HIVE Digital Technologies Ltd.

Hello, everyone. Welcome to today's webcast on Hive Digital Technologies financial results for the quarter and year ended March 31st, 2025. My name is Nathan Fast, Director of Marketing and Branding at Hive, and I'll be your moderator for today's call. Before we get started on slide two, we'd like to briefly note the disclosures for today's presentation. Except for statements of historical fact, this presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as expects, believes, and similar expressions identify these statements. Actual results could differ materially, and we disclaim any obligation to update them except as required by law. For a full discussion of risk factors, please refer to our most recent SEC filings at www.sec.gov. In addition to discussing results that are calculated in accordance with GAAP, we will also reference certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income, and free cash flow. Management uses these metrics to evaluate operating performance and believes they provide investors with additional insight, and they are presented for supplemental purposes only and should not be considered in isolation from GAAP results. Reconciliations to the nearest GAAP measures are included in the appendix to this presentation and in the press release and Form 8K furnished to the SEC. On the next slide, I'm pleased to introduce today's presenters, Frank Holmes, Executive Chairman, Ivan Killett, President and CEO, and Darcy DuBaris, Chief Financial Officer. I would now like to hand the presentation over to Mr. Frank Holmes for a macro recap of the quarter. Frank?

Thank you, Nathan. So let's do a macro recap. Starting the big picture, the transformative year, the most incredible year and Hive's history outside when it first went public become the first crypto mining company. And it's really quite impressive how the team is gelling and let me walk you through why this is a transformative year for Hive. Next visual, it really is important for investors to understand the concept that they say that Bitcoiners buy the tips, stock the coins, and hold on for dear life. Well, clearly what you can see here is the daily volatility of Hive is greater than Bitcoin. And MicroStrategy, now called Strategy, is double what Bitcoin is on a daily basis. And over 10 days, it's even more so. So it's really important when you look at Hive, and we have lots of people like to try to trade like Bitcoin, etc., It's almost like you want to buy. If it's up 5% in a day, it's not the best day. But if it's down 5%, the math says it's time to buy. And that's really contrarian to how most people think, except where I've found that the Bitcoin ecosystem has this concept that talks about it so often everywhere, every day, Reddit, X, LinkedIn. Next, please. Well, I mentioned this is a transformative year. But to make it a transformative year, you need great leadership. And Hive has expanded its senior leadership. And two of the key people that are helping scale our business is Greg Tavares. Greg has tremendous experience in Canada in building data centers. in particular to run Buzz, be the president, which he is, the chief operating officer. And so we take a look in the past six months, the run rate of our HPC, high performance computing business using NVIDIA chips has doubled. The run rate has doubled and it'll double again. And you see that we made a serious press release this week on a major acquisition in Toronto, which is the financial capital of Canada, the biggest city in Canada, with tremendous infrastructure, intellectual capital, universities, noble lord for AI last year was from the University of Toronto. So having him join our team is just a wonderful statement about Hive. and what we're doing and then to build and acquire uh assets in in paraguay and acquire bit farms assets and fast track uh we were able to have gabriel lamas uh to join the team electrical engineer uh person with tremendous high voltage electricity experience um and understands the country and his father's an engineer uh so that uh it's really deep in the in the bones and muscles of people like Gabriel to lead the charge. And he's been doing a spectacular run so far this year that our growth rates have shocked a lot of people. They didn't expect us to be able to scale as fast as we're doing. Next please. I love this video. It's a short clip, a drone going over the new assets that we have. It's helped us surpass 11x a hash, if you recall. A year ago, it was less than 4x a hash. So, it's moving and it's grooving and it's very exciting that we're a serious investor in the country of Paraguay and there's lots of other positive developments happening with the country. So you can see from this other picture with Ivan Killick, our CEO, and Mr. Lamas, Gabriel Lamas, big guy, you know, 6'4", and all the muscle that's needed to scale our business. And the other person is a real important wingman for him in running the facilities is in between Ivan and Lamas. uh gabriel and that's uh carlos so we're really happy uh where we're taking the business next place uh scaling and we're doing this hash rate with tremendous discipline uh well organized building beautiful campuses um we've also i've been adding air conditioning to all the kids schools that are near us because they have electricity but they do not have the air conditioning that's necessary so we've gone ahead as part of our strategy to be involved with the community and we've lit up the downtown of valenzuela where we are at for 100 megawatts so now women and children are safe in the streets at night and the mayor has been very very positive response from helping light up the streets next please so this is another simple visual Hive's future hash rate growth is going to double again by American Thanksgiving. And taking from 11X a hash, now scaling at 25, what's going to happen here is margin expansion. In particular, the revenue will grow substantially, and at Bitcoin at $100,000, the revenue gave over 400 million dollars on a run rate but when we look at uh the margins of whether we're having they will expand substantially uh on a historical basis that's what scaling is about so it's not to forget what we're doing in the bitcoin ecosystem bitcoin a year ago uh was 65 000 average price now 100 and two years ago it was 25 000. So it's interesting to see, it's continuing to grow and we're now scaling with it. Next please. The HPC, the High Performance Computing, business is still exploding. I'm right now in Boston. I'm at MIT with 100 CEOs from 50 countries, boot camp AI, and seeing how you build a business model, what used to take weeks now take hours. So it's been very exciting. And it's a On the backdrop of this visual, when OpenShot came out in November of 22, it exploded with 1 million users, and very quickly it was 100 million users. Unprecedented growth of the Megatube, and now it has a run rate of about 5%. 100 million users, and so many on the $20 a month. And then there's the enterprise system that OpenAI's annual run rate as of June now is 10 billion, and some expect it to be a billion dollars a month by December of 25. So Hive is positioned and Hive is growing with this spectacular growth in AI. Next, please. so this is a transformative year hive is growing the forex and revenue to become three percent of the bitcoin network hive is scaling its hpc ai business acquiring a 7.2 megawatt uh toronto data center and we'll upgrade that from bitcoin mining data center because that's all the power that's necessary and all the fiber optics necessary, dense fiber, to be able to expand that footprint. We made an announcement also we bought more clusters from NVIDIA. So Hive is also in this transformative year of expansion. It's gone through its move to Texas as head office, but more important, Hive has transitioned now from IFRS accounting reporting to US GAAP. And that's been a tremendous amount of work on the accounting team. It's transformative for us because it allows you to compare high to most of the other US Bitcoin miners on an equal footing, simple basis. Next, please. Highest value bump in the upside potential, I think by November, targeting 25x a hash. When you look at the pure average valuation, it's 100 billion per x a hash. So high upside potential is 7x. And I think that's why many analysts are calling it $7 to $10 in their forecast for the stock price. Next, please. And a big picture, our year end is March 31st. And Darcy and I will give you a lot of granularity to the quarter. But I want to highlight it's transformative because we've changed our accounting practices and reporting. And with that, how did it look last year under GAAP? Well, we did about $115 million in revenue. $10 million of that was for the NVIDIA chips we have for high performance computing. And that is expanding, as I mentioned, now has a run rate over $20 million. So it's doubled under the leadership of Craig Tavares. And the adjusted EBITDA is around $56 million. And the gross operating margin is about $25 million. Next, please. So some of the largest non-cash items in that transformative accounting movement from IFRS to GAAP is depreciation. It's still pretty high, $64 million. And the stock-based compensation was de minimis as compared to our peers. It worked out to $11 million. And the revaluation of the digital assets, mark-to-market will create value. unrealized losses and gains every quarter in addition to our investments. But some of this stuff is like a $5 million non-cash charge for currency volatility. So as we all know, in the past three months, with the terror of war was happened to the us dollar well you're going through these movements in the past year and having operations over nine time zones five languages uh it it does create uh an impact the way gap i want you to express uh those translations so these are some of those charges but that's all behind us from an evil of an equal footing and next please So this is the most famous falls. It's in the Western Hemisphere and very close to it is the largest dam in the Western Hemisphere, partnered between Paraguay and Brazil, and Hive is leveraging green energy in Paraguay. The movie, The Mission, which made Robert De Niro and Jeremy Irons famous, is one of the top 50 movies by the Vatican to watch because it's based on a true history and has to do with these beautiful, spectacular waterfalls and Catholic Catholicism spreading through Latin America. Next, please. So crypto education, enthusiasm, Paraguay. There's conferences coming up. The president of the country is also a YPO member, Young Presidents Organization. And in September, he's hosting an event for 150 CEOs from around the world on what makes Paraguay interesting and a great opportunity to invest in. I've mentioned this before that Paraguay is very much aligned with America in many ways. And the president of the country went to the University of Columbia, New York City, also worked for the World Bank. So he really understands American institutions and global institutions and has done a great job in having the country's currency go through an upgrade in the rating and the value of how they're running their country. But nothing is greater than right now is all the money we're putting in. And Bitcoin mining means he's going to get U.S. dollars every month. And that's very important because Andy, their utility energy company is owned by the government and having stable fiscal policies come from stable income. And so we're thrilled to be part of that growth. Next, please. In Paris, I recently spoke and I said, I was not here to chase hoarders. We're here to build decades of digital infrastructure and decentralized freedom. We mine Bitcoin not for today's price, but for tomorrow's paradigm shift. Now I'd like to turn it over to our CEO, Aiden Kelly. Thank you.

All right. Thank you, Frank, for that intro. Let's have an executive overview of the year to date. as well as some highlights from recent milestones. So it's been a stellar year for Hai. The headline is $56 million of adjusted EBITDA. We're trading at a $350 million market cap. And by the way, we have over $60 million of Bitcoin on the balance sheet, 610 Bitcoin in the treasury, 56 million of adjusted EBITDA on 115 million total revenue. So I think Hive is an incredibly attractive buy, especially with a strong catalyst to grow this year. Our revenue was 105 million from Bitcoin mining and 10 million of HPC AI revenue. We did have 20 million ARR in May, so we'll 25 million gross operating margins, so it has been a strong year considering we navigated the halving. Our fiscal year is starting from March 31st, so this year are effectively all post-halving economics. I want to point that out. A lot of our peers have a December 31st year, and ours is March 31st, so this is effectively full post-halving economics. And by the way, 53% net cash to Bitcoin per share. We're trading at $1.75 today. And we've realized 22% ROIC in the last 12 months. So I think we've done a phenomenal job navigating post-halving economics, which are bearish, of course. And as the industry gets ready to torque up, I think it's going to be a phenomenal year for Hive. Let's jump into it. So, again, how do we realize these numbers? We prioritize ROIC and our capital deployment strategy. We've got prudent stable growth across cycles, bear and bull. We mined over 1,400 Bitcoin in this fiscal year. By the way, we hit 11.5 heads of hash in June, and we've been mining 5.5 Bitcoin daily since awareness. We're at a $200 million ARR. That's $600,000, about $550,000 on the Bitcoin, and over $50,000 a day, closer to over $60,000 actually, on the HPC business. So $200 million in annualized revenue. We'll be at approximately 3% of the global Bitcoin mining network when we hit. 25 exahash and of course we've got our vertically integrated hpc strategy for building and operating tier 3 data centers as well as the gpu cloud video cloud partner we're targeting high value contracts on our hpc business we've got over 5 000 gpus right now in our gpu cloud we have that 20 million dollar ar figure um let's jump into it next slide Here's an overview of the Bitcoin mining footprint. 440 megawatts of green energy globally between Sweden, Canada, and of course, Paraguay. As mentioned, we've been mining 5.5 Bitcoin per day since we hit our 11.5 exahash target. We're over 1% of the network today. That's today. And we're scaling on track to get to 25 exahash by this fall. hoping to get the benefit of the doubt multiple that some of our peers get because we brought on an exahash per week for five weeks in a row as we grew from six exahash to 11 exahash in the last month. Check out the press releases. We put out a press release every single time we get an exahash. And again, we've accomplished this with a disciplined ROIC strategy. Last December, we announced our landmark purchase sub-one-year ROI on these ASICs at $55 hash price after a 5 cent cost in our model. So we are very much primed to have a lucrative next three years ahead of us as we have modeled to be profitable up to $21 hash price. And so we very strategically and selectively deployed our capital, not only for high ROI but for positive cash flow through to the next halving. And by the way, we accomplished this by having the lowest G&A for Bitcoin mine in the sector, of course, which is shored up by our best-in-class uptime. Next slide. So a beautiful overview. This is our Paraguay site. It was at 200 megawatts. You actually see the substation in the bottom right-hand corner. And then above, you've got 10 air-cooled buildings, and you see all the civil work has been completed for the 100 megawatts of hydro miners. So the air-cooled is done. That got us to 11.5 megs a hash a few weeks ahead of schedule. And the second 100 megawatts is the hydro on the left, and that'll come online this summer. I was actually just in Paraguay a couple weeks ago to oversee the progress. Very exciting. Our first few containers are actually being installed. I mean the hydro mining containers, both the dry chillers and the actual hydro containers are on site. We put that in a press release a couple days ago. next month, so it'll be very, very exciting. Stand by for updates there. And of course, the third 100 megawatts is in Valenzuela, our other site. Some work is also completed. So we're fully funded for the 25x a hash. I want to highlight that. We're fully funded for a growth to 25x a hash. We fully pay for all the ASICs to get to 18x a hash. And so those are just arriving week over week throughout the summer. And we have all our deposits in place for the 25x a hash as well. Again, we're fully funded for that. So I'm very proud of our team. is now we're just bringing the hash rate online, we've effectively executed on the infrastructure. Let's hop to the next slide. So here's a layout for all the analysts out there of how our 440 megawatts is allocated between Canada, Sweden, and, of course, Paraguay. And on the right-hand side is our Tier 3 footprint. So we have GPU Cloud running in Stockholm, Montreal, and now with the announcement of the data center in Toronto we're acquiring, it's a 7.2 megawatt infrastructure load and a 5.5 megawatt IT. So we just announced the acquisition of this site. We have a binding purchase agreement. We hope to close on it very quickly. And we will upgrade this Toronto site to be liquid cooled for next generation GPU compute. Of course, we're going to be an NCP partner. So very exciting as we scale our HPC business to go from 20 million to 100 million. More details on that later in the presentation. Next slide. This is the ramp on the Bitcoin mining business, of course. As mentioned, we've successfully completed the first phase of the air-cooled 11.5 exahash. Our global fleet efficiency is 20 joules a terahash today. That will incrementally increase as we bring on our hydropowered S21 plus miners from Bitme that are 15 joules a terahash. It'll bring our global average down as we fully ramp. Very exciting time to be a high shareholder. I like to describe this moment in time as an elbow as a hockey stick ramps up. Again, this is a four-year overnight success. We scoured the globe for cheap hydro energy at scale, and we found it in Paraguay. We have been very active as well in Paraguay. We're electrifying 18 schools in the rural regions of Valenzuela, In fact, we've completed six of these 18 schools. I met with the chief technology officer of ONDE, which is a national power provider. We'll be attending a YPO event that the president of the country will be throwing in September. In fact, the president of the country, Santiago Pena, is a YPO member. Him and our executive chairman, Frank Holmes, have a personal rapport. So we're very much engaged at the geopolitical level. It's just how we like to do business at high. Next slide. So, taking into consideration the improving efficiency of our global feed, once we're at 25 exahash, here's a snapshot of what it looks like. At 900, sorry, 900 exahash network efficiency, sorry, 900 exahash of global network hash rate, 126 trillion network difficulties worldwide. of 12.5 Bitcoin a day. And at today's Bitcoin price, that's $1.3 million a day. That's over $400 million of annualized revenue. It works out to over $250 million of gross mining margin on $100,000 Bitcoin. Our cost of reuse of Bitcoin will be about $42,000. If Bitcoin rallies to $150,000 later this year, which a lot of people are speculating it might go from $150,000 to $200,000, but $150,000 Bitcoin, we will be doing almost $2 million a day. It's roughly $700 million of annualized revenue and almost $500 million of annualized gross mining margin. Again, we're fully funded for this growth. We'll be at 25 exahash this fall, 18 exahash this summer, and our market cap is $350 million. So I think Hive is an incredible value right now. We have 600 Bitcoin on the balance sheet, but we also have a pledge to buy back 1,300 Bitcoin at $87,000. So as our market cap increases moreover, We can either use free cash flow from operations to buy back Bitcoin at 87,000 or utilize proceeds from our ATM in an accretive manner to buy back Bitcoin. So our strategy is to get our hodl back over 2,000 Bitcoin by buying back our pledge by the end of this year. You'll buy a lower cost of capital as our free cash flow from operations increases as we've had this momentous scaling. Next slide. We've got the biggest growth in the sector this year. Some of our peers have hit a super scale of 50x a hash, have tapered off, and they won't be expanding. Aside from Cypher, that's got 1.6x growth. Hive has got 2.2x growth for the balance of the year. And by the way, we started the year off with 4x growth, and we're executing on that beautifully. So we've got the biggest growth profile of the entire industry this year. It's a huge headline. Next slide, please. We're also trading at the best multiple in the sense that we're trading effectively at $10 an exit hash. When you look at our enterprise value and where we're at at the end of this year, our peers are trading at $30, $40, even upwards of $50 an exit hash. We have moved our principal executive office to San Antonio. We are looking at a U.S. domicile, and we believe that as we hit $500 million market cap and a billion-dollar market cap, we're due for re-rating. As some buy-side funds have a mandate based on market cap or liquidity, we are a very liquid stock. Our three-month average is over 10 million shares a day. We hit almost 20 million shares of volume on some days. So I really think 2025 is the year of high as we scale to 25x a hatch. Again, we're trading a very attractive multiple to our peers. under $350 million, and with $65 million of Bitcoin on the balance sheet, I think that we're a very attractive multiple. And by the way, again, we also have the $20 million of capitalized revenue on the HPC business. Let's go to the next slide. So these are some of the merits of how we run a business. Always try to source ASICs at the lowest cost. We try to buy spot so we get immediate delivery. We lead the sector in uptime. We run our ASICs their full life cycle to maximize free cash flow, lowest G&A in the sector, and what does that yield? Best-in-class ROIC. Next slide. And here it is by the numbers. Huge numbers, 22% annualized ROIC, or sorry, 22% ROIC for the last 12 months. And you can see how this compares to our peers. We are effectively double the next contending companies, RS15 Spark at 12%, and from there it sort of drops off. million at ASICs. You've got to make well over $100 million after cost. Otherwise, you shouldn't even be mining, right? You should be buying Bitcoin if you can't make money from mining. So we leave the sector. We target under one-year ROI. Again, we targeted, we effectively have an 11-month ROI from the Bitcoin ASIC value by having free cash flow from operations. So we could scale our business with free cash flow and not have to rely on diluted finances. I think the cheat code that emerged in capital markets over the last two, three years as dilution was rampant, a lot of companies were just buying new machines, running them, upgrading them before their end of life just so that they could show high inter-quarter margins. So I'm going to take a find the newest, best machines. In the moment, you could show that you have a high margin, because guess what? The latest ASIC has a better machine efficiency. It has a lower break-even. Okay, so you've got a good margin for the quarter. But have you ever repaid the investment of all these new ASICs you're buying? And that's what's really hard to track. Well, this slide shows the difference. If you actually maximize and get ROI... on your ASICs, it's going to show up in the numbers here. You can see we lead the sector by a long shot. Next slide, please. Lowest G&A for Bitcoin bind as a function of revenue for the last 12 months. Next slide. So it's low cost, but it's also high performance. We've got the best uptime in terms of Bitcoin bind for ExaHash in the whole sector. Third-party analysis from Anthony Powers, power mining analysis. Next slide, please. And of course, the AI business, the recent announcement is 7.2 megawatt data center in Toronto. This will provide five and a half megawatts of liquid compute. We plan to undertake this conversion. We look forward to closing on this facility in the very near future. We just announced the buying and purchase. This will grow our effective HPC footprint by 3.5x. Again, we currently have over 5,000 NVIDIA GPUs operating. That's over 4,000 A-series cards, 344 H100s, and 504 H200s. We hit the 20 million ARR target, and we are looking to hit 100 million ARR. If we were to populate the Toronto facility 5.5 megawatts with H200s, using current market utilization we're seeing, it would add approximately $80 million ARR to our top line. So it's a very exciting time to be a Hive shareholder. And we are having our HPC business in Buzz. And so Buzz is a fully owned subsidiary of Hive. It will be a pure plate HPC focused, vertically integrated business where we build, own, and operate the tier three data centers along with the GPU cloud. Next slide. This shows the growth and how we've got there. Again, we scaled up. We had the 4,000, actually it's closer to 4,250 A-series GPUs, 344 H100. data center will be able to scale BillGP Cloud and get to our $100 million ARR in 2026. Very exciting time. Next slide. Ah, and so I'll turn it over to the longest-end CFO in the crypto mining industry, Mr. Darcy DeVaris.

Thank you, Aydin. Good morning, everyone, and thank you for joining us today. This reporting period marks a significant milestone for our company as we have transitioned our financial reporting framework from IFRS to US GAAP. This change aligns with our strategic objectives, enhances comparability with US listed peers, and supports our potential growth ambitions in US capital markets. As this is our first earnings release under US GAAP, I want to emphasize that while the core fundamentals of our business remain unchanged, certain financial metrics and disclosures may look different due to accounting presentation differences. We remain committed to transparency and will continue to provide clear, consistent reporting as we move forward. As this is the first time reporting under US GAAP for Hive, I want to highlight three key US GAAP adjustments that will be seen in these newly presented statements compared to what we've had in other years. Those are functional currency, digital assets and leases. So functional currency change. Hive changed its functional currency from Canadian dollars to U.S. dollars for the parent company. This was driven primarily by a shift in financing activities to U.S. capital markets. This change aligns with the U.S. gap, which prioritizes financing indicators. The adjustment affects several areas, including warrant and convertible debt classification. One of the bigger ones is digital assets. Under US GAAP, Hyde now records digital assets at fair value with gains and losses recognized directly in profit or loss. This contrasts with IFRS where only losses were recorded in profit or loss and gains flowed through other comprehensive income unless reversed. This will greatly assist the markets in comparability between ourselves and our peers. The third one is leases. While leases remain on the balance sheet under both standards, US GAAP requires different income statement treatment, rent expense for operating leases and amortization plus interest for financing leases. This is similar to the IFRS treatment for finance leases. Fiscal 2025 has been a transformational year for HIVE. Over the past year, HIVE has executed on a strategic plan to scale massively from 4.7 exahash at the end of March 31st, 2024 to 6 exahash at the end of this year. And now we're sitting at 11 exahash moving towards 15 by mid 2025 and 25 exahash by late year. We continue to leverage our green energy hydroelectricity with our expansion into Paraguay. We're also growing our Bitcoin production through the upgrading and purchase of cutting edge basic machines throughout the year and the exahash growth that we have experienced. We are also modernized. We have now improved our structure. with our US GAAP headquarters, US GAAP reporting, and improved governance structure. Also, our high-performance computing diversification buzzes HPC growth into sovereign AI and liquid-cooled GPU clusters, adds a high-margin digital infrastructure vertical, and aligns with national and enterprise demand for secure, scalable compute. Collectively, these milestones mark a transformation from a modest digital mining firm to a globally scaled green first Bitcoin infrastructure and high performance computing leader. With that said, let's walk through the results. We are providing certain non-GAAP measures in our presentation today. The company believes that these measures, why not substitute for measures of performance prepared in accordance with US GAAP? provides investors an improved ability to evaluate underlying performance of the company. These measures do not have any standardized meaning prescribed under US GAAP, and therefore may not be comparable to other issuers. Further details are found in the management discussion analysis for the three and 12 months ended March 31st, 2025. As you can see, Hive ended the March 31st year with 165.6 million common shares, 3.3 million options, 7.1 million RSUs, and 3.2 million warrants outstanding. On to the next slide. For the fiscal year ended March 31st, 2025, I've recorded 115.3 million of revenue and a 56.2 million profit measured in adjusted EBITDA. This is driven by a production of 1,414 Bitcoin equivalent produced. Moving on to the next slide, we take pride in maintaining a healthy balance sheet as always. Our cash position was $23.4 million as of March 31st, 2025, in addition to $181.1 million in digital currencies consisting primarily of Bitcoin. This is down slightly from the prior period due to the strategic use of our Bitcoin to fuel our accelerated operation expansion in Paraguay. We also had $15.3 million in amounts receivable in prepaids and increased from the prior period. Total market value of our strategic investments remained strong at $24.1 million. We have a strong net cash position and healthy working capital to support our operations and growth objectives with a current ratio of 3.7 calculated as current assets divided by current liabilities. And on to the next slide. Let's shift our focus to our gross operating margin on a year-over-year basis, comparing the annual results of this year compared to last year. Our gross operating margin, which is calculated as total revenues minus direct operating and maintenance costs and high performance computing service fees, decreased in absolute terms to $25.1 million in the most recent year, compared to $37.5 million in the prior year results. One significant factor to consider is the impact of the happening event that incurred in Bitcoin in April of 2024. This event led to rewards earned by miners in the current year being halved compared to the prior year. The gross mining margin is influenced by several additional external factors. These include the high mining difficulty currently being experienced, the reduced amount of digital currency rewards received by miners, which is now half what it was a year ago, and the market price of the digital currencies at the time of mining, which has been higher compared to the prior period. In the most recently completed year, we are reporting a net loss of $0.02 per share compared to a net profit of $0.29 per share reported for the year ending March 31, 2024. In looking at our gross operating margin on the next slide, on a Q4 quarter over quarter basis. Q4 quarterly results of this March 31st, 2025 period compared to the prior year, March 31st, 2024 period our gross operating margin, which is calculated again as total revenues minus direct operating and maintenance costs and high performance computing service fees decreased in absolute terms to 8.8 million in the most recent year compared to 15.6 million in the prior year Q4 results. Again, a significant factor to consider is the impact of the happening event that occurred in April of 2024 and also as has been discussed, the difficulty impact and the mining margins that we are experiencing. In the most recently completed March 31st, 2025 quarter, we are reporting a net loss of $0.34 per share compared to the net profit of $0.55 per share reported for the Q4 period ending March 31st, 2024. On to the next slide. Taking a look at our year-over-year revenue, we generated total revenue in fiscal 2025 of $115 million versus $114.5 million in the previous year. The strong, stable revenues compared to the fiscal year 2024 was assisted by much higher average Bitcoin prices compared to last year. This is despite the reduction of Bitcoin mined as a result of the halving in April of 2024, and also from the increase in contributions from our high performance computing revenue, which has increased close to 300% compared to last year. We were also able to overcome the industry pressures due to the continuing rise in Bitcoin difficulty hash rates over the past year. As mentioned previously, our gross mining margin decreased in absolute dollars to $25.1 million, or 22%, in the most recent year, compared to $37.5 million, or 33%, in the prior year. And on to the next slide. In looking at our quarter-over-quarter revenue, We generated total revenue in the fourth quarter fiscal 2025 of 31.2 million versus 36.9 million in the previous year's fourth quarter. The revenues compared to the same period in fiscal 2024 can primarily be attributable to the higher average Bitcoin price currently, which is more than double what it was in the comparative quarter last year. However, this increase is offset by a rise in Bitcoin difficulty hash rates over the past year, as well as the impact of the happening event on the current period's results. As mentioned previously, our gross mining margin, which equates to our revenues minus direct operating and maintenance costs and HPC computing service fees, decreased in absolute dollars to $8.8 million, or 28%, in the most recent quarter compared to 15.6 million or 42% in the prior year comparative quarter. Moving on to the next slide. Comparing our current fiscal Q4 quarter to the previous Q3 quarter, we generated revenue in this quarter of fiscal 2025 of 31.2 million versus 29.2 million in the previous quarter. A slight increase in revenues versus the prior quarter was impacted by an increase in the price of Bitcoin, resulting in higher revenue from digital currency mining and also higher high-performance computing work.

Is there questions, guys? Yeah, hey, Aydin. This is Bill Patton from KBW. Can you hear me? Yep, I got you loud and clear. Thanks. Well, thanks for taking my questions, and congrats on the sequential margin expansion and strong execution at Paraguay. I was just hoping to get some more color on the recent data center acquisition. Seems like a nice bolt-on addition to the portfolio. Any chance you happen to have a timeline of when you expect to get the liquid cooling installed and when the site will ultimately come online?

Yeah, so that site, 7.2 megawatts, would yield about 5.5 megawatts of compute, assuming a 1.3 PUE, and something like a 9- to 12-month retrofit with liquid cooling. to bring that compute online and uh it effectively would triple the uh megawatt footprint of hpc compute uh currently today and uh yeah that's uh that's kind of the outlook for it's very exciting awesome and uh apologies if i missed this um can't really see the slide deck on my end but

Was there any discussion in terms of the type of hardware that you guys are considering? I think there may have been some mention of NVIDIA Blackwell in the past. Just curious how you're weighing deploying kind of latest versus next generation equipment things.

Yeah, exactly. That's a great question. So it will be a function of what – yeah, the slides – We're off, but it's a function of what will be available on the market at that point. So, for example, today you can order B200, but there's talk that in Q1 2026 you'll have B300 available. So it'll sort of be an economic analysis because, as you know, when the newest model comes out, you know, we've heard that Black B200 is fetching over $5 an hour right now. And so if there's a B300 that's out, you know, typically you'll want to gravitate towards getting the latest model GPU that's available. So that's why we haven't specified that. It's more sort of an exercise in capacity and analysis, knowing, for example, you know, A 1K cluster of Blackwell, so 1,028 GPUs, is a little over 1.5 megawatts, a little bit more power intensive than, say, an H200 cluster, which is a little under 1.5 megawatts. So, yeah, as we sort of get closer to locking in the PO, then we'll provide more specificity on exactly which model GPU that we intend to operate.

Awesome. And then just lastly, you know, you're making all this progress on Bitcoin mining, getting some flybacks in hash before the end of November and now scaling to the $100 million kind of annualized run rate on AIHPC. Is there a particular revenue mix that, you know, the team is trying to achieve? And how could that differ going forward once you kind of execute on both of those businesses?

Yeah, that's a good question. I wouldn't call it so much of a revenue mix because we're positioning Buzz as a pure play HPC company that will sort of – be 100% HPC, AI revenue, and then Hive will moreover be, I mean, that's a wholly-owned subsidiary of Hive. And so how do we unlock shareholder values that entity will evaluate? And of course, Hive is operating Bitcoin mining data centers globally, so we're sort of bifurcating, I think is perhaps a good way to think of it, rather than than looking at it as a mix. But as you could see from last year's financials, it was about 90-10. If we did get to next year and we hit 100 million on Buzz and 400 plus million on Hive, like, you know, even at $55 hash price with 25 as a hash, you're well over 400 million of ARR just on the Bitcoin mining. And so it's still an 80-20. If you did want to kind of have a ratio based on those projections.

Awesome. Appreciate all the color and congrats on all the progress.

Thank you. Yeah, it's been an awesome year so far. Look forward to continuing the momentum.

All right, thanks for those thoughtful questions, Bill. Our next question comes from the line of Mike Colonese from HC Wainwright. Mike?

Hey, good morning, guys. Congrats on all the progress at Paraguay and the recent hash rate ramp. Great to see. Just following up on Bill's question around the 7.2 megawatt tier 3 data center in Toronto, can you just share what the cost of acquisition was and what the related costs to do the full retrofit will be?

So we haven't, good questions, Mike, we haven't publicly commented on that yet, so we'll be providing that color in the near future, so stay tuned.

Got it. Fair enough. I'd appreciate that. And as it relates to monetizing the 5.5 megawatt of critical IT load there, once you're fully up and running, you know, how should we think about that, you know, as it relates to customer demand? Are you looking at more on-demand type deals or contracted revenue streams? Just trying to think through, you know, the revenue of that additional 80 million that's projected to come online as it relates to timeline and underlying contracts.

Yeah, so right now, I mean, we've got 5,000 GPUs to about 5,100 actually, 4,300 A-series cards, and 344 H100s and 504 H200s. And those are, for the most part, rented. I think it's about 80% utilization and storage. That includes some GPUs that are on longer-term contracts for six months and longer, and some are on aggregators. So we're looking to, with the sovereign strategies, we sort of discussed that more in our most recent press release, we're really looking to embrace... enterprises in Canada and working with the government as well as researchers to take on more long-term contracts. And that's sort of what we're alluding to with the sovereign strategy. As you know, there's a large AI grant in Canada, and so that's one of the initiatives. And so And by the way, we haven't opined on the price of the DSM yet for competitive reasons, but we'll be providing more color on that at the right juncture. So, yeah, we've really sort of seen strong demand, and that was how we crossed that $20 million threshold. And so if you think about it, If it was like a B300 cluster and say that's 1.8 megawatts for 1,028 GPUs, you effectively can fit 3,000 B300s in that cluster. And so we're actually renting out... 5,000 GPUs now, so if you think of the quantum of GPUs, we're already renting out a lot. The A-series cards, of course, are much less power-intensive than the Blackwells, so we're confident. It's sort of within our rampant footprint. You just kind of have more power-intensive cards that drive more revenue per unit, but in terms of the total quantity of cards... bringing on that additional 5.5 megawatts of IT load is actually less than what we have online in terms of number of GPUs.

That's very helpful. I appreciate the detail. And just last one for me, can you remind us of the cutoff point as to when you can repurchase those Pledge Bitcoin with Bitmain?

Yeah, it's to the end of this year, a little bit past the end of this year. We didn't specify who the vendor is with the pledge, though. That's the only clarification.

Great. Thanks for taking my questions. You bet.

Thank you, Mike. Next, we'll go to Thomas Shinsky from Cantor. Thomas, please unmute.

Hi, Aidan and team. This is Tom Zahn from Brett. Thank you for taking my question. First, I just wanted to touch on the regulatory situation in Paraguay. I know as of June of last year, they put through a tariff against crypto mining companies. I wanted to see if there was any impact there and how the cost of power through your Paraguay sites compares to the facilities elsewhere.

Yeah, so things are sort of in a holding pattern until 2027, but we're actively, you know, evaluating the landscape, but also um, working closely with Ande, which is a national power company. I was just there two weeks ago and met the CTO. We're going down again in September, um, for actually a YPO event. The president of the country is, uh, in YPO and he's actually hosting a YPO event. So, um, we, we sort of embrace the, um, you know, government and, and, uh, utility company and, uh, just the regulatory framework in Paraguay at different levels. You know, we meet with governors and mayors when we go down there. And so I think there's an education process. Actually, I just met with the Minister of Industry and Commerce when I was there a couple weeks ago as well. And so I think as they understand the industry more, they – we're optimistic they'll sort of embrace it more and we have a long-term view that we expect with them embracing it to sort of have, you know, a more attractive power pricing trending in the right direction, if you will, is probably a good way to put it. And, yeah, so I would say that, you know, even with the – of the June tariff, the power prices there are still more attractive than a lot of jurisdictions we've looked at. So, yeah, it's good. And I think that the... revenue or so i should say the gross mining margin um reflecting the hash rate from paraguay um stay tuned it won't be too long because it's this current quarter uh which will be reported um in about six weeks um so yeah uh you know you'll see the sort of see the the gross mining margins from this current quarter as we've brought on those 5x a hash uh for period in june which i believe is reported in about, yeah, six weeks from now.

Awesome. Thank you for the color. That was very helpful. You bet. And then just one more, if I may, on this general CapEx throughout, you know, fiscal 2026 as we think about ramping to 25X a hash and also, you know, potential expansion within the Hive cloud business. How should we think about cadence of CapEx throughout 2026? And how much of that should we attribute to the potential expansion of the cloud business versus, you know, getting to 25x hash by Thanksgiving? Thanks.

Yeah, you bet. So the 25x a hash is fully funded. As you know, there was 610 Bitcoin on the balance sheet as of our May production report, right? So that's sort of more current than the fiscal year end. So that's approximately a little over 60 million. And so, yeah, you know, we've effectively... fully paid for, um, all the ASICs that have been arriving and that will continue to arrive through the 18 exit hash. And so that's why we have, um, shipments arriving weekly, uh, and deposits are in place. Uh, you, you know, you sort of, um, deploy your capital and you, you make those, those final payments for ASICs, um, right before they ship, right? So the, um, The summer inventory, that's all fully paid for, and that's shipping. And so final deposits for the fall inventory, right, the third phase, going from 18 to 25x hash, those will be made in the fall. So it's all fairly near term. And I believe on the – and that's on the ASIC side of things – And, again, we're using the strategic applied strategy for that. And then on the construction, I believe it was discussed that we actually had a sort of a VTB arrangement where 31 million of the 55 million purchase price was actually spread out over six months with $5 million monthly payments, five and change, right, 31 divided by six. And so those continue from, I believe – April, when we close the deal into about October. So that's nice and spread out. So yeah, that addresses the Bitcoin. And as for the cloud, you know, we, as I mentioned, we haven't discussed the uh purchase price yet although it was it was very attractive i i can i believe i can uh say that confidently and um the you know is as as with any construction project right you'll have you'll you know you'll pre-order some equipment and then um the rest of the capital sort of be spread out over that nine month term so we can provide more color on that but um it really um You know, with the GPU business, you don't actually need to pay for the GPUs until you receive them, unlike crypto mining. We have net 30 with, you know, I think it's fairly well known we work with Dell and Supermicro as preferred OEMs. And we have net 30 payment terms. So if the GPUs don't arrive in nine months, we don't need to pay for them until 10 months, right? So the CapEx on the HPC, or specifically to the Toronto data center, I would say is sort of further down the road and In the interim, we're fully funded for the 25 with ASICs effectively arriving weekly between now and the fall with 25X a hash on the horizon.

Awesome. Thanks, Aydin, and congrats on all the progress. Thanks, guys.

Thank you again, Thomas. Next, we'll take a question from Fidor, from B. Riley. Fidor, the floor is yours.

Yeah, hi then, Frank, and the team. First of all, congratulations, strong progress you're making on both HPC and Bitcoin mining in France. And going back to your slide with Robert De Niro, Frank, I'm hoping institutional crypto adoption continues at the same pace we saw with Catalystism spreading through Latin America. But anyway, I wanted to dive deep a little bit, kind of follow-up question on Toronto HPC data center. Stepping back to bigger picture would be helpful if you could share your scaling roadmap for this data center particularly and kind of what does growth look like from here and how you're thinking about the expansion of composition of your fleet at this location and also how should we think about financing in terms of preferred options, maybe an equity debt split for the overall HPC segment. Thank you.

Yeah, so the HPC can be financed in different ways. For example, there's... As you mentioned, there's debt. We've not done this, but just sort of providing color on how others in the industry have approached it. Sometimes you can do not quite a vendor financing, but it's no secret Dell has DFS, which is Dell Financial Services, so they'll actually sort of lease you. the hardware, the GPUs, right, which are the most CapEx intensive. And by the way, like just rough numbers, GPUs, latest generation GPUs broadly are roughly about 30 million a megawatt, right, for HPC. And so... There are different mechanisms to – I mean, you can buy them outright in cash, which is what we've done in the past for the cheap use that we have. And then as far as the data center construction financing, again, we sort of haven't disclosed the exact budget or acquisition cost yet. It'll be attractive and competitive, which is why we love this acquisition. We're really excited about bringing it to the market. And as I mentioned earlier, Fedor, I think part of your question was scale or capacity. So, you know, 1.3 PUE, it's effectively 5.5 megawatts of capacity. IT load, which effectively, I think it's on one of the slides in my section, the exact page number, I don't recall, but it's effectively three and a half X of what our current capacity is, right? So that's really exciting. And then I believe... I was addressing Mike's question just in terms of capacity of number of GPUs. So if you have like an H, well, I mean, people would be buying H200s instead of H100s now, but, you know, those are a 1K cluster. Again, 1,028 GPUs or 128 nodes with 8 GPUs per node. And it's actually N-1, so you always have to have one node for each. So you'd have 127 times 8. At any rate, it's just over 1,000 GPs. That's about 1.3 megawatts for H-series. And Blackwell B300 is expected to be a little more power-intensive, closer to 1.8. So you just sort of take your IT load. So you can always take your sort of gross utility load right at 7.2 megawatts, divide that by 1.3, And then if you want to say, well, how many black wells could I fit in there, you'd sort of divide by conservatively 1.8 megawatts. And, again, it depends. This can be B200, B300, so that will matter as well. Or if it's going to be an H200 cluster, then divide by 1.3 megawatts and then – multiplier GPUs by the prevailing market rate on what they're renting for per hour. Like H200s are renting at $3 an hour right now on demand. So, yeah, I hope that was helpful.

This is super helpful. And my second is about your customer profile and contracted dynamics. Can you kind of paint a picture of what your average HPC client looks like? Primarily serving on demand, smaller scale customers, or do you have a mix that includes some larger enterprise clients as well? And kind of what's the typical duration you've seen on your HPC agreements? Are these mostly short-term flexible arrangements or are you starting to lock in longer-term commitments with scaling at Toronto? And kind of looking forward, how are you thinking about the evolution of your customer base? Is it fair to assume you're actively pursuing larger capacity contracts and trying to move up market to bigger enterprise clients who can commit to, say, more sustainable and longer duration agreements?

Thank you. Yeah, generally the answer is yes to the sort of numerous questions. That's sort of underlined by the sovereign strategy, and that's what we're getting at by working with governments and research institutes throughout Canada, you know, viewing data really as a sovereign asset and working with those enterprises and research institutes that want to keep that compute within in the country um we actually have um a obviously i can't say who but there's a for a sort of a former um uh google uh deep mind guy that's training a foundational model on a six month contract right now on some of our gpus and so yeah we're absolutely targeting um more longer-term contracts. We've done some compute with a researcher out of NYU Stern, Columbia, as well as Berkeley, and so they're all sort of doing very novel things. Some are – I mean, in most of those specific cases, it's foundational model work – One, I believe, is actually a vision, like a computer vision. So, yeah, it's a lot of really cool, fun stuff. And then, of course, the balance of the compute is with aggregators. Some aggregators are really flourishing. And, you know, it's also like having a – like when you're working with the end users, like we've got a great team – And so it's making sure the users have a good experience with the GPUs. It's not just the raw compute, but making sure that they have a good experience as well. That's sort of another key thing. Because, you know, at the other end is an actual user that's... implementing and utilizing this compute. So it's just key that overall they're having a good user experience, and that's sort of a key takeaway if you talk to NVIDIA. That matters a lot to them as well. So that's where we aim to please, and we're really excited about the direction that Buzz is going.

Thank you very much, Aidan, Dosti, and, of course, Frank, and continue our best of luck. Thanks, Fedor.

Thank you. Yeah, Fedor. Time for a few more questions. Good morning, Dylan from Roth. If you would kindly unmute yourself and proceed.

Yeah. Hey, guys. Thanks for taking my question. Just to start on the Canadian data center, would there be any reason that those megawatts would come on in tiers, or would you expect to energize all 7.2 slash 5.5 critical IT load at once?

Yeah, that would mostly be a function of the retrofit process, Dylan. And so, as I sort of commented on earlier, you know, you'd kind of bring that online in roughly, you know, a nine-month process. And that would be, you know, you could do it all at once, absolutely, because you're sort of retrofitting everything. And by the way, I should comment. One important thing, it's actually a working active data center today. But, you know, if we want to bring that to do liquid cooled, you know, that's where the retrofit comes in.

Got it. And just as a follow-up, where do you stand with some of your existing sites? Are you still considering potentially retrofitting any of those to HBCI or are they going to stay Bitcoin mining for the near term?

Yeah, our site in Sweden. We did a trip out there with some analysts, and I believe Darren saw it. We call it Little Boden. There's two data centers that we have that are across the street from each other. And the smaller one, it's roughly 6 megawatts. We've identified that as a near-term candidate as well for HPC conversion. It was originally built as a GPU data center, so it's got a really good level of finish. And so, yeah, we've identified that one as well. And we'll be providing more color on that, so stay tuned.

Thanks again, Dylan. Our next question comes from the line of Mike from Northwind. Mike, please unmute and proceed.

Hey, thanks, guys. Hey, Aiden, if you could just talk a little bit about the demand you're seeing for that 5.5 megawatts. Is it basically already spoken for, or do you still kind of have to source the demand?

Yeah, I mean, right now, Mike, we just announced the data center, so we'll be providing updates on its conversion and bringing it to market. So we're doing, as I sort of in an earlier question pointed out, It's roughly 3,000 Blackwell V300s if you were going to go that route, and we're already managing and renting out 5,100 GPUs. So although it's effectively tripling our footprint, when you just look at the number of GPUs, they're, again, more profit-dense and power-hungry as time marches forward. By the way, the GB200 are 130 kilowatts per rack, and that's only 72 GPUs, right? So the GPUs directionally are getting more power intensive. So we're actually managing more GPUs today than the GPUs that we'd be bringing online. So we would provide guidance on demand, but it's a great bite. What we really like about this site is, It's functioning today as a data center, so it's operational, and it's a bite-sized deal that... we're very confident that we could bring to market and it will fit very well within our demand pipeline. And we are entertaining numerous, like our H200s are overcommitted right now in terms of, you know, there's numerous groups or end users, if you will, that want to rent them with fixed contracts. And so that over-demand, which is great, will tie in nicely to future capacity that we bring online.

Got it. Thank you.

Mike, thanks again. Time for one final question. We will go to the line of Chris Brendler from Rosenblatt. Chris, good morning. Please go ahead and unmute.

Hey, thanks so much, and congrats on the results. Fantastic. I want to do just a quick question. So we're running a little long here on the mining gross margin. You know, a nice sequential improvement I'm calculating here. Obviously, the Paraguay coming online, but it feels like that was, you know, only a partial quarter of impact. Can you give us any sort of sense on how much the mining margin can improve in the fiscal first quarter as you fully ramp the site and maybe a little bit of an outlook for the rest of or the beginning, I guess, of fiscal 26? Because... You've got a lot of low-cost power coming online, more efficient machines as well, and we've also seen a recent improvement in the network hash rate. So any comment there would be great. Thanks.

Yeah, totally. Great question, Chris. So actually I did comment on this in a press release not too long ago. It was sort of in my quote section. And it's a really, really good question because it sort of highlights the – improving fleet efficiency. So this quarter, right, like, again, I'm extremely proud of the team. And, you know, I was so thrilled when I went down to Paraguay a couple weeks ago to see, you know, the completed first 100 megawatts. And just, you know, everyone, and by the way, like, thanks, everyone. Great show. We had like 60 people dial into this call. And I know all the analysts that follow the story so closely and have such deep insights. As you guys all know, we brought on five Excel hash, five weeks in a row, right? It was extremely momentous. And so, but to that end, all of that hash rate growth is in the last five weeks. So that's all in this quarter, right? So... Two things. First of all, the fleet efficiency, a big portion of that 5x a hash was S21 plus air-cooled units at 16.5 joules per terahash, right? And so our global efficiency, sort of this current quarter, is now 20 joules a terahash. That will drop down to 18.4 joules per terahash when Phase 2 comes online, and then 17.5 joules per terahash when Phase 3 is completed this fall. So you're sort of having this graduated improvement because the hydros that we're bringing online... In Phase 2, like, Phase 2 is going to be all S21 plus hydros. And by the way, like, I think we put some really nice photos in the recent press release that commemorates 11 Exahash. Those containers are on site now, and they're being installed, which is super exciting. So that will all be 15 joule per terahash. Hydros are more efficient than air-cooled. Hydros are 15 joules a terahash. S20M plus air-cooled are 16.5 joules per terahash. So as we bring those hydros online, that's what continues to improve the overall global food efficiency and what we'll land. It's actually closer to 17.3, but just put 17.5 in your model to be conservative. And, yeah, so if you go from – I believe we were coming in about 22, 23 coming into this quarter, right? And so bringing on all those S21 plus areas gets us to 20. So that in and of itself – sort of from period end March 31 to period end June, right, quarter to quarter, is a 10% improvement in – 10 to 15, I guess, percent improvement in efficiency, right? And then with power costs, power costs were actually seeing really, really good – Power in New Brunswick, like interim spot pricing was as low as like two cents Canadian on some days. Now, New Brunswick is 70 megawatts. Half of that is fixed and half of that is spot. So you're you're anticipating. And we've commented that spot prices in New Brunswick have been attractive. So I think we're looking forward to better energy prices as well. I don't want to put a number on it, but I can comment, of course, on the efficiency. I mean, we've disclosed all that, but I think directionally, you know, with Paraguay coming online and spot prices generally being more attractive in the summer compared to the winter historically. Yeah, it's going to be, I'm looking forward to a good quarter. And as you noted, difficulties dropping, which is nice. Definitely everybody likes that. So, yeah, it's looking good, Chris.

I look forward to it. It's going to be interesting to see how much it improves in that fiscal first quarter. Thanks so much. Congrats again. You bet. Thank you.

Thank you, Chris. That concludes our Q&A session and our Q4 and full year 2025 earnings call. Thank you, everyone, for joining. We look forward to speaking to you again soon.