Hello and welcome to Hive Digital Technologies earnings webcast for the second quarter of fiscal 2027. I'm Nathan Fast, Director of Marketing and Branding at Hive, and I'll be moderating today's call. Before we begin, please turn to slide two for our disclosures. Today's presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, forward-looking information under applicable Canadian securities laws. Any statement that is not a statement of historical fact is forward-looking. Words such as expects, believes, anticipates, and similar expressions identify these statements. These statements speak only as of today's date. Actual results may differ materially and we undertake no obligation to update them except as required by law. For a full discussion of risk factors, please refer to our most recent filings at sec.gov and on CDAR+. We will also reference certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income, and free cash flow. Management uses these measures to evaluate operating performance and believes they give investors additional insight. They are supplemental only. They should not be considered in isolation from or as a substitute for GAAP results. Reconciliations to the most directly comparable GAAP measures are included in the appendix to this presentation. and in our earnings press release, Furnished to the SEC on Form 8K. On the next slide, my pleasure to introduce today's presenters, Frank Holmes, Executive Chairman, Aydin Kilic, President and CEO, and Darcy Daubaras, Chief Financial Officer. With that, I'll turn the call over to Frank for a map recap of the quarter.

Thank you, Nathan. As usual, I try to give my Chief Investment Officer as Executive Chairman of Hive a macro recap and interject some of my macro commentaries as a money manager in what I'm seeing for the company and how it fits into the global scene. So before we do this, I would like to talk about V&A volatility. And it's so important for investors to recognize that different factors and over time changes with the volatility, but the S&P daily volatility is plus or minus 1%, and the 10-day is 2%. And it's interesting because gold used to be Thank you for joining us. Three and a half times what the daily volatility is for the S&P. Strategy, Michael Saylor's incredible company, it even has a greater volatility. And CoreWeave, because of its extremely leveraged balance sheet, it seems to get more volatility as the poster child AI business to use to say it's got all kinds of financial problems. but at this stage I think so much is greatly exaggerated but it still is pretty strong the negative narrative on both tier one to tier three data centers and I'll give you more commentary on that but Hive itself its volatility has expanded along with you can see with CoreWeave and the 10-day is gets exasperated even more so because of Bitcoin and the movements in Bitcoin But I will walk you through some of the numbers so you can get better understanding about the great value proposition. Next, please. But before we get into that, I want to thank the investors. I want to thank for being loyal with this volatility with Invesco, Citadel Advisors, Luminium Management, Situational Awareness, and Biden Advisory for believing in our vision and recognizing the great value we provide to this industry. The team most important is the quality and the depth and breadth of the team. As you can see, Aydin Kilic and Craig Tavares. Aydin is the CEO for Hive and Craig is the President and Chief Operating Officer of Buzz, which is our HBC AI factory strategy, in particular sovereign data centers. And Craig is doing a phenomenal job in Canada and also going back and forth to visit a team now of Johanna Thornblad in Sweden to expand that footprint and Darcy Tavares is the longest standing CFO. Gabriel Lamas is our President Electrical Engineer that's in Paraguay and Gabriel Ibghy as you can see here is General Counsel and he goes between Germany and Canada. So we do function over many time zones and provide interesting The world's first publicly listed digital asset miner on the TSE 2017. And you can see last year with the big growth was our ExaHash and Bitcoin. We're so happy we put that on the balance sheet and the income statement because it's given us economies of scale as Bitcoin went through a big correction this year. And I'll give you more color in a minute. It's important to recognize that Hive functions over nine time zones, five languages, three continents. As you can see from Sweden to Vancouver to Montreal and Bermuda is in there and right in the middle and Texas, the head office is here where I am. We continue to be very efficient and it's minors for tier one data centers or bare metal AI business model. So Hive is turning hydroelectric power into computing power. And we've been doing this when we started in Iceland and Sweden. The dam, the hydro dam is very close to our facility in Sweden and the same thing in Canada and in Paraguay. This photograph is an incredible, the largest dam in the Western Hemisphere. It is like five kilometers in length. Thank you. What's really important intellectually to grasp, because we find the frustration with regulatory and banks in Sweden or Canada, that we transform electrons from hydroelectricity and so on, the value chain, what they like to call it, and we export compute power. We don't export beef or food or iron ore, we export compute power, and this is very significant because you can't export hydroelectricity 5,000 miles, but you can transform it and export So we export this compute power to Bermuda, which then goes to New York State for Bitcoin mining tier one data centers, where Bitcoin were paid in Bitcoin. And for bare metals, we get paid in U.S. dollars. So that is why, a big reason why we're in Bermuda. And when the company first started, we started in Switzerland. Why Switzerland in 2017? Because it had the most advanced regulatory model and structure. And we and me as being co-founder and putting up capital and reputation, I wanted to make sure we're in the most regulated world who had some Guardrails up early and Switzerland was much further ahead than other jurisdictions. And then in 2018, Bermuda came out with regulatory arms and basically a whole digital crypto set of rules and from an accounting point of view, it made it much easier to go from Switzerland into Bermuda to be the comptroller not in Zug, Switzerland and that's where we've been for many years now. and so it's a very important global design to be tax effective for investors and also for ourselves and we end up paying a lot of taxes. We have paid a lot of taxes in Sweden, a lot in Paraguay and a lot in Canada. What it does do is it allows us to be in a regulated world and now the US is set up with a regulatory regime for the crypto industry and I think that the Genius Act is a very important stepstone for America now. So Hive uses only green energy, a low electricity cost, low temperature, except for when we go to Paraguay, it's much hotter, so we have a different type of chip in our Tier 1 data center there. Hive stock rises above the 50-day, falls below it, and now it's below it, and a lot has to do with the summer with the Japanese yen It was going through, we saw earlier this year in June, going into June, what they call the carry trade, and it first impacted Korean semiconductor massive sell-off that impacted U.S. stocks and impacted Hive. And you can see these external events, such as Bitcoin pricing or the unwinding of Japan, has had this incredible multiplying effect and amplification of volatility. But all through all this noise, we just continue to plod along and make sure that we're doing the most effective mining or bare metal expansion program. So what's important for investors is that the Central Bank of Paraguay now recognizes Bitcoin as an export. As I mentioned at the beginning, they export a lot of food for the world, and now we're showing up as exporting compute power is very important for the country. And we're talking about more than a couple hundred million dollars of value that goes through the Central Bank now. So you can see on the map this visual, this helps you to, I mentioned earlier the map was showing you how the compute power goes from Sweden and from Paraguay and from Canada to Bermuda. All of this is really I think we're going to see going forward where more central banks are going to start adding that as an important component of GDP. So, Ohio was the first to build Tier 1 data centers in Paraguay, and there's a long-term Tier 3 AI factories. And the rally, this rally is a massive event. It's like Formula 1 in Texas and Mexico and Miami and Las Vegas and all over Europe. In Paraguay, it's just car racing, and it's a big event. But us being the first is to build these unique data center construction. So Harvard's led the way. Now Stargate is heading to Paraguay. We're in that coaster that is opening. Caruso is partnered with locals to do 100 megawatt going up to higher for a long-term energy contract. and Hive has also been going through the formula process for our data center for HPC for the 100 megawatts. But we've been going through this sort of drama that's happened just recently in Paraguay, which everyone knows, regarding conflicts of interest, betrayal by the president of a country who's now in jail. But the country shows that it has great, what's important for investors, Thank you very much. and so on and so forth. and then Binance again. Last year they blame it on Algo. This year, interesting enough, just before the American elections, Binance gets hacked and Bitcoin falls 10% immediately. The real concern is that it's not Bitcoin. Bitcoin as a self has not been hacked. It's the on-ramp and off-ramps. And as more policies come Embraced in America and other jurisdictions around the world that I think things like this hacking into Binance by supposedly one of their engineers left his computer open. But it doesn't really matter. There's just bad actors no matter where you go in any industry and it's how quickly can you cut those losses, correct the problem, learn from the lesson and push forward in life. So recently we all went to the island, that is Aydin and Craig and myself went to Los Angeles. to the All In Summit and I think it's the number one podcast in the world. It comes out on Fridays and it's a great analysis of technology and it gives you lots of different opinions and so if you're not listening to it, I highly recommend it and they bring on usually CEOs of companies and they have different perspectives of what happened in the sweep just recently in this election cycle in America, and what does it mean to AI and data centers. But the blue midterm sweep puts sovereign data centers like Buzz in focus. I think this is extremely valuable because there's something that's happened in America with lots of thought and deep concern that the blue swing across America and one of the big concerns besides The Iran War lasting too long and Americans being really ticked off about it because every week they're spending $100 to $200 more at the gas pump because of this war in Iran. And that was a big swing, especially by the libertarian votes and people that sort of There are swing voters between the Democrats and Republicans. They all swung from being Republican, that swing vote, in the Democratic Party. And with that, there are some higher percentages in states like Texas, which is 28% of all the data centers being built and has the biggest infrastructure, electricity. that there is a concern in this state. And I think that it lends itself that if anything, it's just going to delay data centers. This makes China very, very happy in the AI boom. And I don't think it stops it, but it will delay the process of building out. But what this allows is countries like Canada and Paraguay and Sweden is to be able, as they say in Canada and Sweden, skate faster. They have an AI minister. They have policies in place for AI and for data centers. So this, I think, is really a great way of looking at Hive as the strongest position in these other jurisdictions with sovereign data centers. So Hive's BuzzHPC partners with Prologgia to deliver end-to-end sovereign AI across Canada, U.S. and Europe. Next please. And we know that recently that Kenney Business Development and Sweden have had meetings and our country president, Johanna Thornblad, has been back and forth in visiting Sweden where they're truly working together for cross border. This is very different with Trump and his Fight with Tariffs is basically seeing a realignment of interest between Europe and Canada and sovereign data centers. So, I think this is a really interesting time for the value of these assets we have. But what's really important is the sheer size of Buzz Gigafactory, 320 megawatts of electricity, sponsorship and support by the federal government and the provincial government, and it's going through its normal We've been successfully doing from Canada From Sweden and from Paraguay and at one time when we started in Iceland. This is a rendering of what the potential is for a 320 megawatt GTA Gigafactory smack in the middle between University of Toronto and and Canada's what they like to call Waterloo University, which is Canada's MIT. So, we have the intellectual capital in the largest city in the country, but it's also a city that's been well known if you look at history for R&D and for innovation. and I often think it's because of the long cold winters. It gets dark at 4 o'clock and the sun doesn't come up the line the next morning, so people are really quite advanced at doing research in the winter. And so this is a rendering which we feel is a huge expansion opportunity over the next 12 months. Hive and BuzzHPC's partnerships with NVIDIA, with Summer Fraser University, as you can see here, with Dell Canada, NVIDIA, Tegel in Paraguay. So we do have top of the food chain, Intellectual and Vector Institute, where Nobel Prize winners come out of. We are connected at the very top end of the intellectual food chain and business development in the ecosystem of AI, Tier 3 data centers. Expanding our industry reach. Well, we've been very, very busy this quarter. Conferences attended, 16 of them. Just had an incredible event in Berlin with NVIDIA and diplomats and head of the whole AI buildup and data centers attended our event. and that was just a super charged with this I think just great great people and then interviews doing two to the day it appears sometimes we do three in a day so building lasting relationships in the quarter we can see here that the president of Taiwan met with the president of Paraguay Gabriel Lamas in Taipei and then Evan Solomon is the Minister of Artificial Intelligence and Digital Innovation under Prime Minister Carney. And there's myself with Michael Dell. This is the second meeting we've had on brainstorming of how we build our companies. And it's just an honor for me to be with Michael Dell that has given just billions of dollars for American kids for education. The thoughtfulness and the stewardship of he and his wife are over the top. So I just applaud for his leadership. And then I really think you've got to think of Prime Minister Carney has reversed a lot of Justin Trudeau's policies, which were really anti-growth, anti-capital investing policies. A lot of global macroeconomists look at GDP per capita and they look at GDP, what percentage of money of the economy went into infrastructure and innovation and R&D. And under Justin Trudeau, it fell way, way behind and that impacted the relative GDP per capita of the US to Canada, which were always in the same trending line. It also impacted Europe. What's really important for investors is that Prime Minister Carney has shown tremendous leadership of reversing a lot of these at the same political party, recognizing with this experience from Goldman Sachs partner to the head of Bank of Canada and head of Bank of England and chairman of Brookfield, what creates wealth. And it's about capital investing long term that unlocks jobs, sustainability and growth. So building industry partnerships, as you can see, many pictures of the team traveling the world. So land and power, that's building the pipeline. 320 megawatts gigafactory in the Toronto region, 32 megawatts in Bowdoin, 100 megawatts in Paraguay, and Picos County working on 500 megawatts. Next, please. So I like to try to relate to some other things as a macro investors for investors to understand that there's some macro events taking place and they're still not over under the Trump era and that is the Monroe Doctrine of looking at the Western Hemisphere and there's many reasons for opening up and you've seen a huge swing in South America going to the middle Thank you very much. So the idea of not being pulled into wars in Europe or into Asia of really north-south traffic, and I know from other products I have, the north-southbound traffic for the airlines industry, known as digital nomads, is huge. It's absolutely huge in the winter season of people flying from Canada and the U.S. that fly south to Mexico, to Argentina, wherever there's strong internet. In Colombia, they go to Medellin. and they learn the local cultures and they really use Airbnb and it's really quite fascinating to see that it's opening up and focused so rather than going across the Pacific, the North-South Tropic is going to only increase. Next please. And the reasons for that is this was called the Ring of Fire and what we see here is Bolivia with Oliver's Lithium. in Chile, also with lithium in Argentina, which is known as the big lithium triangle. And we need that. We need the lithium batteries, the backup for HPC data centers and for Tesla vehicles or EV vehicles. You need lithium. So, this is another big factor of north-south in addition to oil in Venezuela, which is turning around their GDP dramatically since Maduro's been taken out of this corruption. and Dictatorship in that country. So AI data centers are driving demand for lithium and other critical minerals. Next, please. And we can see this with copper prices. We're hitting all-time highs because of the build-out and electrical grid. So it's not just – and copper is what they call the ring of fire. It's very important. It comes from Peru and Chile, the big copper porphyry deposits, and they also come from in the US and up into Canada into the Rockies. So with that, we've got a breakdown here for you. Land is $1 for every $100 spent of AI CapEx. And this is sort of a breakout that what does it cost by Lewis Gardner. And I think it's just helpful to recognize that the CapEx cost for a megawatt for HBC data center used to be 33 times what a Tier 1 data center is for Bitcoin mining. and now it's pushing more than 40 times. And that most of that is really the new power structure and the cost of Nvidia chips has gone up dramatically. But what I want to highlight to investors is that, I'm going to turn it over here to Aydin, but for the financials is to recognize that revenue was up about 3% even though Bitcoin was off 27%. So that means in the past year we built economies of scale and our margins are still very healthy and robust. And I think the other part is in GAAP and mark-to-market, during this quarter we started buying some more energy efficient ASIC chips and Mark DeMarcus as well. If Bitcoin is down, then the value of those ASIC chips is down. And before the next halving, they're down. So we still said, well, they're great prices to become more efficient. And with that, we bought some more of these chips. Well, that just says your depreciation, even though we have an accelerated depreciation, for our chips has not as been as great, and that's how inexpensive these chips have fallen. So we thought it was very prudent to go and start buying these chips on a weekly basis to upgrade our data centers. And what does that do? It creates on a mark-to-market rulemaking a non-cash charge of $31 million. So it's recognizing, following GAAP, You really have to drill through and take a look at what was the revenue and then what was our adjusted EBITDA or operating income from that. And you can see that it's very, very healthy, especially when you compare to our peers and we compare to ourselves quarter over quarter, year over year. So Darcy's covered this and Aydin's going to probably give you some more interesting granularity with it.

Thank you, Frank, for that excellent macro strategic overview of the industry. Now, let's get into some highlights from the quarter and an executive summary. So, it was a strong quarter for us, approximately $85 million of total revenue, of which we had about $30 million of gross operating margin. Now, netting off our $10.7 million of G&A, Earnings from operation in the business came out to $19.5 million, so what I like to think of as corporate margin on a cash basis, what did the business produce? Now, along the bottom, if you look at the adjusted EBITDA of $24.8 million, that stands alongside a net loss of $78.7 million, which is measured against $102 million of depreciation and non-cash impairment and other non-cash charges. By the way, about $102 million, about $86 million is really just depreciation and a non-cash impairment relating to ASICs and hash price, which applies to any miners following US GAAP operating ASICs. Let's double-click on those operating margins. So, again, we have the two engines, Bitcoin Mining and HBC Cloud. So, the total revenue, $85 million, a 36% gross operating margin. was really made up of 76 million of Bitcoin mining revenue where gross mining margin was 34% for the quarter and the HPC AI revenue of 8.8 million actually did a very nice 51% gross HPC margin resulting in a 4.5 million dollar gross HPC margin. Now, a couple things to point out. One, we realize our 35 million dollar HPC annualized recurring revenue target so that's Great. And also, it's worth pointing out that we are still scaling this business. So, as we bring online new GPU clusters, our margins will continue to climb on the HPC business. Obviously, as you're scaling the business, bringing on more resources, you know, you are having additional overhead with that growth. Our newer deals are targeting about 80% EBITDA on GPU cloud, but we'll get into that shortly. Let's go to the next slide. Going into the winter season here as of September 30th, $139 million of cash on the balance sheet and $22.6 million of Bitcoin on the balance sheet as well for a combined $160 million of liquid assets, cash and cash equivalent on the balance sheet. So with the volatility in the market lately, it is good to have that strong balance sheet, which we are protecting. Our mandate this quarter is to protect our balance sheet. We have navigated Two Bitcoin halvings and Ethereum merge. And this is the AI bear market that we've seen with all the recent pullbacks and the calamity. Almost $4 trillion in market value wiped out in the last couple weeks. Again, this is not our first rodeo. Hive has been a publicly traded company. In fact, the longest standing of our peer group of HPC and AI infrastructure builders that pivot from Bitcoin mining. So, keeping a strong balance sheet and Sergi Thunay, although we are growing the business, is our solution to scaling and of course growing cash flow and realizing return on invested capital. Let's go to the next slide. So if you look at our operating margins today, so some really great news, not only did we reach that $35 million ARR for the quarter, but as of today, we're actually at $40 million annual recurring revenue for HBC. What that means is that we're doing over $110,000 day-to-day revenue, which is fantastic. If you apply those same HPC margins of 50% approximately from the quarter to our current $40 million, it's about a $20 million annualized gross HPC margin today. And on the Bitcoin side of the business, it was $300 million ARR for the quarter, but even if you look at mine economics and production, Since the period to today, it works out to a very similar figure. So find that same 34% close mining margin. It's about another $100 million of annualized mining margin. So I just want to give the street and all the investors out there a snapshot of where we stand today, November 9th, since the quarter end. and again, really exciting that our HPC revenues can continue to climb due to strong demand. Of course, GPU hourly prices. Let's go to the next slide. Global power footprint, 860 megawatts. Now, we've updated this slide to include all the sites and there's really two categories. There's Bitcoin mining sites and there's Bitcoin mining sites that are being converted to Tier 3. So we've highlighted them in green and orange and so you can sum up and many more. Our new project site are big contributors to that pipeline. Of course, 440 megawatts is active currently mining Bitcoin. So we're really excited about the growth that we have ahead. That's just a good global snapshot because land power is an input to the system. Whether you're selling rack space or standing up GPU cloud and selling tokens, really the input to the system is having powered land. We've got a lot of it. As I said in the past on earnings calls, we had been land banking by substations and this of course is the fruit of that labor. Let's go to the next slide. Some great news out of Ontario actually. On the home front in Canada, we saw that blue wave sweep the US midterms and there was massive headwinds and negative sentiments around AI and we saw collectively four trillion dollars of market cap from American tech stocks really get wiped out over the last couple weeks and so there's a massive breath of fresh air and candidly what we think is an extremely strong tailwind for Hive and Buzz as our data center pipeline across Canada totals 400 megawatts of utility load but most notably our gigafactory sites and our Toronto Airport site sit proudly in Ontario. And so Premier Doug Ford announced a playbook in August where he said that they're really choosing to build the economy of the future. They'll generate billions of economic growth. They want increased tax revenues and create thousands of new jobs. So we thank Premier Ford. He gets it. We salute you, Premier Ford. And his Minister of Economic Development, Dick Fideli, I said the province will make certain to give priority to data centers using a closed loop system, which I do note all of our data center designs for our sites, notably the Gigafactory Toronto and even Grand Falls. have always been based on a liquid-cooled closed-loop system. We've talked about this before, so it's very comforting to see the strong support from the Office of the Premier. And moreover, they doubled down on this because the data center playbook came out in August, which is a few days ago. In fact, Ford's office stated that they will be approving the first swath of new AI data centers, quote, sooner rather than later. So, again, a breath of fresh air amidst a lot of global turmoil, at least in the U.S. markets. So, we're very excited about the outlook in Canada. Let's go to the next slide. So, this is a recap of all the sites that we have underway, their status. Again, starting with the big boated site, that one's the most near-term. We've got the LOI executed. We'll be providing the streets update as we get closer to that definitive agreement. and really it's an exercise not in rushing but getting the right deal done for our shareholders and so it is an IG off-taper and so one must contemplate which deposit you're getting on signing, what parental guarantees look like and all of the things that will affect your cost of capital when you're going to finance it. We're very much aware of the headwinds in the industry right now so we are being cautious and protecting our balance sheet while also seeking the lowest cost of capital by strongly negotiating terms that behoove our shareholders and our stakeholders. So, that's the quick update on Big Bowdoin and then of course the rest of the sites, but this is more of a handy reference slide. We can actually flip through one by one. Let's go to the next slide. So here's a beautiful visual of the Toronto Airport site. This is not a Bitcoin line, it's a proper data centre that we acquired in September of last year. Again, we've talked about this site being very attractive for military applications. We've had some The operative word is optionality. That's a bite-sized site. It will be a showcase marquee, and we welcome to have visitors as the site progresses, and we want to showcase the progress. Stay tuned for updates. Let's go to the next slide. The Gigafactory, of course, a crown jewel. Again, how could we not mention this site, especially with the recent positive words from Premier Ford, and the Province of Ontario. Again, as we said, our design has always been a closed-loop cooling, zero-water usage design. Using liquid cooling, you have loops where, whether it's glycol fluid, you've effectively got a system whereby thermal energy is transferred through closed-loop piping to chillers that sit outside of the building. Thank you for watching. Consuming electricity, you are an industrial client of utility companies. So do we shut down aluminum smelters? Do we shut down every other industry all across North America that uses megawatts of power? No, because these drive revenue and taxes for the utility companies. No one's putting a gun to the head of the utility companies. So I think that there's a lot of misunderstandings, really. But, you know, as a Bitcoin mining company, We understand FUD, Fear, Uncertainty and Doubt. So anyway, just to remind folks that this is a project that we engage with the region as well as the municipality on sustainable planning design as well as engineering infrastructure upgrades. That means widening roadways, improving civil infrastructure for the 25 acre parcel where we assembled that for this future site. And again, full loop cooling, zero water design as is called for an NVIDIA reference design. So NVIDIA doesn't make an open-loop system. It just continuously drains water. So again, I just think there's a lot of misunderstanding. We just want to educate the public. Let's go to the next slide.

New Brunswick campus, of course.

So the update here is we've now expanded the site. We've closed this recently in September. All the parcels land to the east and to the south. This is now a 64-acre campus. We're very excited. 50 megawatts of IT load, and stay tuned for updates. But again, this forms part of our Canadian sovereign compute thesis. So, our dual-engine strategy, approximately 300 million ARR. Whether you look at the fiscal Q2, or really production and economics since Q2, it's squarely at 300. It's actually slightly above since the quarter. Notwithstanding the recent downtrend in Bitcoin price over the last few days, we actually saw a really strong cash price in the month of October. And then in the HPCGQ cloud, we are now at 40 million ARR again, about 110,000 a day. In fact, a bit north of that on Sunday. So very exciting. Now, combined basis or dual engine is about 340 million ARR. And this is just a recap, a handy recap, especially for the analysts out there. We signed three GPM crowd deals this year, totaling $600 million of total contract value. So that $40 million ARR that we're at today, because of the bar chart at the bottom, the cohort deal gets us $115 million by adding $70 million ARR. Again, that's, sorry, $75 million ARR, and that's a three-year deal. And then the IG five-year deal. for $350 million at $70 million ARR. That gets the contracted total GPU cloud revenue to $185 million. Again, just a heavy recap, deal terms, hardware, etc. And if you zoom out and just look at our HPC revenue roadmap, while on track to hit that $200 million ARR target, expect an update on the $500 and $400 B300 GPU deal. I will tell you that we have demand and many more. Thank you for watching. I would be 500 million ARR and if you look at a GPU cloud on the left that'd be 200 mil ARR both we target about 80 percent EBITDA 700 mil ARR combined over 500 million of projected EBITDA based on our HPC revenue roadmap on that note once we hit our 200 mil and many, many more. 500 million dollar combined ARR target for early calendar 2027. Now of course Bitcoin mining revenues vary with hash price but still with what we've seen recently and the growth and deployment of our GPU cloud clusters over the coming months we're really exciting to see that growth because this also means more EBITDA and more cash flow for the business As I mentioned, we have outside demand beyond what will be projected, so this is an illustrative slide to show the street. If, for example, we took the Toronto airport site and allocated it as GPU cloud, that would have our total GPU target revenue to $285 million. And again, we have demand. This is an illustrative slide. and you would see that the HPC Colo target still is about $495 million on the right. So it actually increases the combined HPC and GPU cloud target to $780 million. Again, there's a lot of volatility. We've seen commentary on GPU financing and credit market crunch, etc. We are protecting our balance sheet. Our goal is to navigate the headwinds. Stability is key. Maintaining positive cash flow is This really just shows what we've got demand for near term and we will provide street more updates. Really our focus is to build up the Toronto Airport site for 2027 and have that go live before the end of the year. But again, just so you can understand the metric of if he took Colo, a Colo site, and moved it to GPU cloud. The rule of thumb is every 5 megawatts of IT load is 2,000 GPUs and 2,000 GPUs at current prices is about 80 million ARR. So current prices, you know, we're seeing GPUs are pricing in the $4.50 range and even higher. So, again, this is just an indicative slide for people to plot economics. Again, optionality is a key word. We've talked about annual recurring revenue, but on an EBITDA basis, if you look at the margins of, I should say the higher margins, from the new GPU Cloud deals, it would put collectively our EBITDA at a potential target of $350 million, with the loan-lease HPC-Colo deal being executed, with the GPU Cloud deal growing to $280 million ARR. Strong Outlook for us to grow into as we navigate these market cycles. Again, we're not necessarily in a rush to sprint, but rather protect the balance sheet and only do what we think are the best deals for our shareholders. Let's go to the next slide. Speaking of funding, again, just a quick recap. We did the $245 million of zero interest two-month convertible notes this year after capped Carl's Net proceeds were $200 million. and in addition to that, we recently announced a $120 million GPU loan and the funds are with an escrow agent from the lender and so there's a committed GPU loan. Again, yield terms, 80% loan to cost through your term, 9% interest and those funds get released. because this is the anatomy of the GP deal. So these proceeds were to fund the Cohere deal, which again was a three-year, $225 million total contract value deal. The hardware, the capex was $165 million. And nowadays, two GPU clusters of this size, 2,000 GPU cluster of GB300 are close to $200 million plus. So again, we locked this in. Thank you for watching. of GPU Cluster. And so, this is straight line. We will own the GPUs outright. The loan balance is $0 after the 36 months. It's co-turned with the off-take agreement of three years, which is spelled Canada. And if you don't know about, go here. Right now, they're doing a $35 billion Series E backed by the government of Canada, Bell, and Nvidia. and again we own the GPS outright at month 36 and the retail value is actually upside this SPV level debt and so when you look at on an annualized basis 75 million of revenue is about 49 million of debt service it's very I would say well-structured financing for our first large cluster deal and again, we wanted to cash flow, we want to make sense. Yes, revenue is important, EBITDA is more important and cash flow is very important as well. So, we're happy to announce this and we will continue to navigate the market and scale our business very intentionally by sourcing what we think is the lowest cost of capital. Just to recap, the last 12 months of revenue, and many more. Thank you very much. We think we've got very strong optionality as we continue to execute on leases for HPC Coal and GPU Cloud, and of course, growing at re-rating and valuation alongside our peers. Let's go to the next slide. On a near-term basis, with the GPU Cloud deals that are contracted at $185 million, including our active $40 million revenue, and the HPC deal at $0.45 million ARR using current multiples, even markets pull back using current multiples. It would put us at about a $1.4 billion valuation. So we think that notwithstanding the headwinds in the industry, we're continuing to execute. And so we think that there's a lot of upside here, especially if you look at where our peers are trading. And, you know, the macro zoom out. If you look at all of our sort of Growth Roadmap, the 500 mil target for HPC Colo with the 325 megawatts by kilo and then 200 million on the GPU cloud. Using peer multiples, again, even though markets pulled back, there are more conservative multiples, but this is a $3.9 billion target. Thank you, Aydin. So for our investors, I'll walk through Hyde's second quarter financial results for fiscal 2027 that is ended September 30th, 2026.

This quarter presents two important stories. Operationally, we delivered higher sequential revenue, increased gross operating margin dollars, and significantly improved adjusted EBITDA. At the same time, our reported GAAP results reflect the challenging economics of Bitcoin mining and the significant non-cash impairment of equipment. I'll explain both because understanding that distinction is important to assessing our performance. Before reviewing the quarter, I'll briefly touch on our capital structure. At September 30th, Hive had approximately 276 million common shares outstanding, 3 million warrants, 2.6 million options, and 15.6 million restricted share units. Our shares trade on the Toronto Stock Exchange and Nasdaq under HIVE and on the Columbian Exchange under HiveCo. Turning to our financial highlights, total revenue was $84.9 million, including $76 million from Bitcoin mining and $8.9 million from HPC and AI services. Gross operating margin was $30.2 million and adjusted EBITDA was positive $24.8 million. These represent meaningful improvements from the prior quarter. On a US GAAP basis, however, EBITDA was negative $22.1 million and the net loss was $78.7 million. The net loss includes a $31.2 million non-cash impairment of equipment, as well as $54.9 million of depreciation, $8.6 million of share-based compensation, and a $7.3 million loss from changes in the fair value of derivatives. The impairment deserves some explanation. Under US GAAP, we assessed our Bitcoin mining equipment following lower mining revenue per unit of computing power and reduced market values for ASIC equipment. These factors lowered expected recoverable cash flows and residual values. Our assessment determined that the asset group's carrying value exceeded its recoverable value, requiring this $31.2 million We finished the quarter with 269 Bitcoin in Treasury. Three measures summarize the operating quarter. Revenue was $84.9 million, adjusted EBITDA was $24.8 million, and we produced approximately 1,070 Bitcoin equivalent during the period, keeping that side of the operations extremely strong. Together, these metrics show the operating contribution of our expanded platform, while our GAAP statements also recognize the depreciation and non-cash impairment associated with the capital intensive nature of Bitcoin mining. Looking now at our balance sheet, we ended September with $139 million in cash, 22.6 million in digital currencies, 18.6 million of receivables and prepaid, and 11 million of investments. Current assets totaled 213.4 million versus current liabilities of 137.8 million, leaving working capital of approximately 75.6 million. That liability balance includes an $84.5 million provision for regulatory liabilities related to the previously disclosed VAT matter that occurred in the prior quarter. Cash declined from approximately $208 million at June 30th as we continued investing in our infrastructure and growth plans. We report a $12.2 million of operating cash flow for the first six months of the fiscal year alongside substantial investing activity. We remain focused on maintaining financial flexibility and allocating capital carefully across Bitcoin mining and HPC and AI infrastructure. Turning back to operations, Gross operating margin was positive $30.2 million compared with $42.4 million a year ago, a decrease of approximately 29%. Basic loss per share was $0.29 compared with a loss of $0.07 last year. The larger reported loss reflects both operating economics and those significant non-cash charges, including the equipment impairment recognized this quarter. Gross Operating Margin excludes depreciation so it offers a different view of performance from GAAP earnings. Looking at that, the year-over-year comparison highlights the pressure on mining economics. Revenue was $84.9 million compared with $87.3 million in the prior year quarter, a decline of about 3%. Gross Operating Margin declined from $42.4 million to $30.8 and the margin percentage decreased from approximately 49% to 36%. The 10Q identifies lower mining revenue per unit of computing power as one of the factors affecting our mining equipment recoverability assessment. This is an important reminder that revenue scale alone does not determine profitability in a changing Bitcoin network environment. Sequentially, we made meaningful progress. Revenue increased from $79.1 million in Q1 to $84.9 million in Q2, or approximately 7% increase. Gross operating margin increased from $24.2 million to $30.2 million, or approximately 25%. That represents an improvement in gross operating margin dollars despite the challenging industry backdrop. Based on the reported amounts, gross operating margin was approximately 31% of revenue in Q1 and 36% in Q2. The improved operating contribution helps explain the increase in adjusted EBITDA, even though it does not eliminate the effect of non-cash expenses on U.S. GAAP results. From an earnings perspective, I want to distinguish our operating performance from the accounting charges affecting the reported result. Adjusted EBITDA was $24.8 million compared with $31.5 million in Q2 last year. Our GAAP net loss was $78.7 million compared with $15.8 million in the prior year quarter. The most significant new item this quarter was the $31.2 million non-cash equipment impairment. Under U.S. GAAP, we evaluate long-lived assets for recoverability when circumstances indicate their carrying amounts may not be recoverable. Lower expecting mining economics and ASIC resale values triggered that review. In addition, depreciation totaled $54.9 million compared with $38.3 million a year earlier, reflecting the expense associated with our asset base. Sharebase compensation was $8.6 million and the derivative fair value loss was $7.3 million. These items are reflected in GAAP earnings, while adjusted EBITDA provides a supplemental view using the reconciliation in our reported results. I would emphasize that the impairment is not a cash outflow this quarter, but should not be dismissed. It reflects a reassessment of the recoverability of our mining assets. Finally, the sequential earnings comparison shows the improvement in operating contribution. Adjusted EBITDA increased from $13.4 million in Q1 to $24.8 million in Q2, an increase of $11.4 million, or approximately 85%. At the same time, our GAAP net loss narrowed from 142.9 million in Q1 to 78.7 million in Q2. It is important not to treat that reduction in net loss as a like-for-like improvement in operations. Q1 included the substantial non-cash Swedish regulatory provision, whereas Q2 includes the 31.2 million non-cash impairment of equipment. In fact, the 10Q in our reporting results reflects a small 0.2 million reversal of regulatory provision expense in Q2 due to foreign exchange movement. Taken together, the quarter demonstrates better sequential revenue, higher gross operating margin dollars, and stronger adjusted EBITDA. It also demonstrates the need for disciplined investment decisions and careful assessment of asset values as mining economics evolve. As always, we will continue to focus on operating efficiency in our Bitcoin mining and disciplined development of our HPC and AI infrastructure business. With that, I'll turn it over to Nathan Fast.

Thank you, Darcy. That concludes the presentation for today. And with that, 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're ready with your questions, we will begin to choose and ask you to unmute. Our first question comes from the line of Bill Papanatsasio. You can go ahead and unmute and proceed with your question.

Yeah, thank you. Good morning, gentlemen. Congrats on all the progress with the HPC business. For my first question, I'd like to touch on the letter of intent for the long-term co-location contract at the 32-megawatt boating site in Sweden. Can you just provide a high-level update in terms of how far you are in discussions, what's remaining, to get that over the finish line and just an overview of What the customer profile looks like. Thank you.

Hi, Bill. Yeah, this is Aydin. Thanks for the question. So, I tried to address this in my section of the presentation whereby I was referring to negotiating the terms of the final agreement that really looking out for our shareholders. So, there are terms that when you're finalizing an offtake agreement for a polo deal, Termination rights, deposits, all of these different key factors that the street looks at, that you would look at, to evaluate the risk profile of the deal, and moreover, the lenders. So we could have signed the deal weeks and weeks ago, but really as we're working on structuring the finance system, For that deal, this is where we've been very involved and even had a consultant for the lender come out and do a site visit last week. I mentioned that in my section as well. So, lots of progress, lots of work happening behind the scenes. So, it's advancing very well and it is an investment grade off-taker. Thank you very much. in getting the best terms that allow us to see close cost of capital and financing, which we think right now, especially in markets where we've seen the headwinds and the pullback, cost of capital is important. And so we don't want to rush into a deal just for the sake of reporting new top line revenue. We want to make sure that along with that, we've got good cash flow and a good financing structure to support the growth.

Appreciate that. And as a follow-up, I know this is still very fresh, but just curious how the team's expansion strategy is evolving. I recall the United States was a potential geography for expansion in the past. Have you guys parked that idea following the recent midterm results? And if you could rank which regions are most attractive today, that would be helpful. Thanks. Certainly.

We've always had an eye on the U.S., We're always looking at sites throughout the U.S. It's got to be the right opportunity, of course. So that's what I'll say there. I think that the political headwinds in certain states obviously are a signal. Signals must be read and plans must be made accordingly. I would say to rank... Really, Canada right now is standing in the lead. I addressed the playbook issued by the province of Ontario and the administration of Premier Doug Ford, and really his office doubling down. Just a few days ago, releasing a statement that they're going to be approving the first swath of new data centers sooner rather than later. So I think that stands in stark contrast to a lot of the rhetoric coming out of different states in the U.S. But by the way, I... I really empathize with the rest of the industry. I think that all of us winning is good and obviously provides a unique value proposition for high shareholders and investors at this point. So we're grateful that the wins at our back in that regard. But I do hope that broadly, you know, cooler heads prevail and people realize that AI is really going to unlock an immense amount of value. And I think... Just kind of on a tangent, the concept of Jayvon's Paradox is just because the cost of a commodity goes down, it doesn't mean that you use less of it. You expend the same cost and you consume more, so we'll have more economic output. I think that's an abundance, not a scarcity mindset. But at any rate, we're really bullish on Canada right now, obviously. Of course, Sweden having this LOI signed is very optimistic and strength addressed. There have been some political sea changes in Paraguay, but we've been operating there for a long time. Operationally, it hasn't affected us and As a new administration comes into place, really we think that, as Frank mentioned, there's calamity to happen everywhere. It's how well are the institutions set up to course correct. And so we believe that Paraguay is a very stable jurisdiction with good governance. And so we're also bullish on Paraguay as well. I mean, it's still rich in natural resources, very smart infrastructure. and Cabinet of Ministers that are very much pro-data center and pro-AI. And so I think that consensus still remains strongly rooted and we'll see how things unfold, but we're very confident that Paraguay is still going to be a fantastic horizon for data center building for AI.

Great to hear that color on Paraguay. You answered my final question. Looking forward to all the progress in the current quarter and I'll go back in the queue. Thank you for answering questions.

Thank you, Bill. For our next analyst question, we'll go to the line of Chris Bremler from Rosenblatt. Chris, please unmute yourself and proceed with your question.

Hey, thanks, Nathan. Thanks for seeing my questions. Congrats on all the progress. I just wanted to ask on The Bitcoin mining side, even though it's been a little bit of a rough run, I have seen improvement recently in hash price, and your results also suggest really strong cost controls. I just wanted to ask from a macro to a top-down perspective, given what's going on on the HPC side these days, are you Thank you for joining us. You know, potential for high-performance compute data centers in Paraguay. Right now, I think it's just Bitcoin mining. And so, is the plan to relate to my first question, you know, still to try to switch, or is there any interest in expanding Bitcoin mining at this point? Thanks.

Yeah, and I try to address this in my section as well. Right now, it's protect the balance sheet and Navigate the market that we see ahead. So I think different people on the street have different opinions. This pullback, you know, is it short term? Is it medium term? But, you know, cash is king. And so we'll be deploying cash for assets that will generate near term revenue and cash flow. And I think the other point that we also try to address in The press release was that ending the quarter with $139 million of cash on the balance sheet, while also successfully meeting the capital commitments for the first large GPU cluster deal that we announced with Cohere, meaning that we secured the $129 million of debt. So really, instead of Thank you for joining us. Thank you for watching. Thank you for joining us. is full globally. And so we've got 25 exahash, which I think we operated an average of 23.8 exahash this quarter with firmware downclocking, et cetera, to increase ASIC efficiency, optimize the tool per terahash fleet efficiency. So we wouldn't really be expanding per se. Opportunistically, as Frank noted, from time to time, Thank you very much.

Yeah, that makes a ton of sense. Aydin, thanks so much for that detailed answer. Yeah, I guess the other question I had was on the HPC cloud business. You know, I see the sequential increase in revenue there. Also saw a sequential increase in the gross margin. And I just want to just remind us, you know, right now we're sort of low 50s level. What's the sort of targeted run rate gross margin in that business?

80%. So the new GPU cluster deals that we're bringing online, the GB300s, the GB200s, those are targeted at approximately 80% EBITDA, and that's operating within a COLO facility with Dell Canada. I hope that's helpful.

Yeah, so we have quite progress this quarter, but I guess it's the top line, and the more machines come online, especially those 300s come online, then you'll see Thank you so much.

200 mil ARR, so all that incremental revenues at 80% EBITDA gets you very much closer. But moreover, as I alluded to in my section, as we're scaling the business and having costs and resources in place to allow us to scale, you know, that also addresses part of the margin. So once we're kind of at critical mass, that also supports the margin improving. Great. Thanks, Aydin. Appreciate it. Yep.

Thank you, Chris. One final question this morning from the line of Fedor, from B. Riley.

Fedor, please go ahead with your question. Thank you very much, and good morning, everyone. I have a couple short questions on funding. First of all, mining cash flow is a to fund HTC's build-out, but cash price is quite low, although some improvements. If Bitcoin stays around $70,000 to $80,000 per coin, how much HTC CapEx can mining actually fund? And with current environment, with current stock price, at what share price would you stop using The ACM to finance the equity portion of HPT Build Belt. Thank you.

Yeah, well, we did the converts, as you know, earlier this year, and so we've got a strong cash position, the $139 million. By the way, on top of that, $22.6 million in Bitcoin, so just over $160 million of liquid assets, capital commitments for the GB200 order satisfied the GB300 order, Thank you very much. Thank you very much. to bring on that five megawatts of critical IT load. So really our focus is to deploy the clusters that are currently contracted, if you refer to the HPC revenue roadmap slide, aka the money shot slide, and then build up the Toronto One data center and separately from that, in addition to that, we're looking to undertake a financing process for the Bowdoin site with, of course, with a signed lease. We'll use that likely to secure corporate bonds and so not to dip into the balance sheet to finance Bowdoin. So, I hope that's helpful and, you know, we don't... We've always been very conservative and judicious on the use of the ATM. We've never sold on a down day, and so where the stock now is for us, and really the whole industry, it's not conducive, we think, to use the ATM when the stock is at these levels. Fortunately, we've got the balance sheet and cash flow that allows us to get... and our contracted revenue online. You know, notwithstanding where the street is, you know, we always believe fundamentals. Once the revenue is live and the cash flow is live and we're at that $200 million target for the end of year, which by the way, you know, we'll be providing updates in the very due course, that last tranche for $185 million active and contracted revenue as of today. and so that last remaining tranche of 20 million ARR, that cluster of B300s, 504 GPs that's on that revenue growth slide, we'll be providing an update on that very soon as well and that'll get us squarely at the 200 mil target. So really it's getting that cash flow online and with the margins, once we're at that 200 mil, the company will have more cash flow but again, We want to focus on protecting the balance sheet and seeing how the market recovers before committing further capital expenditures. Cash is king right now. Hope that helps.

That's super helpful. Thank you. And let's follow up. Regarding the GB200 facility, I think it's a good template at the level and size of the contract. Can you finance that collocation size the same way before Canem Zain, or does New Brunswick or Toronto's finances depend on lending a lead person?

The nice thing about the Colo sites, it's a bit of an easy button, because we don't have to finance them. They're built by Bell AI Fabric, and we're a tenant. And, you know, this nominal deposit is a couple million bucks. But other than that, we're just, it's CapEx, very CapEx-light, quick time to market. And that was our strategy to get to our 200-bill targeted ARR on the GPU cloud business. Toronto's a nice bite-size Toronto airport site. Nice bite-size 5-megawatt IT load. Thank you for joining us. for New Brunswick. I mean, it's kind of a good question that you're asking because it spurs me to comment. Both GPU Cloud and HPC Colo. And I try to thread in the operative word of optionality into my presentation. And we know that sentiment varies on the street. Some investors are very bullish on just locking in long-term investment grade HPC Colo. Others believe, you know, the higher reward of GPU Cloud, albeit being more CapEx intensive, long-term is Thank you for joining us. Building up the site footprint while going through design development, optimization, permitting, etc. And, of course, working with utility companies, making sure that there's buy-in. They're very excited, of course, to have... You know, an AI data center conversion from a Bitcoin mine. Myself and Craig Tavares, we flew out to Fredericton in August of this year, actually, for a meeting with the Office of the Premier and NB Power, and they were very excited about it being the largest AI data center in the Maritimes. So, yeah, stay tuned, but those are kind of the functional updates on it, and we'll provide guidance on the type of offtake we decide for New Brunswick and, correspondingly, the financing structure to support that growth. Thank you, Fedor.

With that, we will conclude our Q&A session and our Q2 fiscal 2027 earnings call. Thank you to Frank Holmes, Aydin Kilic, and Darcy Daubaras for sharing their insight this morning. Thank you to our attendees and our analysts for joining, and we look forward to speaking to you again soon.