Mawson Infrastructure (US:MIGI)2022-11-15 15:34Financial Data and Key Metrics Changes - Mawson generated record revenue of $28.3 million for the year-to-date, up 160% year-on-year, with gross profit of $10 million, up 20% year-on-year, and non-GAAP EBITDA of $8.8 million, up 203% year-over-year [8][10] - The company reported a 43% increase in revenue from $19.8 million in Q2 to $28.3 million in Q3 [10] - There was a significant increase in Energy Markets revenue, rising from $0.5 million in Q2 to $6.3 million in Q3, representing a 1,160% increase [10] Business Line Data and Key Metrics Changes - The self-mining business generated $5.9 million in revenue, while the hosting colocation business generated $5.7 million, up 58% from Q2 [17][18] - Bitcoin produced for self-mining increased by 12% to 282 coins [8] - Hosting colocation revenue rose 58% from Q2 2022, reaching $5.7 million in Q3 [10] Market Data and Key Metrics Changes - Mawson's installed operating capacity was approximately 3.7 exahash at the end of September 2022, expected to rise to 4.5 exahash by Q1 2023 and 8 exahash by Q4 2023 [6][13] - The company is focusing on its Pennsylvania assets, which have low energy costs and large-scale facilities, enhancing its competitive position [7][12] Company Strategy and Development Direction - Mawson's strategic highlights included the sale of its Georgia facility for approximately $40 million, allowing a renewed focus on Pennsylvania assets [7] - The company aims to expand its self-mining capacity significantly, with expectations to grow from 1.5 exahash in Q1 2023 to 4 exahash by Q4 2023 [17] - Mawson is positioning itself as a sustainable miner, with the majority of its energy sourced from carbon-free nuclear energy [14][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth targets despite current Bitcoin price fluctuations, citing strong margins and favorable power contracts [33][34] - The company is actively considering capital allocation strategies, including potential stock buybacks, to address share price divergence from net asset value [68] Other Important Information - Mawson's balance sheet showed a $3.7 million increase in the fair value of energy contracts, with net assets at $92.8 million as of the end of Q3 [9] - The company has a current pipeline of energy infrastructure exceeding 300 megawatts, all located in the USA and carbon neutral [20] Q&A Session Summary Question: Update on hosting demand environment - Management noted a high demand for hosting services from miners affected by the bankruptcy of Compute North, emphasizing a cautious approach to onboarding new customers [32] Question: Growth timeline considering lower Bitcoin levels - Management remains confident in achieving hash rate targets, citing profitability at current Bitcoin prices and a focus on infrastructure development [33] Question: CapEx for Sharon site - The estimated CapEx for the Sharon site is $250,000 per megawatt, with current spending focused on mobile modular data centers [40] Question: Cash and debt perspective post-sale - The company received $20.6 million in cash from the sale of the Georgia facility, which will be used strategically to pay down debt and fund operations [56] Question: Sustainability of reduced SG&A expenses - Management believes the reduced SG&A expenses are sustainable, having removed unnecessary staffing costs and streamlined operations [63] Question: Consideration of stock buyback - Management acknowledged the divergence between share price and net asset value, indicating that capital management strategies, including buybacks, are under consideration [68]