Hut 8 Corp.

Thank you for standing by. Welcome to the HUD-8 First Quarter 2025 Earnings Conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To answer your question, please press star 1-1 again. Please be advised that this conference is being recorded. I would now like to hand the conference over to our first speaker today, Sue Ennis, Head of Investor Relations. Please go ahead.

Good morning and welcome to HUD-8's first quarter 2025 Financial Results Conference Call. Joining us today are our CEO, Asher Janoot, 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 website. In addition to the press release issued earlier today, our full quarterly report on Form 10-Q is available at www.hut8.com, on our EDGAR profile at www.sec.gov, and on our CEDAR Plus profile at www.cedarplus.ca. All figures discussed today are in U.S. dollars. Certain statements made during this call may constitute forward-looking statements within the meaning of applicable securities laws. These statements reflect current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Certain key risks are detailed in our Form 10-Q for the quarter ended March 31, 2025, our Form 10-K for the year, ended December 31, 2024, and our other continuous disclosure documents. Except as required by law, we assume no obligation to update or revise any forward-looking statements. During the call, management may reference non-GAAP measures such as adjusted EBITDA. We believe these metrics, alongside GAAP results, provide valuable insight into our performance. Reconciliations of GAAP and non-GAAP results are included in the tables accompanying today's press release, also available on our website. With that, I'll turn the call over to our CEO, Asher Janute.

Thanks, Sue, and good morning, everyone. Since our 2024 earnings call, we've made substantial progress against our 2025 roadmap. Last year was about restructuring the legacy HUD-8 business. and setting the foundation for sustained long-term value creation. This year is about building on that foundation, investing in growth, and advancing our evolution as an integrated energy infrastructure platform. Against that backdrop, the first quarter marked a deliberate and necessary phase of investment designed to accelerate our development flywheel, unlock more capital efficient growth, and better position our platform to deliver sustained long-term value. With that, let's get started. The significance of the first quarter is clearest in the context of our broader 2025 strategy. Today, I'll begin by outlining that strategic context, then review our results and what we believe to be a forward-looking drivers of value creation catalyzed by our work. Sean will follow with a detailed financial review. In 2024, we fundamentally transformed the legacy HUD-8 business, optimizing operations, fortifying our capital strategy, and developing a high-velocity, utility-scale power origination pipeline. In 2025, we are channeling that foundation and momentum into a new phase of growth and expansion. Driving us forward is our development flywheel, a framework that aligns four drivers of value creation. origination, investment, monetization, and optimization under a single power-first strategy. The premise is simple. The more effectively we reinforce each driver, the faster we compound value. Our objective is to deliver returns faster and more efficiently than infrastructure development models constrained by traditional commercialization dynamics and capital cycles. Origination and investment are the foundational drivers of our flywheel, and together they shaped the focus of the first quarter. Origination defines the scope and scale of our platform. In the first quarter, our focus was on maintaining the scale and velocity of our power origination pipeline. As of March 31, 2025, it spanned approximately 10,800 megawatts. with approximately 2,600 megawatts under exclusivity. Investment follows origination and transforms our pipeline into tangible revenue-generating assets. Historically, our platform model required us to allocate capital across three businesses, power, digital infrastructure, and compute, each with distinct risk profiles, return horizons, and capital intensity. In practice, this often forced difficult trade-offs between power acquisition, data center build-out, and mining expansion. Breath came at the expense of depth, limiting the velocity of our flywheel. This challenge isn't unique to HUD-8. Across the sector, operators face a structural choice, focus exclusively on mining or diversify into the broader digital infrastructure space. Few who pursue the latter do so with true strategic coherence. We believe our power-first approach to digital infrastructure development provides a structural advantage in navigating that complexity. Our business is built around long-term access to high-quality energy assets, and our approach to digital infrastructure development is application agnostic. Developing data centers for Bitcoin mining ASIC compute allows us to scale our power layer aggressively while preserving the flexibility to potentially transition assets to other high-value use cases in the future. Within this architecture, ASIC compute for Bitcoin mining introduced structural tension. Each dollar allocated to fleet expansion had to be weighed not only against expected returns, but also against its impact on our broader platform's capital structure and strategic positioning. especially given the distinct investor expectations and capital demands tied to mining. To strengthen the compounding effect of our flywheel, we sought to decouple investments in ASIC compute from our capital allocation framework with the aim of creating a dedicated vehicle that could scale independently without diverting capital from our core power and digital infrastructure businesses.