Executive Summary

Q2 revenue rose 24% Y/Y to $13.11M, driven by 77% Y/Y growth in hosting/co-location and 70% Y/Y in energy management; Adjusted EBITDA turned positive to $0.68M from a loss last year, but total revenue fell Q/Q as self-mining revenue declined post-halving .
EPS was -$0.55 vs -$1.12 a year ago; MarketBeat shows an EPS beat vs consensus (-$0.55 vs -$0.69) and a slight revenue miss ($13.11M vs $13.20M) for Q2 2024; S&P Global consensus was unavailable via API at time of analysis .
Execution: completed 20 MW expansion at Midland to 120 MW (total operated capacity ~129 MW) and signed a 20 MW AI/HPC colocation agreement (NVIDIA GPUs) with multi‑year revenue potential; also announced Ohio expansion (targeting total capacity ~153 MW) .
Risk/overhangs: going-concern uncertainty, defaults on several debt facilities, active litigation/arbitrations (Celsius, W Capital, CleanSpark) and material weaknesses in internal controls remain key headwinds to equity value and financing flexibility .

What Went Well and What Went Wrong

What Went Well
- Hosting/co-location revenue up 77% Y/Y to $8.13M as MIGI diversified beyond a single customer, underpinned by Midland expansion to 120 MW and total capacity ~129 MW .
- Energy management revenue rose 70% Y/Y to $1.73M; management highlighted increased participation in programs and seasonal power dynamics as drivers .
- Positive adjusted EBITDA for the quarter ($0.68M) versus negative last year, reflecting cost optimization (SG&A -42% Y/Y) and higher-margin co-location growth; CEO: “another solid quarter… broadened our business to include AI and HPC colocation markets” .
What Went Wrong
- Q/Q revenue fell to $13.11M from $18.77M in Q1 2024 as Bitcoin self-mining revenue declined post-April halving and due to higher network difficulty and capacity shifted toward co-location .
- Net loss remained sizable at -$9.62M; gross margin was ~33% (vs ~33% a year ago), with cost of revenue up on power usage for customer equipment .
- Going concern substantial doubt, multiple debt facilities in default, and ongoing arbitrations/litigation (Celsius, W Capital, CleanSpark) plus internal control material weaknesses heighten execution and financing risk .

Financial Results

Overall P&L and profitability

Metric	Q2 2023	Q4 2023	Q1 2024	Q2 2024
Revenue ($M)	$10.55	$14.02	$18.77	$13.11
Gross Profit ($M)	$3.52	—	—	$4.32
Gross Margin (%)	33.4% (calc from 3.52/10.55)	—	—	32.9% (calc from 4.32/13.11)
Net Loss ($M)	$(17.34)	—	—	$(9.62)
Diluted EPS ($)	$(1.12)	—	—	$(0.55)
Adjusted EBITDA ($M, non-GAAP)	$(0.18)	—	—	$0.68

Versus “consensus” (proxy; SPGI unavailable)

EPS: -$0.55 actual vs -$0.69 “consensus” (MarketBeat), beat by $0.14 .
Revenue: $13.11M actual vs $13.20M “consensus” (MarketBeat), missed by ~$0.09M .
Note: S&P Global consensus was unavailable via API at the time of analysis.

Segment revenue (sales mix shift toward hosting)

Revenue ($M)	Q2 2023	Q1 2024	Q2 2024
Hosting Co-location	$4.59	$8.23	$8.13
Energy Management / Net Energy Benefits	$1.02	$2.47	$1.73
Digital Assets Self-Mining	$4.90	—	$3.25
Sale of Equipment	$0.04	—	$0.00
Total Revenue	$10.55	$18.77	$13.11

KPIs and operating metrics

KPI	Q2 2023	Q1 2024	Q2 2024
Bitcoin Produced (BTC)	182	140	49
Avg BTC Sales Price ($)	—	—	$65,657
Midland Capacity (MW)	—	—	120
Total Operated Capacity (MW)	—	~109 (May update)	~129

Balance sheet and liquidity notes

Cash and cash equivalents: $6.78M at 6/30/24; negative working capital of $34.50M; total current liabilities $57.82M; significant debt facilities in default and going-concern substantial doubt .

Guidance Changes

The company did not issue formal numeric quarterly or annual financial guidance; strategic disclosures provide directional and contractual visibility.

Metric	Period	Previous Guidance	Current Guidance / Disclosure	Change
AI/HPC Colocation Agreement (BE Global)	2 years (initial term subset)	—	~$92M potential revenue over first 2 years; 20 MW NVIDIA GPU deployment expected Q1 2025	New
AI/HPC Colocation Agreement (BE Global)	6 years (initial term)	—	~$285M cumulative potential revenue over 6-year initial term	New
AI/HPC Expansion LOI	Multi-year	—	Non-binding LOI to grow from 20 MW to 144 MW over time	New
Operated Capacity	Near-term	~109 MW in May 2024 update	~129 MW after Midland 20 MW expansion	Raised
Market Footprint	—	PA only	Ohio expansion; initial 24 MW lease amendment; total capacity target ~153 MW upon completion	New

Earnings Call Themes & Trends

No public Q2’24 earnings call transcript was located in our document corpus; themes below reflect press releases and 10‑Q MD&A.

Topic	Previous Mentions (Q4 2023, Q1 2024)	Current Period (Q2 2024)	Trend
AI/HPC initiatives	Q4: no AI/HPC disclosure; co‑location ramp, revenue +24% Q/Q total	Entered AI/HPC colocation; 20 MW contract (NVIDIA GPUs), LOI to 144 MW; Ohio expansion to support AI/HPC growth	Accelerating
Hosting/Co-location mix	Q4: enterprise co-location added; revenue +52% Q/Q	Hosting +77% Y/Y to $8.13M; diversified beyond single customer	Improving/diversifying
Self-mining & BTC halving	Q4: 193 BTC produced	BTC produced 49 vs 182 YoY (-73%) due to halving and higher difficulty; mix shifting to hosting	Pressured
Energy management	Q4: +64% Q/Q	+70% Y/Y to $1.73M; higher curtailment participation	Positive contributor
Capacity expansion	Q1: announced Midland +20 MW plan	Midland expansion completed to 120 MW; total ~129 MW; Ohio expansion to ~153 MW target	Scaling
Liquidity/Leverage & legal	—	Going-concern substantial doubt; debt defaults; Celsius/W Capital/CleanSpark matters ongoing	Risk elevated
Controls & governance	—	Material weaknesses in ICFR and IT controls remain	Remediation in progress

Management Commentary

Strategy and expansion: “We have successfully completed the operational expansion of our Midland facilities by 20% to 120 MW… We… broadened our business to include AI… and HPC colocation markets… excited about… solutions across digital assets, AI, and HPC” — CEO Rahul Mewawalla .
Hosting/customer diversification: Hosting revenue +77% Y/Y due to providing services to multiple customers vs a single customer last year .
Self-mining headwinds: Halving and higher network difficulty reduced BTC production and self-mining revenue; partial offset from higher BTC prices and capacity shift to co-location .

Q&A Highlights

No public Q2’24 earnings call transcript was found in our database; we relied on the press release and 10‑Q MD&A for clarifications on revenue mix, halving impact, and liquidity/legal updates –.

Estimates Context

Wall Street consensus via S&P Global was unavailable through the API at the time of analysis; as a proxy, MarketBeat shows Q2 2024 EPS -$0.69 and revenue $13.20M “expected,” vs actual -$0.55 and $13.11M, implying an EPS beat and slight revenue miss .
Given hosting outperformance and self-mining headwinds post-halving, estimates for mix, margins and FY run-rate may shift toward co-location and AI/HPC contributions while self-mining forecasts reset lower pending BTC price and difficulty trajectory .

Key Takeaways for Investors

Mix shift underway: Hosting/co-location (+77% Y/Y) and energy management (+70% Y/Y) are offsetting post-halving self-mining pressure; positive adjusted EBITDA is an incremental proof point .
Capacity and TAM expansion: Midland completed to 120 MW; Ohio expansion points to ~153 MW total; new AI/HPC contracts/LOI could materially increase long-term recurring revenue visibility .
Legal/liquidity overhangs: Going-concern doubt, debt defaults, and ongoing legal matters pose financing and dilution risks; monitor cash generation, debt renegotiations, and outcomes in Celsius/W Capital/CleanSpark disputes .
Near-term trading setup: Q/Q revenue step-down vs Q1 driven by halving and mix; stock is likely more sensitive to AI/HPC execution milestones (deployments, additional MW signed) than to self-mining metrics in the near term .
Estimate implications: Expect analysts to lift hosting/AI/HPC revenue and margin assumptions while cutting self-mining contributions; watch for incremental disclosures on AI/HPC pricing, ramp timing (Q1’25 for first 20 MW), and capital needs .
Risk management: Internal control remediation and resolution of defaults are prerequisites for lower cost of capital and sustained re‑rating; any equity/debt raise terms will be key signals –.
Strategic optionality: If AI/HPC pipeline converts (beyond the initial 20 MW), the business could pivot to a more stable, contracted model less correlated to BTC cycles .

Additional Supporting Documents Reviewed (Q2 context)

Q2 2024 earnings press release and 8‑K exhibit 99.1 (financial highlights and CEO commentary) – –.
Q2 2024 10‑Q (full financials, MD&A, liquidity/risks, non‑GAAP reconciliation) –.
Monthly ops and capacity expansion releases (June–August): Midland 20 MW expansion completed; monthly revenue mix; AI/HPC agreement and Ohio expansion – – – – – –.

Mawson Infrastructure Group Inc. (MIGI)·Q2 2024 Earnings Summary