Bitfarms Ltd. (NASDAQ:BITF) Q4 2022 Earnings Call Transcript

Geoff Morphy: Let me give you a little background on that and some metrics. The beginning of 2022, we decided, because we thought consolidation was coming and acquisitions would be coming, that we should develop a corporate development group. We have three talented individuals within that group, and over the last 14 months, they have reviewed 80 opportunities in 17 countries with over 6,500 megawatts of power. We have issued 15 LOIs, we are very busy in looking at opportunities, but very disciplined at what might work for us. Often there is a mismatch of our value expectations versus their value expectations. But I think, given the tightness of the marketplace in the fourth quarter last year, the difficulty rises so far in this quarter, people have realized that this is a very challenging business and sector, and that you need industrial scale and experience to be able to do it successfully.

And we are seeing better opportunities, more realistic pricing, and we are hoping that we’re going to be able to complement our organic expansion with some acquisitions. And just to follow-on with your question, yes, they are particularly good if they are already in Geographies that we reside in, because we have people there that just makes sense. And there are also areas in which we know the laws and the rules far better, but it doesn’t keep us out of looking at other jurisdictions that might be favorable for growth as well.

Dillon Heslin: Great. Appreciate the comments. That’s it for me.

Geoff Morphy: Very good.

Operator: And this concludes our question-and-answer session. I would now like to turn the conference back over to Geoff Morphy for any closing remarks.

Geoff Morphy: Thank you. I would like to reiterate three points about Bitfarms. First, we mined 5,167 Bitcoin in 2022, placing us high in total production for the year and further validating our capabilities to scale the business. Second, we’ve maintained profitable mining operations each quarter as a result of our determination to maintain stable low energy and operating costs, three, we’ve de-levered our balance sheet. As of February with $22.4 million in available equipment credits and just $23 million in total indebtedness, we have ample flexibility to grow in 2023 organically with little capital outlay we expect to reach 6 exahash per second by year-end from our existing portfolio. And we expect that one or more acquisitions will bring us even further value to shareholders.

Thank you all for attending today’s conference call. We look forward to updating you with our monthly production reports as well as other developments in our Q1 conference call in May. Thank you very much.

Operator: The conference has now concluded. Thank you very much for attending today’s presentation. You may now disconnect your lines.