HIVE Digital Technologies Ltd. Q3 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: $14.3 million, down 52% compared to $30 million in Q2 FY2023 and down 79% from $68.8 million in Q3 FY2022.
  • Adjusted EBITDA: $1.5 million, down from $18.8 million in Q2 and significantly down from $69.6 million YoY (Q3 FY2022).
  • Net Loss: $90 million in Q3 FY2023 vs. $37M loss in Q2 FY2023 and $51.2 million net income in Q3 FY2022. Loss driven largely by noncash charges:
    • Impairment on mining equipment: $38.8 million
    • Provision on equipment deposits: $22.7 million
  • Bitcoin Mining: 858 BTC mined in Q3 FY2023; equivalent BTC mined including altcoins was 1,143 BTC.
  • Cost to Produce 1 BTC: $13,634, with Bitcoin average price at $18,000, leading to ~25% gross operating margin.
  • Gross Mining Margin: $3.6 million (25%) in Q3 FY2023, down from $15.9 million (53%) in Q2 FY2023 and from $62.3 million (91%) YoY.
  • Balance Sheet:
    • Cash: $8.6 million
    • Digital Assets: $39 million
    • Strategic Investments: $5.5 million
    • Debt: Minimal
  • HODL Position: Increased year-over-year despite strategic sales to fund ASIC purchases.

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Holly Schoenfeldt: Hello, everyone, and welcome to today's webcast reviewing HIVE Blockchain Technologies financial results for quarter ended December 31, 2022. 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 Slide #3, I am pleased to introduce today's presenters: Frank Holmes, Executive Chairman; Aydin Kilic, President and CEO; Darcy Daubaras, Chief Financial Officer; and Adam Sharp, Editor of the HIVE Newsletter. I would now like to hand the presentation over to Frank Holmes, Executive Chairman, for a macro overview of the quarter. Frank? Frank Holmes: Thank you, Holly, and thank you, our shareholders, and the team for pulling this together what has been, as I'll recap for last calendar year, and it's really amazing how pulling through that and trying to give you color on the macro scene and what we see is going on. But what's really important for all of us before, what I think is an important disclosure and just to appreciate, the DNA of volatility. So often gold is compared to Bitcoin. A big reason for it is a decentralized asset. And when as you can see, gold bullion's daily volatility means 70% of the time it's a nonevent, they go up or down 1%. But over 10 days

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