Mawson Infrastructure Group Inc. Reports Q3 2023 Financial Results
November 13 2023 - 4:15PM
Mawson Infrastructure Group Inc. (NASDAQ: MIGI) (“Mawson”,
Company), a digital infrastructure company, today announced its
unaudited financial results and highlights for the third quarter
ending September 30, 2023.
Rahul Mewawalla, CEO and President of Mawson,
said, “We are delighted to deliver a second successful consecutive
quarter of significant double-digit sequential revenue growth for
our self-mining business as we continued to execute our new
operating excellence model combined with our business, technology,
and financial optimization efforts. We are also pleased to see the
impact of our driving operational efficiencies and our
cost-optimization activities, which have contributed to improved
operating leverage and lower SG&A expenses for our businesses.
Across all our 3 businesses, self-mining, co-location services, and
energy management, we are focused on enhancing value for all our
stakeholders.”
Q3 2023 Financial and Recent Business
Highlights
- Total Revenue
increased 7% Q/Q to $11.3 million
- Self-Mined BTC
revenue increased 41% Q/Q to $6.9 million
- SG&A expense
declined 42% Q/Q and 27% Y/Y to $3.7 million
- Ramped up
self-mining at Bellefonte site to 8.8 MW and 2,545 miners
hashing
- Total
self-miners hashing increased to approximately 16,730 across
sites
- 109 MW power
capacity able to support approximately 35,480 miners or 3.7
EH/s1
- Announced
signing of a new co-location customer for approximately 50MW in
October 2023, with approximately 15,876 Bitmain Antminer S19 XP
miners
- Announced
appointment of a new Board member, former United States Congressman
from Pennsylvania
___________
1 Includes approximately 1.3 EH/s from self-mining platform and
approximately 2.4 EH/s from co-location platform.
BTC Hosting and Co-location Services
Update
Mawson announced on October 19, 2023 that the Company had signed
an agreement to provide a new customer, a wholly owned subsidiary
of Consensus Technology Group, with co-location services for
approximately 15,876 Bitmain Antminer S19 XP miners or
approximately 50 MW at Mawson’s Midland, Pennsylvania facilities.
The co-location customer agreement has Mawson providing co-location
services to the customer for 12 months and the parties can extend
further upon mutual agreement. Mawson received initial shipments of
these Bitmain Antminer S19 XP miners and commenced installing
miners towards the end of October and is continuing its deployments
into the month of November 2023.
Conferences and Events Update
Mawson has planned for its CEO and President, Rahul Mewawalla to
join the following upcoming conferences and events. Please
contact IR@Mawsoninc.com for further information.
- North American Blockchain Summit in
Fort Worth, Texas in November 2023
- Europe Blockchain Next Block Expo
in Berlin, Germany in December 2023
- Annual Needham Growth Conference in
New York City, New York in January 2024
- Quantum Conference in Miami,
Florida in January 2024
Third Quarter 2023 GAAP Financial Results
Revenue for the third quarter 2023, ended
September 30, 2023, increased 7% sequentially to $11.3 million. The
increase was the result of the successful increase in Mawson’s
self-mining business across its Pennsylvania sites. Over the same
quarter last year, revenue decreased 60% driven by the Company’s
sale of its Georgia facility in October 2022.
Cost of revenue in the third quarter of 2023
decreased 58% compared to the same period in the prior year and
increased 10% sequentially to $7.7 million, from $7.0 million.
Higher energy costs associated with the increased load of
self-mining capacity across the Pennsylvania sites, were offset by
lower energy usage from the reduction in co-location operations
part way through the quarter. Year on year lower energy and
associated costs from the sale of the Georgia facility led to the
comparative reductions, respectively. Gross profit increased 3%
sequentially to $3.6 million driven by combination of operational
improvements, lower power costs, improved BTC market metrics, and
decreased 64% from $10.1 million from the same quarter last year
driven by the reduction in self-mining and co-location operations
associated with the sale of the Company’s Georgia facility.
SG&A expense for the third quarter of 2023
decreased 42% sequentially to $3.7 million from $6.3 million due to
the initial results of the Company’s operational efficiencies and
our cost-optimization activities implemented by new management over
recent months and decreased from $5.0 million compared to the same
quarter last year.
In the third quarter of 2023, Mawson incurred a
net loss of $16.2 million compared to $17.7 million in the prior
quarter and $8.2 million for the same quarter last year, with an
adjusted EBITDA of a net loss of $0.04 million in the third quarter
of 2023 compared to a net loss of $0.18 million in the prior
quarter.
About Mawson Infrastructure
Mawson Infrastructure Group (NASDAQ: MIGI) is a digital
infrastructure company. Mawson’s vertically integrated model is
based on a long-term strategy to promote the global transition to
the new digital economy. Mawson aligns digital infrastructure,
sustainable energy, and next-generation fixed and mobile data
center solutions, enabling efficient Bitcoin production and
on-demand deployment of digital infrastructure assets. Mawson
Infrastructure Group is emerging as a global leader in ESG focused
digital infrastructure and Bitcoin mining.
For more information, visit: https://mawsoninc.com/
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
Mawson cautions that statements in this press release that are
not a description of historical fact are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements may be identified by the use of
words referencing future events or circumstances such as “expect,”
“intend,” “plan,” “anticipate,” “believe,” and “will,” among
others. Because such statements are subject to risks and
uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. These
forward-looking statements are based upon Mawson’s current
expectations and involve assumptions that may never materialize or
may prove to be incorrect. Actual results and the timing of events
could differ materially from those anticipated in such
forward-looking statements as a result of various risks and
uncertainties, which include, without limitation, the possibility
that Mawson’s need and ability to raise additional capital, the
development and acceptance of digital asset networks and digital
assets and their protocols and software, the reduction in
incentives to mine digital assets over time, the costs associated
with digital asset mining, the volatility in the value and prices
of cryptocurrencies and further or new regulation of digital
assets. More detailed information about the risks and uncertainties
affecting Mawson is contained under the heading “Risk Factors”
included in Mawson’s Annual Report on Form 10-K filed with the SEC
on March 23, 2023, and Mawson’s Quarterly Reports on Form 10-Q
filed with the SEC on May 15, 2023, August 21, 2023, November 13,
2023 and in other filings Mawson has made and may make with the SEC
in the future. One should not place undue reliance on these
forward-looking statements, which speak only as of the date on
which they were made. Because such statements are subject to risks
and uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. Mawson
undertakes no obligation to update such statements to reflect
events that occur or circumstances that exist after the date on
which they were made, except as may be required by law.
Investor Contact: Sandy Harrison Chief
Financial OfficerIR@mawsoninc.com
Mawson Infrastructure (NASDAQ:MIGI)
Historical Stock Chart
From Apr 2024 to May 2024
Mawson Infrastructure (NASDAQ:MIGI)
Historical Stock Chart
From May 2023 to May 2024