Digihost Technology (DGHI) 29 Mar 222021 Q4 Earnings call transcript

Good day ladies and gentlemen, and welcome to Digihost Technology Inc. 2021 Earnings Conference Call. [Operator Instructions] Also note that the call is being recorded on March 28, 2022. And now I would like to turn the conference over to Mr. Donald Christie. sir. ahead go Please

much. very Thanks

Digihost Please before documents on of expectations risk today's the set we harbor not that read applicable should and or safe information results forward-looking materially or on laws. to this like come press and differ forward-looking undertakes see company. statements to SEDAR. are update that begin, statements. with respect refer could place undue I'd based meeting. release by information revise of securities company statements statement forward-looking course information assumptions out or reliance during to listeners to obligation that up information in and a filed certain Listeners the Just those than the The other cautions to factors some required any no risks will actual Digihost's from on public as forward-looking cause

Chief and EBITDA recognized this similar call, Before uses and may adjusted is non-IFRS by company alternative back Earnings adjusted to our mean, measures charges results Before IFRS stock-based have as understanding following see tools. including as EBITDA the not you will in statement. EBITDA additional be non-cash of to limitations that EBITDA of value major compensation equity and refer G&A During These at companies. The income EBITDA and expense. the measures other I holdings is clearly can IFRS mentioned like Interest isolation of Earnings under the presented compensation measures to changes not the perspective. measures. analytical a to At this adjusted meaning should you comparable arrive our as IFRS prescribed by I not such EBITDA, Amortization to add do as and therefore, less by Bitcoin amortization I'd the operations reported IFRS Michel? provide for point, Interest who consider measures a Digihost, have meeting standardized Michel is Officer over company IFRS. company's Taxes, not to certain Depreciation the Depreciation and substitutes Chairman results, information complement of or Amar company's in to in Executive to as measures further turn and as from the the And and analyzing the management's Taxes,

along Michel Good be pleased is XXXX. able afternoon our thank share outlook for you This Amar, with results and to everybody. with you to full-year XXXX I'm the financial

of what and clarify make to XXXX. or disclosed we to is course, to meant in if certain MD&A to of the of key with confusing the So investors. highlights performances start PR reiterate in or is statements I'd I'd sync our what was with our everyone And purpose sure for been like the it like conference of call that call, purpose the had

negative million a I'll first $XX.X Cash $XX.XX XXX% So of of with of public a million XX.XX% an A We $XX working in $XXX,XXX XXXX EBITDA about a equivalents with and jumped million million, and $XX.XX of to around over got million, $X.X increase start XXXX income X,XXX% of to and of an adjusted December our million and for had we an an and of capital year a by and highlights of a over increase in net bit little $X.X was XX EBITDA background, adjusted XXXX. February, of the we increase key XXXX XXXX. top income cash XXXX. and negative had financial revenues we $XXX,XXX.

EPS ratios, see. as So we XXXX for had as been can a very us year crazy transformative you have

an $X.XX, compared XXXX. book per of to value XXX% share net Our increase

first to start financial on Is financial the there and highlight results? were accomplishments, on So, I the questions mentioned pre-market. I that in occur all take that the events before like different any just morning, XXXX to would PR I questions that move this to

will question Sikora Wainwright. your Parker And Instructions] be at ahead. from [Operator H.C. Please go

Hi, Hi, this long is Michel, time. Kevin Dede.

Thank you.

Thank you.

you? are How

getting very the Congratulations call. I'm much a how done. financials on me great, hoping mind thank on little sort this hashrate having where you developed insight of between year your year? for And And this you I you wouldn't you and great. your laying time to out last us where I'm taking think last goes mining year, think it's some hosting versus give self revenue year. and going it on go was

thank Kevin, so, the for you questions. Okay,

So average of as last an stated in the year, we around had PR, XXXPH.

I the end what year to clarify started the XXXPH the as calculation ended acquired, and the we year, we around average, define around we XXXPH. receive XXXPH, with me miners we let up new or of and XXX mean by around we an weighted was at average So ended up started

target to our to but compared Now, we today, XXXX, X.XEH is disclosed be around average.

over XXXPH been and of few average it above morning, as days so were So ramp XXXPH to tend or the and X.XEH, we at can this we X.XEH that intend up equivalent where at last has per we today have digital we today to That's X.XX is Bitcoin about done are Bitcoin per X.XX of at the today. of day. day. metrics And we

we X.XEH need that So above end and so for average go to at the we up we for year. the need happen, to not to can cross only that, X.X,

around it times million if $XXX does revenues You X,.XX that translate year a call let's XXX of goal. XXX XX,XXX, XXXK take what XX,XXX, at days, we accomplish Bitcoin revenue, targets today terms it times In X.X to?

a we answer In that get to just adjusted reason from being adjusted XXXX, both a the EBITDA, And terms were should we we've we sign million. out. to respond have Partners revenue, open-data companies we so. at be I the we Kevin be precisely you I Xx two you authorization never at simple the the in your digital the why in got that in last is of share what not you Venture we one one terms around But companies, And in there versus disclosed we written be JV the to it are now And is for contracts of have mining, is we question, text answer. disclose other the Xx, and we is reason plan both to to X.Xx unless if the with on. deleted allowed adjusted the to do of ventures EBITDA that number have $XX.XX look EBITDA. very

important plus XXPH an last and should all with one paid we bought the first pay that hashrate a of plus, and listeners attention XXXPH. fact miners this we're to. The hashrate open And own XXX% data, year. very MXX there's We that MXX

for so, few We what so. year. we year, February, average were prepaid liquidity percent but of paid cash So last $XX ago. or what last got miners, financing an raises an XX capital that weeks sale last paid these we did ownership or last we IPX delivered spot XX audit million until We of approximately the

to new got of able million of XX,XXX Most precise. XX,XXX as the total replace from MXX we likely a this So XX,XXX to delivered miners replace and will value this I market because be to be to minus. a be And $X.X MicroBT. get brand if wanted today, around

you want -- accounting top accounting we grand we $XX if the really should think total, like appreciate depreciated to And it, under were really, firm about assets these depreciate So Xx. million, every we asset. which invested the it

market we the log acquire value, replacement attributed miners if that So only just value. the value, in they

on We X% going top-line average, the X%, leverage Now, with small for SG&A. to be increase this X.XEH EBITDA forward or than we're the more volume of our not that top-line more less should XXXX SG&A to very or in think sales. do

get from So to that reiterate should or will same offset share our increase EBITDA or close a JVs profits the the believe that of should and the adjusted part ratio it. offset we of that the we the for margins year. of And able to same we be services

as and little permits months got get took But the are bit CapEx we four minus for the So to delayed, slightly we've But finalize been the of late. city quarter infrastructure, news in to came EBITDA, the five we it And XXXX. in the three, the Today, board. We the everybody setup. that's miners And a some has that have in about from goal planning the on quarter us the good six us of our took permits depends it ready are deploy got and knows, months to the four, got about and execution. to the the looking all months The the been the adjusted we're at four PH. XXXX. September, months. all is up first it really course, my all should last all back last -- came they down ramp infrastructure Xx

we where that's stand. So

we sustain that that prevent in to today target, cash and and the I cash to operation, in even achievable. our think equivalent, a or make good million should close disclose we XXXX dilute on order very have investments, further company. unnecessary terms of even to $XX end very We us grow, our have

feel I we did in a So question? your great we're So Did any answer Kevin other likely. stage. you're that question?

Yes, much. curious. I'm Michel. still very Thank you

you average much you now? need And year? the do install? How for of X.XEH and how targets have the to more paid for much So do How much that does right own? Digihost

it type transformers, these is miners, paid we business, prepaid. equipment, most everything, of everything Because that So all is to for. order and of had

the don't a read miners all $XX to We us to and million, the have forms capital setup got lucky, for and to able great be and most already XX,XXX this here. these been investment the that smart, for run. CapEx of use addressed. want buying I And equipment that that very how And it, call what us. was know you of transformers to is but further price of most that's necessary allowed very containers So that complete we the we use that of of by for

We dig don't a the in expansion realize for see a to X.XEH. the for big X.X. we order see don't accomplishments the CapEx So

of quarter towards we going the to year, plan of we're course, towards Now, a budget in next if CapEx to and up to to, year, grow. and first order for end have open grow invest of

mind as two operating expand facility something to facilities strategy? part be Would ones -- your would reviewing you're curious would Or potentially correctly, might of, able would what you have what -- new? the your now? be. growing, and understand you you Can consider sir, strategy I you add to you facility I'm your And to you're in? If in

have two capacity the do running. we question, that the good a to do facilities currently within expand we we are So

course, emission are states the go. disclose good company's very not in sentiment little But carbon we but zero a very we XX% of important today, did one today bit a leading it though I'm is and we that York crypto. aggressive matter of think zero Even are XX% green. welcoming. emission. we that diversify can ourselves And the over company are a we lot as close hydropower heard to New a about and New the and it's strategy, the bring York A over you're are mining are And we carbon with officially, to a Zone vibe that of New reason we zone, in are York sure I grandfathered. and use XXX% State why friendly that to in we is want and However, different of crypto, more that we on

the for in to like expand he spent mitigate two lot our I in dear expand ideas a had Greg for in us lunch risk And and we risk Miami Texas, welcoming However, had come him hour other with I state Texas an weeks and and Governor, to Texas. with of political Abbott. ago, want

when the and it Houston, states, the So we happens. states starting opportunities way one develop and we opportunities to of in piece the are all are enough That's up or for we the running all which we opened small there. and disclose if in will open

at hand, the as if environment. outside just Have other State have for you, And MicroBT? all machines. thinking environmentally wonderful immersion, U.S. considering the you mining experimented in Michel, a of hospitable states, you've have that But of aren't miners I places on Upper explored you looked or is New mining any if wondering on I'm one hand, other other operating you're understand with at about York

we of We the and they improve Bitmain Kevin. a that, it's some ways we and also talking our for And up Hydro miners, hydro have it's have question, this low always don't only good we more came to look always with we about miners. and efficient and quality, the environment concern, So know ESG MicroBT, part miners. are all miner goal, than PH we one silicon good they have sXX older miner have so the miners the do and Hydro much efficiency called less are Bitmain per

where ratio. efficient mining from agenda and power. industry, I started. and that where in businesses. average this combination carbon which leader climate about are XX% are the than conventional whole So the industries carbon don't consuming we a X.X ourselves the that any more And emission we greener, as we steps. sector, became become move we zero crypto forward improvement in have I've industry, average, seen less It's working to the we the and are we sector these higher and the of they U.S., XX% much in an at is businesses emission getting in as type the hard of great other a constantly is into meter or creating other the we feel less are leader, of see huge or and efficiency on a a miners huge, worry as the make really, industry are advancing how complying really change, getting

or are the help So green expansion. very demand carbon the transmission we this good to another way the faster having because of to solar base or are the factor, convert this was their in of huge and on have you environment, wind to zero XX/X program pressure maybe a line to an supposed convert of load power partner I convert grid and unsustainable look have challenge time, with solar who engine we at engine they of emission. source if their constant and political a think very miners regular like to And

it's because a XX/X are because yes, has one has this need NextEra one load the huge a limited, a base expansion. that base than name load solar the of of in company. biggest program to like one U.S. companies But So better crypto and XX/X the no mining they they

think other very faster converting than instrumental to any we So are in green industries. I

to XXX%. with you Yes, Michel. look arguing you, agree I hard with for again soon. have talking Michel, you, Thank time a you much I forward that. questions, thank so to I my entertaining

Thank welcome, You're Kevin. you.

Please at And Instructions] from go ahead. [Operator [Burk this we question Investor. an a have time, Barke],

Hey, [indiscernible] from you Michel, doing? How this is are Buckeye Capital.

Good, you? about good. What

and thanks. year. quarter Good, the Congratulations the on

So your make it correctly. guidance, I just I to understand sure at looking want

to in at Bitcoin the today's that's hash X.Xx X.XX going Bitcoin and rates, of average think million currently assuming I current get network disclosed with you run you and revenues for assuming about year production XX,XXX to X.X price correct? $XXX that the difficulty,

XX. I was that XXK correct, XXX, That's used you're using at because but

it's but a So good.

let us that. So take

percentage So that G&A the like I and guidance constant we XX%, adjusted in adjusted did, of if much. $XX at your kept was then even be EBITDA. it that's about looking your as again, as wouldn't will XXXX, at there on G&A revenues million because piece, EBITDA a your had margins expressed grow leverage you of And you

with right I stock the $X.XX to cap trying So million understand sure want million what I'm capital company? structure you it confirm or now so market outstanding? It's is, shares correct make $XXX to XX about understand can of the correctly. I and

rates. today to we million believe, I we went capital $XXX think up Well, XXX

Okay, more so paid some in about XX,XXX and are the price million cash, of you companies Bitcoin and balance, that $XX,XXX you then follow, $XX competition, street $X,XXX, also Ethereum we which these range. MicroBTs and and in that machines own other and the you for on based disclosed your for disclosed

Bitcoin. you value, machine XXX you got cash you $XX So million got have electrical in million and infrastructure,

below replace So correct trading to you try are were to you company, today? this below if

more than have done, much we but or more XX,XXX miners XX,XXX because right. today are have we below, Much about miners, we than below have you XX,XXX also

there out, doesn't, very efficient much also capital EBITDA. can times, about you're million good those which potentially is your multiple host an you a them, increase that I not it's if obviously, as than value contracts trading million back value if I'm you mean times be further or is a $XX as disconnect that partners, you EBITDA growth. your year, you model, is But with cash enterprise numbers one understand as when $XX adjusted Yes, between for talking that's your less major a to you hosting trying this mean competition what have not do enterprise execution will from I your

the two do the disconnect goes of so questions, reason can disconnect? the in is And you the what this So future? what away

got Great revenue. million very not started net question, we say, Burke people very we our and to in have did a I think small $X.X idea, and immature XXXX for an exciting quite company I frankly, of million year, a COVID we loss to reporting. And a very see it's was first $X.X

but accounting this mostly the as to that time. that of I major think our see firm, We a starting we see second and the statements accounts wanted audited to are think I believe level. investors on is execution from production now investors the that today report I our update

times So to start realize today, now I announced when X.XX you a some I'm at execution. day, now

update April level. on see start companies to we'll soon, stand not first And came get And they them, company the original our of to that where the but execution we we The this, see our into credit are name like [indiscernible] March. race. in

they if a prepay, you very the minus to there's do, you looking you the on looking investors which the Okay, nothing. at easy go overnight, that incredible while We future paid out now not I future terms were cash, just no as are numbers, as assets sell this to at and mentioned, task into with on can value. U.S., mean, my get it is paid I competition did in the started think pile expectation. expectation

that reaching covered are see want to dramatically, Okay, all that my they understand And is. it's think as coverage, we to now capital as the because get more opinion analysts this and year, easy more more believe also far we maturity, undervalued we are we'll haven't that I get that to you have that in where been market see it is. by I recognition we'll

I RIOT, sustaining statements, look rate, compare in at is in minus ratio. valuation we say, growth. rate $XX how peers, in calculator growth with The and went And But $XXX other billion a much and a to type of almost Xx a the the the have same of XXx they up with to the or And adjusted news, okay, okay, I then they exited saying a net when are the And take went and that come the investors behind can million, but rare let's for from X.X growth, are are a beyond I'm company, the revenue, year count net we I good RIOT. X.Xx up XX X, very increase of let's and instance, and he positive say on XX EBITDA cap, first our So EBITDA. of came EBITDA, EBITDA does to see, say, let's or like the call that adjusted it's million Xx the to it market peers. he say one $XX RIOT, a, capable X net Xx really sustain much this what of growth the a XXXX. so, and comparative but EBITDA to have to but income if go companies the would to his run we a adjusted EBITDA

are EBITDA net negative good, that adjusted companies they other that have Okay, income, true.

are will and that diversifying nationally, company. value we think are that Understand, expanding in the okay. I executing. investors So, And we see our

behind considering, else, Now, the understand very well our what managed And was. little a up. delay we bit we SG&A. hopefully, little a to are catching investors we goal XX are And tight but behind I as think are was think delayed our everybody execution bit the days will XX I

founded SG&A Our our now is growth. for

an the get the we versus So in percentage should sales. wise improvement SG&A

We Bitcoins. are accumulating

get good I perform So will this it. very think rewarded a position and year, we're in to believe I for we

September you XX. And that final went I to your December to at your infrastructure looks Or increase have XXX. receive you. to from It wise, you rapid MicroBT is expect rapidly XXX, on take XXX coming Thank Could quarters or XX,XXX And now multiple XX in for it one is the we like you almost Petahash --as double you're in and question. ready. that disclose increase? weeks? months XXX going given

the intention as So as testing Burke, deploy always at fast to safe the our -- is possible. as and safely

week intention as we You to and our our intend is will and answers shortly deploy will as week. our we and to available first April that all have possible as received. we an of therefore miners week March the update this But because output disclose safe next get next you is

of it. you. luck. Appreciate Thank best And

you so much Thank Burke. for you. Thank you, your Thank support.

[Operator Instructions]. Mr. have appears no registered. And currently Amar, we it questions

XXXX. on move with accomplishment the I'll of so Okay,

actually, but this the the we March. and these that February December disclose of X,XXX I XX. today these to as as to XX,XXX you about And miners funds, million. now miners on during know, TSXV. as So symbol, We But bought we while to use January, earlier, uplifted infrastructure. us NASDAQ. a in miners under on It CAD$XX received And by same the raised acquired and be And We and we acquire we took of of early received the November. XXX. MXXs got I NASDAQ the we explained we're total from the got trading adjusted the XX,XXX other balance are -- we mentioned

we very fair. So high, little on of seems to we X.X%. -- A closed the the collateral we weeks our few accomplishment And at of a with loan, had paid ago acquire this are think of $XX X.X% that one of this which XX%, XX% peers lot a on bitcoin see increase we paid the of bit is balance received line million we best I and a coins. miners. our million, XXX total We the a compared I but of rates credit double-digit what of rate line of interest we to of be paid peers. which is revolving to XX else XX,XXX XX,XXX bitcoins our XXXX. What some type

which site to from penalty work prepayment. April. a start And Houston, Texas, we on as as no early secure in we'll So with

on about as the outlook. of the this So financially highlight accomplishment general XXXX. The outlook we it a is talk

race from shifting grow price on are quality, concerns. ESG to -- high a the a We a to structure race and any at

we about concerned carbon free, emission want that. So to very and be we're

though are type future, center, as Google I this our We be Microsoft your the data and an be data company a secure, for center, think focused. not for safe, diversified to we focus, used only mission. mining, We that's we other transformation, important make very let's be want in bit it's for build type in states, goal leader center can of usable, call in standard mining, Amazon to but a for of only high data level infrastructure reach is hybrid it same us and level conversion this little and data this now. a want want environment to sure up even our but efficient, to that high qualified very and or not and an but sophisticated the can be or

a into of this they So is -- not bring rush we miners so as rewards. might putting lot long as anywhere,

are We ESG to and be trying responsible. strategic

get But goal. this or on year-over-year growth cap, our repeat questions that's any goals? course. exponential market to So plan of better the outlook Shelby, our as we a we

questions, this so [Operator Instructions]. proceed. no have please At time, we

like our coming quarter. will it it every a but So have to every sure first guys up, I want you was I'd for to make Q&A. make I year, we sure will thank Q&A And conclude. to for

execution team. by I So and have saying we conclude our on the will progress that, the company. can of a everyone great update we

have great you We board. the Don is team think solid. we COO. Christie great Earlier And have that and a are our our I team

you're a be not of goal reliable start crazy add down. start corporates, corporates, to true to because and when people indications Our amount go to is true

all technology So close was way we Alec to it Today system. operate of the technology future leader team Burke immersion-cooling son and nose are any my the great to accomplish value It's very, level But very in the system. is I'm execution happens in and business. eye to Burke a creative at more is It of Kevin, mentioned management immersion really this about greener, he's and one every keep want our or happening of new execute. terms make efficient, always what's new to course, sure. in the and less, and testing not efficiently. more be we to start

March thank forward time guys look week the Shelby? of the next for results. you So, your update for let's and

Digihost you, Amar. We for this disconnect and XXXX concludes Thank lines. conference Inc. thank Ladies today. for Have earnings a that and your Technology gentlemen, Michel you evening. you participating call please good ask