MARA Holdings, Inc.

Good day, ladies and gentlemen. Welcome to Marathon Digital Holdings' third quarter 2022 earnings webcast and conference call. I would now like to turn the call over to your host, Charlie Schumacher, Vice President of Corporate Communications. Please go ahead. Thank you, Diego.

Hello, everyone, and welcome to Marathon Digital Holdings' third quarter 2022 earnings call. Joining me on today's call are our Chairman and CEO, Fred Thiel, and our CFO, Hugh Gallagher. Before we get started, I'd like to remind everyone that our prepared remarks may contain forward-looking statements, which are subject to risks and uncertainties, and that we may make additional forward-looking statements during the question and answer session. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. When used in this call, the words anticipate, could, enable, estimate, intend, expect, believe, potential, will, should, project, and similar expressions as they relate to Marathon Digital Holdings Inc. are as such a forward-looking statement. Please refer to our earnings release for a full recitation of our forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties, which may cause actual results to differ from those anticipated by Marathon at this time. In addition, other risks are more fully described in Marathon's public filings with the U.S. Securities and Exchange Commission, which can be reviewed at www.sec.gov. Finally, please note that on today's call, we will refer to certain non-GAAP financial measures in which Marathon excludes certain expenses from its GAAP financial results. Please refer to our company's periodic reports on Forms 10-K and 10-Q for a full reconciliation of its non-GAAP performance measures to the most comparable GAAP financial measures. We'll begin today's call with prepared remarks from Fred and Hugh. After their comments, we will be going through some of the more popular questions from our investors before transferring to a live Q&A with our covering analysts. And with that covered, I'm going to turn it over to Fred to kick things off.

Fred? Thank you, Charlie, and thank you all for joining us today for our Q3 2022 earnings call. The third quarter was a transition and rebuilding period at Marathon. With the facility in Hardin, Montana, offline and energization of miners in Texas delayed, We entered the third quarter with only 6,000 miners operational, producing approximately 0.7 exahashes per second. Unsurprisingly, the operational transition that occurred during the third quarter caused our financial results to dip both quarter over quarter and year over year. However, as our consistently improving Bitcoin production substantiates, our confidence and our ability to rebuild our hash rate while maintaining a healthy balance sheet was well-founded. Today, we believe Marathon is a strong foundation on which we can continue to efficiently grow towards our goal of 23 exahashes per second by mid-2023 and expand our position as a leader in securing and supporting the Bitcoin ecosystem. Since the end of the second quarter, we have sequentially improved our Bitcoin production from 72 Bitcoin in July to 184 in August, then 360 in September, and then to a record 615 in October. October was the most productive month in our company's history, during which our production was almost equivalent to the entire third quarter. We now hold approximately 11,300 Bitcoins, making Marathon the second largest holder of Bitcoin amongst publicly traded companies worldwide, according to various third-party sites tracking this data. The consistent improvement in our Bitcoin production is the direct result of increasing our hash rate by bringing more Bitcoin servers online and improving those servers uptime. During the third quarter, we transitioned out of the data center in Montana, where our servers were drawing their electricity from a coal plant that had consistently incurred maintenance issues that negatively impacted our uptime. This scheduled move was part of our broader strategy to become both more operationally effective and more environmentally sustainable. By transitioning away from the Hardin facility, our renewable energy mix has increased, our uptime has improved, and our fleet has become more efficient on a joules per tera hash basis. While we were in the process of exiting Hardin, new facilities, most notably the data center in McCamie, Texas, that is co-located behind the meter at a large wind farm called King Mountain, began coming online. The energization of this new site during the third quarter enabled us to increase our hash rates from approximately 0.7 exahashes per second on July 1 to approximately 3.8 exahashes per second on September 30, as over 30,000 miners were brought online during the quarter. And since the quarter's end, we have increased our hash rate an additional 84% to approximately 7 exahashes, or 10 times greater from where we entered Q3, with approximately 69,000 of our Bitcoin miners operating as of November 1. Not only have we been able to execute in line with our recent expectations, but we've been growing consistently at a time when many in our industry have been struggling. However, before discussing the current state of the industry and why do we believe it creates uniquely beneficial opportunities for Marathon, I'm going to turn the call over to Hugh to discuss our financial results for the third quarter. Hugh?