind million kind I what million. guys for million the $XX.X Would me can $XX.X If little adjusted reported the $XX.X produced bit? you of don't revaluing of the a with that assets. I assets, You back kind revaluation $XX.X EBITDA. that is core

Samir Tabar

we just repeat question, clearly. you that Mike, the understand so Can

Mike Grondahl

Yes.

$XX.X million. You guys reported of adjusted EBITDA

Samir Tabar

Yes.

Mike Grondahl

assets. was And a as through financials, It's million. I reading in P&L, there's on line, the digital gains the $XX.X

$XX.X the take million million asset just I million. I if $XX.X get so gain, minus $XX.X digital the And

the the the you BTC does essentially? core as running feel up that if EBITDA sort $XX.X business, to didn't You you right guys million write of and Ethereum

Samir Tabar

Yes.

are, I ballpark. ballpark, the It you of EBITDA you define in think depends in core. that's the terms in make certainly the what I calculate is and there what but as we on that think reconciliations certainly how

Mike Grondahl

some updated if just growth? any this you forward? that's it on it. Got to Ethereum out guys or I want to then going And about secondly, fund how thoughts selling of Bitcoin figure think

Samir Tabar

why balance our We preset have use again, in but every a will I But line. expansion into some and don't a strong formula, fund our but we now we're lucrative don't there HODL'ing formula. operations, sheet liquidate do and always space. We this mean otherwise now assets, this we we our believers have is -- it digital be definitely judiciously. business to in an we but

So that at these options these different we've looking we're with. counterparties been using terms be of looking sheet, digital at our that assets, balance liquidating could our negotiating financing

of in at expand things, ways we could that of we're various business So looking line. various which pools capital

Mike Grondahl

me to it. call, just kind last Got business. Sam. Throughout for And you've the described you, question this HPC of then

to And for and You're fair is that you've pretty of it excited X side volatility pretty high on -- it. side? referenced things at invest the next some and the mining incremental looking Is about the assume or capital mining in the on business. over year mining Bitcoin the BTC challenges to the you're bar mining the

Samir Tabar

growth as strategy. mentioned, Well, a countercyclical we run look,

mining and based Bitcoin And decisions. we're our decisions the economics. the in to lever going lucky good. just markets And to are not regardless on just the being at We make exahash in this - fortunately, that us that in for But a one a have prefer option. to position with when just of side We business have on time, partners contracted expound deals and price. we expand the given capital to not on the equipment prices run we allocation judiciously profitably. same our the very for we credit are able position forward, very -it's so unique have get And sector

We Bitcoin have mining business. a profitable

very have the allocation business, towards both. we be capital on We the to and dynamic HPC ability have profitable a

And move makes of look one on it profile. forward returns things. X we sense, the so just we if And those at

Mike Grondahl

it. Helpful. run the Got same versus And out XX. X you I megawatts pointed of takes think side revenue to on amount HPC the it

about probably a way helpful too. forward, that's So think going it to

Operator

question, For with we'll Kevin our Dede Wainwright. next return H.C. to

Kevin Dede

Sam, the to $X.X revenue. unaudited million April production in update included reference a HPC-related

is proxy consistent fair -- business until guess, second a Just forward, at for wondering I that that's going finalized. that for consistent your if tranche production least

Samir Tabar

in That's any be week wonderful change quite way. tranche to materially going number second going right. is And now. is that a that to very finalized But

Kevin Dede

time-wise? basis per in costs mean, side. Bitcoin just hash I I've a to -- previous seen, fleet cycles. relatively And that hoping on on I'm You to fairly about you're compared the from points improve wondering seemed efficiency. thinking machine to how low I'm also wondering referenced what be other mining relative hash

you maybe So can give insight us on that. some

Samir Tabar

we been, the to term. Yes, on the softening perhaps we're yes, been term, want pricing would has crystal the Nobody the of very, in fleet. mentioned medium growing what up, is we the because things we've that. we to look, course, that market of accurate short post-halving. out going how like. announcement But in upgrade closely, would and fleet is on our the shake have at an we've looking our the call, more want. That's and we've fleet That's noticed judicious we see market the to been buy But gens just which what an be as latest very during to ball

You that. have just to the that a be this And to doing time of equipment, to on good start markets kind the kind judicious are some of on wait now and wanted is that. see, softening we buys and for

Kevin Dede

Are choices you about immersion? considering you on about How hydros partners? air-cooled as hosting side equipment or thinking the staying are and technology you evaluate or thinking using

Samir Tabar

in Texas. Well, look, we're not

So Iceland. of be in it's be -- Canada. in it's to nice kind It's to nice

We have have places too our much that in crisp machines doesn't parked stuff. cold,

very cool well pretty place. a is works Iceland cooling us. air for the So

Kevin Dede

Great.

Congrats it. Appreciate Okay. quarter. the on

Operator

over like additional appears back It questions I'd any for or no at are closing this turn remarks. further the time. to conference there

Samir Tabar

the we we joining conclude today, Well, remarks, if Thank for and welcome us you value very participation our and today, there much and no are shareholders. very for call. I much your thanks more further

Operator

call. your you Again, We participation. this concludes today's for thank

now You day. may have and great disconnect, a

Bit Digital (BTBT) 16 May 242024 Q1 Earnings call transcript