Hello, and welcome to today's webcast on HIVE Digital Technologies financial results for the quarter ended December 31, 2025. My name is Nathan Fast, Director of Marketing and Branding at HIVE. 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 facts, 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 and Form 8-K furnished to the SEC. 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 show by HIVE. I've got lots to share with you as the Co-Founder and Executive Chairman and give you sort of an overview of what I'm seeing in the geopolitics around the world and some of the glitches that have happened that have really impacted the crypto ecosystem. And I'll give you also somewhat we'd like to call the standard deviations that this is a great buying opportunity based just on the math of markets that when things become overextended on the downside or upside. But before getting into this detail, I want to share with you that volatility is incredible. And it's also predictable when you take a look at it and you update this every quarter. But the S&P daily is 1% of the time. That means 70% of the time, it's a nonevent for the S&P to go up and down 1%. And over 10 days, 3%. Gold is the same as the S&P 500, but Bitcoin is 3x greater. And that's something just to recognize that the stocks that are in technology, a new innovation like Bitcoin, it just will experience greater volatility. Tesla used to have this 21% volatility over 10 days until it became part of the S&P 500. But you can still see that on a daily basis, it's 4x greater than the volatility of the S&P 500 or gold bullion. And we can also see here that over 10 days, it's 11%. 11% is a normal volatility. Strategy, what is interesting for me is because strategy was always higher volatility than HIVE. And now it's a daily basis is plus or minus 5%. But over 10 days, HIVE has a greater volatility, which surprises me because we do not have the same balance sheet. We…

Frank, thank you very much for the insightful macro summary and now for an executive overview of this quarter. Now it was a really exciting quarter for us, and this is a photo from a recent visit to Paraguay. This is Minister of Foreign Affairs for Paraguay, Ruben Ramirez Lezcano, who you may have recognized in the recent Status of Forces Agreement signing between Paraguay and the U.S.A. with, of course, Secretary, Marco Rubio. More on that later. Okay. So it was a record quarter for HIVE, $93 million of total revenue. Of that $32 million of gross operating margin. Now while we did have a $91 million net loss, that was mostly noncash charges, $57 million in depreciation. Of course, we brought on a lot of new hardware online in Paraguay as we scaled the 300 megawatts and also a $31 million noncash charge on change in fair value derivatives, mostly driven by changes in Bitcoin price. So on an adjusted EBITDA basis, $5.7 million and ending the quarter with 481 Bitcoin on the treasury. So again, record revenue for HIVE and really proud of the team. Let's jump into the next slide. On an annualized basis, we realized $385 million ARR for the quarter, 879 Bitcoin mined. We realized 25 exahash of installed capacity, operated at an average of 22.8 exahash for the quarter as we had ramped up towards 25 exahash. And with the colder months, you have some temporary curtailments due to the very cold weather in the Canadian operations. New Brunswick can occasionally and Lachute, but very happy Paraguay was performing with nearly 100% uptime. And of course, being in the Southern Hemisphere, when it's cold and there's cold snaps in the north in the Southern Hemisphere, it's actually summertime. So being geographically diversified has…

Thank you, Aydin, and good morning, everyone, and thank you for joining us today. I will be walking you through the highlights of the quarter. We are providing certain non-GAAP measures in our presentation today. The company believes that these measures, while not a substitute for measures of performance prepared in accordance with U.S. GAAP, do provide investors with an improved ability to evaluate the underlying performance of the company. These measures do not have any standardized meaning prescribed under U.S. GAAP and therefore, may not be comparable to other issuers. Further details are found in the management discussion and analysis for the 3 and 6 months ended December 31, 2025. Starting on the next slide, HIVE ended the December 31, 2025 quarter with 243.1 million shares, 2.6 million options, 13.6 million RSUs and 3 million warrants outstanding. I'll now walk through our financial results for the quarter ended December 31, 2025, beginning with key operational and financial metrics. Q3 represented a quarter where we continued to execute operationally while navigating market volatility in digital assets. Our focus remains consistent, disciplined capital allocation, operational efficiency and cash-oriented returns on invested capital. Let's start with the headline financial outcomes on the next page. For Q3, we generated $93.1 million in revenue with approximately 95% coming from hashrate services on our Bitcoin side and nearly $5 million contributed by HPC operations, demonstrating the scale we've achieved as we continue ramping toward higher hashrate and HPC expansion. Adjusted EBITDA remained positive at roughly $6 million, reinforcing that our operating model generates cash despite cyclical pricing conditions. Operational output remains strong with approximately 884 Bitcoin equivalent produced, which is up from 719 in the prior quarter, supported by stable operations, strong uptime across our sites and the execution of our Paraguayan expansion. At quarter…

Thank you, Darcy. That concludes the presentation for today. We will now begin the question-and-answer portion of our call. Analysts on the line, if you could please click raise hand when you are ready with your questions. We will begin to choose and ask you to unmute. Our first question comes from the line of Darren from ROTH. Darren, if you kindly unmute, the floor is yours.

Can you hear me?

We can hear you.

Congrats on all the progress. Two questions, if I may. Just as you kind of push forward on your HPC strategy, can you kind of maybe benchmark how you're thinking about the thought process of returns with AI cloud versus colocation? And maybe what specific metrics, whether it's payback period, return on invested capital, et cetera, that you're kind of making those decisions off of? And then second question, you mentioned in the, I think, release about New Brunswick, and you kind of mentioned specifically Tier 3 hyperscaler. Is that put in there to sort of benchmark the level you want to build to? Or do you actually have interest from hyperscalers? And I'd be kind of curious about the level of interest there.

Yes. Thanks for those questions, Darren. This is Aydin here. The ROIs typically on the GPUs are approximately 2.5 years after direct operating costs, and we have a lot of experience operating GPUs going back to Ethereum mining days, moreover, having had AI cloud revenue on our income statement for the past 3 years. We had 38,000 NVIDIA A series GPUs, A40s, A6000s, A5000s, A4000s. So we're still running 4,000 of those cards and 34,000 of those cards, we were able to sell at 80% to 90% of face value, and that's what -- those proceeds went to upgrading and buying H100s and H200s. The point is we don't just talk about it, we've done it. And so we've seen the demand ebb and flow in GPUs, but they have strong residual market value. And so where you're able to ROI in, call it, 2.5 years, but have these cards potentially be worth 60%, 70%, 80% of their value after 3 or 4 years, we've seen a huge uptick in demand for H100s as you've likely heard. And so the demand comes in 2 ways. One is the hourly rate that the GPUs rent for goes up. But in turn, the market price for people purchasing the GPUs goes up because people realize you can get more cash flow from them. So it's an attractive business, I believe, because if you have the proficiency to do so, if you have the cloud technology platform, which we have and we've demonstrated, and there'll be a lot more updates and exciting news to come as we bring more GPUs online and march towards that 11,000 GPU cloud target, and that crest over that $200 million ARR target in the slides, we believe that it's an accretive business because the residual value --…

It does.

Next we'll go to the line of Fedor from B. Riley.

I wanted to just like ask about current breakeven price for Bitcoin mining operations, assuming all-in cost to mine, not only power. And additionally, I'd like to understand how Bitcoin at current levels influences your capital allocation decisions for AI and HPC infrastructure. And if you could outline your expected CapEx spending over the next 1 or 2 quarters with any detail on the split between mining and AI HPC investments that also would be super helpful.

Yes, definitely, Fedor. So I think it's quite evident that 2025 is a year of scaling our Bitcoin mining business, having brought on the 300 megawatts in Paraguay, scaling to 25 exahash. So that reflects a lot of capital deployment in that business unit. And what you'll note from our investor presentation that we just debuted and of course, last quarter, this year, 2026, our focus is on scaling the HPC revenue from $20 million ARR to $225 million ARR, so over 10x. And how do we accomplish that? Expanding the cloud from 5,000 GPUs to 11,000 GPUs, which in my section was detailed growing that revenue from $20 million to $140 million ARR. And then, of course, bringing on the conversion of New Brunswick to Tier 3 HPC for hyperscaler colocation, which at $130 a kilowatt on 53 megawatts of IT load gets you to about $80 million of ARR. So directionally, you can see where the capital deployment is being scaled. I do want to take a moment to acknowledge though that with OEM vendor financing on our GPUs, we're able to get lease to own, so effectively equal lease payments over 36 months with a $1 buyout, so effectively a finance with single-digit interest rates, which is very, very attractive. Nothing funky like some of our peers have done with pref shares and warrants and all this convoluted mezz financing, just very attractive. And so we've been able to scale that GPU cloud business, of course, in the partnership with Bell AI Fabric Canada, that data center capacity, we're building the cloud on co-located premises with Bell. So again, that allows us to operate a CapEx-light high-margin GPU cloud business. And so we do have the 100 megawatts in Paraguay that we announced, and we announced that…

It does. And just if you allow me to squeeze one related follow-up on Brunswick HPC facility. Specifically, I would like to understand, you already outlined the total CapEx for this project roughly in previous broadcast. But if you can outline current construction status and milestones completed to date for HPC-related portion of the facility? And what's remaining milestones and maybe CapEx for this or next quarter? Just to understand the CapEx spending.

Not sure if we lost Aydin. Fedor, we will follow up you after this.

Yes, no, I'm here. So sorry, the question was -- I don't know, I was put on you for some reason. The question was what are the milestones for the New Brunswick Tier 3 conversion?

Yes, yes. I just can quickly repeat, pardon me. It's just like for -- specifically for HPC portion of this data center, what's already completed to date? And what's the near-term plan with associated CapEx for next 2 quarters, let's say, this way.

Yes. So what we've put out is we've worked -- we've bought the additional land. We're going through the design development. So we have design and permitting underway for that site. The next step would be ordering long lead items. But beyond that, I don't want to provide any more specificity at this time. We'll provide the market with announcements as those milestones are realized. So that's what I got to you right now, Fedor. Good question. I know you want to know more, but you got to hang tight, buddy.

We've got time for 2 final questions. Mike from Northland. I know you've had your hand raised for quite some time. If you kindly mute. The floor is yours.

First question is just for Aydin. If your OEM financing is for 3 years, can you talk a little bit about why you're signing 2-year deals that mismatch? And then secondly, for Darcy, could you help us think about depreciation expense in the next couple of quarters?

Because when you have a longer term, your payments are less. So you cash flow better, Mike. And so we know that these GPUs have great residual value in the market. So at the end of the 2-year term, we may elect to sell them for a gain. We could simply re-rent them out. There's lots of optionality. That's all. But it's mostly -- you just want to structure payment, so you cash flow nicely.

Got it. And then on the depreciation, maybe.

Yes. On the depreciation side, I think you can take a look at what we've got in for the Q3 right now for the 9 months. As we've noted, there was some catch-up depreciation in there -- so if you sort of take the incremental amount that you've got from sort of Q1 to Q3, you can probably take that as running forward. Through Q3, we had all of our ASIC equipment up and running within Paraguay. So that's the best driver moving forward.

Excellent. Thanks, Mike. Gareth Gacetta from Cantor close us out with your final question.

I just wanted to dig in on any potential CapEx requirements for the remaining GPUs you have at Manitoba. So I know you said about 500 have been or will be deployed in 1Q. So I wanted to figure out kind of have the remaining 1,500 GPUs been purchased? And if not, how are you thinking about the funding for those? And lastly, is there any CapEx on the data center side of things at Manitoba?

So the 504, the purchases those were announced in November and the leasing or contract -- contracted term of those GPUs was really announced last week. And so those GPUs should be -- they're being delivered to the facility now and they're expected to go live. So really, the focus is to let the Street know that, that first cluster, 63-node cluster is being commissioned with InfiniBand and all the bells and whistles is going to be live with the client. This quarter ends March 31. So very soon. We've got 6 weeks left in this quarter. And so I would say, stand by for updates on that. And so once that first cluster is deployed, Gareth, then we intend to reload very quickly. And this model is shaping up to prove to be very successful. And so our intent is to reload and repeat as we rent a cluster, get -- order another one, finance it in a similar way, and get it delivered, rent it out, rinse and repeat. I hope that's helpful. What was the second half of your question?

Just if there's any potential CapEx needed on the data center side of things at Manitoba.

No, no. I mean there was some deposits upfront, but that was all taken care of.

Excellent. Thank you. That concludes our Q&A session and our Q3 2026 earnings call. Thank you for joining. We look forward to sharing more exciting announcements very soon and speaking to you again soon. Thank you.