Bitfarms Ltd (BITF) 2022 Q4 法說會逐字稿

Good morning and welcome to the Bitfarms's fourth quarter and full year 2022 financial results conference call. (Operator Instructions) Please note that this event is being recorded today. I would now like to turn the conference over to David Barnard with LHA Investor Relations. Please go ahead, sir.

早上好，歡迎來到 Bitfarms 第四季度和 2022 年全年財務業績電話會議。 （操作員說明）請注意，今天正在記錄此事件。我現在想將會議轉交給 LHA 投資者關係部的大衛·巴納德 (David Barnard)。請繼續，先生。

Thank you, Joe. Good morning, everyone. Welcome to Bitfarms conference call for the fourth quarter 2022. With me on the call today is Geoff Morphy, President and Chief Executive Officer; and Jeff Lucas, Chief Financial Officer. Before we begin, please note this call is being webcast live with an accompanying presentation.

謝謝你，喬。大家，早安。歡迎來到 Bitfarms 2022 年第四季度電話會議。今天和我一起參加電話會議的是總裁兼首席執行官 Geoff Morphy；和首席財務官 Jeff Lucas。在我們開始之前，請注意本次電話會議正在網絡直播，並附有演示文稿。

To watch along with the slides you can log into our website at www.bitfarm.com under Investors Presentations. If you prefer to listen to the call in your smartphone, you can download the presentation from there as well. I would like to remind you that this morning Bitfarms issued a press release announcing its fourth quarter 2022 financial results.

要觀看幻燈片，您可以登錄我們的網站 www.bitfarm.com，在 Investors Presentations 下。如果您更喜歡在智能手機中收聽通話，您也可以從那裡下載演示文稿。我想提醒你，今天早上 Bitfarms 發布了一份新聞稿，宣布了其 2022 年第四季度的財務業績。

Turning to slide 2, I'll remind everyone that certain forward-looking statements will be made during the (technical difficulty) future results could differ materially from those implied in these statements. The forward-looking information is based on certain assumptions and is subject to risks and uncertainties, and I invite you to consult Bitfarms' MD&A for a complete list of these.

轉到幻燈片 2，我會提醒大家，某些前瞻性陳述將在（技術困難）未來結果中做出，可能與這些陳述中暗示的結果大不相同。前瞻性信息基於某些假設並受風險和不確定性的影響，我邀請您查閱 Bitfarms 的 MD&A 以獲取這些信息的完整列表。

Also during the call, reference will be made to supporting slides and you can find the presentation again on our website at bitfarm.com under the Investor Relations section. The company will also (technical difficulty) further measures not recognized under IFRS, and that do not have a standardized meaning prescribed by IFRS, and therefore may not be comparable to similar measures presented by other companies.

同樣在電話會議期間，將參考支持幻燈片，您可以在我們網站 bitfarm.com 的“投資者關係”部分下再次找到該演示文稿。公司還將（技術上的困難）進一步採取 IFRS 未認可的措施，這些措施沒有 IFRS 規定的標準化含義，因此可能無法與其他公司提出的類似措施進行比較。

We invite listeners to refer to today's earnings release and the company's fourth quarter 2022 MD&A (technical difficulty) the aforementioned non-IFRS measures and their reconciliations to IFRS measures. Please note that all financial references are denominated in US dollars unless otherwise noted.

我們邀請聽眾參考今天的收益發布和公司 2022 年第四季度的 MD&A（技術難度）上述非 IFRS 措施及其與 IFRS 措施的對賬。請注意，除非另有說明，否則所有財務參考均以美元計價。

During today's call, CEO, Geoff Morphy will review our operations for the quarter; and CFO Jeff Lucas will follow with a detailed financial review, and Geoff Morphy will return for some closing remarks after the Q&A. We have requested investors to send the questions (technical difficulty) which I may raise to management time permitting after the call to analysts interested in the live Q&A.

在今天的電話會議上，首席執行官 Geoff Morphy 將回顧我們本季度的運營情況；和首席財務官 Jeff Lucas 將隨後進行詳細的財務審查，而 Geoff Morphy 將在問答結束後返回進行一些結束語。我們已要求投資者在電話會議後向對現場問答感興趣的分析師發送我可能提出的問題（技術難度）。

Now turning to Slide 3. It's my pleasure to turn the call over to Geoff Morphy.

現在轉到幻燈片 3。很高興將電話轉給 Geoff Morphy。

Thank you for joining us today. As we are excited to talk to you about our recent successes and why Bitfarms is well-positioned in the current environment to take advantage of improving market conditions. As a leading publicly traded international Bitcoin mining company, we continue to carefully assess strategic decisions regarding geographic diversification, farm expansion, minor utilization, public and private company acquisitions, and capital allocation.

感謝您今天加入我們。我們很高興與您談論我們最近的成功以及為什麼 Bitfarms 在當前環境中處於有利地位以利用不斷改善的市場條件。作為一家領先的上市國際比特幣礦業公司，我們繼續仔細評估有關地域多元化、農場擴張、小規模利用、上市和私營公司收購以及資本配置的戰略決策。

We have created the following key differentiators. We ensure our competitive low-cost structure by maintaining strict discipline when evaluating expansion opportunities. We seek out and source stable and surplus sources of energy with attractive pricing to continue to expand with a view to reducing our production costs.

我們創造了以下關鍵差異化因素。我們通過在評估擴張機會時保持嚴格的紀律來確保我們具有競爭力的低成本結構。我們以有吸引力的價格尋找和採購穩定和過剩的能源，以繼續擴張，以降低我們的生產成本。

We utilize and continue to enhance our proprietary mining management software and vertically integrated electrical subsidiary to yield an improved fleet and operational efficiencies. We set the standard for KPI reporting transparency, maintain the highest standards in financial controls and reporting, and have been audited by a Big Four accounting firm since going public in 2017.

我們利用並繼續增強我們專有的採礦管理軟件和垂直整合的電氣子公司，以改善車隊和運營效率。我們設定了 KPI 報告透明度的標準，在財務控制和報告方面保持最高標準，並自 2017 年上市以來接受了四大會計師事務所的審計。

During the past year and one half, we have built an exceptional management team. Our international team has significant experience and enables us to scale our operations without additional resources. And for the past nine months, we have implemented and continue to improve on a highly disciplined approach to growth and capital preservation, including debt reduction.

在過去一年半的時間裡，我們打造了一支優秀的管理團隊。我們的國際團隊擁有豐富的經驗，使我們能夠在無需額外資源的情況下擴展我們的業務。在過去的九個月裡，我們已經實施並繼續改進高度紀律的增長和資本保全方法，包括減少債務。

We will continue these efforts in 2023 by continuing to seek out accretive and cost effective acquisition opportunities; to bring further expansion; increased cash flow from operations; diversify our international footprint and leverage capabilities of our management team; and using our proprietary software to add immediate value.

我們將在 2023 年繼續努力，繼續尋找增值且具有成本效益的收購機會；帶來進一步的擴張；經營活動產生的現金流量增加；使我們的國際足跡多樣化並利用我們管理團隊的能力；並使用我們的專有軟件來增加直接價值。

Industry consolidation will continue in Bitfarms, as we have mentioned numerous times in the past, has a superior platform for this type of growth. Completing and integrating acquisitions prior to the next halving in Q2 2024 is strategically important.

正如我們過去多次提到的那樣，Bitfarms 的行業整合將繼續進行，它為此類增長提供了一個優越的平台。在 2024 年第二季度下一次減半之前完成和整合收購具有重要的戰略意義。

Also, in Rio Cuarto, Argentina, we plan to soon overcome recent impediments and execute on a plan to fully activate our new farm with 50 megawatts of low-cost electricity and adding well over one exahash of new production.

此外，在阿根廷的 Rio Cuarto，我們計劃盡快克服最近的障礙並執行一項計劃，以 50 兆瓦的低成本電力充分激活我們的新農場，並增加超過 exahash 的新產量。

Most importantly, this will be accomplished with very little capital outlay. On the development front, the pipeline is robust, and there are emerging opportunities that may meet our fundamental criteria for transaction growth, which we are working to realize.

最重要的是，這將以極少的資本支出實現。在開發方面，管道穩健，並且出現了可能滿足我們正在努力實現的交易增長基本標準的新機會。

Now I'll review our accomplishments since the beginning of 2022. Please turn to slide 4, which shows some highlights. We more than doubled our hashrate in 2022 and increased it further so far in 2023, reaching 4.7 EH/s at the end of February.

現在我將回顧我們自 2022 年初以來取得的成就。請轉到幻燈片 4，其中顯示了一些亮點。我們在 2022 年將哈希率提高了一倍多，並在 2023 年進一步提高，在 2 月底達到 4.7 EH/s。

We mined 5,167 Bitcoin in 2022. And in February 2023 surpassed the 20,000 milestone for Bitcoins mined by Bitfarms since its inception over five years ago. We generated $142 million in revenue and $52 million in adjusted EBITDA in 2022. Our costs remain amongst the lowest in the industry.

我們在 2022 年開采了 5,167 個比特幣。2023 年 2 月超過了 Bitfarms 自五年前成立以來開采的 20,000 個比特幣的里程碑。我們在 2022 年創造了 1.42 億美元的收入和 5200 萬美元的調整後 EBITDA。我們的成本仍然是業內最低的。

With our all in quarterly cash cost of production lower than the quarterly average Bitcoin price, we again posted positive cash flow from operations in Q4 2022, which is an accomplishment as the industry struggles. We also significantly increased our flexibility and liquidity by reducing debt by over $140 million during the last nine months, and lowering CapEx commitments by almost $70 million.

由於我們所有的季度現金生產成本低於比特幣的季度平均價格，我們在 2022 年第四季度再次公佈了正的運營現金流，這是行業苦苦掙扎的成就。我們還通過在過去九個月中減少了超過 1.4 億美元的債務，並將資本支出承諾減少了近 7000 萬美元，從而顯著提高了我們的靈活性和流動性。

Slide 5 summarizes the status of our farms. We ended 2022 with 10 farms in four countries. We have 188 megawatts in operating capacity, 95% of which is powered by sustainable hydro electricity, and an additional 40 megawatts of built capacity in Argentina is awaiting impending approvals, which will allow for substantially and timely expansion with electricity costs that we fully expect will bring down our overall corporate Bitcoin production costs.

幻燈片 5 總結了我們農場的狀況。到 2022 年底，我們在四個國家擁有 10 個農場。我們擁有 188 兆瓦的運營能力，其中 95% 由可持續水力發電提供動力，另外 40 兆瓦的阿根廷已建成產能正在等待即將批准，這將允許大幅及時地擴展我們完全預期的電力成本降低我們公司的整體比特幣生產成本。

Turning to slide 6, we show some of our particularly noteworthy achievements at our farms. Ahead of schedule, we successfully completed our ambitious Canadian expansion plan, increasing our hydro powered megawatts. Specifically at our three new farms located in Sherbrooke, Quebec, we achieved full capacity of 96 megawatts under our power purchase agreement.

轉到幻燈片 6，我們展示了我們在農場取得的一些特別值得注意的成就。我們提前成功完成了雄心勃勃的加拿大擴張計劃，增加了我們的水力發電兆瓦。具體來說，在我們位于魁北克省舍布魯克的三個新農場，我們根據購電協議實現了 96 兆瓦的全部容量。

During Q4 2022, at our Garlock farm we energized 18 megawatts. At The Bunker we energize the remaining 12 megawatts capacity, bringing it to 48 megawatts. And as planned, we decommissioned and sold the De la Pointe facility for net proceeds of $3.6 million.

2022 年第四季度，我們在 Garlock 農場提供了 18 兆瓦的電力。在 The Bunker，我們為剩餘的 12 兆瓦容量提供能量，使其達到 48 兆瓦。按照計劃，我們退役並出售了 De la Pointe 設施，淨收益為 360 萬美元。

In Paraguay at our Villarrica farm, we imported and installed 2,888 new MicroBT M30s which added a net 168 PH/s at the farm, bringing the total hashrate in Paraguay to 288 PH/s at January 31, 2023, and improved our overall efficiency to 39 w/TH. The previous miners have been sold. In Washington state, we are operating 20 megawatts and generating approximately 600 PH/s.

在巴拉圭的 Villarrica 農場，我們進口並安裝了 2,888 台新的 MicroBT M30，這使該農場淨增加了 168 PH/s，使巴拉圭的總哈希率在 2023 年 1 月 31 日達到 288 PH/s，並將我們的整體效率提高到39 歲。之前的礦機已經賣掉了。在華盛頓州，我們正在運行 20 兆瓦並產生大約 600 PH/s。

Farm highlights are continued by turning to Slide 7. In Rio Cuarto, Argentina, there are approximately 10 megawatts currently online, and additional 40 megawatts of capacity built and awaiting approvals. We expect approval of our power permit very soon.

轉到幻燈片 7 繼續了解農場亮點。在阿根廷的 Rio Cuarto，目前大約有 10 兆瓦的在線電力，另外還有 40 兆瓦的容量已建成並正在等待批准。我們預計我們的電力許可證很快就會獲得批准。

Once we receive this approval, we can draw power under our power purchase agreement from our private power producer. Once activated, we expect this farm to benefit from the lowest cost power across our operations.

一旦我們獲得批准，我們就可以根據我們的購電協議從我們的私人電力生產商處獲取電力。一旦啟動，我們預計該農場將受益於我們運營中成本最低的電力。

Then when the importation of new equipment has been approved, using some of our $22 million of hardware credits we will purchase and import 8,000 to 9,000 miners. Based on current prices of miners, we expect the [hard group] credit to more than cover our capital expenditure requirements to bring this 50 megawatt warehouse into full production during 2023.

然後，當新設備的進口獲得批准後，我們將使用我們 2200 萬美元的硬件信貸中的一部分來購買和進口 8,000 到 9,000 台礦機。根據礦工的當前價格，我們預計 [hard group] 信貸將超過我們的資本支出要求，以便在 2023 年使這個 50 兆瓦的倉庫全面投入生產。

When complete, this will increase our corporate hashrate to 6 EH/s for our existing portfolio. After the first 50 megawatts are deployed, we can then ascertain the timing of the construction and build-out of the second 50 megawatts on the same property with the same beneficial attributes. For a glimpse of our operations in Rio Cuarto, I encourage you to refer to the two-minute video that was recently posted to our website.

完成後，這將使我們現有投資組合的公司哈希率增加到 6 EH/s。在部署第一個 50 兆瓦後，我們可以確定在具有相同有益屬性的同一財產上建設和擴建第二個 50 兆瓦的時間。要了解我們在 Rio Cuarto 的運營情況，我鼓勵您參考最近發佈到我們網站上的兩分鐘視頻。

Please turn to slide 8, which summarizes and highlights our operations and positions as we proceed in 2023. With that, I will now hand the call over to Jeff Lucas for the financial review.

請轉到幻燈片 8，它總結並強調了我們在 2023 年的運營和立場。有了這個，我現在將電話轉交給傑夫盧卡斯進行財務審查。

Thank you, Geoff. Network difficulty increases are raising the cost production for everyone as new mine has continued to be added to the global network and complete for a fixed number of Bitcoin block rewards, only the most efficient players will succeed.

謝謝你，傑夫。網絡難度的增加正在提高每個人的生產成本，因為新礦山不斷被添加到全球網絡並完成固定數量的比特幣區塊獎勵，只有最高效的玩家才能成功。

Bitfarms continues to execute tactics to maintain an efficient cost structure and strong balance sheet. This positions us for intelligent growth, consistent with our strategy of carefully pursuing accretive growth opportunities, and their operational capabilities, enable us to achieve superior financial performance with efficient capital investment.

Bitfarms 繼續執行策略以維持有效的成本結構和強大的資產負債表。這使我們處於智能增長的位置，符合我們謹慎追求增值增長機會及其運營能力的戰略，使我們能夠通過有效的資本投資實現卓越的財務業績。

I'll review our money economic, our performance, and our financial strategy. Please turn to Slide 9. In the fourth quarter of 2022, we mined 1,434 Bitcoins compared to 1,515 Bitcoins in the third quarter. The difference is primarily due to the 20% increase in average total network difficulty from the third quarter to the fourth quarter.

我將回顧我們的貨幣經濟、我們的業績和我們的財務戰略。請轉到幻燈片 9。2022 年第四季度，我們開采了 1,434 個比特幣，而第三季度為 1,515 個比特幣。差異主要是由於第三季度到第四季度平均總網絡難度增加了 20%。

That said, over the full year, our hashrate expansion delivered mining growth from 3,453 Bitcoins in 2021 to 5,167 Bitcoins mined in 2022, an increase of 50%. Our fourth quarter revenue was $27 million, comprised of $26 million from our mining activities and about $1 million from our Volta electrical subsidiary.

也就是說，在全年中，我們的哈希率擴展使採礦量從 2021 年的 3,453 個比特幣增長到 2022 年開采的 5,167 個比特幣，增長了 50%。我們第四季度的收入為 2700 萬美元，其中 2600 萬美元來自我們的採礦活動，約 100 萬美元來自我們的 Volta 電氣子公司。

This compared to $33 million in the third quarter, reflecting a 15% decline in the average decline price quarter over quarter and about 5% fewer Bitcoin mined during the quarter as the network difficulty increased offset our average cash rate increase of 13%. These factors also impacted the full year in 2022, revenue was $142 million compared to $169 million in 2021.

相比之下，第三季度為 3300 萬美元，反映出平均價格環比下降 15%，並且由於網絡難度增加抵消了我們 13% 的平均現金利率增長，本季度開采的比特幣減少了約 5%。這些因素也影響了 2022 年全年，收入為 1.42 億美元，而 2021 年為 1.69 億美元。

Focusing on mining economics, please now turn to Slide 10. In the fourth quarter of 2022, Bitfarms direct costs of production per Bitcoin remain among the lowest reported in the industry averaging just under $11,100, albeit up from $9,600 per Bitcoin in the third quarter of 2022.

請關注挖礦經濟學，現在請轉到幻燈片 10。2022 年第四季度，Bitfarms 每個比特幣的直接生產成本仍然是業內報告的最低成本之一，平均略低於 11,100 美元，儘管高於 2022 年第三季度每個比特幣的 9,600 美元2022.

The change reflects the increase in network difficulty, partially offset by greater efficiency from our miners and a modest decrease in our total cost electricity per kilowatt hour, primarily attributable to a favorable US-Canadian dollar exchange rate.

這一變化反映了網絡難度的增加，部分被我們礦工效率的提高和我們每千瓦時總成本電力的適度下降所抵消，這主要歸因於有利的美加元匯率。

While direct mining costs did increase this quarter, our hydropower electricity costs are not impacted by volatility in fossil fuel prices, and thus we continue to benefit from stable electricity costs. As a result, our direct cost of production for Bitcoin has remained relatively steady in its headquarters the 10 quarters since the last halving.

雖然本季度直接採礦成本確實有所增加，但我們的水力發電成本不受化石燃料價格波動的影響，因此我們繼續受益於穩定的電力成本。因此，自上次減半以來的 10 個季度，我們的比特幣直接生產成本在其總部保持相對穩定。

Fourth quarter gross mining profit was $8 million, a 33% of revenue compared to $17 million or 52% of revenue in the third quarter. This reflects an average Bitcoin price in the fourth quarter of $18,100, which is 15% lower than the average price of $21,300 in the third quarter.

第四季度採礦總利潤為 800 萬美元，佔收入的 33%，而第三季度為 1700 萬美元，佔收入的 52%。這反映出第四季度比特幣的平均價格為 18,100 美元，比第三季度的平均價格 21,300 美元低 15%。

Our total cash cost of production, including the direct mining cost, plus the fixed cost of revenue, including rent, ignition salaries, and cash, general, and administrative expenses otherwise referred to as G&A or overhead, was $16,800.

我們的總現金生產成本，包括直接採礦成本，加上固定收入成本，包括租金、點火工資和現金、一般和管理費用，也稱為 G&A 或間接費用，為 16,800 美元。

This increase of $2,300 or 16% from the third quarter was again due primarily to the impact of the higher network difficulty on direct mining costs. Importantly, our cash cost of production in the fourth quarter remained below the average Bitcoin price of $18,100. That's delivering positive cash flow from our mining activities.

與第三季度相比增加 2,300 美元或 16% 再次主要是由於更高的網絡難度對直接挖礦成本的影響。重要的是，我們第四季度的現金生產成本仍低於 18,100 美元的比特幣平均價格。這為我們的採礦活動帶來了積極的現金流。

From an IFRS reporting standpoint, for the fourth quarter, we reported an operating loss of $20 million, which included a $29 million realized loss on the disposition of digital assets, a $23 million change in unrealized gain on the revaluation of digital assets, and a net impairment reversal of $9 million.

從 IFRS 報告的角度來看，第四季度我們報告了 2000 萬美元的運營虧損，其中包括 2900 萬美元的數字資產處置已實現損失、2300 萬美元的數字資產重估未實現收益變化，以及淨減值撥回 900 萬美元。

This compares to the third quarter operating loss of $98 million, which included a $44 million realized loss on the disposition digital assets, a $46 million unrealized gain on the revaluation of digital assets, and $84 million impairment charge to our property, plant, and equipment, and a $14 million foreign exchange gain associated with funding our Argentinian operations.

相比之下，第三季度的運營虧損為 9800 萬美元，其中包括處置數字資產的 4400 萬美元已實現虧損、數字資產重估的 4600 萬美元未實現收益以及我們的財產、廠房和設備的減值支出 8400 萬美元，以及與為我們的阿根廷業務提供資金相關的 1400 萬美元外匯收益。

Our net loss for the quarter was $17 million or $0.8 per basic and fully diluted share. This compares to a third quarter 2022 net loss of $85 million, or $0.40 per basic and fully diluted share. Importantly, we continued to generate cash from our operations during the quarter and achieved adjusted EBITDA of a positive $1.1 million, even with the low average Bitcoin prices the industry experienced in the fourth quarter 2022.

我們本季度的淨虧損為 1700 萬美元，即每股基本和完全攤薄後的虧損為 0.8 美元。相比之下，2022 年第三季度淨虧損為 8500 萬美元，即每股基本和完全攤薄後虧損 0.40 美元。重要的是，我們在本季度繼續從我們的運營中產生現金，並實現了 110 萬美元的調整後 EBITDA，即使在 2022 年第四季度行業平均比特幣價格較低的情況下也是如此。

Turning now to Slide 11. Our balance sheet strength and flexibility continue to be our highest priorities. Our financing strategy is predicated on our principles of operational excellence, financial stability, and intelligent accretive growth. This supports our key goals of prudently funding finance commitments, planned growth in selective opportunities at a relatively low cost of capital.

現在轉到幻燈片 11。我們的資產負債表實力和靈活性仍然是我們的首要任務。我們的融資戰略基於卓越運營、財務穩定和智能增長的原則。這支持我們謹慎地為財務承諾提供資金的主要目標，以相對較低的資本成本計劃在選擇性機會中實現增長。

Our approach to financial management is straightforward. We look to utilize the proceeds from the sale of our daily Bitcoin production to fund our operating expenses, contribute to our debt service requirements, and reduce our leverage while affording us the financial flexibility to continue our growth activities even amidst the current period of decline price volatility.

我們的財務管理方法很簡單。我們希望利用出售日常比特幣生產所得的收益來資助我們的運營費用，滿足我們的償債要求，並降低我們的槓桿率，同時為我們提供財務靈活性，即使在當前價格下跌的情況下也能繼續我們的增長活動揮發性。

We use our ATM or at-the-market program judiciously to fund the growth investments to minimize shareholder dilution. Through our efforts to deleverage the balance sheet, we lowered total indebtedness from $155 million at its peak in early June, 2022, to $47 million at December 31, and a further reduction to $23 million as of February 28. We also reduced our CapEx commitments from over $100 million for 2023 to $32 million at the end of the year.

我們明智地使用我們的 ATM 或市場計劃來為增長投資提供資金，以盡量減少股東稀釋。通過努力去槓桿化資產負債表，我們將總負債從 2022 年 6 月初的峰值 1.55 億美元降至 12 月 31 日的 4700 萬美元，並在 2 月 28 日進一步降至 2300 萬美元。我們還減少了資本支出承諾從 2023 年的 1 億多美元增加到年底的 3200 萬美元。

During the fourth quarter, we renegotiated minor purchasing agreements extinguishing without penalty payment obligations of $45 million and establishing a $22.4 million credit that's available for future purchases. Combined with the completed 40 megawatts of built-out and in-place capacity at Rio Cuarto, we have dramatically reduced our CapEx financing needs, creating financial flexibility to fund further growth.

在第四季度，我們重新談判了小型採購協議，取消了 4500 萬美元的罰款義務，並建立了 2240 萬美元的信用額度，可用於未來的採購。結合 Rio Cuarto 已完成的 40 兆瓦的建成和就地容量，我們大大減少了我們的資本支出融資需求，創造了財務靈活性來為進一步增長提供資金。

At December 31, we had cash of $31 million in 405 Bitcoin valued at $6.7 million for total liquidity of $38 million. During the fourth quarter, we generated $54 million of proceeds by selling a total of 3,093 Bitcoin, 1,434 Bitcoin from production, 659 Bitcoin from treasury. We received $3.6 million net cash proceeds from the sale of our De la Pointe farm in December, and we raised $6 million of net proceeds from our ATM program.

截至 12 月 31 日，我們擁有價值 670 萬美元的 405 比特幣現金 3100 萬美元，總流動資金為 3800 萬美元。在第四季度，我們通過出售總計 3,093 個比特幣、1,434 個來自生產的比特幣和 659 個來自國庫的比特幣，獲得了 5,400 萬美元的收益。去年 12 月，我們通過出售 De la Pointe 農場獲得了 360 萬美元的淨現金收益，並通過 ATM 計劃籌集了 600 萬美元的淨收益。

For the first quarter of 2023 through March 20, we raised additional net proceeds of $14 million. In the fourth quarter, we also continued to lower our outstanding debt. We retired our three oldest and most expensive equipment debt financing facilities for $8 million.

從 2023 年第一季度到 3 月 20 日，我們額外籌集了 1400 萬美元的淨收益。第四季度，我們還繼續降低未償債務。我們以 800 萬美元的價格淘汰了三個最古老、最昂貴的設備債務融資機制。

To fully extinguish our revolving decline bank credit facility, we paid $23 million, which freed up over $8 million of Bitcoin that was otherwise collateralizing the loan in encumbered. We restructured an equipment financial with BlockFi, paying off the outstanding balance of $21 million for a settlement of $7.8 million in February of 2023.

為了完全取消我們的循環遞減銀行信貸額度，我們支付了 2300 萬美元，這釋放了超過 800 萬美元的比特幣，否則這些比特幣將抵押貸款。我們與 BlockFi 重組了一項設備財務，在 2023 年 2 月還清了 2100 萬美元的未償餘額，以達成 780 萬美元的和解。

In addition to selling the BlockFi loans subsequent to quarter end, we paid off in full about $380,000 due to Reliz Technology Group for about $118,000. As a result we ended February 2023 with just $23 million of total indebtedness, which is scheduled to mature by February of 2024 well in advance of the expected halving data as planned when we entered into the facilities. As a result, we successfully eliminated debt obligations of over $21 million, reducing principal interest payments by $1.6 million per month or about $20 million in total.

除了在季度末出售 BlockFi 貸款外，我們還以約 118,000 美元的價格全額償還了欠 Reliz Technology Group 的約 380,000 美元。結果，我們在 2023 年 2 月結束時的總債務僅為 2300 萬美元，該債務計劃於 2024 年 2 月到期，遠遠早於我們進入設施時計劃的預期減半數據。結果，我們成功地消除了超過 2100 萬美元的債務，每月減少本金利息支付 160 萬美元或總共減少約 2000 萬美元。

Turning to slide 12, I'll now turn the call back over to Geoff.

轉到幻燈片 12，我現在將電話轉回給 Geoff。

Thank you, Jeff. We manage our business with 2024 for having clearly in our sights. While no one can predict or control the price of Bitcoin only the most efficient mining companies will succeed. Our performance metrics are consistently industry leading we have maintained low direct cost of production, and we are working diligently to reduce our corporate overhead costs.

謝謝你，傑夫。我們在 2024 年管理我們的業務，因為我們清楚地看到了這一點。雖然沒有人可以預測或控制比特幣的價格，但只有最高效的礦業公司才會成功。我們的績效指標始終處於行業領先地位，我們一直保持較低的直接生產成本，並且我們正在努力降低公司間接費用。

Even at Q4 2022 Bitcoin price levels, we continue to generate positive cash from mining operations. We substantially reduced our debt, CapEx, and monthly cash obligations. Also importantly, our debt obligations are scheduled to be fully repaid in February 2024 over two months ahead of the next half.

即使在 2022 年第四季度的比特幣價格水平，我們繼續從挖礦業務中產生正現金。我們大幅減少了債務、資本支出和每月現金義務。同樣重要的是，我們的債務定於 2024 年 2 月在下半年之前的兩個月內全部償還。

With our existing infrastructure and $22.4 million in available credits for mining purchases, we expect to substantially cover our CapEx requirements to achieve 6 EH/s by the end of 2023 from our current portfolio of farms. In addition, we expect a cash tax recovery in mid-2023 which will further improve our liquidity and ability to quickly execute on our rising opportunities.

憑藉我們現有的基礎設施和 2240 萬美元的可用於購買採礦的信貸，我們預計到 2023 年底，我們當前的農場組合將大大滿足我們的資本支出要求，以實現 6 EH/s。此外，我們預計 2023 年年中將收回現金稅，這將進一步提高我們的流動性和快速執行不斷增加的機會的能力。

Our experienced global management team is highly capable of finding, negotiating, and integrating new international opportunities, and then to design and build new farms in a cost-effective manner. Having vertically integrated operations developed over the past five years continues to be a key competitive strength.

我們經驗豐富的全球管理團隊非常有能力尋找、談判和整合新的國際機會，然後以具有成本效益的方式設計和建造新農場。在過去五年中發展的垂直整合業務仍然是一個關鍵的競爭優勢。

We are following a path of growth with absolute discipline and as evidenced by our track record of operating excellence, we remain well positioned to take advantage of emerging opportunities, and be a respected consolidator in the industry.

我們正沿著絕對紀律的增長道路前進，正如我們卓越運營的記錄所證明的那樣，我們仍然處於充分利用新興機會的有利地位，並成為業內受人尊敬的整合者。

Before the Q&A session, I would like to mention that we will present at the Sidoti Small-Cap Conference being held virtually on March 22 and 23 and the Ladenburg Thalmann Technology Expo in New York on April 27.

在問答環節之前，我想提一下，我們將出席 3 月 22 日至 23 日虛擬舉行的 Sidoti 小型股會議以及 4 月 27 日在紐約舉行的 Ladenburg Thalmann 技術博覽會。

Operator, we can now open the call for questions. Please go ahead.

接線員，我們現在可以打開問題電話了。請繼續。

(Operator Instructions) Kevin Dede, H.C. Wainwright.

（操作員說明）Kevin Dede，H.C.溫賴特。

Good morning, Mr. Morphy and Mr. Lucas. Thanks for having me on.

早上好，Morphy 先生和 Lucas 先生。謝謝你邀請我。

Hello, Kevin.

你好，凱文。

Morning, Kevin.

早上好，凱文。

Maybe a little more granularity on the Argentina situation. You'd talked a lot about, I guess power, authority. I'm just kind of wondering where the miners are and -- because I know that getting through customs was an issue in the past. Maybe get caught up on timing there. And maybe also while you're talking to that point address the $22 million in credits and the opportunity that affords you in shipping more miners there?

阿根廷的情況可能更詳細一些。你談了很多，我猜是權力，權威。我只是想知道礦工在哪裡——因為我知道過去過海關是個問題。也許在那裡趕上了時間。也許當你談到這一點時，你還可以解決 2200 萬美元的信用額度以及為你提供向那裡運送更多礦工的機會嗎？

Sure. Let me start. I'll tell you about the current climate environment in Argentina. And then Jeff Lucas can talk to you about the minor credits and the CapEx anticipated for Argentina. But Kevin, we're very excited about where we stand in Argentina right now. It came with some impediments and some slowdowns last year as a result of the government and some of their fiscal challenges. But they've made adjustments and we are moving with them.

當然。讓我開始吧。我給大家介紹一下阿根廷目前的氣候環境。然後傑夫盧卡斯可以和你談談阿根廷的次要信貸和資本支出。但是凱文，我們對我們現在在阿根廷的立場感到非常興奮。由於政府和他們的一些財政挑戰，去年它遇到了一些障礙和一些放緩。但是他們已經做出了調整，我們正在與他們一起前進。

So the first situation was the power permit. The power permit -- once the high-voltage lines and the facility was made, they had six months to review the situation and provide approval to our private power contractor to be able to turn on and provide power to us. In the meantime, we've had to provide -- we've had to take and pay for power from the power grid at higher prices.

所以第一種情況是電力許可證。電力許可證——高壓線和設施建成後，他們有六個月的時間審查情況，並批准我們的私人電力承包商能夠啟動並為我們供電。與此同時，我們不得不提供 - 我們不得不以更高的價格從電網獲取電力並支付費用。

We believe we are very soon going to get approval from the government to allow our private power producer to turn on the power. And as soon as that happens, we will start benefiting from lower cost power. As we get more miners into the facility, the costs will even get lower.

我們相信我們很快就會獲得政府的批准，允許我們的私人電力生產商打開電源。一旦發生這種情況，我們將開始受益於成本更低的電力。隨著我們讓更多的礦工進入該設施，成本甚至會更低。

Because right now with the power contractor being utility scale, they need to produce at least 26 megawatts of power. Currently closer to 10 megawatts. Before we can start getting the full benefit out of the power being taken from that facility.

因為現在電力承包商是公用事業規模的，他們需要產生至少 26 兆瓦的電力。目前接近10兆瓦。在我們開始從該設施獲取的電力中獲得全部收益之前。

So we are excited that that seems to be around the corner and that the lower costs are going to be coming into us. We expect that the second challenge was importing miners into the country, which was stalled as a result of that country's balance sheet, and they have made changes, as I mentioned. And now we are -- expect that probably within the next 30 to 45 days that it will be open to us to start bringing miners into the country.

因此，我們很高興這似乎指日可待，而且較低的成本將進入我們的行列。我們預計第二個挑戰是將礦機進口到該國，由於該國的資產負債表而停滯不前，正如我提到的那樣，他們已經做出了改變。現在我們 - 預計可能在接下來的 30 到 45 天內，我們將開始將礦工帶入該國。

And initially that will be a few thousand, but then that will move up to 8,000 to 9,000 miners, and fingers crossed, it looks like we should be in full production during the third quarter of this year, and that facility will be at full production.

最初會有幾千名，但隨後將增加到 8,000 到 9,000 名礦工，祈禱吧，看起來我們應該在今年第三季度全面投產，而且該設施將全面投產.

And then depending on the markets and the prices and the hash price and all the other factors that will come into it. Along the way we will make a decision about implementing the second 50 megawatt warehouse that we can put on the same site with this -- all the same favorable attributes.

然後取決於市場、價格和哈希價格以及所有其他因素。在此過程中，我們將決定實施第二個 50 兆瓦的倉庫，我們可以將其放在同一地點——所有相同的有利屬性。

Okay. So your hashing there now. About what level are you hashing now and you're running completely off the grid?

好的。所以你現在在那裡散列。您現在正在散列什麼級別並且您完全脫離了網格？

We are pulling power exclusively from the grid right now because the private power producer doesn't have the green light to turn the power on for us. So the cost is higher because we're taking grid power. That will substantially reduce based on energy prices right now and our contract with the private power producer. So that should be around the corner.

我們現在完全從電網中獲取電力，因為私人電力生產商沒有為我們打開電源的綠燈。所以成本更高，因為我們正在使用電網。根據目前的能源價格和我們與私營電力生產商的合同，這將大大減少。所以這應該是指日可待。

Okay.

好的。

And I was remiss in my previous comment in saying that between the approximately 10 megawatts that we're drawn now and approximately 26 megawatts, when they turn on at utility scale they will produce more power than we need, and they will sell that power to the grid. That tends to be at a loss to them. So we'll have to make it up. But it will be a blended power rate that will take us down to what should be $0.3 per kilowatt expressed in US dollars or less once we're in production there.

我在之前的評論中失職地說，在我們現在繪製的大約 10 兆瓦和大約 26 兆瓦之間，當它們以公用事業規模啟動時，它們將產生比我們需要的更多的電力，並且他們會將這些電力出售給網格。這往往會讓他們不知所措。所以我們必須彌補。但這將是一個混合電價，一旦我們在那裡投入生產，它將使我們降到每千瓦 0.3 美元（以美元表示）或更少。

Okay.

好的。

And, yeah, we're driving generally 8 to 10 megawatts right now.

而且，是的，我們現在一般驅動 8 到 10 兆瓦。

Okay.

好的。

And with full sights on drawing a full 50 megawatts later this year.

併計劃在今年晚些時候抽取全部 50 兆瓦的電力。

So per your discussion, Geoff, regarding the government, do you think they've backed off a little bit on the custom clamp down? Do you think machines will flow in with less hiccups in the future such that you can get to that 26 meg consumption more in near term than the full 50 in the third quarter?

所以根據你的討論，傑夫，關於政府，你認為他們在海關限制方面有所退縮嗎？您是否認為未來機器會以更少的故障流入，以便您可以在短期內達到 26 兆的消耗量，而不是第三季度的 50 兆消耗量？

No, a different lens, Kevin. Under the former program, they provided an advantageous exchange rate called the Blue Chip exchange rate. It's called a variety of things. That, us, and a variety of other foreign direct investors we're taking advantage of to bring equipment into the country. It was a more favorable exchange, but that also impacted the country's balance sheet at a time when it really didn't have the wherewithal to be able to stomach that any longer.

不，不同的鏡頭，凱文。在前一個計劃下，他們提供了一種稱為藍籌匯率的有利匯率。它被稱為各種各樣的東西。那，我們和我們正在利用的各種其他外國直接投資者將設備帶入該國。這是一個更有利的交換，但這也影響了該國的資產負債表，當時它真的沒有足夠的資金來忍受這種情況。

So it put a stop to that practice, and then it needed to bring in new channels to be able to allow foreign direct investors to invest in the country, which is now done. And because we have been there for two years, have employees in the country, have a track record of being able to build and pay suppliers, we now have what the application required to be able to submit the application and get approval to become a direct importer.

所以它停止了這種做法，然後它需要引入新的渠道來允許外國直接投資者在該國投資，現在已經做到了。而且因為我們已經在那里工作了兩年，在該國擁有員工，擁有能夠建立和支付供應商的記錄，我們現在擁有能夠提交申請並獲得批准成為直接供應商的申請所需的條件進口商。

When we're a direct importer, we can bring equipment in. We will pay not at the CCL or it would be -- or the Blue Chip exchange rate, but at the official exchange rates. But we will also have substantially less in brokerage charges to do it. They pretty much offset each other.

當我們是直接進口商時，我們可以將設備帶進來。我們不會以 CCL 或藍籌匯率支付，而是以官方匯率支付。但是我們這樣做的經紀費用也會大大減少。他們幾乎相互抵消。

But the best part of it is that under this new approval process -- which we are in the queue, and we feel very strongly that we're going to get approval within the next 30 to 45 days, that we'll be allowed to be a direct importer.

但最好的部分是，在這個新的批准程序下——我們正在排隊，我們非常強烈地認為我們將在接下來的 30 到 45 天內獲得批准，我們將被允許成為直接進口商。

And well, there'll still be communications with the government and smaller approvals. It's in their best interest because of the cash flows that we'll be bringing to the economy too, to approve that application, and we're a good corporate citizen being able to do that. We're excited for that to happen.

好吧，仍然會與政府進行溝通，並獲得較小的批准。這符合他們的最大利益，因為我們也將為經濟帶來現金流，批准該申請，我們是能夠做到這一點的優秀企業公民。我們很高興這會發生。

Okay. Now with regard to the $22 million credit, you foresee dedicating its used to going from the $26 million level you're anticipating near term to $50 million in the third quarter in terms of megawatts?

好的。現在關於 2200 萬美元的信貸，你預計它用於從你預計的近期 2600 萬美元水平到第三季度的 5000 萬美元（以兆瓦計）？

I'll let Jeff answer that, but it'll take us from the $8 million to $10 million that we're at now right up to the $50 million and still have some credit left over. But go ahead, Jeff.

我會讓 Jeff 回答這個問題，但這將使我們從現在的 800 萬美元到 1000 萬美元上升到 5000 萬美元，並且仍然有一些信用。但是繼續吧，傑夫。

Yes, sure. Thank you. Good morning, Kevin. So we have right now a little under 2,500 miners that are deployed here in Argentina, and we'll be looking to approximately 13,000 for the full 50 to 52 megawatts to take advantage of that.

是的，當然。謝謝。早上好，凱文。因此，我們現在在阿根廷這裡部署了不到 2,500 名礦工，我們將尋求大約 13,000 名礦工來充分利用 50 至 52 兆瓦的電力。

The key capital cost for those miners is completely covered, and then some, as Geoff pointed out, with the $22.4 million of credits that we have there. So in other words, we will be capping a large portion but not the entirety of that credit to fulfill and meet our capital requirements for the miners, but fully for the first warehouse.

這些礦工的關鍵資本成本完全被覆蓋，然後是一些，正如傑夫指出的那樣，我們在那裡擁有 2240 萬美元的信貸。因此，換句話說，我們將限制大部分而不是全部信貸來滿足和滿足我們對礦工的資本要求，但完全是對第一個倉庫的資本要求。

Okay. And that gets you to the 6 EH/s target you're offering for the year?

好的。這讓你達到了你今年提供的 6 EH/s 目標？

Correct.

正確的。

Correct.

正確的。

Okay (multiple speakers)

好的（多個揚聲器）

In fact, there's probably more miners in that. So that if we are given other opportunities, we should be able to flex beyond 6 EH/s with that credit as well.

事實上，其中可能有更多的礦工。因此，如果我們有其他機會，我們也應該能夠憑藉該積分超過 6 EH/s。

Well, so that's where I was going. There has been some talk there's an opportunity for expansion in Washington, US. There is a Hydro-Quebec that's offering, I think, 260 to 280 megawatts. And then I think there's been some news out of Paraguay with more Bitcoin miners going there. And I was wondering if you could round out anticipated expansion in those geographies?

嗯，這就是我要去的地方。有人說有機會在美國華盛頓擴張。我認為有一個 Hydro-Quebec 提供 260 到 280 兆瓦的電力。然後我認為巴拉圭傳出了一些消息，更多的比特幣礦工前往那裡。我想知道您是否可以完成這些地區的預期擴張？

Sure. In Quebec, which is our home base, where we have seven operations, the RFP is still there but suspended by changes in the political government. We're still hopeful and we continue to participate in discussions to allow that RFP to roll out in a way that's beneficial for the province of Quebec, as well as beneficial for us.

當然。在我們的大本營魁北克，我們有七處業務，RFP 仍然存在，但由於政治政府的變化而暫停。我們仍然充滿希望，我們將繼續參與討論，以允許 RFP 以對魁北克省和我們都有利的方式推出。

We can't give you any estimate or any guidance on when that will come to play. In fact, there are some factions that would like to see that canceled. We think we bring a considerable amount of value to the province of Quebec, and we're supported by the towns and the mayors and the MPs where we do our operations.

我們無法就何時開始播放提供任何估計或任何指導。事實上，有一些派系希望看到它被取消。我們認為我們為魁北克省帶來了可觀的價值，我們得到了我們開展業務所在的城鎮、市長和國會議員的支持。

And we see the opportunity to set up in towns and cities where there's a lot of surplus hydropower employment that is necessary; skilled labor that is that exists from the forestry and mining industry. So we're excited about Quebec. At the moment, we can't count on it given the moves by the province to get the new rules of the RFP in place. So that's there.

我們看到了在城鎮建立的機會，那裡有大量過剩的水電就業機會；林業和採礦業中存在的熟練勞動力。所以我們對魁北克感到興奮。目前，鑑於該省為落實 RFP 的新規則而採取的行動，我們不能指望它。就是這樣。

Washington is a wonderful area where we had successful operations. And once again, it's hydropower, and we're seeing both greenfield opportunities, brownfield opportunities, and acquisitions in that area. Discussions continue. So that's a bright spot.

華盛頓是我們成功開展業務的絕佳地區。再一次，它是水電，我們在該地區看到了綠地機會、棕地機會和收購。討論仍在繼續。所以這是一個亮點。

Paraguay. Paraguay, we were very excited about. And probably about this time last year I was telling you how excited we were for it. They've got a surplus hydro load there that we'd love to take advantage of. But since then, they brought in some rules that resulted in the tariff in that area, increasing probably too much. And it seems to have poured cold water on the interest of us and a variety of other miners go into Paraguay.

巴拉圭。巴拉圭，我們很興奮。大概是去年的這個時候，我告訴過你我們對此有多興奮。他們那裡有多餘的水電負荷，我們很樂意利用。但從那以後，他們引入了一些規則，導致該地區的關稅可能增加太多。它似乎給我們的利益和其他各種礦工進入巴拉圭的利益潑了一盆冷水。

We think this is a mistake. In fact, I am headed to Argentina and Paraguay a later on tonight to have some of those discussions with those people to try to bring some more reasonable balance to what they want in exchange for power cost per kilowatt hour, the [delestage] or the curtailment factors, and things like that.

我們認為這是一個錯誤。事實上，今晚晚些時候我將前往阿根廷和巴拉圭，與這些人進行一些討論，試圖為他們想要的東西帶來更合理的平衡，以換取每千瓦時的電力成本，[delestage] 或削減因素，諸如此類。

But Paraguay in the meantime, it's an election year. And as such, things are somewhat shelved until the election goes through. So we don't expect really much change in Paraguay until later this year. But yes, there is one power -- there is one Bitcoin company that's announced they are going into Paraguay with 100 megawatt opportunity, and we wish them good luck.

但與此同時，巴拉圭正值選舉年。因此，在選舉結束之前，事情會有所擱置。因此，我們預計巴拉圭要到今年晚些時候才會真正發生太大變化。但是，是的，有一種力量——有一家比特幣公司宣布他們將帶著 100 兆瓦的機會進入巴拉圭，我們祝他們好運。

This time last year, we were working on multiple hundred megawatt opportunities in Paraguay, and they've been put on the shelf based on some of the current announcements. Hopefully that cover some of the geographies you asked about, Kevin.

去年這個時候，我們正在巴拉圭研究數百兆瓦的機會，但根據當前的一些公告，它們已被擱置。凱文，希望這涵蓋了你詢問的一些地區。

Absolutely. All of them. Thanks, Geoff. One last question for me before I turn the floor over. Can we talk about mining efficiencies? You noted on the slide deck, you're now at about 39 joules per terahash, I think as of February.

絕對地。他們全部。謝謝，傑夫。在我結束髮言之前要問我最後一個問題。我們可以談談採礦效率嗎？你在幻燈片上提到，我認為截至 2 月份，你現在每 terahash 大約 39 焦耳。

I'm wondering, if you look across the fleet and the leftover credit that Mr. Lucas has spoken to, is there thinking internally about how you might consider optimizing machine performance (multiple speakers) that to push that efficiency lower or higher, depending on your perspective?

我想知道，如果您查看 Lucas 先生所說的機隊和剩餘信用，是否在內部考慮如何考慮優化機器性能（多個揚聲器）以降低或提高效率，具體取決於你的觀點？

Exactly. Kevin, we're doing that every day. We utilize all the latest generation miners. We have overconcentration of the M30 MicroBTs. But we also have the S19s. They're all very good miners. And we are able to achieve amongst the best efficiencies in the industry right now based on our software system, and our operations, and our technicians.

確切地。凱文，我們每天都這樣做。我們使用所有最新一代的礦工。我們過度集中了 M30 MicroBT。但我們也有 S19。他們都是非常優秀的礦工。基於我們的軟件系統、我們的運營和我們的技術人員，我們現在能夠在行業中實現最佳效率。

And that comes from making sure that you have all your machines up and running, fully running and fully optimize. And we're very good at that, and that's why we continue to achieve these great efficiencies. Now, sure, there are great -- high performance S19s and M50s that are achieving even better efficiency. But they're two or three times the cost and this has been a challenging environment.

這來自於確保您的所有機器都啟動並運行，完全運行並完全優化。我們非常擅長這一點，這就是我們繼續實現這些高效率的原因。現在，當然，有很棒的高性能 S19 和 M50 正在實現更高的效率。但它們的成本是其兩到三倍，而且這是一個充滿挑戰的環境。

We think that you can't just take a look at the watts per terahash or joules per terahash in isolation. You need to take it combined with how well you operate your fleet and your power costs. Because at the end of the day, what you need is cash flow from operations to provide a return on investment.

我們認為您不能孤立地查看每太哈希的瓦特數或每太哈希的焦耳數。您需要將其與車隊的運營情況和電力成本結合起來。因為歸根結底，您需要的是來自運營的現金流以提供投資回報。

And I think there's a lot of other people out there that are growing for growth's sake, and clearly with our targets of 6 EH/s we're not doing that. We have prudent growth, very disciplined, because we want to provide value to our shareholders.

而且我認為還有很多其他人為了增長而增長，顯然我們沒有達到 6 EH/s 的目標。我們有審慎的增長，非常有紀律，因為我們想為我們的股東提供價值。

And as Jeff Lucas has mentioned, with these hardware credits, we're able to roll at a substantial increase in production without a substantial cash outlay, which means far less dilution to shareholders.

正如傑夫盧卡斯提到的那樣，有了這些硬件信用，我們能夠在沒有大量現金支出的情況下大幅增加產量，這意味著對股東的稀釋要少得多。

We think this is key. We think this is important for our shareholders to know that we can substantially grow without the substantial outlay. And we have been achieving positive cash flow from operations even through some pretty lean times.

我們認為這是關鍵。我們認為這對我們的股東來說很重要，讓他們知道我們可以在沒有大量支出的情況下實現大幅增長。即使在一些非常困難的時期，我們也一直在從運營中獲得正現金流。

So Kevin, when you look at the joules per terahash for these miners, you also have to look at power costs and take them in the conjunction with that and your payback periods and your ROI. So that's what we do with our computational -- at least our calculations on how to do it is a mixture of the performance of the machine, the capital cost of machine, and then the expected output in terms of cash flow. So it is more complicated than just looking at the joules per terahash. But when you get that figured out, you can generate good returns.

所以凱文，當你查看這些礦工的每 terahash 焦耳時，你還必須查看電力成本，並將它們與電力成本、投資回收期和投資回報率結合起來。所以這就是我們用我們的計算所做的——至少我們關於如何做到這一點的計算是機器性能、機器資本成本以及現金流方面的預期輸出的混合體。因此，它比僅查看每 terahash 的焦耳要復雜得多。但是，當您弄清楚這一點時，您可以獲得豐厚的回報。

But let me add a comment to that, if I may. We're also -- as we look at ROI and payback, we're also very aware that we have a halving event coming next year. And so while a lot of our peer companies may be investing in higher performing and more expensive miners out there, I think people have to be very attuned to things that go beyond a one-year payback recognize in the year two or year three would be impacted by the halving event, which of course is a great element of uncertainty.

但是，如果可以的話，讓我對此添加評論。我們也 - 當我們查看投資回報率和回報時，我們也非常清楚明年我們將減半。因此，雖然我們的許多同行公司可能正在投資性能更高、成本更高的礦機，但我認為人們必須非常適應那些在第二年或第三年承認超過一年投資回報的事情。受到減半事件的影響，這當然是一個很大的不確定因素。

Well, thank you, gentlemen. Appreciate you taking the time.

好吧，謝謝你們，先生們。感謝您抽出時間。

Thanks, Kevin.

謝謝，凱文。

Bill Papanastasiou, Stifel.

比爾·帕帕納斯塔修 (Stifel)。

Hi, gentlemen, how are you? Thanks for taking my questions.

嗨，先生們，你們好嗎？感謝您回答我的問題。

Hi, Bill.

嗨，比爾。

Hi, Bill.

嗨，比爾。

And congrats again on the recent efforts to reduce the indebtedness and the renegotiation of those previous contracts. My first question is related to treasury management. In the first couple of months this year, the company has maintained a [HODL] balance of just over 400 Bitcoins. But we continue to see positive price action for the digital asset.

並再次祝賀最近為減少債務和重新談判那些以前的合同所做的努力。我的第一個問題與資金管理有關。今年頭幾個月，該公司一直保持 [HODL] 餘額超過 400 個比特幣。但我們繼續看到數字資產的積極價格走勢。

And based on the macroeconomic outlook, it seems like things are only going to improve from here, fingers crossed. Just wondering whether you can share your outlook on terms of the treasury management strategy as we progress into 2023 with the halving in the back of our mind?

根據宏觀經濟前景，似乎事情只會從這裡開始好轉，祈禱吧。只是想知道隨著我們進入 2023 年，您是否可以分享您對資金管理戰略的看法，同時我們還記得減半？

Sure. So let me start off with that. And then Geoff can maybe fill in as well here. We made the conscious decision last year actually to use our Bitcoin holdings to pay down a lot of our indebtedness into a deleveraged company overall. We recognized and adopted the strategic and detention at that point in time that we feel investors ascribe greater value to our financial performance than they do in our results. So the building up treasury of Bitcoin, which today of course any investor can do on his or her own here.

當然。所以讓我從那個開始。然後 Geoff 也可以在這裡填寫。實際上，我們去年有意識地決定使用我們持有的比特幣來償還我們對一家整體去槓桿化公司的大量債務。我們在那個時間點認識到並採用了戰略和延遲，我們認為投資者對我們的財務業績的重視程度高於他們對我們業績的重視程度。因此，建立比特幣金庫，今天當然任何投資者都可以在這裡自己做。

The important point to keep in mind going forward is that while we're looking at growing the business, we want to do so as accretively [with] as minimal dilution to our shareholders as possible. With that in mind, Bill, what's going to drive our treasury strategy going forward is utilizing the Bitcoin from production to meet, of course, our operating expenses and our debt service requirements, and to the extent it makes sense to contribute to our capital expansion plans as well.

未來要牢記的重要一點是，在我們考慮發展業務的同時，我們希望盡可能地增加對股東的稀釋。比爾，考慮到這一點，推動我們的資金戰略向前發展的是利用生產中的比特幣來滿足我們的運營費用和償債要求，並在一定程度上為我們的資本擴張做出貢獻計劃也是如此。

As we continue to see and if we continue to see an improvement in the hash price -- that is, of course, the amount of revenue that we derive from a terahash here -- we may be in a position here where we'll be generating greater post revenues above and beyond our operating expenses and our debt service requirements.

正如我們繼續看到的那樣，如果我們繼續看到哈希價格的改善——當然，也就是我們從 terahash 中獲得的收入——我們可能會處於這樣的位置在我們的運營費用和我們的償債要求之外產生更多的後期收入。

At that point in time, we may give consideration to begin to build up our treasury reserves. But again, the overarching goal here is to minimize dilution to shareholders. We'd rather use our assured BTC proceeds than we would actually engage in the ATM to fund the growth of our business going forward.

屆時，我們可能會考慮開始建立國庫儲備。但同樣，這裡的首要目標是盡量減少對股東的稀釋。我們寧願使用我們有保證的 BTC 收益，也不願實際參與 ATM 來為我們未來的業務增長提供資金。

Thanks. That's some great color. Just moving gears, shifting gears to Argentina. Can you speak a bit more to the opportunity there, and why the team remain so bullish? My understanding is that there's a significant amount of natural gas and it trades at a discount.

謝謝。那是一種很棒的顏色。只是換檔，換檔到阿根廷。你能多談談那裡的機會嗎，為什麼團隊仍然如此看好？我的理解是有大量的天然氣並且以折扣價交易。

Can you add more color to that? We've recently (technical difficulty) natural gas prices reduce this year, and I'm wondering if you're able to comment whether this reduction in natural gas could have an impact to the power costs that you will be drawing on in the future through Albanesi or the energy provider site?

你能給它添加更多顏色嗎？我們最近（技術困難）今年天然氣價格下降，我想知道你是否可以評論這種天然氣的減少是否會對你未來使用的電力成本產生影響通過 Albanesi 或能源供應商網站？

Absolutely. Yes, so lower natural gas prices will help us as well as any other miners that are describing power from natural gas and electricity. In Rio Cuarto, Argentina, the whole country benefits from the fact that -- I think it's the third -- it's a country with the third largest reserves of natural gas in the world. I think they're second or third in oil reserves as well. So they are energy rich.

絕對地。是的，如此低的天然氣價格將幫助我們以及任何其他描述天然氣和電力的礦工。在阿根廷的 Rio Cuarto，整個國家都受益於這樣一個事實——我認為這是第三個——它是一個擁有世界第三大天然氣儲量的國家。我認為他們在石油儲量方面也排名第二或第三。所以他們能量豐富。

And what's also a benefit to us, not necessarily a benefit to them, is being in the southern hemisphere a long way from the population centers of the world, there is no LNG terminals. It's hard to move that oil and natural gas anywhere else. So there's -- just like what we look for in hydro, surplus hydro. They have surplus energy in the form of natural gas, and we can help monetize that which is good for the country, and that's good for us.

對我們也有好處，不一定對他們有好處，南半球遠離世界人口中心，沒有液化天然氣接收站。很難將石油和天然氣轉移到其他地方。所以 - 就像我們在水電中尋找的一樣，過剩的水電。他們擁有天然氣形式的過剩能源，我們可以幫助將對國家有利的能源貨幣化，這對我們也有好處。

And as we said in the script, we expect when this thing -- when this facility is fully activated, that it's going to be our lowest cost energy of any of our sites. Right now where natural gas prices are, we think it's going to be USD0.3 per kilowatt or less. It's an eight year contract. The first four years 60% of the -- 60% is at $0.2.2 per kilowatt. And the rest is that at market prices, which we do not exceed. Expect to exceed much over $0.3 per kilowatt.

正如我們在腳本中所說的那樣，我們希望當這個東西——當這個設施完全激活時，它將成為我們所有站點中成本最低的能源。目前天然氣價格，我們認為每千瓦 0.3 美元或更低。這是一個八年的合同。前四年 60%——60% 的價格為每千瓦 0.2.2 美元。其餘的是按市場價格計算的，我們不會超過。預計每千瓦超過 0.3 美元。

So we are very hopeful that this will be sub $0.3 power which will bring our total cost across our whole fleet down, and down quite significantly. So this is a strategically important area for us, strategically important for our shareholders.

因此，我們非常希望這將是低於 0.3 美元的功率，這將使我們整個機隊的總成本下降，並且下降得非常顯著。所以這對我們來說是一個具有戰略意義的領域，對我們的股東來說也具有戰略意義。

And we know it's -- they've taken longer to put in place, and has been a bit of a black cloud for our shareholders and our valuation. So we are excited to hopefully pass this hurdle soon and show everybody that this is going to be activated in a very successful project.

而且我們知道這是 - 他們花了更長的時間才能到位，並且對我們的股東和我們的估值來說有點烏雲。因此，我們很高興希望能盡快通過這個障礙，並向大家展示這將在一個非常成功的項目中被激活。

Thanks, Geoff. Lastly, just want to circle back to the equipment credit that Kevin was asking on and just expand on it a bit more on. If I do some back-of-the-envelope math, it appears that if we were to consider $15 per terahash. Pricing (technical difficulty), you'd get to about 6.2 EH/s of the existing 4.7 EH/s and drastically reduce the machine efficiency.

謝謝，傑夫。最後，只想回到 Kevin 要求的設備信貸，並進一步擴展它。如果我做一些粗略的計算，似乎我們要考慮每 terahash 15 美元。定價（技術難度），您將達到現有 4.7 EH/s 的約 6.2 EH/s，並大大降低機器效率。

Are you able to comment on whether there's a particular make that you like in terms of which (inaudible) you'd select to deploy in the Argentina facility? Does the credit pertain only to MicroBT, or can you purchase other types of equipment? And my understanding is that MicroBT has been significantly utilized. Other assets have been significantly utilized at Bitfarms, and you continue to get very high efficiencies. Just any color on there?

您能否就您選擇在阿根廷設施中部署的（聽不清）是否有您喜歡的特定品牌發表評論？積分是否僅適用於 MicroBT，還是您可以購買其他類型的設備？我的理解是 MicroBT 已被大量使用。其他資產已在 Bitfarms 得到顯著利用，您將繼續獲得非常高的效率。那裡有任何顏色嗎？

You're right. A good portion of our fleet is MicroBT M30 series miners. They are a workhorse. They've been tried and true. When they do falter, we have the knowledge at our repair shops to fix them and get them back in action. And they have amazing longevity. They're not a super high performance unit, but they truck along with very good efficiencies.

你說得對。我們車隊中的很大一部分是 MicroBT M30 系列礦機。他們是主力軍。他們已經被嘗試過並且是真實的。當它們確實出現故障時，我們的維修店會提供相關知識來修復它們並讓它們恢復運行。而且它們的壽命驚人。它們不是超高性能裝置，但它們的卡車效率非常高。

And yes, your math in terms of calculating exahash -- years -- some of our calculations as well. So it really represents an opportunity should an acquisition come along that we can utilize that credit elsewhere. But yes, these credits are all for MicroBT units.

是的，你在計算 exahash 方面的數學——年——我們的一些計算也是如此。因此，如果收購出現，我們可以在其他地方利用該信貸，這確實代表了一個機會。但是，是的，這些積分全部用於 MicroBT 單元。

We have the flexibility that we don't have to put them all in Argentina, but that seems to be the low hanging fruit right now. So that's where we will go. But we're open beyond that 6 EH/s to putting them elsewhere as well.

我們有靈活性，我們不必將它們全部放在阿根廷，但這似乎是現在容易實現的目標。這就是我們要去的地方。但我們對超過 6 EH/s 的速度持開放態度，也可以將它們放在其他地方。

But we're -- as we look at expansion opportunities, we'd be happy to use the Bitmain equipment as well. As I said earlier to Kevin, it's just a mix of the circumstances at that particular site and the capital cost that goes with the miners versus their performance. And then when we make the decision.

但我們——當我們尋找擴張機會時，我們也很樂意使用比特大陸的設備。正如我之前對凱文所說，這只是該特定地點的情況以及礦工的資本成本與他們的表現的混合體。然後當我們做出決定時。

Bill, about 85% of our miners are MicroBT. We've had a great track record, as Geoff pointed out, and the repair record of these things is excellent.

Bill，我們大約 85% 的礦工都是 MicroBT。正如 Geoff 指出的那樣，我們的業績記錄非常好，而且這些東西的維修記錄非常好。

Thank you. I appreciate the color, guys. That's all my questions.

謝謝。伙計們，我很欣賞這種顏色。這就是我所有的問題。

Thanks, excellent.

謝謝，太棒了。

Dillon Heslin, ROTH MKM.

狄龍赫斯林，羅斯 MKM。

Hey, thanks for taking my questions. First, I wanted to talk a little bit about Argentina again. Talk a little bit about the next steps is the build-out being on pause. What exactly do you think you need to see to give you confidence that you can continue to pursue that opportunity?

嘿，謝謝你回答我的問題。首先，我想再談談阿根廷。談談接下來的步驟是暫停擴建。您認為您究竟需要看到什麼才能讓您有信心繼續追求這個機會？

We are very advanced, Dillon. The first 50 megawatt site was completed in October. It's ready for miners, all the equipment, all the IT connections, they're all in place. It's just that we had the setback from the government approval changes.

我們非常先進，狄龍。第一個 50 兆瓦的站點已於 10 月完工。它已經為礦工準備好了，所有的設備，所有的 IT 連接，都已經到位。只是我們在政府審批變更方面遇到了挫折。

So as soon as we can get the miners in there and the power turned on, we're golden. And it seems that both of those approvals are imminent. So as soon as miners arrive at site, they can be plugged into them and we'll increase our hash just like that right up to 50 megawatts.

因此，一旦我們能讓礦機進入並打開電源，我們就成功了。而且這兩項批准似乎都迫在眉睫。因此，一旦礦工到達現場，就可以將它們插入其中，我們將像那樣將哈希值增加到 50 兆瓦。

So really after that it's considering -- like as you recall, we have a 210 megawatt contract there. We had initially planned on building all that out. But then when conditions in the market deteriorated. We really focused on two warehouses rather than four warehouses. So we're really looking at 100 megawatts.

所以真的在那之後它正在考慮 - 就像你記得的那樣，我們在那裡有一份 210 兆瓦的合同。我們最初計劃構建所有這些。但隨後市場狀況惡化。我們真正專注於兩個倉庫而不是四個倉庫。所以我們真的在看 100 兆瓦。

So if the -- what's happened in the industry over the last few weeks, and in really last couple of months is very encouraging. If that hash price can continue to improve and the economics look good and the payback periods look good, we will view the timing -- halving in mind. That's probably about April 30 and 24. See if we can build that facility, and have it to contribute to accretive growth for our operations and our shareholders.

因此，如果 - 過去幾週以及過去幾個月在行業中發生的事情非常令人鼓舞。如果該哈希價格可以繼續提高並且經濟看起來不錯並且投資回收期看起來不錯，我們將考慮時機 - 考慮減半。那可能是在 4 月 30 日至 24 日左右。看看我們是否可以建造該設施，並讓它為我們的業務和股東的增長做出貢獻。

Those are some of the factors that we're looking into. But we're not going to jump into it quickly. We're going to evaluate all the variables and make a smart and prudent decision when the time comes. But the gating items is getting the power turned on at the power plant with the government approval and the ability to bring miners into a country. If we can get both of those things achieved in the next number of weeks, then we will have the good fortune of being able to make those decisions.

這些是我們正在研究的一些因素。但我們不會很快投入其中。我們將評估所有變量，並在時機成熟時做出明智和謹慎的決定。但是門控項目是在政府批准的情況下在發電廠打開電源，並能夠將礦工帶入一個國家。如果我們能在接下來的幾週內實現這兩件事，那麼我們將有幸能夠做出這些決定。

All right. Thanks, Geoff. Yeah, I understand with what existing -- I guess what I'm referring to as more so what you haven't built yet, if you get you're talking about online and emissions? And like do you see any more potential hiccups that could exist with the government if you did decide to go through, or you think once you get the first building online and it's sort of a bit more smooth sailing from there?

好的。謝謝，傑夫。是的，我理解現有的東西——我想我指的更多是你還沒有建造的東西，如果你知道你在談論在線和排放？如果您確實決定通過，您是否會看到政府可能存在的更多潛在問題，或者您認為一旦您將第一座建築上線並且從那裡開始航行會更加順利？

It should be smooth sailing. See, the power permit will allow for not just the power of the first facility, but should be the lion's share of the second facility as well. So that should be covered all with the power permit approval. In terms of bringing miners into the country, we think that's imminent.

它應該是一帆風順的。你看，電力許可證不僅允許第一個設施的電力，而且也應該是第二個設施的最大份額。因此，應該涵蓋所有電力許可證審批。在將礦工帶入該國方面，我們認為這迫在眉睫。

The government's made their changes. It's good for the government that our application should be clear. We're able to then layer on additional applications very quickly for additional amounts come into the country.

政府做出了改變。我們的申請應該清楚，這對政府有好處。然後，我們能夠非常快速地對額外的應用程序進行分層，以獲得進入該國的額外金額。

I think over the last two years, we've learned a lot, and we've learned that this is a country that's not quite as nimble as what we're used to in North America. But we have now approximately 40 people on the ground there between technicians and our regional office.

我認為在過去的兩年裡，我們學到了很多東西，我們了解到這個國家並不像我們在北美所習慣的那樣靈活。但我們現在在技術人員和我們的區域辦事處之間有大約 40 人在現場。

And we know the system a lot better. We know the people are better. We were probably a bit naive to start with, but we've overcome those things. We're on the ground. The government is well aware of us and is supportive of us. So I think we paid our dues and now we're going to get the benefit to them.

而且我們更了解這個系統。我們知道人民更好。一開始我們可能有點天真，但我們已經克服了這些問題。我們在地面上。政府很了解我們，也很支持我們。所以我認為我們支付了會費，現在我們要讓他們受益。

Got it. Thanks, Geoff. And then as a follow-up, you talked a bit about potentially looking at strategic acquisitions. Do you think that in markets where you already operate, i.e. countries, or is it something where you're looking at net new countries? Just what are your thoughts in terms of something that might already be built out, or something that you're just buying access to wind and power?

知道了。謝謝，傑夫。然後作為後續行動，您談到了潛在的戰略收購。你認為在你已經經營的市場，即國家，還是你正在尋找淨新國家的地方？對於可能已經建成的東西，或者你只是購買風能和電力的東西，你有什麼想法？

Let me give you a little background on that and some metrics. The beginning of 2022, we decided, because we thought consolidation was coming and acquisitions would be coming, that we should develop a corporate development group. We have three talented individuals within that group. And over the last 14 months, they have reviewed 80 opportunities in 17 countries with over 6,500 megawatts of power. We have issued 15 LOIs.

讓我給你一些背景和一些指標。 2022 年初，我們決定，因為我們認為合併和收購即將到來，所以我們應該建立一個企業發展小組。我們在該小組中擁有三個才華橫溢的人。在過去的 14 個月裡，他們審查了 17 個國家的 80 個機會，電力超過 6,500 兆瓦。我們已經發出了 15 份意向書。

We are very busy and looking at opportunities, but very disciplined at what might work for us. Often there is a mismatch of our value expectations versus their value expectations. But I think given the tightness of the marketplace in the fourth quarter last year, the difficulty rises in so far in this quarter.

我們非常忙碌並尋找機會，但在可能對我們有用的事情上非常自律。通常我們的價值預期與他們的價值預期不匹配。但我認為，鑑於去年第四季度市場的緊張，本季度迄今為止的難度有所上升。

People have realized that this is a very challenging business sector, and that you need industrial scale and experience to be able to do it successfully. And we are seeing better opportunities, more realistic pricing. And we are hoping that we're going to be able to complement our organic expansion with some acquisitions.

人們已經意識到這是一個非常具有挑戰性的業務部門，您需要產業規模和經驗才能成功。我們看到了更好的機會，更現實的定價。我們希望我們能夠通過一些收購來補充我們的有機擴張。

And those -- and just to follow on with your question, yes, they are particularly good if they are already in geographies that we are residing because we have people there. It just makes sense. And there are also areas in which we know the laws and the rules far better. But it doesn't keep us out of looking at other jurisdictions that might be favorable for growth as well.

還有那些 - 只是為了繼續你的問題，是的，如果他們已經在我們居住的地區，他們就特別好，因為我們在那裡有人。這是有道理的。在某些領域，我們對法律和規則的了解要好得多。但這並不妨礙我們關注其他可能也有利於增長的司法管轄區。

Great. Appreciate the comments. That's it for me.

偉大的。感謝評論。對我來說就是這樣。

Okay, good.

好的。

And this concludes our question and answer session. I would now like to turn the conference back over to Geoff Morphy for any closing remarks.

我們的問答環節到此結束。我現在想把會議轉回給 Geoff Morphy 作閉幕詞。

Thank you. I would like to reiterate three points about Bitfarms. First, we mined 5,167 Bitcoin in 2022, placing us high in total production for the year and further validating our capability to scale the business. Second, we've maintained profitable mining operations each quarter as a result of our determination to maintain stable, low energy and operating costs. Three, we've delevered our balance sheet.

謝謝。我想重申關於 Bitfarms 的三點。首先，我們在 2022 年開采了 5,167 個比特幣，使我們當年的總產量很高，並進一步驗證了我們擴展業務的能力。其次，由於我們決心保持穩定、低能源和運營成本，我們每個季度都保持盈利的採礦業務。第三，我們已經去槓桿化了我們的資產負債表。

As of February with $22.4 million in available equipment credits and just $23 million in total indebtedness, we have ample flexibility to grow in 2023. Organically with little capital outlay, we expect to reach 6 EH/s by year end from our existing portfolio, and we expect that one or more acquisitions will bring us even further value to shareholders.

截至 2 月，我們擁有 2240 萬美元的可用設備信貸和僅 2300 萬美元的總負債，我們有足夠的靈活性在 2023 年實現增長。有機地以很少的資本支出，我們預計到年底我們現有的投資組合將達到 6 EH/s，並且我們預計一項或多項收購將為我們的股東帶來更多價值。

Thank you all for attending today's conference call. We look forward to updating you with our monthly production reports as well as other developments in our Q1 conference call in May. Thank you very much.

感謝大家參加今天的電話會議。我們期待在 5 月份的第一季度電話會議中向您更新我們的月度生產報告以及其他進展情況。非常感謝。

The conference has now concluded. Thank you very much for attending today's presentation. You may now disconnect your lines.

會議現已結束。非常感謝您參加今天的演講。您現在可以斷開線路。