American Bitcoin Corp (ABTC) 2024 Q1 法說會逐字稿

Greetings, and welcome to the Gryphon Digital Mining first quarter 2024 earnings call. On the call are Rob Chang, Chief Executive Officer of the company, and Sam Salzman, Chief Financial Officer of the company.

大家好，歡迎參加 Gryphon Digital Mining 2024 年第一季財報電話會議。參加電話會議的有公司執行長 Rob Chang 和財務長 Sam Salzman。

Before I turn the call over to Mr. Chang, please note that statements made on this call that are not historical facts may be forward-looking statements from the company's management made within the meaning of Section 27(A) of the Securities Act of 1933 as amended, and Section 21E of the Securities and Exchange Act of 1934 as amended concerning future events. Words such as may, should, projects, expects, intends, plans, believes, anticipates, hopes, estimates, and variations of such words and similar expressions are intended to identify forward-looking statements.

在我將電話轉給張先生之前，請注意，本次電話會議中所作的非歷史事實的陳述可能是公司管理層根據經修訂的 1933 年證券法第 27(A) 節和經修訂的 1934 年證券交易法第 21E 節對未來事件所做的前瞻性陳述。可能、應該、預期、預期、打算、計劃、相信、預計、希望、估計等詞語以及此類詞語的變體和類似表達旨在識別前瞻性陳述。

These statements are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the Risk Factors section of the company's Form 10-Q for the quarter ended March 31, 2024, filed with the SEC. Copies of these documents are available on the SEC's website at www.sec.gov. Actual results may differ materially from those expressed or implied by such forward-looking statements. Any forward-looking statements made on this call are made only as of today's date, and the company does not undertake any obligation to update or supplement any such statements to reflect subsequent developments.

這些聲明受到許多條件的限制，其中許多條件超出了公司的控制範圍，包括公司向美國證券交易委員會提交的截至 2024 年 3 月 31 日的季度 10-Q 表中「風險因素」部分中列出的條件。這些文件的副本可在美國證券交易委員會網站 www.sec.gov 上取得。實際結果可能與此類前瞻性陳述所表達或暗示的結果有重大差異。本次電話會議中所做的任何前瞻性陳述僅截至今日有效，本公司不承擔更新或補充任何此類陳述以反映後續發展的義務。

Now I would like to turn the call over to Rob Chang, CEO of Gryphon Digital Mining. Rob, please proceed.

現在我想把電話轉給 Gryphon Digital Mining 執行長 Rob Chang。羅布，請繼續。

Thank you, operator, and thank you, everyone, for joining us today to discuss Gryphon Digital Mining's first quarter 2024 results. In Q1, we continued to execute our mission of creating a financially nimble, highly profitable and environmentally responsible Bitcoin mining operation. I am pleased to highlight that we have successfully completed our minor upgrade program ahead of schedule. This strategic initiative is expected to significantly enhance our operational efficiency and strengthen our competitive position in the market.

謝謝接線員，也謝謝大家今天加入我們討論 Gryphon Digital Mining 2024 年第一季的表現。在第一季度，我們繼續執行我們的使命，創建一個財務靈活、利潤豐厚且對環境負責的比特幣挖礦業務。我很高興地強調，我們已提前成功完成了小型升級計劃。預計這項策略舉措將顯著提高我們的營運效率並增強我們在市場上的競爭地位。

As part of this program, we have deployed the previously announced batch of Bitmain S21 200 terahash per second miners, which were procured to replace a portion of our older fleet. The integration of these cutting-edge machines is projected to contribute an additional 23 petahashes per second to our hashing power, while simultaneously improving our average fleet efficiency to an impressive 28.5 Joules per terahash.

作為該計劃的一部分，我們部署了先前宣布的一批比特大陸 S21 200 太赫茲每秒礦機，採購這些礦機是為了替換我們部分老舊的礦機。這些尖端機器的整合預計將為我們的哈希算力貢獻額外的每秒 23 千萬億哈希，同時將我們的平均機群效率提高到令人印象深刻的每太哈希 28.5 焦耳。

As a result of these upgrades, Gryphon's self-mining hash rate has now reached a capacity of approximately 0.94 extra hashes per second, showcasing our unwavering commitment to maintaining a robust and efficient mining operation. We are confident that these enhancements will position us for continued success and growth in a dynamic Bitcoin mining industry.

經過這些升級，Gryphon 的自挖哈希率現已達到每秒約 0.94 個額外哈希值的容量，展現了我們堅定不移地致力於維持強勁高效的挖礦操作。我們相信，這些改進將使我們在充滿活力的比特幣挖礦業中繼續取得成功和成長。

This upgrade is also a notable first step towards our aspirational target of achieving 10 exahash in an accretive manner as we look to transition from a smaller player to a significant industry presence through accretive growth. Moreover, our focus on operational efficiency resulted in a Q1 breakeven cost for Bitcoin of approximately 34,000 compared to 23,800 in Q4 2023.

此次升級也是我們朝著以增值方式實現 10 exahash 的理想目標邁出的重要的第一步，我們希望透過增值成長從小型企業轉型為重要的產業參與者。此外，我們專注於營運效率，導致比特幣第一季的損益平衡成本約為 34,000，而 2023 年第四季為 23,800。

Over the last 12 months, our average cost per Bitcoin was about 22,500 per Bitcoin. As a reminder, we define breakeven as the cost of revenues excluding depreciation divided by the total Bitcoin generated. We believe this industry leading cost structure positions us to weather Bitcoin price volatility and maintain profitability even in challenging environments.

在過去的 12 個月中，我們每比特幣的平均成本約為 22,500。提醒一下，我們將損益平衡定義為不包括折舊的收入成本除以所產生的比特幣總量。我們相信，這種行業領先的成本結構使我們能夠抵禦比特幣價格波動，即使在充滿挑戰的環境中也能保持獲利能力。

During the quarter, we remain focused on opportunities to grow our hash rate in a highly accretive manner. We actively focused on private Bitcoin mining companies that are struggling post-halving due to lack of capital and scale. These carbon neutral miners in safe jurisdictions are prime M&A targets for us. By merging into our public vehicle, they can access the capital markets while any equity we issue would be highly accretive given our relative valuations. I want to emphasize that any growth we pursue will be done in an accretive manner. We will not issue equity simply for the sake of increasing hash rate without accounting for the cost to do so.

在本季度，我們將繼續專注於以高度增值的方式提高哈希率的機會。我們積極關注那些由於缺乏資金和規模而在減半後陷入困境的私人比特幣挖礦公司。這些位於安全管轄範圍內的碳中和礦業公司是我們的主要併購目標。透過併入我們的上市公司，他們可以進入資本市場，而考慮到我們的相對估值，我們發行的任何股票都將具有很高的增值性。我想強調的是，我們追求的任何成長都將以增值的方式實現。我們不會單純為了提高哈希率而發行股權，而不考慮這樣做的成本。

At this time, we have not entered into any binding LOIs with potential targets. Additionally, I'm pleased to highlight that our Board of Directors recently authorized a share buyback program, allowing for the repurchase of up to 5 million of Gryphon's common stock. This strategic move underscores our ongoing commitment to enhancing shareholder value and demonstrate to the Board and management team's confidence in Gryphon's strategy.

目前，我們尚未與潛在目標公司簽訂任何具有約束力的意向書。此外，我很高興地強調，我們的董事會最近批准了一項股票回購計劃，允許回購最多 500 萬股 Gryphon 普通股。這項策略舉措凸顯了我們持續致力於提高股東價值的承諾，並向董事會和管理團隊表明了對 Gryphon 策略的信心。

In an industry where share sales are common, Gryphon is showing that share capital management goes both ways. The Bitcoin halving of it has been a key theme impacting the industry and our business. With mining rewards cut in half as of mid-April, mining operations that were ill-prepared are now at a crossroads. We expect this reckoning events to lead to further industry consolidation that rational operators like Gryphon can take advantage of. We believe our low-cost structure positions us to be a consolidator and emerge stronger on the other side of this industry shakeout.

在股票銷售很常見的行業中，Gryphon 表明股權資本管理是雙向的。比特幣減半一直是影響產業和我們業務的關鍵主題。自四月中旬起，挖礦獎勵減少了一半，那些準備不足的挖礦業務現在正處於十字路口。我們預計，這一清算事件將導致行業進一步整合，而 Gryphon 等理性運營商可以利用這一機會。我們相信，我們的低成本結構將使我們成為整合者，並在這次行業洗牌中變得更加強大。

I'll now turn it over to Sim to review our financial results before closing, with some additional remarks. Sim?

現在我將把它交給 Sim，讓他在結束前審查我們的財務結果，並做一些補充說明。西姆？

Thank you, Rob. I will now highlight our financial results for the quarter ended March 31, 2024. Gryphon mined approximately 142 Bitcoin, generating mining revenues of $7.5 million in Q1 2024 compared to $4.8 million in the same period in the prior year. Breakeven costs in Q1 2024 were approximately $34,000 compared to $23,800 in Q4 2023. The increase in breakeven costs quarter over quarter reflects the direct correlation in the increases in pass through electrical rates, mining difficulty, and global hash rate over that same period. For the three-month period ending March 31, 2024, and March 31, 2023, the company incurred pass through variable energy costs of $0.046 per kilowatt hour and $0.031 per kilowatt hour, respectively, an increase of 46%.

謝謝你，羅布。我現在將重點介紹截至 2024 年 3 月 31 日的季度財務表現。Gryphon 開採了約 142 個比特幣，2024 年第一季的採礦收入為 750 萬美元，而去年同期為 480 萬美元。2024 年第一季的損益平衡成本約為 34,000 美元，而 2023 年第四季的損益平衡成本為 23,800 美元。損益平衡成本的環比成長反映了同一時期內轉嫁電費、挖礦難度和全球哈希率成長之間的直接關聯。截至 2024 年 3 月 31 日和 2023 年 3 月 31 日的三個月期間，該公司的轉嫁變動能源成本分別為每千瓦時 0.046 美元和每千瓦時 0.031 美元，增長了 46%。

In addition, the daily average global hash rate increased 88% over that same period. On a per kilowatt basis, this translates into a cost of approximately $0.08 for Q1 2024. Please note that over that same period, Bitcoin's price increased from $22,830 to $52,746 or 131%, resulting in increased profitability for each Bitcoin mined. We believe breakeven costs and total cash costs at the mine level are the most relevant metrics for assessing Bitcoin mining operations. Highlighting these metrics gives investors and analysts better transparency for comparative analysis across mining companies.

此外，同期全球日平均哈希率增加了 88%。以每千瓦計算，這意味著 2024 年第一季的成本約為 0.08 美元。請注意，在同一時期，比特幣的價格從 22,830 美元上漲至 52,746 美元，漲幅為 131%，從而提高了每個開採比特幣的獲利能力。我們認為，礦場層級的損益平衡成本和總現金成本是評估比特幣挖礦營運最相關的指標。強調這些指標可以讓投資人和分析師更透明地對礦業公司進行比較分析。

Turning to our results of our consolidated statements of operations, our net loss incurred during Q1 2024 of $11.7 million included net non-cash expenses of $11.6 million, inclusive of depreciation expense of $3.2 million, stock-based compensation expense of $208,000, unrealized losses on marketable securities of $216,000, changes in fair value of the Bitcoin denominated note payable of $9.6 million, offset by unrealized gains on digital assets of $1.7 million.

談到我們的合併經營報表結果，我們在 2024 年第一季發生的淨虧損為 1,170 萬美元，其中包括淨非現金支出 1,160 萬美元，其中包括折舊支出 320 萬美元、股票薪酬支出 208,000 美元、有價證券未實現損失 216,0000 萬美元收益170 萬美元。

This compares to a net loss of $6.9 million in the quarter ended March 31, 2023, which included net non-cash expenses of $11 million, inclusive of depreciation expense of $4 million, changes in fair value of the Bitcoin denominated note payable of $8.2 million, offset by unrealized gains on marketable securities of $63,000, and stock-based compensation benefit of $1.2 million.

相較之下，2023 年 3 月 31 日結束的季度淨虧損為 690 萬美元，其中包括 1,100 萬美元的淨非現金支出，包括 400 萬美元的折舊費用、820 萬美元的比特幣計價應付票據的公允價值變動，抵銷了 63,000 美元的證券福利 120 萬美元的股票薪資未實現 120 萬美元的薪酬未實現。

Our adjusted EBITDA, a critical gauge of our operational effectiveness and financial well-being stood at approximately $1.9 million for the quarter ended March 31, 2024, compared to $4.2 million for the quarter ended March 31, 2023. This metric signifies not only our profitability, but also our capacity to produce substantial cash flow while dedicating resources to fuel future expansion.

我們的調整後 EBITDA（衡量我們營運效率和財務狀況的關鍵指標）在截至 2024 年 3 月 31 日的季度中約為 190 萬美元，而截至 2023 年 3 月 31 日的季度為 420 萬美元。這項指標不僅顯示了我們的獲利能力，也顯示了我們在投入資源推動未來擴張的同時產生大量現金流的能力。

Net loss per basic and diluted share for Q1 2024 was $0.36 based on basic and diluted weighted average shares outstanding of approximately $32.4 million. This compares to net loss per basic share of Q1 2023 of $0.28. Weighted average shares outstanding of approximately $24.9 million. Our average efficiency for our active fleet of approximately 8,700 Bitcoin mining machines was 28.9 joules per terahash as of March 31, 2024. Since then, we have deployed a batch of newer generation mining machines and have improved fleet efficiency to 28.5 joules per terahash.

根據基本和稀釋加權平均流通股數約 3,240 萬美元，2024 年第一季基本和稀釋每股淨虧損為 0.36 美元。相比之下，2023 年第一季每股淨虧損為 0.28 美元。加權平均流通股數約為 2,490 萬美元。截至 2024 年 3 月 31 日，我們活躍的約 8,700 台比特幣採礦機的平均效率為每太赫茲 28.9 焦耳。從那時起，我們部署了一批新一代採礦機，並將礦機效率提高到每太赫茲 28.5 焦耳。

As of March 31, 2024, our balance sheet reports approximately $1.7 million of cash and cash equivalents, $4.2 million in Bitcoin, and approximately $23 million due for the note denominated in Bitcoin. As of December 31, 2023, our balance sheet reported approximately $0.9 million in cash and cash equivalents, $2.1 million in Bitcoin and $14.9 million due for the loan payable.

截至 2024 年 3 月 31 日，我們的資產負債表顯示現金及現金等價物約為 170 萬美元、比特幣為 420 萬美元，以及以比特幣計價的票據到期約 2,300 萬美元。截至 2023 年 12 月 31 日，我們的資產負債表顯示現金和現金等價物約為 90 萬美元、比特幣 210 萬美元以及應付貸款 1,490 萬美元。

We would like to note that the increase in the debt presented as of March 31, 2024 is due to its structure being denominated in Bitcoin and as such reflects a direct correlation to the price of Bitcoin as the period end. And we have not increased our position of Bitcoin due and we remain fully hedged to our production. To reiterate Rob's comments, we remain laser focused on pursuing growth in a financially disciplined, accretive manner.

我們想指出的是，截至 2024 年 3 月 31 日的債務增加是由於其結構以比特幣計價，因此反映了與期末比特幣價格的直接相關性。我們並沒有增加比特幣的持倉，並且我們仍然對我們的生產進行完全對沖。重申 Rob 的評論，我們仍然專注於以財務自律、增值的方式追求成長。

With that, I'll turn it back to Rob to discuss Gryphon's 2024 strategy.

說完這些，我將把話題轉回給 Rob，討論 Gryphon 的 2024 年策略。

Thanks, Sim. In conclusion, Q1 marked another solid quarter of execution for Gryphon as we delivered strong revenue and profitability, while expanding our hash rate. The halving event is separating the wheat from the chaff in our industry, and we believe we are well positioned to emerge stronger. Our experienced management team, low-cost operations, and accretive growth strategy differentiate us from the pack.

謝謝，Sim。總而言之，第一季標誌著 Gryphon 又一個執行穩健的季度，我們實現了強勁的收入和盈利，同時擴大了我們的哈希率。減半事件正在使我們的行業變得優秀起來，我們相信我們已做好準備變得更強大。我們經驗豐富的管理團隊、低成本的營運和增值成長策略使我們從眾多公司中脫穎而出。

Looking ahead, our priorities for the remainder of 2024 are: one, to continue expanding our hash rate in an accretive manner towards our 10 exahash target through a combination of organic growth and accretive M&A. Two, maintain our industry-leading cost structure and drive further efficiencies across our operations.

展望未來，我們在 2024 年剩餘時間的首要任務是：第一，透過有機成長和增值性併購相結合的方式，繼續以增值的方式擴大我們的哈希率，朝著 10 exahash 的目標邁進。二、維持我們行業領先的成本結構並進一步提高我們的營運效率。

Three, be opportunistic in pursuing distressed asset acquisitions to accelerate our accretive growth at attractive valuations. Four, continue our focus on environmental stewardship by keeping our operations 100% carbon neutral. With that operator, let's open the line for any analyst questions.

第三，把握機會進行不良資產收購，以有吸引力的估值加速我們的增值成長。第四，繼續注重環境管理，維持我們的營運 100% 碳中和。有了這位接線員，我們就可以開通熱線來回答分析師的任何問題了。

(Operator Instructions)

（操作員指示）

Martin Toner, ATB Capital Markets.

ATB 資本市場 (ATB Capital Markets) 的 Martin Toner。

Good morning, gentlemen. Thanks for taking the call.

先生們，早安。謝謝您接聽電話。

Good morning, Martin.

早安，馬丁。

Can you maybe talk to your strategy utilizing both the ATM and the buyback? What's your strategy behind when either would be appropriate?

能否談談利用 ATM 和回購的策略？當任何一種方式都合適時，您的策略是什麼？

Yeah. So the ATM and the buyback we view as both tools for a good capital management strategy of our shareholders' equity. The way we look at it is when we viewed that the share price is unreasonably low, let's call it, we would certainly look to buying back the shares because we believe it will be the best deployment of our cash at the time. Coincidentally also if we find that there are good opportunities and when the time is right, we would also pull some money out of the ATM.

是的。因此，我們將 ATM 和回購視為股東權益良好資本管理策略的工具。我們的看法是，當我們認為股價過低時，我們肯定會考慮回購股票，因為我們相信這是當時對我們現金的最佳配置。巧合的是，如果我們發現有好的機會並且時機成熟，我們也會從 ATM 機中取出一些錢。

Would note that the ATM has been around for about a month now, and we've only tapped a small amount, just really to test it out of around $45,000 or I think 0.08% of our products. So we certainly have exercised restraint and we're not going to hammer on the ATM as many are worried about. But we do see it as a tool to, at the right time, take in some capital if we think it's the right time and whereas opportunities. As well, on the flip side in the buyback, we would like to buy back some shares when we think the market has unreasonably pricing us too low.

需要注意的是，這台 ATM 機已經投入使用大約一個月了，我們只提取了少量資金，只是為了測試一下，大約 45,000 美元，或者我認為是我們產品的 0.08%。因此，我們當然保持了克制，我們不會像許多人擔心的那樣對 ATM 機進行打擊。但我們確實將其視為一種工具，在適當的時機，如果我們認為時機正確且有機會，就可以吸收一些資本。同樣，在回購的另一面，當我們認為市場定價過低時，我們願意回購一些股票。

That's super. Can you talk to the investigation around the PPP loan related to the previous business before the RTO?

太棒了。您能否談談圍繞RTO之前業務相關的PPP貸款的調查情況？

Yeah. Sim, I think you might be better positioned to answer that.

是的。Sim，我認為你更適合回答這個問題。

Sure. So at this time, we received a letter for an inquiry on how the PPP was classified. So essentially occurring it to being a tech company is no different than a energy company providing electricity to a software or non-direct facing company that is servicing the marijuana industry. And so we are currently pulling up information to provide you support that and (technical difficulty) of which occurred as prior management relied on in -- and then obtaining the forgiveness of the PPP [loans]

當然。所以這時候我們收到一封詢問PPP是如何分類的信。因此，從本質上講，成為科技公司與為大麻產業提供服務的軟體或非直接面向公司的能源公司沒有什麼不同。因此，我們目前正在收集信息，為您提供支持，其中（技術困難）是由於之前的管理層依賴的——然後獲得 PPP [貸款] 的寬恕。

How much risk do you view there is? Like, can you quantify the risk of this?

您認為風險有多大？例如，你能量化這種風險嗎？

At this time, I can't quantify that risk. I do know the note was for about $2.2 million, but as I said before, it's equivalent, again, we can't really speak on having any certainties, but I believe there is a remote probability given the fact pattern that we have been made aware of and have seen. So still very preliminary at this point.

目前，我無法量化這種風險。我確實知道這張票據的金額約為 220 萬美元，但正如我之前所說，它是等值的，再說一次，我們無法真正確定任何數字，但我相信，考慮到我們已經意識到並看到的事實模式，這種可能性很小。所以目前還處於初步階段。

Got it. Okay, perfect. Thank you for that. Appreciate it. Last one for me. Maybe you can just talk through what you're seeing out there in terms of opportunities for M&A. You mentioned distress. I mean, what type of shape are some of these players in and maybe give any thoughts you can offer in terms of like timeframe?

知道了。好的，完美。謝謝你。非常感謝。對我來說是最後一個。也許您可以談談您所看到的併購機會。您提到了痛苦。我的意思是，這些球員的狀況如何？您能否就時間框架提出一些想法？

Yeah, certainly. And so we may classify distress, but certainly I don't necessarily think they're going to walk around saying that they are distressed. And not to say that they necessarily are. Let me rephrase the meaning we've presented as a less than ideal scenarios. And so what we have seen post-halving is that there have been a few more companies have started exploration of scenarios where they may be engaged investment bankers to look for opportunities.

是的，當然。因此，我們可以將痛苦分類，但我當然不認為他們會到處說自己很痛苦。但我並不是說它們一定是這樣的。讓我重新表達一下我們所呈現的不太理想的情景的意義。因此，我們看到減半後，有更多的公司開始探索可能與投資銀行家合作尋找機會的情景。

And so they see the situation in that with the halving, they're not making as much or maybe they're breakeven or slightly below, and they're now looking for opportunities. So there are quite a few of those. I would say with our M&A team we probably looked at a dozen to maybe for 16 different opportunities as well, actively scouring through them. And so hopefully one of those will land were in pretty detailed conversations with a few. And we're looking to talk on several, simultaneously, ideally.

因此，他們看到的情況是，隨著產量減半，他們的收入沒有那麼多，或者可能處於收支平衡或略低的水平，他們現在正在尋找機會。這樣的事還有很多。我想說，我們的併購團隊可能也考慮了十幾個甚至十六個不同的機會，並積極地尋找它們。因此，希望其中一個能夠實現，並與幾個人進行了非常詳細的對話。理想情況下，我們希望同時討論幾個問題。

That's great color. Thank you very much. I'll hop back in the queue.

顏色真棒。非常感謝。我會重新回到隊列中。

Thanks very much, Martin.

非常感謝，馬丁。

(Operator Instructions)

（操作員指示）

Jon Hickman, Ladenburg and Thalmann.

喬恩希克曼、拉登堡和塔爾曼。

Hi. Could you maybe walk us through briefly if we were to speak next year at this time, what are your organic growth opportunities? And well, what kind of exahash could you reach organically?

你好。如果我們明年這個時候談話，您能否簡單介紹一下，您的自然成長機會有哪些？那麼，您可以自然地達到什麼樣的 exahash 呢？

Great question. That's a tough one to answer because we are looking at M&A and we believe the M&A will trigger the organic, the reason being is this we don't really want to raise significant amounts of capital around here, if we need to sure, at least we have an accretive opportunity. But if we were to grow organically right now out of the gate that wouldn't necessarily imply a large capital raise here. And so instead what we're trying to do is we're trying to do M&A first where we believe there's a lot more accretive and better discounts out there to grow.

好問題。這個問題很難回答，因為我們正在考慮併購，我們相信併購將觸發有機成長，原因是我們並不真的想在這裡籌集大量資金，如果我們需要確定的話，至少我們有一個增值機會。但如果我們現在就實現有機成長，這並不一定意味著需要大規模籌集資金。因此，我們嘗試做的是，首先進行併購，因為我們相信，在那裡可以實現更多的增值和更好的折扣，從而實現成長。

Using that announcement, we believe our share price will start reflecting a higher valuation to what we think is more appropriate for what we believe we're worth. At that point, we might look at doing some capital raising then because it will be less dilutive or less shares we need to issue and then be able to acquire organically through -- grow organically through machine purchases and the acquisition of facilities directly.

利用該公告，我們相信我們的股價將開始反映更高的估值，達到我們認為更適合我們價值的水平。那時，我們可能會考慮進行一些融資，因為這樣稀釋性會更小，或者我們需要發行的股份會更少，然後我們能夠透過購買機器和直接收購設施來實現有機增長。

So it's tough to say because we are trying to do one thing first before the second, but our -- as we've stated before, we do have an aspirational target of hitting 10 exahash, which is going to be difficult, but it shows the aggressiveness that we're trying to move forward with in that we're not going to declare victory if we only get 50% bigger or 100% bigger. We want to get multiple times bigger, and that's we're looking to do.

所以這很難說，因為我們試圖先做一件事，然後再做第二件事，但是——正如我們之前所說，我們確實有一個達到 10 exahash 的理想目標，這將是困難的，但它表明了我們試圖向前邁進的積極性，如果我們只擴大 50% 或 100%，我們不會宣布勝利。我們希望規模擴大數倍，這就是我們所追求的。

So on the on the M&A side, these companies that are in less than ideal situation, are you mostly focused on the opportunity we get the power and then you would put in the appropriate machines? Or is that kind of the goal here?

那麼在併購方面，對於這些處境不太理想的公司，您是否主要關注的是獲得權力的機會，然後您將投入適當的機器？或者這就是這裡的目標嗎？

Yes. It's really primarily an acquisition of power, either, let's say, they already own it or if they have very attractive hosting contracts, that's what we want. If they happen to have machines, certainly, we'll pay for those, assuming that they are still economic, and we will give proper fair value for that. Our goal is always to make sure that everyone does well, not just ourselves because that's how you get more deals.

是的。這實際上主要是一種權力的獲取，要么說他們已經擁有它，要么說他們有非常有吸引力的託管合同，這就是我們想要的。如果他們恰好有機器，當然，我們會為它們付費，假設它們仍然具有經濟效益，並且我們會為此給出適當的公平價值。我們的目標始終是確保每個人都做得好，而不僅僅是我們自己，因為這樣才能獲得更多交易。

That being said, our ideal situation is as empty as possible so that we could throw in our own machines that are brand spanking new, but rarely will you see a large capacity facility that has nothing inside of it. Usually somebody would have some machines running because otherwise, it wouldn't make sense. If the expected unicorn exists, we will absolutely take that.

話雖如此，我們的理想情況是盡可能空，以便我們可以放入全新的機器，但你很少會看到一個大容量設施裡面什麼都沒有。通常有人會讓一些機器運行，否則就沒有意義了。如果預期的獨角獸存在，我們絕對會抓住它。

So what -- not to be rude or anything, but if I was one of those companies why would I pick you versus somebody else?

那又怎樣——並不是無禮或別的什麼，但如果我是這些公司之一，我為什麼要選擇你而不是其他人呢？

That's probably a fair question. So most of the groups that we talk to, the reason why they're going this particular route is because they still believe in the Bitcoin mining space, they believe we're at the cusp of a very big bull run as they what they want to maintain our equity position. And so they're definitely looking to get exposure to a Bitcoin mining company through equity. And the only reason why they're really doing this is because there's a lack of available capital to them because there are 20-some odd Bitcoin mining machine -- mining companies ahead of them that are public that would take in capital more likely given that investors in those companies could sell their stock and be liquid.

這可能是個公平的問題。因此，我們交談過的大多數團體之所以選擇這條路線，是因為他們仍然相信比特幣挖礦領域，他們相信我們正處於一個非常大的牛市的風口浪尖，因為他們希望保持我們的股權地位。因此，他們肯定希望透過股權來接觸比特幣挖礦公司。他們這樣做的唯一原因是因為他們缺乏可用資金，因為在他們之前有 20 多家比特幣挖礦公司，這些公司都是上市公司，更有可能吸收資本，因為這些公司的投資者可以出售股票並獲得流動性。

So that being said, their view is how can they get maximum exposure to the upside. So they can either pick one of the large giants and disappear into the ether after they get their shares or cash or whoever, or they can join the Gryphon, who has that 1 exahash, their operations being anywhere between half an exahash to maybe 2 exahash or 3 exahash would be more significant so they would get a bigger piece of a low-cost company.

話雖如此，他們的觀點是如何才能最大限度地利用上行空間。因此，他們可以選擇其中一個巨頭，然後在獲得股份或現金或其他任何東西後消失在以太中，或者他們可以加入擁有 1 exahash 的 Gryphon，他們的運營規模在半 exahash 到 2 exahash 或 3 exahash 之間，這將更為重要，因此他們可以在低成本公司中獲得更大的份額。

Just as a reminder, we are the former Executives of Miner Marathon. So we are familiar with building companies from nascent companies into what became very large companies. And we like to say -- we'd like to think that we are giving people another chance to do that all over again today. And so those companies looking to sell, see what we have to offer so that they can be a bigger portion as opposed to being lost in the ether with someone larger, and that's fairly attractive for them. And so we generally actually seeing a lot of interest as opposed to less because of that.

提醒一下，我們是 Miner Marathon 的前任主管。因此，我們熟悉如何將新興公司建成大型公司。我們想說——我們想認為我們今天正在給人們另一個機會來再次做到這一點。因此，那些想要銷售的公司，看看我們能提供什麼，這樣他們就可以獲得更大的份額，而不是迷失在更大的公司的包圍中，這對他們來說相當有吸引力。因此，我們通常實際上看到很多興趣，而不是因為這個原因而減少興趣。

Okay. Thank you.

好的。謝謝。

Pleasure.

樂趣。

Kevin Dede, HC. Wainwright.

凱文·德德（Kevin Dede），HC。溫賴特。

Thanks.

謝謝。

Good morning, Rob. Hi, Sim. Thanks for having me on again.

早安，羅布。你好，Sim。謝謝你再次邀請我。

Hi, Kev.

你好，凱文。

Congrats. Nice quarter. I am kind of curious maybe going back to Martin's line of questioning, ATM versus stock. I was also looking at the debt level. Can you kind of fill me in on what happened? I don't know if that's a result of the spec process?

恭喜。不錯的季度。我有點好奇，也許可以回到馬丁的提問，ATM 與股票。我也在關注債務水平。你能告訴我發生了什麼事嗎？我不知道這是否是規範過程的結果？

No. It's a piece of debt that we've had from the beginning. And frankly, we love it because it was Bitcoin denominated and we've had it for a couple of years now. It's 6% interest, so challenge anyone to find something got great in terms of interest rate. But it is Bitcoin denominated, which means that we were fully hedged the whole way. So as everyone can recall, things were not 60,000-some-odd about a year and a half ago, it was much, much lower. And quite a few companies -- quite a few of our peers struggle because they were not making enough US dollar revenue to cover their costs and their loans were in US dollars.

不。這是我們從一開始就欠下的一筆債。坦白說，我們喜歡它，因為它是以比特幣計價的，而且我們已經擁有它好幾年了。它的利息是 6%，因此挑戰任何人找到在利率方面很優惠的東西。但它是以比特幣計價的，這意味著我們在整個過程中都進行了完全對沖。所以大家可以回想一下，大約一年半前的情況並不是 6 萬多，而是低很多。有不少公司——我們的不少同行——陷入困境，因為他們賺的美元收入不足以支付成本，而且他們的貸款都是美元的。

We were fine the whole way because our debt is denominated in Bitcoin. So we are 100% hedged. As our production goes, we just turn around and hand over the Bitcoin. So although it looks larger on our balance sheets in terms of the growth because we do have to market to US dollar terms, the actual Bitcoin denominated debt that we have hasn't changed and doesn't really affect us outside of the reporting. And so we are fully hedged, and the only change is really the US dollar valuation difference.

我們一路都很順利，因為我們的債務是以比特幣計價的。因此我們進行了 100% 的對沖。隨著生產的進行，我們只需轉身並交出比特幣。因此，儘管從成長角度來看，我們的資產負債表上的數字看起來更大，因為我們必須以美元來計算市場，但我們實際以比特幣計價的債務並沒有改變，而且在報告之外並沒有真正影響到我們。因此，我們完全進行了對沖，唯一的變化實際上是美元估值差異。

Okay. Thanks for that explanation because it -- just looking at it sequentially, looks like it went up about $8 million, but you're saying that's -- how many Bitcoin is it.

好的。感謝您的解釋，因為 — — 僅按順序來看，它似乎上漲了約 800 萬美元，但您說的是 — — 它是多少比特幣。

Sorry to jump in, it's about 303 Bitcoin as of this point. And essentially, Kevin went from [1,230,123] Bitcoin's price was $42,213 and as of [331] because of this spot, it's $70,456. So you're basically taking your outstanding balance of 303 times, basically the $70,456 to get to that 22 versus when it was 323, let's say, at $42,213. So that's the biggest change. It's all just saying where we are.

抱歉打擾一下，目前為止大約有 303 比特幣。基本上，Kevin 從 [1,230,123] 開始，比特幣的價格為 42,213 美元，截至 [331] 時，價格為 70,456 美元。因此，您基本上是將未償餘額 303 乘以 70,456 美元，得出 22 美元，而當餘額為 323 時，則為 42,213 美元。這是最大的改變。這一切只是顯示我們在哪裡。

Thank you so much. Appreciate it. Rob, why did you decide to buy stock back? Or would you decide to buy back stock versus invest in more machines. Are you maxed out at Coin Man or -- how are you thinking about that cash as you generate it?

太感謝了。非常感謝。羅布，為什麼決定回購股票？或者您決定回購股票而不是投資更多機器。您在 Coin Man 中是否已經達到了最高限額，或者您在產生這些現金時是如何考慮的？

It's not a what situation, what the situation currently is now, it's more of having the right tools in our tool belt, the having an ATM, for example, which is on the other side of this, allows companies to raise capital. I believe good management for the capital structure of our company also should include having a buyback program available should we see situations where the stock is significant undervalued in our view.

這不是什麼情況，不是現在的情況是什麼，而是我們的工具帶中是否擁有合適的工具，例如，在另一端擁有一台 ATM，可以讓公司籌集資金。我認為，我們公司資本結構的良好管理也應該包括制定回購計劃，以防出現我們認為股票被嚴重低估的情況。

And so it's this is not necessarily a reflection on our current cost structure or the growth ability, and there certainly still is growth ability at our current location. It is really more a matter of having it in place so that when we do believe there's a situation where it makes sense to buy back, we don't have to start the process from zero. It is they're ready to go. And it really does, in my opinion, underscore management's focus on managing capital, both ways. We're not just issuing equity. We will buy it back if it's too low. And I think that's what's necessary for good management of the capital structure.

因此，這不一定反映我們當前的成本結構或成長能力，而且我們目前的位置肯定仍然具有成長能力。這實際上更重要的是將其落實到位，以便當我們確實認為存在回購有意義的情況時，我們不必從零開始這個過程。他們已經準備好出發了。在我看來，它確實強調了管理層對雙向資本管理的關注。我們不只是發行股票。如果價格太低，我們會回購。我認為這正是良好管理資本結構所必需的。

I don't disagree at all. I'm just curious as I guess, how you look at the priorities. I understand you want all doors open. Just curious why would you choose to use your capital in that fashion?

我完全不反對。我只是好奇，你是如何看待這些優先事項的。我知道你想讓所有的門都敞開。只是好奇你為什麼選擇以這種方式使用你的資本？

Yeah. I think that's going to be a decision at the moment where we want to pull that trigger because, yes, our default will always be buy more machines get bigger and that will certainly be the case. But there may be a time, and I don't want to guess when because I think we're going to have to be at that moment to know for that, for sure. But there will be moments where we think the stock price is too low. We have the capital, and we think it just makes more sense for us to buyback, then.

是的。我認為這是我們此刻想要做出的決定，因為，是的，我們的預設設定永遠是購買更多的機器，使其變得更大，而且情況肯定會如此。但也許會有那麼一天，我不想猜測具體時間，因為我認為我們必須親自到現場才能知道確切的時間。但有時我們會認為股價太低。我們有資本，我們認為回購更有意義。

There is no set rules in place. It is more a matter of having it there and having that discussion with the Board and with our advisors as well. But the key thing is for us to make sure that it's there so that we can make that decision and that's on the table as opposed to never thinking about it at all.

沒有既定的規則。這更重要的是將其在那裡進行討論，並與董事會和我們的顧問進行討論。但關鍵是我們要確保它存在，以便我們能夠做出決定，而不是根本不去考慮它。

What sort of operating flexibility do you have with your host partner in view of hash price at sub $0.05 at this point? Can you throttle down your machines? I mean, obviously, with the 21s, you've got great efficiency, but the balance of your fleet you might want to optimize should hash price slide lower. I'm just sort of give us a clue on how much flexibility you have.

鑑於目前哈希價格低於 0.05 美元，您與主機合作夥伴有什麼樣的營運彈性？你能減慢機器的速度嗎？我的意思是，顯然，有了 21，你就獲得了很高的效率，但如果哈希價格下滑，你可能需要優化你的車隊的平衡。我只是想讓我們知道你們的彈性有多大。

A lot. It's funny, we have a weekly scheduled meetings and whenever we need to we have more, and I just had a meeting last week specifically on this topic. So very flexible, we can go up and down if we need to. Right now, it's a push in terms of slowing down or keeping it. So we are moving forward, just understanding that and maybe taking advantage of that at the right time. But that is certainly something that is available to us and we're constantly monitoring.

很多。有趣的是，我們每週都會安排一次會議，只要有需要，我們就會召開更多會議，而我上週剛剛專門就這個主題開了一次會議。非常靈活，如果需要，我們可以上下移動。目前，這是在放慢速度或保持速度方面的推動。因此，我們正在向前邁進，只是理解這一點，並可能在適當的時候利用這一點。但這確實是我們可以利用的，我們會持續監控。

And how about the agreement that you have with the host, how does that play into your calculus? And just in terms of rev share. I think most of the people host their end up with sort of a rev share agreement. I'm just kind of curious about how that's calculated in.

那麼，您與主持人達成的協議如何，這對您的計算有何影響？僅就收入份額而言。我認為大多數人最終都會以某種收益分成協議來結束他們的事業。我只是有點好奇這是如何計算的。

Yeah. Well, it's a simple math equation at that point, right? It's in our model. So we play around with low-power mode versus high-power or just normal. And that's part of the calculus and figuring what the best pathway forward is. So it's not necessarily anything new, it's just really another cost to build into the model.

是的。那麼，這是一個簡單的數學方程式，對嗎？它在我們的模型中。因此，我們嘗試了低功耗模式、高功耗模式或正常模式。這是計算的一部分，並確定最佳前進路徑。所以它不一定是什麼新東西，它只是建造到模型中的另一個成本。

Okay. I know you were asked already, but maybe you could give us a little more insight on the timeline. I appreciate the lofty target and the aggressive stance. But when do you think we might see you pull a trigger on wrestling something to the ground?

好的。我知道您已經被問過了，但也許您可以給我們更多關於時間軸的資訊。我讚賞這崇高目標和積極進取的立場。但是你認為什麼時候我們才能看到你扣下板機把某物摔倒在地？

Well, I can't give specific targets, as you can probably appreciate, but let me say this, we are aggressively looking at doing something and it is not a matter of it not being available. We have actually turned down everything that we've seen so far. There hasn't really been -- there has not been a situation where someone said no to us. At most, it's been a delay, but not necessarily no to us. Its more Gryphon being too picky, let's say.

好吧，我無法給出具體的目標，正如你可能理解的那樣，但是我要說的是，我們正在積極考慮做一些事情，而這並不是沒有辦法的問題。事實上，我們拒絕了迄今為止所見到的所有提議。確實沒有——從來沒有人對我們說不的情況。最多只是延遲，但對我們來說不一定沒有。可以說，這是因為 Gryphon 太挑剔了。

If I wanted to add two to three exahash right now, I could, but I would do so at a situation where I don't think the economics are as good as I think we can get. So it's really not a matter of availability or can we, it's matter of is it good enough based on what we like to put into the company. So -- answer to you is I want to do it yesterday and we're certainly aggressively looking at any given time. I think there are four or five active files we've looked at. I'm calling it 12 to 16 so far, and yet we're trying to announce something as soon as possible. And hopefully we will.

如果我現在想增加 2 到 3 exahash，我可以，但是當我這樣做時，我認為經濟狀況還沒有達到我們所能達到的最佳水平。所以這其實不是一個可用性或我們能否提供的問題，而是一個基於我們願意為公司付出什麼而足夠好的問題。所以——我的回答是，我想昨天就做這件事，而且我們肯定會積極地考慮任何特定的時間。我認為我們已經查看了四到五個活動文件。到目前為止，我認為是 12 到 16 個，但我們正嘗試盡快宣布一些消息。希望我們能夠做到。

You had a $0.048 hash price, I think time becomes your friend. Can you give us any idea on how you think about geographic positioning? Are you are you thinking that you want to be US-centric, or Quebec, Alberta or BC offer opportunities for you?

你的哈希價格為 0.048 美元，我認為時間會成為你的朋友。您能告訴我們您對地理定位的看法嗎？您是否想過以美國為中心，或者魁北克、阿爾伯塔或不列顛哥倫比亞省能為您提供機會？

Yeah. We are open minded. As long as you know, I'm coming from traditional mining background, so I'm very familiar with going through less than ideal countries, and I don't want to do that. So for us, the first thing that we look at anywhere is a good rule of law, a situation where if I deploy my machines there, they're not going to be taken away because the government doesn't like it, or that they're so poor rule of law that someone can come in and steal my machines and I can't do anything about it.

是的。我們思想開放。你知道，我來自傳統的採礦業背景，所以我非常熟悉穿越不太理想的國家，我不想那麼做。因此，對我們來說，在任何地方我們首先要考慮的都是良好的法治，如果我在那裡部署我的機器，它們不會被政府拿走，因為政府不喜歡，或者那裡的法治很差，以至於有人可以進來偷走我的機器，而我對此無能為力。

So that crosses a bunch of countries off. But for the remaining ones that passed that, the other things that we're looking at that point are the economics really, it's in terms of do we have low enough cost and generally, that's the go-forward. So doesn't have to be US-centric. But obviously, if it's US-centric, it's a little easier because we're based here. But we have been looking all over Asia, South America, Europe all over.

因此這涉及了許多國家。但對於其餘通過審核的項目，我們當時考慮的其他因素實際上是經濟因素，即我們的成本是否足夠低，一般來說，這是前進的方向。所以不必以美國為中心。但顯然，如果以美國為中心，那就容易一些，因為我們的基地就在這裡。但我們一直在亞洲、南美洲和歐洲各地尋找。

Very good.

非常好。

Thanks so much for taking my questions and thanks. I appreciate it.

非常感謝您回答我的問題，謝謝。我很感激。

Anytime. My pleasure, thank you.

任何時候。我很榮幸，謝謝。

[Carlos Siwalski, Two Wheel Adventures]

[卡洛斯·西瓦爾斯基，兩輪冒險]

Yeah, hi, guys. Thank you for taking my call.

是的，大家好。感謝您接聽我的電話。

Pleasure. Thank you.

樂趣。謝謝。

I was listening to interview, and I think I kind of picked up on a little nugget, and I don't know if you guys can maybe expand on it. Are you guys planning or thinking about expanding to Wyoming?

我在聽採訪時，我想我發現了一些小秘密，我不知道你們是否可以詳細說明一下。你們是否正在計劃或考慮擴展到懷俄明州？

It's certainly on the table. I love Wyoming as a state, very friendly. And I am not sure if you're familiar with my uranium background. I sat in the Board of a uranium company that has assets in Wyoming. So definitely a fan. And so if there are good opportunities in Wyoming, we would absolutely look at it.

它肯定是擺在桌面上的。我喜歡懷俄明州，這裡非常友善。我不確定您是否熟悉我的鈾背景。我是一家在懷俄明州擁有資產的鈾公司的董事會成員。所以絕對是粉絲。因此，如果懷俄明州有好的機會，我們絕對會考慮。

Right. I'm also a big uranium fan myself. Could you maybe elaborate on if you guys ever plan to in maybe more nuclear? Is that one of the Wyoming targets or how does that working?

正確的。我本人也是鈾迷。您能否詳細說明一下你們是否計劃進行更多的核子試驗？這是懷俄明州的目標之一嗎？或者它是如何運作的？

I can't speak specifically to any targets, but nuclear, we certainly view as carbon neutral and it's something kind of personally I would love for us to do given my -- having a foot in both boats where Bitcoin mining and very into the uranium nuclear space as well. So if there is an opportunity in our space, we would absolutely look to that. And we do believe that that is 100% carbon neutral.

我無法具體談論任何目標，但我們確實將核能視為碳中和，我個人非常希望我們能夠做到這一點，因為我涉足比特幣挖礦和鈾核領域。因此，如果我們的領域有機會，我們絕對會抓住它。我們確實相信這是100％碳中和。

Well, that was it guys. Thank you so much for taking my call.

好了，就是這樣了，夥計們。非常感謝您接聽我的電話。

My pleasure. Thank you.

我的榮幸。謝謝。

Thank you. There were no other questions in queue at this time. I would now like to hand the call back to Rob Chang for closing remarks.

謝謝。此時隊列中沒有其他問題。現在我想把電話交還給 Rob Chang 來做結束語。

Thank you, and thanks, everyone, for your participation and insightful questions. We look forward to updating you on our continued progress next quarter. Operator, that concludes today's call. Thank you.

謝謝大家的參與和提出深刻的提問。我們期待下個季度向您通報我們的持續進展。接線員，今天的通話到此結束。謝謝。

Thank you. This does conclude today's conference, and you may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束，大家可以斷開線路了。感謝您的參與。