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spk05: And welcome to the Monson Infrastructure Group Incorporated third quarter 2022 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After the presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. I'd like to turn the call over to Mr. Nick Hughes-Jones. Please go ahead, sir.
spk09: Hello everyone, and thank you for taking the time to hear about Mawson Infrastructure Group's third quarter 2022 financial results. My name is Nick Hughes-Jones, Chief Commercial Officer of Mawson. Joining me today is James Manning, our Chief Executive Officer, William Wilson, our Chief Operating Officer, and our Principal Accounting 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 2. as well as the risk factors in our annual report and 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 14th of November. With that, I'll hand it across to our CEO, James Manning.
spk02: Thanks, Nick. As that Friday night closed, Mawson had a market capitalisation of approximately $33 million and is listed on the NASDAQ under the code MIGI, and has four Bitcoin mining sites across the USA and Australia. Mawson's diversified model generates revenue from three business lines, our Bitcoin self-mining operations, hosting co-locations, and finally, our energy markets program. As at the end of September 2022, our Bitcoin self-mining and hosting co-location installed operating capacity was at approximately 3.7 exahash, and we expect this to rise to 4.5 exahash by Q1 2023, and then up to 8 exahash by Q4 2023. We sell the Bitcoin generated from self-mining daily, and our hosting contracts are on a cost-plus basis, where we earn a margin on the infrastructure we provide, which is all paid in US dollars. Throughout the third quarter, Mawson continued to participate in its energy markets program, generating $6.3 million in the process. This program enables Mawson to monetize its energy via containment and by selling energy back to the grid when energy prices are high, while maintaining the flexibility to mine Bitcoin when energy prices are low. This is a significant strategic advantage for Mawson in the current environment. One of the major strategic highlights of the quarter was the sale of our Georgia facility to Clean Spark Inc. for approximately $40 million. This sale has resulted in Mawson having a renewed focus on our Pennsylvania assets, where we have low energy costs, large-scale facilities, and the ability to continue to generate revenue and reduce our costs of mining via our energy market program. The sale has also placed Mawson in the enviable position of having low net debt, and to simultaneously have our major facility now fully funded to its expansion of 100 megawatts, a significant strategic advantage in the current environment. With that, I'll hand over to Ariel to talk through our financial highlights for the quarter.
spk08: Thanks, James. And thank you to everybody who has joined the call. Touching on some highlights of the third quarter of 2022, Mawson generated record revenue of year-to-date $28.3 million, up 160% year-on-year. Gross profit of $10 million, up 20% year-on-year. Non-GAAP EBITDA of 8.8 million, up 203% year over year, and Bitcoin produced for self-mining increased 12% to 282 coin. Pleasingly, our hosting co-location business also generated solid growth, rising 58% from quarter two in 2022, $5.7 million in quarter three. As you can see on slide six, Mawson began receiving the proceeds of sale from the Georgia facility in October and November with a $20.6 million in cash hitting the balance sheet subsequent to quarter end. The September 30 balance sheet you can see on screen does not include any of the proceeds of sale of the Georgia facility. However, some balance sheet highlights from the quarter include a $3.7 million increase in the fair value of energy contracts to $21.4 million, referred to here as derivative assets, a $4.1 million reduction in trade and other payables, and a $21.6 million increase in assets held for sale. At the end of the quarter three, our net assets were only $2.8 million, based on shares on issue as at September 30 of 81.2 million. Our net tangible assets currently sit at $1.14 versus the share price of 39.5 cents as that Friday night's close. Turning to our income statement, some of the highlights from Q3 2022 versus Q2 2022 include a 43% increase in revenue from $19.8 million in Q2 to a record $28.3 million in Q3, a 58% increase in hosting co-location revenue in Q2 from $3.6 million to $5.7 million. A 47% reduction in our selling general and administrative expenses from $9.4 million in quarter two to $5 million in quarter three. And 1,160% increase in energy markets revenue from $0.5 million in quarter two to $6.3 million in quarter three. and an $11 million increase in hardware sales, a 41% reduction in current trade and other payables in quarter two from $47 million to $27.5 million in quarter three, and an 87% increase in gross profit from $5.4 million in quarter two to $10.1 million in quarter three. I'll now hand over to Chief Operating Officer, Liam Wilson, to provide an operational update.
spk04: Thanks, Ariel. Hello, everyone, and thank you for joining. As James mentioned earlier, in Q3, we sold our Georgia facility to CleanSpark for approximately $40 million and have begun to receive the proceeds of the sale through October and November, the proceeds being a mixture of cash and CleanSpark stock. The operational impacts of this mean Mawson is now firmly focused on the development of our Pennsylvania assets. but we have large-scale facilities which have a low cost of power and provide Morrison the opportunity to continue participating in our energy markets program, which generates revenue while lowering our overall cost of production. Our Pennsylvania assets are at this stage made up of two primary sites, our 100 megawatt facility in Midland, which is in the process of being expanded from 50 megawatts to 100 megawatts, and our 120 megawatt facility in Sharon, where we expect to have the first 12 megawatts energised in late Q4 2022. Combined, these sites are capable of operating at approximately 8 exahash, based on utilisation of the latest generation ASIC hardware, and we expect to have installed capacity of 8 exahash by the end of 2023, with a 50-50 split between self-mining and hosting co-location. Slide 9 spelled out the development timeline at both our Midland and Sharon sites out to Q4 2023. As a result of our recent asset sales, our Midland expansion is now fully funded. At our Sharon site and to the expected expansion beyond 12 megawatts in 2023, we expect any further funding requirements to see contribution from incoming hosting customers. Given the recent bankruptcy of Compute North, and issues being faced by other large publicly listed hosting providers. Demand for hosting is very high, and we look forward to updating stockholders on this in due course. The pivot to Pennsylvania also ensures that Mawson is now a 100% sustainable miner, with the vast majority of our energy coming from 100% carbon-free nuclear energy. I'll now hand back to James to run through our self-mining, hosting, and energy markets businesses.
spk02: Thanks, Liam. As previously discussed, Mawson generates revenue primarily from three different business segments. In Q3, our self-mining business generated $5.9 million in revenue. And on slide 10, we detail our expectations of our forward self-mining exahash growth. As we expand into our Pennsylvania facilities over the 2023 years, we expect our self-mining business to grow from 1.5 exahash in Q1-23 to 4 exahash in Q4-23. And you can see on this slide that the corresponding daily Bitcoin production annualised revenue based on current network difficulty and market conditions. Turning to slide 11, in Q3, our hosting co-location business generated $5.7 million in revenue, up 58% from Q2 this year. Our hosting contracts are all on a cost-pass basis, meaning we are well protected from fluctuations in energy prices. As we continue to build out our Pennsylvania facilities and based on inbound demand from hosting at present, we anticipate growing our contracted hosting business 100% from the current 100 megawatts contracted as at 30 September 2022 to 200 megawatts by Q4 2023. As many of you are no doubt aware, the bankruptcy of compute and all, as well as well-publicized issues in some of our listed hosting tiers, has meant demand for hosting continues to be very strong. On slide 12, we provide some details about our energy market business. In Q3, we generated $6.3 million in revenue from this program, whereby we could curtail and sell our energy to the grid at times of high energy prices. This is a very high-margin business for Mawson and means we can be very flexible with our energy load, which brings other benefits to the community and the environment. For example, as a result of our containment activities in 2022, we have avoided over 24,000 tonnes of CO2 emissions, which is the equivalent of over 56,000 barrels of water. All of this is central to our ESG strategy and how we become better corporate citizens. Turning to our energy infrastructure pipeline, we have demonstrated by the recent sale of our Georgia asset, the ability to profitably identify, develop and then sell our facilities. Part of this process is keeping the top of the funnel active. And over the course of Q3 and into Q4, the Mawson team has been busy in this area. We are looking forward to updating stockholders on this time in due course. Our current pipeline of energy infrastructure is over 300 megawatts. These are all located in the USA and are all high-quality carbon neutral locations. I'll now hand over to Liam to run through our ESG focus, board and register. Thanks, James.
spk04: At Mawson, ESG is a core priority for us. We have already touched briefly on our focus on carbon free energy. In addition to this, we offset any residual carbon footprint using carbon offset credits and through our energy markets program, Mawson is able to serve the community further by curtailing our energy use in times of need. By the end of 2022, we will have planted over 100,000 new trees across the US and Australia. with 75,000 trees planted in 2022 alone, which is approximately 1.5 new trees planted every time a block is created on the Bitcoin blockchain. Mawson is also a very active member of the local communities in which we operate, something we take very seriously. We have an active community engagement program in Pennsylvania, sponsoring Bull Park, as well as supporting the local community colleges, performing arts centers, and local healthcare system. Our most recent program in the Midland community This is handing out 200 turkeys for Thanksgiving and 200 Christmas trees for Christmas to people in need, as well as participating in community food programs through the holiday period, programs we are really looking forward to taking part in this year. Slide 15 touches on our board and management team. Our U.S. team is led by myself and our Chief Development Officer, Craig Kibart, who oversees the development of our portfolio facilities in the United States. You've already heard today from Ariel Sivakovsky, who recently joined the Mawson team and brings with him 25 years of financial stewardship and a thorough understanding of the cryptocurrency industry. Our board is chaired by Greg Martin, who is the CEO of Australia's largest energy business, AGL Energy, for five years and was with AGL for 25 years. Michael Hughes, another of our independent non-executive directors, has extensive experience across capital markets, governance and audits. We are currently searching for our fourth director, who we anticipate will be US-based. For our second last slide, I wanted to highlight just how aligned Mawson's board and senior management are with all of our fellow shareholders. Board and management currently own approximately 19% of Mawson, so we all have a huge amount of skin in the game. This is unique amongst our NASDAQ-listed peers and ensures we are extremely focused on shareholder returns. Lastly, from me, before we move to questions, In summary, why invest in Mawson Infrastructure Group? Over the last 15 months, we have grown the size of our self-mining and hosting co-location business over 17 times, from 0.2 of an exahash to 3.7 exahash as of September 22, and anticipate growing us further to 8 exahash by Q4 2022. We truly are an infrastructure-first business, with a significant amount of energy infrastructure in place, a strategic advantage in the current environment. We are one of the most sustainable Bitcoin miners on the NASDAQ, with all of our energy coming from sustainable sources, predominantly nuclear energy. We have strategic relationships in place with Voltus, Canarm and CleanSpark. We are one of the most efficient, fastest and lowest cost employers of energy in the industry. And we have very high insider ownership at 19%, meaning we are incredibly focused on shareholder returns. With the presentation now complete, we wanted to take this opportunity to thank all of our employees, suppliers, and shareholders for their ongoing support in 2022. I'll now hand back the floor for any questions.
spk05: Well, I'll begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To answer your question, please press star then two. This time, we'll pose voluntarily to assemble the roster. First question will be from John Seigler, Cancer Fitzgerald. Please go ahead.
spk03: Yes, hi. Thanks for taking my questions today. I'd love to get a big color on hosting demand environment right now, especially in regards to the share in Pennsylvania State.
spk06: Thank you. Sure, I'll take that one.
spk02: Look, we've had a large amount of inbound from, I guess, what I would describe as orphan miners, guys that have been caught brought out by, you know, Compute North or other hosting providers not being able to provide capacity. It's really difficult given the current environment to, I guess, qualify, you know, which customer you want to take on board. And that's really where we're spending a lot of our time at the moment is trying to weed through the inquiry to find the right hosting partner, one that's willing to, you know, One that's willing and able to, you know, support their operation with the right capital structure. And so, you know, while we're really confident about, you know, getting hosting customers in there, you know, we're balancing that with the time to build, Sharon. And, you know, who do we want in our facilities running? You know, having experienced Celsius going to Chapter 11, we're very cautious about just taking any hosting customers on there moving forward.
spk05: Understood.
spk03: And that actually leads really well into my next question, which is just, you know, how are you thinking about your growth timeline given the lower Bitcoin levels right now? Is there any risk to achieving your hash rate targets if Bitcoin hovers around 15 to 17K? Thank you.
spk02: Yeah, so I think at the moment, you know, our hash rate targets is a combination of two things. It's both our self-mining and our hosting clients. we feel very comfortable around the hosting client assumptions um you know look we're still profitable we've still got margin here um around this 15 16k mark um we've got a great power contract in pa which you know makes money mining affordable and we can and can operate there um you know the the api sites are 3.6 cent power rates so you know mining down there at this price point works for us still um So, you know, we are always considering how and where we add equipment and at what time and so forth. I guess for us, our focus is on the infrastructure at the moment, so we're very, very focused on getting, you know, who Sharon built, API builds, and we're very focused on how we get that built for the lowest total cost per megawatt out there. That key focus on getting the infrastructure built cost-effectively is really important to us. And, you know, so we'll reconsider, you know, when we buy equipment, what equipment we buy and when we turn it on. And we always think about that in terms of payback periods, you know, what's the payback period on any new equipment. And that will be especially important for us as we look to acquire any other future equipment.
spk09: And Josh, the other thing to note, of course, is that mining hardware is certainly getting cheaper by the day. So we're also very cognizant of that.
spk06: Of course.
spk05: Thank you very much. Appreciate the comments. Thank you. Next question will be coming from Kevin Deedy of AC Wainwright. Please go ahead.
spk00: Hi, guys. Thanks for having me. Appreciate you tackling my questions.
spk05: Anytime, Kev. We love hearing your questions.
spk01: Okay. All right. I'm curious on a couple of things. One is, what do you think your CapEx ballpark will be to finish sharing on, say, a per megawatt basis? And where do you stand? I mean, I understand some miners went to CleanSpark. Not entirely sure how many. I'm curious if you can give me an idea on... what you need to get your hands on in order to get your four, hit your four extra hash target for your end and self mining next year.
spk02: Um, sure. Why don't I give Liam the, uh, per megawatt, um, one cause he's, you know, looking after the operation side of the business and then I'll talk to the equipment.
spk04: So Kevin, uh, Fully deployed, our sharing site, we're looking at $250,000 per megawatt for a fully deployed site. There's a large number of efficiencies within our business now with regards to just the sheer volume of modular data centers that we're purchasing, as well as our transformers, as well as we've now got a fair bit of fitness, if you'd call it. with regards to building these data center sites. So there's a lot of efficiencies that we're seeing come through the business. So we're targeting $250,000 a meg to get Sharon completely online.
spk01: How much have you spent thus far, Liam, and how far do you need to go?
spk04: At the moment, we've only spent money on the six mobile modular data centers that are required for the site. That's all that we've had to put down so far.
spk02: And the transformers. And we've got some transformers as well in that site.
spk01: Okay. Yeah. So you have what you need to support the 12 megawatts that you're committed to there now?
spk04: Exactly. The 12 megawatts is fine. The remainder of the site we still need to purchase. We still need to fund the build out of that.
spk01: Are you sticking with the modular designs that you used in Georgia?
spk04: Yes. The only difference is that there is the capacity for the units in Pennsylvania to be turned off remotely so that we can participate in the energy curtailment programs. That's the only difference, which is a very slight variance. Oh, okay. They're exactly the same unit that's down in Georgia.
spk01: Okay. Can you give me an idea on how many miners you're moving from Sandersville and sort of where Midland stands and what you'll need to fill Sharon?
spk04: Sorry, was that with regards to asset units?
spk01: Yeah, yeah, just the mining rigs themselves. Because I've completely lost track. I mean, I noticed... On your timeline, right for the current quarter, you expected about 1.2x to hash dip. And I'd imagine that's on account of the transit. I just was hoping you could give me some idea on, I guess, what your machine level is and where you need to go to get to four. How much is in your hands, Liam, and what do you need to buy?
spk02: Yeah, so we need to pick up, Kevin. I'll take that one, Liam. So we need to acquire about 2.5x to hash with our current capacity. We've got some gear moved up from GA to PA. That'll come on most likely, you know, very beginning of Q1. It may be late Q2, sorry, late Q4 this year, but it's most likely Q1 that we turn that gear on as we finish, you know, both the ATI and the Sharon build. And then, you know, we've got to go buy 2.5 exahash to hit the 23 guidance. And depending on when we buy that, what the price is, you know, obviously we'll need to fund that at the appropriate time. But given where the current Bitcoin price is, you know, we haven't rushed out to try and commit to any of that, Kevin, at the moment, because we just want to wait and see where, you know, the price and the return metrics all sit at the moment.
spk01: Okay. So... You'll need – I lost you. I apologize, James. I lost you. You'll need to buy 2.5 to get to 4?
spk02: No, sorry. We've got – we have approximately two extra hash of equipment currently. So, you know, we'd expect we'll probably cycle some of that gear. We'll, you know, sell some additional gear during a period, you know, But, you know, we have a recycling program where we sell gear and buy gear. So we're thinking about it as a business that we would be, you know, probably buying some additional equipment, selling some equipment. So we think overall probably, you know, somewhere between two and two and a half extra has to be bought during 2023 to keep guidance open.
spk01: Okay. Fair enough. Have you had a chance to get your hands on the 1346 or the 1366? We haven't yet, no. Okay.
spk02: We're having conversations about them, but, yeah, we haven't got one yet. And, you know, we're not looking to procure any equipment before January, so, you know, we've got a little bit of time off our sleeves on all of that at the moment.
spk01: Okay. The opportunity in Texas, is that something you're devoting any financial resources at this point? Or I guess I'm just kind of curious how you're thinking about it from a timeline perspective.
spk02: Yeah, we've obviously got the Texas asset. We've done some work firming up the energy and the leasing and all the work there, including procurement of, I guess, some transformers attached to it and so forth. We're really focused on getting the business up and operating up in that Pennsylvania region. And I guess we're ultimately looking at, is it a non-core asset and should we be selling it and And that's something we're currently actively considering as we refocus all our attention up in that PA region, because we're up in PA, Kevin, with phenomenal power, great contaminant, the JPM market allows great edging and long liquidity in that market. And it's a cooler environment. So, you know, the equipment runs very well up there. We don't have to battle the heat like you have to battle in Texas. So, you know, there's some advantages there. as well. And, you know, so we're really focused. And then operationally, all our sites are within, you know, an hour of each other up there. So, you know, we're very much thinking about refocusing the business in PA and around the PA region, that northern half of the US, as opposed to splitting the business between Texas and PA. So I'd probably consider it as a non-poor asset for us, and, you know, we're considering how to best approach that.
spk01: Okay. Appreciate that. Welcome to the call, Ariel. Glad you're joined, Mohsen. I think you mentioned cash balances post the close of September, and I missed the numbers there. So could you run through sort of your balance sheet from a cash and debt perspective as it stands, I guess, after the cash changed hands and whether or not the debt levels changed?
spk08: Yeah, sure. Hi. Thank you for your question. Look, at September, you would have seen the balance sheet at $1.2 million. And with the proceeds of sale, we had in the slide deck, it shows that from the sale of Georgia facility in October and November, we received $20.6 million in cash hitting our balance sheet since quarter end. We've got further proceeds of sale coming in. in different forms. That gives you an indication of how we're utilizing our cash resource, paying off debt, down debt, is a strategic play for us as well.
spk01: I was just hoping you wouldn't mind giving us a little insight on the specifics of the debt, collateralized, and you know, whether or not there's recourse. Any insight on those things? Because I know I've had these discussions, but I've forgotten.
spk08: James, did you want to talk about that?
spk02: Yeah, I could probably give the... I'll give you the whole history. So there's two debt facilities, primary debt facilities. One's the Marshall Investment Facility, which is over the Australian assets in Kodal in northern New South Wales. They're over the miners and the MDCs in that location. The second one is the Celsius facility and that has been collateral over some miners as well as some MDCs attached to the ATI facility. They are attached to those assets. You know, they are, I guess they're not like some of the, they're not just purely equipment facilities. You know, some of them, you know, have extra flexibility in them and they weren't just asset equipment facilities. They were to enable us to purchase the infrastructure like containers. So there is a bit, you know, they are recourse loans at the end of the day, ultimately. So, you know, we're very comfortable with them though. You know, we've made, We won't go into specifics, but we have made paydowns subsequent to the quarter end in the ordinary course, and we're really comfortable with the profile.
spk01: Very good. Okay. Well, great to talk to you gentlemen again. Thanks for taking my questions. Appreciate it.
spk05: Thanks, Kevin. Thanks, Kev. Thank you. Next question will be from Bart Baquet of Baquet Capital. Please go ahead.
spk07: Hello, thanks for taking my questions. So I know this great job on the SG&A down about 47%.
spk05: Is that sustainable on a go-forward basis? Yeah, on the SG&A, yeah, we believe it is.
spk02: You know, we worked really hard. We ran that SG&A for a period. We're obviously expanding, but we've removed all the staff costs post-period end in GA. So actually that number should be a little bit lower, I believe, as those additional staff members in our GA side have been removed. I guess one of the benefits of us having high insider ownership and management completely aligned is we're really focused on... removing, you know, running costs and keeping, you know, the P&L tight and, you know, getting most of that out of our balance sheet. And to give you a bit of a feel, I think we've saved probably about $100,000 a week out of the GA exit in ongoing costs. So not only did we have the benefit of, you know, releasing that capital and booking a profit on that sale, but, you know, the ongoing operational costs are materially reduced as well.
spk07: Understood, and thank you for that. And I'm looking at page seven of your new presentation that you just uploaded. And it looks like your trade and other payables went down by $19.5 million between the two quarters. And I guess it says current. So that means maybe subsequent to the quarter, the balance was further down because I'm also comparing to the balance sheet data. And it seems like maybe after the Q3 ended, it further reduced that payable number, which is encouraging. Do I understand that correctly?
spk02: Yeah, that would be a very fair assumption to make. Okay.
spk07: So, Dan, you know, next question is, and this is your own numbers, at the end of Q3, you're reporting a $1.14 basic net assets value, book value, and that's, you know, I guess not counting the... some of the CleanSpark shares that you got, which are in today's numbers, seven, eight million bucks. And you got some, I guess, receivables from them as well that you're currently getting. And you cut your GNA by 47%. Revenues are up significantly, including the energy market revenue, which you have visibility on. So my question is, I mean, obviously, you're executing really well in a very difficult environment in multiple revenue buckets. if your stock is trading at a 30% of your book value, and also another point I will make is since your July financing stock is down, um, more than 50% plus, and your business is significantly better and the balance sheet is significantly stronger. Have you thought about, um, maybe on doing the, the, the raise, meaning, um, just, uh, a stock buyback, uh, all sorts of, uh, maybe eliminate the dilution and also increase your ownership as insiders as well, being on the same boat with us shareholders. I mean, I think the stock offers a tremendous value, and maybe there's an opportunity to balance between growth and owning more of what you have today, which is, by all metrics, is very appealing, at least to me.
spk02: Yeah, look, I don't want to pre-empt your board decision is probably the first caveat I'll say to you. So, you know, ultimately capital allocation and capital strategy is a board decision. You know, what I would say is, you know, the board is putting together a capital allocation strategy and we have a board meeting around this scheduled. And, you know, all things are being considered. You know, we're very aware that the share prices, you know, has had a divergence. from its NTA and what we believe are the fundamental economics. But buyback's on the table. Capital management strategies are all on the table and all going to be considered as part of that.
spk07: I'm very encouraged to hear that, and thank you for considering. That's all for me, and keep up the great work. Thank you. Thank you.
spk05: And if you have a question, please press far than one. Next, we have a follow-up question from Josh Ziegler of Cantor Fitzgerald. Please go ahead.
spk03: Yeah, hi, guys. Thanks for taking my follow-up. Just one question here, and that's really around understanding how much more capital is required to reach your target, especially considering there are up to $26 million or so of cash coming in from CleanSpark. How are you utilizing that cash for your capital commitments? And also, how are you thinking about building out sharing by leveraging funding from hosting partners?
spk05: Thank you. Yeah, so I think I can take that again.
spk02: I think we've got a sound build-out and capex strategy around how we build out the facilities that's funded through existing cash flow and some of the proceeds. and take into account all our balance sheet requirements over the next 12 to 18 months. So we're pretty comfortable around building out the shower room, building out Midlands, I think, you know, the capex that we need to consider is, you know, what equipment we need, what additional asset miners we need to acquire during the period. And I think any of that could be offset by any, you know, non-core asset sales that we might be able to, you know, realise in the forthcoming period. So, you know, everything's being considered and how we ultimately get the most efficient balance sheet. You know, we're not wed to owning assets for asset's sake. You know, we want to have a very efficient business. And as part of that, we're looking at, you know, You know, assets that are non-core, can we dispose of them in the market at an appropriate price where we're profitable on them? And can we recycle that capital ultimately to get the best return for shareholders?
spk06: Great. Thank you very much.
spk05: Thank you. This concludes our question and answer session. I'll now turn the call back over to Mr. James Manning for closing remarks.
spk02: Sure, I just might take one other, we've got a couple of other written questions here. I've got one from Mitch Duren. What is your plan for meeting the NASDAQ share compliance? Is it a reverse split and when? Mitch, just briefly, we are in the process of preparing a reverse split, which will get us back into NASDAQ compliance. I'd expect that will go out to investors in the December period, and ultimately be completed by February, March. I've got a question from Andrew Turner at Fairfax Metre. How will Mawson earn income from its Bitcoin mining in the longer term? You know, our business, Andrew, our business has three fundamental fields of revenue earnings. That is our hosting business, our Bitcoin mining and our energy markets program. I think, you know, when you consider the combination of our energy markets and our Bitcoin mining operation, they work hand in hand and each and the energy market programs to provide this with, you know, extra marginal low power costs ultimately to be able to mine Bitcoin at even lower prices. So, you know, how will we earn income from Bitcoin mining? By simply turning the machines on ultimately. But I think the actual answer is, you know, by having really good sound long-term power contracts that are, you know, renewable energy based that give us a, you know, a long-term competitive advantage in the space. And then the last question I've got is from Nick Schmidt. How much Bitcoin is sold on the balance sheet? The simple answer is none, Nick. We sell our Bitcoin daily. We regularly sell our Bitcoin and I think that has definitely played out well for us over the last nine months of this year because we've not found ourselves with a downdraft from the Bitcoin moving Moving in a negative direction, we've been able to sell those daily and realise those. I'm sorry, I've just had one last question pop up. This is from Matt. CleanSpark has a ROFA on MIGI USA assets. What does this mean? Great question, Matt. That question is, what does the ROFA on the MIGI asset mean? Look, we've got a very good relationship with Clean Spark. They have, you know, they obviously bought our GA asset. They're very keen to look at any other assets that we have in the U.S., They are great assets, I think. In our mind, the assets we've bought, we've built very, very well. We've got a bit of a cost and competitive advantage, the way we build these sites. So we like to think we can build them well and sell them well. The ROCRA would enable someone like Cleanspire to meet their targets by ultimately buying additional sites and additional capacity for us where they could install equipment. And, you know, they've got the first right to have a look at those assets if we decide as a business we'd like to dispose of them. So we will, you know, work with them and any non-core assets and take it from there. With that, I have no more questions that have hit my inbox or on the questions box. I'd just like to take a moment to thank everyone for their time this morning. We're really looking to Q4. Happy holidays to those that are based in US. We know that's up and coming in a minute. We are super excited to close out Q4 for Mawson. It's been a great second half of the year. It's been a real turnaround story for us. I want to thank my management team, Liam, Ariel, Nick, Tom, Junlei, and so forth. The team's been great, and also my board as well for the support they've shown us through tough times in the crypto space. I think we're in a really good position to see through the other side. Finally, I guess the biggest thank you is to our investors that continue to support us, although some seem to be selling more than they're buying, evident by our share price. But for those that have stuck around, we greatly appreciate your continued support. And for the new ones, we really appreciate you coming on board and supporting the story and taking the time to understand our business. So thank you, everyone, and have a great day.
spk06: Thank you. Conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
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