HIVE Digital Technologies Ltd.

Hello, and welcome to today's webcast covering Hive Digital Technologies financial results for fiscal Q1, 2027. 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'd like to briefly note the disclosures for today's presentation. Except for statements of historical fact, this presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act 1995. 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 8-K furnished to the SEC. On the next slide, I'm pleased to introduce today's presenters, Frank Holmes, Executive Chairman, Aydin Kilic, President and CEO, and Darcy Daubaras, Chief Financial Officer. I'd now like to hand the presentation over to Mr. Frank Holmes for a macro recap of the quarter.

Frank? Thank you. And so let's do a quick macro cap of what's been affecting stock markets and high stock price and valuations over this past recent quarter. Next, please. So before we jump into those granular details, it's always important to understand the DNA volatility and every asset class has its own DNA volatility. And this is the highlight that for especially we find so many people like to trade hive. It's because of that volatility. It is a non-event over one day to go up or down 6%. and over 10 days, 23%. You can see that's a little more than core weave. It's substantially three times more than what Bitcoin is and four times more what Nvidia is when we look over six trading days. So it is just the factor of these macro forces pulling with these announcements from what Bitcoin is doing on a daily basis to the announcements of our AI build-out. So when we have a strong Bitcoin day and good AI sentiment, the stock has these big surges. Vice versa, a negative day in the world of AI and Bitcoin down and you get these downdrafts. These appear to be the factors driving a lot of the sentiment. The leadership team has been up here before. Aydin, the CEO, the best operator in walking through why in the data center business, and Craig Tavares, our superstar sovereign builder, I mean, incredible builder of data centers, build out our vision in Canada in particular, which is the fastest track that we have. And the government's committed to it with having a minister for AI. Darcy Daubaras, our CFO, Gabriel Ibghy is in Europe, and Gabriel Lamas is in Paraguay, and Johanna Thornblad is also in Europe. Time operates over nine time zones in five languages, and we're able to manage that complexity and still be one of the most efficient Bitcoin miners. And our HPC AI data centers that we have functioning today in downtown Montreal, Stockholm, in Manitoba and British Columbia. Our efficiency is always ranked by third party. It's the top of the stock. Hive has always used green energy. Canada, Sweden, Paraguay. Low electricity costs, low temperature, fast internet connection. And what we've been doing is to accelerate the AI build-out is dark fiber. Dark fiber in British Columbia. Sorry, Dark Fiber in New Brunswick in Canada, and Dark Fiber is next to be laid in Paraguay. But we've been able to demonstrate on this ability to export, create, convert electrons and exports to what they call compute power 5,000 miles away. So that's pretty impressive. And so we're pretty excited about what the opportunities down the road is in Paraguay. I want to thank all the shareholders. You can see Invesco, Citadel Advisors, Millennium Management, Two Sigma Investments, Charles Schwab. Charles Schwab is probably the biggest in the retail component from Register Investment Advisors and the retail public. So thank you all for listening to the call, for being shareholders. For the quarter ended June 30th, You can see that high vote performed this 50-day moving average. It had a big sell-off along with the whole industry in July. And it was one of the biggest outpouring in the month of July by hedge funds. And a lot has to do, which I'll mention later on, about the carry trade of Japan and the significance of this sort of domino effect, a contagion. Japan wanted their money back because rates are going up. and it impacted first the Korean stock market which was one of the best performers last year up about 100%. It had a huge correction as a particular technology and AI related stocks sold off out of South Korea and we saw that domino effect impact in America and we saw a lot of AI and anything related also being deleveraged and I think that that's sort of worse is behind us and these sentiment factors, they swing back and forth and what investors have to realize is this carry trade in Japan is quite significant in my years as a money manager of seeing the swings back and forth globally of what it's done and so it appears that the worst is behind us right now out of the Japanese economy. We're happy to see that five outperform Bitcoin at the end of June when you look over that time period this year. And I think a big part is much of our AI strategy and announcing the growth in the revenue from a million a month to $3 million a month and now expanding that will be going to five to six to $10 million a month with these contracts that we're building. And we have machines. that have been increasing this year to date substantially over the year. The daily cash flow coming from our GPU chips, in particular the suite of Nvidia chips we have. I mentioned earlier that Japan carry trade on wine as a macro risk. I think the worst is behind us, but any rising rates in Japan will have a big impact. We've seen the administration come into support. Thank you for joining us. and get U.S. rates from 4% up to dividend-paying stocks and speculative stocks. That was starting to unwind as Japan started seeing their rates rise and they want their money back. This is a real important phenomenon for investors just to be able to follow the Japan carry trade because it impacts you. You don't realize why the stocks are up or down during the day. There's no news. and it could be an unwind or reloading around the world. Well, it's been exciting to respect that last year, we substantially increased our hashing power in Paraguay in particular, taking a rural complex from 6x a hash to 25. That gave us economies of scale. And that gave us the ability to deal with the drop in Bitcoin pricing and the difficulty rising. and those are two real significant headwinds, especially in February of this year we hit. And we've been able to make money every month, even though, and I can share with you, have we not strapped on that additional power, it would be very difficult to be operating a Bitcoin operation. but we have this key scalability at 2% and then redeploying our Bitcoin into expanding our AI Gigafactory vision. So Aydin is going to give you and Darcy, our CFO and Aydin Kilic, our CEO is going to give you more granularity on these numbers. But underneath the hood, underneath all these non-cash charges such as The depreciation that we have to take for our chips, and in particular, the non-cast charges out of Sweden, which we'll have more discussion on as we go on this ongoing battle with the Swedish tax agency, which changed the rules from when we initially went there. The interpretation. The laws haven't changed. It is their interpretation because they're very anti-crypto industry. And even though we try to explain that we're exporters of electrons, we take hydroelectricity, run them through an ASIC chip, and we export that hashing power, compute power to Foundry, which is a pool in the US, which is SOX 1 and 2 compliant. and they pay us our Bitcoin in Bermuda. It's an export industry. And what's really exciting is that Paraguay's central bank gets that and it's important now for them in calculating what the GDP is and the contribution to their GDP of how we use a chip. And AI business is very similar. and that is you take the electrons, you run from the hydroelectricity of hydro, they go through your GPU chips and you can transmit that GPU power, that compute power to New York City. And we demonstrated that in a test 5,000 miles. Now, you cannot send electricity on transmission lines 5,000 miles, but you can convert them into compute power and send along fiber optics and so on. and many more. in battling with Sweden. And we believe that based on law and our expert witnesses, we will go through this process and we believe that justice will prevail. But what's important for you is to recognize underneath the hood is that the revenue quarter grew 10%, net operating income grew by 86% because the beginning of this year, February, was a very big challenging month. So, the year-over-year, it goes to show the significance of the scaling. I mentioned at the very beginning, taking revenue as the year-over-year grew by 73%, even though Bitcoin fell by 40%, and operating net income grew by 50%. So, we're really thrilled of our position of having 2% of that global network and continue to build out that dual engine in particular this year. is our HPC high performance compute strategy to build AI gigafactories. And Craig Tavares will give you more granularity as we go on, but who's really going to really carry that ball for you today is going to be Aydin Kilic. The team is very, very proud of closing another 130 million of exchangeable notes, zero cost of capital for interest payments. That money is not earmarked for Sweden. That money is earmarked for the fastest path to cash flow and revenue, in particular in our partnership with Bell Canada. The countries that win the AI race will just produce the smartest engineers that build the infrastructure to support them. And data centers are becoming an essential to economic growth as railroads were a century ago. and a quote I've been saying in speeches. And one of the things that in our Gigafactory being the biggest in Canada, I think what's really interesting is that it's really not taught in school in Canada to the degree, but I grew up there as a child, and Toronto was very proud of their medical breakthroughs and research. It inspired me to, and part of my journey of education was to going into medical school before I pivoted to go into business and economics. because I was just so in love with what was taking place in Toronto and Waterloo and the University of Western Ontario where the founding school is called Huron University. So I sit on the board up. I was always thrilled to know in 1921 insulin was discovered in Toronto. Pavlim was developed in Toronto. The pacemaker was pioneered. Polio vaccine and scaling it was in 1955 when I was born. was done in Toronto. The first successful double lung transplant, cystic fibrosis gene. I can go on, but it's rich with intellectual capital with two major schools, the University of Toronto and Waterloo University, which is like Canada's MIT. There are many other schools all around, like the Schulich School is famous for business. in Toronto, but there's many scientific research laboratories in that area. And Toronto is the financial capital of the country. Ottawa is like Washington, D.C., is the political capital of the federal government, but the universities are really in that greater Toronto area. So, we've got a campaign to try to educate investors in Canada as well as in the U.S. about the University Health Network. Sick Kids Hospital, one of my friends is a doctor here, a pediatrician, and his internship was in Toronto at Sick Kids. The Princess Margaret Cancer Center, the Vector Institute, where the Nobel Prize winner two years ago Jeffrey Henning was at the University of Toronto. This use of artificial intelligence to improve cancer diagnosis, drug discovery, medical imaging, it's very, very big. But what they do not have are these big gigafactories, AI gigafactories, and that is where Hive's buzz is buzzing with activity to build out. So other things just to understand and appreciate Toronto more outside of the Maple Leafs or the Raptors basketball and the Blue Jays baseball. The telephone innovation was not too far from the city of Toronto. The electron microscope in 1938, NTG GC 41, Deep Learning 2006. Ethereum, next please, was discovered by a student out of Waterloo University. What's also important in this visual is to show you the triangle of concentration of internet nodes and in particular for AI and transferring of data. The big concentration is from the Toronto region up to Boston and down to Virginia. This is a visual to show you where Lake Ontario is and Finger Lakes, as you see, is New York and the University of Toronto. and the Buzz Gigapactory is right in between Waterloo University and University of Toronto. The University of Toronto is much closer to where Toronto is than this map, but it gives you an idea that this is an important intellectual capital. Just like I've mentioned before that you look at bio research, 50% of bio research is done in Boston, San Diego. If you look at other types of research, There's clusters of software coders that show up. And when you look at cybersecurity, one of the biggest clusters is right here in San Antonio, Texas, with UT University, which has the biggest cybersecurity school in the country with 10,000 students. So, Vitalik Buterin, the creator of Ethereum, went to Waterloo, aka, as I call it, the MIT of Toronto, because of the software. A number of geniuses have come out of that school. So this is to give you an idea from a macro point of view, which has happened this year as semiconductors have had a big run. And they started coming off of the correction, as you can see here in July. And a lot of this had to do with the contagion from Japan to Korea to North America to Europe. And it looks like that worse is behind us now. What's important when I look at and I hear, oh, it's a bubble, it's already, it's the worst ever, it's a bubble, bubble, bubble, and all these people are coming in with PhDs in bubbleology. I share with you that it's far from that. And the amount of these collateral minerals, you need lithium batteries, not just for cars, but you need them for all these data centers. And you can see the drive for lithium everywhere. and graphite and nickel and zinc and copper. Copper is making an all-time high because a gigawatt of electricity, converting that to an AI factory like Berlin, Texas, is going to consume 50,000 tons, not copper, tons of copper. Most people think of pounds of copper. No, 50,000 tons, and that's 2,000 pounds per ton. That's a significant amount. and when we look around the world, it means that the supply is limited and it continues to have big demand globally. That's another sort of demand that I see that's going to continue with building out of AI centers. And there's lots of political headwinds as election years becomes on the agenda, but it's not going to stop this build out. This is just looking at spending for you, and you've seen this in other visuals, but it's just important to recognize the peripheral equipment for computers. Those stocks have been on a tear, and it's not just here in America. It's a global phenomenon. Anyone's involved in the building construction of these data centers. Australia, I mentioned Australia, Bitcoin, particularly the central bank of Paraguay recognized it. to win data centers are big contribution to the GDP because it's a way for the country to export besides food and beef. They're able to export electrons and they export them with compute power. And it's significant contributing income to the country for its size. So, I'm very pleased that the central bank has had this The ability to really grasp the significance of this being an export industry and hopefully other countries will all of a sudden recognize that like Sweden and Canada, Norway and Iceland that it's an important component of converting hydroelectricity or any other type of electricity with GPU chips to be able to export that compute power. Just a visual for you to grasp. You cannot transmit electricity from Paraguay to New York, but you can send AI compute power. And those GPU chips is what we do. We've shown it. We've demonstrated it. And that is a big breakthrough. We think this is very significant, what we've been able to demonstrate. And after we lay all the dark fiber necessary in Paraguay, like we're doing in New Brunswick on the border of Maine, I think that the ability to move those molecules, electrons, and the power even accelerate. That's the team, 300 megawatts building out in Paraguay and expanding another 100 megawatts. So, this will give you more granularity of other things we're looking at. We are looking in Texas, Paraguay substation being built, Bowdoin, the land that we end up purchasing in a separate entity. as we repurpose the land and power in Sweden. And then the Gigafactory that's taking place in Canada, in particular in New Brunswick. And then this joint venture with Delta Canada rapidly expanding in British Columbia. So we are coast to coast and the biggest technically hyperscaler in Canada. That's the building, beautiful theater center that we bought. in Northern Sweden with the land and the long-term power contracts. And we have a very strong footprint in the community. There's the Hive Hockey Arena in which we sponsor 12 kids learning how to play hockey. This is a draft, a visual for what we expect to see over the next couple of years in Toronto for the AI Gigafactory. This is really quite phenomenal that I didn't give you more granularity about the relationships Craig has been able to build and accelerate with other key groups and entities. So I think it's really important to see that a couple years ago it was predominantly the relationship that we had with NVIDIA and Aydin and myself had been and purchased a lot of NVIDIA chips. But what we've seen with Craig taking that ball and running with it has really accelerated these other relationships and the thrust to be in these other countries that have sovereign data centers. So this is just to give you an idea. We're traveling all over the world all the time meeting with captains of industries like Michael Dell several times, President Pena, Jensen Hang, So, we are meeting with very important people that have visions and President Peña has an incredible vision for the country. You can see Gabriel Lamas with his arm on President Peña's shoulder. Well, it's the big vision is to make that the biggest AI destiny center for gigafactories in Latin America. So it's great to be with young executives like Santiago Pena, the president of Paraguay, that has this phenomenal vision. And we hope to be fast-tracking that process and growing with this country. Well, here's I'm turning it over to Aydin, and that's Aydin throwing a touchdown pass to Craig Tavares, which I just mentioned. Aydin Kilic is our electrical engineer. He's our CEO, was recently our president. and Chief Operating Officer and saw the building and construction of New Brunswick and helped dramatically build out the Paraguay for Hive. And I think it's important to listen to him give you the story and also been very much involved in Wall Street and raising capital for this growth we have for our gigafactories. Here you go, Aydin.

Thank you, Frank, for the excellent strategic overview. Now let's get into an executive summary of the quarter to date, our recent accomplishments, and some exciting things in the pipeline. Starting here, financial highlights for the quarter period ends June 30th. $79 million of revenue, $24 million of gross operating margins, and $15.2 million of earnings from operations, which is revenue, less cost of goods sold, less corporate G&A. We do have a 143 million dollar net loss which is really driven by two non-cash items this is depreciation of about 54 million and this roughly 85 million dollar provision for tax liability in Sweden this is actually a long-standing issue that we've previously disclosed over the last two years going back as far as 2023 related to the Bitcoin mining business in Sweden and VAT tax treatments for and many more. Look, we have a very aggressive two-year depreciation cycle for those ASICs. That means over eight quarters, ASICs will get depreciated to zero. Well, guess what? We imported about a quarter billion dollars of Bitcoin mining equipment, the containers and ASICs, to Paraguay last year. So that depreciation is still hitting us quarter over quarter. And we have four-year depreciation for the GPUs. And of course, as we have GPUs from the past and bring online more, that's really where that non-cash number comes from. We're quarter over quarter and year over year. I'm very pleased it was a strong quarter. Growth 10% in revenue quarter over quarter, 74% growth year over year. Again, driven by the expansion in Paraguay. And moreover, if you look at the earnings from operations, again, that figure 15.2 million, that's an 86% quarter over quarter. Again, last quarter, Jan, March, we saw the downturn on February. My economics were the lowest they've been. We navigated that. Still with the business generating $8 million. on a cash basis this quarter, April, May, June. That number almost doubled to $15.2 million. And year over year, that number is up about 50%. So again, having a lean and mean corporate GNA, we've made a lot of strategic hires to scale the HPC business, but we really want to focus, does the business fundamentally on a cash basis make money? So what is your revenue? What are your direct operating costs or your COGS? and of course your corporate GNA. And you can find this nicely summarized on the page 20 of the MDNA, but here it is graphically represented. This is a breakdown of Bitcoin mining versus HPC revenue. Currently, our HPC revenue is represented by the GPU cloud revenue, $7.1 million for the quarter represents about 10%. The total revenue this quarter in $72 million is Bitcoin mining, about 90%. But I want to point a couple things out. So the last four quarters, the previous four quarters, we were doing roughly $5 million a quarter. We were at that $20 million ARR figure, well, in May. That B200 cluster went online in Bell Canada's Winnipeg facility and that got us to $7 million of actual revenue for the quarter. So you're seeing that growth and that number is going to continue to grow and we're going to explore why. But just looking at The Quarterly Analysis, Bitcoin Mining Revenue Group, 7% quarter, 77% year-over-year again, having Paraguay fully at scale, and of course, as I mentioned, HPC is growing. So, if you look at that $7 million realized for the quarter of HPC revenue, that's about $28 million ARR if you annualize it. Let's go to the next slide. Well, that means At Q2, we exited the quarter at $28 million ARR. We're actually doing $35 million ARR today because we're about $97,000 daily HPC revenue. But here's the big news, everybody. We just hit a massive milestone. So excited to share. Our team's done a tremendous job. And we are at $180 million of contracted revenue because we just announced a new five-year deal. which adds 70 million ARR to our HPC business unit. And this is new news. This is brand new. We just announced it this morning. This is in addition to the Cohere deal which we announced a few months ago. So you now have $180 million of combined active and contracted revenue. We're very excited. This is a five-year contract that we just announced. These are GB300s. 2088 GB300s is going to go to the Bell Merritt facility. These will be delivered and deployed in Q4. It is a five-year contract for $350 million total contract value, therefore $70 million ARR. Super excited. We funded the acquisition of these GPUs using proceeds from our June Convert, where we did the $130 million convert 0% coupon. Lenovo is our partner for the OEM on these GPUs. And this gets us to that sweet, sweet $180 million number. And by the way, we're still targeting $200 million ARR for the GPU cloud business before we still have more GPUs to bring online in the pipeline. But we're at critical mass now. So, very exciting. And of course, this will go into the Bell Merit Facility, which will be closed-loop, liquid-cooled, ultra-low PUE. I was actually just there that last week on a site tour. The facility is looking phenomenal. That Merit Facility will house both the Cohere cluster of GB200s and this new GB300 cluster. And this is with an investment-grade platform. Global Technology Giant that we signed this deal with. So that's fantastic. And they're actually putting a 10% down deposit of total contract value of $35 million. So that's very exciting. If you zoom out and look at the total contract value now of the cluster deals we signed, we're up $600 million of GPU cloud PCB signed this year. This year, the Buzz team has done a tremendous job. Craig Tavares, Mark Volk, Mario Sergi, they've all been doing a phenomenal job. Gabriel Ibghy, really the whole executive team, him, of course, Darcy, everybody has been working around the clock to make this a reality, and of course, It all really started with Frank's vision when we ordered those NVIDIA GPUs back in 2021 to pivot from Ethereum mining to HPV Clouds. So to see here today that we've got $600 million in total contract value signed really this year and Our market cap is about $800 million. So you see how attractive we are. And so I think that the stock should be due to re-rate with this fantastic news. And these are long-term contracts. We told the street when we were doing our converts to fund this growth, that we were going to focus on long-term three to five-year contracts, which is exactly what we've done. The co-year contract, three-year, 225 million TCV, and this new GD300 contract with the global tech giant, InvestmentGrade, is a five-year deal. So very exciting stuff. And of course, that was a snapshot, a picture there of one of our actual clusters. So this is a snapshot of the two convert deals we did this quarter in April and in June. Collectively almost a quarter billion dollars to zero coupon debt five-year bonds. We did purchase a capped call for each to minimize dilution. So the capped call conversion premium $4.92 for the April bond and then $8.53 for the June bond. Those capped calls are very attractive as you minimize dilution. and, of course, having that zero coupon interest. So, we are delivering on our promises. The proceeds from these notes were to go towards the acquisition of these GPs, which, by the way, the GPs we still finance. So, we put a healthy down payment down and try to minimize our cost of capital all the way around and then have financing for the rest and targeting about 20% to 30% down per GPU cluster and the balance you finance. So this is just an overview for all the analysts and enthusiasts out there if you want the granular details of the three deals we have now. So three deals in Bell AI Fabric data centers in the Winnipeg facility and of course the Merrick facility. Those are going to get delivered and deployed in Q4 this year. The GB200 cluster for code here and the GB300 we just announced. So we talked about that landmark $180 million in contracted revenue. Here's the breakdown again. This is a really handy slide if you want to Pause on this slide for all the analysts and enthusiasts out there shows you that we have the approximately 5500 GPUs online today doing 35 mil ARR and then the two large clusters coming online in Q4 which brings us to 9800 GPUs contracted or active bring us to 180 mil ARR target and again by the way Our year end, we're still targeting 200 million by Q4. We still got some more bullets in the chamber, so to speak. But, you know, for the most part, we've done a tremendous job. It's August and we're already at 180 million of that 200 million target that we had. So very proud of the team. It's been a tremendous quarter and I think it's going to be an amazing year. Let's go to the next slide. We also announced an LOI for our Odin site. This is an HPC COLO lease. This is for 45 million ARR. We announced it in June. 25 megawatts of IT load. So I'm going to pause here and let this sink in. We are at $180 million of active and contracted revenue today with our GPU cloud business. If you add this $45 million ARR-HPC-Colo deal, which we will announce the total deal size, how many years, etc., when we announce it. If we hope to announce before the end of September, then it puts us at $225 million. ARR have contracted HPC revenue with cloud and COLA. And I think that's really exciting because our target was $200 million for the end of the year. So we're blowing past that target ahead of schedule once this deal is announced formally. But I just want to put that into context. So really exciting stuff. Nothing's slowing down. We just announced this We've already got another bullet in the chamber. So really exciting. Let's hop to the next slide because I want to underscore the value proposition. The value proposition. If you look at having a diversified sum of the parts valuation, we've still got the Bitcoin mining thing about 750,000 a day of revenue, 275 million ARR today. We've got the 180 million signed contracted revenue, including 35 million active. And then of course, once we bring online that Bowdoin HPC COLO deal, what you can look at here is if you look at the multiples that our peers are trading at, so on the cloud, looking at the Corweave, Nebius, Irons of the World, it's about a five and a half X based on two year forward revenue. And if you look at the HPC COLO, your Wolfs, your Cyphers, your Hups, it's about almost 11x multiple. So if you apply those multiples and do a sum of the parts, and then you sort of have the nominal valuation based on where our peers are, such as Marin Cleanspark that still have large hash rate online. The composite sum is a $2 billion enterprise value. And again, we're hoping to announce this boat in HPC Coal at least before the end of September. So I think that there's a lot of real exciting near-term value growth. I think with the announcement again of this GD300 deal, you know, we're due to re-rate as we've massively grown our ARR to 180 million contracted number. But this is the case for a $2 billion enterprise value year-term based on where our peers are trading. So, recap, I know it's a lot going on. We huddle every day over nine time zones. We operate in three continents, Europe and North America and South America. and we've got 35 million ARR active today again that really filled in 180 million contracted GPU cloud revenue ARR and then that lease which was announced in June for Poden and again we also announced the Gigafactory Maze that was technically in this Q2 so just give me a quarterly recap it was a very dynamic quarter that's a very excited Here's a bit of a double click on this Bowdoin Data Center LOI. So it's 32 megawatts of utility load, which would be 25 megawatts of IT load. We have a fit test complete. We have a Tier 3 data center build. They actually do some Tier 4 as well. It's very prevalent in the Swedish market. They've been at it for nine months. This isn't something that we just picked up last week, guys. So we just announced the LOI. So that's why it's new news. but this is a legacy site we've been operating here since 2018. This is the GPU super site where Hive was mining with 130,000 GPUs Ethereum in the Ethereum mining heyday almost six percent of the network at its peak and what the catalyst is the catalyst was that we got approval from the road municipality to buy this building because this was A long-term lease with the municipality. They actually own the building. And we just got approval to buy it. And that was the catalyst that suddenly made it an HPC co-location conversion candidate. And so that was the big news in June. And here it is by the numbers, what it works out to. And that co-loan rate, by the way, is about $150 a kilowatt a month. So very strong, very comparable to some primary U.S. markets that we've seen our peers sign data center deals for. for Colo throughout the U.S. So, very exciting now. Once we announce the definitive deal, we'll have the total contract value, we'll have the length of the lease, but right now, on an indicative basis, you know it's 45 million ARR HPC Colo, and it's with an investment-grade Swedish off-taker as well, a telco company. So, we've talked about the Gigafactory, the crown jewel of our Canadian assets. We announced this in May, and of course, this slide was in our Last quarterly update, but here it is again, just as a frame of reference, expect a lot of news as we advance this site. It's very exciting. We expect to energize the site end of 27 and have compute come on early 28. Our dual engine strategy, we are at approximately $850,000 today. and that comes from $750,000 a day of mining. Bitcoin got 24 exahash operational. It's actually 25.3 installed. We just optimized with firmware and down clocks and machines. Again, we are in bear market economics on how you maximize your profit. So that's running off about $275 million ARR. And then on, of course, Buzz with the HPC is about $97,000. If you add that up, it's about $850 grand a day of total revenue. And if you look at our COGS in SG&A, it's the total cash cost to run the company globally. Yeah, I always like to go to page 20 and 21 of the MD&A. It's got a nice chart. It's my favorite page in the MD&A, which is a long day, and it's a great document. For all the analysts and enthusiasts out there, if you add our total operating costs, about $63 million for the quarter, it's worth about 690 grand a day. And as CEO, that's just a good number I like to have at the tip of my fingers because we're doing 850 grand a day in revenue on a cash basis and a global operating cost, everything. Going to conferences, paying for data centers, electricity, you name it, salaries, everything. It's about 690 grand a day. That means we're printing, we're doing about over 150 grand a day of profits. So it just gives you a sense of the health of the business. And I know, again, you have all these non-cash charges and accounting treatments, etc. If I'm an engineer, I just want to know, as a businessman, fundamentally, are we making money on a cash basis? Yes. Great. Let's look forward. So once we get to that 180 million contract and those go live in Q4, once those go live in Q4, it's really easy math, 180 million of GPU cloud business, about 500,000 a day. So what does that mean? Well, I mean, hash price can vary, but let's just assume buying economics are similar in, you know, the next three to four months, which isn't that far away. We're in August right now. That would be 750 grand a day on Bitcoin mining and 500,000 a day on HPC, which includes our GPU cloud revenue. So that's about 40% of global revenue is what the HPC business is going to constitute with Bitcoin being 60%. So again, this quarter, it's 10% AI and 90% Bitcoin mining. Within the next few months, that's going to be 40% on the AI and 60% on Bitcoin mining. So really exciting outlook on the dual engine strategy. Zooming out global power footprint, we have 860 megawatts globally. That includes 440 megawatts active with Tier 1 sites. And of course, the additional 420 megawatts, which is 100 megawatts in Iwazu that we're building out, a substation, of course, the Gigafactory in the Greater Toronto Area. What you can see on this slide to try to make it easy for the viewers is the sites that we highlighted in green are sites that we own the land. These are sites that are candidates for conversion to tier 3. And if you tally that number up, it's about 440 megawatt pipeline between Canada and Sweden for our Conversion to Tier 3, which is very exciting. And by the way, there's on top of that Iwazu as well, so it's very exciting. And I think that if you look at the value proposition and what that looks like on a revenue basis on a junior vision, let's go to the next slide. So on the left, GPU Cloud, on the right, HPC CoLoad. So again, we are at 180 million contracted today. We went over that earlier in the presentation. We still have some room in Quebec. Let's put another 500 B300s in. That'll add 20 mil ARR. So our end-of-year target is actually 200 mil ARR. on the GPU cloud business and we're so close to that given that we're at 180 million contracted now. And then on the right hand side, if you look at the portfolio of sites, the Toronto site or both of our boat and sites, of course, New Brunswick and the Gigafactory on an HBC co-op basis, 325 megawatts of critical IT load. would generate at prevailing lease rates, you know, 150 megawatts, 150 bucks a kilowatt in Bowdoin, 130 in New Brunswick, so on and so forth, a gigafactory is about 160 bucks a kilowatt. If you do the math, what that works out to a competent sum, $500 million of HPC Colo revenue with these sites being developed over the next two years. So on a total basis between AI Cloud and HPC Colo, 700 million ARR, and that's very exciting. Now, by the way, any one of the sites on the right, HPC Colo, you could stand up GPUs as well. We have that optionality. If we did that, those sites on the right would be able to accommodate over 120,000 GPUs. That's very exciting. Of course, Big Bones are even earmarked for HPC Colo, but just to give you a flavor, the other sites in Brunswick, GTA Gigafactory, and the Toronto Airport site, we still have the option now if you want to send it more cloud. But to keep it simple right now, we've done the research, we've had talks with parties that are interested in Colo at any of these sites. That number on prevailing market rates, 500 million target ARR. plus, of course, the 200 for GPU Cloud. 700 million is the number to take away from this slide. That's the vision, plus, of course, the Bitcoin mining revenue. Now, where will Bitcoin mining be over the next two years? Of course, it depends on hash price, but if it's worth that today, that puts us collectively at almost a billion dollars in combined revenue. So, very exciting. As we continue to grow, we want to see the stock re-rate, search for the lowest cost of capital, convertible... Are we seeing high-yield bonds being used to finance the construction of data centers? A lot of our peers have done that. We are exploring that as well. Of course, the convertible bond market, we did two of those deals this year, has worked out very well for us. And of course, leveraging vendor finance for the GPUs as GPUs are emerging as an asset class. So we've got a very methodical and forward-looking strategic cost of capital to plan to realize this growth. Let's go to the next slide.