Mawson Infrastructure Group, Inc. (NASDAQ:MIGI) Q3 2022 Earnings Conference Call November 14, 2022 5:00 PM ET

Company Participants

Nick Hughes-Jones - Chief Commercial Officer

James Manning - Chief Executive Officer

Liam Wilson - Chief Operating Officer

Ariel Sivikofsky - Principal Accounting Officer

Conference Call Participants

Josh Siegler - Cantor Fitzgerald

Kevin Dede - H.C. Wainwright

Operator

Good day and welcome to the Mawson Infrastructure Group Inc. Third Quarter 2022 Earnings Call. [Operator Instructions] I’d like to turn the call over to Mr. Nick Hughes-Jones. Please go ahead, sir.

Nick Hughes-Jones

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 at Mawson. Joining me today is James Manning, our Chief Executive Officer; Liam Wilson, our Chief Operating Officer; and our Principal Accounting Officer, Ariel Sivikofsky. 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 21, 2022 under the subheading risks relating to our business as well as the 10-Q filed today, Monday, the November 14.

With that, I will hand it across to our CEO, James Manning.

James Manning

Thanks Nick. Since our Friday’s night close, Mawson had a market capitalization 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 for three business lines; our Bitcoin self-mining operations, hosting colocation, and finally, our Energy Markets program.

As at the end of September 2022, our Bitcoin self-mining and hosting colocation 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 mining, 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 U.S. dollars. Throughout the third quarter, Mawson continued to participate in this energy market program, generating $6.3 million in the process. This program enables Mawson to monetize its energy by curtailment 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.