Bitfarms (BITF) 16 May 222022 Q1 Earnings call transcript

Good morning and welcome to the Bitfarms First Quarter 2022 Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to hand the conference over to David Barnard with LHA Investor Relations. Please go ahead.

Thank you, Anthony. welcome XXXX. conference and first for everyone, of quarter morning to call Bitfarms’ the Good on call and me of and With the Lucas, Bitfarms; Executive Grodzki, Jeff Geoff Officer Chief Morphy, Financial President Chief Chief Officer; today Operating Officer. is Emiliano

please onto begin, is call www.bitfarms.com Investors our accompanying website this with the slides, being along Presentations. To at watch note, with live you an we Before webcast presentation. can log under

presentation smartphone, prefer there to the you results. a issued listen I its can financial like as from your quarter announcing first would that the you well. If this you call download press to remind release XXXX on Bitfarms to morning

place Turning and risk factors certain Bitfarms company. on that statements not to public to documents press risks www.sec.gov/edgar. Listeners remind Bitfarms’ and required forward-looking revise information in undue regard, or to make obligation statements certain Please from I listeners to assumptions cause could out the and you different want expectations that no forward-looking in materially are applicable statements on as the or cautions set update statements. Slide based should information that www.sedar.com undertakes laws. and forward-looking refer The information release and filed see other to today those results actual today's X. than also that we reliance on are Company forward-looking by of any or securities

EBITDA to and Earnings direct Bitcoin the cost on number the of and Taxes, the of divided the of EBITDA our analytical have Bitcoin, in before EBITDA percentage electricity margin adjusted gross related Adjusted Interest, non-IFRS hosting is information to measures following prescribed complement total is as certain EBITDA IFRS mining IFRS presented similar EBITDA Company uses minor mined. based and measures to references cost by non-cash not the margin; from costs and expense. total is by IFRS costs quarter will value dividing excluding mining These items defined other compensation management The IFRS limitations XXXX in and matters the be all changes Company mining a Amortization. less that amortization of U.S. the and alternative otherwise EBITDA of of measures: mining mining tools Gross call, as refer and for of under the other Direct either G&A may as a comparable not by management’s Gross profit and have release by and results a including and gross recognized unless the are when Depreciation obtained Bitcoin the for charges as depreciation measures the this of companies. for defined mining meaning company’s reported Holdings analyzing as equity Please mining cost We not Bitcoin discussion substitutes gross dollars operations provide do or segment for the company. understanding measures measures. to sales denominated During consider production further refer that and of additional note the reconciliations profit, adjusted represents results segment company's non-IFRS gross should invite their to therefore profit; aforementioned financial such as noted. IFRS. definitions standardized of of company. perspective. margin margin; IFRS isolation you today's is to revenues listeners earnings EBITDA, under and first the to included Company’s in in measures the to mining profit analysis

the CEO, follow During Emiliano financial the call remarks in will and I Jeff to that, Geoff in we the open Q&A. questions some today's I’ll turn the live after read call Q&A. Morphy review to review have management We've to CFO, Morphy. the will Geoff the will will send which over detailed with and call, analysts our Grodzki COO, advance closing requested President for after quarter operations investors a Lucas With to

Thank Despite price with we profitable gross EBITDA Bitcoin, XX margin to revenues in call. revenues. you, of an XX the would and to delivered million, which million, represents another like a today's erosion profit welcome XX David. of XX%, everyone XX% million, of which of gross mining mining of quarter I adjusted is

at faster quarter As the we have to our hash continued rate, X.X as X.X XX% XXXX. we December hash per as exahash network second from exahash than up end grow grow our was at XXst, Bitcoin rate

an X.X% share rate X.X exahash of believe representing presents market measurements is second. of facing the recent on per of As exahash, growth Bitcoin the us challenges network. share and network XXX Bitcoin We market we our the execute gain capital, of relative growth supply hash based increase may as the our for opportunity chains, constraints current industry about mining as plans to slow other against today, about overall

an XXX cost Bitcoin. $X,XXX at first the mined average we of quarter, During per Bitcoin

end rate an miners which over of our Sherbrook, of additional in will particulars, scheduled XX facility QX since installed to in location In our known Moving production to we achievements, total and XXXX, and existing more PH/s we the acquired the This our XX,XXX farms intended added Leger we XXXX, XX facility installed, retired develop MW and February, Paraguay in MW were be capacity operational January replace production where at current Bunker MW. our concerning to online and Garlock, the to XXXX. to more than Quebec. our XXX XXX Pointe sites along received increased miners, both Also an as Villarica, Sherbrooke, to in city X,XXX April, la nine, in QX. the new additional our in our commencing with we hash De and an QX initiated production at facility

last We capabilities. nine our the more moment. then, new three with core locations. months. five to for quarter X, as management Washington farms Quebec our of internally officially system is operating highlighted, XXXX I'll I end, that been slide. in in a of Slide operations, second-generation on just this elaborate developed the in operational grown strengths our the began and State. operating and with about nine our farms first we One locations summarizes shown has launched in have we one experience To six current beta minor this in that Since

Now, I'd like to the progress detail operations, a take locations. some recent moment these and plans of to at

Turning to Slide X.

for of We be planned partially la Sherbrooke. have at hydro Quebec was De This contracted Sherbrooke to moved February, online. City Sherbrooke, in megawatts. ramping in power operated offline facilities at total activated new XX the of the within in as XXXX, first to megawatts. to XXXX its end currently first retired and is of come be QX with Sherbrooke XXXX, and our our in Bunker, location XX Pointe scheduled first is The fully location of March, megawatts XX operations phase up a is in

Under second. And completion to the XXXX. megawatts today, Upon build XX exahash drawing our these and megawatts. targeted which are third out, phases second we remain quarters X anticipated As facility, XX to miners, currently X, and in the megawatts full of for and megawatts, XX construction, involve Phases of XX slated XX,XXX respectively. X.X Bunker and be housing per deliver is a

of called XXX over which the short April Bunker production capable Upon new XX over have facility XX This X, from generating Another PH/s. this is and full completed in on we started Sherbrooke of location distance megawatts. Leger, located a currently buildout, will is of megawatts delivering Construction a be location PH/s. total XXX of

professionally the power facility combined mid-March within another of and la Each Our locations to with the and optimistic power, will power. for design consisting the six, help utilize country. Cuarto, and The and of We reductions acquired for Pointe with is we the are our newest having XXX to we opportunities turn deployment utilize which of gained to planned stranded and the agreement up completion our megawatts accordance XXXX. farms phases. from is hydropower hardware Southern XX,XXX Sherbrooke facilities. began the and country Bunker and XX initial private for and and XXX States. to established of company's farm is the inside intended in production the style contracted new fully De construction QX are production and Argentina, in of a turning project, with the capacity we warehouse in X in in experience megawatt a and in are in at XXXX systems Please megawatt under of farm buildings foothold the January. This named sound is X present With construction United and a low four to XXXX. which company our facility. is will X, have otherwise on move gates like sound announced Canada company, Sherbrooke for which power City engineers is plans Garlock slide a Phase revised facility, this In XXXX. during previously replace development facility This benefit timing XXXX. this about location X, that in on larger property XX Rio suppliers seven. slide Phase further there, Paraguay, working with cost Sherbrook increasingly to at available October, is megawatts company's capacity building is Villarrica, third-party and of Garlock, run municipality. September, in completing the our We under Leger facilities Please reached which anticipate XX these a XXXX. contracts advanced approach The the in in also In in the miners the two picture phase Hemisphere. cooperation initial megawatts of developed

full natural of the are recent build of impact Given Cuarto and adverse of the potential we farm. the Rio on reassessing prices, the timing gas out in events scale geopolitical

be development to area clear, still for Argentina attractive new an opportunities. remains However,

diverse We region within country. a farms are mix anticipate developing active of and in the the ultimately

the in operating in stands X, to farms from X the total in Paraguay. at addition Canada beginning another XXXX. up of which and Turning summary, In is eight. of X production includes farms now at This slide

on have of we XXX XXX up December As from of today, XXst. capacity megawatts, megawatts

under additional an expected total online by development that megawatts of XXXX. megawatts for come XXX are capacity have December XX in XXXX, plant to We XXst,

to profitable the Since global we self-mining our world. Turning in largest most decentralized Bitcoin the nine. integrated, operation. vertically in and beginning remains have a been miners slide Bitfarms of XXXX, one

repair of and contractor electrical in authorized our miners including the infrastructure, with help electrician center and remain capabilities as our lowest in-house licensed that subsidiary we owned wholly over the ensure industry. strong XX cost Our one

revamped to been to internal than for system expertise, and a miners execute XXXX, efficiency minor our in prioritizing infrastructure, global enabling cost alarms, With on improved and nine been decentralized continues electricity. the management has that we by expanded we be, thousands diversify its proven portfolio recently farms reliable are mining generation improvements, the strategy better with software to for This positioned sensors, visualizations, operations. our and last increased beyond. effective plans to continuous focus drive Our management ever Illustrating growth team and management mining to manage software has hundreds locations company performance second strong upgraded features tracking, controls, our a with months. of our beta for The metrics, in uptime. enable maximizing on of launched across

One in of and of operations our strengths uptime are we is proud statistics. our

a miner mining sometimes economic fact, capable five achieves consistently type and of beyond. life metrics of having are and well our now equipment maintained, utilize we and high is In clean, years the uptime usable

greater generation while is productivity and to limit center efficiency our perform system improve even to wholly-owned management which seeking one at of repair results time design mining our same constantly improvements latest and to efficiencies. downtime, minors Also substantially unscheduled our and subsidiary, electrical and Our these and are the maintenance our contributor. contributor scheduled contributing

miners. installations turn MicroBT For XX. from of approximately fleet Deliveries and Bitmain XXXX a numbered minors latest review XX,XXX generation and in and QX activity to Slide

is install to ordered past of of Quebec XX,XXX the XX,XXX X,XXX XXXX in As per January, miners XX,XXX be whole approximately with April, of month today, fleet planned for The Argentina, commenced approximately and miners. XXXX. during our installed in this total deliveries XX,XXX

these purchased as several in Bunker have made in these about transit at would which very like Leger miners. farms. to attractive made miners at of XX,XXX the considered is X,XXX. have is operating X,XXX miners even be been and The of an month. being presently date, XXXX that of X,XXX miners nearly running to we or installations and scheduled terahash, at As miners is Deliveries have received to you per of run average were reduction I with current price $XX.XX remind XX,XXX also prices are

the equates recent builds on gains which daily payback despite Bitcoin the Leading on on into came minors per stands operating of current of portion Please to to about to revenue. emphasize, X about the of Our This Bitcoin with now related $XX,XXX based production the approximately we $XXX,XXX XX.X prices daily per we the Jeff and for at of our short day, and XXXX highly reported sheet. a goals. and and Further, our turn first through price with since last low Event production the our Lucas' Bitcoin, May, highest plan sub and XXXX. remains want cash in million of production, level offers quarter marks in net results in presentation, balance XXXX the decline investments before cost Slide our Halving updated mining infrastructure. healthy of income profitable discussion reported profitable last call I with Bitcoin a in in XX

plan XXXX, for to construction Canada discussed earlier, expansion exahash reflecting end capacity provide to as miners projected year well underway are in contracts construction Paraguay. infrastructure and by Argentina X adjustments of as our existing as Our

quarterly are as per minor infrastructure sec XX, exahash of sec achieve rate September based X.X X.X of XXth, hash June of and exahash construction schedules XXXX as XXXX as X.X per delivery Our current XXXX. on targets per December XXth, sec exahash to XXXX, and

capable evaluated with We exahash are scheduled -- and X.X operational. continue pace I orders provide end being hand XX. to will exceed XXXX opportunities mining will Please be company's in be last, to additional and And others will delivery that, the to for the to expect X producing reach that now XXXX. miners to miners when assessed up be Lucas. and will and will call infrastructure slide goal hardware by With turn Jeff over exahash the of of the

a continue financial Geoff. and have In solid you, Thank summary, to we margins, strong position. profitability healthy

our levels. a focus healthy low of competitive currently to Bitcoin cost highlights XXX our with continue with on Bitcoin average Overall, cost margins. some production being quarter flexibility. $X,XXX financial mined per advantages of cost maintain discuss experienced lower an XXXX. significant the producer, and Bitcoin Let's of first We consistent being historical offers Even low we we which prices at

adjusted period. million Bitcoin, EBITDA million of $XX of financing non-dilutive to loan $XX into continued million $XX versus our equipment portion This fully of collateralized a $X.X quarter additional in a our the ended in in first During use price. collateralized the period hash even $XXX our achieved and prior with an a from we’ll income From fund of loss in equipment the quarter ago million, available increase million versus to reflecting largely facility were our then do net We we speaks year period revenues Bitcoin the sources facility. standpoint, by generate facility for this the a rate to $XX generated profitable excess difficulty, in the of decrease quarterly a up in and latter year of average year-over-year increase $X.Xmillion under XXXX, million of credit year revolving network $XX XX% we've financing the of financing our million utilizing ago achieved growth. the our

of our foreign the reflecting XXXX net million of of million $X.X loss income Argentinian of Turning compares per approximately in net share our end. or million, income of for quarter as of review the result price at of net quarter This the quarter $X.XX. provision of the in first XXst, expense $X.X a of million net lower an our loss gain XXXX, March holdings a line, fully Non-cash a X.X exchange tax Bitcoin loss a to associated our $X.XX of the Bitcoin at compensation bottom million to share are million. with includes $X.X $X.X detailed diluted first financing and revaluation of income, expansion per $X.X a

of ago, I As $XX first adjusted XXXX. EBITDA to quarter decrease million quarter in quarter XXXX the a This mentioned was the and million $XX $XX XXXX from has compared in of a moment million. fourth increase first

first of fourth in and in from XX% quarter in year quarter Our XX% period margins EBITDA margin adjusted strong ago continue to the XXXX up XXXX. of of with the be the XX%

with to $XX the and valued the review of March sheet. as million. XXst slide of at balance X,XXX quarter Turning million XX, first $XXX cash ended We we'll Bitcoin

today, quickly sufficient and our act we million. sheet discussion about that our $XXX on financing strategy. investment opportunity Bitcoin. of flexibility relatively us actions our stood of our capital Working to XXXX goals shareholder's while protect financial X,XXX capital. This overall and environment, today's exercising of our at to maintain enable at key hold maintain supporting prudent at brings a us to As funding XXst, we to March growth, In a the we low cost of strength are planned identify, balance all of to

Bitcoin our way Our facility and credit of to leverage as holdings million could expected increasing attractive me, be backed digital our -- an accumulate. as has excuse holdings value expanded our Bitcoin $XXX been with the assets

$XX million in nondilutive Our unencumbered toolbox. instrument assets. equipment utilizing been as we and mining leverage secure have yet arrangements another funding in is financing judiciously to our agreement apply financing seek explored Similar digital

activities, effect. remains our in source use money of ATM very the light of in With financing, and most production our robust of we day, grow. to may adding balance equity Jeff crypto seen sheet that on the Bitcoin sector. we number across continues expansion assets. provides Our flexible daily each options are other hold the to depressed strength also in ongoing and carefully valuations noted And about while mine to which and our adds this currently XX.X our leverage we Bitcoin financial being

of of the be cost goal financing January XX% our program with our to plans sheet we since continue this our While minimizing capital. XXXX, we to with overall -- the mined of have about inception all Bitcoin hold have on flexible retained balance the and we of in on continue our of Bitcoin

are gross lower a Bitcoin our expenses. portion and recent operating prices, margins attractive production our monetized our Bitcoin to fund could be of daily ongoing Given

very the claim term. and remain throughout on XXXX. on steadfast well cost look capitalized is Bitfarms most attractive the While opportunities we building in long our forward in Overall, Bitcoin bit execute of and success bullish low financing to production and in term, we the to option before provide positioned short the holding may growth us,

global over management Montreal. institutional our and Analysts information Quebec. an Before that in more our XX Investor are contact Institutional report will mentioned in and Analyst of I Investor for operations review of we a call investors June to Relations may Day on turning the planning a back our include by event event. the farms The team LHA and Geoff, about

We Davidson also the Investment H.C. at presenting XX XX the May Global York Conference City. DA in Bitcoin Conference May on and Wainright are through and Blockchain Miami New X in June from at

With Turning Slide Geoff, prepared over that, Jeff? back Q&A. to XX. will opening who to our remarks call turn before the to the I'll call up close now

Thank Jeff. you,

to like Before how take for questions, in I'd we summarize current environment. are the we positioned your continued well success

today, As has from year than of are ago. X.X up X less with at and exa a operating we per X dramatically more than exahash little XXX per second, megawatts second,

countries: We the United production by and year-end. expect in Canada, Argentina operations have States now to X in we begin Paraguay, and fully

outpace network to the continue We growth.

about the We grown and largest public of network estimate our are Bitcoin the to market share miners one of X.X%. has

lowest industry $X,XXX as was hydropower. priced Our in low-cost production in mine first the amongst sustainably costs quarter, of our evidenced by are cost direct to the Bitcoin the

we XXXX, through in year. XXXX an per for at which of our early well low a prices in delivery committed cost placed cost last is below of fraction the several miners, basis contracted taking spot the to and a of equal order $XX.XX peers fall monthly XX,XXX are terahash, of current Our on

reduce in built margin highest EBITDA globally maximizing hydro energy. maximize of companies with XX% XXXX, in and revenues. amongst and diversified a to around international enjoy and adjusted of To risk low-cost our operations is achieving we countries QX opportunities, the footprint Our peer X source

of evaluating. portfolio a have that we We are new opportunities

stage some and XXXX and production being of can which Some and add in beyond. in discussions considered, advanced are others seriously XXXX for of

at team profitable sheet in we strong today and balance running results Significantly, otherwise and for ahead. call and capability Operator, resources questions. for enables a the built a volatile the our lastly, operational growth. industry open financing times. have up world-class profitable fund management shareholders And can expertise in efficiencies drive that brings Please and operations to that we and the industrial go operations delivering continued most to now scale our efficient are the to non-dilutive future. We

will [Operator Instructions] first H.C. Dede Wainwright. from question come Our Kevin with

in just costs you a think Argentina to of mind What Geoff, prices, your for gas light price happens What there? we PPA? reset? sort What sort you little about talked would bit and do on shifting a power that? perhaps elaborating you of should account your of

wars, wars, start Okay. into change well in and of Kevin, trade supply everywhere that. and financial wars, market the Well, we're of results aware right climate me crashes let chain. geopolitical now in terms currency

the in So wanted these proactive ultimate we've be be company ensure our our important its and the investors of to to in longevity incredibly to operations. markets always that terms the management of success. and transparent turbulent take absolutely decisions type it's and of times, the capital We think

is our X Argentina by gas got And that's project years. for that's prices. a only So we've natural there PPA affected

of completely the final kilowatt at not X prices. prices market higher it X And of the market much then around it Argentina experienced years to gas portion first years, is The the the is is is immune prices. world. hour and at at being $X.XX a per And rest

there. would decided we so that that costs going with And commitment down up slow our we there

State, X prices. of agreement XX that in power The changed That's year next going in X, decision changed, purchase have better visibility with are of getting conditions just hasn't warehouses up natural year reacting It's or we quarter the ahead running. we and the first all. October. the to activated we on a in is know and we what is every the and seeing are stable, are opportunities that which prices where Paraguay, been to getting. Quebec new seeing that Washington geography we're we're world in the other And that. next and second reliable other is And what And finished with also and in, gas the megawatts this hydroelectricity paying Or then our we're at follow we up one the time was a warehouse are want But question? us dividends answer the first you year. long we employed up to and the make and aspects. with when cost will mining for major strategy do So And are contributor a a current now. of ago, that of committed Bitcoin. to low in climate, a it we we it's few later Does have

I Yes. -- a of lot No. provides that color. additional

a So a much, the of financing drawn it. of the interest Also, I I exploration curious that. appreciate loan thank options. financing that talk rates I little the you I maybe think I of the associated arrangement Bitcoin $XXX tripped about the Mr. versus your loan can the of down capital alternative the guess on amount you with Geoff. very could just applaud collateralized bit up machine Maybe juggling down. million little keep about every collateralized discussed those. And you've arrangement. perhaps and associated Lucas expanding cost

sure. glad do Kevin. so, I'm Yes, to

expense expensive of is is of the overall the a time we That interest this place. BTC north first the lower -- stated of in collateralized indeed at of finance cost have the facilities least financing our all, equipment facility where little So point is overall the rate than in XX%. form

to continuing attractive source that a So here. the use us. been capital exploring of are that's looking as to we opportunity And and

mining here infrastructure so of have existing though, the profitability possibility we our can a and of, do this want consideration miners while also the is times here. supplement uncertain expensive comfortable are BTC high of backed we meet to a some opportunities really to to our with We to on also explore sensitive us assets, to utilizing And one be we our of some overall very nonetheless. leverage. expenses. we to maybe cost financing with here. to do position, well, forward of that margins going Kevin, unencumbered equipment the what's our the aware want as than environment, lot for in give is place, want more be sensitive but facility, are to These be attractive leading during Bitcoin, operating mined That Bitcoin to little very we that important we and a But financial

of may of the facility Now of out at capital. I longer but needs mined BTC BTC And some here what is wanted in rate facility, still that relatively goal lower and what at that on BTC that we ultimately -- over now potential that to if attractive to a that that's the are to the upside a backed when we is place, one to upside hold BTC course, of thing do time the facility, we want get in and we point be was other backed the have are assessing cost interest appreciation the is into place Bitcoin selling than point can the of term? to near able it, financing entered we rather the put in

in I are driving got ones newer tech So financing great to the here, in may our some thinking the we're that the to kind of from rear pointed want overall, to opportunities. of comment Kevin, really those those we've take and our Geoff benefit positioned what's to we other There pursuing. -- in closing, say do advantage always that's to this to allow just us But want at capital head to be place of opportunities have that here.

Murphy, -- you Jeff, apologies. Mr. didn’t

the X hoping might I U.S. of be you what's understand power? there, potential do just other avenues on the And time feel was ending are, much little you might And on buildings spend Washington what didn't are State. You where that. stand? let they back a Washington there us in And terms exploring? where know

course, expanded. Washington for be have Kevin. exciting place our The us to is Randolph an site to continues Of operations.

the other other discussions and going We states parts have on in that with of area. PUD the in

are there's there, the we did later opened in that sort have of providing here, yet. new are really that much X our So pending year, to we advise doors to be working we hopeful the needed. like this not activate on and to infrastructure fresh But utility ready disclosures and we're announce megawatts

are we I'm to site announced X, Orders and little it's as in year. the about time a bit to we'll announce into a detail first acquired year. on deal some that going the later equipment. order. part And we be Another anything provide not then hopeful firm. also able in cooling move of And do not we little to emergent yet in because for are news for ready next a hopefully, the we more for that the first time, this are that short

Okay.

So your And many what's have now? -- output you there? access the how do to megawatts what's

We have which are XX beyond. will XX right go operating to -- that then megawatts and now,

Okay.

Okay. explore Understood. What for that immersion location? you prompted to

coming we go of it from so put more the be in site-specific. of size with superior. the We of get was we doing quieter around systems start in need cooler is to slow buildings some output good we want first know the controllable. that It's them the and of don't got the commercial sound and to don't the residential locations is climate, to The fortunately place but to immersion that it. started. off extra like, was And to keep miners and more in really We have to terms site. able capital and of location miners immersion, world cool, that because the smaller Well, It's of the also to immersion. and around sort and location our that sound a site just -- just tanks put have

in So commitment we've given first that decided would our immersion go to there. cooling Washington -- our

Chris Our next with D.A Brendler question from Davidson. come will

bit what's the to in the potentially current of little more into here. and advantage how market. Bitfarms in conditions Congrats on a going results just the dive on could I'd take marketing like

rig down, I prices think like obviously, some it and are you have looks coming flexibility.

just And and potentially overall you So the market hear to comments sort could resets the there, rate maybe changed in about talk as things be of kind a Jeff, have too. your like of network how -- I’d on what positive may here? cash

Bitfarms. haven't my A we I crystal number last lot this there's strategic early yes, represents year of look forces Well, stacks really that here IPOs about for that the late into I of going ball think of year on happened. heard opportunities and as a

probably our think to markets at really causing Bitcoin and capital that us all our XXs, see We considerable the do did understand that We we effect has fallen into on fund of is very on deep We growth. the can with and very operations what to their that that capital look dive that. seriously and certainly from I certainly the position. they counted have. a public

a Fortunately, cost as we well. low production of have very

power, hydroelectric we're And So surprises. us going not are get to because that's increases. taxes, get shouldn't get positioning we and carbon completely We're using any commodity-based not going we well. to price

confident we that. are So about

is out good management do have and these last last would type over that of advantage take people, we We opportunities, who skilled of able M&A public safe If also the opportunities, it if a we've have can really or we a and built stretch that and of year in that. highly number to -- private to a some year, team a manner. be surfaced of have these hard

for for opportunity good have look those of opportunities. consolidation think market this we're I And and I in type ourselves months. many for very positioning to think we shape been

this higher That's time, earlier got maybe year that I that this, trying at for -- I think, that but constrain ordered we miners it have got years just to around think think going worsening look not people have operational the prices. had months be challenged. their or supply at chain. going as of only we expertise first experience people and last other margins. really X I We've to the We've probably are year doing

And and Paraguay, we So growth positioned neat of our opportunities. and very some already in Argentina, size for next. And this are I've looking really detailed very was that's I Washington, over at and as well we opportunities the out to good our with plans detailed. think look balance play year more some to guidance are cost, why same

from them. that year. the suggest that in we've pick to some a towards be a us to there's which that to assets coming exahash, and but opportunity opportunities exahash. like have Miners take target will next strategic see going or we up we'd believe still market and new allows this others can And X.X to of online capitalize we think we exahash, us to operations, bring more X got if year I everybody should track X

exahash scale here, are -- our past highest overstated. high part the returns. I among really add in then months, farms, them. If strength to we and key per that There capable helping any example, a the have of have we our improve of focus of achieved in -- really can't of payback we were major the have can return, large strength X the And BTC team of guys folks. the here our of that industrial an uptime the give superlative very point into these our the because be Yes, performance the operating and a bunch just in And have to that speaks

extremely lines, guess I expensive capital is think I equity along obviously those here.

But there to finding little rate? you're well guess, about your I And that causing have gotten more seems is to debt. X.X Or capital? And that you a is contractor environment. financing? shrunk of experienced debt the of hash have what the an the versus of I X.X, terms base that between like because be difference with you're for some else if and everyone Bitfarms looking at as additional just your bit still is contracted access sort something that's a the think that have in may rate So imagine as nervous operator little I alternatives those says like people

opportunities. in interest continue stage, even companies not a think only and but haven't me an we're the answer in us very achieved interested at And seeing happening among with seen hash continue driving particularly financing given here. initially we goals very But environment question, ball within in any what's playing the here let this here, do is as benefit interesting more that that can diminution find have not have And positive, from is to financing answer still here our to Jeff, financing what's in have the of what attractive than others us. sources that exploring we seeing interest and the of outside an interest that for sector, in are in opportunity I for better-performing terms people right we're we structure cost I to is and Well, the guys having still low in. get what such challenge that exa almost in your we initially The And our then ourselves. now you to step in. is these we're crypto, overall objectives our

Okay.

it's my now turn. So

in So had second our largely Argentina, reduction is the in activation chain previously supply it of issues. was year-end some the And in target and slotted the of sort some because warehouse We've December. completion megawatts. XX for

involved our There knowing with and dealing time to as are just appreciate we aspects. investors be Argentina. with that we is There more And might thinking We can other would what opposed thought bureaucracy. shipping would more it possible. do is we still --

a initial construction first warehouse giving activation instead of in next second happens that the feel to being will guidance it, finished actually we about quarter more talking just it and of the comfortable in slide activation that half So the and a sort And December, of of year-end. over year. second we're be of lot

not more just accordingly. know slipped supply the doing what logistics much, we it to of of But wanted by market it's of resetting So And very to people we're have hasn't involves it's but and the allow finances, because not it surprises. guidance and any chain. within

what everything said to we that's to we're we're going trying deliver do. So

will Investor. come from Private question Scar, next Stuart Our

shareholders capital of You much oblivion. what going do and finish also they've want are but where very, -- how the the I for? year. And rate. question into of to capital are execution, how great And your a paid company execution is for, like when has needs? for good you -- to what very that centers what management rate to for your to to comes capital be data you're And cash -- to guys seen paid it what expenditures I've know want [Hive] this need much doing with get example, My for more this are year's hash management. to What sheet at build-outs balance to do are who diluted is you you the is their

Sure.

me let answer So that question.

our million at balance biggest you'll for of we're the miners about we look a $XX of build so is the the the that remainder take financial that, from have out. the of or statements, million we you taking probably have on. of for that year $XX XX,XXX for If top anywhere additional the see roughly expenditures commitment On infrastructure

facilities really that more in be really financing in that finance encompass terms doing here. Our to of here. a as plan possible nondilutive And is equipment place would

thirdly, a Bitcoin forward. really because begin selective impact on greater we a the recognize do a to price make had basis very, appropriate, very can and selectively needs will on utilizing we Secondly, meet selling sense it And ATM to this here makes to may assessment our to that's at to levels degree. BTC-backed watch these have. But facility we careful something very, continue that very basis. dilutive going a use We that as daily us the operational

that into kind requirements speaks and this the year capital We very of feel we're So leading balance for our even XXXX. are. well for our going needs what that positioned to of

and an the not price the it am I month's share information, off X% catered. a guys been great I've I'm shareholder, I appreciate a because take table. now day you obviously, a trader. of and would the Bitcoin That's with while, is One as production right for float investor, and

So I that going dilution. important you're your think really forward it's careful appreciate answer. And with I

to concludes Grodzki, for the Emiliano are There questions. any question-and-answer CEO, I to would conference our like further closing remarks. turn back over no This session.

call. conference all Thank today's you for attending

expect and rate cost development as and low are in strong continued there Bitfarms about increased now We of will we second, with And first Bitcoin Multiple cash a of a X.X% quarter growth underway. the minor, the projects opportunities. X.X per exahash current our profitable network. represent

progress. about and We to history diverse facilities our the you Thank of will are Bitcoin managing of are updating with now at that and We a increased grow on proven a look forward future. behind you in the We profitable scale. miners it positively much. this positive very year and most operating remain one X-year-old largest focusing company

concluded. you presentation. today's attending The for conference has now Thank

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