The OLB Group, Inc. Q3 FY2023 earnings call

• Diversified revenue comes from FinTech and Bitcoin mining. YTD 2023 revenue increased 5.4% year-over-year. - Payment processing has 10,000+ merchants with ~1.3 billion annual transactions. - DMint facility in Selmer, TN with phase 1 electrical work near completion, planning to expand power and miners. - Cost to produce a bitcoin is around $9,500. - Black011 acquisition in June with marketing initiatives underway. - DMint spin-off: S-1 filed with the SEC, working on comments, with a dividend to shareholders post-spin-off.

The company has two main segments: Payment Processing (FinTech) and DMint (Bitcoin mining). For Payment Processing: Q3 2023 revenue was $9.69 million. Year-to-date (YTD) 2023 revenue was $24.7 million, which is a 5.4% increase compared to $23.4 million YTD 2022. This segment contributes 97%-98% of the company's revenue. The 10,000+ merchants in payment processing do roughly $1.3 billion annually in processing volume. For DMint: It is a bitcoin mining subsidiary. The DMint facility in Selmer, Tennessee is a 15,000 square foot building on 4.7 acres. Phase 1 is near completion with 5 megawatts of power to power 1,000 ASIC miners, with plans to add more power for additional miners in phases.

• YTD 2023 revenue saw a 5.4% increase year-over-year. - Projected run rate for fintech and Bitcoin mining in 2023 is $30 million to $35 million. - DMint spin-off expected to occur by the end of 2023 pending SEC approval. - Plan to ramp up Bodegas services and build an in-house sales force.

• Dependence on SEC approval for the DMint spin-off. - Market conditions influencing decisions on miner purchases, debt financing, or equity raises. - Uncertainty in the Bitcoin network catch rate affecting Bitcoin production costs.

Q: What is the plan to purchase or acquire miners, debt financing or equity raise?

A: It depends after the spin-off of DMint, which is likely to happen after the entire DMint operation is a standalone company. It depends on market conditions.

Q: How many Bodegas has the company onboarded since the acquisition?

A: We are adding 1,800 locations in this phase and expanding with additional services.

Q: Estimated cost of electricity for the bitcoin mining?

A: The cost is around $0.0489 per megawatt hour, locked in for 5 years.

Q: Would DMint share price be hurt if the spinoff happens before 1,000 miners?

A: I don't think it would have hurt. Valuation includes assets and properties, not just miners running.

Q: Is there any EBITDA guidance for 2024?

A: We don't want to give guidance right now because we don't know exactly when DMint will split off, which affects EBITDA.