Welcome to SATO Technologies, our new, live cast, in order to present our Q3 2023 results, and also to give you an update of the company and the direction of where we are going to. I am joined today with, Fanny Philip, our COO, and Kyle Appleby, our CFO. Before I start, obviously, you know how it works. The forward-looking statement, everything that we present here is forward-looking information. I'm not going to spend more time. I know that everyone here, knows how it work. Again, today we will talk about SATO, where we are, what we have achieved, until now, and where we will go in the future. We will spend more time, talking our Q3 financial results, outstanding results.
We will look at the comparables also on the industry, not only for publicly listed miners like SATO, but also on different kind of variables such as the price of electricity. We will have a session of question and answer. For the people who doesn't know us, we are SATO Technologies. We have been created in 2017, more than six years ago, even seven years ago. We are a Bitcoin miner at the core. We are managing 20 MW of energy, that gives a Bitcoin power of 0.15% in the total in the world. That's what we represent with our 20 MW. To give you an idea, that's around 6,000 computers.
In 2021, we decided to get listed on the public market in Canada, and we are listed on the TSXV, under the ticker SATO, and in the US on the OTCQB CCPU.F. Why we went listed is because we are infrastructure people. We are transforming energy into computing power, and in order to do that, it needs investment in CapEx. CapEx in two parts, one, for our infrastructure. We transform energy, we build data centers, we create hash, we have a cooling system. It costs money. We need to invest in that. The second CapEx that is important in our business is buying of the computers, this famous computing power. This is what you see on the screen in the image. We have 6,000...
On 6,000 of those computers, and we need to also deploy capital in order to buy them. Being a publicly listed company is an extremely great vehicle in order to raise money at scale, because we have big goals for the company. We went from 2 MW to 20 MW. We wanna do another 10 times our growth minimum in the next 15, 20, 25 months. It means that we will need to reach 200 MW of energy, and we will need to raise more capital. Being listed, we have different ways of raising capital or having access to capital. The first thing is that we can do equity, as you know, on the stock market. We have different avenues in order to do it.
We have private placement, base shelf, ATM, listing, and we are working on different kind of solution. We have always managed a company to really do positive dilution in every time we were doing raising of capital and equity. The second way where we can raise and have access to capital is with debt. We have done in the past an amazing debt with our partner in Switzerland called Sygnum. And we will probably continue looking in that way to continue having access to more capital to go. And the last thing that lots of people, most of the people tend to forget, is that we can use the capital that we produce for our own mining center.
With 0.15% of the total network of Bitcoin, our company produces around 36 BTC per month. You can see on our website. You can go on our website with www.buysato.com. We publish and subscribe to our newsletter. We publish our results every month, our production results every month, and you can see really in the detail what we produce in our company. And that's something that is great to continue using for developing the company and or to hold, as we also want to have Bitcoin on our balance sheet. We are also now in a position where the market has evolved with something new that you have probably heard called AI and HPC. HPC standing for High Performance Computer.
We believe the demand will be very important, as everyone know, for the start of computing power, and we believe that we, Bitcoin miner, have a role to play in this new evolution of the market. This role is to transform energy into computing power. This is our knowledge. This is what we do for a long time, being very efficient, and we will propose and give solution to the market in this new vertical for the company. It has also an interest for a publicly listed miner like us, is that it gives us another cycle. We are not only based on the Bitcoin cycle, we can now also work with the AI HPC cycle that is less dependent on the price of the Bitcoin or the volatility of the Bitcoin.
So what you can see here is really the strategy of growth for the company, going from 20 MW to 200 MW. One thing that differentiates us from others is that, again, we own our own infrastructure. We are not the only one, of course, but in the market, being efficient is the only way to be, to survive the different events that are coming in Bitcoin, such as the Halving. The Halving being the block reward being divided by two every four years, it's coming in around seven months. And in order to be efficient, you need to have no intermediary between your energy and your computing power. This is what we have built.
Now that we are efficient and that we have proven to be efficient, we just want to go as big as we are. Because in the, in the market, it's not the biggest to survive, it's the most efficient. But once you are efficient like us, we want to go as big as we can. We will do it in two ways, in two tracks. One, Bitcoin mining. It's our history, it's our knowledge. We are a big believer on the Bitcoin network, on what Bitcoin is offering, as a tool, and we will continue growing, and scaling, this path. And as I was saying, we will also add computing power for HPC. We will make announcement, in the coming months, as it arise. We have also on the side, we are working on L2 infrastructure.
I'm not going to spend too much time here, but it's also something that is very important and interesting for a Bitcoin miner to be involved with because it brings technology, and computing software technology around Bitcoin. We have seen the recent development around BIP 300 or BIP 301, where Bitcoin miners, by having capacity of software development, could be more performant in the future. It's a way for us, this L2 infrastructure, I'm talking about Lightning Network, Ordinals, for example. It's a way for us also to get more fees, in the transaction and to be more performant, considering the next halving, and the next halving, and the next halving. Again, you can go to our website, www.sato.com, look at the product and the project that we have developed, in this part.
The vision and that we have put in place has proven to be extremely beneficial for us and our shareholders over the years. As you can see here in this chart, we are showing the increase of value of our shares since the beginning of the year. So from January to first of November or third of November of this year, November twentieth, sorry, of this year, we took 308% growth on our stock price. It means that if you had invested CAD 100,000 at the beginning of the year, you would have CAD 308 today.
What is interesting is also in this chart is not only the value production on our share price, but it's also that we are more performance than Bitcoin. And truth be told, it's the case for most of the publicly listed miners. We are following Bitcoin. When the Bitcoin is up, we are going up. When the Bitcoin is down, we are going down. However, we are overperforming Bitcoin. All of the public Bitcoin miners or most of the public Bitcoin miners. This is also a trend that is very interesting, and this is also a trend that makes people very interested into investing more into publicly listed miners like SATO Technologies. There is an index, Valkyrie Bitcoin Miners, that is trading different kind of public miners or publicly listed miners like us.
You can see we are also overperforming. What I would like to add in this slide is that, again, we are at this transition, in this pivot time where we are right before the halving. We are in a position where we see the end of the bear market. Maybe we have even started a new bull market. We don't even know. But we are in this unique position in time, where the market is possibly, and it's of course my vision, but it's really possible that we will see a huge increase of the Bitcoin price and by extension, the publicly listed miners. Why? We have the halving event. We are going to create twice less Bitcoin, meaning that the supply will be divided by two.
At the time where people are going to start buying Bitcoin again even more, mainly with the possibility of the ETF being approved in some point. Billions of dollars will be injected into buying buying Bitcoin at the time where the Bitcoin supply will be divided by two. That's why people think the price of the Bitcoin will increase, because it will be less to buy and more people buy. So this time is important for us because we think we are going to be the next big Bitcoin miners who are listed on the Nasdaq, who are senior miners. We are junior today. If you look at our cap table, we are junior miners. We are on, like, 40-50 million dollar valuation.
But we are qualifying, we are in the direction of going senior, and we believe we are going to become a senior in the next bull. We have been preparing for that for the past 7 years. The time is now. This is a slide, you can look at it on the live cast, giving more precision on all of the Bitcoin miners. You can see we are ranking number 1, such as most of the ratio when you look at the other publicly listed miners, such as efficiency, we are most of the time in the top 3 or the top 4 performing Bitcoin miner. I will now let the stage to Kyle, our CFO, to go over the Q3 financial results. But before, one last thing.
Q3 for us was a pivot quarter, a pivotal quarter. We became a 100% self-mining for Bitcoin. It was a huge achievement for us, for our 20 MW. We have managed to do it with managing a very low dilution for our shareholders. Again, what I was saying, talking about, we have long-term vision. We are committed to the company. I'm personally one of the biggest shareholder. I'm not selling my shares. I'm here for the long run. And we are really working toward the shareholders and creating value for the shareholders. This 20 MW that we are running is 0.5% of the total Bitcoin networks that we run. We made it with very low dilution, meaning very low capital injected.
We are probably one of the most performant miner in terms of investment made to achieve this kind of mining power, not only for our infrastructure, because most of the miners are also not owning the infrastructure of their hand to place somewhere. We own everything. There is no intermediary between us and our computing power, and at the same time, we own 100% of our computers. This is unique position, and this quarter was pivotal, and this is now the beginning of a new era. Again, 100% self-mining, 20 MW, and now growing at least 10 times in the coming months. Kyle?
Thank you, Romain. As mentioned, I'm gonna go through on this slide a summary of our latest results for the three and nine months ended September 30th, 2023, compared to the same periods in 2022. We're really proud of our strong results, which you can see are positively trending in the right direction. With the increase in mining equipment this year and we have really increased our revenue. We increased 46% for the three months and 87% for the nine months ended September 30th, 2023, compared to the same periods in 2022. Revenues typically have been split between our self-mining and hosting revenue, where we operated equipment on behalf of others. But since July 2023, as Romain mentioned, we are now 100% self-mining.
So we mined, we earned 93 BTC for the three months and 152 for the nine months ended, compared to 32 and 57 for the three and nine months ended September 30, 2022. You can also see the growth in our gross profit due to growth in revenue, and we were really able to keep our costs down, which you can see our gross profit percentage increased to 18% and 26% for the three and nine months ended September 30, compared to 6% and 15% for the three and nine months ended September 30, 2022. So that shows our strong improvement in efficiency compared to the previous year quarters. Expenses in 2023, we are also focused on keeping our G&A down.
We took the measures to reduce the costs, such as, reducing hours for, employees and consulting consultants, decrease in the marketing and travel and, investor relations. For the three months ended, costs, these expenses increased a little bit. That's specifically due to, some professional fees where we refinanced our loan agreement. As well, we issued, some warrants, related to our Center 2, with a value of CAD 182,000. So that shows up in the Q3 expenses, but generally, they're down, from the, same periods in 2022. Other charges, the main components there being our finance costs on our loans and leases.
You can see at the end of the day, our operating income for the nine months, positively CAD 333,000, and we have significantly reduced our net loss for both periods, the three and nine months, compared to 2022, and achieving a strong EBITDA for the nine months and positive EBITDA for the three months ended 2023. Our next slide here shows here we have some of our key performance indicators, mining profit, which highlights the performance of our core business, EBITDA and adjusted EBITDA. Adjusted EBITDA is showing us EBITDA adjusted for non-cash items as well as adjusted for non-recurring one-time items.
So in 2023, you can see our year-to-date numbers are really strong, again, positive, trending in the right direction, really outperforming our year-to-date numbers from 2022, our full year in 2022, compared to so far in 2023. Okay, on this slide, you can see comparing December 31, 2022, to where we are at September 30, 2023. These are snapshots at a point in time. So you can see in December 31, 2022, the Bitcoin price in Canadian dollars, CAD 22,000, September 30, CAD 36,000, and now at November 27, CAD 51,000. So if we took the same snapshot now, our price of our digital assets would be significantly higher.
More cash at the end of September 30th, 2023, given that we had a loan refinanced in July, so more cash. There is a component of the loan that keeps restricted cash, 20% of our loan, so we have that cash component there. As well, at the end of December, we had 44 BTC. At the end of September 30th, we had 35 BTC. On this slide, you can see our strong capital structure. It's really tight. We try, as Romain mentioned, not to be dilutive and keep our share structure is tight here. We have 65% of the securities are owned by insiders, officers, and directors. So that shows their strong commitment to the company.
We're very proud of our structure here and not diluting our shareholders.
Hi, everyone. I'm gonna discuss on a question that came frequency. It's the growth margin. How much it costs to produce one Bitcoin in our center. So as Romain mentioned at the beginning, we produce monthly result where you can have a chart. I mean, future, but chart with historical electricity cost. So it's an information that we provide every month. One of our focus is to be very transparent in every data that we provide. So obviously in our monthly report, but in the MD&A that we have as well to give more detail, more explanation on every number that are in our company. So as you can see on the right, you have the all-in electricity cost.
So when we said all in, it include the cost per kilowatt hour, so the consumption of 20 MW center plus the premium that, that we have, we have to pay. On the top of this, we have a site operation which include obviously the, the, the rent of the building, insurance of the, the building, because as we own our infrastructure, electrical infrastructure, we need to ensure and have a, a proper insurance coverage for our assets, and some operating salary. As you know, we are very, a very lean team, but it show here the operating salary, so it's the people that work in, in our center.
So as of, I mean, another thing that you see, it's the gross profit for July was around CAD 11,000, CAD 10,000 in August, and CAD 7,000 in September. Why we have this small, small decrease is because between June and September this year, the total hash rate network increased for more than 10%. So obviously, that has an impact for all the public, not public, but all the miners. That mean for the same compute power, we produce a bit less Bitcoin every day. On the average, year to date, our weighted average, so you have at the bottom right, you have the cost to mine one Bitcoin. So on the next slide, please. Thank you, Romain.
So that's another slide where you see this impact on the increase of the total network. You see the curve that decrease over the time, but because on the opposite, you have an increase in the total network hash rate through the month. As I said, between only this year, June to September, it's an increase of 10%. What we show in this slide is the Bitcoin produced or generated per equivalent of exahash. So when we do the calculation, that's something that we do in our monthly report as well, is we calculate how much Bitcoin we produce per exahash, and this metric is used and commonly used to compare as the efficiency on our peers.
So as you can see on the right, for the year to date, so for the year to date, 2023, we rank number three. So for an equivalent of 1 EH, we produce 83.59 BTC. So, you have on the left, some of our peers, but just to show you the trend and that decrease over the months is something that we all have. It's linked to the increase of the network. If you have any question, I'm looking, we could ask some of them. But again, to conclude, we are no operator, as Romain explained, we own our infrastructure. So the mining equipment, the transformer, all the electrical components that need to be installed to run the facility.
On top of the 20 MW that we have currently running, we also own 6 MW of electrical component ready to be deployed. So that's something you might have seen in our financial statement and in the MD&A. So we are currently in a current position where we can actually deploy because we have the electrical equipment to do so. We have a track history since 2017, listed since September 2021. What we do, we produce compute power, as Romain explained, and that's our expertise, to manage electricity in order to convert this electricity to compute power. Again, you can find us on TSXV, ticker SATO, and on the U.S. OTCQB, CCPU.F.
As you know, we are at the end of the month, 29, so stay tuned for our November monthly update. As you know, the price of Bitcoin increased. There was an incremental increase in fees during the month as well, that's so all the miners enjoy the month of November. And, that's I think the conclusion of my part. Romain, if you have any any-
Thank you, yeah. Thank you, Fanny. Thank you, Kyle. Look, that was a very good wrap-up and conclusion for this presentation. One thing I would like to add is, we have an amazing team. Behind every success, this is a team, and you've shown and we've seen today what kind of results it can give. On the screen, you can see Jean-Sébastien, JS, he's our employee number one since 2017. He runs our data centers in Joliette, where we mine in Quebec. Fanny is bringing also a long-term experience with our team, with Ben, with Lydia. We have also working in our team, Cedric, Daniel, of course, developing all the softwares that we have. Simon is also a quite mathematician.
Kyle, our CFO. We have an amazing board members who are very professional, very keen into making us going to the next step. And that's really one thing that I wanted to stress, we have an amazing team, and we are a team made for, the next goals of the company. We are now going to take questions if we have more.
Yeah, and I think we answered one link to the cost, so monthly production, again, that we're gonna publish in November one, in a few days. On the growth plan, that's what Romain exposed at the beginning. And I think that cover the different point that we have here.
Okay. We are going to maybe give another minute if someone is typing and wants to add a question, and then we will conclude this live cast. Again, thank you for being here. If you are following us from a long time, and/or if you are new, thanks a lot for listening to us. We are on the verge and the path of a new chapter for growth of our company. We are all very excited or energized, I should say. It's more in line and with what we do. It's also an amazing time for Bitcoin, for technology, and we are very, very happy to participate in this. You can follow us also with our QR code. Yep. Thank you-
Hi, Romain, it's Balmi here. Hi.
Oh, okay, Balmi wants to take a question?
Yes, thank you. I just wanted some clarity. I did DM Kyle, but in your slide with direct costs, you have a weighted average that shows $1,465, and then a weighted average of $91,196. Is that supposed to be split between Canadian dollars and U.S. dollars, or am I missing something there?
No, this is split between the energy consumption and the energy, power that we, that we have. Most of the time, it's... I mean, in different places in the world, you can pay for your kWh, and you can use for the total, power that you're using, like 20 MW, and that results in two costs that needs to be added. So we are sure it is two cost.
To add some understanding in Quebec, I mean, our site is in Quebec, Canada, and all the electrical contracts in Quebec are government contracts, so all the miners that are in Quebec, we have the same contract. So we have some of our peers and public listed that are based in Quebec as well. So that's the same energy and the same type of contract because it's government.
And also, we do this split because some Bitcoin miners are only talking about the kilowatt-hour price. So we wanted to be able to compare apple with apple.
Yep, that makes sense. And my next question is also on the next 12-18 months in terms of expansion. Do you have a path forward there and a strategy? I mean, I know an equity raise is coming, so I'm just curious what your strategy is.
Well, the path is to-
The path forward.
Yes, yes. The path is to acquire more power, to develop more power. So we have different ways by doing this. We can sign PPAs, we can find sites who are already working by way of acquisition, we can develop our own new sites. We are working on lots of things. Obviously, I can't announce anything yet. But again, follow us on our Twitter, go on LinkedIn and follow us. We are publishing, we are very open all the time. But yes, we have a path for growth. We have proven in the past that we were pretty successful at doing what we said we would do. So now, let's see where we go in the next growth phase.
I will jump again on the electricity. Maybe, Romain, you can just put the slide number 12, please. Just to make sure, I mean, left, you have the all-in electricity cost. So that include the kilowatt-hour cost. So for the 9K is including the 15K, and in the difference between the two, it's that you have the premium, as Romain explained. So just to make sure, it's cleared. And again, the reality why we split, as Romain explained, is usually in the U.S., when they have PPAs, they're only talking about the kilowatt-hour cost.
In order to help compare our peers, it's data that we provide in order to be more specific.
Thank you.
Good. Thank you, Balmi. And by the way, Balmi, follow also Balmi on Twitter. He's also one of the few analysts following the market and giving great information about the Bitcoin miners. So this is if we don't have any more question, we will end this live cast. Again, thank you for being here. Subscribe to our news. We will... And we have done, and we will continue doing regular update via video like this. Thank you very much.
Thank you.
Thank you.