Good morning or good afternoon, for everyone who's joining us today into our live cast. We are SATO Technologies, and today we will present you our 2023 audited financial results. I am today accompanied with Fanny Philip and Kyle Appleby, our CFO, and Fanny Philip being our COO. We are going to give a few more minutes for people to join us as we see that more people are currently joining, and then we will start. Another minute? All right, I think we will be able to start. So welcome again. We are SATO Technologies. Today we are going to talk about our financial results for 2023. They have been audited by Grant Thornton. We will also talk about different kind of vision we have for the company, and where we're gonna go. Of course, first, disclaimer: everything we talk about during this presentation, during this deck, is forward-looking information.
Everything in our business, more than ever, is linked to how much money we can raise via equity or via debt, and until we have done so and announced it publicly, everything we are disclosing into this presentation is forward-looking information. Today I am joined with Fanny Philip, our COO, and Kyle Appleby, our CFO. We will talk, first about SATO Technologies. We will give you an update of who we are, where we're going to, and what kind of, like, results we have been, and we have had so far. Then Kyle will take the lead and talk about our 2023 audited financial results, extremely good result for the full year of 2023, and then we will finish, with a question and answer, at the end of the session. Who are we? We are a Bitcoin miner. We started in 2017.
It's a company that I have co-founded. Since then we have been dedicated into building our mining power. Today we are running 20 MW of energy, which is, for the average of 2023, around 0.10% of the total Bitcoin network. We have one of the best electricity prices in the world, around CAD 0.043/kWh, but it's not only well-priced, but it's also a very stable energy. It's very important when you run data centers and Bitcoin miners in particular. And it's also an energy that is green because it's 100% renewable or close to 100% renewable. We are mining principally only in Quebec right now. Energy is mainly hydro energy, so it's very low carbon emission or zero, practically almost zero carbon emission.
What is important also with our company is that we have been always we have been able to grow our revenues and our operating cash flows over the years. You can see here since the start of the company, again, started in 2017, first year, first fiscal year in 2018, you can see the progression of our revenues and at the same time from our operating cash flows. At the beginning, from the first three years, we were growing our energy, but it's really in 2021 when we decided to be and to become publicly listed miners that we've really started our expansion. You can see from 2021 to 2023, the increase of revenues from last year to this year. It's 65%, and we are operating cash flow positive.
Here we are detailing a little bit more and going into a more detail on what does it cost, really, to produce one Bitcoin at our company, SATO Technologies. Let's talk the last month, the closest month to us from us. It's January 2024. This is the one you see on the right of your screen. What we are showing in light blue is that it costs in electricity around $18,000 to produce one Bitcoin in our data center. When we take the cost of production, including the site operation and the operating salaries, we make a Bitcoin for around $20,000. Think of it at the price and put it in perspective with the price of the Bitcoin today, and you'll see what kind of gross profit or margin we are making when we make a Bitcoin.
In January, when the price was, I think, closer from, $45,000-ish, we were making $22,000 gross profit on each Bitcoin. This is exceptional in the industry. And because of that, we've been able to expand and to grow. But of course, we all know about the halving. The halving, the block reward will be divided in two. Today we are making 9 we Bitcoin miners are making 900 Bitcoin per day. In a few days or in a few weeks now, it's planned for April 20th, we will have the halving, and it means that every day, all of the Bitcoin miners will make only 450 Bitcoin per day. What does that mean for Bitcoin and for Bitcoin miners? It means that the Bitcoin will become more scarce.
We will produce less Bitcoins that we put on the market, and at the same time then people are buying more Bitcoin because of the ETF, because of different kind of, reason in the world. At the same time, we Bitcoin miners, the one who are issuing new Bitcoin to the market to be bought by people, we will produce twice less. So usually, in the past three occurrences when it happens, we had three halving already since the beginning of Bitcoin. I'm showing here the kind of, price impact we have seen at the time of the halving the last time, in 2012, in 2020, 2016, and 2020. What is important, of course, to know on this, on this graph is that we are rescaling every year. You can see in 2022, in 2012, the all-time high was around, like, $110 or $15.
In 2016, the all-time high was $700. In 2020, $69,000 . Now we are in a place where it's uncertain. We don't know where the Bitcoin is gonna go. We know for sure that the price the other, the, the block reward will be divided by two. That's a certainty. The price action, we don't know. What we know is that we have new elements, many the, the ETF, that are coming into play. But what does it mean anyhow for SATO? We are publicly listed miners. We started a long time ago. We've seen a halving before. We were planning for the halving a long time ago, and we always think about the next and the next halving. But what does that mean for us?
It means if our production cost of production of a Bitcoin is around $21,000, our post-halving, so if the halving were was today, we will double that. But again, put it into perspective to the price of the Bitcoin today. This morning or right now, it's actually $72,100 on my Bit on my phone. This is still more margin, post-halving, so we are fine. We have been built with this event in mind. We have seen in the past what kind of effect it was having on the price of the Bitcoin. This time it's true, it's different. We have more institutional. We have more ETF coming into play. We will see what kind of impact it will have on the price of the Bitcoin. But in any case, we have been built for this halving.
We are not fearing lack, but some people might be depending on the price of the Bitcoin. Why are we prepared, and how have we been prepared? First, because we are efficient. Efficiency is key in the industry. If you listen to some players in the industry, many the big ones, they will tell you that only the biggest survive. It's not true. Only the more efficient survive. And this is what we've been focusing on. And now that we're efficient, we want to grow. We want to continue growing. So far, we've been extremely efficient. This is a report from Anthony Power and Power Mining Analysis, and every month it takes, like, different kind of data published by miners, and he makes some kind of graph, and you can see in this graph, in February, we were the most efficient Bitcoin miners.
It means that with the same amount of electricity and same amount of mining power, we make more Bitcoin. This is what efficiency is. Why? Also, it's because we have history. We started in 2017. We've seen crypto winters. We've seen the COVID. We've seen the bear market. We've seen the bull market. We've seen a first halving. We are close to another halving. We have expertise. We have experience. And over the years, what we have been showing is excellence in operation, also in finance, independently of the price of the Bitcoin. You can see at the beginning, 2.5 MW. In any case, bear market, we continue growing, but go to 7.5 MW, and then 20 MW, and then being 100% self-mining. We are builders. We are operators. And we are developing our own infrastructures in order to be efficient because efficiency, again, is key.
We also have a vision. Where do we go from now? It's good to be good in the past, but where do you go in the future? What we see is that how can we build and expand in the next four years? Ideally, if we had all of the money in the world, we would build high-tension power solution for the end of the cycle and developing different kind of big, big centers. In the middle of a cycle of a cycle, we would be able to raise more money and deploy to buy data centers that are already running, not only for Bitcoin mining, but also for computing power and different kind of source in different kind of sources. At the beginning of a cycle, we ideally would like to grow our mining power and continue adding and being more efficient for Bitcoin miners.
Everything that we talk about these next four years, again, it's forward-looking information. We will announce different kind of solution in order to put in place our plans. So now that I showed you that the world is fantastic for us, you could tell me, what about the stock price? The public miners recently, for the past few days, maybe last week, 10 days, we are all in the red. Why? I would say first because people are more interested in going to the source, first buying BTC, pure Bitcoin, then buying the ETF or buying companies like MicroStrategy. They are all exposed to Bitcoin. It's an interesting bet, and this is what kind of thing we have seen in the market.
I think that it's also coming from a possible wait-and-see from the market about public miners. Like, the halving is coming. They will want to see what's, what's happening for them. There is this quote, for example, from Warren Buffett. It said, "Once, the tide retracts, we see who is swimming naked." That's not us. That's not SATO. So when green? Honestly, I have not the answer. I don't know the timing of it. What I know for sure is that the halving cuts supply. At a time where people are buying more Bitcoin, ETF are buying more Bitcoin, companies are buying more Bitcoin, some countries are buying Bitcoin mining, are buying more Bitcoin. And at the same time, efficient miners like us make more margin.
Makes more gross profit, and it will show in the stock market, in shareholders, the benefit of being a publicly listed companies. A question you could ask also is, why you are not one of this list on the left? Why not, they are all great companies. We love them. What we know is that we are today at the place they were before. In the last cycle, you have the newest, miners who've been able to raise money and deploy capital during the last cycle of a bull and a bear market. We think it's bull and bear are common in the industry, or older ones who started to be listed in 2018, 2019.
We are at a place where everything is open in front of us. We know how to grow. We know where to go. We know how to do it, with whom to work. We've shown that we were able to do it with success in the past, and we will continue doing it at scale in the future. I will now give the stage to Kyle Appleby, our CFO, and he will present the first part of the financial highlight for 2023, and then Fanny Philip will join us to talk about different kind of information.
Thank you, Romain. I'm pleased to report our financial highlights for 2023. And just to note, these are all in Canadian dollars. So you can see our revenues very positively grew up to CAD 17.5 million in 2023. With the acquisition and installation of new mining equipment, we earned 260 Bitcoin compared to 86 in 2022, which is an increase in over 200%. And our revenues from digital assets earned increased about 289% to about CAD 11 million. The increase in price of Bitcoin, obviously, attributed to a lot of the increase as well, going from $16,000 on January 1st to about $42,000 on December 31st. So we got 65% increase in total revenues, so growing to CAD 17 million.
6.6 million of that was hosting revenue, which we ran for the first six months of the year, and then we ceased hosting equipment and used all the power for our own mining equipment. Cost of revenue includes site costs, which are mainly electricity, which was approximately CAD 9.7 million, and the balance, depreciation and salaries going to the cost of revenue. The increase obviously followed our increase in mining power, so we consumed more electricity, using up to 20 MW in 2023, compared to 10 MW in 2022. Gross profit increased to 29% from 2020 from 22%, showing an increase in efficiency for our company as we mine more Bitcoin at higher prices. Operating income takes our gross profit, less share-based compensation, G&A costs, as well as unrealized revaluation of our digital assets at the end of December 31st.
So for 2023, we had an unrealized gain of approximately CAD 500,000, compared to 2022. There was an unrealized loss of about CAD 2.1 million on the revaluation of digital assets. Net income, we achieved a positive net income of CAD 776,000. As you can see, a tremendous growth from a loss of CAD 8 million in 2022 and CAD 1.7 million in 2021. So net income also reflects interest finance costs, as well as unrealized gains or losses on foreign exchange. In 2022, there's also an impairment of some equipment we had.
And then EBITDA, which is a non-IFRS measure, you can see, we achieved CAD 4.2 million in positive EBITDA yet compared to a negative EBITDA of CAD 5.6 million in 2022, which is a great achievement for us. As well, we had a positive operating cash flow of CAD 1.8 million in 2023. So we're very pleased with these 2023 financial results. So our next slide here, we have, again, in Canadian dollars, these are non-IFRS measures, which are these key performance indicators for us.
So first, we have Compute Power Profit, which is the true mining profit for SATO, which reflects our gross profit, and we remove all revenue expenses related to the hosting, as well as removing depreciation. So you can see a nice 341% growth there compared to 2022 to CAD 5.2 million, which is, again, a big achievement for us. And we have, as mentioned, a big growth in EBITDA to CAD 4.2 million and Adjusted EBITDA up to, as well, CAD 4.2 million. Adjusted EBITDA takes EBITDA and removes non-cash items and one-time charges. So you can see a 205% increase in Adjusted EBITDA. So these three performance indicators, very proud of. We did a great job in 2023, and hope to continue.
I'm going to give you a nudge up on the cash position over the last two years and an update on February 24, which is the date of our latest operational update that you can see every month. So if we go back to 2022, we have 26% of cash and 73% of digital assets, which isn't what is important to understand; it's at that time, in unit of digital assets, we had 44 Bitcoins. For a BTC price as of December 2022, you have the number below. The price in USD was $16,000.
Now, if we go on 2023 numbers, the number of Bitcoin, Bitcoin order, at the end of year was 40, but the price increase through the year, that the ending price was $42,000, which changed a bit the cash allocation, cash position, with 51% being digital assets and 49% being cash for a total of unrestricted and restricted cash and digital position of CAD 4,400,000. Now, if we look at the situation of February 29, so 12 days ago, the price of the BTC was $61,000. As Romain mentioned earlier, now it's $72,000. So it doesn't take into consideration this 18% increase over the past 12 days. So if we go back in time, February 2024, we had 52 Bitcoin, as was published in our PR, for CAD 4,200,000 and CAD 1,600,000 of cash, unrestricted and restricted for a total of CAD 5,800,000.
So that's something to not forget to take into consideration. You should look at the unit, the quantity, and multiply by the price of the day you want to use. Because, as you can see here, the evolution through December 2022, 2023, and of today, the price of Bitcoin has a big impact in our cash and digital asset position. On the next slide, Romain, please. We're going to have a quick look at our capital structure as of December 31, 2023. So we provide a number for basic shares outstanding, options, and warrants for a total of fully diluted shares outstanding of 91 million. And we provide the share price of the last closing date, which is yesterday, of being 46 cents. So you can find us again on TSX-V, with the ticker SATO and OTCQB:CCPUF.
Thank you, Fanny. Thank you, Kyle. Look, the presentation is nearing the end, at least for the slide and the deck that we have done. Again, what are we showing? In the past, we are efficient. We are making net profit. We are EBITDA positive, operating cash flow positive. We showed that we were able to grow in different kind of situation. This is the past. Now we're focusing into the future. How can we grow in the next four years? How can we do it with SATO, a publicly listed entity in Canada? We are Bitcoin-focused. We keep, and we tend we will keep, focused on Bitcoin. This is why we exist, and we want to continue growing with Bitcoin mining, but with also with everything software built on Bitcoin. We think we are at the verge of a massive Bitcoinization.
Again, we can't tell you when, but we want to be able to serve this, this new and nascent industry by mining and securing the network, and also by working on different kind of software. We started since 2017. We have history. I am myself an entrepreneur for the past 25 years. I've run lots of, lots of companies. And now it's really the time to deploy and put SATO on the map for the next four years. We're efficient. We are high-performance, publicly listed, which is a great way to have access to capital and to put dollars into our ideas and vision. And we are ready for the next phase, of course. We're really, really happy that you were here with us today. You can see here on the picture, you see Jean-Sébastien.
He's our first employee, from 2017, 2018, and he's managing miners with, you can see on the iPad, the software that we have developed in order to be efficient on how we run Bitcoin miners in our, in our company. We will now take some questions. We have the chat open. We had a form also available for people to leave questions. Anyone? So I see a question about how to expand in Joliette. So we are mining our data center. Number one for Bitcoin mining is in Joliette. It's in Québec. And Québec, since 2018, has a moratorium on building new data centers for crypto mining.
We are not planning at this moment to expand in Canada, in Quebec, but we have ways to continue expanding and improving our fleet of miners in our center, number one, and also to find other centers in different places in the world where we could have access to energy at scale, well-priced, and from in the right form. That means being stable. This is really where we are focusing on for growing our mining power or computing power.
I see a question in the form regarding the curtailment that we have to do in Québec. Again, I'm going to re-explain what is the curtailment. So it's when we give back the energy to the grid. So it's something very beneficial for the electrical provider. So as soon as they need, we stop. We are probably the only one industry in the world where we can turn off our equipment and give back the electricity for the population needs. So in Québec, since it's a cold area during the winter time, we curtail during the winter when it's needed based on the temperature. So they send notice, and in a few seconds, we do curtail, not 100%, but depending on their need.
So in our model, we always plan the maximum as of our contract, which is 6% of the total hours during a year. But based on the history, it's data that we publish in our MD&A. So you can find the detail in our SEDAR annual disclosure. But 2022, we had to curtail for an equivalent of 1.61%. And as of now, which we disclosed in our February PR for the operational update, we curtail for around 0.5%, so 0.51%. So obviously, it depends on the temperature, but that's to give you an idea of how we operate in Québec.
I'm seeing a follow-up question also about raising capital and for what projects. So, it is clear right now, we are not raising money. We have not announced anything publicly. We have shown with our results that we don't need to raise money. However, we live in a world where if we want to grow and if we want to expand, we need to have capital, to deploy capital for two types of investment. One, for the infrastructure, we are transforming energy into computing power. We need to buy substations, transformers. We need to build data centers. That's one kind of investment. We can finance it with equity or with long-term debt. So the second type of investment we need to make is about buying the computing power, the mining rigs for Bitcoin mining or different kind of computers if you wanted to do, HPC.
Right now, we are not in this position. We are looking at the market. What we said in our presentation, which is important, is that we have everything in place to be able to get access to capital via equity or via debt. And we intend to use them all in order to go to where we want to go in the future. But again, we will announce raising money and deployment of capital, when it publicly happens. The things that we want to do is to make sure that we create always positive dilution. It's a company that I own. I'm the biggest shareholder of the CEO. We and the first shareholders, we are making sure that we are not going to over-dilute future shareholders.
So we have this kind of like mentality in place where we want to make sure that we can go deploy capital the right way, being always very hands-on and focused on efficiency because it's more important to build for the long term rather than just go to where the market is going. And now that the Bitcoin is at these prices, we will see what we've seen before, the same kind of craziness around this business where people are going to buy whatever for whatever price. And our knowledge will be to be efficient and to know what to do and how to grow in this environment, either it's a bear environment or a bull environment. We have seen them, and we are going to build on top of it to make sure that we can go to the next phase of success.
Regarding the area that we are looking for, so, U.S., Africa, South America is in the question. So it's always a question of risk and reward, aligned with, as Romain explained, creating added value for the shareholders. So, in some area, you have political risk. In other area, you have different price of electricity. So it's a different metrics that are taken into consideration in order to create and build projects that create added value for the shareholders and that can have an earning per share increase, over the year.
With that, it's not only simply cost. I can see on the, on the question, it's not only simply cost. Yes, it's an important point because we, Bitcoin miners, more than 80% of our costs are electrical costs. So we need to make sure that it's low, but we also need to make sure that it's stable. Most of the time, most people are focusing on the price per kilowatt-hour. But it's, again, more important to see how long your data center can run on a day basis, but also on a long-term basis. We are in a long-tail game. We are making Bitcoin with Bitcoin miners, rigs that we bought a few years ago.
Most of them, some of them are fully amortized in our mining facilities. This is why we have these kind of results. So we need to be able to play and find new sites to expand. We have different kind of, different kind of ideas in mind of where we can find energy at scale, the right type of energy. If you have a project, please contact us. You can scan on your, on your screen our QR code. I think it's a link to our LinkedIn. We are open to have a discussion.
I think all the questions in the form that was sent before were answered. Please, for the next live cast, don't hesitate to send your question in advance as well.
Well, let's give it another minute in case someone. Last time, we had last-minute questions. I want to make sure we don't miss them this time. All right, everyone. So this concludes our presentation. Thank you very much for being here with us. Again, follow us on Twitter, follow us on LinkedIn. We give live news and information about who we are, what we do, where we're going to. And of course, our website where you can subscribe to our newsletter also if you want to receive information. Thank you very much.