HIVE Digital Technologies Ltd.

Hello and welcome to today's webcast covering Hive Digital Technologies financial results for fiscal Q4 and full year 2026. My name is Nathan Fast, Director of Marketing and Branding at Hive, and I'll be your moderator for today's call. Before we get started on slide two, I would 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 and they're presented for supplemental purposes only and should not be considered in isolation from GAAP results. Reconciliations to the nearest GAAP measures are included in the appendix to this presentation and in the press release in Form 8K furnished to the SEC. On the next slide, I'm pleased to introduce today's presenters, Frank Holmes, Executive Chairman, Aidan Kellett, President and CEO, and Darcy DeBarris, Chief Financial Officer. I'd now like to hand the presentation over to Mr. Frank Holmes for a macro recap of the quarter. Frank?

Good day, everyone. I'm Frank Holmes, the co-founder and executive chairman at Price Evolved as a strategist at a macro level for Hive. And I'm going to give you, as also my other Job is the Chief Investment Officer. A macro recap of what I see in this realm of data center build out and the massive demand that's taking place for AI factories, but also the collateral that we're seeing, the collateral ramifications or the demand for copper, etc. So let's get going and let's speak quickly and give you a recap for what's happened this past quarter and year. Next. But before we get into those granular details, I'd like to tell all investors that they have to be prepared for volatility. And each asset class has its own unique volatility. And it's a non-event for the S&P to go up or down 1% in a day. In over 10 days, 3%. If it goes up more than that or down more than that, that's usually an event. That's a signal for contrarian selling or buying. Gold bullion, as you can see, is now more volatile. So it's one day, if we look back a year ago, it was the same as the S&P and now it's expanded to 2% as a non-event on a daily basis. And the 10-day is 5%. But Bitcoin is much more when we look at one day is three times greater than the S&P 500. and substantially greater when we look over a 10-day period. And as you go down and look at technology stocks and gold stocks, you look at Hive or you look at CoreWeave, you can see a pattern of companies that have more debt or companies that have this leverage to Bitcoin operations just have this greater volatility. And that means that 70% of the time it's a non-event over 10 days for Hive to go up or down 21%. And same thing on a daily basis, it's a 6% ball. CoreWeave, which is a pure high performance computing hyperscaler versus the other hyperscalers like Microsoft and AWS, which is Amazon. Azure is Microsoft. Oracle has theirs. They're embedded with another bigger technology-driven company, whereas CoreWeave is pure hyperscaler. and Hive is in that transition to go into a hyperscaler. So, you can see our volatility is greater than the Bitcoin and that provides great buying opportunities, especially if Bitcoin is down 3%, then if you're not on there, it's going to be down 6% and usually then it's a great bounce. So, next please. This is the team. Arun Kilik is our President and CEO. Craig DeBars is the President and Chief Operating Officer of Buzz HBC, which is really the champion for AI factories, especially out of Canada. And we're now coast to coast across the country, and we continue to expand. I'll give you more color on that. Darcy's our CFO. He's based in Vancouver along with Aydin. Gabriel Ibgi, he's our General Counsel. And if he's not in Montreal, he's in Europe. Gabriel Lamas is the president of Paraguay's operations. He's also an electrical engineer like Aydin is and Craig. And then we have Jonathan Glad who is the country president for Sweden. Next please. So Hive is unique. It operates in nine time zones and five languages. And I'm very proud that we know many of these other crypto mining companies that operate in one state and they are not as efficient as our team is. And that's just closest for me to share with you is that we have an exceptional team that's very efficient, not only in running data centers, in building data centers. Next please. So Hive uses green energy in Canada, Sweden, and Paraguay. This is the most significant waterfalls in the Western Hemisphere, which has led to the largest dam in the Western Hemisphere, which is like five Miles long. It's a phenomenal piece of infrastructure. And it's a partnership with Brazil and Paraguay. Generates about 14 gigawatts of electricity. Half to Paraguay, half to Brazil. And for a while, Paraguay has been selling a lot of electricity to Argentina. And we're not getting paid. They're slowly starting to get some money back. We come along and capture this surplus energy. And they get paid every month. And that's significant because today we're the largest consumer of electricity in the country. And we've also hired, I think, the most engineers, more than even a power utility company in the overall economic development of the country. Next, please. Hivesoft institutional shareholders, Invesco, Citadel, we're happy to see Citadel has come back in, Millennium Management, Two Sigma and Valkyrie funds. Some of these are pure quant funds and other are ETFs that have directional plays in this space. If it's not a technology, then it's driven by other investment strategies. Next, please. I think what's really important here is that with Cancer for Sure, we announced The closing of a private offering of about $115 million of 0% exchangeable senior notes due 2031 with a conversion feature, which is very unique by buying a derivative that the stock has basically doubled the stock price just shy of $5. Now the stock is trading at $4, but it was at the time 2 and change. So it was pretty significant. Then what's important is that we had More than $500 million bought it. And we had 24 buyers. Our name got known now to many U.S. institutions that really didn't know the unique hype story. And that's led to a big trigger in the trading volume and liquidity and price discovery has expanded with this. It's also been an important what they call a signal to institutions that we were going to accelerate our growth Like we've been saying on our AI strategy this year, last year was building out our tier one data center, Bitcoin mining, and we increased that from 6x a hash to 25. This year, we're focused on this huge footprint of bringing up especially sovereign data centers in Canada and Sweden. Next please. So in that journey, we also increased our exposure in Canada to going what's called the main board. The biggest stock exchange in the country where all the big banks are listed away from the venture capital based in Vancouver. And that was a great opening for us because we had the maximum amount of people allowed to show up. We had a turn back. I think it was 100 people wanted to come from 50 places. So it was a great sign of enthusiasm for our company. And this was a day after the holiday in Canada. And the day before, our stock has a big tear because of recommendations and the press release we made regarding our AI strategy in Canada. So it's all fit in very, very well, the timing of it. Much of it unexpected that it would come together, but we're thrilled about it for our shareholders. Next, please. So high stock rises above its 50-day, and you can see here when we announced our over $100 million convertible that it went above and it stayed above so often when you announce these things they fall below but no it was a signal I was told by smart institutions in this space that we were on a fast track for growth and we're excited that it's happening and then we have announcement of listing on the Toronto Stock Exchange on May 7th and then we announced Buzz's North Star AI factory in Toronto on May the 16th was a significant home run because if by accident we did not know that was also showed up a very smart institutional investor in this space in the AI bullet became an investor. Next please. And I think that it's important to recognize Leopold Asher Brenner, as the CEO, was called Situational Awareness. He wrote a seminal piece of paper that was a white paper of over 100 pages of what he saw in the super cycle. A fascinating background. I used to be with OpenChat, GPT. And so he displayed a 13F filing. And because he showed, like Warren Buffett shows what he bought and sold, he bought us at four times revenue. and a couple of the other data center companies that are Bitcoin mining going to transformation AI. He sold those because they had gone on a crazy run to 40 times revenue. And so we were deeply the most attractive proposition. So we're happy that he bought in those shares. He bought them I think in the previous month. And so that filing at the same time of announcing in Canada So the real race in AI is infrastructure, power, land, and GPU chips. He wrote about this in a seminal white paper, Leopold, and please, if you haven't read it, I recommend it. Inover owns the compute, owns the future, and Canada needs sovereign compute to remain globally competitive. Canada is an incredible place to respect it. Ethereum was created there. The University of Waterloo has won the IBM annual software award. competition the most often being the champions there so it has strong intellectual capital that Microsoft has always tried to hire from Waterloo and then the University of Toronto has now become the epicenter for AI with a Nobel Prize winner and so this future what we're building in Canada is right between these two universities and I share with you is so important Because we know in San Antonio, I'm based in San Antonio, Texas, that we have the number one cybersecurity university. And it started 25 years ago with 100 students, now it's 10,000. And that's only led to many data centers being built in San Antonio, especially the NSA, who has the second biggest office is in San Antonio, and over 3,000 employees. And they're able to tap into all these kids graduating with degrees in cyber security. And so what you see that in Canada, it's different and what we're looking at with the cyber security when you come out of a couple of the universities in Toronto, which is the largest city in the country and come out of the AI and AI and cyber security are now becoming ubiquitous in that conversation. So we're thrilled about this opportunity of being in Canada. Next please. So the AI Gigafactory eventually will have 100,000 GPUs. It'll be a multi-billion dollar build-out. And further to that, it will throw off Digital Technologies Ltd. Digital Technologies Ltd. But it's closest to the best universities in North America, along with other schools we have in the US. But when we look at Canada, those are two premier universities. Next, please. The other interesting part about our data centers right now, in particular, in Eastern Canada, that we are in Toronto, Montreal, Grand Falls, and New Brunswick, we're in the most important internet backbone. which basically goes from Toronto down to Virginia and up to Boston and up north of Boston. So you have the most, the highest concentration of internet nodes and so that is really important for the AI for moving data, collecting data, sharing data, that you need much bigger pipes and so we're right in that triangle. Next please. So Canadian AI Ecosystem and Buzz AI Factories, we've mentioned in previous press releases our partnership with Dell Canada. We are now in Winnipeg. Daily revenue has improved for our HBC because of Manitoba, so assets come on stream. So we are in Montreal, building out that we'll be in British Columbia soon. and will be from coast to coast in Canada and be the biggest hyperscalary really in the country by a wide margin and sovereign. Next, please. So Hyde's Buzz HBC partnership is Dell, Dell Computer. We have universities like Columbia University in a partnership with what we did on looking at data from Paraguay to build an AI data center in Paraguay. Strategic with Platinum Buyer of NVIDIA Chips, with Tego. So, to me, it's a great view here of important relationships we've been making with universities and also with other technology companies. And I push on to the next one. So expanding the partnerships, Craig has done a phenomenal job. You see him on the far left here, the CEO of Bell Canada, the largest telecom in the country, and myself with Michael Dell a couple of times now. And so these are just other visuals to share with you from Paraguay up to NVIDIA with Jensen. President of Paraguay, the country, Michael Dell, you name it. We are building very important relationships for growth and for Hive, in particular, Buzz AI. Next, please. Buzz's HBC data centers, AI training and inference, optimized for both intensive training and real-time inference. What's happened is these data centers They are going through this new re-rating and quite often they basically sell in the US a long-term contract with a hyperscaler and they get a REIT model for the renting of their data center. What we've been doing so far is we have our own electricity, we have our own property and we've been doing this for a while now, selling compute and getting a much higher revenue. And that's the vision we have for this next couple of years. Next, please. Toronto Rates is the third largest tech talent pool in North America. Next, please. University of Toronto is the intellectual center of AI. Next, please.

The genius of AI.

Artificial intelligence has developed consciousness and could one day take over the world. This is Jeffrey Hinton, the Ph.D. and Nobel Prize winner in 2024 at the University of Toronto. So it's become an important nest of brilliant minds that we're studying under and been studying under Hinton. Next, please. This is a visual of the team in Paraguay and behind is the largest dam in the Western Hemisphere which is generating over 14 gigawatts of electricity and we have 300 megawatts expansion in Paraguay and our long-term vision is eventually to get to a gigawatt of electricity. Next please. One thing we've always done is education and what we've done in a school that's a kilometer away from us, a half a mile, has outdoor bathrooms and really quite antiquated in the standards that you would expect in America, Canada or the U.S. So we've taken up to North American standards and young kids are thrilled about it and so are we. Next please. So why now? Well, AI demand is outrunning infrastructure supply. Global AI spending is expected to reach $700 billion by 2028. And Hive is going full speed in building that and participating in this incredible boom. Next, please. AI demand is running infrastructure supply. So, let's take a look at the numbers. Potential addition to global GDP due to increased productivity is 4.4 trillion. It's a 3.5x growth in AI data center demand over the next five years and four plus years. And capital markets are just changing so rapidly. The funding of GPU chips, you have BlackRock and Blackstone creating credit funds just to lend because GPU chips have now become and you can buy car loans and it's really quite fascinating that this year how fast and rapidly there are other sources of capital outside of banks. But the other collateral we want to share with you is a money manager known for my world of gold and resources. Copper usage is just huge. The grid and power infrastructure build, and what does that mean? Copper is the heart of the electrification boom. Copper is making all-time highs because demand is far outstripping supply. Next please. And we can see that when you go do a gigawatt data center, you're going to spend 50,000 tons on copper, not pounds of copper, but tons of copper to rewire everything. So we also see that electrical cars use more than 5x the amount of copper wiring. And it's just important for investors to grasp the constraints that's happening globally for this boom in AI. Next, please. And copper demand is projected to rise 40 to 50% by 2040. Where's it going to come from? It's going to come from Africa and South America. And now you're seeing all of a sudden copper deposits being refurbished and looked at and that were shut down for low grade. All of a sudden are going to be commercially more attractive in Canada and the U.S. So there is this boom and it's a collateral boom. We've also seen fiber optics because you need dark fiber. Prices have doubled 100% up. So the inflation on the supply and a lot of times getting HVAC or the electrical air conditioning you need for these high-performance computer data centers, they've gone from being 20 weeks to 30 weeks to 40 weeks to 50 weeks and sometimes now 60 weeks to be able to get the equipment to build the data center, which you then put your GPU chips into. Next, please. But we still have, you know, what makes a market is Jim Channels and Michael Burry, level of criticism against the AI sector, regularly saying what they're shorting. Get levels and calling it a bubble and in the past nine months these two guys have PhDs in Bubbleology and running around and this creates a market and you get sell-offs and then you get all-time highs coming back. The demand in sales and when we take a look at Nvidia we're seeing that other competitors are coming in to come up with their own Next, please. Well, we're very excited about where we are in that traction. So I'd like to turn over to Ian Killick, our CEO and President.

Thank you, Frank. That was an excellent macro recap. What an exciting time for us. People tell me I need to smile more because of all the amazing things we accomplished this year. So, here's a photo of me smiling. Let's jump into it. So, for those of you that may be new to the Hive name, we are a vertically integrated data center builder and operator. What this means? We land bank. We buy land by substations. We build data centers from the ground up. We operate data centers. We'll acquire old data centers and retrofit them. And of course, we orchestrate compute. We're an NVIDIA cloud partner. We built the BuzzCloud, which has been ranked by ClusterMax and SemiAnalysis. And we've got 440 megawatts of Bitcoin mining capacity. It's part of our dual-engine strategy globally. But really, we think that selling tokens... uh and and being at the forefront of the ai economies where our megawatts will get those ai multiples uh so it's a very exciting time to be a high shareholder and this photo is actually of our executive team at the Itaipu Dam in Paraguay last year when we were building out our 300 megawatts there the site's not too far from here so again we travel the world with boots on the ground we Helicopters, planes, you name it, too. Site visits, conferences, look out for the Gucci V, of course. And let's jump into it. Next slide. So, it was a phenomenal year. I think we really knocked out of the park. If you look at the business overall, we did approximately $300 million in revenue globally. We had over $100 million of gross operating margin and over $75 million in net operating income. Net operating income is our gross operating margin less Corporate G&A. So in a cash business, what did we produce? And $73 million of adjusted EBITDA. Now, the net loss is booked at $148 million approximately, but that includes a very substantial depreciation and non-cash adjustments. So if you back those out, of course, it would be in the positive, but we have an aggressive depreciation schedule, a two-year straight-line depreciation for ASICs and three years for GPUs. So just to keep that in mind, but on an ROIC basis, it's solid year 13.3%. And we've also been deploying and selling our Bitcoin to find operations and find growth. So you'll see that we have a modest but healthy 150 Bitcoin in the treasury as of March 31. Next slide. Solid quarter as well, $72 million revenue for the quarter, $17.5 million gross operating margin, and the business still did $8 million of net operating income, which I think is very admirable because as we've been growing the business, and I'm going to talk about our growth shortly, we've brought on key team members, and we have contractors, and we have We operate in Paraguay, in Sweden, Canada. We run a revenue through Bermuda for tax efficiency and how does that all fit together? So our corporate G&A, we have the lowest G&A as a function of revenue amongst the lowest in the entire industry. We still are growing the business, but we're still profitable quarter over quarter on a cash basis, and I think it's very important to highlight. We don't just go hire hundreds of people and burn a bunch of cash and say, yeah, don't worry, we'll figure it out later. We've intentionally scaled the business. We're getting a critical mass, and we've earned money along the way. Again, you're going to see that net loss really is a function of depreciation and non-cash items, and so we always do like to point that out. Still a healthy quarter. You see that our HPC AI revenue is trending up above 5% now, so about 6-7%, and that will continue to grow as 100% of our growth this year is on the HPC and AI business. Next slide. Year-over-year, as it is our fiscal year in March 31, looking at that gross operating margin, I think it's very admirable. We did over 4x growth year-over-year. It's either $107 million of gross operating margin approximately for the year. That's up from $25 million the previous fiscal year. And of course, you see on a quarterly basis, you see, you know, it rallied as we had some really strong performance in the Bitcoin mining business fiscal Q2 last year. But overall, it's been a tremendous year of growth for us. Let's go to the next slide. So, on a net operating income basis, I think it's even more impressive because now that we're operating at scale, again, we've been making key executive hires, we've been bringing on consultants and contractors as we've tactically and very strategically scaled throughout Canada. Our partnership with Bell, you know, building the 300 megawatts in Paraguay and having all the tax and accounting in place to really have a truly multinational organization. But I point this out because even after our growth in the size of the team and the G&A, Our net operating income, which is again, gross margin minus corporate G&A, $76 million for the year, up from $8.5 million the fiscal year before. That's 9x growth year over year, which I think is tremendous. And so, again, when I say we've intentionally scaled, it means we're paying attention, not just where we're going, but what are we doing right now. And so I think that it's going to be a really, really exciting year for Hyde because we built a tremendous machine. We attract, in my opinion, the best of the best. We have a high-performance work culture. We study and implement the teachings of Jim Collins, a famous author of Good to Great. And I think there's going to be some really phenomenal success in the year ahead. Let's jump into the next slide. So, again, our dual engine strategy, the cash flow from the Bitcoin mining business allows us to scale and grow the more long-term and stable HPC co-location revenue and GPU cloud revenue for Buzz. Now, this is a snapshot of where we finished the fiscal year, March 31st, 2026. Now, at the time, the street didn't know our revenue was going to be $300 million. This is a snapshot of our market cap at the time aligned with where our actual revenue was. So you can see we're doing a little over 800,000 daily revenue at the time, but our market cap really pulled back to some 500 million because it was a big pullback industry-wide in February. We saw Bitcoin get into the low 60,000s. We made, and I want to say, I want to point out, we made it through with a profitable gross operating margin and a profitable net operating income. for this quarter, even with all that calamity in February. And again, quarter over quarter, you know, for six years running now, we have mined with a positive mining margin quarter over quarter. We downfall, we optimize, we curtail. Pound for pound, I believe we are the best Bitcoin miner in the business. We know that the street is very much focused on HPC. But when you have that cash flow engine of Bitcoin mining that's finding the growth, We want to make sure that that engine is a very well-oiled machine in pound-for-pound, best in class. So, 25 exahash installed, about 23 exahash average operational for the quarter, 876 Bitcoin mined, buzzed about $5 million revenue for the quarter, $35 million, which would be $20 million ARR, but contracted $35 million because we had this exciting Blackwell deal we'll talk more about that we brought on line. And our target, Our target was 200 mil ARR for GPU cloud business and about 300 million ARR if you included the HPC colo capacity that we had as well. Let's go to the next slide. And here we are today. So revenues jumped up. We're doing about 350 million ARR, a little over 900,000 a day. And this is, you know, as of June 1st, Bitcoin's at 71,000. This was closer to a million dollars a day a few weeks ago, but that's okay. The street's starting to pay attention. $1.2 billion market cap. Well, what is the catalyst there? We did that phenomenal $150 million convertible bond at 0% interest, and that was a massive catalyst to fund the growth of our GPU cloud, to double that GPU cloud from 5,500 to 11,000 GPUs and realize that 200 million ARR. And then, of course, The huge news was our Toronto area Gigafactory, which increased that ARR target for a collective HPC business to $660 million. That's a $200 million ARR for the GPU cloud plus $440 million if you look at HPC Colo. So now it's a really exciting time. You know, the stock is actually as of today, June 1st, we hit $5. So getting into that nice institutional range and of course being over a billion dollars in market cap US. So it's really great to see how It's important for us we realize having these targets but also showing our growth capital which we always target lowest profit capital of course to realize these numbers and it's just a good feeling for our shareholders when the market rewards us for this being astute stewards of capital. Let's go to the next slide. So again just again it's our year over year so just a quick by the numbers. Our hash rate grew over 200% in operational hash rate for the fiscal year. And if you look at what was installed as of the end of the fiscal year, it grew almost 280%. Again, with Bitcoin at 71,000 today, mining over 11 Bitcoin a day, it's about a $800,000 baseline revenue. And we're very intentional about how we scale. Let's go to the next slide. I do want to point out, again, navigating the volatility implicitly in the Bitcoin mining sector. We've talked about hitting our 25x hash. We did that, but what we then did is we optimized firmware for all the different types of machines that we had. and we got that hash rate and it's actually 24.6 although on installed stock basis over 25x a hash but the trade-off is the efficiencies improved about 16 joules a tera hash but that means it lowers your break-even cost of mining so your total output hash rate is slightly lower but the trade-off is your break-even cost improves and so in bear markets this is what you strive to do it's it's sort of you know it's a planar mass solution that we constantly optimize but again um you know it's really about having this level of expertise in the background that cash flow engine that's helping us spur up and expand the hpc business and even though we have 440 megawatts when we consume about 395 megawatts because we brought online on more efficient machines we to replace some bus miners with S21XPs, which were bought with credits we had from our Bitmain pledge last year. So, a very strategic, intentional, and curated way to make sure the business continues to cash flow through any volatility. Let's go to the next slide. Okay, and the final slide on the Bitcoin part is really just to give the readers out there, well, what does this look like when you talk about volatility? Well, real simple, here's the rubric, 70,000 Bitcoin doing about 300,000 day profit, 80,000 Bitcoin a little over 400,000 day profit. and 90,000 Bitcoin over 500,000 day profit and this is an illustrative example if you assume an electrical cost of five cents because based on electrical costs well that's the cash flow from the machines and those go to work pays other uh direct operating costs of course corporate GNA but this just gives you a flavor of where the one engine how much cash flow is producing And again, we're actually 16 joules a terahash with everything optimized, 24.6x a hash. And now let's launch into the next section.

Perfect.

So zooming out globally, 860 megawatt footprint as of today, 440 megawatts of active capacity. Again, actually only consuming 395 megawatts of power, but we've got 440 megawatts of data centers globally. with the GTA Gigafactory recently announced more on that later and of course the Phase 3 at Iwazu that brings our total round out to 860 megawatts. So I think it's going to be a really exciting year ahead as we provide the street updates on how we either convert some of our existing Bitcoin mining capacity to HPC or In cases like Iwazu and our Gigafactory in the GTA, develop those and bring those to market. So it's going to be a really exciting year ahead with lots of updates. Let's go to the next slide. So focusing on the cloud. BuzzCloud. This is our GPU business. As you know, we're doing $35 million of annualized revenue today, that's realized. That's spread over the 5,500 GPUs. And so the green bubble here on the left, that's what's active. You see a bit of overlap now as we grow into that Bell AI Fabric partnership. So again, our partnership with Bell AI Fabric really is a co-location. So we are standing up our GPU clusters in Bell AI Fabric data centers across Canada. Currently contracted, we have Manitoba and British Columbia. We've press released this. What this does is it gives us a quick time to market low capex path to scale our GPU cloud revenue. And so, of course, you have the stamp of validation. Canada's largest telecom player, Bell Canada, choosing Buzz exclusively to build their, to be their data center, sorry, their GPU cluster platform. orchestrator and operator. And so what does that mean? So if we have our own clients and we're standing up GPUs in a Bell AI Fabric data center, well, we're just paying them a co-op fee, 20% below market, very attractive. And if Bell brings us a customer, then they get a small rev share from that, I think 5% roughly. And so it's a massive demand funnel from Canadian Enterprise. Clients that are looking for Sovereign AI Compute and so it's a phenomenal partnership and you can see that ramp. But more specifically and what the catalyst was for our $100 million convert was up to $115 million in April was to fund the two large GPU crashes we have incoming. So let's talk about that briefly. So 2304 GB200s MOU signed, 2088 GB300s MOU signed. So we're at 35 million ARR today. Signing one of these deals gets us to 100 million ARR, and the second large GP deal gets us to 170 million ARR, and I think that's really exciting for two reasons. Once we trap $100 million here, or I think our stock re-rates again, then we hit $5 today, and we're still, and I think that was on the strength of the Gigafactory announcement, but I see each one of these GPU clusters adding a few hundred million dollars of enterprise value to the company once the defendants are announced. And again, now that we have the funding in place, I'll give you the numbers. So, 2000 GPU cluster rough numbers, about $175 million. And so to get a sweet spot, if you want to get single digit interest rate, what we're finding from blue chip lenders, they like to see 80% LTV. So that means we come in with 20% down payment. So that'd be a $35 million down payment on $175 million cluster. Well, we just raised $150 million. So we now have the funds to put a $35 million down payment for each one of these large cluster deals. And what does that do? Well, again, we got the MOU, we got the data center space with Bell. We've now got finalizing the financing. So when we announce the definitives, we'll be able to advise you on total contract values in a three-year, four-year contract, all the particulars I know everybody's curious. Really, this slide is the forecast to you. This is what the incremental ARR will be for each cluster we bring online and how we get to 200 million ARR. And of course, the final function Q4 is just to fill up the remaining capacity in Manitoba. Again, we currently have 500 B200s there, and so there's pipeline for about another 1500 B200s or 300s at that site. So collectively, that gets us to over 200 million ARR. On the lower half of this chart, Our other sites we've talked about, again, our Toronto Airport site, the smaller Bowdoin site, and of course New Brunswick, which is our flagship Bitcoin mining site in Canada. All of those converted to HPC. Our co-location is Tier 3 data centers, and you can see what the ARR, again, on HPC co-location. We're forecasting under $30 a kilowatt for New Brunswick, and... Digital Technologies Ltd. Digital Technologies Ltd. for HPC is $660 million, $200 million from the GPU Cloud, and $460 million on HPC Coal. A very exciting time for High, very exciting time for Buzz, and a very exciting time for existing shareholders, and we welcome new investors as well.

So let's go to the next slide.

This is a quick overview of that $115 million Digital Technologies Ltd. Digital Technologies Ltd. Digital Technologies Ltd. Digital Technologies Ltd. So if we did an equity financing it would have been diluted it would have been probably two dollars and you're getting your six or seven percent broker fee this was tremendous because at zero percent coupon really what you're telling the street is hey i'm doing a zero interest uh bond and if it gets exchanged it'll be actually exchanged at a premium so it's like doing equity finance at a premium to your stock price not at a discount And the great thing, and so the base conversion prices have been $257. We bought a cap call at 125%. We actually put our conversion premium of $4.92. So that means with a cap call... There's no dilution up to $1.2 billion market cap. And by the way, we get those proceeds. So beyond the $257 conversion price up to $492, we actually get that as a payout from the capped call stakeholders. The value of that payout, look at the right hand of this chart, is actually $105 million. Now there was a cost to that capped call, which was $19.8 million. But a $105 million payout for a $20 million payout That's over a 5x payout ratio on value. That's a good insurance policy to me. And it just so happens to be today on June 1st, we actually rallied past our capped call price today. So very exciting times. Of course, that $105 million payout is based on maturity. If you do an early conversion, you might have to negotiate that. But I think that this Note was phenomenal and Kantor did a tremendous job and so we're really looking forward to it. The notes are trading well as well in the secondary market. So it was a great inaugural debut to the convertible bond market for Hive and we're deploying these proceeds to get those GPU clusters funded and definitive agreements announced in the near future. So stay tuned for big updates on that. Next slide please.

Now, I want to put a little bit of context

I want to put context on our recent Blackwell deal. So this is the 504 GPs we've talked about this deal. It was in our last presentation. It's live today. It's great. It's cash flowing. It's the first Blackwell cloud in Canada, 504 B200s in that Bell Canada Winnipeg site. But what I want to point out just for the street and for all the listeners today, this was a two-year contract that was valued at $30 million. for a cluster of GPUs that cost $30 million. So I'll say that again. We effectively sold the entire face value of those GPUs up front in a two-year contract. Now, we do have some OPEX, of course. It is being co-located in the Belly and Fabric site. So actually, your ROI is the two-year contract for $30 million. After operating costs, your ROI is more like two and a half years. But that's still tremendous. We've signed the entire face value of these GPs up front. Now, what does that tell you? Well, it tells you the amount of demand for these AI natives and enterprises that want this compute. That compute is so valuable to them. They will pay the entire value of those GPs up front in a fixed contract. What does that get them? It gets them exclusivity. It gets them sovereign compute.

It also gets them white blood service from Buzz.

where we set up the GPUs in the data center which of course is non-trivial and we sign an SLA and we make sure that they get that level of service and quality that they expect so of course that's what we're good at that's what our expertise at we're masters of orchestrating compute and again you know we've got 5500 GPUs globally we've been doing GPU cloud for several years now and now we're starting to hit critical mass but I just want to point out the virtue of the GP cloud business. We are effectively seeing deals, long-term deals where you're able to go Purchase a cluster of GPUs, sign a long-term off-date contract where the entire value of those GPUs and then some, you're getting upfront in a contracted revenue. So really excited, really bullish on the growth of our GPU cloud business as we deploy those proceeds from our convert to bring online those two large clusters. And by the way, it's a CapEx Lite strategy for us to scale. We, of course, have our own site that we're going to be building for Tier 3, but in the interim, having this CapEx Light Ramp with Bell Canada. It's near quick time to market low CapEx. I believe it was a great way for us to really meet the Canadian sovereign AI ecosystem. Very happy with this. Let's go to the next slide. So, again, circling back now. I pointed out on that world map, we have these two large 2000 plus GPU cluster deals in the wings. So what I can tell you is directionally, we're very much aware that we're actually targeting three plus year contracts now. And what does that do? Well, if the ROI on a GPU cluster after cost might end is two and a half year, you go ahead and sign a three year contract up front. Now you have locked in the face value of the GPUs, plus OpEx, and you fully paid your GPUs off, plus contracted profit in the three-year term. If you did a five-year contract, for example, now, and it's a two and a half year ROI after cost, now you've 2x completely paid off your GPUs up front with a contract, and you have the residual value of those GPUs at the end of the term. So what's really interesting is we had one Highly renowned institutional shareholder that is deploying a lot of capital in the AI sector. They were actually of the opinion they prefer shorter-term GPU contracts to one in two years because they think that there's a lot of upside. They think you're leaving money on the table when you sign a three-year, four-year, five-year contract. Obviously, that's done at a bigger discount. And they think they're very bullish on the residual value of GPUs. Other highly respected... institutional investors, more from the TradFi world, amongst our largest investors actually, have a different opinion. They like the stability and they say, sign a five-year contract if you can or a four-year and that way or three-year and then you've at least locked in the entire value of the GPs plus some profit and whatever the residual value is, just a cherry on top. But directionally, this slide is really just to share with the street, hey, we're going long-term, we're going big, And we're on our way to hitting that $200 million ARR target this year and stay tuned for updates. By the way, that's an actual photo of one of our deployments, H-200 deployment in Quebec, Canada. So very beautiful stuff, very sophisticated stuff. Let's hop to the next slide. So really, this is just a slide to focus. If you just look at Canada, if you look at Buzz in Canada, Buzz HBC in Canada, This platform alone between the Gigafactory site, the smaller Toronto site, and our New Brunswick site, we have about 400 megawatts of utility load and almost 100 megawatts of, sorry, 400 megawatts of utility load and 100 acres of land that we've assembled to bring this capacity And through 2028, this will transform into $450 million of HPC CoLo revenue alone just in Canada. So I really want to prop up the strength of our sovereign offering in Canada. And I think that our Buzz HPC team, Craig and the team, have done a phenomenal job. And, you know, we're the first BlackBell Cloud, this tremendous partnership with Bell Canada, now with our TTA Gigafactory, which, of course, that's a Hive and Buzz-owned opportunity. We'll be providing a lot of updates on that. Let's hop to the next slide. Really, this slide reminds people, we once were operating a fleet of 130,000 GPs in Sweden during the Ethereum mining days. We know a thing or two about orchestrating compute. And so for us to say we're going from 5,500 GPs today to 11,000 GPs to target end of year, it's a very exciting goal. And I would just say, stay tuned. Reminder, you know, we can do bare metal offerings with our GPUs or we can offer through our Buzz cloud. Again, we built that so we have CERN, we have Kubernetes, we are able to sell and manage AI services, which matters a lot for enterprise clients that we may get through partnership with Bell or any other enterprises that want the full cloud offering or the bare metal. And again, we've been growing this cloud business since 2023. Let's hop to the next slide. So the crown jewel, the slide that everybody is talking about. So really, the Gigafactory needs 100,000 GPUs. And so the capex to build this will be about 3.5 billion Canadian, but that will throw off 360 million ARR US. And so I think that's a really exciting We expect the site to be energized by end of 2027 and live with compute in early 2028. So this is a 25-acre site in the Greater Toronto Area. We spent $58 million on land. So, you know, I believe, and I said we've been land banking by substations. Well, guess what? That's exactly what we've been doing in Paraguay. and throughout Canada as well, even in New Brunswick. So, you know, you need land and power. Those are two constituent things you need to realize and build a tier three data center and bring that to market. So we've got... over 90% renewable energy and you know we're working on a closed loop zero water use design sub 1.3 PUE target and this is going to be a great job creator for the region so we're really excited to stand by for updates there's going to be a lot of news as we try to treat more color on developments for this massive game changer of an opportunity next slide please And really, this is very intentional. This is a rendering of the conceptual slide. This is a positive impact for the community. This doesn't happen overnight. This deal has been well over a year, and we've been engaged with the region and the municipality, even in the community. And what does that mean? Well, you don't just go in and drop in a data center. This is massive upgrades to civil infrastructure. We're talking about widening roadways, upgrading regional water lines. You know, there's a lot of nimbyism. Oh, no, they're going to sap up and use all the water. No, it doesn't work like that. We're actually upgrading the water lines regionally. Before we were going to build the data center here, there was a development application in places for, you know, typical use, and the region said, look, you've got to upgrade, you've got to upgrade, you've got to do all these civil upgrades, water lines, storm sewer, etc., And often site development, oftentimes development applications get log jammed when the region has, or municipality has these large civil, it's been almost a decade in commercial property development. And they are noticed when you drive by when a new high-rise goes up, like all the roads leading up to it all of a sudden are brand new and much nicer. Well, that's the civic contribution that you have to make. So actually upgrading, improving the community, it's going to create hundreds of skilled jobs. And again, it's based on closed-loop liquid cooling. So, you know, deeply entrenched into the wants and needs of the community, very thoughtful design, satisfying both the region and the municipality. This stuff doesn't just happen overnight. We've been at it for over, well over a year. And so it's very exciting that we had this announcement recently. Stay tuned for more updates. Next slide. So I'm going to call this a new era for Hive. I see a $5 billion U.S. market cap on the horizon and beyond. And what I mean by that is we've got a 500-plus megawatt global HPC power pipeline. So you may recall that earlier slide, I said if you only focus on Canada or sovereign, There's about 400 megawatt pipeline capacity across three sites. And if you look at Sweden, we've got approximately 40 megawatts of capacity between our Big Boden and Little Boden site. And then of course, the 100 megawatts in Iguazu. So that's very exciting as well. And how do you justify that $5 billion market cap? I'll show you. Let's go into the next slide. So, if you really look at our peers, IRON obviously has done a tremendous job scaling their GPU cloud business and they're trading at about a 6x multiple there. Now, our peers that are focused purely on HPC Colo, APLD, Wolf, Cypher, and HUT. The interesting thing is companies like Wolf and APLD actually have revenue today on their HPC business. And Cypher and Hutt, it's actually all forward contracted. They don't actually have revenue today. And so that's why we have these two buckets. So Tier 3 means active current revenue in HPC and scaling. And then Tier 2 is really just contracted HPC revenue. And you can kind of see the average multiples. So you're actually seeing a higher multiple in the Tier 2 bucket with only contracted revenue, about 15x. Enterprise value to target ARR revenue for Cypher and HUB compared to 10X multiple if you look at the average between Iron, APLT and Wolf.

Nevertheless,

We're just using a nominal 8x multiple on our two-year forward total revenue, which again, really all these sites that we talked about, the Gigafactory New Brunswick, refer to the previous five, but they'll sort of come online through the course of 27 and then Gigafactory early 28. And so if you line up the targeted ARR we have, put an 8x multiple Just our HPC Colo business, look at the top rate, is about $2.9 billion enterprise value, plus another $800 million for New Brunswick, Toronto, Bowdoin. And so that brings you about $3.6 billion. The cloud business, we actually put a 5.9 multiple on that, like Iron, and that's about $1.2 billion. So if you add that up, It's about a $4.9 billion enterprise value. And then if you put a nominal $500 million valuation on the Bitcoin mining business, sort of using a blended valuation where Marin Cleanspar Card puts you at a $5.3 billion implied enterprise value using the sum of the current value. Now, that puts us at about a 4x re-rating where we are today. And again, this is of course predicated upon the GTA Gigafactory having an HPC lease signed and of course is contracting those GPU clouds. So, again, stay tuned. We've got a lot of exciting updates coming as we develop these sites and we'll be announcing contracted revenues in due course, but really just shows where we would be trading amongst our peers at similar multiples. But let's go to the next slide now. If you actually take a look at where our peers are, again, we use a base case of 8x multiple in the COLO. Some of our peers are trading well in advance of that. So at a 10x COLO multiplier, using the same 5.9x on the GPU cloud, Puts in a $6.8 billion base case. And if you look at the blended average of all our peers on the COLA multiple, you know, Wolf, Cipher, APLD, HUT, etc. The blended average for the situation is actually 11.4x to your forward revenue. That would put us closer to $7.6 billion upside case. So, again, I really think it's $5 billion and beyond. Outlook for Hive right now, which is a tremendous... Tremendously exciting time. And, you know, standby as we continue to execute, provide the street updates on contracted revenues, install more GPUs, advance our site development, order long lead items, broadcast ready for service dates, all that good stuff that you'll expect a seasoned two or three data center builder to provide, as well as updates as we expand our NVIDIA Cloud. Thank you very much. Over to you, Darcy. Good morning, everyone.

Fiscal Q4 was another productive quarter for Hive as we continued executing on our strategy of scaling digital infrastructure while growing our HPC and AI capabilities. Overall, our results reflect continued growth in our operating platform and demonstrate the benefit of maintaining diversified revenue streams across both hash rate services and high performance computing. Looking here at our capital structure as of March 31st, 2026, I've had approximately 259.4 million basic shares outstanding. We also had approximately 3 million warrants, 2.6 million options and 15.1 million RSUs outstanding. Throughout fiscal 2026, we were able to access capital markets to support growth initiatives and strategic expansion projects. Our focus remains on allocating capital toward opportunities that we believe can generate attractive long-term returns while maintaining financial flexibility. Going to the next slide, looking at our quarterly results, Revenue for the fourth quarter totaled 71.8 million and we generated approximately 9 million of adjusted EBITDA. We produced 876 Bitcoin during the quarter, reflecting the continued contribution of our global hash rate services operations. While hash rate services maintain our largest revenue source today, we continue to see encouraging progress from our high performance computing an AI business, which generated $4.6 million of revenue during the quarter. We view this business as an important long-term growth opportunity and demand for compute infrastructure continues to expand and be strong. Taking a look at our balance sheet on the next page, it continues to be the quality of our balance sheet that has kept us strong since our inception eight years ago. At March 31st, 2026, we held 23 point million of cash on hand, 10.8 million of digital currencies and 9.7 million of investments. Total current assets were approximately 59.8 million. These resources continue to provide liquidity to support operations and growth initiatives. During the year, we maintained our disciplined approach to funding expansion while preserving capital flexibility. Although we continue investing in infrastructure and strategic growth opportunities, we remain focused on maintaining a healthy balance sheet and prudent capital management. The next slide highlights the progress we made in expanding gross operating margin dollars. Gross operating margin, to approximately $17.5 million in the fourth quarter of fiscal 2026. The increase reflects the substantial growth in revenue generated by our operating platform over the last 12 months. While market conditions continue to fluctuate, we remain focused on operational efficiency, energy optimization, and disciplined cost management. Looking at year-over-year performance, revenue increased from approximately $31.2 million in the fourth quarter of fiscal 2025 to $71.8 million in the fourth quarter of fiscal 2026. Gross operating margin increased from $8.8 million to $17.5 million over the same period. While gross operating margin as a percentage of revenue moved from 28% to 24%, We are encouraged by the significant growth in both revenue and gross profit dollars. As we continue expanding our infrastructure platform, our focus remains on generating sustainable operating cash flow and long-term returns on invested capital. Comparing the fourth quarter to the immediately preceding quarter, revenue was 71.8 million compared with 93.1 million in Q3. Gross operating margin was $17.5 million compared with $32.1 million in the prior quarter. The sequential comparison reflects normal fluctuations in Bitcoin mining economics, market conditions, and operational factors affecting production and revenue during the quarter. Importantly, the business continued to generate positive gross operating margin demonstrating the resilience of our operating platform, even in an ever-changing market environment. This next slide highlights the distinction between operating performance and reported earnings. Adjusted EBITDA improved year over year, moving from a loss of $30.7 million in the fourth quarter of fiscal 2025 to adjusted EBITDA loss of $9 million in the fourth quarter of fiscal 2026. Reported net loss for the quarter was 76.3 million compared with a net loss of 72.9 million in the prior year period. Primary difference between these measures relates largely to non-cash items as we have discussed on prior webcasts, even though those charges do not impact current period liquidity. For that reason, management continues to monitor both GAAP results and operating performance metrics such as adjusted EBITDA. This slide highlights the distinction between operating performance and reported earnings. Adjusted EBITDA improved year-over-year, moving from a loss of $30.7 million in the fourth quarter of fiscal 2025 to adjusted EBITDA loss of $9 million in the fourth quarter of fiscal 2026. Reported net loss for the quarter was $76.3 million compared with a net loss of $52.9 million in the prior year period. The primary difference between these measures relates to largely non-cash items, including depreciation associated with our ever-growing infrastructure asset base, stock-based compensation, and various accounting adjustments required under U.S. GAAP. As our infrastructure footprint expands, depreciation expense naturally increases, even though those charges do not impact current period liquidity. For that reason, management continues to monitor both GAAP results and operating performance metrics, such as adjusted EBITDA. Looking sequentially on the next slide, adjusted EBITDA was negative 9 million in the fourth quarter compared with positive 5.7 million in the third quarter. Reported net loss improved modestly from 91.3 million in the third quarter to 76.3 million in the fourth quarter. Quarterly results can be affected by a variety of factors, including Bitcoin prices, network difficulty, production levels, and accounting adjustments recognized during the period. Our focus remains on executing our long-term strategy, expanding our infrastructure platform and positioning Hive to capitalize on opportunities across both Bitcoin mining and high-performance computing. To conclude, fiscal 2026 was a year of substantial growth for Hive. We increased revenue, expanded our infrastructure footprint, continued building out our high-performance computing business and maintain We believe the investments we have made over the past year strengthen our foundation for future growth and position the company to benefit from increasing demand for both digital asset and high performance computing infrastructure. With that, I'll turn the call to Nathan running our Q&A portion for our covering analysts. Nathan.

Thank you, Darcy. That concludes the presentation for today. We'll now begin the question and answer portion of our call. Analysts on the line, if you could please click raise hand when you're ready with your questions. We'll begin to choose and ask you to unmute. Our first question comes from the line of Joe Boppy from Canaccord. Joe, the floor is yours.

Hey, guys. Good morning and congrats on all the progress. Really exciting times here for Hive and the industry. Maybe we kind of start on the Gigafactory a little bit. You know, great vision and plans here. If you drill down a little bit more on procuring power for the Gigafactory, you know, obviously power is a constraint here. And, you know, I think a lot of investors here are pretty familiar with kind of, you know, the power market in the U.S. But if you could lay out the power market in Toronto there for scaling that, and in general for Canada. That would be a good place to start, and then I'll have a follow-up. Thank you. Yeah, thanks, Joe.

So the power in the GTA is governed by the provincial regulator, and there's actually two. One is in charge of generation, and one is in charge of transmission. And so, you know, effectively you've got to be contracted with both. And that's really the pillar of having this allocation of power. And really, that's what I can tell you for now. It's about over 90% renewable energy. And let me know if there's anything more specific that you'd like to know.

Just maybe a little bit on, you know, is power really a constraint there? Or, I mean, or you see the Gigafactory kind of scaling slowly and, you know, it's really more of a CapEx spend on GPUs and infrastructure and power is less of an issue. Just trying to understand that a little bit better.

I know, and there's a full allocation for the 320 megawatts, and maybe what you're asking about is there's grid studies and load studies, et cetera, that go into an allocation of that scale, and that's what's so exciting about this site is that we have that allocation. So I think it's more what I try to address in my section, and we've been at this for over a year now, It's an exercise in, of course, securing the distribution and load generation contracts. And we can provide more color on this sort of detail as we provide updates on the site development, etc. But it's also regional and civic planning. And I have a slide dedicated to that. You don't just go drop in... you know some modular containers like this is this is a real this is going to be a real um bellwether for the community and um uh so so as far as your point about capex i mean it would be financed really like any other large state center project we've seen a lot of our peers issue corporate bonds we've seen of course obviously once you have um at least with a hyperscaler and off-taker that obviously is a major catalyst towards funding as well. So really, as we've seen a lot of our peers fund these larger-scale future builds, that I hope addresses the CapEx portion of your question. But again, please let me know if there's something more specific you want some clarity on.

That's great, Aiden. That's a good backdrop. And then maybe some more color on Paraguay. I mean, it feels like it's a great opportunity. I know Frank mentioned plans to perhaps procure up to a gigawatt down there over time. I know you've started with some... Some AI services for Columbia University from down there. Any other updates for now on the Paraguay opportunity and what to expect there, say, over the next year?

Yeah, yeah. Actually, I'm glad you brought that up. It was a lot of stuff in the updates, and really we had all this exciting news out of Canada, but It's funny you mention that. You promised everybody that wasn't a scripted question. So we actually had an update. Our researchers out of New York, Columbia University, that were running compute nodes out of Paraguay, their research initiative was successfully completed, and they have submitted their work, their inaugural research, using Paraguay. Digital Technologies Ltd. Congress. And so that's really exciting. And so we're going to release some of that. I mean, it's a great research project, and so I'm happy to talk about it briefly on this call. But more importantly now, we actually have the data on tokens per second, bandwidth, and latency between New York and SMC. So that was a research R&D initiative that went very well. And so stay tuned for more updates as we kind of update. I think one thing I've alluded to in a lot of our... Fireside chats, which we're always grateful to be on that you host, and being at the different conferences, etc. The operative word is, I've been saying we've been land banking by substations. Well, that applies in Canada, as evidenced by some of our exciting recent news, but also Paraguay. And by the way, we've been expanding our footprint in New Brunswick as well because you need more land for expanding into a tier three than you do for a Bitcoin mine, of course. And, you know, by the way, like when you think about it, when you think of construction and you're building and you're getting into mobilization, where are you going to have storage and where are you going to have a lay down of... or even just encampment for construction workers, etc. So obviously you need more land than just the square footage of the finished building. You need to think of logistics over the course of construction, etc. So we've been expanding our land footprint in Paraguay by the Iwasu substation, which we think has incredible long-tail value. I could say other large... Data Center players in the industry have indicated interest. I think there was a photo floating around with Crusoe and Pena. So just to give you an idea of who's been poking around that area, that neck of the woods. And again, we've been land banking by the substation Iwazu. So stay tuned for more updates as that initiative unfolds over the next quarter as well. Great. Thank you very much, Hyde. Thank you.

Thank you, Joe. All right, next we'll go to the line of Mike Grondel from Northland. Mike, the floor is yours.

Hey, guys, can you hear me?

Loud and clear, Mike. Good morning. Good morning, guys.

Hey, I wanted to get a sense of CapEx maybe the next 12 months. Any rough estimate how you can frame that up on the Buzz side and the Bitcoin side?

Yeah, absolutely. Sorry, I thought I addressed that in my section, Mike, and really that was captured. If you guys want to watch it on the playback, if you watch the YouTube link, sort of that section that shows the growth of the Buzz cloud in terms of hitting that 200 mil ARR ramp, And then right after, I talk about our $150 million zero coupon bond. And so that sort of addressed the CapEx. So just sort of rough numbers just to give you something broad. And, you know, you could substantiate this. I'm sure you've got similar data out there. But if you look at a cluster, like the guidance we've provided is our growth in ARR with the catalyst being the cluster size. But the GPU deals for MOUs that have been signed. So we have a 2088 cluster, which, by the way, when you're looking at NBL 72, Grace Blackwell, that equates to 29 racks. So 29 times 72 GPUs is 2088. And then the other cluster is slightly larger. It's 32 racks times 72 GPUs is 2304. One is GB200, one is GB300. I'll give you a rough number. Each cluster, again, you could just go substantiate this by, or validate this by talking to peers in the industry, about $170 million for everything. Like when you get a bomb from an NVIDIA OEM and you're networking your storage, everything that you need really to fully deliver is about $170 million per cluster. And so, So that's the CapExpert cluster, and each one of those clusters, one had 70 million ARR, the other had 65 million ARR, and I discussed how you finance that. If you want to get single-digit interest, typically you're looking at putting 80% LTV, so 20% down payment, so it's 20% of Under $70 million, it would be about $34 million. And by the way, there's customer deposits involved too, which may possibly offset, may not. But anyway, if you want to use a rough number, that would be a good indicative down payment from us towards each large cluster. And then filling out the Winnipeg site, we showed another $1,500 deposit. Our original cluster, I also had a slide that detailed the cost of the original B200 cluster, which is live now. And that cluster of 504 GPUs was about $30 million. And again, that slide really focused on how the two-year contract we signed was for that cluster of B200s. The value of the contract really covered the face value of the GPs. So anyways, I provided the clarity on the CapEx there. So you got another 1,500 GPs in the pipeline, 1,500 times a certain... That would be three times the existing cluster size, so three times $30 million, another $90 million, which, again, you know, we would sort of finance. And that original cluster was through Dell, Dell Financial, and they've been a great partner. So, you know, we may possibly finance it through them or, again, you know, typically 80% LTV. I hope that's really helpful, but that should give you the capital outlay to finance a GPU cloud business to get to that level. Got it.

And then I assume there's no capital outlay or capital expenditures on the Bitcoin mining side. And any plans to de-emphasize that or possibly sell that off?

Correct. There's no CapEx allocated for Bitcoin mining. I mean, really, 2025 was the year of Bringing on that 18 plus X a hash in Paraguay. And we have some credits with Bitmain. If you look at our presentations last year, we used this pledge. We pledged a lot of Bitcoin at $87,000. And when Bitcoin was above that, we actually realized value from those credits. And so with those credits, then we actually got some S21XPs, which went to strategically upgrade some buzz miners. And so we're talking a few thousand units here. And really just to get that break even as low as possible globally to be able to navigate any volatility, continue the cash flow. And that's really the only reason I had that. Price sensitivity slide in my section as well, so it's readily apparent. If you're watching, if you're like, wherever Bitcoin trades over the next quarter, you can always go back to my presentation, look at that slide and be like, oh, okay, I should be doing about 50% margin after electrical costs, 45%, whatever the case may be, just to understand how that dual-engine strategy, how much cash is being thrown off. But yeah, no capex for the Bitcoin mining business. And I don't know what you mean by de-emphasizing. I mean, it's I think a significant amount of cash flow generation we've got. I know some of our peers have. Cypher has 23x a hash. Whether they emphasize it or not, it's still there. I assume the street would like a bit of color and clarity that it's still being well managed and you're getting maximum value for all that capital that you've invested into that infrastructure to make sure that it is um, cash flowing as much as humanly possible. And that's why I did take a couple of slides to point out that, you know, we, we still carefully in one of our, our deployments, um, you know, we, um, and I, I think it's worth noting, like zooming out, you know, we were once the world, one of the world's largest theory of miners. We got it, this cloud game, GPU cloud game early in 2023, after the ETH merge scaled Bitcoin mining. So, you know, the very nature of orchestrating computers, uh, To me, it's always been somewhat agnostic. I look at everything in dollars per single watt hour. But, yeah, whatever we're going to be doing, we're going to be doing it well, you know, to ensure maximum upside for our shareholders. Hope that helps.

Got it. Thank you.

Thanks, Mike. Next question will go to the line of Mike Colvanese from HC Wainwright. Mike, the floor is yours.

Hi, good morning, Frank. I didn't see you. Thank you for taking my questions today. Just a couple more on the GPU Cloud business for me. So, as it relates to the data center infrastructure that will support the incremental chip deployments at the Dell data centers throughout Canada, can you just give us an update as to where the infrastructure stands today? Is it ready to go? Are there other you know, developments that need to happen at those sites to go ahead and support those additional GPU deployments?

Yeah, so if you refer to the – so the Winnipeg deployment, of course, is currently live. That's for the first 500 GPUs. But moreover, when we put out a press release, I believe it was in early April, with Bell for the expansion to British Columbia – on the West Coast. That was for the site in Merritt. The excitement around that was that the site was ready and effective for us April 1. So the Merritt site's live and so it's really an exercise of standing up the GPU clusters in there and going live with those. And again, kind of circling back towards Joe's question, we're kind of towards the final strokes of financing and announcing definitive for those cluster deals. And so, yeah, so you've got the capacity for the first cluster ready today at the Merit site and that the capacity for the second cluster in the Merit site will come online later this year. And you kind of see the timeline that we've laid out in that. I would refer you back to that chart. slide where you kind of have the growth of the GPU clusters by type of GPU, by size of GPU, and by what quarter they're expected to be deployed. Yeah, I hope that answers the question. Please let me know if there's any more clarity.

Great. And so it sounds like the cadence of infrastructure development aligns well with pretty low risk to the schedule you laid out in your slide. Is that safe to say?

Yeah, yeah, exactly. And that was the whole virtue of having the CapEx like QuickTime to mark your partnership with Bell. You know, as you very well know, we are data center builders and operators ourselves, but having that Bell logo, having that... Digital Technologies Ltd. Either conversions, for example, New Brunswick and our sites in Bowdoin and Little Toronto, of course, now with the Gigafactory. So, yeah, that was the whole strategy is to leverage that quicker time to market through Bell.

And just one more for me. How should we think about gross margins for the GPU cloud business for those chips that will be deployed at the Bell data centers? I know you mentioned you locked in a pretty favorable co-location fee that you're paying to Bell, but I'm just curious how you think about the gross margins there.

Yep. I would put EBITDA north of 75%. Great. Thank you.

You bet. Thank you, Mike. Time for a few more questions here. We'll go to the line of Fedor from B. Reilly. Fedor, please proceed with your question. Thank you very much, Nathan.

Just checking. Can you hear me? Yeah. Hey, Fedor. Good morning. Good morning. First of all, thank you very much for a very detailed presentation. Most of my questions are already up front answered, but I do have one on 320 megawatts. Newly acquired land that supports Gigafactory extension. Given the recent announcement, my question is when did you start conversation for arranging this capacity to potential tenant and what kind of tenant you're looking at and if you can just outline demand from Canadian

I think I alluded to the, thanks for the question, I think I alluded to the Gigafactory site is really the crown jewel in the Canadian sovereign strategy. So, there's, given the proximity of the site, you know, GTA, Greater Toronto Area is what GTA refers to, is really like the prime The short answer to your question, stay tuned. Really, the inaugural announcement was to Share with the street, the capacity, the power, and the land. And so, specificity on who or the types of clients, you'll have to stay tuned. But I can say directionally that this would be a phenomenal site even for having some government tenants in there as well. And, of course, in our partnership, With Bell Canada, although this is a Hyde and Buzz-owned site, which is distinct from the Bell AI Fabric sites we've been co-locating. This is our own site that we're developing and building. We've got a phenomenal partnership with Bell. They have many Canadian enterprises that would love to have residency at the site. I know you want more color, but that's one of those questions you're going to have to stay tuned. And if there's anything else that you'd like to ask, please let me know.

No, thank you very much. I think that's clear. Thanks for updating. Continue to best of luck. Thank you. Appreciate the question.

All right. Time for one final quick question. We'll go to the line of Stephen Glagola from KBW. Stephen, the floor is yours.

Everyone, good morning and thanks for the question. I just wanted to circle back also here on the 320 megawatt greater Toronto site. One, can you maybe clarify what full allocation means for the 320 megawatts gross capacity? And then second, you mentioned greater load studies in the prior Q&A. Could you maybe provide more details across, you know, interconnection and permitting including like where you stand in the IESO process and any remaining permits across zoning, building, you know, environmental required to begin construction or support customer contracts. Thank you.

Yeah, so quickly, Stephen, you know, we're, you know, this isn't like, you know, the guys at Semi Analysis, they like to go ask all those questions and there's just a certain level of disclosure that we're going to provide and then there's Digital Technologies Ltd. I'm sure you'd love to come to the site and take a bunch of pictures too, but you know what? That's not going to happen yet. You'll get an invite when we do public walkthroughs, etc., but in the meantime, you're just going to have to hang tight, buddy. I think it's also covered in my slide. You can put 240 megawatts by kilo, if you assume 1.3 PUE, And, you know, you could work out your revenue figures based on... I mean, it is a primary market. So, you could use your dollar per kilowatt. You could put $150 in there if you wanted to get to... Revenue Projections. I'm not sure if that was your question, but I hope that's helpful. And I want to be helpful, but, you know, sometimes, you know, people will ask questions that are just far beyond the scope of disclosure at, you know, any moment in time. So I just, you know, with all respect, I have to call that out.

Thank you.

Thanks, Steve. And that concludes our Q&A session and our fiscal Q4 and four-year session. Thank you to our analysts, all of our attendees for joining. We look forward to speaking to you again soon.