HIVE Digital Technologies Ltd. Q2 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: $22.8 million, down from $29.6 million in Q2 FY2023, and slightly down from $23.6 million in Q1 FY2024. Driven by rising Bitcoin network difficulty and the Ethereum merge in September 2022.
  • Adjusted EBITDA: -$1.5 million in Q2 FY2024, down from a positive $5.3 million in Q1 FY2024.
  • Net Loss: $24.5 million or $0.29 per share vs. a $16.3 million loss or $0.41 per share in Q2 FY2023.
  • Gross Operating Margin: $4.6 million in Q2 FY2024 (20%) vs. $15.9 million (34%) in Q2 FY2023 and $8 million in Q1 FY2024.
  • Bitcoin Production: 801 BTC in Q2 FY2024; producing 9.2 BTC/day as of mid-November, equating to ~1% of total Bitcoin network rewards.
  • Bitcoin Holdings: 1,738 BTC as of September 30, 2023 (down from 1,957 BTC on June 30, 2023>), due to strategic sales to invest in efficient ASIC machines ahead of 2024 halving.
  • Cash & Digital Assets: $4.5M in cash and $46.9M in digital currencies (primarily BTC).
  • Energy Efficiency: Sweden energy tax changes added $1.9 million in costs, but grid balancing in Sweden generated $1.4 million in revenue.

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Holly Schoenfeldt: Hello, everyone, and welcome to today's webcast reviewing HIVE Digital Technologies financial results for the quarter ended September 30, 2023. On Slide #2, I would like to briefly note disclosures. Except for statements of historical fact, this presentation contains forward-looking information within the meaning of the applicable Canadian and U.S. securities regulations. These forward-looking statements are based on expectations, estimates and assumptions as of the date of this presentation. On the next slide, I'm pleased to introduce today's presenters. Frank Holmes, Executive Chairman; Aydin Kilic, President and CEO; and Darcy Daubaras, Chief Financial Officer. I would now like to hand the presentation over to Mr. Frank Holmes for a macro recap of the quarter. Frank? Frank Holmes: Thank you, Holly, and thank you all shareholders and media people that are listening to this webcast. We're very happy how we've been navigate. It's going to be an incredible roller coaster year, and let's see if we can -- but the bottom is behind us and the future looks much better. So I always like to start off my presentations with this beautiful little roller coaster of Bitcoin prices. And there's a reason for that, and I'm going to show you in a second, but most important is to understand the DNA of volatility of an asset class because each one has its own unique volatility and high daily volatility is 6x the S&P 500 and 6x gold prices. That means 70% of the time,

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