PowerCompute (PWCM) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose more than 648% to $13.0M as Bitcoin mining scaled; mined 423.4 BTC valued at $12.3M using the year’s average BTC price of $29,000.

• Q4 net loss attributable to shareholders narrowed to $1.6M from $19.7M YoY; Core EBITDA turned positive at $345K versus a $1.7M loss.

Financial highlights

• Q4 revenue was $4.1M, up 262% YoY; FY revenue was $13.0M, up more than 648% from $1.7M in 2022.

• FY net loss attributable to shareholders was $15.9M versus $29.2M in 2022; included a $9.8M non-cash unrealized investment and equity securities loss and $0.8M Symbiont impairment.

• Q4 net loss attributable to shareholders was $1.6M versus $19.7M YoY; included a $0.5M non-cash unrealized gain and $0.8M Symbiont impairment.

• FY Core EBITDA loss was $0.2M versus a $6.5M loss in 2022; Q4 Core EBITDA was positive $0.3M versus a $1.7M loss. Core EBITDA is non-GAAP.

Outlook and guidance

• Mining equipment purchases continued ahead of the Bitcoin halving expected in late April or early May 2024; management cited historical BTC price highs in the six months after prior halvings.

• Management remained optimistic about Bitcoin and the business, citing a recent BTC all-time high of approximately $73,800 and the financial outlook.