LM Funding America Inc (LMFA) 2023 Q2 法說會逐字稿

Greetings. Welcome to the LM Funding America, Inc. second quarter 2023 business update conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) Please note that this conference is being recorded.

問候。歡迎參加 LM Funding America, Inc. 2023 年第二季業務更新電話會議。此時，所有參與者都處於只聽模式。正式演講後將舉行問答環節。 （操作員說明）請注意，本次會議正在錄製中。

I will now turn the conference over to your host, Ted Ayvas. You may begin.

現在我將會議交給主持人泰德·艾瓦斯。你可以開始了。

Good morning and thank you for joining LM Funding America's second quarter 2023 conference call. On the call with us today are Bruce Rodgers, Chief Executive Officer, and Richard Russell, Chief Financial Officer of LM Funding.

早安，感謝您參加 LM Funding America 2023 年第二季電話會議。今天與我們通話的有 LM Funding 執行長布魯斯羅傑斯 (Bruce Rodgers) 和財務長理查德拉塞爾 (Richard Russell)。

This morning, the company announced its operating results for the quarter ended June 30, 2023, and our financial conditions as of that date. The press release is posted on the company's website, lmfunding.com. In addition, the company has filed its quarterly report on Form 10-Q with the US Securities and Exchange Commission, which can also be accessed on the company's website as well as the SEC's website at www.sec.gov. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020.

今天上午，該公司公佈了截至 2023 年 6 月 30 日的季度經營業績以及截至該日的財務狀況。新聞稿發佈在該公司網站 lmfunding.com 上。此外，該公司已向美國證券交易委員會提交了 10-Q 表季度報告，該報告也可在該公司網站以及 SEC 網站 www.sec.gov 上取得。如果您在通話後有任何疑問或想了解有關該公司的任何其他信息，請致電 212-671-1020 聯繫 Crescendo Communications。

Before management reviews the company's operating results for the quarter ended June 30, 2023, and its financial condition as of that date, we'd like to remind everyone that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations are forward-looking statements.

在管理階層審查公司截至 2023 年 6 月 30 日的季度營運業績及其截至該日的財務狀況之前，我們想提醒大家，本次電話會議可能包含前瞻性陳述。本次電話會議中除歷史事實陳述外的所有陳述，包括有關我們未來經營業績和財務狀況、戰略和計劃以及我們對未來經營的預期的陳述，均為前瞻性陳述。

These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives, and financial needs.

這些前瞻性陳述主要基於公司當前對其認為可能影響其財務狀況、經營業績、策略、短期和長期業務運營和目標以及財務需求的未來事件和趨勢的預期和預測。 。

These forward-looking statements are subject to various risks, uncertainties, and assumptions as described in the company's Form 10-K filed with the United States Securities and Exchange Commission on March 31, 2023. Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in this conference call may not occur and actual results could differ materially and adversely from these anticipated or implied in the forward-looking statements.

這些前瞻性陳述受到本公司於 2023 年 3 月 31 日向美國證券交易委員會提交的 10-K 表格中所述的各種風險、不確定性和假設的影響。由於這些風險、不確定性和假設，本次電話會議中討論的前瞻性事件和情況可能不會發生，實際結果可能與前瞻性陳述中預期或暗示的情況有重大和不利的差異。

You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the company nor any person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements.

您不應依賴前瞻性陳述作為未來事件的預測。儘管公司認為前瞻性陳述中反映的預期是合理的，但它不能保證未來的結果、活動水準、績效或成就。此外，本公司或任何個人均不對任何這些前瞻性陳述的準確性和完整性承擔責任。該公司不承擔更新任何這些前瞻性陳述的責任。

All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made in this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties.

所有歸屬於該公司的前瞻性陳述均完全受到這些警告性陳述以及本次電話會議中所做的其他陳述的明確限制。您應該在這些風險和不確定性的背景下評估公司所做的所有前瞻性陳述。

In addition, today's discussion will include references to non-GAAP measures. The company believes that such information provides an additional measurement and consistent historical comparison of its performance. A reconciliation of the non-GAAP measures to the most direct comparable GAAP measure is available in today's news release on our website.

此外，今天的討論將包括對非公認會計原則措施的提及。該公司認為，此類資訊提供了對其業績的額外衡量和一致的歷史比較。我們網站上今天發布的新聞稿中提供了非公認會計準則衡量指標與最直接可比較的公認會計準則衡量指標的調節表。

With that, I will now turn the call over to Bruce Rodgers.

現在，我將把電話轉給布魯斯·羅傑斯。

Thanks, Tedd. Good morning and thanks to everyone for joining us today. On behalf of the LM Funding team, I want to thank our shareholders for their continued patience with our share price through much of the second quarter. Our company made significant progress in the second quarter towards our Bitcoin mining and other objectives in furtherance of our strategic plans. We believe our strategic plans for our businesses will lead to considerable value for our shareholders.

謝謝，泰德。早安，感謝大家今天加入我們。我謹代表 LM Funding 團隊感謝我們的股東在第二季的大部分時間對我們股價的持續耐心。我們公司在第二季度在比特幣挖礦和其他目標方面取得了重大進展，以推進我們的策略計劃。我們相信我們的業務策略計劃將為我們的股東帶來可觀的價值。

At June 30, 2023, we had approximately 5,230 mining machines electrified at hosting facilities and actively mining bitcoin. During the quarter ended June 30, 2023, we mined 106.6 bitcoin, a sequential increase of 16% compared to 91.6 bitcoin mined in the first quarter of 2023 at an average market revenue value of $27,900 per bitcoin.

截至 2023 年 6 月 30 日，我們在託管設施上擁有約 5,230 台礦機，它們正在積極開採比特幣。在截至2023 年6 月30 日的季度中，我們開採了106.6 個比特幣，與2023 年第一季開採的91.6 個比特幣相比，環比增長了16%，平均市場收入為每比特幣27,900 美元。

The current bitcoin price has been higher and has fluctuated between $29,000 and $31,000 over the last several months. As of August 14, 2023, we have approximately 5,950 mining machines fully operational and mining, providing approximately 615 petahash of mining capacity.

目前比特幣價格較高，過去幾個月在 29,000 美元至 31,000 美元之間波動。截至 2023 年 8 月 14 日，我們擁有約 5,950 台完全運作和挖礦的礦機，提供約 615 petahash 的挖礦能力。

Looking ahead to the next bitcoin halving event, projected to occur in 2024, our goal is to continue to procure more energy efficient mining machines to boost our mining capacity and lower our average joules per terahash costs.

展望下一次比特幣減半事件（預計將於 2024 年發生），我們的目標是繼續採購更節能的礦機，以提高我們的挖礦能力並降低每 terahash 的平均焦耳成本。

In July, we announced that the company had installed Braiins OS+ software on 360 of its mining machines. We expect this to increase the hash rate on these machines by as much as 25%, which should lead to an increased number of bitcoins that we can mine.

7月份，我們宣布該公司已在其360台礦機上安裝了Braiins OS+軟體。我們預計這將使這些機器上的哈希率提高 25%，這將導致我們可以開採的比特幣數量增加。

In addition to increasing hash rate, there's further advantage to mining bitcoin with machines operating Braiins OS+ software as machines equipped with this software may mine with any pool or mine with Braiins pool without having to pay pool fees to Braiins. We believe the best use of our capital is to increase hash rate production through the purchase of additional miners, enhancements to their hashing capabilities.

除了提高哈希率之外，使用運行Braiins OS+ 軟體的機器挖掘比特幣還有進一步的優勢，因為配備該軟體的機器可以在任何礦池中進行挖礦，也可以使用Braiins 礦池進行挖礦，而無需向Braiins 支付礦池費用。我們相信，我們資本的最佳用途是透過購買額外的礦工來提高算力產量，並增強其算力能力。

We pivoted our focus to bitcoin mining with the purchase, delivery, and energization of our first miners completed at the end of 2022. We mined 53.4 bitcoin in 2022, 91.7 bitcoin in the first quarter of 2023, and 106.6 bitcoin in the second quarter of 2023.

我們將重點轉向比特幣挖礦，並於2022 年底完成了第一批礦機的購買、交付和通電。我們在2022 年開採了53.4 個比特幣，在2023 年第一季開採了91.7 個比特幣，在 2023 年第二季開採了 106.6 個比特幣。2023 年。

Since the beginning of Q1, we have increased our mining capacity from 3,000 mining machines to 5,950 mining machines, generating 615 petahash. We believe our stock price should better reflect the growth in our bitcoin mining business since the beginning of 2023.

自第一季開始，我們的挖礦能力從 3,000 台礦機增加到 5,950 台礦機，產生 615 petahash。我們相信我們的股價應該更能反映自 2023 年初以來我們比特幣挖礦業務的成長。

A significant highlight from the recent quarter was our successful $2.6 million Stalking Horse Bid leading to the acquisition of Symbiont, Inc's assets, including its flagship product, the Assembly financial services block chain enterprise platform.

最近一個季度的一個重要亮點是我們成功以 260 萬美元的「潛行競標」收購了 Symbiont, Inc 的資產，包括其旗艦產品 Assembly 金融服務區塊鏈企業平台。

Assembly was developed for financial institutions to handle the issuance, tracking, and management of various financial transactions such as loans, investment contracts, and securities on a shared blockchain. This acquisition affords us entry into the smart contracts business with an advanced technology offering developed for real customers. We are currently in dialogues with technology partners to license, develop, and sell our Symbiont assets and expect to announce further developments this quarter.

Assembly 是為金融機構開發的，用於在共享區塊鏈上處理各種金融交易的發行、追蹤和管理，例如貸款、投資合約和證券。此次收購使我們能夠透過為真實客戶開發的先進技術產品進入智慧合約業務。我們目前正在與技術合作夥伴進行對話，以授權、開發和銷售我們的 Symbiont 資產，並預計在本季宣布進一步的進展。

With respect to our legacy business, which involves offering funding to nonprofit community associations, the business has remained fairly stable since the conclusion of 2022.

我們的傳統業務涉及向非營利社區協會提供資金，自 2022 年底以來，該業務一直保持相當穩定。

In summary, we find it puzzling that such a substantial discrepancy exists between our stockholders' equity of $39.9 million, equivalent to $2.72 per outstanding share as of June 30, 2023, and the recent trading price of our shares at $0.70 per share. This represents a 75% discount to book value.

總而言之，我們感到困惑的是，我們的股東權益為3,990 萬美元，相當於截至2023 年6 月30 日每股發行股票2.72 美元，與我們股票最近的交易價格為每股0.70 美元之間存在如此巨大的差異。這相當於帳面價值 75% 的折扣。

While we are mindful of the broader weaknesses in the stock market, especially within the microcap market where we suffered disproportionately, we remain optimistic that by diligently executing on our strategic plan, mining more bitcoin, and monetizing the Symbiont assets, we can narrow this valuation gap.

雖然我們注意到股票市場的更廣泛弱點，特別是在我們遭受不成比例的微型資本市場中，但我們仍然樂觀地認為，透過努力執行我們的策略計劃，開採更多比特幣，並將Symbiont 資產貨幣化，我們可以縮小這一估值差距。

On that note, I'd like to turn the call over to Rick Russell, Chief Financial Officer of LM Funding, who will review the financial results for the three-month period ended June 30, 2023. Rick?

關於這一點，我想將電話轉給 LM Funding 財務長 Rick Russell，他將審查截至 2023 年 6 月 30 日的三個月期間的財務業績。Rick？

Thanks, Bruce, and good morning, everyone. Total revenues for the three months ended June 30, 2023, increased by $3 million to $3.2 million from $235,000 for the three months ended June 30, 2022. Furthermore, we have experienced strong sequential quarterly revenue growth of more than 38% compared to the first quarter of 2023. Revenues for the three months ended June 30, 2023, include digital mining revenue of $3 million due to the mining of 106.4 bitcoins in the second quarter of 2023, whereas there was no mining for 2022 comparable quarter.

謝謝布魯斯，大家早安。截至2023 年6 月30 日止三個月的總收入從截至2022 年6 月30 日止三個月的235,000 美元增加了300 萬美元至320 萬美元。此外，與第一季相比，我們經歷了強勁的連續季度收入增長超過38%截至2023 年6 月30 日的三個月的收入包括由於2023 年第二季度開採了106.4 個比特幣而產生的300 萬美元數字採礦收入，而2022 年同期沒有採礦。

Operating expenses totaled $6.4 million for the three months ended June 30th, 2023, compared to $5.6 million for the three months ended June 30, 2022. The $1 million increase is primarily attributable to $2.4 million increase in digital mining costs, a $1.3 million increase in depreciation, partially offset by a $1.9 million decrease in stock compensation and $700,000 decrease in professional fees as compared to the second quarter of 2022.

截至2023 年6 月30 日止三個月的營運費用總計640 萬美元，而截至2022 年6 月30 日止三個月的營運費用為560 萬美元。增加100 萬美元主要歸因於數位採礦成本增加240 萬美元，數位採礦成本增加130 萬美元。與 2022 年第二季相比，股票薪酬減少 190 萬美元，專業費用減少 70 萬美元，部分抵消了折舊的影響。

For the three months ended June 30, 2023, the net loss attributable to LM Funding shareholders was $4.5 million, which included a $3.7 million non-cash unrealized loss on investment in equity securities compared to net income of $2.8 million for the second quarter of 2022, which included $12.2 million unrealized gain on investments in equity securities.

截至2023 年6 月30 日的三個月，LM Funding 股東應佔的淨虧損為450 萬美元，其中包括股本證券投資的370 萬美元非現金未實現虧損，而2022 年第二季淨利為280萬美元，其中包括 1,220 萬美元的股本證券投資未實現收益。

Core EBITDA for the quarter ended June 30, 2023, was $1 million compared to a core EBITDA loss of $2.3 million in the 2022 comparable quarter, primarily due to our bitcoin mining operations and the gain on adjustment of Symbiont note receivable allowance.

截至2023 年6 月30 日的季度核心EBITDA 為100 萬美元，而2022 年同期核心EBITDA 虧損為230 萬美元，這主要是由於我們的比特幣挖礦業務以及Symbiont 應收票據據備抵調整帶來的收益。

Turning to our balance sheet, we ended the quarter with $1.8 million cash, bitcoins worth $2 million, and working capital of $5.5 million, which we believe provides us with sufficient liquidity to execute on our current bitcoin mining strategy. In addition, we had minimal long-term debt and ended the quarter with stockholders' equity of $39.9 million or $2.32 per share.

轉向我們的資產負債表，本季末我們擁有180 萬美元現金、價值200 萬美元的比特幣和550 萬美元的營運資金，我們相信這為我們提供了足夠的流動性來執行當前的比特幣挖礦策略。此外，我們的長期債務極少，本季末股東權益為 3,990 萬美元，即每股 2.32 美元。

Finally, net cash used by operations were $330,000 during three months ended June 30, 2023, compared to net cash provided by operations of $334,000 for the three months ended June 30, 2022. This change in cash used in operating activities was primarily driven by the difference between bitcoin mining revenue received in non-cash consideration, i.e., bitcoin, as compared to [that of] mining bitcoins, liquidate [support] operations in three months ended June 30, 2023.

最後，截至2023 年6 月30 日止的三個月內，營運所使用的淨現金為330,000 美元，而截至2022 年6 月30 日止的三個月內，營運所提供的淨現金為334,000 美元。經營活動中使用的現金變化主要是由於截至2023 年6 月30 日的三個月內，以非現金對價（即比特幣）收到的比特幣挖礦收入與挖礦比特幣、清算[支持]業務的收入之間的差異。

That concludes our prepared remarks. I would now like to open the call for questions. Operator, could you please assist us with that?

我們準備好的演講到此結束。我現在想開始提問。接線員，您能協助我們嗎？

Certainly. At this time, we will be conducting the question-and-answer session. (Operator Instructions) Matthew Galinko, Maxim Group.

當然。此時，我們將進行問答環節。 （操作員說明）Matthew Galinko，Maxim Group。

Can we start with maybe a little bit more on your thoughts looking into the halving event next -- expected for next year? Is the -- maybe talk a little bit more about your strategy going into that or maybe how you see that playing out?

我們可以先談談您對明年減半事件的看法嗎？也許可以多談談您的策略，或者您如何看待這種情況的發生？

Sure, Matt. Well, from a 50,000-foot view, the halving means that basically half the machines will probably fall into level of unprofitability worldwide. So you want to be at the top end of the efficiency curve there, which is why we've focused our purchases -- most recent purchases on XPs. And before that, we had SJ Pros or the 19J Pros.

當然，馬特。那麼，從 50,000 英尺的角度來看，減半意味著全球基本上一半的機器可能會陷入無利可圖的水平。因此，您希望處於效率曲線的頂端，這就是為什麼我們將採購重點放在 XP 上的原因。在此之前，我們有 SJ Pros 或 19J Pros。

Then we've -- we are a infrastructure light plan, so we host with other people and we have spread our hosting contracts around. And we have our hosting contracts coming due around the period of the halving because in the past, there have been sort of a rejiggering period after the halving where things goes sideways before the supply and demand curve discrepancy created by the halving kicks in and the price goes up.

然後我們——我們是一個基礎設施輕型計劃，所以我們與其他人一起託管，並且我們已經分散了我們的託管合約。我們的託管合約在減半期間到期，因為在過去，減半後有一段調整期，在減半造成的供需曲線差異和價格出現之前，情況會出現橫向波動。往上。

So our infrastructure light plan is to stay with lean and fast machines. Keep our joules per terahash low and have our contracts be in position that we can renegotiate, should the halving produce different economics on the go forward.

因此，我們的基礎設施輕型計劃是繼續使用精益和快速的機器。將每 terahash 的焦耳數保持在較低的水平，並讓我們的合約處於可以重新談判位置，如果減半會產生不同的經濟效果的話。

Got it. Thanks. And then maybe touching on the implementation of Braiins on a subset of your mining equipment, is that something you expect to bring across the fleet or what -- I guess, what's the timing on rolling out more broadly optimization strategies like that?

知道了。謝謝。然後也許會涉及在您的採礦設備的一部分上實施 Braiins，這是您希望在整個車隊中實現的東西嗎？我想，推出更廣泛的優化策略的時機是什麼？

So this is Rick Russell. On the Braiins software, the bulk of our fleet is with core. And generally, we don't run Braiins on those machines. But we do run it at our other hosting GIGA, and it works a lot, I think, in the Texas environment where there's a lot of adjustments to the power usage going on. But it won't be a rollout throughout the entire fleet.

這是里克·拉塞爾。在 Braiins 軟體上，我們的大部分機群都是核心的。一般來說，我們不會在這些機器上運行 Braiins。但我們確實在我們的其他託管 GIGA 上運行它，我認為它在德克薩斯州的環境中運行得很好，那裡對電力使用進行了很多調整。但它不會在整個機隊中推廣。

Got it. And then on Symbiont, I think you mentioned you might -- you're hoping to announce something in the next few months. So I guess what's your sense since closing that acquisition? Are things going sort of according to plan or how -- could you help us with a little bit more color on how that's going.

知道了。然後在 Symbiont 上，我想你提到過你可能 - 你希望在未來幾個月內宣布一些事情。那我猜您完成收購後有何感想？事情是否按計劃進行，或者如何進行——您能否幫助我們更多地了解事情的進展。

So we've learned an awful lot about what it is we've acquired and both on its functionality and features, which seem to be more robust than what's out there in the marketplace, and that seems to be encouraging and attracting a lot of attention. We've learned some criticisms of the technology. Some of it was done in a proprietary manner that if you can rule the world, might work great, but maybe converting it to open source would be better.

因此，我們對我們所獲得的產品及其功能和特性有了很多了解，這些產品似乎比市場上的產品更強大，這似乎令人鼓舞並吸引了許多關注。我們了解到一些對該技術的批評。其中一些是以專有方式完成的，如果你可以統治世界，可能會很好用，但也許將其轉換為開源會更好。

And so everyone believes that for the different uses that we're looking at in the different projects that we're talking to people about, believe that there's a level of CapEx going to be required to commercialize this for the customer base that they're targeting. And of course, all those things require money and money requires negotiation and different interests and different objectives for use of the technology. So it's going great, it's just hasn't revealed itself as to how it's going to go.

因此，每個人都認為，對於我們在與人們談論的不同項目中所考慮的不同用途，相信需要一定程度的資本支出才能將其商業化，以供他們所關注的客戶群使用。瞄準。當然，所有這些事情都需要金錢，而金錢需要談判以及使用該技術的不同利益和不同目標。所以一切進展順利，只是還沒有透露它將如何進行。

Got it. Okay. Maybe, I think, last question for me is on plans for fleet, I guess, evolution on the mining side. Do you expect to just be in a steady state from the next few months going into the halving in terms of the size of the fleet? And if you have any failures, you'll replace them with higher-efficiency units or what's the thinking there?

知道了。好的。我想，也許對我來說最後一個問題是關於艦隊的計劃，我猜，是採礦的演變。您預計在接下來的幾個月內機隊規模減半後會保持穩定狀態嗎？如果出現任何故障，您將用效率更高的設備替換它們，或者那裡的想法是什麼？

To the latter part, yeah. We're buying machines to replace and increase efficiency. Our executive comp plans are all incentivized to get us to one exahash. So everybody from Rick and I, down to the guys those are out at the mines in Texas looking at broken machines today are motivated to do that. And so there's a combination of finding machines at the right price, hosting at the right price, and deploying capital to do so. And so we're constantly working on that. It's the right time to be acquiring machines. We are just looking at our best sources of capital to do so.

到了後半部分，是的。我們購買機器是為了更換和提高效率。我們的高階主管薪酬計畫都是為了讓我們達到 1 exahash。因此，從里克和我，到今天在德克薩斯州礦場尋找損壞機器的人，每個人都有動力這樣做。因此，需要以合適的價格尋找機器、以合適的價格託管並部署資本來實現這一目標。因此，我們一直在為此努力。現在正是購買機器的好時機。我們只是在尋找最好的資金來源來實現這一目標。

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

（操作員說明）Kevin Dede 與 H.C.溫賴特。

This is Michael Donovon calling on behalf of Kevin Dede. I'm just hoping to get a bit more color on your fleet. So you mentioned, again, to one exahash -- so how much are you planning to invest in purchasing new machines? And then also, do you have any specific sites in mind for expanding hosting agreements? Or are you pretty content with your providers on that front right now?

我是邁克爾·多諾馮 (Michael Donovon) 代表凱文·德德 (Kevin Dede) 打來的電話。我只是希望你的艦隊能多一點色彩。所以你再次提到，你打算投資多少來購買新機器？另外，您是否有任何特定網站可以擴展託管協議？或者您現在對這方面的提供者非常滿意？

So the first question, we haven't released any guidance on the -- to talk around the question, obviously, machines cost a certain amount of money to get that one exahash. And Bitmain offers coupons and incentives to their better customers that keep piling up for us. And then there's the amount of bitcoin we have on hand that we could sell and then turn those into machines. The amount of cash we have on hand that we're willing to operate without.

所以第一個問題，我們還沒有發布任何關於這個問題的指導——顯然，機器需要花費一定的錢才能獲得這個價值。比特大陸也向他們的優質客戶提供優惠券和激勵措施，這些優惠券和激勵措施不斷為我們提供。然後我們手邊有一定數量的比特幣可以出售，然後將它們變成機器。我們手頭上有多少現金，但我們願意在沒有現金的情況下進行營運。

And then we're always looking at our capital markets and our stock and hoping that we will respond well this earnings call and provide some opportunity there. So that's the status -- sources of ways that you can buy machines. You can also borrow money, but we're very reluctant to leverage our position much.

然後，我們一直在關注我們的資本市場和股票，並希望我們能夠很好地回應這次財報電話會議，並在那裡提供一些機會。這就是狀態——購買機器的方式來源。您也可以藉錢，但我們非常不願意充分利用我們的部位。

And then as for your hosting question, we are pursuing a geographically dispersed hosting plan so that our CapEx isn't tied up into transformers and land and buildings and things that don't equate to the actual coin mined when it's mined. And then by being geographically dispersed, you get politically dispersed with that as well as power source dispersed.

至於您的託管問題，我們正在追求地理上分散的託管計劃，以便我們的資本支出不會與變壓器、土地、建築物以及與開採時實際開采的硬幣不相等的事物相關聯。然後，透過地理上的分散，政治上也會分散，權力來源也會分散。

And although we like all the people that we're currently mining with and are always asking them for more space, we're also open to going and seeing new sites and new technologies and new ways to mine. That's why these guys are racking up so many frequent flyer miles [for me].

儘管我們喜歡目前與我們一起挖礦的所有人，並且總是要求他們提供更多空間，但我們也願意去參觀新地點、新技術和新挖礦方式。這就是為什麼這些人[為我]累積瞭如此多的飛行常客里程。

That's helpful. With regard to Symbiont, I guess we'll have to wait for your announcements there. So a bit more of an esoteric question on, are you going to stick with the current branding of Assembly or are you going to look to re-brand Symbiont's individual assets?

這很有幫助。關於 Symbiont，我想我們必須等待你們的公告。因此，有一個更深奧的問題是，您會堅持使用當前的 Assembly 品牌，還是會考慮重新品牌 Symbiont 的個人資產？

I don't know the answer, but I know that I am not the one that's going to make that decision. We're surrounding ourselves with some very, very successful tech savvy people that have their own views on those things, and I think we'd be better to defer to those.

我不知道答案，但我知道我不是那個能做出這個決定的人。我們周圍都是一些非常非常成功的技術達人，他們對這些事情有自己的看法，我認為我們最好尊重這些人。

Makes sense. In terms of the regulatory landscape, what sort of feedback have you received in terms of how Symbiont's assets can play into the current regulatory landscape?

說得通。就監管環境而言，您收到了 Symbiont 資產如何融入當前監管環境的回饋？

I'm unaware of any regulatory landscape effects on Symbiont's assets. Could you elaborate on your question?

我不知道監管環境對 Symbiont 的資產有何影響。能詳細說明一下你的問題嗎？

It's more of just a general question about in terms of crypto and blockchain in general, specifically in the US versus, say, Europe. Europe's MiCA regulatory regime that's being put in place right now. Just at a 50,000 square foot level, are you feeling optimistic about the landscape, or do you see some things need to change before Symbiont's tech can really take off?

這更多的是關於加密貨幣和區塊鏈的一般性問題，特別是在美國與歐洲等國家。歐洲目前正在實施 MiCA 監管制度。僅在 50,000 平方英尺的水平上，您對前景感到樂觀嗎？或者您是否認為在 Symbiont 的技術真正起飛之前需要改變一些事情？

So we're bitcoin miners at heart. In the regulatory environment, for being a bitcoin miner, it kind of keeps getting clearer and clearer. We're a commodity, I guess, we're not going to be treated as security. There's not a lot changing for us. What we're really hoping will change, they will be on the accounting side. We need [vendor] to come out and allow us to mark this thing to fair market value each quarter rather than to its lowest trading point and keeping it impaired. But I think that the guidance on that, it's just a matter of time until it gets approved. There's really not much for resistance there.

所以我們本質上就是比特幣礦工。在監管環境下，對於比特幣礦工來說，它的監管越來越清楚。我想，我們是一種商品，我們不會被視為安全。對我們來說沒有太多改變。我們真正希望改變的是會計方面。我們需要[供應商]站出來，允許我們每季將這個東西標記為公平市場價值，而不是標記為最低交易點並使其受損。但我認為有關指導意見獲得批准只是時間問題。那裡確實沒有太多抵抗力。

On our Symbiont asset, it doesn't -- it was designed as a blockchain for private use among financial institutions. And so it never really had a look towards the tokenization and some of the things that the exchanges have run into with issuing coins and such like that.

在我們的 Symbiont 資產上，情況並非如此——它被設計為金融機構私人使用的區塊鏈。因此，它從未真正考慮過代幣化以及交易所在發行代幣等方面遇到的一些問題。

Now, it's a very robust blockchain, it could be turned into a public blockchain, but we would be -- we need to see a regulatory path for us to be able to pivot that thing to a public tokenization. But yeah, it's very interesting if that path can present itself to having a license security and a registry rather in a exchange it traded on, that would interest us.

現在，它是一個非常強大的區塊鏈，它可以變成一個公共區塊鏈，但我們需要看到一條監管路徑，以便我們可以將其轉變為公共代幣化。但是，是的，如果這條道路能夠呈現擁有許可證證券和註冊機構而不是在其交易的交易所中，那將是非常有趣的，這會讓我們感興趣。

Jack Richardson, Expressway Center.

傑克理查森，高速公路中心。

This is -- I am a stockholder. This is my very first conference call of this matter. I just have a -- really just one question, and please tell me if this is proprietary or not, I will not be offended. Question is, what is the average cost per kilowatt for power, including hosting fees?

這就是——我是股東。這是我第一次就此事召開電話會議。我只是有一個問題——實際上只是一個問題，請告訴我這是否是專有的，我不會被冒犯。問題是，每千瓦的平均電力成本是多少，包括託管費？

Well, it includes all service fees and it's around (technical difficulty)

嗯，包含了所有的服務費就差不多了（技術難度）

And again, that's a charge for the kilowatt. The real estate entity, the rack that the machines fits on and somebody walking around with a screwdriver fixing (technical difficulty).

再說一遍，這是按千瓦收費的。房地產實體、機器安裝的機架以及用螺絲起子固定的人走來走去（技術難度）。

That maintenance and real estate and -- does that include [maintenance].

維護和房地產以及—這是否包括[維護]。

We do everything in construction line, so it's kind of an all-in cost.

我們在施工線上做所有事情，所以這是一個總成本。

Okay. So when a machine goes down, you can fix it, is that correct?

好的。那麼當機器出現故障時，你可以修復它，對嗎？

That's our -- that's how we set up our hosting.

這就是我們的——這就是我們設定託管的方式。

That's correct.

這是正確的。

And what or -- in your presentation, you had mentioned your net number of miners as of couple of days ago to August. What is that number, again?

或者——在你的演講中，你提到了截至幾天前到八月的礦工淨數量。那個數字又是多少？

I believe it's like 5,900, it's changed.

我相信大約是5,900，它已經改變了。

5,900 and changed, okay. Alright.

5900，換了，好。好吧。

It's just we have a mix of XPs that's about 615 petahash.

只是我們有大約 615 petahash 的 XP 組合。

Okay. And I guess a follow up question is, I assume that all the rigs and element, they are hosted?

好的。我想接下來的問題是，我假設所有的裝備和元素都被託管了？

Yeah.

是的。

Yeah. But somebody or another. Okay.

是的。但有人或另一個人。好的。

This does conclude the question-and-answer session and I will now turn the call back over to management for any closing remarks.

問答環節到此結束，我現在將把電話轉回給管理階層，讓他們發表結束語。

I'd like to thank everyone for participating in our 2023 second quarter conference call. The company's pivot to bitcoin mining has been successful to date. We continue to reinvest our mining revenues to purchase additional mining machines debt-free as well as adding cutting edge software designed to improve the hash rate of our existing mining machines. We continue to believe in the long-term appreciation of bitcoin as an asset class, we believe the most efficient way to invest in Bitcoin is through the purchase of highly efficient mining machines.

我要感謝大家參加我們的 2023 年第二季電話會議。迄今為止，該公司向比特幣挖礦的轉型取得了成功。我們繼續將挖礦收入再投資，以無債務方式購買更多礦機，並添加旨在提高現有礦機哈希率的尖端軟體。我們仍然相信比特幣作為一種資產類別的長期升值，我們相信投資比特幣最有效的方式是透過購買高效能礦機。

In summary, we're extremely pleased with the progress we have made during the second quarter of 2023 and believe the momentum of our transition to bitcoin mining accelerate as we continue to acquire and electrify more machines in the future. We are thankful for the ongoing support from our shareholders and will continue to provide updates on our progress as new developments emerge.

總而言之，我們對 2023 年第二季度的進展感到非常滿意，並相信隨著我們未來繼續購買更多機器並使其電氣化，我們向比特幣挖礦轉型的勢頭將會加速。我們感謝股東的持續支持，並將隨著新進展的出現繼續提供最新進展。

Thank you for joining us today and for your questions. We look forward to speaking to you soon.

感謝您今天加入我們並提出問題。我們期待盡快與您交談。

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

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。