Mawson Infrastructure (US:MIGI)2022-05-17 02:44Financial Data and Key Metrics Changes - Mawson generated $19.4 million in revenue for Q1 2022, up 178% compared to Q1 2021, and flat compared to Q4 2021 [12] - Gross profit for Q1 2022 was $11 million, an increase of 138% year-over-year [12] - Non-GAAP EBITDA for Q1 2022 was $4.5 million, up 160% compared to Q1 2021 [12] - Cash and cash equivalents rose to $5.8 million from $5.5 million in Q4 2021 [17] - Total assets grew to $166 million in Q1 2022, up from $145.3 million at the end of Q4 2021 [19] Business Line Data and Key Metrics Changes - The self-mining operations are expected to increase from 1.8 exahash to 4 exahash by Q3 2022, resulting in daily Bitcoin production rising from approximately 8 to 18 Bitcoin [23] - Hosting co-location business expanded significantly, with agreements in place for 116 megawatts, expected to increase to 140 megawatts by the end of 2022 [26] - The company signed major hosting customers, Celsius Mining for 100 megawatts and Foundry Digital for 12 megawatts, generating additional revenue streams [14] Market Data and Key Metrics Changes - The company operates five Bitcoin mining sites across the USA and Australia, with a market cap of approximately $180 million [5] - The new Texas facility will increase energy infrastructure capacity for Bitcoin mining by 35%, from 350 megawatts to 470 megawatts [8] Company Strategy and Development Direction - Mawson aims to reach 5.5 exahash by early Q1 2023, producing 24.5 Bitcoin per day and generating $357 million in annualized revenue [24] - The company focuses on securing long-term, low-cost energy infrastructure, with over 75% of its energy coming from sustainable sources [38] - Mawson is committed to being a net zero carbon miner and has a strong ESG strategy, including planting over 100,000 trees by the end of 2022 [45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the rapid expansion of self-mining operations and the hosting co-location business, citing high demand for energy infrastructure in the Bitcoin mining industry [11][25] - The company is cautious about hedging power costs due to market volatility but aims to lock in favorable long-term contracts [69] Other Important Information - Mawson has secured a $20 million debt facility from Celsius Network to support its expansion [15] - The company has a disciplined approach to infrastructure deployment, ensuring projects are completed on time and within budget [28] Q&A Session Summary Question: What was the hash rate at the end of the March quarter? - The average hash rate for March was 1.2 exahash, with the end of month hash rate at 1.35 exahash [60] Question: Can you provide details about the Texas location? - The Texas site has substations in place, allowing for quick activation of smaller sites within close proximity [61] Question: What is the overall cost per kilowatt hour for Mawson? - A weighted average cost per kilowatt hour was not provided, but management is open to follow up on this [70] Question: How is the hosting customer's deployment timeline? - Mawson is currently deploying about four containers a week, translating to 8 to 12 megawatts going online in Pennsylvania [72] Question: What have Bitcoin mining hardware prices done recently? - Mining hardware prices have decreased significantly, making them more attractive for Mawson [82] Question: Where do you see the global hash rate going over the next 12 months? - The global hash rate is expected to face downside risks due to various market conditions [85] Question: Why does Mawson sell Bitcoin instead of holding it? - Selling Bitcoin generates cash flow to fund operations and capital expenditures [87] Question: What will the split on self-mining and hosting be going forward? - Mawson is exploring a 50-50 split between hosting and self-mining, prioritizing the highest margin opportunities [88]