Big Digital Energy, Inc.

Greetings. Welcome to the Mawson Infrastructure Group, Inc. Second Quarter 2022 Earnings Results Conference 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, Chief Commercial Officer. Thank you. You may begin.

Hello, everybody, and thank you for taking the time to hear about Mawson Infrastructure Group. My name is Nick Hughes-Jones, Chief Commercial Officer of Mawson. Joining me today is James Manning, our Chief Executive Officer and Founder, and our Chief Financial Officer, Ariel Sivakovsky. We look forward to taking you through the investor presentation today. But first, I need to read you a short disclaimer around forward-looking statements. Please be aware today we will be making forward-looking statements. These statements are based on current expectations and assumptions and are subject to risks that could cause actual results to differ materially from those expected. We may also make forward-looking statements as part of our Q&A at the conclusion of this presentation. Please be sure to refer to the cautionary text regarding forward-looking statements contained in this presentation on slide two, as well as the risk factors in our annual report on Form 10-K, filed March 21st, 2022, under the subheading Risks Relating to Our Business, as well as the 10-Q filed today, Monday the 22nd of August. As of Friday night's close, Mawson has a market capitalization of approximately $60 million, is listed on the NASDAQ under the code MIGI, M-I-G-I, and has five Bitcoin mining sites across the USA and Australia. As at the end of July 2022, our Bitcoin self-mining installed operating capacity was at approximately 1.7 exahash, which based on current network difficulty produces approximately 7.5 Bitcoin per day. Throughout the month of July, Mawson continued to participate in energy demand response programs, whereby we curtail our energy use in exchange for revenue and reduce costs of production. Our installed hosting co-location capacity, as at the end of July, was approximately 1.8 exahash, bringing our combined installed self-mining and hosting co-location capacity to 3.5 exahash, one of the largest installed Bitcoin mining operations amongst our NASDAQ listed peers. As a reminder, an exahash, abbreviated as EH in these slides, Crudely speaking, is a measure of computing power. The more exahash you have online, the more bitcoins you produce on a daily basis. We've recently alluded to our second Bitcoin mining facility in Pennsylvania and are pleased to report today that we have received a favorable energy load study, meaning that our Sharon, Pennsylvania facility is capable of operating at up to 120 megawatts or four exahash. meaning we are today upgrading our total energy capacity available for Bitcoin mining to 590 megawatts, which is one of the largest confirmed infrastructure pipelines amongst our NASDAQ-listed peers. This is a significant strategic advantage for Mawson, given the very high levels of demand for energy infrastructure in the Bitcoin mining industry today. We also recently announced our intention to defer major forward capital expenditure until market conditions normalize. and will instead sweat our existing Bitcoin mining fleet, continue to deploy our hosting co-location customers, and will continue to participate in energy demand response programs, something we'll touch on further later in the presentation. As a result, we anticipate our Bitcoin self-mining business to be operating at approximately 2.3 exahash by Q4 of 2022, and we expect to have our hosting co-location agreements deployed at approximately 3 exahash by Q4, resulting in total operations across our self-mining and hosting co-location at approximately 5.3 exahash by Q4 2022. Again, one of the largest installed Bitcoin mining capacities amongst our NASDAQ listed peers. Mawson is also proudly a net zero carbon miner and hosting co-location provider, something we'll touch on later in the presentation. With that, I'll hand over to CEO and founder James Mannings.

Thanks, Nick. Q2 was a solid operational period for the group. Our hosting co-location business expanded materially, growing from 16 megawatts or half an exahash to 54 megawatts or 1.8 exahash over the period, with hosting revenue growing sequentially from $550,000 in Q1 to $3.57 million in revenue in Q2, up 536%. Our self-mining operation continued its growth. rising from approximately 1.35 exahash in March and touching an interim month all-time high of approximately 1.85 exahash in June and slightly ahead of July's run rate of 1.7 exahash, with our Bitcoin self-mining operations producing 490 Bitcoin, up 286% versus Q2 2021. We also commenced our energy demand response program late in the quarter, generating additional revenue and reducing overall cost of production as a result. We significantly added to our energy pipeline during the second quarter. We signed a new 120 megawatt or 4x the hash of Bitcoin mining capacity facility in Texas in partnership with New York Stock Exchange listed Texas Pacific Land Corporation. We also received variable energy load studies at our second Pennsylvania site in the town of Sharon, with that site also being capable of accommodating 120 megawatts or 4x the hash. Turning our head to the Q2 results, the second quarter was a solid one operationally for our business. Molson generated $19.8 million in revenue in Q2, up 236% compared to Q2 2021. Our revenue in Q2 was up slightly versus the previous quarter. A good result considering the Bitcoin price fell approximately 60% over the period. Gross profit came in at $5.4 million, flat compared to Q2 2021. and non-GAAP EBITDA came in at 13.7 million, up 756% versus Q2 2021. Turning to operational highlights for Q2, having completed the build-out of our 80 megawatt facility in Georgia in Q1, we commenced work to expand this facility to 230 megawatts in Q2. This, when fully deployed, is capable of operating at 7.5 exahash. We also entered into a transaction where Mawson will become a 33% shareholder in Tasmanian data infrastructure. We're developing a large-scale hydro-powered Bitcoin mining facility in Tasmania, in the southern half of Australia. Subsequent to period end, we also raised $10 million in additional capital in July to continue to build out our digital infrastructure for potential strategic transactions and for increased working capital. With that, I will hand over to our CFO, Ariel Sivakovsky.