Q3 2025 Hut 8 Mining Corp Earnings Call

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Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by 1 on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Sue Ennis, Head of Investor Relations. You may begin.

After the Speakers' remarks, there will be a question and answer session.

If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad.

If you would like to withdraw your question Press Star one again.

I would now like to turn the call over to Sue N as head of Investor Relations.

You may begin.

Good morning, and welcome to <unk> third.

Third quarter 2025 financial results conference call joining us today are our CEO <unk>.

Sue Ennis: Good morning, welcome to Hut 8's Q3 2025 Financial Results Conference Call. Joining us today are our CEO, Asher Genoot, and our CFO, Sean Glennan. Following the presentation, we will open the line for questions. This event is being recorded, and a transcript will be made available on our website. In addition to the press release issued earlier today, our full quarterly report on Form 10-Q is available at hut8.com, on our EDGAR profile at sec.gov, and on our SEDAR+ profile at sedarplus.ca. Unless otherwise indicated, all figures discussed today are in US dollars. Certain statements made during this call may constitute forward-looking statements within the meaning of applicable securities laws. These statements reflect current expectations and are subject to risks and uncertainties that could cause actual results to differ materially.

And as CFO, Sean Glennon following the presentation, we will open the line for questions.

This event is being recorded and a transcript will be made available on our website.

In addition to the press release issued earlier today, our full quarterly report on Form 10-Q.

Billable at <unk> Dot com on our Edgar profile.

<unk> Dot Gov, and on our theater plus profile at SEDAR plus dossier.

Unless otherwise indicated all figures discussed today are in U S dollars.

Certain statements made during this call may constitute forward looking statements within the meaning of applicable securities laws. These statements reflect current expectations and are subject to risks and uncertainties that could cause actual results to differ materially certainty risks are detailed in our Form 10-K.

Sue Ennis: Certain key risks are detailed in our Form 10-K for the year ended 31 December 2024, and our other continuous disclosure documents. Except as required by law, we assume no obligation to update or revise any forward-looking statements. During the call, management may reference non-GAAP measures such as adjusted EBITDA. We believe these metrics, alongside GAAP results, provide valuable insight into our performance. Reconciliations of GAAP and non-GAAP results are included in the tables accompanying today's press release available on our website. With that, I'll turn the call over to our CEO, Asher Genoot.

For the year ended December 31, 2024, and our other continuous disclosure documents.

As required by law, we assume no obligation to update or revise any forward looking statements.

During the call management May reference non-GAAP measures such as adjusted EBITDA. We believe these metrics alongside GAAP results provide valuable insight into our performance reconciliations of GAAP and non-GAAP results are included in the tables accompanying today's press release available on our website.

With that I'll turn the call over to our CEO Asher renewed.

Thank you Sue and good morning, everyone.

Asher Genoot: Thank you, Sue, and good morning, everyone. Earlier this year, we introduced our 2025 strategy. At its foundation is our development flywheel, a framework designed to compound returns through four integrated stages of platform development, origination, investments, monetization, and optimization. This model defines how we scale across our power, digital infrastructure, and compute layers under a unified power-first architecture. The Q3 marked a clear inflection point in the velocity of that flywheel. That acceleration is evident not only in our financial results, but also in the step change extension of our near-term growth runway. Together, these outcomes reflect the strength of a diversified platform operating as a single integrated engine. Let's begin with our results. I'll share the highlights now before turning it over to Sean for a detailed review later in the call.

Earlier this year, we introduced our 2025 strategy.

This foundation is our development flywheel, a framework designed to compound returns through four integrated stages of platform development.

Origination fees.

Vestments monetization and optimization.

This model defines how we scale across our power digital infrastructure and compute layers under a unified trial first architecture.

The third quarter marked a clear inflection points and the velocity of that flywheel.

And that acceleration is evident not only in our financial results, but also in the step change extension of our near term growth runway.

Together these outcomes reflect the strength of a diversified platform operating as a single integrated engine.

Let's begin with our results.

I will share the highlights now before turning it over to Sean for a detailed review later in the call.

In the third quarter of 2025, we delivered revenue of $83 5 million up 91% year over year.

Asher Genoot: In Q3 2025, we delivered revenue of $83.5 million, up 91% year-over-year. This increase was driven primarily by the expansion of Bitcoin mining revenue through American Bitcoin, the purpose-built Bitcoin accumulation vehicle we launched earlier this year. American Bitcoin has scaled rapidly since its debut on the Nasdaq, contributing to significant top-line growth in our compute segments. Because American Bitcoin is a consolidated subsidiary, its revenue is reported entirely within our compute segments. Meanwhile, the infrastructure and services it consumes from Hut 8 are treated as intercompany transactions and eliminated in consolidation, despite representing real and recurring economic activity. In effect, what appears in Compute today reflects only the surface layer of a robust commercial engine fueled by our power and digital infrastructure businesses.

This increase was driven primarily by the expansion of bitcoin mining revenue through American Bitcoin. The purpose built bitcoin accumulation vehicle, we launched earlier this year <unk>.

American Bitcoin has scaled rapidly since its debut on the NASDAQ contributing to significant top line growth and our compute segments.

Because American bitcoin as a consolidated subsidiary its revenue as reported entirely within our compute segments.

Meanwhile, the infrastructure and services it consumes from holiday are treated on intercompany transactions and eliminated in consolidation, despite representing real and recurring economic activity.

In effect what appears in compute today reflect any of the surface layer of a robust commercial engine fueled by our power and digital infrastructure businesses.

Importantly, our results reflect not only top line growth, but also early evidence of commercial and financial synergies across the platform.

Asher Genoot: Importantly, our results reflect not only top-line growth, but also early evidence of commercial and financial synergies across the platform. Net income was $50.6 million versus $0.9 million in the prior year period, and adjusted EBITDA was $109 million versus $5.6 million in the prior year period. These metrics reflect a $76.6 million gain on digital assets versus a $1.6 million loss on digital assets during the prior year period, both recorded in accordance with FASB's fair value accounting guidance. Beyond strong headline performance, Q3 demonstrates the structural advantage we have unlocked by carving out the majority of our legacy Bitcoin mining business into a standalone entity.

Net income was $50 6 million versus <unk> 9 million in the prior year period, and adjusted EBITDA was $109 million versus $5 6 million in the prior year period. These metrics reflect the $76 $6 million gain on digital.

Assets versus a $1 $6 million loss on digital assets during the prior year period, both recorded in accordance with FASB is fair value accounting guidance.

Beyond strong headline performance with third quarter demonstrates the structural advantage, we have unlocked by carving out the majority of our legacy bitcoin mining business into a stand alone entity.

That separation is clarified our mandate and streamlined our capital allocation framework, enabling us to focus on scaling lower cost of capital businesses, such as co location.

Asher Genoot: That separation has clarified our mandate and streamlined our capital allocation framework, enabling us to focus on scaling lower cost of capital businesses such as colocation. During Q3, that clarity drove tangible momentum at the foundation of our development flywheel, the power layer. From the outset, we recognized that large load technologies like Bitcoin mining and AI computing are at their core functions of how effectively energy can be harnessed, deployed, and monetized. That insight shaped how we built Hut 8. We engineered the business around power expertise and designed it to transcend any single application. Today, surging computational demand has transformed energy from a background input into a defining constraint to growth. For us, that constraint represents an advantage. Hut 8 was built from day one with a power-first, innovation-driven strategy.

During the third quarter that clarity drove tangible momentum at the foundation of our development flywheel for power layer.

From the outset, we recognize that large low technologies like bitcoin mining and AI computing are at their core functions of how effectively energy can be harnessed deployed and monetize.

That insight shape, how we build.

We engineered the business around power expertise and designed it to transcend any single application.

Today surgery computational demand has transformed energy from a background input into a defining constraint to growth.

US that constraint represents an advantage.

I think it was built from day, one with a power first innovation driven strategy.

By integrating power digital infrastructure and compute assets at scale, we aimed to address energy demand from the world's most transformative technologies for decades to come.

Asher Genoot: By integrating power, digital infrastructure, and compute assets at scale, we aim to address energy demand from the world's most transformative technologies for decades to come. Early last year, shortly after I became CEO, we began translating our power-first strategy into our external reporting. We introduced new performance metrics such as energy capacity under management and energy capacity under exclusivity, which reflected the utility grade depth and rigor with which our power native team operated and scaled the business. At the time, our focus on energy was contrarian in a sector still oriented around exahash and other end application metrics. Since then, the exponential rise of AI and the broad adoption of energy-based performance metrics have validated our founding conviction that energy is not merely an input, but a structural source of value creation and competitive advantage.

Early last year shortly after I became CEO, we began translating our power first strategy into our external reporting.

We introduced new performance metrics, such as energy capacity under management and energy capacity under exclusivity.

Which reflected the utility grade debt and rigor with which our power native key operated and scale the business.

At the time, our focus on energy was contrarian in our sector scale oriented around extra cash and other and application metrics.

Since then the exponential rise of AI and the broad adoption of energy based performance metrics have validated our founding conviction that energy is not merely an input, but a structural source of value creation and competitive advantage.

This shift underscores a fundamental distinction in the role of power within our business.

Asher Genoot: This shift underscored a fundamental distinction in the role of power within our business. For many, power is a reporting overlay on a legacy model or a reactive pivot to capture new value. For us, it has always been the foundational driver of our growth, the lens through which we scale, deploy capital, and allocate resources. The development flywheel we introduced earlier this year codifies that foundation. It defines how we originate, invest in, monetize, and optimize critical infrastructure assets across four interconnected stages. By aligning these stages under a single power-first framework, we can systematically convert development opportunity into tangible value with increasing speed and capital efficiency. As the benefits of this framework have compounded across our organization, our flywheel has entered a new phase of scale and execution. In Q3, that momentum drove the launch of our largest expansion initiative to date.

For many powers a reporting overlay on our legacy model or a reactive pivot to capture new value.

For us.

It has always been the foundational driver of our growth.

The lens through which we scale.

Alloy capital and allocate resources.

The development flywheel, we introduced earlier this year codified Dot Foundation.

It defines how we originate invest and monetize and optimize critical infrastructure assets across four interconnected stages.

By aligning these stages under a single power first framework, we can systematically convert development opportunity into tangible value with increasing speed and capital efficiency.

As the benefits of this framework have compounded across our organization. Our flywheel have entered a new phase of scale and execution.

In the third quarter that momentum drove the launch of our largest expansion initiatives to date.

Training for U S locations with a combined 1530 megawatts of utility capacity. This initiative has the potential to more than double the scale of our platform.

Asher Genoot: Spanning four US locations with a combined 1,530 MW of utility capacity, this initiative has the potential to more than double the scale of our platform, diversify our presence across strategic energy markets, and position us to meet growing demand across energy-intensive applications. It underscores both the depth of our development pipeline and the scalability of our platform. In conjunction with the launch of this initiative and building on our early sector leadership in power-first growth and performance metrics, we refined our reporting framework to more precisely capture the maturity and velocity of our development flywheel. This refinement is formalized in a new stage of our development pipeline, Energy Capacity Under Development, which is positioned between Energy Capacity Under Exclusivity and Energy Capacity Under Management. Capacity Under Development bridges origination and monetization, providing greater visibility into late-stage projects that have advanced beyond exclusivity.

Diversify our presence across strategic energy markets and position us to meet growing demand across energy intensive applications.

Underscoring both the depth of our development pipeline and the scalability of our platform.

In conjunction with the launch of this initiative and building on our early sector leadership in power first growth and performance metrics, we refine our reporting framework more precisely capture the maturity and velocity of our development flywheel.

This refinement is formalized in a new stage of our development pipeline.

Capacity under development, which is positioned between energy capacity under exclusivity and energy capacity under management.

Capacity under development, fridges origination and monetization, providing greater visibility into late stage projects that adds advanced beyond exclusivity.

The sites, where critical development work is underway, including the execution of land and power agreements site design, and then infrastructure buildout and engagement with prospective customers.

Asher Genoot: It applies to sites where critical development work is underway, including the execution of land and power agreements, site design and infrastructure build-out, and engagement with prospective customers. Capacity advances from exclusivity to development, ultimately converting to Energy Capacity Under Management upon monetization. In the near term, our focus is on commercializing the 4 sites in our expansion portfolio, representing 1,530 MW of Energy Capacity Under Development. The sites range in scale from 50 MW to 1 GW of utility capacity, each selected for near-term power access and the potential to support commercialization across a range of advanced technologies. Guided by our first principles approach to digital infrastructure, we continue to advance design and commercialization initiatives with prospective customers. Where appropriate, we will seek to incorporate next generation architecture that enables rapid capital efficient deployment and the flexibility to support a range of customer requirements.

Capacity advances from exclusivity to development ultimately converting to energy capacity under management upon monetization.

In the near term our focus is on commercializing the fore sight and our expansion portfolio.

Presenting 1530 megawatts of energy capacity under development the size range in scale from 50 megawatts to one gigawatt of utility capacity.

Each selected for near term power access.

And the potential to support commercialization across a range of advanced technologies.

Guided by our first principles approach the digital infrastructure, we continue to advance design and commercialization initiatives with prospective customers.

Where appropriate we will seek to incorporate next generation architecture that enables rapid capital efficient deployment and the flexibility to support a range of customer requirements.

Across our expansion portfolio and broader development pipeline, we continue to execute against a long held ambition to build a platform that evolve alongside energy intensive technologies for decades to come.

Asher Genoot: Across our expansion portfolio and broader development pipeline, we continue to execute against a long-held ambition to build a platform that evolves alongside energy-intensive technologies for decades to come. From the world-shaping innovations of today to the nascent ideas of tomorrow and the breakthroughs yet to be achieved. Today, the conversation is rightly dominated by AI. The scale and intensity of AI compute demand is unlike anything the power sector has seen. We believe this is only the first chapter of a much longer story. We believe the same power infrastructure that underpins AI and high performance computing today will over time form the backbone for a broader class of next generation technology. While it is still early, we're beginning to see directional interest from adjacent sectors that recognize that large-scale power infrastructure will be foundational to what comes next.

From the world shaping innovations of today to the nascent ideas of tomorrow and the breakthrough is yet to be achieved.

Today, the conversation is rightly dominated by AI.

Scale and intensity of AI compute demand is unlike anything in the power sector has seen.

We believe this is only the first chapter of a much longer story.

We believe the same power infrastructure that underpins AI and high performance computing today will overtime form the backbone for a broader class of next generation technology.

While it is still early we're beginning to see directional interest from adjacent sectors that recognize that large scale power infrastructure will be foundational to what comes next.

Our platform is designed for that future and we are building it for now.

Asher Genoot: Our platform is designed for that future, and we are building it for now. As always, we will remain disciplined in how we structure and underwrite new opportunities, deploying capital only where we see a clear path to long-term value creation. We will not chase trends, and we'll continue to prioritize durable returns over short-term gain as we strive to build an enduring generational business at the intersection of energy and technology. With that, I'll turn it over to Sean.

As always we will remain disciplined in how we structure and underwrite new opportunities.

<unk> capital only where we see a clear path to long term value creation.

We will not chase strategy, and we will continue to prioritize durable returns over short term gain as we've tried to build an enduring generational business at the intersection of energy and technology.

With that I'll turn it over to Sean.

Thanks Asher.

Before I review, our third quarter 2025 results by segment I want to briefly clarify our reporting structure, particularly as it relates to American bitcoin.

Sean Glennan: Thanks, Asher. Before I review our Q3 2025 results by segment, I want to briefly clarify our reporting structure, particularly as it relates to American Bitcoin. Because American Bitcoin is a consolidated subsidiary, revenue from its Bitcoin mining operations is reported within our Compute segment. However, revenue earned by Hut 8 through our managed services and ASIC colocation agreements with American Bitcoin within our Power and Digital Infrastructure segments respectively is eliminated in consolidation, as is revenue from our shared services agreement with American Bitcoin. With that context, let's turn to our results. We begin with Power, which consists of power generation and managed services. Segment revenue declined year-over-year from $26.2 million to $8.4 million, reflecting the full impact of the wind-down of our managed services agreement with Ionic Digital in late 2024.

Because American bitcoin as a consolidated subsidiary revenue from its bitcoin mining operation is reported within our computer segment.

However revenue earned by hut eight through our managed services and ASIC Colocation agreement with American Bitcoin within our power and digital infrastructure segments, respectively is eliminated in consolidation as as revenue from our shared services agreement with American Bitcoin.

With that context, let's turn to our results.

We begin with power, which consists of power generation and managed services.

Segment revenue declined year over year from $26 2 million to $8 4 million.

Reflecting the full impact of the wind down of our managed services agreement with Ionic digital in late 2024.

The resulting $17 $8 million reduction in managed services revenue was partially offset by a $1 $9 million increase in power generation revenue.

Sean Glennan: The resulting $17.8 million reduction in managed services revenue was partially offset by a $1.9 million increase in power generation revenue, driven by elevated demand across our portfolio of 4 natural gas-fired power plants in Ontario. While these results capture the termination of our MSA with Ionic, they do not reflect the full earnings power of our power segment. During the quarter, we expanded our managed services agreement with American Bitcoin to 325 MW of contracted capacity, the largest in our history. This milestone supports the broader structural shift we have executed this year from merchant exposure to long-term contracted revenue. At quarter end, more than 85% of our energy capacity under management is commercialized under executed agreement with terms of 1 year or longer, positioning our power segment for greater earning visibility and recurring returns.

Given by elevated demand across our portfolio of for natural gas fired power plants in Ontario.

While these results captured the termination of our MSA with Ionic and that reflects the full earnings power of our power segment.

During the quarter, we expanded our managed services agreement with American Bitcoin to 325 megawatts of contracted capacity the largest in our history.

This milestone supports the broader structural shift we have executed this year.

Merchant exposure to long term contracted revenue at.

At quarter end more than 85% of our energy capacity under management is commercialized under executed agreement with periods of one year or longer positioning our power segment for greater earnings visibility and recurring returns.

Segment cost of revenue rose from 5 million to.

Sean Glennan: Segment cost of revenue rose from $5 million to $6.5 million, reflecting a $3.6 million increase in power generation cost of revenue due to higher output during the period. This was partially offset by a $2.1 million decrease in managed services cost of revenue following the termination of our MSA with Ionic. We turn next to Digital Infrastructure, which consists of ASIC colocation and CPU colocation. Segment revenue increased 31% year over year to $5.1 million. Driven primarily by the ramp-up of our ASIC colocation activity at our Vega site, which was initially energized in June 2025. Revenue generation commenced under an ASIC colocation agreement with Bitmain, supporting nearly 15 exahash of capacity delivered by the next generation ASIC machines we co-developed with the manufacturer.

$6 5 million.

Reflecting a $3 $6 million increase in power generation cost of revenue due to higher output during the period.

This was partially offset by a $2 $1 million decrease in managed services cost of revenue following the termination of our MSA with ionic.

We turn next to digital infrastructure, which consists of ASIC colocation and CPU co location.

Segment revenue increased 31% year over year to $5 $1 million, driven primarily by the ramp up of our AC co location activity to our Vega site, which was initially energized in June 2025.

Revenue generation commenced under an ASIC colocation agreement with between supported and another <unk> <unk> of capacity delivered by the next generation ASIC machines, we co developed with the manufacturer.

In August and September American fit client exercised its option to purchase those machines.

Sean Glennan: In August and September, American Bitcoin exercised its option to purchase those machines. As a result, our colocation agreement with BITMAIN concluded in September. We subsequently transitioned to managed services and ASIC colocation agreements with American Bitcoin and continued to operate the fleet under these agreements. Because American Bitcoin is a consolidated subsidiary, revenue from these agreements is eliminated in consolidation and therefore not reflected in reported segment results for our Power and Digital Infrastructure segments respectively. Operationally, Vega remains active. Financially, revenue is now recognized as intercompany rather than third party. Segment cost of revenue rose modestly year-over-year to $3.8 million. This $0.1 million increase was mainly driven by higher electricity and connectivity costs across our 5 traditional data centers in Canada. Finally, we turn to compute, which consists of Bitcoin mining, data center cloud, and GPU as a Service.

As a result, our Colocation agreement with <unk> concluded in September we.

We subsequently transitioned to managed services and Asa Colocation agreements with American Bitcoin and continue to operate the fleet under these agreements.

Because American bitcoin as a consolidated subsidiary revenue from these agreements is eliminated in consolidation and therefore not reflected in our reported segment results for our power and digital infrastructure segments, respectively.

Operationally Mega remains active financially revenue is now recognized as inter company rather than third party.

Segment cost of revenue rose modestly year over year to $3 8 million.

At this point $1 million increase was mainly driven by higher electricity and connectivity costs across our five traditional data centers in Canada.

Finally, we turn to compute which consists of bitcoin mining data center cloud and GPU as a service.

<unk> segment revenue increased more than fivefold year over year from $13 7 million to $70 million.

Sean Glennan: Compute segment revenue increased more than 5-fold year over year from $13.7 million to $70 million. Top line growth was driven primarily by the expansion of Bitcoin mining revenue from American Bitcoin. During the quarter, American Bitcoin deployed approximately 14.9 exahash of additional installed mining capacity at Vega, increasing Hut 8's total hash rate from approximately 12 exahash to approximately 26.8 exahash. Of that total, approximately 25 exahash was attributable to American Bitcoin at quarter end. Supported by a higher average price of Bitcoin during the period, this expansion delivered $54.3 million in incremental Bitcoin mining revenue. Segment also benefited from a $2.6 million increase in GPU-as-a-service revenue from Highrise AI, our wholly owned subsidiary.

Topline growth was driven primarily by the expansion of bitcoin mining revenue from American Bitcoin.

During the quarter American Bitcoin deployed approximately $14 nine <unk> of additional installed mining capacity at Vega.

Increasing <unk> total hatch rate from approximately 12 <unk> to approximately $26 eight ex ash.

Of that total approximately 25 X the hospitals attributable to American bitcoin at quarter end.

Afforded by a higher average price of bitcoin during the period. This expansion delivered $54 $3 million in incremental bitcoin mining revenue.

The segment also benefited from a $2 6 million increase in GPU as a service revenue from higher Ed AI, our wholly owned subsidiary.

Gains from Bitcoin mining and GPO. The service operations were partially offset by a <unk> 5 million decline in data center cloud revenue driven by customer churn.

Sean Glennan: Gains from Bitcoin mining and GPU-as-a-service operations were partially offset by a $0.5 million decline in data center cloud revenue driven by customer churn. Segment cost of revenue increased from $8.9 million to $22 million year over year, consistent with the significant expansion of operations and top-line growth we achieved across its segment during the quarter. Revenue growth significantly outpaced cost increases, resulting in substantial operating leverage. Segment gross profit grew tenfold from $4.8 million to $48 million year over year, and gross margin expanded by 33.5 percentage points to 68.6%. Taken together, our Q3 performance reflects the strength of our integrated platform model and the accelerating momentum of our development flywheel.

Segment cost of revenue increased from $8 9 million to $22 million year over year consistent with the significant expansion of operations in topline growth, we achieved across the segment during the quarter.

Revenue growth significantly outpaced cost increases, resulting in a substantial operating leverage segment gross profit grew tenfold from $4 8 million to $48 million year over year and gross margin expanded by 33 five percentage points to 68, 6%.

Taken together, our third quarter performance reflects the strength of our integrated platform model and the accelerating momentum of our development flywheel.

As we look ahead to the remainder of the year, our focus turns to execution across both our recently launched 1530 megawatt expansion initiative and our broader 8650 megawatt development pipeline at quarter end.

Sean Glennan: As we look ahead to the remainder of the year, our focus turns to execution across both our recently launched 1,530 MW expansion initiative and our broader 8,650 MW development pipeline at quarter end. To deliver at utility scale, we must operate from a position of both strength and flexibility and always with an eye toward the future. That has been a guiding principle of our capital strategy since I stepped into the CFO role just over 1 year ago. Over the past 12 months, we've executed on that strategy to build a financial foundation purpose-built for balanced risk-adjusted growth. The foundation of this strategy is our fortress balance sheet. Today, three key pillars support that foundation: an actively managed strategic Bitcoin reserve, disciplined access to capital markets, and a focus on responsible leverage.

The deliberate utility scale, we must operate from a position of both strength and flexibility and always with an eye towards the future that has been a guiding principle of our capital strategy since I stepped into the CFO role just over a year ago.

And over the past 12 months, we've executed on that strategy to build the financial foundation purpose built for balanced risk adjusted growth.

The foundation of this strategy is our fortress balance sheet.

Today, three key pillar support that foundation and actively managed strategic bitcoiners or disciplined access to capital markets and our focus on responsible leverage.

The first pillar is our strategic Bitcoin reserve.

Sean Glennan: The first pillar is our strategic Bitcoin reserve. At quarter end, we held 13,696 Bitcoin in reserve with a market value of approximately $1.6 billion, of which 10,278 were held by Hut 8 and 3,418 were held by American Bitcoin. Since February 2024, when Asher became CEO, we have benefited from nearly $1 billion in incremental value and liquidity from these holdings. That includes $689 million in contributions from Bitcoin price appreciation, $265 million in new Bitcoin-backed credit facilities with Coinbase and Two Prime at a blended cost of capital of 8.2% and approximately $32 million in premiums realized through covered call option strategies.

At quarter end, we held $13 696, bitcoin and reserve with a market value of approximately $1 6 billion.

Of which 10278 were held by <unk> and 3418 were held by American Bitcoin.

Since February 2024, when <unk> became CEO, we had benefited from nearly $1 billion in incremental value and liquidity from these holdings.

That includes $689 million in contributions from bitcoin price appreciation.

$265 million and new bitcoin backed credit facilities with coinbase on to prime at a blended cost of capital of eight 2% and approximately $32 million in premiums realized through covered call option strategies.

These results validate our conviction that bitcoin when actively and responsibly manage becomes a productive reserve asset that enhances liquidity provides optionality and reduces reliance on equity.

Sean Glennan: These results validate our conviction that Bitcoin, when actively and responsibly managed, becomes a productive reserve asset that enhances liquidity, provides optionality, and reduces reliance on equity. The second pillar is disciplined access to capital markets. During the quarter, we significantly reinforced this pillar with the addition of a $200 million revolving credit facility with Two Prime and the launch of a new $1 billion at-the-market equity program. Simultaneously with the launch of our new ATM program, we closed our previous ATM with 40% of its capacity unutilized. Shares issued under the prior program were sold on average at a 50% premium to the average trading price during the period, underscoring a disciplined approach focused on minimizing excess dilution. The third and final pillar is responsible leverage.

The second pillar is disciplined access to capital markets during.

During the quarter, we significantly reinforced this pillar with the addition of a $200 million revolving credit facility with two prime and the launch of a new $1 billion at the market equity program.

Simultaneously with the launch of our new ATM program.

Our previous ATM with 40% of its capacity Unutilized.

Shares issued under the prior program were sold on average at a 50% premium to the average trading price during a period.

Underscoring a disciplined approach focused on minimizing excess dilution.

The third and final pillar is responsible leverage.

There's a joke among financing bankers that goes something along the lines of this.

Sean Glennan: There's a joke among financing bankers that goes something along the lines of this: Just because I'll give you leverage doesn't mean you should take it. Leverage is often easy to add but expensive and painful to unwind. We, as a management team, understand these realities, and they inform our decision-making on a daily basis as stewards of shareholder capital. When paired with a fortress balance sheet, responsible leverage fuels operating growth and provides strategic flexibility. As we continue to execute on our business plan, we will aim to make capital decisions in a manner designed to minimize enterprise risk and support long-term growth. In closing, the Q3 marked a clear inflection point in both our 2025 strategy and the velocity of our development flywheel.

Just because I will give you leverage doesn't mean you should take it.

<unk> leverages, often easy to add that expensive and painful to unwind.

As a management team understand these realities and then farmer decision, making on a daily basis as stewards of shareholder capital.

When paired with a fortress balance sheet.

Possible leverage fuels operating growth and provides strategic flexibility as.

As we continue to execute on our business plan, we will aim to make capital decisions in a manner designed to minimize enterprise risk and support long term growth.

In closing the third quarter marked a clear inflection points in both our 2025 strategy and the velocity of our development flywheel we.

We believe this reflects a business with structural advantage proven commercial velocity and a long runway for continued growth and value creation at the intersection of energy and technology.

Sean Glennan: We believe this reflects a business with structural advantage, proven commercial velocity, and a long runway for continued growth and value creation at the intersection of energy and technology. Backed by a fortress balance sheet, disciplined capital framework, and diversified platforms spanning power, digital infrastructure, and compute, we are executing from a position of strength as we build what we believe will become a category-defining business for the next era of energy-intensive innovation. Operator, please open the line for Q&A.

Backed by a fortress balance sheet disciplined capital framework and diversified platform spanning power digital infrastructure and compute.

We're executing from a position of strength as we build what we believe will become a category defining business for the next era of energy intensive innovation operator, Please open the line for Q&A.

At this time I would like to remind everyone in order.

Operator: At this time, I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. Your first question comes from the line of Patrick Moley with Piper Sandler. Please go ahead.

To ask a question.

Then the number one on your telephone keypad.

Your first question comes from line of Patrick <unk> with Piper Sandler. Please go ahead.

Yes. Good morning, Thanks for taking the question a little bit of a two parter for me.

Patrick Moley: Yes, good morning. Thanks for taking the question. A little bit of a two-parter from me. Would love to get an update on just how conversations have trended with potential AI HPC tenants since the last earnings call. Second, there appears to be a notable difference in how the market is valuing your power pipeline relative to some of your competitors. That being, you know, there seems to be a steep discount placed on the 1.5 GW that you currently have under development. Just wondering if you have any thoughts on what has led to this disconnect and whether you think it's warranted. Thanks.

Love to get an update on just how conversations have trended with potential AI HCC tenants.

The last earnings call and then second.

There appears to be a notable difference in how the market is valuing your power pipeline relative to some of your competitors that being.

It seems to be a steep discount placed on the one five gigawatts that you currently have under development.

So just wondering if you have any thoughts on what has led to this disconnect and whether you think it's warranted.

Thanks, Great to hear from you.

I'll start on the second lien loans in the first I think the second one is simple people want to see us execute and prove out the ability to come broker power pipeline and then we will get more value for it which I think is fair and so for the investors that are waiting to see execution I think they'll see Val.

Asher Genoot: Thanks. Great to hear from you. I'll start on the second and go into the first. I think the second one is simple. People want to see us execute and prove out the ability to convert the power pipeline, and then we'll get more value for it, which I think is fair. So for the investors that are waiting to see execution, I think they'll see value contributed to that pipeline as that execution leads that. That's to your second question. Onto the first. It's no surprise the market is very hot over the last couple of months. A ton of demand. The conversations we're having have progressed even faster.

<unk> contributed to that pipeline execution.

Leave that.

To your second question onto the first it's no surprise market is very hot over the last couple of months a ton of demand. The conversations we're having are progressed, even faster when we think about a deal and I know a lot of folks are on this call.

Sean Glennan: When we think about a deal, and I know a lot of folks are on this call, around this question, might as well go into it a little bit in detail here. When we think about a deal, we think about it holistically. Who is the customer? What are the commitments we're making to that customer? How are we gonna finance that agreement? Where is our supply chain going to come from? How are we going to build that site?

Around this question and so might as well go into a little bit in detail here. When you think about a deal we think about it holistically who is the customer what are the commitments, we're making to that customer how are we going to finance that agreement, whereas our supply chain going to come from and how are we going to build that site all coupled together with the local relationship.

Asher Genoot: All coupled together with the local relationships we have with the communities, the states, to create a project that is set up for success and that can actually execute. If we look at the timelines in which customers want these data centers delivered, they're faster than any historical data center timelines from a greenfield build to delivery to the customer. It's really important, in our opinion, to have these specific pillars as a part of the deal concrete and solidified as you deliver and commit to these obligations on these long-term contracts that we hope to continue to grow and scale with customers as we build credibility and delivery execution with them in the overall market.

So we have with the communities the states.

Create a project that is set up for success and that can actually execute if we look at the timelines and which customers want. These data center delivered they are faster than any historical data center timelines from a greenfield build to deliver to the customer. So it's really important in our opinion to have these specific pillars as a part of the deal.

Concrete and solidified as you deliver and commit to these obligations on these long term contracts that we hope to continue to grow and scale with customers as we build credibility.

And delivery execution with them in the overall market.

Your next question comes from the line of George Sutton with Craig Hallum. Please go ahead.

Operator: Your next question comes from the line of George Sutton with Craig-Hallum. Please go ahead.

Thank you Asher you made an interesting comment that you felt AI is only the first chapter of the story. There. There are other chapters to come and you're positioning yourself for that can you be a little bit more specific about what you are referring to there.

George Sutton: Thank you. Asher, you made an interesting comment that you felt AI is only the first chapter of the story. There are other chapters to come, and you're positioning yourself for that. Can you be a little bit more specific about what you're referring to there?

Yes, when we started the business and when I say it started the business U S corn corporate's done merchant.

Asher Genoot: Yeah. When we started the business, and when I say started the business, US Bitcoin Corp, which then merged into Hut 8, the thesis was that as technologies evolve, their consumption on power will increase. We started with Bitcoin mining because we felt like it was an under-computer sector that allowed us to arbitrage electrons and energy, and capture load and help build that new generation. The thought when we started the business was always we would be more than just a Bitcoin mining company. At the time, the foresight was not to AI and data centers, but we looked at green hydrogen, we looked at carbon capture, a lot of other technologies, industrial batteries. A lot of those, the economics did not actually pencil out as we dove deeper.

The thesis was that as technologies evolve their consumption on power will increase and we started with bitcoin mining because we felt like it was an under computer sector that allowed us to arbitrage electrons in energy and capture load and help build net new generation. The thought when we started the business was always will be more than just a big one.

Mining company at the time, the foresight was not to AI and data centers, but we looked at green hydrogen we looked at carbon capture while other technologies industrial battery a lot of those the economics did not actually pencil out as we go deeper and obviously AI and where it stands today, we think is an incredible opportunity due to the.

Asher Genoot: Obviously AI and where it stands today, we think is an incredible opportunity due to the changing tide in the scale of these sites that allow you to be a leading platform within the world, in competing today as a newcomer rather than an existing incumbent. The technology is changing, so you can innovate right now at the forefront of this sector as well. What I believe we did in the Bitcoin mining sector is we're a leader in that industry today, and we did not want to pivot out of that technology and just focus on the next new shiny object. We wanted to layer that into our platform. That was one critical portion of what we did this quarter with American Bitcoin. I think many thought it was not possible.

Changing tide in the scale of the site that allows you to be a leading platform within the world.

And competing today.

The new covert rather than an existing incumbents. The technology is changing so you can innovate right now at the forefront of this sector as well and so what I believe we did win the bitcoin mining sector is we're a leader in that industry today.

And we did not want to pivot out of that technology and just focus on the next few shiny object, we want to layer that into our platform announced one critical portion of what we did this quarter with American Bitcoin I think many thought it was not possible and without spin out. If you look at the financials of American Bitcoin in this first quarter and an American <unk> 64.

Asher Genoot: With that spin out, if you look at the financials of American Bitcoin in this first quarter, I mean, American Bitcoin did $64 million in revenue at about $28 million in cost at 56% margin. I mean, that's a great first quarter in this public debut as a public company when the company was only started in Q2 of this year. As we think about our ability to scale and grow within that sector which we first started, we think we're a leading provider and leading operator within that industry, and we look to do the same in the data center market. As we look forward into the future, there's additional demand that we see from a power perspective, from advanced manufacturing, from large-scale campuses that drive robotics, other energy-intensive use cases as well.

Yeah.

And revenue at about $28 million in costs at 56% margin I mean, that's a great first quarter and its public debut as a public company. When the company was only started in Q2 of this year and so as we think about our ability to scale and grow within that sector, which we first started we think we are a leading provider and leading operator.

Within that industry, and we look to do the same in the datacenter market as we look forward into the future. There's additional demand that we see from a power perspective from advanced manufacturing from large scale campuses.

Robotics other energy intensive use cases, as well and it's interesting because some of the sites that we have in our pipeline folks have reached out because locally people know that we have access to that land or where that power.

Asher Genoot: It's interesting because some of the sites that we have in our pipeline, folks have reached out because locally, people know that we have access to that land or that power, and have had other use cases reach out as well. I think right now we stay hyper-focused on being a leader within the data center industry platform. Once we feel like we have a very strong foothold in that market and are a leader within that market, the platform of Hut 8 will be more than just a data center platform. It is already more than just a Bitcoin mining data center platform, and that's the vision for the company. Until then, we stay relentlessly focused, on developing and competing within this sector and becoming a market leader before being distracted and looking to extend to anything else.

<unk> had other use cases reach out as well I think right now we stay hyper focused on being a leader within the data center industry platform and once we feel like we have a very strong foothold in that market and are a leader within that market.

<unk> will be more than just a data center platform. It is already more than just a bitcoin mining data center platform and that's the vision for the company, but until then we say relentlessly focused.

On developing and competing within this sector and becoming a market leader before in distracted and looking to extend to anything else.

Great. Thank you.

George Sutton: Great. Thank you.

Your next question comes from the line of Darren <unk> with Roth Capital markets. Please go ahead.

Operator: Your next question comes from the line of Dylan Dupuis with Roth Capital Partners. Please go ahead.

Hey, this is Dylan on for Gary Thanks for taking my questions.

Dylan Dupuis: Hey, this is Dylan Dupuis. Thanks for taking my questions. I guess on the 1.5 GW, where do you stand in terms of progress securing some of the longer lead time items that might help with some of the build time visibility in terms of whichever of the four sites you're sort of working on consistently or one or the other?

I guess on the on the one five Gigawatts, where do you stand in terms of progress securing some of the longer lead time longer lead time items.

And that might help with some of the build time visibility in terms of whichever is of course.

We are working on consistently or one or the other.

Great question and so all four of these sites we have.

Asher Genoot: Great question. All four of these sites we have land control and then the utility agreements as well. For those projects we have in sequence right now based on customer demand and all of these projects, power is actually available before development. To your point on long lead time items and also execution in terms of who's going to be our partners in delivering execution of the sites as well in terms of labor, as that's another charge in the market. We feel comfortable in the ability to be able to deliver at a time that the market expects today. We have continued to increase our reserve of long lead time items like high to medium voltage breakers at the substation.

Land control and then the utility agreements as well.

And so for those projects, we haven't sequence right now based on customer demand and all of these projects power is actually available before development and so to your point on long lead time items and also execution in terms of who is going to be our partners in delivering execution of the sites as well in terms of labor or is that another charge.

And the market, we feel comfortable in the ability to be able to deliver at a time that the market expects today. We have continued to increase our reserve of long lead time items like high to medium voltage breakers at this substation there are a lot of our projects in which we are designing that were actually.

Asher Genoot: There are a lot of our projects in which we're designing that we're actually using similar equipment across sites. Even if the transmission level voltage is at a certain, is at a certain scale, we drop down to 34.5, we can create commonality across sites irregardless of where those sites are located and what the transmission level voltage is. By doing that and adding that into our design, we're able to procure equipment that is malleable and can move around from site to site without having to take that risk on supply chain on a single site. We continue to do that and continue to scale in that reserve that we have as well. Thank you.

<unk> using similar equipment across sites, even if the transmission level voltage because that is certain.

Is that a certain scale, we dropped down to 34, five and so we can create commonality across sites irregardless of where those sites are located what the transmission level voltages and by doing that and adding that into our design, we're able to procure equipment that is valuable and can move around from side to side without having to take that risk on supply chain.

Single site and so we continue to them continuing to scale.

That reserve that we have as well.

Okay. Thank you.

Okay.

Your next question comes from the line of Brian Dobson with clear Street. Please go ahead.

Operator: Your next question comes from the line of Brian Dobson with Clear Street. Please go ahead.

Hey, Thanks, so much for taking my question.

Brian Dobson: Hey, thanks so much for taking my question. You know, the business has evolved tremendously over the past year, and we're about to enter 2026. What key themes do you expect to emerge next year, and what do you believe Hut 8 will look like when we're discussing the company this time next year?

The business has evolved tremendously over the past year and we're about to enter 26, what key things do you expect to emerge next year and what do you believe will look like when we're discussing the company at this time next year.

The market.

Demand has only increased since we started this journey, especially as of recently.

Asher Genoot: The market demand has only increased since we started this journey, especially as of recently. I think next year is a year of execution. Next year is a year that companies need to deliver on the promises they made to customers in the market. That's extremely important in order to be able to maintain that credibility and build into it. Right now, there's an opportunity if you have power, if you have land, then demand is there because it's such a shortage of power that exists. That demand will only come back to you if you execute on the promises that you make today and you deliver on those promises. I see next year as a year of execution for data center providers, for actual AI companies that have raised the capital and need to deploy and show the growth rates of those businesses as well.

And then next year is a year of execution next year is a year that companies need to deliver on the promises they made to customers in the market and that's extremely important in order to be able to maintain that credibility and build into it right. Now there is an opportunity you would see a powered here of land and the demand is there because there's such a shortage of power that.

Yes.

But that demand will only come back to you. If you execute on the promises that you make today and you deliver on those promises so I see next year as a year of execution for datacenter providers for actual.

AI companies that have raised the capital needed to deploy and show the growth rates of those businesses as well for hub eight will speak.

Along our journey of executing on those data center platform that we announced to the market and deliver.

Asher Genoot: For Hut 8, we'll be along our journey of executing on those data center platforms that we announce to the market and deliver, and we need to show progress and continued updates on where we are, both on the sites that we already have announced and are developing and constructing, in addition to new sites and new projects. I think for us, as we provide more transparency into our pipeline and we start segmenting our pipeline from diligence to exclusivity to development to management, we hope to have people understand where are projects within our pipeline, what is the probability of the outcome that they become successful, and they can put a different weighting on each megawatt within each stage of our business.

We need to show progress and continued updates on where we are both on the sites that we already have announced that are developing and constructing and distinct from new sites and new projects I think for us as we provide more transparency into our pipeline and we start segmenting our pipeline from diligence to exclusivity to development to management.

We hope to have people understand where our projects within our pipeline what is the probability of outcome that they become successful and they can provide it put a different weighting on each megawatt within each stage of our of our business and so for US what's really important is the transparency to the market and the execution to the <unk>.

Asher Genoot: For us, what's really important is the transparency to the market and the execution to the market when we announce deals, so they're able to much better understand our business and the evolution and growth of that business past just the initial sites or two.

When we announced deals so they are able to much better understand our business and the evolution and growth of that business pasture us. The initial sites are too.

Thanks very much.

Brian Dobson: Thanks very much.

Your next question comes from the line of Steven <unk> with Jones. Please go ahead.

Operator: Your next question comes from the line of Stephen Glagola with JonesTrading. Please go ahead.

Hey, Thanks for the question. So the 300 megawatts of gross capacity I've ever been what is your expected ready for service stayed for hypothetical Colo East there and Additionally, you could share any updated milestones or timelines regarding the.

Stephen Glagola: Hey, thanks for the question. For the 300 MW of gross capacity at Riverbend, what is your expected ready for service date for a hypothetical, you know, colo lease there? Additionally, maybe you could share any updated milestones or timelines regarding the plans to scale up the site to 1 GW. Thank you.

Our plans to scale the size to one gigawatt. Thank you.

Expectation is end of 2026.

Asher Genoot: Expectation is end of 2026. The IT capacity we're looking at 300 MW utility is roughly 216 to 224 MW in IT capacity. Currently, we've sent some photos on my X account in regards to the delivery of the switch yard. Entergy has been doing a phenomenal job in the progress that they've made at the switch yard. We've already started moving forward on a lot of civil work for the last few months. The substation is in process of being built right now as well, and you'll start seeing more active construction as well, but delivery expected for end of 2026, and that's where we think there's a lot of value in that site.

The.

Capacity, we're looking at at 300 megawatts utility is roughly $2 16 to 224 megawatts capacity and currently we spend some photos on my ex accounting in regards to the deliver.

Delivery of the switch art Entergy has been doing a phenomenal job and the progress that they've made up of switch yard. We've already started moving forward on a lot of civil work for the last few months. The substation is in process of being built right now as well and Youll start seeing more active construction as well.

<unk> is expected for end of 2026, and that's where we think theres a lot of value in that site as we look at the overall campus. The beauty of finding this project and that was the high density of transmission line capacity that flow through the campus and its proximity to generation nearby as well, allowing.

Asher Genoot: As we look at the overall campus, the beauty of finding this project and this site was the high density of transmission line capacity that flow through the campus and its proximity to generation nearby as well, and allowing for the physical capacity to deliver power to the system. We've been in deep discussions with Entergy on the scale of that campus. We spent a lot of work on that in Q2 as well, with one of our customers that had demand and interest and wanted to look at that campus being larger than just 300 MW. We believe that the ability to do that exists. We've had deep discussions with Entergy, and we'll be sharing more on those updates post-announcement of the first deal.

For the physical capacity to deliver power to the system, we have been in deep discussions with <unk> on the scale of that campus. We spent a lot of work on that in Q2 as well with one of our customers at high demand and interest in want to look at that campus being larger than just 300 megawatts, we believe that the ability to do that.

And we've had deep discussions with <unk>, who will be sharing more on those updates post announcement of the first deal.

Your next question comes from the line of Joseph <unk> with Canaccord. Please go ahead.

Operator: Your next question comes from the line of Joseph Vafi with Canaccord. Please go ahead.

Hey, guys good.

Good morning, just I thought, maybe we kind of drill down a little bit.

Joseph Vafi: Hey, guys. Good morning. Just I thought maybe we kind of drill down a little bit on the Bitcoin holdings here a little bit. Clearly, it is a differentiator versus some of your peers. It does feel like some of the GPU as a Service demand is really rising. Just wondering how you're looking at that, you know, as you work on your power pipeline. You know, clearly, you know, there's value there, but it might be a little longer term to realize, the GPU as a Service could be a little shorter term, leveraging power that you already have and your balance sheet. Just wondering how you're thinking about that in kind of the pecking order of efforts and developments right now. Thank you.

On the client holdings here, a little bit clearly it is a it is a differentiator versus some of your peers and it does feel like some of the GPU as a service demand is really rising just wondering how you are looking at that.

As you work on your power pipeline clearly.

Third value there, but it might be a little longer term to realize the GPU.

<unk> could be a little shorter term.

Leveraging power that you already have in your balance sheet I'm, just wondering how youre thinking about that in kind of the pecking order of efforts developments right now thank you.

The GPU business was actually the first business we've looked at for data centers and this was pre our merger with Honey, we look at deploying our first cluster of Gpus and at the time to market and scale. We're much smaller Unfortunately took us about a year and 2023 to get through the merger and so we were about a year delayed in our.

Asher Genoot: The GPU business was actually the first business we looked at before data centers. This was pre our merger with Hut 8. We looked at deploying our first cluster of GPUs, and at the time, the market and scale were much smaller. Unfortunately, it took us about a year in 2023 to get through the merger. We were about a year delayed in our strategy to deploy those GPUs. We launched Highrise during that period of time. When we launched, it was a bit subscale with the little over 1,000 GPUs that we had in that business. As you mentioned, the demand for compute is extremely high today, and combining compute with power creates even more value. From a risk profile perspective, investing in GPUs and investing in ASICs we see as a similar risk profile.

Strategies employed to Gpus, but we launched high rise during that period of time and when we launched it was a bit subscale with.

Little over 1000, Gpus that we have in that business, but as you mentioned the demand for compute is extremely high today and combining compute with power creates even more value and so from a risk profile perspective investing in Gpus and investing in Asics, we see at a similar risk profile, if youre unhedged youre, taking compute price risk.

If you are hedged then youre, taking counterparty risk on what the value of that contract is and so with that said thats why its a structural build we built HUD as to be the energy infrastructure platform to invest into the longer depreciating assets American Big one we spun out to continue to invest into 86, and then high rise.

Asher Genoot: If you're unhedged, you're taking compute price risk. If you're hedged, then you're taking counterparty risk on what the value of that contract is. With that said, that's why as a structural build, we built Hut 8 to be the energy infrastructure platform to invest into the longer depreciating assets. American Bitcoin we spun out to continue to invest into ASICs. Highrise we incubated as a separate company with a separate balance sheet to invest into the GPUs as well. There are definitely conversations, in which Highrise is kind of on the back of a Hut 8 conversations in regards to the power infrastructure we have, and can it be just a colo deal or also colo with compute in some regards.

Incubated a separate company with a separate balance sheet to invest into the Gpus as well and so there are definitely conversations in which high rise is kind of.

On the back of <unk>.

E conversations in regards to the tower infrastructure, we have and can it be just the Colo deals are also cholelith computing in some regards obviously as we look at the scale of projects. We're extremely sensitive to what is high rise is the ability to bring on capital what scale do we step into that how do we think about dilution equity versus debt.

Asher Genoot: Obviously, as we look at the scale of projects, we're extremely sensitive to what is Highrise's ability to bring on capital? What scale do we step into that? How do we think about dilution and equity versus debt on raising for GPUs? Definitely something that is a part of these discussions, and that we look to grow if the opportunities are there. Heads down focused on having a couple long-term lease agreements as well that anchor the cash flows of Hut 8 as a business.

Raising for Gpus, but definitely something that is a part of these discussions.

And that we look to grow the opportunities are there, but heads down focus on having a coupled a long term lease agreements as well that incurred the cash flows of hiding about the business.

Your next question comes from the line of John <unk> with Needham. Please go ahead.

Operator: Your next question comes from the line of John Todaro with Needham. Please go ahead.

Hey, guys. Thanks for taking my question.

On the one five gigawatts can you frame up a little bit more what would ultimately be earmarked for.

John Todaro: Hey, hey guys, thanks for taking my question. I guess on the 1.5 GW, just can you frame up a little bit more what would ultimately be earmarked for HPC, AI? Getting at one of the earlier questions, just a little bit more details on maybe some of those other use cases like advanced manufacturing or something else that you might look at for the other capacity.

For HPT AI.

And then getting it one of the earlier questions just a little bit more details on maybe some of those other use cases like advanced manufacturing.

That you might look at for the other capacity.

So we will go into kind of detail on each site in.

Asher Genoot: We'll go into kind of detail on each site in short order after we kind of share some of the more recent efforts that we've had across data centers. It's really interesting. I'll give you an example. One of the sites is a 1 gigawatt site, and on the map you see that's in Texas, and it's in Corpus Christi, right? That's near the coast. We have 700 MW that come available in Q4 of next year, and then 300 MW following in the 24 months after that. That site we had never planned for kind of AI use cases because of its proximity to the coast. We saw it as an opportunity for Bitcoin mining or advanced manufacturing. There's a lot of manufacturing that you're seeing. You see SpaceX, Tesla, so forth, building facilities in Corpus Christi.

In short order after we kind of share some of the more recent.

At present, we have across data centers. So it's really interesting I will give you. An example, one of the sides of the gigawatt side and on the math you see that is in Texas and it's in Corpus Christi right near the coast. We have 700 megawatts that come available in Q4 of next year and a 300 megawatt following in the 24 months after that.

That site, we had never planned for kind of AI use cases because of its proximity to the coast. We saw it as an opportunity for Mick or mining or advanced manufacturing. There is a lot of manufacturing that you're seeing you see Spacex test slot. So forth building facilities in Corpus Christi to our surprise, we've actually hired.

Recent demand for that site, not just from kind of AI labs, or neo cloud, but from Hyperscale, Lloyd's as well and have been exploring test fits and so I'm not saying that customers will end up landing at some of their sites, but the amount of demand for power right. Now is extremely high as everyone knows on this call and so we're focusing right now.

Asher Genoot: To our surprise, we've actually had recent demand for that site, not just from kind of AI labs or Neo clouds, but from hyperscalers as well, and have been exploring test fits. I'm not saying that customers will end up landing at some of those sites, but the amount of demand for power right now is extremely high, as everyone knows on this call. We're focusing right now on commercializing, executing, and announcing and delivering the sites that are high on the list in data center markets. Some of these other properties where we develop the opportunity from the ground up have a very low cost basis because of the development work that we put in. Right now, all of our sites are being looked at across the board, even sites that historically we wouldn't have looked at.

Now on commercializing executing and announcing and delivering the sites that are high on the list and data center markets, but some of these other properties, where we develop the opportunity from the ground up have a very low cost basis because of the development work that we put in.

Right now all of our sites.

<unk> are being looked at across the board even site that historically, we wouldn't have looked at another example of that is Vega.

<unk> is a site that we built to show the market what a low density low redundant high density 200 kilowatts per rack of direct delinquency chip going to look like that site. We are behind the meter at a co op territory.

Asher Genoot: Another example of that is Vega. Vega is a site that we built to show the market what a low density, low redundant, high density, 200 kilowatts per rack of direct liquid-to-chip cooling could look like. That site we have behind the meter at a co-op territory in Vega, which is right near Amarillo, Texas. There's some curtailment obligation because we're in a small co-op that we don't wanna hit the peak curves because we want to be able to curtail when this constraint needs it for the local co-op. Now customers are looking at that too and said, You know what? Maybe we'll take that. We're okay with some of those curtailment obligations. It's a really interesting world that we're living in.

And Vega, which is right near Amarillo, Texas, there's some curtailment obligation because we're in a small co op that we don't want to hit.

The peak curves, who we want to be able to curtail when this constraint needs. It for the local co op right now customers are looking at that too and said you know what maybe we will take that we're okay with some of those curtailment, albeit it's a really interesting world that we're living in a couple of campuses are kind of straight down the fairway in terms of the starts works for AI, we don't see us putting bitcoin there than we have.

Asher Genoot: A couple of campuses are kind of straight down the fairway in terms of this just works for AI. We don't see us putting Bitcoin there, and we haven't had any discussions around other advanced kind of manufacturing use cases. The other ones that we thought we were putting in our pipeline for some of those in the long term are now being looked at as well from a data center perspective. I think you'll see more and more competition for power outside of just data centers. Everyone's focusing on data centers. Manufacturing, as you look at the overall kind of demand curves, is a big percentage of that increase. We see that in Louisiana. You're seeing multi-hundred MW deals that get announced on the Hyundai plant that they're building, other LNG facilities that they're building.

<unk> had any discussions other around other advanced kind of manufacturing our use cases and then the other one that we thought we were putting in our pipeline for some of those in the long term are now being looked at as well from a data center perspective, and so I think youll see more and more competition for power outside of just datacenters everyone's focusing on data centers.

Actually as you look at the overall kind of demand curves is a big percentage of that increase we see that in Louisiana, Youre seeing multi hundred megawatt deal that get announced.

The Hyundai plant that they are building other LNG facilities that we're building and so I think youll see increased competition on that power I think relationships with communities will really matter do they want you your business, what you bring to the community there or not and so across the board. We think this will be kind of a multifaceted.

Asher Genoot: I think you'll see increased competition on that power. I think relationships with communities will really matter. Do they want you, your business, what you bring to the community there or not? Across the board, we think this will be kind of a multifaceted growth in terms of how energy plays out within the US. For us at Hut 8, again, staying very focused on the data center platforms. We had built sites for kind of this longer term initiative, but today, we're seeing demand on those as well that we originally weren't planning for data centers.

<unk> growth in terms of how energy plays out within the U S. But for US. It had eight again staying very focused on the data center platforms. We had built sites for this longer term initiative, but today we're.

We're seeing demand on those as well that we originally weren't planning for data centers.

Your next question comes from the line of Chris <unk> with Rosenblatt. Please go ahead.

Operator: Your next question comes from the line of Chris Brendler with Rosenblatt. Please go ahead.

Hi, Thanks, Good morning, I just wanted to follow up on that last question and answer on the competitive environment power and I guess as I look at your four categories.

Chris Brendler: Hi. Thanks. Morning. I just wanted to follow up on that last question and answer on the competitive environment for power and I guess as I look at your four categories, you know, where is the competitive pressure? 'Cause sort of, not surprisingly, it seems like power is very popular these days. Where does that competitive pressure show up in your pipeline as it moves between diligence, exclusivity and development? How is Hut 8 positioned to sort of win in this environment? I'd love to get like a sort of a more of a high-level view of Hut 8's strengths when it comes to finding, sourcing and closing on power sources. That'd be great. Thanks.

Where does where does the competitive pressure because it is not.

Not surprising and it seems like power is very popular these days. So what is that competitive pressures show up in your pipeline as it moves between diligence exclusivity in development and how this headache.

Position to.

When in this environment I love to get like a.

Sure.

At a high level view of how to its strengths when it comes to finding sourcing and closing on power sources that'd be great. Thanks.

When you think about power development. There is three types of ways to consume power front end of meter behind the meter and then net new generation build where you actually build your own generation front of the meter. It's about are you finding the right place and the transmission line that other people arent looking at.

Asher Genoot: When we think about power development, there's 3 types of ways to consume power. Front of the meter, behind the meter, then net new generation build, where you actually build your own generation. Front of the meter, it's about are you finding the right place in the transmission line that other people aren't looking at? Louisiana is a perfect example of that in that site that we found. We looked at places that other people weren't looking. We had a perspective that we bet on where the markets were heading and if this would be valuable or not. That obviously is becoming more and more competitive as more entrants come in and the power and the value of power continues to be realized from the local landowner and farmer to the developer to obviously the larger platforms and hyperscalers.

Louisiana is a perfect example of that in that side that we can when we looked at places that other people. We're looking we had a perspective that we bet on on where the markets were heading and this will be valuable or not that obviously is becoming more and more competitive as more entrants come in and the power and the value of power continues to be realized from the local landowner.

Farmer to the developer to obviously, the larger platforms and Hyperscale. It's behind the meter is interesting because I think we pioneered in the folks on our team in terms of behind the meter assets were 280 megawatts behind the meter at our mountain site with a joint venture with Nextera with 205 megawatts at our Vegas site and so about half will gigawatt of behind the meter.

Asher Genoot: Behind the meter is interesting because I think we've pioneered, and the folks on our team, in terms of behind-the-meter assets. We have 280 MW behind the meter at our King Mountain site with a joint venture with Exterra. We have 205 MW at our Vega site, about 0.5 GW of behind the meter platforms is in our portfolio today. I think that's really unique and interesting for a company because you don't have as many of those deals, and recently you've had more announced within the data center space, but we've done, I think, the most within the market, especially within Texas, of existing generation plants and how do we allow to be able to pull power and co-locate a data center there as well. Lastly is generation.

Platforms within our portfolio today, I think thats really unique and interesting for a company because you don't have as many of those deals and recently <unk> had more announced within the data center space, but we've done I think the most within the market, especially within Texas of existing generation plants, and how do we allow to be able to pull.

Power and co located datacenter, there as well and lastly, as generation within there will be a continued theme of bringing your own generation, whether interconnected to the grid or not and more acceptability by customers.

Asher Genoot: We think there will be a continued theme of bringing your own generation, whether interconnected to the grid or not, and more acceptability by customers. Although we did not want to kind of continue to drive and own the power plants that we have today, and we said we'd find strategic value for those in the long term, having owned those power plants over the last year and a half has continued to increase our learnings and understandings of how to run generation, how to run natural gas power plants. That's about 30% of our portfolio today in which we run 4 natural gas power plants in Ontario.

Although we did not.

Wanted to kind of continue to drive you know in the Powerpoint that we have today and we said we'd find strategic value for those in the long term having own those power plants over the last year and a half has continued to increase our learnings and understanding of how to run generation how to run natural gas power plants, that's about 30% of our portfolio today in which we run for natural gas power plants in Ontario.

And so I think the expertise that we have in behind the meter and generation will continue to create that moat and value advantage. Because we can go to generators and say look we've been able to go in and then the CIA is to be able to co locate data center, even will walk you through the process of how could you back on the generation side, we have experience in doing so and we can.

Asher Genoot: I think the expertise that we have in behind the meter and generation will continue to create that mode and that value advantage because we can go to generators and say, Look, we've been able to go and amend these SGIA to be able to co-locate data centers, and we'll walk you through the process of how to do that. On the generation side, we have experience in doing so, and we can bring that to the table as well, whether we partner with folks or do it ourselves. On the front-of-the-meter side, it's getting more competitive, but it's focusing on areas that are underappreciated, underlooked at, and also developing those from the ground up as well. The other really important thing is, look, a lot of people on this call today are here saying, Ash, where the hell is your deal.

Bring that to the table as well, whether we partner with folks or do it ourselves on the front of the meter side is getting more competitive but it's focusing on areas that are underappreciated under looked at and also developing those out from the ground up as well. The other really important thing is look a lot of people on this call today are here, saying Ashley where the Hell is youre <unk>.

Or is your announcement there has been a bunch of great announcements done this week and as we live in this era, where there is so much demand and excitement over this category and over this asset class I think it remains important to be disciplined and be focused on are we doing the right deals.

Asher Genoot: Where's your announcement? There's been a bunch of great announcements done this week. As we live in this era where there's so much demand and excitement over this category and over this asset class, I think it remains important to be disciplined and be focused on are we doing the right deals that drive value not just to our share price in the short term, but also as we execute on these deals and the economics and the structure flow into the market. There are many sites that we look at that I believe are overpriced because people want to make generational wealth because they found a piece of land in the middle of nowhere and now want to flip it to some data center developer. Those transactions are happening. What is the value of those transactions? Are you able to commercialize them?

Drive value not just to our share price in the short term, but also as we execute on these deals and the economics and the structure flow into the market. There are many sites that we look at that I believe are overpriced because people want to make generational wealth because they found a piece of land in the middle of nowhere now want to flip it to some data center developer.

Those transactions are happening, but what is the value of those transactions are you able to commercialize them or you're taking a lot of development risk. Secondly, I mean, there are deals that we have walked away from and I could have announced those deals to the market sooner and haven't kept you guys waiting for this long, but where are those the right deals to la Quinta.

Asher Genoot: Are you taking a lot of development risk? Secondly, I mean, there are deals that we have walked away from, and I could have announced those deals to the market sooner and haven't kept you guys waiting for this long. Were those the right deals to lock in for 15 years? Were we taking the right risk reward based on what we believe is in the market from a structure perspective, from a credit perspective, from a pricing perspective? I appreciate all the analysts and shareholders who are on the call today for being patient with us. We've lived through markets where in moments of excitement, in moments of extreme growth, people just want to see growth at all costs.

For 15 years, where we've taken the right risk reward based on what we believe is in the market from a structure perspective from a credit perspective from a pricing perspective, and so I appreciate all the analysts and shareholders. We are on the call today for being patient with us, but we've lived through markets where in moments of.

Titan in moments of extreme growth people just wanted to see growth at all costs, but we've also been on the other side of those markets, where momentum slows down for a little bit and how do you structure. Those deals thoughtfully have you manage your balance sheet thoughtfully 2022, we've learned a lot of those lessons and so in markets that are.

Asher Genoot: We've also been on the other side of those markets where momentum slows down for a little bit and have you structured those deals thoughtfully, have you managed your balance sheet thoughtfully? 2022, we've learned a lot of those lessons. In markets that are exciting today, we will grow, but we will also grow with the mindset that we are able to manage through any volatility that the world throws at us. Because I promise you all, there will be volatility in these next 15 years as we sign these long-term agreements. It's important to think about can we manage through that as a business or not?

Sitting today, we will grow but we will also grow with the mindset that we are able to manage through any volatility that the world throws at us because I promise you all there will be volatility in the next 15 years as we signed these long term agreements and it's important to think about can we manage through that as a business or not.

A little bit of a longer winded answer to your question by saying a lot of people on this call today, where I wanted to talk about exactly this and when the Hell are we announcing our deal. So wanted to give you a little bit more background to why are we sure it's something that the market yet.

Asher Genoot: Is a little bit of a longer-winded answer to your question. I think a lot of people on this call today were wanting to talk about exactly this and when the hell are we announcing our deal. Wanted to give a little bit more background to why we haven't shared something with the market yet.

So that's a great color there my.

My follow up question is on American Bitcoin.

Chris Brendler: That's fantastic. Great color there. My follow-up question is on American Bitcoin. I think the last reported number was 64% pro forma ownership, but with their large ATM filing a couple months ago, I imagine that's going down. Can you give us an updated pro forma ownership percentage? Should we start thinking about 2026 being unconsolidated? When does that slip?

The last reported number was 64% pro forma ownership, but.

Are there large ATM filing a couple months ago I imagine thats going down do you expect or can you give us an updated.

Pro forma ownership percentage and should we start thinking about 2026 being unconsolidated when does that slip.

Right now the consolidation, even if we flip under 51% we have a super boat there right and so we continue to maintain voting control within the company in total consolidated for the foreseeable future.

Asher Genoot: Right now, the consolidation, even if we slip under 50.1%, we have a super vote there, right? We continue to maintain voting control within the company. We'll consolidate for the foreseeable future. We'll share updates in regards to the business and kind of the growth there. To date, the company has roughly 4,000 Bitcoin, dilution has been not it has not been the $2.1 billion deal that we announced. It has been minimal and thoughtful. Our ownership percentage has remained roughly intact. Great. Thanks so much.

We'll share updates in regards to the business and we and kind of the growth there to date. The company has roughly 4000 bitcoin and so dilution has been.

It has not been the $2 $1 billion item that we announced has been minimal and thoughtful and so our ownership percentage has remained roughly intact.

Great. Thanks, so much.

Your next question comes from the line of Brett Knoblauch with Cantor Fitzgerald. Please go ahead.

Operator: Your next question comes from the line of Brett Knoblauch with Cantor Fitzgerald. Please go ahead.

Hi, guys. Thanks for taking my question and thanks for a lot of that.

Brett Knoblauch: Hi, guys. Thanks for taking my question, and thanks for a lot of the detail on today's call. As we look at your power pipeline, how should we decipher kind of maybe like what percentage do you think is gonna be used for, you know, AI data center in some form or fashion versus maybe Bitcoin mining? As you know, ABTC has plans to, you know, reach 100 exahash, which obviously they're gonna need a lot more power capacity, which, you know, bodes well for you guys. How should we look at your power portfolio split between what you're doing on the data center side and on the Bitcoin mining side?

Today's call as we look at your power pipeline.

How should we can decipher kind of maybe like what percentage do you think is going to be used for.

AI data center in some form or fashion versus maybe bitcoin mining as a DTC has plans.

100, extra has which obviously, they're going to need a lot more power capacity.

Well for you guys, but how should we look at your power portfolio split between what you can do in the data center side and on the different mindset.

We have sites that we've developed that we historically believed that were not interesting for data centers, obviously that changed in the landscape that we're in today. We're also designing the next generation of data centers to be able to be valuable as well, where we're able to quickly.

Asher Genoot: We have sites that we've developed that we historically believed that were not interesting for data centers. Obviously, that's changing the landscape that we're in today. We're also designing the next generation of data centers to be able to be malleable as well, where we're able to quickly transition from Bitcoin to AI, and it'll be accretive for Hut 8 and American Bitcoin because if any of those transitions happen, American Bitcoin would obviously be bought out at a premium and they would be able to get their return on their investments and we would be able to get longer term agreements by delivering short-term power. Today, as we look at our overall pipeline, we have a team that can build and operate Bitcoin mining facilities on turnkey, and we have the ability and infrastructure to scale that very quickly.

In addition from bitcoin to AI and it'll be accretive for <unk> and American Big one because if any of those transitions happen American Big one would obviously be bought out at a premium and they would be able to get their return on their investment then we will be able to get longer term agreements by delivering short term power and so today as we look at our overall pipeline.

We have a team that can build and operate a quite mining facilities on turnkey and we have the ability and infrastructure to scale that very quickly. Obviously, we're building those muscles and continue to scale those muscles and more tier three data center development, whether it would be kind of $5 nine core network stack in Gpus or <unk>.

Asher Genoot: Obviously, we're building those muscles and continue to scale those muscles in more tier 3 data center development, whether it be kind of 5-9 core and network stack in GPUs or 3-9 plus 5-9. Overall, as we look at our development pipeline, we think we have ample demand for both of those businesses. At the end of the day, American Bitcoin has exahash target goals, but the most important goal that it has is increasing Bitcoin per share. So it's not at a race to increase exahash at all costs. It's doing so thoughtfully with the right structures and ultimately increasing Bitcoin per share over the long term. It's done a great job of doing that since we launched that company.

590, but overall as we look at our development pipeline. We think we have ample demand for both of those businesses at the end of the day American Big win.

SaaS to articles, but the most important goal that it has is increasing <unk> per share and so it is not at a race to increase ex agile cost.

Doing so thoughtfully with the right structures and ultimately increasing <unk> per share over the long term and it's done a great job of doing that since we launched that company and so as of right. Now we don't see large competing interest in regards to data centers and AI, but we'll share more of that in the coming quarters. If we start seeing more constraint there.

Asher Genoot: As of right now, we don't see large competing interests in regards to data centers and AI, but we'll share more of that in the coming quarters if we start seeing more constraint there.

Thank you.

Your next question comes from the line of Mike Grondahl with Northland. Please go ahead.

Brett Knoblauch: Awesome. Thank you.

Operator: Your next question comes from the line of Mike Grondahl with Northland. Please go ahead.

Hey, Thanks, guys.

The one five gigawatts.

Mike Grondahl: Hey, thanks, guys. The one and a half gigawatts under development where you're making a lot of progress, roughly how much of that do you see ready for use in 2026 versus 2027?

Under development, where you're making a lot of progress.

Roughly how much of that do you see ready for use in 2006 versus 27.

It's a matter of our ability to be able to have the supply chain and the execution of that capacity. We have a lot of that power that becomes available and is building. The substation in data center <unk>, <unk>, which was a great problem to have and so <unk> is obviously, a large site that everyone.

Asher Genoot: It's a matter of our ability to be able to have the supply chain and the execution of that capacity. We have a lot of that power that becomes available, and it's building the substation and data center field to match that, which is a great problem to have. Riverbend is obviously a large site that everyone knows about. Talk about Corpus Christi. We have another site in West Texas. We have a site in Chicago as a part of that overall platform. We'll actually share more detail on each of those sites, so everyone on this call, the broader markets, and customers can kind of all see it as well. Overall, today it's really about executing on those sites and being able to deliver them thoughtful and on time.

It is about talked about Corpus Christi, we have another site in west, Texas, We are assigning Chicago as a part of that overall platform will actually share more detail on each of those sites.

So.

Everyone on this call and the broader markets and customers can kind of all see it as well.

But overall today.

Really about executing on those sites and being able to deliver them thoughtful and on time I think building these data centers and these timelines.

Asher Genoot: I think building these data centers and these timelines is a lot to ask for of our vendors and our partners in building and whether it be subcontractors, EPC, and so doing so thoughtfully and making sure we set the proper expectations with customers where we can deliver and execute for them as well.

A lot to ask for all of our vendors and our partners in building and whether it be subcontractors EPC in so doing so thoughtfully and making sure we set the proper expectations with customers, where we can deliver and execute for them as well.

Got it hey, good luck and thanks.

Mike Grondahl: Got it. Hey, good luck, and thanks.

Your next question comes from the line of build happened in associate with K D. K BW. Please go ahead.

Operator: Your next question comes from the line of Bill Papanastasiou with KBW. Please go ahead.

Hey, good morning, Thanks for taking my questions.

As we near towards the first three months of a BTC trading independently.

Bill Papanastasiou: Yeah. Good morning. Thanks for taking my questions. As we near towards the first 3 months of ABTC trading independently, Asher, would just love to hear your thoughts on the future opportunity here for Bitcoin mining, and whether, you know, the strategy is changing at all given the AI HPC diversification play that's clearly accelerating across the peer group. Thank you.

Asher would just love to hear your thoughts on the future opportunity here for bitcoin mining.

And whether the strategy is changing at all given the AI HBC diversification play Thats clearly accelerating across the peer group. Thank you.

As we're developing our pipeline, we're looking to continue to develop and be large scale operators in platforms for AI and data centers and a lot of the deals youll see coming from idea to announce we'll be on that front. We also have assets in our pipeline that we believe are great position for bitcoin as well.

Asher Genoot: As we're developing our pipeline, we're looking to continue to develop and be large scale operators and platforms for AI and data centers. A lot of the deals you'll see coming from Hut 8 announce will be on that front. We also have assets in our pipeline that we believe are great position for Bitcoin as well and have ample runway for American Bitcoin to run and scale. Look, I think if we think about the company launching from day 1 in 1 April 2024, becoming a public company on the Nasdaq, about a month or so ago, and today having about 4,000 Bitcoin on their balance sheet by themselves, 25 exahash, mining 8 to 10 Bitcoin a day, I mean, that's really impressive for a period of time that it's built. The business is obviously still going through price discovery in the public markets.

We have ample runway for American Big once you run and scale look I think if we think about the company launching from day, one and April 1st of this year, becoming a public company on the NASDAQ about a month or so ago and today, having a 4000 bitcoin on their balance sheet by themselves 25, ex ash mining AG and bitcoin.

One day, I mean, thats really impressive for a period of time that has built the business is obviously still going through price discovery in the public markets. We have early investors are heavily in the money or lockups will be coming up in about a month or so and so I think managing those nuances getting to a stabilized state at a BTC and ultimately continuing to focus on building take one per share.

Asher Genoot: We have early investors that are heavily in the money. Their lockups will be coming up in about a month or so. I think managing those nuances, getting to a stabilized state at ABTC, and ultimately continue to focus on building Bitcoin per share for the underlying shareholders. We can't control where the share price goes, how high it goes, how low it goes. We can control the underlying operating business. That's the same mindset I had with Hut 8 when we took over and the stock was about $6, and we just focused on the fundamentals and the rest will work itself out. That's our same thought process with ABTC. We think as a structural kind of initiative and strategic initiative, we were very happy by the outcomes of it thus far.

For the underlying shareholders, we cant control, where the share price goes how are those how logos, we can't control the underlying operating business. That's a whole mindset I had with holiday when we took over and the stock was about $6 and we just focus on the fundamentals and the rest will work itself out and so thats. Our same thought process with ADT, we think uncle structural kind of.

Initiatives and strategic initiatives, we were very happy by the outcomes of it thus far no no doubt that we'll go through some volatility there as shares become released into the market, but overall I think the structural ability for us to have APC front, perhaps high right and then the infrastructure business had eight I believe that the.

Asher Genoot: No, no doubt that we'll go through some volatility there as shares become released into the market. Overall, I think the structural ability for us to have ABTC, for us to have Highrise and then the infrastructure business of Hut 8. I believe that the markets will see that continue to play out and the value of that over time. We were able to increase our amount of extra hash, the amount of Bitcoin that we mined, the margins we mined without any dilution to Hut 8 as a parent company. That was value accretive for ABTC shareholders and obviously value accretive for Hut 8 shareholders in a risk-adjusted anti-dilutive way as well. I think structurally how we're forming the foundation of this business will only compound.

Mark as you will see that continue to play out in the value of that over time, we were able to increase our amount of extra has the amount of pick one that we might have to margins, we mined without any dilution to how do you that as parent company that was value accretive for EQT shareholders, and obviously value accretive for <unk> shareholders and a risk adjusted anti dilutive ways.

Well and so I think structurally how we're forming the foundation of this business will only compound and although the numbers people care less about this quarter compared to us announcing a deal look we beat all expectations across kind of the categories in this quarter and we look forward to continuing to execute and developed.

Asher Genoot: Although the numbers, people care less about this quarter compared to us announcing a deal, look, we beat all expectations across kind of the categories in this quarter. We look forward to continuing to execute in developing and scaling this platform.

In scaling this platform.

I appreciate the color. Thank you.

Bill Papanastasiou: Appreciate the color. Thank you.

Your next question comes from the line of Matthew <unk> with Maxim Group LLC. Please go ahead.

Operator: Your next question comes from the line of Matthew Galinko with Maxim Group LLC. Please go ahead.

Hey, good morning. Thanks for taking my question can you touch on the role that your <unk> reserve players in accessing project financing and financing for site built.

Matthew Galinko: Hey, good morning. Thanks for taking my question. Can you touch on the role that your Bitcoin reserve plays in accessing project financing and financing for site builds?

Happy to do so the two Prime example is a great example of that in addition to coin base. So when we think about the fact that we have on the balance sheet today and Sean I'll have him chime in right. After this as well because his perspective on this has definitely changed since he joined US They wanted to ask me when.

Asher Genoot: Happy to do so. The Two Prime example is a great example of that in addition to Coinbase. When we think about the stack that we have on the balance sheet today, and Sean, I'll have him chime in right after this as well, because his perspective on this has definitely changed since he joined us day one and asked me, "When are we selling this?" Is it immediate versus what he's been able to do thus far with it. We've been able to, as Sean mentioned, write cover calls and drive a yield on that Bitcoin that we have, right? Because that's right way risk. We get covered at a much higher price. We're okay with that world, and we can use that money to fund the business.

Are we selling this is immediate versus what you've been able to do thus far with it we've been able to Sean mentioned right cover calls and drive the yield on that decline that we have right because that's the right way risk will get covered at a much higher price. We're okay with that world and we can use that money to fund the business.

Additionally, we were able to bring on really low cost of capital on bitcoin back loans.

Asher Genoot: Additionally, we're able to bring on really low cost of capital on Bitcoin-backed loans with revolvers that we have that we can pull payback. We don't have penalties in doing so. The structure of the ability to pull on that value is really important as well. As we think about do we hold that Bitcoin at Hut 8? Does that long term, all our Bitcoin exposure at ABTC and Hut 8 is more cash and just developing data centers? We'll have that story play out in the coming, call it year, as our data center platform continues to mature and ABTC continues to mature as well. Sean, I don't know if you have any thoughts on your perspective of kind of Bitcoin on the balance sheet and the value that it has.

Revolvers that we have that we can pull payback we own have penalties.

In doing so so the structure of the ability to pull on that value is really important as well.

As we think about do we hold that bitcoin at holiday does that long term all are big want exposure <unk> highlighted more cash and just developing data centers, we'll have that story play out in the coming call. It year as our data center platform continues to mature.

It continues to mature as well John I know if you have any thoughts on your perspective of kind of big one on the balance sheet.

And the value of that here, but I think for us the largest strategic element, where does that going to stay as HUD aided and unaided BTC and the long term as you think about exposure and we'll share that with the market as the data center platform continues to mature.

Asher Genoot: I think for us, there's a larger strategic element of where does Bitcoin stay? Is it at Hut 8? Is it at ABTC in the long term as you think about exposure? We'll share that with the market as the data center platform continues to mature.

Yes, Thanks Asher.

Through in the prepared remarks.

Sean Glennan: Yeah, thanks, Asher. You know, as we went through in the prepared remarks, we talked about the $689 million in contributions from price appreciation, the $265 million in, you know, Bitcoin-backed facilities that we've raised, and then approximately $32 million in covered call premiums. It goes beyond that, right? Like, that's direct access to capital. I think there's also a read-through to our balance sheet as you look at the stack. As we work with very large counterparties, credit worthiness is something that they're very focused on. I think they take a look at our balance sheet, and I think it answers a lot of their questions very quickly. It's not something we need to dwell on.

Marks we talked about the $689 million in contributions from price depreciation to $265 million.

<unk>.

Yes, bitcoin back facilities that we have raised approximately $32 million.

In covered call premiums, but it goes beyond that right. That's direct access to capital I think Theres also a read through to our balance sheet as you look at the stack and so as we work with <unk>.

Very large counterparties.

Creditworthiness is something that they're very focused on and I think they took a look at our balance sheet and I think it answers a lot of their questions very quickly. So it's not something we need to dwell on its become a check the box exercise.

Sean Glennan: It's become a check the box exercise, which I think has been really valuable as we've entered into the new business line of AI data centers, where, you know, the numbers are much bigger than they had been in Bitcoin mining.

Which I think has been really valuable as we've entered into a new business line of AI data centers, where the numbers are much bigger than they had been in bitcoin minus.

Your next question comes from the line of Nick <unk> with B Riley. Please go ahead.

Operator: Your next question comes from the line of Nick Giles with B. Riley. Please go ahead.

Thanks, very much maybe another question for Sean was wondering if you could just give us a little more color around how project financing discussions have progressed are you seeing any changes in terms since your last update and then given some of the other deals we've seen across the space has your thinking around the structure changed at all thanks very much.

Nick Giles: Thanks very much. Maybe another question for Sean. Was wondering if you could just give us a little more color around how project financing discussions have progressed or you've seen any changes in terms since your last update. You know, given some of the other deals we've seen across the space, has your thinking around structure changed at all? Thanks very much.

Yes, Thanks, a lot Nick so for one the project financing market remains extremely healthy.

Sean Glennan: Yeah, thanks a lot, Nick. For one, the project financing market remains extremely healthy. If you look over the past month, we've seen two enormous deals, one with Meta and one with Vantage, with Blue Owl in the mix on the first one. You know, there's a tremendous amount of capital out there to support data center growth. I think, you know, the market remains bifurcated between investment-grade and non-investment grade off-takers and what that looks like from a loan to capital and a credit spread perspective. That hasn't really changed. You know, suffice to say, the market remains extremely healthy, both from a bank and private credit perspective. There's lots of capital to support it.

If you look over the past month, we've seen two enormous deals one with meta and one with vantage.

With Blue <unk> in the mix on the first one.

And so there is a tremendous amount of capital out there to support data center growth I think the market remains bifurcated between investment grade and non investment grade off takers and what that looks like from a loan to capital and a credit spread perspective that hasnt really changed.

But suffice to say the market remains extremely healthy both from a bank and private credit perspective.

Lots of capital to support it as you think about some of the new structures that have emerged I think we will look at everything.

Sean Glennan: As you think about some of the new structures that have emerged, I think, you know, we will look at everything out there that we think will create shareholder value, provide, you know, mitigants against enterprise risk. I think one of the most important things that you can avail yourself of on the financing of these is non-recourse, you know, sort of non-recourse, project financing. What that does is it insulates the parent company from any, you know, debt issues at the subsidiary level, and that's something that, you know, I think is really valuable, and we'll continue to evaluate those structures. Again, it's long story short, the market is extremely healthy, and I think, you know, we're not really worried about the ability to finance these projects over the long term.

Out there that we think will create shareholder value provided.

Mitigates against enterprise risk and I think one of the most important things that are available you can avail yourself of on.

On the.

On the financing of these is nonrecourse.

<unk>.

Nonrecourse.

Project financing and what that does is it insulates the parent company from any debt issues at the subsidiary level and that's something that I think is really valuable and we will continue to evaluate those structures, but.

Long story short the market is extremely healthy and I think.

We're not really worried about the.

Ability to finance these projects over the long term.

Your next question comes from the line of Ben Summers with BTG. Please go ahead.

Operator: Your next question comes from the line of Benjamin Sommers with BTIG. Please go ahead.

Hey, good morning, and thank you for taking my question. So I just wanted to ask about the site and Illinois, I guess kind of curious what the demand profile is from this side given it is a little smaller than some of the sites in Texas in the pipeline or river band and just kind of how we think about potentially expanding in that region. Thank you.

Benjamin Sommers: Hey, good morning, and thank you for taking my question. I just wanted to ask about the site in Illinois. I guess kind of curious what the demand profile is for this site, given it's a little smaller than, you know, some of the sites in Texas in the pipeline or Riverbend, and just kind of how we think about potentially expanding in that region. Thank you.

Thanks, We originally developed that site because most of our sites warrants.

Asher Genoot: Thanks. We originally developed that site because most of our sites weren't in tier 1 markets, and we wanted to have a campus that was there that could be a nice tuck-in add-on. What we've seen from demand in the market is exactly that. A tuck-in site for people who have sites nearby, a burst site for some AI labs as well, and enterprise as well. That site is an opportunity for Highrise and GPUs as a nice kind of step-in opportunity as well for that business. We're exploring opportunities there. Right now we're prioritizing our supply chain, and the focus is on some of our larger campuses as the demand is there. We'd like to commercialize those first.

In tier one markets and we want to have a campus out there that could be a nice tuck in and add on what we've seen from demand in the market in exactly that tuck in side for people, who have heightened nearby a burst site for some AI lab wallet enterprise as well and so.

That side and then also as an opportunity for high rise and Gpus as a nice kind of step an opportunity as well for that business and so we're exploring opportunities there right now we're prioritizing our supply chain.

The focus is on some of our larger campuses.

The demand is there and so we'd like to commercialize those first.

Since the side that we think is valuable even though it's a smaller site, we're focusing on it for more strategic reasons.

Asher Genoot: This is a site that we think is valuable even though it's a smaller site. We're focusing on it for more strategic reasons, of who we place there rather than just looking at kind of the economics because relatively smaller in scale compared to other sites that we're commercializing.

We place there rather than just looking at kind of the economics become relatively smaller than.

And scale compared to other site that we're commercializing.

Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.