Big Digital Energy, Inc.

Good afternoon, and welcome to the Mawson Infrastructure Group's first quarter 2023 earnings results conference call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. At that time, if you have a question, please press the 1 followed by the 4 on your telephone. If at any time during the conference you need to reach an operator, please press star and zero. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tim Broadfoot, Chief Corporate Officer. Thank you, Tim. You may begin.

Welcome, ladies and gentlemen, to the Q1 presentation for Mawson Infrastructure Group. In this presentation, we look forward to updating you to the operating and financial performance of the company. In today's presentation, we may make forward-looking statements. We bring your attention to the disclosures on slide two regarding these statements, and encourage you to read our full disclosures in our most recently filed 10-K and 10-Q. In addition, some of the metrics in today's presentation use non-GAAP financial metrics. We bring your attention to slide 13 for a reconciliation of those metrics. Mawson utilizes a dynamic three-pillar approach to revenue generation in its standard business operations. This allows for a robust revenue model to navigate the volatility in all associated markets within our industry. Firstly, we have our self-mining operation. Mawson currently has 13,500 miners deployed and hashing at its facilities. Secondly, we enter into long-term hosting contracts with 50 megawatts deployed and additional 70 megawatts planned over the remaining of the year. Lastly, we have our energy markets program. That enables Mawson to mitigate energy pricing risk, support the local grid, and also earn high margin returns by strategically reducing load during high demand periods. I will now hand over to our Chief Operating Officer, Liam Wilson, to take you through the operational updates from the quarter. Thanks, Tim. Mawson has started 2023 with a bang. We announced the sale of our Greenfield, Texas land and transformers for $8.5 million. We complemented the strategic sale of Texas with the addition of our new facility in Corning, Ohio. This 24 megawatt facility has a further 26 megawatts of capacity, capable of holding just under 15,000 miners or two exahash equipment. We are actively looking for the right hosting partner for this site. The site will be a mixture of self-mining and hosting. On top of Corning, Ohio, we have secured an additional 20 megawatts at our live facility in Midland, Pennsylvania. Operationally, during the month, we have begun the build-out of the next 70 megawatts of the Midland Pennsylvania Fertility, as well as the first 12 megawatts of our Sharon Fertility. We are looking forward to having that power come online through Q2 2023. We firmly believe that Mawson has best-in-class operations. Our uptime through Q1 was 92%, with the 8% being curtailed hours when we were driving revenue through another strength. We have 264 megawatts sewn up with 88 megawatts currently online. We foresee having 132 megawatts online through Q2. What makes our sites more impressive is that they are both carbon-free, being 100% nuclear, and also sit within Pennsylvania and Ohio with cool winters and mild summers. The average temperature through Q1 was 43 Fahrenheit or 6 Celsius, which is perfect Bitcoin mining weather. Mawson strategically locates and acquires assets in specific locations which provide optimal operating conditions in a variety of different ways. We like our sites to be located in deregulated markets where curtailment is an option. However, we need a reliable grid. We like our energy low and accessible to a readily accessible workforce near major cities. Most importantly, we love a cool climate, which means air-cooled is the preferable operating model at both inflated and deflated BTC prices. Our strategic decisions to operate in cooler climates in certain parts of the US allows us the advantage of not having to concentrate our efforts on immersion. This is a huge advantage when it comes to the efficient deployment of capital. Our in-house designed MDC solution is manufactured and installed for $527 per line-up, which is a market leading price. This is in comparison to approximately $3,635 per miner, the immersion systems needed to effectively operate mining farms in warmer climates. Mawson has one of the most solid and robust energy pipelines in the industry. Our flagship facility in Midland, Pennsylvania is supported by the Sharon and Corning facilities. We are also in deep final discussions for additional sites in our region, which we're excited about hopefully announcing to the market soon. Not only is our pipeline solid, but our history of execution is reliable and market leading. With our secure energy pipeline and ability to execute, Mawson has set itself up for a very successful and fruitful 2023 and beyond. We are aiming for 7.2 exahash of units installed by the end of 2023, with our target set on 10 exahash in 2024. Our mining fleet consists of 20,000 units at the moment, which is capable of producing up to 1.7 exahash of computing power, which translates to approximately 4.45 Bitcoin per day. This equates to $124,000 a day at the current price of Bitcoin, or $45 million per year in revenue. We are actively looking to test new units at the moment as we decide when and where to place our next large order. We have space in our pipeline for additional miners to be deployed and look forward to updating the market on this in due course. With that, I will pass the Chief Financial Officer, Ariel Sivakovsky, for further. Thank you.

Thanks, Liam, and thank you to everybody who has joined the call today. Following on from the operational measures discussed already, some of the financial highlights of Quarter 1, 2023. Mawson generated mining revenues of $2.8 million. Pleasingly, our co-hosting business continues to generate solid revenue growth at $4.3 million for the quarter, with the energy markets program contributing another $400,000 at a gross margin of 84%. The sale of assets contributed $1.59 million of revenue, primarily being the sale of marketable securities, being the CleanSpark stock. The cost of revenues amounted to $4.7 million. The net EBITDA result was a minor loss of $2 million, an adjusted EBITDA loss of $400,000. Quarter one US GAAP net loss was $11.4 million, being a similar result for the same period last year. Moving to the balance sheet, as that quarter one closed, the total assets of the group amounted to $116.7 million, primarily made up of fair-valued fixed assets of $84.6 million, derivative assets of $10.6 million relating to the energy markets program, and trade and other receivables of $10.6 million. The liabilities amounted to $50 million, with trade and other payables and borrowings being $24.2 million. and $22.9 million respectively. This results in a net asset position at quarter end of $66.7 million. Now, as a summary of the previous two slides, and in reconciling to our statutory reporting, from a net loss of $11.4 million, similar to the same period last year, a minor adjusted EBITDA loss of $400,000 was achieved. from total revenues of $7.7 million and costs of revenues of $4.7 million. An overall growth as profit margin of 40% or $3 million was achieved. As detailed previously, as that quarter one end, total net assets amounted to $66.7 million from an asset base of $116.7 million and total liabilities of $50 million. It must be noted that our liabilities were reduced by $8 million in this quarter. And with the subsequent events highlighted earlier by Liam, being the close of the Texas R transaction and the successful $5 million capital raising, it strengthens our balance sheet further. Now I hand over to Tim Broadfoot.