HIVE Digital Technologies Ltd.

for the full disclosure. This meeting is being recorded. You will see one of our most popular visuals, which is the DNA of volatility, and we're always sure to include this table in our earnings presentation, particularly following the disclosure slide, because we just think it's a wonderful reminder to investors about just how much these various asset classes can move up or down over a one-day and a ten-day time frame. And as you can see here, and I don't think it's a surprise to any of our shareholders, that the volatility of Bitcoin and Ethereum is greater than, say, the S&P 500 or even gold stocks. And then if you look down at Hive, it's even more volatile. And, of course, that's because we mine both Bitcoin and Ethereum. So it's just something to keep in mind. So as we move on to slide number four, I am pleased to welcome the presenter, The presenters for today's program, Frank Holmes, Executive Chairman, Darcy DeGaris, Chief Financial Officer, and Aiden Killick, President and Chief Operating Officer. And if you'll move your slides, please. I would now like to hand the presentation over to Mr. Frank Holmes.

Frank? Thank you, Holly. and thank you all shareholders for being resilient as this management team has overcome so many challenges since taking control, Darcy and myself in particular, of Genesis Mining and repositioning the company in the past couple of years. So there's been so many challenges we've overcome, just like getting, we apologize for your frustrations of getting financials out to you, We've been able to say that we feel very safe and comfortable in our numbers and what we're doing. And we've been doing that. And here we are. We had record year-end in March numbers. And now we have the end of June. A high of achieved record revenue from the year-end of March 31st of $66 million. It earns $43 million. And then we turn around for the quarter. We turn around and show you that we have record quarter from May, April, May, and June year-end. And this is sort of a nice visual of showing you this is going up to June, those numbers. And when we compare them to our peers... you can see that we have the highest gross income for the June quarter in millions of dollars. So our numbers are bigger than Bitfarm, bigger than Riot, bigger than Marathon. Money in Marathon's numbers came out today, but this is the end of June. Bigger than Hut 8 or Cargill. and Argo's numbers are every six months. So what I'd like to point out to investors is that this difference is because we mine both Ethereum and Bitcoin, and I'm just going to walk through. We did some back-of-the-envelope conversions, et cetera, with our hashing power to be able to look like it was only Bitcoin. But Ethereum has allowed us to weather downstorms. and also for the past year, be the most profitable company of all the crypto money companies as of now, June of 2021. Next, please. So the proposition for investors is who's the least expensive? And when you look at Marathon, We're trading here before the other numbers came up at the end of June. It's 70 times a revenue, market cap to revenue. Hut 8 is 47 times. Ryders 38. Argos 35. Chipmunks 35. And Ryders 15. We know that as machines come on stream for a particular marathon and riot, that there will be compression. But there's a big disconnect between, on a relative basis, of the value proposition of revenue to market cap valuation metrics, and going forward, where our growth rates are. Next, please. So we're thrilled to be able to share with you the cash on hand A $26 million receivable pay, $8.9 million. Digital currencies, $82 million. So the total current assets are $126 million. Liabilities are $9.6 million. Our Ethereum and Bitcoin, as you can see, the Bitcoin is increasing rapidly as overall from the whole range. Next, please. So I'm a quant guy as a fund manager and a quant discipline. And I've always liked Matt Kayser's work. He's based out of Toronto. And he has a model that's based on the cash flow tournament invested capital model. He came up with the Chicago Compulse Advisory. He looks at the universe of all stocks. and it does a relative valuation for a company's intrinsic value is. So they believe that Hyde's default valuation improved to 510 U.S. per share. Shares in four quarters moved up from 35% to 26%. When these numbers have gone through his computation system, I'm sure that Hyde will look even more attractive. But I think what's interesting for me to share with all of you is that there are many quant funds and other sort of quasi-quant-discipline fundamentalists that are used inside, because this methodology does not care which industry you're in. It just cares if you're generating high cash flow returns on investment capital. Next, please. High total assets on the balance sheet. Darcy can do more details on this for everyone, but you can see that from the end of 2020, it was approximately $6.4 million, and now our Bitcoin Ethereum is $82 million at the end of June. And the idea of launching the ATM in the first quarter of this year has allowed us to be able to hodl most of our production at the same time as take that cash flow from our existing business and an upgrade of GPUs on swaps from 4-gigabyte cards to 8-gigabyte cards. Memory cards was very critical for the AMD 580 cards. But other things that we've made announcements on nature, NVIDIA purchases, which is for the future. So we're continuously upgrading, and we're in a great financial position to continue that. Next, please. During this period with Johanna, who joined us in the first half of the year as the managing director of Sweden, has now taken on the role as the president of the Swedish operations, which we're happy with. We've made press releases regarding her credentials and her experiences. both explicit and passive knowledge. Next place, so you can visit our website. And the new addition to the team we'll be speaking today is Iden. Iden Kellick is the President's Chief Operating Officer. He has lots of experience in crypto mining, data centers, construction. And in particular, you need to have lots of experience in construction because of the site that we're building out in New Brunswick. I was just there last week, and I was so impressed. The whole team is visiting Lachute. This is a three megawatt facility in Quebec, and then we all flew up to New Brunswick, to the Pacific campus that we're building out, and it's really quite impressive and thrilled, and that's also helped with our Bitcoin mining print, and then coming back, and then only green energy is key to it, building our own facilities and assets on the balance sheet, They're very, very valuable. So we're thrilled with that of Haydn coming along and helping execute and build out going to, we can talk more from 50 to 70 megawatts and where the future potential is on this. Next, please. So we get this question quite often, and I ask regarding the difficulty rate and for those shareholders to recognize it, but there's a fixed amount of Ethereum mined each day. The algorithm just like in Bitcoin, every 10 minutes there's a 6.25 coins versus the 900 Bitcoins a day, and if you can get your hockey stick on and get a piece of that action with the faster computers, then you're going to produce Bitcoins every day. And the same thing happens with Ethereum. Ethereum just produces more coins. And one thing, because it's a fixed amount, there's more and more people competing, especially the gamers coming in and switching their machines. And what we've noticed is that this difficulty rate fell dramatically for Bitcoin, but it didn't fall that much for Ethereum. And Ethereum difficulty has basically been rising. So you can see that we produced a lot less in the quarter Ethereum. However, the price action of Ethereum has gone up 30-fold in the past couple of years, and in the past year, it's up more than 20-fold. And the reason for that is not just the technology. We've solved that problem with upgrading our memory cards. But the real issue is there's just more people turning on their Ethereum chips, turning on their GPU chips that are gaming. And what we're seeing is that Ethereum is actually much more decentralized than Bitcoin mining. And I thought that was really an interesting dilemma that took place when China shut down everything In China, the difficulty did not fall very much for Ethereum mining. It fell substantially for Bitcoin. Ethereum difficulty has risen to a new level, but Bitcoin is far from that. So I think it's just where a shareholder is asking. Some people expect us to produce more, but then you just recognize that the new GPU cards that are out there, and many of these kids are switching over short-term mining and then going back and spending the money. Next, please. Important part, at the end of June, going into July, we got listed with the high ticker on NASDAQ, so we're excited about that. As you can see, we have about $384 million in shares we're spending. We've had the least amount of dilution against all the mining companies, so we have the greatest revenue. If you take a look on a per share basis, we have the greatest increase in revenue per share and cost per share relative to our peers. Next, please. We get great coverage of a ticker, Motley Fool's, out of Canada, and once again, they're very earnings-driven and revenue-driven on a per share basis. So here's an article last week by Andrew Button recommending ETFs and high blockchain. Next please. Now I'm going to turn it over to our new President and Chief Operating Officer, Heidi Gillick.

Thank you, Frank, for the introduction. And it's been a very active quarter with a lot of milestones, so I'm happy to talk about them. So Frank was talking about the increasing difficulty in Ethereum mining. And one thing to keep in mind is that we also have a great ascendance in the price. So this slide here provides a great historical context of what Ethereum mining itself has looked like over the past couple of years. And so, you know, throughout fiscal 2020 and 2021, you can see that high-risk mining 25, almost 30,000 Ethereum per quarter. But of course, you know, Ethereum prices were hovering around $200, $300, $400 in fiscal 2021. So, it's our new year, 2021 for high. We saw that increase substantially. And so, we saw Ethereum hit $4,000 US dollars several times. So, you know, a massive increase in an increase. And the quantity produced, about 9,700 Ethereum periods, and June 30th, we had a solid Ethereum price between $3,000 and $4,000 U.S. So that's almost a 10x price with production roughly one-third. So on a revenue basis, that 10x price your revenue, right? So the Ethereum mining business is actually very lucrative and it's specialized. It requires more operational excellence when it comes to your data center management. And this is, you know, been hired from the first Ethereum mining industrial scale company as well as the first crypto miner. But, you know, it's now got... you know, a very remarkable track record. And so the reason why I actually wanted to focus on this is for most shareholders and investors who want to understand the value proposition of Ethereum mining as it relates to Bitcoin mining, we're going to unpack that a little bit here. And let's go to the next slide, please. So if you convert Ethereum mining to Bitcoin, Bitcoin hashing, how do you do that as an investor? And so, if you're in mining, obviously, you know, we're running cheap news. You look at things, you know, what's your ETH cash? Bitcoin mining, you know, you're operating at the tighter hash level and you're wondering, well, how many tighter hashes can I take? You know, at the end of the day, you know, we're in the hashing business. We could use hash. for our coins. So the common denominator, of course, is what we report on financially, and that is the gift policy. And so if you take 10 given days, and if you had a megawatt of Bitcoin mining, for example, or a megawatt of Ethereum mining, you will know how much Bitcoin or Ethereum that you've produced. to come back and then you will know what your revenue will be. And that's actually, you know, in North American accounting standards, that's how you evaluate, right? So you can go ifrse.gap and generally accept your accounting principles to that degree. And then if you want to speak to investors, because at the end of the day, our cap and our price values, these are valued in your U.S. dollars. If you use this postulate and you evaluate, you find some focused on September 2021. We're doing, obviously, the Q1, which was cleared in June 30. We've got so many questions people are wondering about here in my post-London force and, you know, where things are today. So, a little bit of an outlook section here. So, in September 2021, I find 221 points. So, that's about which is an additional $8.6 million in revenues. So, as you can see right off the bat, between $10.2 million and $8.6 million USD, Ethereum mining actually makes a very substantive portion of this revenue basis. If you take that and you also convert on a daily basis, so what is the amount of Bitcoin equivalent you would have mined per day based on Bitcoin price that day? And you total it up, you'd actually get an equivalent of $407 Bitcoin equivalent mined for the month of September, which on a daily basis is about $13.69 per day. You know, and other companies recently have come out and, you know, hit a milestone of 10% in mind. Well, you know, at over 30, you get 20% in mind today. That's over 50% of what some companies are producing. And so it actually shows how strong of a value. And again, this is September, so this is recent. This is post-London port, which, by the way, we still see very strong and healthy economy. And two months following London, two months preceding London, we've seen very consistent, very strong economic. The only change has been mid-July. May and April of 2021. Those are no longer those who've been designed as just because we want to make Ethereum adoption accessible, whether it's for DeFi, whether it's for people using NFTs, and of course, for people, you know, using Ethereum as a form of a digital currency, right? So, more adoption and consistent use of Ethereum has provided headlock for excellent

I'd just like to really add, sorry to interrupt on that, but this is a wonderful hypothetical model. This is not, you know, financial reporting directly, but this is what our ability is to this public of what our hashing power is. And we're trying to inform investors that this is what it would look like if we were only mining Bitcoin. What's interesting is that Ethereum actually outperformed Bitcoin. You just look at the price action. So it's an important part of our holding as Ethereum continues to go through like a halving was for Bitcoin. Ethereum hasn't gone through a halving. Ethereum has gone through all these upgrades and people staking their Ethereum. So they're taking supply out of the system at a very rapid rate. which then affects the supply-demand equation, which has led to a higher refueling price for us. So that strategy is, down the road, we'll be able to improve our state. We think that's several years down the road. This is an idea for some people. I know they've been able to do this conversion, and Ivan's done a wonderful job creating this hypothetical for you. Thanks, Ivan. Keep going. Yeah, no, thanks for the color.

Again, exactly. This is an outlook. This is an outlook slide. Darcy will first cover the actual financials for this period. And just to kind of build on what Stephanie had mentioned, you know, on an annualized basis, again, with this interpretation, it's about $284 million Canadian for the month. I'm sorry, if you take the September revenue on a running basis, that's annualized fund rate revenue of $284 million. And once you put the price, the highest market cap to revenue ratio at a 6x multiple, which is an incredibly attractive for investors. And on the previous slide, looking at the earlier quarter, compared against our previous years, we were at a 15x. If you look at the September numbers on this, it looks like it's a 6x. So, it's incredible. That's a great way for, you know, people to understand how you can compare. And really, if you think about it, at this point in time, on a per megawatt basis, Ethereum mining actually yields more dollars per megawatt just because the economics are so favorable. It's had great price action. So, we want to help the interesting public understand how you can realize the value proposition of each. Next slide. So, some operational milestones. I, in August, realized 1xHash, the capacity of coin mining capacity, which was great. And this has been, you know, a global company with operations in France, Sweden, and Iceland. We've got a little bit of coin mining everywhere, but primarily focused in France. And so, you know, having the latest machines, you know, really high-efficiency IPTCs and canons installed in our operations, and we got to an exit hash, and it was great. You know, the Bitcoin production recently has been, you know, once you calculate on a Bitcoin mining calculator online, you know, on that now, constantly growing. And so, we expect to have another Exahash plug-in over the next few months. And so, you know, we've got the infrastructure being developed in New Brunswick. Originally, it was a 50-megawatt campus. We've expanded it to become a 70-megawatt campus. today. And so, of that 70, the remaining 40 megawatts will be coming online later this year and early next year. So, it's a very exciting time. In our long-term fiscal 2022, we have a Bitcoin mining capacity of 3x. And then, in addition to that, we have the Ethereum mining capacity, which you saw in the previous slide, how you could convert that into, on a US dollar basis, Bitcoin mining capacity. Again, you know, we have a very strong pipeline of ASICs. We announced in just 45 days alone, 5,800 next-generation Bitcoin miners, S19Js, you know, M30Ss, M30S++s, and great hardware. You know, just those purchases alone over half an extra hash of Bitcoin mining capacity. So, here we go. Yeah. So, next slide. Perfect. Thank you. So, with all that Bitcoin running capacity and having been operating, you know, for so long, you've got some great historical numbers here. So, even far back during the having 5,915 Bitcoin during that period in difficulty was actually much, much higher back then, both before and after the last having compared to where it is today. You could see, you know, high that's consistently performed, even pre-producing AEA. It was, you know, I can't remind you, just because it was incredibly high during this period. And nonetheless, InnoHard has continued to steadily grow, 236 Bitcoin in the fiscal year, between 33 and 10, which is our Q1. And, you know, again, this is the result of having, you know, constant and steady growth, you know, inch by inch, new hardware coming online. It really, really just kind of mastered the capital allocation understanding with your racks, or even plugging your most efficient basic liners on your WAP and Carahash pieces if you have older S9s, which, again, are still possible, but you keep the same capital and you have much faster, more efficient chips, plugging those in. And so, this is how you get the steady growth. And so, it's a very exciting time. And so, again, I'm not trying for that long. And so, with that, I'll do some overview. I will turn it over to Darcy DeVaris for the accounting and financial planning through that. Thank you.

Darcy DeVaris Great. Thank you very much, Aidan, and good morning to all of our investors and shareholders. Next slide, please. So in this slide, slide 26, we generated revenue from digital currency mining in the first quarter of fiscal 2020 of $37.2 million from a coin production as we've gone over approximately 9,700 Ethereum and 226 Bitcoin. The increase in the revenues versus the same quarter in fiscal 2021 is primarily due to the increase in the production of Bitcoin mining, as I just showed in the previous slide, and much higher coin prices than we were experiencing a year ago. Part of this, as we talked, what was offset was an increase in the number of Ethereum mines, a difficulty rate increase, and the fewer number of cards that we got installed as part of our GPU card upgrade from the 4 to the 8 gigabyte cards. But as we've talked about and covered, this was all offset by the huge increase in the price of these coins year over year. Coast mining margin during the quarter was $31 million compared to $2.6 million in the prior year comparative quarter. Production of Bitcoin, as you saw, has increased month over month, and we are continuing to do this following our acquisition of the two data centers in Canada. At what point does the gross mining margin, which equates to our revenues minus our direct operating and maintenance costs, increase in absolute dollars and stay strong as a percentage of revenues at 83%? Gross mining margin is also partially dependent on various external factors, and we've talked about this including mining difficulty, the amount of the digital currency rewards the miners are receiving before and after the happening, and the market price of digital currencies at the time of mining. On this slide, we're looking at the quarter over quarter, and you can see our revenue from digital currency mining has increased. to $37.2 million from $33.4 million in the fourth quarter of fiscal 2021. Our gross mining margin has increased again to $31 million from $27.2 million in the prior quarter. Next slide, please. So our adjusted EBITDA increased massively here in the first quarter of fiscal 2022 to $29.6 million versus $2.6 million in the prior year comparative quarter. The Ethereum and Bitcoin mining margins we have experienced through our efforts of reducing our costs have enabled us to continue to expand our business. This has to do with the two acquisitions we've made within Canada and the continuous upgrade of the GPU cards in Sweden. and the large number of orders that we've put in for miners that are going to be coming in over the next 18 months. We've got orders of those ASIC miners coming in each and every month. It's a very scheduled way that we've got it coming in, so we don't have a big truckload or a container load sticking all at once. We spread it out so that we can – get our operations up and running, and make a nice and smooth transition. Net income, $18.6 million this quarter versus the $1.8 million year-over-year. The theory of mining margins, as we've talked about, are plastic ethica. at $29.6 million versus $29.1 million in the prior quarter. Net income is doing incredible, $18.6 versus $14.3. Just note here that it's not as big of a gap there. It is large, over $4 million, depending on the sale that we're using there. The gross profit margin, $31 million versus $27.7 million. I've always liked to highlight that the gross mining margins and the adjusted EBITDA are non-IFRS figures, which we try to remember to point out each and every quarter when we announce our results, just to remind our shareholders and investors. Next slide, please. And this is just looking at our continued gross mining margin. Income per share is $0.05 for the three months just ended of June 30, 2021. And this is compared to the prior year of the $2.6 million gross mining margin. And we had an income per share of pretty much zero for the comparative year-over-year at June 30, 2020. And I've flown by the financials pretty quickly. I know that we had a call just about 10 days ago. But now I'd like to change, turn it back over to Frank. Before I do that, I just want to thank all of our investors for all of your patience, your ongoing support. And I look forward to seeing you guys and speaking to you when we do release our Q2 financial 2020 financial results in November. Thank you.

Thank you, Darcy, and thank you, everyone. If you have questions, you can send them in to Hive, and we'll answer them all. Thank you, everyone, and this is a wrap.