•  Q2 revenue was up 108% YoY to $4.2M, but 3% lower than our estimate. EPS improved YoY, from -$0.04 to $0.001, but was 22% lower than our estimate. Revenue and EPS increased amid increased Bitcoin/BTC mining activity, and hosting services for third-party crypto miners.
    • SATO mined 29 BTC in Q2-2023 vs 12 in Q2-2022. Mining costs were down 3% YoY to $26k/BTC vs the current BTC price of $36k.
    •  SATO has a contractual agreement for 20 MW of renewable power with Hydro Joliette/Quebec, valid until 2028, to support 540 PHs (peta hash per second, or 0.54 EHs) of BTC mining hash rate (defined as calculations performed per second).
    •  Currently, the global hash rate of Bitcoin is 390 EHs (up 82% YoY), implying a 0.14% market share for SATO. Note that the chances of validating a transaction and earning a token decrease with rising hash rates.
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