Q2 2026 HIVE Digital Technologies Ltd Earnings Call

Nathan Fast: Hello, welcome to today's webcast on HIVE Digital Technologies financial results for the six months ended 30 September 2025. My name's Nathan Fast, Director of Marketing and Branding at HIVE, and I'm pleased to be your moderator for today's call. Before we get started, on slide 2, we would like to briefly note the disclosures for today's presentation. Except for statements of historical fact, this presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as expects, believes, and similar expressions identify these statements. Actual results could differ materially, and we disclaim any obligation to update them except as required by law. For a full discussion of risk factors, please refer to our most recent SEC filings at sec.gov.

Hello, and welcome to today's webcast on hyper digital technologies financial results for the six months ended September 32025. My name is Nathan fast director of marketing and branding hive and I'm pleased to be your moderator for today's call.

Before we get started on slide two we'd like to briefly note. The disclosures for today's presentation, except for statements of historical fact this presentation contains forward looking statements within the meaning of the U S. Private Securities Litigation Reform Act of 1095.

Words, such as expects believes and similar expressions identify these statements actual results could differ materially and we disclaim any obligation to update them, except as required by law for a full discussion of risk factors. Please refer to our most recent SEC filings and SEC Dot Gov.

Nathan Fast: In addition to discussing results that are calculated in accordance with GAAP, we will also reference certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income, and free cash flow. Management uses these metrics to evaluate operating performance and believes they provide investors with additional insight, and they are presented for supplemental purposes only and should not be considered in isolation from GAAP results. Reconciliations to the nearest GAAP measures are included in the appendix to this presentation and in the press release in Form 8-K furnished to the SEC. On the next slide, I'm pleased to introduce today's presenters, Frank Holmes, Executive Chairman, Aydin Kilic, President and CEO, and Darcy Daubaras, Chief Financial Officer. I would now like to hand the presentation over to Mr. Frank Holmes for a macro recap of the quarter. Frank?

In addition to discussing results that are calculated in accordance with GAAP. We will also reference certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income and free cash flow.

Management uses these metrics to evaluate operating performance and believes they provide investors with additional insight and they are presented for supplemental purposes, only and should not be considered in isolation from GAAP results reconciliations.

Reconciliations to the nearest GAAP measures are included in the appendix to this presentation and in the press release and form 8-K furnished to the SEC.

On the next slide.

Pleased to introduce today's presenters Frank Holmes Executive Chairman, I haven't Killik, President and CEO and Darcy do bearish Chief Financial Officer.

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

Frank Holmes: Thank you, Nathan. Let's get into my macro recap, I'm gonna try to weave in some of the most recent past couple of weeks' sentiment, unpacking the drivers of short-term negative sentiment in data centers and AI infrastructure, which I believe is just setting up for a phenomenal buy for as an industry whole. I'm gonna try to explain this in this presentation and why Hive is so uniquely positioned in this macro theme. Next, please. Well, Hive's journey to really accelerate its growth in Bitcoin mining, it was stalled after Putin invaded Ukraine and sources of hydro and geothermal electricity around the world all of a sudden went shut down or very small. There was no scaling ability.

Thank you Nathan.

Let's get into why macro recap and I've got to try to weave in some of the most recent past couple of weeks sentiment unpacking. The drivers are short term negative sentiment and data centers AI infrastructure, which I believe is just setting up for a phenomenal buy for.

As an industry a hole I think I'll try to explain this in this presentation and why harvest. So uniquely positioned in this macro theme next please well hives journey to really accelerate its growth and bitcoin mining.

It was stalled after potent embedded your crane and sources of hydro and geothermal electricity around the world all of a sudden width shut down or.

Very small there was no scaling ability and so the opportunity a little over 18 months ago.

Frank Holmes: The opportunity a little over 18 months ago, when I reached out to the president of Paraguay, and flew down to meet him because they have surplus electricity. I'm gonna try to walk you through sort of this journey and that this president's really quite unique. President Santiago Peña is a former rugby player. He is 47 years old, studied at Columbia University. Worked in Washington with the IMF, has had an incredible journey in Paraguay and building the country and becoming recognized. Every time I go down, I find something new that I love more about the country. The country is very unique and very pro-America.

When I reached out to the president of Paraguay.

And slow down to meet him because they have surplus electricity I'm going to try to walk you through sort of this journey and that this president is really quite unique.

A precedent San Diego Pena is a former rugby player.

He is 47 years old study are the University of Columbia, New York worked for and Washington.

<unk> and <unk>.

Southern incredible journey, and Paraguay in building their country, and becoming recognized and every time I go down I would find something new that I love more both the country, but the country is very unique and very Pro America.

Frank Holmes: To give you an idea of all this negative news about Latin America with Venezuela, and some of the drama of the Panama Canal, we have for sure, Colombia's president. I think it's really important to look at how communism and socialism has penetrated deeply into Central and South America, but not in Paraguay. I think that that's what's really important for investors and why we felt so confident this is where HIVE would scale its Bitcoin operations, sourcing green energy, surplus energy, and really also helping out the overall economy grow. I'll show you some of the other unique things we've done in schools, that are nearby us.

So to give you an idea of all the negative news about Latin America with Venezuela and.

Some of the drama of the Panama Canal and then we have for sure.

Columbia's press.

Precedent.

I think it's really important to look at how communism and social socialism has penetrated deeply into central and South America, but not in Paraguay.

And I think that's what's really important for investors of why we felt so call for that this is where hybrid scale. It's bitcoin operations sourcing Green energy surplus energy and really also helping out the overall economy grow and and I'll show you some of the other.

Unique things we've done in the schools that are near bias, but President XI Diego Pena was the sole Latin American ahead of state present at the 2025 Gaza piece of that so this is something else thats really important whose pro Taiwan.

Frank Holmes: President Santiago Peña was the sole Latin American head of state present at the 2025 Gaza Peace Summit. This is something else that's really important, who's pro-Taiwan, and one of the largest suppliers of food, commodities for Taiwan. I believe for a population of about 6 million people, they produce about food for and which they export for 60 million people. Next, please. Here's our president of the country, Gabriel Lamas, who's an electrical engineer, worked for the government's utility company. As you can see, he's very tall compared to the president who's like 6'2". Gabriel's like 6'4", 6'5".

And one of the largest suppliers of food.

Commodities for Taiwan, I believe for a population of about 6 million people. They produce a boat food for in which they export for 60 billion people next please.

So here is our president of the country Gabriel of Moss, who was a electrical engineer and worked for the government's utility company.

You can see he's very tall compared to the president who is like six to.

Gabriel so like 6465.

Frank Holmes: He's just been a great leader of maximizing the whole scaling, the concept of scaling and coordinating and working with our CEO, Aydin Kilic, who will speak in a few minutes, and Luke Rossy, who's our Chief Operating Officer, and Bill Gray, our CTO. Gabriel's done a phenomenal job accelerating the scaling from 6 to 25. The journey to 25 we've announced for 2024, and we're very close here to 25. We feel very confident of hitting that. You can see here Gabriel was recently with him. There's a picture when I first met the president a little over 18 months ago. The economy is one of the strongest and steadier growing economies in Latin America. That's another real positive sign for the country.

And he has just been a great leader.

Maximizing the the whole scaling the concept of scaling and coordinated and working with our CEO I think chemicals speak in a few minutes in and.

Look rosy.

Who's our Chief operating officer, and Bill Gray our CTO.

Gabriel it's gone up for normal job.

Accelerating the scaling from six to 25, the journey to twenty-five we've announced for 24 and we're very close here with a 25%. So we feel very confident of hitting that.

So you can see here Gabriel was recently with them and Theres a picture when I first met the president.

A little over 18 months ago.

And the economy is one of the strongest in steady and growing economies in Latin America. So that's another real positive sign for the country.

Frank Holmes: Next, please. As a money manager, I always say that government policies are a precursor to change. Peña's policies for fiscal development are outstanding and his push to make sure that every child is fed and upgrading the school system. We're helping with that, and we're helping especially in rural areas. This story, what I'm trying to point to you is that Paraguay is powering HIVE's high velocity ascent to 25 exahash. What's interesting is that yesterday, two days ago is November 12, and that is Hayes Day, because in 1870 there was a tragic war, a trilateral war with Uruguay, Argentina, and Brazil trying to take over this massive green belt country.

Next please.

As a money manager.

I have always say the government policies are precursor to change in and paying us policies for fiscal development are outstanding and has pushed to make sure that every child is fed.

And then upgrading the school system, but we're helping with that and we're hoping as special rural areas.

And so the story of what I'm trying to point to is that Paraguay is part is powering high as high velocity is sent to twenty-five ex us and whats interesting is that yesterday.

Sorry, two days ago is November 12th and that is Hayes day, because an 18 70, there was a tragic war a trilateral war with Uruguay.

Argentina, and Brazil trying to take over this massive green belt country.

Frank Holmes: And they wiped out, genocide all men and boys to the age of 10. It was tragic, and it was President Hayes that came in that resolved and that they kept about 60% of their land. And to this country to this day, the country celebrates November the 12th, Hayes Day, and the largest state in the country I'm pointing to here is President Hayes. There's a very strong bond with America that when I talk to investors, the average American is not aware of. Next, please. Part of that journey, in addition to rapidly scaling and building out data centers, campus across the country, building BUZZ is also creating lots of local jobs and construction.

And and.

And they wiped out general side to all men and boys to the age of 10.

It was tragic and it was president Hayes that came in that resolved that they kept they kept about 60% of their land.

And for this cut to this day the country's celebrates November 12, Hayes day, and the largest state in the country I'm pointing to here as president of Hayes. So theres, a very strong bond with America when I talk to investors. The average American is not aware off next please.

So part of that journey. In addition to our rapidly scaling and building out data centers campuses across the country.

Building a buzz is also it's creating lots of local jobs and construction.

Frank Holmes: We've shown you a visual of lighting the streets of Valenzuela, a city near us. It's also for the kids, and this is a thank you from a former leader, a mayor of Valenzuela for lighting up the streets and making the streets safe at night for women and children. Next, please. When we went out and saw the schools, which are very close to us, I'm talking about a quarter of a mile, half a mile away, we started on this process of upgrading these schools and putting in air conditioning, new electrical, painting, new chalkboards, infrastructure. You can see here a play station here for kids so that they can go and play and enjoy these facilities. Also for embracing data centers.

As shown you a visual of lighting the streets of balance whaler city near Us.

But then it's also for the kids and this is all thank you from.

Our former leader of mayor of Valensuela for lighting up the streets and making the streets safe at night for women and children next please.

So when we went out to solve those schools, which are very close to it so I'm talking about a quarter of a mile of half a mile away.

We started on this process of upgrading these schools and putting in air conditioning.

New electrical.

Painting.

New Chalkboards infrastructure and you can see here our play.

They shouldn't here for for kids that they can go and play and enjoy.

These facilities and also for embracing our datacenters.

Frank Holmes: There's a big great disconnect even in very advanced countries like Sweden that take it for granted all the apps on your mobile phone and Netflix and Spotify. They think it's all free, they don't realize no data centers, no digital realm that we all live in and we rely on. This is sort of a visual of relating this to the children of Paraguay. Next, please. You can see the picture. This is the key people here. You can see Gabriel Lamas is in the middle, he's kneeling down because he's so tall. Behind is myself, you can see to my right, Luke Rossy, you can see to the left is Aydin Kilic, our CEO, who's also electrical engineer like Gabriel Lamas is.

Theres a big great disconnect even in very advanced countries like Sweden that take it for granted all of the apps on your mobile phone and Netflix and Spotify.

They think it's all free and they don't realize no data centers no digital realm that we all live in and we rely on so this is sort of a visual of relating this to the children of Paraguay next please.

You can see the picture of this is the this is a.

Key people here you can see.

Gabriel are masters in the middle and he's dealing dal because he sold tall, but behind it is by itself and you can see to my right loop Rose and you can see to the left.

As iron Killik, our CEO. It was also electrical engineer like Gabriel or Mouses and besides Gabriel is.

Frank Holmes: Beside Gabriel is Craig Tavares. Craig is our president of BUZZ, which is building out our AI business. You can also see Johanna Thörnblad, who's the president for Sweden. You can see one of our independent directors and other key people that have been very much involved in the growth and acceleration. Investment banker, Jamie Brown is there. It is lots of key people that are helping drive this. Behind the visual is the largest, biggest hydro dam in the Western Hemisphere. It's 5 miles long. It's epic of size, producing over 10 exahash of electricity, 5 for Brazil, 5 for Paraguay. Paraguay is a small population, they've been selling some of their electricity to Argentina, which has been only really horrific for their fiscal management of a country.

Craig.

Barak and Craig is our president of Buzz, which is building out our AI business and you can also see Johan <unk>, who is the president for.

Sweden, and you can see one of our independent directors and other key people that have been very much involved in the growth and acceleration of investment banker. Jimmy Brown is there. So it is a lots of key people that are helping drive.

Give this but behind the visual is the largest biggest hydro dam in the western hemisphere, it's five miles long.

It's epic of size bruising over 10 extra harsh of electricity five for Brazil, five for Paraguay.

<unk> is a small population so they have been.

Selling some of the electricity to Argentina, which has been the only really a horrific for their fiscal management of our country. So.

Frank Holmes: It's a small country, and that's what's good about Bitcoin mining. Not only do we build this infrastructure, you need substations from this high-voltage electricity, and we build those. We build a campus of data centers, and then we end up hiring 50 young engineers, that there's no real job opportunity for them. But now there is with HIVE. It's really, for us, an exciting part of our journey of creating this from little kids' education to creating career paths for young engineers. Next, please. On that journey of going to Latin America, I really want to show you that this year has been a phenomenal year for Latin America 40 ETFs, so the 40 biggest market cap stocks versus the S&P. They've crushed it.

So it's a small country and that's what's good about bitcoin mining where not only do we built this infrastructure you need substations from this high voltage electricity.

And we build those and then we build the campus of data centers and then we ended up hiring 50 young engineers.

That there's no real job opportunity for for them and but now there is.

With hive and so the it's really for US an exciting part of our journey of creating this from little kids education to creating career paths for young engineers next please.

Okay.

So on that journey of going to Latin America, I really want to show you that this year has been a phenomenal year for Latin America, 40, Etfs over Fortyish biggest market cap stocks versus the S&P.

<unk> crushed it.

Frank Holmes: They've really, you know, outperformed the overall S&P 500, and I think that that's what's really important for investors to recognize. Next, please. In this big build-out, I call it an arms race. China has significantly surpassed America in building data centers, but before that, they built power, and the power came from hydroelectricity. They got the water from the glaciers in the Himalayas and rerouting water from Tibet down to creating dams after dams and building out a huge grid. America has to get caught up, and it is. Under the stewardship and leadership of President Trump, as soon as he came into power, as the CEO of NVIDIA says, that impressing the most about Trump is that he embraced the need for AI and power and data centers.

They've really outperformed.

The overall S&P 500, and I think that that's what's really important for investors to recognize.

Next please.

So in this big build out I call it an arms race.

China is significantly surpassed America in building data centers, but before that they build power. The power came from Hydroelectricity in they got the water from the glaciers and the MLS and rerouting water from Tibet downward, creating damage at our dams.

Building out a huge grid and America has to get caught up and it is and none of the stewardship and leadership of President Trump.

As soon as he came into power is as the CEO of Nvidia says that impressed me. The most about Trump has embraced the need for AI and electric and power and data centers and here is a classic where big coin miners. They're first to go this is in West, Texas Sweet Abilene Tex.

Frank Holmes: Here is a classic where Bitcoin miners were the first to go. This is in West Texas, sweet Abilene, Texas, where Crusoe was using flare gas, surplus energy from solar wind and flare gas. Today is the largest CapEx spend in America, and I'm told in the world right now in fast-tracking a $500 billion AI data center vision from former flare gas to a Bitcoin miner. I'm really trying to highlight that Bitcoin miners were the early pioneers of building the necessary infrastructure wherever there was surplus or additional or wasted electricity and creating taxes for the local economy, creating jobs for the local economy.

We're caruso was using flare gas surplus.

Energy from solar wind and flare gas today is the largest capex spend.

In America I am told in the World right now and fast tracking a $500 billion AI data center vision from former flare gas.

A bit coin minor I'm really trying to highlight that that bitcoin miners were the early pioneers of.

Building the necessary infrastructure wherever there was surplus.

Our additional or wasted electricity and creating taxes.

Taxes for the local economy, creating jobs for the local economy. This particular site here created 2500 construction jobs and when that's all done it will be 500 jobs in a big boom to the local community.

Frank Holmes: This particular site here created 2,500 construction jobs, and when that's all done, it'll be 500 jobs and a big boom to the local community. Next, please. Bitcoin mining, the goal is of 2.8% of the global hash rate. We really believe the blue sky opportunity in Paraguay is probably a gigawatt of electricity. That's the potential when you use the word blue sky and not going to the moon. That's way out there when you talk about blue sky. Paraguay, no doubt, just makes the perfect place for us to expand our footprint. Backed by the most consistent, stable executive leadership team in the sector. I'm very proud about HIVE. HIVE's CEO is the longest standing, CFO is clearly the longest standing.

Please.

So bitcoin mining the goal is up two 8% of the global harsh rate, we really believe the blue sky opportunity.

In Paraguay.

It is probably a gigawatt of electricity that's the potential when you use the word blue sky.

And not go into the Moon.

It's way out there and when you would talk about blue Sky, but.

Paraguay, no doubt and it just makes the perfect place to for us to expand our footprint.

Backed by the most consistent stable executive leadership team and the sector I'm very proud about hive.

Hives.

Ceos are longstanding CFO is clearly the longest standing the turmoil in the industry has been just phenomenal and and we've been able to do this and have operating income no matter how volatile Bitcoiners Ben.

Frank Holmes: The turmoil in the industry has been just phenomenal. We've been able to do this and have operating income. No matter how volatile Bitcoin has been, we have always been able to squeeze out operating income and have huge expansion, which we've done this year with this growth. The most efficient tier 1 Bitcoin mine data center operator. You know, that's really important for you to recognize spanning nine time zones in three countries and five languages. We have the lowest industry SG&A per Bitcoin mine and best in class for uptime and efficiency. We know a lot about Bitcoin mining, and we also know in depth and breadth more than these other Bitcoin miners that are going into the space of AI. We've been doing it for three years. I believe we're quite successful.

We have always been able to squeeze out operating income and have huge expansion, which we've done this year.

With this growth.

The most efficient tier one bitcoin mine data center operator.

That's really important for you to recognize spanning nine time zones in three countries and five languages.

We have the lowest industry SG&A per bitcoin mine and best in class for uptime and efficiency. So we know a lot about bitcoin mining and we also know in depth and breadth. More then are these other big coin miners that are going into the space of AI, we've been doing it for three years.

I believe we are quite successful it's much more complicated it's much more detailed and substantially more expense so per megawatt per chip to go build out a tier three H PC or a high performance computing data center for AI.

Frank Holmes: It's much more complicated. It's much more detailed and substantially more expensive per MW, per chip to go build out a tier 3 HPC or a high-performance computing data center for AI. Cambridge University has said it's 33 to 1 from a Bitcoin mining. What Bitcoin mining does is it sources electricity, builds out the necessary infrastructure, and then you go, as further things are developed in economies such as dark fiber optics to move the data along. It takes time for that in many emerging countries. For Paraguay, I have to agree with Secretary of State Rubio of saying that Paraguay has the potential to become the data center capital of Latin America.

Cambridge University has said, it's 33 to one from a bitcoin mining so what <unk> does is it sources electricity builds up the necessary infrastructure and then you go as further things are developed economies such as dark fiber optics to move the data long. It takes time for that in many emerging countries, but for.

Paraguay.

I have to agree with secretary of State Rubio, I was saying that Paraguay has the potential to become the data center capital of Latin America, and we hope to be a significant part of that HBC buildup. As we are doing what we're doing now on the bitcoin mining. So we have this proven track record, we're now scaling and AI.

Frank Holmes: We hope to be a significant part of that HPC build-out as we are doing what we're doing now in the Bitcoin mining. We have this proven track record. We're now scaling in AI, and let me walk you through a few comments on that. Next, please. 10 November, HIVE reports October production, 289 BTC, achieves the 24 exahash, and completes Paraguay expansion while fueling Canada's Tier 3 and AI data center growth. Next, please. We've shown this growth by buying a former Bitcoin mining data center, in, within the city of Toronto near the airport, so uptime is all the time. Going from Tier 1 to Tier 3 will be much faster than starting from scratch.

Let me walk you through a few comments on that next please.

So November the 10th.

Reports October production 289, BTC achieved the 24 extra harsh and complete Paraguay expansion, while fueling Canada's tier three in AI data center growth next please.

We've shown this growth by buying.

A former bitcoin mining data center.

And within.

The city of Toronto near the airport. So uptime is all the time and going.

Going from tier one to tier three will be much faster than starting from scratch. This is a perfect ideal location and we feel that.

Frank Holmes: This is a perfect ideal location, we feel that with that, this will be a 2-tier payback. Clients that we've already built out 10,000 customers around the world. The unique relationship we have with Bell Canada is transformative. Besides going from Tier 1 Bitcoin data center to Tier 3, which is much more expensive, because you need much more air conditioning because you actually build a brain. When you think of these H200s and Blackwells, these chips are more intensive consumption of electricity, you need much more air conditioning and the HVAC, and you need more support. Those dynamics are really important for investors to realize, besides headlines, it takes time to do it. We've done it, we're now expanding rapidly. Next, please.

This will be a two tiered payback and.

Clients. So we've already built out 10000 customers around the world, but the unique relationship we have with Bell, Canada is transformative besides going from tier one bitcoin datacenter to tier three which is much more expensive.

Because you need much more air conditioning, because you actually build a brain when you think of these.

<unk>, two hundreds and Blackwell.

These chips are more intensive.

Consumption of electricity, so you need much more air conditioning, and the HVAC and you need more support so those dynamics are really important for investors to realize besides headlines. It takes time to do it we've done it and we're now expanding rapidly next please.

Frank Holmes: When we look at our suite of assets around the world, one of them is that we bought an asset besides Toronto. We bought it in northern Sweden, Boden, near Facebook, and we'll convert a data center there like we're doing in Toronto. That will go through. It's already started that process, that conversion. We said, you know, we have New Brunswick on the border of Maine, and this is a beautiful campus of data centers. We made a press release just recently. We bought more land, secured the position to build out our Tier 3, and it'll be the biggest pure HPC data center complex in Canada at this time. We're very excited about this.

So when we look at our suite of assets around the world.

One of them is that we bought an asset besides Toronto, we bought it in northern Sweden, Boden nearer Facebook and will convert.

Datacenter there like we're doing in Toronto.

And Thats that will go through its already started that process that conversion, but then we said you know we have new Brunswick on the border of Maine.

And this is a beautiful.

Our campus of data centers. So we made a press release just recently, we bought more land secured the position to build out our tier three and it will be the biggest pure HTC data center complex in Canada. At this time. So we're very excited about this tremendous blue sky.

Frank Holmes: It's a tremendous blue sky opportunity as we're going right now for this particular asset. First is we'll tie up the land, we have the electricity, and now to get the engineering complete drawings, so we can start the construction in Q1 of next year. Next, please. BUZZ High Performance overview, HPC. Data center locations right now today is downtown Montreal and Stockholm, Sweden. We have GPU clusters. We have over 5,000 GPUs and AI cloud services built, purposes-built AI cloud with managed services and agentic refinery. That means that you can provide more services, especially when you have 600 sales force of Bell Canada that needs to get caught up quickly, and we're their strategic partner for that. We've already shown what we can do.

Opportunity.

As we're going right now for this particular asset first was a tie up the land we have electricity and now to get the engineering complete drawings. So we can start the construction in the first quarter of next year next please.

So buzz high performance overview H PC, So data center locations right now two day as downtown Montreal in Stockholm, Sweden, we have GPU clusters, we have over 5000 Gpus.

And AI cloud services built.

Purpose built AI cloud with managed services and our <unk> refinery that means that you can provide more services, especially when you have 600 sales force and Bell Canada.

That needs to get caught up quickly and we are their strategic partner for that.

We've already shown what we can do or doing a $100 billion in revenue and now we're going to have scale. It over the next 12 months fivefold Blue Sky well I just showed it to you we're going to go through a transformation of tier one or tier three HBC data centers and I think when we look around the world right now on the back of the envelope was 90 megawatts.

Frank Holmes: We're doing $100 million in revenue, and now we're gonna scale it over the next 12 months fivefold. Blue sky, well, I just showed it to you. We're gonna go through a transformation of Tier 1 to Tier 3 HPC data centers. I think when we look around the world right now, the back of the envelope's 90 MW. If you start looking at other assets we're working on securing, it's much higher. The long-term vision and opportunities for Paraguay are just immense. We're very excited about this growth opportunity. Unlike other people, we've done it, and we know what it is to build data centers. We know what it is to scale Tier 1 data centers, and we know what it takes to build Tier 3, and we are scaling. Next, please.

And if you start looking at other assets, we're working on securing its much higher and the long term vision and opportunities for Paraguay are just immense so.

Very excited about this growth opportunity, but unlike other people we've done it and we know what it is to build a data centers, we know what it is to scale.

Tier one data centers and we know what it takes to build tier three and we are scaling next please.

Frank Holmes: This was a very important transaction for BUZZ HPC in Canada because Bell Canada is the largest telecom in the country. This partnership is to help build sovereign AI infrastructure through the Bell AI Fabric initiative, advance NVIDIA hardware and networking, deploying NVIDIA Ampere, Hopper, and Blackwell GPUs with Quantum-2 InfiniBand across Bell's fiber network and data centers. Canada is huge opportunity because they're way behind. Highly educated, and they've just been slow, but under Prime Minister Carney, this has now been elevated to the very top, with an AI minister. This is full tilt on the country, doing everything to get caught up, just like America is getting caught up to surpass China. Tremendous initiatives, this is very positive and constructive.

This was a very important transaction for buzzer HBC in Canada, because bell, Canada is the largest telecom in the country.

This partnership is to help build sovereign AI infrastructure through the Bell AI fabric initiative advanced Nvidia hardware networking deploying Nvidia and pair of Hopper and Blackwell Gpus with quantum two <unk> band across Bell's fibre network and data centers.

Canada is huge opportunity because they're way behind highly educated.

And they've just been slow but under.

Prime Minister Carney.

This has now been elevated to the very top with AI Minister. This was full tilt on the country are doing everything to get caught up just like America is getting caught up to surpass China tremendous initiatives. So this is very positive and constructive and the initial deployment of national reaches the five Meg.

Frank Holmes: The initial deployment and national reach is the 5 MW GPU facility in Manitoba, with plans for the national expansion, like we talked about Eastern Canada. Data sovereignty, security, and sustainability, it's become a very important issue for many of these countries. We believe that HIVE has its head office in Texas, reporting for Nasdaq and doing financial reporting under GAAP. The intellectual capital and the BUZZ, they're a Canadian company, so would qualify under the sovereign sovereignty of Canada and wouldn't be a challenge to the degree that people are worried about, like in France, over the Patriot Act. I really think some of this becomes really important to recognize how uniquely HIVE is positioned for this. Next, please. There's our growth.

What GPU facility in Manitoba with plans for the National expansion like we've talked about Eastern Canada, and then data.

<unk> security and sustainability has become a very important issue.

For many of these countries. So we believe that hive.

Has his head office in Texas.

Porting for NASDAQ and doing financial reporting under GAAP.

But the intellectual capital and the Buzz are their Canadian company, so would qualify under the sovereign.

Sovereignty of Canada and wouldn't be.

A challenge to the degree that the people are worried about.

In France over.

The Patriot Act so.

I really think some of this becomes really important to recognize how uniquely hybris positioned for this next please.

Those are our growth February was $13 million may was $20 million.

Frank Holmes: February was $13 million, May was $20 million. We're hoping that to get these others deployed as fast as possible to get us up to $40 million in Q4, which is gonna have this run rate, which is gonna be for us, our year end is March. Going into 2026, based on all the projections we have from hooking up our suite of NVIDIA chips, with looking at those contracts, it looks like a very conservative run rate of a $100 million annual run rate with extremely attractive margins for growth. Next, please. HIVE's top institutional investors are Citadel Advisors, Schwab Crypto Thematic ETF, Amplify Investments, Tidal Investments, and Charles Schwab as a discount broker. You know, I remember when a few years back it was used to be Robinhood.

And we're hoping that to get these others deployed as fast as possible to get us up to $40 million.

In the fourth quarter, which is going to have this run rate, which is going to be for us our year end is March.

And then going into 'twenty six based on all the projections, we have from hooking up our suite of Nvidia chips with looking at those contracts. It looks like a very conserved run rate of $100 million annual run rate.

With extremely attractive margins for growth next please.

So hives top institutional investors of Citadel advisors swab, crypto somatic ETF amplify investments title investments and Charles Schwab.

Discount broker.

I remember a few years back it was used to be robinhood.

Frank Holmes: Now it's showing up with Charles Schwab. Charles Schwab bought TD Waterhouse. It's just great because they are the biggest beast now. It's great to see broad retail in addition to institutions that are here. Met with the fund managers of most of these companies this week in a conference that Aydin Kilic, our CEO, and I attended in Miami that was put on by Cantor Fitzgerald, that was called Crypto Infrastructure, AI, and Energy. Big theme going forward. Next, please. We celebrated 4 years on Nasdaq. It was just a major home run. We had 100 people out for it. 2 ministers from Paraguay and New York City came out for it.

And but now its showing up with Charles Schwab and Charles Schwab TD Waterhouse. So its just great because they are the biggest piece now and it's great to see broad retail. In addition to institutions that are here and met with the fund managers of most of these companies.

This week.

Conference that I Didnt Killik, our CEO and I attended in Miami that was put on by Cantor Fitzgerald.

Was called Crypto infrastructure, AI and energy.

Big theme going forward next please.

So we celebrated four years on NASDAQ and it was just a major home run we had 100 people out forward, we just sort of the ministers to ministers problem, Paraguay and in New York City came out bar.

Frank Holmes: I can see the president of Bermuda is there, Tim. I see auditors. I see a huge crowd and we wanna thank everyone for helping us celebrate that. There's Aydin, sorry, this is Aydin, hitting the bell, and that's my daughter. You can see Craig Tavares, the president of Buzz, his daughter. It was a home run for us all to be participating. What's happened short term before I pass you on to the other smarter executives is this sort of AI adoption. There's been some really important researches come out from Morgan Stanley that's been circulated about framing the AI boom.

I got to see the president of remittance there.

Tim and I see auditors I see I see a huge crowd and we want to thank everyone for helping us celebrate that there's Adam.

Sorry, if there's items hitting.

Hitting the bell and that's.

My daughter, and you can see.

<unk> the president of Buzz.

His daughter, so it was a home run for us all to be participating, but what's happened in the short term before I pass you onto.

The other smarter executives is to sort of AI adoption, there's been some really important researchers come out from Morgan Stanley.

That's been circulated about framing the AI boom and and I'm, a big believer that the AI boom is for real.

Frank Holmes: I'm a big believer that the AI boom is for real. It's there. Sentiment drives a lot of these markets short term. All you have to do is get these clusters of calling bubble. There's so many analysts or got a PhD, they say, in bubbleology, but they do not really understand what is just driving the secular market. We're due for this correction, which we're getting, which only sets it up for a more attractive buy.

There, but sentiment drives a lot of these markets short term.

And all you have to do is get these clusters of calling bubble under so many analysts are got a Phd they stay in bubble allergy.

They do not really understand what is driving the secular market and we're due for this correction, which we're getting.

Which only sets it up or a more attractive by.

Frank Holmes: If we were valued at other data centers, seeing these other companies in the Bitcoin mining that do not have any high-performance computing facilities today, do not have any AI revenue generating for their NVIDIA chips, have valuations that if you apply to HIVE would be at $20, just to give you an idea of sort of the great opportunity that we have as we continue to scale. I think that it's important to just recognize, you know, what a lot of this noise that's taking place is short term, and it gives you just this opportunity that you see CoreWeave go through a correction. It's just part of the delays and disappointments on the infrastructure build-out that some of these people are experiencing. It's not going away.

If we were valued at other data centers.

Seeing these other companies and the bitcoin mining that do not have any high performance computing facilities today do not have any AI revenue generating for the Nvidia chips have valuations that have you applied to hive <unk> $20 just to give you an idea of.

Sort of the great opportunity that we have as we continue to scale and I think that it's important to just recognize what a lot of those noise. That's taking place as short term and it gives you just this opportunity.

That you'll see core we go through a correction.

It's just part of the delays and disappointments on the infrastructure build out that some of these people are experiencing.

But it's not going away. This is this is a arms race just like the push by NATO in Europe, and Canada, and the U S of <unk>.

Frank Holmes: This is a arms race, just like the push by NATO in Europe and Canada and the US of huge military spend, a huge rebuilding of all the military. That's just not tanks, but it's tanks with AI, with GPU chips, and they need data centers. The digital economy is gonna continue to need and it's gonna continue to grow. We have these things they call phantom demand. We experienced with the Bitcoin mining when the Chinese shut down Bitcoin mining and everyone from China started making these huge, incredible bids for energy all over the world. They were just phantom, trying to see if they could secure some energy and it comes up, but I just think that my history of these cycles is that we are still very early innings on the adoption.

Huge military spend huge rebuilding of all the military and Thats, just not tanks, but it's tanks with AI with GPU chips and they need data centers and the digital economy is going to continue to need and it's going to continue to grow.

We have these things they called tantrum demand, we experienced the bitcoin mining when the Chinese shutdown bitcoin mining and everyone from China startup, making these fuel.

Credible bids for energy all over the World. They were just spent on trying to see if they could secure some energy and it comes up but it's I just think that my history of these cycles.

Is that we are still very early innings on the adoption and when you look at a pure datacenter and the multiples that trade that to revenue and the multiples they trade out to cash flow.

Frank Holmes: When you look at a pure data center and the multiples they trade at to revenue and the multiples they trade at to cash flow, really makes some of the Bitcoin miners outstandingly attractively priced. In particular, my bias position is with HIVE when I look at multiples to revenue, as we are powering forward with our twin-engine turbocharged strategy of both Bitcoin mining growth, not only this year, the biggest growth. We also plan for next year. When I looked at our peers, we have the biggest growth profile for Bitcoin next year, and we're still very bullish about it. At the same time, we're pretty conservative of how we write down the value or depreciate our ASIC chips faster over two years because every four years, the supply halves.

Really mix some of the big coin miners outstandingly attractively priced and particular my bias position is with hive when I look at multiples to revenue as we are powering forward with our twin engine turbocharged.

Strategy of both bitcoin mining growth not only this year. The biggest growth. We also plan for next year when I looked at our peers. We have the biggest growth profile for bitcoin next year, and we still very bullish about it but at the same time, we're pretty conservative of how we write down the value of depreciate our ASIC.

<unk> faster over two years, because every four years the supply has and what you are seeing which I remained very positive like Moores law is that you are witnessing the technology energy efficiency that theyre going back 10 years ago was like a 1000 Jules.

Frank Holmes: What you're seeing, which I remain very positive, like Moore's law, is that you are witnessing the technology of e-energy efficiency that going back 10 years ago was like 1,000 joules per second consumption of energy for a chip, ASIC chip. Now it fell a couple of years back to 30, and now they're coming in at 12, and people are working on 8 and 6. By the time of this next halving, I think they'll be at 2 and 3. We're just with AI gonna be able to build more energy-efficient data centers, more energy-efficient ASIC chips, and that's only gonna mean less consumption for the global Bitcoin network that's decentralized. But it means that you're still gonna be very profitable business and being significant in laying the railway tracks for the growth in high-performance computing.

Per second consumption of energy for our chip ASIC chip and now itself a couple of years back to 30, and now Theyre coming in at 12 and people are working on eight and six so by a Tyler. This next having I think there'll be a two and three we're just.

AI is going to be able to build more energy efficient data centers more energy efficient AC chips, and that's only going to mean less consumption for the global Bitcoin network. This decentralized.

But it means that youre still going to be very profitable business and being significant in laying the railway tracks for the growth in high performance computing.

Frank Holmes: Thank you.

Aydin Kilic: Thank you, Frank, for that executive overview. Frank, of course, is the Co-founder, Executive Chairman of HIVE. Now I'm gonna get into a bit more of a deep dive on our accomplishments for this quarter and our strategy for 2026. Let's hop into it. It was a record-breaking quarter for HIVE. $87 million of revenue. Of that, $82 million from Bitcoin mining and over $5 million from our HPC business. We're at $20 million ARR for AI cloud business, which is phenomenal. A $42 million gross operating margin for the quarter. That translates to a $31.5 million adjusted EBITDA and a $23.8 million EBITDA with $38 million of depreciation this quarter. That leads to a net loss of $15.8 million, which of course is on a non-cash basis.

<unk>.

And thank you Frank for that executive overview, Frank of course is the co founder executive chairman of height.

And again into a bit more of a deep dive on our accomplishments for this quarter.

And our strategy for 2026, let's jump into it.

Okay.

So it was a record breaking quarter for high.

$87 million of revenue of that $82 million from bitcoin mining and over $5 million from our <unk> business. So we're at $20 million IRR for AI cloud business, which is phenomenal I mean $42 million gross operating margin for the quarter.

That translates to a $31 5 billion adjusted EBITDA and.

And at $23 8 million EBIT.

With three 8 million of depreciation this quarter at least two of net losses 15.

$15 8 million, which of course is on a noncash basis, but Moreover.

Aydin Kilic: Moreover, what I'm really proud of is that we realized an 18% ROIC this quarter on an annualized basis. Finally, as of 30 September, we had 210 Bitcoin in the treasury, although in addition to that, we have 1,992 Bitcoin pledged. Between our pledge and what we have in the treasury, that's about 2,200 Bitcoin. It's been a phenomenal quarter, and I'm really proud of how our balance sheet deployment to scale the business was, in my opinion, a great success. Let's go to the next slide. We are very serious and very dedicated about having best-in-class ROIC. As the numbers this quarter once again affirm, and it comes from disciplined capital allocation. We always focus to get the best ROI when we buy ASICs.

And I'm really proud of is that we realized 18% ROIC this quarter on an annualized basis and finally.

As of September 30 of 210 big win in the Treasury. Although in addition to that we have 1992 bitcoin pledge so.

Between our plants and what we have in the Treasury. That's about 2200 bitcoin. So it's been a phenomenal quarter and I'm really proud of how our balance sheet deployment to scale. The business was in my opinion a great success.

Right.

Okay.

We are very serious and very dedicated about having best in class on ROIC.

As the numbers this quarter once again affirm.

It comes from disciplined accountable disciplined capital allocation, we always focus to get the best ROI, we buy AC AC purchases are the biggest variable and realizing an ROI from their free cash flow.

Aydin Kilic: ASIC purchases are the biggest variable in realizing an ROI, and then from there, free cash flow for your investments in the Bitcoin mining business. We're experts in that, and I believe pound for pound, we're the best in the industry at that. We also lead with best-in-class uptime. We run our ASICs through their entire economic lifestyle to maximize free cash flow and profit on our Bitcoin mining business from the investments we make. By the way, we also lead the sector with corporate G&A, and we have the numbers to back it up. Next slide. The overview of the global business. Currently, we're mining approximately 10 Bitcoin a day with 25 exahash capacity installed. This was fueled by a transformative growth in Paraguay, where we grew our business from $100 million from fiscal 2025 to currently we're at $400 million ARR.

The bitcoin mining business, we're expert in that and I believe pound for pound. We're the best in the industry at that we also lead with best in class Uptime, we run our assets to their entire economic lifestyle to maximize free cash flow and profit on our mining business from the investments, we make and by the way. We also lead the sector with corporate G&A and we have the numbers to back it up.

Next slide.

The overview of the global business currently remaining approximately can be communicated with 25.

As he installed this was fueled by a transformative growth in Paraguay, where we grew our business from $100 million.

From fiscal 2025 to currently we're at $400 million R&R. Additionally, we have 5000 Gpus between Canada, and Sweden operating AI cloud and that is currently at $20 million here are as per our quarterly financials, but the really exciting news is our target to grow too.

Aydin Kilic: Additionally, we have 5,000 GPUs between Canada and Sweden operating AI cloud, and that is currently at $20 million ARR as per our quarterly financials. The really exciting news is our target to grow to over $200 million ARR between both AI clouds and also hyperscaler colo. Finally, we talk about our capital deployment strategy, prioritizing ROIC. A double click on our BTC pledge. We have great downside protection as well as upside. The almost 2,000 Bitcoin that we pledged, 1,234 Bitcoin were pledged at $87,000. What that does, it gives us upside with Bitcoin today at approximately $97,000. Even with Bitcoin at $97,000, there's over $12 million of upside in our currently pledged Bitcoin.

Over $200 million IRR between both AI cloud you can also hyperscale or Colo.

And finally, we talk about our capital deployment strategy prioritizing ROIC.

Double click on our BTC pledge, so we have great downside protection as well as upside.

2000, Big point that we placed 234, bitcoin where pledge 87000.

And so what that does it gives us upside with bitcoin to date approximately 97000, even with declining 97000, just over $12 million of upside and are currently pledge bitcoin and Moreover, we Additionally had pledged 758, the quaint and average about 115000.

Aydin Kilic: Moreover, we additionally have pledged 758 Bitcoin at an average of about 115,000. That's $14 million of downside protection from the other component of our pledge. Collectively, if you look at the downside protection of $14 million and the upside potential of the $12 million, even with Bitcoin having corrected where it is, the value of our pledge has been accretive to the tune of about $25 million, which I think is very phenomenal, and it just shows that we're very methodical and thoughtful. We've used our cash flow from operations, we've used our HODL and earlier this year, some of the ATM to scale the business to get to that $400 million ARR. We have some very exciting things in the pipeline for the AI and HPC business with Buzz.

$14 million of downside protection from the other component of our pledge. So collectively if you look at the downside protection of $14 million and the upside potential of the $12 million, even bitcoin, having corrected where it is.

Value of our pledge has been accretive to the tune of about $25 million, which I think is.

Phenomenal and it just shows that we're very methodical and thoughtful we've used our cash flow from operations Eastern hurdle and earlier this year some of the ATM to scale the business to get to that $400 million IRR and then we have some very exciting things in the pipeline for the AI and HBC business, but that's up to the next slide.

Aydin Kilic: Let's hop to the next slide. The dual engine strategy of growth. Cash flow from the Bitcoin mining business helps us to scale BUZZ HPC, where we have 3 AI data center expansions going to tier 3 plus, and we'll get into that. Right now, at a glance, the Bitcoin mining business, 25 exahash, a blended fleet efficiency of 17.5 joules a terahash. We're at $400 million ARR, as we mentioned, approximately 50% operating margin for electrical costs based on current mining economics, and it's a footprint of 440 megawatts of green energy. Now, the exciting news we recently announced, in addition to this, we have an additional 100 megawatts that ANDE and the government of Paraguay has approved for HIVE, which we're very exciting about.

So the dual engine strategy of growth cash flow from the bitcoin mining business helps us to scale by the HBC, where we have three three AI data center.

Pension is going to tier three plus and we'll get into that but right now like Atlanta, the bitcoin mining business 25 eggs hash the blended fleet efficiency of $17 five <unk>. We're at $400 million here are as we've mentioned approximately 50% operating margin for electrical cost based on our current mine economics, and it's a footprint 400.

40 megawatts of Green energy now the exciting news, we recently announced in addition to this we have an additional 100 megawatts that andi and the government in Paraguay approach for high but you are very exciting about that gives us the potential to get to a capacity of 35% of cash at the end of next year and that would bring our fleet efficiency down 250 <unk>.

Aydin Kilic: That gives us the potential to get to a capacity of 35 exahash for the end of next year, and that would bring our fleet efficiency down to 15 joules a terahash if we were to upgrade with the latest generation machines. Now, we only buy ASICs when it satisfies our ROI targets, so we're focused on building the infrastructure. The other really great piece of news is that this is at the Yguazú site, which we'd purchased from Bitfarms, and originally was designed as a 300 MW site. What we're really excited to announce is that the incremental cost to bring that 100 MW on is only $250,000 a megawatt. Recall that the all-in purchase price for this site, and even to build our Valenzuela site, is $400,000 a megawatt all in. That's land, substation, and buildings.

Yeah, we were upgraded with the latest generation machines now we only buy when it satisfies our ROI targets. So we're focused on building infrastructure and the other really great piece of news is that this is at the <unk> site, which.

Which we purchased from <unk> and originally was designed as a 300 megawatt site. So what we're really excited to announce is that the incremental cost to bring 100 megawatts is only 250 grand in megawatt recall that the all in purchase price for this site and even to build our balanced weightless site. It's 400 Grand in megawatt ex land substation buildings.

Aydin Kilic: Well, the good news is that all the civil work is already done for the additional 100 MW at Yguazú, so all we do is we drop in the transformers for the substation and then the hydro mining infrastructure. $250,000 a MW, very incremental and attractive cost to bring online that capacity. With that capacity, we have optionality. We can either install next generation ASICs. Of course, we always shop for ASICs that are about a 1-year ROI, or we can look at other strategies to monetize that 100 MW of green energy. We have ordered the long lead time items, namely the substation, which are expected to arrive in Q1 of 2026. Stand by for updates on that.

Well the good news is that all of the civil work is already done for the additional 100 megawatts. So all we do is we drop in the Transformers substation.

Hydro mining infrastructure 250 Grand in megawatt very incremental and attractive cost to bring online capacity and with that capacity, we have optionality, we can either.

Installed next generation Asics of course, we always shop for 86% of about a one year ROI or we can look at other strategies to monetize about 100 megawatts of Green energy and.

And we have ordered the long lead time items, namely a substation, which are expected to arrive in Q1 of 2026 standby for updates on that and.

Aydin Kilic: By the way, if we were going to do 35 exahash, the current mining economics, that'd be about a $550 million ARR for end of Q4 2026. Moreover, let's talk about Buzz. We have a very exciting year ahead for Buzz. We've recently announced that the additional 6,000 Blackwell GPUs, B200s for H1 and B300s for H2, will come online in 3 data centers, bringing our current 5,000 GPU cloud to a total of 11,000. We're gonna double the size of our GPU AI cloud by the end of 2026.

And by the way if we were going to do 35 ex the current mine economics out of you bought $550 million <unk> for end of Q4, 2026. Moreover, let's talk about us.

We have a very exciting year ahead for bus, we've recently announced that the additional 6000 Blackwell Igpu's B 200 for <unk> B 300, <unk> will come online in three data centers, bringing our current 5000 GPU cloud do totaled 11000, we're going to double that.

Consumer GPU.

GPU AI cloud by the end of 2026, and Moreover, with the conversion of New Brunswick, we bought additional land. So that campus is now over 32 acre or sorry over 30 acres.

Aydin Kilic: Moreover, with the conversion of New Brunswick, we bought additional land, so that campus is now over 32 acres, or sorry, over 30 acres. It's currently an operating tier 1 70 MW data center. We'll convert that to tier 3 plus. That will provide us some hyperscaler colo. You add that all up, it gets us to a target of $225 million for the end of 2026 for BUZZ. Collectively, our target for the end of 2026 can be $750 million for both the dual engine strategies. Of course, we prioritize ROIC. On the scaling of the Bitcoin mining business, we will scale that if the ASIC investments allow for ROIC and they're attractive.

And it's currently in operating tier 170 megawatt data center will convert back to tier three plus and that will provide us some hyperscale a colo you add that all up.

It gets us to a target of $225 million for the end of 2026 four.

Collectively our target for the end of 2026 can be $750 million.

For both the dual engine strategy of course, we prioritize ROIC.

And so on the scaling of the bitcoin mining business, we will scale that.

Basic investments allow for ROIC seem they are attractive and of course on bus HBC, we will be bringing online. These gpus.

Aydin Kilic: Of course, on BUZZ HPC, we will be bringing online these GPUs in our partnership with Dell for the first phase of our Dell partnership. Let's go to the next slide. At a glance, the global footprint for BUZZ now, this is just HPC. We currently have approximately 5,000 Hopper, which means H100s and H200 series GPUs, about 4,200 A-series GPUs, and those are in Sweden and Quebec. The additional 6,000 Blackwell GPUs that we are going to bring online are coming on in 3 tranches. One is through the partnership with Bell in Manitoba. One is through the Toronto data center, which we recently closed on the purchase of and announced the conversion to tier 3 liquid cooled. Of course, our facility in Boden, Sweden, which will also be tier 3 liquid cooled.

Our partnership.

For the first phase of our Bell partnership let's go to the next slide.

So I think Lance the global footprint for bites now suggest HBC. We currently have approximately 5000 hopper, which means each one hundreds in each 200 series Gpus, but 4200 80 series Gpus.

And those are in Sweden, and Quebec, and so the additional 6000.

Rockwell Gpus, and we're going to bring online are coming on in three tranches. One. This is a partnership with valley, Manitoba, one is through the Toronto data Center, which we recently closed on the purchase and announced the conversion your tier three liquid cooled and then of course, our facility in Sweden, which will also be tier three liquid cooled so Toronto in Sweden.

Aydin Kilic: Toronto and Sweden are owned, HIVE and BUZZ owned and operated data centers. We own the land and buildings, and we'll be converting those to liquid cooled. Those will come online in Q4 of next year and each facilitate 2,000 NVIDIA Blackwell series GPUs. This shows you the map and the footprint of how we scale from 5,000 GPUs to 11,000 GPUs in our cloud business. Of course, with New Brunswick, the conversion of that to a tier 3 colo with, you know, an expected IT load of possibly 50 to 55 MW, at market rates in that sector would be about $85 million additional ARR.

Owned.

Hi did buzz wounding operated data centers to be able to land and buildings and would be converting those liquid cooled those will come online in Q4 of next year and each facilitate.

2000, NPD, a blackboard series Gpus and so this shows you the map and the footprint of how we scale from 5000 GPS to 11000 Gpus.

Cloud business, and then of course with New Brunswick.

The conversion of that to a tier three colo with expected it possibly $50 to 55 megawatts.

At market rates in that sector would be about $85 million. Additionally, RR and so this gives you a high level of.

Aydin Kilic: This gives you a high-level glance of how we incrementally scale our $20 million ARR to dated to over $200 million target for the end of next year. Next slide, please. Beautiful photo of one of our H200 clusters operating. To help clarify on the GPU business, because we're doing both GPU AI cloud as well as to target hyperscaler colo New Brunswick. If we focus on the GPU cloud business, the growth is $20 million going to $140 million, and that reflects the growth from 5,000 to 11,000 GPUs by bringing on an additional 6,000 Blackwell GPUs in those three facilities. You know, currently, we have a good mix of long-term contracts for 3 to 12 months, where we're monetizing our $20 million ARR, as well as on-demand.

How we incrementally scale, our $20 million or to date to over $200 million target for the end of next year.

Slide please.

So beautiful photo of one of our H 200 clusters operating now.

To help clarify.

On the GPU business, because we're doing both GPU AI cloud as well as a good target hyperscale or Colo New Brunswick. So if we focus on the GPU cloud business the growth is $20 million going to $140 million and that reflects the growth.

<unk> thousand to 11000 Gpus by bringing on an additional 6000 Blackhall Gpus in those three facilities and currently we have a good mix of long term contracts for three to 12 months, where we're monetizing our $20 million <unk> as well as.

On demand we have over 10000 unique users.

Aydin Kilic: We have over 10,000 unique users through our partner networks. I think the really exciting thing is to highlight that we're focusing on liquid-cooled tier 3 data centers for the future as these NVIDIA racks get more and more dense. We've heard that the Blackwell GPU clusters for B300 could be as dense as 180 kilowatts per rack. Rumors are that Rubin could be as much as 200+ kilowatts per rack. It's building for the future. Of course, we're really excited about that partnership with Bell. Let's hop to the next slide. This was released this quarter, a very exciting initiative where Bell is Canada's largest telecom provider. They've partnered with BUZZ HPC, and the team's done a phenomenal job to bring this deal to fruition. We've just executed all the operating agreements.

Through our partner networks, and I think the really exciting thing is to highlight that we're focusing on liquid cooled Q3 data centers for the future as these <unk> get more and more.

Dense we've heard that the Blackhawk GPU clusters for <unk> hundred <unk> hundred 80 kilowatts per rack and rumors are that <unk> could be as much as.

200, plus kilowatts per rack. So it's building for the future and of course, we're really excited about that partnership with Bell, let's hop to the next slide.

So this was released this quarter are very exciting.

Initiative, where delta of Canada's largest telecom provider they've partnered with platts HBC and the team's done a phenomenal job to bring this to fruition.

Just executed all the operating agreement and so we expect that the.

Aydin Kilic: We expect that the first cluster of B200s, which will be operating in Dell's servers to arrive at the end of this year and go live in January 2026 and bring online that initial incremental ARR. This will be part of the Sovereign Data Strategy, Canadian-owned, meeting the residency requirements. Buzz is a Canadian company with a great pipeline of data centers in Canada through Bell and the Toronto Data Center. This is all very exciting. Craig Tavares has done a phenomenal job advancing that initiative along with Mario Sergi and our HPC team. Next slide. By the numbers, again, on a timeline basis, this shows a current $20 million ARR.

First cluster of V.

200, <unk>, which will be operating in and gals.

Rivers to arrive at the end of this year and go live.

January of 2026, and bringing online that initial incremental <unk> and this will be part of the sovereign data strategy Canadian one meeting the rest of the <unk> requirements <unk> buses.

Buses.

Canadian.

Company with.

Great.

Pipeline.

Data centers in Canada through balance of Toronto datacenter. So these are all very exciting great deforest done a phenomenal job.

Advancing that initiative, along with Mario <unk> and our <unk> <unk>.

Next slide.

So.

By the numbers again on a timeline basis, it shows occurring 20 million <unk> and as we bring those incremental clusters.

Aydin Kilic: As we bring those incremental clusters, those B200s into the Bell partnership, 1,000 for Q1, another 1,000 by Q3, each cluster of 1,000 GPUs on long-term rental basis. We're forecasting this. If we just go 2-year long-term contracts, and you can look up market rates on SemiAnalysis to see where H200s and B200s trade at. This is based on dollar per GPU hour. Long-term, 2-year contracts is about $20 million per cluster of 1,000 GPUs. We're at $20 million today. If we bring on 1,000 GPUs in Q1, it gets us to $40 million ARR. Another 1,000 GPUs in Q2, Q3 gets us to $60 million ARR. The big ramp is Q4 next year because that's when the conversion of Toronto and Boden data centers will be complete.

<unk> two hundreds into the Dell partnership thousands for Q1, another 1000 by Q3, each cluster of 1000 Gpus on long term rental basis. So we're forecasting. This if we just go to your long term contracts.

Market rates on semi analysis to see where <unk> hundred can beat you under straight out. So this is based on dollar per GPU, our long term.

Two year contracts is about $20 million per cluster of 1000 Gpus. So we're at $20 million today, if we bring on 1000 Gpus in Q1, it gets us to $40 million <unk> thousand Gpus in Q2, Q3 gets us to $60 million.

Now the big ramp is Q4 next year, because that's when the conversion of Toronto and Boden Datacenters will be complete each of those will bring on 2000 more blackhall Gpus by Q4, we target B three hundreds and of course, a cluster of 4000 Gpus would add about $80 million <unk>. So that's how you get to the.

Aydin Kilic: Each of those will bring on 2,000 more Blackwell GPUs. By Q4, we target B300s. Of course, a cluster of 4,000 GPUs would add about $80 million ARR. That's how you get to the $140 million ARR growth on the AI cloud business with GPUs. In addition to that, separately would be the hyperscaler colo with a conversion of New Brunswick, currently a 70 MW tier 1, into a tier 3 plus data center. That incremental revenue would be about $85 million based on $130 a kW a month. This is the growth strategy for BUZZ for 2026 with both AI cloud and hyperscaler colo. We have the land, we have the power, we have the expertise in running the GPU clusters, and we've been doing it for the last 2 years.

140 million share our growth on the AI cloud business with Gpus.

And then in addition to that separately it would be a tiered hyperscale or colo with the conversion of New Brunswick currently 70 megawatt tier one into tier.

Tier three plus datacenter that incremental revenue would be about $85 million based on $130 a kilowatt month and so this is the growth strategy for <unk> for 2026, with both AI cloud and Hyperscale or Colo, we have the land we have the power we have expertise in running the GPU clusters.

Can we have been doing it for the last two years next slide.

Aydin Kilic: Next slide. We also are vertically integrating the tech stack. HIVE and BUZZ, we have expertise in building and operating data centers. We've developed expertise building and operating the GPU clusters. Especially with the partnership with Bell and sovereign initiatives within Canada, where we want to sell managed services and to AI enterprises, it's about vertically integrating the stack and having a platform that enterprises can use or sovereign clients. This means custom endpoints allowing for agentic AI inference training, tuning. This whole platform, we're very pleased to announce, the next slide, is the BUZZ HPC Cloud. This has just launched, and this has been pressure tested. This is scalable. This allows us to sell sovereign compute for our clients in Canada.

We also are vertically integrating the tech stack, so high and we have expertise in building and operating data centers, we don't expertise building and operating the GPU clusters.

But especially with the partnership with Bell.

Sovereign initiatives within Canada, where we want to sell managed services and to AI enterprises, it's about vertically integrating the stack and having a platform enterprises can use we're suffering clients and so this means custom endpoints, allowing for Gen <unk>.

And French training.

And so this whole platform.

Pleased to announce the next slide.

Okay.

Is the buys HBC cloud.

So this is just launched and this has been pressure tested. This is scalable it's allows us to sell sovereign compute for our clients in Canada, and we think that this is a very exciting development that really opens up.

Aydin Kilic: We think that this is a very exciting development that really opens up the sovereign market in Canada, which of course, Canada is the home to the Vector Institute, the home of Geoffrey Hinton. Our BUZZ team, led by Craig Tavares, is doing an amazing job working with the different strategic partners in Canada, with Bell, with Dell, with the different research institutes. We have some exciting news in the pipeline, so stay tuned for that. Moreover, what this does is with our platform selling AI enterprise solutions, it's a much higher margin business. Let's go to the next slide. This is the money shot. The BUZZ Cloud platform has been ranked and awarded bronze by SemiAnalysis. This is the benchmark in the industry that looks at all the neo clouds.

The sovereign market in Canada, which of course, Canada is the home to the Vectra Institute the homeless Geoffrey Hinton bus.

The team led by Craig Novartis is doing an amazing job working with the different strategic partners in Canada with Bell, which dealt with the different research institutes and we have some exciting news in the pipeline.

Stay tuned for that but Moreover, what this does is with our platform selling enterprise solutions, it's a much higher margin business.

Let's go to the next slide.

And this is the money shot the buzz cloud platform.

Has been ranked and awarded fronts by semi analysis. This is the benchmark in the industry that looks at all the neo clouds, and you will notice and I'm very proud to say our team has worked so hard spuds team has done such a phenomenal job on our first go around with Timmy analysis cluster Max we received front.

Aydin Kilic: You will notice, and I'm very proud to say our team has worked so hard. The BUZZ team has done such a phenomenal job. On our first go around with SemiAnalysis ClusterMAX, we received bronze. You will notice the other industry peers, and when I say industry peers, I'm referring to former Bitcoin miners that are now pursuing HPC AI cloud. The other companies that are a peer group are all in the underperforming category. By the way, even below that, you'll see some names that have raised a lot of capital in the unavailable. They weren't even able to really complete the benchmark test. The next category that's underperforming where they complete it, but obviously not up to the standard.

You will notice the other industry peers, and when I say industry peers I'm, referring to former bitcoin miners that are now pursuing HPE AI cloud the other companies in our peer group are all on the underperforming category.

So and by the way even below that Youll see some names that have raised a lot of capital in the unavailable.

We weren't even able to really complete the benchmark test and then the next category is underperforming where are they.

A complete it but obviously not up to the standard and then beyond that which is where it buzzes amongst some other.

Aydin Kilic: Beyond that, which is where Buzz is, among some other very reputable clouds is Buzz HPC. Our team believes that we're very close to being able to get a similar qualification next year, which would put us right up there with AWS. Super exciting. We're very proud of this accomplishment. Craig and the team have done an absolutely phenomenal job on this. Let's go to the next slide. With the blue sky potential integrating the cloud platform to allow us to sell managed services for AI enterprise clients, we're looking at a much higher margin business. Instead of renting GPUs for bare metal at long-term rates, which is what we presented on the previous slide, and that's the base case.

Reputable.

Cloud is by the HBC.

Our team believes that we're very close to being able to get a similar qualification next.

Next year, which would put us right up there with AWS So super exciting.

And we are very proud of this accomplishment and again, Craig and the team have done an absolutely phenomenal job on this.

Let's go to the next slide.

So.

With a blue sky potential integrating.

For them to allow us to sell managed services for AI enterprise clients, we're looking at a much higher margin business and so instead of renting gpus for bare metal at long term.

Right, which is what we presented on the previous slide and that's the base case.

Aydin Kilic: The bull case or the blue sky case here, if all the GPUs were monetized using our cloud platform for AI enterprise clients in Canada under the BUZZ Sovereign strategy, it would be a much higher margin. By the numbers, you would be looking at approximately double the dollar per GPU hour unit rate. On the previous slide, we were basing it on about $2.30 per GPU hour and these figures here on $4.50 a GPU hour. You get about $40 million in ARR per cluster of 1,000 GPUs. What that does is, if you bring on that first cluster, and they're all being monetized through the BUZZ Cloud platform, it could bring an additional $40 million.

The Bull case of the Blue Sky case here, if all the Gpus were.

Monetize using our cloud platform for.

AI enterprise clients in Canada under the bus sovereign strategy would be much higher margin than by the numbers you would be looking at approximately double the dollar per GPU our unit rate.

And in the previous slide we were basing it on about $2 30 per GPU hour and these figures here on $4 50, a GPU hour you get about a $40 million in the <unk>.

Cluster of 1000 Gpus.

What that does is if you bring on that first cluster and Theyre, all being monetized to the best cloud platform. It could bring an additional $40 million that would mean, the current $20 million. It goes to $60 million <unk> and subsequently increments to almost a quarter billion <unk> just from the AI cloud business again. This is a blue sky not necessarily all of it.

Aydin Kilic: That would mean the current 20 million ARR goes to 60 million ARR, and subsequently increments to almost a quarter billion ARR just from the AI cloud business. Again, this is a blue sky. Not necessarily all the GPUs will be sold through the cloud platform for our sovereign clients. We still have existing relationships where we do sell AI compute globally. We believe the margin will fall somewhere between these targets and the base case targets. If you add on the capacity of hyperscaler colo by converting all of New Brunswick, that brings you to the north of $300 million ARR target.

Gpus will be sold through.

Cloud platform.

For our sovereign clients, we still have existing relationships, where we do sell AI compute globally and so we believe the margin will fall somewhere between these targets and the base case target, but if you add on the capacity of Hyperscale or Colo by converting all of New Brunswick, then that bring to you.

To the.

North of $300 million our target. So if you look at this blue Sky and the base case I do think that.

Aydin Kilic: If you look at this blue sky and the base case, I do think that getting into the quarter billion ARR as a target for end of next year is realizable potential, and we're excited to take it to the next level. We believe that if you look at where the multiples, where some of the peers are trading, it easily puts our AI cloud business at a multi-billion dollar valuation if we were doing $250 million ARR. By the way, this is much higher margin. When you're selling through cloud, the margins are about 90%. In the previous, the base case, where we would do long-term GPU contracts, for at least at Blackwell's about 80% margin after data center and electrical costs.

Getting into the quarter billion <unk> target for end of next year is realizable potential and we're excited to take it to the next level and we believe that if you look at where the multiples are where.

Some of the peers are trading it easily put.

Our AI cloud business.

At a multibillion valuation if we were doing $250 million <unk> by the way. This is much higher margin. When you are selling to cloud the margins are about 90%.

The previous the base case were we to do longer term GPU contracts.

Or at least rent Blackwell, it's about 80% margin after datacenter in electrical costs.

Aydin Kilic: We're very excited to present this, and 2026 will be a phenomenal year. The other exciting piece is that to bring these GPUs online, we have vendor financing. We actually are not required to raise capital to bring on this cluster of GPUs, because 6,000 Blackwells would be about $360 million. We're bringing them on, we're doing about 1,000 GPUs at a time. When we do this, we rely on vendor financing lease-to-own, which allows us to therefore be very mindful about our ROIC. Really, the CapEx is just to finish the conversion of our Toronto data center and our Boden data center. Those two facilitate the growth of 6,000 GPUs. The colo partnership with Bell, it's colo, and we're getting a very attractive rate.

So we're very excited to present this in 2026 would be a phenomenal year. The other exciting piece is that to bring these gpus online we have vendor financing until we actually are not required to raise capital to bring on this clustering Gpus because 6000 black clawson.

$360 million and we're bringing them on.

Were doing about 1000 Gpus at a time.

And when we do this we rely on vendor financing lease to own.

Which allows us to therefore be very mindful about our ROIC.

And really the Capex is just to finish the conversion of our Toronto data Center.

And our.

Voting datacenter and those to facilitate the growth of 6000 Gpus. Moreover, the cap the Colo partnership with Bell, It's Colo and we're getting a very attractive rate doesn't require any significant capex to fund the growth to bring online to 6000 Gpus does.

Aydin Kilic: It doesn't require any significant CapEx. To fund the growth to bring online the 6,000 GPUs does not require any significant CapEx beyond what I believe we can fund from our current balance sheet. That's what's really exciting. The conversion of New Brunswick to HPC would be a more capital-intensive project, but stay tuned for updates on that. Next slide. On the Bitcoin mining side of business, very proud to announce we're mining approximately 10 Bitcoin per day, even with difficulty at 152 trillion. Currently operating a footprint of 440 MW of green energy. We have a proven track record of scaling now, as we've demonstrated industry how quickly we've brought on this capacity.

And not require any significant capex beyond what I believe we can fund from our current balance sheet.

And that's what's really exciting.

Conversion of New Brunswick too.

<unk> would be a more.

Capital intensive project, but stay tuned for updates on that.

Next slide.

So on the bitcoin mining side of business very proud to announce for mining approximately 10 big win per day, even with difficulty of 152 trillion currently operating footprint of 440 megawatts of clean energy.

We have a proven track record of scaling now as we've demonstrated industry. How quickly we've brought on this capacity again maintained.

Aydin Kilic: We've maintained not only best-in-class uptime and efficiency in the sector, but lowest G&A per Bitcoin mined, which you would expect because we've done this with a very lean team as we've quadrupled our revenue this year. We've done so by adding a small number of additional key hires. Of course, our efforts in Paraguay are led by Gabriel Lamas and Carlos Torres, who have both done an absolutely phenomenal job. We're extremely proud of our Paraguayan team, I'm gonna be flying down there in a couple of days for my quarterly site visit. I always like to visit every data center, walk the fields, walk the hot aisles, walk the cold aisles. Just like to feel the energy. Of course, we do this all with disciplined capital allocation, which we prioritize for ROIC.

Not only.

Best in class uptime and efficiency in the sector, but lowest G&A per <unk>, which you would expect because we've done this with a very lean team as we could you pulled our revenue this year, we've done so by adding.

Small number of additional key hires of course, our efforts in Paraguay are led by Gabrielle <unk> and Carlos Torres, who have both been an absolutely phenomenal job, we're extremely proud of our Paraguay and team and I'm going to be fine down there.

Couple of days from my quarterly.

Does it I always like to visit every data center work the fields.

The hot I'll walk the cold aisle, just like the feel the energy and of course, we do this all with disciplined capital allocation, which we prioritize ROI seen we're going to double click on that later in the presentation slides.

Aydin Kilic: We're gonna double-click on that later in this presentation. Next slide. Thanksgiving came early. We did target that we would hit the 25 exahash and complete the 300 megawatts by US Thanksgiving. We hit it a couple days ago, which was really exciting. We put out a press release around 11 November. Thanksgiving came early, so that's exciting. You know, with 10 Bitcoin mined per day approximately and 25 exahash installed ahead of schedule, I think we've really demonstrated to the market that we have expertise. I think for the longest time when the market was watching HIVE, why aren't they scaling? Because we wanted to scale when it was accretive. By the way, finding green energy obviously is more challenging than if you just look for any type of energy.

So Thanksgiving came early we did target that we would hit the 25 back to hash and complete the 300 megawatts by U S Thanksgiving and we hit it.

A couple of days ago, which was really exciting we put out a press release.

Around November 11th and so Thanksgiving came early.

That's exciting and.

And bitcoin mine per day, approximately and twenty-five ex ash installed ahead of schedule I think we've really demonstrating to the market that we have expertise and I think for the longest time in the market with watching high why aren't they scaling because we wanted to scale when it was accretive and by the way finding green energy, obviously, it's more challenging.

And then if you just look for any type of energy so.

Aydin Kilic: Very happy that the team delivered. Everyone has done a phenomenal job. Shout out to Luke Rossy, our COO, and Bill Gray, our CTO as well. The whole team, Darcy, Gabe, everybody's just done a phenomenal job. Next slide, please. This is just a scenario analysis that shows you know, we've seen Bitcoin correct to just under $100,000. Of course, with Bitcoin at different incremental prices, you could see that our current annualized mining margin is about $200 million with Bitcoin at $100,000. That could easily get to $300 million with Bitcoin at $125,000. At $150,000, almost $400 million of annualized mining margin after electrical costs. This is not revenue. This is mining margin after electrical costs.

Very happy that the team delivered everyone has done a phenomenal job shut out to Luke Rossi, our CFO and Bill <unk>, our CTO as well so.

The whole team Darcy gave everybody has just done a phenomenal job.

Next slide please.

Yeah.

So this is just a scenario analysis that shows you we seem to acquaint correct to just under 100, K, but of course with it.

Quite a different incremental prices you could see that our current annualized mining margin. It's about $200 million has been appointed 100000, but that could easily get to 300 and 398 point at a 125000.

Yeah.

At 150000, almost $400 million of annualized.

Annualized mining margin after electrical costs. This is not revenue. This is mining margin after electrical cost so two to $300 million to $400 million.

Aydin Kilic: Two to three hundred to four hundred million is, as measured against Bitcoin price, really at $100,000, $125,000 or $150,000. A lot of upside in the Bitcoin mining business, of course. Just a quick note on that. When we look at some of the hyperscale colo deals that have been done, Cipher announced a deal with AWS, $102 a kilowatt. You can actually dollar denominate that per kilowatt hour. We're talking about $0.14 a kilowatt hour. With Bitcoin at about $43 hash price, Bitcoin was mostly at $102,000 this week. You know, that's about $0.12 a kilowatt hour with our S21 plus hydros. You're actually not that far off on a dollar per kilowatt hour basis compared to hyperscale colo.

Is is measured against a quaint price really at 100, 125 or 150000, so a lot of upside in the bitcoin mining business of course, and so just a quick note on that when we look at some of the Hyperscale Colo deals that have been done say for announced a deal with AWS $102, a kilowatt Hershey dollar denominate that.

<unk> per kilowatt hour works out to about 14 cents per kilowatt hour. So.

With big cleanup at about $43 cash price decline was mostly at a 102000 this week.

That's about 12 kilowatt hour with our F 'twenty one.

Hydro's since you're actually not that far off on a dollar per kilowatt hour basis compared to a hyperscale nickel of course, what institutions like is the long term stability of fixed price for 12 or 15 years, you can underwrite put a multiple on it and we're very much aware of that.

Aydin Kilic: Of course, what institutions like is the long-term stability, a fixed price for 12 or 15 years you can underwrite, put a multiple on, and we're very much aware of that. I think the Morgan Stanley report on HPC did a good job spelling out that strategy. What you have in Bitcoin mining is upside, because when hash price was $55, the mining business was actually doing $0.15 a kilowatt hour. Even more top line than the Cipher hyperscale colo deal. What's interesting is that, of course, our bottom line, our operating cost is about $0.05. You've got a much higher margin business, and that's why we're able to target 1 to 1.5 year ROI in the Bitcoin mining business.

Think the Morgan Stanley report on HBC did a good job spelling out that strategy, but we havent bitcoin mining is upside because when half price was $55.

The mining business was actually doing <unk>.

<unk> 15 cents a kilowatt hour season more topline then thanks.

Hyperscale, a colo deal, but what's interesting is that of course, our bottom line, our operating cost us about a nickel so you've got a much higher margin business and that's why we're able to target one to one and a half year ROI and the bitcoin mining business, whereas your ROI when youre doing the Hyperscale niccolo, if you're spending $8 million to $10 million per megawatt to build a tier three data center.

Aydin Kilic: Whereas your ROI when you're doing a hyperscale colo, if you're spending $8 to 10 million per megawatt to build a tier 3 data center, well, you're looking at roughly a 1 year ROI. We do both. We're targeting the HPC business with the AI cloud that's about a 2.5 year ROI of the GPUs. We, we're very much aware that institutions like the long stable cash flows hyperscale colo, and that's why we're very pleased to bring to market the New Brunswick opportunity and put that in the 2026 pipeline. Let's go to the next slide. Just a high level for all the research analysts out there, where the hash rate is and how much power is online.

When youre looking at a roughly eight year ROI and so but we do both we are targeting the HBC business with the AI cloud that's about a two and a half year ROI. The Gpus and we're very much aware that institutions like the long stable cash flows hyper scale Colo and Thats why we were very pleased to bring to market.

The new Brunswick opportunity.

And put that in the 2026 pipeline, let's go to the next slide.

So just a high level for all of the research analysts out there where.

Where the trade is and how much powers online and of course, the phase III and you assume that the additional 100 megawatts actually gets us to a global.

Aydin Kilic: Of course, the phase 3 in Yguazú, the additional 100 MW actually gets us to a global capacity of 540 MW. Of course, 440 MW today is operating hydropower. Might I add, again, I just want to reinforce we are not committed or we do not have an immediate capital need to bring on 10 exahash of ASICs. We will do so if economics and ROI satisfies our principles of realizing a 1 to 1.5 year ROI after cost for the ASICs. There are other ways to monetize that extra 100 MW of capacity as well, by the way. Stay tuned for that. We've got a lot of exciting things for 2026.

Capacity of 540 megawatts of course 440 megawatts today's operating hydropower.

And might I add again I just want to reinforce we are not committed or do we do not have an immediate capital need to bring on 10 X how should asics, we will do so if economics and ROI satisfies our principles of realizing I wonder what the half year ROIC after cost for the Asics.

And there are other ways to monetize that extra <unk>.

Lots of capacity as well by the way so stay tuned for that.

Got a lot of exciting things for 2026, we're putting all the fundamental pillars in place for a year of growth and to <unk>.

Aydin Kilic: We're putting all the fundamental pillars in place for a year of growth and to manage both upside and downside. That's how we've lasted for coming on 8 years now, HIVE being the first public crypto miner with the longest standing C-suite, might I add, between Frank, Darcy, and myself. Let's hop to the next slide. By the numbers, for those that would like a snapshot of what 35 exahash would look like on an ARR basis. Well, as we mentioned, currently we're $400 million ARR, doing about 50% margin after electrical cost, $200 million of margin after electrical cost on the current Bitcoin mining business for 25 exahash, about 17.5 joules per terahash efficiency.

Managed.

Upside and downside and that's how we've lasted for a coming on eight years now I think the first public crypto miners, but the longstanding C suite might I add.

Between Frank Darcy and myself.

Talk to you next time.

So.

By the numbers for those that would like.

A snapshot of what 35% of cash would look like on an <unk> basis as well as we mentioned currently we're $400 million are being about 50% margin after electrical cost $200 million of.

Margin after electrical costs on the current bitcoin mining business for 25, that's about.

About $17 five yields procure ash efficiency.

Aydin Kilic: If we were to scale that to 35 exahash with latest generation ASICs throughout 2026, and by the way, we do believe that ASIC prices for the new generation here will come down and be more attractive. We would evaluate those during the spring to summer of 2026 as the 100 megawatts would be completed around August to September 2026. So we're in no rush. With that 35 exahash, our current mining economics, this is modeled on a $42 hash price, brings you to $550 million ARR. Because you've got more efficient ASICs online, you're about 60% margins. That's $320 million of cash flow, based on current mining economics.

We were just scaled up to 35 exit harsh with latest generation Asics throughout 2026.

And by the way, we do believe that <unk> prices for the new generation here will come down and be more attractive and so we would evaluate those during this during the spring to summer of 2000 2600 megawatts will be completed around.

September 2026, so we're in no rush, but with that 35 exit cash our current mine economics.

This is not about $42 cash base briefly to $550 million <unk>, but because you've got more efficient asics online.

We're about 60% margins, that's $320 million of cash flow.

Just on current mine economics, so it's just a snapshot for the analysts and all the enthusiast investors out there that would like to build their excel models next slide please.

Aydin Kilic: Just a snapshot for the analysts and all the enthusiast investors out there that like to build their Excel models. Next slide, please. We talk a lot about the ROI principle and just, you know, as such an avid math and physics student in school, sometimes you come across, you know, you're deep in the chapter in your physics textbook, and there's just this one diagram that just puts the concept visually, and then it crystallizes and you have mastery of it. Of course, all the equations that backstop it. This is especially for institutional investors that are trying to wrap their head around and they think that it's sort of this elusive or arcane business. It's actually not. Bitcoin mining is the intersect of computer science and electrical engineering, is really what is.

So we talk a lot about the ROI principal and just such an avid math and physics students in.

In school, sometimes you come across your deepen that chapter and your physics textbook and Theres. Just this one diagram that just puts the concept initially and then it crystallizes you'd have mastery of it and of course all of that all the equations that backstop. It but this is especially for institutional investors that are trying to wrap their head around.

And they think that it's sort of this elusive or arcane business, it's actually not bitcoin mining as the intersect of computer science and electrical engineering is really what is for building high voltage high energy infrastructure.

Aydin Kilic: We're building high voltage, high energy infrastructure. The revenue, the top line is really, you can almost think of it as combinatorial mathematics. You've got number of hashes per block is difficulty times two to the power of 32. Now, Bitcoin price fluctuates, difficulty fluctuates. Sometimes difficulty goes down. We just had difficulty drop by almost 5%. We're under 56, now we're at 152. What does that mean? Well, your top line here, as you see, is like a squiggly line. It goes up and down, but with time, and we're talking a 4-year horizon, it does trend down as more hash price comes online. During the life cycle of an ASIC, we always aspire to get 1 year ROI after electrical cost. You could see that is in the blue area of the chart.

<unk>.

The revenue the top line is really you can almost think of it as common material mathematics.

Got number of cashes for block has difficulty times choose a power 32 bit quaint price fluctuate difficulty fluctuate sometimes difficult. It goes down we just had difficulty dropped by almost 5%. We're at 150 16 hour at one five to <unk>.

So what does that mean, while your top line here as you see as like a squiggly line it goes up and down but with time and we're talking of four year horizon. It does trend down as more harsh price comes online, but during the lifecycle of an ethic.

We always aspire to get one year ROI after electrical costs, you could see that is in.

The blue area of Detroit, and once you've realized an ROI on your ASIC then your free cash flowing and so that's why for the balance of that three to four years.

Aydin Kilic: Once you've realized an ROI on your ASIC, then you're free cash flowing. That's why for the balance of that 3 to 4 years, you're free cash flowing, and this is how we mine Bitcoin, and this is how you make money in this business. You have to think this way, and you also have to model this way. Of course, you have to invest and operate this way. Now, the three bullet points here is, what are the two levers on this graph? Well, there's one vertical axis, and that's your $ per terahash ASIC acquisition price. The more you pay for your ASICs on a $ per terahash basis. By the way, this is on a snapshot assuming a certain efficiency of joules per terahash, right? Given a model of ASIC, so a new ASIC comes out, you go, Great.

Casually and this is how we mine bitcoin and this is how you make money in this business you have to think this way and you also have to model. This way and of course, you have to invest and operate this way now the three bullet points here is what are the two levers on this graph, there's one vertical axis.

And Thats your dollar per tier harsh basic acquisition price. The more you pay for your Asics on a dollar per <unk> basis and by the way. This is on a snapshot assuming certain efficiency <unk> right. So given our model 86, so a new as it comes out you build great. This is what it's ROI profile is going to look like depending on what you pay for.

Aydin Kilic: This is what its ROI profile is gonna look like. Depending on what you pay for that ASIC, the more you pay, the longer it's gonna take you to hit that ROI. We know that there's diminishing returns. This is modeled, it's all part of the Bitcoin white paper. As more hash rate comes online, it makes the network more secure. Bitcoin is the world's decentralized energy-backed currency, it's not a bad thing that you have to upgrade and that more energy comes online. It makes the network more secure. As Bitcoin is a market cap of over $2 trillion, you have over 30 gigawatts of compute backing that, it's the increasing efficiency of the ASICs that helps $ denominated to $ per kilowatt hours. Okay? On the horizon, on the time horizon, you see the ±$ per kilowatt hour.

That E cig.

The more you pay the longer it's going to take you to hit that ROI.

And we know that there is diminishing returns. This is model, it's all part of the.

<unk> White paper is more hatchery comes online it makes the network more secure bitcoin is the world's decentralized energy back currency. So it's not a bad thing that you have to upgrade and that more energy comes online. It makes the network more secure as big point has a market cap of over two trillion dollars you have over 30 gigawatts of compute backing that and it's the <unk>.

Increasing efficiency the Asics that helps dollar denominated dollar per kilowatt hours.

Okay. So.

On the horizon on the time Horizon, you see the plus minus dollar per kilowatt hour you see the lower your dollar per kilowatt hour operating costs. The longer you can run that seen ASIC for GC. How we indicated are illustrated that that additional tailwind to free cash flow, while the lower <unk>.

Aydin Kilic: You see the lower your dollar per kilowatt hour operating cost, the longer you can run that same ASIC for. You see how we've indicated or illustrated that additional tail end of free cash flow? Well, the lower your power price, the longer you're gonna be able to realize free cash flow. Of course, the cheaper your dollar per terahash purchase price, the cheaper that number is, the shorter your ROI duration is, and of course, that means you have, all other things being equal, more time to free cash flow. This is so important, and it's been moreover, as I said earlier in the presentation, we run our ASICs for their entire economic life cycle.

Power price the longer youre going to be able to realize free cash flow and of course, the cheaper your dollar per tear ash purchase price the cheaper that number is the.

Sure to your ROI duration is and of course that means you have all other things being equal more time to free cash flow and this is so important and it's been Moreover, as I said early in the presentation, we run our <unk> for their entire economic lifecycle, and what that might mean in the third and fourth year, even the second year.

Aydin Kilic: What that might mean in the third and fourth year, even the second year, on a margin basis, if you're looking at your MD&A, say, Oh, what was your gross mining margin this quarter? Well, if you're running older ASICs that are in pure free cash flow scenario, the margin apparently may not seem that great, but they're free cash flowing. They've paid themself off. You wanna run those ASICs until the very end of the life cycle before you upgrade them. This is an important principle. I thought this visual would very much help. There you go, Bitcoin mining summarized. Let's go to the next slide. By the numbers, this is what it translates to. We lead the sector in cash return on invested capital. Quarter in, quarter out, here it is.

On a margin basis, if youre looking at your MD&A. So what was your gross mining margin this quarter well if youre running older assets that are in pure free cash flow scenario.

The margin apparently may not seem that great.

But they are free cash going to pay them. So far since you want to run those assets until the very end of the lifecycle before you upgrade them and this is an important principle I thought this visual would very much help. So there you go big.

Bitcoin mining summarized let's go to the next slide.

Yeah.

By the numbers this is what it translates to.

Lead the sector in cash return on invested capital quarter in quarter out here. It is we've realized 18% annualized ROIC this quarter of four 5% for the quarter. So I love explaining how the business works, we love to share expertise with like love to be because of truth in the industry, where there's a lot of hubris and again.

Aydin Kilic: We've realized 18% annualized ROIC this quarter, 4.5% for the quarter. I love explaining how the business works. We love to share expertise. We love to be beacons of truth in the industry where there's a lot of hubris. Again, HIVE's been standing strong as the longest crypto miner in the sector for the publicly traded peers, two Bitcoin halvings, and an Ethereum merge. No one else has navigated all three of those events. In addition to that, we built our own ASIC miner with Intel, so we understand the industry at its very depths and also at a very macro level, having strategic oversight with Frank as a money manager, our executive chairman, myself as an electrical engineer.

And standing strong has the longest crypto miner in the sector for the publicly traded peers to bitcoin, having any theory emerge no. One else has navigated all three of those events. In addition to that we built around AC minor with Intel. So we understand the industry had its very depths and also at a very macro level having.

Strategic oversight.

Shrank as a money manager.

<unk> chairman and myself as an electrical engineer, we're both numbers guys and we like to look at the prism of.

Aydin Kilic: We're both numbers guys, and we like to look at the prism of Bitcoin mining and data centers through many different angles to understand what does it look like when you evaluate it? Ultimately, our bottom line though is how do we get the best ROIC? Here it is. Next slide. We also have the lowest G&A in the industry. We have a high-performance work culture. Our executive team, we were in Chicago for a Jim Collins seminar. Really, how do we live and breathe being a good to great business? Again, high-performance culture. We are in 9 time zones, 5 languages. Again, we talk about high-performance culture. We are a high-performance culture, bringing 300 megawatts online in 6 months with an exahash per week. I think we might have broken an industry record.

Quint mining in data centers, so many different angles to understand.

What does it look like when you evaluated and ultimately our bottom line, though.

Is how do we get the best ROIC here. It is next slide.

We also have the lowest G&A in the industry, we have a high performance culture and executive team were in Chicago for a Jim Collins seminar really how do we live and breathe in a good to great business and so again high performance culture.

We earned nine time zones, five languages and again, we talked about a high performance culture.

Our high performance culture, bringing 300 megawatts online in six months most of the hash per week I think we might have broken an industry record and so you can clearly see here under 10% of our total revenue is reflected as G&A and <unk> I mean, a lot of our peers are really in that 20% to 30% range is real.

Aydin Kilic: You can clearly see here under 10% of our total revenue is reflected as G&A. I mean, a lot of our peers are really in the 20% to 30% range, is really what it tells you. We're able to scale. We have a dual engine strategy. This is G&A for the whole corporation, so we're talking all our operating subsidiaries, our global business, HPC, and Bitcoin mining. Incredibly proud of this team. We work long hours though, so if it's hard to get a call with us, we'll make time for you, but you know, priorities. Next slide. The other amazing thing is the value proposition. Our relative valuation, I believe, signals a very strong opportunity.

What it tells you we're able to scale we have a dual engine strategy is at Genie for the whole Corporation. So we're talking all of our operating subsidiaries of global business HBC and bitcoin mining so incredibly proud of the team we worked long hours. So so if it's hard to get a call with us.

We'll make time for you, but I know.

Priorities next next slide.

Yeah.

So.

The other amazing thing is the value proposition, so our relative valuation.

It was a very strong opportunity on a relative basis. When you look at our peers on EBITDAX cash basis, we should be at about a $4 billion enterprise value now of course people will say oh, yeah, but a lot of your peers here have an <unk> strategy yes.

Aydin Kilic: On a relative basis, where you look at our peers on an EV to X hash basis, we should be at about a $4 billion enterprise value. Of course, people would say, "Oh yeah, but a lot of your peers here have an AI or HPC strategy." Yes, as do we, I think we have one of the best AI and HPC strategies with a lot of upside to be realized in 2026 as we bring online those 6,000 Blackwells and pursue hyperscaler colo through New Brunswick as well. I think that we also have best uptime in the sector, lowest G&A per Bitcoin mined, best ROIC, and right now, the best value. I think, you know, for the smart money, it's an opportune time.

We have one of the best AI and HBC strategies, but a lot of upside to be realized in 2026, as we bring them online those 6000, Blackwell and pursue hyperscale, a colo through new Brunswick as well. So I think that we also have.

Uptime in the sector low G&A per bit quaint my investment ROIC and right now the best value. So I think.

For the smart money it's.

Aydin Kilic: We've seen HIVE really rally to almost a $1.7 billion US market cap. There's been a bit of a market-wide correction recently, so I think it's an opportune time as the market consolidates. Next slide. Now, a little bit more about what we do. Yes, we are very high performance, and Frank and I were boots on the ground. We, you know, go to all the conferences, but we also invest in the communities. We had a program where we wanted to refresh 18 schools in the rural regions by our data centers. Frank and I were actually visiting in Valenzuela. This is a primary school, elementary school, and, you know, the kids were so happy.

It's an opportune time, we have seen a high really rallied to almost a $1 7 billion U S market count there has been a bit of a market wide correction recently, so I think it's an opportune time as the market consolidates on next slide.

Now a little bit more about what we do.

We are very high performance and Frank and I are boots on the ground.

<unk>.

You can go to all the conferences, but we also invest in the communities. So we had a program where we wanted to.

Refresh 18 schools in the rural regions by our Datacenters until Frank and I were actually visiting and balance whaler is.

Primary School Elementary school and the kids were so happy and so the pictures on the left there before and.

Aydin Kilic: The pictures on the left are before, and you can see the beautiful hand-painted map of Paraguay, but you see the walls are sort of a bit weathered and chipped. What we did was we refreshed the schools. You see brand-new paint and air conditioners. You see all the air conditioners after bolted on the walls for the classrooms, we installed a playground as well for the kids. We're doing upgrades to 18 schools throughout the community. Just about how we like to invest in communities. You know, we sponsor the hockey team in Boden, but we do what the community wants and needs and of course, in this scenario in rural Paraguay, it's the schools. Next slide.

You can see the beautiful.

And painted map of Paraguay, but you see the walls that sort of weathered and chip and so.

So what we did was we refresh the scores you see brand new paint and air Conditioners, you see all the air conditioners after.

Bolted on the walls for the classrooms and then.

We installed the playground as well for the Kid and we're doing it.

<unk> two <unk> schools throughout the community. So just about how we like to invest in community as you know we sponsor the hockey team and boat in but we do what the community wants and needs.

And of course in this scenario in rural Paraguay, It's the schools.

Next slide.

Aydin Kilic: Also embracing tradition, we were invited to the presidential palace for YPO event. This is Santiago Peña. He was an incredibly gracious host. We're wearing a traditional, the scarves of sort of traditional Paraguayan dress and it was absolutely phenomenal event. We had our whole executive team down there. Of course, Gabriel Lamas and Frank are pictured here with Peña. Luke Rossy here, COO, and myself, and Jaime Perez, our Latin American correspondent. You know, investing in the communities, the schools, in the neighborhoods, but also building strong ties with the leaders of the country. Next slide, please. Paraguay in turn is also building ties globally and Peña has, I think, done a phenomenal job having a great relationship with Trump.

Also embracing tradition, we were invited to the presidential Palace for White children. This is Santiago opinion, obviously incredibly gracious host and so we're wearing traditional.

The scars to sort of traditional Paraguay and dress and it was absolutely phenomenal event, we had our whole executive team down there.

Of course <unk> Frank.

Here with 10 year, Lube, crosshairs, COO and myself and Jaime Perez, our Latin American correspondent so.

Investing in the communities at the schools in the neighborhoods, but also building strong ties.

With the.

The leaders of the country next slide please.

Now Paraguay insurance, that's also building ties globally in 10 years, I think done a phenomenal job.

Having a great relationship with Trump all smiles here with a big thumbs up and Moreover.

Aydin Kilic: All smiles here with the big thumbs up. Moreover, Frank and I had a strategy session with Peña in September during that YPO summit. Of course, shortly after, we were granted an additional 100 megawatts, which we'd announced to the market. It's about having relationships strategically and being aligned with the government and utility companies and just doing good business. We're very bullish on the future of Paraguay, not only for Bitcoin mining, but data centers broadly. Let's go to the next slide. Directionally, Latin America's emerging with HPC on the horizon. Was in the headlines in October. OpenAI and an Argentine energy company are looking at a Stargate for Latin America. Of course, Argentina is adjacent to Paraguay.

Frank and I had a strategy session with tenure in September.

During that IPL summit and of course.

Shortly after.

We were granted an additional 100 megawatts, which we announced to the market. So it's about having relationships.

Strategically and being aligned.

With the government and utility companies and just doing good business and so we were very bullish on the future Paraguay not only for bitcoin mining, but data centers broadly, let's go to the next slide.

Directionally Latin America's emerging with HBC on the horizon.

And the headlines in October open AI, and Argentinian energy company or looking at.

<unk> for Latin America. So of course, Argentina is adjacent to Paraguay, Argentina buys power from the typhoon damages.

Aydin Kilic: Argentina buys power from the Itaipu Dam, which is the largest hydro dam by production in the world. We believe that there will be a bright potential future for HPC in Latin America. Let's go to the next slide, which is Darcy Daubaras, the longest standing CFO in the Bitcoin mining industry, and he's gonna give you the overview of the financial results. Not only in the Bitcoin mining industry, of course, now we are a HPC business with a thriving AI cloud growth strategy as well as hyperscaler colo for 2026. Darcy, over to you.

<unk> largest hydro down by production in the world.

And.

So we believe that.

There will be a potential future for HBC in Latin America.

Let's go to the next slide.

Which is darcy to various the longest standing CFO in the.

Bitcoin mining industry.

He's going to give you the overview of the financial results and not only the big point mining industry of course now we are.

HBC business with the thriving AI cloud growth strategy as well as Hyperscale and coal for 2026 Darcy over to you. Thank you good morning.

Darcy Daubaras: Thank you. Good morning, everyone, and thank you for joining us today. I will be walking through the Q2 results for the 3 and 6-month period ended 30 September 2025. We are providing certain non-GAAP measures in our presentation today. The company believes that these measures, while not a substitute for measures of performance prepared in accordance with US GAAP, provide investors an improved ability to evaluate the underlying performance of HIVE. These measures do not have any standardized meaning prescribed under US GAAP and therefore may not be comparable to other issuers. Further details are found in the management discussion and analysis for the 3 and 6-month periods ended 30 September 2025. Moving on to the first slide.

Everyone.

And thank you for joining us today.

I will be walking through.

The Q2 results for the three and six months period ended September 32025.

We are providing certain non-GAAP measures in our presentation today.

Company believes that these measures while modest substitute for measures of performance prepared in accordance with U S. GAAP.

Provide investors an improved ability to evaluate the underlying performance of hive.

Do not have any standardized meaning prescribed under U S. GAAP and therefore may not be comparable to other issuers.

Further details are found in the management discussion and analysis for the three and six months periods.

Ended September 32025.

Moving on to the first slide.

Darcy Daubaras: HIVE ended the 30 September 2025 quarter with 236.8 million common shares, 2.7 million options, 11.4 million RSUs, and 5.2 million warrants outstanding. On the next slide, let's start with the key highlights for the quarter. For Q2, we generated $87.3 million in revenue, driven by digital currency mining and high-performance computing services, and delivered $31.5 million in adjusted EBITDA. Production for the quarter was 719 Bitcoin equivalent, which is up from 406 in the prior period, supported by stable operations, strong uptime across our sites, and the execution of our Paraguayan expansion. These numbers reflect disciplined cost management, a focus on efficiency, and the benefit of our diverse global footprint.

Yeah.

Ended September 32025 quarter, $236 8 million common shares $2 7 million auctions.

One 4 million Rs use and $5 2 million warrants outstanding.

On the next slide that start with the key highlights for the quarter.

For Q2, we generated $87 3 million in revenue driven by digital currency mining and high performance computing services and delivered $31 5 million and adjusted EBITDA.

Production for the quarter was 719 between equivalent which is up from 406 in the prior period supported by stable operations strong uptime across our sites.

The execution of our Paraguayan expansion.

These numbers reflect disciplined cost management, our focus on efficiency and the benefit of our diverse global footprint.

Darcy Daubaras: Let's now on the next slide, take a look at how this operational performance translates into our balance sheet strength. We do take great pride in maintaining a healthy balance sheet. As of 30 September, we held $22.6 million in cash, $24.4 million in digital securities, and $17 million in receivables and prepaids. That totals $136.7 million in digital assets against $55.5 million in current liabilities. We also maintain $25.7 million in strategic investments. This strong liquidity has allowed us to manage market cycles, invest in expansion opportunities, specifically our HPC and Paraguayan opportunities, and avoiding over-leveraging the company. With that context, let's look at how our earning metrics have evolved, starting on the next slide. Shifting our focus to our gross operating margin on a year-over-year basis.

Let's now on the next slide take a look at how this operational performance translates into our balance sheet strength.

We do.

Great Pride and maintaining a healthy balance sheet as of September 30, we held $22 6 million in cash and $24 4 million and digital securities.

And $17 million in receivables and prepaid.

It was $136 7 million and digital assets against $55 5 million in current liabilities.

Also maintain $25 7 million in strategic investments.

This strong liquidity has allowed us to manage market cycles.

Best in expansion opportunities, specifically, our HBC and Paraguayan.

<unk> and avoiding over leveraging the company.

With that context, let's look at how our earning metrics have evolved starting on the next slide.

Shifting our focus to our gross operating margin on a year over year basis, comparing the results of this quarter to Q2 last year.

Darcy Daubaras: Comparing the results of this quarter to Q2 last year, our gross operating margin, which is calculated as total revenues minus direct operating and maintenance costs and high-performance computing service fees, increased to $42.4 million in the most recent quarter, compared to $400,000 in Q2 of last year. In this most recently completed quarter, we are reporting a basic loss of $0.07 per share compared to a net income of $0, basically flat per share reported for Q2 last year. Taking a look at our revenue increases year-over-year on the next slide. We generated total revenue in the second quarter of fiscal 2026 of $87.3 million versus $22.6 million in the previous year's second quarter.

Gross operating margin, which is calculated as total revenues minus direct operating and maintenance costs and high performance computing service fees increased $42 4 million in the most recent quarter.

Third to 400000 in Q2 of last year.

And this most recently completed quarter.

We are reporting a basic loss of <unk> <unk> per share compared to a net income of zero basically flat per share reported for Q2 last year.

Taking a look at our revenue increases year over year on the next slide.

We generated total revenue in the second quarter of fiscal 2026 of $87 3 million versus $22 6 million in the previous year's second quarter. The.

Darcy Daubaras: The revenues compared to the same quarter in fiscal 2025 can primarily be attributed to the expanded hash rate that we are experiencing from the Paraguay expansion. As mentioned previously, our gross mining margin, which equates to our revenues minus direct operating and maintenance costs and high-performance computing service fees, increased to $42.4 million or 49% margin in the most recent quarter, compared to $400,000 or only 2% margin in the prior year comparable quarter. As we've said, that's a direct result of optimizing our mining fleet, the massive Paraguayan expansion that we've experienced since the beginning of calendar 2025, and improving our overall operational efficiency. Now, if we zoom in to just the last two quarters, you'll see impressive improvements on the next slide.

The revenues compared to the same quarter in fiscal 2025 can primarily be attributed to the expanded how should we do we are experiencing from the Paraguay expansion.

As mentioned previously our gross mining margin, which equates where revenues minus direct operating and maintenance costs and high performance computing service fees increased to $42 4 million or 49% margin in the most recent quarter compared to 400000, roughly 2% margin.

The prior year comparable quarter.

And as we've said that's a direct result of optimizing our mining fleet.

Bass of Paraguay expansion that we've experienced since the beginning of <unk>.

Calendar 2025, and improving our overall operational efficiency.

Zoom into just in the last two quarters Youll see impressive improvements on the next slide.

Darcy Daubaras: Comparing our current fiscal Q2 to the previous Q1, we generated a revenue in this current quarter of fiscal 2026 of $87.3 million versus $45.6 million in the previous quarter. The increase in revenues versus the prior quarter was impacted by increased exahash capacity with the Paraguay expansion, an increase in the price of Bitcoin, resulting in higher revenue from digital currency mining, our continued focus on our high-performance computing revenues. Our gross operating margin increased to $42.4 million or 49% operating margin in the most recent quarter, compared to $15.8 million or 35% margin in the prior quarter's comparative. The increase in gross operating margin versus the prior quarter was greatly due to the comparative BTC pricing and resulting revenues and the continued improvement in our fleet efficiency.

Comparing our current fiscal Q2 quarter to the previous Q1 quarter, we generated revenue.

Current quarter of fiscal 2026 of $87 3 million versus $45 6 million in the previous quarter.

The increase in revenues versus the prior quarter was impacted by increased extra house capacity with the Paraguay expansion.

The increase in the price of bitcoin, resulting in higher revenue from digital currency mining.

And our continued focus on our high performance computing revenues.

Our gross operating margin increased to $42 4 million or 49% operating margin in the most recent quarter compared to $15 8 million or 35% margin in the prior quarter's comparative.

The increase in gross operating margin versus the prior quarter was greatly due to the comparative BTC pricing and resulting revenues and the continued improvement in our fleet efficiency.

Darcy Daubaras: On the next slide, I'd like to remind our stakeholders that our net income is comprised of our operational earnings or cash flow, plus our investment earnings, which includes realized and unrealized earnings, which often includes non-cash charges. Our adjusted EBITDA in this quarter ended 30 September 2025, was $31.5 million versus adjusted EBITDA of $12 million in the 30 September 2024 period. I will highlight that adjusted EBITDA is a non-GAAP figure. For this completed quarter, we experienced loss of $15.8 million compared to a net income of nil in the previous year comparative. The net loss experienced this quarter was driven by non-cash losses experienced on our strategic investments and changes in the fair value of our derivatives, which is linked to the Bitcoin used as deposits on equipment purchases. On the next slide, the quarter-over-quarter view tells a similar story.

And on the next slide.

I'd like to remind our stakeholders that our net income is comprised of our operational earnings or cash flow plus our investment earnings which includes realized and unrealized earnings which often includes noncash charges.

Our adjusted EBITDA in this quarter ended September 32025 was $31 5 million versus adjusted EBITDA of $12 million in the September 32024 period.

I will highlight that adjusted EBITDA is a non-GAAP figure.

Or just completed quarter, we experienced loss of $15 8 million compared to net income of nil in the previous year comparative.

Net loss experience this quarter was driven by non cash losses experienced on our strategic investments and changes in the fair value of our derivatives, which is linked to the bitcoin users deposits on equipment purchases.

On the next slide the quarter over quarter view tells a similar story.

Darcy Daubaras: Our adjusted EBITDA in the Q2 of fiscal 2026 was a profit of $31.5 million versus adjusted EBITDA of $44.6 million in the previous 2026 Q1 quarter. In the Q2 of fiscal 2026, we experienced net loss of $15.8 million compared to a net income of $35.5 million in the previous Q1 quarter. The Q2 fiscal 2026 was a solid quarter for HIVE. We delivered strong revenue, expanded margins, and maintained a robust balance sheet. Our operational discipline, fleet expansion, and cost control measures continue to position us well to compete in the challenging environment and capture opportunities for growth. As always, I want to thank our loyal stakeholders and encourage them to continue to follow our expansion efforts in both Bitcoin mining and high-performance computing operations. There's exciting things to come. Stay tuned.

Our adjusted EBITDA in the second quarter of fiscal 2026 was a profit of $31 5 million versus adjusted EBITDA of $44 6 million in the previous 2026 Q1 quarter.

In the second quarter of fiscal 2026, we experienced net loss of $15 8 million compared to a net income of $35 5 million in the previous.

Q1 quarter.

The Q2 fiscal 2026 was a solid quarter for hive, we delivered strong revenue expanded margins and maintained a robust balance sheet.

Our operational discipline and fleet expansion and cost control measures continued to position us well to compete in a challenging environment and capture opportunities for growth.

As always I want to thank our logo.

Youll stakeholders and encourage them to continue to follow our expansion efforts in both bitcoin mining and high performance computing operations, there's exciting things to come so stay tuned.

Nathan Fast: Thank you, Darcy. That concludes the presentation for today. We will now begin the question and answer portion of our call. Analysts on the line, if you could please click raise hand when you are ready with your questions. We will begin to choose and ask you to unmute. Our first question comes from the line of Darren Aftahi from Roth. The floor is yours, Darren.

Thank you Darcy that concludes the presentation for today, we will now begin the question and answer portion of our call analysts on the line. If you could please click right hand, when you're ready with your questions. We will begin to choose and ask you to on mute. Our first question comes from the line of Darren <unk> from Roth the floor is yours ma'am.

Darren Aftahi: Yeah. Good morning. Thanks for taking my questions. Congrats on the progress. Two, if I may. Just, can you talk about what the assumed spend on CapEx per megawatt is to either retrofit or greenfield your data centers to tier 3? On the AI cloud strategy, I think Aydin, you talked a little bit about financing and then leasing the GPUs. I guess, do you guys plan to buy these at the end of that cycle? I guess what's the assumption on useful life you're assuming on GPUs? Thanks.

Yeah. Good morning, Thanks for taking it.

My questions and congrats on the progress.

Two if I may just can you talk about.

<unk> assumed.

Spend on <unk>.

Capex per megawatt as to either retrofit or Greenfield your data centers to tier three and then on the AI cloud strategy.

I think I can you talk a little bit about.

Financing and leasing the Gpus I guess do you guys plan to <unk> at the end of that cycle, and then I guess, what's the assumption on useful life, you're assuming on Gpus. Thanks.

Aydin Kilic: Yeah, you bet, Darren. The site in Boden is $25 million to build out to convert, and Toronto's $40 million. We've had those facilities effectively quoted, and we're ready to commence the conversion of those. The price per megawatt's different because each facility has just a, you know, different existing infrastructure. Boden has already designed its GPU facility, that's the one that you've been to actually when we did the site tour last year. Toronto is the facility that we'll that we recently announced the purchase of. Again, that's $25 million and $40 million respectively. That provides, of course, Bell is colo, so there's no significant CapEx.

Yes, you bet Darren so.

The Boden is.

$25 million to build out.

And Toronto 40.

We've had those facilities.

Effectively quoting and we're ready to commence.

The conversion of those so.

Price per megawatt is different because each facility has.

Just.

Different existing infrastructure boat and its already designs GPU.

<unk> and Thats, one that <unk> been to actually when we did the <unk>.

Site tour last year and Toronto.

Yes.

The facility that will that we've recently announced the purchase of Okay, that's 25% and 40 million.

Respectively and then.

<unk> provides and then of course, Dallas Colo, So theres no significant capex that we kept us too.

Aydin Kilic: That collectively gets us to the footprint for 6,000 GPUs. Sorry, what was your second question?

The footprint for 6000 Gpus.

And then.

Sorry, what was your second question.

Darren Aftahi: really just on the, on the cloud strategy.

Really just on the on the cloud.

Aydin Kilic: Oh, the buyout. Yeah, yeah. It's like really a lease to own. The buyout is de minimis. We will effectively have, you know, at the end of the term, for a very nominal amount, ownership of the GPUs.

It's really it's like really a lease to own.

The buyout.

De Minimis, so we will effectively have.

At the end of the term.

For a very nominal.

Amount.

Ownership to the Gpus.

Darren Aftahi: What's the useful life you're assuming on this? I know you might be one of the fewer entities that have-

And what is the useful life youre, assuming I Miss I know you might be one of the fewer entities.

Aydin Kilic: I think broadly what we've seen is that, after 3 years, easily and conservatively, GPUs are worth half of what you bought them for. I think that, you know, you could say a useful life conservatively is also 5 years. I back that up with a couple of data points. As you know, as you've been following this story for a long time, we bought 38,000 Ampere GPUs, A40s, A6000s, A5000s, A4000s. We made that order, we announced it in July 2021. A lot of those GPUs, to the tune of over 4,000, are in our AI Cloud still running. We have 4,300 A-series cards, mostly A40s and A5000s. Here we are 4 years later, and they're still running.

Broadly what we've seen is that.

After three years.

Easily conservatively Gpus are worth half of what you bought them for.

And then I think that.

You could see a useful life concern at least also five years.

That backs that up with a couple of data points as you as you know we've as you've been following the story for a long time.

We bought 38000, <unk> Gpus and <unk>.

<unk> 5000, <unk> 4000.

And we made that order we announced in July of 2021 so.

A lot of those Gpus.

Over 4000 are in our AI cloud still running.

We have 4300 E series cards multimedia <unk> thousands.

And here we are four years later and they are still right. So that's why I put the useful life of five years.

Aydin Kilic: That's why I put the useful life at 5 years. I believe it could be longer. I believe it could be 5, possibly 6, maybe even 7. On the resale, we sold, and this is sort of in our past disclosure in the MD&A, we sold the balance of that fleet of Ampere series GPUs, about 34,000 of them, at approximately 90% of their original face value. The sale of those GPUs was last year over kind of a course of a year. That puts us about 3 years into their economic life cycle, and we were selling them for 90% of what we bought them for.

Believe it could be longer I believe it to be.

<unk> five <unk>.

Possibly six and seven.

And then on the resell we sold.

Sure.

In our past disclosures.

We sold.

The balance of that cleanup ampere threes TPU about 34000 of them.

90% of their original face value in.

And those those silver Cpus.

Yes.

Last year over a kind of a course of the year and so that puts us about three years.

Economic lifecycle, and we are celebrating 90% of what we bought them for.

Aydin Kilic: Again, we're very strategic about ROIC, and we realized that there was a great opportunity there to get such a high value for them. We took those proceeds, and then we expanded instead and got more Hopper H100 and H200 GPUs. That gets us to where we are today. Moreover, to answer your question, we were able to sell at 90% of face value after 3 years. Of course, that was driven by global demand. When I told you 50%, I'm trying to give you very conservative, realizable figures. To wrap it up, 50% after 3 years, and I think a useful economic life cycle of 5+ years. Look, that 3 years, it could be higher. Maybe their GPUs are worth 70% more.

So again, we're very strategic about ROIC and we realized that there was a great opportunity.

<unk> air ticket, such a high value for them.

We took those proceeds and then we expanded <unk> got more hopper each one of them.

And strategy teams.

And that gets to where we are today, but Moreover to answer your question, we were able to sell 90% of face value after three years.

Of course, it was that was driven by global demand and so when I told you, 50% I'm trying to give you a very.

Conservative realizable.

I figure so to wrap it up.

50% after three years and I think easily talk lifecycle of last.

Last years and looked at three years it could be higher.

Maybe they're <unk> with 70% more but.

Aydin Kilic: From, I mean, in our case, we've seen 90%, but let's just say 50% to be conservative after 3 years.

I mean in our case, we've seen 90%, but let's just say 50% to be conservative after three years.

Darren Aftahi: Thanks, Aydin Kilic. Appreciate the insight.

Thanks, Simon I appreciate the insight.

Aydin Kilic: You bet.

You bet.

Nathan Fast: Thanks for the question, Darren. Next question coming from the line of Mike Grondahl from Northland. Mike, the floor is yours.

Thanks for the question Darrin next question coming from the line of Mike Grondahl from Northland, Mike floor is yours.

Mike Grondahl: Hey, thanks guys. My question, on those 6,000 GPUs that you're putting out the next couple of quarters, how many of those are contracted today? Meaning, what kind of visibility do you have on those? Could you talk a little bit about the average term? At one point, I think I heard 3 months to 12 months, another point, 2 years, just kind of the demand you're seeing.

Hey, Thanks, guys.

My question on those 6000 Gpus.

That youre, putting out the next couple of quarters, how many of those are contracted today.

What kind of visibility do you have on those.

And then could you talk a little bit about the average term.

At one point I think I heard three months to 12 months and then another two years.

And just kind of the demand youre seeing.

Aydin Kilic: Mike. You're correct in that the existing GPUs that we have online are in the 3 to 12-month range. I actually just wanna refer you to a press. Sorry, I'm in Paraguay right now. Someone's knocking on the door. We also put out a press release this morning, concurrent with our Q2 earnings, that actually announced the order of the first cluster of 504 of those Blackwell B200s. That's the first cluster that we expect to be delivered before Christmas this year. The 6,000 GPUs, there's a chart in my section where we actually saw the 1,000 of the 6,000 coming online by Q1 2026 calendar Q1.

Yeah, Mike.

So the.

You are correct in that the existing Gpus that we have online or in the.

Three to 12 month range.

And.

The.

I actually just wanted to refer you to.

Yes.

Prince.

Sorry, I'm in Paraguay right now.

On the door.

So we also put out a press release this morning.

Current with our Q2 earnings.

That actually announced the order of the first.

504 those.

Blackwell B two hundreds.

And so that's the first cluster.

We expect to be delivered.

Before Christmas this year and so the 6000 Gpus Theres a chart.

And my section, where we actually sold the first thousand.

Of the 6000 coming online by Q1 2020 calendar Q1.

Aydin Kilic: The second cluster of 1,000 GPUs comes online Q3 2026. Finally, the additional 4,000 Blackwells would be Q4. The reason why Q4 is again, it's the retrofit of the Boden and Toronto facilities, and those retrofits are underway, so of course, you wouldn't be bringing GPUs online until that conversion was complete. So you've got 1,000 Q1, another 1,000 Q3, and another 4,000 Q4 to answer your question in short, those GPUs are not live yet. We're bringing them online in that cadence. So, we will provide more color on the contracted GPUs when, you know, when they go live. So I hope that answered your question.

The second cluster.

1000 Gpus comes online Q3, 2026, and then finally, the additional 4000.

Black clothes would be Q4, and the reason why Q4 is again.

The retrofit of the boat.

In Toronto facilities, and those retrofits are underway. So of course, you wouldn't be preachy piece online until that conversion was complete and so you've got 1000 Q1. Another 1000 Q3. Another 4000 in Q4 to sort of short to answer your question in short.

Those gpus are not live yet.

Bringing them online in that cadence and so.

We will provide more color on the contracted.

GPS.

When they go live.

I hope that answers your question.

Aydin Kilic: Why 2 years is because we wanted to provide sort of a conservative base case if we underwrote the revenue of the GPUs on the longest term contract, which conversely provides a lowest dollar per GPU hour. We, you know, we're aware directionally that, you know, the street and institutions are more in favor of stay the longer the cash flow, even if it's a lower quantum on GPU per hour. People like the stability, we've modeled that. Moreover, with the, with the cloud, what's exciting is when you're selling tokens or allowing people to utilize AI enterprise services, with API endpoints, now you're selling a much higher margin. That's why we kind of had the 2 similar slides showing the growth in revenue.

And why two years since because.

We wanted to provide sort of a conservative base case, if we underwrote.

Our revenue of the Gpus on the longest term contract, which Conversely provides the lowest.

Dollar per GPU hour.

And so.

We are aware directionally at that.

The street institutions are more in favor of stable the longer the cash flow even if it's.

A lower quantum on GPU per hour.

Like this stability and so we've modeled that and Moreover, with the with the cloud.

What's exciting is when you are selling tokens are allowing people to utilize.

Enterprise services with API endpoints, now youre selling a much higher margin and so that's why we kind of had two similar slides showing the growth in revenue one is on long term two year.

Aydin Kilic: One is on long-term 2-year contracts, and the other is higher margin selling AI enterprise services. I hope my comment on those, on those slides made it clear that we would expect the realized ARR to be sort of in the midpoint somewhere between those two projections I provided. Does that help?

Contracts and the other is <unk>.

Higher margins selling enterprise services so.

My comment I Hope my comment.

On those although the slides maybe clear that we would expect.

Our realized IRR to be sort of in the midpoint somewhere between those two projections I provided south.

Mike Grondahl: Yes. Thank you.

Yes. Thank you.

Aydin Kilic: You bet.

You bet.

Nathan Fast: Thank you, Mike. Next question coming from the line of Bill Papanastasiou from Stifel. Bill, the floor is yours.

Thank you Mike next question coming from the line of Bill pump enough Stasio from Stifel.

Bill Papanastasiou: Yeah, good morning. Congrats on all the progress made scaling the company's Bitcoin mining and AI HPC initiatives. First one, on Bitcoin mining, are you able to share your thoughts on where you think hash rate and economics could trend following the industry's push to AI HPC and just general commentary on the strategy going ahead? Thanks.

Yes.

Congrats on all the progress made scaling the companys bitcoin mining and AI HBC initiatives.

First one on bitcoin mining are you able to share your thoughts on.

Where do you think cash rate and the economics could trend.

Following the industry has pushed to AI HBC and just general commentary on your on the strategy going ahead.

Aydin Kilic: Yeah, for sure. Thanks, Bill. We currently are at a difficulty of 152 trillion difficulty, downward corrected recently after 156 all-time high, and 156 trillion being an all-time high. What I would point out is the last correction of difficulty going from 156 to 152 trillion, we actually were at a before the adjustment, we were sort of at a hash price in the 42. I'm gonna explain this sequentially because there's two variables, Bitcoin price and difficulty. Right now I'm referring to when difficulty adjusted, and of course, Bitcoin price was in the $102,000 range at that time. Bitcoin price at the $102,000 range at that time.

Yeah for sure. Thanks, Bill. So we currently are to just hoping you have a 152 trillion difficulty.

<unk> corrected recently after 156, all timeline to 156 trillion of being an all time high now what what I would point out is the last correction of difficulty going from 150 652 trillion.

We actually were at a.

Before the adjustments that are sort of at a high price indeed.

42.

No.

And explained it sequentially because there's two variables stay client pricing difficulty so right now I'm, referring to when difficulty adjusted.

Of course, if the corn prices in the 102000 dollar range at that time, so a big claim pricing at the 102000 dollar range at that time, we have.

Aydin Kilic: We saw hash price sort of in the low $40 per pet hash per day range, and that downward adjustment difficulty brought us up a bit to the, you know, going from 41 to 42, up to 43 to 44. Obviously, as difficulty drops, hash price increases. We sort of saw that. Recently, you know, in the past sort of five days here, we've seen Bitcoin drop from 102,000 to 99,000, and now, we're sitting at 93,800. That's put hash price back down to $40 per hash a day. I think consistently what we've seen since the halving is that the hash price for on a seven-day moving average has been $40.

Saw harsh price.

In the low $40 per potash per day range and that downward adjustment difficulty brought us up a bit to the.

Kind of going from 41 to 42.

Up to 43 to 44, obviously has difficulty drops past price increases so we sort of saw that but then recently.

In the past sort of five days here, we've seen bitcoin.

Drop from 102299 and now we're sitting at 93 eight so that's that's potash price back down to $40 potash a day, so I think.

Consistently what we've seen since the having is that the half price for on a seven day moving average has been.

Aydin Kilic: I guess actually at 93,008, we're a $39 hash price. It'll be telling to see what happens over the next epoch. The next difficulty adjustment will be 26 November, so we're still about 10 days away from that. If the hash price floor of the last year is an indication, we would expect a downward adjustment. As more efficient machines have come online over the course of the last year since the halving was in April 2024 and we're now in 2025, we could see the hash price floor perhaps become incrementally lower, perhaps in the $36 to $38 range. We'll know sort of in the course of next week.

$40 now I guess actually at $93 eight or $39 <unk> price so.

It'll be telling to see what happens over the next path. The next difficulty Joseph B notes.

November 26, so we're still about 10 days away from that and.

Yes.

The cash price floor of the last year is an indication we would expect a downward adjustment, although as more efficient machine just combined come online.

Over the course of the last year since the having was in April of 2024, and we're now into 2025, we could see the harsh price floor.

Perhaps become incrementally lower.

And the third.

6% to $38 range.

We will know sort of in the course of the next week.

Aydin Kilic: A lot of the peers are not public. When I say peers, publicly traded Bitcoin miners have not announced significant expansions. Of course, Bitdeer is being a producer has brought online more hash rate. I think Cipher's got themselves to 23 exahash. MARA, IREN, they're all hovering about 50 along with CleanSpark. That hash rate is online. I don't see that going anywhere anytime soon. However, again, we did see difficulty downward adjust, there will certainly be smaller scale miners, perhaps with less efficient machines, that are shedding off their hash rate capacity, when we see hash rate in the $39, $40 range.

A lot of the peers are not.

Public when I say peers publically traded quite miners have not announced.

Significant expansions of course mid tiers peanut producers just brought online more harsh trade I think hi, first got themselves to 'twenty three extra hash.

Mirror, Iran.

About 50, along with clean spark. So ashwin you saw them online I don't see that going anywhere anytime soon however.

Again, we did see difficulty downward to Jess so there will certainly be smaller scale miners, perhaps with less machines.

Is that are you know.

Shedding Austin Patrick capacity.

When we have rate in the $40.

Aydin Kilic: We're definitely closely watching it, but you know, the good thing is our break-even hash price is about $22 petahash a day on a global fleet-adjusted basis with a 17.5 joule per terahash global fleet efficiency. We've mined every quarter since I've been with HIVE, 2021, profitably. We upgraded our fleet accordingly, very intentionally to be able to mine with positive gross mining margin through to the next halving. Look, you know, look with the Fed coming out, hopefully there's a rate cut in December and easing into that quantitative easing cycle. Hopefully there's more liquidity, and we see a rally in risk on assets such as Bitcoin.

$940 range, so we're definitely closely watching it but.

Good thing is our breakeven <unk> price.

How about $22.

<unk> on a global fleet adjusted basis with a $17 five tool per care Ash Global fleet efficiency. So we've mined every quarter since I've been with high 2021 profitably.

Profitably and so we upgraded our fleet accordingly, very intentionally to be able to mine with positive gross margin and through to the next having so.

Well look with the.

Fed coming out hopefully, there's a rate cut.

In December and.

Quantitative easing cycle, hopefully, there's more liquidity and we see a rally in risk on assets such as bitcoin.

Aydin Kilic: Time will tell, but you know, we're very much aware and monitoring things, but in the meantime, continuing to mine profitably.

Time will tell them, but we're very much aware and monitoring things, but in the meantime, continuing to mine profitably.

Bill Papanastasiou: Appreciate that color, Aydin. Another one, if I may. Within the A-HPC stream, curious how we should just be framing our estimates between that base case and blue sky opportunity. Are you able to share your targeted composition?

I appreciate that color and then another one if I may.

H pursue stream.

Curious, how we should just be framing our estimates between that base case, some blue sky opportunity.

Are you able to share your.

Targeted composition.

Aydin Kilic: Yeah. Yeah, that's a good question, Bill.

Bill Papanastasiou: -like profile just-

Yes, good question.

Aydin Kilic: And a, and a very-

No Gary.

Bill Papanastasiou: Yeah.

Aydin Kilic: A very good question. I think, you know, as I sort of alluded to with Mike Grondahl, we expect it to land somewhere in between the base case and the case with the additional, or I should say, higher margin revenue, with the cloud stream. Sorry, with the BUZZ platform stream, enabling higher margins on the cloud business. I think you'll have your answer sooner rather than later because we're bringing these GPU clusters online first with Bell Canada. Again, we expect those for 1,000 GPUs to come online through the course of Q1. Again, this morning we announced the purchase of the first 500, which we expect to get delivered before Christmas.

Another good question I think you know as I sort.

Alluded to.

With Mike we expect it to land somewhere in between the base case and the.

The case with the additional or I should say higher margin revenue.

The with the cloud stream I'm, sorry, with it with that.

But the bus platform stream.

Enabling higher margins on the cloud business, but I think you'll you'll have your answer.

Sooner rather than later because as we again.

We're bringing these GPU clusters online first with Dell.

So against.

That goes for thousand Gpus to come online through.

Through the course of Q1 again.

This morning, we announced the purchase of the first 500, which we are.

To get delivered.

Aydin Kilic: Now, of course, takes time to plug in, configure, and pressure test these clusters. Frank often likes to give a very helpful analogy. It's, you know, from 6 hours of receiving a ASIC, you could have it hashing. It's more like 6 weeks when you're building a InfiniBand cluster with a bunch of GPUs. You know, if we've got our first cluster of GPUs live in January, this 500 January, the second 500 coming online, you know, within a month or 2 of there. You'll see sort of what those figures are like. Effectively, just, you know, stay tuned for fiscal Q1. Sorry, calendar Q1, which would be fiscal Q3, period end March, and you'll see that. You'll see those numbers.

Before Christmas now of course, it takes time.

Two plug and configure and pressure test these.

These clusters, Frank often likes to give them a very helpful analogies.

Six hours of receiving a <unk>.

Could have asking it's more like six weeks when you are building.

Infiniband plus here with a bunch of Gpus.

No.

Sure.

We've got our first cluster of Gpus glide in January.

500 January the second 500 coming online.

Within a month or two there you'll see sort of.

What those figures are really so.

Secondly, just stay tuned for fiscal Q1, sorry calendar Q1, which would be fiscal Q3.

Period end March and you'll you'll see that you'll see those numbers.

Bill Papanastasiou: Awesome. Thanks so much, Aydin Kilic.

Awesome. Thanks, so much higher.

Aydin Kilic: Yep.

Nathan Fast: Appreciate the questions, Bill. Next, we'll go to the line of Chris Brendler from Rosenblatt. Chris, floor is yours.

Appreciate the questions Bill next we'll go to the line of Chris <unk> from Rosenblatt, Chris floor is yours.

Chris Brendler: Hey, great. Thank you so much, and congrats on the results. Very impressive progress here. I just wanna ask a question on the Bitcoin mining business for a second. The improvement in gross margins here, and I know the network has gotten more difficult, more challenging from a competition perspective, but your gross margins improved significantly quarter-over-quarter and with the sort of a full-quarter run rate of the phase 3 complete now, I would expect the gross margins to continue to improve. Just wanted to get your take your temperature on that thought that your hash costs are gonna continue to decline and your gross margins, all else being equal in the Bitcoin mining business should continue to improve now that you're fully up and running in on phase 3.

Great. Thank you so much and congrats on the results very impressive progress here.

Wanted to ask a question on the bitcoin mining business for a second.

The improvement in gross margins here and I don't know.

The network has gotten more dip.

Difficult or challenging from a competition perspective, but your gross margins.

<unk> significantly quarter over quarter, and with the sort of a full quarter run rate.

The phase III complete now I would expect the gross margins to continue to improve.

Just wanted to get your take your temperature on that thought that your your cash costs are going to continue to decline in your gross margins all else being equal on the bitcoin mining business should continue to improve now that you're fully up and running.

Phase III.

Aydin Kilic: Yeah. You, you've got it bang on, Chris. The Q2 fiscal Q2 we just reported, the average hash rate for that quarter was 16.1 exahash, and that was period end September. That hash rate, I believe that it was phase 2 of our Paraguay project, so 200 to 300 MW was completed in that quarter. However, today we're at 25 exahash, and that milestone we just reached last week. We had sort of provided an update on that we put out a press release that we completed 300 MW, which is super exciting. We hit 24 exahash operational, 25 exahash were installed, and there was some short-term, just seasonal curtailment.

Yes, you've got it Bang on Chris So the SKU.

Q2, we just reported.

Average pass rate for that quarter was $16, one excess cash and that was a period in September and so.

That.

Right I believe that two ways.

Phase two of our Paraguay projects of 200 to 300 megawatts was completed in that quarter or however, today. We're at 25 extra hashed that milestone. We just reached last week and we had sort of.

Provides an update on that.

The press release that we hit 300 megawatt we completed a 300 megawatt which is super exciting.

We hit 24, SaaS operational twenty-five ex ash were installed.

And there was a short term.

Seasonal curtailments.

Aydin Kilic: We're talking like, you know, a day or two at a time here in Canada. Just a few days ago, we actually hit the full 25 exahash operational as well. That's super exciting. Of course, we're in November now. To your point and to further answer your question, yes, more hash rate coming online with our latest generation 15 joule per terahash S21+ Hydro machines are hitting the tape, and therefore it will bring that average hash cost down, as well as our cost of electricity in Paraguay is cheaper. And you're getting two factors there that are attributing to improved gross mining margins. Yeah, that's right.

A day or two at a time here in Canada and then.

Just a few days ago, we actually hit the full 25 ex ash.

Operational as well.

So that's super exciting but of course, we're in November now so to your point and to further answer your question, yes, more ushering coming online with our latest generation <unk> F. 'twenty, one plus hydro machines.

Are hitting the tape and therefore, it will bring that average cash costs down.

As well as our cost of electricity in Paraguay.

It's cheaper.

And so youre getting two factors there that are.

Attributing to improved gross mining margins. So, yes, that's right and so again just.

Aydin Kilic: Again, just to, you know, for your model there, I believe it was 16.8 exahash was the quarterly average operational hash rate for a period in September. Again, that's covering, you know, the growth from July, August, September. We obviously ended the period at a higher number. I think it was closer to 20. You know, nevertheless, you know, you had quite a ramp. What's the average of that ramp for the entire quarter? I believe it was 16.8. This quarter it will, you know, now you could sort of interpolate the data just simply using our monthly production reports. What was October, which we put out not too long ago, and you'll see November reports in December.

For your model there I believe it was.

16.8.

Excess cash with the quarterly average operational Ashwin for the period ended September again, that's covering the growth since July August September <unk>.

Ended the period.

At a higher number I think was closer to.

2014, but nevertheless, you had quite a wrap so what's the average of that ramp for the entire quarter I believe was $16 eight.

And.

And so this quarter ago.

You could you could sort of.

Interplay the data just simply using our monthly production reports.

October, which we put out not too long ago, when Youll see November reports in December so you'll you'll be able to figure our average operational half Street and again all the new assay can be brought online is at 15 <unk> the global average.

Aydin Kilic: You'll be able to figure our average operational hash rate. Again, all the new hash rate we brought online is at 15 joules a terahash. The global average with the full 25 exahash online is 17.5 joules a terahash. You know, we believe the monthly production reports are helpful for the analysts when doing your model. We know some of our peers have sort of stopped doing monthly production reports. I don't I mean, I know why. Broadly, they're sort of trying to, you know, rebrand themselves or perhaps not advertise the fact that 99%, 97% of their revenue still comes from Bitcoin mining. No names. I mean, everybody knows.

With the full 25 ex cash online a $17 five <unk>.

And so we believe the monthly production reports are helpful for the analysts.

When doing your model and we know some of our peers have sort of stopped doing monthly production reports I don't understand I mean, I know why.

Broadly there are sort of trying to rebrand themselves or or perhaps not advertise the fact that 99% 97% of the revenue still comes from bitcoin mining.

No names I mean, everybody knows.

Aydin Kilic: You know, we, I believe Bitcoin is the world's energy-backed decentralized currency, and we've had a wonderful year transforming our business to institutional scale. As that business has flourished, I believe pound for pound, we are the best Bitcoin miner in the sector. We lead in ROIC as evidenced in our quarterly metrics again, it's not something we're gonna shy away from. Of course, HPC business is in buzz, which is, you know, our pure play subsidiary so but it's part of our dual engine strategy. There you go. I hope that's helpful.

But yeah, we are I.

I believe the Queens is the worlds energy back decentralized currency.

We've had a.

Wonderful year, transforming our business to institutional scale is that visits a swoosh I believe pound for pound we are the best big quite minor in the sector.

We lead in ROIC C as evidenced in our quarterly metrics again, and so it's not something we're going to shy away from of course, HBC business isn't buzz, which as you know are a pure play subsidiary so, but it's part of our dual engine strategy. So there you go I hope that's helpful.

Chris Brendler: Yeah, it sure is. Thank you so much. My follow-up question is on capital strategy. Just maybe at a high level, just the tremendous amount of growth you've had over the last year, you've got big plans for next year as well between HPC and Bitcoin mining that, you know, phase four, I guess, is now on the table for Paraguay. How do you think about balancing the capital needs between HPC and Bitcoin mining? Is there a preference at this point, or are you still really looking to grow both at the, sort of the same rate?

Yes. It is thank you. So much my follow up question is on capital strategy, It's really at a high level.

Just the tremendous amount of growth you've had over the last year and you've got big plans for next year as well between HBC and bitcoin mining in phase four I guess is now on the table for Paraguay, how do you think about balancing the capital needs between HBC and Bitcoin mining is there is there a preference at this point are you are you still really low.

Looking at your growth both at the same rate.

Aydin Kilic: In my presentation, what I outlined was we have the additional 100 MW in Paraguay, which was awarded to us. Currently, our global operating capacity is 440 MW, with 300 MW in Paraguay. We have been granted an additional 100 MW of green energy by ANDE in Paraguay, which is great. What's attractive about that is that it's actually at an existing site. The Yguazú site, when we bought it was actually designed and all the civil works has been done for 300 MW at that site alone. We've built it as a 200 MW site 'cause those are the transformers that were ordered, and that's sort of what Bitfarms had near term. That's all been completed.

So in in.

My presentation what I.

I outlined was we have the additional 100 megawatts in Paraguay, which was.

Where did to us. So currently a global opinion capacity is 440 megawatt to 300 megawatts in Paraguay now we have been granted.

An additional 100 megawatts of Green energy by Andre in Paraguay, which is great.

What's attractive about that.

Is that it's actually at an existing site that you as you say when we bought that was actually designed and all the civil work has been done for 300 megawatts at that site alone, but we've built it as a 200 megawatt site because those are the transformers that were ordered and that sort of what did firms had near term.

Aydin Kilic: To get that extra 100 megawatts online, all we're doing is bringing on a couple more transformers for the substation and the medium voltage and then dropping hydro mining infrastructure in place. Sum that all up, the punchline is a quarter million dollars a megawatt to expand that 100 megawatts, which is incredibly attractive. As we'd mentioned before, our all-in cost for land, substation, everything was $400,000 a megawatt for our Valenzuela site and our Yguazú site. But because this is an expansion of an existing site that's already complete, it's a nominal incremental cost. That's one portion of the CapEx.

It's all being completed so to get that extra hundred megawatts online. All we're doing is bringing on a couple more transformers for the substation and and medium voltage and then dropping hydro mining.

The infrastructure in place so.

Sum that all up the punch line is a quarter million dollars a megawatt to expand 100 megawatts, which is incredibly attractive.

We've mentioned before our all in cost for land substation everything was 400 Grand in megawatt for for our balance let's say he was here because this is an expansion of an existing site is already complete.

Its a nominal incremental costs so.

So that's one portion of the Capex the bigger portion of courses.

Aydin Kilic: The, the bigger portion, of course, is, you know, I think all the analysts on the call and a lot of the very enthusiastic retail investors and certainly institutions are aware that, you know, a cluster of Blackwells, like a 1K cluster, you know, with InfiniBand and everything is roughly $60 million. If you're bringing on 6,000 GPUs, it's about $360 million, but that's significant CapEx. If you've got vendor financing for that, then that is the most significant component of CapEx that you've now alleviated. We, at least in terms of relying on equity financing or, say, taking on debt in the capital markets or, you know, having a derivative like a convert or anything.

I think all the analysts on the call and in a lot of the very enthusiastic.

Retail investors and then certainly institutions are aware of that.

Black clothes.

Like a one K cluster with Infiniband and everything is roughly $60 million. So if you're bringing on 6000 Gpus.

$360 million, but that's a significant capex, but if you've got.

Vendor financing for that.

And then that is the most significant component of Capex that you've now alleviated.

So we at least in terms of relying on equity financing or sale.

Taking on.

Debt in the capital markets are having a terrific if like a convert or anything so what we're really enthusiastic about is it.

Aydin Kilic: What we're really enthusiastic about is that with vendor financing, we were able to scale that GPU business. Again, Bell being a colo, there's no significant CapEx for us. That ramp to the first 2,000 GPUs of our projection, getting us from 20 to $60 million of ARR, we're able to realize through the colo with Bell and vendor finance found the GPU is no significant CapEx, which is really nice. Of course, as I think it was Darren's question, the only CapEx we have to finish is with Boden in Toronto, $25 million and $40 million respectively.

With with vendor financing, we were able to.

Scale that GPU business and again dealt in a colo.

There's no significant capex for us so that ramp to the first 2000 Gpus are our projection.

Getting us from $20 million to $60 million of IRR, we're able to realize through the cola with bell and vendor financing on the Gpus no significant capex, which is which is really nice.

And then of course as I think it was <unk> question. The only Capex, we have to finish is with little Bowden, and Toronto, 25% and $40 million, respectively, and that gives us our ramp in our pipeline to operate 6000.

Aydin Kilic: That gives us our ramp and our pipeline to operate 6,000 Blackwells globally in addition to our existing fleet of 5,000 GPUs to the tune of an 11,000 GPU cloud globally. Yeah, it's about being very balanced and strategic with how we deploy capital and where we can have what we believe is accretive leverage, then we'll pursue that. We have, and I'm very happy to announce that we've now got this capital plan laid out in addition to really support the growth.

Blockquote.

Globally. In addition to our existing fleet of 5000 Gpus to the tune of.

11000, GPU cloud globally, so yes.

Yes, it's about being very balanced in St.

T J with how we deploy capital and where we can.

What we believe is accretive leverage.

Then we will pursue that we have and I'm very happy to announce that we've now got this capital plan laid out.

In addition to really support the growth.

Chris Brendler: Great. Thanks so much, Aydin.

Great. Thanks, so much.

Aydin Kilic: Yep. Excellent. Good question.

Yup excellent. Good question. Thank you Chris.

Nathan Fast: Thank you, Chris. Time for a few more questions. Two more. Next question comes from the line of Fedor Shitovlin from B. Riley. Fedor.

Time for a few more questions. Two more next question comes from the line of Fetor Shovlin from B Riley <unk>.

Fedor Shitovlin: Thank you very much, operator, and good morning, everyone. Aydin, first of all-

You very much operator, and good morning, everyone.

Aydin Kilic: Hi, Fedor.

I didn't I told Chunkier Paul Thank.

Fedor Shitovlin: Thank you. Thank you very much for putting out a monthly update. That's helpful. Question-wise, could you please provide an update on the timeline for the Brunswick Data Center, including whether construction will be phased or completed at once? Additionally, should the colocation agreement not proceed hypothetically, is there a path to fully utilize the capacity for AI cloud demand, and how long would it take in this case, including timing for arranging financing for GPU procurement? Thank you.

Thank you very much for putting out.

Monthly updates that's helpful and question wise could.

Could you please provide an update on the timely.

Timeline for the Brunswick data centers, including the weather construction, a little bit phased all completed at once and Additionally should that should the Colocation agreement not to proceed hypothetically is there a path to fully utilize the capacity for AI cloud demand and how long.

Would it take in this case, including timing for engine financing for GPU procurement. Thank you.

Yes.

Aydin Kilic: Yeah. I think the takeaway from the presentation we provided, we actually wanted to emphasize that the conversion of the New Brunswick site, especially given its proximity close to the border of Maine, actually makes it very opportune as a hyperscaler colo project. We are very much aware that right now, especially institutions, we were in Miami for the Cantor conference, which was an absolute home run. I think Cantor did a phenomenal job putting together that. That event was extremely well attended. The quality of the attendees on both the buy side and I mean, you basically had the whole industry and all the Wall Street there.

Yes, so I think the.

Takeaway from the.

Presentation, we provided we actually wanted to emphasize that.

The confront a conversion in new Brunswick site, especially given its proximity.

Closer to the port of mean actually makes it very opportune as a hyperscale or colo projects and we're very much aware of that right now.

Especially institutions we were in.

And in Miami for the Cantor Conference, which is an absolute homerun I think Ken did a phenomenal job.

Putting together that that event was extremely well attended.

The quality of the.

Attendees on both the buy side and I mean, you basically had the whole industry and all of the Wall Street, there, but any rate.

Aydin Kilic: At any rate, you know, it's clear that the street is valuing hyperscaler colo because they like the stability and they like the scale of those revenues. You know, if you wanna do a 100 or 200 or 300 megawatt site for hyperscaler colo, you can now allocate a large amount of capital. If you've got a long-term leases, we've seen some of our peers announce, now you've got stable cash flows at lower margin.

It's clear that the street is valuing them.

Hyperscale recovered because they like the stability that they'd like to scale of those revenues.

If you want to do.

100, or two or 300 megawatt site for I pursue coal you can.

Now allocate a large amount of capital.

And if you've got a long term leases, we've seen some of our peers announce.

Now you've got stable cash flows with lower margin I mean, just just.

Aydin Kilic: I mean, just I think all the analysts on this call are well aware, but maybe for the other people that are dialed in, just if you, if you look at it arithmetically, if you were to sign a lease, you know, one of our peers recently did a lease that worked out to $102 a kW a month on hyperscaler colo. All you do is you divide that by 730 hours, and it works out to $0.14 a kWh. The unit economics of hyperscaler colo are relatively modest, $0.14 a kWh. When Bitcoin was at a $42 hash price, our ASICs were doing $0.12 a kWh. It's not too far off from that.

I think all the analysts on this call are well aware, but maybe for the other people that are dialed in just if you. If you look at it Arithmetically if you.

You were to sign a lease you know one of our peers recently did a lease that worked out to a $102 a kilowatt month in hyperscale the Colo.

All you do is you divide that by 730 hours.

2014 cents a kilowatt hours so.

Economics of Hyperscale, or Colo or relatively modest 14 cents a kilowatt hour.

But big pointless sort of $42 <unk> price, alright, Asics Rus doing 12 kilowatt hours not too far off from that $55 <unk> price. Our ethics, we're doing 50 intensive kilowatt hour, that's 21 pluses and your base.

Aydin Kilic: $55 hash price, our ASICs were doing $0.15 a kWh. That's 21 pluses. Your base operating costs in mining is, you know, with power and so forth, is about $0.05. You're doing relatively high margins and quicker ROI. You know, if you're a $50 hash price range, something like a year and a half ROI after CapEx. That's why I like the dual engine strategy, but again, because we're aware that people like the scale and stability of hyperscaler colo, even though the ROI period is more like 7, 8 years, depending on what your $ per MW CapEx is to do the conversion, with a long-term contract, it is being valued in the street.

Base operating costs and in mining is with power.

So for us about a nickel, so youre doing relatively high margins and quicker ROI.

If you're a $50 price range, something like a year and a half ROI. After capex now that's why I like the dual engine strategy, but again, because we're aware that people like the scale and stability of Hyperscale or Colo.

Even though the ROI periods more like seven eight years, depending on what you are.

Dollar per megawatt Capex is to do the conversion.

With a long term contract.

It is being valued in the street and so.

Aydin Kilic: Right now, as we've positioned our 2026 targets, we've got both. We've got GPU revenue, right, from operating AI cloud, hyperscaler colo, as we've targeted for New Brunswick, and then, of course, the Bitcoin mining business. The $85 million target, Fedor, was actually based on hyperscaler colo. We did want to point out though that if you were going to base it off of GPU reference architecture, based on latest generation GPUs, you could operate 25,000. Right now our target and our focus is to get through the conversion of Toronto as well as Sweden and the Bell partnership to bring online those 6,000 GPUs.

Right now as we've positioned.

Our 2026 targets.

We've got we've got both the Scott.

GPU revenue right from operating AI cloud Hyperscale or Colo as we've targeted for new Brunswick.

And that of course, a bit quaint mining business, so that the $85 million target Theodore was actually based on Hyperscale or Colo.

And so we did want to point out, though that if you were going to base it off of GPU reference architecture.

Based on latest generation Gpus, you could operate 25000, but right now our target and our focus is to get through the conversion of Toronto as well as Sweden, and the Dell partnership to bring online those success and Gpus and stay tuned for updates on the.

Aydin Kilic: Stay tuned for updates on the strategy and status of the conversion of New Brunswick and directionally which way it goes. Again, you know, I sort of emphasize that the projections we provided in both cases, I'd had those two projections on HPC revenue. Both cases were predicated with New Brunswick as hyperscale or colo. I would say just stay tuned for updates on that strategy and developments there.

Strategy and status of the conversion of New Brunswick, and Directionally, which way it goes.

But again.

Sort of emphasize that.

Projections, we provided in both cases.

Had those two.

Our projections on HBC revenue, both cases were predicated with new Brunswick is hyperscale or Colo.

I would say just stay tuned for updates on that strategy in developments there.

Fedor Shitovlin: Thank you very much.

Thank you very much continue I guess if luck.

Aydin Kilic: Yep

Fedor Shitovlin: best of luck.

Aydin Kilic: Thank you.

Thank you.

Fedor Shitovlin: Thanks.

Aydin Kilic: Thanks for having me.

Nathan Fast: Our final question comes from the line of Joseph Vafi from Canaccord Genuity. Joe, floor is yours.

Final question comes from the line of Joe Murphy from Canaccord, Joe floor is yours.

Joseph Vafi: Hey, guys. Good morning. Terrific progress. Great to see it. Just can we drill down a little bit on Itaipu and Paraguay? You know, clearly becoming very strategic location for Hive and very differentiated. I know, Aydin, you did mention the Stargate Project in Argentina, Patagonia. Clearly Stargate, you know, likes the clean power angle as well. Can you kinda just drill down? I know you've been down there. I know Frank has been down there a lot. You're close with the government and the president. How much power do you think, you know, is there additional power available to Hive out of Itaipu? You know, maybe what, you know, what's the president of Paraguay thinking about AI and things like that, as the industry develops? Thanks.

Guys good morning.

Terrific progress great to see it just can we drill down a little bit on type who in Paraguay, clearly, becoming very strategic location for high then very differentiated I know you did mention.

The Stargate initiative in Argentina, Patagonia, clearly stargate likes the clean power angle as well.

Just drill down I know you've been down there I know Frank has been down there a lot you are close with the government and the president how much power do you think.

Is there is there additional power available so five out of <unk> and maybe what you know, what's the president of Paraguay thinking about AI and things like that.

As the industry develops thanks.

Aydin Kilic: So what we've noticed is, I mean, the president of Colombia, sorry, the president of Paraguay, Santiago Peña, you know, he's like, The ministers, the president, they're all, like, internationally educated. They're all extremely bright. They, I mean, Peña's, I think he's 46. I believe it was his birthday. He just turned 47. These are young, really smart guys, Joe, that wanna position their country. They've been internationally educated. I mean, in the US, I believe Peña was studied at Columbia University. They wanna position their country for success, and they're very much attuned of, you know, the data center industry.

So what.

What we've noticed is.

The.

I mean, the president of Colombia, sorry, the president of <unk>.

Yes.

Paraguay Sankyo opinion here.

He's.

The ministers the present, they're all like internationally educated there theyre all extremely bright.

I mean 10 years I think I think he is 46 I believe it was pretty just turned 47. So these are these are young.

Really smart guys show that want to position their country and they've been internationally educated I mean in the USA I believe.

Opinion was studied at Columbia University so the.

They want to position their their country for <unk>.

<unk> success and they are aware of they are very much attuned of.

Aydin Kilic: We saw that OpenAI went down to Argentina to talk about a Latin American Stargate with Sur Energy. We of course have been talking with the Paraguayan government about the future of data centers in Latin America and HPC in Paraguay. I think that it's definitely on the horizon, and it's something that we're incubating and seeing how we could support and be a catalyst to help bring that vision to life. I would say that there's a vision for it right now, and what we're trying to do is be a catalyst for that vision in Latin America by working very closely with Peña and the various ministers, again, who are extremely business savvy.

The data center industry, we saw that.

I went down to Argentina to talk about our Latin American Stargate with <unk> energy.

We of course have been talking with.

The Paraguay in government.

The future of data centers in Latin America in HBC, and Paraguay, So I think that it's.

Definitely on the horizon, and it's something that we're incubating incubating and seen how we could support and be a catalyst.

To help.

Bring that vision to life I would say that that there are sufficient for it right now and we're what we're trying to do is it would be a catalyst for that vision in Latin America by working very closely.

With opinion and the various ministers again, who are extremely business savvy and Paraguay used the country's 6 million people, but it is also home to the largest hydro down by production the type who Dan by the way.

Aydin Kilic: You know, Paraguay is a country of 6 million people, but it's also home to the largest hydro dam by production. The Itaipu Dam, by the way, maybe I'll put on Twitter. Luke and I took a photo. It has, again, this world record banner when you approach it. Actually kind of set up as a tourist attraction, like anyone can go there. You know, marvel of engineering, et cetera. You know, how do you monetize those vast natural resources? I think Frank's often talked about how as we grow our footprint going, you know, from 300 to 400 megawatts in Paraguay, that means US dollars paid in a timely manner for the government of Paraguay.

I'll put on Twitter at Luke and I took a photo against World record banner. When you approach, it's actually kind of setup as a tourist attraction like anyone can go there.

Marvel with engineering et cetera.

And so.

How do you how do you monetize those those vast natural resources.

And I think frankly, often talked about how.

As we grow our footprint going from three to 400 megawatts in Paraguay that means U S dollars paid in a timely manner for the government of Paraguay, and Moreover, we believe that Directionally power prices are going to get.

Aydin Kilic: Moreover, we believe that directionally, power prices are gonna get attractive in this region. They are attractive, and I think they're gonna more so become attractive. That's sort of what I could say for now. Well, let's just say we're working on a lot of things and stand by for updates as we have them.

Attractive.

In this region.

And.

They are they are attractive and I think theyre going to Morris have become attractive and.

That's sort of what I can say for now, but well, let's just say we're working on a lot of things and standby for updates as we are.

Happened.

Joseph Vafi: That's great. Then just quickly on a follow-up, I think the Brazilians and the Paraguayans share the power off that dam. I think it's, a Wikipedia search, I think it's like 15 GW coming off of Itaipu. Have you had any discussions with the Brazilians at this point or, you know, because I think they're probably getting a lot of the power off the dam. Just wondering, you know, if you're exploring other things in the region given your Itaipu position. Thank you.

That's great.

Just quickly on a follow up I think the Brazilians and the Paraguay interesting are the power off that.

I think well I mean.

A PDF search I think it's like 15, Gigawatts coming off will be type who is have you had any discussions with the Brazilians at this point or.

They're they're probably getting a lot of the power off the dam.

Just wondering if youre exploring other things in the region given your type of position. Thank you.

Aydin Kilic: Yeah. You're very astute, Joe. Yeah, it's about 14 gigawatts. When we were there in December of last year, it was producing 10.7 gigawatts on that day. 10.7 gigawatts. We actually, Jamie Brown came down for a visit in September. That was a YPO event that Santiago Peña hosted. It was at the central bank, and then it was at the presidential palace, and then we went over to Itaipu. I believe that the dam was only producing about 8 gigawatts that day or Yeah, exactly. That dam has a lot of capacity. Exactly 14 gigawatts. Might be 14 point something, closer to 15, when we were there, I recall it being 14 gigawatts.

Yep Yep.

Various future so yeah to about 14 gigawatts.

When we were there in December.

Of last year. It was producing 10 seven gigawatt on that date.

10, seven Gigawatts and we actually.

Jamie Brown came down for a visit.

September those who IPO event opinion hosted.

And it was at the Central Bank and then it was at the presidential Palace and then we went over to <unk> type, who and I believe that the dam was only producing about <unk>.

Eight gigawatts that day or.

Yes, exactly so there that Dan has a lot of capacity.

Exactly.

14, Gigawatts might be 14 point something closer to 15, but when we were there I recall it being 14 gigawatts. So there is.

Aydin Kilic: There is, the arrangement is that the power's actually sold. When you go to the dam, it's called Itaipu Binacional. There's a border, and you've got both Brazil and Paraguay. The power is actually sold to Brazil. I think what happens is there's sort of a more nuanced outlay where the Itaipu infrastructure project has recently completed its CapEx, the construction cost of this magnificent facility. It has paid itself off. It has paid itself off. Now what we're entering in the 2027 era is what will that look like going forward now that it's been paid off?

The arrangement is that.

Power's actually.

So like Wow, when you go to the dam.

It's called <unk> type, who by nationality so.

There is a border and you've got both Brazil and in Paraguay, but.

The power is actually sold sold to Brazil. So I think it's what happens is there is.

Sort of a more nuanced.

Uh huh.

Outlay, where.

D E tied to infrastructure project.

As recently.

Completed its capex.

The construction cost of this magnificent facility.

This paid itself off as pay itself off and so now what we're entering two in the 2027.

Alright.

Yes.

What will that look like going forward now that it's been paid off.

Aydin Kilic: When I sort of was referring to we believe that, you know, the pricing of power from the Itaipu Dam will directionally be favorable, that's what I was sort of getting at. You've asked a very good question. You've clearly done your homework. That's all I can say for now, my friend. Stand by for updates on that. Yeah, you're kind of pointing in the right direction. Again, we've, you know, with OpenAI coming down to Argentina, of course, Argentina's a neighbor of Paraguay as well.

And so when I sort of was referring to we believe that the pricing of power.

The type of dam will directionally be favorable.

That's what I was sort of getting us you've asked a very good question, you've clearly done your homework [laughter], but that's all I can say for now my friend and.

Standby for updates on that.

Yes, you're kind of pointing in the right direction and again we've.

With the opening of <unk> coming down in Argentina of course, Argentina is.

Neighbor of Paraguay as well.

Aydin Kilic: We think that there's gonna be some very exciting potential activity, both in terms of having abundant green energy, you know, we're also doing initiatives to help improve the grid as well. Part of, you know, as we showed how we were refurbishing the schools in the community, that's goodwill at HIVE, right? You know, no one's asked us to do that. We've done that because we think it's the right thing. You know, Frank and myself and our whole executive team, we really much value education, even if it's at a primary school level. Of course, we have great education for the staff that work at our facilities.

We think that theres going to be some some very exciting.

Potential.

Activity, both both in terms of having a blend and clean energy.

And.

Well so doing is.

She has to help improve the grid as well and so part of it we showed how we were refrigerant refurbishing the schools and the community and that's that's goodwill at high rate and no one's asked us to do that we've done that because we think it's the right thing.

You know, Frank and myself and the whole executive team, we really much value education.

Even if it's at a primary school level of course, we have great education for the staff that work for our facilities.

Aydin Kilic: Frank's a huge sports guy, as anyone who knows him knows, we love to sponsor sports teams as well. You kinda take it up a level when you're working with utilities and the central government, you know, how can we help improve the grid and contribute to the nation's infrastructure. Stand by. We're working on things that we'll provide you updates on over the course of next year.

France, the huge sports guys as anyone who knows who knows and so we'll have to sponsor sports teams as well.

But.

Then you kind of take it up a level and when you're working with utilities and the central government.

How can we help improve the grid and contribute to the nation's infrastructure, so standby, but yes, we're working on things that.

We'll provide you updates on over the course of the next year.

Joseph Vafi: Great. Thank you very much, Aydin.

Great. Thank you very much.

Aydin Kilic: Yeah. Thank you. Thanks for tuning in.

Yeah. Thank you thanks for tuning in.

Nathan Fast: Excellent. Thank you, Joe. Thank you to all of our analysts and our attendees. We appreciate you joining us this morning. That concludes our Q&A session and our Q2 2026 earnings call. Thank you for joining. Thank you for your support. We look forward to speaking to you again soon.

Excellent. Thank you Joe Thank you to all of our analysts and our attendees. We appreciate you joining us. This morning that concludes our Q&A session and our Q2 2026 earnings call.

Thank you for joining thank you for your support and we look forward to speaking to you again soon.

Operator: The recording has stopped. Goodbye.

They are recording has stopped.

Yeah.

Okay.

Yeah.

Goodbye.