Consensus Mining & Seigniorage Corporation

Greetings. Today is August 10th, 2026. Thank you so much for joining us for our second quarter 2026 shareholder call for the Consensus Mining & Seigniorage Corporation, which is quoted on the OTCQX Premier Marketplace under the ticker CMSG. Our second quarter financial results have been filed with the OTC markets. and also posted on our website, which is www.consensusmining.com. Speaking for the company today, we have Alun Williams, our President, Mark Herndon, our Chief Financial Officer and Kevin McRae, our Chief Technology Officer. Before I turn it over to my colleagues, we remind you that the following discussion, including responses to your questions, Apply only as of today. The information on this call should not be construed to be a recommendation to purchase or sell any particular security or investment fund. The opinions referenced on this call today are not intended to be a forecast of future events or a guarantee of future results. It should not be assumed that any of the transactions referenced today have been or will prove to be profitable or that future investment decisions will be profitable or will equal or exceed the past performance of these investments. This call is recorded and a replay will be available. To request a replay, you can email us at ir.consensusmining.com. With that in mind, Alun, I'll turn it over to you.

Thank you very much, Agustin, and thank you everybody for joining us for our second quarter 2026 Consensus Mining & Seigniorage Investor Update. During this call, we will start with Mark Herndon, our CFO, who will be giving us a review of the second quarter 2026 financial results, following which I will provide some general and market updates. And then Kevin McRae, our Chief Technology Officer, will provide an operations update. After which we will finish by responding to any questions that have been submitted before the call or during the call via the online portal. With that, I'm going to hand over to Mark to talk through our financial results.

Thanks, Alan. The second quarter was a continuation of the company's consistent operations and accumulation of Bitcoin strategy. However, Bitcoin's spot price declines during the quarter resulted in continued operating losses and Thank you for joining us today. The company's Bitcoin mining revenue continued to reflect lower volume of Bitcoin rewards and a lower average value for those Bitcoins. The company's activity from script mining also experienced declines that was also due to lower volume as well as lower average value of Dogecoin rewards, where the average value of the reward this quarter was about 9.5 cents per Dogecoin versus 10.9 cents during the first quarter. The company continues to purchase Bitcoin quarterly, which was 0.47 Bitcoin this quarter, resulting in the company's accumulated Bitcoin to total 354, which is worth $20.7 million, based on the quarter-end price of $58,524 per Bitcoin. And the total digital assets were $21.3 million at June 30th, which includes other digital assets but primarily Litecoin. Additionally, the company's liquidity remains strong with $58.5 million of cash on hand. Our hosting costs to mine also continue to decline this quarter and we're under 0.5 million for the second quarter, a 58% decline from 2025. These lower hosting costs are a function of less equipment as well as lower rates in 2025. The company's general and administrative costs have continued to be modest at $0.2 million for the quarter. The company's depreciation expense for our mining activities declined to approximately $0.3 million for the second quarter. This decline was driven by lower equipment levels in operation and the impairment we discussed during the first quarter. The company's interest income for the quarter declined slightly to $0.5 million as compared to $0.6 million in 2025 due to slightly Lower average cash balances and lower rates over the periods. As a reminder, the company continues to use this interest income as a funding mechanism for its hosting and general administrative costs. In addition, the company typically sells its Dogecoin rewards, which total approximately $169,000 this quarter. However, this is down from $201,000 last quarter and $461,000 in the second quarter of last year due to the declines in the fair value of Doge during those periods. As a result, for this quarter, these two items in total was about $670,000, which funded all of the company's cash operating expenses for the quarter. That is the hosting fees and G&A expenses, which together totaled $628,000. Our discretionary purchases of Bitcoin were $34,000, and our purchases of additional equipment was $81,000. As we've indicated in the past, this funding mechanism has been an efficient way to increase the overall Bitcoin holdings for the company. As a result, each quarter, the largest financial impact of the company's financial statements continues to be the unrealized losses resulting from the fair value changes in our Bitcoin holdings. For the second quarter, the spot price of Bitcoin dropped about 13%, as I mentioned earlier, to $58,524. That decline and other changes to the rest of the digital asset portfolio resulted in unrealized losses of $3.6 million for the second quarter. And I'll also note for you that since our quarter's end, Bitcoin has increased in value to approximately $64,000 earlier today, or about 9%. As a reminder, these fair value changes to the company's digital assets also typically result in corresponding and offsetting changes to the company's deferred tax liability, both of which are, of course, non-cash items. The overall result of these items has resulted in book value per share of $37.35 as of June 30th, which is down from year end $41.28. As previously disclosed, the Board of Directors approved a plan in May to repurchase some of our common shares. This quarter resulted in the repurchase of 67,636 shares for $2.1 million at a weighted average price of $30.69. The company has another $2.9 million remaining of capacity under that program. And I also wanted to reiterate that our overall liquidity position remains strong with 58.5 million cash as of the end of the quarter, which provides sufficient capital for us to continue to fund repurchases based on market conditions. I mean, the timing and extent of which those repurchases will, of course, vary based on those market circumstances. And that's it, Albert. Back to you.