Bitfarms (BITF) 15 Aug 222022 Q2 Earnings call transcript

Good morning. My name is MJ and I will be your conference operator today. At this time, I would like to welcome everyone to the Bitfarms Second Quarter 2022 Financial Results Conference Call. [Operator Instructions] As a reminder this conference is being recorded, August 15, 2022. I will now turn the call over to David Barnard from LHA Investor Relations. your begin may you conference. David,

are Good Thank Jeff Bitfarms’ me Lucas, and and today to Chief Financial everyone, call you, on Operating for and call With MJ. conference XXXX. the welcome of President morning second Officer; Morphy, Geoff Officer. the Chief quarter

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

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

we company safety. this information revise are on to Turning undue risk forward-looking than SEDAR, risks constitute those no or see Please press today's from Bitfarms’ place or required that sec.gov. statements. forward-looking as to cautions any applicable make statements Bitfarms based may and factors to forward-looking information -- not actual Listeners company. X. out statements as cause during The well on by documents obligation filed release in as remind Slide or public on law. call update set information other undertakes and and I’ll should information that reliance you listeners the the securities results forward-looking that assumptions expectations statements of materially certain that differ certain

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

investors turn Slide we we the X, interested and detailed to call in now Morphy financial the review analysts review send will -- CEO, pleasure today's We to call Geoff to follow the CFO, And live return will for I During open quarter, the read the President management for questions some to Jeff Q&A. remarks Morphy. which will to Morphy and Q&A. to Lucas advance, closing after over call turning will before after actually, it's Geoff Geoff in operations requested my

David. you, we I sequentially mined on welcome completely revenue $XX prices, the the at X,XXX the everyone cash QX Bunker our more today's XXXX. Phase momentum such the trajectory in from our weaker million results expanded by even like environment, starting May that Bitcoin by mining mined in and evidenced continued to operations Yes, and the As up November in Production results. Leger as the still depression of XXXX due Thank peers, Building EBITDA mining production decline XXXX of QX operating QX to XXX March, the from most in of early XXXX. offset we of in these to would to Bitcoin, and publicly we Bitcoin In XX% Bitcoin Bitcoin call. our July, million of defined but superior and been periods prices price XXXX this Bitfarms severe since XXXX In traded the sharp production, and industry, solid $XX in has grew history also are one sequentially Bitcoin generated we challenging adjusted operations. growth the commenced strong April. then just not X mining

end increased also end exahash of the second X.X corporate from rate per We QX at our the hash second of XX% to the quarter.

our means June X which $XXX detail estimate of our we $XX the In the new In July, X% share. in financials now financing and shy we Jeff hash decisive we rate per record. hash of so, $XX actions of a of at to secured facility as financial we second, will and maintain We is is continue July, approximately represent moment. Lucas doing flexibility and a end gain took company market the corporate the Bitcoin our equipment to to balance million. our increase which reduced million network from of loan liquidity. Now, exahash just million rate, backed

capacity capacity capacity, X,XXX quarter our end, megawatts operating increased XX,XXX Regarding online city the validating bunker and QX, for installed production performance. second day Slide at total Today, new to performance. is XX brought by the exahash and which megawatts. Bitcoin representing per Sherbrooke, include. Since key electrical all across of approaching production mined achievements XX, the March on which Phase status Bitcoin XXXX. adding of we quartile In Quebec, operations, at summarizes the superior X megawatts, and in as some megawatts first we XX X, in X in miners two of of in and top locations with XX nine efficiency XXX are daily April, Bitcoin, XXX two XXX megawatts we July, our per Canada average August locations XX Construction XXXX. in from Phase quarter the XXX expanded with up and in megawatts and warehouses Leger XXX farms. conjunction to of increased of megawatts locations facilities We initially of has full capacity, ended and continues capacity megawatts since its started capacity, in XX, Bunker in XX total capacity Argentina. corporate our the in to X

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

X. Turning to Slide

As you Hydro-Sherbrooke megawatts. within a City Quebec, contracted recall, with for Sherbrooke, the of total have power we of XX

and December, are these numerous the affords ahead three which the fully schedule. With months Garlock, of full located Leger of a advantages. efficiency facilities creation operational the at we These of expect two end farms close by be in to proximity Bunker,

early quarter is unencumbered our We XX is XX is phases. la miners De go Upon total another is the in in an XXXX. is la first of the per by this property year this termination to With for to into Bunker Phase running X, and second. contribute Pointe its which The operating expect March X.X targeted megawatt XX,XXX sale state new in a completion planned cash megawatts housing Sherbrooke. presently XX first of in are offline art convert months the be from two location farms out, its Bunker, and ahead real older XXXX. to activated we XX megawatts the end process slated the shifting earlier currently at Pointe, first this anticipated of build to expected add can from miners farm a fourth two of site Again, and exahash to X,XXX of De than begin schedule. we XXXX will drawing for full megawatts. estate

delivering contributes is Miners XX exahash noted, XXX per megawatts and second. As operating XXXX Leger over

recall, this newest site, XXXX Garlock March own outright. in mid our in asset Sherbrooke may We we you acquired As

racks, completed the have We miners to with fans, in electrical and cleanup follow September. warehouse louvers, infrastructure, and building improvements

XX We four which at have up warehouse Leger, Rio operational will design megawatts contracted our of and of megawatts expect our Sherbrooke. With be on Garlock, Please turn at by to available reduction XX a fully Bunker will these we Garlock in megawatts fully to year Slide utilize buildings Each consisting and locations our capacity XXX XX XX power from power. the of contract end. megawatts Argentina, at Sherbrooke systems. company, city the and power monitoring sound Cuarto, inside benefit X. utilize for of advanced private plans we gates megawatt the style In otherwise stranded to campus

remain are out future number expansion. and consideration We four two, warehouses under building and and number three for warehouses one

to construction our with first connection two During the nearing electrical days. take quarter, of associated megawatt next and warehouses completion significant is expected made XX initial within infrastructure. we progress a line on supply XX place the The

in and Villarrica. farm in of the move to align asset, second schedule, complete million shows of mid-September. expected begin North cabling of installation abundant XX are production this starting with scheduled The to months X. XXXX. In to is first and XXXX servers imported low also to Significantly, better responsible The is fourth deliveries to Paraguay. QX this megawatt older and for second far, warehouse. And hydropower. nine XX miners Like team farms to our we some with first minor the performance megawatt data States, the our is megawatt economics on warehouse our fleet we've first effect our our in for miners, able from The positive, successfully to So on over Last operations at production deployment. renegotiated in XX and CapEx the continue construction installed megawatt Canada warehouse the X in in of Slide shifted net this slide here week, from utilize to to XX quite in farms miners plan the XXXX. building run location constructing our capital we racking, we of LATAM capital at experience America. timing and Please cost optimize quarter in the farm quarter current productively XX our miners. in expect in And the expect our some are XXXX. United XXXX of are Paraguay, we the on underway warehouse first The in be

and the building core call, stated ripe our team is last we critical our with board opportunity this now in to Paraguay As technicians opportunities early hire to support We people started LATAM Rio on XX Paraguay. in warehouse. in started development first believe to in rich both expansion. process for for region Cuarto and earnings the continue and And XXXX. I growth have the Argentina We

development quarter, end X. come the XX total have megawatts of are production megawatts, are under nine year, the XXX we farms capacity from the three Turning online of by months. for of at in summary this representing providers. and power year, capacity hydroelectric megawatts additional we end XX% In have drawing plant growth to to an of Today expected that nine and Slide the countries, in five in XXX

Slide to X. Moving

enabled management improved tools individual on enabling uptime. of level operations. of with One increased which at our for farms and continuous controls, system thousands recently alarms, performance of proprietary sensors, visualizations, metrics, miner miners is efficiency features called to maximizing in MGMTX the MGMTX, decentralized global miner our our revamped hundreds tracking, focus across us improvement a manage

are July, As noted and performance. per earlier, second top we per at average quartile exahash which is Bitcoin XXX efficiency in

the realizing At XXXX. measure of XX.X, of were we XXXX, at July end terahash, XX.X June improving joules XX% is at efficiency, Another per to steady XX, compared improvement.

making most prioritizing focusing ahead, we flow. we repairs plan cash sure first, are Looking the to fleet by our performance economic further on that of the optimize

control development. rate hash features are underclocking as such Additional load, under and variable

to to economics, incorporating load control will to data external better level. be addition integrating our the also In such as and operation optimize Bitcoin next pricing, balancing market operation taking we grid mining our

Regarding fleet activity.

latest the we installed quarter, miners. During XX,XXX generation

have expected what warehouse Additionally, first installed megawatt made being to are bringing coming active to miners months. XXXX imported and hash our are miners we for our by deliveries The minor delivery goals, first XX, over September the received, XX,XXX discussion per based XXXX held as XX% miners. December transit, addition approximately per and quarterly the current targeting infrastructure currently to our XX held of we operational into schedules, Argentina XX, Slide exahash XXXX. first for X minor XXXX have -- rate accounts installed XXXX. With in our of total was another in for XX,XXX of in exahash being base already our construction on and our turn second XX. of Please were X.X as second over updated Year-to-date, we and

addition we half operational when of exahash Lucas. I fully expect delivery hand turn scheduled, In the the Jeff will to per miner call add second over first with now contracted XXXX. With to Slide XX. that X.X in over the Please to

-- profitable during you, our Geoff. with Thank pleased second to very operationally your operating report I'm we quarter. continue growth the

as improved This the as wish we continue to maintain lines execute top reiterate of liquidity growth flexibility plan. our to mined I our the and as bottom shaped highlights. actions our financial activities financing performance Let's quarter. Bitcoin we've that well and discuss X,XXX the in our to some

Our prior more In the XX% revenues higher lower were productions $XX from XXX in had more period. to prior year quarterly mined year prior period, up quarter, the Bitcoin BTC average an Bitcoin year the comparison million than price offset in revenue up prior almost XX% BTC quarter, X% was XX% prices. decline offset the our by the XX% reflecting than

XX. without second our affecting among costs. attributable $X,XXX network production per been Slide about industry, in lowest increase offset increase an costs down potential decrease percentage quarter quarter, direct follows. illustrated Bitfarms costs broken of increase was for as production during The can average the Canadian quarter a of is by the costs As tax Bitcoin percentage from which increase of this production XXXX rates the from second in the in tax quarter in the accrual point reported points VAT quarter would be Bitcoin from direct XX% the in average the the $X,XXX. accrual achieved a costs in the points this for legislation accrual, rates X the and $X,XXX in $X,XXX. percentage incremental quarter-over-quarter been XX this of difficulty, XXXX. is operating electricity VAT average Without or with in X first partially of would the efficiency production through have per Similarly, first tax have our equivalent

was million, the the impacted the to XX, previous in compared in mining in second Slide quarter by in gross quarter. of to the decline second to Turning mining margin the XX% was XXXX. as the quarter, price Bitcoin XX% $XX million $XX Gross of in compared XX% quarter and year ago profit

$XX comprehensive Argentinian assets and at tax in continue quarter, achieved a of XXXX $XX and a loss loss operating revaluation revenue adjusted loss from million our second and million million to the of which basic disposition in We at of of and assets. and quarter a million of to goodwill. $XX million operating $XX the the XXXX. an XX% million in million of and loss time assets million loss expense of digital realized expansion, the associated an million. net for digital XXXX unrealized we recovery a loss This the which mining $X.XX and net in a includes and million $XX compares $XXX This funding per This or million in revaluation by included of quarter we of an foreign $X impairment on assets, offset $XX share. $XXX $X revenue XXXX, diluted $XX unrealized loss million loss quarter operations. diluted revenue exchange digital of loss recorded or first $X for digital of the $X importantly, generate Most quarter to million gain second Net $XX charge inclusive compared of million to per of XX% of $X million For noncash the million expense the with compares an in in $X was of cash compensation EBITDA share. million, of quarter of loss $XX $X.XX or at income of XX% interest quarter basic second included of the the

XX. Slide to Turning

Our maintaining key shareholders’ and focus flexibility goal strength continues financial funding of of supporting investments balance strategy to on at cost financial our sheet and the while planned growth low our protecting relatively our of capital. a

our fund holdings As operating treasury this, management to portion Bitcoin a Bitcoin production of investments. part sell to of we partially adjusted and our needs ongoing growth in our strategy

During of $XX executed ago. a top paid million backed the about sold million. of in application following. And We ATM net of liquidity million facility, as we proceeds $XX interest we launched year XXth We our and leverage In revolving credit generating quarter, down from million expense. during reducing the at we in place second raised million XXXX quarter Bitcoin XXXX Bitcoin, million the program $XX our reducing $XX This we to ended Bitcoin Bitcoin freeing equipment judicious borrowing million otherwise million with the $XX under We the nonrecourse valued on February. proceeds new that of put that the million total of and cash quarter. this loan. of a and the of nonrecourse $XXX was secured facility at all, up collateralizing is in $X.X $XX financing million for facility $XX June we $XX

$X.X expenses to $XX ATM. million and subsequent we our paid quarter raised our addition, facility, we further backed a million of another under end, in In Bitcoin down net

Xth, the Virtual Annual to XXth, Crypto call I City. on that number all Riley including events New Before industry September the a have held being the the of H.C. over Conference up, Annual Crypto Wainwright back to in Conference mentioned Second Second B. these Conference we the Global turning XXth, Geoff, XXth on Needham September and events from Investment XXth September Annual York coming

the to Turning now I'll to back turn Geoff. Slide XX, over call

Jeff. you, Thank

take strategy. I'll summarize Before our strong your questions, our we position market growth and

of network, which which of is today, megawatts second, are at X% a record. As powers X.X we about and per Bitcoin operating exahash the entire company XXX

production the Argentina operations the we States And fully before We begin have end the United expect and in Canada, year. mining in of three countries, to Paraguay.

the our on by of evidenced production Bitcoin by other have to is we a contracts cost companies we in of operations. lowest This pricing struggled the to quarter. While from commodities, mine fueled sustain amongst lid industry. electricity direct keep second long-term mining hydroelectric at mining that cost positive recent levels, Even continue in Bitcoin the to $X,XXX average cost generate cash of

We to have by and advantage industry operating the take operational the a that built we brings a And evidenced of be the track and advance you most are an emerging efficient record drive our the and for management future. flexible with financing today We’ve expertise to after We're following of in growth in path that maybe profitable operator international balance a positioned the and operations capabilities and then sheet team industry. in resources. go David, questions the as received and of well consolidator that? excellence, could start to opportunities you please discipline.

guys. couple in a advance. with you, one. first I'll start Thank we Geoff, this Great. had questions

growth two plan is from in Argentina, Aside number your Warehouse XXXX? for what

a exciting opportunities. For XXXX, we of lot have

from about things construction less As half some year. of able in apply able and first excited building first on we're with terms warehouse is of to we’ll of And mentioned, to things second learned we're the in warehouse, warehouse. that Argentina, it because do we bringing Its cost the megawatts the the be the quicker XX to being the underway. first

the the abundant we the numerous this opportunities past our we given the with and be to on But well, as province that to submission and province calls, previous be they've will formal and one responsibility we've But on being scale the facilities original November, qualified XXX later industry hydro and company of think have the backyard the excited information approximately locations lot know be out. performance we would abundant Washington that's December Also of criteria in do home in represents applicants in in information believe their RFP, a is about So will with it'll still an year, we indicates And process also, the Bitcoin records considerable should mining website then be there large with with multiple those RFP going And very more when process building positioned right we earnings mid-September. where we something the time lining of home that on But awarded, There's I well in of Quebec, exciting. process. the there's on order underway, strongest we're and offers see Paraguay. will is actually award. we in some we're megawatts backyard, think locations, released was their new that spent -- submit largest able in type don't probably because opportunities other we're very timeframe. be of and they're effort information up well anticipate what commented while all Argentina. the listed having the area also of opportunities. RFP And across that megawatts situation. The calls, social to Hydro-Quebec's which previous that opportunities our mentioned hydroelectricity there

that are There's that also that going closer So But miners right efficient things not sheet. both getting to consolidate. opportunities strong to some believe the that embrace to year, balance type management flexible this industry those to we right opportunities seeing prowess a other of in now. understand the We've and that opportunities opportunities now going as have as the type geographies the we investment of what from of bankers, need be and merge there's we're and are we -- from actually of inorganic where more ready. the and to well. those operational team expansion that we're And is with those be our be they may to got

a to to in of this it. excited ready not come it and the because going year on be going will we opportunities we're will of for to we're remain So and for lot what's and disciplined come providing year. And industry, guidance the we're ourselves year, next presented the very next what's while much about economics

we One question other advance. received in

BTC? huddle make your what adjusted You strategy, change huddling you might to back

for exceeds cost modified of operating do point certainly debt operating going is in so our ongoing as we what's a portion interest, tapping strategy to and the of we financial requirements. that elements our capital and driven one So looking operating practical. We to our the so needs And really, critically on fund going us did really Bitcoin have means and the begin as be using in minimum trends. to production we means of feel to targets really our holdings effectively our production flexibility. expenses, been forward and that's in requirement. BTC of and do to requirements as basis, shareholder growth this huddle and fact, of going our to we we lowest do well. your it time we position, that fund financial do our fashion, And has growth going anticipate maximizing we're inexpensive to with again it's to daily positions into this a our us -- as dilution continue service to current our our of production towards we matter as financial very that of least fund and that service at debt us selling the minimizing forward activities important of of overall addition capital even best a our fund debt simply investment decision key a a growth forward. at to flexibility And as operating at to really relatively principal fund But how produce our operating very prices, that at And what a continue one our very that, to a keen as for cost eye of funding is we're low that for levels a the at service producing our Bitcoin and

questions any we to or turn over want David, do is there the MJ to to more listeners? poll it

Those advance. of the questions couple we got in were

the to turning for So it poll. back MJ

[Operator Instructions] first Dede H.C. Wainwright. The question Kevin of comes today from

please equipment think we Can Jeff of your to the sort Lucas, full that make funding Mr. sure account you Phase is? -- you'd about machines that you just you are? was I in XX. exahash X added Argentina? for at understand you add for start Could said Does I that XX, with X.X where XX

in North certainly collateral fund having we we coming you that inexpensively on currently that reflect going do that appreciate do have. we're America, that not forward. yet of and the have unencumbered doesn't America, we and all, in of considerations actually as borrowing to though, well, and have Latin Argentina, and for located putting relatively first in Well, miners requirements machines the so is they're facilities, you new probably further collateral Canada the that can that we're in as a that lender additional Kevin, place some given I out fact capital can would ones What will point our to used

Okay.

Quebec has to to that is assume fair or has it's that Latin in machines go that So and with installing you're machines unencumbered. to to behind the do America Washington? XX that go And million

Yes, a that bear in those machines of loans are paid that number for. those were machines were it previously But does. mind, actually collateralizing that

loan and those we Paraguay. facilities as is the our used being funding and two Argentina actually, us example to of generated So through much inexpensively other fund for that well growth including opportunities,

Bunker, the continue the in need an to Argentina, CapEx for me X understand help for infrastructure need from do it perspective. at you requirements on And to you look your requirement let's you just Phase financing playing there? infrastructure? capital set can you have the Maybe are X you all or And maybe Phase at

we're financing from in Yes, good shape actually activities. or infrastructure

overall As the for aware, our going for Argentina, total both particular. the good compared growth percentage infrastructure our infrastructure you're really we’re there's of costs well Canada But small pretty a I'm example, miners costs, the -- are in expenditure, and to to Kevin, capital in for sure in shape.

set So you're looks me be talking at those little what if Phase there X, but to wiggle and You're pretty more Phase you've Does room add to about about, it facilities? that that offered? around XXX give megawatts. a you look would XX to draw X much for megawatts the you miners the at

at miners available second buy warehouse. there's this need out miners, we more a price. to the big very tight to and good lots things, not thousand of Kevin, a about fill In challenge the scheme point now

absolutely. Yes,

guess we got to of right. on capital this you it's when have mostly this know it the we but the so bring that got time -- year, miners I on going a happy that of the quarter, first We've sort and And We're flexibility. we're next on warehouse quarter is first that we've deploy important going, precious, we in we're get reasonable coming, in basis.

to want in. sure the that infrastructure the miners make we So build then we and bring

is the miners. share like Jeff mentioned, of cost lion's As in Lucas your the

do that coincide. lucrative in built contract, quite have and make get could that that miners to to now spot we which then the bring for the were So deferred, and warehouses And sure with we us. be the with we infrastructure that buys, want the the miners in right flexibility to are

these going to situation, the big time the to have nice are right the undertaking all in because be warehouses, And, things like now. construction we're terms of transformers be it's all that ordered continue So to for lead that flexibility.

we and good in. are and half that the them in a can much So, year ago, way miners liquids we're are liquid shape the more and a -- pull unlike

-- As have of of offered little scaled more understand the I bit there, seem things negotiated you've the a to back Rio to changes how any talk or expansion? that some we saw you up might And Did with sort Geoff? it, that Hydro-Quebec some we opportunity Can to bit, the given wanted you that reassess, step become that a power reflect have rational, an be for now little of there to about people Cuarto deployment sort through second please, quarter? reacted fluctuations prices the pricing? maybe

power to the regard in was we continues enjoy that pricing The and in Quebec, Quebec on. tariff first question

had in the not from have changes price Hydro-Quebec. any We

put has increases opposed to Government mentioned, our that's Jeff And situation tax cost the electricity. in as of VAT the change more plans Hydro-Quebec rates. a based changing which of some of to pricing, Canadian as Now, has political

think to if want we answer. talk I into and a that in can question about go then that So you separate

also has dollars who electricity In the a we've gas of position we with prices terms put competitors increasing, very is fixed, generated the -- rest were for benefit. natural the prices electricity first $X.XXX, and got gas. the of have Argentina, gone we very seen pricing. about you're And natural Argentina of We market some better, world, four portion want U.S. is to only the rightfully have our contract in online were prices marginal around with where ourselves we've with rate four we were favorably into the to we've concerned use to impacted concerned gotten of so, facilities the move seen a years based moved didn't electricity and And yes, our profitability. it right. bringing exchange that up, Favorably,

at Europe prices up. So back we go we're that But our natural And to and quite second or expect to in that. houses this seeks liking winter the warm Argentina. also anticipate northern of hemisphere, the as about cautious we're dynamics first we their least cost in gas and warehouses

prices. and to we're and is global Fortunately, seem market And that. we immune still, they go hemisphere, the Argentina a driven, the expect is more in But that portion with little where southern the happy rates are by prices is between world with as is if portion that ahead fixed set because get very bit that energy warehouses But to up. better, other us second warehouse. rates and of move back as perhaps comes we're go And in has now. -- right the And three well to allowed the all be pricing then Argentina. on opportunities to down, commodities to four, affected commodities

pushed talk you alluded to about Can And if separate which said two also you're more remember have there. Washington? you've having facility, opportunity I XX you correctly, an to that I to one far expand for slides that sort there? that's bit expansion megawatt of the in think, opportunity Washington? in Okay. Geoff. I little your noticed you’ve running some the testing immersion a Last question of limits me, How

So space maybe you making? can like we're situation kind of sum some up the

Sure.

with dynamic industry. some the need outs cooling. and into with the We we play but We it's at enter ins of the to a quite – still ourselves and continue think it's a But will immersion technology from -- change that to that's the potentially to to immersion, it. point very cost expensive familiarize capital standpoint

our test have that in immersion. still first It's in container is Washington, right now. mode we the an So

But out seeing delivered still of ago. utilized weeks production are have not we're getting come it, things fully it. that. going. was We're That We only container tweaking still good some we

itself well. very to lower with I right thinner we are very continue it's fortunate much cooling through air and because cooled to and familiar immersion compete that are And point in still environments move we It's capital this more. where our high the the container get a costs air we like have capital think against, the operating now. So working cooled that, very, cost, tough costs the at versus of facilities

So we're that, still through Kevin. working

electricity decades in the operations of local many said all I are was for developed cooling buy lot And -- Now, area, opportunities. We're was at means in ways ago the on all Washington discussions than we opportunities we we're favorable that smaller having those in the whether Alcoa there's But Washington, available. providers. attractive prices good immersion with playing a built dams there. more electricity clean it's which aluminum big whether with on hydropower away, Columbia. working were expand, that and in scale what There the the electrical just or operations there's have we're moved has

I case, our on lowest that still a in. confident now And capable to part there of is calls, Washington It's and think that we've close year. facility it's now and fleet. it our we're facility year, facility we've down of that a we mentioned the now that team a earlier approaching our amongst is the And other operating staff had have for doing more. cost

foundation that that got we've can we So from grow now. nice

opportunities making in new more and the that's comfortable a at state. us So looking with lot me

question comes Davidson. Chris next D.A from Brendler today The with

Seeing XX,XXX here a on hydro, as issues. it is of pricing and power lot your of per sort follow-up else? of the locked contracts below with lot reminder, question. behind than with that I in summer costs coin expected of has a have prices, prior or higher these where even more miners of would a your the that the your more your function a function love power the Kevin's facilities a with cost But a meter impressive with results low something that heat grid power even Texas the PPAs been this have or just First, connected been in

start factors. a lot with result me Lucas it this Jeff of as let math of that from a of have it with to Well, involved because to fortunate can add flexed prices. very and we're commodity variety then not is hydroelectricity a the But has a calculation

the had are same the that now. have we've prices historically So prices we

will to of Argentina is And But like per been fixed in susceptible it we price as have. contract that we at once $X.XXX solid, electricity increases change a not hydro rates price have commidity locations. pretty enjoy many to substantial low others get a our result, all onboard. part that we continue So kilowatt. consistent good a

it why that well. influences a in add cost looking little of more you cost Bitcoin, amongst could be our of facilities calculation mining other of that's So like don’t the lower because Jeff on as as well. there's terms

But to. Geoff’s want there. emphasize, just glad the way, I do comment by Sure, Chris, to

of of virtues is hydropower the the us One stability two costs. for of our

is the past, take overall, a have mine currently, of quarter made much mining of that up how mining costs or that COGS. direct expenses, cost. cost in the the top we electricity As $X,XXX that $X,XXX. direct cost And you Bitcoin, to the comprised cost is ended, when it were see, that terms incremental mining if hosting and elements of for you the cash you costs, in comprise of direct mining the the costs And which just But us, mining the not incurred on other look of about Bitcoin. but those,

cash here cost $XX,XXX basis overall, pretty so cash -- think about the roughly a expand this, So that find puts to we've got the a cash all-in a of even ask, I you on position. And mining that for good an it factor it’s G&A still overall brings to in Bitcoin, Nonetheless, question if which we $XX,XXX. of G&A. around to fair were cost upon to is us

price structure, here, the hydro we've overall, structure of me. feel benefits place, cost including have structure we a -- attractive of the very to having -- continuing So got excuse in

I saw attributed five deck this XX, it guess question. to that the percentage issue. on on follow-up has I page to VAT Just points the was tax in it

inflated of So this this are that's -- on is of VAT top tax? some being numbers these by

-- That's To correct. more points be it's impact to percentage that time. specific actually, over X here was the increase XX%

about legislation, Authority Canadian that would opportunity input to recover XX% more the here, is costs. taxes, energy remove actually our the So which your go to in your Canada or into is Financing VAT right detail considering of now

in in I reflected there $X.XX in of that the That's front to this, reflected, that's to our we essence, from by in way, $XXXX want the costs go Canada So $X.XXX. underscore you. quoted

in financials. IFRS hasn’t not But pass. with legislation approved been -- accordance we may to accrue consistency this did accounting, The to recognize come consistent yet. have being in Now, enough fully that

also various So appropriately, Bitcoin. we the including included our in operational of measures, mining cost therefore, direct

the So of on impact Canadian of has all about And portion. cost our again, an of quarter. that Canada costs, our of electricity the each electricity represents by total XX% way,

sub we Paraguay legislation So $X.XXX, the $X.XX we play quarters about Canadian $X.XXX. when massive obviously, very feel amount. have been can yes, no mine even have or in in we're as back is accruing course to in increase to a the that that Washington, two legislation the cost at from be out, we if all, now Paraguay and going If indeed which position passed, of a with and previous has and strong to very competitive this catch all up Bitcoin. But in the have does is we not now Canada portion, we revert had $X.XX, increase a pointed that will Geoff XX% pass,

what we're requires the we because Jeff it largest a Canadian to to IFRS position, do because and Government think in prudent in thing But riders one February, that announced do. The for accruing actually as of Canada. that's mentioned, the we're and leadership we us took

of think terms to inconsistent right In for on what legislation, really thing industries. are some the advise work to required the to do. figure to is is to the the the thing do. it's with with bring it's developing the other whether don't in we've to that proposed way Obviously, experts learned that we government to them treat right And and review they of us this this a coalition out the Canadian

this the we're make sure might just or back the So our that But we're until -- aren't it, Government Canadian down we'll back again. happens, that but can't to costs will a we and next sure money away might we and shipped making that plan have we year, this or sure surprise on energy we pull hopeful whenever put bring certainly be Canadian able this don't year, later or not that make happen. cash mining

of And this over way, lot as coalition. a a dozen there us of with support working companies by the here because are we're Chris, getting part

on had So fleet, here. the I the really disclosure question the second was appreciate

you You over time mentioned. love can are as out are fleet at than retired? the rate fleet reasons that’s the And some just which hash point coming do that's one your here. online overall of joules come yesterday, most of I'd main that guys being and are to moderate folks the XX given little like, more, think hear we the better hash the all that we per you is over the rates increase terahash a number the means older where seen haven't network break But hopefully down

are because being off. past from turned I the it's inefficient machines think

a others Certainly, of we've that off because have of SXs turned lot through anyway, heard seen been or profitability.

there. Washington them are -- got helping our we absolutely of part just adding equipment. We megawatts as peer upgrade number scheduled and our as are increasing Quebec, fleet. miners But of new are yes, MXXS infrastructure new have and modern incrementally into MXXS moved that bring on. MicroBT MXXS are fleet we has the efficiencies Argentina with program, size with taken the replacing and new is that's a continuing our update entirely the well to more equipment and the new as to that for with

we've series with we Paraguay, used of of miners, mentioned three different there. used As our miners down some sent

and very upgraded. got a continue was replaced Pointe’s cost operations legacy to Sherbrooke. in we've la in facility, be We've They Quebec, -- new with And it Collinsville our no low being out like installation. So completely phased there, year retrofitted de by three means we're old dinosaurs. last new entirely facilities

All generation, and of the and next we're getting are, latest miners, large, by enjoying performance. generation those Go ahead.

that, Just to add to Chris.

here. of to you perspective bit a give Just

lot in a are place about mid-XX MXXS terms Washington at place per they SXs, up Leger for watts put So the now that that also in the our in the of MXXS we of that or old putting watts Bunker and wattage sale, terahash. mid-XXs were miners we we're pros in have in the terahash, like are in terahash, XX SXX XX and per the per are in the

efficiency. of in difference So you making can see the huge terms that's our

terahash? for just machines is some and Just of additional cheaper. one model? the XP? towards is Or question up all come what there's that opportunities Or you're prices have you all more lean question some certainly it paying a a question price the on latest Do to pick of down, it as just the

it's from repair have and at they have will relationships XXS, of of center without be that with manufacturers and breakdowns, their that's our history machines will perform longer miners that we've lot look looking of got best we're MicroBT, a the A as with order to MicroBT. we experience at would so. make to our mixed our for bag, now is we supporter We've great the times MicroBT what we And miners the They've these -- two important been on coming had and a But it Washington, the we of available. best Bitfarms. Historically, know we stronger some because around, we equipment we we've been get where I squeezed. there's possible that XX,XXX been And series have a units.We familiarity in we great. at in yes, a minor of right to But of units we look SXX some have SXX, with continue as MXXS performing supporter primary relying preference, use but least has if we're in think so use big up and quality is that been. those big best profitability more this a where terms. sure point Bitmain supporter for

question comes Dillon next with Partners. Capital Heslin The from ROTH

little could big of temperatures. Canada, pipe curtailment some down an that in at how prices update, wondering you new a more if about and think having of July talk was in about just power on Bitcoin operational you are can How due do sort is to some of the think and I relation costs in you your a having on in the your I what uptime future? talked impact about you that. power bit little maybe sites that coming the to

our won’t during curtailment. Dillon Quebec Argentina down in Paraguay, factor with Thank good the contracts curtailment deal part a any in We for in you that connect. were but either. miners or we for winter we your It's only to months. didn't have and in Washington Curtailment is question. that do of have not in we as July,

where sure you're not up picking So I'm factor. July that

misspoken but higher, higher so more been seasonal just temperatures? about I might have curtailment, like or like temperature

were temperatures And facilities challenge the our facilities -- offline be and Quebec, rebooted. be tax of cooler a to we that able This need infrastructure yes, optimized. hot, miners move and and lower air being faced go generally things overnight. that to when really in little we the higher Washington sometime enough because themselves, are they and to year in reboot keep our hardware, they different. in temperature Okay. our a and the and higher they get protect temperatures to miners meant them with our get that on That's through miners evenings And they're

in Quebec, facility. airflow ones newer which those of Well, It's Xth facilities. to in some in there. us efficiency we some of our the led lost better the think our facilities some for we're onto some we of optimize are iteration yes, our design of actually So

margins got possible. are think many as much the of there's and industry always as in but Bitcoin it trying profit we mint right we've for So with the now, room possible as because on And to Bitcoins prices, we improvement. get squeeze right, as uptime

we those more it, optimize through at money absolutely them. airflow looking So in point and in get get you the air your are how uptime And an to like succeeding, facilities percentage is we're continue And operations can of we and take all the people investors. in press level is pocket, to really really it have that our in facilities able regard. to value our hard been that at next to every for

will way you we go that see to continue So improvements as ahead.

President ahead, turn session. I'll concludes our back now Morphy, of call question-and-answer to COO Geoff Please and That the Bitfarms. sir. go over

developments as well as other production for call conference to forward look November. with call. you We our reports all QX you Thank today's attending One our monthly final at updating remark. in conference

our We will be week. new this later website launching

sure improved an feel and you and includes are and easier production it our many in will find results useful we tracking to and monthly addition In look our navigation, operations reports that from progress. metrics

you adding very attending Additional the functionality good is that future. sure for to be day. and the everybody visit bitfarms.com will days. a we website envisioned call, Please much in have the be today's Thank and to several next in

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

disconnect. now may You