Q4 2025 HIVE Digital Technologies Ltd Earnings Call

Nathan Fast: Hello, everyone. Welcome to today's webcast on Hive Digital Technologies financial results for the quarter and year ended March 31st, 2025.

Hello, everyone welcome to today's webcast on how digital technologies financial results for the quarter and year ended March 31, 2025. My name is Nathan fast director of marketing and branding at Hive and I'll be your moderator for today's call.

Nathan Fast: My name is Nathan Fast, Director of Marketing and Branding at Hive, and I'll be your moderator for today's call. Before we get started on slide two, I would like to briefly note the disclosures for today's presentation. Except for statements of historical fact, this presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as expects, believes, and similar expressions identify these statements. Actual results could differ materially and we disclaim any obligation to update them except as required by law. For a full discussion of risk factors, please refer to our most recent SEC filings at www.sec.gov.

Before we get started on slide two we'd like to briefly note that disclosures for today's presentation, except for statements of historical fact this presentation contains forward looking statements within the meaning of the U S. Private Securities Litigation Reform Act of 1995 words, such as expects believes and similar expressions identify these.

Statements actual results could differ materially and we disclaim any obligation to update them, except as required by law for a full discussion of risk factors. Please refer to our most recent SEC filings at Www Dot FCC Dot Gov and.

Nathan Fast: In addition to discussing results that are calculated in accordance with GAAP, we will also reference certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income, and free cash flow. Management uses these metrics to evaluate operating performance and believes they provide investors with additional insight, and they are presented for supplemental purposes only and should not be considered in isolation from GAAP results. Reconciliations to the nearest gap measures are included in the appendix to this presentation and in the press release and Form 8K furnished to the SEC.

In addition to discussing results that are calculated in accordance with GAAP. We will also reference certain non-GAAP financial measures, including adjusted EBITDA adjusted net income and free cash flow management uses these metrics to evaluate operating performance and believes they provide investors with additional insight and they are presented for supplemental purposes only.

It should not be considered in isolation from GAAP results reconciliations to the nearest GAAP measures are included in the appendix to this presentation and in the press release and form 8-K furnished to the SEC.

Frank Holmes: On the next slide, I'm pleased to introduce today's presenters, Frank Holmes, Executive Chairman, Aydin Kilic, President and CEO, and Darcy Daubaras, Chief Financial Officer. I would now like to hand the presentation over to Mr. Frank Holmes for a macro recap of the quarter. Frank? Thank you, Nathan. So let's do a macro recap. Starting the big picture, the transformative year, the most incredible year and Hive's history outside when it first went public, become the first crypto mining company. And it's really quite impressive how the team is gelling. And let me walk you through why this is a transformative year for Hive.

Speaker Change: On the next slide I'm pleased to introduce today's presenters Frank Holmes Executive Chairman I've been president and CEO, and Darcy Dewberry, Chief Financial Officer.

Speaker Change: I would now like to hand, the presentation over to Mr. Frank Holmes for a macro recap of the quarter Frank.

Frank Holmes: Thank you Nathan so, let's do a medical recap starting the big picture of a transformative year. The most incredible year in <unk> history outside when it first went public become the first crypto mining company.

Speaker Change: It's really quite impressive.

Speaker Change: The team is gelling and let me walk you through why this is a transformative year for <unk>.

Speaker Change: Thanks.

Frank Holmes: Next visual really is important for investors to understand the concept that they say that Bitcoiners buy the tips, stock the coins and hold on for dear life. Well, clearly, what you can see here is a daily volatility of HIVE is greater than Bitcoin. And micro strategy, now called strategy, is double what Bitcoin is on a daily basis. And over 10 days, it's even more so. So it's really important when you look at HIVE, and we have lots of people like to try to trade like Bitcoin, etc. It's it's almost like you want to buy it.

Speaker Change: Next visual it really is important for investors to understand the concept that they say that the corners by the chip stock the coins and hold on for Dear life, well clearly what you can see here is a daily volatility of five is greater than bitcoin and micro strategy now called strategy is double what bitcoin is on a daily basis.

Speaker Change: And over 10 days, it's even more so so it's really important when you look at five.

Lots of people like to try to trade like big point et cetera.

Speaker Change: It's almost like you want to buy but its up 5% in a day that's about the best date, but it was down 5%. The math says is trying to buy and that's really contrary to most people think except where I've fallen.

Frank Holmes: It's up 5% that day. It's not the best day, but it was down 5%. The math says it's time to buy. And that's really contrarian to how most people think, except for I've found that the Bitcoin ecosystem has this concept that talks about it so often, everywhere, every day. Reddit, X, LinkedIn.

One ecosystem has this concept that talks about or so off to everywhere everyday red it's ex Linkedin.

Frank Holmes: Next slide. Well, I mentioned this is a transformative year, but to make it a transformative year, you need great leadership. And Hive has expanded its senior leadership. And two of the key people that are helping scale our business is Greg Tavares, as Greg is a tremendous experience in Canada in building data centers, in particular to run Buzz, be the president, which he is, the chief operating officer. And and so we take a look in the past six months, the run rate of our HPC, high-performance computing business. using NVIDIA chips has doubled. The run rate has doubled, and it'll double again.

Speaker Change: Next please.

Well I mentioned this is a transformative year that make it a transformative year give me great leadership and hybris expanded.

Speaker Change: His senior leadership and two of the key people that are helping scale our business.

Speaker Change: It's great to bars.

Greg: As Greg has tremendous experience in Canada.

Greg: In building data centers in particular to run buzz be the president, which he is the chief operating officer and and so we take a look in the past six months.

Greg: <unk> run rate of our HTC high performance computing business using Nvidia chips has doubled the run rate is double and it will double again and.

Frank Holmes: And you see that we made a serious press release this week on a major acquisition in Toronto, which is the financial capital of Canada, the biggest city in Canada, with tremendous infrastructure, intellectual capital, universities, noble lord for AI last year was from the University of Toronto. So having him join our team is just a wonderful statement about Hive and what we're doing. And then to build and acquire assets in Paraguay and acquire Bitfarm's assets in Fastrack, we were able to have Gabriel Lamas to join the team, electrical engineer, a person with tremendous high voltage electricity experience and understands the country.

Greg: <unk>.

Speaker Change: You see that we've made a serious press release this week on a major acquisition.

Greg: In Toronto, which is the financial capital of Canada, The biggest city in Canada.

Greg: With tremendous infrastructure intellectual capital universities noble Lord for AI last year was from the University of Toronto, So having him join our team is just a wonderful statement about hive at what we're doing and then to build and acquire assets.

Greg: In Paraguay, and acquire a bit foreign sources of bias truck.

Greg: We were able to.

Greg: Gabriel them us to join the team electrical engineer.

Greg: Personal a tremendous high voltage electricity experience.

Greg: It understands the country and his father as an engineer so.

Frank Holmes: And his father's an engineer, so that it's really deep in the bones and muscles of people like Gabriel to lead the charge. And he's been doing a spectacular run so far this year, that our growth rates have shocked a lot of people. They didn't expect us to be able to scale as fast as we're doing.

Greg: So it's really deepen.

Greg: Bones and muscles.

Greg: Like Gabriel to lead the charge and he's been doing a spectacular run so far this year that our growth rates are shocked a lot of people that didn't expect us to be able to scale as fast as we're doing next place I Love. This video it's a short term a short clip of drone going over.

Frank Holmes: Next, please. I love this video. It's a short clip, a drone going over the new assets that we have that's helped us surpass 11 exahash. If you recall, a year ago, it was less than 4 exahash. So it's moving and it's grooving. And it's very exciting that we're a serious investor in the country of Paraguay. And there's lots of other positive developments happening with the country. So you can see from this other picture with Aydin Kilic, our CEO, and Mr. Lamas, Gabriel Lamas, big guy, you know, 6'4", and all the muscle that's needed to scale our business.

Greg: The new assets that we have has helped us surpass 11 extra harsh if you recall.

Greg: Year ago, it was less than four axa harsh so its moving and its grooving and it's very exciting.

Greg: We are a serious investor in the country of Paraguay.

And there's lots of other positive developments happening with the country.

Greg: So you can see from this other picture.

Ivan: Ivan <unk> our CEO.

<unk>.

Ivan: Mr Alarm us Gabriel amongst big Guy six four and although most of those needed to scale our business and.

Frank Holmes: And the other person that's a real important wingman for him in running the facilities is in between Aydin and Gabriel, that's Carlos. So we're really happy where we're taking the business.

Ivan: The other person is a real important wingman for him.

Ivan: Running the facilities is in between.

Ivan: I didn't.

Ivan: Gabriel.

Ivan: Carlos So we're really happy.

Ivan: Where we're taking the business next please.

Frank Holmes: Next, please. Scaling, we're doing a sash rate with tremendous discipline, well-organized, building beautiful campuses. We've also been adding air conditioning to all the kids' schools that are near us because they have electricity, but they do not have the air conditioning that's necessary. So we've gone ahead as part of our strategy to be involved with the community, and we have lit up the downtown of Valenzuela, where we are, for 100 megawatts. So now women and children are safe in the streets at night, and the mayor has been very, very positive response from helping light up the streets.

Ivan: Scaling we're doing less harsh rate with tremendous discipline, well organized building beautiful campuses.

Ivan: We've also been adding air conditioning to all the kids schools are near Us.

Because they have electricity, but they do not have the air conditioning, that's necessary. So we've gone ahead as part of our strategy would be involved with the community and we have lit up the downtown of Venezuela, where we are for 100 megawatts. So now women and children are safe on the streets at night and the marathon.

Ivan: A positive response from helping to light up the streets next please.

Frank Holmes: Next, please. So this is another simple visual. Hive's future hash rate growth is going to double again by America Thanksgiving. And speaking from 11x a hash, now scaling at 25, what's gonna happen here is margin expansion. In particular, the revenue will grow substantially and at Bitcoin at $100,000, the revenue could be over $400 million on a run rate. But when we look at the margins of what we're having, they will expand substantially. On a historical basis, that's what scaling is about. So it's not to forget what we're doing in the Bitcoin ecosystem. Bitcoin a year ago was $65,000 average price, now 100.

Ivan: So this is another simple visual harvest future harsh rate growth is going to double again.

Speaker Change: Hi America Thanksgiving and so they came from <unk> the scaling of 25% what's going to happen here is margin expansion in particular, the revenue will grow.

Speaker Change: Abstention, <unk> and a big point of $100000 of revenue.

The $400 million on a run rate, but when we look at.

The margins of whether we're having they will expand substantially.

Ivan: On a historical basis, that's where scale is about so.

Ivan: Not to forget what we're doing and the bitcoin ecosystem Big point, a year ago was $65 on lower average price now of 102 years ago was 25000. So it's interesting to say its continuing to grow and we're now scaling with it next please.

Frank Holmes: And two years ago, it was 25,000. So it's interesting to see, it's continued to grow and we're now scaling with it.

Frank Holmes: Next please. The HPC, the high performance computing business is still exploding. I'm right now in Boston, I'm at MIT with 100 CEOs from 50 countries, bootcamp AI, and seeing how you build a business model, what used to take weeks now take hours. So it's been very exciting. And it's on the backdrop of this visual, when OpenShot came out in November of 22, it exploded with 1 million users. And very quickly, it was 100 million users. Unprecedented growth of the magnitude. And now it has a run rate of about 500 million users and so many on the $20 a month.

Ivan: The H PC the high performance computing.

Business is still exploding right now in Boston.

Ivan: The 100 Ceos from about 50 countries bootcamp, AI and seeing how you build a business model.

Ivan: Used to take weeks now take hours, so it's been very exciting.

Ivan: <unk>.

Ivan: On the backdrop of this visual.

Ivan: And shot came out in November of 'twenty, two it exploded with 1 million users and very quickly it was 100 million users.

Ivan: Precedent growth.

Ivan: The magnitude and known as a run rate of about five <unk>.

Ivan: <unk> million users and so many on the $20 a month and then there's the enterprise system. That's open is annual run rate.

Frank Holmes: And then there's the enterprise system that OpenAI's annual run rate as of June now is 10 billion. And some expect it to be a billion dollars a month by December of 25. So Hive is positioned and Hive is growing with this spectacular growth in AI.

Ivan: June now has 10 billion as some expect it to be a billion dollars a month by December.

Ivan: 25, so high this position at a high was rolling with the spectacular growth in AI next please.

Frank Holmes: Next please. So this is a transformative year. Hive is growing the forex and revenue to become 3% of the Bitcoin network. Hive is scaling its HPC AI business, acquiring a 7.2 megawatt Toronto data center, and we'll upgrade that from Bitcoin mining data center because that's all the power. and all the fiber optics necessary, dense fiber, to be able to expand that footprint. We made the announcement also we bought more clusters from NVIDIA. So Hive is also in this transformative year of expansion. It's gone through its move to Texas as head office. But more important, Hive has transitioned now from IFRS accounting reporting to US GAAP.

Ivan: So this is a transformative year hydro is growing the forex and revenue to become 3% of the Big network harvest scaling as HBC AI business acquiring a seven two megawatts.

Ivan: <unk> data center, and we'll upgrade that for a breakpoint binding data center because of all the power of this necessary and all the fiber optics necessary dense fiber to be able to expand that footprint.

Ivan: Made announcement also we bought more.

Ivan: Clusters from Nvidia So high.

Ivan: Also in this transformative year of expansion, it's gone through its move to Texas as head office, but more important the high this transition now from <unk> accounting reporting to U S. GAAP.

Frank Holmes: And that's been a tremendous amount of work on the accounting team. It's transformative for us because it allows you to compare Hive to most of the other US Bitcoin miners on an equal footing, simple basis.

Ivan: <unk> spent a tremendous amount of work on the accounting team.

Ivan: Transformative for us because it allows you to compare tied to mostly other U S. A big point miners on an equal footing simple basis ex police.

Frank Holmes: Next, please. Highest value bump in the upside potential, I think, by November, targeting 25x a hash. When you look at the pure average valuation, it's $100 billion per x a hash. So high upside potential is 7x. And I think that's why many analysts are calling it $7 to $10 in their forecastual stock price.

Ivan: Hi, its value bump in the upside potential I think by November targeting 25 extra harsh if you look at the peer average valuation is a 100 billion for Exxon So high upside potential as <unk> X and I think that's why many analysts are calling it seven to $10 in their forecast for the stock price.

Frank Holmes: Next, please. And a big picture, our year-end is March 31st. And Darcy and Aydin will give you a lot of granular quarter. But I want to highlight, it's transformative because we've changed our accounting practices and reporting. And with that, how did it look last year under GAAP? Well, we did about $115 million in revenue. $10 million of that was for the NVIDIA chips we have for high-performance computing. And that is expanding, as I mentioned, now has a run rate over $20 million. So it's doubled under the leadership of Craig Tavares. And the adjusted EBITDA is around $56 million.

Speaker Change: Next please.

Ivan: And a big picture our year end is March 31.

Speaker Change: And Darcy and I will give you a lot of regulators for a quarter, but I want to highlight its transform because we've changed our accounting practices and reporting.

Ivan: And with that how does the looked last year under GAAP, but we did about $115 million in revenue of $10 million of that was for.

Ivan: The Nvidia chips, we have for high performance computing.

Ivan: And that is expanding as I've mentioned now has a run rate over $20 million. So it's doubled under the leadership of.

Speaker Change: Craig to borrowers and the adjusted EBITDA is around $56 million and the gross operating margin is about $25 million next please.

Frank Holmes: And the gross operating margin is about $25 million.

Frank Holmes: Next, please. So some of the largest non-cash items in that transformative accounting movement from IFRS to GAAP is depreciation. It's still pretty high, $64 million, and the stock-based compensation was de minimis compared to our peers. It worked out to $11 million. And the revaluation of the digital assets, mark-to-market, will create unrealized losses and gains every quarter in addition to our investments. But some of the stuff is like a $5 million non-cash charge for currency volatility. So as we all know, in the past three months, with the tariff war, what's happened to the U.S. dollar? When you're going through these movements in the past year and having operations over nine time zones, five languages, it does create an impact the way GAAP wants you to express those translations.

Ivan: So it was one of the largest noncash items and that transformative accounting movement from <unk> to GAAP.

Ivan: Is depreciation, it's still pretty high $64 million and the stock based compensation.

Ivan: It was de Minimis as compared to our peers.

Ivan: It's $11 million and the reevaluation of the digital assets Mark to market.

Ivan: Create unrealized or realized.

Ivan: Realized losses and gains every quarter. In addition to our investments some of this stuff is like $5 million.

Ivan: Noncash charge for currency volatility so as we all know in the past three months with a tariff war was hopper to the U S dollar while you're going through these movements in the past year and having operations over nine time zones five languages.

Ivan: It does create an.

Ivan: And impactful way gap once you to express those translations. So these are some of those charges, that's all behind us from an equal footing and next please.

Frank Holmes: So these are some of those charges, but that's all behind us from an equal footing.

Frank Holmes: Next, please. So this is the most famous falls. It's in the Western Hemisphere and very close to it is the largest dam in the Western Hemisphere, partnered between Paraguay and Brazil and Hiva's leveraging green energy in Paraguay. The movie, The Mission, which made Robert De Niro and Jeremy Irons famous is one of the top 50 movies by the Vatican to watch because it's based on a true history and has to do with these beautiful spectacular waterfalls and... Catholic Catholicism spreading through Latin America.

Ivan: So this is the most famous falls.

Ivan: In the western Hemisphere, and very close to it.

Ivan: As the largest dam in the western hemisphere.

Ivan: Partner between Paraguay and Brazil.

Ivan: And hybris leverage and Green energy in Paraguay.

Ivan: It will be the mission, which made Robert de Niro and Jeremy Irons famous is one of the top 50 movies by the bad again.

Ivan: To watch because it's based on a true history and has to do with these beautiful spectacular waterfalls and.

Ivan: Yeah.

Ivan: Catholic Catholicism spreading through Latin America next please.

Frank Holmes: Next, please. So Crypto Education Enthusiasm Paraguay, there's conferences coming up, the president of the country is also a YPO member, Young Presidents Organization, and in September he's hosting an event for 150 CEOs from around the world on what makes Paraguay interesting and a great opportunity to invest in. I've mentioned this before, that Paraguay is very much aligned with America in many ways, and the president of the country went to the University of Columbia in New York City, also worked for the World Bank, so he really understands American institutions and global institutions, and has done a great job in having the country's currency go through an upgrade in the rating and the value of how they're running the country.

Ivan: So crypto education enthusiasm, Paraguay, theres conferences coming up the president of the country is also a wipe youll remember presence organization and in September. He is hosting an event for 150 Ceos from around the world on what makes Paraguay interesting.

Ivan: Great opportunity to invest in.

Ivan: I've mentioned this before that Paraguay is very much aligned with America in many ways.

Ivan: And the president of the country once the University of Columbia In New York City also work for the World Bank. So he really understands American institutions of global institutions and has done a great job in having the country's currency.

Ivan: An upgrade in the rating and the value of how they're running their country, but nothing is greater than right. Now is all the money, we're putting in and bitcoin mining beans. He is going to get U S. Dollars every month and that's very important because ended their utility energy companies owned by the government and having stable fiscal policies.

Frank Holmes: But nothing is greater than right now is all the money we're putting in. And Bitcoin mining means he's going to get U.S. dollars every month. And that's very important because in their utility energy company is owned by the government and having stable fiscal policies come from stable income. And so we're thrilled to be part of that growth.

Ivan: Come from stable income and so we're thrilled to be part of that growth next please.

Frank Holmes: Next, please. In Paris, I recently spoke and I said, Hive is not here to chase borders. We're here to build decades of digital infrastructure and decentralized freedom. We mine Bitcoin not for today's price, but for tomorrow's paradigm shift.

Speaker Change: And Paris are mostly spoken I said hydro is not here to chase quarters. We're here to build decades of digital infrastructure and decentralized freedom, we might big cleanup for today's price up for Tomorrow's paradigm shift now.

Aydin Kilic: Now I'd like to turn it over to our CEO, Aydin Kilic. Thank you. All right. Thank you, Frank, for that intro. Let's have an executive overview of the year to date, as well as some highlights from recent milestones. So it's been a stellar year for Hive. The headline is $56 million of adjusted EBITDA. We're trading at a $350 million market cap. And by the way, we have over $60 million of Bitcoin on the balance sheet, 610 Bitcoin in the treasury, 56 million of adjusted EBITDA on 115 million total revenue. So I think Hive is an incredibly attractive buy, especially with a strong catalyst to grow.

Ivan: Now I'd like to turn it over to our CEO I think Kelly.

Ivan: You.

Speaker Change: Alright, Thank you Frank for that intra.

Ivan: Hi.

Ivan: Overview of the year to date as.

Ivan: As well as some highlights from recent milestones.

Ivan: So yes.

Ivan: The other year for hi.

Ivan: The headline is $56 million of adjusted EBITDA, we are trading at a $350 million market cap and by the way we have over $60 million of decline on the balance sheet 600 kind of decline in the treasury $56 million of adjusted EBITDA on a $115 million total revenue so I think high.

Ivan: Is an incredibly attractive buy especially with a strong catalyst for growth this year.

Aydin Kilic: Our revenue was $105 million from Bitcoin mining and $10 million in fees. AI Revenue. We did hit 20 million ARR in May, so will continue to grow as we expand our HPC strategy. 25 million gross operating margin, so it has been a strong year considering. We navigated the halving. This is our fiscal year is starting from March 31st. So this year are effectively all post-halving economics. I want to point that out. A lot of our peers have a December 31st year and ours is March 31st. So this is effectively full post-halving by the economics. And by the way.

Ivan: Our revenue was $105 million from bitcoin mining and $10 million.

Ivan: AI revenue.

Ivan: We did hit $20 million.

Ivan: So yes.

Ivan: To grow as we expand our HPT strategy.

Ivan: <unk> 5 million in gross operating margin. So it has been a strong year considering.

Ivan: We navigated having.

Ivan: Our fiscal year is starting from March 31st So this year.

Ivan: Tactically all post having economics I want to point that out a lot of our peers have a December 31st year end March.

Ivan: March 31. So this is effectively full post having non economic and by the way.

Aydin Kilic: 53% net cash in Bitcoin per share, we're trading at $1.75 today. And we've realized 22% ROYC in the last 12 months. So I think we've done a phenomenal job navigating post-halving economics, which are bearish, of course, and as the industry gets ready to torque up. I think it's going to be a phenomenal year for HIE.

Ivan: 53% net cash standpoint per share were trading at $1 75 today and we.

Ivan: Realized 22% ROIC in the last 12 months. So I think we've done a phenomenal job navigating post having economics, which are bearish of course.

Ivan: As the industry gets ready to tour Cup.

Ivan: I think it's going to be a phenomenal year for high let's jump into it.

Aydin Kilic: Let's jump in. So again, how do we realize these numbers? We prioritize ROYC in our capital deployment strategy. We've got prudent, stable growth across cycles, bear and bull. We mined over 1,400 Bitcoin in this fiscal year. By the way, we hit 11.5 heads of hash in June, and we've been mining five and a half Bitcoin daily since. So we are doing $600,000 a day revenue right now. We're at a $200 million ARR. That's $600,000 is about $550,000 on the Bitcoin and over $50,000 a day, closer to over $60,000 actually on the HTC business. So $200 million in annualized revenue.

Ivan: So again, how do we realize the members, we prioritize ROIC and our capital deployment strategy.

Ivan: We've got proven stable growth across cycles their ankle remind over 1400 bitcoin into fiscal year by the way we hit 11, 5% to hash in June and we've been mining five five to <unk> 86. So we are doing $600000 gain revenue right now where the $200 million.

Ivan: That 600000 is about $5 50 on the bitcoin and over 50000 a day.

Ivan: Over 60 actually onto HBC business of $200 million annualized revenue.

Aydin Kilic: will be at approximately 3% of the global Bitcoin mining network when we hit 25x a hash. And of course, we've got our vertically integrated HPC strategy for building and operating tier three data centers, as well as the GPU cloud, video cloud partner, we're targeting high value contracts. on our HPT business. We've got over 5,000 GPUs right now. We had that $20 million ARR figure.

Ivan: We'll be at approximately 3% of global Bitcoin mining effort.

Ivan: 25, ex Ash and of course, we've got our vertically integrated Hpt's strategy, we're building and operating tier three data centers as well as the GPU cloud.

Ivan: Anyhow partner, we're targeting high value contracts.

Ivan: And our HBC business, we've got over 5000 Gpus right now MCP.

Ivan: That $20 million <unk>.

Ivan: Figure.

Aydin Kilic: Let's jump into it. Next slide. Here's an overview of the Bitcoin mining footprint. 440 megawatts of green energy globally between Sweden, Canada, and of course Paraguay. As mentioned, we've been mining five and a half bitcoin per day since we hit our 11.5 exahash target. We're over one percent of the network today. That's today. And we're scaling on track to get to 25 exahash by this fall. hoping to get the benefit of the DELWP multiple that some of our peers get because we brought on an exahash per week for five weeks in a row as we grew from six exahash to 11 exahash in the last month.

Ivan: Jumping to the next slide.

Ivan: Here's an overview of the bitcoin mining footprint for.

Ivan: 440 megawatts of Green energy globally between Sweden, Canada and of course Paraguay.

Ivan: As mentioned, we've been mining five five <unk> per day since we hit our 11, five exit hash target where over 1% of the network today, that's today and we're scaling on track to get to 25 extra cash by this fall.

Ivan: We're hoping to get the benefit of the doubt multiple some of our peers because we brought on.

Ivan: Josh per week for five weeks in a row as we grew from six.

Ivan: To 11 extra cash in the last month checkup. The press releases, we put out a press release every single time, we get next to hatch and again, we've accomplished as a disciplined ROIC strategy.

Aydin Kilic: Check out the press releases. We put out a press release every single time we get an exahash. And again, we've accomplished this with a disciplined RYT strategy. Last December, we announced our landmark purchase with Bitme at $14 a tera hash for the F21 plus hydro as well as we have some air cooled units. Those are coming online. We targeted sub one-year ROI on these ASICs at $55 hash price after a five cent cost in our model. So we are very much primed to have a lucrative next three years ahead of us as we mine. We have modeled to be profitable up to $21 hash price.

Ivan: Last December we announced our landmark purchase with Dittany at $14 <unk> for the F. 'twenty, one plus hydro as well as we have some air cooled units those are coming online.

Ivan: Targeted sub one year ROI on these asics at $55 harsh pricing.

Ivan: After our <unk> cost in our models. So we are very much trying to have a lucrative.

Ivan: Next three years ahead of us as we mine, we have models to be profitable up to $21 <unk> price and so we very strategically and selectively deploy our capital not only for high ROI positive.

Aydin Kilic: And so we very strategically and selectively deployed our capital, not only for high ROI, but for positive cash flow through to the next halving. And by the way, we accomplished this by having the lowest GNA per Bitcoin mine in the sector, of course, which is shored up by our investing class uptime.

Ivan: Positive cash flow through to the next having and by the way we accomplish this by having the lowest G&A predict <unk> nine in the sector of course, which is shored up our best in class Uptime next slide.

Aydin Kilic: Next slide. So, a beautiful overview. This is our Paraguay site. It was a 200 megawatts. You actually see the substation in the bottom right-hand corner, and then above you've got 10 air-cooled buildings, and you see all the civil work has been completed for the 100 megawatts of hydrominer. So the air-cooled is done, that got us to 11.5 eggs a hash a few weeks ahead of schedule. And the second Heck of Heck watch is the Hydro on the left, and that'll come online this summer. That was actually just some parrot wing. couple of weeks ago to oversee the progress.

Ivan: So beautiful overview.

Ivan: This is our Paraguay site using 200 megawatt you'll actually see the substation in the bottom right hand corner and then above you've got 10 air cool buildings ADC all the civil work is being completed for the 100 megawatts of hydro miners.

Ivan: So the air cooled is done that got us to 11, five X how should a few weeks ahead of schedule.

Ivan: And the second half a megawatt just the hydro on the left and that will come online this summer.

Speaker Change: I was actually just in Paraguay.

Speaker Change: Couple of weeks ago to oversee the progress very exciting our first few containers are actually being installed I mean, the hydro mining containers to try chillers and actual hydro containers are on site, we put that in our press release, a couple of days ago, and so that's ramping up we're expecting that how should we just start coming online.

Aydin Kilic: Very exciting. Our first few containers are actually being installed. I mean, the hydro mining containers, both the dry tillers and actual hydro containers are on site. We put that in a press release a couple of days ago. And so that's ramping up. We're expecting that hash rate to start coming online next month. So it'll be very, very exciting. Standby for updates there. And of course, the third hundred megawatts in Ballantayla, our other site, so more is also completed. So we're fully funded for the 25 x a hash. I want to highlight that we're fully funded for growth to 25 x a hash.

Ivan: So it will be very very exciting standby for update there and of course, the 300 megawatts is in balance we let our other site civil work is also completed.

Ivan: So we're fully funded for the 25 that gosh I want to highlight that were fully funded FERC growth between buybacks, we fully paid for all the asics.

Aydin Kilic: We fully paid for all the ASICs to get to 18 x a hash. And so those are just arriving week over week throughout the summer. And we have all our deposits in place for the 25 x a hash as well. Again, we're fully funded for that. So I'm very proud of our team as now we're just bringing the hash rate online.

Ivan: To get to <unk> and so those are just arriving eco per week throughout the summer and we have all of our deposits in place. After the 25 <unk> as well as again, we're fully funded for that so I'm very proud of our team.

Ivan: Now, we're just bringing to hash it online we effectively executed on the infrastructure.

Aydin Kilic: We've effectively executed on the infrastructure. Let's talk to the next slide. So here's a layout for all the analysts out there of how our 440 megawatts is allocated between Canada, Sweden, and of course, Paraguay. Now on the right-hand side is our tier three footprint. So we have GPU Cloud running at Stockholm, Montreal, and now with the announcement of the data center Toronto we're acquiring, it's a 7.2 megawatt infrastructure load and a five and a half megawatt IT load, assuming 1.3 QE. What this does is this additional 5.5 megawatts of tier three compute will effectively three and a half X our HPC footprint.

Ivan: Up to the next slide.

Ivan: So there isn't a lay up for all the analysts out there how are 440 megawatts is allocated between Canada, Sweden and of course, Paraguay and on the right hand side is our tier three footprint. So we have <unk> cloud running in Stockholm, Montreal, and now with the announcement of the Ada Centre, Toronto where required.

Ivan: It's a seven two megawatts.

Ivan: Infrastructure load and a five five megawatt load assuming one <unk>. What this does is this additional five five megawatts of tier three.

Ivan: We will effectively three and have extra HBC footprint.

Aydin Kilic: So we just announced the acquisition of this site. We have a buying purchase agreement. We hope to close on it very quickly and we will upgrade this Toronto site to be liquid cooled for next generation GPU compute. Of course, we're an NCP partner. So very exciting as we scale our HPC business to go from 20 million to a hundred million. More details on that later in the presentation.

Ivan: We just announced the acquisition of the site binding purchase agreement, we hope to close on it very quickly and we will upgrade this toronto site to be liquid cooled for next generation.

Ivan: GPU compute of course operating at BHP NTP partner, so very exciting as we scaled our HBC business to go from $20 million to $100 million more details on that later in the presentation next slide.

Aydin Kilic: Next slide. This is the ramp on the Bitcoin mining business, of course. As mentioned, we've successfully completed the first stage of air-cooled 11.5 exa-hash. Our global fleet efficiency is 20 joules a tera-hash today. That will incrementally increase as we bring on our hydro-powered S21-plus miners from Bitmain that are 15 joules a tera-hash. It'll bring our global average down to 18.4 joules per tera-hash efficiency as phase two completes this summer. And we'll get down to 17.5 joules per tera-hash efficiency this fall as we fully ramp. Very exciting time to be a Hive shareholder. I like to describe this moment in time as an elbow as a hockey stick ramps up.

Ivan: This is the ramp on the <unk> business of course as mentioned we've successfully completed the first stage of it Eric.

Ivan: 11 in Opex, the hash our global fleet efficiencies 20 joules of care harsh today that will incrementally increase as we bring on our hydro powered F. 'twenty, one plus minus from bit means that are 15 jewels of Taro ash.

Ivan: Our global average down to $18 four joules per care harsh efficiency.

Ivan: To complete this summer and will get down to 17 five tools for care harsh efficiency. This fall as we fully ramp very exciting time to be a high shareholder I would like to describe this moment in time, although as a hockey stick ramps up again. This is a four year overnight success, we scour the globe for cheap Hydro <unk>.

Aydin Kilic: Again, this is a four-year overnight success. We scoured the globe for cheap hydro energy at scale, and we found it in Paraguay. We have been very active as well in Paraguay. We're electrifying 18 schools in the rural regions of Valenzuela. In fact, we've completed six of these 18 schools. I met with the chief technology officer, Ande, which is a national power provider. We'll be attending a YPO event that the president of the country will be throwing in September. In fact, the president of the country, Santiago Pena, is a YPO member. Him and our executive chairman, Frank Holmes, have a personal rapport.

Ivan: At scale, we found it in Paraguay, we have.

Ivan: <unk> been very active as well in Paraguay, We're electrifying 18 schools in the rural regions of balance whaler.

Ivan: We've completed six of BC and schools.

Ivan: With the Chief Technology Officer, R&D, which is a national power provider.

Ivan: Be attending <unk> president of the country will be trained in September in fact, the president of the country. Santiago tenure is a whitefield member <unk>, our executive Chairman Frank Holmes.

Ivan: I have a personal we're so we're very much engaged with the geopolitical level.

Aydin Kilic: So we're very much engaged at the geopolitical level, at the infrastructure level with the national power provider, and of course, in the community. It's just how we like to do business at Hive.

Ivan: Your infrastructure level with the national power provider and of course the community. It's just how we like to do business at Hyatt next slide.

Aydin Kilic: Next slide. So taking into consideration the improving efficiency of our global feed, once we're at 25 exa-hash, here's a snapshot of what it looks like at 900 peta-hash, sorry, 900 exa-hash network efficiency. I'm sorry, 900x a hash of global network hash. 126 trillion network difficulties what we're modeling here. Once we're at 25x a hash, that works out to 12.5 Bitcoin a day. And at today's Bitcoin price, that's $1.3 million a day. That's over. $400 million of annualized revenue. It works out to over $250 million in gross mining margin at $100,000 Bitcoin. Our cost for use of Bitcoin will be about $42,000.

Ivan: So taking into consideration the MP.

Ivan: Proving efficiency of our global feet. Once we're at 25 ex ash, here's a snapshot of what it looks like 900.

Ivan: 100, <unk> network efficiency.

Ivan: Yes.

Ivan: 900 eggs hash of global network Kashering.

Ivan: 126 drilling effort difficulties, what we're modeling here. Once you are at 25 eggs hash that works out to trough in half a day.

Ivan: Today's date quaint price, that's $1 $3 million a day that's over.

Ivan: $400 million of annualized revenue.

Ivan: It works out too.

Ivan: Over $250 million of gross mining margin at $100000 breakpoint or cost for use of <unk> will be about $42000. If it <unk> rallied to $150000. Later this year, which a lot of people are speculating. It might go from 150 201100 $50000 pick point, we will be.

Aydin Kilic: If Bitcoin rallies to $150,000 later this year, which a lot of people are speculating that it might go from $150,000 to $200,000, but $150,000 Bitcoin, we will be doing. $2 million a day, roughly $700 million annualized revenue, and almost $500 million of annualized gross mining margin. Again, we're fully funded for this growth. We'll be at 25 eggs a hash this fall, 18 eggs a hash this summer, and our market cap is $350 million. So I think high is an incredible value right now. We have 600 Bitcoin on the balance sheet, but we also have a pledge to buy back 1300 Bitcoin at $87,000.

Ivan: Doing.

Ivan: Almost $2 million of date, so roughly $700 million annualized revenue and almost $500 million of annualized gross margin again, we're fully funded for this growth will be at least 25 back to hatch. This fall.

Ivan: <unk> hash that summer.

Ivan: And our market cap is $350 million. So I think high is an incredible value right now we have 600 bitcoin onto balance sheet, but.

Ivan: But we also have a pledge to buyback 300, bitcoin at $87000 since our market cap increases. Moreover, our enterprise value increases our free cash flow increases our cost of capital will come down we can either use free cash flow from operations to buyback between 87.

Aydin Kilic: So as our market cap increases, moreover, our enterprise value increases, our free cash flow increases. Our cost of capital will come down, we can either use free cash flow from operations to buy back Bitcoin at $87,000, or utilize proceeds from our ATM in an accretive manner to buy back Bitcoin. So our strategy is to get our HODL back to over $2,000 Bitcoin by buying back our pledge by the end of this year, if you'll buy at lower cost of capital as our free cash flow from operations increases as we've had this momentous scaling.

Ivan: Or.

Ivan: Utilize proceeds from our ATM.

Ivan: And in an accretive manner to buyback because our strategy is to get our hurdle backed over 2000 decline by buying back our pledge by the end of this year fueled by a lower cost of capital as our free cash flow from operations increases as we have this format to scaling next slide.

Aydin Kilic: Next slide. We've got the biggest growth in the sector this year. Some of our peers have hit a super scale of 50x. The hash has tapered off and they won't be expanding. Aside from Cypher, that's got 1.6x growth. Hive has got 2.2x growth for the balance of the year. And by the way, we started the year off with 4x growth and we're executing on that beautifully. So we've got the biggest growth profile of the entire industry this year. It's a huge headline.

Ivan: Okay.

Ivan: We've got the biggest growth in this sector. This year some of our peers have hit Super scale 50 eggs hash have tapered off and we won't be expanding.

Ivan: Aside from cipher Thats got one six X growth Hi, It's got two <unk> growth for the balance of the year and by the way we started the Europe with Forex growth and we're executing on that previously so we've got the biggest growth profile of the entire industry is huge a huge headline next slide.

Aydin Kilic: Next slide. We're also treating it to the best multiple in the sense that we're treating effectively at $10 an exahash. When you look at our enterprise value and where we're at at the end of this year, our peers are trading at $30, $40, even upwards of $50 an exahash. We have moved our principal executive office to San Antonio. We are looking at a U.S. domicile, and we believe that as we hit $500 million market cap and a billion dollar market cap, we're due for re-rating as some buy-side funds have a mandate based on market cap or liquidity.

Ivan: Okay.

Ivan: We're also treating us the best multiple and defense that we're treating effectively at $10 an extra hash when you look at our enterprise value and where we're at the end of this year. Our peers are trading at $30 40, even upwards of $50 on excess cash we have.

Ivan: <unk> moved our principal executive office of San Antonio We are looking at U S. Domicile, and we believe that as we had 500 million market cap and $1 billion market cap reducer of Rebating as some by five funds haven't 90 based on market cap where liquidity.

Aydin Kilic: We are a very liquid stock. Our three-month average is over 10 million shares a day. We fit almost 20 million shares of volume on some days. So I really think 2025 is the year of high as we scale to 25 exahash. Again, we're treating a very attractive multiple to our peers. Our market cap is you know, under 350 million and with $65 million of Bitcoin on the balance sheet, I think that we're a very attractive multiple. And by the way, again, we also have the $20 million annualized revenue.

Ivan: We are very liquid stock our three month average silver sure today, we said almost 20 billion shares a volume on Sundays. So.

Ivan: So I really think 2025 Europe heightened as we scale up to 25 types of hach.

Ivan: We're treating a very attractive multiple to our peers.

Ivan: Our market cap is.

Ivan: Under $350 million.

Ivan: With $65 million of decline on the balance sheet I think.

Ivan: Very attractive multiple and by the way again, we also have the $20 million annualized Shrek.

Aydin Kilic: Let's go to the next slide. So these are some of the merits of how we run the business. Again, disciplined capital allocation, we always try to source ASICs at the lowest cost. We try to buy spots so we get immediate delivery. We lead the sector in uptime. We run our ASICs through their full life cycle to maximize free cash flow, lowest G&A in the sector, and what does that yield? Best-in-class ROIC.

Ivan: Let's go to the next slide.

Ivan: So these are some of the merits of how we run the business again disciplined capital allocation, we always try to source 86 at the lowest cost we try to buy spot. So we get immediate delivery, we lead the sector and uptime throughout our ASIC their full lifecycle.

Ivan: To maximize free cash flow <unk> G&A in this sector.

Ivan: What does that best in class ROIC next slide.

Aydin Kilic: Next slide. And here it is by the numbers. Huge numbers, 22% annualized ROIC, or sorry, 22% ROIC for the last 12 months. And you can see how this compares to our peers. We are effectively double the next contending companies, Irish and Queen's Park, at 12%. And from there, it sort of drops off, Mayer and Hutt, 2% and 5%. Again, we walk the walk, we talk the talk. It's about having discipline. We focus on ROI when we deploy our capital. If you're going to buy $100 million at ASICs, you've got to make well over $100 million after costs.

Ivan: And here it is by the numbers huge numbers, 22% annualized ROIC.

Ivan: 22% ROIC for the last 12 months and you can see how this compares to our peers. We are effectively double the next contending company's parish and target, 12% and from there it sort of drops off mirroring 2% and 5% again.

Ivan: Walk the walk we talk the talk it's about having discipline, we focus on ROI when we deployed our capital if youre going to buy $100 million of Asics, you guys can take well over $100 million after costs otherwise you Shouldnt continue mining.

Aydin Kilic: Otherwise, you shouldn't even be mining, right? You should be buying Bitcoin if you can't make money from mining. So we leave the sector, we target under one year ROI. Again, we targeted, we effectively have an 11 month ROI from the Bitwing ASICs after costs that we announced our purchase of a $55 hash price. That means if we run those for three years, we're free cash flow and for years two and three. And this is just how we run the business at high. We want to be smart. We want to build shareholder value by having free cash flow from operations.

Ivan: You should peak buying big point, if you can't make money for mining so he lead the sector, we target under one year ROI again.

Ivan: We targeted we.

Ivan: Effective we have an 11 month or a life and a bit being a sixth accurate cost that we announced our purchase of a $55 <unk> price that means if we run those for three years, where free cash flow and for years, two and three and this is just how we run the business are high we want to be smart we want to.

Ivan: Build shareholder value by having free cash flow from operations. So we could scale, our business with free cash flow and not have to rely on financing.

Aydin Kilic: So we could scale our business with free cash flow and not have to rely on diluted finance.

Aydin Kilic: I think the cheat code that emerged in capital markets over the last two, three years, that dilution was rampant. A lot of companies were just buying new machines, running them, upgrading them before their end of life, just so that they could show high inter-quarter margins. So I'm going to take a moment to describe this. If you're constantly just buying the newest, best machines, in the moment, you could show that you have a high margin, because guess what? The latest ASIC has a better machine efficiency, it has a lower... Okay, so you've got a good margin for the quarter, but have you ever repaid the investment of all these new ASICs you're buying?

Ivan: I think the chico's at emergent capital market for the last two or three years as dilution was frankly, a lot of companies who are just buying new machines running them upgrading.

Ivan: Before their end of life, just so that they could show high intra quarter margin. So I'm going to take a moment to describe this if youre constantly just find the newest best machines in the moment you could show that you have a high margin because guess what the latest piecyk has a better machine efficiency. It has the lowest breakeven okay. So you've got a good.

Ivan: Good margin for the quarter, but have you ever repay the investment of obesity as a six year buying and Thats whats really hard to track well. This slide shows the difference if you actually maximizing get ROI on your Asics, it's going to show up in the numbers here you can see we lead the sector by a long shot next slide please.

Aydin Kilic: And that's what's really hard to track.

Aydin Kilic: Well, this slide shows the difference. If you actually maximize and get ROI on your ASICs, it's going to show up in the numbers here. You can see we beat the sector by a long shot.

Aydin Kilic: Next slide, please. Louis G. Naper, Bitcoin Blind, as a function of gravity for the last 12 months.

Ivan: Lewis G&A per <unk> as a function of revenue for the last 12 months.

Aydin Kilic: Next slide. So it's low cost, but it's also high performance. We've got the best uptime in terms of Bitcoin mining per exit hash in the whole sector. Third-party analysis from Anthony Powers, power mining analysis.

Ivan: Next slide.

Ivan: So it's low cost, but it's helpful High performance, we've got the best uptime in terms of $6 nine per exit cash in the whole sector third party.

Speaker Change: How is this from Anthony Power's power mining analysis next slide please.

Aydin Kilic: Next slide. And of course, the AI business, the recent announcement of the 7.2 megawatt data center in Toronto, this will provide five and a half megawatts of liquid cooled compute. We plan to undertake this conversion. We look forward to closing on this facility in the very near future. We just announced the binding purchase. This will grow our effective HPC footprint by 3.5x. Again, we currently have over 5,000 NVIDIA GPUs operating. That's over 4,000 A-series cards, 344 H100s, and 504 H200s. We hit the 20 million ARR target, and we are looking to hit 100 million ARR.

Speaker Change: And of course, the AI business. The recent announcement of the $7 two megawatt data center in Toronto. This will provide five five megawatts of liquid.

Speaker Change: We plan to undertake this conversion we look forward to closing on this facility in the very near future.

Speaker Change: Announced the binding purchase this will grow our effective HTC footprint by three five X.

Speaker Change: I can't we currently at over 5000, Nvidia Gpus operating bets over 4000 <unk> cards.

Speaker Change: 344, H 200, I'm, sorry, each 100, and 540 <unk> hundreds we hit the $20 million <unk> target and we are looking to hit $100 million.

Aydin Kilic: If we were to populate the Toronto facility five and a half megawatts with H200, using current market utilization and market rates for H200s that we're seeing. It would add approximately $80 million ARR to our top. So it's a very exciting time to be a Hive shareholder and we are having our HPC business in Buzz. And so Buzz is a fully-owned subsidiary of Hive. It'll be a pure-plate HPC-focused, vertically-integrated business. We're to build, own, and operate the Tier 3 data centers along with the GPU Cloud.

Speaker Change: If we were to populate the Toronto facility five five megawatts with <unk> hundred's, using current market utilization and market rates for <unk> hundreds that we are seeing it would add approximately $80 million to our top line.

Speaker Change: So it's a very exciting time to be the highest shareholder and we are <unk>.

Speaker Change: Having our H PC business.

Speaker Change: So budget as a fully owned subsidiary of high it will be a pure play HBC focused vertically integrated business grew build own and operate that curious your data centers along with the GP cloud.

Aydin Kilic: Next slide. This shows the growth and how we've got there. Again, we scaled up. We had the 4,000, actually, it's closer to 4,200 NVIDIA A-series GPUs, 344 H100s. We hit 13 million ARR. We brought on the NVIDIA H200s. That actually got us to 23 million ARR. And of course, with the advent of the Toronto Data Centre, we'll be able to scale, build GPU cloud, and get to our 20, Very exciting. Next slide.

Speaker Change: Next slide.

Speaker Change: This shows the growth and how we got there can be scaled up we have 4000 actually it's closer to a 4200 80, <unk> Gpus 344, <unk> hundred <unk>, we hit $13 million.

Speaker Change: We brought on the Nvidia H 200 that actually got us to $23 million and of course with the advent of the Toronto data center will be able to scale built into cloud and get to our 2000, sorry $100 million in 2026.

Speaker Change: Very exciting time.

Speaker Change: Slide.

Darcy Daubaras: And so I'll turn it over to the longest standing CFO in the crypto mining industry, Mr. Darcy Daubaras. Thank you, Aydin. Good morning, everyone. And thank you for joining us today.

Speaker Change: And so I'll turn it over for a long extended CFO.

Speaker Change: In the crypto mining industry, Mr Darcey diverse.

Speaker Change: Thank you Brandon good morning, everyone and thank you for joining US today. This reporting period Marcy significant milestone for our company as we have transitioned our financial reporting framework from higher for us to U S. GAAP. This change aligns with our strategic objective enhances comparability with.

Darcy Daubaras: This reporting period marks a significant milestone for our company, as we have transitioned our financial reporting framework from IFRS to US GAAP. This change aligns with our strategic objectives, enhances comparability with US listed peers, and supports our potential growth ambitions in US capital markets. As this is our first earnings release under US GAAP, I want to emphasize that while the core fundamentals of our business remain unchanged, certain financial metrics and disclosures may look different due to accounting presentation differences. We remain committed to transparency and will continue to provide clear, consistent reporting as we move forward.

Speaker Change: Mr Peters and supports our potential growth ambition ambitions in U S capital markets.

Speaker Change: As this is our first earnings release under U S. GAAP I want to emphasize that while the core fundamentals of our business remain unchanged.

Speaker Change: Certain financial metrics and disclosures may look different due to accounting presentation differences.

Speaker Change: We remain committed to transparency and will continue to provide clear consistent reporting.

Speaker Change: Move forward.

Darcy Daubaras: As this is the first time reporting under US GAAP for HIVE, I want to highlight three key US GAAP adjustments that will be seen in these newly presented statements compared to what we've had in other years. Those are Functional Currency, Digital Assets, and Lease. The Functional Currency Chain. Hive changed its functional currency from Canadian dollars to U.S. dollars for the parent company. This was driven primarily by a shift in financing activities to U.S. capital markets. This change aligns with the U.S. GAAP, which prioritizes financing indicators. The adjustment affects several areas, including warrant and convertible debt classification.

Speaker Change: As this is the first time reporting under U S. GAAP for oil I want to highlight three key U S comp adjustments that will be seen in these newly presented statement compared to what we've had in other years.

Speaker Change: Those are functional currency digital assets and leases.

Speaker Change: Functional currency change.

Speaker Change: High teens, its functional currency from Canadian dollars to.

Speaker Change: To U S dollars for the parent company. This was driven primarily by a shift in financing activities to the U S capital markets.

Speaker Change: Change aligns with U S GAAP, which prioritizes financing indicators, the adjustment effect several areas, including warrant and convertible debt classification.

Darcy Daubaras: One of the bigger ones is digital assets. Under US GAAP, Hive now records digital assets at fair value with gains and losses recognized directly in proper law. This contrasts with IFRS, where only losses were recorded in profit or loss, and gains flowed through other comprehensive income, unless reversed. This will greatly assist the markets in comparability between ourselves and our peers.

Speaker Change: One of the bigger ones as digital assets under U S. Cow hide now reports digital assets at fair value with gains and losses recognized directly in property loss.

Darcy Daubaras: and the third one is Lisa. While leases remain on the balance sheet under both standards, US GAAP requires different income statement treatment. Rent Expense for Operating Leases and Amortization plus Interest for Financing. This is similar to the IFRS treatment for finance leasing.

Darcy Daubaras: Fiscal 2025 has been a transformational year for HIVE. Over the past year, HIVE has executed on a strategic plan to scale massively from 4.7 exahash at the end of March 31, 2024, to 6 exahash at the end of this year, and now we're sitting at 11 exahash, moving towards 15 by mid-2025, and 25 exahash by late year. We continue to leverage our green energy. Hydroelectricity with our expansion into Paraguay. We're also growing our Bitcoin production through the upgrading and purchase of cutting edge basic machines throughout the year and the exahash growth that we have experienced.

Darcy Daubaras: are also moderators, moderner, modern, modernize, moderize. We have now improved our structure with our U.S. GAAP headquarters, U.S. GAAP reporting, and improved governance structure. Also, our high-performance computing diversification buzzes HPC growth into sovereign AI and liquid-cooled GPU clusters, adds a high-margin digital infrastructure vertical, and aligns with national and enterprise demand for secure, scalable computing.

Darcy Daubaras: Collectively, these milestones mark a transformation from a modest digital mining firm to a globally scaled, green-first Bitcoin infrastructure and high-performance computing leader.

Darcy Daubaras: Let's walk through the results. We are providing certain non-GAAP measures in our presentation today. The company believes that these measures, why not a substitute for measures of performance prepared in accordance with U.S. GAAP, provide investors an improved ability to evaluate underlying performance of the company. These measures do not have any standardized meaning prescribed under U.S. GAAP and therefore may not be comparable to other issues.

Darcy Daubaras: Further details are found in the Management Discussion Analysis for the 3 and 12 months ended March 31, 2025. As you can see, I've ended the March 31st year with 165.6 million common shares. 3.3 million options, 7.1 million RSUs, and 3.2 million warrants outstanding.

Darcy Daubaras: On to the next slide. For the fiscal year ended March 31st, 2025, I've recorded 115.3 million of revenue and a 56.2 million profit measured in adjusted EBITDA. This is driven by a production of 1,414 Bitcoin equivalent produced.

Darcy Daubaras: Moving on to the next slide, we take pride in maintaining a healthy balance sheet as always. Our cash position was $23.4 million as of March 31, 2025, in addition to $181.1 million in digital currencies, consisting primarily of Bitcoin. This is down slightly from the prior period due to the strategic use of our Bitcoin to fuel our accelerated operation expansion in Paraguay. We also had $15.3 million in amounts receivable and prepaid, an increase from the prior period. The total market value of our strategic investments remained strong at $24.1 million. We have a strong net cash position and healthy working capital to support our operations and growth objectives with a current ratio of 3.7 calculated as current assets divided by current liabilities.

Darcy Daubaras: and on to the next slide.

Darcy Daubaras: Let's shift our focus to our growth operating margin on a year over year basis. comparing the annual results of this year compared to last year. Our gross operating margin, which is calculated as total revenues minus direct operating and maintenance costs and high performance computing service fees, decreased in absolute terms to $25.1 million in the most recent year, compared to $37.5 million in the prior year results. One significant factor to consider is the impact of the happening event that occurred in Bitcoin. in April of 2024. This event led to rewards earned by minors in the current year being halved compared to the prior year.

Darcy Daubaras: Gross Mining Margin is influenced by several additional external factors. These include the high mining difficulty currently being experienced, the reduced amount of digital currency rewards received by miners, which is now half what it was a year ago, and the market price of the digital currencies at the time of mining, which has been higher compared to the prior period.

Darcy Daubaras: In the most recently completed year, we are reporting a net loss. $0.02 per share, compared to a net profit of $0.29 per share reported for the year ending March 31st, 2024. In looking at our gross operating margin on the next slide on a Q4 quarter-over-quarter basis.

Darcy Daubaras: Q4 quarterly results of this March 31st, 2025 period compared to the prior year, March 31st, 2024 period, our gross operating margin, which is calculated again as total revenues minus direct operating and maintenance costs and high performance computing service fees, decreased in absolute terms to $8.8 million in the most recent year, compared to $15.6 million in the prior year Q4 results.

Darcy Daubaras: For more information visit www.FEMA.gov Again, a significant factor to consider is the impact of the happening event that occurred in April of 2024, and also as has been discussed. the difficulty impact. and the mining margins that we are experiencing.

Darcy Daubaras: In the most recently completed March 31st, 2025 quarter, we are reporting a net loss of $0.34 per share compared to the net profit of $0.55 per share reported for the Q4 period ending March 31st, 2024. on to the next slide.

Darcy Daubaras: Taking a look at our year-over-year revenue, we generated total revenue in fiscal 2025 of $115 million versus $114.5 million in the previous year. strong stable revenues compared to the fiscal year 2024 was assisted by much higher average Bitcoin prices compared to last year. This is despite the reduction of Bitcoin mined as a result of the halving. in April of 2024, and also from the increase in contributions from a high-performance computing revenue, which has increased close to 300% compared to last year. We were also able to overcome industry pressures due to the continuing rise in Bitcoin difficulty hash rates over the past year.

Darcy Daubaras: as mentioned previously, a gross mining margin.

Darcy Daubaras: decreased in absolute dollars to $25.1 million or 22% in the most recent year compared to $37.5 million or 33% in the prior year. and on to the next slide.

Darcy Daubaras: In looking at our quarter over quarter revenue, we generated total revenue in the fourth quarter, fiscal 2025 of 31.2 million versus 36.9 million in the previous year's fourth quarter. The revenues compared to the same period. in fiscal 2024 can primarily be attributable to the higher average Bitcoin price. Currently, which is more than double what it was in the comparative quarter last year. However, this increase is offset by a rise in Bitcoin difficulty hash rates over the past year, as well as the impact of the halvening event on the current period's results.

Darcy Daubaras: As mentioned previously, our gross mining margin, which equates to our revenues minus direct operating and maintenance costs and HPC computing service fees, decreased in absolute dollars to $8.8 million, or 28%, in the most recent quarter compared to $15.6 million, or 42% in the prior year comparative quarter. Moving on to the next slide.

Darcy Daubaras: comparing our current fiscal Q4 quarter to the previous Q3 quarter, we generated revenue in this quarter of fiscal 2025 of $31.2 million versus $29.2 million in the previous quarter. Slight increase in revenues versus the prior quarter was impacted by an increase in the price of Bitcoin, resulting in higher revenue from digital currency mining and also higher high-performance computing.

Bill Papanastasiou: Are there questions, guys? Yeah, hey Aydin, it's Bill Papanastasiou from KBW. Can you hear me? Yep, I got you loud and clear. Thanks.

Aydin Kilic: Well, thanks for taking my questions and congrats on the sequential margin expansion and strong execution and PowerGlide. I was just hoping to get some more color on the recent data center acquisition. Seems like a nice bolt-on addition to the portfolio. Any chance you happen to have a timeline of when you expect to get the liquid cooling installed and when the site will ultimately come online? Yeah, so that site 7.2 megawatts would yield about five and a half megawatts of compute, assuming a 1.3 PUE and something like a 9 to 12 month retrofit with liquid cooling.

Aydin Kilic: to bring that compute online. And it effectively would triple the megawatt footprint of HPC compute currently today. And yeah, that's that's kind of the outlook for it. It's very exciting. Awesome.

Aydin Kilic: And apologies if I missed this. Can't really see the slide deck on my end. But was there any discussion in terms of the type of hardware that you guys are considering? I think there may have been some mention of NVIDIA Blackwell in the past. Just curious how you're weighing, deploying latest versus next generation equipment. Thanks. Yeah, exactly. That's a great question. So it will be a Yeah, the slide's, uh... um We're off, but it's a function of what will be available on the market at that point. So, for example, today you can order B200, but there's talk that in Q1 2026 you'll have B300 available.

Aydin Kilic: So it'll sort of be an economic analysis because, as you know, when the newest model comes out, you know, we've heard that... B200 is fetching over $5 an hour right now. And so if there's a B300 that's out, you know, typically you'll want to gravitate towards getting the latest model GPU that's available. So that's why we haven't specified that. It's more sort of an exercise in capacity and analysis, knowing, for example, you know, a 1K cluster of Blackwell, so 1028 GPUs, is a little over one and a half megawatts, a little bit more power intensive than, say, an H200 cluster, which is a little under one and a half megawatts.

Aydin Kilic: So yeah, as we sort of get closer to locking in the PO, then we'll provide more specificity on exactly which model GPU that we intend to operate. Awesome.

Aydin Kilic: And then just lastly, you know, you're making all this progress on Bitcoin mining, getting some flybacks in hash before the end of November, and now scaling to that $100 million kind of annualized run rate on AIHPC. Is there a particular revenue mix that, you know, the team is trying to achieve? And how could that differ going forward once you kind of execute on both of businesses? Yeah, that's a good question. I wouldn't call it so much of a revenue mix, because as we're positioning Buzz as a pure play HPC company, that will sort of, you know, be 100% HPC AI revenue.

Aydin Kilic: And then Hive will moreover, be, I mean, that's the whole subsidiary of Hive. And so how do we unlock shareholder values that entity will evaluate? And of course, Hive is operating Bitcoin mining data centers globally. So we're sort of bifurcating, I think it's perhaps a good way to think of it rather than looking at it as a mix. But as you could see from last year's financials, it was about 9010. If we did get to next year, and we 100 million on Buzz and 400 plus million on Hive, like, you know, even at $55 hash price at 25x a hash, you're well over 400 million of ARR just on the Bitcoin mining.

Aydin Kilic: And so it's still an 80-20 mix if you did want to kind of have a ratio based on those projections. Awesome. Appreciate all the color and congrats on all the progress. Thank you. Yeah, it's been an awesome year so far. Look forward to continue the momentum.

Aydin Kilic: All right, thanks for those thoughtful questions, Bill.

Mike Colonese: Our next question comes from the line of Mike Colonese from H.C. Wainwright. Hey, good morning, guys. Congrats on all the progress with Paraguay and the recent hashrate ramp. Great to see.

Aydin Kilic: Just following up on Bill's question around the 7.2 megawatt Tier 3 data center in Toronto, can you share what the cost of acquisition was and what the related costs to do the full retrofit will be? So we haven't, good questions, Mike, we haven't publicly commented on that yet. So we'll be providing that color in the near future. So stay tuned. Got it. Fair enough. I appreciate that.

Aydin Kilic: And as it relates to monetizing the 5.5 megawatt of critical IT load there, once you're fully up and running, you know, how should we think about that, you know, as it relates to customer demand? Are you looking at more on-demand type deals or contracted revenue streams? Just trying to think through, you know, the revenue of that additional $80 million that's projected to come online as it relates to timeline and underlying contract. Yeah, so right now, I mean, we've got 5,000 GPUs, about 5,100 actually, 4,300 A-series cards, and 344 H100s and 504 H200s. And those are, for the most part, rented.

Aydin Kilic: I think it's about 80% utilization. And that includes some GPUs that are on longer-term contracts for six months and longer, and some are on aggregator. So it's, we're looking to, with the sovereign strategies, we sort of... We'll discuss that more in our most recent press release. We're really looking to embrace... enterprises in Canada and working with the government as well as researchers to take on more long-term contracts. That's sort of what we're alluding to with the sovereign strategy. As you know, there's a large AI grant in Canada. That's one of the initiatives. By the way, we haven't opined on the price of the data center yet for competitive reasons, but we'll be providing more color on that at the right juncture.

Aydin Kilic: We've really sort of seen strong demand and that was how we crossed that $20 million threshold. If you think about it, with a, say, if it was like a B300 cluster and say that's 1.8 megawatts for 1028 GPUs, you effectively can fit 3000 B300s in that cluster and so we're actually renting out 5,000 GPUs now, so if you think of the quantum of GPUs, we're already renting out a lot. The A-series cards, of course, are much less power-intensive than the Blackwells, so we're confident, sort of within our rampant footprint, you just kind of have more power-intensive cards that drive more revenue per unit, but in terms of the total quantity of cards, bringing on that additional 5.5 megawatts of IT load is actually less than what we have online in terms of number of GPUs.

Aydin Kilic: That's very helpful, Aydin. I appreciate the detail.

Aydin Kilic: And just last one for me, you know, could you remind us of the cutoff point as to when you can repurchase those Pledge Bitcoin with BitME? Yeah, it's to the end of this year, a little bit past the end of this year. We didn't specify who the vendor is with the pledge, though that's the only clarification. Great. Thanks for taking my questions. You bet. Thank you, Mike.

Thomas Shinsky: Next, we'll go to Thomas Shinsky from Cancer. Thomas, please unmute. Hi, Aydin and team.

Aydin Kilic: This is Tom Holmes with Brett. Thank you for taking my question. First, I just wanted to touch on the regulatory, you know, situation in Paraguay. I know, you know, as of June of last year, they put through a tariff against, you know, crypto mining companies, I wanted to see if there was any impact there and how the cost of power through your Paraguay sites compares to, you know, the facilities elsewhere. Thank you. Yeah, so things are sort of in a holding pattern until 2027. But we're actively, you know, evaluating the landscape, but also working closely with Ande, which is a national power company.

Aydin Kilic: I was just there two weeks ago and met the CTO. We're going down again in September for actually a YPO event. The president of the country is in YPO, and he's actually hosting a YPO event. So we sort of embrace the you know, government and utility company and just the regulatory framework in Paraguay at different levels. You know, we meet with governors and mayors when we go down there. And so I think there's an education process. Actually, I just met with the Minister of Industry and Commerce when I was there a couple weeks ago as well.

Aydin Kilic: And so I think as they understand the industry more, they. We're optimistic they'll sort of embrace it more, and we have a long-term view that we expect. with them embracing it to sort of have a more attractive power pricing trending in the right direction, if you will, is probably a good way to put it. And yeah, so I would say that, you know, even with the... citation of the June tariff, the power prices there are still more attractive than a lot of jurisdictions we've looked at. So yeah, it's... It's good, and I think that the...

Aydin Kilic: revenue or so I should say the gross mining margin reflecting the hash rate from Paraguay. Stay tuned, it won't be too long because it's this current quarter, which will be reported in about six weeks. So yeah, you know, you'll see, you'll sort of see the gross mining margins from this current quarter as we've brought on those 5x a hash for period end June, which I believe is reported in about six weeks from now. Awesome. Thank you for the color. That's very helpful.

Aydin Kilic: And then just one more, if I may, on this general CapEx throughout, you know, fiscal 2026, as we think about ramping to 25x a hash and also, you know, potential expansion within the Hive cloud business. How should we think about cadence of CapEx throughout 2026? And how much of that should we attribute to the potential expansion of the cloud business first, you know, getting to 25x hash by Thanksgiving. Thanks. Yeah, you bet. So the 25x a hash is fully funded. As you know, there was 610 Bitcoin on the balance sheet as of our May production report, right?

Aydin Kilic: So that's sort of more current than the fiscal year end. So that's approximately a little over 60 million. And so, yeah, you know, we've effectively fully paid for all the ASICs that have been arriving and that will continue to arrive through the 18x a hash. And so that's why we have shipments arriving weekly and deposits are in place. You know, you sort of deploy your capital and you make those final payments for ASICs right before they ship, right? So the The Summer Inventory, that's all fully paid for, and that's shipping, and so final deposits for the Fall Inventory, right, the third phase, going from $18 to $25 exa-hash, those will be made in the Fall, so it's all fairly near-term.

Aydin Kilic: And I believe on the, and that's on the ASIC side of things. And again, we're using the strategic upside strategy for that. And then on the construction, I believe it was discussed that we actually had a sort of a VTB arrangement where 31 million of the 55 million purchase price was actually spread out over six months with $5 million monthly payments, five and change, right? 31 divided by six. And so those continue from, I believe, April when we close the deal into about October. So that's nice and spread out. So yeah, that addresses the Bitcoin.

Aydin Kilic: And as for the cloud, as mentioned, we haven't discussed the purchase price yet, although it was very attractive. I believe I can say that confidently. And as with any construction project, you'll pre-order some equipment and then the rest of the capital will be spread out over that nine month term. So we can provide more color on that. with the GPU business, you don't actually need to pay for the GPUs until you receive them, unlike crypto mining. And in fact, we have net 30 with, you know, I think it's fairly well known we work with Dell and Supermicro is preferred OEM.

Aydin Kilic: And we have net 30 payment terms. So if the GPUs don't arrive in nine months, we don't need to pay for them until 10 months, right? So the CapEx on the HPC or specifically to Toronto Data Center, I would say sort of further down the road and in the interim, we're fully funded for the 25 with ASICs effectively arriving weekly between now and the fall with 25 ExaHash on the horizon. Awesome, thanks Aydin and you know, congrats on all the progress. Thanks guys.

Aydin Kilic: Thank you again, Thomas.

Fedor: Next, we'll take a question from Fedor, from B. Riley.

Fedor: Fedor, the floor is yours. Yeah, hi Aydin, Frank and the team. First of all, congratulations, strong progress you're making on both HPC and Bitcoin mining front.

Fedor: And going back to your slide with Robert De Niro, Frank, I'm hoping institutional crypto adoption continues to the same pace we saw with catalysis spreading through Latin America. But anyway, I wanted to dive deep a little bit, kind of follow up question on Toronto HPC data center. Stepping back to the bigger picture, it would be helpful if you could share your scale and roadmap for this data center particularly, and kind of what does growth look like from here, and how you're thinking about the expansion of composition of your fleet at this location. And also, how should we think about financing in terms of preferred options, maybe equity that split for the overall HPC segment.

Aydin Kilic: Thank you. Yeah, so the HPC can be financed in in different ways. For example, there's As you mentioned, we've not done this, but just sort of providing color on how others in the industry have approached it. a not quite a vendor financing, but like it's no secret Dell has DFS, which is Dell Financial Services. So they'll actually sort of lease you the hardware, the GPUs, right, which are the most capex intensive. And by the way, like just rough numbers, GPUs, latest generation GPUs broadly are roughly about 30 million a megawatt, right, for each PC. And so there are different mechanisms to, I mean, you can buy them outright in cash, which is what we've done in the past for the GPUs that we have.

Aydin Kilic: And then as far as the data center construction financing, again, we sort of. haven't disclosed the exact budget or acquisition cost yet. It'll be attractive and competitive, which is why we love this acquisition. We're really excited about bringing it to the market. And as I mentioned earlier, Fedor, I think part of your question was scale or capacity. So, 1.3 PUE, it's effectively 5.5 megawatts of IT load, which effectively, I think it's on one of the slides in my section, the exact page number. I don't recall, but it's effectively 3.5x of what our current capacity is, right?

Aydin Kilic: So, that's really exciting. And then I believe I was addressing Mike's question just in terms of capacity of number of GPUs. So, if you have like an H, well, I mean, people would be buying H200s or H100s now, but, you know, those are a 1K cluster, again, 1028 GPUs or 128 nodes with 8 GPUs per node. And it's actually N-1, so you always have to have one node for switches. So, you'd have 127 times 8, anyway, it's just over 1,000 GPUs. It's about 1.3 megawatts for H-series. And Blackwell B300 is expected to be a little more power intensive, close to 1.8.

Aydin Kilic: So, you just sort of take your IT load. So, you can always take your sort of gross utility load right at 7.2 megawatts, divide that by 1.3. And then if you want to say, well, how many Blackwells could I fit in there? You'd sort of divide by conservatively 1.8 megawatts. And again, it depends. It can be B200, B300. So, that all matters as well. And or if it's going to be an H200 cluster, then divide by 1.3 megawatts and then multiply your GPUs by the prevailing market rate on what they're renting for. Like, H200s are renting at $3 an hour right now on demand.

Aydin Kilic: So, yeah, I hope that was helpful.

Aydin Kilic: This is super helpful. And my second is about your customer profile and contracted dynamics. Can you kind of paint a picture of what your average HPC client looks like? Primarily serving on demand, smaller scale customers? Or do you have a mix that includes some larger enterprise clients as well? And kind of what's the typical duration you've seen on your HPC agreements? Is it mostly short term, flexible arrangements? Or are you starting to lock in longer term commitments with scaling at Toronto? And kind of looking forward, how are you thinking about the evolution of your customer base?

Aydin Kilic: Is it fair to assume you're actively pursuing larger capacity contracts and trying to move up market to bigger enterprise clients who can commit to, say, more sustainable and longer duration agreements? Thank you.

Aydin Kilic: Viewing data really is a sovereign asset. And working with those enterprises and research institutes that want to keep that compute within the country, we actually have a, obviously, I can't say who, but there's a sort of a former Google DeepMind guy that's training a foundational model on a six month contract right now on some of our GPUs. And so, yeah, we're absolutely targeting more longer term contracts. We've done some compute with a researcher out of NYU Stern, Columbia, as well as Berkeley. And so they're all sort of doing very novel things. I mean, in most of those specific cases, it's foundational model work.

Speaker Change: Google.

Speaker Change: Deep mine Guy that's training our foundational model on a six month contract right now on some of our Gpus and so yeah, we're absolutely targeting.

Speaker Change: More.

Speaker Change: Longer term contracts, we've done some compute with a researcher out of.

Speaker Change: And while you're stern, Colombia, as well as Berkeley.

Speaker Change: And so they're all sort of doing very novel things. Some are I mean in most most of those specific cases, it's foundational model work.

Aydin Kilic: one I believe is actually a vision, like a computer vision. So yeah, it's a lot of really cool fun stuff. And then of course, the you know, the balance of the compute is with aggregators, some aggregators are really flourishing. And, and, you know, the itself, it's also like having a, like when you're working with the end users, like we've got a great team. And so it's giving the giving making sure the users have a good experience with the GPUs. It's not just the raw compute, but making sure that they have a good experience as well.

Speaker Change: One I believe is actually a vision like a computer vision.

Speaker Change: Yeah, it's a lot of a lot of really cool fun stuff and then of course.

Speaker Change: You know the balance of the computers is with Aggregators. Some aggregators are really flourishing and.

Speaker Change: The.

Speaker Change: It's also like having a like when you're working with with the end users like we've got a great team.

Speaker Change: And so it's giving that give me, making sure they use it to have a good experience with the Gpus, it's not just the raw compute but making sure that they have a good experience as well that's sort of another key thing because he you know at the at the other end.

Aydin Kilic: That's sort of another key thing. Because, you know, at the at the other end, is an actual user that's implementing and utilizing this compute. And so it's just key that that overall, they're having a good user experience. And that's sort of a key takeaway, if you talk to Nvidia, you know, that matters a lot to them as well. So that's where we aim to please.

Speaker Change: It is an actual user that's.

Fedor: And we're really excited about the direction that Buzz is going. Thank you very much Aydin, Darcy, and of course Frank, and continue and best of luck. Thanks, Fedor. Thank you, Fedor.

Speaker Change: We're really excited about the direction that buses going.

Frank Holmes: Thank you very much item does stay on of course, Frank and continued best of luck.

Speaker Change: Thanks Sudan.

Speaker Change: Yes.

Dylan: Time for a few more questions. Good morning, Dylan from Roth, if you would kindly unmute yourself and proceed. Yeah, hey, guys, thanks for taking my question. Um, just to start on the Canadian data center, would there be any reason that those megawatts would come on in tiers? Or would you expect to energize all 7.2 slash five and a half critical IT load at once? Yeah, that would mostly be a function of the retrofit process, Dylan. And so, as I sort of commented on earlier, you know, you'd kind of bring that online in roughly, you know, a nine-month process, and that would be, you know, you could do it all at once, absolutely, because you're sort of retrofitting.

Speaker Change: Time for a few more questions. Good morning, Dillon from Roth, If you would kindly Amit yourself and proceed.

Dillon: Yeah, Hey, guys. Thanks for taking my question.

Speaker Change: Just to start on the Canadian data Center.

Speaker Change: Would there be any reason that those megawatts would come on in tiers or would you expect to energize all.

Speaker Change: Going to slide five.

Speaker Change: Critical onto it at once.

Speaker Change: Yeah that would mostly be a function of the the retrofit process.

Speaker Change: And so as I sort of commented on earlier.

Speaker Change: You need kind of bring that online in roughly a nine month process and that would be.

Speaker Change: You you you could do it all at once.

Speaker Change: Absolutely.

Speaker Change: Cause your your sort of.

Speaker Change: Retrofitting.

Aydin Kilic: And, by the way, I should comment, one important thing, it's actually a working active data center today. But, you know, if we want to bring that to do liquid cooled, you know, that's where the retrofit comes in. Got it.

Speaker Change: And by the way I should comment I want one important thing, it's actually working active data center today.

Speaker Change: But you know we want to bring that to do liquid cooled you know that's where the retrofit comes in.

Speaker Change: Got it.

Aydin Kilic: And just as a follow up, where do you stand with some of your existing sites? Are you still considering potentially retrofitting any of those to HVCAI or are they going to stay Bitcoin mining for the near Yeah, yeah, our site in Sweden. We did a trip out there with some analysts, and I believe Darren saw it. We call it Little Boden. It's sort of, there's two data centers that we have that are across the street from each other. And the smaller one, it's roughly six megawatts. We've identified that as a near-term candidate as well for HPC conversion.

Speaker Change: Just as a follow up.

Speaker Change: Where do you stand with some of your existing sites or are you still considering potentially retrofitting any of those to HCC.

Speaker Change: It quite money for the near term.

Speaker Change: Yeah, Yeah, our slate in Sweden, we did Ah Ah.

Speaker Change: A trip out there with some analysts and I believe Darren thought we we call it little boat and it.

Speaker Change: Sort of there's two data centers that we have that are across the street from each other.

Speaker Change: And the smaller one it's roughly six megawatts.

Speaker Change: We've identified that as a near term candidate as well for H P. C conversion. It was originally built to the GPU data center.

Aydin Kilic: It was originally built as a GPU data center, so it's got a really good level of finish. And so, yeah, we've identified that one as well, and we'll be providing more color on that, so stay tuned. Great, thank you. Thanks again, Dylan.

Speaker Change: Got a really good level of finish and so yes, we've identified that one as well and we'll be providing more color on that so stay tuned.

Speaker Change: Okay. Thank you.

Speaker Change: Yeah.

Speaker Change: Thank you doing our next question comes from the line of Mike from Northland, Mike. Please on mute and proceed.

Mike: Our next question comes from the line of Mike from Northwind. Mike, please unmute and proceed. Hey, thanks, guys. Um, hey, Aydin, if you could just talk a little bit about the demand you're seeing for that 5.5 megawatts is, is it basically already spoken for? Or do you still kind of have to source the demand? Yeah, I mean, right now, Mike, we just announced the data center, so we'll be providing updates on its conversion and bringing it to market. So we're doing, as I sort of in an earlier question pointed out, you know, it's roughly 3,000 Blackwell B300s, if you were going to go that route, and we're already managing and renting out 5,100 GPUs.

Mike: Hey, Thanks, guys.

Mike: You could just talk a little bit about the demand you're seeing for the five five megawatts is is it basically already spoken for or do you still kind of have to source the demand.

Mike: Yeah, I mean right now Mike we it's we just announced the data centers. So we'll be providing updates on its conversion and bringing it to market. So we were doing as I sort of in an earlier question pointed out.

Mike: It's roughly 3000 Blackwell B 300, if you were going to go that route and we're already managing and renting out 5100 Gpus. So.

Aydin Kilic: So, you know, although it's effectively tripling our footprint, when you just look at the number of GPUs, they're, again, more profit-dense and power-hungry as, you know, time marches forward. By the way, like, the GB200 are 130 kilowatts per rack, and that's only 72 GPUs, right? So the GPUs, directionally, are getting more power-intensive. So we're actually... managing more GPUs today than the GPUs that we would be bringing online. So we would provide guidance on demand, but what we really like about this site, it's functioning today as a data center. and it's so it's operational and it's a bite-sized deal that we're very confident that we could bring to market and it will fit very well within our demand pipeline and we are entertaining numerous like our H200s are over committed right now in terms of you know there's numerous groups or end users if you will that want to rent them with fixed contracts and so that that over demand which is great will tie in nicely to future capacity that we bring online.

Mike: Although although it's effectively tripling our footprint when you just look at the number of Gpus, because there again more profit dentin and power hungry.

Mike: As time.

Mike: Hi marches forward.

Speaker Change: And by the way like B G. B 200 mm 130 kilowatts per rack and that's only 72 Gpus right. So the.

Speaker Change: The Gpus the direction that you are getting more power intensive so we're actually.

Speaker Change:

Speaker Change: Managing more Gpus today then.

Speaker Change: The G piece that we'd be bringing online. So we would we would provide guidance on to that but we're it's a great buy what we really like about this site, it's functioning today as a datacenter.

Speaker Change: And so its operational and it's a bite size deal.

Speaker Change: That.

Speaker Change: We're very confident that we could bring to market and it will fit very well within our demand pipeline and we are.

Speaker Change: Entertaining numerous.

Speaker Change: But like I R. H two hundreds are over committed right now in terms of Theres numerous.

Speaker Change:

Speaker Change: Groups or end users, if if you will that want to rent them.

Speaker Change: With a fixed contracts.

Speaker Change: And so that that over demand which is great.

Speaker Change: <unk> will tie in nicely to future capacity that we bring them online.

Mike: Got it. Thank you. Mike, thanks again.

Speaker Change: Got it thank you.

Speaker Change: Yes.

Mike: Mike. Thanks, again time for one final question, we will go to the line of Chris <unk> from Rosenblatt, Chris. Good morning. Please go ahead and on mute.

Chris Brenzler: Time for one final question. We will go to the line of Chris Brenzler from Rosenblatt. Chris, good morning. Please go ahead and unmute. Hey, thanks so much. And congrats on the result. Fantastic. I wanted to say a quick question. We're running a little long here on the the mining gross margin. You know, a nice sequential improvement of calculating here, obviously, the Paraguay coming online, but it feels like that was, you know, only a partial quarter of impact. Can you give us any sort of sense on how much the mining margin can improve in the in the fiscal first quarter?

Chris: Hey, thanks, so much and congrats on the results.

Chris: I wanted to ask.

Chris: Running little long here on the the mining gross margin.

Chris: A nice sequential improvement I'm calculating here, obviously, the Paraguay coming online, but it feels like that was one.

Speaker Change: A partial quarter of impact can you give us any sort of sense on how much.

Speaker Change: In the fiscal first quarter.

Aydin Kilic: As you as you fully wrap the site and maybe a little bit of an outlook for the rest of or the beginning of fiscal 26? Because you got a lot of low cost power coming online, you know, more efficient machines as well. And we've also seen a recent improvement in the network hash rate. So any color there would be great. Thanks. Yeah, totally. Great question, Chris. So actually, I did comment on this in a press release not too long ago was sort of in my quote section. And it's a really, really good question, because it sort of highlights the improving fleet efficiency.

Speaker Change: As you as you fully ramp it maybe a little bit of an outlook for the rest of or the beginning of fiscal 'twenty six because you got a lot of low cost power coming on line.

Speaker Change: More efficient machines has grown we've also seen a recent improvement in network cost rates. So any color there would be great. Thanks, Yeah totally great question, Chris So.

Speaker Change: Actually I did comment on this in a press release not too long ago was sort of in my quote section.

Speaker Change: And.

Speaker Change: So really really good question, because it sort of highlights the improving.

Speaker Change: Improving fleet efficiency. So this quarter right like I kind of extremely proud of the team and you know so thrilled when I went down to Paraguay, a couple of weeks ago to see.

Aydin Kilic: So this quarter, right, like, I, again, extremely proud of the team. And, you know, so thrilled when I went down to Paraguay a couple weeks ago to see, you know, the completed first 100 megawatts and just, you know, everyone and by the way, like, thanks, everyone. Great show. Like 60 people dial into this call. And I know all the analysts that follow the story so closely and have such deep insight. As you guys all know, we brought on 5x a hash five weeks in a row, right? It was it was extremely momentous. And so but to that end, all of that hash rate growth is in the last five weeks.

Speaker Change: You know the completed first hundred megawatts and just.

Speaker Change: Everyone and by the way like thanks, everyone. Great show, maybe like 60 people dial into this call and I know all of the analysts that follow our story, so closely and have such deep insight.

Speaker Change: As you guys. All know we brought on five X a harsh five weeks in a row right.

Speaker Change: Is extremely momentous.

Speaker Change: And so but to that and all of that attach rate growth is in the last five weeks. So that's all in this quarter right. So.

Aydin Kilic: So that's all in this quarter, right? So two things. First of all, the fleet efficiency, a big portion of that 5x a hash was F21 plus air cooled units at 16.5 joules for tera hash, right. And, and so our global efficiency, sort of this current quarter is, is now 20 joules a tera hash. That will drop down to 18.4 Joules per TeraHash when Phase 2 comes online, and then 17.5 Joules per TeraHash when Phase 3 is completed this fall. So, you're sort of having this graduated improvement because the hydros that we're bringing online in Phase 2, like Phase 2 is going to be all F21 plus hydros.

Speaker Change: Things first of all the fleet efficiency, a big portion of that five X a harsh was F. 'twenty one plus.

Speaker Change: Air cooled units at $16 five tools for Taro hash right and and so our global efficiency.

Speaker Change: Sort of this current quarter is is now 20 joules of terror Hush.

Speaker Change: That will drop down to 18 point for juul to prepare a harsh when phase two comes online and then 17.5 jewels for Terra hashed.

Speaker Change: When phase III is completed this fall so you're sort of having this graduated improvement because the hydrus that we're bringing online in face to face. He was gonna be all F. 'twenty, one plus hydro's.

Aydin Kilic: And by the way, I think we put some really nice photos in the recent press release that Those containers are on site now, and they're being installed, which is super exciting. So, that will all be 15 Joule per TeraHash. Hydros. Hydros are more efficient than air-cooled. Hydros are 15 joules a terahash. coming into this quarter, right? And so bringing on all those. S21 plus errors gets us to 20. So that in and of itself... like interim spot pricing was as low as like $0.02 Canadian on some days, now New Brunswick is 70 megawatts, half of that is fixed and half of that is spot, so I'm anticipating, and we've commented that spot price in New Brunswick have been attractive, so I think we're looking forward to better energy prices as well, I don't want to put a number on it, but I can comment, of course, on the efficiency, I mean, we've disclosed all that, but I think directionally, you know, with Paraguay coming online and spot prices generally being more attractive in the summer compared to the winter historically, yeah, it's going to be, I'm difficulties dropping, which is nice, that's definitely everybody likes that, so yeah, it's looking good, Chris.

Speaker Change: And by the way like the I think we put some really nice photos in the recent press release, a commemorative 11 extra harsh those containers are on take now and they're being installed which is super exciting. So that will all be 15 jewel portera harsh.

Speaker Change: Hydro is of hydro's are more efficient they are cool hydro or 15 <unk>.

Speaker Change: F 'twenty, one plus air cools are $16 five <unk>. So as we bring that those hydro's online. That's what continues to improve the overall global inefficiency and what will land, it's actually closer to $17 three but just put 17.5 year models to be conservative.

Speaker Change: And and Yeah. So you go from I believe we were coming in.

Speaker Change: About 20.

Speaker Change: Two twenty-three coming into this quarter right.

Speaker Change: And so bringing on all of those.

Speaker Change: Our F 'twenty, one plus areas it gets us to 20, so that in and of itself.

Speaker Change: Sort of from period end March 31 to period end June rate quarter over quarter is a 10% improvement.

Speaker Change: In.

Speaker Change: 10 to 15, I guess percent improvement.

Speaker Change:

Speaker Change: Inefficiency right and then with with power cost power cuts were actually seen really really good.

Speaker Change: Power in New Brunswick, like interim spot pricing.

Speaker Change: Was as low as like two cents Canadian on some days now New Brunswick is 70 megawatts half of that is fixed and half of that is spot so you're you're anticipating.

Speaker Change: Anticipating and we've commented that spot price for new friends, which had been had been attractive so I.

Speaker Change: I think we're looking forward to better energy prices as well I don't want to put in a number on it but I can comp.

Speaker Change: Comment of course on the efficiency I think we've disclosed all that but I think directionally.

Speaker Change: You know with Paraguay, coming online and spot prices are generally being more attractive than in the.

Speaker Change: The summer compared to the winter historically.

Speaker Change: Yeah, it's gonna be I'm looking forward to a good quarter and do you noted.

Speaker Change: Difficulties dropping.

Speaker Change: Which is nice.

Speaker Change: Definitely everybody likes that so.

Speaker Change: Yeah, it's looking good Chris.

Aydin Kilic: I'm looking forward to it to see how much it improves in that fiscal first quarter. Thanks so much. Congrats again. You bet. Thank you. Thank you, Chris.

Speaker Change: Looking forward to introducing how much it improves in that fiscal first quarter. Thanks. So much. Congrats again you bet. Thank you.

Nathan Fast: That concludes our Q&A session and our Q4 and full year 2025 earnings call. Thank you everyone for joining. We look forward to speaking to you again soon.

Speaker Change: Chris that concludes our Q&A session and our Q4 and full year 2025 earnings call. Thank you everyone for joining we look forward to speaking to you again soon.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Yeah.

Operator: The recording has stopped. Goodbye.

Speaker Change: Yeah.

Speaker Change: Goodbye.