Bitfarms Ltd (BITF) 2023 Q3 法說會逐字稿

Good day, everyone, and welcome to the Bitfarms third-quarter financial results conference call. (Operator Instructions) Please note, this event is being recorded.

大家好，歡迎參加 Bitfarms 第三季財務業績電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to David Barnard, LHA Investor Relations. Please go ahead, sir.

我現在想將會議交給 LHA 投資者關係部的 David Barnard。請繼續，先生。

Thank you. Good morning, everyone, and welcome to Bitfarms conference call for the third quarter of 2023. With me on the call today is Geoff Morphy, President and Chief Executive Officer, and Jeff Lucas, Chief Financial Officer.

謝謝。大家早安，歡迎參加Bitfarms 2023 年第三季電話會議。今天與我一起參加電話會議的是總裁兼首席執行官傑夫·莫菲(Geoff Morphy) 和首席財務官傑夫·盧卡斯(Jeff Lucas)。

Before we begin, please note this call is being webcast live with an accompanying presentation. To watch along with the slides, you can log on to our website at www.bitfarms.com under the Investors presentation section. If you prefer to listen to the call on 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 third quarter 2023 financial results.

在我們開始之前，請注意本次電話會議正在進行網路直播並附有簡報。若要觀看投影片，您可以登入我們的網站 www.bitfarms.com 的投資者簡報部分。如果您喜歡在智慧型手機上收聽通話，您也可以從那裡下載簡報。我想提醒大家，今天上午，Bitfarms 發布新聞稿，公佈了 2023 年第三季財務業績。

Turning to slide 2, I'll remind everyone that certain forward-looking statements will be made during the call and future results could differ 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's MD&A for a complete list of these. Also, during the call, reference will be made to supporting slides, and you can find the presentation on our website, www.bitfarms.com, under the Investor Relations section.

轉向投影片 2，我將提醒大家，電話會議期間將做出某些前瞻性陳述，未來的結果可能與這些陳述中暗示的結果有所不同。前瞻性資訊基於某些假設，並存在風險和不確定性，我邀請您諮詢 Bitfarms 的 MD&A 以獲取完整的清單。此外，在電話會議期間，將參考支援幻燈片，您可以在我們的網站 www.bitfarms.com 的投資者關係部分找到簡報。

The company will also refer to certain measures not recognized under IFRS, and they do not have a standardized meaning prescribed by IFRS, and therefore, may not be comparable to similar measures presented by other companies. We invite listeners to refer to today's press release and the company's third quarter 2023 MD&A for definitions of the aforementioned non-IFRS measures and the reconciliations to IFRS measures. Please note that all financial references are denominated in US dollars unless otherwise noted.

該公司還將參考《國際財務報告準則》未認可的某些衡量標準，並且它們不具有《國際財務報告準則》規定的標準化含義，因此可能無法與其他公司提出的類似衡量標準進行比較。我們邀請聽眾參考今天的新聞稿和公司 2023 年第三季 MD&A，以了解上述非 IFRS 措施的定義以及與 IFRS 措施的調節。請注意，除非另有說明，所有財務參考均以美元計價。

During today's call, 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 also requested Investors to send questions in advance, which I will read to management after we open the call to those interested in the live Q&A.

在今天的電話會議上，傑夫·莫菲 (Geoff Morphy) 將回顧我們本季的營運情況。財務長傑夫盧卡斯 (Jeff Lucas) 將隨後進行詳細的財務審查，傑夫莫菲 (Geoff Morphy) 將在問答後發表一些結束語。我們還要求投資者提前發送問題，在我們向那些對現場問答感興趣的人開放電話後，我將向管理層宣讀這些問題。

Turning to slide 3 and then on to slide 4, it's my pleasure to turn the call over to Geoff Morphy.

轉到幻燈片 3，然後轉到幻燈片 4，我很高興將電話轉給 Geoff Morphy。

Thank you for joining us today. I'm excited to review highlights of our third quarter performance and our strategic outlook with you. The timing of capital investments is the most important factor of the four-year Bitcoin mining cycle. As such, we continue to follow a disciplined plan, stressing an attractive ROI hurdle for upgrades and new projects so that we are best positioned for the halving in April of 2024 and beyond. We plan to move aggressively to capitalize on improving market conditions going into the halving and capture market share consolidation opportunities that will likely arise post halving. This, in conjunction with sustained and predictable costs of operation, we believe will drive long-term value.

感謝您今天加入我們。我很高興與您一起回顧我們第三季業績的亮點和我們的策略前景。資本投資的時機是四年比特幣挖礦週期中最重要的因素。因此，我們繼續遵循嚴格的計劃，強調升級和新專案具有有吸引力的投資回報率障礙，以便我們為 2024 年 4 月及以後的減半做好準備。我們計劃積極採取行動，利用減半前市場狀況的改善，並抓住減半後可能出現的市佔率整合機會。我們相信，這與持續且可預測的營運成本將推動長期價值。

I'll elaborate. First, until the last 30 days, we deem miners to be at unacceptably high prices, to avoid overzealous spending, to achieve high growth targets with unacceptable returns, we exercise patience and discipline.

我會詳細說明。首先，直到最近30天，我們認為礦工的價格高得令人無法接受，為了避免過度熱衷的支出，以不可接受的回報實現高成長目標，我們保持耐心和紀律。

Two, throughout 2023, we prudently fortified our balance sheet and made modest opportunistic expansion moves such as at Baie-Comeau and in Paraguay.

第二，整個 2023 年，我們謹慎地強化了資產負債表，並採取了適度的機會主義擴張舉措，例如在拜科莫和巴拉圭。

Three, we remain committed to investing in new facilities and miner upgrades. Now, with the Bitcoin rally and the recent introduction of new high performance miners at lower costs, we are focusing on opportunities to take advantage of more competitive pricing for equipment upgrades.

第三，我們仍然致力於投資新設施和礦機升級。現在，隨著比特幣的上漲以及最近以更低的成本推出新的高性能礦機，我們正在關注利用更具競爭力的價格進行設備升級的機會。

Four, combined with years of international development in securing surplus energy and realizing low direct costs while reducing overhead, we are well positioned to continue our expansion and further reduce corporate operating costs. On slide 5, I'll review some of our accomplishments for Q3 2023 and post third quarter events.

第四，結合多年來在確保剩餘能源和實現低直接成本、同時減少管理費用方面的國際發展，我們有能力繼續擴張並進一步降低企業營運成本。在投影片 5 上，我將回顧我們在 2023 年第三季和第三季後活動中取得的一些成就。

In September, we fully energized our first warehouse in Río Cuarto, increasing exahash per second to 6.1 at quarter close, up 15% from June 30, 2023, and up 45% from September 30, 2022. In October, in Baie-Comeau, we completed the first phase of expansion, increasing from five megawatts to 11 megawatts, bringing our corporate hash rate to 6.3 exahash per second.

9 月，我們全面啟動了位於Ró Cuarto 的第一個倉庫，季度結束時每秒exahash 增加至6.1，較2023 年6 月30 日增長15%，較2022 年9 月30 日增長45%。10 月，在Baie-Comeau，我們完成了第一階段的擴張，從 5 兆瓦增加到 11 兆瓦，使我們的公司哈希率達到每秒 6.3 exahash。

During Q3 2023, we earned 1,172 bitcoin compared to 1,223 earned in Q2 2023, reflecting the increased network difficulty. Q3 2023 revenue remained consistent at $35 million compared to Q2 2023, reflecting network difficulty increases, offset mainly by our hash rate increase. Adjusted EBITDA was $7 million for Q3 2023 and our Bitcoin holdings increased to 703 at September 30, 2023.

2023 年第三季度，我們賺取了 1,172 比特幣，而 2023 年第二季度為 1,223 比特幣，反映出網路難度的增加。與 2023 年第二季相比，2023 年第三季的營收維持在 3,500 萬美元，這反映出網路難度的增加，但主要被我們的算力增加所抵銷。 2023 年第三季調整後 EBITDA 為 700 萬美元，截至 2023 年 9 月 30 日，我們的比特幣持有量增加至 703 枚。

Slide 6 shows a summary of our operating capacity and installed miners. Our diversified portfolio comprises 11 operating farms in four countries as well as two more in development. In October 2023, we reached 240 megawatts in operating capacity, up 32% from a year ago, with long-term and low-cost energy contracts totaling 573 megawatts. Only 42% of contracted capacity has been placed into operation, highlighting our considerable embedded development runway. I will now review our operations and development plans.

投影片 6 顯示了我們的營運能力和已安裝礦機的摘要。我們多元化的投資組合包括位於四個國家的 11 個營運農場以及另外兩個正在開發中的農場。 2023年10月，我們的營運能力達到240兆瓦，年成長32%，長期低成本能源合約總計573兆瓦。僅 42% 的合約產能已投入運營，凸顯了我們相當大的嵌入式開發跑道。我現在將回顧我們的營運和發展計劃。

Turning to slide 7. In Paraguay, we acquired two hydropower purchase agreements, one for 50 megawatts Paso Pe, adjacent to Villarrica farm and another for 100 megawatts at Iguazu. We expect the new Paso Pe 50-megawatt farm construction to be completed in Q1 2024 and development is progressing quickly.

轉向幻燈片 7。在巴拉圭，我們獲得了兩份水力發電採購協議，一份為毗鄰 Villarrica 農場的 Paso Pe 50 兆瓦，另一份為伊瓜甦的 100 兆瓦。我們預計新的 Paso Pe 50 兆瓦發電場建設將於 2024 年第一季完成，且開發進展迅速。

For civil work, we have been preparing the site, improving the access road, and constructing the high voltage substation connection. We anticipate completing most of the substation building and the production buildings by year end 2023.

在土木工程方面，我們一直在準備場地、改善通路、建造高壓變電站連接。我們預計在 2023 年底前完成大部分變電站大樓和生產大樓的建造。

For equipment, we purchased 20 megawatts of MicroBT hydro-cooling miners and related containers, primarily employing 19 million of vendor credits, substantially reducing the capital outlay for this farm. These hydro miners utilize the latest mining technology and feature among the best efficiencies in the industry, which will drive significantly lower costs of operations. The additional 30 megawatts of capacity would be housed in two air-cooled warehouses currently under construction. For nominal added cost, we purchased the high voltage transformer rated at 80 megawatts, creating optionality for more expansion at Paso Pe. I'll add that the timely delivery of this transformer is key in meeting our Q1 2024 operating target and progress reports from the manufacturer indicated is on schedule.

設備方面，我們購買了20兆瓦的比特微水冷礦機及相關貨櫃，主要使用了1,900萬供應商信用，大幅減少了該礦場的資本支出。這些水力採礦機採用最新的採礦技術，具有業界最高的效率，將顯著降低營運成本。額外的 30 兆瓦容量將存放在目前正在建造的兩個風冷倉庫中。對於名義上的額外成本，我們購買了額定功率為 80 兆瓦的高壓變壓器，為 Paso Pe 的更多擴展創造了選擇。我要補充的是，及時交付該變壓器是實現我們 2024 年第一季營運目標的關鍵，並且製造商的進度報告表明已按計劃進行。

At Iguazu, the site selection process is going well and the final decision will be reached that fully aligns with our timeline in 2024.

在伊瓜蘇，選址過程進展順利，最終決定將在 2024 年做出，與我們的時間表完全一致。

Turning to slide 8. In Río Cuarto in Argentina, by modifying the rack layout, we managed to expand capacity from 50 megawatts or 54 megawatts, or 8% beyond original design. With 7,500 new miners installed in Q3 2023, we added 800 petahash per second and brought our hash rate to over 1.6 exahash per second in October. Notably in Argentina, October 1 marked the start of the summer season when natural gas is typically less expensive.

轉向幻燈片 8。在阿根廷的 Río Cuarto，透過修改機架佈局，我們成功地將容量從 50 兆瓦擴大到 54 兆瓦，即超出原始設計的 8%。 2023 年第三季安裝了 7,500 台新礦機，我們每秒鐘增加了 800 petahash，10 月的哈希率達到每秒 1.6 exahash 以上。尤其是在阿根廷，10 月 1 日標誌著夏季的開始，此時天然氣通常較便宜。

During this seven-month period, we expect fully loaded energy costs at Río Cuarto to be reliably below $0.03 per kilowatt hour, compared to between $3 and $3.5 during the winter months. This makes Río Cuarto amongst the lowest cost operating facilities in the industry. As this farm represents about 23% of our operating capacity, it will reduce our direct cost per bitcoin, which is one of our strategic goals.

在這七個月期間，我們預計 Ró Cuarto 的滿載能源成本將可靠地低於每千瓦時 0.03 美元，而冬季則在 3 至 3.5 美元之間。這使得 Río Cuarto 成為業界營運成本最低的設施之一。由於該農場約占我們營運能力的 23%，它將降低我們每個比特幣的直接成本，這是我們的策略目標之一。

In summary, our LatAm investments are poised for growth in the coming investment cycle. Bitfarms benefits from exceptionally low costs in this region, and there are significant barriers to entry to LatAm, uniquely positioning us in this region to capitalize on low-cost expansion opportunities. For example, we have paid our dues in Argentina and others looking to duplicate our development efforts in this low-cost country will face many organizations and logistical challenges.

總之，我們的拉丁美洲投資可望在未來的投資週期中實現成長。 Bitfarms 受益於該地區異常低廉的成本，並且進入拉丁美洲存在重大障礙，這使我們在該地區處於獨特的地位，可以利用低成本擴張機會。例如，我們已經在阿根廷繳納了會費，而其他希望在這個低成本國家複製我們發展努力的人將面臨許多組織和後勤方面的挑戰。

We have a track record and a strong team. We have also achieved qualification as a self-importer of miners and retain an additional 156 megawatts of contracted low-cost power for future development in Río Cuarto. In short, we remain excited about the long-term prospects for further development in the country. And in Paraguay, we have one operating farm and 150 megawatts under development. In Canada, in early July, we closed the purchase of Baie-Comeau and initiated operation at five megawatts.

我們擁有良好的業績記錄和強大的團隊。我們還獲得了礦機自營進口商資格，並保留了額外的 156 兆瓦合約低成本電力，用於 Río Cuarto 的未來發展。簡而言之，我們對該國進一步發展的長期前景仍然感到興奮。在巴拉圭，我們擁有 1 個營運農場和 150 兆瓦的正在開發中的農場。在加拿大，7月初，我們完成了對Baie-Comeau的收購，並啟動了5兆瓦的營運。

In October, we achieved our plan of activating the first 11 megawatts of operating capacity. We plan to complete the construction of the additional 11 megawatts in the second half of 2024, coincident with the delivery of power to the facility.

10月份，我們實現了啟動首批11兆瓦營運能力的計畫。我們計劃在 2024 年下半年完成另外 11 兆瓦的建設，同時向該設施供電。

In Magog, we further optimized the facility as we imported and installed approximately 2,900 high efficiency S-19 Pro Plus miners. We concurrently relocated the older miners to the Baie-Comeau facility. By increasing the density of rack miners at both farms, we netted an increase of 110 petahash per second at Magog and provided a cost-effective capital deployment at Baie-Comeau.

在梅戈格，我們進一步優化了設施，進口並安裝了約 2,900 台高效能 S-19 Pro Plus 礦機。我們同時將老礦工轉移到拜科莫工廠。透過增加兩個礦場的機架礦工密度，我們在 Magog 的每秒吞吐量增加了 110 petahash，並在 Baie-Comeau 提供了經濟高效的資本部署。

In Washington state, we upgraded ventilation and cooling systems, increasing average uptime. While we took two megawatts off line, reducing total operating capacity to 18 megawatts, we are in the process of various facility modifications and improvements. To elaborate, we are adding fiber optics to reduce latency between buildings and constructing a new warehouse. These improvements in operating practices will result in greater efficiencies in early 2024. Please turn to slide 9.

在華盛頓州，我們升級了通風和冷卻系統，增加了平均正常運作時間。雖然我們下線了 2 兆瓦，將總運行容量減少到 18 兆瓦，但我們正在進行各種設施改造和改進。詳細地說，我們正在添加光纖以減少建築物之間的延遲並建造一個新倉庫。這些營運實務的改進將在 2024 年初提高效率。請參閱幻燈片 9。

With that, I will now hand the call over to Jeff Lucas for the financial review.

現在，我將把電話轉交給傑夫盧卡斯進行財務審查。

Thank you, Geoff. I'll begin by highlighting some key elements of our financial strategy and position. We have efficient operations, predicated on our operational excellence and with the majority of our energy from green hydropower, stable and predictable energy rates, that are not subject to the variability associated with fossil fuels. And in the case of Argentina, which derives energy from natural gas, a positive contribution overall with a lower energy costs of our portfolio.

謝謝你，傑夫。我將首先強調我們財務策略和立場的一些關鍵要素。我們擁有高效的運營，這取決於我們的卓越運營，我們的大部分能源來自綠色水力發電，能源價格穩定且可預測，不受化石燃料相關變化的影響。就阿根廷而言，該國從天然氣中獲取能源，總體而言是積極的貢獻，我們的投資組合的能源成本較低。

We have a laser focus on return on investment at the individual project level and rapid payback of capital at the corporate level. We've achieved a 2023 growth plan by the end of October and for 2024, we have a minor upgrade in infrastructure expansion plan that will provide significant growth to our hash rate and our competitive efficiency. And we have maintained throughout this a strong balance sheet that now positions us to utilize our operational expertise to take advantage of these fleet upgrades now in attractive growth opportunities arising from unpredictable economics of the halving.

我們高度關注單一專案層面的投資報酬率和企業層面的快速資本回報。我們已經在 10 月底實現了 2023 年的成長計劃，到 2024 年，我們對基礎設施擴張計劃進行了小幅升級，這將為我們的算力和競爭效率帶來顯著增長。在整個過程中，我們一直保持著強勁的資產負債表，這使我們能夠利用我們的營運專業知識，利用這些機隊升級，享受因不可預測的減半經濟帶來的誘人成長機會。

I'll now review our financial performance for the quarter, production economics, and our balance sheet. Turning to slide 10. In the third quarter of 2023, as Geoff pointed out, we earned 1,172 bitcoin compared to 1,223 bitcoin in the second quarter of '23 and 1,515 in the third quarter of 2022. Our hash rate was 15% higher sequentially and 45% higher year over year. This achievement was offset in part by increases in average network difficulty of 9% over the second quarter '23 and 82% year over year.

我現在將回顧我們本季的財務表現、生產經濟學和資產負債表。轉向幻燈片10。正如Geoff 指出的那樣，在2023 年第三季度，我們賺取了1,172 比特幣，而2023 年第二季度為1,223 比特幣，2022 年第三季度為1,515 比特幣。我們的哈希率比上一季高出15%，較去年同期成長 45%。這項成就被 23 年第二季平均網路難度增加 9% 和年增 82% 部分抵銷。

Our third quarter total revenue was $35 million, comprised of $33 million from our mining activities and $2 million from our electrical subsidiary, Volta. This compares to $35 million overall in the second quarter of '23 and reflects slightly higher average decline price quarter over quarter and 4% to a bitcoin earned during the quarter due to the difficulty.

我們第三季的總收入為 3,500 萬美元，其中 3,300 萬美元來自我們的採礦活動，200 萬美元來自我們的電力子公司 Volta。與 2023 年第二季的 3,500 萬美元相比，這反映了季度平均跌幅略高，並且由於困難而在該季度賺取的比特幣下降了 4%。

Focusing on our production economics, as illustrated on slide 11, in the third quarter of '23, Bitfarms direct cost of production per bitcoin was $16,900, up from $15,700 per bitcoin in the second quarter of '23. This change reflects the increased network difficulty offset in part by approximately 3% no electricity rates quarter over quarter. While our total direct cost was up in Q3 '23, at Río Cuarto, the site with our lowest cost power, it was in fact under $12,000 for the quarter for Bitcoin, and we should benefit more fully going forward as Río Cuarto wasn't fully energized towards 50 plus megawatt capacity until September and has become a larger portion of our overall portfolio.

關注我們的生產經濟學，如幻燈片 11 所示，23 年第三季度，Bitfarms 每比特幣的直接生產成本為 16,900 美元，高於 23 年第二季的每比特幣 15,700 美元。這項變更反映了網路難度的增加，部分被季度環比約 3% 的無電費所抵消。雖然我們的總直接成本在23 年第3 季有所上升，但在Río Cuarto（我們成本能力最低的網站）上，該季度的比特幣價格實際上低於12,000 美元，我們應該更充分地受益，因為Río Cuarto 沒有到 9 月為止，我們將全力實現 50 兆瓦以上的產能，並已成為我們整體投資組合的較大部分。

As on our last call, I had one more caveat to those building financial models. Our direct costs in February 2022 includes a 15% value added tax on Canadian energy costs as a result of recent legislation. We firmly believe that we are exempt from this incremental tax and are pursuing a revenue ruling with the Canadian and Quebec tax authorities to formalize our exempt status. More to come in this matter. But I will say that without this tax, our direct cost for BTC in the third quarter would have been about $15,200, $700 less than our reported direct cost of BTC overall.

與我們上次通話一樣，我對建立財務模型的人還有一個警告。根據最近的立法，我們 2022 年 2 月的直接成本包括對加拿大能源成本徵收 15% 的增值稅。我們堅信，我們可以免除這種增量稅，並正在與加拿大和魁北克稅務機關尋求收入裁決，以正式確定我們的免稅地位。關於這個問題還有更多內容。但我要說的是，如果沒有這筆稅，我們第三季的 BTC 直接成本約為 15,200 美元，比我們報告的 BTC 整體直接成本低 700 美元。

Third quarter gross mining profit was $13 million or 38% of mining revenues compared to $14 million or 42% of mining revenues in the second quarter of '23. As with the reduction in our production economics, the decrease in the gross mining margin reflected the increase in network difficulties. The total cash cost for BTC was $22,700 in the third quarter of '23, up from $21,800 in the second quarter. Higher network difficulty was a primary driver leading to fewer bitcoin during the quarter and higher energy cost per bitcoin.

第三季採礦總利潤為 1,300 萬美元，佔採礦收入的 38%，而 2023 年第二季為 1,400 萬美元，佔採礦收入的 42%。與我們生產經濟效益的下降一樣，採礦毛利率的下降反映了網路困難的增加。 2023 年第三季 BTC 的總現金成本為 22,700 美元，高於第二季的 21,800 美元。較高的網路難度是導致本季比特幣數量減少以及每比特幣能源成本較高的主要驅動因素。

General and administrative expenses, or G&A, decreased compared to the prior quarter, which largely reflects our focus on reducing operating expenses, including savings and insurance costs, attributable to lower placement values for our fleet in risk mitigation measures implemented company-wide. Going forward, we plan to attack on the combined effects of the halving an increasing difficulty by upgrading the mining fleet with some of the recently announced and highly efficient mining models and reducing our G&A cost structure, including lowering professional fees and discretionary spending.

一般和管理費用（G＆A）與上一季相比有所下降，這在很大程度上反映了我們對減少營運費用（包括節省和保險成本）的關注，這是由於在全公司範圍內實施的風險緩解措施中我們的機隊的安置價值較低。展望未來，我們計劃透過使用最近宣布的一些高效採礦模型升級採礦隊並減少我們的一般管理費用結構（包括降低專業費用和可自由支配支出）來應對難度增加一半的綜合影響。

Moving now to slide 12. For the third quarter, our operating loss was $19 million. This includes non-cash depreciation expense of $22 million. This also compares to the second quarter operating loss of $25 million, which includes depreciation expense of $21 million and an impairment charge in the short-term prepaid deposits and property plant and equipment of $10 million. Our net loss for the third quarter was $19 million or $0.07 per basic and fully diluted share compared to a net loss for the second quarter of $25 million or $0.10 per basic and fully diluted share.

現在轉到投影片 12。第三季度，我們的營運虧損為 1900 萬美元。其中包括 2,200 萬美元的非現金折舊費用。相較之下，第二季營運虧損為 2,500 萬美元，其中包括 2,100 萬美元的折舊費用以及 1,000 萬美元的短期預付存款和地產廠房及設備減損費用。我們第三季的淨虧損為 1,900 萬美元，即每股基本和完全稀釋股票 0.07 美元，而第二季的淨虧損為 2,500 萬美元，即每股基本和完全稀釋股票 0.10 美元。

As previously noted, slightly higher average decline prices were offset by increases network difficulty, which impacted the bottom line. Adjusted EBITDA was $7 million in the third quarter of '23 as compared to $8 million in the second quarter of '23. The adjusted EBITDA equates to profitability per bitcoin, about $5,900 in the third quarter versus $6,300 in the second quarter.

如前所述，平均下降價格的略微上升被網路難度的增加所抵消，這影響了利潤。 2023 年第三季調整後 EBITDA 為 700 萬美元，而 2023 年第二季調整後 EBITDA 為 800 萬美元。調整後的 EBITDA 相當於每比特幣的獲利能力，第三季約為 5,900 美元，而第二季為 6,300 美元。

Turning now to slide 13. At September 30, we held cash of $47 million in bitcoin, valued at $19 million for total liquidity of $66 million. This compares to $31 million of cash and $48 million from liquidity at June 30, 2023. During the third quarter of 2023, of the 1,172 bitcoin we earned, we sold 1,018 to generate $28 million of the proceeds to fund our operating and debt service requirements and deposited 154 BTC in the treasury for the September month end value of a little over $4 million.

現在轉向幻燈片 13。截至 9 月 30 日，我們持有價值 4700 萬美元的比特幣現金，價值 1900 萬美元，總流動性為 6600 萬美元。相比之下，截至2023 年6 月30 日，我們擁有3,100 萬美元的現金和4,800 萬美元的流動資金。在2023 年第三季度，我們賺取了1,172 枚比特幣，其中出售了1,018 枚，以產生2800 萬美元的收益來滿足我們的營運和償債需求並將 154 BTC 存入國庫，9 月末價值略高於 400 萬美元。

In October, we deposited another 57 bitcoin, increasing bitcoin in custody on October 31 to 760 bitcoin, representing a total value of approximately $26 million based on the bitcoin price that day of $34,200. In the third quarter of '23, we raised $31 million in net proceeds from our ATM program, which expired on September 12. The money we raised under our ATM are specifically marked for the growth initiatives about which Geoff spoke.

10 月份，我們又存入了 57 個比特幣，使 10 月 31 日託管的比特幣增加到 760 個比特幣，根據當天的比特幣價格 34,200 美元計算，總價值約為 2600 萬美元。 2023 年第三季度，我們從 ATM 計劃中籌集了 3,100 萬美元的淨收益，該計劃於 9 月 12 日到期。我們透過 ATM 籌集的資金專門用於傑夫談到的增長計劃。

We continued to use cash generated from operations to deleverage our balance sheet. Total indebtedness was reduced to $10 million at September 30 and to under $8 million at October 31. As we've noted in previous earnings calls, our debt related to our Bitcoin activities is scheduled to be fully repaid by the end of February 2024, well in advance of the halving.

我們繼續使用經營產生的現金來去槓桿化我們的資產負債表。 9 月30 日，債務總額減少至1000 萬美元，10 月31 日減少至800 萬美元以下。正如我們在先前的財報電話會議中指出的那樣，我們與比特幣活動相關的債務計劃於2024 年2月底完全償還。減半前。

Before I hand the call back to Geoff, I'll take a moment to highlight one of our new initiatives, the Synthetic HODL. At our Analyst Day in September, we introduced our concept of using the Synthetic HODL to achieve a capital efficient portfolio. The primary objective of the Synthetic HODL is to enable us to accumulate BTC and treasury and increase the company's BTC exposure in a manner that is risk managed and capital efficient. With it, we maintain discretion to dynamically adjust our hedge and Synthetic HODL ratios within risk limits to respond to market factors.

在將電話轉回 Geoff 之前，我將花點時間重點介紹我們的新舉措之一：合成 HODL。在 9 月的分析師日上，我們介紹了使用綜合 HODL 來實現資本高效投資組合的概念。合成 HODL 的主要目標是使我們能夠累積 BTC 和資金，並以風險管理和資本效率的方式增加公司的 BTC 曝險。有了它，我們可以在風險限額內動態調整我們的對沖和合成 HODL 比率，以應對市場因素。

In October, we initiated our strategy with the purchase of long dated BTC call options. As of November 6, using the Synthetic HODL, the company has increased its upside to BTC prices by 35 BTC equivalent exposure.

10 月份，我們啟動了購買長期 BTC 買權的策略。截至 11 月 6 日，該公司利用 Synthetic HODL，將 BTC 價格的上漲空間增加了 35 BTC 等值曝險。

Turning to slide 14, I'll now turn the call back over to Geoff.

轉到幻燈片 14，我現在將把電話轉回給 Geoff。

Thank you, Jeff. Before I open the call for questions, I would like to mention some upcoming events, including the Benzinga Future of Crypto Conference in New York on November 14 and the Blockchain Jungle Conference in Costa Rica on November 16.

謝謝你，傑夫。在開始提問之前，我想先提一下一些即將舉行的活動，包括 11 月 14 日在紐約舉行的 Benzinga 加密未來會議和 11 月 16 日在哥斯達黎加舉行的區塊鏈叢林會議。

Referring to slide 16, in summary, we are following a highly disciplined capital allocation strategy with projects to be completed ahead of the halving in April. Fleet upgrades will reduce our costs of operation and the patience we exercised in 2023, we expect will pay off well in 2024. Over the past 12 months, we've increased our hashrate to 45%, achieving our 2023 target of 6.3 exahash in October. The first 50 megawatts of our 150 megawatt expansion in Paraguay is underway and opportunities that meet our criteria for growth and lowering our costs both before and after the halving are abundant.

總而言之，參考投影片 16，我們正在遵循嚴格的資本配置策略，專案將在 4 月減半之前完成。艦隊升級將降低我們的營運成本和我們在2023 年所展現的耐心，我們預計將在2024 年獲得良好回報。在過去12 個月中，我們已將算力提高到45%，在10 月實現了2023 年6.3 exahash 的目標。我們在巴拉圭的 150 兆瓦擴建項目的首批 50 兆瓦項目正在進行中，在減半之前和之後滿足我們成長標準和降低成本的機會很多。

We expect to achieve 7 exahash in Q1 2024 with the energization of hydro miners currently on order for Paso Pe, with additional capacity there coming from the 30 megawatt air-cooled warehouses. With newly signed PPAs, we have significant and low-cost expansion projects to develop when conditions warrant following the halving. This is an exciting time in the industry cycle and we are well positioned to leverage our core competencies and advance Bitfarms' global operations in a new phase of diversified and accretive growth, while working strategically and steadfastly to reduce our production costs.

我們預計，透過目前為 Paso Pe 訂購的水力礦工的通電，以及來自 30 兆瓦風冷倉庫的額外產能，到 2024 年第一季將實現 7 exahash。透過新簽署的購電協議，我們可以在減半後條件允許時開發重大且低成本的擴張項目。這是產業週期中令人興奮的時刻，我們處於有利地位，可以利用我們的核心競爭力，推動Bitfarms 的全球業務進入多元化和增值增長的新階段，同時策略性地、堅定地努力降低我們的生產成本。

Operator, we can now open the call for questions. Over to you, David. Please go ahead.

接線員，我們現在可以開始提問。交給你了，大衛。請繼續。

Okay. Thanks, Geoff. Just before we go to the analyst Q&A, there's two questions that we got from online in advance of the call. I'll just read out the first one to you. You seem to be more positive in your outlook today than at your Analyst Day back in mid-September. Could you elaborate on why?

好的。謝謝，傑夫。就在我們進行分析師問答之前，我們在電話會議之前從網路上收到了兩個問題。我先把第一句話唸給你聽。您今天的前景似乎比 9 月中旬的分析師日更加積極。能詳細說明一下原因嗎？

I'd be happy to take that one. Well, the climate is different now. It's much more positive. Let me elaborate. Bitcoin, which was trading sideways for the longest time, $26,000, $27,000, $28,000, is now $34,000, $35,000. That's 26% to 30% higher than it was. The hash price that we saw not very long ago was $0.06 and a little bit under $0.06 per T. Now it's over $0.07. That helps the margins and certainly helps our optimism. We are reading and seeing record inflows of cash going into the exchanges with new excitement coming around the Bitcoin, around Bitcoin and Bitcoin purchases. And I think that's fueling some of the price increases.

我很樂意接受那個。嗯，現在氣候不同了。這要積極得多。讓我詳細說明一下。比特幣橫盤交易時間最長的是 26,000 美元、27,000 美元、28,000 美元，現在是 34,000 美元、35,000 美元。比原來高出 26% 到 30%。不久前我們看到的哈希價格是 0.06 美元，略低於每 T 0.06 美元。現在它超過 0.07 美元。這有助於提高利潤率，也有助於我們保持樂觀。我們正在閱讀並看到創紀錄的現金流入交易所，圍繞著比特幣、比特幣和比特幣購買出現了新的興奮。我認為這在一定程度上推動了價格上漲。

Part of that is also the -- all the news about the ETFs coming. It sure sounds like there's going to be approvals coming in December and probably have them going live early in the new year and that's going to be a phenomenal opportunity for the whole industry in terms of credibility and adoption and more investment.

其中一部分也是關於 ETF 的所有消息即將到來。聽起來確實會在 12 月獲得批准，並可能在新年年初投入使用，這對於整個行業的可信度、採用率和更多投資來說將是一個巨大的機會。

And then just in the last two weeks, we have multiple manufacturers announcing new miners that will be released in the first quarter of next year at less cost and some 20 joules per terahash performance, that adds up to a lot of optimism in our eyes. And as we've said in the past, we want to be opportunistic and it sure looks like this is a good time to be opportunistic.

就在過去兩週，我們有多家製造商宣布將於明年第一季推出新礦機，其成本更低，每太拉哈希性能約為 20 焦耳，這讓我們更加樂觀。正如我們過去所說，我們希望投機取巧，而且現在看起來確實是投機取巧的好時機。

Great. Thanks, Geoff. And I'll just give you the other one from the online community. You seem to be accelerating the pace of growth in LatAm. What is motivating this move over further growth in Canada?

偉大的。謝謝，傑夫。我將向您提供來自線上社群的另一篇文章。你們似乎正在加快拉丁美洲的成長步伐。是什麼推動了加拿大進一步成長的這項舉措？

Jeff Lucas, do you want to start with that one?

傑夫盧卡斯，你想從那個開始嗎？

Sure. I'm glad to do so here. So the biggest driver for us, naturally, is the lowest energy cost. And currently Canada's costs are a little north of $0.04, albeit, when that VAT tax is removed, it'll be probably a little below $0.04. But for us right now, the most opportunistic region of the world and where we have a very strong foothold is in Latin America and particularly developments in Paraguay. So really, the driving force behind that is the fact that we have electricity right now in Paraguay that's a little north of $0.038 or so. Further opportunities, we believe, for additional cost reductions. And to us, it's the most promising region and the most economically compelling region at this point in time.

當然。我很高興在這裡這樣做。因此，對我們來說最大的推動因素自然是最低的能源成本。目前加拿大的成本略高於 0.04 美元，儘管取消增值稅後，它可能會略低於 0.04 美元。但目前對我們來說，世界上最機會主義的地區以及我們擁有非常牢固的立足點的地區是拉丁美洲，特別是巴拉圭的發展。事實上，這背後的驅動力是巴拉圭目前的電力價格略高於 0.038 美元左右。我們相信，還有進一步降低成本的機會。對我們來說，它是目前最有前途的地區和最具經濟吸引力的地區。

Okay. Operator, I think we can go to the Q&A.

好的。接線員，我想我們可以進入問答環節了。

(Operator Instructions) Bill Papanastasiou, Stifel.

（操作員說明）Bill Papanastasiou，Stifel。

Hi, gentlemen. Good morning and thank you for taking my questions.

嗨，先生們。早上好，感謝您回答我的問題。

Hi, Bill.

嗨，比爾。

Yeah. I really appreciate the commentary at the beginning on the importance of timing your capital investment. And clearly, Bitfarms has a very strong balance sheet with a ton of liquidity and debt that's going to be paid off in the New Year prior to the halving. And you also have this situation of attractive pricing which you alluded to. I'm curious to hear whether you could share more details in terms of what hardware models look most attractive to your team today? I know your team has been very diligent with calculating payback periods and so, just hoping to get an update to that end.

是的。我真的很欣賞一開始關於資本投資時機重要性的評論。顯然，Bitfarms 擁有非常強大的資產負債表，擁有大量流動性和債務，這些債務將在減半之前的新年期間償還。而且您也遇到了您提到的具有吸引力的定價情況。我很想知道您是否可以分享更多有關當今對您的團隊最有吸引力的硬體型號的詳細資訊？我知道你們的團隊一直在非常努力地計算投資回收期，因此，只是希望得到這方面的更新。

Sure. Well, I think the industry has all been very much keen on these new miners being announced. In particular, the Bitmain S21s and T21s are very attractive. The pricing is very good and sub 20 watts is really a changing the landscape, the pricing and performance is better than the last generation of miners and which we thought were just too expensive. And while other people were just growing and buying these models, we just said it's hard to get the paybacks, particularly at $0.06 per -- entitled to hash price.

當然。嗯，我認為整個產業都非常熱衷於這些新礦機的發布。尤其是比特大陸S21s和T21s非常有吸引力。定價非常好，低於 20 瓦確實改變了格局，定價和性能比上一代礦機更好，我們認為上一代礦機太貴了。當其他人只是在種植和購買這些模型時，我們只是說很難獲得回報，尤其是每個 0.06 美元的雜湊。

And those paybacks were long and it was not a good use of capital. So we had to help pull back. But we think now the environment is much better. And we are looking at this new generation of miners, which will be available starting early next year and to put in some of our facilities and also upgrade the fleet, as people have commented in the past, we have quite a number of M30s and M31s. So some of the replacements there, if we can do it, would be quite remarkable in terms of our performance.

而且這些投資回報期很長，而且這並不是一個很好的資本利用方式。所以我們必須幫忙撤退。但我們認為現在環境好多了。我們正在考慮新一代礦機，將於明年初開始投入使用，並安裝我們的一些設施併升級機隊，正如人們過去評論的那樣，我們有相當多的 M30 和 M31 。因此，如果我們能做到的話，那裡的一些替代品在我們的表現方面將是相當出色的。

Great. Thank you for that color. And then for my final question. You've been able to optimize and kind of maximize every square inch at the first warehouse in Argentina. And it's a no brainer, right. Very attractive, low-cost power. I'm just wondering whether the appetite or the outlook for further expansion in Argentina has changed at all. I understand your team is heads down on the Paraguay extension, but just hoping to get some more outlook to that end.

偉大的。謝謝你的那個顏色。然後是我的最後一個問題。您已經能夠優化並最大化阿根廷第一個倉庫的每一寸土地。這是理所當然的，對吧。非常有吸引力的低成本電源。我只是想知道阿根廷進一步擴張的興趣或前景是否發生了變化。我知道你們的團隊正在全力爭取巴拉圭的延期，但只是希望能對此有更多的展望。

Bill, it's great to have flexibility and it's great to have good people in all of our local markets. It really opens up opportunities for us. I guess, we've said, we paid our dues in Argentina. We have a superb team in Buenos Aires, managing the region. We have a superb team in Río Cuarto that's now well trained. And we were able to push - put another row of miners in there, take full advantage of the primary transformer there, and move that up by 6% to 8% and all with new miners. So we're 1.6 exahash per second there now. Quite remarkable.

比爾，擁有彈性真是太好了，而且我們所有本地市場都有優秀的人才。它確實為我們提供了機會。我想，我們已經說過，我們在阿根廷已經繳了會費。我們在布宜諾斯艾利斯擁有一支出色的團隊來管理該地區。我們在裡奧誇爾托擁有一支出色的團隊，現在他們訓練有素。我們能夠推動 - 在其中放置另一排礦工，充分利用那裡的主變壓器，並將其提高 6％ 至 8％，並且全部使用新礦工。所以我們現在每秒 1.6 exahash。相當了不起。

And it's an area which we've learned, sometimes by mistakes and sometimes by good fortune. But we keep trying hard and then figuring out sort of how to adjust things along the way. So until we got ourselves up and really primarily using all the output from that transformer at sort of 50 megawatts, the facility wasn't optimized. And we were always saying when we optimize facility, we could bring the cost down. So in the summertime, we were seeing sort of $0.036 per kilowatt hour after the translation. September, it dropped below $0.03. And now we're in the summer months, we're going to have seven months, probably price is closer to $0.025 than $0.03. But once again, it's let's see what actually materializes. And we also have the same situation. Let's see what materializes from the election coming on November 19.

這是我們學到的一個領域，有時是透過錯誤，有時是靠運氣。但我們一直在努力嘗試，然後找出如何調整的方法。因此，在我們站起來並真正主要使用 50 兆瓦變壓器的所有輸出之前，該設施並未最佳化。我們總是說，當我們優化設施時，我們可以降低成本。因此，在夏季，換算後我們看到每千瓦時 0.036 美元。 9 月份，跌破 0.03 美元。現在正處於夏季，我們將有七個月的時間，價格可能更接近 0.025 美元，而不是 0.03 美元。但再一次，讓我們看看實際發生了什麼。而我們也有同樣的情況。讓我們看看 11 月 19 日的選舉會產生什麼結果。

It's an area that we're excited for because the costs are low, but we want to walk before we run and make sure that we don't make any expensive mistakes. Once we get a little more confidence that this really could open up this opportunity at some point in '24 when the economics are right and '25 sort of and beyond for sure. But we have the land, we have the contracts, it really represents a very low-cost opportunity. We're 23% of the overall book right now. And that's bringing down our cost of production. And that's a real strategic goal for us, is to bring those costs down.

這是一個讓我們感到興奮的領域，因為成本很低，但我們希望在跑步之前先走，並確保我們不會犯任何代價高昂的錯誤。一旦我們更有信心，這確實可以在 24 年經濟狀況良好的某個時候打開這個機會，並且肯定會在 25 年甚至更遠的時候出現。但我們有土地，有合同，這確實代表了一個非常低成本的機會。我們目前佔總書數的 23%。這降低了我們的生產成本。對我們來說，真正的策略目標是降低這些成本。

I appreciate that color. Thank you, gentlemen. I look forward to seeing that hard earned cash being used towards some fee upgrades. Thank you.

我很欣賞那種顏色。謝謝你們，先生們。我期待看到辛苦賺來的現金被用於一些費用升級。謝謝。

Josh Siegler, Cantor Fitzgerald.

喬許·西格勒，坎托·菲茨傑拉德。

Yeah. Hi, guys. Thanks for taking my call today. Congrats on the lower G&A. Great to see that profitability improvement. For my first question, I wanted to touch on financing. So obviously, you've been paying down the debt and improving the balance sheet over time. Would you ever consider taking on additional debt burden if it made the right sense from a financing perspective? And can you give an update on whether those debt markets have opened up to you?

是的。嗨，大家好。感謝您今天接聽我的電話。恭喜 G&A 降低。很高興看到獲利能力的改善。對於第一個問題，我想談談融資問題。顯然，隨著時間的推移，您一直在償還債務並改善資產負債表。如果從融資角度來看合理的話，您是否會考慮承擔額外的債務負擔？您能否介紹一下這些債務市場是否已向您開放的最新情況？

Sure. Josh, let me speak to that here, I can. We have seen some pretty interesting instruments out there, primarily from hedge funds, convertible debt outstanding here. And look, in a general picture, there is room for debt on the balance sheet to a degree, in the sense that it lowers your overall cost of capital, particularly on a tax adjusted basis. We estimate both for our own calculations that the cost of equity for the sector and for us is between 30% and 35%. So if you can indeed get debt with an all-in cost of maybe 15% to 18% here, and then that's tax adjusted afterwards, that doesn't make it attractive.

當然。喬什，讓我在這裡談談，我可以。我們看到了一些非常有趣的工具，主要來自對沖基金，這裡未償還的可轉換債務。總體而言，資產負債表上存在一定程度的債務空間，因為它降低了整體資本成本，特別是在稅務調整後的基礎上。根據我們自己的計算，我們估計該行業和我們的股權成本在 30% 到 35% 之間。因此，如果你確實可以獲得總成本可能為 15% 到 18% 的債務，然後再進行稅收調整，那麼它就沒有吸引力。

Of course, given the variability and the volatility of the industry in which we operate and the fact that the biggest drivers, i.e. Bitcoin pricing and network difficulty, are largely beyond our control, we do that very, very judiciously. At this point in time, Josh, we don't have any immediate plans to incur debt on the balance sheet. But again, if conditions change and for the right opportunity, we would consider that on a limited basis.

當然，考慮到我們所在行業的可變性和波動性，以及最大的驅動因素，即比特幣定價和網路難度，很大程度上超出了我們的控制範圍，我們的做法非常非常明智。喬希，目前我們沒有任何立即計劃在資產負債表上產生債務。但同樣，如果情況發生變化並且有合適的機會，我們會在有限的基礎上考慮這一點。

Hey, Josh. And I'll remind people that coming into the halving, we expect network correction and things like that. We've said before, we do not want any debt obligations at that point. We don't know how severe this can get, because it depends on pricing, which is out of our control. So we want to be as lean as possible, so we can take maximum advantage of opportunities post halving.

嘿，喬許。我會提醒人們，進入減半，我們預期會出現網路修正之類的事情。我們之前說過，我們當時不希望承擔任何債務義務。我們不知道這種情況會變得多麼嚴重，因為這取決於定價，而這是我們無法控制的。所以我們希望盡可能精簡，這樣我們就可以最大限度地利用減半後的機會。

Great. No, I appreciate the color there, Geoff, and it actually leads into my next question, which is around the halving. So obviously you guys are uniquely positioned to replace some of your older legacy machines with some more highly efficient machines, which could both improve your efficiency overall and increase your hash. I was curious how you're thinking about the timing of that come having. Would you look to be aggressive as we enter to halving? Or is it really a wait and see approach to see what's happening across the network?

偉大的。不，我很欣賞那裡的顏色，傑夫，它實際上引出了我的下一個問題，即關於減半的問題。顯然，你們擁有獨特的優勢，可以用一些更有效率的機器替換一些舊的遺留機器，這既可以提高你們的整體效率，也可以增加你們的哈希值。我很好奇你是如何考慮它發生的時間的。當我們進入減半時，您會表現出激進的態度嗎？或者這實際上是一種觀望方法，以了解網路上發生的情況？

Well, as we've said many times, we want to have the balance sheet and margins and management team to be able to be opportunistic. And opportunistic means that, really, this window has really only opened in the last two, maybe 2.5 weeks with the announcement of these miners, we're looking at things very closely. The halving is very much in focus for April 15, 16, 21, whenever the mathematicians have best estimated right now, but we have opportunities to plug them in before the halving. It would be nice to be able to do that. But there's no commitments and no decisions made just yet, but we're working on a variety of scenarios.

嗯，正如我們多次說過的，我們希望擁有能夠投機取巧的資產負債表、利潤率和管理團隊。機會主義意味著，實際上，這個窗口實際上是在過去兩週（也許是 2.5 週）內才打開的，隨著這些礦工的宣布，我們正在非常密切地關注事情。 4 月 15 日、16 日、21 日，每當數學家們做出最佳估計時，減半都是人們關注的焦點，但我們有機會在減半之前將其插入。如果能夠做到這一點那就太好了。但目前還沒有做出任何承諾，也沒有做出任何決定，但我們正在研究各種情況。

Got it. Thank you, Geoff.

知道了。謝謝你，傑夫。

Chase White, Compass Point Research.

蔡斯懷特，羅盤點研究公司。

Thanks for taking my questions. So a couple if I may. First is a housekeeping question. What were the -- and apologies if I missed this, but what were the power costs in Argentina during the quarter? The average cost.

感謝您回答我的問題。如果可以的話，一對夫婦。首先是一個家政問題。如果我錯過了這一點，我們深表歉意，但是阿根廷本季的電力成本是多少？平均成本。

So generally the costs for the quarter were just a little, overall, we're a little over $0.03. But what I want to underscore here is that one, that did include the winter months to degree that came into play here a little bit. And then secondly, during this quarter, we did revert over entirely to (inaudible) private producer where there was earlier in the quarter, some contribution from the grid itself as we're making that transition, which is higher cost.

所以總的來說，本季的成本只是一點點，總的來說，我們的成本略高於 0.03 美元。但我想在這裡強調的是，確實包括了冬季，這在某種程度上在這裡發揮了作用。其次，在本季度，我們確實完全恢復到（聽不清楚）私人生產商，在本季度早些時候，我們正在進行轉型，電網本身做出了一些貢獻，這是更高的成本。

So again, overall, though for Argentina, we were just over $0.03 for the quarter. And by the way, I'm going to add here that in September, some of being foreign exchange influence, our cost was about $0.028 of energy for Argentina.

因此，總的來說，儘管對於阿根廷來說，本季我們的收入略高於 0.03 美元。順便說一句，我要在這裡補充一點，9 月份，由於外匯影響，我們為阿根廷花費的能源成本約為 0.028 美元。

Got it. That's helpful. And how should we think about the CapEx for the remainder of this year and how much should be left over as we head into next year? Obviously, you've got some minor purchases that you need to make and don't necessarily know the exact pricing for that. But in terms of the infrastructure and then how many miners you would contemplate putting in there? Any comments on that? Thanks.

知道了。這很有幫助。我們應該如何考慮今年剩餘時間的資本支出以及進入明年時應該剩下多少？顯然，您需要進行一些小額採購，但不一定知道其確切價格。但就基礎設施而言，您會考慮在那裡投入多少礦工？對此有何評論？謝謝。

Sure. Let me start this off and then, Geoff, you can certainly fill in in terms of some of the minor counts here, if you wish. So, first of all, I'm just going to speak to what we have in terms of our disclosed and communicated CapEx and our growth plans. We have other initiatives about which we spoke to regarding what we're doing with the minor fleet and things of that sort here. But the thoughts to keep in mind at this point here is that the major project we really have here is the development of Paso Pe, which, as Geoff indicated, will be up and running by the end of the first quarter of 2024.

當然。讓我開始吧，然後，傑夫，如果你願意的話，你當然可以在這裡填寫一些次要的內容。因此，首先，我只想談談我們已揭露和溝通的資本支出以及成長計劃。我們還有其他舉措，我們談到了我們正在對小型艦隊和類似的事情所做的事情。但此時要記住的是，我們真正擁有的主要項目是 Paso Pe 的開發，正如 Geoff 指出的那樣，該項目將於 2024 年第一季末啟動並運行。

We also have what's going on, we've identified Baie-Comeau as a $22 million -- 22 megawatt acquisition we announced in April. We've got the first 11 up and running, and we're scheduled to have the second 11 in the second half of 2024. We also have some smaller projects in the works, generally a $1 million or less, in Washington, some improvements there, and even some sort of minor modifications as well that we have going for another $1 million or so.

我們也了解正在發生的事情，我們已確定 Baie-Comeau 是我們在 4 月宣布的一項價值 2,200 萬美元（22 兆瓦）的收購。我們已經啟動並運行了前11 個項目，並計劃在2024 年下半年啟動第二個11 個項目。我們還有一些較小的項目正在進行中，通常是100 萬美元或更少，在華盛頓，有一些改進甚至還有一些小的修改，我們還需要花費 100 萬美元左右。

So overall, what we're looking for, to be very specific here, is about $70 million of CapEx commitment that we've identified between now and the end of 2024. Of that amount, just to be clear here, roughly $50 million to $55 million of that is going to be Paso Pe. We're bringing a play again up and running by the end of March. And we have the Baie-Comeau, the second 11 megawatts, maybe an additional $10 million to $15 million. That'll be in the second half of 2024. And then the additional little thousand (inaudible) so to speak that we have that will be filtered out through the remaining months here.

因此，總體而言，我們正在尋找的，具體而言，是我們從現在到 2024 年底之間確定的約 7000 萬美元的資本支出承諾。在此需要明確的是，其中大約有 5000 萬美元用於其中5500 萬美元將用於Paso Pe。我們將在三月底之前重新啟動並運行該劇。我們還有 Baie-Comeau，第二個 11 兆瓦，可能需要額外 1,000 萬至 1,500 萬美元。那將是在 2024 年下半年。然後可以說，我們擁有的額外的幾千個（聽不清楚）將在剩下的幾個月中被過濾掉。

Yeah, Chase, as Jeff mentioned, the Paso Pe facility, we've got 20 megawatts spoken for with the hydro miners, which is fantastic that we're going into that new technology there. But we haven't announced the 30 megawatts that are from the air-cooled facilities. So, great opportunity to do our own mining, our own hashing at that location with those 30 megawatts. The other upgrades that Jeff mentioned are later in the year, but sooner than that, if we can really put things together, a fleet upgrade, we have over 16,000 M30s, M31s that are primarily in Quebec. Talking about the opportunity for rapid increases in hashrate and rapid improvements in efficiency by replacing some of those M30s and M31s with T21s, S21s that type of series of miner. You're talking 46%, 50% improvement in efficiencies right away. So we're looking at that very keenly.

是的，蔡斯，正如傑夫所提到的，帕索佩設施，我們已經與水力礦工商談了 20 兆瓦的發電量，我們在那裡採用新技術真是太棒了。但我們還沒有宣布來自風冷設施的 30 兆瓦電力。因此，這是我們自己進行挖礦、在該位置用這 30 兆瓦進行自己的哈希處理的絕佳機會。傑夫提到的其他升級將在今年晚些時候進行，但比這更早，如果我們真的能把事情放在一起，進行機隊升級，我們將擁有超過16,000 輛M30、M31，它們主要在魁北克省。談論透過用T21、S21等系列礦機取代部分M30和M31來快速增加算力和快速提高效率的機會。你說的是效率立即提高了 46%、50%。所以我們正在非常敏銳地關注這一點。

Got it. That's helpful. Thanks, guys.

知道了。這很有幫助。多謝你們。

Kevin Dede, H.C. Wainwright.

凱文·德德，H.C.溫賴特。

Hi, gents. Thanks for taking my question.

嗨，先生們。感謝您提出我的問題。

Good morning, Kevin.

早安，凱文。

You gentlemen alluded to a seven exahash target, I think, for the - did you say the end, Geoff, the end of the first quarter next year?

我認為，你們先生們提到了 7 exahash 的目標，傑夫，你是否說過明年第一季末的結束？

Correct.

正確的。

Okay. Could you give us a little more detail on how you see, I think, whatnot - we're at about 6.3 now. Can you just walk through the step function improvement there? And given that some of that is a function of the M50 and M56 order, I'm just kind of trying to figure it out in my little brain on shipment and deployment?

好的。您能為我們提供更多關於您如何看待的細節嗎？我想，諸如此類的事情——我們現在大約是 6.3。能簡單介紹一下那裡的步驟功能改進嗎？考慮到其中一些是 M50 和 M56 訂單的函數，我只是想在運輸和部署方面用我的小腦袋來弄清楚？

Well, we've been asked a lot of new miners, but most of them are now into Argentina and plugged in now. So you're not really going to see -- you're going to see a little bit more coming from Río Cuarto, Argentina, but really, this is all about Paso Pe and the 20 megawatts dedicated to the hydro miners and the hydro containers that we have there. That's really the step function that will get you to seven exahash. The 30 megawatts in the air-cooled facilities there, we're building the air-cooled warehouses, but we have not announced what's going in there yet or how it's going to be configured. So that does not go into the seven exahash. Arguably, if we put our own miners in those air-cooled facilities, then we could be probably up to the eight exahash area and perhaps a little more, but right now that's how we get to the seven.

好吧，我們被問到了很多新礦工，但他們中的大多數現在已經進入阿根廷並已接上電源。所以你不會真的看到——你會看到更多來自阿根廷 Río Cuarto 的電力，但實際上，這都是關於 Paso Pe 和專用於水力採礦機和水力集裝箱的 20 兆瓦電力我們在那裡有。這確實是能讓你達到 7 exahash 的階躍函數。那裡的30兆瓦風冷設施，我們正在建造風冷倉庫，但我們還沒有宣布那裡正在做什麼或如何配置。所以這不屬於七個 exahash。可以說，如果我們將自己的礦工放在這些風冷設施中，那麼我們可能會達到 8 exahash 區域，甚至更多，但現在這就是我們達到 7 exahash 區域的方式。

So what machines do you have ordered, Geoff? Just to seven, right? So if you go to eight, you'd have to place orders?

那麼，傑夫，您訂購了哪些機器？就到七點吧？那如果你去八點，就必須下訂單嗎？

Correct.

正確的。

Okay. Just along that line, have you fully utilized the credits that the manufacturers that have offered you or do you still have more on the books?

好的。沿著這條線，您是否充分利用了製造商為您提供的信用額度，或者您的帳簿上還有更多信用額度嗎？

We sure have. Jeff, do you want to comment on the $19 million?

我們確實有。傑夫，你想對這 1900 萬美元發表評論嗎？

Sure. We did. We actually had around $15 million, $16 million remaining, and we fully utilize that asset for the Paso Pe, for the hydro coolers and the continuous miners and the containers associated with that, that pretty much utilized fully remaining credits that we had, Kevin.

當然。我們做到了。我們實際上還有大約1500 萬美元，剩餘1600 萬美元，我們充分利用了Paso Pe 的資產，用於水力冷卻器和連續採礦機以及與之相關的容器，這幾乎充分利用了我們擁有的剩餘信用，凱文。

Okay. So when we look at the December balance sheet, you'll have zero machine credits?

好的。那麼，當我們查看 12 月份的資產負債表時，您的機器信用額將為零？

Correct.

正確的。

Okay. You mentioned, Jeff, this situation with the Quebec tax authorities, or maybe it's, I guess, the full Canadian picture. I just want to understand what exactly is going on there and where your confidence comes in that (inaudible) that goes away and maybe previous allocations are refunded. How should I think about that?

好的。傑夫，你提到了魁北克稅務機關的這種情況，或者我猜這可能是加拿大的全部情況。我只是想了解到底發生了什麼，以及您的信心在哪裡（聽不清楚）消失了，也許以前的分配會被退還。我該如何思考這個問題？

Sure. So, first of all, this legislation was originally proposed back in February 2022. And at that point in time, we began accruing the expense of that VAT. So, in essence here we have a 15% value added tax on the energy cost. Normally we can actually apply for a refund, or historically, we can apply for a refund and recover that VAT. Effective, actually in February that's when this proposed legislation was put forth, February 2022 indicating that that recovery or that refund would no longer be available to that bitcoin miners here. So that's why we've actually been incurring that additional cost and accruing to that additional cost here since that point in time.

當然。因此，首先，這項立法最初是在 2022 年 2 月提出的。從那時起，我們就開始提列增值稅費用。因此，實質上我們對能源成本徵收 15% 的增值稅。通常我們實際上可以申請退款，或者從歷史上看，我們可以申請退款並收回增值稅。實際上，這項擬議立法是在 2 月提出的，即 2022 年 2 月生效，表明這裡的比特幣礦工將不再可以獲得追償或退款。因此，這就是為什麼我們實際上一直在承擔額外成本，並從那時起就在這裡累積額外成本。

About two months ago or so, the legislation was officially passed. Actually, they removed that opportunity with certain exceptions, including where if you are actually selling - if you are selling your computing power capacity to a third-party pool as we do actually with Foundry, which is located in New York here, you actually can therefore recover those VAT taxes that are inputted here. So what we are actually now doing is that we're getting a specific revenue ruling that makes it completely clear, 100%, that (inaudible) had indeed, had the recovery of that refund here. And as a matter of fact, if we get that back to what was happening rather reporting roughly $0.047 per kilowatt hours, you did in Canada in the third quarter, you'll be down to a little under $0.04, more like around $0.039 and that's going forward.

大約兩個月前，法案正式通過。實際上，他們取消了這個機會，但有一些例外，包括如果你實際上在哪裡出售- 如果你將你的計算能力出售給第三方池，就像我們實際上與位於紐約的Foundry 所做的那樣，你實際上可以因此，收回在此輸入的增值稅。因此，我們現在實際上正在做的是，我們正在獲得一項具體的收入裁決，該裁決完全清楚地表明（100％）（聽不清楚）確實已在此處收回了退款。事實上，如果我們回到正在發生的情況，而不是報告每千瓦時大約0.047 美元，就像加拿大第三季度所做的那樣，你會下降到略低於0.04 美元，更像是0.039 美元左右，那就是向前走。

In addition, speaking to your second question here, Kevin, as a matter of fact, we've actually paid around $16 million of VAT taxes since February, actually a little more about $17 million at this point. And we would get a refund for that amount. Not banking on it yet, not putting into our projections, but it's something we feel we're very entitled to. The legislation implies we should get it and that we're going to be pursuing that very vigorously. Hopefully that addressed your questions.

另外，關於你的第二個問題，凱文，事實上，自 2 月以來，我們實際上已經支付了大約 1600 萬美元的增值稅，目前實際上多了大約 1700 萬美元。我們將獲得該金額的退款。還沒有指望它，沒有納入我們的預測，但我們覺得我們非常有權這樣做。該立法意味著我們應該得到它，並且我們將非常積極地追求這一目標。希望這能解決您的問題。

Right. And just help me understand which authority that is. That's beyond the territory province of Quebec, right, that's for the entire country.

正確的。請幫助我了解那是什麼權威。那超出了魁北克省的領土範圍，對吧，那是整個國家。

It's the Canadian Revenue Authority and also it's at the provincial level, the MRQ as well.

它是加拿大稅務局，也是省級稅務局，也是 MRQ。

Okay, and --

好吧，還有——

Because they're harmonized between most of the provinces and the federal government, but, yes, this is a federal government initiative. It's their lead. It's the interpretation from them that we need to clear this up. And we've been trying to be patient, but they seem to be taking an awfully long time and getting this crystallized for us.

因為它們在大多數省份和聯邦政府之間是協調一致的，但是，是的，這是聯邦政府的倡議。這是他們的領先。我們需要澄清的是他們的解釋。我們一直在努力保持耐心，但他們似乎花了很長時間才為我們具體化。

Can you just maybe offer a little more color on your confidence in the ruling going your way?

您能否就您對裁決順利進行的信心提供更多資訊？

We're highly confident, I don't think I can be anymore. I don't think it's beneficial to be more specific than that. But we have every expectation as we read, the regulations and their attorneys with the regulations, it is very clear to us that we are indeed entitled to have that refund.

我們非常有信心，我想我不能再這樣下去了。我不認為比這更具體有什麼好處。但當我們閱讀法規和法規時，我們抱持各種期望，我們非常清楚，我們確實有權獲得退款。

There are a slew of other bitcoin miners operating in Canada, are they in a similar position, you think, with offering their hash to a US resident pool?

還有許多其他比特幣礦工在加拿大運營，您認為他們是否處於類似的境地，向美國居民礦池提供哈希值？

I'm only going to speak to our situation here.

我只想談談我們這裡的情況。

Fair enough. The Synthetic HODL that you've put in place, right, I'd imagine that's 35 contracts, right, you spoke to 35 bitcoin?

很公平。你設定的綜合 HODL，對吧，我想那是 35 個合約，對吧，你說的是 35 個比特幣？

In essence that's correct. That's right.

本質上這是正確的。這是正確的。

Okay. That's all since the September quarter closed?

好的。這就是九月季度結束以來的全部內容嗎？

That's right.

這是正確的。

Okay. How would we see that show in the balance sheet in December?

好的。我們如何看待 12 月份資產負債表中的這種情況？

Yes. That's a good question. So we do not practice hedge accounting here. There are some complications and wrinkles associated with it at this point in time here. So where you actually see the results of the impact of that is going to be actually below the operating income line and sort of financial income and expense. So we'll be breaking that out in the detail there. And in future reporting, you'll see it broken out in that section and in the footnotes.

是的。這是個好問題。所以我們在這裡不實行對沖會計。此時此刻，存在一些與之相關的併發症和皺紋。因此，您實際看到的影響結果實際上將低於營業收入線以及財務收入和支出。因此，我們將在那裡詳細說明這一點。在未來的報告中，您將在該部分和腳註中看到它的詳細情況。

Okay. Obviously, you gentlemen scrutinize the capital allocation decisions carefully. Can you offer just a little insight on the factors that led you to deploy capital in that vein, given the improvement that Mr. Morphy addressed in the hash price and the purchase or at least the utilization of the equipment credit?

好的。顯然，先生們仔細檢視了資本配置決策。考慮到莫菲先生在哈希值和購買或至少使用設備信用方面提出的改進，您能否對導致您以這種方式部署資本的因素提供一些見解？

Let me, I'll start off here. First of all, we utilize equipment credits because we were going to get it, actually. It was a great price for us in terms of the equivalent value for what we're doing. Secondly, obviously, we do want to tighten our cash as carefully as we can here, given the uncertainties coming up with a halving overall here. But I think what's important to keep in mind, just sort of step back and give you a little more color here.

讓我，我從這裡開始。首先，我們利用設備積分是因為我們實際上會得到它。就我們正在做的事情的同等價值而言，這對我們來說是一個很好的價格。其次，顯然，考慮到整體減半帶來的不確定性，我們確實希望盡可能謹慎地收緊現金。但我認為要記住的重要一點是，退後一步，給你更多的色彩。

As I pointed out at the beginning here, our cost of equity for the industry overall is around 35%. So we do have a pretty high hurdle here in terms of what we're looking for on a return on our projects. And we find, though, however, some of the economics, such as what we're seeing in Paraguay, is very, very compelling at this point in time.

正如我一開始所指出的，我們整個產業的股本成本約為 35%。因此，就我們尋求的專案回報而言，我們確實面臨著相當高的障礙。然而，我們發現，某些經濟狀況，例如我們在巴拉圭看到的情況，在此時此刻非常非常引人注目。

And while sure there's greater uncertainty and greater risk, which in turn warrants a higher hurdle rate for that part of the world here, we find that even so, that the potential returns that we can achieve here in that part of the world make it very compelling for us to sort of continue to make investments of that nature.

雖然確實存在更大的不確定性和更大的風險，這反過來又保證了世界該地區更高的門檻利率，但我們發現，即便如此，我們在世界該地區可以獲得的潛在回報使其非常迫使我們繼續進行這種性質的投資。

Does that address your question Kevin? I want to make sure I'm being thorough here.

這解決了你的問題凱文嗎？我想確保我在這裡做得很徹底。

Yes. It definitely helps, Jeff. Thank you. Maybe you could speak a little bit more specifically to the power prices that you're seeing in the PPAs. As I understand it, they're two separate ones, right? There's one for Villarrica, and there's another one for ANDE.

是的。這絕對有幫助，傑夫。謝謝。也許您可以更具體地談談您在購電協議中看到的電價。據我了解，它們是兩個獨立的，對嗎？有一張是給比亞里卡的，還有一張是給 ANDE 的。

Paso Pe and Iguazu.

帕索佩和伊瓜蘇。

Yeah. So maybe you could speak to that, clearly one of your competitors is working with a partner in that jurisdiction that I know you must be intimately familiar with. So maybe you could just help us, not just myself but all my colleagues here in understanding that power price scheme.

是的。所以也許你可以談談這一點，顯然你的一個競爭對手正在與我知道你一定非常熟悉的那個司法管轄區的合作夥伴合作。因此，也許您可以幫助我們，不僅是我自己，還有我在座的所有同事，了解該電價計劃。

Okay. Well, our first 10 megawatts that we put in January of '22 was in Villarrica. And our contract is with a private franchise owner within Paraguay. The only one like it and it's called CLYFSA, and it's been about $0.036. There's been a few changes to it, but it's pretty steady at $0.036, consistent now. But we can't get any more power or production from that site because ANDE distributes, which is the Paraguay national and distributor of power, CLYFSA only get so much. So our allocation is there.

好的。嗯，我們在 22 年 1 月投入的第一個 10 兆瓦電力是在比亞里卡 (Villarrica)。我們的合約是與巴拉圭境內的一家私人特許經營權所有者簽訂的。唯一類似的產品叫做 CLYFSA，售價約為 0.036 美元。雖然有一些變化，但目前穩定在 0.036 美元，保持一致。但我們無法從該網站獲得更多電力或生產，因為 ANDE 負責分配，這是巴拉圭國家和電力經銷商，CLYFSA 只能獲得這麼多。所以我們的分配就在那裡。

So for future growth, we've gone to ANDE itself. Just like the competitor that you mentioned just moments ago, Kevin. And pretty much all of these contracts are very similar in terms of rate, there's high-voltage rates, and there's medium-voltage rates. We're taking the high-voltage rates that put us in about $0.039 per kilowatt hour, not subject to indexation with inflation and all green power and all consistent and all done in a very harmonious partnership with the government and national distributor. It's working well and I think the other guys will have a similar arrangement. So we're not privy to their contract, but unless they are taking smaller amounts in under the medium voltage tariff and after that would have a higher rate.

因此，為了未來的成長，我們選擇了 ANDE 本身。就像你剛才提到的競爭對手凱文一樣。幾乎所有這些合約在費率方面都非常相似，有高壓費率，也有中壓費率。我們採用的高壓電價約為每千瓦時0.039 美元，不受通貨膨脹指數化和所有綠色電力的影響，並且所有這些都是一致的，並且所有這些都是在與政府和國家經銷商的非常和諧的合作夥伴關係中完成的。效果很好，我想其他人也會有類似的安排。因此，我們不了解他們的合同，但除非他們在中壓電價下接受較小的金額，然後才會有更高的費率。

When you sort of take a step back and you look at ANDE's source, right. I think they have, what, 50% of the 14 megawatts come out of that dam. How much do you think they're willing to allocate to crypto?

當你退後一步看看 ANDE 的來源時，對吧。我認為他們有 14 兆瓦的 50% 來自那個大壩。您認為他們願意為加密貨幣分配多少資金？

Rounding thereabouts and trying not to speak for them. But it sure seems like it's about sort of 550 or so high voltage and about 100 megawatts medium voltage.

繞過那裡，盡量不為他們說話。但看起來確實是大約 550 兆瓦左右的高壓和大約 100 兆瓦的中壓。

Okay.

好的。

I think they want to make sure that they have good, strong, committed power from that. They're making a commitment to the dam up there. But there is some variation, season to season. And I don't think they want to get into that all that much. So, I think they want to make sure that they can sign these contracts, get it into production and see what it looks like before going any further.

我認為他們希望確保自己從中擁有良好、強大、堅定的力量。他們正在對那裡的大壩作出承諾。但每個季節都有一些變化。我認為他們並不想那麼深入地參與其中。因此，我認為他們希望確保能夠簽署這些合同，將其投入生產，並在進一步行動之前看看它是什麼樣子。

Okay. I'm sure you're happy to hear the last question for me. Could you just give us a little more color, Geoff, please, on the Iguazu site selection, on the timeline. And maybe how you're thinking about narrowing it down?

好的。我確信您很高興聽到我的最後一個問題。傑夫，您能給我們更多關於伊瓜蘇選址和時間線的資訊嗎？也許您正在考慮如何縮小範圍？

Sure. Iguazu is 100 megawatts. We know, ANDE likes to do it with 80 megawatt transformers. It's their choice. That's why we put one in Paso Pe and hoping that we might be able to get a little more there at some point. But Iguazu, we are looking for real estate up in that area fairly close to the substation up there. That's the main transmission corridor, so there's a lot of power up there. It's recently been upgraded as well. So it's a nice new substation there.

當然。伊瓜蘇發電量為100兆瓦。我們知道，ANDE 喜歡用 80 兆瓦的變壓器來做到這一點。這是他們的選擇。這就是為什麼我們在帕索佩放了一個，並希望在某個時候我們能夠在那裡多放一點。但是伊瓜蘇，我們正在尋找靠近變電站的地區的房地產。那是主要的傳輸走廊，所以那裡有很多電力。最近它也進行了升級。所以那裡是一個不錯的新變電站。

And we are going through multiple sites right now. In terms of selection, some have been ruled out, some are still in the running, but they're relatively close. And you basically measure, which ones are high and dry, which ones are fairly close, so that you can run less electrical cable, which is a big factor. The electrical cable can cost more than the actual site itself. So we're going through that.

我們現在正在瀏覽多個站點。從選擇來看，有的已經被排除，有的仍在競選中，但都比較接近。你基本上可以測量哪些地方又高又乾燥，哪些地方相當接近，這樣你就可以減少電纜的數量，這是一個重要因素。電纜的成本可能比實際站點本身的成本還要高。所以我們正在經歷這件事。

As we said in the script, it's all fitting in within the timeline for next year. But I think we should be able to hopefully identify a preferred site this year, hopefully secure it, and then we'll start laying out plans for the substation to reduce the voltage there. And we haven't announced any plans in terms of hydro miners or containers or air cooled yet. That's all part of design and development plans for next year.

正如我們在劇本中所說，這一切都符合明年的時間表。但我認為我們今年應該能夠確定一個首選地點，並希望能夠確保其安全，然後我們將開始製定變電站計劃以降低那裡的電壓。我們還沒有宣布任何水力採礦機、貨櫃或風冷方面的計劃。這都是明年設計和開發計劃的一部分。

By the way, Kevin, let me just add a little comment here. You made a statement about the size of the Itaipu dam. It's actually a 12-gigawatt dam. It's been running now for about 40 years or so. Half of the power is allocated to Brazil, half of it goes to Paraguay. Paraguay is actually using less than 10% of it for their own purposes here. And the other 40% of their share, actually, they sort of sell back to Brazil at about $0.01 per kilowatt hour. So clearly it's very compelling and strongly in their government's interest to try to expand the use of it locally, including opportunities of Bitcoin mining, which is why one of our pair companies is following us as they're looking at opportunities in that area.

順便說一句，凱文，讓我在這裡添加一點評論。您對伊泰普大壩的規模發表了聲明。它實際上是一座12吉瓦的大壩。現在它已經運行了大約 40 年左右。一半的電力分配給巴西，一半分配給巴拉圭。巴拉圭實際上將其中不到 10% 的資金用於自己的目的。實際上，他們將另外 40% 的份額以每千瓦時約 0.01 美元的價格賣回巴西。顯然，嘗試擴大其在本地的使用（包括比特幣挖礦的機會）是非常引人注目的，也符合他們政府的利益，這就是為什麼我們的一家配對公司正在關注我們，因為他們正在尋找該領域的機會。

A great comment to add. Thank you very much, Jeff. As always, gentlemen, very appreciate of you taking my questions. Thank you.

一個很好的評論要添加。非常感謝你，傑夫。先生們，一如既往，非常感謝你們回答我的問題。謝謝。

Thank you, Kevin.

謝謝你，凱文。

Thanks, Kevin.

謝謝，凱文。

(technical difficulty)

（技術難度）

No, thank you, operator. Sorry, I didn't hear my name. Hey, good morning, everyone. Thank you very much for all the color. Very informative call. Just a few quick questions. The first is kind of on the hash price assumption post having. What do you think is a reasonable level to assume to clear that hurdle rate you indicated earlier?

不，謝謝你，接線生。抱歉，我沒有聽到我的名字。嘿，大家早安。非常感謝您提供的所有顏色。非常資訊豐富的電話。只是幾個簡單的問題。第一個是關於哈希價格假設的。您認為清除您之前指出的最低門檻率的合理水平是多少？

Well, the $0.06 is something that we've been really sort of maneuvering around in our analysis for some time. If it's better than that, then we can make some investment decisions with some half decent payback periods. We're watching the network hash rate, which continues to set new records in terms of increases. Boy, we've had 45% growth over the last year in terms of our hash price, but difficulties in the network is up sort of almost double that. It's quite phenomenal. But this excitement here, the ETF excitement, I hope we can see Bitcoin prices of sort of 45, maybe 50 going into the halving that'll produce that type of hash prices that we're looking for. We will see.

好吧，一段時間以來，我們在分析中一直在調整 0.06 美元。如果比這更好，那麼我們就可以做出一些投資決策，投資回收期還不錯。我們正在關注網路哈希率，它的成長繼續創下新的記錄。天哪，去年我們的哈希價格增長了 45%，但網路中的困難幾乎是這個數字的兩倍。這是相當驚人的。但這裡的興奮，ETF 的興奮，我希望我們能看到比特幣價格在減半時達到 45 甚至 50 左右，從而產生我們正在尋找的那種哈希價格。我們會看到。

Okay. That's helpful. And then when you think about the power cost distribution across the industry, again, this is an industry question, but I would appreciate your perspective. Where do you think the midpoint is in terms of dollars per megawatt hour? Where would you put the bottom 25%? Where would you put the top 25%? Thank you very much.

好的。這很有幫助。然後，當您考慮整個行業的電力成本分佈時，這又是一個行業問題，但我會欣賞您的觀點。您認為每兆瓦時美元的中點在哪裡？你會把最後的 25% 放在哪裡？你會把前 25% 的人放在哪裡？非常感謝。

Wow. I think probably, and there's people with a lot more better data than I am, but it's probably average being sort of $0.055 per kilowatt hour is probably sort of where the average is. You see a lot of hosting contracts that are fair, bit more than that. Like when we go through the halving, it cleans a lot of inefficiency up. And we do expect a radical adjustment here. And where 15%, 20% of the network hash rate will probably fall off for a few months.

哇。我想可能是這樣，有些人比我擁有更多更好的數據，但平均每千瓦時 0.055 美元可能就是平均值。您會看到很多公平的託管合同，但遠不止於此。就像我們經歷減半一樣，它消除了很多低效率的情況。我們確實預期這裡會發生根本性的調整。其中 15%、20% 的網路哈希率可能會在幾個月內下降。

And it just depends where Bitcoin price is and some of these new miners and adoption, how quickly it is replaced. But it will be replaced. This is why I'll repeat it again through this whole script. And what we're talking about here is, we are really pushing for improving our cost of production. We're bringing down our G&A. And like the biggest factor is electricity costs. So we are expanding in areas where there's low-cost electricity. Argentina and Paraguay is cheaper than where it is in North America. And while there's no demand response that compared your EBITDA and your earnings, just in pure margin on Bitcoin play, you need lower cost electricity.

這僅取決於比特幣的價格，以及一些新的礦工和採用情況，以及它被取代的速度。但它會被取代。這就是為什麼我會在整個腳本中再次重複它。我們在這裡談論的是，我們確實在努力提高生產成本。我們正在降低一般管理費用。最大的因素是電費。因此，我們正在電力成本低廉的地區進行擴張。阿根廷和巴拉圭比北美地區便宜。雖然沒有需求響應來比較您的 EBITDA 和您的收入，但僅就比特幣遊戲的純利潤而言，您需要成本更低的電力。

And that's why we are seeking earnestly anything under $0.04 per kilowatt hour. And that's why we think Paraguay with their dynamics, it's $0.036 and $0.039 now. And with the potential for some improvement there, like being reduction, and then we've got Argentina right now that's less than $0.03. If you're going to be successful going forward, you need to be in low-cost areas, being able to digest for $0.045 going forward, especially subject to inflation. It's not a good recipe for longevity.

這就是為什麼我們認真尋求每千瓦時 0.04 美元以下的價格。這就是為什麼我們認為巴拉圭的動態，現在是 0.036 美元和 0.039 美元。那裡有一些改進的潛力，例如減少，然後我們現在阿根廷的價格不到 0.03 美元。如果你想在未來取得成功，你需要處於低成本領域，能夠消化未來 0.045 美元的成本，尤其是在通貨膨脹的情況下。這不是長壽的良方。

I appreciate the color. Thank you. Then one last one, on the election in Argentina, any potential fallout and what it could mean for you doing business there?

我很欣賞它的顏色。謝謝。最後一個問題是關於阿根廷選舉，有任何潛在的影響嗎？這對您在那裡做生意意味著什麼？

We've decided to go slow there. We've said this many times that we want to see what the election brings, but we've seen with a Forbes article just most recently where it said both remaining candidates are pro-Bitcoin. I think how they go about it will be different. We have one more radical candidate that talks about dollarizing the economy and things like that. It's going to be interesting to play through, but it's one of the reasons why we have not put our capital budget dollars towards Río Cuarto at this time, because we want to make sure that we can continue to get the lower cost electricity and just have confidence in continuing capital investments in the country.

我們決定在那裡慢慢走。我們已經說過很多次了，我們想看看選舉會帶來什麼，但我們最近看到《富比士》的一篇文章，其中說剩下的兩位候選人都是支持比特幣的。我認為他們的處理方式會有所不同。我們有一位更激進的候選人，他談論經濟美元化之類的事情。玩起來會很有趣，但這也是我們目前沒有將資本預算投入 Río Cuarto 的原因之一，因為我們希望確保我們能夠繼續獲得更低成本的電力，並且只擁有對國內持續資本投資的信心。

But even I think in that Forbes article, they talked about the government perhaps getting into Bitcoin mining in a particular area down there, which we've looked at. They think it's a novel idea, but we were looking at it two years ago and it does represent some of the great opportunity in the country of Argentina going forward, provided that we can put the capital and the right people to play in that area.

但即使我認為在那篇《富比士》文章中，他們談到政府可能會在我們已經研究過的特定區域進行比特幣挖礦。他們認為這是一個新穎的想法，但我們兩年前就在考慮它，它確實代表了阿根廷國家未來的一些巨大機遇，只要我們能夠投入資本和合適的人才在該地區發揮作用。

Geoff, seems like lots of folks are copying you. I'll turn it over. Continue the best of luck.

傑夫，看來很多人都在模仿你。我會把它翻過來。繼續祝你好運。

This concludes our question-and-answer session. I would now like to turn the call back over to Geoff Morphy for any closing remarks.

我們的問答環節到此結束。我現在想將電話轉回給傑夫·莫菲 (Geoff Morphy)，讓其發表結束語。

Thank you, operator. We are especially excited about the industry as the halving cycle is coming in about five months. Positive developments include increasing confidence that Bitcoin ETFs will be announced later this year and activated in early 2024, and two, in public sentiment, that Bitcoin is being recognized as a store of value given heightened world uncertainty.

謝謝你，接線生。我們對該行業感到特別興奮，因為減半週期將在大約五個月後到來。積極的事態發展包括人們對比特幣ETF 將在今年稍後宣布並於2024 年初啟動的信心增強，以及二是公眾情緒認為，鑑於世界不確定性加劇，比特幣被認為是一種價值儲存手段。

We believe these factors may boost the sector and increase its credibility along with increases to Bitcoin prices sooner than expected and put the wind at our back as we execute our plan to one, grow low-cost operating capacity to 290 megawatts in Q1 2024; two, maintain top decile performance from mining assets and reduce costs as a result of additional sources of stable, lower cost energy; three, develop more of our 573 megawatts of contracted, yet undeveloped capacity of which only 240 megawatts are currently in operation; four, increased productivity with timely and cost-effective fleet upgrades; and five, remain one of the most highly productive and geographically diverse pure-play bitcoin mining companies in the world and embark upon an accelerated phase of smart expansion as and when conditions present themselves.

我們相信，這些因素可能會提振該行業並提高其可信度，同時比特幣價格的上漲也會比預期更快，並在我們執行我們的計劃時提供支持，即在2024 年第一季將低成本營運能力提高到290 兆瓦；第二，維持採礦資產的最高性能，並透過增加穩定、成本較低的能源來降低成本；第三，開發更多573兆瓦已簽約但未開發的產能，其中目前只有240兆瓦正在營運；第四，透過及時且具成本效益的機隊升級來提高生產力；第五，仍然是世界上生產力最高、地域最多元化的純比特幣挖礦公司之一，並在條件出現時開始智慧擴張的加速階段。

Thank you all for attending today's conference call. We look forward to updating you with our monthly reports as well as other developments and at our Q4 conference call in March. Thank you.

感謝大家參加今天的電話會議。我們期待在 3 月的第四季度電話會議上向您通報我們的月度報告以及其他進展。謝謝。

Thank you, all.

謝謝你們。

The conference has now concluded. Thank you for attending today's presentation. You may all now disconnect.

會議現已結束。感謝您參加今天的演講。你們現在可以斷開連結了。