Mawson Infrastructure (US:MIGI)2023-03-25 14:39Financial Data and Key Metrics Changes - Mawson generated record revenue of $84.3 million for the year, up 92% year-on-year [46] - Gross profit increased to $36.6 million, an 8% year-on-year rise [46] - Non-GAAP EBITDA reached $30.4 million, up 70% year-on-year [46] - Bitcoin production for self-mining increased by 66% to 1,343 coins [46] - Net assets at the end of 2022 were $76.1 million, with net assets per share at $5.34 compared to a share price of $2.50 [48] Business Line Data and Key Metrics Changes - Hosting revenue reached a record $13.3 million in 2022, with a margin of 24% [51] - The Energy Markets program generated $13.7 million in revenue at a gross margin of 91% [70] - The self-mining capacity is expected to ramp up significantly with the addition of 120 megawatts in Midland and 12 megawatts in Sharon [74][81] Market Data and Key Metrics Changes - The PJM market power is currently priced in the high teens to mid-$20s per megawatt [24] - Mawson's strategic focus is on the Pennsylvania region due to competitive power pricing and favorable climate conditions for mining [95][76] Company Strategy and Development Direction - Mawson is focused on building a sustainable business with recurring revenues through a combination of hosting, mining, and energy programs [29] - The company aims to optimize profitability by balancing self-mining and hosting operations [90] - Mawson is committed to maintaining a strong balance sheet and is focused on return on capital and equity [19][49] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2022 but emphasized a strong focus on diversified revenue models [68] - The company is optimistic about growth in 2023, supported by a secured energy pipeline and strategic relationships [77] - Mawson's ESG program is a priority, with a commitment to zero carbon power and nuclear certification [78] Other Important Information - Mawson completed the sale of its Georgia facility for over $40 million, which will support its expansion in Pennsylvania [44][58] - The company has a significant amount of equipment ready to be deployed, with 1.5 to 1.6 exahash available for immediate connection [11] Q&A Session Summary Question: Update on hosting demand and finding a hosting partner - Management noted a large pipeline of hosting customers and ongoing discussions with potential partners [85][106] Question: CapEx required for Sharon facility construction - The first 12 megawatts are fully funded, and the balance will seek a partner for execution [86][88] Question: Balancing energy sales versus consumption for mining and hosting - The company optimizes for the greatest gross profit margin, switching between energy sales and mining based on profitability [118] Question: Current debt and liability situation - Current debt is $35.5 million, with borrowings at about $23 million and trade payables at approximately $10.5 million [169] Question: Future plans for Ohio sites - Ohio sites will have a similar Energy Markets program as Pennsylvania, contributing to revenue growth [133]