Core Highlights: - Revenue grew 128.3% driven by increased bitcoin mining operations from expanded mining capacity
- Gross margin improved to 58.9% from 55.7% in the prior year period
- Net loss was $43.2 million, an increase of 31.0% due to higher operating expenses from expanded operations
Revenue Breakdown: Bitcoin mining revenue:
- Q3 2024: $27.1 million, +57.6% vs Q3 2023, driven by increased hash rate capacity
- YTD 2024: $104.3 million, +160.3% vs YTD 2023
Data center hosting revenue (contract expired in February 2024):
- Q3 2024: $0 million
- YTD 2024: $0.8 million, -86.2% vs YTD 2023
Management Outlook: Management highlighted the significant mining revenue increase from bringing additional capacity online. They noted the adoption of bitcoin fair value accounting which results in recognizing unrealized gains/losses each period.
Management expects to continue expanding mining capacity and diversifying into high performance computing initiatives.
Operating Data: Other operating data:
- Depreciation: $44.9 million YTD
- Interest expense: $16.8 million YTD
- Stock compensation: $14.2 million YTD
- Cash used in investing activities: $82.4 million YTD (mainly capex)
- Cash provided by financing activities: $33.6 million YTD
With $24.2 million cash/bitcoin and $43.2 million net loss YTD, the Company likely has enough liquidity for approximately 4-5 quarters under current conditions.
Operational Risks: Key risks included:
- Concentration in bitcoin mining and sensitivity to bitcoin price fluctuations
- Ability to raise capital to fund growth plans
- Supply chain constraints for procuring mining equipment
- Power costs and availability for energy-intensive mining operations
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