GPUS

Leadership

• Leadership team includes Todd Ault, Will Horne, Ken Cragun, Chris Wu, etc.

Third Quarter Highlights

• Revenue growth of 47% QoQ, net income of $1.3 million vs prior massive loss, assets at $225 million.
• Crypto revenue from old miners with delivery of new miners starting in March, ramping up to 2,300 per month later. Alzamend had a $6.4 million gain but is mark-to-market.

Corporate Structure

• Transitioning to two separate companies: BitNile will control Alliance Cloud Services and mining operations; Ault Alliance will control Gresham, TurnOnGreen, Digital Power, and Agree.

Mining Operations

• Delivered 1,000 miners in Michigan, with 300 per month thereafter, aiming for 20,600 miners total. Hash rate and revenue projections based on Bitcoin price and difficulty. Transparency with biweekly updates on miners installed and Bitcoin mined.

Future Initiatives

• Name change to BitNile Holdings with symbol NILE by year-end. Consideration of special Bitcoin dividend subject to profitability and board approval. DFI investments and expansion of mining operations into other geographical locations.

BitNile Potential

• BitNile has revenue potential of $200-300 million run rate depending on Bitcoin price, difficulty level, and U.S. dollar price of Bitcoin.

Financing Consideration

• Considering debt financing for expansion as subsidiaries generate cash flow, with Chris Wu working on non-recourse financing at subsidiary level.

Dividend Plans

• Contemplating special dividend in crypto, subject to profitability of Bitcoin mining and approval from the board.

The company had $44 million in revenue over nine months, a dramatic increase from the prior year. Net income was $1.3 million compared to a prior massive loss. Assets grew to $225 million. The lender contributed nearly $20 million YTD. Crypto revenue saw a dramatic increase from old miners, with delivery of 1,000 miners starting in March and 300 per month thereafter. Revenue grew 47% quarter over quarter. Ault Alliance segments include the hedge fund, Alliance Cloud Services, data center, crypto miners, Agree (commercial real estate), Gresham, and TurnOnGreen. Alzamend had a $6.4 million gain but is a mark-to-market position with volatility.

Volatility

• Volatility in earnings due to mark-to-market accounting for public company positions (e.g., Mullen, Alzamend).

Market Dependence

• Dependence on Bitcoin price and mining difficulty for profitability of mining operations.

Execution Uncertainty

• Uncertainty in executing special dividend in crypto, subject to various factors including Delaware law and board approval.

Q: Could you comment on the third quarter and mark-to-market positions?

A: Yes, Ken Cragun mentioned big swings in Q2 and Q3 due to mark-to-market for Alzamend (up $6.5M on position but had Q2 gain then Q3 loss) and Mullen position with gains from IPO. Todd Ault explained revenue volatility from mark-to-market of public company positions.

Q: What about leverage and financing for expansion?

A: Will Horne said as companies generate cash flow, they can consider debt financing for expansion. Ken Cragun noted Chris Wu's ability to structure non-recourse financing at subsidiary level for accretive acquisitions with positive EBITDA.