Hello, everyone. Welcome to today's webcast on HIVE Digital Technologies Financial Results for the Quarter Ended December 31, 2024. My name is Nathan Fast, I'm the Director of Marketing and Branding at HIVE, and I'll be your moderator for today's call. Before we get started on Slide 2, I would like to briefly note the disclosures for today's presentation. Except for statements of historical fact, this presentation contains forward-looking information within the meaning of the applicable Canadian and U.S. Securities Regulations. These forward-looking statements are based on expectations, estimates, and assumptions as of the date of this presentation. Further, in addition to discussing results that are calculated in accordance with International Financial Reporting Standards or IFRS, we will also make references to certain non-IFRS financial measures, such as adjusted EBITDA. For more detailed information on our non-IFRS financial measures, please refer to our Management's Discussion and Analysis of our financial results that was published earlier today, which can also be found on our Investor Relations website. 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 would now like to hand the presentation over to Mr. Frank Holmes for a macro recap of the quarter. Frank?

Thank you, Nathan, and welcome to the team. So I'm going to try to go through before we get into the granularity, the nitty gritty of the financials and some of the other hashrate and factors that we look at, I want to give a bigger picture of what's driving this industry and some really significant events that have taken place in the past three months. But before we do that, I always like to talk about the DNA of volatility. And life is all about managing expectations. And understanding this visual is basically saying the one standard deviation or one sigma means that something event happens almost 70% of the time. So it means that it's a non-event for the S&P 500 to go up or down 1% in a day and over 10 days it's 2%. And when we take a look at Bitcoin, its normal DNA of volatility 70% of the time is up or down 3%, but over 10 days it's 8%. And then we could take a look at new stocks that are really trailblazers and their DNA volatility starts to really expand. So, when we look at the AI and the GPU chip build out with Nvidia, you can see the one day DNA is the same as Bitcoin but over 10 days it's plus or minus 10%. So a lot of external factors are whipping around the volatility of this particular stock. And Tesla is even more volatile with a daily volatility of 4% and over 10 days 13%. And HIVE Digital is plus or minus 6% in a day and over 10 day period it's 17%. And the ultimate of speculative volatility is micro strategy. Since they've continued to leverage their balance sheet and buy more and more Bitcoin, their daily volatility…

All right, Frank, thanks for that introduction. That was a phenomenal macro overview of the industry. So now we're going to have a closer look at the executive summary highlights for HIVE this quarter. Let's kick it off. It was a great quarter for us. So $29 million of revenue with a $6.1 million gross operating margin works out to 21% operating margin for the company this quarter. In addition to that, $17.3 million of adjusted EBITDA. And furthermore 2,805 Bitcoin on the balance sheet mined with green and clean energy, unencumbered, no debt on those Bitcoin. Another metric I'm very proud of when we started tracking this is we hit an annualized ROIC of 37% this quarter, which I think is phenomenal and in fact leads a whole industry. We're going to look at some comp charts later to see how we stack up against our peers. And by the way, right now HIVE is the best bang for your buck. Full stop. For every HIVE share that you purchase, you're getting 78% Bitcoin per share. 78% Bitcoin per share. And later in the presentation, we actually have a comp table that VanEck did cracking this and we led the whole sector. So I think all the smart money now is going to HIVE, because they clearly see we provide the best value proposition in terms of exposure to Bitcoin for every share that you buy. Biggest growth in the sector right now with 4x and best ROIC. But more on that in the following slide. Let's jump into the next one. So how do we do this? It's our differentiated growth strategy. We prioritize ROIC when we deploy our capital. And by the way, even in January, our HODL was 2,657 we deployed some capital to acquire the…

Thank you, Aydin. At this point of the presentation I will take taking you through a snapshot of the period, looking at the most recent completed quarter and some financial indicators. We are providing certain non IFRS measures in our presentation today. The company believes that these measures, while not a substitute for measures of performance prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the company. These measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to other issuers. Further details are found in the management discussion and analysis for the three and nine months ended December 31, 2024. As you can see on this slide, HIVE ended December 31, 2024 quarter with 140.2 million common shares, 3.3 million options, 6.2 million RSUs and 3.2 million warrants outstanding. Onto the next slide. During this most recently completed quarter of December 31st we recorded $29.2 million of revenue and a $17.3 million profit measured in adjusted EBITDA. This was driven by the production of 322 bitcoin equivalent being produced. Onto the next slide. We always, and have since day one, taken pride in maintaining a healthy balance sheet, our cash position was $9.8 million as of December 31, 2024, in addition to $260.8 million in digital currencies, a healthy increase from the prior quarter, driven by higher HODL balances and higher bitcoin prices. And as we know, our HODL is consistent of Bitcoin. We also had $8.9 million in amounts receivable and prepaids. This is an increase from the prior period. The total market value of our strategic investments increased by 26% from the prior quarter to $30.7 million. We have a strong net cash position and healthy working capital to support our operations and growth…

[Technical Difficulty] I'm not sure if I've been unmuted for the question, but it seems like I have been with respect to the Paraguay expansion strategy. Curious if you guys could share some details in terms of whether you see further opportunity expand in the region now that you've established a foothold in the market with the 300 megawatts expected to come online in roughly eight months. Thank you.

Sorry, Bill, I don't know if -- I can't hear anything on my end. Can you repeat the question? I apologize.

Yes, no worries. Good morning, everyone, and thanks for having me here. So my first question was with respect to the Paraguay strategy. I'm just curious to hear the team's thoughts on further opportunity expand in the region, now that a 300 megawatt foothold will be established in roughly eight months. Just curious to hear on general thoughts on Paraguay. Thank you.

Yes. No, thanks for the question, Bill, and I apologize for the silence. I wasn't sure if it was just on my end. I think with the team that we've had gone down there, Frank has been down there, Aydin has been down there. Luke, our Chief Operating Officer. It's opening up some other opportunities. People are -- we're seeing more of the region. We're having conversations with existing -- the existing miners down there. So I think that there's a potentially a lot of opportunities in Latin America to do some additional bitcoin mining. But right now, because this is -- as everybody on the call knows, this is the biggest transformational announcement that HIVE has made since its inception back in 2017. We're laser focused to get these done. I don't think that we want to overburden ourselves with going after another 300 megawatts or whatever. As the conservative CFO, I think the team wants to make sure that we get this done, get it done properly, get it up, up, up and running. And with the Bitfarms one, because it was already -- once we close, be able to get this one up and running, the timeline is a lot tighter. We're going to learn a lot. It's like any country, you can have all of your plans, the operations team, finance team, everybody. But until you energize that, that's when the excitement really starts. So we are continuing to take a look. We are always, whether it's in Latin America or other places, taking incoming opportunity questions. So we're continuing to look and haven't closed our eyes to anything. And with the access to the green energy from these large dams that have stranded power, I think that there's going to continue to be opportunities, whether we take them or not, that will continuously be part of our corporate development strategy. Taking a look at it, seeing if it makes sense. But the big thing we're looking at through calendar 2025 is getting these operations up and running so that we can put bitcoin on our balance sheet.

Awesome. Thank you for the color there. And then if I may ask a second one, how should we think about the ramp in SG&A expense going forward and the impact of operating leverages as the business scales here?

Yes, I think the SG&A is going to continue to be very lean. It's not going to be linear from a standpoint of us having 6 exahash now and then getting a 4 times to 25 exahash that our SG&A is going to increase by 4 times. There's going to be economies of scale. And the great thing that I've in my head, Bill, it's not the operations side, but I would much rather have one 200 megawatt facility like we're looking at in Paraguay with the LOI with Bitfarms, then have 10 20 megawatt ones. You can keep your overhead a lot lower. You can get a lot more economies of scale. As we've talked about before, we are going to be adding some people on the strategy side for the accounting and auditing and we'll obviously have to add some people down in Paraguay to run the operations. But it's not going to be a four times. We're going to continue to keep it lean. And this is where -- you can maintain a very low SG&A while your revenues go four times.

Really appreciate the color. Congrats again on the quarter.

Great, thanks Bill. I appreciate you calling in.

Bill, thank you for the question. For our next question, we'll go to the line of Darren from ROTH. Please unmute.

Hey guys, can you hear me?

Yes, Darren.

Great, good morning. Thanks for my questions. Congrats on the progress. So I guess my first question, appreciating all this stuff sort of occurs linearly. Can you just walk through what logistically needs to occur in order to: one, close the Paraguay site from Bitfarms. And then two, With respect to the aggregate 300 megawatt project kind of where of the biggest obstacles between once you close the Bitfarms transaction and getting up to 35 exahash by the third quarter target?

I think the target is 25, but I don't know where the extra 25 will get to 35. I think it's well on its way. We're having numerous calls with Bitfarms every week. We've got a very good relationship, a very good open communication with them because, both ourselves and Bitfarms want to make this transaction successful to be able to close on time. So they've been incredibly accommodating, sharing information with us on what's happened. We are working with people that have already built and are continuing to build down there. So the synergies that we've been able to have been very beneficial. I don't see any big rocks or stumbling blocks that we need to get over. It's just continuing that communication with Bitfarms to be able to get to the energization. We already had a good relationship with the energy provider and they down there when we hooked up our and had the relationship for the 100 megawatts. So it's more just working with the existing team that's there, continuing to check things off the box from both a due diligence point of view and making sure that we've got operational people that are ready to run the facility. From what I understand, our imports that we have to come in for the remaining equipment to get that facility up and running is all working well. We are looking at the purchases of ASIC equipment that we already made for our existing facility and taking a look at both our 200 megawatts with Bitfarms and our 100 megawatt that we had announced for our own, what's the most strategic and best utilization of that equipment to get energization as quickly as possible across the two facilities in Paraguay.

Great. Appreciate that detailed response. If I could sneak one more in, just maybe for Aydin. On the AI cloud business, since the DeepSeek stuff kind of came out, I mean, have you seen any changes in the demand environment, good, bad, and different? Just kind of curious on your thoughts there. Thanks.

I think Aydin might be having some audio problems, unless he's talking and I can't hear him.

All right, We'll go ahead to our next question. Apologies for the audio difficulties. Brett from Cantor. If you would please unmute yourself and proceed with your question. All right. We will move to Nick from B Riley. Nick, please unmute yourself and proceed with your question.

Hey, Nathan, thanks a lot. My first question, guys, congrats on the progress so far, first of all, but Frank, you talked about the change in administration giving you the comfort to move the head office to San Antonio. Obviously, you have an impressive growth pathway in Paraguay, but has the change in administration impacted your desire to own operating assets in the US?

I don't think Frank was able to make it on the call this morning, but it definitely has changed HIVEs viewpoint on the United States prior to the current administration came in, as everyone is aware, it was challenging to not know what was around the corner with any regulation in the United States. You had [Gensler] (ph) going after everybody that either had blockchain, crypto, or anything in their name. They made it extremely difficult through choke point 2.0 to get anything done. Having the new administration have -- it's very clear that the new administration loves crypto. They're putting out their own -- trying to put out their own ETFs. They've brought in a SEC chair that's a lot more friendly to the blockchain and cryptocurrency environment. They actually have a crypto czar. So any kind of additional spotlight that can be put on the sector. A lot more adoption will be happening in the United States. And I think it becomes a lot more mainstream. So when you've got states taking a look at how they're going to handle crypto, having the national environment a little bit more friendly can only benefit what can be useful for Bitcoin miners. Over the last seven years that I've been with the company, HIVE has taken a look at different things in the United States. We've moved into -- we are the first ones to be dual listed. There was always an underlying, I'll say for myself, discomfort because you didn't know where the lines were drawn operating in the United States. I think over the next four years, there's a great opportunity for the United States to get regulation in, make it a lot more mainstream. So no matter who is in power four years from now, we'll have the guardrails to make this industry incredibly special and incredibly booming past Trump's presidency. And from a CFO point of view, I welcome regulation. Sometimes you don't like it, but at least you know where the guardrails are and where you can go and where you can't go. In prior administration, you didn't know where those guardrails were because they would just come in and make up the rules as they came along, whether they were lawful or not.

Thanks for those comments. My second question, if I may, was, correct me if I'm wrong, but I think you alluded to the potential for some site conversion in the existing portfolio more geared towards the HPC side. So just was hoping to get any additional color on what kind of work has been done for potential co-location opportunities or have you come up with any capex per megawatt estimates, any additional color you might add? Thanks a lot.

Yes, on that Nick, in terms of the actual numbers, I'd have to defer to the operations team, but I know that we have been looking at our flagship facility up in Bowden, Sweden. There is a small, actually beside our flagship facility, we've been doing analysis. We brought in a consultant to take a look at what it would cost to repurpose that from basic mining, doing cryptocurrency to doing the HPC. And we've also taken a look at that in our New Brunswick facility to be able to look at the energy that is available to the company and make the best use of it. We could just say, you know, keep it completely separate and say, okay, we're only going to work with outside parties for our Tier 3. But using our existing facilities and saying what's the best purpose of that electricity that we have and is that better used to do high performance computing or for Bitcoin mining. The one thing that we need to take into account is, if we're doing HPC, it has to be up 100% of the time. So we have to -- in addition to the OpEx that would take to get it to a Tier 3 level, including the redundancy of power, redundancy of the fiber optics, all that. We've got to make sure that it's an environment where we can have useful, low-cost energy, but it's stable energy. We can't have it in a location where we're going to be curtailed because we just can't afford to have the power going down. You got to make sure that you've got it 99.97% or whatever the amount is to making it keep up there. But we have had engineers come in, do some analysis and provided us with some estimates in terms of what that would take. So we'd love to be able to do those in our own facilities and then you know outside of our own facilities we're continuing to look for sourcing locations to do our own HPC, owning the property, owning our own facility so that we don't have to rely on any landlords.

Thanks again, Darcy, and keep up the good work.

Thanks, Nick.

Thank you for that question. In the interest of time, we will accept one more question from the line of Joe from Canaccord. Please go ahead and unmute yourself, Joe.

Hey, Darcy. And I'm not sure if Aydin and Frank are still on, but nice to see. Yes, nice to see you all.

I hear a technical question coming, so I'm glad Aydin is here.

I may not go into a technical question, but nice to see all the progress and the expected ramp here on exahash. Maybe I'll just throw one question in. As the business is about to get a lot larger and looks like it's going to be throwing off more profit. Just wondering how you consider maybe the use of debt moving forward as a funding mechanism to grow the business relative to, for example, using the ATM and more -- it's working, but if you were to employ some debt, maybe you could grow a little more accretively and with a bigger P&L, you'd be able to service some debt. So just wondering what the most updated thoughts are on using a little bit more of the cap structure of the balance sheet here. Thanks a lot.

We saw a lot of convertible debt deals done in the last quarter of 2024. And we've spoken to different institutions on those lines. But what we noticed was a lot of those debt deals had use of proceeds that were diminished from the total amount borrowed. So for example, we see convert deals done for $500 million, $600 million, but cap calls and share buybacks were also included in that structure. And as you know, these are detailed and have these press releases. And so $600 million deal might only have $350 million to $400 million of proceeds to say buy Bitcoin if that's what the debt was for. And so down the road at the end of the term, you're still going to have to repay the $600 million. So it seemed to be trendy or popular because there was a lot of liquidity that was opening, like doing those securitized debt deals was opening up. But what if things don't pan out? Like a lot of these debt deals were done to buy Bitcoin. And so, what if that doesn't pan out perfectly? What if Bitcoin doesn't go to 200 grand? So right now, we've got a strong balance sheet and we've got, I think, little under $100 million left on the ATM, $100 million beyond that on the base shelf and as well, we've got roughly $250 million -- over $250 million Bitcoin on the balance sheet. We always look at the cheapest cost of capital and if there is a good debt deal, which by the way, in the HPC world, it is a different ecosystem. It's different than financing Bitcoin expansions or operations. So there are potential opportunities there. There are more conventional sort of debt financing options. But yes, we always look for the lowest cost of capital.

Great. Thanks very much, Aydin. Congrats on all the progress.

Thank you, Joe. Thank you to all of our analysts, all of our attendees. That concludes our Q&A session and our Q3, 2025 earnings call. Thank you very much for joining. We look forward to speaking to you again soon.