Hashrate Evolution and Corporate Governance
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GLOSSARY
BTC BTC/day = Bitcoin or Bitcoin per day
EH or EH/s = Exahash or exahash per second
MW or MWh = Megawatts or megawatt hour
PH or PH/s = Petahash or petahash per second
TH or TH/S = Terahash or terahash per second
NON-IFRS PERFORMANCE MEASURES
This presentation makes reference to certain measures that
are not recognized under IFRS and do not have a standardized
meaning prescribed by IFRS. They are therefore unlikely to be
comparable to similar measures presented by other
companies. The Company uses non-IFRS measures including
"Gross margin", "Operating margin", "EBITDA," "EBITDA
margin," "Adjusted EBITDA," "Adjusted EBITDA margin,"
"Gross mining profit," and "Gross mining margin" as
additional information to complement IFRS measures by
providing further understanding of the Company's results of
operations from management's perspective.
EBITDA and EBITDA margin are common measures used to
assess profitability before the impact of different financing
methods, income taxes, depreciation of capital assets and
amortization of intangible assets. Adjusted EBITDA and
Adjusted EBITDA margin are measures used to assess
profitability before the impact of all of the items in calculating
EBITDA in addition to certain other non-cash expenses. Gross
mining profit and Gross mining margin are measures used to
assess profitability after power costs in cryptocurrency
production, the largest variable expense in
mining. Management uses non-IFRS measures in order to
facilitate operating performance comparisons from period to
period and to prepare annual operating budgets.
"EBITDA" is defined as net income (loss) before:
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Interest expense
Income tax expense
Depreciation and amortization
"EBITDA margin" is defined as the percentage obtained when
dividing EBITDA by Revenue. "Adjusted EBITDA" is defined as
EBITDA adjusted to exclude:
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Share-based compensation
Non-cash finance expenses
Asset impairment charges
Realized & change in unrealized gains or loss on disposition
& revaluation of digital assets
Gain on disposition of marketable securities & discount
expense on VAT receivable
Other non-recuring items that do not reflect the core
performance of the business.
"Adjusted EBITDA margin" is defined as the percentage
obtained when dividing Adjusted EBITDA by Revenue. "Gross
mining profit" is defined as Gross profit excluding
depreciation and amortization and other minor items
included in cost of sales that do not directly relate to mining
related activities. "Gross mining margin" is defined as the
percentage obtained when dividing Gross mining profit by
Revenues from mining related activities.
These measures are provided as additional information to
complement IFRS measures by providing further
understanding of the Company's results of operations from
management's perspective. Accordingly, they should not be
considered in isolation nor as a substitute for analysis of the
Company's financial information reported under IFRS.
Bitfarms™
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