HIVE Digital Technologies Q4 2025 Earnings Call Transcript

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Provided by Quartr
June 26, 2025

Key Takeaways

  • Bitcoin Mining Scale-Up: Hive has doubled its hash rate to 11.5 EH/s and is fully funded to reach 25 EH/s by U.S. Thanksgiving. This ramp targets over $400 million in annualized revenue from its 440 MW green-energy footprint.
  • HPC AI Expansion: The company hit $20 million ARR on its high performance computing business. It acquired a 7.2 MW Toronto data center to triple GPU compute capacity toward a $100 million ARR goal.
  • US GAAP Transition: Hive converted its reporting from IFRS to U.S. GAAP, aligning financial metrics with U.S.-listed peers and enhancing comparability for investors.
  • Strong FY25 Results: For the year ended March 31, 2025, Hive generated $115 million in revenue and $56 million of adjusted EBITDA, achieved a 22% ROIC, and holds over 610 BTC on its balance sheet.
  • Margin Pressure From Halving: The April 2024 Bitcoin halving and rising network difficulty cut miner rewards in half, contributing to a Q4 net loss of $0.34 per share and lower gross operating margins.
AI Generated. May Contain Errors.
Earnings Conference Call
HIVE Digital Technologies Q4 2025
00:00 / 00:00

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Nathan Fast
Nathan Fast
Director of Marketing and Branding at HIVE Digital Technologies

Hello, everyone. Welcome to today's webcast on Hive Digital Technologies Financial Results for the Quarter and Year Ended 03/31/2025. My name is Nathan Fast, Director of Marketing and Branding at Hive, and I'll be your moderator for today's call. Before we get started on Slide two, I would like to briefly note the disclosures for today's presentation. Except for statements of historical fact, this presentation contains forward looking statements within the meaning of The U.

Nathan Fast
Nathan Fast
Director of Marketing and Branding at HIVE Digital Technologies

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 www.sec.gov.

Nathan Fast
Nathan Fast
Director of Marketing and Branding at HIVE Digital Technologies

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 are 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 eight ks furnished to the SEC. On the next slide, I'm pleased to introduce today's presenters, Frank Holmes, Executive Chairman Ivan Killick, President and CEO and Darcy DuBeres, Chief Financial Officer. I would now like to hand the presentation over to Mr. Frank Holmes for a macro recap of the quarter. Frank?

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

Thank you, Nathan. So let's do a macro recap. Starting the big picture, the transformative year, the most incredible year in Hive's history also when it first going went public to become the first crypto mining company, and and, it's really quite impressive how the team is gelling. And let me walk you through why this is a transformative year for HIVE. Next next visual really is important for investors to understand the concept that they say that Bitcoiners buy the tips, stock the coins, and hold on for dear life.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

Well, clearly, what you can see here is a daily volatility of Hive is greater than Bitcoin, and MicroStrategy, now called Strategy, is is double what Bitcoin is on a daily basis. And over ten days, it's even more so. So it's really important when you look at Hive and you and we have lots of people like to try to trade like Bitcoin, etcetera. It's it's almost like you wanna buy. If it's up 5% in a day, it's not the best day.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

But if it down 5%, the math says it's time to buy. And and and that's really contrary to how most people think except where I've found that the Bitcoin ecosystem has this concept that talks about it so often everywhere, every day, Reddit, x, LinkedIn. Next, please. Well, I mentioned this is a transformative year. But to make it a transformative year, you need great leadership.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

And and Hive has expanded its its senior leadership. And the two of the key people, that are helping scale our business is Greg Tavares. As as Greg has tremendous experience in Canada in building data centers, in particular, to run Buzz, be the president, which he is, the chief operating officer. And and so we take a look in the past six months, the run rate of, our HPC, high performance computing business using NVIDIA chips has doubled. The run rate has doubled, and it'll double again.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

And you see that we made a serious press release this week on a major acquisition in in Toronto, which is the financial capital of Canada, the biggest city in Canada with tremendous infrastructure, intellectual capital, universities, noble lord for AI last year was from University of Toronto. So having him join our team is is just a wonderful statement about Hive and what we're doing. And then to build and acquire assets in in Paraguay and acquire Bitfarm's assets in Fastrack, we were able to have Gabriel Lamas to join the team, electrical engineer, person with tremendous high voltage electricity experience and understands the country. And his father is an engineer so that it's really deep in the in the bones and muscles of people like Gabriel to lead the charge. And he's been doing a spectacular run so far this year that our growth rates have shocked a lot of people.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

They didn't expect us to be able to scale as fast as we're doing. Next, please. I love this video. It's a short term, a short clip, a drone going over the new assets that we have that's helped us surpass 11 x a hash. If we recall a year ago, it was less than four exahash.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

So it it's moving and it's grooving, and it's very exciting that we're serious investor in the country of Paraguay, and there's lots of other positive developments happening with the country. So you can see from this other picture with Ivan Kilik, our CEO, and mister Lamas, Gabriel Lamas, big guy, you know, six four and all the most of us needed to scale our business. And the other person is a real important wingman for him in running the facilities is is in between I didn't Gabriel, Carlos. So we're really happy where we were taking the business. Next, please.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

Scaling, and we're doing this Hashrate with tremendous discipline, well organized be building beautiful campuses. We've also I've been adding air conditioning to all the kids' schools that are near us because they have electricity, but they do not have the air conditioning that's necessary. So we've gone ahead as part of our strategy to be involved with the community. And we have lit up the downtown of Venezuela where we are for a 100 megawatts. So now women and children are safe in the streets at night, and the mayor has been very, very positive response from helping light up the streets.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

Next, please. So this is another simple visual. HIVE's future hash rate growth is going to double again by America Thanksgiving. And taking from Le Penix to Hash, scaling at 25. What's going to happen here is margin expansion.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

In particular, the revenue will grow substantially and if they put in a $100,000 the revenue can be over $400,000,000 on our run rate. But when we look at the margins of what we're having, they will expand substantially. On a historical basis, that's what scaling is about. So it's not to forget what we're doing in the Bitcoin ecosystem. Bitcoin a year ago, was $65,000 average price, now a 100, and two years ago, it was 25,000.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

So it's it's it's interesting to see. It's continued to grow, and and we're now scaling with it. Next, please. The the the HPC, the high performance computing business is still exploding. I'm right now in Boston.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

I'm at MIT with a 100 CEOs from 50 countries, boot camp AI, and seeing how you run build a business model. What used to take weeks now take hours. So it's been very exciting, and it's it's it's on the backdrop of this visual. When OpenShot came out in November of twenty two, it exploded with 1,000,000 users. And very quickly, it was 100,000,000 users.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

Unprecedented growth, of the magnitude, and now it has a run rate of about 500,000,000 users and so many on the $20 a month. And then there's the enterprise system that's OpenAI's annual run rate as of June now is is 10,000,000,000, and some expect it to be a billion dollars a month by December the at at five. So Hive is positioned, and Hive is growing with the spectacular growth in AI. Next, please. So this is a transformative year.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

HIVE is growing the forex and revenue to become 3% of the Bitcoin network. HIVE is scaling its HPC AI business, acquiring a 7.2 megawatt Toronto data center, and we'll upgrade that from a Bitcoin mining data center because that's all the power that's necessary and all the fiber optics necessary, dense fiber to be able to expand that footprint. We made announcement also we bought more clusters from NVIDIA. So HIVE is also in this transformative year of expansion. It's gone through its move to Texas as head office.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

But more important, the HIVE has transitioned now from IFRS accounting reporting to US GAAP. And that's been a tremendous amount of work on the accounting team. It's transformative for us because it allows you to compare Hive to mostly other US Bitcoin miners on an equal footing simple basis. Next, please. Hive's value bump and the upside potential, I think by November, targeting 25 exahash.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

When you look at the pure average valuation, it's a 100,000,000 for exahash. So high as upside potential was seven x. And I think that's why many analysts are calling it 7 to $10 in their forecast for the stock price. Next, please. And a big picture, our year end is March 31.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

And Darcy and and I will give you a lot of regulators for the quarter. But I want to highlight, it's transformative because we've changed our accounting practices and reporting. And and with that, how did it look last year under GAAP? Well, we did about a 115,000,000 in revenue. A 10,000,000 of that was for the NVIDIA chips we have for high performance computing, and that is expanding, as I mentioned, now has a run rate over 20,000,000.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

So it's doubled under the leadership of Craig Tavares. And the adjusted EBITDA is around 56,000,000, and the gross operating margin is about $25,000,000. Next, please. So some of the largest noncash items in that transformative accounting movement from IFRS to GAAP is depreciation. It's still pretty high 64,000,000, and the stock based compensation was was de minimis as compared to our peers.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

We're told to 11,000,000. And the revaluation of the digital assets, Mark to market will create unrealized losses and gains every quarter in addition to our investments. But some of the stuff is like a $5,000,000 noncash charge for currency volatility. So as we all know, in the past three months, with the tariff war, what's happened to the US dollar, while you're going through these movements in the past year and having operations over nine time zones, five languages, it it does create, an impact the way gap that wants you to express, those translations. So these are some of those charges, but that's all behind us from an evil of an equal footing.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

And next, please. So this is the most famous falls. It's in the in the Western Hemisphere and very close to it. It's the largest dam in the Western Hemisphere, partnered between Paraguay and Brazil, and hybrids leveraging green energy in Paraguay. The movie, The Mission, which made Robert O'Niro and Jeremy Irons famous, is one of the top 50 movies by the Vatican to watch because it's based on a true history and has to do with these beautiful spectacular waterfalls and Catholic Catholicism spreading through Latin America.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

Next, please. So crypto education enthusiasm in Paraguay, this conference is coming up. The president of country is also a YPO member, young president's organization. And in September, he's hosting event for a 150 CEOs around the world on what makes Paraguay interesting and a great opportunity to invest in. I've mentioned this before that Paraguay is very much aligned with America in many ways.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

And the president of the country went to the University of Columbia, New York City, also worked for the World Bank. So he really understands American institutions and global institutions and has done a great job in having the country's currency go through an upgrade in the rating and the value of how they're running their country. But nothing is greater than right now is is all the money we're putting in and Bitcoin mining means he's going to get US dollars every month. And that's very important because and either their utility energy companies owned by the government and having stable fiscal policies come from stable income. And so we're thrilled to be part of that growth.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

Next, please. In Paris, I've recently spoken. I said, HIVE is not here to chase borders. We're here to build decades of digital infrastructure and decentralized freedom. We mine Bitcoin not for today's price, but for tomorrow's paradigm shift.

Frank Holmes
Frank Holmes
Executive Chairman at HIVE Digital Technologies

Now I'd like to turn it over to our CEO, Ivan Kelly. Thank you.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Alright. Thank you, Frank, for that intro. Let's have an executive overview of the year to date as well as some highlights from recent milestones. So it's been a stellar year for Hive. The headline is $56,000,000 of adjusted EBITDA.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

We're trading at a $350,000,000 market cap. And by the way, we have over $60,000,000 of Bitcoin on the balance sheet, 610 Bitcoin in the treasury, 56,000,000 of adjusted EBITDA on a 115,000,000 total revenue. So I think Hive is an incredibly attractive buy, especially with a strong catalyst of growth this year. Our revenue was 105,000,000 from Bitcoin mining and 10,000,000 of HPC AI revenue. We did hit 20,000,000 ARR in May.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So this will continue to grow as we expand our HPC strategy. 25,000,000 gross operating margin. So it has been a strong year considering we navigated the halving. This is our fiscal year is starting from March 31. So this year are effectively all post having economics.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

I wanna point that out. A lot of our peers have a December 31 year end. Ours is March 31. So this is effectively full post having on the economics. And by the way, 53% net cash to Bitcoin per share.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

We're trading at a dollar 75 today. And we've realized 22% ROIC in the last twelve months. So I think we've done a phenomenal job navigating post halving economics, which are bearish, of course. And as the industry gets ready to torque up, I think it's gonna be a phenomenal year for Hai. Let's jump into it.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So again, how do we realize these numbers? We prioritize ROIC in our capital deployment strategy. We've got prudent stable growth across cycles, bare and low. We mined over 1,400 bitcoin in this fiscal year. By the way, we hit 11.5 heads of hash in June, and we've been mining 5 and a half Bitcoin daily since.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So we are doing $600,000 a day of revenue right now. We're at $200,000,000 ARR. That 600,000 is about $5.50 on the Bitcoin and over 50,000 a day on closer to over 60 actually on the HPC business. So $200,000,000 in annualized revenue will be approximately 3% of the global Bitcoin mining network when we hit 25 megs a hash. And, of course, we've got our vertically integrated HPC strategy where we're building and operating tier three data centers as well as the GPU cloud, our video cloud partner.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

We're targeting high value contracts. On our HPC business, we've got over 5,000 GPUs right now. In our GPU cloud, we hit that $20,000,000 ARR figure. Let's jump into it. Next slide.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Here's an overview of the Bitcoin mining footprint. 440 megawatts of green energy globally between Sweden, Canada, and of course, Paraguay. As mentioned, we're we've been mining five and a half Bitcoin per day since we hit our 11.5 x a hash target. We're over 1% of the network today. That's today.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And we're scaling on track to get to 25 x a hash by this fall. We're hoping to get the benefit of the doubt multiple that some of our peers get because we brought on an exahash per week for five weeks in a row as we grew from six exahash to 11 exahash in the last month. Check out the press releases. We put out a press release every single time we get an eggs a hash. And again, we've accomplished this with a disciplined ROIC strategy.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Last December, we announced our landmark purchase with Bitmain at $14 a terahatch for the s 21 plus hydro as well as we have some air cooled units. Those are coming online. We targeted sub one year ROI on these ASICs at $55 hatch price after a $05 cost in our models. So we are very much primed to have a lucrative, next three years ahead of us as we mine. We have modeled to be profitable up to $21 cash price.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And so we very strategically and selectively deployed our capital, not only for high ROI, but for positive cash flow through to the next halving. And by the way, we accomplished this by having the lowest G and A per Bitcoin line in the sector, of course, which is shored up by our best in class uptime. Next slide. So a beautiful overview. This is our Paraguay site.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

It was a 200 megawatts. You actually see the substation in the bottom right hand corner. And then above, you've got 10 air cooled buildings, and you see all the civil work has been completed the 100 megawatts of hydro miners. So the air cool is done. That got us to 11.5 bags of hash a few weeks ahead of schedule.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And the second 100 megawatts is the hydro on the left and that'll come online this summer. That was actually just in Paraguay couple weeks ago to oversee the progress. Very exciting. Our first few containers are actually being installed. I mean, the hydro mining containers, both the dry chillers and the actual hydro containers are on-site.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

We put that in a press release a couple days ago, and so that's ramping up. We're expecting that hatchery to start coming online next month. So it'll be very, very exciting standby for updates there. And, of course, the third 100 megawatts is in Balenciaga, our other site. So work is also completed.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So we're fully funded for the 25 exahash. I wanna highlight that. We're fully funded for a growth of 25 exahash. We fully paid for all the ASICs to get to 18 exahash, and so those are arriving week over week throughout the summer. And we have all our deposits in place for the 25 extra hash as well.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Again, we're fully funded for that. So I'm very proud of our team as now we're just bringing the hatch rate online. We've effectively executed on the infrastructure. Let's talk to the next slide. So here's a layout for all the analysts out there of how our four forty megawatts is allocated between Canada, Sweden and of course Paraguay.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And on the right hand side is our tier three footprint. So we have GPU cloud running at Stockholm, Montreal. And now with the announcement of the data center Toronto we're acquiring, it's a 7.2 megawatt IT infrastructure load and a five and a half megawatt IT load assuming 1.32 e. What this does is this additional 5.5 megawatts of tier three compute will effectively three and a half x our HPC footprint. So we just announced the acquisition of this site.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

We have a binding purchase agreement. We hope to close on it very quickly, and we will upgrade this Toronto site to be liquid cooled for next generation GPU compute. Of course, we're gonna be a HP NCP partner. So very exciting as we scale our HPC business to go from 20,000,000 to a 100,000,000. More details on that later in the presentation.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Next slide. This is the ramp on the Bitcoin mining business. Of course, as mentioned, we've successfully completed the first phase of air cooled 11.5 exahash. Our global fleet efficiency is 20 joules a terahash today. That will incrementally increase as we bring on our hydro powered s 21 plus miners from Bitmain that are 15 joules a terahash.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

It'll bring our global average down to 18.4 joules per terahash efficiency as phase two completes this summer, and we'll get down to 17.5 joules per terahash efficiency this fall as we fully ramp. Very exciting time to be a Hive shareholder. I'd like to describe this moment in time as an elbow as a hockey stick ramps up. Again, this is a four year overnight success. We scoured the globe for cheap hydro energy at scale and we found it in Paraguay.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

We have been very active as well in Paraguay. We're electrifying 18 schools in the rural regions of Venezuela. In fact, we've completed six of these 18 schools. I met with the chief technology officer, Onde, which is a national power provider. We'll be attending a YPO event that the president of the country will be throwing in September.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

In fact, the president of the country, Santiago Pena, is a YPO member. Him and our executive chairman, Frank Holmes, have a personal report. So we're very much engaged at the geopolitical level, at the infrastructure level, with the national power provider, and of course, in the community. It's just how we like to do business at Hyde. Next slide.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So taking into consideration the improving efficiency of our global fee. Once we're at 25 exahash, here's a snapshot of what it looks like. At 900 at a sorry. 900 exahash network efficiency sorry. 900 x a hash of global network hash rate.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

126,000,000,000,000 network difficulties what we're modeling here. Once we're at 25 x a hash, that works out to 12 and a half Bitcoin a day. And at today's Bitcoin price, that's $1,300,000 a day. That's over $400,000,000 of annualized revenue. It works out to over $250,000,000 of gross mining margin at a $100,000 Bitcoin.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Our cost to produce a Bitcoin will be about $42,000. If Bitcoin rallies to a $150,000 later this year, which a lot of people are speculating, it might go from a 150 to 200,000. But a $150,000 Bitcoin, we will be doing almost $2,000,000 a day. It's roughly $700,000,000 of annualized revenue and almost $500,000,000 of annualized gross mining margin. Again, we're fully funded for this growth.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

We'll be at these at 25 eggs a hash this fall, 18 eggs a hash this summer, and our market cap is $350,000,000. So I think Hive is an incredible value right now. We have 600 on the balance sheet, but we also have a pledge to buy back 1,300 Bitcoin at $87,000. So as our market cap increases, moreover, our enterprise value increases, our free cash flow increases, our cost of capital will come down. We can either use free cash flow from operations to buy back Bitcoin at 87,000 or, utilize proceeds from our ATM, in in an accretive manner to buy back Bitcoin.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So our strategy is to get our huddle back over 2,000 Bitcoin by buying back our pledge by the end of this year. You'll buy a lower cost of capital as our free cash flow from operations increases as we've had this moment to scaling. Next slide. We've got the biggest growth in this sector this year. Some of our peers have hit super scale at 50 x a hatch and tapered off and they won't be expanding.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Aside from Cypher, that's got 1.6 x growth. Hive has got 2.2 x growth for the balance of the year. And by the way, we started the year up with four x growth and we're executing on that beautifully. So we've got the biggest growth profile of the entire industry this year. It's a huge headline.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Next slide. We're also trading at the best multiple in the sense that we're trading effectively at $10 in exahash when you look at our enterprise value and where we're at at end of this year. Our peers are trading at $30.40, even upwards of $50 on exit hatch. We have moved our principal executive office to San Antonio. We are looking at US domicile.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And we believe that as we hit 500,000,000 market cap and a billion dollar market cap, we're due for rerating as some buy side funds have a mandate based on market cap or liquidity. We are a very liquid stock. Our three month average is over 10,000,000 shares a day. We hit almost 20,000,000 shares of volume on Sundays. So I really think $20.25 is your pie as we scale to 25 exahatch.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Again, we're trading a very attractive multiple to to our peers. Our market cap is, you know, under $350,000,000. And with $65,000,000 of Bitcoin on the balance sheet, I think that we're a very attractive multiple. And by the way, again, we also have the $20,000,000 of annualized revenue on HPC business. Let's go to the next slide.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So these are some of the merits of how we run the business. Again, disciplined capital allocation, we always try to source ASICs at the lowest cost. We try to buy spots so we get immediate delivery. We lead the sector in uptime. We run our ASICs through their full life cycle to maximize free cash flow, lowest G and A in the sector, and what does that yield best in class ROIC.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Next slide. And here it is by the numbers. Huge numbers, 22% annualized ROIC or sorry. 22% ROIC for the last twelve months. And you could see how this compares to our peers.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

We are effectively double the next contending companies. Alright. So things like a 12% and from there, it sort of drops off. Mara and Hut 25%. Again, we walk the walk, we talk the talk.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

It's about having discipline. We focus on ROI when we deploy our capital. If you're gonna buy a $100,000,000 at ASICs, you've got to take well over a $100,000,000 after cost. Otherwise, you shouldn't even be mining. Right?

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

You should be buying Bitcoin if you can't make money from mining. So we lead the sector. We target under one year ROI again. We targeted we effectively have an eleven month ROI from the Bitbeam ASICs after cost that we announced our purchase of a $55 hash price. That means if we run those for three years, we're free cash flow in for years two and three.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And this is just how we run the business at high. We wanna be smart. We wanna build shareholder value by having free cash flow from operations. So we could scale our business with free cash flow and not have to rely on diluted finances. I think the cheat code that emerged in capital markets over the last two, three years as dilution was ramping, a lot of companies are just buying new machines, running them, upgrading them before their end of life just so that they could show high inter quarter margin.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So I'm gonna take a moment to describe this. If you're constantly just buying the newest best machines, in the moment, you could show that you have a high margin because guess what? The latest ASIC has a better machine efficiency. It has a lower breakeven. Okay.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So you've got a good margin for the quarter. But have you ever repaid the investment of all these new ASICs you're buying? And that's what's really hard to track. Well, this slide shows the difference. If you actually maximize and get ROI on your ASICs, it's gonna show up in the numbers here.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

You can see we lead the sector by a long shot. Next slide, please. Lowest G and A per Bitcoin mine as a function of revenue for the last twelve months. Next slide. So it's low cost, but it's also high performance.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

We've got the best uptime in terms of Bitcoin mine for Exahash in the whole sector, third party analysis from Anthony Powers' power mining analysis. Next slide, please. And of course, the AI business, the recent announcement is 7.2 megawatt data center in Toronto. This will provide five and a half megawatts of liquid cool compute. We plan to to undertake this conversion.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

We look forward to closing on this facility in the very near future. We just announced the binding purchase. This will grow our effective HPC footprint by 3.5 x. Again, we currently have over 5,000 NVIDIA GPUs operating. That's over 4,000 a series cards, 344 h two hundreds sorry, h one hundreds and 504 h two hundreds.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

We hit the 20,000,000 ARR target, and we are looking to hit a 100,000,000 ARR. If we were to populate the Toronto facility five and a half megawatts with h two hundreds using current market utilization and market rates for h two hundreds that we're seeing, it would add approximately $80,000,000 ARR to our top line. So it's a very exciting time to be a Hive shareholder, and we are having our HPC business in Buzz. And so Buzz is a fully owned subsidiary of Hive. It'll be a pure play HPC focused vertically integrated business where we build, own, and operate the tier three data centers along with the GPU cloud.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Next slide. This shows the growth and how we've got there. Again, we scaled up. We had the 4,000 actually, it's closer to 4,200 NVIDIA a series GPUs, 344 h one hundreds. We hit 13,000,000 ARR.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

We brought on the NVIDIA h two hundreds. That actually got us to 23,000,000 ARR. And, of course, with the advent of the Toronto Data Center, we'll be able to scale build GPU cloud and get to our 20 sorry, a $100,000,000 ARR in 2026. Very exciting time. Next slide.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And so I'll turn it over to the longest standing CFO in the crypto mining industry, Mr. Darcy DeVeres.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

Thank you, Wyden. Good morning, everyone, and thank you for joining us today. This reporting period marks a significant milestone for our company as we have transitioned our financial reporting framework from IFRS to U. S. GAAP.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

This change aligns with our strategic objectives, enhances comparability with U. S. Listed peers and supports our potential growth ambitions in U. S. Capital markets.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

As this is our first earnings release under U. S. GAAP, I want to emphasize that while the core fundamentals of our business remain unchanged, certain financial metrics and disclosures may look different due to accounting presentation differences. We remain committed to transparency and will continue to provide clear, consistent reporting as we move forward. As this is the first time reporting under U.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

S. GAAP for HIVE, I want to highlight three key U. S. GAAP adjustments that will be seen in these newly presented statements compared to what we've had in other years. Those are functional currency, digital assets and leases.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

So functional currency change, Hive changed its functional currency from Canadian dollars to U. S. Dollars for the parent company. This was driven primarily by a shift in financing activities to U. S.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

Capital markets. This change aligns with U. S. GAAP, which prioritizes financing indicators. The adjustment affects several areas, including warrant and convertible debt classification.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

One of the bigger ones is digital assets. Under U. S. GAAP, Hive now records digital assets at fair value with gains and losses recognized directly in profit or loss. This contrasts with IFRS, where only losses were recorded in profit or loss and gains flowed through other comprehensive income unless reversed.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

This will greatly assist the markets in comparability between ourselves and our peers. The third one is leases. While leases remain on the balance sheet under both standards, U. S. GAAP requires different income statement treatment.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

Rent expense for operating leases and amortization plus interest for financing leases. This is similar to the IFRS treatment for finance leases. Fiscal twenty twenty five has been a transformational year for HIVE. Over the past year, HIVE has executed on a strategic plan to scale massively from 4.7xahash at the March to 6xahash at the end of this year, and now we're sitting at 11 exahash, moving towards 15 by mid-twenty twenty five and 25 exahash by late year. We continue to leverage our green energy hydroelectricity with our expansion into Paraguay.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

We're also growing our Bitcoin production through the upgrading and purchase of cutting edge ASIC machines throughout the year and the Exahash growth that we have experienced. We are also modernizing. We have now improved our structure with our U. S. GAAP headquarters, U.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

GAAP reporting and improved governance structure. Also, our high performance computing diversification, Buzz's HPC growth into sovereign AI and liquid cooled GPU clusters, adds a high margin digital infrastructure vertical and aligns with national and enterprise demand for secure, scalable compute. Collectively, these milestones mark a transformation from a modest digital mining firm to a globally scaled green first Bitcoin infrastructure and high performance computing leader. With that said, let's walk through the results. We are providing certain non GAAP measures in our presentation today.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

The company believes that these measures, why not a substitute for measures of performance prepared in accordance with U. S. GAAP, provides investors an improved ability to evaluate underlying performance of the company. These measures do not have any standardized meaning prescribed under U. S.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

GAAP and therefore may not be comparable to other issuers. Further details are found in the management discussion and analysis for the three and twelve months ended 03/31/2025. As you can see, Hive ended the March 31 year with 165,600,000.0 common shares, 3,300,000.0 options, 7,100,000.0 RSUs and 3,200,000 warrants outstanding. On to the next slide. For the fiscal year ended 03/31/2025, Hive recorded $115,300,000 of revenue and a $56,200,000 profit measured in adjusted EBITDA.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

This is driven by a production of fourteen fourteen bitcoin equivalent produced. Moving on to the next slide. We take pride in maintaining a healthy balance sheet as always. Our cash position was CAD23.4 million as of 03/31/2025, in addition to $181,100,000 in digital currencies, consisting primarily of bitcoin. This is down slightly from the prior period due to the strategic use of our Bitcoin to fuel our accelerated operation expansion in Paraguay.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

We also had $15,300,000 in amounts receivable and prepaid, an increase from the prior period. Total market value of our strategic investments remained strong at $24,100,000 We have a strong net cash position and healthy working capital to support our operations and growth objectives, with a current ratio of 3.7 calculated as current assets divided by current liabilities. And on to the next slide, let's shift our focus to our gross operating margin on a year over year basis, comparing the annual results of this year compared to last year. Our gross operating margin, which is calculated as total revenues minus direct operating and maintenance costs and high performance computing service fees decreased in absolute terms to $25,100,000 in the most recent year compared to $37,500,000 in the prior year results. One significant factor to consider is the impact of the happening event that incurred in Bitcoin in April of twenty twenty four.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

This event led to rewards earned by miners in the current year being halved compared to the prior year. The gross mining margin is influenced by several additional external factors. These include the high mining difficulty currently being experienced, the reduced amount of digital currency rewards received by miners, which is now half of what it was a year ago, and the market price of the digital currencies at the time of mining, which has been higher compared to the prior period. In the most recently completed year, we are reporting a net loss of $02 per share compared to a net profit of $0.29 per share reported for the year ending 03/31/2024. In looking at our gross operating margin on the next slide, on a Q4 quarter over quarter basis, Q4 quarterly results of this 03/31/2025 period compared to the prior year 03/31/2024 period, our gross operating margin, which is calculated again as total revenues minus direct operating and maintenance costs and high performance computing service fees decreased in absolute terms to $8,800,000 in the most recent year compared to $15,600,000 in the prior year Q4 results.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

Again, a significant factor to consider is the impact of the happening event that occurred in April of twenty twenty four and also as has been discussed, the difficulty impact and the mining margins that we are experiencing. In the most recently completed 03/31/2025 quarter, we are reporting a net loss of $0.34 per share compared to the net profit of $0.55 per share reported for the Q4 period ending 03/31/2024. On to the next slide. Taking a look at our year over year revenue, we generated total revenue in fiscal twenty twenty five of $115,000,000 versus $114,500,000 in the previous year. The strong stable revenues compared to the fiscal year twenty twenty four was assisted by much higher average bitcoin prices compared to last year.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

This is despite the reduction of bitcoin mined as a result of the halving in April of twenty twenty four and also from the increase in contributions from our high performance computing revenue, which has increased close to 300% compared to last year. We were also able to overcome industry pressures due to the continuing rise in bitcoin difficulty hash rates over the past year. As mentioned previously, our gross mining margin decreased in absolute dollars to 25,100,000.0 or 22% in the most recent year compared to $37,500,000 or 33% in the prior year. And on to the next slide. In looking at our quarter over quarter revenue, we generated total revenue in the fourth quarter of fiscal twenty twenty five of $31,200,000 versus $36,900,000 in the previous year's fourth quarter.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

The revenues compared to the same period in fiscal twenty twenty four can primarily be attributable to the higher average bitcoin price currently, which is more than double what it was in the comparative quarter last year. However, this increase is offset by a rise in bitcoin difficulty hash rates over the past year as well as the impact of the halving event on the current period's results. As mentioned previously, our gross mining margin, which equates to our revenues minus direct operating and maintenance costs and HPC computing service fees, decreased in absolute dollars to $8,800,000 or 28% in the most recent quarter compared to $15,600,000 or 42% in the prior year comparative quarter. Moving on to the next slide, Comparing our current fiscal Q4 quarter to the previous Q3 quarter, we generated revenue in this quarter of fiscal twenty twenty five of $31,200,000 versus $29,200,000 in the previous quarter. The slight increase in revenues versus the prior quarter was impacted by an increase in the price of bitcoin, resulting in higher revenue from digital currency mining and also higher high performance computing.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Is there questions, guys?

Bill Papanastasiou
Vice President at Keefe, Bruyette & Woods (KBW)

Aiden. It's Bill Pavnestatu from KBW. Can you hear me?

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Yes, I got you loud and clear.

Bill Papanastasiou
Vice President at Keefe, Bruyette & Woods (KBW)

Thanks. Well, thanks for taking my questions and congrats on the sequential margin expansion and strong execution in Paraguay. I was just hoping to get some more color on the recent data center acquisition. It seems like a nice bolt on addition to the portfolio. Any chance you happen to have a time line of when you expect to get the liquid cooling installed and when the site will ultimately come online?

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Yes. So that site 7.2 megawatts would yield about 5.5 megawatts of compute, assuming a 1.3 PoE. And something like a nine to twelve month retrofit with liquid cooling to bring that compute online. And it effectively would triple the megawatt footprint of HPC compute currently today. And, yeah, that's that's kind of the outlook for us. It's very exciting.

Bill Papanastasiou
Vice President at Keefe, Bruyette & Woods (KBW)

Awesome. And apologies if I missed this. Can't really see the slide deck on my end. But was there any discussion in terms of the type of hardware that you guys are considering? I think there may have been some mention of NVIDIA Blackwell in the past.

Bill Papanastasiou
Vice President at Keefe, Bruyette & Woods (KBW)

Just curious how you're weighing, deploying kind of latest versus next generation equipment things.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Yes, exactly. That's a great question. So it will be a function of what yes, the slides were off, but it's a function of what will be available on the market at that point. So for example, today, you can order B200, but there's talks that in Q1 twenty twenty six, you'll have b 300 available. So it'll sort of be an economic analysis because, as you know, when the newest model comes out, you know, we've heard that black b 200 is fetching over $5 an hour right now.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And and so if there's a b 300 that's out, you know, typically, you'll wanna gravitate towards getting the latest model GPU that's available. So what that's why we haven't we haven't specified that. It's more sort of an exercise in capacity and analysis knowing, for example, you know, a one k cluster of Blackwell, so ten twenty eight GPUs, is a little over 1.5 megawatts, a little bit more power intensive than, say, an h 200 cluster, which is a little under one and a half megawatts. So, yeah, once as we as we sort of get closer to locking in the PO, then we'll provide more specificity on exactly which model GPU that we intend to operate.

Bill Papanastasiou
Vice President at Keefe, Bruyette & Woods (KBW)

Awesome. And then just lastly, you're making all this progress on bitcoin mining, getting some buybacks in ash before the November and now scaling to that $100,000,000 kind of annualized run rate on AI HPC. Is there a particular revenue mix that you know, the team is is trying to achieve? And and how could that differ going forward once you kind of execute on on both of those businesses and and scale?

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Yeah. That's a good question. I I wouldn't call it so much of a a revenue mix because as we're positioning Buzz as a pure play HPC company, that will sort of, you know, be a 100% HPC AI revenue. And then Hive will moreover be I mean, that's that's a wholly owned subsidiary of HIVE. And so how how do we unlock shareholder value that entity will will evaluate?

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And and, course, HIVE is operating Bitcoin mining data centers globally. So we're sort of bifurcating, I think, perhaps a good way to think of it rather than looking at it as a mix. But as you could see from last year's financials, it was about ninety-ten. If we did get to next year, and we hit a 100,000,000 on buzz and 400 plus million on high, like, you know, even at $55 hash price or 25 as a hash, you're you're well over 400,000,000 of ARR just on the Bitcoin mining. And so it's still an eighty-twenty mix if you did want to kind of have a ratio based on those projections.

Bill Papanastasiou
Vice President at Keefe, Bruyette & Woods (KBW)

Awesome. Appreciate all the color and congrats on all the progress.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Thank you. Yes, it's been an awesome year so far. Look forward to continue the momentum.

Nathan Fast
Nathan Fast
Director of Marketing and Branding at HIVE Digital Technologies

All right. Thanks for those thoughtful questions, Bill. Our next question comes from the line of Mike Koneys from H. C. Wainwright. Mike?

Mike Colonnese
MD & Senior Technology Analyst at H.C. Wainwright & Co., LLC

Hey, good morning, guys. Congrats on all the progress at Paraguay and the recent Hashrate ramp. Great to see. Just following up on Bill's question around the 7.2 megawatt Tier three data center in Toronto. Can you just share what the cost of acquisition was and what the related cost to do the full retrofit will be?

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So we haven't good questions, Mike. We haven't publicly commented on that yet. So we'll be providing that color in the near future. So stay tuned.

Mike Colonnese
MD & Senior Technology Analyst at H.C. Wainwright & Co., LLC

Got it. Fair enough. I appreciate that.

Mike Colonnese
MD & Senior Technology Analyst at H.C. Wainwright & Co., LLC

And as it relates to monetizing the 5.5 megawatt of critical IT load there once you're fully up and running, How should we think about that as it relates to customer demand? Are you looking at more on demand type deals or contracted revenue streams? Just trying to think through the revenue of that additional 80,000,000 that's projected to come online as it relates to time line and underlying contracts?

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Yeah. So right now, I mean, we've got 5,000 GPUs to about 5,100 actually, 4,300 A Series cards and 344 h one hundreds and 504 h 2 hundreds. And those are, for the most part, rented. I think it's about 80% utilization, and that includes some GPUs that are on longer term contracts for for six months and longer, and and some are on aggregators. So it's we're looking to with the sovereign strategies, we sort of discussed that more in our most recent press release.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

We're really looking to embrace enterprises in Canada and and working with the government as well as researchers to take on more long term contracts. And that's sort of what we're alluding to with the sovereign strategy. As you know, there's a large AI grant in Canada, and so that's one of the initiatives. And working we've got some and by the way, we haven't opined on the price of the DSM yet for competitive reasons. But we'll be providing more color on that at the right juncture.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So yes, we've really sort of seen strong demand, and that was how we crossed that $20,000,000 threshold. And so if you think about it with the say, if if it was, a a b 300 cluster and say that's 1.8 megawatts for a 28 GPUs, you effectively can fit 3,000 e three hundreds in that cluster. And so we're we're actually renting out 5,000 GPUs now. So if you think of the quantum of GPUs, we're we're already renting out a lot. The A Series cards, of course, are much less power intensive than the Blackwell.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So we're confident it's sort of within our ramp and footprint. You just kind of have more power intensive cards that drive more revenue per unit. But in terms of total quantity of cards, bringing on that additional 5.5 megawatts of IT load is actually less than what we have online in terms of number of GPUs.

Mike Colonnese
MD & Senior Technology Analyst at H.C. Wainwright & Co., LLC

That's very helpful. Appreciate the detail. Just last one for me. Could you remind us of the cutoff point as to when you can repurchase those pledge Bitcoin with Bitmain?

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Yeah. It's to the end of this year. A little bit past the end of this year. Right. We did we didn't specify who the vendor is with the pledge, though. That's the only clarification.

Nathan Fast
Nathan Fast
Director of Marketing and Branding at HIVE Digital Technologies

Next, we'll go to Tom Shinsky from Cantor. Tom, please unmute.

Thomas Shinske
Equity Research Associate at Cantor Fitzgerald

Hi, Adam and team. This is Thomas on for Brett. Thank you for taking my question. First, I just wanted to touch on the regulatory situation in Paraguay. I as of June of last year, they put through a tariff against crypto mining companies.

Thomas Shinske
Equity Research Associate at Cantor Fitzgerald

I wanted to see if there was any impact there and how the cost of power through your Paraguay sites compares to the facilities elsewhere?

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Yes. So things are sort of in a holding pattern until 2027, but we're actively evaluating the landscape, but also working closely with Onde, which is a national power company. I was just there two weeks ago and met the CTO. We're going down again in September for actually a YPO event. The president of the country is in YPO, and he's actually hosting a YPO event.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So we sort of embrace the government and and utility company and just the regulatory framework in Paraguay at different levels. You know, we we meet with with governors and mayors when we when we go down there. And and so I think there's an education process. Actually, I I just met with the minister of industry and commerce when I was there a couple weeks ago as well. And so I think as they understand the industry more, They were optimistic they'll sort of embrace it more.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And we have a long term view that we expect with them embracing it to sort of have a more attractive power pricing trending in the right direction, if you will, is probably a good way to put it. And yes, so I would say that even with the citation of the June tariff, the power prices there are still more attractive than a lot of jurisdictions we've looked at. So yes, it's good. And I think that the revenue or sorry, should say, gross mining margin reflecting the hash rate from Paraguay, stay tuned, it won't be too long because it's this current quarter, which will be reported in about six weeks. So yes, you'll see you'll sort of see the gross mining margins from this current quarter as we've brought on those 5x of hash for period end June, which I believe is reported in about, yes, six weeks from now.

Thomas Shinske
Equity Research Associate at Cantor Fitzgerald

Awesome. Thank you for the color. That's very helpful. And then just one more, if I may, this general CapEx throughout fiscal twenty twenty six. As we think about ramping to 25x a hash and also potential expansion within the Hive Cloud business, How should we think about cadence of CapEx throughout 'twenty six?

Thomas Shinske
Equity Research Associate at Cantor Fitzgerald

And how much of that should we attribute to the potential expansion of the cloud business versus getting to 25x hash by Thanksgiving?

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Yes, you bet. So 25x Hash is fully funded. As you know, there was $6.10 bitcoin on the balance sheet as of our May production report, right? So that's sort of more fiscal year end. So that's approximately a little over $60,000,000 And so yes, we've effectively fully paid for all the ASICs that have been arriving and that will continue to arrive through the 18 Exahash.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And so that's why we have shipments arriving weekly and deposits are in place. You sort of deploy your capital and you make those final payments for ASICs right before they ship, right? So the summer inventory, that's all fully paid for and that's shipping. And so final deposits for the fall inventory, right, the third phase, going from 18 to 25 exahash, those will be made in the fall. So it's all fairly near term.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And I believe on the and that's on the ASIC side of things. And again, we're using the strategic applied strategy for that. And then on the construction, I believe it was discussed that we actually had a sort of a VTB arrangement where $31,000,000 of the $55,000,000 purchase price was actually spread out over six months with $5,000,000 monthly payments, five and change, 31 divided by six. And so those continue from, I believe, April when we closed the deal into about October. So that's nice and spread out.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So yes, that addresses the bitcoin. And as for the cloud, as mentioned, we haven't discussed the purchase price yet, although it very attractive. I believe I can say that confidently. And as with any construction project, right, you'll have you'll preorder some equipment, and then the rest of the CapEx will sort of be spread out over that nine month term. So we can provide more color on that.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

But really, with the GPU business, you don't actually need to pay for the GPUs until you receive them, unlike crypto mining. And in fact, we have net 30 with, you know, I think it's fairly well known. We work with Dell and Super Micro as preferred OEMs. And we have net 30 payment terms. So if the GPUs don't arrive in nine months, we don't need to pay for them until ten months, right?

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So the CapEx on the HPC or specifically to Toronto data center, would say, is sort of further down the road. And in the interim, we're fully funded for the 25 with ASICs effectively arriving weekly between now and the fall with 25xahash on the horizon.

Thomas Shinske
Equity Research Associate at Cantor Fitzgerald

Thanks, Aydin, and congrats on all the progress.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Thanks, guys.

Nathan Fast
Nathan Fast
Director of Marketing and Branding at HIVE Digital Technologies

Thank you again, Thomas. Next, we'll take a question from Fidor from B. Riley. Fidor, the floor is yours.

Fedor Sha
Senior Research Associate at B Riley Financial

Yeah. Hi, then Frank and the team. First of all, congratulations on strong progress you're making on both HPC and Bitcoin mining fronts. And going back to your slide with Robert De Niro, Frank, I'm hoping the institutional crypto adoption continues to the same pace we saw with Catalysis spreading through Latin America. But anyway, I wanted to dive deep a little bit, kind of follow-up question on Toronto HPC data center.

Fedor Sha
Senior Research Associate at B Riley Financial

Stepping back to bigger picture, would be helpful if you could share your scale and roadmap for for this data center particularly and kind of what does growth look like from from here and how you're thinking about the expansion of composition of your fleet at this location? And also, how should we think about financing in terms of preferred options, maybe I could do that split for for this for for the overall HPC segment? Thank you.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Yeah. So the HPC can be financed in in different ways. For example, there's, as you mentioned, there's debt. Some we've not done this, but just sort of providing color on how others in the industry have approached it. Sometimes you can do a, not quite a vendor financing, but like it's no secret Dell has DFS, which is Dell Financial Services.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So they'll actually sort of lease you the hardware, the GPUs, right, which are the most CapEx intensive. And by the way, like just rough numbers, GPUs, latest generation GPUs broadly are roughly about 30,000,000 a megawatt, right, for HPC. And so there are different mechanisms to I mean, you can buy them outright in cash, which is what we've done in the past for the GPUs that we have. And then as far as the data center construction financing, again, we sort of haven't disclosed the exact budget or acquisition cost yet. It will be attractive and competitive, which is why we love this acquisition.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

We're really excited about bringing it to the market. And as I mentioned earlier, Fedor, I think part of your question was scale or capacity. So 1.3 PUE, it's effectively 5.5 megawatts of IT load, which effectively, I think it's on one of the slides in my section, the exact page number, I don't recall, but effectively 3.5x of what our current capacity is, right? So that's really exciting. And then I believe I was addressing Mike's question just in terms of capacity of number of GPUs.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So if you have like an h well, I mean, people would be buying h two hundreds instead of h one hundreds now, but, you know, that's those are a one k cluster. Again, 28 GPUs or a 128 nodes with the h GPUs per node. And it's actually n minus one, so you always have to have one node for switches. So you'd have a 127 times eight. Anyway, it's just over a thousand GPUs.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

That's about 1.3 megawatts for H series, and Blackwell b 300 is expected to be a little more power intensive, close to 1.8. So you just sort of take your IT load. So you could always take your your sort of gross utility load, right, at 7.2 megawatts, divide that by 1.3. And then if you want to say, well, how many black wells could I fit in there? You'd sort of divide by conservatively one one point eight megawatts.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And, again, it depends. This can be b 200, b 300. So that all matters as well. And or if it's going to be an H200 cluster, then divide by 1.3 megawatts and then multiply our GPUs by the prevailing market rate on what they're renting for, for hour. Like h two hundreds are renting at $3 an hour right now on demand. So, yeah, I hope that was helpful.

Fedor Sha
Senior Research Associate at B Riley Financial

This is super helpful. And my my second is about your customer profile and contracted dynamics. Can you kind of paint a picture of what your average HPC client looks like primarily serving on demand, smaller scale customers, or do you have a mix that includes some large enterprise clients as well? And, kind of what's the typical duration you've seen on your HPC agreements? Are these mostly shorter term flexible arrangements or are you starting to lock in longer term commitments with, with scaling at Toronto.

Fedor Sha
Senior Research Associate at B Riley Financial

And kind of looking forward, how are you thinking about the the evolution of your customer base? Is it fair to assume you're you're actively pursuing larger capacity contracts and trying to move up market to bigger enterprise clients who can commit to, say, more sustainable and longer duration agreements? Thank you.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Yeah. Generally, the answer is yes to the sort of numerous questions. That's sort of underlined by the sovereign strategy, and that's what we're getting at by working with governments and research institutes throughout Canada, viewing data release as sovereign asset and working with those enterprises and research institutes that want to keep that compute within the country. Actually have a obviously, I can't say who, but there's a four a sort of a former Google DeepMind guy that's training a foundational model on a on a six month contract right now on some of our GPUs. And so, yeah, we're absolutely targeting more longer term contracts.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

We've done some compute with researcher out of NYU Stern, Columbia, as well as Berkeley. And so they're all sort of doing very novel things. Some are I mean, in most most of those specific cases, it's foundational model work. One, I believe, is actually vision, like a computer vision. So, yeah, it's a lot of lot of really cool fun stuff.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And then, of course, the, you know, the balance of the compute is is with aggregators. Some aggregators are really flourishing, and and, you know, the it's it's also like having a like, when you're working with with the end users, like, we we've got a great team. And so it's giving the giving making sure the users have a good experience with the GPUs. It's not just the raw compute, but making sure that they have a good experience as well. That's sort of another key thing.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Because, know, at the at the other end, this is an actual user that's implementing and utilizing this compute. And so it's it's just key that that overall, they're having a good user experience, and and that's sort of a key takeaway if you talk to NVIDIA. You know, that's that matters a lot to them as well. So that's where we aim to aim to please, and, we're really excited about, the direction that Buzz is going.

Fedor Sha
Senior Research Associate at B Riley Financial

Thank you very much, Hayden, Dosto and of course, Frank, and continue our best of luck.

Darcy Daubaras
Darcy Daubaras
CFO at HIVE Digital Technologies

Thanks, Fedor.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Thank you.

Nathan Fast
Nathan Fast
Director of Marketing and Branding at HIVE Digital Technologies

And Fedor, time for a few more questions. Good morning, Dylan from Roth, if you would kindly unmute yourself and proceed.

Darren Aftahi
MD & Senior Research Analyst at Roth Capital Partners, LLC

Yeah. Hey, guys. Thanks for taking my question. Just to start on the Canadian data center, would there be any reason that those megawatts would come on in tiers or would you expect to energize all 7.2 slash five and a half critical IT load at once?

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Yeah. That would mostly be a function of the the retrofit process, Dylan. And so as I sort of commented on earlier, you know, you'd kinda bring that online roughly, you know, a nine month process, and that would be you know, you you you could do it all at once, absolutely, because you're you're sort of retrofitting. And and by the way, it's I I should comment. I one one important thing, it's actually a working active data center today.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

But, you know, if we wanna bring that to do liquid cooled, that's where the retrofit comes in.

Darren Aftahi
MD & Senior Research Analyst at Roth Capital Partners, LLC

Got it. And just as a follow-up, where do you stand with some of your existing sites? Are you still considering potentially retrofitting any of those to the HPC AI or are they gonna stay Bitcoin mining for the for the near term?

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Yeah. Yeah. Our our site in Sweden. We did a trip out there with some analysts, and I believe Darren saw it. We we call it Little Boden.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

It's sort of there's two data centers that we have that are across the street from each other. And the the smaller one, it's roughly six megawatts. We've identified that as a a near term candidate as well for HPC conversion. It was originally built as a GPU data center. So it's got a really good level of finish.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And so yes, we've identified that one as well. And we'll be providing more color on that. So stay tuned.

Nathan Fast
Nathan Fast
Director of Marketing and Branding at HIVE Digital Technologies

Our next question comes from the line of Mike from Northland. Mike, please unmute and proceed.

Mike Grondahl
Head of Equity sales, Trading & Research - Senior Research Analyst at Northland Capital Markets

Hey, thanks guys. Hey, Aiden, if you could just talk a little bit about the demand you're seeing for that 5.5 megawatts. Is it basically already spoken for? Or do you still kind of have to source the demand?

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Yes. I mean, right now, Mike, we just announced the data center. So we'll be providing updates on its conversion and bringing it to market. So we're doing, as I sort of, in an earlier question pointed out, it's roughly 3,000 Blackwell V300s if you were going to go that route. And we're already managing and renting out 5,100 GPUs.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So, know, although it's effectively tripling our footprint, when you just look at the number of GPUs, because they're, again, more profit dense and power hungry as, you know, time marches forward. By the way, like the GB200, 130 kilowatts per rack, and that's only 72 GPUs, right? So the GPUs directionally are getting more power intensive. So we're actually managing more GPUs today than, you know, the GPUs that we'd be bringing online. So we would provide guidance on demand, but we're it's a great bite.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

What we really like about this site, it's functioning today as a data center. So it's operational, and it's a bite sized deal that we're very confident that we could bring to market. It will fit very well within our demand pipeline. We are entertaining numerous, like our H200s are overcommitted right now in terms of, know, there's numerous groups or end users, if you will, that want to rent them with fixed contracts. And so that over demand, which is great, will tie nicely to future capacity that we bring online.

Mike Grondahl
Head of Equity sales, Trading & Research - Senior Research Analyst at Northland Capital Markets

It. Thank you.

Nathan Fast
Nathan Fast
Director of Marketing and Branding at HIVE Digital Technologies

Mike, thanks again. Time for one final question. We will go to the line of Chris Brendler from Rosenblatt. Chris, good morning. Please go ahead and unmute.

Chris Brendler
Senior Research Analyst at Rosenblatt Securities

Hey, thanks so much and congrats on the results. Fantastic. I wanted to just ask a quick question, since we're running a little long here on the mining gross margin. It's a nice sequential improvement I'm calculating here, obviously, with Paraguay coming online, but it feels like that was only a partial quarter of impact. Can you give us any sort of sense on how much the mining margin can improve in fiscal first quarter as you fully ramp the site and maybe a little bit of an outlook for the rest of or the beginning of fiscal twenty twenty six because you got a lot of low cost power coming online, more efficient machines as well.

Chris Brendler
Senior Research Analyst at Rosenblatt Securities

And we've also seen a recent improvement in the network hash rate. So any color there would be great. Thanks.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Yeah, totally. Great question, Chris. So actually, I did comment on this in a press release not too long ago. It was sort of in my quote section. And it's a really, really good question because it sort of highlights the improving fleet efficiency.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So this quarter, right, like, I again, I'm extremely proud And I was so thrilled when I went down to Paraguay a couple of weeks ago to see the completed first 100 megawatts. Just everyone and by the way, like, thanks, everyone. Great show. I think it's like 60 people dialing to this call.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

And and I know all the analysts that that follow the story so closely and and have such deep insight. As you guys all know, we brought on five exahash five weeks in a row. Right? It was it was extremely momentous. And so but to that end, all of that Hash rate growth is in the last five weeks.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So that's all in this quarter, right? So two things. First of all, the fleet efficiency, a big portion of that five exahash was S21 plus air cooled units at 16.5 joules per terahash, right? And so our global efficiency sort of this current quarter is now 20 joules a terahash. That will drop down to 18.4 joules per terahash when Phase II comes online and then 17.5 joules per terahash when phase three is completed this fall.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

So you're sort of having this graduated improvement because the the hydros that we're bringing online in phase two like, phase two is gonna be all s 21 plus hydros. And and by the way, like, they I think we put put some really nice photos in the recent press release that commemorates 11 eggs of hash. Those containers are on-site now, and they're they're being installed, which is super exciting. So that will all be 15 joule per terahash hydros. The hydros are more efficient than air cooled.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Hydros are 15 joules a terahash. S21 plus air cooled are 16.5 joules per terahash. So as we bring that those hydros online, that's what continues to improve the overall global fleet efficiency and will will land. It's actually closer to 17.3, but just put 17.5 in your models to be conservative. And and So if you go from I I believe we were coming in about 2223 coming into this quarter.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Right? And so bringing on all those S21 plus ARRIS gets us to 20. So that in and of itself, sort of from period end March 31 to period end June, right, quarter over quarter, is a 10% improvement in 10% to 15, I guess, improvement in efficiency, right? And then with with power cost, power cost, we're actually seeing really, really good power in New Brunswick. Like, interim spot pricing was as low as, like, 2¢ Canadian on some days.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

Now New Brunswick is 70 megawatts. Half of that is fixed and half of that is spot. So you're you're I'm I'm anticipating and and we've commented that spot prices in New Brunswick have been have been attractive. So I think we're looking forward to better energy prices as well. I don't want to put a number on it, but I can comment, of course, on the efficiency.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

I mean, we've disclosed all that. But I think directionally, with Paraguay coming online and spot prices generally being more attractive in the summer compared to the winter historically, yes, it's going to be I'm looking forward to a good quarter. And as you noted, difficulties dropping, which is nice. That's definitely everybody likes that. So yeah, it's looking good, Chris.

Chris Brendler
Senior Research Analyst at Rosenblatt Securities

Yes, I was looking forward to it. It's going be interesting to see how much it improves in that fiscal first quarter. Thanks so much. Congrats again.

Aydin Kilic
Aydin Kilic
President & CEO at HIVE Digital Technologies

You bet. Thank you.

Nathan Fast
Nathan Fast
Director of Marketing and Branding at HIVE Digital Technologies

Thank you, Chris. That concludes our Q and A session and our Q4 and full year twenty twenty five earnings call. Thank you, everyone, for joining. We look forward to speaking to you again soon.

Executives
    • Nathan Fast
      Nathan Fast
      Director of Marketing and Branding
    • Frank Holmes
      Frank Holmes
      Executive Chairman
    • Aydin Kilic
      Aydin Kilic
      President & CEO
    • Darcy Daubaras
      Darcy Daubaras
      CFO
Analysts
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