HIVE Digital Technologies Q3 2026 Earnings Call - Record revenue, 25 EH scale and a fast pivot into GPU/HPC with $35M ARR milestone

Nathan Fast, Director of Marketing and Branding, HIVE Digital Technologies: Hello, and welcome to today’s webcast on HIVE Digital Technologies financial results for the quarter ended December 31, 2025. My name is Nathan Fast, Director of Marketing and Branding at HIVE. I’ll be your moderator for today’s call. Before we get started on slide 2, would like to briefly note the disclosures for today’s presentation. Except for statements of historical facts, this presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as expects, believes, and similar expressions identify these statements. Actual results could differ materially, and we disclaim any obligation to update them except as required by law. For a full discussion of risk factors, please refer to our most recent SEC filings at sec.gov.

In addition to discussing results that are calculated in accordance with GAAP, we will also reference certain non-GAAP financial measures, including Adjusted EBITDA, adjusted net income, and Free Cash Flow. Management uses these metrics to evaluate operating performance and believes they provide investors with additional insight, and they’re presented for supplemental purposes only and should not be considered in isolation from GAAP results. Reconciliations to the nearest GAAP measures are included in the appendix to this presentation and in the press release in Form 8-K furnished to the SEC. I would now like to hand the presentation over to Mr. Frank Holmes for a macro recap of the quarter. Frank?

Frank Holmes, Co-Founder and Executive Chairman, HIVE Digital Technologies: Thank you, Nathan, and, welcome to the show by HIVE. I’ve got lots to share with you as the co-founder and executive chairman, and give you sort of an overview of what I’m seeing in the geopolitics around the world and some of the glitches that have happened that have really impacted, the crypto ecosystem. And I’ll give you also, somewhat of we like to call the standard deviations, that this is a great buying opportunity based just on the math of markets, that when things become overextended on the downside or upside. But before getting into this detail, I wanted to share with you, that volatility is incredible. And it’s also predictable when you take a look at it, and you update this every quarter. But the S&P daily is 1% of the time.

That means 70% of the time, it’s a non-event for the S&P 500 to go up and down 1%, and over 10 days, 3%. Gold is the same as the S&P 500, but Bitcoin is 3 times greater. And that’s something just to recognize that stocks that are in technology, a new innovation like Bitcoin, it just will experience greater volatility. Tesla used to have this 21% volatility over 10 days until it became part of the S&P 500, but you can still see that on a daily basis, it’s 4 times greater than the volatility of the S&P 500 or gold bullion. And we can also see here that over 10 days, it’s eleven percent is a normal volatility.

Strategy, which is interesting for me, is because Strategy was always higher volatility than HIVE, and now it’s, the daily basis is ±5%, but over 10 days, HIVE has a greater volatility, which surprises me, because we do not have the same balance sheet. We have a very conservative balance sheet and a very conservative, pragmatic way of managing the company’s growth. So here’s the team. They’re all working hard. Aydin Kilic, Darcy, our CEO and CFO, the longest standing, I think, CEO and CFO in the industry, so I’m very happy about that. And Nathan has joined us a little over a year ago. And now let’s get into this macro recap. Here’s the picture, and this picture is really important in respect that we grew our business from 6 exahash to 25 exahash in 2025.

And we are 2% of the global network, and you can see that one of the investment bankers there, Jamie Brown, was on the ground floor of the creation of the idea of Hive. And then you can see some of our directors are there and other key employees, our Chief Operating Officer and the President of Paraguay’s operations, and you can see Nico’s in there, and you can see Aydin Kilic, our CEO, and Johanna Thörnblad, who is the President of operations in Sweden. So we’re very proud and happy that we’ve been able to grow this business, and we still have more growth ahead in 2026. Very pragmatic and thoughtful expansion. And behind there is a 5-kilometer, but it’s a total length of 7 kilometers, 5-mile dam.

It’s the largest dam in the Western Hemisphere, and it’s able to generate about 14 gigawatts of electricity, half to Brazil, half to Paraguay. So we recently came up with our production in, in January, and that was, Bitcoin produces 191% year-over-year growth. Even though the difficulty went up, we’ve been able to maintain this substantial growth, and it’s helped us with Bitcoin coming off over the past 4 months because we have this economies of scale. We’ve also been able to drive down our fleet efficiency. And when you see joules per terahash, that really is the amount of energy that you have to pay for that’s running those machines and how the ASIC machines, how fuel efficient. And it’s really remarkable.

If you went back 10 years ago, it was about 300 joules, and now we’re down with, like, Moore’s Law, it’s only 17.5 joules, and the next generation’s gonna take this down to 11. So it’s able to manage... If you have new chips, you’re able to manage the halving that takes place in the Bitcoin ecosystem. And so we’re more than 2%, and we’re happy with that.... Steve Jobs had this wonderful speech, and in that speech at Stanford, he said, "You cannot- you can’t connect the dots looking forward. You can only connect the dots looking backwards.

So if you have to trust that the dots will somehow connect in your future, it’s important that you look back." So let’s look back at some of the dots that happened in the Bitcoin ecosystem in the past four months. On October the tenth, called ten ten, Bitcoin knockout. The total crypto market cap fell by $350 billion because it’s alleged that it’s like Tyson punch, but the Binance had a faulty algo that basically triggered wrong accounts, whatever, and they blew out $19 billion worth of Bitcoin, and this knocked off and created contagion. I didn’t see it on the front page of publications. I heard about it. I thought it was more noise, but actually, it’s come out to be quite significant. So I’m gonna show you how by connecting the dots.

So October the tenth, and our CEO, Aydin Kilic, has been at the Bitcoin conference in Hong Kong, and this made the center stage, and there was lots of conversations and interviews regarding it. It’s been dismissed by Binance, and actually they would, but what I wanna explain to you is that there was this flash crash. It was only $19 billion. No, it’s more than 10 times FTX blowup. It’s really quite significant, and that triggers margin calls in North America. And then we have ETFs. The ETFs get amplified because almost $200 billion of retail institutional money rolled into a suite of different asset managers with their Bitcoin ETF. And they’ve been really hurt with a 50% decline. They just become... They lose this thing called trust.

Really, the fact find out that supposedly a hedge fund made $1.2 billion on this flash crash, and other funds that weren’t supposed to get hurt, they got hurt, but Binance made them whole with $300 billion injection. There’s no big positive amplification to all the ETFs that felt this stress. So this was a big conversation, and Binance comes out at the end of January and discusses it. But what’s really important is that we’ve seen this before, and I know I’ve seen this in the futures market back in the early 1980s.

We’ve seen it in the gold markets, where the major banks would turn around and spoof, and but you would have a court system, and a court system would go after those traders, and then they got charged, and they were found guilty, and then fines were paid by firms like J.P. Morgan. There was that builds trust. So it’s the it just there has to be a mechanism to, if you have a rogue, they call this a algo. But I always ask, why did that algo didn’t work on April the second? Oh, it’s all because of Trump, and Trump went anti-China during that time period.

I think that’s just too easy to go blame Trump, because on April the second, those algos didn’t cause this crisis, that the magnitude that took place on October the tenth, 10/10. So that’s what’s happened. So I went back and looked at what happened in one hour, how fast it just turned around and hit, and it only grew that day. So in Consensus Hong Kong this past week, Binance’s Richard Teng breaks down the 10-10 nightmare that rocked crypto, but really doesn’t explain what hedge funds and a lot of the chatter that was there, that our CEO was listening to and giving us more color on it. It never made the front page of the Wall Street Journal, but Sam Bankman-Fried did. And this is of a factor of 10 times greater.

So it’s really disappointing, but it is what it is. And the CEO, he’s worth $88 billion according to Forbes, and other people say he’s worth $30-$50 billion. He’s got this brilliant mind, what he’s been able to do, but it doesn’t make sense that this is an unregulated combination where the exchange and the investment and broker is combined. You can’t really do that. The New York Stock Exchange doesn’t own money management. It’s like merging the New York Stock Exchange with BlackRock, and all of a sudden, then BlackRock has access to what the trades are, and the traders know what the fund flows are doing. That’s the difficulty in this unregulated finance exchange, which say they trade trillions of dollars in notional value in the Bitcoin ecosystem.

So I hope that there’s a better clarity on what takes place, but it’s four months later, and you know, it’s interesting that they come with a explaining at the end of January, and usually when these crises happen, it’s about four months later that we get a bottom in the ecosystem. But what happened after this, it’s interesting to me in connecting the dots, is Jim Chanos comes out and short the Bitcoin miners, short the NVIDIA, short the, the HPC, the hyperscalers. There’s too much debt, and Michael Burry’s coming out. He came out a couple of weeks ago again. He short this market, and it really starts to grow that there’s negativity on the ecosystem. And you can see all these headlines. "Chanos warns of AI pullback, absurd Bitcoin treasury companies." Michael Burry’s latest argument.

Chanos is going after Michael Saylor, shorting him. Michael Burry, same thing, and all these legendary people. And to me, I just look at—I remember commenting that there’s something weird, that there’s just so many people that are all of a sudden negative on the AI. But I know that the demand is so big, and the ability to build out is gonna take more time, so I don’t see this, this, the level of this negativity. But the finance breakdown of the ecosystem, that flash crash was part of this. And I always love this scene.

It’s from the Superman movie at the time, and it’s basically saying where they have these monkeys that are out there making all the chats on Instagram and YouTube and X and Super- this is about Superman’s credibility is being destroyed. Well, the same thing happened out of nowhere. All this negativity was showing up on Instagram and YouTube and X. And so I just... It was a short-term fuse, but you look for, as a money manager, is this sustainable? Is it real? And it became the trade. Well, let’s look and connect the dots.

We go back to October 10, and you can see, starting at the beginning of October, the stocks have this big rise, and CoreWeave goes through the roof, and we see HIVE is on a tear rising up, and Marathon has the bounce, and we see Core Scientific is rallying. But then, after October 10, starts this finance algorithm. It’s like COVID contagion to tech stocks. And you can see what took place, with this, this domino effect, and this impacted Bitcoin prices coming off. And I still see every day on CNBC, regarding the negativity of the hyperscalers, and the Bitcoin treasury companies. But there is these inflection points that happen. They last about 4 months. And then we have another cloud that happens at the same time.

The U.S. Senate committee delays the crypto bill after opposition from Coinbase’s Brian Armstrong. Why? It’s because a lot of the banking system in America is not really cognizant of China’s war against the U.S. dollar. They’re just not aware that China has taken the BRICS nations and weaponized that trade is not in U.S. dollars, it’s in the yuan, and don’t own one, and forcing and pushing that these central banks devalue to basically sell their U.S. dollars. And now we’re seeing gold become the biggest foreign exchange in many of these countries’ central banks.

We’re seeing now the thought process of, of offering a reward mechanism, or would it be like a money market fund for stablecoins, so that the U.S. government would be able to have their stablecoin, and places like Coinbase, they’d be able to pay, they call it rewards. But really, to me, in the money management business, with—it’s like a money market fund. But it’s very significant for the growth of mutual funds and then ETFs. This would be very significant for the crypto ecosystem and also for the U.S. dollar, because we’ve seen the success of Tether. Tether’s phenomenal, that it—bad countries, bad policies, like Venezuela, like Argentina, Lebanon, you can see that Turkey, the currencies are being devalued, and so people turn around and they bought Tether stablecoin, and they’re protected with U.S. dollars.

Now they’ve been, the Tether gold coin basically has been growing at a phenomenal rate. So we can see hundreds of billions of dollars going into those, the success of what Tether has. But Tether doesn’t pay a coupon, and therefore it’s not a money market fund, and therefore it’s not a security, so it’s able to become a dominant, like a U.S. dollar currency, that people can digitally move money all around the world without the big banks turning around and delaying the payments and saying there are AML/KYC concerns, et cetera, which is rightfully so. But it’s becoming just so onerous to move money around, especially between countries, and repatriating. So if I am a worker here from Mexico and my family needs money back in Mexico, I can do it much faster with a stablecoin.

I can much faster than any other way, and the repatriation of that money helps these other families in other countries. Well, along comes the stablecoin, and Coinbase wants to pay rewards. They want to basically make it like it’s a money market fund. The banks don’t want that because they want their stablecoin to get big. And before they turn around to allow a coupon, and they keep saying, "Well, it’ll cause a crash. People will leave the banks, and they’ll go to these stablecoins because they’re paying a coupon. It will hurt banks." You know what? I listened to this, and it happened a long time ago when banks weren’t able to pay the coupon in 1980 as interest rates soared to 20%, but money market funds were.

Money market funds grew dramatically, which only helped the growth of mutual funds and equity funds. So that wasn’t a big loss to banks. But what did happen is the S&Ls, they were allowed to pay a higher yield, and the banks didn’t like that, and they grew. Then you had an S&L crisis. So I think it wasn’t a banking crisis so much as the banks do not want competition. They do not want this fintech, and really Bitcoin is a spoke in the wheel of fintech. Coinbase is a critical spoke in that wheel of building fintech around the world, is the way, in my opinion, as a money manager, looking at what’s going on. We’re just going through this process. I think that paying rewards, it will win, it will get through, and this will be the reprieve.

But it’s a battle between the self-interest of the banking industry and the lobbying groups and fintech growing. So we have this backdrop. We have the carry trade unwinding, which is about $500 billion throughout the month of December, especially January. So that’s been behind us now. We have the finance, the igniting a huge meltdown in the Bitcoin ecosystem, breaking that trust factor. And then we have this last bit, Coinbase. Well, let me share with you, we are down two standard deviations, and, and it’s only happened a couple of times. You can see when China did its attack on the crypto ecosystem, and we had Bitcoin fall and the miners fall, and then America end up benefiting, becoming the biggest Bitcoin miners in the world.

Then we had the Celsius, the FTX blowup, and we saw the prices fall 1 and then 2 standard deviations. Now we’re down to 1.64 standard deviations, and that says to me that mathematically, what is 1 standard deviation over a 20 rolling date period? It’s about 17%. So it’s suggesting here that we could get from here a rise of 30%-40%. We could get a higher rise if the act gets passed, and with where they can pay rewards on stablecoins, that would be a big boom, and we would probably see this go up 2 standard deviations. So you can see that in a bullish cycle, it goes above 2 standard deviations more than it falls.

But we are at an inflection point of accumulation is the smartest option, not to capitulate and sell out. So then I asked, let’s look at HIVE. Same thing, you can see that HIVE was up at the very top here. Going into the beginning of October, we had a big run because we went from 6 exahash to 25 exahash, and the world loved it, and we’re going through this re-rating until the Binance faulty bot they have blew up their system. And then we fell, and we had a rally, and now we’re down once again over 1 standard deviation, and I think that we’re an attractive buy from based on just the math of markets.

Something else that’s really important, we have never leveraged our balance sheet with incredible debt to go buy Bitcoin or to go and do contracts with for high-performance computing. We have not done that because we’re conservative because we know the volatility, we know that there’s that building out Tier III data centers is fraught with construction difficulty, you have to be very pragmatic and thoughtful. So we’ve not done this huge debt financing on our balance sheet. But what we have done is what we make the press release today is that we’re HIVE isn’t face isn’t chasing AI fairytales. It’s building towards $140 million annualized GPU cloud revenue from measured steps.

Today’s $30 million 2-year contract secures the initial 504 GPU Manitoba rollover in partnership with Bell Canada, lifting HPC ARR. The reason why I share this with you, because a year ago, we had a run rate of about $1 million a month. Then we got it up to pushing $2 million a month, and this is going to take us to $3 million a month, and our long-term vision is $2 million-$10 million a month. And we’re doing it in a measured way. This is a Tier 1 data center we bought. It’s going through the transformation to Tier 3, and we get people knocking on our door that we know that if we had it up and running today, we have contracts for 5 years to buy and just give us big contracts.

So it’s interesting. Our strategy is just different than other people that are going out, getting a hyperscaler, giving you about a $0.14... We look at the math of this, a 10-year contract, a 15-year contract, but we’re trying to get as much of the upside besides, I think, Tier HPC colocation, that we know we’ve been able to build with high margin than people around the world. We’ve built 10,000 customers in 80 countries are using our, our chips and mining by the hour. Some give us contracts for longer time periods. What we’re seeing now is that once this is built, this will be sold.

That, I mean, we’ll sell the asset, but the demand for our GPU chips at a much higher prices than where Bitcoin revenue is per hour, will be done. So we feel very excited about it and straightforward of how our vision, it’s just different than other people. And that’s where we’re staying focused. This is another build-out. This is the data centers that we have. And, as you can see... We have them in New Brunswick, and this will go through a conversion, and we bought more land, and this will go from 70 megawatts. What’s interesting is it’ll be about 50 megawatts, we’ll actually be able to do the HPC.

’Cause a lot of people don’t realize that when you go from a Bitcoin mining to Tier 3 HPC or Tier 4, the bulk of your your energy is used for air conditioning. 40%, not 5%, but you’re now 40% of the electrical bill because those NVIDIA chips consume a lot of power. They give off tremendous amounts of heat. They have to be up 24/7. It’s a very different business model, but we’re plodding along, and we feel very good about, and our President is seeing, you know, nothing but big demand coming in. If we were up and running today, everything would be taken for our chips at very attractive contract prices. So it’s now about being pragmatic.

You get your chillers, you start—you have to pre-order because the transformers, there’s a, a, a backlog for transformers. There’s a backlog for the, for the equipment you need for building substations today. There’s a backlog for, the special server racks, and what you find now with HPC, with the NVIDIA chips, the server racks are heavier. So now you have to build cement floors that are thicker. And so it’s, it’s not easy, to say, "Okay, we’ll just convert." No, it’s very thoughtful, and that’s what we’re doing as we’re managing our cash. This is to share with you that data center are continuing to grow, and they’re a very big part of the GDP growth in America, and the GDP growth in Canada.

And what people have to be listening to is that it’s not just OpenChat that’s looking for these data centers, it’s also the military spend. And the NATO countries have now gone to 5% of their GDP. Well, a lot of the new weaponry needs data centers that are high-performance computing, and if it’s military, they need Tier 4, which is another level of security and backup. So we see globally, the demand for these data centers is not just these wonderful new platforms like Perplexity or Claude, and Grok. I love Grok, I love Claude, and OpenChat. It’s military spending. And then you have countries are saying, "You know, we only want our data centers and data in our country. We want it sovereign." So this creates another pent-up demand.

So we think we’re in the sweet spot of being the biggest player in Canada at this stage. We’ll grow this and move this, and we’ll become the biggest player in Paraguay. That’s our vision. This is just to give you some color about the hyperscalers are ramping up their CapEx, and this gets all this negative news. I think that who’s making this negative news is just really helpful for a short-term trade of being short. But the Meta and the Microsoft, they’ve not been spending like... Well, I should have had here is Oracle, too, and CoreWeave. That spending will continue. I see the reason for is the backup demand is just immense.

So here is to give you an idea of the future shock, the scale and speed of AI disruption. $100 billion-dollar hyperscalers are pouring into the AI infrastructure. That’s just in America. You gotta think about the rest of the world. 25 billion dollar market impact, revenue shift from NVIDIA dominance to Chinese domestic chip makers. These are all big, real issues in the global race. What China’s done for the past 10 years has exploded in sources of energy. They have been building hydro dams. Spain has been unwinding hydro dams, 2,000 of them, relying only on solar and wind, and that’s created their own energy crisis.

But you’re not seeing that in China, who continues to build from hydro and dams, rerouting glacier water from the Himalayas down the rivers to basically create these massive dams, and this hydro is so key, so now they can ramp up their data center business. Here in America, we’ve got more HPC data centers, but we’ve got to ramp up both sources of energy and be innovative and creative with that. And now it’s nuclear energy is cool. Now, nuclear energy is not the bad word. So things are changing, but the idea, it’s unprecedented. And every year, I spend a week at Harvard with 180 CEOs from 80 countries doing cases, and it’s interesting to see that AI dominated all the cases. A leadership disruption, what Microsoft had to do in Europe.

Greece is now trying to do a huge educational push. OpenAI is partnering with them. The Onassis Foundation is partnering. A former McKinsey consultant went to Harvard. They’re doing everything to fast-track the kids’ education, so that they can participate in this growth in OpenAI and anything to do with AI. This is recognizing the future demand for accelerated computing and graphics processing, and NVIDIA began designing GPUs specifically tailored for to meet these needs. You know, their big move was their pivot, was 2010, and at Harvard, one of the cases was on Jensen. What I didn’t know is that Jensen’s parents sent him to a private school in America, and they didn’t realize it was a reform school, a Baptist reform school.

So that made him really get tough, and resilient, and that’s what the whole idea of NVIDIA. But they made this big pivot in 2010. 2026, you know, we’re talking about, what? 16 years ago, and then AMD is now related, but the CEO of AMD was a part of another case, and she is related to Jensen. And she has a PhD electrical engineering from MIT, and as part of their pivot, and AMD is to go in this space, but they’re still very far behind where NVIDIA is. So I think we’re, we really are in a secular bull market on the adoption and the build-out necessary for AI, and to stay, you know, look to buy the dips. I want to thank these investors.

Two Sigma Investments is a quant shop, and Chicago Park Employees, and Tidal Investments, Citadel Advisors, Schwab Corporation, that’s individual investors. And it just amazes me that Schwab gets sold down and all the fintech, just recently, this negative narrative, because fintech is going to be disruptive in AI for all their client business. I don’t think so. I think if anything, AI is going to probably help on the overall compliance and the complexity of compliance and monitoring and things like that. And we’re seeing KPMG has to be audited by independent auditors, and KPMG is going after their auditors for not getting lower audit bill. KPMG is ahead in using AI. So to say that AI is a bubble and it’s all over, is just market chitter chatter for trading, to short.

So I remain very, very bullish. There’s Aydin with the chief minister in Paraguay, very important in the overall business development to be very close. We regularly go meet with ministers in Paraguay. Our president, Gabriel Lamas, and I met with the ambassador from Paraguay, who’s based in Washington, D.C., on what their vision is, and they have a big vision of making Paraguay the dominant AI infrastructure build-out for all of Latin America. They need other sources of electricity. They know that. They hope to attract solar farms and solar independent electrical grid. They’re looking at change—they changed totally the cost of energy is dropping. Long-term contracts, something they didn’t give when we first went there, but now they are.

We are building out Tier 1 data centers so that they have a runway for Tier 3. During this process from Tier 1 to Tier 3, you need to get dark fiber built over the country, just like we know this has to happen in Eastern Canada. You can’t move the data from Tier 3 data centers around the world unless you have dark fiber, because these large language models have so much compression of data in them. So that’s what we’re doing. Now, I want to turn it over to Aydin Kilic to really give you an in-depth analysis of the company. I hope that my presentation today is to give you some color about this incredible meltdown that’s happened. What was the catalyst?

We’re probably mathematically at the bottom, and hopefully, going forward, I believe that we’re gonna trade much higher, and HIVE is in a strong balance sheet position to monetize that growth with 10 exahash in Paraguay, and so huge upside in Canada and Sweden in the HPC business. Aydin, take it away.

Aydin Kilic, CEO, HIVE Digital Technologies: Frank, thank you very much for the insightful macro summary. Now for an executive overview of this quarter. It was a really exciting quarter for us, and this is a photo from a recent visit to Paraguay. This is Minister of Foreign Affairs for Paraguay, Rubén Ramírez Lezcano, who you may have recognized in the recent Status of Forces Agreement signing between Paraguay and the USA, with, of course, Secretary Marco Rubio. More on that later. Okay, so it was a record quarter for HIVE, $93 million of total revenue. Of that, $32 million in gross operating margin. Now, while we did have a $91 million net loss, that was mostly non-cash charges, $57 million in depreciation.

Of course, we brought on a lot of new hardware online in Paraguay, as we scaled to 300 MW, and also a $31 million non-cash charge on change in fair value derivatives, mostly driven by changes in Bitcoin price. So on an adjusted EBITDA basis, $5.7 million, and ending the quarter with 481 Bitcoin on the treasury. So again, record revenue for Hive and really proud of the team. Let’s jump into the next slide. On an annualized basis, we realized $385 million ARR for the quarter. 879 Bitcoin mined. We realized 25 exahash of installed capacity, operated an average of 22.8 exahash for the quarter as we had ramped up towards 25 exahash.

With the colder months, you have some temporary, curtailments due to, the very cold weather in the, Canadian operations. New Brunswick can occasionally, Lachute, but very happy, Paraguay was performing with, nearly 100% uptime. And of course, being in the southern hemisphere when it’s cold and there’s cold snaps in the north, in the southern hemisphere, it’s actually summertime. So, being geographically diversified has its benefits, ladies and gentlemen. 440 megawatts of operating capacity with an additional 100-megawatt PPA. We announced the signing of that, late last year, and, long lead items such as transformers have been ordered, and we expect that to come online, September of this year.

Now, on the Buzz side, another very solid quarter, with $5 million revenue for the quarter, keeping track of the $20 million ARR, and we are on track to reach our target of 11,000 GPUs on the Buzz cloud by the end of this year. Currently, 5,000 GPUs, we’ll be adding 6,000 GPUs this year. As well, that target of $225 million ARR, I think between the GPU cloud business and the HPC colo, is on track as well. And we have some very exciting news. Next slide. Massive progress on that front. 70% increase to our HPC ARR. The $20 million ARR will be at $35 million ARR at the end of this quarter, and that comes from the signing of a two-year contract for our incoming NVIDIA Blackwell B200 GPUs.

So we announced in November that we ordered a 63-node cluster with NVIDIA Blackwells. They were destined for Manitoba, our first site with Bell. These GPUs are now fully contracted. We’re receiving a deposit this week, and the GPUs will go live this quarter in March, and therefore, be cashless. We will be ending the current quarter, period end March 31, with $35 million ARR, again, which is a 70% increase from the current quarter, or reporting quarter of December 31. So huge news. Craig Tavares and the Buzz team have done an absolutely phenomenal job. And I also want to point out that this is a very nimble, agile, CapEx light strategy that allows us to scale the GPU cloud business with the infrastructure that Bell AI Fabric is bringing online.

And we’ve had very, very attractive single digit lease to own, financing on the GPUs themselves. So no CapEx up front for the GPUs. The entire full value of the GPUs, we are effectively leasing with a $1 buyout. So it works out like a finance, much like when you finance a car, with zero down and single digit interest. So very attractive. Again, Craig and the Buzz team have done an absolutely tremendous job, and more great news to come. Please stay tuned. Let’s hop into the next slide. We have a vertically integrated growth strategy. We have the land, the power, the data centers, whether it’s ASICs or GPUs, we build, we operate, and we optimize.

So on the Bitcoin mining business this quarter, we realized $350 million ARR, mining approximately 10 Bitcoin a day in our Tier 1 data centers globally. In the HPC business, as mentioned, our, our new benchmark is $35 million ARR in the current quarter, March 30, end March 31st, and that will scale to $225 million. We’re going to have a closer look at that very shortly, and that’s a Tier 3 data center strategy. Another nice Easter egg that we are providing the street an update on is we realized $14 million of value from our Bitcoin. As you may recall, we had a substantial amount of Bitcoin, almost 1,400 Bitcoin pledged at $87,000.

What that meant was we put up our Bitcoin at $87,000 to buy our ASICs, which was for expansion to 25 exahash in Paraguay. Once that Bitcoin was pledged at $87,000, that was it. However, we had the option to buy back the Bitcoin at $87,000 when Bitcoin rallied above that price. And so we did that and realized $14 million of values, which is great news, and we call that our dynamic HODL strategy. We’re going to provide a bit more color, but I just want to clarify, there’s no cash call, there’s no obligation, there’s nothing like that. It’s a free call option, is what it was. Locked in the price at $87,000. Any upside beyond that, it was at our discretion, our call option to exercise, and we crystallized the $14 million of value. So very exciting news. Next slide, please.

A overall footprint of the HPC, various operating jurisdictions and data centers, and you can kind of see how it ramps up to $225 million, which is the target for the end of this year. Between GPU cloud and HPC, the HPC conversion would be for New Brunswick to be converted to 50 MW of critical IT load as a Tier 3 data center, adding $85 million of ARR to $140 million coming from the GPU cloud spread out over the various Canadian facilities... and showing how we increment from the current 5,000 GPUs to 11,000 GPUs. Again, we recently announced that 504 GPU contract. So let’s go to the next slide. So here’s what the growth of the HPC revenue looks like on a time series basis.

We provided this projection last quarter as well, and as you can see here, for every 1,000 V200 GPU cluster, we’d be adding $20 million of ARR. Now, keep in mind, the prevailing market rate at the time was about $2.20 per GPU per hour, and so this ramp from $20 million to $140 million ARR came along with 6,000 NVIDIA V200s being brought online. And then in addition to that, the $85 million estimated ARR from the conversion of New Brunswick to hyperscale and colo. However, next slide, please. Due to the very strong market demand, the realized value of the GPU contract that the Buzz team secured was 30% above forecasted prices.

So what that means is, where previously we projected 20 million ARR per 1,000 GPUs, we realized $15 million of ARR for 500 GPUs. So that is tremendous, 30% above forecasted. Again, this is, liquid-cooled GPUs, and, this works out very well. Here’s an illustration of what that does for our projected revenue. Let’s hop to the next slide. I do want to say this is a potential, and the team did a tremendous job. There’s strong market demand right now, and so this is a blue sky slide, where if we were to scale the rest of the 6,000 GPUs at the same rate that the current deal was secured at, it would actually bring the GPU cloud ARR to potentially up to $200 million, by the end of this year.

And then in addition to that, roughly $85 million from the NVIDIA Colocation, $285 million potential. Now, again, we’re going to stick with our baseline projections on the previous slide. Just tremendous job by the Buzz team, where they realized the 30% higher contract value due to driven strong strong market demand. But it’s not just having strong market demand. Let’s hop to the next slide. Craig and the Buzz team have done a phenomenal job building out the Buzz HPC cloud, which was awarded bronze on ClusterMax, which is we’re in very good company with other very reputable clouds in the bronze category. And you’ll note a lot of peers actually were again underperforming or even unavailable and some very well-known clouds in those categories that Buzz outperformed. Next slide.

You know, I recently had a call with an analyst who didn’t quite grasp what that meant. Well, when you’re just renting GPUs, bare metal, what that means is, you know, the user has to use an SSH key to get secure access into a GPU environment. They have to install the operating system, and really, it’s just bare bones. So not everybody, if you’re a model builder or researcher, that’s different. That’s, you know, loading up an operating environment and clustering GPUs yourself is different than actually doing your LLM work. So what you want is this to be done for you. So you’re getting a managed AI service. You have Kubernetes, you have Slurm, and these are two integral components to having a proper cloud.

So it’s very easy for you to have this elastic GPU resource, whether you want 1, 8, 32 GPUs. When they’re properly orchestrated, they all work as one elastic computing resource. And so that is the virtue of having proper cloud technology, which the Buzz team has done a remarkable job. And so that’s how we’re able to attract these great clients and have strong demand. So again, phenomenal job by the Buzz team, and really, I think there’s going to be some more exciting announcements in the months to come. So stay tuned as we execute and march toward those revenue growth targets. Next slide. So on the Bitcoin mining side of the business, for the recent month of January, we did about 9.6 Bitcoin a day, again, 440 MW globally.

We lead the sector in low GNA per Bitcoin mined, maintaining optimized ROIC, Bitcoin modeling, Bitcoin mining model. Let’s go to the next slide. So, as you know, we’ve got another 100-megawatt PPA that was announced in Paraguay. Paraguay is very strongly aligned with the U.S. In December, Minister Rubén Ramírez Lezcano signed the Status of Forces Agreement with Marco Rubio, Secretary of State for the U.S., in a very momentous occasion. So just shows the very strong alignment between Paraguay and the U.S. And Paraguay is really emerging as, I believe, one of the strongest U.S. allies, not only in Latin America, but globally. The SOFA, Status of Forces Agreement, is only held by a handful of countries globally with the U.S., and so really emphasizes Paraguay as a stable and safe jurisdiction for foreign investment.

We see a very bright future for Tier 1 and Tier 3 data centers in Paraguay. Stand by for some very exciting updates over the course of the next few months as well, as we continue to have a very bullish outlook on our investment and expansion into Paraguay. Next slide, please. This is a summary of, of course, our 440 megawatts of operating capacity worldwide, and then the additional 100 megawatts we’ll be bringing on. It’s actually phase three of our Yguazu site in Paraguay. Next slide. Okay. Here, we’re going to talk about that $14 million in realized value from Bitcoin pledge. As we previously discussed, we had pledged Bitcoin at numerous prices, and we had a large pledge of approximately 1,400 Bitcoin at $87,000.

So what that meant was, when we purchased our ASICs, we put up Bitcoin when it was $87,000, and we had the opportunity to buy it back at that same price. We redeemed our Bitcoin at $93,000, at $110,000, and $123,000 with respect to the pledge, and on that, we realized a value of approximately $14 million. Then we took that realized value and translated it into approximately 3,800 Bitmain S21 XP air-cooled, which then replaced our Buzz miners, which very recently, as we’ve seen, a contraction in hash price. Those Buzz miners have faithfully served us in hash for years and years. Approaching end of life, they’ve been upgraded. So what it did is, it upgraded and increased our global fleet efficiency from 17.5 to 16.7 joules per terahash.

What does that mean? We used our pledge strategy to get a cashless realized value of $14 million, turned that into over 3,000 new generation ASICs, and effectively lowered our global cost of mining in a bear market by 5% through dynamic hurdle treasury management. So it’s just how we operate at HIVE. We’re, again, deeply analytical. We very much study hash price and have a dynamic hurdle strategy that allows us to realize value beyond our mining, but also through treasury management. So I hope this is really helpful for the analysts. In addition to that, we still have 540 Bitcoin at the $87,000 strike price. Now, with Bitcoin at about $66,000 as of time of recording, that doesn’t mean we have to put up any money. It’s downside protection.

We already did not pledge a Bitcoin at that price. So in the current climate, it’s downside protection. If Bitcoin happens to rally in the next couple of months beyond $87,000, we can realize further value. So, really happy with how this all played out. Again, we’ve been through numerous bear markets. HIVE has been through two Bitcoin halvings and Ethereum merge. We built our own ASIC miner with Intel. You learn a lot along the way, when you’ve been through it all. So, let’s hop into the next slide. Of course, mining economics have contracted a bit. We had the calamity from 10/10. You know, the structural errors where, you know, the collateral coins held by Binance were effectively shorted, and that led to auto deleveraging in October tenth.

And Bitcoin dropped from 126 to 105 thousand. But moreover, all those auto deleverage positions, you know, a lot of people got washed out. Binance put up $300 million to make some people whole. A lot of retail investors took a hit, though. And recently, Binance put a $1 billion to help support Bitcoin at the $60,000 floor. So really it was worse than the FTX crash, and it’s just for people to be aware, why did Bitcoin sell off? And again, there’s obviously broader market headwinds where we’ve seen a risk-off environment. And so as a result, we’ve updated the annualized mining margin analysis for all the shareholders and anyone watching this podcast.

So at $30, $35 and $40 Hash Price, here are your projections. So, current difficulty of 126 trillion with Bitcoin at 60,000, the left column, you’ve got a $30 Hash Price, well below where it is today. Today, Bitcoin is about $35 Hash Price and, if and then with Bitcoin at 80,000, we have a $40 Hash Price. So let’s just start on the left column. Even in a more bearish scenario, $30 Hash Price... So by the way, we did see Hash Price slip down to $27 in last week when Bitcoin hit down to $63,000. Keep in mind, difficulty was still 141 back then. We saw a Flash Crash at $27 Hash Price. And so, anyway, I just want to give context.

Where has hash price been? Has it been as low as 30? Yes, for a moment in time. So nevertheless, we projected even at $30 hash price, we still have an annualized mining margin after direct operating costs of about $90 million. So still healthy margins. At $35 hash price, that mining margin is under $35 million, and at $40 hash price, $180 million. So, this helps you have an outlook of what it could look like in a contracted Bitcoin environment. You know, like, you know, I saw, Richard Teng, the CEO of Binance, actually speak at Consensus Hong Kong, today, actually....

You know, his accounting of it, he was quite stoic, and he mentioned that you have these near term measured in months, and these calamities that happen in crypto. But you know, when you look at the year’s horizon, you know, the asset class consolidates and has grown in value. So it is another headwind that we will navigate. Again, having low G&A, you know, a very best-in-class mining operation amongst our global sites and great fleet efficiency. Again, that upgrade basis was done on a cashless basis, $14 million in realized value. I’m very proud of the HIVE team for all of the great scaling and very judicious and, in my opinion, expert-level Bitcoin mining. Next slide.

Just, again, this is a really helpful visual, just sort of like a math textbook. What is, what is the fundamentals of the Bitcoin mining? You know, a lot of people understand it, but do they truly understand it? And so, really what you’re trying to do is ROI in the first year to year and a half, and that’s shown in the blue section. Your Hash Price does eventually commoditize. More Hash Rate comes online, and there is an implicit break even and therefore end of life cycle. So your power cost, as that goes up and down, the higher your power cost, the, the shorter your x-axis, your horizon of useful economic life. The lower your power costs, the longer you can mine, therefore, the long you can Free Cash Flow. So anyways, it’s just something to be aware of, of how does crypto mining work?

By design, yes, you do upgrade your machines every 3-4 years, but we run them for as long as possible. Keep in mind, our Buzz miners, those came online in 2022, so all those Buzz miners have been mining for almost four years now. Let’s hop into the next slide. Again, you know, a big part of our ROIC-driven ethos, also having low G&A. So let’s go to the next slide. Not all of our peers have reported yet, but just based on those that have, again, our lowest G&A in the sector. By the way, I do want to point out, if you compare on a year-over-year basis, our G&A is up about 80%. However, our revenue is up over 300%. It is over, over tripled.

Our corporate margin is about $30 million. This quarter is up about 40x from a year ago, and the corporate margin was $700,000. So the point is, even as we’ve scaled the business dramatically, our GNA has not grown nearly as much. And so again, we maintain that lean and mean mindset. And by the way, we have a Bitcoin mining business and an HPC business, so very proud of the entire executive team. We’ve had to huddle over nine time zones every single day. We’re in two hemispheres. We’re in multiple continents. Let’s go to the next slide. Also, best value.

If you look at our peers, where they’re trading on a EV to exahash multiples higher than a $3 billion multiple, everybody’s going to say, "Yeah, but everybody else has HPC and land and power." So do we, you know, refer back to the tremendous growth that we’re experiencing, and that we further have projected for the rest of the year on the HPC business. And stable and steady cash flows, even in the sort of temporary bearish Bitcoin mining climate that we see. And of course, Bitcoin, a very cyclical asset class. You really make hay when the sun shines, and so we’ll be ready for the next bull run when it comes. But in the meantime, we’ll be cash flowing. Next slide. Darcy, longest-standing CFO in crypto mining. Over to you. Thank you.

Darcy, CFO, HIVE Digital Technologies: Thank you, Aydin, and good morning, everyone, and thank you for joining us today. I will be walking you through the highlights of the quarter. We are providing certain non-GAAP measures in our presentation today. The company believes that these measures, while not a substitute for measures of performance prepared in accordance with US GAAP, do provide investors with an improved ability to evaluate the underlying performance of the company. These measures do not have any standardized meaning prescribed under US GAAP and therefore may not be comparable to other issuers. Further details are found in the management discussion and analysis for the three and six months ended December 31, 2025. Starting on the next slide, HIVE ended the December 31, 2025 quarter with 243.1 million shares, 2.6 million options, 13.6 million RSUs, and 3 million warrants outstanding.

I’ll now walk through our financial results for the quarter ended December 31, 2025, beginning with key operational and financial metrics. Q3 represented a quarter where we continued to execute operationally while navigating market volatility in digital assets. Our focus remains consistent: disciplined capital allocation, operational efficiency, and cash-oriented returns on invested capital. Let’s start with the headline financial outcomes on the next page. For Q3, we generated $93.1 million in revenue, with approximately 95% coming from hash rate services on our Bitcoin side and nearly $5 million contributed by HPC operations, demonstrating the scale we’ve achieved as we continue ramping toward higher hash rate and HPC expansion. Adjusted EBITDA remained positive at roughly $6 million, reinforcing that our operating model generates cash despite cyclical pricing conditions.

Operational output remains strong, with approximately 884 Bitcoin equivalent produced, which is up from 719 in the prior quarter, supported by stable operations, strong uptime across our sites, and the execution of our Paraguayan expansion. At quarter end, we held 481 Bitcoin on the balance sheet, reflecting our hybrid strategy of liquidity management and strategic digital asset exposure. These numbers reflect disciplined cost management, a focus on efficiency, and the benefit of our diverse global foot, footprint. Now, let’s on the next slide, take a look at how this operational performance translates into our balance sheet. HIVE takes pride in maintaining a healthy balance sheet. Turning to liquidity, we closed the quarter with approximately $14 million in cash and $14 million in digital currencies, bringing total current assets to about $91 million.

Current liabilities stuck at approximately $52 million, providing us with a healthy working capital position. This balance sheet supports our dual growth strategy, expansion in Paraguay and scaling our subsidiary Buzz HPC, while maintaining financial flexibility. Our strategy remains conservative on leverage and disciplined on capital deployment. With that context, let’s look at how our earnings metrics have evolved, starting on the next slide. Shifting our focus to our gross operating margin on a year-over-year basis, comparing the results of this quarter to Q3 last year, our gross operating margin, which is calculated as total revenues minus direct operating and maintenance costs, and HPC service fees increased to $32.1 million in the most recent quarter, compared to $5.3 million in Q3 last year.

In this most recently completed quarter, we are reporting a basic loss of $0.38 per share, compared to a net income of $0.53 per share reported for Q3 last year. This reduction in earnings per share is largely driven by non-cash accounting impacts, such as the accelerated ASIC depreciation tied to our expansion in Paraguay, unrealized losses on investments and digital currencies held on the balance sheet, and changes in the fair value of derivatives. Taking a look at our revenue increases year-over-year on the next slide, we generated total revenue in the third quarter of fiscal 2026 of $93.1 million versus—sorry, $29.2 million in the previous year’s third quarter. On a year-over-year basis, revenue growth was supported by higher production scale and operational uptime.

Year over year, we saw a significant improvement in gross operating margin, expanding from roughly 18% to about 35%. This reflects the benefit of our efficiency initiatives, though it continues to move with Bitcoin pricing and network difficulty. It is important for investors to understand that our margin profile is heavily influenced by external variables, whether this be hash price, power costs, and market volatility. While internally, we continue to focus on controllable drivers like uptime, fleet efficiency, and SG&A discipline. Even in volatile market conditions, our goal is to maintain a structurally stronger operating model. We’re focused on expanding the structural margin, not chasing cyclical upside. If we zoom in to just the last 2 quarters, you’ll see our continued strength on the next slide.

Comparing our current fiscal Q3 quarter to the previous Q2 quarter, we generated revenue in fiscal 2026 Q3 of $93.1 million versus $87.3 million in the previous quarter. A slight increase in revenues versus prior quarter was impacted by continued increases in Exahash capacity from Paraguay, in spite of digital asset price movements and changes in network difficulty. Our gross operating margin decreased to $32.1 million, or 35% in the most recent quarter, compared to $42.4 million, or 49% in the prior quarter’s comparative. These quarter-over-quarter comparisons show margin compression relative to Q2, primarily reflecting digital asset price movements and timing effects rather than structural changes in our business. Operationally, our facilities continue to perform well with strong uptime and efficiency metrics. What you’re seeing here is market sensitivity.

This is economics of the cycle, not a change in the trajectory of the business. As we scale toward higher hash rate and benefit from ongoing efficiency upgrades, we expect operating leverage to improve over time. And on the next slide, I’d like to remind our stakeholders that our net income is comprised of our operational earnings or cash flow... plus our investment earnings, which includes realized and unrealized earnings, which often includes non-cash charges. Our Adjusted EBITDA for this quarter, ended December 31, 2025, was $5.7 million, compared with Adjusted EBITDA of $82.9 million for the December 31, 2024 period. The largest contributor to the high Adjusted EBITDA in the prior year was a $77.4 million unrealized gain on digital currencies. I will highlight again that Adjusted EBITDA is a non-GAAP figure.

For this completed quarter, we experienced a loss of $91.3 million compared to a net income of $68.2 million in the previous year comparative. On earnings, year-over-year comparisons include significant non-cash impacts. Specifically, we have accelerated ASIC depreciation tied to the Paraguayan expansion, which reduces accounting earnings in the near term. This accounting treatment aligns depreciation with asset utilization but does not materially impact cash generation. Adjusted EBITDA, therefore, often provides a clearer representation of underlying operating performance. On the next slide, the quarter-over-quarter view tells a similar story. Quarter-over-quarter earnings are affected by depreciation timing and fair value adjustments related to digital assets. Our adjusted EBITDA in this third quarter of fiscal 2026 was a profit of $5.7 million versus adjusted EBITDA profit of $31.5 million in the previous 2026 Q4 quarter.

In the third quarter of fiscal 2026, we experienced net loss of $91.3 million, compared to net loss of $15.8 million in the previous 2026 Q2 quarter. Operational KPIs, including uptime, efficiency, and production, remained strong throughout the period. Our internal focus is squarely on cash ROIC rather than accounting volatility. Accounting noise should not be confused with operating performance. Q3 fiscal 2026 was a solid quarter for HIVE. We delivered strong revenue, expanded margins, and maintained a robust balance sheet. Our discipline, fleet expansion, and cost control measures continue to position us well to compete in a challenging environment and capture opportunities for growth, both on the hash rate side and on the high performance computing side in our data centers.

I want to thank our local loyal stakeholders and encourage them to continue to follow our dual engine expansion efforts, both in hash rate services and HPC operations.

Nathan Fast, Director of Marketing and Branding, HIVE Digital Technologies: Thank you, Darcy. That concludes the presentation for today. We will now begin the question-and-answer portion of our call. Analysts on the line, if you could please click Raise Hand when you’re ready with your questions. We’ll begin to choose and ask you to unmute. Our first question comes from the line of Darren from Roth. Darren, if you’d kindly unmute, the floor is yours.

Darren, Analyst, Roth: Yeah. Good morning. Can you hear me?

Nathan Fast, Director of Marketing and Branding, HIVE Digital Technologies: We can hear you.

Darcy, CFO, HIVE Digital Technologies: Yep, we got you.

Darren, Analyst, Roth: Perfect. Congrats on all the progress. 2 questions, if I may. Just as you kind of, you know, push forward on your, on your HPC strategy, can you kind of maybe benchmark how you’re thinking about the thought process of returns with AI cloud versus colocation? And maybe what specific metrics, whether it’s payback period, return on invested capital, et cetera, that you’re kind of making those decisions off of. And then second question, you mentioned in the, I think, release about New Brunswick, and you kind of mentioned specifically Tier 3 hyperscaler. Is that put in there to sort of benchmark the level you want to build to, or do you actually have interest from hyperscalers? And I’d be kind of curious about the level of interest there. Thank you.

Darcy, CFO, HIVE Digital Technologies: Yeah. Thanks for those questions, Darren. This is Aydin here. The ROIs, typically on the GPUs, are approximately 2.5 years after direct operating costs, and we have a lot of experience operating GPUs going back to the Ethereum mining days. Moreover, having had AI cloud revenue on our income statement for the past three years, we had 38,000 NVIDIA A series GPUs, A40s, A6000, A5000, A4000. So we’re still running 4,000 of those cards, and 34,000 of those cards we were able to sell at 80%-90% of face value, and that’s what those proceeds went to upgrading and buying H100s and H200s. The point is, we don’t just talk about it, we’ve done it, and so we’ve seen the demand ebb and flow in GPUs, but they have strong residual market value.

Where you’re able to ROI in, call it 2.5 years, but have these cards potentially be worth 60, 70, 80% of their value after 3 or 4 years, we’ve seen a huge uptick in demand for H100s, as you’ve likely heard. And so the demand comes in two ways. One is the hourly rate that the GPUs rent for goes up, but in turn-

Aydin Kilic, CEO, HIVE Digital Technologies: ... the market price for people purchasing the GPUs goes up because people realize you can get more cash flow from them. So it’s a attractive business, I believe, because if you have the proficiency to do so, if you have the cloud technology platform, which we have and we’ve demonstrated, and there’ll be a lot more, updates and exciting news to come as we bring more GPUs online and march towards that 11,000 GPU cloud target. And, with that, you know, crest over that $200 million ARR target, in the slides. We believe that it’s an accretive business, because the residual value, the GAAP ROI in the GPUs, plus you have GPUs that have strong residual value, so you come out well ahead. So I think that answers the first half of your question.

The second half of your question, we actually talked about the conversion of New Brunswick in the previous quarter. We bought 32 acres of land adjacent to the site. Engineering design has been advancing since then, and so we had been, we have been in talks with groups that are interested, and so there are different ways to deliver power, powered shell built to suit. And so I can’t get into any more specifics other than what we’ve already disclosed, but a sort of market rate of what gets us about $130 a kW a month for New Brunswick is a secondary. You have primary, secondary markets. New Brunswick is a secondary market, and so that’s where that run rate of approximately $80 million ARR comes from, for about 53 MW of IT load.

But do stand by for updates as we advance our designs and, our conversations. We just wanted to acknowledge to the street that that is moving forward and, is not to be forgotten. It’s still part of the roadmap and part of the game plan, but stay tuned for more updates on that. Does that cover it all for you, Darren?

Theodore, Analyst, B. Riley: It does. Appreciate it, Ivan.

Aydin Kilic, CEO, HIVE Digital Technologies: You bet. Thank you.

Nathan Fast, Director of Marketing and Branding, HIVE Digital Technologies: Thank you, Darren. Next, we’ll go to the line of Theodore from B. Riley. Theodore, please unmute. The floor is yours.

Theodore, Analyst, B. Riley: Thank you very much, and good morning to everyone. I wanted to just, like, ask about current break-even price for Bitcoin mining operations, assuming all-in cost to mine, not only power. And additionally, I’d like to understand how Bitcoin at current levels influences your capital allocation decisions for AI and HPC infrastructure. And if you can, if you could outline your expected CapEx spending over the next one, and or two quarters with any detail on the split between mining and AI HPC investments, but also would be super helpful. Thank you.

Aydin Kilic, CEO, HIVE Digital Technologies: Yeah, definitely, Theodore. So I think it’s quite evident that 2025 is the year of scaling our Bitcoin mining business, having brought on 300 megawatts in Paraguay, scaling to 25 exahash. So that reflects a lot of capital deployment in that business unit. And what you’ll note from our investor presentation, that we just debuted and, of course, last quarter. This year, 2026, our focus is on scaling the HPC revenue from $20 million ARR to $225 million ARR. So for 10x, and how do we accomplish that? Expanding the cloud from 5,000 GPUs to 11,000 GPUs, which in my section was detailed, growing that revenue from $20 million to $140 million ARR.

Then, of course, bringing on the conversion of New Brunswick to Tier 3 HPC for our scalar co-location, which at $130 a kW on 53 MW of IT load, gets you to about $80 million ARR. So directionally, you can see where the capital deployment is being scaled. I do want to take a moment to acknowledge, though, that with OEM vendor financing on our GPUs, we’re able to get lease to own. So effectively, equal lease payments over 36 months with a $1 buyout. So effectively a finance with single digit interest rates, which is very, very attractive. Nothing funky like some of our peers have done with pref shares, and warrants, and all this, you know, convoluted mezz financing. It’s just very attractive.

And so we’ve been able to scale that, that, GPU cloud business, of course, in the partnership with Bell AI Fabric, Canada. That data center capacity, we’re building the cloud on, co-located premises with Bell. So again, that allows us to operate a CapEx-like, high margin GPU cloud business. And so we do have the 100 megawatts in Paraguay that we announced, and we announced that PPA late last year, and so long lead has been ordered, the substation, the design. So that’s, that’s a long-tail project because, you know, of course, Bitcoin mining economics right now, we’re, we’re looking at $30-$35 hash price. So we, of course, are proceeding, very carefully. But what I do wanna point out, is just remind everybody that we had our, recent press release where we sent...

Where we’re sending nodes to the largest telco player in Paraguay to do a proof of concept for HPC AI. And we’re gonna be launching GPUs out of an existing Tier 3 telecom center in Asunción, which is the capital of Paraguay. So we’re taking meaningful strides to actually realize and bring HPC compute to Latin America by partnering with an existing data center, sorry, telco provider with Tier 3 data centers. Much like we’ve found success doing that in Canada with Bell, we’re doing it with the largest telco player in Paraguay. They’re actually owned by a multinational NASDAQ-listed company. That is directionally where we’re also taking things in Latin America. So that 100 megawatts that we’re bringing online, we are really looking at the ability to build a Tier 1 infrastructure today.

So the high voltage, the switch gear, all the power distribution, and that infrastructure can be used for Tier 1, i.e., Bitcoin mining, or can be expanded upon with chillers and gen sets and everything else that you need for Tier 3 for future HPC conversion. So we’re looking at evaluating a roadmap where we could do both, in Latin America. But for right now, we’re building the power infrastructure to power that additional 100 megawatts of land. But that is not massively CapEx intensive to buying compared to buying ASICs or certainly not building Tier 3. So I would say the biggest CapEx will be building out New Brunswick, in for converting it to Tier 3. Hope that answers your question.

Theodore, Analyst, B. Riley: It does. Thank you very much. And just if you allow me to squeeze one related follow-up on New Brunswick HPC facility. Specifically, I would like to understand, you already outlined the total CapEx for this project roughly in previous broadcasts, but if you can, outline current construction status and milestones completed to date for HPC related portion of the facility and what’s remaining milestones and, and, and maybe CapEx for, for this or next quarter, just, just to understand the CapEx spending. Thank you.

Nathan Fast, Director of Marketing and Branding, HIVE Digital Technologies: Not sure if we lost Aydin. Fedor, we will follow up with you after this.

Aydin Kilic, CEO, HIVE Digital Technologies: Oh, yeah. No, no, I’m here. So sorry. The question was, I don’t know, so I was put on mute for some reason. The question was, what are the milestones for the New Brunswick Tier 3 conversion?

Theodore, Analyst, B. Riley: Yeah, yeah. I just can quickly repeat. Pardon me. It’s just like for, specifically for the HPC portion of this data center, what’s already completed to date and what’s the near-term plan with associated CapEx for next two quarters? Let’s say it this way. Thank you.

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

Theodore, Analyst, B. Riley: I appreciate feedback and continue. Best of luck. Thank you very much.

Aydin Kilic, CEO, HIVE Digital Technologies: Thank you.

Nathan Fast, Director of Marketing and Branding, HIVE Digital Technologies: Thank you, Fedor. We’ve got time for two final questions. Mike from Northland, I know you’ve had your hand raised for quite some time. If you’d kindly unmute, the floor is yours.

Mike, Analyst, Northland: Yeah. Hey, thanks. First question is just for Aydin. If your OEM financing is for three years, can you talk a little bit about why you’re signing two-year deals that mismatch? And then secondly, for Darcy, could you help us think about depreciation expense the next couple quarters?

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

Mike, Analyst, Northland: Got it. And then on the depreciation, maybe?

Darcy, CFO, HIVE Digital Technologies: Yeah, on the depreciation side, I think you can take a look at what we’ve got in for, for the Q3 right now. For the nine months, as we’ve noted, there was some catch-up depreciation in there. So if you sort of take the incremental amount that you’ve got from sort of Q1 to Q3, you can probably take that as running forward. Through Q3, we had all of our ASIC equipment up and running within Paraguay, so that’s the best driver moving forward.

Mike, Analyst, Northland: Got it. Thank you.

Darcy, CFO, HIVE Digital Technologies: Of course.

Nathan Fast, Director of Marketing and Branding, HIVE Digital Technologies: Excellent. Thanks, Mike. Gareth Garcetta from Cantor, close us out with, with your final question.

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

Aydin Kilic, CEO, HIVE Digital Technologies: So the 504, the purchase of those were announced in November, and the leasing or contract, contracted term of those GPUs was really announced last week. And so those GPUs should be... They’re being delivered to the facility now, and they’re expected to go live. So really the focus is to let the street know that that first cluster, 63-node cluster, is being commissioned with Infiniband and, you know, all the bells and whistles, and is going to be live with the client. You know, this quarter ends March 31, so very soon. We’ve got 6 weeks left in this quarter, and so I would say, you know, stand by for updates on that. And so once that first cluster is deployed, Garrett, then we intend to reload very quickly.

This model is shaping up to prove to be very successful, and so our intent is to reload and repeat, as we rent a cluster, get order another one, finance it in a similar way, get it delivered, rent it out, rinse and repeat. Hope that’s helpful. What was the second half of your question?

Gareth Garcetta, Analyst, Cantor: Just if there’s any potential CapEx needed on the data center side of things at Manitoba?

Aydin Kilic, CEO, HIVE Digital Technologies: No, no, I mean, there was some deposits up front, but that was all taken care of.

Gareth Garcetta, Analyst, Cantor: Okay, great.

Aydin Kilic, CEO, HIVE Digital Technologies: Yep.

Gareth Garcetta, Analyst, Cantor: Yep. Thank you, guys. Thanks for sneaking me in.

Aydin Kilic, CEO, HIVE Digital Technologies: You bet.

Nathan Fast, Director of Marketing and Branding, HIVE Digital Technologies: Excellent. Thank you. That concludes our Q&A session and our Q3 2026 earnings call. Thank you for joining. We look forward to sharing more exciting announcements very soon and speaking to you again soon. Thank you.