HIVE Digital Technologies Ltd.

Hello, and welcome to today's webcast on Hive Digital Technologies financial results for the quarter into June 30th, 2025. My name is Nathan Fast. I'm Director of Marketing and Branding at Hive. 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 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. They are presented for supplemental purposes only and should not be considered in isolation from GAAP results. Reconciliations to the nearest gap measures are included in the appendix to this presentation and in the press release and Form 8-K furnished to the SEC. On the next slide, I'm pleased to introduce today's presenters, Frank Holmes, Executive Chairman, Aydin Gillick, President and CEO, Darcy Tavares, Chief Financial Officer, and Craig Tavares, President and Chief Operating Officer of BuzzHPC. I would now like to hand the presentation over to Mr. Frank Holmes for a macro recap of the quarter. Frank?

Thank you, Nathan, for the introduction. And it's my honor to be with this great executive team. You know, it's interesting. This executive team is, I think right now, the longest standing CEO and CFO in the industry. The turmoil over the past five years the change of regard of leadership in the crypto mining companies has been over and over, and we've stayed consistent and reliable and always showing up as the most efficient top-tier miner, as we've also built out the first to go and build out the AI sector. So today I'm going to go through the macro recap of where we have basically come had an incredible year and where we're going. So let's hop on to the next slide before we get into the granularity. Well, a five As you can see from this data that every asset class has its own unique DNA of volatility, and it's important for investors to understand that. And we'll have 5% plus or minus daily volatility for high for 16% over 10 days. Moves may seem extraordinary compared to the S&P 500 or gold. They are normal in the emergent Bitcoin ecosystem. This volatility is not a flaw. It is a natural byproduct of a high growth global 24-7 industry and an asset class that is still maturing. And for Hive, it is precisely this volatility that Combined with operational excellence and strategic growth in a green power infrastructure that creates the, I would say, this unique outsized return. And it's not to become fraught and worried about that DNA of volatility, but to use it to your advantage. As you can see here that Tesla is very, very similar to Hive's DNA of volatility and strategy Michael Saylor's Bitcoin hodling strategy. company really has a greater volatility. The next is really a recap as to this year in 2025 is transformative for Hive because we are the fastest and biggest growth story in the Bitcoin mining industry. And hopefully we'll be able to show you that in a short notice where it will also be for next year. But this is huge growth coming from 6 to 15. Many people did not expect to anticipate that by August we would have such great significant growth. But the numbers that are coming in for the quarter end is before we hit 15x a house, which is today. And so I'd like to hop over to the next visual to give you an idea for the comparison of looking at our year end was March 31st. And that 12-month annual revenue, the gross revenue, was $115 million today. And the adjusted EBITDA was about $56 million. And the gross operating income was $25 million. We're very proud of those numbers because they include the halving of Bitcoin. So even with the halving, we were able still to generate a gross operating income of $25 million. And now with the scaling underway this year, in particular seeing the growth in Paraguay, the quarterly results are starting to populate, and they're showing you at the end of June that our top-line revenue growth rate was $45 million, and the adjusted EBITDA just for the quarter was $44 million, which is almost what 12 months was after that halving. and the gross operating income of $15 million. Now, what happens is I'm going to walk you through is that many analysts then say, well, that's going to be, if you forecast that for next four quarters because you're ramping up, these numbers will be much higher. And, in fact, since now, August, we're at 15 exahash. These numbers are even greater than the numbers you're looking at right now. Next, please. So using back of the envelope and no past performances guaranteed for future results of just looking at the revenue for that quarter, it had a forecast of $182 million top line, EBITDA of $178 million, and gross operating income of $63 million. Well, today, it's even higher than these numbers. But you have to remember, we have to wait for the audit numbers that come out the end of September for this summer quarter and what they will look at. But we did make in press releases this top line revenue growth is running at over $300 million now. Next, please. The largest non-cash items for Hive. For the quarter, you can see the reevaluation of Bitcoin in our balance sheet and the volatility of Bitcoin can move up and down. These are non-cash items. And we saw a swing here of $23 million. And depreciation is also another significant as you buy new GPU chips for the AI build-out or ASIC chips for the Bitcoin build-out in the data centers. The depreciation charges are quite high. Next, please. These are powerful visuals to show you our scaling to put things in perspective in Paraguay. And this is 15x a hash of Bitcoin hash rate as an advancement in Paraguay. And this is accelerated because of our M&A activity in buying Bitfarm's operations in Paraguay. And that has allowed us to really accelerate our footprint from 100 megawatts of electricity to 300 megawatts. And the leadership shown by the country president, Gabriel Lamas, has been outstanding as we've been able to scale more rapidly than anyone anticipated. But what's really important in the next visual is that price is what you pay, but value is what you get. And scaling 4X a hash with discipline and 4X a hash with Hydro Online leads into the next visual that we do not forget these communities that we're involved with. at Hive, value goes beyond just record revenue and EBITDA by lasting benefits that we deliver to our communities. We've done this in Sweden with the hockey arena and the hockey team training for kids in northern Sweden. And in Paraguay, where we're scaling our renewable power data centers, we've invested in the future education of local grade schools, installing Air conditioning, which is so key because the temperatures are average 100 degrees. And we've also put street lighting as this visual shows you here that the mayor put up thanking them because we've lit up 14 streets so that the mothers and parents and kids are safe in these small towns that were located. This is not just an ESG check the box. These are tangible long-term contributions that enhance the quality of life, improve learning conditions, and strengthen our partnership with the local communities. It was a pouring rainy day. I was there last week. And these are fresh photographs of us going and visiting the school and being thanked by the kids who are just out of school. And this is the open forum, whereas in Texas or Canada, everything has four walls put behind it. And here it's still open. And this school is almost 80 years old. Next, please. So, truly, we believe in social impact investing for building a brighter future in Paraguay. So, let's hop to Toronto and the next visual, please. So, we operate over nine time zones in five languages and using sourcing hydroelectricity from three countries, Canada, Sweden, and now Paraguay. But coming back to Toronto, what's important is that it's not only Canada's largest city, it is now which has surpassed in population Chicago. It's a diverse population from 50 countries. And it's a hub of education, research and innovation, leading to inventions and cutting edge medical research and globally recognized breakthroughs, including the discovery of insulin for diabetes. This unique mix of scale, talent, and innovation makes Toronto one of North America's most vibrant cities for finance, technology, life sciences, and live theater. It is the third largest live theater city in the world. The underground system, the subway system, is over 50 miles connecting underground cities. the whole city and the surface transportation buses on every major street and small streets and streetcars as almost 750 miles of busing coverage on surface. And when we look at the University of Toronto, the next slide, it's played a pivotal role in the development of deep learning and neural networks, including work by Dr. Jeffrey Hendon. It was propagation and his other breakthroughs. It was called the Botsman machine, which is recognized as foundational for modern AI. In essence, the University of Toronto is arguably Canada's and one of the world's most influential hubs for AI. It's impact stocks from academic breakthroughs. And we've seen this. We're based in San Antonio, Texas, that the University of Texas San Antonio is the leading university for cybersecurity. So, therefore, that leads to NSA having huge operations in San Antonio to be able to tap into the intellectual capital. And Toronto's reputation as an AI capital, with Jeffrey Hendon receiving a Nobel Prize next visual for his AI breakthrough. is really quite significant. So the University of Toronto, foundational research, institutional ecosystem, over 50 languages, global influence and applied innovation. We said this is so key and the push now globally for sovereign data centers to have a footprint in Toronto. So by building in Toronto, we are leveraging Canada's AI leadership, supporting sovereign data infrastructure. And Craig Tavares, our president of Buzz, We'll give you more information and give you insights in that. But this is a classic. What we've seen with data centers for Bitcoin mining is a stepping stone for the AI build-out globally. We're seeing this all over the world. And so we are really happy to see that we've got a 40,000-square-foot building that will go from what's called Tier 1 to Tier 3 and then be able to build out our suite of NVIDIA chips, which will be used for our AI business. We are now downtown Stockholm and in downtown Montreal, and hopefully in the next short order to be downtown Toronto. The next visual, please. So what's really been significant for us in moving to the head office to San Antonio, Texas, has been the comfort of regulatory pronouncements. And we've seen this this year. The Genius Act signals a major shift toward regulatory clarity, institutional adoption of Bitcoin in the U.S., And being the world's largest capital market for formally recognizing Bitcoin legal status is setting clear compliance guidelines. And we think it's very significant for the global Bitcoin ecosystem. So what were the next question, please? So the Genius Act, the 401k Executive Order, Texas Strategic Bitcoin Reserve, all these developments are very important for global Bitcoin mining revenue and the ecosystem and the credibility of the ecosystem. Also, these acts are very important for America to push back with a blunt attitude. push against China's de-dollarization and China's attack with the BRICS nations against the U.S. dollar for trade around the world. So it's important to see that the Clarity Act is another important step in this progress, and America is showing this leadership. Next, please. Well, price is what you pay is what Warren Buffett likes to say, but value is what you get. And intrinsic value is what is key. And intrinsic value is a true worth based on future cash flows, competitive edge, and business quality. And that's what Hive is doing. And we're seeing at this stage that we are growing the intrinsic value of Hive faster than what the price of the stock price is. And historically, there is a snap up. And I think with this release today of showing what's happened this quarter and the end of September quarter are very significant in high being re-rated by institutions. There's other things that are really important in the capital markets which happened this year. in addition to the Bitcoin regulatory guidelines, but as you're witnessing, huge stock buybacks. Next, please. I recently wrote on Forbes and discussed the record stock buybacks, and I've seen that the Wall Street Journal has also commented and written about stock buybacks. But let's hop to the next visual about the analysts and all the research and coverage we're getting targeting a $6 to $8 stock price. Well, why? Where do they get these numbers from? And I think the big part is the proving out that you can grow and scale, which we're doing. And then we're seeing some significant mergers and acquisitions take place in the industry. And it's the unlocking of value in the next visual. What recent fields say about high is worth. CoreWeave, which is a hyperscaler, which has the tremendous support of Microsoft and NVIDIA, is to acquire Core Scientific. Well, why are they buying Core Scientific? And what are the value metrics for that? They're buying it because they've sourced energy and they have land and they have energy. And these hyperscalers need to have access to both land and electricity. With that, we're seeing a huge build out. And who's first to go into a lot of these sort of areas where there was stranded electricity or wasted electricity have been Bitcoin miners. It was Bitcoin miners in West Texas were for absorbing flare gas, surplus electricity from solar energy and from wind energy. And so now all of a sudden there's great value being placed on these early adopters of Bitcoin miners. And I look at Hive as also being very early, being the first crypto mining company, but very early in sourcing and developing and When we look at Paraguay, not only are we helpful for the government of getting steady U.S. dollar cash flow every month, helping with the ecosystem and building up the infrastructure, what happens when you go to tier three? What is the valuation metrics? Well, if you look at data center in the next visual, it's a simple back of the envelope. The data center peer average is about nine times enterprise value to sales, a high of one and a half. If you look at enterprise value to EBITDA, it's 3.2, but the data center average is 21. And so, therefore, there's lots of upside where price catches up to the intrinsic value that the management team is creating for the Hive shareholder. Long-term, sustainable value creation. The next visual is sort of articulate to explain to investors Stargate, which is in West Texas, in Abilene, where there's this massive, epic $500 billion AI megaprojects. There's been wonderful coverage on this in Bloomberg and on YouTube that if you're really curious, you can go and take a look at. It's over 2,000 acres. It has over 2,500 construction workers. And it is tapping into surplus wind, surplus solar, and natural gas energy to build up for the the secular bull market in AI. So stay tuned to Hive as it participates being early in capturing energy and building out data centers in Bitcoin mining and AI. Next, please. I want to welcome Ivan Kilik, our CEO, who will give you more granularity on what's happening in the global Bitcoin and AI build-out. Thank you.

Thank you, Frank. That was an excellent macro summary, great insights into the industry and our growth. I just want to add that for the past 10 years, we've really seen Bitcoin mining emerge as a unique catalyst in unlocking stranded or otherwise unused energy resources. By monetizing surplus power, for example, it allows utilities to have a higher baseload and then sell energy to miners when grid demand is low. Really, miners provide a flexible, location-agnostic, and reliable demand source that transforms isolated or excess energy into economic value. And this model incentivizes the build-out of renewable projects by turning intermittent output into steady revenue. We believe that financial markets are increasingly recognizing the positive climate. and economic benefits of such operations. And so the infrastructure that has been built for digital asset mining becomes right for new layers, notably HPC and for AI, due to parallel requirements for dense power and robust cooling. So with that being said, let us jump into my summary for Hives Q1 2026. So it was a phenomenal quarter, a record quarter for us, really. Over $45 million in total revenue. Of that, approximately 90% came from Bitcoin mining operations from our green energy global footprint, and approximately 10% from our HPC AI business, which is very exciting. Of that $45.6 million in revenue, we did approximately 38% of a gross operating margin, yielding about $15.8 million of cash flow from operations. And very remarkably, a super strong quarter, $35 million of net income, with $44.6 million of adjusted EBITDA. We ended the quarter with 435 Bitcoin on the balance sheet. And again, we have the Bitcoin pledge strategy where we have pledged a large quantity of Bitcoin at $87,000. And we have the ability to purchase that Bitcoin back before the end of the year at zero interest. And that's very exciting. And that's a strategy that will allow us to increase our HODL as the year goes on and our free cash flow from operations increases. grows and we felt that this was a very creative way to scale our bitcoin mining business because if we pledged almost 200 million dollars of bitcoin that otherwise would have required share issuance or taking on debt so without dilution and without taking on debt we've been able to scale approximately 200 million dollars worth of capex using this pledge strategy which by the way is now profitable Approximate estimates were over $40 million in the money on our pledge strategy right now if we were to look at the value of the Bitcoin that we pledged relative to its current market price today. So I think that Hive, in addition to having great uptime, low G&A, and best in the sector ROIC, we've been very strategic. in growing our business in what we believe is an accretive manner for our shareholders. And the last highlight here is 15% trillion 12 months for OIC, which, again, leaves the sector, and we'll get into more detail shortly. By the way, I would also want to add that I do think that Hive stands out in this new era of vertically integrated AI infrastructure. We're lightly leveraged. We have a very transparent growth model. We're powered by renewable energy, and we provide regular reporting of our exahash milestones. Our model, proven through scalable mining in Canada, Paraguay, and Sweden, is rapidly being adapted now for sovereign AI and HPC as well. The recent Toronto Data Center deal, which we'll talk more about, and the prior acquisition of Bitfarm's Paraguayan assets really positioned Hive to hyperscale its footprint precisely as the market begins to appreciate that the infrastructure built for Bitcoin is now amongst the most coveted asset class for the AI supercycle and the ongoing global HPC land grab. Let's jump to the next slide. So it is also worth noting that that our earnings per share grew 206% year over year, 18 cents earnings per share on a diluted basis. And while our diluted shares outstanding increased to 192 million, which is a 74% increase, you could see that our earnings per share outpaced that significantly. And we had significant growth when we completed our construction project In Paraguay, the phase two, sorry, phase one and two, 200 megawatts of our expansion in Paraguay. And we've talked about this before. It was a phenomenal deal. Our all-in cost to acquire and complete the construction worked up to 400 grand a megawatt. Well, 200 megawatt, that's an 80 million capex as well. 100 megawatts in Valenzuela, similar cost, another $40 million. That's $120 million in construction capex. So, of course, you are going to have some equity that goes towards acquiring and building out that infrastructure. But 400 grand a megawatt is incredibly attractive, and we effectively acquired the 200 megawatts in Iguazu at cost, and that allowed us to bring our hash rate online very rapidly. So even though we issued... Shares, we believe it was accretive in the end as we've seen our revenue per share and now our earnings per share grow. And ultimately, we want to demonstrate the best ROIC for our shareholders. If we're deploying capital, we expect to make more money back from what we spent. And that's just how we strive to do business at high. And I think the numbers show it. Let's go on to the next slide. So it was a phenomenal quarter for Bitcoin mining. We did four and a half Bitcoin per day on average, 406 Bitcoin mined for the quarter. And our average exahash, again, this is period and June 30th, was 8.7 exahash. Keep in mind, we scaled during this quarter and we brought online Bitcoin. our first days of Iwazu, the first 100 megawatts. And since then, what's very remarkable, like in the first week of August, we've continued to scale the business. We're today operating at 15 exahash, doing 7.5 Bitcoin per day on average today. So again, we've grown our production by over 65% from where we were this fiscal reporting quarter. to where we are today in the first week of August. So looking forward and where we are today, really, we've continued to deliver growth and scale. Once fully built out, we'll have a 440 megawatt green energy footprint for Bitcoin mining. And again, we do this all with our capital allocation strategy optimized for ROIC. And moreover, we accomplished this all having the lowest GNA per Bitcoin mined in the industry and investing class lifetime. Let's go to the next slide. An overview over expansion in Paraguay. We've talked about this a lot. This is just an update of where we are. Again, 2025 has been a landmark year for Hive as we scale to 25x a hash. Keep in mind, we started the year at 6x a hash, and that's over 4x growth getting to 25. We're at over 15x a hash today, so you can see that we've been consistently growing. We're executing on our strategy and showing to the street that Hive really is a top performing Bitcoin miner. We're experts in the game. I believe pound for pound we're the best. And I think the numbers show that. So phase one was completed ahead of schedule. The first 100 megawatts at Iwazu, five exahash of air cooled. Phase 2, 6.5 exahash of hydro miners, S21 plus from Bitmain, 15 joules per terahash. You can see the aerial photo here. We are over two-thirds done. It's 4.5 exahash operating today at 6.5 exahash. In the next few weeks, Phase 2 will be 100% complete. And moreover, the third phase of construction, construction, sorry, the third phase in Paraguay, which is Valenzuela, the construction is essentially complete, and we will start installing ASICs in September. So super exciting. Again, we're operating over 15 days a hash day. And another big... Piece of news, we are fully funded and we have fully paid for our ASICs to get to 25x a hash. So between now and American Thanksgiving, we have ASICs arriving on an almost weekly basis to scale us from 15 to 25x a hash. That's it. We've deployed the capital. The CapEx is deployed. We're fully funded. And from here, it's just continued growth as the ASICs that have been fully funded and paid for arrive and get installed. So it's a very exciting time. And we've talked about using our free cash flow from operations to pay for all OPEX. And our Bitcoin CapEx has been taken care of. So we're very excited about that. Next slide. A metric showing our growth. So on an ARR basis, you can see how we are scaling the business here. And so we're at 350 million ARR today, and our fleet efficiency continues to improve because we are bringing on the S21 plus hydro in phase two and three of our growth in Paraguay. So that actually improves our energy efficiency from 19 to 18.4, ultimately 17.5 joules per terahash by calendar Q4 this year. And you can see how our ARR scales with that. So it's very exciting. And let's hop to the next slide. So you can sort of summarize that into two major catalysts. The completion of phase two gets us to 18x a hash. And said differently, it's about nine Bitcoin per day of production at current difficulty. By the way, difficulty is at 129 trillion. So we've updated our slides here just to reflect current mining economics. And of course, with 25x a hash by American Thanksgiving, we are... looking at producing approximately 12 Bitcoin per day at current difficulty. I'm here, of course, with Gabriel Llamas, our country president, Lou Grossi, our global COO, and Carlos Torres, our site operations director. I was just in Paraguay in June. I'm going to be back there in a few weeks. I'm super excited, big smiles on all our faces. As you can see, a lot of heavy machinery, a lot of earth being moved, a lot of PASICs being installed. Let's hop to the next slide. So as a result of those catalysts, you can see here, what does that look like? So let's use a $60 hash price scenario. As our efficiency increases, our gross mining margin also improves, right? And so as we get to 18 exit hash, that's roughly a 390 million ARR. Well, that'd be 230 million of mining margin. Like 25, and we're talking in a few weeks here, right? Like the target summer, we're on track. We put out press releases. Every time we hit an exahash, just to let the investors and all the analysts know, we are hitting our milestones on schedule. So 18 exahash is slated to come online in the next few weeks. That'll be $230 million of gross mining margin on an annualized basis. And by American Thanksgiving... $335 million of annualized mining margin at today's economic. So very exciting. And I think that we're a bargain right now. Our market cap is $500 million. And we have over 400 Bitcoin on the balance sheet. So you could do the math, right? That's almost $50 million of Bitcoin on the balance sheet. By the way, we have that call option that allows us to get our hodl back to over 2,000 Bitcoin. And our cash flow from operations will be over $300 million in the next couple months here as we anticipate our third and final phase to complete on schedule. Let's look at the next slide. Here's an update to our annualized mining margin scenario analysis with Bitcoin at $100,000, $125,000, $150,000. Now, the update's because we've seen a new all-time high with Bitcoin at $129 trillion. Sorry, Bitcoin difficulty. And we've also seen a new all-time high of Bitcoin price of $123,000 this week. So that's exciting. And really what you're looking at is $49 hash price, $61 hash price and $73 hash price. So we look at it as miners if you sort of use a $100,000, $125,000, $150,000 Bitcoin price. So with that being said, all this information is at the top of the chart. Really, what we are looking at, if Bitcoin treads in the mid-range here, let's say around $125K through the end of this quarter, our mining margin is about $345 million on an annualized basis. And again, this is based on the 25XI hash. in the next few months if bitcoin does rally to 150 000 we are looking at over 450 million dollars of mining margin considering our market cap is 500 million today and by the way we have about 50 million dollars of bitcoin on the balance sheet it's a very attractive time i think to be a high shareholder again you know we've worked really hard to scale quickly and bring this hash rate online And you can't perfectly time the market, but when the wind is at your back, it's obviously a nice situation to be in. So anyways, we obviously plan for downside and we manage risk, but this is what it's looking like based on different Bitcoin price points. So that being said, let's hop to the next slide. From today, where we're at 15x a hash coin at 25x, by American Thanksgiving, we still have 67% growth between now and then. And the rest of the industry is really kind of tapered off. I mean, CleanSpark and Iris have hit super scale. Mayor's got a bit of growth, 10%. Bitfarm, Cypher, and Riot, you know, 5% to 8%, not too significant. So, again, 2025 is really the year of high. That's why we're so excited. Obviously, the 300 megawatt growth in Paraguay has been transformative for us. And I think that, again, with where we are today and where we're going, it's very exciting. And that, again, is 15 going to 25 exahash. So let's go to the next slide. As mentioned, 435 Bitcoin held as of quarter end. We, as of today, we've deployed all our CapEx for the ASICs. And so we have ASICs steadily arriving between now and 25 exahash. We mined 406 Bitcoin for the quarter. Right now, we are trading at the most attractive enterprise value to adjusted EBITDA. And As mentioned, we're currently mining as in first week of August, seven and a half Bitcoin a day. Plus, again, we have over 5,000 NVIDIA GPUs in Canada and Sweden. We had our $20 million ARR target, which is very exciting. And of course, we're NVIDIA Cloud partner. Next slide. So we've talked about having an optimized ROIC strategy, and you will see that we lead the sector, again, in that metric. But it's not just about that, right? We're very disciplined with capital allocation. That's how we realize these yields and best ROICs. It's all data-driven. It's very mathematical. We're constantly scanning the market for ASIC prices, which, as you know, aren't very. ASIC prices are a commodity. And it's all really, uh, um, mathematically ordained, looking at ROI, understanding hash price, looking at your machine efficiency, and then performing sensitivity analysis on a multivariate basis. Because, again, you really have to plan for your downside. Everybody looks like a rock star in a bull market. It's about how do you do in a bear market. And, again, we've mined profitably every single quarter since the bull market of 2021, you know, through the bankruptcies of Celsius and FTX and all that sort of stuff. we mine profitably. And again, that is how we realize, I mean, we optimize for ROIC and we do mine our ASICs through the end of their economic life cycle. That way you maximize your yield on those investments, right? You don't dismantle or unplug ASICs if they're still cash flowing. And of course, we'll do things like optimize firmware, underclock, whatever need be based on hash price at any given time to make sure we truly maximize the life of an ASIC and upgrade when we see a signal in the market that we can get a sub one year ROI after operating costs. Next slide. So here's what it looks like. Trailing 12 months, we've realized 15% ROIC, and we lead the sector by a long shot. I expect this figure to grow further as more cash flow comes online. This current quarter, again, we hit 15 exahash. The previous quarter, which we're reporting on here, was an average of 8.7 exahash. And you can see how our peers there sort of in the 0% to 3% range is where a lot of our peers are. And, you know, even Cypher, you know, we're double that figure. They're 7.3%. We're 15.3%. And, you know, CleanSpark, a respectable 11.2%. But, you know, it's still trailing significantly. Let's go to the next slide. lowest G&A. This is done on a cash basis. And by the way, our revenue right now, again, we're $315 million ARR. And so we're looking at today, if we were to represent this bar chart, our G&A as a function of revenue would be significantly less than what we're showing. But again, this is based on our quarterly financials, 45 million of revenue. So that's roughly 180 million ARR based on the quarter. And we're standing at 12%, right? So if we were at over 300 million ARR, that would be closer to, 8%. But anyways, you can see we lead the sector. And again, some of our peers have really high cash G&A. We actually stripped out the share-based comp here just to look on a cash basis. And again, this is after direct operating costs, this is just corporate G&A, right? And so you see a lot of the peers are north of 20% just on G&A. So, you know, huge executive cash comp, tons of staff, you know, Huge marketing budgets, huge sponsorships. You know, we like to get up to all the conferences. We will sponsor. We'll have a presence to get the high game out there. But, you know, we're not spending $2 million on a booth or doing anything like that. And over time, those numbers really add up, and you sort of see here. And some of our peers have huge top-line revenues too. So take that into consideration when you reflect the percentage that's going towards corporate G&A. Next slide. A little summary of our data center footprint. So again, 440 megawatts of green energy mining hydro for Bitcoin mining business. And of course, we recently announced the acquisition of our 7.2 megawatt site in Toronto, which is sort of a 5.5 megawatt IT load. And, you know, this recent acquisition in Toronto is a perfect example of how legacy Bitcoin mining infrastructure does really provide an invaluable launchpad for the AI era. This new facility is going to be our first wholly owned tier three quality data center. We're going to leverage liquid cooling infrastructure. It's going to power our sovereign AI strategy for Canadian enterprises and government initiatives. operating in one of North America's densest fiber optic and research hubs. I mean, Vector Institute is based in Toronto, godfather of AI, Jeffrey Hinton. We're really future-proofing our business model by transforming existing sites built for proof-of-work into sovereign high-density GPU clusters, really to position ourselves in the explosive space. growth of the AI industry. Let's go to the next slide. We are operating at scale today, again, over 5,000 GPUs, which includes one of Canada's first supercomputed H200 clusters, a 63-node over 500 H200 GPUs, and all with InfiniBand. And again, you know, we hit that 20 million ARR. It's a very exciting standby. You know, we've talked about that Toronto data center that will house next generation liquid cool compute. Here's a beautiful photo of our GPU clusters here. And, you know, we're developing an enterprise tech stack to power the sustainable compute. So some really exciting things happening. And the way our GPU clusters are set up now through strategic partnerships, you know, they've got over 10,000 monthly unique accounts, right? So it's about operating and being able to serve a lot of clients. So there's a lot that goes on the back end of the complexity, especially at, you know, the software level. So stand by for super exciting news from BuzzFeed. HPC as we've branded our GPU PurePlay HPC business. Creative R's will be providing some more color on that. Next slide. And our revenue growth, the $100 million target for 2026. We believe that the Toronto data center with Blackwell GPUs will get us to that target until standby. It's about a one year retrofit to bring that Toronto airport site to a liquid cooled infrastructure that would house either b200s or b300s but market rates we're seeing that would get us that would add about 80 million arr to our current existing so it's very exciting and um standby for updates uh as buzz provides more press releases as that project advances and craig will be providing more color uh let's look at the next slide so let's just zoom out and look at hive as a stock trading against our peers so our enterprise value relative to our hash rate puts us at a very attractive price if you were to look at the average the pure average uh enterprise value to exahash is about 66 and that would put hive at a billion dollar market cap today and and people say oh yeah but some of these guys have have hpc strategies so do we we you know we've got it packed 100 million dollars of arr or 5000 video gpus um you know buzz is is buzzing it's super exciting so actually i i believe the first if not one of the first Bitcoin miners to actually have HPC revenue on our income statement two years ago. So we've been doing this for scaling and standby for huge and exciting news. And of course, next slide. As we get to our 25 exahash, And then you look at where the peer average is based on projected year end. It puts us at a $1.3 billion market cap based on the peer group average, again, looking at that exahash to enterprise value multiples. So I think that... We are doing great things at Hive. I think that we're building a lot of shareholder values. Our cash flow continues to grow. I think that our stock is due for a re-rating as we hit that critical mass and hit that critical scale. So it's been a great quarter since June 30th. We've continued to grow. Again, we've gone from four and a half to seven and a half Bitcoin per day. A lot of exciting things happening at Buzz. And Bitcoin is looking strong, this sector. And by the way, we had increased mining margins, I wanted to point out. Cash price was actually down quarter of a quarter, about $51 period in June, and it was $54 period in March. And our operating margins actually increased by 10%, went from 28% gross operating margins to 38% gross operating margins. Again, our average cost of power in Paraguay brings down our global average cost, so it That's turning in the right direction, of course, with the new generation Hydro Asics, improving our energy efficiency, breaking down the average cost for use of Bitcoin. And that will continue as we scale to 25x a hash. And now I will turn it over to the longstanding CFO in the Bitcoin mining industry, Mr. Darcy.

Thank you, Aydin. Good morning, everyone, and thank you for joining us today. For the first quarter, I'll be walking through the results. As a reminder, we are providing certain non-GAAP measures in our presentation today. The company believes these measures, while not a substitute for measures of performance, prepared in accordance with US GAAP, provide investors an improved ability to evaluate the 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 and analysis for the three months ended June 30th, 2025. Moving on to the next slide. I've ended the year June 30th, 2025 quarter with 204.3 million common shares, 2.7 million options, 9.9 million RSUs and 32, or sorry, 3.2 million warrants outstanding. And on the next slide, let's start with the key highlights for the quarter. For Q1, we generated 45.6 million in revenue and delivered 44.6 million in adjusted EBITDA. Production for the quarter was 406 Bitcoin equivalent, supported by stable operations and strong uptime across our sites. These numbers reflect disciplined cost management, a focus on efficiency and the benefit of our diverse global footprint. Let's now, on the next slide, take a look at how this operational performance translates into our balance sheet strength. We take pride in maintaining a very healthy balance sheet. As of June 30th, we held $24.6 million in cash, 47.3 million in digital currencies, and 34.5 million in receivables and prepaids. That totals 180.6 million in current assets against 52.8 million in current liabilities. We also maintained 33.7 million in strategic investments. This liquidity allows us to manage market cycles, invest in expansion opportunities, and avoid over leveraging the company. With that context, let's now look at how our earnings metrics have evolved, starting on the next slide. Shifting our focus to our gross operating margin on a year-over-year basis, comparing the results of this quarter to Q1 last year, our gross operating margin, which is calculated as total revenues, minus direct operating and maintenance costs and high performance computing service fees increased to 15.8 million in the most current quarter compared to 10.7 million in Q1 last year. In this most recently completed quarter, we are reporting a basic income per share of 0.19 cents compared to a net loss of 17 cents per share reported for Q1 last year. Taking a look at our revenue increases year over year on the next slide, we generated total revenue in the first quarter of fiscal 2026 of $45.6 million versus $32.2 million in the previous year's first quarter. The revenues compared to the same quarter in fiscal 2025 can primarily be attributed to the expanded hash rate that we are experiencing from the Paraguay expansion that is well underway. As mentioned previously, our gross mining margin, which equates to our revenues minus direct operating and maintenance costs and high-performance computing service fees, increased to $15.8 million, or 35% in the most recent quarter, compared to $10.7 million, or 33% in the prior year comparable quarter. As a direct result of our optimization of our mining fleet, the expansion in Paraguay, and improving overall operational efficiency. Now, if we zoom into just the last two quarters, you'll see an even bigger improvement on the next slide. Comparing our current fiscal Q1 quarter to the previous Q4 quarter, we generated revenue in this Q1 quarter of fiscal 2026 of $45.6 million versus $31.2 million in the previous quarter. The increase in revenues versus the prior quarter was impacted by increased exahash capacity with the Paraguay expansion, an increase in the price of Bitcoin, resulting in higher revenue from digital currency mining, and we also had higher high-performance computing revenues. Our gross operating margin increased to 15.8 million or 35% in the most recent quarter compared to 8.8 million or 28% in the prior year's comparative. This increase in gross operating margin versus the prior quarter was greatly due to the comparative BCC prices and resulting revenues and increased XASH. And on the next slide. I'd like to remind our stakeholders that our net income is comprised of our operational earnings or cash flow, plus our investment earnings, which includes realized and unrealized earnings, which often includes non-cash charges. Our adjusted EBITDA in this quarter ended June 30th, 2025, was $44.6 million versus adjusted EBITDA of negative $8 million in the June 30th, 2024 period. I will highlight again that adjusted EBITDA is a non-GAAP figure. For this completed quarter, we experienced net income of $35 million compared to a net loss of $18.3 million in the previous year comparative. On the next slide, the quarter-over-quarter view tells a similar story. Our adjusted EBITDA in this first quarter of fiscal 2026 was a profit of 44.6 million versus an adjusted EBITDA loss of 30.7 million in the previous 2025 Q4 quarter. In the first quarter of fiscal 2026, we experienced net income of 35 million compared to a net loss of 52.9 million in the previous Q4 quarter. Q1 fiscal 2026 was a solid quarter for Hive. We delivered strong revenue, expanded margins, and maintained a robust balance sheet. Our operational discipline and cost control measures continue to position us well to compete in a challenging environment and capture opportunities for growth. I want to thank our loyal stakeholders and encourage them to follow our expansion efforts over the next six months.

Hi, everyone. My name is Craig Tavares. I'm President and COO of Buzz High Performance Computing. I'd like to just do a quick introduction on Buzz. We're a fully owned subsidiary of Hive Digital Technologies. We're actually one of the first Canadian sovereign AI cloud providers. And I'll explain that a little bit more later. But we essentially own and operate large GPU clusters and vertically integrated data centers around the world. Our legacy as a crypto miner provided a stepping stone to become one of the leading AI cloud providers as we deployed our HPC and AI business early last year. Bitcoin in general has actually become that large catapult for AI in general. And if you look at the large data center providers and GPU cloud providers in the market today, you could see that Bitcoin had become the catalyst for those that had access to power and land to develop data centers of those large GPU clusters that consume the data centers. So Buzz in general is very different than a lot of the other providers in the market because we focus on delivering a full suite of infrastructure services and solutions for AI. And we do it by offering a local touch in the domestic markets that we operate in, but we maintain a global reach. We currently operate in Sweden and Canada with a fleet of over 5,000 GPUs. We're a certified NVIDIA Cloud partner, really building to the highest performance standards. And we're redeveloping a powered facility that we own in Sweden to become a new Tier 3 data center. It's strategically located down the street from a metadata center, which means that we have rich network access. And that's important when you look at the large number of platforms and applications that you want to host in your data center. But we offer a wide range of infrastructure and professional services catering to that AI development that, you know, we hear about at the mark today. And being able to really accelerate the AI development is important because it requires that accelerated compute infrastructure at scale. We hit a revenue growth ramp at record speed this year, and it's really layered in with positive cash flow, and now rapidly we're scaling to 100 million ARR. Being sovereign really means that we secure and guarantee your data, that you're also means that that data resides on your nation's soil and immune to foreign policy. This is a large part of our go-to-market. In addition to that, it also means that the infrastructure and operations are all domestically owned. So we operate at scale as a sovereign provider, and we are the experts at building and optimizing large GPU supercompute clusters. We like to really... help promote the development AI by democratizing access to the 600 compute hardware. And it really has become a unique thing because it's not easy to manage. It's not easy to maintain. Only the few that have that experience and knowledge that know how to do it will survive in the market and be able to scale in the market. We also do it in a very sustainable way. So we launched green GPUs in the market some time ago based on the fact that all our data centers are powered by renewable energy. And our data center, as an example, operates with the highest efficiency. So we run some of the lowest PUs in the market, which stands for power usage effectiveness. And that just means that we're using power the most effective way so that we reduce the amount of power consumption to cool and operate the data center, but also create higher margins in our business. So ultimately, when you look at all those vectors, we're bridging the gap between AI and sustainability. And the last thing that I want to talk about is really the customer service that we deliver and solutions that we deliver. So first with customer service. We have some of the quickest onboard times into our platform in the market. We have some of the fastest response times, and we're well-known in the market to deliver an amazing customer experience, but we back it up by performance guarantees as well, too. So if you do business with Buzz, we support that with SLA or a service level agreement. to back up those guarantees for response time, uptime, and at the end of the day, making sure that, again, your environment stays performing to the highest level. When you think about Sovereign and you think about the solution set to deliver Sovereign, it's become a new standard in the market. And some customers may not need sovereign because we cater to a broad set of customers, whether you're a researcher, a startup, scale-up, and then across the other side of the spectrum to mid-market, enterprise, and government. All of those customer segments can use our platform and do use our platform. And at the end of the day, Sovereign has just become, again, a new standard that defines what we call an enterprise-grade platform. And an enterprise-grade platform means that we maintain the highest security level, resiliency level, reliability, and high performance that we can offer to the market. Starting with our data centers, we operate in tier three plus data centers, again, maintaining that high performance resiliency in the markets that we operate in. Inside the data centers, we deploy the high-performance clusters that I spoke about earlier, which is based on NVIDIA GPUs, InfiniBand networking, and vast data storage. On the virtualization layer, we deliver bare metal servers. Or if you want containers, we deliver managed Kubernetes and dev pods. Perhaps you need virtual machines to run your environments layered with Slurm. But whatever it is, we can customize and tailor that environment for you. On the tooling side, being able to build data pipelines work for AI. So we offer all the tools for data pipelining, data prepping. And then if you're training a model, tuning a model, or running an inference endpoint, we have the capabilities to support that as well, too. And then we've really started to build out our agentic workflows as well, too. So if you're developing agentic AI, you can do it on our platform. Equally as important as scaling out our sovereign AI cloud strategy is investing into our own data center assets. So where we owned land and power, we really looked at developing data centers in those markets. Boden is an example of that. So in Sweden, we have owned land and power with a shell and a building that we're developing into a tier three high-performance compute data center. It will be liquid-cooled with high-density racks, so it can support the most demanding workloads possible in the market. So we'll be able to scale our GPU infrastructure out within that facility. And in Toronto, we just did a recent acquisition of a 7-megawatt facility that can scale higher. And Toronto, again, was a key market for us because really when you look at data center development, it comes down to three major things. One is access to the power to scale. the type of power, cost of power. And then the other one is really a geographic location based on its network connectivity. So really having that low latency to the internet highway is super important to support many different applications that we see today, whether they're traditional applications or AI applications for inference. You really want to maintain the fastest network access possible to that data center. And then the last thing is really being in a market where we have rich ecosystems built around AI. And that's what Canada is in general, and especially being in Toronto, we're at the center of the epicenter to some of the world's world-class leading institutions for AI, such as Vector, Mila, ScaleAI, AIMI. So, again, being in that market was super important for us. Both of these facilities will go live next year. In summary, you know, we really achieved... maximization across other TPU clusters earlier this year so that, you know, we ensured we had an ability to really hit that ROI, maintain a high level of profitability, achieving, again, just amazing EBITDA on the infrastructure that we deploy and monetize. And outside of that, you know, we've built some amazing pipelines of customer demand. So it's prompting us, again, to expand as rapidly as we can in a lot of the local markets we operate in. But we leverage all our existing power facilities and access large-scale power to accelerate the growth of our data center footprint, again, within Canada and Sweden, because it gives us access to the North American markets, to the European markets, And it allows us to maintain really the capacity of scale when the market needs it. Deploying the latest and greatest cutting edge NVIDIA GPUs is one of the things that, again, we've done really well over the last couple of years and then really continuing to do that in the future. But we're continuing to build out really, again, this compute infrastructure in the market that caters, again, to the sovereign markets and also the global markets. This is not trivial because it's something that even the largest cloud providers haven't quite figured out as yet. And we do it at a fraction of the cost compared to some of the largest players in the market. But in the end, the cloud has evolved, and Sovereign is a new standard. So Buzz is really the solution to this new shift, and we're helping to provide the digital infrastructure to accelerate AI innovation domestically and around the world.

Thank you, Craig. That concludes our Q1 2026 earnings call. Thank you for joining, and we look forward to speaking to you again soon.