Mawson Infrastructure Group, Inc. Q1 FY2023 earnings call

Key Points

• Sold Greenfield Texas land lease and transformers for $8.5 million. Added new facility in Corning, Ohio (24 MW with 26 MW capacity, mix of self-mining and hosting).
• Secured 20 MW at Midland, Pennsylvania; began building out 70 MW at Midland and 12 MW at Sharon, with power expected online in Q2 2023.
• Up-time in Q1 was 92%, with 8% curtailed hours. 264 MW sewn up, 88 MW online, foresee 132 MW online by Q2.
• Sites are 100% nuclear, cool climate ideal for mining. In-house designed MDC solution at $527 per miner, vs. ~$3,635 for immersion systems in warmer climates.
• Aim to have 7.2 Exahash units installed by end of 2023, 10 Exahash by 2024. Mining fleet: 20,000 units, producing ~1.7 Exahash, ~4.45 BTC per day ($124k/day, $45M/year).

Mawson generated mining revenues of $2.8 million. Co-hosting business contributed $4.3 million for the quarter. Energy Markets program contributed $400,000 with an 84% gross margin. Asset sales, primarily from the sale of CleanSpark stock, contributed $1.59 million. Cost of revenue was $4.7 million. Net EBITDA was a minor loss of $2 million, and adjusted EBITDA loss was $400,000. U.S. GAAP net loss was $11.4 million, similar to the same period last year. Total assets at quarter end were $116.7 million, liabilities were $50 million, resulting in a net asset position of $66.7 million.

Forward-Looking Statements

• Aim to install 7.2 Exahash units by the end of 2023 and 10 Exahash by 2024.
• Foresee having 132 MW online by Q2 2023.

Risks

• Volatility in Bitcoin prices affecting revenue.
• Regulatory risks related to energy markets and mining operations.
• Dependence on reliable grid and access to demand response programs for energy management.

Q: Update on the company's long-term outlook on self-mining versus hosting.

A: James Manning mentioned commissioning Midland, refocused on mining, with a mix of self-mining and hosting at the Ohio facility, expecting a larger proportion of self-mining online soon.

Q: Update on the new Ohio facility's cost of power and demand response programs.

A: Tim Broadfoot stated the Ohio site is in the PJM market, using index pricing, and has access to the same curtailment programs as Midland, Pennsylvania.

Q: Details on the recent stock offering.

A: Aaron was informed the stock offering supports capital expenditure for deploying additional sites, including turning on existing miners from GA and facilitating the deployment of new facilities.