HIVE Digital Technologies Ltd.

Hello, and welcome to today's webcast on Hive Digital Technologies financial results for the six months ended September 30th, 2025. My name is Nathan Fasch, Director of Marketing and Branding at Hive, and I'm pleased to be your moderator for today's call. Before we get started on slide two, would like to briefly note the disclosures for today's presentation. Set for statements of historical fact, this presentation contains forward-looking statements within the meaning of the US 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, and 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 8K furnished to the SEC. On the next slide, I'm pleased to introduce today's presenters, Frank Holmes, Executive Chairman, Aydin Kilik, 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. Let's get into my macro recap, and I'm going to try to weave in some of the most recent past couple of weeks sentiment, unpacking the drivers of short-term negative sentiment in data centers and AI infrastructure, which I believe is just setting up for a phenomenal buy for as an industry whole. I'm going to try to explain this in this presentation and why Hive is so uniquely positioned in this macro theme. Next, please. Well, Hive's journey to really accelerate its growth in Bitcoin mining, it was stalled after Putin invaded Ukraine and sources of hydro and geothermal electricity around the world all of a sudden went shut down or very small. There was no scaling ability. until the opportunity a little over 18 months ago when I reached out to the president of Paraguay and flew down to meet him because they have surplus electricity. And I'm going to try to walk you through sort of this journey that this president's really quite unique. President Santiago Pena is a former rugby player. He is 47 years old, studied at the University of Columbia, New York, worked in Washington with the IMF, and has had an incredible journey in in paraguay and building the country and becoming recognized and every time i go down i find something new that i love more about the country but the country is very unique and very pro-america So to give you an idea of all this negative news about Latin America with Venezuela and some of the drama of the Panama Canal, and then we have for sure Colombia's president. I think it's really important to look at how communism and socialism has penetrated deeply into Central and South America, but not in Paraguay. um and and i think that that's what's really important for investors and why we felt so confident this is where hive would scale its bitcoin operations sourcing green energy surplus energy and really also helping out the overall economy grow and uh and i'll show you some of the other unique things we've done in schools that are nearby us. But President Santiago Pena was the sole Latin American head of state present at the 2025 Gaza Peace Summit. So this is something else that's really important, who's pro-Taiwan and one of the largest suppliers of food commodities for Taiwan. I believe for a population of about 6 million people, they uh produce about food for and which they export for 60 million people next please so here's uh our president of the country gabriel lamas who's a electrical engineer worked for the government's utility company uh as you can see he's very tall compared to the president who's like six two uh gabriel's uh like six four six five uh and uh he's just a been a great leader of maximizing the whole scaling, the concept of scaling, and coordinating and working with our CEO, Aydin Kilik, who will speak in a few minutes. Luke Rossi, who's our Chief Operating Officer, and Bill Gray, our CTO. Gabriel's done a phenomenal job accelerating the scaling from six to 25, the journey to 25. We've announced for 24. And we're very close here to 25. So we feel very confident of hitting that. So you can see here, Gabriel was recently with them. And there's a picture when I first met the president a little over 18 months ago. And the economy is one of the strongest and steady growing economies in Latin America. So that's another real positive sign for the country. Next, please. As a money manager, I always say that government policies are a precursor to change, and Peña's policies for fiscal development are outstanding and his push to make sure that every child is fed and then upgrading the school system. But we're helping with that, and we're helping especially in rural areas. And so this story, what I'm trying to point to you is that Paraguay is powering high velocity ascent to 25 exahash. And what's interesting is that yesterday, sorry, two days ago, is November 12th, and that is Hayes Day, because in 1870, there was a tragic war, a trilateral war with Uruguay, Argentina and Brazil trying to take over this massive green belt country and they wiped out genocide to all men and boys to the age of 10. It was tragic and it was President Hayes that came in that resolved and that they kept about 60% of their land. And to this day, the country celebrates November the 12th, Hayes Day, and the largest state in the country I'm pointing to here is President Hayes. So there's a very strong bond with America that when I talk to investors, the average American is not aware of. Next, please. So part of that journey, in addition to rapidly scaling and building out data centers, campus across the country, building Buzz is also, it's creating lots of local jobs and construction. We've shown you a visual of lighting the streets of Valenzuela, a city near us, but then it's also for the kids. And this is a thank you from the former leader, a mayor of Valenzuela, for lighting up the streets and making the streets safe at night for women and children. Next, please. So when we went out and saw the schools, which are very close to us, I'm talking about a quarter of a mile, half a mile away, we started on this process of upgrading these schools and putting in air conditioning, new electrical, painting, new chalkboards, infrastructure. And you can see here a play station here for kids so that they can go and play and enjoy. these facilities and also for embracing data centers there's a big great disconnect even in very advanced countries like sweden that take it for granted all the apps on your mobile phone and netflix and spotify they think it's all free and they don't realize no data centers no digital realm that we all live in and we rely on. So this is sort of a visual of relating this to the children of Paraguay. Next, please. You can see the picture. This is the key people here. You can see Gabriel Lamas is in the middle, and he's kneeling down because he's so tall. But behind is myself, and you can see to my right, Luke Rossi, and you can see to the left is Aidan Killick, our CEO, who's also an electrical engineer, like Gabriel Lamas is. And beside Gabriel is Craig... tovaris and craig is our president of buzz which is building out our ai business and uh you can also see johanna thornblad who's the president for uh sweden and uh you can see one of our independent directors and other key people that have been very much involved in the growth and acceleration. Investment banker Jimmy Brown is there. So it is lots of key people that are helping drive this. But behind the visual is the largest, biggest hydro dam in the Western Hemisphere. It's five miles long. It's epic of size, producing over 10x a hash of electricity, five for Brazil, five for Paraguay. Paraguay is a small population, so they've been selling some of their electricity to Argentina, which has been only really horrific for their fiscal management of a country. So it's a small country. And that's what's good about Bitcoin mining. Not only do we build this infrastructure, you need substations from this high voltage electricity, and we build those. And then we build a campus of data centers, and then we end up hiring 50 young engineers that there's no real job opportunity for them. But now there is with Hive. And so it's really, for us, an exciting part of our journey of creating this from little kids' education to creating career paths for young engineers. Next, please. So on that journey of going to Latin America, I really want to show you that this year has been a phenomenal year for Latin America, 40 ETFs, so the 40th biggest market cap stocks versus the S&P. They've crushed it. They've really outperformed the overall S&P 500. And I think that that's what's really important for investors to recognize. Next, please. So in this big build out, I call it an arms race. China has significantly surpassed America in building data centers. But before that, they built power. And the power came from hydroelectricity. And they got the water from the glaciers in the Himalayas. and rerouting water from Tibet down to creating dams after dams and building out a huge grid. And America has to get caught up and it is. And under the stewardship and leadership of President Trump, as soon as he came into power, as the CEO of Nvidia says, that impressed him the most about Trump is that he embraced the need for AI and power and data centers. And here is a classic, Where Bitcoin miners were the first to go. This is in West Texas, Sweet Abilene, Texas, where Caruso was using flare gas, surplus energy from solar, wind and flare gas. Today is the largest capex spend in America. I'm told in the world right now. in fast-tracking a $500 billion AI data center vision from former Flaregas to a Bitcoin miner. I'm really trying to highlight that, that Bitcoin miners were the early pioneers of building the necessary infrastructure wherever there was surplus or additional or wasted electricity and creating taxes for the local economy, creating jobs for the local economy. This particular site here created 2500 construction jobs. And when that's all done, it'll be 500 jobs and a big boom to the local community. Next, please. So Bitcoin mining, the goal is of 2.8% of the global hash rate. We really believe the blue sky opportunity in Paraguay is probably a gigawatt of electricity. That's the potential when they use the word blue sky and not going to the moon. That's way out there when you talk about blue sky. Paraguay, no doubt, just makes the perfect place for us to expand our footprint. Backed by the most consistent, stable executive leadership team in the sector. I'm very proud about Hive. Hive's CEO is the longest standing, CFO is clearly the longest standing. The turmoil in the industry It's been just phenomenal. And and we've been able to do this and have operating income no matter how volatile Bitcoin has been. We have always been able to squeeze out operating income and have huge expansion, which we've done this year in with this growth. The most efficient tier one Bitcoin mining data center operator. You know, that's really important for you to recognize spanning nine time zones in three countries and five languages. We have the lowest industry SG&A per Bitcoin mine and best in class for uptime and efficiency. So we know a lot about Bitcoin mining and we also know in depth and breadth more than all these other Bitcoin miners that are going into the space of AI. We've been doing it for three years. I believe we're quite successful. It's much more complicated. It's much more detailed and substantially more expensive per megawatt per chip to go build out a tier three HPC or high performance computing data center for AI. Cambridge University has said it's 33 to one from a Bitcoin mining. So what Bitcoin mining does is it sources electricity, builds out the necessary infrastructure, and then you go as further things are developed in an economy such as dark fiber optics to move the data along. It takes time for that in many emerging countries, but for Paraguay, I have to agree with Secretary of State Rubio of saying that Paraguay has the potential to become the data center capital of Latin America. And we hope to be a significant part of that HPC build out as we are doing what we're doing now in the Bitcoin mining. So we have this proven track record. We're now scaling an AI. And let me walk you through a few comments on that. Next, please. So November the 10th, Hive reports October production 289 BTC achieves the 24 EXA hash and completes Paraguay expansion while fueling Canada's tier three in AI data center growth. Next, please. We've shown this growth by buying a former Bitcoin mining data center within the city of Toronto near the airport. So uptime is all the time. And going from tier one to tier three will be much faster than starting from scratch. This is a perfect ideal location. And we feel that... with that this will be a two-tier payback and uh clients so we've already built out 10 000 customers around the world but the unique relationship we have with belt canada is transformative besides going from tier one bitcoin data center to tier three uh which is much more expensive because you need much more air conditioning because you actually build a brain. When you think of these H200s and Blackwells, these chips are more intensive consumption of electricity. So you need much more air conditioning and the HVAC and you need more support. So those dynamics are really important for investors to realize. Besides headlines, it takes time to do it. We've done it and we're now expanding rapidly. Next, please. So when we look at our suite of assets around the world, one of them is that we bought an asset besides Toronto, we bought it in Northern Sweden, Boden, near Facebook, and we'll convert a data center there like we're doing in Toronto. And that will go through, it's already started that process, that conversion. But then we said, you know, we have New Brunswick on the border of Maine. And this is a beautiful campus of data centers. So we made a press release just recently. We bought more land, secured the position to build out our tier three, and it'll be the biggest pure HPC data center complex in Canada at this time. So we're very excited about this as a tremendous blue sky opportunity as we're going right now for this particular asset. First is a tie up the land, we have the electricity, and now to get the engineering complete drawings so we can start the construction in the first quarter of next year. Next, please. So Buzz High Performance Overview, HPC. So data center locations right now, today, is downtown Montreal and Stockholm, Sweden. We have GPU clusters. We have over 5,000 GPUs and AI cloud services built Purpose has built AI cloud with managed services and an agenda refinery. That means that you can provide more services, especially when you have 600 Salesforce at Bell Canada that needs to get caught up quickly. And we're the strategic partner for that. We've already shown what we can do. We're doing 100 million in revenue, and now we're going to scale it over the next 12 months fivefold. Blue Sky, well, I just showed it to you. We're going to go through a transformation of Tier 1 to Tier 3 HBC data centers. And I think when we look around the world right now, the back of the envelope is 90 megawatts. And if you start looking at other assets we're working on securing, it's much higher. And the long-term vision and opportunities for Paraguay are just immense. So we're very excited about this growth opportunity. But unlike other people, we've done it. And we know what it is to build a data center. We know what it is to scale tier one data centers. And we know what it takes to build tier three. And we are scaling. Next, please. This was a very important transaction for BuzzHPC in Canada because Bell Canada is the largest telecom in the country. This partnership is to help build sovereign AI infrastructure through the Bell AI Fabric Initiative, advance NVIDIA hardware and networking, deploying NVIDIA Ampere, Hopper, and Blackwell GPUs with Quantum II InfoBand across Bell's fiber network and data centers. canada is huge opportunity because they're way behind highly educated uh and and they've just been slow but under uh prime minister kearney uh this has now been elevated to the very top with an ai minister uh this is full tilt on the country uh doing everything to get caught up just like america is getting caught up to surpass china Tremendous initiatives, so this is very positive and constructive. And the initial deployment and national reach is 5 megawatt GPU facility in Manitoba with plans for the national expansion, like we talked about Eastern Canada. And then data sovereignty, security, and sustainability, it's become a very important issue. for many of these countries. So we believe that Hive has its head office in Texas reporting for NASDAQ and doing financial reporting under GAAP. But the intellectual capital and the buzz, are there Canadian companies that would qualify under the sovereignty of Canada and wouldn't be a challenge to the degree that people are worried about, like in France, over the Patriot Act. So I really think some of this becomes really important to recognize how uniquely Haiva's position for this. Next, please. There's our our growth. February was 13 million. May was 20 million. And we're hoping that to get these others deployed as fast as possible to get us up to 40 million in the fourth quarter, which is going to have this run rate, which is going to be for us. Our year end is March. And then going into 26, based on all the projections we have from hooking up our suite of NVIDIA chips, looking at those contracts, it looks like a very conservative run rate of 100 million annual run rate with extremely attractive margins for growth. Next, please. So Hive's top institutional investors are Citadel Advisors, Schwab Crypto Thematic ETF, Amplify Investments, Tidal Investments, and Charles Schwab as a discount broker. I remember a few years back, it used to be Robinhood. And but now it's showing up with Charles Schwab and Charles Schwab bought TD Waterhouse. So it's just great because they are the biggest beast now. And it's great to see broad retail in addition to institutions that are here. and met with the fund managers of most of these companies this week in a conference that Iden Killick, our CEO, and I attended in Miami that was put on by Cantor Fitzgerald that was called Crypto, Infrastructure, AI, and Energy. Big, big theme going forward. Next, please. So we celebrated four years on NASDAQ and it was just a major home run. We had a hundred people out for it. We just, the ministers, two ministers from Paraguay and New York City came out for it. I see the president of Bermuda is there, Tim, and I see auditors. I see just a huge crowd and We want to thank everyone for helping us celebrate that. And there's Adam, sorry, there's Aiden hitting the bell. And that's my daughter. And you can see Craig Tavares, the president of Buzz, his daughter. So it was a home run for us all to be participating. But what's happened short term before I pass you on to the other smarter executives is this sort of AI adoption. There's been some really important research that's come out from Morgan Stanley that's been circulated about framing the AI boom. And I'm a big believer that the AI boom is for real, it's there, but sentiment drives a lot of these markets short term. And all you have to do is get these clusters of calling bubble. There are so many analysts who have got a PhD, they say, in bubbleology, but they don't really understand what is just driving the secular market. And we're due for this correction, which we're getting, which only sets it up for a more attractive buy. If we were valued at other data centers, seeing these other companies in the Bitcoin mining that do not have, Any high-performance computing facilities today do not have any AI revenue generating for their NVIDIA chips, have valuations that if you apply to Hive, Hive will be at $20, just to give you an idea of sort of the great opportunity that we have as we continue to scale. And I think that it's important to just recognize what a lot of this noise that's taking place is short term. And it gives you just this opportunity that you see CoreWeave go through a correction. It's just part of the delays and disappointments on the infrastructure build out that some of these people are experiencing. But it's not going away. This is a arms race, just like the push by NATO in Europe and Canada and the US of huge military spend, a huge rebuilding of all the military. And that's just not tanks, but it's tanks with AI, with GPU chips, and they need data centers. And the digital economy is going to continue to need, and it's going to continue to grow. We have these things they call phantom demand. We experienced the Bitcoin mining when the Chinese shut down Bitcoin mining and everyone from China started making these incredible bids for energy all over the world. They were just phantom trying to see if they could secure some energy. And it comes up, but I just think that my... history of these cycles um is that we are still very early innings on the adoption and when you look at a pure data center and the multiples they trade out to revenue and the multiples they trade out to cash flow uh really makes some of the Bitcoin miners outstandingly attractively priced and and in particular my biased position is with hive when I look at multiples to revenue as we are powering forward with our twin engine turbocharged strategy of both Bitcoin mining growth, not only this year, the biggest growth. We also plan for next year. When I looked at our peers, we have the biggest growth profile for Bitcoin next year, and we still very bullish about it. But at the same time, we're pretty conservative of how we write down the value or depreciate our ASIC chips faster over two years, because every four years, the And what you're seeing, which I remain very positive, like Moore's law, is that you are witnessing the technology of energy efficiency that going back 10 years ago was like 1,000 joules per second consumption of energy for a chip, ASIC chip. And now it fell a couple of years back to 30. And now they're coming in at 2%. 12, and people are working on eight and six. So by the time of this next halving, I think there'll be a two and three. We're just with AI going to be able to build more energy efficient data centers, more energy efficient ASIC chips, And that's only going to mean less consumption for the global Bitcoin network that's decentralized. But it means that you're still going to be very profitable business and being significant and laying the railway tracks for the growth in high performance computing. Thank you.

And thank you, Frank, for that executive overview. Frank, of course, is the co-founder, executive chairman of Hive. Now I'm going to get into a bit more of a deep dive on our accomplishments for this quarter and our strategy for 2026. Let's hop into it. So it was a record breaking quarter for Hive. 87 million of revenue of that, 82 million from Bitcoin mining and over 5 million from our HPC business. So we're at 20 million ARR for AI cloud business, which is phenomenal. And a $42 million gross operating margin for the quarter. that translates to a 31.5 million adjusted EBITDA and a 23.8 million EBITDA with 38 million of depreciation this quarter, that leads to a net loss of 15.8 million, which of course is on a non-cash basis. But moreover, What I'm really proud of is that we realized an 18% ROIC this quarter on an annualized basis. And finally, as of September 30th, we had 210 Bitcoin in the treasury. Although in addition to that, we have 1,992 Bitcoin pledged. So between our pledge and what we have in the treasury, that's about 2,200 Bitcoin pledged. So it's been a phenomenal quarter and I'm really proud of how our balance sheet deployment to scale the business was, in my opinion, a great success. Let's go to the next slide. We are very serious and very dedicated about having best-in-class ROIC as the numbers this quarter once again affirm. And it comes from disciplined capital allocation. We always focus to get the best ROI when we buy ASICs. ASIC purchases are the biggest variable in realizing an ROI, and then from there, free cash flow. your investments in the Bitcoin mining business. We're experts in that, and I believe pound for pound, we're the best in the industry at that. We also lead with best in class uptime. We run our assets through their entire economic lifestyle to maximize free cash flow and profit on our Bitcoin mining business from the investments we make. And by the way, we also lead the sector with corporate G&A, and we have the numbers to back it up. Next slide. overview of the global business currently we're mining approximately 10 bitcoin a day with 25 exahash capacity installed and this was fueled by a transformative growth in paraguay where we grew our business from 100 million dollars uh from fiscal 2025 to currently we're at 400 million arr Additionally, we have 5000 GPUs between Canada and Sweden operating AI cloud, and that is currently at 20 million ARR as per quarterly financials. But the really exciting news is our target to grow to over 200 million ARR between both AI cloud and also hyperscaler colo. and finally we talk about our capital deployment strategy prioritizing roic so a double click on our btc pledge so we have great downside protection as well as upside so the almost two thousand bitcoin that we pledged twelve hundred thirty four bitcoin were pledged at eighty seven thousand And so what that does, it gives us upside with Bitcoin today at approximately 97,000, even with Bitcoin at 97,000, there's over 12 million upside in our currently pledged Bitcoin. Moreover, we additionally had pledged 758 Bitcoin at an average of about 115,000. And so that's $14 million of downside protection from the other component of our pledge. So collectively, if you look at the downside protection of $14 million, the upside potential of the $12 million, Even with Bitcoin having corrected where it is, the value of our pledge has been accretive to the tune of about $25 million, which I think is very phenomenal. And it just shows that we're very methodical and thoughtful. We've used our cash flow from operations. We used our HODL and earlier this year, some of the ATM to scale the business to get to that $400 million ARR. And then we have some very exciting things in the pipeline for the AI and HPC business with Buzz. Let's hop to the next slide. So the dual engine strategy of growth. Cashflow from the Bitcoin mining business helps us to scale BuzzHPC, where we have three AI data center expansions going to tier three plus, and we'll get into that. But right now, at glance, the Bitcoin mining business, 25x a hash, a blended fleet efficiency of 17.5 jewels a tera hash. We're at 400 million ARR, as we mentioned, approximately 50% operating margin. for electrical costs based on current mining economics and it's a footprint of 440 megawatts of green energy now the exciting news we recently announced in addition to this we have an additional 100 megawatts that ande and the government of paraguay has approved for high which we're very exciting about that gives us the potential to get to a capacity of 35 exahash for the end of next year and that would bring our fleet efficiency down to 15 joules a terahash if we were to upgrade with the latest generation machines. Now, we only buy ASICs when it satisfies our ROI targets. So we're focused on building the infrastructure. And the other really great piece of news is that this is at the Iwazu site, which we'd purchased from Bitfarms. And originally, it was designed as a 300 megawatt site. so what we're really excited to announce is that the incremental cost to bring that 100 megawatts on is only 250 grand a megawatt recall that the all-in purchase price for this site and even to build our valenzuela site is 400 grand a megawatt all in that's land substation buildings well the good news is that all the civil work is already done for the additional 100 megawatts at iwazu so all we do is we drop in the transformers for the substation and then the hydro mining infrastructure 250 grand a megawatt very incremental and attractive cost to bring online the capacity and with that capacity we have optionality we can either install next generation asics of course we always shop for asics at about a one-year roi or we can look at other strategies to monetize that 100 megawatts of green energy and we have ordered the long lead time items namely the substation which are expected to arrive in q1 of 2026 so stand by for updates on that And by the way, if we were going to do 35 exahash, the current money economics, that would be about a 550 million ARR for end of Q4, 2026. Moreover, let's talk about Buzz. We have a very exciting year ahead for Buzz. We've recently announced that the additional 6,000 Blackwell GPUs, B200s for H1 and B300s for H2, will come online in three data centers. bringing our current 5,000 GPU cloud to a total of 11,000. We're going to double the size of our GPU AI cloud by the end of 2026. And moreover, with the conversion of New Brunswick, we bought additional land. So that campus is now over 32 acres, sorry, over 30 acres. And it's currently an operating tier 170 megawatt data center. We'll convert that to tier three plus, and that will provide us some hyperscaler colo. You add that all up, it gets us to a target of 225 million for the end of 2026 for buzz and collectively our target for the end of 2026 can be 750 million dollars uh for both the dual engine strategies of course we prioritize roic and so on the scaling of the bitcoin mining business we will scale that if the ASIC investments allow for ROIC and they're attractive. And of course, on BuzzHPC, we will be bringing online these GPUs in our partnership with Dell for the first phase of our Dell partnership. Let's go to the next slide. so at a glance the global footprint for buzz now this is just hpc we currently have approximately 5000 hopper which means h100s and h200 series gpus about 4200 a series gpus and those are in sweden and quebec and so the additional six thousand Blackwell GPUs that we're going to bring online are coming on in three tranches. One is through the partnership with Bell in Manitoba. One is through the Toronto Data Centre, which we recently closed on the purchase of and announced the conversion to Tier 3 liquid cooled. And then, of course, our facility in Boden, Sweden, which will also be Tier 3 liquid cooled. So Toronto and Sweden are owned Hive and Buzz wound and operated data centers beyond the land and buildings and we'll be converting those liquid cool those will come online in Q4 of next year and each facilitate 2000 NVIDIA Blackwell series GPUs. And so this shows you the map and the footprint of how we scale from 5000 GPUs to 11,000 GPUs in our cloud business. And then of course, with New Brunswick, the conversion of that to a tier three colo, with, you know, an expected it to live possibly 50 to 55 megawatts, tech market rates in that sector would be about 85 million additional ARR. And so this gives you a high level glance of how we incrementally scale our 20 million ARR to data to over 200 million target for the end of next year. Next slide, please. so beautiful photo of one of our h200 clusters operating now to help clarify on the GPU business, because we're doing both GPU AI cloud as well as to target hyperscale or colo in New Brunswick. So if we focus on the GPU cloud business, the growth is 20 million going to 140 million. And that reflects the growth from 5000 to 11,000 GPUs by bringing on an additional 6000 Blackwell GPUs in those three facilities. And, you know, currently we have a good mix of long term contracts for three to 12 months where we're monetizing our 20 million ARR as well as So on demand, we have over 10,000 unique users through our partner networks. And I think the really exciting thing is to highlight that we're focusing on liquid cooled tier three data centers for the future as these NVIDIA racks get more and more dense. We've heard that the Blackwell GPU clusters for B300 could be as dense as 180 kilowatts per rack. And rumors are that Ruben could be as much as 200 plus kilowatts per rack. So it's building for the future. And of course, we're really excited about that partnership with Bell. Let's hop to the next slide. So this was released this quarter, a very exciting a initiative where Bell is Canada's largest telecom provider. They've partnered with BuzzHPC and the team's done a phenomenal job to bring this deal to fruition. And we've just executed all the operating agreements. And so we expect that the first cluster of B200s, which will be operating in Dell servers to arrive at the end of this year and go live in January of 2026 and bringing online that initial incremental ARR. And this will be part of the sovereign data strategy, Canadian owned meeting the residency requirements. Bell is a, sorry, Buzz is a Canadian company with a great pipeline of data centers in Canada through Bell and the Toronto data center. So this is all very exciting. Craig Tavares has done a phenomenal job advancing that initiative along with Mario Sergi and our HPC team. Next slide. So by the numbers, again, on a timeline basis, this shows a current 20 million ARR. And as we bring those incremental clusters of B200s into the Bell partnership, 1,000 for Q1, another 1,000 by Q3, each cluster of 1,000 GPUs on long-term rental basis. So we're forecasting this if we just go two-year long-term contracts and you look at market rates on semi-analysis to see where H200s and B200s trade at. So this is based on dollar per GPU hour long-term two-year contracts. is about $20 million per cluster of 1,000 GPUs. So we're at 20 million today. If we bring on 1,000 GPUs in Q1, it gets us to 40 million ARR. Another 1,000 GPUs in Q2, Q3 gets us to 60 million ARR. Now, the big RAM is Q4 next year because that's when the conversion of Toronto and Bowdoin data centers will be complete. Each of those will bring on 2,000 more GPUs. blackwell gpus by q4 we target b300s and of course a cluster of 4 000 gpus would add about 80 million arr and so that's how you get to the 140 million arr growth on the ai cloud business with gpus And then in addition to that, separately would be the tier hyperscaler colo with a conversion of New Brunswick, currently a 70 megawatt tier one into a tier three plus data center. That incremental revenue would be about $85 million based on $130 a kilowatt a month. And so this is the growth strategy for Buzz for 2026 with both AI Cloud and hyperscaler colo. We have the land, we have the power, we have the expertise in running the GPU clusters, and we've been doing it for the last two years. Next slide. We also are vertically integrating the tech stack. So Hive and Buzz, we have expertise in building and operating data centers. We've done expertise building and operating the GPU clusters. But especially with the partnership with Bell, and sovereign initiatives within Canada where we want to sell managed services to AI enterprises. It's about vertically integrating the stack and having a platform that enterprises can use or sovereign clients. And so this means custom endpoints allowing for agentic AI inference training to tuning. And so this whole platform, we're very pleased to announce the next slide. is the buzz hpc cloud and so this is just launched and this has been pressure tested this is scalable this allows us to sell sovereign compute for our clients in canada and we think that this is a very exciting development that really opens up the sovereign market in Canada, which, of course, Canada is the home to the Vector Institute, the home of Geoffrey Hinton. Our Buzz team, led by Craig Tavares, is doing an amazing job working with the different strategic partners in Canada, with Bell, with Dell, with the different research institutes. And we have some exciting news in the pipeline. So stay tuned for that. But moreover, what this does is with our platform selling AI enterprise solutions, it's a much higher margin business. Let's go to the next slide. And this is the money shot. The Buzz cloud platform has been ranked and awarded bronze by Semi Analysis. This is the benchmark in the industry that looks at all the NEO clouds. And you will notice, and I'm very proud to say our team has worked so hard. Buzz team has done such a phenomenal job. On our first go around with Semi Analysis, ClusterMax, we received bronze. You will notice the other industry peers. And when I say industry peers, I'm referring to, quote, former Bitcoin miners that are now pursuing HPC AI cloud. companies that are a peer group are all in the underperforming category. And by the way, even below that, you'll see some names that have raised a lot of capital in the unavailable. So they weren't even able to really complete the benchmark test. And then the next category, if it's underperforming, where they complete it, but obviously not up to the standard. And then beyond that, which is where Buzz is, among some other very reputable clouds is BuzzHPC. And our team believes that we're very close to being able to get a similar qualification next year, which would put us right up there with AWS. So super exciting. And we're very proud of this accomplishment. And again, Craig and the team have done an absolutely phenomenal job on this. Let's go to the next slide. So With a blue sky potential integrating the cloud platform to allow us to sell managed services for AI enterprise clients, we're looking at a much higher margin business. And so instead of renting GPUs for bare metal at long term rates, which is what we presented on the previous slide, and that's the base case, the bull case or the blue sky case here, if all the GPUs were monetized using our cloud platform for AI enterprise clients in Canada under the BuzzSovereign strategy, it would be a much higher margin. And by the numbers, you would be looking at approximately double the dollar per GPU hour unit rate And in the previous slide, we were basing it on about $2.30 per GPU hour. And these figures here on $4.50 a GPU hour, you get about $40 million in ARR per cluster of 1000 GPUs. So what that does is, If you bring on that first cluster and they're all being monetized through the best cloud platform, it could bring an additional 40 million. That would mean the current 20 million of ARR goes to 60 million ARR and subsequently increments to almost a quarter billion ARR just from the AI cloud business. Again, this is a blue sky. Not necessarily all the GPUs will be sold through the cloud platform. for our sovereign clients, we still have existing relationships where we do sell AI compute globally. And so we believe the margin will fall somewhere between these targets and the base case targets. But if you add on the capacity of hyperscaler colo by converting all of New Brunswick, then that brings you to the north of $300 million ARR target. So if you look at this blue sky and the base case, I do think that Getting into the quarter billion ARR target for end of next year is realizable potential, and we're excited to take it to the next level. And we believe that if you look at where the multiples, where some of the peers are trading, it easily puts our AI cloud business at a multi-billion dollar valuation if we were doing 250 million ARR. And by the way, this is much higher margin. when you're selling through cloud the margins are about 90 and in the previous the base case where we do long-term gpu contracts uh for at least for blackwell's about 80 margin after data center and electrical costs um so we're very excited to present this and 2026 will be a phenomenal year the other exciting piece is that to bring these gpus online we have vendor financing And so we actually are not required to raise capital to bring on this cluster of GPUs because 6,000 Blackwells would be about $360 million. And we're bringing them on. We're doing about 1,000 GPUs at a time. And when we do this, we rely on vendor financing, lease to own. uh which allows us to therefore be very mindful about our roic and really the capex is just to finish the conversion of our toronto data center and our um bowden data center and those two facilitate the growth of 6000 gpus moreover the cap the colo partnership with bell it's colo and we're getting a very attractive rate uh doesn't require any significant capex so To fund the growth to bring online the 6,000 GPUs does not require any significant capex beyond what I believe we can fund from our current balance sheet. And that's what's really exciting. The conversion of New Brunswick to HPC would be a more capital intensive project, but stay tuned for updates on that. Next slide. So on the Bitcoin mining side of business, very proud to announce we're mining approximately 10 Bitcoin per day, even with difficulty at 152 trillion, currently operating a footprint of 440 megawatts of green energy. We have a proven track record of scaling now as we've demonstrated industry how quickly we've brought on this capacity. Again, we've maintained not only best in class uptime and efficiency in the sector, but lowest GNA per Bitcoin mine, which you would expect because we've done this with a very lean team as we've quadrupled our revenue this year. We've done so by adding a small number of additional key hires. Of course, our efforts in Paraguay are led by Gabriel Lamas and Carlos Torres, who have both done an absolutely phenomenal job. We're extremely proud of our Paraguayan team, and I'm going to be flying down there in a couple of days for my quarterly site visit. I always like to visit every data center, walk the fields and walk the hot aisles, walk the cold aisles, just like to feel the energy. And of course, we do this all with discipline capital allocation, which we prioritize ROIC. And we're going to double click on that later in this presentation. Next slide. So Thanksgiving came early. We did target that we would hit the 25 exahash and complete the 300 megawatts by U.S. Thanksgiving. And we hit it a couple days ago, which was really exciting. We put out a press release around November 11th. and so thanksgiving came early so that's exciting and uh you know with 10 bitcoin mine per day approximately and 25x a hash installed i had a schedule i think we've really demonstrated to the market that we have expertise and i think for the longest time when the market was watching high why aren't they scaling because we wanted to scale when it was accretive and by the way finding green energy obviously is more challenging than if you just look for any type of energy. So I'm very happy that the team delivered. Everyone has done a phenomenal job. Shout out to Luke Rossi, our COO, and Bill Gray, our CTO as well. So the whole team, Darcy, Gabe, everybody's just done a phenomenal job. Next slide, please. So this is just a scenario analysis that shows you, you know, we've seen Bitcoin correct to just under 100K. But of course, with Bitcoin at different incremental prices, you could see that our current annualized mining margin is about 200 million with Bitcoin at 100,000. But that could easily get to 300 million with Bitcoin at 125,000 and 150,000, almost 400 million. of annualized mining margin after electrical costs. This is not revenue, this is mining margin after electrical costs. So two to 300 to 400 million. is as measured against Bitcoin price, really at 100, 125, or 150,000. So a lot of upside in the Bitcoin mining business, of course. And so just a quick note on that, when we look at some of the hyperscale or colo deals that have been done, Cypher announced a deal with AWS, $102 a kilowatt. You can actually dollar denominate that per kilowatt hour. It works out to about 14 cents a kilowatt hour. With Bitcoin at about $43 hash price, Bitcoin was mostly at 102,000 this week. You know, that's about 12 cents a kilowatt hour with our S21 plus hydros. And so you're actually not that far off on a dollar per kilowatt hour basis compared to hyperscale or colo. Of course, what institutions like is the long-term stability, a fixed price for 12 or 15 years, you can underwrite, put a multiple on, and we're very much aware of that. I think the Morgan Stanley report on HBC did a good job spelling out that strategy. But what you have in Bitcoin mining is upside because when hash price was $55, the mining business was actually doing 15 cents a kilowatt hour. So even more top line than the Cypher hyperscaler collo deal. But what's interesting is that, of course, our bottom line, our operating cost is about a nickel. so you've got a much higher margin business and that's why we're able to target one to one and a half year roi in the bitcoin mining business whereas your roi when you're doing a hyperscale colo if you're spending eight to ten million per megawatt to build a tier three data center where you're looking at uh roughly eight year roi and so but we do both we're targeting in the HPC business with the AI cloud that's about a two and a half year ROI the GPUs and we're very much aware that institutions like the long stable cash flow of hyperscale colo and that's what we're very pleased to bring to market at the New Brunswick opportunity and put that in the 2026 pipeline let's go to the next slide so just a high level for all the research analysts out there where the hash rate is and how much power is online. And of course, the phase three in IWASU, the additional 100 megawatts actually gets us to a global capacity of 540 megawatts. Of course, 440 megawatts today is operating hydropower. And might I add, again, I just want to reinforce, we are not committed or we do not have a needed capital need to bring on 10x a hash of ASICs. We will do so if economics and ROI satisfies our principles of realizing a one to one and a half year ROI after cost for the ASICs. There are other ways to monetize that extra megawatts of capacity as well, by the way. So stay tuned for that. We've got a lot of exciting things for 2026. We're putting all the fundamental pillars in place for a year of growth and to manage both upside and downside. And that's how we've lasted for coming on eight years now, I being the first public crypto miner with the longest standing C-suite, might I add, between Frank, Darcy and myself. Let's hop to the next slide. So by the numbers, for those that would like a snapshot of what 35x a hash would look like on an ARR basis, well, as we mentioned, currently we're 400 million ARR doing about 50% margin after electrical costs, 200 million of margin after electrical costs on the current Bitcoin mining business for 25x a hash, about 17.5 joules per kera hash efficiency. Yeah, we were to scale that to 35 exahash with latest generation ASICs throughout 2026. And by the way, we do believe that ASIC prices for the new generation gear will come down and be more attractive. And so we would evaluate those during the spring to summer of 2026 as the 100 megawatts would be completed around August to September 2026. So we're in no rush. But with that 35 exahash, current mining economics This is modeled on a $42 cash price, brings you to 550 million ARR. But because you've got more efficient ASICs online, you're about 60% margins. That's 320 million of cash flow based on current money economics. So just a snapshot for the analysts and all the enthusiast investors out there that like to build their Excel models. Next slide, please. So we talk a lot about the ROI principle and just, you know, such an avid math and physics student in school. Sometimes you come across, you know, you're deep in the chapter in your physics textbook and there's just this one diagram that just puts the concept visually and then it crystallizes and you have mastery of it. And of course, all the equations that backstop it. But this is especially for institutional investors that are trying to wrap their head around and they think that it's sort of this elusive or arcane business. It's actually not. Bitcoin mining is the intersect of computer science and electrical engineering. It's really what it is. We're building high voltage, high energy infrastructure. And the revenue the top line is really um you can almost think of it as combinatorial mathematics um you've got number of hashes per block is difficulty times two to the power of 32. now bitcoin price fluctuates difficulty fluctuates sometimes difficulty goes down we just had difficulty drop by almost five percent we're 150 16 now we're at 152. So what does that mean? Well, your top line here, as you see, is like a squiggly line. It goes up and down. But with time and we're talking a four year horizon, it does trend down as more hash price comes online. But during the life cycle of an ASIC, we always aspire to get one year ROI after electrical costs. You could see that is in the blue area of the chart. And once you've realized an ROI on your ASIC, then you're free cash flowing. And so that's why for the balance of that three to four years, You're free cash flowing, and this is how we mine Bitcoin. This is how you make money in this business. You have to think this way, and you also have to model this way. And of course, you have to invest and operate this way. Now, the three bullet points here is what are the two levers on this graph? Well, there's one vertical axis. And that's your dollar per terahash ASIC acquisition price. The more you pay for your ASICs on a dollar per terahash basis, and by the way, this is on a snapshot assuming a certain efficiency of joules per terahash, right? So given a model of ASIC, so a new ASIC comes out, you go, great. This is what its ROI profile is going to look like. Depending on what you pay for that ASIC, The more you pay, the longer it's going to take you to hit that ROI. And we know that there's diminishing returns. This is modeled, it's all part of the Bitcoin white paper. As more hash rate comes online, it makes the network more secure. Bitcoin is the world's decentralized energy-backed currency. So it's not a bad thing. that you have to upgrade and that more energy comes online it makes the network more secure as bitcoin is a market capital over 2 trillion dollars you have over 30 gigawatts of compute backing that and it's the increasing efficiency the asics that helps dollar denominated to dollar per kilowatt hours okay so on the horizon, on the time horizon, you see the plus minus dollar per kilowatt hour, you see the lower your dollar per kilowatt hour operating costs, the longer you can run that same ASIC for. So you see how we've indicated or illustrated that that additional tail end of free cash flow, well, the lower your power price, the longer you're going to be able to realize free cash flow. And of course, the cheaper your dollar per terahash purchase price, the cheaper that number is, Thank you. the shorter your ROI duration is. And of course, that means you have all other things being equal, more time to free cash flow. And this is so important. And moreover, as I said earlier in the presentation, we run our ASICs for their entire economic life cycle. And what that might mean in the third and fourth year, even the second year, on a margin basis, if you're looking at your MD&A, you say, oh, what was your gross mining margin this quarter? Well, if you're running older ASICs that are in pure free cash flow scenario, The margin apparently may not seem that great, but they're free cash flowing. They've paid themselves off. And so you want to run those ASICs until the very end of the life cycle before you upgrade them. And this is an important principle. I thought this visual would very much help. So there you go. Bitcoin mining summarized. Let's go to the next slide. By the numbers, this is what it translates to. We lead the sector in cash return on invested capital. Quarter in, quarter out. Here it is. We've realized 18% annualized ROIC this quarter, 4.5% for the quarter. So I love explaining how the business works. We love to share expertise. We love to be beacons of truth in the industry where there's a lot of hubris. And again, I've been standing strong as the longest crypto miner in the sector for the publicly traded peers. Two Bitcoin halvings. And in Ethereum Merge, no one else has navigated all three of those events. In addition to that, we've built our own ASIC miner with Intel. So we understand the industry at its very depths and also at a very macro level, having strategic oversight with Frank as a money manager. Our executive chairman, myself, is an electrical engineer. We're both numbers guys, and we like to look at the prism of Bitcoin mining and data centers through many different angles to understand what does it look like when you evaluate it. And ultimately, our bottom line, though, is how do we get the best ROIC? Here it is. Next slide. We also have the lowest G&A in the industry. We have a high performance work culture, our executive team. We were in Chicago for a Jim Collins seminar. Really, how do we live and breathe being a good to great business? And so, again, high performance culture. We are in nine time zones, five languages. And again, we talk about high performance culture. We are a high performance culture, bringing 300 megawatts online in six months, almost an exahash per week. I think we might have broken an industry record. And so you can clearly see here under 10% of our total revenue is reflected as gna and our peer i mean a lot of our peers are really in the 20 to 30 range is really what it tells you so we're able to scale we have a dual engine strategy this is gna for the whole corporation so we're talking all our operating subsidiaries are global business hpc and bitcoin mining so incredibly proud of you we work long hours though so if if it's hard to get a call with us it's we'll make time for you but you know priorities next next slide So the other amazing thing is the value proposition. So our relative valuation, I believe, singles a very strong opportunity. On a relative basis, where you look at our peers on an EB to X hash basis, we should be at about a $4 billion enterprise value. Now, of course, people would say, oh, yeah, but a lot of your peers here have uh an ar hpc strategy yes as do we and i think we have one of the best ai and hpc strategies with a lot of upside to be realized in 2026 as we bring online those 6 000 black wells and pursue hyperscale of colo through new brunswick as well so i think that we also have uh best uptime in the sector uh lowest gna per bitcoin mine best roic and right now the best value so i think um you know for the smart money it's uh It's an opportune time. We've seen a high rally to almost a $1.7 billion U.S. market cap. There's been a bit of a market-wide correction recently, so I think it's an opportune time as the market consolidates. Next slide. Now, a little bit more about what we do. Yes, we are very high performance and Frank and I were boots on the ground. We go to all the conferences, but we also invest in the communities. So we had a program where we wanted to refresh 18 schools in the rural regions by our data centers. And so Frank and I were actually visiting in Valenzuela. primary school elementary school and you know the kids were so happy and so the pictures on the left are before and you can see the beautiful uh hand painted map of paraguay but you see the walls it's sort of a bit weathered and chipped and so what we did was we refreshed the schools. You see brand new paint and air conditioners. You see all the air conditioners after bolted on the walls for the classrooms. And then we installed a playground as well for the kid. And we're doing upgrades to 18 schools throughout the community. So just about how we like to invest in communities, you know, we sponsor the hockey team in Bowdoin, but we do what the community wants and needs. And of course, in this scenario in rural Paraguay, it's the schools. Next slide. Also, embracing tradition, we were invited to the Presidential Palace for YPO event. This is Santiago Pena, he was an incredibly gracious host, and so we were wearing traditional scarves, a sort of traditional Paraguayan dress, and it was an absolutely phenomenal event. We had a whole executive team down there. Of course, Gabriel Llamas and Frank are pictured here with Pena, Luke Grossi, our COO. And myself and Jaime Perez are Latin American correspondents. So, you know, investing in the communities, at the schools, in the neighborhoods, but also building strong ties with the leaders of the country. Next slide, please. Now, Paraguay in turn is also building ties globally and Pena has, I think, done a phenomenal job having a great relationship with Trump. All smiles here with the big thumbs up. And moreover, Frank and I had a strategy session with Pena in September during that YPL summit. And of course, shortly after we were granted an additional 100 megawatts, which we'd announced to the market. So it's about having relationships strategically and being aligned with the government utility companies and just doing good business. And so we were very bullish on the future of Taraguay, not only for Bitcoin mining, but data centers broadly. Let's go to the next slide. Directionally, Latin America is emerging with HPC on the horizon. It was in the headlines in October, OpenAI and an Argentinian energy company are looking at a Stargate for Latin America. So, of course, Argentina is adjacent to Paraguay. Argentina buys power from the Itaipu Dam, which is um the largest hydro down by production in the world uh and uh so we believe that um there will be a bright potential future for each pc in latin america um let's go to the next slide which is darcy de baris the longest standing cfo in the uh bitcoin mining industry and He's going to give you the overview of the financial results. And not only in the Bitcoin mining industry, of course, now we are a HPC business with a thriving AI cloud growth strategy as well as Hyperscale and Co for 2026. Darcy, over to you.