Q4 2025 Hut 8 Mining Corp Earnings Call

Sue Ennis: Are our CEO, Asher Genoot, and our CFO, Sean Glennan. Following the presentation, we will open the line for questions. This event is being recorded and a transcript will be made available on our website. In addition to the press release issued earlier today, our full annual report on Form 10-K is available at hut8.com, on our EDGAR profile at sec.gov and on our SEDAR+ profile at sedarplus.ca. Unless otherwise indicated, all figures discussed today are in US dollars. Certain statements made during this call may constitute forward-looking statements within the meaning of applicable securities laws. These statements reflect current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Certain key risks are detailed in our Form 10-K for the year ended 31 December 2025, and our other continuous disclosure documents.

Are our CEO. Estrogen nude. And our CFO Sean Glennon.

Following the presentation, we will open the line for questions. This event is being recorded and a transcript will be made available on our

in addition to the press release issued earlier today, our full annual report on form, 10 K is available at hut8.com on our Edgar profile at sec.gov and on our seeder Plus profile at

unless otherwise indicated all figures discussed today are in US Dollars certain statements May. During this call May constitute forward-looking statements within the meaning of applicable, Securities laws. These statements reflect current expectations and are subject to risks and uncertainties that could cause actual results to differ materially.

Sue Ennis: Except as required by law, we assume no obligation to update or revise any forward-looking statements. During the call, management may reference non-GAAP measures such as adjusted EBITDA. We believe these metrics, alongside GAAP results, provide valuable insight into our performance. Reconciliations of GAAP and non-GAAP results are included in the tables accompanying today's press release available on our website. We will begin with a moderated Q&A session with our CEO, Asher Genoot, followed by a detailed financial review from our CFO, Sean Glennan. Okay, everyone. Let's get started. To start, Asher, fiscal 2025 was a big year for Hut 8. We executed on several important milestones, including the carve-out of our legacy Bitcoin mining business and the execution of our first AI data center transaction. What were the guiding principles that enabled us to achieve these outcomes in your mind in 2025?

Certain key risks are detailed in our form 10 K for the year, ended December 31st, 2025 and our other continuous disclosure documents except as required. By law, we assume no obligation to update or revise, any forward-looking statements,

During the call management rate reference non-gaap measures such as adjusted. Eva de, we believe these metrics belong to Gap results, provide valuable insight into our performance. Reconciliations of gaap and non-gaap results are included in the tables. Accompanying. Today's press release available on our website.

We will begin with a moderated Q&A session with our CEO ashro Janu. Followed by a detailed financial review from our CFO, Sean Glenn.

Hey everyone. So let's get started. So sorry Asher. Fiscal 2025 was a big year for headache. We executed on several important Milestones including the carve out of our Legacy Bitcoin, mining business and the execution of our first AI data center transaction.

So what were the guiding principles that enabled us to achieve these outcomes in your mind in 2025?

Asher Genoot: 2025 was about rebuilding Hut 8 around capital efficiency and durable cash flow. Two years ago, we rebuilt the company from a first principles approach after our merger with Hut 8 and going public. Everything started with the electron. We chase megawatts, not chips, and we want to control the power layer first. We don't view electrons as a commodity, but rather strategic assets. The ABC carve-out shifted us from cyclical CapEx exposure to contracted infrastructure like cash flows. That was a big theme of last year. We also reallocated capital from volatility to long duration agreements, with ABC being able to self-fund itself on the mining and Hut 8 providing the infrastructure. Riverbend validated that model. We had a true greenfield development. We didn't convert a site. We developed a site from the ground up by power-first thinking.

2025 was about rebuilding had a or on Capital efficiency in durable cash flow. So, 2 years ago, we rebuilt the company from a first principles approach. After our merger with had, in going public and everything started with the electron. We Chase megawatts, not chips. And we want to control the power layer first. And so, we don't view electrons as a commodity, but rather strategic assets and the ABC, carveout shifted us from a cyclical capex, exposure to contracted infrastructure, like cash flows. That was a big theme of last year. We also reallocated capital from volatility to long, duration, agreements, and with ABT being able to sell fund itself on the mining, and had a, providing the infrastructure. And then Riverbend validated that model, we had a true

Asher Genoot: It was really the first domino to fall under an AI infrastructure platform. We focus only on what compounds: power control, scalable campuses, disciplined capital structure, and repeatable execution. 2025 was about building the right foundation, and now we compound and we scale going into 2026.

Greenfield, we didn't convert a site. We developed a site from the ground up by a power. First thinking, it was really the first Domino to fall under an AI infrastructure platform and we focus only on what compact

Power control, scalable campuses, discipline capital structure, and a repeatable execution. And so, 2025 was about building the right foundation and now we compound and we scale going into 2026

Sue Ennis: In your mind, what specific operational and strategic milestones were prerequisites before the business could meaningfully accelerate?

In your mind. What's specific operational? And strategic Milestones were pre-requisites before the business.

Could meaningfully accelerate.

Asher Genoot: 2024, as I showed a little earlier, was about restructuring. We started a company, we merged with Hut 8, then I took over shortly after. It was restructuring the business and creating the ability for us to create a foundation. 2025 was about building credibility. Credibility started with our shareholders. In 2024, when I took over the helm, our institutional ownership was sub 10%. We're at approximately 70% today. Some of our earliest shareholders who invested in us when we started the company 5 years ago still hold a large percentage of the stock. There's given shareholders disciplined capital allocation they've seen through us in the years with us in the public markets and honestly, transparent execution.

2024. As I showed a little earlier was about restructuring, we started a company we merged with Hut 8 and then I took over shortly after and it was restructuring, the business and creating the ability for us to create a foundation 2025 was about building credibility. And so credibly started with our shareholders in 2024 when I took over the helm, our institutional ownership was sub 10%. We're at approximately 70% today, and

Some of our earliest show shareholders who invested in us when we started the company's 5 years ago, still hold a large percentage of the stock.

Asher Genoot: We told people what we were going to do, and we focus on getting that done and delivering a fully built solution when we execute, and we intend to do the same. We built credibility with team members. We scaled intentionally. We institutionalized processes while maintaining an entrepreneurial speed. I think that's critical. As you grow, you naturally build bureaucracy and having the mindset to say, you know what. We will continue to operate as a lean startup culture, even as we build an institutionalized process. I spend a lot of my time thinking about that in terms of how do we scale at the same rate that we have historically. Credibility with financing partners is really important for us to secure tier one lenders with JPMorgan, Goldman Sachs to lock in non-recourse project financing. It was harder, but we believe it's the better path.

Given shareholders discipline Capital allocation they've seen through Us in the years in in with us in the public markets and honestly transparent execution we told people what we were going to do and we focus on getting that done and delivering a fully booked solution when we execute and we intend to do the same. We built credibility with team members. We scaled intentionally, we institutionalized processes.

Asher Genoot: We believe early investors in us, like Coatue, they backed us before the theme was a consensus, and I'm glad that they're happy. Meaningfully spoke on a panel the other week, and I'm glad that we're able to drive a good return on their investments. Lastly, credibility with our partners. That's local partners, for example, at Riverbend with Entergy Louisiana, West Feliciana Parish, the governor's office, and being able to deliver on them and our commitments to them when they took a bet on us. Acceleration only happens when credibility is earned, and we would like to compound on that as the years go by.

Early investors in us like CO2, they backed us before the theme was a consensus and I glad that they're happy, right? Means fully spoke on a panel the other week and I'm glad that we're able to drive a good return on their Investments. And lastly, credibility with our partners. That's local partners for example, at Riverbend with energy, Louisiana West, Felicia and Parish the Govern governor's office and being able to deliver on them, in our commitment, to them, when they took a bet on us. And so acceleration, only happens when credibility is earned and we would like to Compound on that as the years go by.

Sue Ennis: You were under a lot of pressure last year to talk about a deal and guide the market to when it would come, what it would look like. We kept our cards very close to our chest. Can you talk about why we were patient and what we wanted to see come together first?

So you are under a lot of pressure last year, to talk about a deal and guide the market to when it would come, what it would look like. But we kept our cars, very close to our chest. So can you talk about why we were patient? And what we wanted to see come together first?

so, I'll separate

Asher Genoot: I'll separate my role in speaking to the public markets and our shareholders and my role in running the operating business and making sure we're able to build that over the long term. In my role in the public markets, I knew what shareholders wanted. They wanted a deal. They wanted to know that we can build a data center infrastructure platform, and they wanted to see what that would look like and to build the first domino as a part of the platform. For the business itself, we weren't waiting to announce a deal. We were really building a fully locked and executable program. For us, we didn't feel like there was a reason to add public market complexity while negotiating a super complex structure with a lot of moving pieces. We didn't want to just announce a headline.

my role in.

Speaking to the public markets, in our shareholders, in my role in, running the operating business and making sure we're able to build that over the long term and my role in the public markets. I knew what the what shareholders wanted they wanted a deal. They wanted to know that we can build the data center, infrastructure platform and they wanted uh, to see what that would look like. And to build the first uh Domino as a part of the platform for the business itself, we were waiting to announce a deal. We were really building a fully walk and executable program and so for us we didn't feel like there was a reason to add Public Market complexity.

Asher Genoot: We wanted a complete financial program. We wanted demand secured, financing secured, execution partners aligned on construction, delivery, engineering's long lead time items. We wanted our power path defined, and we want our risk allocated properly across counterparties. Instead of guiding towards the deal was coming, which everyone knew we were working hard at, we optimized for building the right structure for the company in the long term. When everything was negotiated and aligned, we announced the full framework in one step. I think that discipline hopefully reinforces the credibility that we're building with our shareholder base. As we move forward, we're going to be really thoughtful about what we share with the markets versus how we think about those impacts, to our customers as well.

While negotiating. A super complex uh, structure with a lot of moving pieces, we didn't want to just announced a headline. We wanted a complete Financial program. We want to demand secured, financing secured.

Execution, Partners aligned on construction delivery engineering long lead, time items. We want our power path to find

and we want to risk allocated properly across counterparties. So instead of guiding towards the deal with coming, which everyone knew we were working hard at, we optimized for building the right structure for the company in the long term and when everything was negotiated and aligned, we announced the full framework in 1 Step.

And I think that discipline, hopefully reinforces the credibility that we're building with our shareholder base and as we move forward, we're going to be really thoughtful about what we share with the markets versus how we think about those impacts uh, to our customers as well.

Sue Ennis: Our first AI data center transaction generated significant market attention. How should investors think about this transaction in the context of our broader strategic evolution without over-indexing on a single data point?

So our first AI data center transaction generated significant Market attention, and how should investors think about this transaction? In the context of our broader strategic Evolution without over indexing on a single data point?

Asher Genoot: I think this was a fair market deal. It was designed to compound relationships and not to maximize one transaction. We structured at market clearing economics. A lot of private deals are getting done, we believe are done in a similar range. We focused on long-term creditworthy counterparties that can grow with us. We built to scale the program beyond just the first phase across our customers and across our financing counterparties, execution partners, supply chain partners. It took a very customer-centric approach on how do we de-risk, execute, and give them confidence. We're not optimizing for headlines. We're trying to build repeatable partnerships because that's gonna be the secret sauce in our ability to grow and scale.

I think this is a fair market deal. It was designed to compound relationships and not to maximize 1 transaction. And so, we structured, that market clearing economics. A lot of private deals are getting done. We believe are done in a similar range. Um, we focus on long-term creditworthy counterparties that can grow with us, and we built a scale to program Beyond just the first phase across our company.

Customers and across our financing power and parties, execution partner, supply chain partners. And so it took a very customer-centric approach on how do we de-risk execute and give them confidence. We're not optimizing for headlines. We're trying to build repeatable Partnerships because that's going to be the secret sauce in our ability to grow and scale.

So, let's scroll down.

To RiverBend then.

Sue Ennis: Let's drill down into Riverbend then. As we look at Riverbend even more holistically as well, can you update us on the progress of some of those power expansion discussions with Entergy, and how is construction tracking?

Look at Riverbend, even more holistically as well. Can you update us on the progress of some of those power expansions discussions with energy. And how does construction tracking

Asher Genoot: Look, 2026 is 1,000% gonna be about execution and delivery. That's gonna be the theme of the market, in my opinion. We're super hyped for it. Construction right now is tracking according to plan. We have tight coordination with Jacobs Engineering and Vertiv. Long lead time procurement is progressing and getting manufacturing delivered. Our customer engagement is really, really high with FluidStack and Anthropic. We have many working sessions a week, multiple stand-ups on site in their offices, and really strong collaboration as we move towards delivery. The 1 GW expansion plan at Riverbend, the power is there. It's not about if, it's about when. Now we're optimizing on delivery timelines and cost scenarios in terms of collateral upfront to make sure their rate base doesn't get impacted.

Asher Genoot: We're working through different structuring paths to maximize efficiency and speed, meanwhile solving for what we're looking for and also what Entergy is trying to solve for their constituents. The focus now is simple: execute, deliver, and de-risk.

Look, 2026 is 1,000 going to be about execution and delivery. That's going to be the theme of the market in my opinion. And so, we're super hyped for its construction right now. It's tracking according to plan, we have tight coordination with Jacobs Engineering, inverted long lead, time procurement is progressing and, uh, getting manufacturing delivered. Our customer engagement is really, really high with fluid. So I can then drop it. We have many working sessions a week, multiple stand-ups on site in their offices and really strong collaboration as we move towards delivery. And the 1 gigawatt, uh, expansion plan, at Riverbend. The power is there. It's not about if it's about what. And so now we're optimizing on delivery timelines and cost scenarios in terms of collateral upfront, to make sure the rate base doesn't get impacted. We're working through different structuring paths to maximize efficiency and speed. Meanwhile, solving for what we're looking for. And also what I'm trying to solve for for

For their constituents. And so the focus now is simple execute deliver and de-risk.

Sue Ennis: How should investors think about long-term expansion opportunity at some of our other sites like Corpus Christi? Obviously, we've been seeing an uptick in pushback with respect to data centers getting done. We've seen new rules proposed out of ERCOT. How should investors think about the expansion?

So how should investors think about long-term expansion opportunity at some of our other sites like Corpus Christi. Obviously we've been seeing an uptick in push back with respect to Data Centers. Getting done. We've seen new rules, proposed out of Ott. How should investors think about the expansion?

Asher Genoot: Something I've been saying for years is we're building an energy infrastructure platform on digital infrastructure. Our edge is power-first development, and oftentimes in markets that others overlook. Our Corpus Christi site that we announced, we have an approved interconnect in ERCOT that's increasingly valuable. It was put in before all of these recent changes in batch studies. It was put in in 2023. In a changing regulatory environment, permitted power and transmission access matter more than ever. The interconnect and the permitting matrix at Corpus Christi, I think, gives us a structural advantage to be able to build quickly and gain access to power quickly. If we were using the traditional developer playbook, we wouldn't have a low redundant data center solution for Bitcoin security as our tool for underwriting as-assets.

Something I've been saying for years is we're building an energy infrastructure platform on digital infrastructure. Our Edge is power First Development, and oftentimes in markets that others Overlook. And so our Corpus Christi site that we announced we have an approved interconnected aircon, that's increasingly valuable and it was put in before all of these recent uh, changes in Bat studies, it was put in in 2023.

And the changing regulatory environment permanent power and transmission access matter more than ever, the interconnect and the payment permitting Matrix that Corpus Christi, I think, gives us a structural advantage to be able to build quickly and get an access to power quickly.

Asher Genoot: We probably would have passed on this 1 GW interconnect, like many others did. We didn't because we have multiple use cases of our MW as we develop the platform. It's really similar to what happened about a year and a half ago in Louisiana. When we first talked about the site, started marketing the site, people thought we were crazy. I thought we were early, and I think we were right. Riverbend validated the thesis of what we believe in terms of the value in the assets and the power and how much you can get at scale in the local regulatory environments that you're building this infrastructure at. Now you see that in Louisiana, you have other hyperscalers like Meta and AWS that have announced projects there as well.

So if we were using the traditional developer of Playbook we would, we wouldn't have the low redundant data center solution for Bitcoin security as our tool for underwriting as assets. And we probably would have passed on this 1 gigawatt. Interconnect um like many others did but we didn't because we have multiple use cases of our megawatts as we developed the platform, it's really similar to what happened about a year and a half ago in Louisiana, when we first talked about the site started marketing, the site people thought we were crazy. Um,

I thought we were early and I think we were right. We were invalidated the thesis of what we believe in terms of the value and the asset is in the power and how much you can get at scale in the local regulatory environments that you're building this infrastructure at. And now you see that in Louisiana, you have other hyperscalers like meta and AWS that have announced projects there as well.

Asher Genoot: I don't want the market to forget that alongside our Riverbend announcement, we also announced a strategic partnership with Anthropic. They're a partner that we continue to look at opportunities with alongside other demand signals that we've built along the last two years as well. If you look at our development pipeline, we have 8.5 GW across various stages of development. We are energy developers first. We understand grid dynamics, regulatory shifts, and permitting realities. That's what gives us confidence that we can navigate the evolving environments. It's a lot easier to go and build a large-scale data center with the dollars that we're bringing into these economies than it was developing Bitcoin mining facilities when no one wanted Bitcoin in their neighborhoods. We've navigated through different environments. We've gone through changing ERCOT procedures.

And I don't want the market to forget that alongside our Riverbend announcement. We also announced a strategic partnership with anthropic and so they're, uh, a part of that. We continue to look at opportunities with alongside other uh demand signals that we built along the last 2 years as well. And so if you look at our development pipeline, we have 8.5 gigawatts across various stages of development.

We are energy developers first. We understand grid Dynamics regulatory, shifts, and permitting realities.

And that's what gives us confidence that we can navigate the involving environments. It's a lot easier to go and build a large-scale data center with the dollars that we're bringing into these in economies than it was developing big.

facilities with no 1, wanted to do

Asher Genoot: We've done this for the last 5 years since we started the business, and this is just another hurdle that comes along the way as demand continues to increase, and we continue to show our competitive edge in developing power assets.

And so we've navigated through different environments, we've gone through changing airod uh procedures. We've done this for the last 5 years, since we started the business and this is just another hurdle that comes along the way, as the man continues to increase and we need to continue to show our Competitive Edge in developing power assets.

Sue Ennis: You often reference principles and value engineering and innovation as a core edge for Hut 8. Can you walk us through how Vega, aka delivering 180 kW direct liquid to chip at $455,000 per MW from scratch, and our co-developed infrastructure design with Vertiv that we're using at Riverbend, how do those two things reflect that philosophy and effectively position us for the future?

So you often reference first principles and value engineering, and and Innovation as a core Edge, for HUD. Can you walk us through how Vega AKA delivering 180 kilowatts direct liquid to chip at 455,000 per megawatt from scratch and our code developed infrastructure design with vertiv that we're using at Riverbend.

How, how do those 2 things? Reflect that philosophy and effectively position us for the future?

Asher Genoot: We think that no one has fundamentally challenged how data center infrastructure, I guess now AI infrastructure, is built. That's our opportunity. We reject the status quo. In the short term, there's a huge supply and demand imbalance that allows us to get deals done from a power perspective, that's our competitive mode. In the medium term, the differentiation will come from value engineering and the infrastructure stack innovation as supply and demand reach equilibrium. Vega is a great example too, because Vega, we developed 180 kW per rack direct-to-chip cooling technology earlier last year when NVIDIA was only at 120 kW per rack. The reason we did it was to show the markets we could develop that type of infrastructure as you see on the screen here.

we think that no 1 has fundamentally challenged how data center infrastructure and I guess now ai infrastructure is built and that's our

Opportunity, we reject the status quo in the short term, there's a huge supply and demand imbalance that allows us to get deals done from a power perspective. And that's our competitive mode.

And the medium-term, the differentiation will come from value engineering and the infrastructure stack Innovation as supply and demand, reach equilibrium. And so Vega is a great example to because they go we developed 180, kilowatts per rack direct to chip cooling technology.

Asher Genoot: Most importantly, we were able to develop that for $455,000 per MW. I like to tell customers that when we show them the site, that that includes the office furniture, the whiteboards, and everything, and the fit out in the data center. The reason we were able to do that is because we built the site from a grass field from scratch. There were no legacy constraints. We figured out what areas of the infrastructure stack, switch gears, PDUs, the rack and vane structures that we want to vertically integrate, design ourselves, and contract manufacture, what areas of the construction we want to self-perform and manage ourselves. That's what I'm really excited for.

Asher Genoot: Once we get the next couple of deals done and we get to a large multi-gigawatt platform in terms of data centers, how do we think about the next phase of our competitive mode? That's around innovation, and that's around value engineering. The Vertiv partnership is a good example of our early kind of stages into that. We co-designed the approach, the architecture with them and with Jacobs, to show not only supply chain visibility, but how do we take risk off of the site? How do we speed the efficiencies of these developments, these builds, so we can have them in controlled environments for a lot of the infrastructure that we're building, and how do we have long lead time and mitigation risk?

Earlier last year, when Nvidia was only at 120 kilos per rack. And the reason we did it was to show the markets. We could develop that type of infrastructure as you see on the screen here. But most importantly, we were able to develop that for 455,000 per megawatt and I like to tell customers that when we show them the site that, that includes the office furniture, the whiteboards and everything and the fit out in in, in the data center. And the reason we were able to do that is because we built the site from a grass field from scratch. There's no Legacy constraints. We figured out. What areas of the infrastructure stack switch, gears pdus the rack and vein structures that we want to vertically integrate design, ourselves, and contract manufacturer. What areas of the construction, we want to self-perform and manage ourselves. And that's what I'm really excited for once. We get the next couple of deals done and we get to a large multi gigawatt platform in terms of data center. How do we think about the next phase of our competitive mode? And that's around Innovation and that's around value engineering.

Asher Genoot: I had the opportunity to keynote Vertiv's main event, earlier in January 2024 because we believe that that's where the edge will live in the second phase as we monetize the power assets in our pipeline in this first phase. When demand and supply normalize, infrastructure efficiency will matter more and more, and I think we're perfectly positioned for that, and it's a story and a theme that people haven't really even dove in under the hood today.

Supply chain visibility. But how do we take risk off of the site? How do we speed the efficiencies of these developments these builds? So we can have them in controlled environments for a lot of the infrastructure that we're building and how do we have long lead time and mitigation risk, I had the opportunity to Keynote verto's Main Event uh, earlier in January this year because we believe that that's where the edge will live in. The second phase as we monetize the power assets in our pipeline in this first phase. And so when a demand and Supply normalized infrastructure efficiency will matter more and more and I think we're perfectly positioned for that and it's a store in a theme that people have been really even dove in under the hood today.

Sue Ennis: We're executing on large and complex infrastructure projects that require significant capital and coordination. Obviously, with that kind of scale comes risk. How are we structurally mitigating down that exposure and protecting equity if things don't go according to plan? How has your experience shaped how you got here and how you think about things like this? You talk a lot about being a credit guy. Can you elaborate on that?

So we're executing on large and complex, infrastructure projects that require significant capital and coordination.

And obviously, with that kind of scale comes risk.

How are we structurally mitigating down that exposure and protecting Equity? If things don't go according to plan,

And how is your experience?

Achieved, how you got here?

And how you think about things like this? You talk a lot about being a credit guy. Can you can you elaborate on that?

Asher Genoot: I actually don't talk a lot about being a credit guy. Sean talks a lot about me being a credit guy. He's like, you know, for your age, you're really more of a credit guy than anything else, when we talk about underwriting these sites. I think the scars that I've gained from living in kind of the business and building infrastructure around Bitcoin has really rooted us in how we think about underwriting opportunities, how we think about building the business long term. We lived through cycles, for example, in 2022, where Bitcoin prices crashes, our only revenue. Energy prices skyrocketed because Russia attacked Ukraine, and profits were squeezed, and we had fixed debt and amortization payments. I sat as a chair at UCC committees of companies going through restructuring and bankruptcy.

So I actually don't talk a lot about being a credit guy, Sean talks a lot about me being a credit guy and he's like, you know, for your age, you're really more of a credit guy than anything else and we talk about underwriting these sites. And I think the scars that I've uh gained from living in kind of the business and building infrastructure around. Bitcoin has uh really rooted Us in how we think about

Asher Genoot: We were the planned sponsor of taking Celsius out of taking a business segment they had out of bankruptcy and turning into a company. I learned firsthand meeting with creditors on what could go wrong when you're building in a hyper-growth environment and the music stops singing. That sticks with me, honestly, forever. As we think about these projects, what I always told the team is, if we have the privilege to sign a data center deal, that contract is a liability until we deliver and start generating cash flow. That's why we're so thoughtful in how we structured this deal. We didn't just want to announce a deal and then figure out the rest afterwards.

Under writing opportunities, how we think about building the business long term, we live through cycles. For example in 2022, where Bitcoin prices crashes, our only Revenue Energy prices Skyrocket because Russia attacked Ukraine and profits are squeezed and we have fixed debt and amortization payments. I sat as a chair at UCC Committees of companies going through restructuring and bankruptcy. We were the plan sponsor of taking Celsius out of, uh, uh, taking a business segments, they had out of bankruptcy and turning into a company. So I learned firsthand meeting with creditors on what could go wrong when you're building in a hyper growth environment in the music stopped singing. And so that sticks with me honestly forever. Um and so as we think about these projects, what I always told the team is if we have the privilege to sign a data center deal.

Asher Genoot: We wanted to announce a deal that was able to have financing, execution, manual labor, steel for the buildings, long lead time items, regulatory permitting, all secured when we announced it to the market. That was a key part of the timing and the things we wanted to get done. As we think about debt obligations, construction risk, power risk delivery, counterparty risk, those were all the things that we've mitigated through on long lead time contracted cash flows, creditworthy counterparties, structuring non-recourse financing, and really disciplined underwriting as we look at kind of the T's and C's of how we thought about the overall risk framework between us and our counterparties and what we were committing and what we were all receiving. I think durable credit really compounds.

That contract is a liability until we deliver and start generating cash flow. And that's why we're so thoughtful on how we structure the deal. We didn't just want to announce a deal and then figure out the rest afterwards, we wanted to announce a deal that was able to have financing execution manual. Labor steal, steal for the buildings, long lead, time, items, regulatory, permitting, all secured, when we announced it to the market. And that, that was a key part of the timing and the things we want to get done. And so, as we think about debt, obligations construction risk, power risk, delivery counterparty risks, those were all the things that we've mitigated through on Long lead time. Contracted cash flows. Creditworthy counterparties, structuring non-recourse financing and really discipline.

Asher Genoot: If you want to build a business over the long term, it's about compounding value over time and about continuously doing that. I feel like over the last 2 years we've done that, and we've already seen the rewards of those actions, and we're really just getting started. Another element that I'd like to note is if you look at our balance sheet, I think we have one of the cleanest balance sheets in the market today. If we think about the debt structure that we have, we have 3 pieces of paper at the parent level. The first is our Coatue convertible note that we did almost 2 years ago. That's heavily in the money, most likely gets converted out this year. That's the only parent recourse piece of debt we have.

Underwriting. As we look at kind of the keys and see what how we thought about the overall risk framework between us and our current parties and what we were committing and what we were all receiving. Um, I think durable credit, really compounds if you want to build a business over the long term, it's about compounding value over time and about continuously doing that. And I feel like over the last 2 years, we've done that. And we've already seen the rewards of those actions and we're really just getting started another element that I'd like to note is, if you look at our balance sheet, I think we have 1 of the cleanest balance sheets in the market. Today we if we think about the debt structure that we have, we have 3 pieces of paper at the, at the parent level.

Asher Genoot: The other two pieces that we have is one, Coinbase, which is recourse against the Bitcoin only without parent recourse. The next one is the one we have with NextEra at King Mountain, which is recourse against our equity stake in that 50% JV on the Bitcoin mining facility and does not have parent recourse. If you really think about it, with Coatue heavily in the money, we have no recourse debt on our balance sheet. We are bringing on great financing in terms of the projects. As we think about growth, we're thinking about growth and credit really, really well managed through these markets and hopefully be able to grow at a faster and faster rate.

The first is our CO2 convertible note that we did almost 2 years ago that's heavily in the money and most likely it gets converted out this year. That's the only parent recourse piece of debt. We have the other 2 uh pieces that that we have is 1 coinbase, which is recourse against the Bitcoin only without parent groups. And the next 1 is the 1. We have with dextera at King Mountain, which is recourse against our Equity stake and that 50% jv on the Bitcoin mining facility and it does not have parent recourse. And so, if you really think about it with CO2 heavily in the money, we have no recourse debt on our balance sheet, we're bringing on great financing in terms of the projects, but

As we think about growth, we're thinking about growth and credit really, really well to manage through kind of this these markets and hopefully be able to grow at a faster and faster rate.

Sue Ennis: Sean's gonna walk us through our results shortly. We're gonna do a little Q&A with him. Let's touch on a few areas in our results. G&A, for example, what drove that this year?

So Sean's going to walk us through uh our results shortly. We're going to do a little Q&A with him but let's touch on a few areas in our results. GNA, for example, what drove that this year?

Asher Genoot: Stock-based compensation aligns everyone with the long term and long-term value creation. At the company, every single person has equity, from our site level team members to the CEO, myself, and CFO Sean. Real ownership culture and skin in the game is something we've optimized from day one and continue to do so even in the public nature that we have. Total G&A was about $122.8 million this fiscal year compared to $72.9 million. Stock-based comp was around $57.8 million versus $20.8 million in the year prior. That has to do with a lot of the upscaling that we had in the investment in our engineering development institutional infrastructure team.

Asher Genoot: Cash as G&A only rose from $52 million to about $65 million in the year. That includes all of those transactions we did from the carve-out of American Bitcoin to the deals that we've done. Our belief is that we're building the team and investing in the team for the future financial profile of where we're going. A lot of the dollars we're spending are on growth, not on managing the current business, not on even executing Riverbend, on the growth of all of the sites that we're looking to execute and commercialize. We don't believe you can scale a multi-gigawatt infrastructure platform without building and training that team in advance. We're right-sizing for where we believe the company is going.

Optimized from from day 1 and continue to do. So even in the public nature that we have. And so total GNA was about 122.8 million. This uh fiscal year compared to 72.9 million stock-based comp was around 57.820% to about 65 million in the year. And that includes all of those transactions. We did from the carve out of American Bitcoin to the deals that uh, we've done. And so our belief is that we're building the team and investing in the team for the future Financial profile of where we're going. A lot of the dollars. We're spending are on growth, not on managing the current business, not on. Even executing River events on the growth of all of the sites that we're looking to execute in commercialized. And we don't believe you can scale a multi, gigawatt, infrastructure platform without building and training that team in advance. And so we're

Right. Sizing for where we believe the company is going.

Sue Ennis: Before we wrap up with you and move on to Sean, is there anything we haven't covered that you want investors to keep in mind? Specifically, there's been a lot of internal discussion around moving from simply building infrastructure for AI to actually building infrastructure with AI. How are you thinking about that evolution, and why is it strategically important for us over the long term?

So we before we before we wrap up with you and move on to Sean, is there anything we haven't covered that. You want investors to keep in mind, specifically there's been a lot of internal discussion around, moving from Simply

Building infrastructure for AI to actually building infrastructure with AI. How are you thinking about that Evolution and why is it strategically important for us over the long term?

Asher Genoot: Yeah. We're sequencing the business pretty deliberately, the next layer of advantage is technological convergence. Phase 1, which is about 1 to 2 years in my mind, is lock in the right deals, establish durable counterparties, build the right financing framework, and monetize our power capabilities. Phase 2 in the 2 to 5-year range is value engineering the infrastructure stack, driving cost down per MW, improving speed, efficiency, and repeatability. Phase 3 is more in the 5 to 10-year range, which is be at the forefront of how AI and robotics reshape infrastructure development. We're not just building infrastructure for AI. We have to be building infrastructure with AI and leveraging it to change how we think about charging our innovation cycles. We're deeply thinking about how AI integrates into our business from a workforce perspective, increasing productivity across the organization.

Yeah, um, we're sequencing the business pretty deliberately and the next layer of Advantage is technological convergence. So Phase 1, which is about 1 to 2 years. In my mind is lock in the right deals. Establish durable counterparties. Build the right financing playwork and monetize. Our power capabilities, Phase 2 and the 2 to 5 year range is value engineering. The infrastructure stack driving cost down per megawatt, improving speed, efficiency, and repeatability.

And then phase 3 is more in the 5 to 10 year range, which is do you have the Forefront of how Ai, and Robotics, reshape infrastructure development. We're not just building infrastructure for AI.

Asher Genoot: From a design and engineering perspective, I mean, hundreds of thousands of engineering hours go into these builds. AI is going to fundamentally change the way that that work can be done. We can model, simulate, and optimize every variable before capital is deployed. In the build process, we're in the early stages of exploring robotics and automation embedded directly into construction workflows. This is not a distraction. It's an awareness of where the technology curve is heading, and we intend to meet it at the moment of real inflection when it meaningfully changes how infrastructure is built at scale. That will be the next compounding layer of advantage after the first two I've spoken about earlier in this call.

We have to be building infrastructure with AI and leveraging it to change and how we think about charging our Innovation Cycles. So we're deeply thinking about how AI integrates into our business from a Workforce perspective, increasing productivity across the organization and from a design and Engineering perspective, I mean hundreds of thousands of engineering hours. Go into these builds AI is going to fundamentally change. The way that that work can be done. We can model a simulated and optimized every variable for capital is deployed. And in the bill process, we're in the early stages of exploring Robotics and automation embedded directly into Construction workflows

This is not a distraction, it's an awareness of where the technology curve is heading and we intend to meet it at the moment of real inflection. When it meaningfully changes, how infrastructure is built at scale and that will be the next compounding layer of Advantage. After the first 2, I've spoken about earlier in this call,

Sue Ennis: That's super exciting. With that foundation set, 2026 shifts us from proof to scale, right? What should investors look to from us moving forward?

2026. Shifts us from proof to scale. Right. So what what should investors look to from us? Moving forward?

Asher Genoot: 2026 is about execution and delivery, full stop. Converting the pipeline to additional contracted revenue, advancing power origination, delivering Riverbend on time and on budget, maintaining capital discipline, no trend chasing. The foundation is built. Now we execute, and we scale.

2026 is about execution and delivery. Full stop converting the pipeline to additional contracted Revenue advancing power, origination delivering Riverbend on time and on budget.

Maintaining Capital discipline, no Trend chasing the foundation is built now. We execute and we scale

All right. Now, let's move on to Sean.

Sue Ennis: All right, now let's move on to Sean. Sean, let's walk through the results. Maybe we can start with what defined fiscal 2025 performance?

Sean Sean. So let's walk through the results. Maybe we can start with what? Defined physical 2025 performance.

Sean Glennan: Yeah. Thanks, Sue Ennis. I think there's two main things that really define fiscal 2025. First, I want to talk about margin expansion and operating leverage, and second is bottom line results. On the first topic, revenue grew 45% to $235.1 million, driven primarily by our compute segment, while cost of revenue grew by 24% to $107.8 million. This resulted in gross margin expansion from 47% to 54%. I also want to highlight sequential Q4 2025 over Q4 2024 results, where revenues grew by 179% and gross margin expanded from 36% to 60%. I think each of these data points highlights and is indicative of enhanced operating leverage in the business.

Yeah, thank you. I think there's 2 main things that really, uh, Define physical 2025. Uh, first I want to talk about margin expansion and operating leverage and second is bottom line results.

Sean Glennan: In other words, the foundation is sound, and what we've set in place will compound over time. Next, moving to bottom line results. Net loss was $248 million, and we had an adjusted EBITDA loss of $135.4 million compared to net income of $331.4 million and adjusted EBITDA of $555.7 million in 2024. Importantly, I think to note that swing was largely due to a $220 million primarily unrealized mark-to-market loss in 2025 of our Bitcoin stack versus a $509.3 million gain of the prior year.

On the first topic, Revenue, grew, 45% to 235.1 million driven primarily by our compute segment while cost of Revenue, grew by 24% to 107.8 million. This resulted in gross margin expansion, from 47% to 54%. I also want to highlight sequential Q4 2025 over Q4, 2024 results, our revenues grew by 179% in gross margin expanded from 36 to 60%. I think each of these data points highlights and is indicative of enhanced operating leverage in the business. In other words, the foundation is sound and what we've set in place will compound over time.

557 555.7 million in 2024.

Importantly, the thing to note that swing was largely due to a 220 million primarily unrealized mark-to-market loss in 2025 of our Bitcoin stack versus a 509.3 million gain of the prior year.

Sue Ennis: Thank you. Now let's walk through segment by segment. Can you walk us through the power digital infrastructure and then compute segment results?

Thank you. Now let's walk through segment by segment. Can you walk us through the power? Digital infrastructure and then compute segment results.

Sean Glennan: Absolutely. In our power layer, revenue was $23.2 million versus $56.6 million in 2024. Cost of revenue declined to $20.5 million from $21.5 million the year prior. The revenue decline reflects the termination of our Ionic Digital agreement in managed services. This was somewhat offset by increased revenues in our former segment due to increasing power market tightness, which I think that power market tightness is kind of some of the fundamental underpinnings of the business. It's showing up in other places too. On digital infrastructure, revenue was $9.6 million compared to $17.5 million last year. Cost of revenue declines to $8.9 million from $15.6 million last year.

Absolutely, and our power layer Revenue was 23.2 million versus 56.6 million. In 2024 cost of Revenue decline to 20.5 million from 21.5 million to your prior, the revenue decline, reflects the termination of our ionic, digital agreement and managed services. This is somewhat offset by increased revenues that our foreigners segment due to increased increasing power Market tightness, which I think that power Market tightness is kind of some of the fundamental underpinnings of the business. So it it's showing up in other places too.

Sean Glennan: Margins improved sequentially as Vega entered commercialization, and we transitioned to co-location-based payments from American Bitcoin. Finally, compute. This was the real growth engine. Revenue more than doubled to $202.3 million from $80.7 million the year prior. Cost of revenue increased to $78.4 million from $45 million in the year prior. This is driven by infrastructure upgrades, higher deployed hash rates, and a full year of steady-state operations of Highrise AI, which added $7.4 million year over year. I think important to note also as we talk about operating leverage, here segment margins expanded from 44% to 61%.

Uh on digital infrastructure, Revenue was 9.6 million compared to 17.5 Million last year, cost of Revenue, declines to 8.9 million from 15.6. Million last year, and margins improved sequentially. As Vega entered commercialization and we transitioned to co-location based payments from American Bitcoin. And finally compute, this was the real growth engine. Um, Revenue more than doubled to 202.3 million from 80.7 million.

Year prior cost of Revenue increased to 78.4 million from 45 million in the year prior. And this is driven by infrastructure upgrades higher deployed hash rate. And a full year of steady state operations of high-rise AI, which added 7.4 million year over year. I think important to note. Also from as we talk about operating leverage here, segment margins, expanded from 44% to 61%

Sue Ennis: Thank you. Now let's get into capital structure and strategy. How are we thinking about our capital structure evolution?

Thank you. Now, let's get into capital structure and strategy. How are we thinking about our capital structure of evolution?

Sean Glennan: I think 2025 was an incredibly important year for capital structure evolution. Spinning out our Bitcoin mining business through our American Bitcoin subsidiary shifted us from a very high cost of capital, high CapEx cyclicality business to a much lower cost of capital business with a lot more focus on infrastructure of low cost of capital, lower risk and longer duration.

Yeah, I think 2025, as we can incredibly important year for capital structure Evolution. Um,

Spinning out, our Bitcoin mining business through our American Bitcoin. Subsidiary shifted us from a very high cost of Capital, High Capital, High Capacity to locality business, to a much lower cost of capital uh business uh with a lot more uh focus on infrastructure of low cost of capital uh lower risk and longer duration.

Sue Ennis: Okay, heading into 2026, what are some of your top financing priorities?

Okay, and then heading into 2026. What are some of your top financing priorities?

Sean Glennan: Yeah, I think about this. This is what I spend most of my day thinking about. As I think about looking into 2026, there's 4 main things I'm really focused on. 1 is protecting shareholder value through disciplined equity use. 2 is minimizing enterprise risk. 3, diversifying liquidity sources, including private markets. 4, maintaining a strong balance sheet that allows for strategic flexibility and a path towards an investment-grade rating. I think one thing that's important to note is we continue to evaluate all financing options, and we say no to a lot of things. We're not just trying to get capital wherever it's available.

yeah, I think about this is what I spend most of my days thinking about and, uh,

Looking into 2026. There's there's 4 main things. I'm really focused on 1 is protecting shareholder value through disciplined. Equity, use 2 is min minimizing Enterprise risk 3 diversifying, liquidity sources, including private markets and for maintaining a strong balance, sheets that allows for strategic flexibility and a path towards an investment grade rating. I think 1 thing that's important to note is

Sean Glennan: We're looking for the lowest cost of capital and, you know, probably get 10 things across my desk every day, most of which I say no to, because we want to continue to drive that and be innovators on capital structuring rather than just following the pack.

We continue to evaluate all financing options and we say no to a lot of things. We're not just trying to get Capital wherever it's available. We're looking for the lowest cost of capital and uh, you know, we probably got 10 things across my desk every day, most of which I say no to, um, because we we we want to continue to drive that and be innovators on the capital structure and rather than just following with that

Sue Ennis: To wrap up, how would you, as the CFO, summarize our position heading into 2026?

So then to wrap up, how would you as the CFO summarize our position heading into 2026?

Yeah. So

Sean Glennan: I mean, it's amazing to think relative to when I joined a year and a half ago where we are entering 2026. We have greater scale, both from an exahash market cap and future cash flow position. We have improved margin durability, which I think the numbers speak for themselves. We have declining cost of capital, and I think the project financing we're working on with JPMorgan and Goldman Sachs is indicative of that. That's the lowest cost of capital that anyone in our sector has raised to support AI infrastructure growth to date. I think, as I kind of mentioned in your first question in this section, a capital structure that's aligned with long-term value creation.

It's amazing to think relative if you want to join uh, a year and a half ago where we are entering 2026, we have greater scale. Uh both from an exahash market cap, a future cash flow position. We have include improved margin durability, which I think the numbers speak for themselves, we have declining cost of capital and I think the the uh the project financing we're working on with JP Morgan and Goldman Sachs is indicative of that. That's the lowest cost of capital that anyone in our sector has raised to support uh AI infrastructure growth to date. And then I think,

As I kind of mentioned in the, in the, in your first question, this action, the capital structure that's aligned with long-term value creation. Uh, and and I think those are the things that uh

Sean Glennan: I think those are the things that are really kind of setting us apart, and it's very exciting to be in this position that we feel grateful to our shareholders for entrusting us with their capital as we go into 2026. With that, I think we'll go into Q&A.

are are really kind of setting us apart and it's very exciting to be in this position that we build grateful to our shareholders for entrusting us with with their Capital as we go into 2026.

So with that, I think we'll go into a Q&A.

Yeah, let's go into the Q&A here.

Sue Ennis: Yeah, let's go into the Q&A here.

Well, Sue looks at some of the questions.

Asher Genoot: While Sue looks at some of the questions, we want to shake things up this earnings a little bit, go on a video style. We'll get feedback from our investors if they enjoy today or not. If we keep to the video format, I want to be able to hear people when they ask questions, and we talked a bit about that. As we set up this first structure, Sue's going to kind of read the answers that people are submitting. We weren't able to with the platform today, be able to allow for that for today. If people like this current format, then I really want to hear them and see them if possible as well. We'll look at that on the next earnings calls.

Asher Genoot: Hopefully, you guys enjoy the new shakeup here and approaching this from first principles as well. Our goal was to use this call to have you to really get to know us, get to know how we think about the world, how we think about problem-solving. You guys can look at our financials and our business through our public filings, but the purpose of this call when we really broke it down from first principles was speaking to our shareholders in a very direct, honest, transparent way. We hope this new format helps drive closer to that as well.

Hear people when they ask questions and we talked a bit about that and as we set up this first structure, uh, Sue is going to kind of read the answer that people are submitting. We weren't able to with the platform today, be able to allow for that for today, but if people like this current format, then I really want to hear them and see them if possible as well. So we'll look at that, on the next earnings calls. But hopefully, you guys, uh, enjoyed the new, uh, shake up here in a protein, this from first principles as well, uh, our goal was

To use this call to have you to really get to know us. Get to know how we think about the world, how we think about problems solving, uh, you guys can look at our financials and our business through our public filings. But the purpose of this call, when we really broke it down from first principles was speaking to our shareholders and very direct honest transparent way. And we hope, uh, this new format helps Drive closer to that as well.

Sue Ennis: Okay. Let's get into it. From Greg Miller at Citizens: Will the company be defining what portion of its pipeline will be allocated to Bitcoin mining and what percentage will be allocated to HPC, as the two represent very different value propositions?

Okay, so let's get into it. So from Greg Miller at citizens will the company be defining, what portion of its pipeline will be allocated to Bitcoin mining and what percentage will be allocated to HBC as the 2 represent. Very different value propositions.

Asher Genoot: That's very fair. If we look at our existing capacity under management, in the gigawatt that we're managing today, we have the 300 MW of power generation that we've told the market that we're selling to TransAlta, and that we've closed on that transaction, and we have 700 MW of compute that currently support American Bitcoin. In our capacity under construction, we have 330 MW of utility that's Riverbend phase I. We have a multi-gigawatt pipeline as you go further and further up the development cycle. Currently, the core focus is converting those sites for AI use cases.

That's very fair. If we look at our existing capacity under management in the gigawatt that we're managing. Today, we have a 300 megawatts of power generation, that we've told the markets that we're selling to transalta and we have and that we closed on that transaction. And we have 700 megawatts of compute that currently support American Bitcoin.

Asher Genoot: Having Bitcoin as an alternative use case allows us to continue to develop confidently in building the substations on the land that we acquire and interconnections, knowing that we'll have a consumer there in all scenarios rather than just have risk development capital. I think that's a unique edge that we have. Our key focus around our current full development pipeline is around AI utilization and development, and we're seeing more and more focus on just power at scale and location really being a lower and lower factor in that as well. As we talk about all of the sites that we're developing right now, the primary goal is development around traditional data centers for AI computing.

In our capacity, under construction, we have 330 megawatts of utility, that's River vent, Phase 1, and then we have a multi gigawatt pipeline as you go further and further up the development cycle. And So currently the core focus is converting. Those sites for AI, use cases having Bitcoin as an alternative use case allows us to continue to develop confidently in building, the substations, on the land, that we acquire and interconnections. Um, knowing that we'll have a consumer there and all scenarios rather than just have risk development capital, and I think that's a Unique Edge that we have. So, our key Focus around our current full development pipeline is around AI utilization and development. And we're seeing more and more focus on just power at scale and location really being a lower and lower factor in that as well. And so, uh, as we talk about all of the sites that were delve developing right now, the primary goal of the development around traditional data centers for AI computing.

okay, so George Sutton from Craig, how

Sue Ennis: Okay. George Sutton from Craig-Hallum: Can you give any detail behind the $163 million deposit for future sites?

63 million deposit for future sites.

Yeah. Uh Sean. You want to jump into that?

Asher Genoot: Yeah. Sean, do you wanna jump into that?

Sean Glennan: Sure. As we look at kind of developing some of the future sites, we have lots of land options and we're also procuring long lead time equipment at some of these sites. I don't wanna get into the detail as to how much USD are for which sites, I think that'll give away some of our secret sauce to our competitive industry. Effectively, that's kind of what the those USD are allocated towards.

Asher Genoot: One key thing to know in how we approach development. Historically, and moving forward, when we think about risk dollars out there, whether it be land options or it be developing, we've historically been very, very low upfront until there's real feasibility, right? A big portion of those long lead time items are malleable pieces of equipment that we can allocate specifically around high to medium voltage breakers at the substation, different transformers once we step things down to 34.5 kV. Malleable infrastructure that we can allocate across multiple campuses. The investments we do at the early stage of development are really lower in terms of development, unless it's a CIAC payment or an infrastructure upgrade as we lock in the power.

Sure. So, as as we look at, um, kind of developing some of the future sites, we have lots of land options and uh, we're also procuring long lead, time equipment at some of these sites. So I don't want to get into the details of how much dollars are for which sites. I think that'll give away some of our secret sauce. So our competitive industry but effectively that's kind of what the uh those dollars are allocated towards in 1 key thing to uh knowing how we approach development.

Historically and moving forward.

Asher Genoot: As we see collateral payments kind of increasing, we're also looking at other kind of project-level financing and balance sheet borrowing that we're looking at doing to drive down our cost of capital as well. We're very, very thoughtful in what dollars we're spending, what's truly at risk, and what's malleable.

When we think about risk dollars out there, whether it be land options or it be developing, we've historically been very very low upfront and so there's real feasibility, right? So a big portion of those long lead. Time items are malleable pieces of equipment that we can allocate specifically around High to medium voltage Breakers at the substation different Transformers. Once we set things down to 345 KV and so malleable infrastructure that we can allocate across multiple campuses and then the Investments we do at the early stage of development are really lower in terms of development. Unless it's a kayak payment or an infrastructure upgrade as we walk in the power. Um, and as we see collateral payments kind of increasing, we're also looking at other kind of project level financing and balance sheet borrowing that we're looking at doing to drive down our cost of capital as well, but we're very, very thoughtful in what dollars we're spending. What's truly at risk and what's malleable

Sue Ennis: All right. From Brett at Cantor: You guys effectively set the market with your FluidStack and Profit deal. Can you talk about how pricing has changed since then? Do you think the next deal will see a step up in economics?

All right, so from Brett at Cantor, you guys effectively set the market with your fluid sac and drop a deal. Can you talk about how pricing has changed since then? Do you think the next deal will will see a step up in economics.

Asher Genoot: I don't think we set the market. I think the majority of transactions in the market happen in the private markets. Everyone's kind of focusing on the public companies, but I feel like 80% plus of the transactions are happening in the private markets with kind of the private equity-funded development platforms on the data center side. I think our deal was market. It was middle of the fairway, and it was structured appropriately. As we continue to talk to customers about the deal and deal economics, we think that these are kind of market terms in the private markets, and we've held ourselves to the standard of a blue-chip data center development company. I think I've brought in the partners to validate that thought process and that approach as well.

Uh of a blue chip data center development company. I think I brought in the partners to validate that uh thought process and uh that approach as well.

Sue Ennis: Okay. From Stephen Glagola at KBW: A recent job posting pointed to a potential scale-up of the Highrise AI GPU platform from roughly 1,000 GPUs to 20,000. Can you provide more detail on your growth plans for the Highrise AI Cloud business, and how do you envision scaling that trajectory?

Okay, so from Steven goula at kvew, a recent job posting pointed to a potential scale up of the high-rise AI GPU platform from roughly 1,000 gpus to 20,000.

Can you provide more details on your growth plan for the high-rise, AI Cloud business, and how do you envision scaling that trajectory?

Asher Genoot: Hut 8, the parent company, builds in the power layer and builds in the digital infrastructure layer. Front of the meter, behind the meter interconnects. Obviously, we own power generation, and we build digital infrastructure on top of that, i.e., the Riverbend campus we announced. In a lot of these deals, there's an opportunity where we can fund the compute as well. Funding compute in ASICs on the American Bitcoin side or in GPUs on the AI side are fundamentally different costs and risk profiles, which is why those businesses are separate companies. ABTC being a public company now on its own, and then Highrise still being a private company that is growing. What's really unique about Highrise, we've been pretty quiet about it because we've been building the foundation of that business.

So, hot 8. The parent company builds in the power layer and builds in the digital infrastructure layer, front of the meter behind the meter interconnects. Obviously we own power generation and we build digital infrastructure on top of that. Uh, IE the Riverbend campus. We announced

Asher Genoot: The story isn't we're managing a little over 1,100 GPUs. The story is we built a cloud network. We built a software stack. We offer bare metals. We offer multi-tenant solutions. We announced this in one of our press releases in Highrise, but the current CTO of that business ran AI in the IDF and was there for a decade and a half. As we look at different opportunities, there are opportunities in these data center deals where Highrise can come in and provide the financing around the GPU stack, provide the services and technologies that I can build on top of the chip stack as well. Highrise is our new cloud business.

And a lot of these deals, There's an opportunity where we can fund the compute as well, but funding compute in A6 on the American Bitcoin side or in gpus on the AI side are fundamentally, different costs, and risk profiles, which is why those businesses are separate companies. Abtc being a public company now and on on its own, and then high-rise still being a private company. That is growing. And so, what's really unique about high-rise, we've been pretty pretty quiet about it because we've been building the foundation of that business, it's not just the story isn't, we're managing a little over. Uh, a 1100 gpus. The story is we built a cloud Network. We built a software stack we offer bare Metals, we offer multi-tenant Solutions. And we announced this in 1 of our

Asher Genoot: It's one that we haven't spoken much about because, as everyone knows, we're much more about talking about things when they come into fruition rather than what's on the come. Across the whole board, we are building the company and hiring people to the place that we're going, and that's where you see a lot of that investment in talent into the business that we're going to be building and scaling into.

Press releases and high-rise. But the current CTO of that business, ran AI in the IDF and was there for a decade and a half. And so, as we look at different opportunities, there are opportunities in these data center deals where high-rise can come in and provide the financing around the GPU Sac, provide the services and technologies that I can build on top of the uh chip stack as well. And so high raises our Neo Cloud business. It's 1 that we haven't spoken much about because as everyone knows we're much more about talking about things when they come into fruition rather than what's on the come. Um, but

Across the whole board. We are building the company in hiring people to the place that we're going and that's where you see a lot of that investment and talent into the business that we're going to be building and scaling into

Sue Ennis: Okay, another one from George here, that I really like because I don't think we talk enough about this in the market. Anthropic is a mega disruptor in the space. How important is our existing relationship with them as part of the phase two and phase three opportunities?

Okay, so another 1 from George here uh that I really like because I don't think we talked enough about this in the market. So anthropic is the major is a mega disruptive disruptor in the space. How important is our existing relationship with them? As part of the phase 2 and phase 3 opportunities,

Asher Genoot: They're great, right? They're very open to thinking about things from a first principles approach. It's not a company where we have to do it this way just because. It's a company where we can talk about what are we trying to solve for and what is the best way to be able to solve for that. If we think about phase one, give additional capacity, get additional power converted for our customers. Phase two is how do we drive down costs with really thinking about value engineering? Value engineering is two ways. One is, how do we engineer and more efficiently drive the cost down for our existing infrastructure stack? The second is, how do we think about the actual demands that a customer has? Which is also why we have Highrise, to understand the full stack from electron to compute, from megawatt to token.

They're great, right? Uh, and they're very open to thinking about things from a first principles approach. It's not a company where we have to do it this way, just because it's a company where we can talk about, what are we trying to solve for? And what is the best way to be able to solve for that? So if you think about Phase 1,

Give additional capacity, get additional power, converted for our customers Phase. 2 is, how do we drive down costs with really thinking about value? Engineering and value? Engineering is 2 ways. 1 is, how do we engineer in more efficiently Drive the cost down for our existing infrastructure stack? The second is how do we think about the

Actual demands. That a customer has.

Asher Genoot: By understanding that, we can more optimize the infrastructure to support for really what's needed, and we can have open discussions, and discussions with Anthropic have been great in terms of solutions and malleability over how things are built to get to the final outcome. The last one in terms of AI and robotics, obviously, that they're at the forefront of building the technologies that support all industries. We're excited to continue to build those relations and compound, but I'm really, really excited for phase III. We have to build phase I and II to have the privilege for me to work on phase III. This year we'll be focused on phase I and really scaling up our data center platform.

Which is also why we have high-rise to understand the full stack from electron to compute from megawatt to token. And so by understanding that we can more optimized, the information to support for really what's needed. And we can have open discussions and discussions with anthropologists have been great in terms of solutions and uh, malleability over, how things are built to get to the final outcome and the last 1 in terms of AI and Robotics, obviously that they're at the Forefront of building the technologies that support all Industries. And so we're excited to continue to build those relations and compound. But I'm really really excited for phase 3. Uh, we have to build Phase 1 and 2 to have the privilege for me to work on phase 3. Uh but this year you'll be focused on Phase 1 and really scaling up our data center platform.

Sue Ennis: I got one here from Kevin Dede at H.C. Wainwright & Co. Trump in his State of the Union last night asked big tech to commit to building their own power. How do you think your customers, partners, and Hut 8 will react to that should it become law?

So I got 1 here from Kevin deeb at HC Wing, right. Trump in his State of the Union last night, asked the big Tech Ask big Tech to commit to building their own power. How do you think your customers partners and Hut 8 react will react to that should it become law?

Asher Genoot: It's a natural progression of where things are going. If we think about the overall sentiment and what should happen right now is when a data center is built, that should be net positive to the community and the environment and the actual energy grids that you're impacting, right? When we think about sites like Riverbend or Corpus Christi, we pay for the system upgrades that pull the power to where we are. We commit to the capacity on the energy side. That's kind of table stakes in my mind in the world that we're developing today. Smaller utilities have gotten infinitely more sophisticated on that, which is where you see kind of collateral coming in. I think in some places it's getting over-indexed, and we'll kind of come back to the mean. In general, that's the general sentiment.

Asher Genoot: As power generation gets constrained, as more and more demand comes onto the grid, I think what you'll see more often is not islanded generation or bridge generation, where you kind of wait for the interconnect. When you're building a load asset, you want the redundancy from the grid. There is value in that. When building a generation asset, you want the grid and the demand that's in the grid for the power. What I think more and more what will happen in the market is people will bring load, and people will bring generation, and so they'll try to kind of have a net equal impact into the grid, but interconnect that all in the long term. You'll have power generation increasing in the grid. You have load increasing.

Asher Genoot: A lot of that will be financed and capitalized through the demand of the end customers and users. We think that's the best way to be able to scale and compete in the AI race on the global markets.

Collateral coming in, I think in some places it's getting over indexed and we'll kind of come back to the means. But in general, that's the general sentiment. As power generation, it gets constrained as more and more demand comes onto the grid. I think what you'll see more often is not Islander generation or Bridge generation where you kind of wait for the interconnect. But when you're building a load asset you want the redundancy from the grid. There is value in that when building a generation asset you want the grid and the demand that's in the grid for the power. And so what I think more and more what will happen in the markets is people will bring loads and people will bring generation. And so they'll try to kind of have a net equal impact into the grid but interconnect that all in the long term. And so then you'll have power generation increasing in the grid. You have load increasing. A lot of that will be financed and capitalized through the demand of the end, uh, customers and users. And we think that's the best way to be able to scale and compete in the AI race on a global markets.

okay, so from John

Sue Ennis: Okay. From John Todaro at Needham. Can you walk us through where you stand on the OSA negotiations with FluidStack and, more broadly, give us an update on construction cadence, how many data halls are in the initial phase, and are you seeing any supply chain or contractor bottlenecks? Maybe we can talk about where we're at as well, on the procurement side at Riverbend.

Where you stand on the Ossa, negotiations with fluid stack and more broadly give us an update on construction Cadence how many data halls in the initial phase and are you seeing any supply chain or contractor bottlenecks maybe we can talk about where we're at as well. Uh on the procurement side at Riverbend.

Asher Genoot: Sure. Happy to do so. When we announced the deal, everything we locked in, from people, contractors, long lead time items, equipment, all that was locked in. There was nothing open when we announced the deal at the end of last year. On the delivery and the execution itself, as we mentioned, and we guided towards, in the beginning of Q2, we'll have the first data center coming online, we'll have a data center coming online every 60 days thereafter. There are 4 data centers in this data hall. As we think about the actual construction right now, everything's going really, really well. People are very excited. There's a lot of local talent in Louisiana because of the heavy industry that was there before, that's really, really great. Jacobs has been a great partner.

Asher Genoot: Vertiv is fully cranking on the long lead time items that they're delivering and procuring for this project. Overall, from a constructability and delivery perspective, feel very, very good. We gave ourselves a healthy timeline to deliver this as well. We're not scrunching every single thing. We put buffer in. We hope to deliver earlier if we can. That's how we've really developed this program. From a financing perspective, things are going very well as well. We had announced that we're going to target 85% LTC at a SOFR plus 2.25 rate. We've recently been able to improve that to 90% LTC at SOFR plus 2.40 to account for the increased loan-to-cost ratio. We've been able to get more project financing on the project.

Sure happy to do. So, when we announced the deal, everything we locked in from people Contractors, Long lead, time, items equipment, and so all of that was locked in there was nothing open when we announced deal at the end of last year on the delivery and the execution itself as we mentioned and we guided towards well in the beginning of Q2, we'll have the First Data Center coming online and then we'll have a data center coming online. Every 60 days thereafter, there are 4 data centers in this data Hall. And so, as we think about the actual construction right now everything's going really, really well, uh, people are very excited. There's a lot of local talent in Louisiana because of the heavy industry that was there before. And so that's really, really great. Jacobs has been a great partner vertiv is fully cranking on the long lead time items that they're delivering and preferring for this project. So overall from a constructibility and delivery perspective feel very very good and we gave ourselves a healthy timeline to deliver this as well. And so we're not scrunching every single thing. We we put buffer in, we hope to deliver early.

Earlier that if we can. And so that's how we've really developed this program. From a financing perspective, things are going very well as well. We had announced that we're going to Target, 75% El, uh, 85%, LTC at it. So, for plus 225 rate, we've recently been able to improve that to 90%. LTC at Silver plus 240 to account for the increased uh uh loan to cost ratio. But we've been able to get more project financing on the project and something that Sean and I like to talk about even when a deal is done, we

Asher Genoot: Something that Sean and I like to talk about, even when a deal is done, we still like to further improve and figure out how to make it better. Overall, in terms of delivery, feeling very, very good. We're currently in active negotiations on the OSA in terms of operations and delivery, but we have some time until we actually are operating the campus, so working through those kind of contracts now as well.

Still like to further improve and figure out how to make it better. Um, and so overall in terms of delivery feeling very very good. We're currently an active uh, negotiations on the Ossa, in terms of operations and delivery, but we have some time in until we actually are operating the campus. So working through, uh, those kind of contracts. Now, as well.

Okay, so maybe just to piggyback on that.

Sue Ennis: Okay. Maybe just to quickly piggyback on that, from one of our new friends, Robert Boucai at Newbrook. In considering future deals, do you require credit enhancements as with Google on the FluidStack deal, or would you be willing to have one of the LLMs be a counterparty? How much of a gating issue would this be?

Hansen as with Google on the fluid stack deal, or would you be willing to have 1 of the llms the accountability? How much of a gating issue would this be?

Asher Genoot: I think overall it's really thinking about our overall platform that we're building and the exposure that we're taking on investment-grade counterparties, on non-investment grade counterparties, and really everything kind of in between. As we think about developing our platform, we want to make sure that the cash flows that we have and that we're projecting to be able to fund the growth and the expansion of our business are durable and are reliable. Obviously, that affects cost of capital and financing and LTCs as well. As we look at future growth opportunities, we're obviously optimizing towards investment-grade counterparties. It's really about like any portfolio anyone has, including all the shareholders on this call, it's about risk allocation. What percentage of your platform is on high growth, high risk companies that have a ton of upside?

Asher Genoot: What percentage is on stability on the platform as well? I think for us it's not binary. It has to be this or that, but it's around risk allocation. Obviously, as we've kind of told and shown the market, we have a heavy lenience towards folks with investment-grade counterparty and as we think about financing on the debt and the equity investments as well. There's always a place in the portfolio for high growth companies as well. It's all about percentage exposure that we have to them. Every time we announce a deal, we'll walk through the thought processes in those. Right now continue to be focused on investment-grade counterparties that we're financing towards.

I think overall it's really thinking about our overall platform that we're building and the exposure that we're taking on investment grade counterparties, on non-investment grade counterparties, and really everything kind of in between. And so, as we think about developing our platform, we want to make sure that the cash flows that we have. And that we're that we're projecting to be able to fund the growth in the expansion of our business, our durable, and our reliable, and obviously that affects cost of capital and financing and ltc's as well. And so, as we look at Future growth opportunities, we're obviously optimizing towards investing great counterparties, but it's really about like any portfolio anyone who has including all the shareholders on this call. It's about risk allocation. What percentage of your platform is on high growth, high risk, companies that have a ton of upside, what percentage is on stability, um, and on the platform as well. And so, I, I think, for us, it's not binary.

It has to be this or that, but it's around risk. Allocation and obviously, as we've kind of told and shown the market, we have a heavy, uh, lenient towards folks with investment grade counterparty, and as we think about financing on the debt and the equity Investments as well, um, but there's always a place in the portfolio for high growth companies as well. But it's all about percentage exposure that we have to them. And every time we announced a deal, we'll walk through the top processes in those. Uh, but right now continue to be focused on investment grade counterparties that we're financing towards.

Sue Ennis: Okay. Question from Mike Grondahl at Northland. Can you describe the demand environment and how it's evolved over the last 90 days for HPC? Obviously, there's quite a few new dynamics that have transpired in the market. How has that evolved in terms of your guys' customer conversations?

um okay, so question from Mike gondel at North

How it's evolved over the last 90 days for HBC. Obviously there's there's quite a few new dynamics that have transpired in the market. So, how has that? How is that evolved? In terms of your guys, customer conversations?

Asher Genoot: It's really interesting. I mean, last year around the same time, the DC news came out, right? Everyone was scared that the demand is gone, and the markets were scared. The market obviously traded down a lot. The reality is, at that time, we were still seeing the demand and demand signals, and you saw a heavy uptake towards the end of the year. I think right now, especially with the agentic AI and a lot of I mean, the Mac mini are sold out across the US. If we looked at Highrise AI, the utilization on our cloud is at record highs. The actual applications and use cases are continuing to grow and increase and tick up. I think that will result in the compute that's needed.

Asher Genoot: Where we are today is also a little bit different than where we were last year. We have much deeper relationships with a variety of counterparties because of the last 2 years of relations that we built. We've gone through a lot of negotiations on the actual contracting of multiple counterparties. We've gone through engineering, design drawings for months with multiple counterparties. Riverbend wasn't 1 counterparty that we worked with for a year and a half. We went through multiple iterations with multiple counterparties, and we had 1 that got to the finish line first. Those relationships are stronger than ever.

So it's really interesting. I mean last year around the same time, this DC news came out right. And everyone was scared that the demand is gone and the markets were scared. The markets off is traded down a lot, but the reality is at that time, we were still seeing the demand and demand signals and you saw a heavy uptake towards the end of the year. I think right now especially with the gentic AI and a lot of, I mean, the Mac minis are sold out across the us. If we looked at high-rise the utilization on our cloud is at record highs. And so the actual applications and use cases are continue to grow and increase and pick up and I think that will result in the compute that's needed. And so where we are today is also a little bit different than where we were last year, we have much deeper relationships with a variety of counterparts, because of the last 2 years of relations that we built. We've gone through a lot of negotiations on the actual Contracting of multiple counterparties. We've gone through engineering, uh, design drawings for months with multiple account parties. Rubber band wasn't 1 counterparty that we worked with for a year and a half, we went through multiple.

Asher Genoot: What's nice with where we are today and the credibility that we have as well is we can have a lot more frank and meaningful discussions around what is their capacity demand over the long term, how do we play into that, how do we support them? For us, I'm honestly paying less attention to the stock market these days and spending way more time on the customers, what are their demands, and how do we build the competitive moats. That is what's going to drive our business and grow and compound over time. I think all the noise you're seeing, we're seeing really the exact opposite. The demand is still there. The demand is still strong. People are still growing. You see that with some of the announcements like yesterday with Meta and AMD in terms of additional capacity.

Asher Genoot: They just announced a deal with NVIDIA before that. Overall, I think demand is healthy. A bigger theme that we're seeing that's real is that power is becoming more constrained, right? You're seeing every utility, every transmission operator trying to go through and restudy and change the approach that they're going in terms of the studies. I think that's healthy as well because you have so many developers that may not have the balance sheet or the capabilities to actually develop sites, and all they're trying to do is lock in an interconnect and then flip it to someone else to buy it. Sean talks about getting 10 inbounds on financings. We probably get 100 inbounds on sites for us to look at from an M&A perspective.

Iterations with multiple counterparties and we had 1 that got to the Finish Line first and so those relationships are stronger than ever and what's nice with where we are today and The credibility that we have as well, is we can have a lot more Frank and meaningful discussions around what is their capacity to manage over the long term? How do we play into that? How do we support them? And so for us, um, I'm honestly paying less attention to the stock market these days and spending way more time on the customers, what are their demands and how do we build a competitive modes because that is what's going to drive our business and grow and compound over time. But I think all the noise you're seeing, we're seeing really the, uh, exact opposite that the man is still there. The man is still strong. People are still growing. You see that with some of the announcements, like yesterday with meta and AMD in terms of additional capacity, they just announced a deal with Nvidia before that. Um, and so overall, I think the man is healthy uh a bigger theme that we're seeing that's real is that power is becoming more constrained, right? You're seeing

Asher Genoot: Clearing out some of that FUD, I think will actually make the queues better. Also from a development perspective in terms of land development, you're seeing some places that don't want this in their backyards and some places that do. I think you're seeing consistent, strong demand on the demand side. I think you're seeing kind of volatility on the supply side in the markets which make us excited.

Every utility every transmission, operator trying to go through and restudy and change the approach that they're going in terms of the studies. And I think that's healthy as well. Because you have so many developers that may not have the balance sheet or the capability to actually develop sites and all they're trying to do is lock in an interconnect and then flip it to someone else to buy it. We get Sean talks about getting 10 inbound on financing probably get a 100 inbounds on sites for us to look at from an m&a perspective and so clearing out some of that bud. I think we'll actually make the cues better. Um and then also

From a development perspective. In terms of Land Development, you're seeing some places that don't want this in their backyards, in some places that do. And so, uh, I think you're seeing consistent strong Demand on the demand side and then I think you're seeing kind of volatility on the supply side in the markets, which make us excited.

Sue Ennis: Yeah, agree. We support any sort of initiative that helps trim some of the fat in these queues. Also, education is key in some of these new markets where we're seeing stakeholder pushback for data center development. From our friend Greg Lewis at BTIG, he wants to know what I'm sure a lot of people want to know, is any update on the power that is under exclusivity and steps and processes needed to move that into development? Doesn't seem like we saw a lot of that happen in the current queue.

Yeah, agree. We support any sort of initiative that helps trim some of the fat in these cues and also education is key in some of these new markets where we're seeing uh stakeholder push back for data center development. Okay, so from our friend,

Greg Lewis at btig, he wants to know what I'm sure a lot of people want to know, is any update on the power that is under exclusivity and steps and processes needed to move that into development.

Doesn't seem like we saw a lot of that happen in the current queue.

Asher Genoot: Currently working through it. We obviously have a pretty big amount of capacity in development right now. Trying to move that into commercializing and signing those agreements and signing them. 'Cause if you think about our stages in the pipeline, we go from capacity under diligence, which is we have a large energy origination development team, and they're out there, they're hunting, they're negotiating, and they're looking at opportunities that make sense for us. We get into capacity under exclusivity. That's where we're investing more dollars from a team perspective and legal dollars perspective as well. In those scenarios, we have exclusivity, land options. We're investing into legal resources, pre-construction resources, high voltage transmission engineering resources.

Yeah. Uh, currently working through it, we obviously have a pretty big amount of capacity in development right now. So trying to move that into commercializing and signing those agreements and signing them. Because if you think about our stages in the pipeline, we go from capacity under diligence which is we have a large energy, origination development team and they're out there, they're hunting, they're negotiating and they're looking at opportunities, that make sense for us.

Asher Genoot: When we get into capacity under development, that's when we're actually buying the land or locking in the kind of contractual agreements on the power and putting in the tie payments or any collateral obligations. Then from there, we go into commercialization, construction, and then ultimately management and operations. I think we have a strong amount of MW, over 1 GW in capacity under development right now that we're working on commercializing, and the capacity exclusivity will kind of be following that as well. If you think about timing, capacity, and exclusivity, we have an exclusive access on that opportunity, whether it be the land, the power, or both. In that scenario, like, why go and spend the money if you still have option value there and work on commercializing the things that you already spent money on?

Then we get into capacity and to exclusivity that's where we're investing more dollars from a team perspective and legal dollars perspective as well and those scenarios we have exclusivity land options. We're investing into legal resources, pre-construction resources, high voltage transmission, engineering resources. And then when we get into capacity under development that's when we're actually

Buying the land or walking in the kind of contractual agreements on the power and putting in the kayak payments, or any collateral obligations. And then from there, we go into commercialization construction, and then ultimately management and operations. And so I think we have a

Strong amount of megawatt over a gigawatt and capacity and development. Right now that we're working on commercializing and the capacity, exclusivity will kind of be following that as well. And so, if you think about timing,

Asher Genoot: When you think about those two and how they interplay together, that's the kind of a big part of it. From a timing perspective, it's really getting more sites commercialized and having that funnel continue to grow and increasing the capacity under exclusivity from the capacity under diligence. As we continue within this year, there'll be a lot more conversations about the pipeline, how we think about conversion, more transparency into the sites that we have under capacity, under development, as well. We're excited. As we've mentioned, we're building a robust energy infrastructure platform in the digital infrastructure world.

Asher Genoot: Riverbend, again, to remind everybody, was a site that started at capacity under diligence and made it all the way through to capacity under construction within the last 2 years during the theme and during the market rush of power. This was not a site that we converted from the Bitcoin mining days when it was less competitive to get power. So we've shown that we can do it once, and we will continue to do it.

That's the kind of a big part of it and so from a high-end perspective it's really getting more sites commercialized and having that funnel continue to grow and increasing the capacity under exclusivity from the capacity, and due diligence. And so as we continue within this year, there'll be a lot more conversations about the pipeline, how we think about conversion more transparency into the site that we have under capacity under development, uh, as well. And so we're excited. As we've mentioned, we're building a robust energy, infrastructure, platform in the digital uh, infrastructure world and Riverbend again. To remind everybody was a site that started at capacity under diligence and went made it all the way through to capacity under construction within the last 2 years during the theme. And during the market rush of power. This was not a site that we converted from the Bitcoin. Mining days when it was less competitive to get power. And so we've shown that we can do it once and we will continue to do it.

Sue Ennis: Thank you. From our friend Chris Brendler at Rosenblatt Securities. On funding Riverbend CapEx, any early read on the project-level financing deal given the recent volatility in the market? How do you view your Bitcoin holdings as a potential source of funding for the equity portion?

Thank you. So from our friend Chris brendler at Rosen blast Securities on funding Riverbend. Capex any early read on the project level financing deal given the recent volatility in the market and how do you view your Bitcoin Holdings, as a potential source of funding for the equity portion.

Asher Genoot: We feel very good. The equity as of right now is already fully funded. Because we've had to fund the projects, our deposits with Vertiv and so forth. When the project financing actually completes, we're going to get a multi-hundred million dollar cash out of the transaction, then we'll fund our 10% on an ongoing basis. As we mentioned, we went from 85% LTC to 90% LTC on the financing. We're pushing aggressively towards closing. JPMorgan and Goldman are committed. They wouldn't have given us quotes and put us on the press release when we announced if it was just an idea. We're very excited. We're very committed, and we have connectivity at the highest levels.

Asher Genoot: I've had lunches with the CEOs of the firms, and so I'm very, very excited that we have partners not only to finance this project, but on go-forward projects to replicate this program on a go-forward. From a Bitcoin perspective, our balance sheet and our Bitcoin on the balance sheet in the beginning of last year was core to us executing throughout last year. Being able to tell customers, Don't worry about our ability to finance. We have this amount of Bitcoin on the balance sheet, was really important. Where we are this year, Bitcoin on the balance sheet is not the focus. It doesn't matter. It's just an asset on our balance sheet.

We feel very good. So the equity as of right now is already fully funded because we've had to fund the projects, our deposits with vertiv and so forth. So when the project financing actually completes, we're going to get a multi hundred million dollar uh cash out of the transaction, then we'll fund our 10% on a ongoing basis. And so, as we mentioned, we went from 85%. LTC to 90%. LTC on the financing. We're pushing aggressively towards closing, JP Morgan, and Goldman are committed. They wouldn't have given us quotes and put us on the press release. When we announced this, it was, uh, uh, just an idea. And so we're very excited, we're very committed and we have connectivity at the highest levels. Um I've had lunches with the CEOs of uh of uh The Firm that. So I'm very very excited that we have Partners not only to finance this project but on go forward projects to replicate this Pro program on a go forward from Bitcoin perspective.

Asher Genoot: The reality is we're going to remove Bitcoin exposure on our balance sheet as we move forward, and how we do it is what we're focused on right now. Our exposure will be through the equity ownership where we have in American Bitcoin Corp.. Bitcoin on the Hut 8 Corp. balance sheet is not going to be a thing that we continue to hold for the long term. The beauty is we're able to hold that exposure through the equity that we were able to create in American Bitcoin Corp. for incubating and building that business. I think we're really good at creating value, and our focus is how do we drive down cost of capital and continue to create value by building businesses. What we're excited for, building Hut 8 Corp., building ABC, building Highrise AI.

Our balance sheet and our Bitcoin on the balance. In the beginning of last year, was core to us, executing on, uh, throughout last year, being able to tell customers. Don't worry about our ability to finance with this amount of Bitcoin on the balance sheet was really important where we are this year. Bitcoin, on the balance sheet is not, doesn't, it's not the focus, it doesn't matter. It's just an acid on our balance sheet and so the reality is we're going to remove Bitcoin exposure on our balance sheet as we move forward. And how we do it is what we're focused on right now. And our exposure will be through the equity ownership, but we have an American Bitcoin and so Bitcoin. On the hottie balance sheet, is not going to be a thing that we continue to hold for the long.

Asher Genoot: That, that's a big change in focus on kind of the importance of Bitcoin on our balance sheet and our perspective on it on a go-forward basis. Riverbend currently, from an equity portion, we don't need any more equity funding. We've already funded the projects. We're actually getting cash back once the financing closes, and hopefully, we can talk about it in our upcoming earnings call.

Long term. And the beauty is, we're able to hold that exposure through the equity that we were able to create, uh, in American Bitcoin, for incubating and building that business. I think we're really good at creating value in our focus is, how do we drive down cost of capital and continue to create value by building businesses, and what we're excited for building, Hut 8, building ABC, building high-rise. Um, and so that that's a big change in focus on, kind of the importance of Bitcoin, on our balance sheet, and our prospective on it on a go forward basis, but Riverbend, currently from an equity portion, we don't need any more Equity funding. We've already funded the projects, we're actually getting cash back once the financing closest and hopefully we can talk about it in our upcoming earnings. Call

Great.

Sue Ennis: Great. Okay. We touched on this a little bit, but why don't we talk about where is the Hang on, I am just trying to find where Brett was asking us a question. It seems like co-locating generation on-site with data centers is going to be more prevalent. We did touch on this a little bit. What are we doing specifically to participate in this trend?

Okay, so

Let's talk about we touched on this a little bit.

But what do we talk about? Where is the

Brett, was that?

Okay, so it seems like co-locating generation on site with data centers is going to be more prevalent. We did touch on this a little bit.

What are we doing specifically to participate in this trend?

Asher Genoot: You're saying. Sorry, repeat. Co-location data centers, like traditional co-lo, you mean, instead of single-tenant campuses?

You're saying sorry co-location data center is like traditional call. You're being instead of single kind of campuses no single tenant campuses.

Sue Ennis: No, single-tenant campuses. Yeah.

Sorry, repeat the question.

Asher Genoot: Sorry, repeat the question.

Sue Ennis: It seems like co-locating generation single-tenant campuses on-site.

Asher Genoot: Got it.

Sue Ennis: Yeah. Is gonna be more prevalent. What's Hut doing to participate in this trend?

Asher Genoot: Let's use Riverbend. That's a perfect example. Entergy Louisiana has given us a plan in terms of when they can deliver power, right? We're talking about the full gigawatt. They wanna build generation, add it to their rate base, have us be able to make sure we commit to it, so they're not taking spec dollars at play here. We're having discussions around them of maybe we can bring the generation faster to the site to drive the full gigawatt at a faster time frame, right? We don't wanna wait 5 years. What if we brought it in a lot earlier? As you think about the sequencing, what percentage of the gigawatt can we pull from the open market in terms of capacity, and what percentage do we have to build in that new generation, right? That's first.

Asher Genoot: The full gigawatt is not treated as the same. The discussions we're having is, how do we think about bringing generation to this campus? We have a lot of land. We have the ability to scale to almost 3,000 acres. We have access to pipelines and the ability to generate and to produce. As I mentioned in earlier Q&A or in the actual fireside chat, bringing generation with load, we think is gonna be a bigger part of the story, a bigger part of the development. Luckily, we have those capabilities in-house. We manage 4 natural gas power plants with Macquarie as a partner, we not only manage those, that's another asset.

Asher Genoot: Those were four assets that we bought out of bankruptcy. We turned around, we signed long-term offtake agreements with the utility in Ontario, and we sold them to TransAlta, which is a large utility in Canada. We have the expertise in-house. We're continuing to build and compound on the expertise we already have, but it's gonna be a bigger and bigger part of the story. I don't think it's gonna be around islanded generation. I think it's gonna be around bridging and having load and generation interconnected to the grid at your campuses.

As the same. And and so the discussions we're having is how do we think about bringing generation to this campus? We have a lot of land. We have the ability to scale to almost 3,000 Acres. We have access to pipelines and the ability to generate and to produce. And so, as I mentioned in uh, earlier Q an error in the actual uh fireside chat bringing generation with load, we think it's going to be a bigger part of the story, a bigger part of the development and luckily we have those capabilities in house, we managed 4 natural. Gas power plants with McCrory at the partner and we not only manage those, that's another asset. Those are 4 assets that we bought out of bankruptcy. We turned around, we signed long-term off-take agreements with the utility in Ontario and we sold them to transalta, which is a large utility in Canada. And so we have the expertise in house. We are continuing to build and compound on the expertise. We already have but it's going to be a bigger and bigger part of the story. I don't think it's going to be around Island degeneration. I think it's going to be

Around bridging, and having load and generation interconnected to the grid out your campuses.

Sue Ennis: Okay. We are coming up on the hour here, we're gonna do one last.

Asher Genoot: It's crazy. We have like 31 questions in the queue. I think we'll maybe reduce that number when we get people to come on stage with us next time.

Okay, so we are coming up on the hour here. So we're going to do 1, we have like 31 questions in the queue. So uh, I think well maybe we'll do that number when we get people to come on stage with us next time.

Sue Ennis: That's right. We talk a lot about the importance of our energy origination team, of diversifying the pipeline, of not being overweighted to a single market. Can you and maybe Sean talk about some of the areas where we are still finding pockets of opportunity? For example, in a previous conference, we talked about how we were interested in studying a development in Pennsylvania. Maybe just talk a little bit about some of the areas that we're looking at well outside of ERCOT.

Right. So, um, we talked a lot about the importance of our energy origination team of diversifying the pipeline of not being overweighted to a single Market. Um, can you and maybe Sean talk about some of the areas where we are still finding pockets of opportunity. For example, in a previous conference we talked about, um, we how we were interested in studying a development in Pennsylvania. Um, maybe maybe just talk a little bit about some, some of the areas that we're looking at well, outside of our cot.

We're looking across the whole us.

Asher Genoot: We're looking across the whole US. Every single area in the US. As we mentioned, power and land in a regulatory environment that allows for building this infrastructure at scale are the key pieces in building, right? Fiber has been less of a bottleneck. We've been able to bring fiber to a lot of the campuses that we're developing and that we're building. It's following the power, taking a first principle approach to where is there power. Using Riverbend as another example because I think it's our first fully kind of vetted case study, and we can do the same with our future sites that we announce. That project was around the transmission lines. That project was around the generation near that campus.

Asher Genoot: We came together, we pieced multiple pieces of land that were held for generations as kind of hunting properties by people, we built this 3,000 acre opportunity to go build a large scale mega campus. We're looking at those similar characteristics as we look across the whole United States, we look at its ability to scale power, its ability to build with a friendly regulatory environment that wants this project there and see the impact and the benefit that we can bring. A place that we can have talent to actually execute and build these projects and do so with the speeds that we're looking to build them at. Our team, the reason why we're scaling is we're continuing to increase the breadth and the depth across our energy origination pipeline across the full United States.

Every single area in the us. As we mentioned power in land in a regulatory environment that allows for building. This infrastructure of scale are the key pieces in building, right fiber has been less of a bottleneck. We've been able to bring fiber to a lot of the campuses that we're developing and that we're building. And so it's following the power. Taking a first principle of approach to where is their power using rubber band as another example because I think it's our first fully kind of, uh, vetted case study. And we can do the same about future sites that we announced. But that project was around the transmission lines. That project was around the generation near that campus, then we came together and we pieced multiple pieces of land that were held for Generations as kind of hunting Properties by people. And we built this 3,000, acre opportunity to go build a large scale, Mega campus. And so, we're looking at those similar characteristics as we look across the whole United States, and we look at its ability to scale power. It's built

Asher Genoot: There are some areas that are more complex than others, obviously, that aren't kind of traditional data center markets. We're kind of focusing on tier 1, tier 2, and tier 3 markets. There's a little bit of a different allocation of priority risk capital that we put onto each of them based on our confidence level of commercializing them. In some sites, we know that we'll always have kind of another market through American Bitcoin as a demand of a captive consumer that we have with the power where the energy prices work. In other areas, we know that this is primarily built, and there is no backup option for developing this campus. Overall, we're excited. I think we were one of the first to talk about our development pipeline, our energy pipeline, because that was a core focus.

To build with a friendly regulatory environment that wants this project there and see the impact and the benefit that we can bring a place that we can have talent to actually execute and build these projects and do so, um, with uh, the speeds that we're looking to build them at. And so our team, the reason why we're scaling is we're continuing to increase the breadth and the depth across our energy origination pipeline across a full United States. And there are some areas that are more complex than others. Obviously that aren't kind of traditional data center markets and so we're kind of focusing on here 1 tier 2 and tier 3 markets and there's a little bit of a different allocation of priority risk Capital that we put onto each of them based on our confidence level of commercializing them. And some sites. We know that we'll always have kind of another Market through American Bitcoin as a demand, uh, of a captive consumer that we have with the power or the energy prices work in other areas. We know that this is primarily built and there is no backup option for developing this campus. And so overall work.

Asher Genoot: Now we're 2 years into that journey. We've been able to take 1 project fully through the beginning to almost near the end of the process. Now we got to get it to capacity under management, but we'll start having more sites kind of coming through that pipeline. It takes time to develop these projects, and you're starting to see some of those come to fruition as they move down the pipeline, as we start talking about them more.

Excited. Uh I think we were 1 of the first to talk about our development pipeline, our energy pipeline because that was a poor focus and now we're 2 years into that Journey. We've been able to take 1 Project fully through the beginning to homeless near the end of the process. Now we got to get it to pass in to management, um, but we'll start having more sized kind of coming through that Pipeline and it takes time to develop these projects and you're starting to see some of those come to fruition as they move down the pipeline as we start talking about them more

Sue Ennis: Awesome. We've got about a minute left.

Asher Genoot: We've done more projects, similar, I guess, to Riverbend. We've had a lot more projects get into the press than we've shared with the markets because of all the local zoning and panels that we do. You guys will see that as well as you keep your news alerts on Hut 8.

Awesome. So we've got some projects uh similar I guess to RiverBend. We've had a lot more projects get into the Press than uh We've shared with the markets because of all the local zoning and uh panels that we do. So you guys will see that as as well, if you uh, keep your uh, news alerts on on how they

Sue Ennis: Yeah. Okay, we got 1 minute left in this call. Maybe any closing thoughts, Sean and Asher, that you want to leave our audience with?

Okay, so we've got 1 minute left in this call. Maybe any closing, thoughts Sean. And

I've talked a lot. Sean, why don't you close us out?

Asher Genoot: I've talked a lot. Sean, why don't you close us out?

Yeah, happy to thanks Asher. Uh,

Sean Glennan: Happy to. Thanks, Asher. Look, I think Asher said a lot of it, but, you know, this is a year about execution. It's a year about growth and scaling the company. We're excited about the foundation we've built. Like when I started, I told Asher I felt like where we are now is inevitable, and I feel like the growth of the company is inevitable. We've put together a really good development business, a really good funding mechanism, and we're looking to continue to repeat and compound that over time. We're excited to have you along as shareholders. Hopefully, we've done you well so far, and we look forward to continuing to do so in the future.

uh, I got

like, when I started, I told Asher, I felt like where we are now is inevitable and I feel like the growth of the company is inevitable. We put it together. A really good development business, really good funding mechanism and, uh, we're looking to continue to repeat and compound that over time. So,

We're excited to have you along as shareholders. Uh we hopefully we've we've done you well so far and we look forward to continuing to do so in the future