Mawson Infrastructure Group, Inc. Q1 FY2022 earnings call

• Q1 2022 was an exciting period with hosting co-location business expansion, signing major customers like Celsius Mining and Foundry Digital.
• Team expanded to over 50 individuals. Completed build-out of 80 megawatt facility in Georgia and gained approval to expand it nearly threefold to 230 megawatts.
• Secured $20 million debt facility from Celsius Network. Announced new 120 megawatt Bitcoin mining facility in Texas in collaboration with JAI Energy and Texas Pacific Land Corporation, upgrading energy infrastructure capacity to 470 megawatts.
• Focus on ESG: over 75% carbon-free energy, planting trees, community sponsorships including local schools, sports teams, and healthcare systems.

Mawson Infrastructure Group had two main segments: self-mining and hosting colocation. In Q1 2022, revenue was $19.4 million, up 178% from Q1 2021. Gross profit was $11 million, up 138% from Q1 2021, and non-GAAP EBITDA was $4.5 million, up 160% from Q1 2021. For self-mining, as of end of May 2022, expected to be at approximately 1.8 exahash producing ~8 Bitcoin per day. Targets include reaching 4 exahash by Q3 2022 and 5.5 exahash by early Q1 2023, which would increase daily self-mined Bitcoin production to ~18 and 24.5 Bitcoin per day respectively. For hosting colocation, had 116 megawatts of hosting colocation customer agreements in place, expected to expand to 140 megawatts by end of 2022 and 220 megawatts by 2023.

• Target to reach 4 exahash in self-mining by Q3 2022 and 5.5 exahash by early Q1 2023.
• Hosting colocation to expand from 116 megawatts to 140 megawatts by end of 2022 and 220 megawatts by 2023.
• Annualized revenue expected to be ~$88 million by end of May 2022, increasing to $357 million by early Q1 2023 with 5.5 exahash self-mining.

• Volatility in Bitcoin price and network difficulty affecting revenue projections.
• Supply chain issues with Bitcoin mining hardware, particularly from China, though no material slippages seen yet.
• Market conditions impacting ability to expand infrastructure and secure hosting colocation customers.

Q: What was the hash rate at the end of March quarter?

A: Average hash rate for March was 1.2 exahash, end of month was 1.35 exahash, end of May expected 1.8 exahash.

Q: Details on Texas location?

A: Substations in place, series of sites under 30 megawatts, can be energized quickly with modular container solution suitable for the climate.

Q: Bitcoin mining hardware prices?

A: Mining hardware prices have come down, with M30 and 30S models around $50-$60 per terahash.

Q: Pipeline visibility for energy infrastructure?

A: Comfortable with pipeline, exclusive arrangements and ongoing studies for sites, including Sharon and other potential sites with large landowners like Texas Pacific Land Corporation.