Big Digital Energy, Inc.

Greetings. Welcome to the Mawson Infrastructure Group Incorporated third quarter 2021 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Nick Hughes-Jones. Thank you. You may begin.

Hello, everyone, and thank you for joining the Mawson Infrastructure Group third quarter results presentation. The call today will be hosted by CEO and founder James Manning, as well as myself, Chief Commercial Officer Nick Hughes-Jones. James and I will take you through Mawson's third quarter results and November investor presentation. Following this, there will be a Q&A session open to participants on the call. We appreciate the opportunity to review the third quarter financial results and discuss recent business highlights. Before we get started, please be aware this call is being recorded and webcast. During this call, management will make forward-looking statements. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to the cautionary text regarding forward-looking statements contained in this presentation on slide two and the third quarter earnings release summary issued yesterday both of which apply to the content of this call. I'd like to now turn the call over to James Manning, CEO and founder of Mawson Infrastructure Group. James, please proceed.

Thanks, Nick. Hello, everyone, and thank you for joining. We're excited to run through our quarter three highlights and provide investors with an operational update. Starting with slide three, Q3 has been very busy for Mawson. During the period, we have listed on the NASDAQ capital markets in late September. We purchased over 17,000 additional Bitcoin miners. We signed a new 100-megawatt facility in Pennsylvania. We kicked off the expansion of our 100-megawatt facility in Georgia. And finally, we generated our first meaningful revenues from our hosting co-location business. By the end of November 21, Molson will have 0.8 of an exahash of Bitcoin mining capacity online, well on our way to our recently upgraded guidance of 3.35 exahash online by Q2 2022. We have now secured 220 megawatts of energy infrastructure across four sites and are continuing to roll out towards our corporate target of 5 exahash by early Q1 2023. Turning to slide four and the financial and operational highlights for Q3. I am pleased to report that revenue for the quarter was 10.9 million. up 1100% from Q3 2020 and up 85% from the second quarter of 2021. The trend of strong margins has continued with gross profit of $8.4 million for the third quarter. After raising $45 million as part of our NASDAQ listing, cash and cash equivalents were $51 million at period end. We also saw our first meaningful revenues from our hosting co-location business. generating $800,000 in the third quarter. The trend of strong demand for hosting has continued into the fourth quarter, and we are balancing demand with our own rollout strategy. Subsequent to period end, Mawson announced a partnership with Queensland Infrastructure Partners, a global green energy infrastructure fund, to jointly develop sites in Australia and the US. Our first site on Australia's east coast is now operational. It will scale up to full capacity in Q1 next year. Mawson's investment in Cosmos Asset Management launched a Bitcoin miner ETF. FIGA, which is listed on ChaiX, the stock exchange in Australia, was the best performing ETF in Australia in the last five years, up 30% in the first five days, reflecting the strong return seen by investors in the Bitcoin mining space. Turning to slide five, we can see the steady growth in both our revenue and gross profit as we scale up our Bitcoin mining and hosting co-location businesses. Similarly, our strong balance sheet is growing and currently has minimal leverage. I am proud of the discipline we have shown to date in strategically raising capital where required and building a strong business focus on investor returns. On slide six, you can see between November 21 and Q2 2022, Wilson will deliver a massive increase in exahash, moving from 0.8 to 3.35 exahash. This reflects a four times increase in our Bitcoin mining production and in turn our annualised revenue. Importantly, we are currently enjoying strong growth profit margins across our facilities in Australia and the US. What really excites us, however, is our corporate target of 5x the hash online by early Q1 2023, which would see a six times increase in our Bitcoin production capacity from today. Slide 7 helps you see in more granular detail our ramp-up schedule after Q2 2020 and then on to early 2023. At Mawson, we have a very disciplined approach to ensure that we can deliver our expansion on time and on budget. Underpinning this is our infrastructure-first approach to growing our business. I am genuinely excited about the work our team has put into the facilities to date and to get us to where we are today. Having focused on securing energy infrastructure early on in our journey, we have ensured that we are among the lowest-bought oil producers, with a blended mining cost of approximately $5,321 per Bitcoin mined. The Mawson team is now focused on the substantial growth ahead of us. The black bars in this chart illustrate our historical hash rate. The dark green bars, our contracted hash rate. And the light green bars represent the mining hardware we are yet to order, but will, to meet our 5XR hash goal. We will be able to achieve this based on our current forecast and our strong operational cash flow. Turning to slide eight, and in Mawson's DNA, is our ability to identify and secure long-term, high-quality, low-cost energy infrastructure. It's no accident we're at the front of the pack in energy infrastructure, given the depth of experience at both board and management levels in this space. A secured energy infrastructure, currently at 220 megawatts, is complemented by a qualified pipeline of 870 megawatts. with a much larger prospective pipeline of sites in excess of one gigawatt. Expanding on our established energy pipeline, Mawson is committed to being a sustainable Bitcoin miner. We target carbon-free and renewable energy at our site, and slide nine goes into further detail on this front. We are intently focused on new site development, which meet our strict ESP criteria And importantly, across all new sites, we have a focus on carbon-free energy, evidenced by our recently launched facility on the east coast of Australia, which is 100% renewable energy. Turning to slide 10, and as an investor, understanding what underpins our growth is important. Our focus on infrastructure is key to this approach. We have established four key criteria when developing our infrastructure assets. One, a strict return on capital approach to site development. This means we are focused on low-cost, high-quality energy assets. Combined with the target total cost of power sub-4 cents a kilowatt hour, importantly, we consider the total infrastructure cost, so CapEx becomes a high priority. Two, our modular design principles, our MBC technology, enables us to scale rapidly, further improving deployment time and keeping CapEx low. This modular approach allows us flexibility to redeploy across sites should economics demand relocation, a key competitive edge. Three, long-term agreements. Enable us to ensure longevity in our business. We focus on developing strong relationships with stable partners. And four, finally, how ESG impacts on each investment. We consider how a site meets our corporate ESG targets especially how it aligns with our net zero carbon 2030 strategy. Importantly, energy isn't the only consideration. Slide 11 illustrates our focus on building on all aspects of our infrastructure. We are in a strong position to not only deliver the 3.35 exahash contracted to date, but critically, we have the underlying infrastructure in place to take this to 5 exahash and beyond. As previously disclosed, we have now purchased over 40,000 ASIC Bitcoin miners. which gets us to 3.35 exahash by Q2 2022. We have purchased over 200 modular data centers, and we have purchased over 100 transformers. This provides us with the infrastructure to scale beyond 5 exahash. We are often asked how our business will perform under different Bitcoin pricing scenarios. Slide 12 gives us some context around this. Here we have modeled our business based on 3.35 exahash online, providing investors with visibility on our revenues and gross profit from the various Bitcoin prices scenarios. For example, with Bitcoin trading around $60,000 overnight in Q2 2022, Wilson would generate monthly revenue of $35.5 million and gross profit of $32.7 million based on difficulty as at November 12, 2021. Underpinning this is our low blended cost of power across the portfolio of less than 4 cents a kilowatt hour and our low deployment costs at each of our sites. With that, I'll hand over to Nick.