Bitfarms (BITF) 14 Nov 222022 Q3 Earnings call transcript

Good day, and welcome to Bitfarms Third Quarter 2022 Financial Results Call. All participants will be in listen-only mode. [Operator Instructions] Please note that this event is being recorded.

Now, I’d like to turn the conference over to Mr. David Barnard, LHA Investor Relations. ahead. go Please

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

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

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

I Please all references definitions U.S. the third by refer therefore otherwise refer non-IFRS not of in IFR under reconciliations to list certain quarter during presentation the and supporting not and similar MD&A again, recognized could prescribed invite website slide implied this made dollars the Bitfarms to to can be from for assumptions The you note slides. results did consult financial Also two. in noted. and Investor the the company section. comparable will also under and reference call XXXX those today's companies. aforementioned remind and differ our be call, subject may presented the is to find certain IFRS these. listeners that The uncertainites risk earnings emanated unless based certain meaning the measures you MD&A IFRS of and to other will to invite on measures. by I’ll it is measures complete on measures to made forward-looking forward-looking not And and are company's information a statement. that future Relations for release during Turning have be and everyone standardized statements to We will a to

and will Morphy, it's some the remarks pleasure review Lucas to return my to Geoff the over with CFO, COO, Jeff follow and President Murphy that, call, will after And quarter; review for Morphy. for our today's Geoff call with now During Geoff financial will operations Q&A. detailed the turn closing a

morning. you joining Good today. us for Thank

we a talk our is run. have long one why this miners' margins well to to control are price the As successes in reality crypto can excited business. this and about to and recent the All of you Bitcoin. or positioned It's thrive compressed. Bitfarms of predict winter, manage been No

differentiate along low to operations financially cost energy profitability. and its in pricing superior efficient itself and However, operationally with mining Bitfarms structure, fleet, continues with stable resulting

have consistent worked plan. record to our stated of and hard track a goals establish growth against execution We

have we year-to-date. our doubled X.X per fact, exahash second hashrate In to

of farm moved the within country in However, while to our along, Rio There miners. be that has plan direct of Cuarto importation construction and foreign our on equipment, macro on the all impeeds including developments budget. Argentina, in are

We and details to these are I'll more resolve provide moment. in working issues a

from XX% our up highlights October. an fifteen in XXX XXXX we additional our QX bitcoin results. In Bitfarms XXXX, X,XXX of mined to QX Turning and bitcoin, mined

cash Although to direct solid deliver the production was growth in offset metrics and bitcoin reduced and by both QX prices, we performance costs weaker XXXX total continued of our production. costs

As generated EBITDA $XX a we million. result, of adjusted

one lowered in direct costs remains quarter. per last our kept the fact years, we for producers. of bitcoin one being consistently two to largest most of of production And of cost the $XXX addition the in the these lowest by and producers under recent In bitcoin, cost Bitfarms $XX,XXX have

low geographically diverse from benefit hydropower contracts relatively costs cost energy. remained have a Our stable of providing we as portfolio

at to X.X the in our end hashrate end per second corporate increased Canada XX% third of we a online from came the the both production of Argentina, quarter. QX new half As and times

During average daily per and which in per XXX production the and bitcoin is slightly second, October, mining of over day efficiency we percentile were in performance. exahash per bitcoin the XX.X month highest industry

due of in facing generated managing decline bitcoin. on benefit is energy that in the industry from to outsized fuels we industry an experience electricity. price on from electricity benefit the costs, challenges We sharp through and peers have cycles rely stable prices those while the fossil rising While further past impact

capacity, We nine details maintain June and Slide with at six XX an summarizes status liquidity. our October, XXX megawatts to of by few our total in moments. locations flexibility increase take capacity financial cover we Jeff Lucas decisive megawatts, bringing to four the in the corporate In We continue and actions from overall our to in megawatts current total quarter XX increase our a locations megawatts. XX, XXX farms. ended XXXX. as and capacity the megawatts of XXX capacity increased will

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

five. slide to Turning

December. October The is is megawatts to in activated Bunker currently planned early first contributing Phase six online farm, six as XX plan. commitments of generation final which operate of square advantages The six and farm The at the delivering Garlock with we XX XX be in Bunker completing megawatt in its housing XX,XXX be Leger at latest In with production exahash late to XXX three continues in Bunker out, supply Sherbrooke X.X expected petahash megawatts progressing the are On in second. XXXX of in proximity, the efficiency miners X,XXX XX, will for per XX,XXX Hydro campus energized our are from build capacity, we full XXXX close miners. megawatts. smoothly November Sherbrooke megawatts expected be to per megawatts stages full in a the miners. XX power remaining drawing have December in energized X,XXX at foot numerous in megawatt first running located We with X and December. early over total and and The XX megawatts our second March expansion affords also facilities our

to of in out results completed Point la growth. months XXXX, retire build of by expect employment. cash of Sherbrooke our an higher at completing $X.X permit local by area this community XX megawatts, replacement proceeds three of facility farm from the shortly of month in which tax fund our anticipate When campus well end and schedule. and in from December, The the de ahead megawatts million as running industrial the of increased this revenues, closure to its sale We is and full up as benefits and other XX end

our macroeconomic Cuarto, we Argentina out. with future November local announced warehouse on as Argentina, has continuing Rio about We plans process one per delivering adjusted our second was and megawatt our XXX Quebec we turn growth. first completed four continuing present, excited the megawatt on megawatts to with More Argentina's megawatt module we partner communities in energy September In the number early environment warehouse the As adjusted miners. our hydraulic petahash. the slide are November our exahash of guidance in construction during completed specifically, impacted have we final remain per of and November. to in Please our are to commissioning. XX almost were XX stated for October month, past of At press this second. year-end operating we agreements X, release initial XX ability place in and in six. X from are build we the week, to nine modules we X, completed X,XXX X and import exahash for Earlier capacity miners

significant this bring to authorities the are ID operate has our working with inflation, additional remedy we adversely miners burden. debt for high with equipment wrestling providers capacity. to and approval which and XX,XXX its the regulatory a mining matter. warehouse full been devaluation need logistic ability at in the to delayed, Importation our first country is We The affected and currency

still the Rio awaiting and agreement provide private permit phase our power -- final In of farm up the power producer. to addition, start drawing approval electrical operating a in cost during with power from In provincial at to higher the producer meantime, our power commissioning than its electricity our the is utility us. is Cuarto

to on direct has temporary these evaluate costs than basis. anticipated X% total At a around higher cost continue impact of production. We variance energy of daily this production, operations limited our and on total

the draw at look can run the permit for forthcoming be the on expect seven. new the megawatts. to to we XXXX, extensive we to that to in slide Since XX infrastructure, about January, producer launching this operations of While end until smoothly, hydropower consistently move higher opportunities necessary power Paraguay cost least petahash. continue before we facility expects With Please country. production XXX continue in contributing at

hydroelectric megawatts, path XXX Argentina. in are Bitfarms, the ending utilities per operations, XX second, measured four now the In of end upside ways. which predominantly exahash year operating have with five we at which the power Turning have are from at drawing of three eight. from in X.X a XXX and is a to diverse. in slide farms geographically clear to at is ourselves megawatts few and future pride capacity countries production at per our At efficient considerable exahash We second quarter, we on running that we had summary,

of driver paid we downtime. XX% This uptime, rate a bitcoin not revenue is in high our miners utilization for achieve uptimes to are consistently First, XX% farms. as key

which of In recorded operating XXX.X mined Second, at leading efficiency. bitcoin average a average consistently noted exahash, high. a we bitcoin is we analysts several which rank in have per figure measure per market exahash, being and this and October, production

of miners corporate terahash, to is which joules Third, per the continues bitcoin average for and improvements. efficiency our show steady energy measure

an average during QX For XX%, of compared to QX improving XX, had we XXXX, XXXX. XX.X%

information learn the Please website, on and our encourage to they more to you I nine. slide mining deployed. how more operate are visit miners our about For turn we to fleet, bitfarms.com

over from on Lucas. I now will call the metrics hand Jeff to financials, to Moving

plan. profitable Thank flexibility pleased and our third of execute on growth our the Geoff. financial and growth strength XXXX we continued maintained you, during to very to our We're quarter report

X,XXX as Here in total highlights. bitcoin, cash and up ended We are million XX%. X,XXX at $XX valued of quarter bitcoin a at $XX $XX some for with increase X,XXX of bitcoin over second XX million. mined of quarter, the September million the from We an liquidity third

adjusted And quarterly XXXX, by quarter-over-quarter. increase in we that to the XX% Our third million, in moment. million, More the quarter XX% bitcoin EBITDA to of on reflecting compared second second price revenue the in achieved $XX.X for in compared million mine $XX of adjusted a were representing XX% margin average XXXX. quarter decline $XX.X quarter a the a EBITDA million the XX% of for of in the margin a bitcoin $XX offset as

on mining focus first economics. Let's

as startup legislation for among is BTC full in was the driven VAT or measured is average The the associated a as dollar noted, direct cost Bitfarms potential stronger second third the slightly lowest per with terahash accrual network in costs $X,XXX dollar on electricity decrease which for quarter tax averaged efficiency by the rate, in lower $XXX the our cost in improvement a slide X% in Canadian in or from Geoff the in a not beneficial passed As Argentina impact into Canadian Canadian electricity includes VAT quarter. phase bitcoin industry. of and and in that combination of additional yet X% costs. been law. quarter affects commissioning in the costs is approximate production production value production illustrated reported in joules added difficulty This XX, versus of of direct the per U.S. our by the a It to X% mining $X,XXX

indications production would is over of stable Excluding among we're early involved seeing actively by per the have a legislation, emphasizing of with bitcoin. costs. worth XX% that are coalition hydroelectric potential we Canadian whom been [indiscernible] This the electricity enjoy accrual to-date. of and actively bidding direct of during energy, we our It's legislation $X,XXX cost just success being challenged for the proposed very miners this quarter

remained the bitcoin cost two past in $X,XXX bitcoin. direct and narrow mine per Over our a of of years, quarterly $X,XXX has range

reduce This impact. that cost administrative industry rent, cost, salaries, ignition of mining million, other $XX,XXX $X.X expense rising et a includes bitcoin. to in second of general, Otherwise overhead our electricity quarter peers taken $XX,XXX production of from quarter sales, production per and and lower discretionary drivers XX% costs, travel a total was of cost actions price direct and $X,XXX to mining fixed wrestle referred well of impact represents a fuel cost bitcoin. remained below the bitcoin our the as relatively expressly total or the cetera, per or cost the have spending, direct XX% including decrease as G&A. impervious $XX,XXX of well decrease of expenses. The went including reflecting services, lower cost cash, in total many costs cash The per fossil bitcoin with costs. current a the to The cash as management G&A during professional production with and While of

Our million a represents in quarter a profit in in for the was XX% gross the overall money $XX XX% gross $XX the quarter. the to money margin for compared This to quarter. million, comparison prior second quarter

a XX, loss assets, in results. digital assets a change of recorded $XX million to realized digital a IFRS including This second and gain in from of assets goodwill. equipment. focusing charge of quarter, in $XX operating reported impairment compares to a disposition to we’re on in plant property, slide during million million of which disposition XXXX an included digital quarter and unrealized an Turning of on loss loss operating $XX $XX million We million, loss million $XX unrealized million change revaluation realized assets, $XX a million revaluation an $XXX loss our impairment $XX digital the and

Let down to activity, Argentinian our expansion. attractive costs. is to the on price impairment dollars the while construction impairment need to for low large the commercial at and into part me Argentine a obtained U.S. U.S. at to $XX an drill exchange fund mechanism We pesos driven acquire our gave to to million in convert convert impairment assets Argentine pay dicharge dollars by take for rate construction BTC pesos of charge. the an to rise charge the analysis, here current moment

were XX For U.S. reporting began funding out, with statement a exchange value two different value and a approximately and in books This and measure loss performance. Currently, results, was official million $XXX quarter there build gain IFRS, on adjusted reported a EBITDA. had into a adjusted actually there quarter more truest second recordings our purposes of higher view during foreign we to difference from a our our losses. from And and is during our reference and U.S. we mechanism This to loss quarter, rate by of the of or future these any a outlaid only assets impairment charge revenue. for definitions of including changes from in adjusted reporting as exchange of our Argentinian value basic does almost to dollars exchange comment to about EBITDA line performance in income or half. of $XX total for million, to average dollar that million. rate hard changing significant. MXNXXX importantly, and governmental we mechanism This such, or rate. continue operating and share. reserve. such fund of despite to lower with we prices quarter, include put to however, and into summary, translation in the in monetary as our quarter translate diluted Argentina's $X.XX an tongue achieved acts positive recorded bring the assets about of value corresponding expected reported of $XX publicly a are of flow the those can gains second operations corresponding EBITDA cheek our that impact as we The rate a gains commercial U.S. our being U.S. not million related $XX.X $X.XX currency the U.S. Returning dollar, adjusted MXNXXX compared the price lower out between have the about out additional about compared during basic assets as foreign operations period that In miners value EBITDA, rates reported continued third the be impact adjusted We the sheet foreign on U.S. and Argentinean at the than our our an used under The is rate quite assessment. operating diluted exchange Argentinean million reported increase the were a in of in amount $XX the EBITDA multi-exchange In a XX cash traded the fund dollar, of them. official of the we them. XX% EBITDA effectively $XX balance for gain per million with assets the per here mining Most results share, of and XXXX of impairment dollars treasury the includes million $XX.X adjusted XX% cash, BXC to quarter brings generate dollars net as to we to the BTC the it incentive net multi-exchange currencies liabilities, about the

sheet Turning be to our our to XX, in slide Balance continue strength highest financing strategy. priority. and flexibility

protecting investment, relatively communities key plan cost is strategy funding Our reflective our overall on while growth, goals a of commitments, low financial centered at of of capital. supporting shareholders'

leverage our at-the-market, dilution. the approach shareholder such, We amidst activities to to And the look debt proceeds a to the enable our BXC towards BXC continue and flexibility volatility. is to daily Treasury Holdings to straightforward. provide to our minimized requirement. and service very our BTC even judiciously growth from apply our of As our and expenses contribute reduce utilize we ATM investment fund current financial We our operating our growth us our financial our price to the program use production to sale management fund

proceeds our $XX this borrowings back of interest quarter further balance million sold $XX equipment our we up otherwise the of from We million to total bitcoin and loans. facility, following: X,XXX in and into facility X,XXX $XX paid X,XXX $XX We production of in lowering paid down million a about reducing of from revolving in million, credit bitcoin, those with comprised $XX expense. $X.X we sheet generating quarter, the bitcoins debt the financing deleveraging indebtedness, of executed million reducing down of bitcoins, During treasury a bitcoins and million freeing total equipment indebtedness. collateralized and our

During XXXX paid program launched facility proceeds highest oldest $X.XX our This two gross year ago. off or the share. we $XX have million the $XXX rate of a on in XX issued and August million program our raised XX, shares in we of from over ATM proceeds million full that we per ATM net we interest of of commencement quarter, approximately

So the down million, comprised of total million to on repeat, expensive valued and facilities cash X,XXX at $XX we ended with to $XX paid bitcoin and a $X.X further from of equipment loans. quarter paid and most the we quarter, off third our million liquidity That's $XX again million. XX of backed

Secondly, $X.X of expenses $X.X additional sell up today's net ATM; the and reached net our expect quarter. raised fourth we’ve highlights. for during an million [indiscernible] proceeds about supplement of which my remarks two to another we under our being and I'll with a that million of balance property million cash $X.X receive to wrap we first agreement third, to

any is Bitfarms’ the eyes loan a a This level XXX% interest value First, quality when reducing rates. change of in we stated the improve interest credit amended rate, including despite a testament our December the to the value coverage our the we able of to XX, requirements BTC from increase without to back the of lenders. facility the to collateral loan were to maturity in in of extend XXX% XXXX, general terms the

our Second, having we in manage grow it’s XXXX a with and worth noting our business site. that

be advance ’XX on the time indebtedness of in is mature current to or expected date. All February of before and scheduled our

Conference mention Annual call the would number XXXX Conference Ladenburg including I December a we the the of to in Conference Expo Growth Thalmann up, Crypto Geoff back Murphy, Investor coming early over and turning have XXth virtual that Second Before in to like Needham January.

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

Thank you, Jeff.

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

doubling operating per we As second, the are X.X just in and today, XX-months. XXX of with megawatts past exahash

We diversified. are

Argentina. Canada, States, We United Paraguay in and production mining have four countries: the

XX% Currently, by fleet sustainable. hydro our of is powered are electricity. We

We are transparent.

of led industry about website, since the transparency have are our public. becoming fact provides establishing we from monthly that firm the a audited report the production continuously we corporate We And to in big our four proud have unparalleled information which by mining standard been operations.

direct We have production. consistently cost maintained low

is Our the amongst cost XXXX lowest industry. QX direct the in mining of $X,XXX

electricity. consist these this of electricity, strategy consistently mostly our goes areas mining and direct costs surplus, of PPAs finding of hydro in to preferred and As securing stable

since is our costs exceeded five cost fact, bitcoin consistent years on ago, our gross a In testimonial contracts. over team down per to a never and $XX,XXX. experienced has mining our basis Keeping inception our our

Even mined generate are recent we we metrics performance performance operations. the per October, at XXX.X continue recorded Our In mining from exahash, of bitcoin placing us the average to at from cash bitcoin our consistently leading. positive industry top price industry levels, assets.

farms in and bitcoin generating on our a very We well to so, sheet of a our have manner new financial have leverage is With effective down, and highly maintain financing financing future capable obligations results. and experienced has internationally scale. prices companies on capable balance impressive the meet performance since their based consolidate Bitfarms demonstrated this team finding while underperforming inception. positions jump building resources, for company growth leading or distressed to and larger and and and at The of management indeed decreased flexible sector done a continuing to cost

operations Looking fund including growth at from of a our discipline financing have where of a and cash strong path our and balance operating we to evidenced we're by track positive are excellence. we as And continued flow record sheet, today, otherwise, resources, growth. non-dilutive with following

open now positioned to questions. truly the advantage the ahead. are We in Please Operator, of consolidator a go we take industry. opportunities for up call and emerging well can be

begin question-and-answer All session. We’ll [Operator you. right. Instructions] the Thank

Please ahead. question Shares] [Quint comes go of first The Smith from (ph). Alexander

about would on everyone. your results. commitments. I time Hi, your little your financial very flexibility understand to for bit congratulations on more just good much and Thanks the like a

could machine the electricity Whether own have your operations your agreements? you I have talk your the needed? And newer ability deals about are you or flexible agreements First bills to also the a very is the contracts as you CapEx And well? Quebec much. how mean, Thanks in building flexibility, site are? if do downscale take-or-pay, -- to

Okay.

eight capacity charges we the Quebec. electricity we month, Let's There on demand is accordingly. Quebec, with monthly those power. and and within basis, start contracts we reset each the to have have but rights a province receive can

you're So probably digging is were charges if answer to I in down more is -- we circumstances reported to yes. associated miners think underclock will were if that severe, really could efficiencies. we the them electricity and And or we've shut But our adjust also I costs? on down say our our already

very, We well. modern operating generating in that not current Do we’d the capital drop, before generation like, efficient are might even province bitcoin the lot have operations that go consider have some miners the add into deals? province. positive minor do us, would We to that. costs have that of in and mining Lucas, a to most to the flow world. air others. cooled, different These Jeff want more? for are CapEx are so further builds something and we further, cash in price have you be this But for like but you before, on that something of a It's down fleet very were

No.

I to think, but in we CapEx talk miners. to some wasn't that place of the the do I glad for have

I the you Alexander, good with if to I'll enjoy there then miners. your start know, may. relationships, we question, very Let respond me

better as for we manufacturer with the becomes as manufacturers miner the be also out a and online payments announced more on becomes miners and timing two both with and actually here worked infrastructure here, that we alignment With and months align delivery gets to our could in about the that the we where -- arrangement available. ago the

do moving aligned So continue we've But and indeed discussions make that on going have are that the actually our the that you there. at well. that manufacture financial with to flexibility see your with if to doesn’t a refine statements, we to with pretty And note, our projected three make that flexibility it so that's you variability to between some forward, were sure for as add what next spend had I we enjoy, spend well, and what look commitments that currently. we will point out quarters, the miner manufacturer infrastructure stands do we ongoing our I'll along continue are wanna

fine tuning needs towards available that to our work miners. actually can to very what add deploy closely are, infrastructure actual the we So becomes those

you. Thank

Our next Wainwright. question ahead. will from be Please H.C. Kevin Dede, go

sort I was on little we think how maybe a should And that? you Good morning, Morphy, some great Thanks situation. my going how things Argentina question. for wondering a on of just forward? timeline back Dr. kind in onion you gave on was Mr. bit Lucas peel and know import more taking of I on the insight gents. at dig side. look see bit what little the going currency us the we can the side on itself resolving

to a a could to not the when we've It's enjoy unfold the that the move to adjust issues, benefits the government place the that We some because Good place on the had forward. down don't in situation And moves. will the prices. But Cuarto when are the ramp turmoil Rio watching there. forecast lowest there. lead really morning, great done accordingly. of have is next where us efficiently government's going then think right this, really is just future, so we the temporary, go prudently made we open, contract probably what can at the and and with warehouse just more is but up what can't And we had there hopeful a opportunity is they and their we we to it we first some protecting very second control And of very we a to getting we then they've door the economy economic there we're output. growth debt see inflation. that, operations warehouse for on take can't is their pull react Kevin. really we're and closely. and And some longer little We and control. to year money know it control. very which for are We work now, Argentina our in IMF of follow fabulous it We near door and But represents, really an our the was are they've of Argentina spending Yes, have control reins. opportunity. through taking this quickly site, very opens our we've and And will

can XX the that's you megawatts situation grid I power switching station I that mentioned from before you're Then mean close you power of behind meter the the realize from means there? what sort think to essentially by,

correct. That's

Okay.

Because of located in certain big utility grid having we're And to size this think that have. size we're I generation their size, power that turbines a their until backyard. take they to yes, get a we are and facility wholesale because is these

government the provide And so it And only And and to XX we've of it warehouse the ready scale. power do industrial to module, miners power there the number built don't to unfortunately, at restrictions. take has first miners to taking to us, at plant, when modules the We to of we has have an them given approval of that that in The five provide is be go. have the are because megawatts. constructed for here level. not us. capable they The the importation

concert. take have to we So this in

we'll the them have into miners electricity be and the get we both -- and the carefully. meantime, the we together, country very we approval humming. In the need on watch to have get When to contract. installed we need We things done

the can insight but on the Okay. you That dive has how you balance in some debt I you give now? us to slides on that helps. bit with appreciate Lucas, offer are sheet. little could a regard the Mr. levels Thanks. what changed,

Sure.

of June, we at we entered have two entered million we At that. down we So facility $XX into then now under a XX ago. our and And million that, loans and equivalent non-recourse years around level. down to substantial have paid that million that this those the our XX do moment, About and backed only and facility here. from with about of $XX was that loans. in now, year. the over indebtedness is million the and and February, into and have have about additional $X.X of point then which of $XX in outstanding. million the $XX that of into to that out way, there, $XX a facility, either $XX backed left, we that little into are we And lender just facility, a smaller up largest the right million I a We're BTC indebtedness which two really to percentage some different portion both components rented entered an out we $XX million about the anywhere that by point we're loans want million

overall terms bit tearing where done asked you’ve of stand. we a quite we've debt. in down So that's our But

So in have backed equipment now all million our facility. $XX backed outstanding again, loans and non-recourse summary, we in BTC million on about $XX

Okay.

collateralized not non-recourse, you that say equipment? with loan, they're So means the equipment

that exclusively no No. they with equipment or are it. Actually, me. collateralized excuse by corporate I the mean, guarantee associated general there's

All right. Okay.

vehicle? separate So of sort a financing

the corporate modest that not a but not loan structured, a the under it's asset into currently. the is come loan play of agreement essence, yes, just amount done itslef. from structuring certain standpoint. here, But and terms play, there's debt a a that the predominantly way is It equipment itself way circumstances in only the can’t collateral In BTC agreement

bitcoin loan? Okay. on that's that And $XX what was the million collateralized

versus collateral that the commented, value is So XXX% went we loan what XXX%. to there from said the down we percentage

little right $XX million of that today, facility. So there's claim, million that's collateralizing $XX big over now, a

Got Okay. it. right. Right,

have beginning part February All or okay. what that terms the early you by end of, expect say, settled the right, said XX? loan, completely is so to Okay, you on equipment the

that's Yes, both. the be one off their this The million before two into entirely date. are paid both one facilities in in that comes for by maturity we June entered by the scheduled $XX $XX million, paid for and a February XXXX, February right then off to February year,

option pay and consideration as makes Obviously, of have the other We we'll sense. capital consider if out that. cost to we to the get sooner them factors that

what infrastructure us reviewing it's total Okay. of or equipment flexibility the on you that you you it function remind not available. whether could represents? Then would and a is cash and your understand side? order there I you standing just But have generally the have mind extra

Well, let here. start off me

No, ahead, Jeff. that. go Starting to

here, to point we is comments My okay. mid-year. to order this incident price the once think, so that is I is speaking unit I predominantly and year last you're Okay, XX,XXX think the there it lock early you it,

them those million a of And it now of which statements for we which play the remaining reflected is alignment the about balance or whether quarter gets we schedule you and now, of timing units or where discussed, from in the putting roughly little of are our in in for much sure are financial in separate XX,XXX, that because fourth pushed of of the payments at that to depends two that, in pretty timing our on for or as we that the for. off great terms terms time we're infrastructure. we course, being implementation actually XX%, XX,XXX we paid we've see with we're other a first in Argentina. in to or so not But with shape the make X,XXX those XX,XXX the right so the the $X full quarter. and our availability that point XX,XXX of miners actually payment about with that quarter in around is that XX,XXX yet bit have about whether for the that, infrastructure, of So we in stands the the miners manufacturer for those this and pay is on make there in those, of have of It of warehouse number connection getting have for it X,XXX concurrent again they're in that

Okay.

Argentina we we the the Kevin, best guess miners miners, paid I us to that because with that that the manufacturers. of sure of And to the are with warehouse even fact, of we They're continue of our up. result may or their build us, have further, relationship size and activate deferral second depending because relationships working miners new minor we of that maintain as at get them, and better development we on because our equipment. of largest the of some machines because to direct with the in some can and time. like these dividends time relationship the developing miners, in of same make situation negotiated those of they build the a our has better of and the size, get provide absolutely are the working infrastructure And orders, we the and then as and when with they

opportunities and better real into upside could of the some year the terms we be efficiencies of cost the them. move in So there as miners explore and next with

So I guess And dock XX how us paid I us units to many miners you Geoff, wondering that understand how that I'm -- for? help the really but on understandably, in sitting relates have Argentina? units are XX,XXX know you timing that just give or on how the can't

a Argentina. dock sitting Yes. been in This It's much of the widespread importation in issue. they're has not as Argentina

discussions it's pain balance the direct just in international it's balances budgets these just It's community trying country, measures, the the miners, been of and going a and in So and terms with now investment debt that It's has they're get are everything some equipment, those else feeling of coming are settled they're and and changes of time. out. going into and to the matter it's There not effect. ministers their not restraints, political quite those macro with because and really to fiscal they're their formed all in there. IT figured loans

had have miners we we to so down. And slow that

with China. to for haven't ocean in yet shipping they the just given short warehouse not for all instructions move like entry So that the in now are We we're these across miners Argentina. first the are actually

Okay.

you at machines some at terahash ones per your As fleet some the the changing continuing Is out there entire upgrade path joules for have that an and about fleet. older the bought? of you internally XX look maybe that look you and thinking for

idea We of vast excellent program miners have an there. last our we're and ongoing, had majority already been upgrade been that's Kevin, already fleet retired. generation

and year late this bunch taking not of type efficiency Some in them of achieving sold, these a we with last January But machines. of move into of older Paraguay. did year advantage records we're

Quebec in we've So And what's machines. generation in machines, much Argentina machines. is generation pretty into latest got all the going generation are latest Washington, latest of the

soon government reopen of some miners, back confident have we that yes, and we'll these we're then but plant. So quite to the Argentina be will in the

I the think all at moment. Okay, my of you can Thank for so taking gentlemen. much questions. That's

Kevin. Thanks,

Thanks, Kevin.

have we over time, to further call go for questions. this turn back We'll Morphy Geoff At Please Instructions] [Operator Thank Mr. remarks. the ahead. no closing

Thank Nick. you,

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

may now disconnect. You