Earnings call transcript: HIVE Digital Tech sees 7.58% stock surge post-Q2 2026

HIVE Digital Technologies reported a significant boost in Q2 FY2026 revenue, reaching $87.3 million, a substantial increase from the previous year's $22.6 million. Despite a net loss of $15.8 million, the company's stock surged by 7.58% to $4.97, reflecting investor optimism driven by robust operational and strategic advancements.

Key Takeaways

• HIVE's revenue jumped to $87.3 million, primarily driven by Bitcoin mining.
• Stock price increased by 7.58% following the earnings announcement.
• Expansion in Paraguay and AI initiatives are key strategic focuses.

Company Performance

HIVE Digital Technologies demonstrated a remarkable year-over-year revenue growth in Q2 FY2026, primarily fueled by its Bitcoin mining operations. The company reported a gross operating margin of $42.4 million, translating to a 49% margin. Despite a net loss attributed to non-cash factors, HIVE's strategic initiatives in AI and high-performance computing (HPC) are positioning it for future growth.

Financial Highlights

• Revenue: $87.3 million (up from $22.6 million YoY)
• Bitcoin Mining Revenue: $82 million
• HPC Business Revenue: $5 million
• Gross Operating Margin: $42.4 million (49% margin)
• Adjusted EBITDA: $31.5 million
• Net Loss: $15.8 million (non-cash basis)
• ROIC: 18% annualized

Market Reaction

Following the earnings release, HIVE's stock experienced a notable increase, rising by 7.58% to $4.97. This movement reflects positive investor sentiment towards the company's strategic direction and operational efficiencies, particularly in the context of its 52-week range of $1.8 to $10.94.

Outlook & Guidance

HIVE is targeting a combined annual recurring revenue (ARR) of $750 million by the end of 2026, with $550 million expected from Bitcoin mining and $225 million from HPC/AI cloud services. The company is also exploring further expansion in its Paraguay operations and potential hyperscaler colocation opportunities.

Executive Commentary

• "We are very serious and very dedicated about having best-in-class ROIC," stated Aydin Kilic, CEO, highlighting the company's focus on maximizing return on invested capital.
• Frank Holmes, Executive Chairman, emphasized, "Paraguay is powering HIVE's high-velocity ascent to 25 exahash," underscoring the strategic importance of the region.

Risks and Challenges

• Volatility in Bitcoin prices could impact revenue from mining operations.
• Regulatory changes in cryptocurrency markets pose potential risks.
• Competition in the AI and HPC sectors may challenge market positioning.
• Dependence on technology partnerships, such as with NVIDIA and Bell Canada, could affect operational capabilities.

HIVE Digital Technologies remains focused on leveraging its strong operational base and strategic initiatives to drive growth, despite facing industry-specific challenges.

Full transcript - HIVE Digital Technologies Ltd (HIVE) Q2 2026:

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 six months ended September 30, 2025. My name is Nathan Fast, Director of Marketing and Branding at HIVE, and I'm pleased to 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. Separate statements of historical fact, 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 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 8K furnished to the SEC. On the next slide, I'm pleased to introduce today's presenters: Frank Holmes, Executive Chairman; Aydin Kilic, President and CEO; and Darcy Daubaras, Chief Financial Officer. I would now like to hand the presentation over to Mr. Frank Holmes for a macro recap of the quarter. Frank.

Frank Holmes, Executive Chairman, HIVE Digital Technologies: Thank you, Nathan. Let's get into my macro recap, and I'm going to try to weave in some of the most recent past couple of weeks' sentiment, unpacking the drivers of short-term negative sentiment in data centers and AI infrastructure, which I believe is just setting up for a phenomenal buy for an industry whole. I'm going to try to explain this in this presentation and why HIVE is so uniquely positioned in this macro theme. Next, please. HIVE's journey to really accelerate its growth in Bitcoin mining, it was stalled after Putin invaded Ukraine and sources of hydro and geothermal electricity around the world all of a sudden went shut down or very small. There was no scaling ability until the opportunity a little over 18 months ago when I reached out to the President of Paraguay and flew down to meet him because they have surplus electricity.

I'm going to try to walk you through sort of this journey and that this president's really quite unique. President Santiago Peña is a former rugby player. He is 47 years old, studied at the University of Columbia, New York, worked in Washington with the IMF, and has had an incredible journey in Paraguay and building the country and becoming recognized. Every time I go down, I find something new that I love more about the country. The country is very unique and very pro-America. To give you an idea of all this negative news about Latin America with Venezuela and some of the drama of the Panama Canal, and then we have for sure Colombia's president. I think it's really important to look at how communism and socialism has penetrated deeply into Central and South America, but not in Paraguay.

I think that that's what's really important for investors and why we felt so confident this is where HIVE would scale its Bitcoin operations, sourcing green energy, surplus energy, and really also helping out the overall economy grow. I'll show you some of the other unique things we've done in schools that are nearby us. President Santiago Peña was a sole Latin American head of state present at the 2025 Gaza Peace Summit. This is something else that's really important, who's pro-Taiwan and one of the largest suppliers of food commodities for Taiwan. I believe for a population of about 6 million people, they produce about food for and which they export for 60 million people. Next, please. Here's our president of the country, Gabriel Lamas, who's an electrical engineer, worked for the government's utility company.

As you can see, he's very tall compared to the president, who's like 6'2". Gabriel's like 6'4", 6'5". And he's just been a great leader of maximizing the whole scaling, the concept of scaling and coordinating and working with our CEO, Aydin Kilic, who will speak in a few minutes. And Luke Rossi, who's our Chief Operating Officer, and Bill Gray, our CTO, Gabriel's done a phenomenal job accelerating the scaling from 6 to 25. The journey to 25, we've announced for 24, and we're very close here to 25. So we feel very confident of hitting that. So you can see here, Gabriel was recently with them. And there's a picture when I first met the president a little over 18 months ago. And the economy is one of the strongest and steadily growing economies in Latin America. So that's another real positive sign for the country. Next, please.

As a money manager, I have always said that government policies are a precursor to change, and Peña's policies for fiscal development are outstanding and his push to make sure that every child is fed and then upgrading the school system. We are helping with that, and we are helping especially in rural areas. This story, what I am trying to point to is that Paraguay is powering HIVE's high-velocity ascent to 25 exahash. What is interesting is that yesterday, sorry, two days ago is November the 12th, and that is HAYS Day because in 1870, there was a tragic war, a trilateral war with Uruguay, Argentina, and Brazil trying to take over this massive green belt country. They wiped out genocide to all men and boys to the age of 10. It was tragic.

It was President Hayes that came in that resolved that they kept about 60% of their land. To this day, the country celebrates November the 12th, Hayes Day, and the largest state in the country I am pointing to here is President Hayes. There is a very strong bond with America that when I talk to investors, the average American is not aware of. Next, please. Part of that journey, in addition to rapidly scaling and building out data centers campus across the country, building a BUZZ is also creating lots of local jobs in construction. We have shown you a visual of lighting the streets of Valenzuela, a city near us. It is also for the kids. This is a thank you from the former leader, Mayor of Valenzuela, for lighting up the streets and making the streets safe at night for women and children.

Next, please. When we went out and saw the schools, which are very close to us, I'm talking about a quarter of a mile, half a mile away, we started on this process of upgrading these schools and putting in air conditioning, new electrical, painting, new chalkboards, infrastructure. You can see here a play station here for kids so that they can go and play and enjoy these facilities and also for embracing data centers. There's a big great disconnect even in very advanced countries like Sweden that take it for granted, all the apps on your mobile phone and Netflix and Spotify. They think it's all free, and they don't realize no data centers, no digital realm that we all live in and we rely on. This is sort of a visual of relating this to the children of Paraguay. Next, please.

You can see the picture. This is the key people here. You can see Gabriel Lamas is in the middle, and he's kneeling down because he's so tall. Behind is myself, and you can see to my right, Luke Rossi, and you can see to the left is Aydin Kilic, our CEO, who's also an electrical engineer like Gabriel Lamas is. Beside Gabriel is Craig Tavares, and Craig is our President of Buzz, which is building out our AI business. You can also see Johanna Thornblat, who's the President for Sweden. You can see one of our independent directors and other key people that have been very much involved in the growth and the acceleration. Investment banker Jimmy Brown is there. It is lots of key people that are helping drive this.

Behind the visual is the largest, biggest hydro dam in the Western Hemisphere. It is five miles long. It is epic of size, producing over 10 exahash of electricity, five for Brazil, five for Paraguay. Paraguay is a small population, so they have been selling some of their electricity to Argentina, which has been only really horrific for their fiscal management of a country. It is a small country. That is what is good about Bitcoin mining. Not only do we build this infrastructure, you need substations from this high voltage electricity. We build those. Then we build a campus of data centers, and then we end up hiring 50 young engineers that there is no real job opportunity for them. Now there is with HIVE.

It is really for us an exciting part of our journey of creating this from little kids' education to creating career paths for young engineers. Next, please. On that journey of going to Latin America, I really want to show you that this year has been a phenomenal year for Latin America 40 ETFs, so the 40th biggest market cap stocks versus the S&P. They have crushed it. They have really outperformed the overall S&P 500. I think that is what is really important for investors to recognize. Next, please. In this big buildout, I call it an arms race. China has significantly surpassed America in building data centers. Before that, they built power. The power came from hydroelectricity. They got the water from the glaciers in the Himalayas and rerouting water from Tibet down to creating dams after dams and building out a huge grid.

America has to get caught up, and it is. Under the stewardship and leadership of President Trump, as soon as he came into power, as the CEO of NVIDIA says, that impressed him the most about Trump is that he embraced the need for AI and power and data centers. Here is a classic where Bitcoin miners were the first to go. This is in West Texas, Sweet Abilene, Texas, where Caruso was using Flare Gas, surplus energy from solar, wind, and Flare Gas. Today is the largest CapEx spend in America. I'm told in the world right now in fast tracking a $500 billion AI data center vision from former Flare Gas to a Bitcoin miner.

I'm really trying to highlight that the Bitcoin miners were the early pioneers of building the necessary infrastructure wherever there was surplus or additional or wasted electricity and creating taxes for the local economy, creating jobs for the local economy. This particular site here created 2,500 construction jobs. When that's all done, it'll be 500 jobs and a big boom to the local community. Next, please. Bitcoin mining, the goal is of 2.8% of the global hash rate. We really believe the blue sky opportunity in Paraguay is probably a gigawatt of electricity. That's the potential when they use the word blue sky. Not to go into the moon, that's way out there when you talk about blue sky. Paraguay, no doubt, just makes the perfect place for us to expand our footprint.

Backed by the most consistent and stable executive leadership team in the sector, I'm very proud about HIVE. HIVE's CEO is the longest standing. CFO is clearly the longest standing. The turmoil in the industry has been just phenomenal. We have been able to do this and have operating income no matter how volatile Bitcoin has been. We have always been able to squeeze out operating income and have huge expansion, which we've done this year with this growth. The most efficient tier one Bitcoin mine data center operator, you know that's really important for you to recognize spanning nine time zones in three countries and five languages. We have the lowest industry SG&A per Bitcoin mine and best in class for uptime and efficiency.

We know a lot about Bitcoin mining, and we also know in depth and breadth more than these other Bitcoin miners that are going into the space of AI. We've been doing it for three years. I believe we're quite successful. It's much more complicated. It's much more detailed and substantially more expensive per megawatt, per chip to go build out a tier three HPC or high-performance computing data center for AI. Cambridge University has said it's 33 to 1 from a Bitcoin mining. What Bitcoin mining does is it sources electricity, builds out the necessary infrastructure, and then you go as further things are developed in an economy such as dark fiber optics to move the data along. It takes time for that in many emerging countries.

For Paraguay, I have to agree with Secretary of State Rubio of saying that Paraguay has the potential to become the data center capital of Latin America. We hope to be a significant part of that HPC buildout as we are doing what we're doing now in the Bitcoin mining. We have this proven track record. We're now scaling in AI. Let me walk you through a few comments on that. Next, please. November the 10th, HIVE reports October production 289 BTC, achieves the 24 exahash and completes Paraguay expansion while fueling Canada's tier three and AI data center growth. Next, please. We've shown this growth by buying a former Bitcoin mining data center within the city of Toronto near the airport. Uptime is all the time. Going from tier one to tier three will be much faster than starting from scratch.

This is a perfect ideal location. We feel that this will be a two-tier payback. Clients, we've already built out 10,000 customers around the world. The unique relationship we have with Bell Canada is transformative. Besides going from tier one Bitcoin data center to tier three, which is much more expensive because you need much more air conditioning, because you actually build a brain. When you think of these H200s and Blackwells, these chips are more intensive consumption of electricity. You need much more air conditioning and the HVAC, and you need more support. Those dynamics are really important for investors to realize. Besides headlines, it takes time to do it. We've done it, and we're now expanding rapidly. Next, please. When we look at our suite of assets around the world, one of them is that we bought an asset besides Toronto.

We bought it in northern Sweden, Boden, near Facebook. We will convert a data center there like we are doing in Toronto. That will go through. It has already started that process, that conversion. We said, you know, we have New Brunswick on the border of Maine. This is a beautiful campus of data centers. We made a press release just recently. We bought more land, secured the position to build out our tier three. It will be the biggest pure HPC data center complex in Canada at this time. We are very excited about this. It is a tremendous blue sky opportunity as we are going right now for this particular asset. First is to tie up the land. We have the electricity. Now to get the engineering complete drawings so we can start the construction in the first quarter of next year. Next, please.

Buzz high performance overview, HPC. Data center locations right now today are downtown Montreal and Stockholm, Sweden. We have GPU clusters. We have over 5,000 GPUs and AI cloud services, purpose-built AI cloud with managed services and energetic refinery. That means that you can provide more services, especially when you have 600 sales force of Bell Canada that needs to get caught up quickly and we're their strategic partner for that. We've already shown what we can do. We're doing $100 million in revenue. Now we're going to scale it over the next 12 months fivefold. Blue sky, I just showed it to you. We're going to go through a transformation of tier one to tier three HPC data centers. I think when we look around the world right now, the back of the envelope is 90 megawatts.

If you start looking at other assets, we're working on securing, it's much higher. The long-term vision and opportunities for Paraguay are just immense. We are very excited about this growth opportunity. Unlike other people, we've done it. We know what it is to build a data center. We know what it is to scale tier one data centers. We know what it takes to build tier three. We are scaling. Next, please. This was a very important transaction for Buzz HPC in Canada because Bell Canada is the largest telecom in the country. This partnership is to help build sovereign AI infrastructure through the Bell AI Fabric initiative, advance NVIDIA hardware and networking, deploying NVIDIA Ampere, Hopper, and Blackwell GPUs with Quantum II InfiniBand across Bell's fiber network and data centers.

Canada is a huge opportunity because they're way behind, highly educated, and they've just been slow. Under Prime Minister Carney, this has now been elevated to the very top with an AI minister. This is full tilt on the country doing everything to get caught up, just like America is getting caught up to surpass China. Tremendous initiatives. This is very positive and constructive. The initial deployment and national reach is a five-megawatt GPU facility in Manitoba with plans for the national expansion, like we've talked about, Eastern Canada. Data sovereignty, security, and sustainability has become a very important issue for many of these countries. We believe that HIVE has its head office in Texas reporting for NASDAQ and doing financial reporting under GAAP.

But the intellectual capital and the buzz are there. Canadian companies who would qualify under the sovereignty of Canada and would not be a challenge to the degree that people are worried about, like in France over the Patriot Act. I really think some of this becomes really important to recognize how uniquely HIVE is positioned for this. Next, please. There is our growth. February was $13 million. May was $20 million. We are hoping to get these others deployed as fast as possible to get us up to $40 million in the fourth quarter, which is, we are going to have this run rate, which is going to be for us, our year-end is March.

Then going into 2026, based on all the projections we have from hooking up our suite of NVIDIA chips, looking at those contracts, it looks like a very conservative run rate of $100 million annual run rate with extremely attractive margins for growth. Next, please. HIVE's top institutional investors are Citadel Advisors, Schwab Crypto Thematic ETF, Amplify Investments, Tidal Investments, and Charles Schwab as a discount broker. You know, I remember when a few years back it used to be Robinhood. But now it's showing up with Charles Schwab. And Charles Schwab bought TD Waterhouse. It's just great because they are the biggest beast now.

It is great to see broad retail in addition to institutions that are here and met with the fund managers of most of these companies this week in a conference that Aydin Kilic, our CEO, and I attended in Miami that was put on by Cantor Fitzgerald that was called Crypto Infrastructure, AI, and Energy. Big, big theme going forward. Next, please. We celebrated four years on NASDAQ, and it was just a major home run. We had 100 people out for it. We just for the ministers, two ministers from Paraguay and New York City came out for it. I see the president of Bermuda is there, Tim. I see auditors. I see just a huge crowd. We want to thank everyone for helping us celebrate that. There is Aydin hitting the bell. That is my daughter.

You can see Craig Tavares, the President of Buzz, his daughter. It was a home run for us all to be participating. What has happened short term before I pass you on to the other smarter executives is this sort of AI adoption. There has been some really important research that has come out from Morgan Stanley that has been circulated about framing the AI boom. I am a big believer that the AI boom is for real. It is there. Sentiment drives a lot of these markets short term. All you have to do is get these clusters of calling bubble. There are so many analysts who have got a PhD, they say, in bubbleology. They do not really understand what is just driving the secular market. We are due for this correction, which we are getting, which only sets it up for a more attractive buy.

If we were valued at other data centers, seeing these other companies in the Bitcoin mining that do not have any high-performance computing facilities today, do not have any AI revenue generating for their NVIDIA chips, have valuations that if you apply to HIVE, HIVE would be $20, just to give you an idea of sort of the great opportunity that we have as we continue to scale. I think that it's important to just recognize what a lot of this noise that's taking place is short term. It gives you just this opportunity that you see CoreWeave go through a correction. It's just part of the delays and disappointments on the infrastructure buildout that some of these people are experiencing. It's not going away.

This is an arms race, just like the push by NATO in Europe and Canada and the U.S. of huge military spend, huge rebuilding of all the military. That is just not tanks, but it is tanks with AI, with GPU chips. They need data centers. The digital economy is going to continue to need, and it is going to continue to grow. We have these things they call phantom demand. We experienced with the Bitcoin mining when the Chinese shut down Bitcoin mining, and everyone from China started making these incredible bids for energy all over the world. They were just phantom trying to see if they could secure some energy. It comes up. I just think that my history of these cycles is that we are still very early innings on the adoption.

When you look at a pure data center and the multiples they trade out to revenue and the multiples they trade out to cash flow, it really makes some of the Bitcoin miners outstandingly attractively priced. In particular, my bias position is with HIVE when I look at multiples to revenue as we are powering forward with our twin engine turbocharged strategy of both Bitcoin mining growth, not only this year the biggest growth. We also plan for next year. When I looked at our peers, we have the biggest growth profile for Bitcoin next year. We are still very bullish about it. At the same time, we are pretty conservative in how we write down the value or depreciate our ASIC chips faster over two years because every four years the supply halves.

What you're seeing, which I remain very positive like Moore's Law, is that you are witnessing the technology of energy efficiency that going back 10 years ago was like 1,000 joules per second consumption of energy for a chip, ASIC chip. Now it fell a couple of years back to 30. Now they're coming in at 12. People are working on 8 and 6. By the time of this next halving, I think there will be a 2 and 3. We're just on with AI going to be able to build more energy-efficient data centers, more energy-efficient ASIC chips. That's only going to mean less consumption for the global Bitcoin network that's decentralized. It means that you're still going to be a very profitable business and being significant in laying the railway tracks for the growth in high-performance computing. Thank you.

Thank you, Frank, for that executive overview. Frank, of course, is the co-founder, Executive Chairman of HIVE. Now I'm going to get into a bit more of a deep dive on our accomplishments for this quarter and our strategy for 2026. Let's hop into it. It was a record-breaking quarter for HIVE. $87 million of revenue, of that, $82 million from Bitcoin mining and over $5 million from our HPC business. We're at $20 million ARR for our AI cloud business, which is phenomenal. And a $42 million gross operating margin for the quarter. That translates to a $31.5 million adjusted EBITDA and a $23.8 million EBITDA with $38 million of depreciation this quarter. That leads to a net loss of $15.8 million, which of course is on a non-cash basis.

Moreover, what I'm really proud of is that we realized an 18% ROIC this quarter on an annualized basis. Finally, as of September 30, we had 210 Bitcoin in the treasury, although in addition to that, we have 1,992 Bitcoin pledged. Between our pledge and what we have in the treasury, that's about 2,200 Bitcoin. It's been a phenomenal quarter. I'm really proud of how our balance sheet deployment has scaled the business, which was, in my opinion, a great success. Let's go to the next slide. We are very serious and very dedicated about having best-in-class ROIC, as the numbers this quarter once again affirm. It comes from discipline capital allocation. We always focus to get the best ROI when we buy ASICs. ASIC purchases are the biggest variable in realizing an ROI.

From there, free cash flow and your investments in the Bitcoin mining business. We're experts in that. I believe pound for pound, we're the best in the industry at that. We also lead with best-in-class uptime. We run our ASICs through their entire economic lifecycle to maximize free cash flow and profit on our Bitcoin mining business from the investments we make. By the way, we also lead a sector with corporate G&A. We have the numbers to back it up. Next slide. The overview of the global business. Currently, we're mining approximately 10 Bitcoin a day with 25 exahash capacity installed. This was fueled by a transformative growth in Paraguay, where we grew our business from $100 million from fiscal 2025 to currently we're at $400 million ARR. Additionally, we have 5,000 GPUs between Canada and Sweden operating AI cloud.

That is currently at $20 million ARR as per quarterly financials. The really exciting news is our target to grow to over $200 million ARR between both AI cloud and also hyperscaler colo. Finally, we talk about our capital deployment strategy, prioritizing ROIC. A double click on our BTC pledge. We have great downside protection as well as upside. The almost 2,000 Bitcoin that we pledged, 1,234 Bitcoin were pledged at $87,000. What that does, it gives us upside with Bitcoin today at approximately $97,000. Even with Bitcoin at $97,000, there is over $12 million of upside in our currently pledged Bitcoin. Moreover, we additionally had pledged 758 Bitcoin at an average of about $115,000. That is $14 million of downside protection from the other component of our pledge.

Collectively, if you look at the downside protection of $14 million, the upside potential of the $12 million, even with Bitcoin having corrected where it is, the value of our pledge has been accretive to the tune of about $25 million, which I think is very phenomenal. It just shows that we're very methodical and thoughtful. We've used our cash flow from operations. We've used our HODL. Earlier this year, some of the ATM to scale the business to get to that $400 million ARR. We have some very exciting things in the pipeline for the AI and HPC business with Buzz. Let's hop to the next slide. The dual engine strategy of growth. Cash flow from the Bitcoin mining business helps us to scale Buzz HPC, where we have three AI data center expansions going to tier three plus.

We'll get into that. Right now, at a glance, the Bitcoin mining business, 25 exahash, a blended fleet efficiency of 17.5 joules a terahash. We're at $400 million ARR, as we mentioned, approximately 50% operating margin for electrical costs based on current mining economics. It's a footprint of 440 megawatts of green energy. The exciting news we recently announced, in addition to this, we have an additional 100 megawatts that ANDE and the government of Paraguay has approved for HIVE, which we're very excited about. That gives us the potential to get to a capacity of 35 exahash for the end of next year. That would bring our fleet efficiency down to 15 joules a terahash if we were to upgrade with the latest generation machines. We only buy ASICs when it satisfies our ROI targets. We're focused on building the infrastructure.

The other really great piece of news is that this is at the Yguazú site, which we purchased from Bitfarms. Originally, it was designed as a 300 megawatt site. What we are really excited to announce is that the incremental cost to bring that 100 megawatts on is only $250,000 a megawatt. Recall that the all-in purchase price for this site and even to build our Valenzuela site is $400,000 a megawatt all-in. That is land, substation, buildings. The good news is that all the civil work is already done for the additional 100 megawatts at Yguazú. All we do is we drop in the transformers for the substation and then the hydro mining infrastructure, $250,000 a megawatt, very incremental and attractive cost to bring online that capacity. With that capacity, we have optionality. We can either install next-generation ASICs.

Of course, we always shop for ASICs at about a one-year ROI. Or we can look at other strategies to monetize that 100 megawatts of green energy. We have ordered the long lead time items, namely the substation, which are expected to arrive in Q1 of 2026. Stand by for updates on that. By the way, if we were going to do 35 exahash on the current mining economics, that would be about a $550 million ARR for end of Q4 2026. Moreover, let's talk about Buzz. We have a very exciting year ahead for Buzz. We've recently announced that the additional 6,000 Blackwell GPUs, B200s for H1 and B300s for H2, will come online in three data centers, bringing our current 5,000 GPU cloud to a total of 11,000. We're going to double the size of our GPU AI cloud by the end of 2026.

Moreover, with the conversion of New Brunswick, we bought additional land. That campus is now over 30 acres. It is currently an operating tier one 70 megawatt data center. We will convert that to tier three plus. That will provide us some hyperscaler colo. You add that all up, it gets us to a target of $225 million for the end of 2026 for Buzz. Collectively, our target for the end of 2026 can be $750 million for both the dual engine strategies. Of course, we prioritize ROIC. On the scaling of the Bitcoin mining business, we will scale that if the ASIC investments allow for ROIC and they are attractive. On Buzz HPC, we will be bringing online these GPUs in our partnership with Dell for the first phase of our Dell partnership.

Let's go to the next slide. At a glance, the global footprint for Buzz now, this is just HPC. We currently have approximately 5,000 Hopper, which means H100s and H200 series GPUs, about 4,200 A-series GPUs. Those are in Sweden and Quebec. The additional 6,000 Blackwell GPUs that we're going to bring online are coming on in three tranches. One is through the partnership with Bell in Manitoba. One is through the Toronto data center, which we recently closed on the purchase of and announced the conversion to tier three liquid cooled. Of course, our facility in Boden, Sweden, will also be tier three liquid cooled. Toronto and Sweden are owned HIVE and Buzz owned and operated data centers. We own the land and buildings. We'll be converting those to liquid cooled.

Those will come online in Q4 of next year and each facilitate 2,000 NVIDIA Blackwell series GPUs. This shows you the map and the footprint of how we scale from 5,000 GPUs to 11,000 GPUs in our cloud business. Of course, with New Brunswick, the conversion of that to a tier three colo with an expected ITL of possibly 50-55 megawatts at market rates in that sector would be about $85 million additional ARR. This gives you a high-level glance of how we incrementally scale our $20 million ARR today to over $200 million target for the end of next year. Next slide, please. Beautiful photo of one of our H200 clusters operating. Now, to help clarify on the GPU business, because we're doing both GPU AI cloud as well as to target hyperscaler colo New Brunswick.

If we focus on the GPU cloud business, the growth is $20 million, going to $140 million. That reflects the growth from 5,000 to 11,000 GPUs by bringing on an additional 6,000 Blackwell GPUs in those three facilities. Currently, we have a good mix of long-term contracts for 3 to 12 months where we're monetizing our $20 million ARR as well as on demand. We have over 10,000 unique users through our partner networks. I think the really exciting thing is to highlight that we're focusing on liquid cooled tier three data centers for the future as these NVIDIA racks get more and more dense. We've heard that the Blackwell GPU clusters for B300 could be as dense as 180 kilowatts per rack. Rumors are that Rubin could be as much as 200 plus kilowatts per rack. It's building for the future.

Of course, we're really excited about that partnership with Bell. Let's hop to the next slide. This was released this quarter, a very exciting initiative where Bell is Canada's largest telecom provider. They've partnered with Buzz HPC, and the team's done a phenomenal job to bring this deal to fruition. We've just executed all the operating agreements. We expect that the first cluster of B200s, which will be operating in Dell servers, will arrive at the end of this year and go live in January of 2026 and bring online that initial incremental ARR. This will be part of the sovereign data strategy, Canadian-owned, meeting the residency requirements. Bell is a, sorry, Buzz is a Canadian company with a great pipeline of data centers in Canada through Bell and the Toronto data center. This is all very exciting.

Craig Tavares has done a phenomenal job advancing that initiative along with Mario Sergi and our HPC team. Next slide. By the numbers, again, on a timeline basis, this shows a current $20 million ARR. As we bring those incremental clusters of B200s into the Bell partnership, 1,000 for Q1, another 1,000 by Q3, each cluster of 1,000 GPUs on long-term rental basis. We are forecasting this if we just go two-year long-term contracts and you look at market rates on SemiAnalysis to see where H200s and B200s trade at. This is based on dollar per GPU hour, long-term two-year contracts is about $20 million per cluster of 1,000 GPUs. We are at $20 million today. If we bring on 1,000 GPUs in Q1, it gets us to $40 million ARR. Another 1,000 GPUs in Q2, Q3 gets us to $60 million ARR.

Now, the big ramp is Q4 next year because that's when the conversion of Toronto and Boden data centers will be complete. Each of those will bring on 2,000 more Blackwell GPUs. By Q4, we target B300s. Of course, a cluster of 4,000 GPUs would add about $80 million ARR. That is how you get to the $140 million ARR growth on the AI cloud business with GPUs. In addition to that, separately would be the hyperscaler colo with a conversion of New Brunswick, currently a 70 megawatt tier one, into a tier three plus data center. That incremental revenue would be about $85 million based on $130 a kilowatt a month. This is the growth strategy for Buzz for 2026 with both AI cloud and hyperscaler colo.

We have the land, we have the power, we have the expertise in running the GPU clusters, and we've been doing it for the last two years. Next slide. We also are vertically integrating the tech stack. So HIVE and Buzz, we have expertise in building and operating data centers. We've developed expertise building and operating the GPU clusters. Especially with the partnership with Bell and sovereign initiatives within Canada, where we want to sell managed services to AI enterprises, it's about vertically integrating the stack and having a platform that enterprises can use or sovereign clients. This means custom endpoints allowing for magentic AI inference training tuning. This whole platform, we're very pleased to announce. The next slide is the Buzz HPC Cloud. This is just launched, and this has been pressure tested. This is scalable.

This allows us to sell sovereign compute for our clients in Canada. We think that this is a very exciting development that really opens up the sovereign market in Canada, which, of course, Canada is the home to the Vector Institute, the home of Geoffrey Hinton. Our Buzz team led by Craig Tavares is doing an amazing job working with the different strategic partners in Canada, with Bell, with Dell, with the different research institutes. We have some exciting news in the pipeline. Stay tuned for that. Moreover, what this does is with our platform selling AI enterprise solutions, it is a much higher margin business. Let's go to the next slide. This is the money shot. The Buzz HPC Cloud platform has been ranked and awarded bronze by SemiAnalysis. This is the benchmark in the industry that looks at all the Neo clouds.

You will notice, and I'm very proud to say our team has worked so hard. The Buzz team has done such a phenomenal job. On our first go-around with SemiAnalysis, ClusterMax, we received bronze. You will notice the other industry peers. When I say industry peers, I'm referring to, quote, former Bitcoin miners that are now pursuing HPC AI cloud. The other companies that are a peer group are all in the underperforming category. By the way, even below that, you'll see some names that have raised a lot of capital in the unavailable. They were not even able to really complete the benchmark test. The next category is underperforming where they complete it, but obviously not up to the standard. Beyond that, which is where Buzz is, among some other very reputable clouds, is Buzz HPC.

Our team believes that we're very close to being able to get a similar qualification next year, which would put us right up there with AWS. Super exciting. We're very proud of this accomplishment. Again, Craig and the team have done an absolutely phenomenal job on this. Let's go to the next slide. With the Blue Sky potential integrating the cloud platform to allow us to sell managed services for AI enterprise clients, we're looking at a much higher margin business. Instead of renting GPUs for bare metal at long-term rates, which is what we presented on the previous slide, and that's the base case, the bull case or the blue sky case here, if all the GPUs were monetized using our cloud platform for AI enterprise clients in Canada under the Buzz sovereign strategy, it would be a much higher margin.

By the numbers, you would be looking at approximately double the dollar per GPU hour unit rate. On the previous slide, we were basing it on about $2.30 per GPU hour. These figures here on $4.50 a GPU hour, you get about $40 million of ARR per cluster of 1,000 GPUs. What that does is if you bring on that first cluster and they are all being monetized through the Buzz cloud platform, it could bring an additional $40 million. That would mean the current $20 million of ARR goes to $60 million ARR and subsequently increments to almost a quarter billion ARR just from the AI cloud business. Again, this is a blue sky. Not necessarily all the GPUs will be sold through the cloud platform for our sovereign clients. We still have existing relationships where we do sell AI compute globally.

We believe the margin will fall somewhere between these targets and the base case targets. If you add on the capacity of hyperscaler colo by converting all of New Brunswick, that brings you to the north of $300 million ARR target. If you look at this blue sky and the base case, I do think that getting into the quarter billion ARR and target for end of next year is realizable potential. We're excited to take it to the next level. We believe that if you look at where the multiples where some of the peers are trading, it easily puts our AI cloud business at a multi-billion dollar valuation if we were doing $250 million ARR. By the way, this is much higher margin. When you're selling through cloud, the margins are about 90%.

In the previous, the base case where we would do long-term GPU contracts, at least for a Blackwell, is about 80% margin after data center and electrical costs. We are very excited to present this. 2026 will be a phenomenal year. The other exciting piece is that to bring these GPUs online, we have vendor financing. We actually are not required to raise capital to bring on this cluster of GPUs because 6,000 Blackwells would be about $360 million. We are bringing them on. We are doing about 1,000 GPUs at a time. When we do this, we rely on vendor financing, lease to own, which allows us to therefore be very mindful about our ROIC. Really, the CapEx is just to finish the conversion of our Toronto data center and our Boden data center. Those two facilitate the growth of 6,000 GPUs.

Moreover, the colo partnership with Bell, it's colo, and we're getting a very attractive rate. It doesn't require any significant CapEx. To fund the growth, to bring online the 6,000 GPUs does not require any significant CapEx beyond what I believe we can fund from our current balance sheet. That's what's really exciting. The conversion of New Brunswick to HPC would be a more capital-intensive project, but stay tuned for updates on that. Next slide. On the Bitcoin mining side of business, very proud to announce we're mining approximately 10 Bitcoin per day, even with difficulty at 152 trillion. Currently operating a footprint of 440 megawatts of green energy. We have a proven track record of scaling now as we've demonstrated industry how quickly we've brought on this capacity.

Again, we've maintained not only best-in-class uptime and efficiency in the sector, but lowest G&A per Bitcoin mined, which you would expect because we've done this with a very lean team as we've quadrupled our revenue this year. We've done so by adding a small number of additional key hires. Of course, our efforts in Paraguay are led by Gabriel Lamas and Carlos Torres, who have both done an absolutely phenomenal job. We're extremely proud of our Paraguayan team. I'm going to be flying down there in a couple of days for my quarterly site visit. I always like to visit every data center, walk the fields, and walk the hot aisles, walk the cold aisles. I just like to feel the energy. Of course, we do this all with disciplined capital allocation, which we prioritize ROIC. We're going to double-click on that later in this presentation.

Next slide. Thanksgiving came early. We did target that we would hit the 25 exahash and complete the 300 megawatts by U.S. Thanksgiving. We hit it a couple of days ago, which was really exciting. We put out a press release around November 11. Thanksgiving came early. That is exciting. With 10 Bitcoin mined per day approximately and 25 exahash installed ahead of schedule, I think we have really demonstrated to the market that we have expertise. I think for the longest time when the market was watching HIVE, why are they not scaling? Because we wanted to scale when it was accretive. By the way, finding green energy obviously is more challenging than if you just look for any type of energy. Very happy that the team delivered. Everyone has done a phenomenal job.

Shout out to Luke Rossi, our COO, and Bill Gray, our CTO as well. The whole team, Darcy, Gabe, everybody's just done a phenomenal job. Next slide, please. This is just a scenario analysis that shows you we've seen Bitcoin correct to just under $100,000. Of course, with Bitcoin at different incremental prices, you could see that our current annualized mining margin is about $200 million with Bitcoin at $100,000. That could easily get to almost $300 million with Bitcoin at $125,000 and at $150,000, almost $400 million of annualized mining margin after electrical costs. This is not revenue. This is mining margin after electrical costs. $200 million to $300 million to $400 million is as measured against Bitcoin price, really at $100,000, $125,000, or $150,000. A lot of upside in the Bitcoin mining business, of course.

Just a quick note on that, when we look at some of the hyperscaler colo deals that have been done, Cypher announced a deal with AWS, $102 a kilowatt. You can actually dollar denominate that per kilowatt hour. It works out to about $0.14 a kilowatt hour. With Bitcoin at about $43 hash price, Bitcoin was mostly at $102,000 this week. That is about $0.12 a kilowatt hour with our S21+ Hydros. You are actually not that far off on a dollar per kilowatt hour basis compared to hyperscaler colo. Of course, what institutions like is the long-term stability, a fixed price for 12 or 15 years that you can underwrite, put a multiple on. We are very much aware of that. I think the Morgan Stanley report on HPC did a good job spelling out that strategy.

What you have in Bitcoin mining is upside because when hash price was $55, the mining business was actually doing $0.15 a kilowatt hour, so even more top line than the Cypher hyperscaler colo deal. What's interesting is that, of course, our bottom line, our operating cost is about a nickel. You've got a much higher margin business. That's why we're able to target one to one and a half year ROI in the Bitcoin mining business, whereas your ROI when you're doing a hyperscaler colo, if you're spending $8 million-$10 million per megawatt to build a tier three data center, you're looking at roughly eight-year ROI. We do both. We're targeting the HPC business with the AI cloud. That's about a two and a half year ROI in the GPUs.

We are very much aware that institutions like the long stable cash flow of hyperscaler colo. That is why we are very pleased to bring to market the New Brunswick opportunity and put that in the 2026 pipeline. Let's go to the next slide. Just a high level for all the research analysts out there, where the hash rate is and how much power is online. Of course, the phase three in Yguazú, the additional 100 megawatts actually gets us to a global capacity of 540 megawatts. Of course, 440 megawatts today is operating of hydro power. I might add, again, I just want to reinforce, we are not committed or we do not have a needed capital need to bring on 10 exahash of ASICs.

We will do so if economics and ROI satisfies our principles of realizing a one to one and a half year ROI after cost for the ASICs. There are other ways to monetize that extra 100 megawatts of capacity as well, by the way. Stay tuned for that. We have got a lot of exciting things for 2026. We are putting all the fundamental pillars in place for a year of growth and to manage both upside and downside. That is how we have lasted for coming on eight years now, I being the first public crypto miner. What the longest standing C-suite, might I add, between Frank, Darcy, and myself? Let's hop to the next slide. By the numbers, for those that would like a snapshot of what 35 exahash would look like on an ARR basis.

As we mentioned, currently we're $400 million ARR, doing about 50% margin after electrical cost, $200 million of margin after electrical cost on the current Bitcoin mining business for 25 exahash, about 17.5 joules per terahash efficiency. If we were to scale that to 35 exahash with latest generation ASICs throughout 2026. By the way, we do believe that ASIC prices for the new generation gear will come down and be more attractive. We would evaluate those during the spring to summer of 2026 as the 100 megawatts would be completed around August to September of 2026. We're in no rush. With that 35 exahash, current mining economics, this is modeled on a $42 hash price, brings you to $550 million ARR. Because you've got more efficient ASICs online, you're about a 60% margin.

That's $320 million of cash flow based on current mining economics. Just a snapshot for the analysts and all the enthusiast investors out there that like to build their Excel models. Next slide, please. We talk a lot about the ROI principle. Just, you know, I was such an avid math and physics student in school. Sometimes you come across, you're deep in the chapter in your physics textbook, and there's just this one diagram that just puts the concept visually, and then it crystallizes, and you have mastery of it. Of course, all the equations that backstop it. This is especially for institutional investors that are trying to wrap their head around, and they think that it's sort of this elusive or arcane business. It's actually not. Bitcoin mining is the intersect of computer science and electrical engineering.

It's really what it is. We're building high-voltage, high-energy infrastructure. The revenue, the top line is really, you can almost think of it as combinatorial mathematics. You've got number of hashes per block is difficulty times 2 to the power of 32. Now, Bitcoin price fluctuates. Difficulty fluctuates. Sometimes difficulty goes down. We just had difficulty drop by almost 5%. We're 150, 16. Now we're at 152. What does that mean? Your top line here, as you see, is like a squiggly line. It goes up and down, but with time, and we're talking a four-year horizon, it does trend down as more hash price comes online. During the life cycle of an ASIC, we always aspire to get one-year ROI after electrical costs. You could see that is in the blue area of the chart.

Once you've realized an ROI on your ASIC, then you're free cash flowing. That is why for the balance of that three to four years, you're free cash flowing. This is how we mine Bitcoin, and this is how you make money in this business. You have to think this way, and you also have to model this way. Of course, you have to invest and operate this way. Now, the three bullet points here are, what are the two levers on this graph? There is one vertical axis, and that's your dollar per terahash ASIC acquisition price. The more you pay for your ASICs on a dollar per terahash basis. By the way, this is on a snapshot, assuming a certain efficiency of joules per terahash, right? Given a model of ASIC, so a new ASIC comes out, you go, "Great.

This is what its ROI profile is going to look like. Depending on what you pay for that ASIC, the more you pay, the longer it's going to take you to hit that ROI. We know that there's diminishing returns. This is modeled. It's all part of the Bitcoin white paper. As more hash rate comes online, it makes the network more secure. Bitcoin is the world's decentralized energy-backed currency. It is not a bad thing that you have to upgrade and that more energy comes online. It makes the network more secure. As Bitcoin is a market cap of over $2 trillion, you have over 30 gigawatts of compute backing that. It is the increasing efficiency of the ASIC that helps dollar denominated to dollar per kilowatt hours. Okay? On the horizon, on the time horizon, you see the plus-minus dollar per kilowatt hour.

You see the lower your dollar per kilowatt hour operating cost, the longer you can run that same ASIC for. You see how we've indicated or illustrated that that additional tail end of free cash flow, the lower your power price, the longer you're going to be able to realize free cash flow. Of course, the cheaper your dollar per terahash purchase price, the cheaper that number is, the shorter your ROI duration is. Of course, that means you have all other things being equal, more time to free cash flow. This is so important. It's been moreover, as I said earlier in the presentation, we run our ASICs for their entire economic life cycle.

What that might mean in the third and fourth year, even the second year, on a margin basis, if you're looking at your MD&A, you say, "What was your gross mining margin this quarter?" If you're running older ASICs that are in pure free cash flow scenario, the margin apparently may not seem that great, but they're free cash flowing. They've paid themselves off. You want to run those ASICs until the very end of the life cycle before you upgrade them. This is an important principle. I thought this visual would very much help. There you go, Bitcoin mining summarized. Let's go to the next slide. By the numbers, this is what it translates to. We lead the sector in cash return on invested capital. Quarter in quarter out, here it is. We've realized 18% annualized ROI.

See this quarter, 4.5% for the quarter. I love explaining how the business works. We love to share expertise. We love to be beacons of truth in the industry where there's a lot of hubris. Again, I've been standing strong as the longest crypto miner in the sector for the publicly traded peers to Bitcoin halvings and an Ethereum merge. No one else has navigated all three of those events. In addition to that, we've built our own ASIC miner with Intel. We understand the industry at its very depths and also at a very macro level, having strategic oversight with Frank as a money manager, our Executive Chairman, myself as an electrical engineer. We're both numbers guys, and we like to look at the prism of Bitcoin mining and data centers. So many different angles to understand what does it look like when you evaluate it.

Ultimately, our bottom line, though, is how do we get the best ROIC? Here it is. Next slide. We also have the lowest G&A in the industry. We have a high-performance work culture, our executive team. We were in Chicago for a Jim Collins seminar. Really, how do we live and breathe being a good-to-great business? Again, high-performance culture. We are in nine time zones, five languages. Again, we talk about a high-performance culture. We are a high-performance culture, bringing 300 megawatts online in six months, almost an exahash per week. I think we might have broken an industry record. You can clearly see here, under 10% of our total revenue is reflected as G&A and our peer. I mean, a lot of our peers are really in the 20-30% range is really what it tells you.

We're able to scale. We have a dual-engine strategy. This is G&A for the whole corporation. We're talking all our operating subsidiaries, our global business, HPC, and Bitcoin mining. Incredibly privileged. We work long hours, though. If it's hard to get a call with us, we'll make time for you, but priorities. Next slide. The other amazing thing is the value proposition. Our relative valuation equity singles a very strong opportunity. On a relative basis, where you look at our peers on an EBITDA exahash basis, we should be at about a $4 billion enterprise value. Of course, people will say, "Oh, yeah, but a lot of your peers here have an AR HPC strategy." Yes, as do we.

I think we have one of the best AI and HPC strategies with a lot of upside to be realized in 2026 as we bring online those 6,000 Blackwells and pursue hyperscale of Colo through New Brunswick as well. I think that we also have best uptime in the sector, lowest G&A per Bitcoin mine, best ROIC, and right now the best value. I think for the smart money, it's an opportune time. We've seen HIVE really rally to almost a $1.7 billion US market cap. There's been a bit of a market-wide correction recently. I think it's an opportune time as the market consolidates. Next slide. Now, a little bit more about what we do. Yes, we are very high performance, and Frank and I were boots on the ground. We go to all the conferences, but we also invest in the communities.

We had a program where we wanted to refresh 18 schools in the rural regions by our data centers. Frank and I were actually visiting in Valenzuela. This is a primary school, elementary school, and the kids were so happy. The pictures on the left are before, and you can see the beautiful hand-painted map of Paraguay. You see the walls are sort of a bit weathered and chipped. What we did was we refreshed the schools. You see brand new paint and air conditioners. You see all the air conditioners after bolted on the walls for the classrooms. We installed a playground as well for the kid. We are doing upgrades to 18 schools throughout the community.

Just about how we like to invest in communities, we sponsor the hockey team in Boden, but we do what the community wants and needs. Of course, in this scenario in rural Paraguay, it is the schools. Next slide. Also, embracing tradition, we were invited to the presidential palace for a YPO event. This is Santiago Peña. He was an incredibly gracious host. We were wearing the scarves of the sort of traditional Paraguayan dress. It was an absolutely phenomenal event. We had our whole executive team down there. Of course, Gabriel Lamas and Frank are pictured here with Peña, Luke Rossi, our COO, and myself and Jaime Perez, our Latin American correspondents. Investing in the communities, at the schools, in the neighborhoods, but also building strong ties with the leaders of the country. Next slide, please.

Now, Paraguay in turn is also building ties globally. Peña has, I think, done a phenomenal job, having a great relationship with Trump. All smiles here with a big thumbs up. Moreover, Frank and I had a strategy session with Peña in September during that YPO summit. Of course, shortly after, we were granted an additional 100 megawatts, which we'd announced to the market. It is about having relationships strategically and being aligned with the government utility companies and just doing good business. We are very bullish on the future of Paraguay, not only for Bitcoin mining, but data centers broadly. Let's go to the next slide. Directionally, Latin America is emerging with HPC on the horizon. It was in the headlines in October. OpenAI and an Argentinian energy company are looking at a Stargate for Latin America. Argentina is adjacent to Paraguay.

Argentina buys power from the Itaipu Dam, which is the largest hydro dam by production in the world. We believe that there will be a bright potential future for HPC in Latin America. Let's go to the next slide, which is Darcy Daubaras, the longest-standing CFO in the Bitcoin mining industry. He is going to give you the overview of the financial results. Not only in the Bitcoin mining industry, of course, now we are a HPC business with a thriving AI cloud growth strategy as well as hyperscale and Colo for 2026. Darcy, over to you. Thank you. Good morning, everyone. Thank you for joining us today. I will be walking through the Q2 results for the three and six-month period ended September 30, 2025. 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, provide investors an improved ability to evaluate the underlying performance of HIVE. 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-month periods ended September 30, 2025. Moving on to the first slide, HIVE ended the September 30, 2025 quarter with 236.8 million common shares, 2.7 million options, 11.4 million RSUs, and 5.2 million warrants outstanding. On the next slide, let's start with the key highlights for the quarter. For Q2, we generated $87.3 million in revenue driven by digital currency mining and high-performance computing services and delivered $31.5 million in adjusted EBITDA.

Production for the quarter was 719 Bitcoin equivalent, which is up from 406 in the prior period, supported by stable operations, strong uptime across our sites, and the execution of our Paraguayan expansion. These numbers reflect disciplined cost management, a focus on efficiency, and the benefit of our diverse global footprint. Let's now, on the next slide, take a look at how this operational performance translates into our balance sheet strength. We do take great pride in maintaining a healthy balance sheet. As of September 30, we held $22.6 million in cash, $24.4 million in digital securities, and $17 million in receivables and prepaids. That totals $136.7 million in digital assets against $55.5 million in current liabilities. We also maintain $25.7 million in strategic investments. This strong liquidity has allowed us to manage market cycles, invest in expansion opportunities, specifically our HPC and Paraguayan opportunities, and avoiding over-leveraging the company.

With that context, let's look at how our earning 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 Q2 last year, our gross operating margin, which is calculated as total revenues minus direct operating and maintenance costs and high-performance computing service fees, increased $42.4 million in the most recent quarter compared to $400,000 in Q2 of last year. In this most recently completed quarter, we are reporting a basic loss of $0.07 per share compared to a net income of zero, basically flat per share reported for Q2 last year. Taking a look at our revenue increases year-over-year on the next slide, we generated total revenue in the second quarter of fiscal 2026 of $87.3 million versus $22.6 million in the previous year's second quarter.

The revenues compared to the same quarter in fiscal 2025 can primarily be attributed to the expanded hash rate that we are experiencing from the Paraguay expansion. As mentioned previously, our gross mining margin, which equates to our revenues minus direct operating and maintenance costs and high-performance computing service fees, increased to $42.4 million or 49% margin in the most recent quarter compared to $400,000 or only 2% margin in the prior year comparable quarter. As we've said, that's a direct result of optimizing our mining fleet, the massive Paraguayan expansion that we've experienced since the beginning of calendar 2025, and improving our overall operational efficiency. Now, if we zoom into just the last two quarters, you'll see impressive improvements on the next slide.

Comparing our current fiscal Q2 quarter to the previous Q1 quarter, we generated a revenue in this current quarter of fiscal 2026 of $87.3 million versus $45.6 million in the previous quarter. The increase in revenues versus the prior quarter was impacted by increased exahash capacity with the Paraguay expansion, an increase in the price of Bitcoin resulting in higher revenue from digital currency mining, and our continued focus on our high-performance computing revenues. Our gross operating margin increased to $42.4 million or 49% operating margin in the most recent quarter compared to $15.8 million or 35% margin in the prior quarter's comparative. The increase in gross operating margin versus the prior quarter was greatly due to the comparative BTC pricing and resulting revenues and the continued improvement in our fleet efficiency.

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 in this quarter ended September 30, 2025, was $31.5 million versus adjusted EBITDA of $12 million in the September 30, 2024 period. I will highlight that adjusted EBITDA is a non-GAAP figure. For this completed quarter, we experienced loss of $15.8 million compared to a net income of nil in the previous year comparative. The net loss experienced this quarter was driven by non-cash losses experienced on our strategic investments and changes in the fair value of our derivatives, which is linked to the Bitcoin used as deposits on equipment purchases. On the next slide, the quarter-over-quarter view tells a similar story.

Our adjusted EBITDA in the second quarter of fiscal 2026 was a profit of $31.5 million versus adjusted EBITDA of $44.6 million in the previous 2026 Q1 quarter. In the second quarter of fiscal 2026, we experienced net loss of $15.8 million compared to a net income of $35.5 million in the previous Q1 quarter. The Q2 fiscal 2026 was a solid quarter for HIVE. We delivered strong revenue, expanded margins, and maintained a robust balance sheet. Our operational discipline, fleet expansion, and cost control measures continue to position us well to compete in the challenging environment and capture opportunities for growth. As always, I want to thank our loyal stakeholders and encourage them to continue to follow our expansion efforts in both Bitcoin mining and high-performance computing operations. There's exciting things to come, so stay tuned. Thank you, Darcy. That concludes the presentation for today.

We will now begin the question and answer portion of our call. Panelists on the line, if you could please click raise hand when you're ready with your questions. We will begin to choose and ask you to unmute. Our first question comes from the line of Darren Aftahi from Roth. The floor is yours, Darren. Yeah, good morning. Thanks for taking my questions and congrats on the progress. Tufe, if I may, just can you talk about what the assumed spend on CapEx per megawatt is to either retrofit or greenfield your data centers to tier three? And then on the AI cloud strategy, I think, Aydin, you talked a little bit about financing and then leasing the GPUs. I guess, do you guys plan to buy these at the end of that cycle? And then I guess, what's the assumption on useful life you're assuming on GPUs? Thanks.

Yeah, you bet, Darren. The site in Boden is $25 million to build out to convert, and Toronto is $40 million. We've had those facilities effectively quoted, and we're ready to commence the conversion of those. The price per megawatt is different because each facility has just different existing infrastructure. Boden is already designed as a GPU facility, and that's the one that you've been to, actually, when we did the site tour last year. Toronto is the facility that we recently announced the purchase of. That's $25 million and $40 million, respectively. That provides, and then, of course, Bell is Colo, so there's no significant CapEx. That collectively gets us to the footprint for 6,000 GPUs. Sorry, what was your second question? Really, just on the cloud share. Oh, the buyout. Yeah, yeah. It's really a lease-to-own.

The buyout is de minimis. We will effectively have, at the end of the term, for a very nominal amount, ownership of the GPUs. Okay. What's the useful life you're assuming on this? I know you might be one of the fewer entities that have. I think broadly, what we've seen is that after three years, easily, conservatively, GPUs are worth half of what you bought them for. I think that you could say a useful life conservatively is also five years. I back that up with a couple of data points. As you know, as you've been following the story for a long time, we bought 38,000 Ampere GPUs, A40s, A6000s, A5000s, A4000s. We made that order. We announced it in July of 2021.

A lot of those GPUs, to the tune of over 4,000, are in our AI cloud still running. We have 4,300 A-series cards, mostly A40s and A5000s. Here we are four years later, and they're still running. That's why I put the useful life at five years. I believe it could be longer. I believe it could be five, possibly six, maybe even seven. On the resale, we've sold, sort of in our past disclosures in MD&A, we've sold the balance of that fleet of Ampere series GPUs, about 34,000 of them, at approximately 90% of their original face value. The sale of those GPUs was last year over kind of a course of a year. That puts us about three years into their economic life cycle, and we were selling them for 90% of what we bought them for.

Again, we're very strategic about ROIC, and we realized that there was a great opportunity there to get such a high value for them. We took those proceeds, and then we expanded instead and got more Hopper H100 and H200 GPUs. That gets us to where we are today. Moreover, to answer your question, we were able to sell at 90% of face value after three years. Of course, that was driven by global demand. When I told you 50%, I'm trying to give you very conservative, realizable figures. To wrap it up, 50% after three years, and I think a useful economic life cycle of five plus years. Look, that three years, it could be higher. Maybe the GPUs are worth 70% more.

But I mean, in our case, we've seen 90%, but let's just say 50% to be conservative after three years. Thanks, Aydin. Appreciate the insight. You bet. Thank you for the question, Darren. Next question coming from the line of Mike Grondal from Northland. Mike, the floor is yours. Hey, thanks, guys. My question on those 6,000 GPUs that you're putting out the next couple of quarters, how many of those are contracted today? Meaning, what kind of visibility do you have on those? And then could you talk a little bit about the average term? At one point, I think I heard three months to 12 months, and then another point, two years, and just kind of the demand you're seeing. Yeah, Mike. So you're correct in that the existing GPUs that we have online are in the 3-12 month range.

I actually just want to refer you to a press—sorry. Sorry, I'm in Paraguay right now. Someone's knocking on the door. We also put out a press release this morning concurrent with our Q2 earnings that actually announced the order of the first cluster of 500 for those Blackwell B200s. That is the first cluster that we expect to be delivered before Christmas this year. The 6,000 GPUs, there's a chart in my section where we actually sold the first 1,000 of the 6,000 coming online by Q1, 2026, calendar Q1. The second cluster of 1,000 GPUs comes online Q3, 2026. Finally, the additional 4,000 Blackwells would be Q4. The reason why Q4 is, again, it's the retrofit of the Boden and Toronto facilities. Those retrofits are underway.

Of course, you would not be bringing GPUs online until that conversion was complete. You have 1,000 Q1, another 1,000 Q3, and another 4,000 Q4. To answer your question in short, those GPUs are not live yet. We are bringing them online in that cadence. We will provide more color on the contracted GPUs when they go live. I hope that answers your question. Oh, and why two years is because we wanted to provide sort of a conservative base case if we underwrote the revenue of the GPUs on the longest-term contract, which conversely provides the lowest dollar per GPU hour. We are aware directionally that the street institutions are more in favor of the longer the cash flow, even if it is a lower quantum on GPU per hour, people like the stability. We have modeled that.

But then moreover, with the cloud, what's exciting is when you're selling tokens or allowing people to utilize AI enterprise services with API endpoints, now you're selling a much higher margin. That's why we kind of had two similar slides showing the growth in revenue. One is on long-term two-year contracts, and the other is higher margin selling AI enterprise services. I believe my comment, I hope my comment on those slides made it clear that we would expect the realized ARR to be sort of in the midpoint somewhere between those two projections that I provided. Does that help? Yes. Thank you. You bet. Thank you, Mike. Next question coming from the line of Bill Papanastasio from Stifel. Bill, the floor is yours. Yeah, good morning. Congrats on all the progress made scaling the company's Bitcoin mining and AI HPC initiatives.

First one on Bitcoin mining, are you able to share your thoughts on where you think hash rate and economics could trend following the industry's push to AI HPC and just general commentary on the strategy going ahead? Thanks. Yeah, for sure. Thanks, Bill. So we currently are at a difficulty of 152 trillion, difficulty downward corrected recently after 156 all-time high, 156 trillion being an all-time high. Now, what I would point out is the last correction of difficulty going from 156 to 152 trillion, we actually were at a before the adjustment, we were sort of at a hash price in the 42. Now, I'm going to explain this sequentially because there's two variables: Bitcoin price and difficulty. Right now, I'm referring to when difficulty adjusted. Of course, Bitcoin price was in the $102,000 range at that time.

Bitcoin price at the $102,000 range at that time, we saw hash price sort of in the low $40 per petahash per day range. That downward adjustment difficulty brought us up a bit to the kind of going from $41-$42 up to $43-$44. Obviously, as difficulty drops, hash price increases. We sort of saw that. Recently, in the past five days here, we've seen Bitcoin drop from $102,000 to $99,000, and now we're sitting at $93,800. That has put hash price back down to $40 per petahash a day. I think consistently what we've seen since the halving is that the hash price floor on a seven-day moving average has been $40. I guess actually at $93,800, we're at $39 hash price. It will be telling to see what happens over the next epoch.

The next difficulty adjustment will be November 26. We are still about 10 days away from that. If the hash price floor of the last year is an indication, we would expect a downward adjustment. Although as more efficient machines have come online over the course of the last year since the halving was in April of 2024 to around 2025, we could see the hash price floor perhaps become incrementally lower, perhaps in the $36-$38 range. We will know sort of in the course of the next week. A lot of the peers are not public. When I say peers, publicly traded Bitcoin miners have not announced significant expansions. Of course, Bitdeer as being a producer has brought online more hash rate. I think Cypher has got themselves to 23 exahash. Marathon, Iris, they are all hovering about 50 along with CleanSpark.

That hash rate is online. I do not see that going anywhere anytime soon. However, again, we did see difficulty downward adjust. There will certainly be smaller scale miners, perhaps with less efficient machines that are shutting off their hash rate capacity when we see hash rate in the $39-$40 range. We are definitely closely watching it. The good thing is our break-even hash price is about $22 per hash a day on a global fleet adjusted basis with a 17.5 joule per terahash global fleet efficiency. We have mined every quarter since I have been with HIVE since 2021 profitably. We upgraded our fleet accordingly, very intentionally, to be able to mine with positive gross mining margin through to the next halving. Look, with the Fed coming out, hopefully there is a rate cut in December and easing that quantitative easing cycle.

Hopefully there's more liquidity and we see a rally in risk on assets such as Bitcoin. Time will tell, but we're very much aware and monitoring things. In the meantime, continuing to mine profitably. Appreciate that caller, Aydin. Another one, if I may. Within the HPC stream, curious how we should just be framing our estimates between that base case and blue sky opportunity. Are you able to share your targeted composition? Yeah, yeah. That's a good question. A very good question. I think, as I sort of alluded to with Mike, we expect it to land somewhere in between the base case and the case with the additional, or I should say higher margin revenue with the cloud stream, or sorry, with the Buzz platform stream enabling higher margins on the cloud business.

I think you'll have your answer sooner rather than later because as we, again, we're bringing these GPU clusters online first with Bell. Again, we expect those for 1,000 GPUs to come online through the course of Q1. This morning we announced the purchase of the first 500, which we expect to get delivered before Christmas. Now, of course, it takes time to plug in, configure, and pressure test these clusters. Frank often likes to give a very helpful analogy. From six hours of receiving an ASIC, you could have it hashing. It's more like six weeks when you're building an InfiniBand cluster with a bunch of GPUs. We've got our first cluster of GPUs live in January, this 500 January, the second 500 coming online within a month or two of there. You'll see sort of what those figures are like.

Effectively just stay tuned for fiscal Q1, sorry, calendar Q1, which would be fiscal Q3, period end March. You'll see that. You'll see those numbers. Awesome. Thanks so much, Aydin. Yep. Appreciate the questions, Bill. Next, we'll go to the line of Chris Brendler from Rosenblatt. Chris, the floor is yours. Hey, great. Thank you so much. Congrats on the results. Very impressive progress here. I just want to ask a question on the Bitcoin mining business for a second. The improvement in gross margins here, and I know the network has gotten more difficult, more challenging from a competition perspective, but your gross margins improved significantly quarter over quarter. With the sort of a full quarter run rate of the phase three complete now, I would expect the gross margins to continue to improve.

Just wanted to take your temperature on that thought that your hash costs are going to continue to decline and your gross margins, all else being equal in the Bitcoin mining business, should continue to improve now that you're fully up and running on phase three. Yeah, you've got it bang on, Chris. The Q2, fiscal Q2 we just reported, the average hash rate for that quarter was 16.1 exahash. That was period end September. That hash rate, I believe that it was phase two of our Paraguay project, so 200-300 megawatts was completed in that quarter. However, today we're at 25 exahash. That milestone we just reached last week. We had sort of provided an update on that, that we put out a press release that we hit 300 megawatts. We completed 300 megawatts, which is super exciting.

We hit 24 exahash operational, 25 exahash were installed. There was some short-term just seasonal curtailments. We're talking like a day or two at a time here in Canada. A few days ago, we actually hit the full 25 exahash operational as well. That is super exciting. Of course, we're in November now. To your point and to further answer your question, yes, more hash rate coming online with our latest generation 15 joules per terahash S21+ Hydro machines are hitting the tape. Therefore, it will bring that average hash cost down as well as our cost of electricity in Paraguay is cheaper. You are getting two factors there that are attributing to improved gross mining margins. Yeah, that's right.

Again, just for your model there, I believe it was 16.8 exahash was the quarterly average operational hash rate for period end September. Again, that is covering the growth from July, August, September. We obviously ended the period at a higher number. I think it was closer to 20, but nevertheless, you had quite a ramp. What is the average of that ramp for the entire quarter? I believe it was 16.8. Until this quarter, you could sort of interpolate the data just simply using our monthly production reports, what was October, which we put out not too long ago. You will see November reports in December. You will be able to figure our average operational hash rate. Again, all the new hash rate we brought online is at 15 joules per terahash.

The global average with the full 25x a hash online is 17.5 joules a terahash. We believe the monthly production reports are helpful for the analysts when doing your model. We know some of our peers have sort of stopped doing monthly production reports. I mean, I know why broadly, they're sort of trying to rebrand themselves or perhaps not advertise the fact that 99%, 97% of the revenue still comes from Bitcoin mining. No names. I mean, everybody knows. Yeah, I believe Bitcoin is the world's energy-backed decentralized currency. We have had a wonderful year transforming our business to institutional scale. As that business has flourished, I believe pound for pound, we are the best Bitcoin miner in the sector. We lead in ROIC as evidenced in our quarterly metrics again. It is not something we are going to shy away from.

Of course, HPC business is in Buzz, which is our PurePlay subsidiary. But it's part of our dual engine strategy. So there you go. I hope that's helpful. Yeah, sure is. Thank you so much. My follow-up question is on capital strategy. I mean, at a high level, just the tremendous amount of growth you've had over the last year and you've got big plans for next year as well between HPC and Bitcoin mining. Phase four, I guess, is now on the table for Paraguay. How do you think about balancing the capital needs between HPC and Bitcoin mining? Is there a preference at this point? Are you still looking to grow both at the same rate? In my presentation, what I outlined was we have the additional 100 megawatts in Paraguay, which was awarded to us.

Currently, our global operating capacity is 440 megawatts with 300 megawatts in Paraguay. Now we have been granted an additional 100 megawatts of green energy by ANDE in Paraguay, which is great. What's attractive about that is that it's actually at an existing site. The Yguazú site, when we bought it, was actually designed and all the civil work has been done for 300 megawatts at that site alone. But we've built it as a 200 megawatt site because those are the transformers that were ordered and that's sort of what Bitfarms had near term. That's all been completed. To get that extra 100 megawatts online, all we're doing is bringing on a couple more transformers for the substation and the medium voltage and then dropping hydro mining infrastructure in place.

To sum that all up, the punchline is a quarter million dollars a megawatt to expand that 100 megawatts, which is incredibly attractive. As we'd mentioned before, our all-in cost for land, substation, everything was $400,000 a megawatt for our Valenzuela site and our Yguazú site. Because this is an expansion of an existing site that's already complete, it's a nominal incremental cost. That's one portion of the CapEx. The bigger portion, of course, is I think all the analysts on the call and a lot of the very enthusiastic retail investors and certainly institutions are aware that a cluster of Blackwells, like a 1K cluster with InfiniBand and everything, is roughly $60 million. If you're bringing on 6,000 GPUs, it's about $360 million. That's significant CapEx.

If you've got vendor financing for that, then that is the most significant component of CapEx that you've now alleviated. At least in terms of relying on equity financing or, say, taking on debt in the capital markets or having a derivative like a converter or anything. What we're really enthusiastic about is that with vendor financing, we're able to scale that GPU business. Again, Bell being a colo, there's no significant CapEx for us. That ramp to the first 2,000 GPUs of our projection, getting us from $20 million to $60 million of ARR, we're able to realize through the colo with Bell and vendor financing on the GPUs, no significant CapEx, which is really nice. Of course, as I think it was Darren's question, the only CapEx we have to finish is with Little Bowden in Toronto, $25 million and $40 million respectively.

That gives us our ramp and our pipeline to operate 6,000 Blackwells globally in addition to our existing fleet of 5,000 GPUs to the tune of an 11,000 GPU cloud globally. Yeah, it is about being very balanced and strategic with how we deploy capital and where we can have what we believe is the creative leverage. We will pursue that. We have, and I am very happy to announce that we have now got this capital plan laid out in addition to really support the growth. Great. Thanks so much, Aydin. Yep. Excellent. Good question. Thank you, Chris. Time for a few more questions, two more. Next question comes from the line of Fedor Shavelin from B. Riley. Fedor. Thank you very much, Operator. Good morning, everyone. I did not trust the call. Thank you. Thank you very much for putting out monthly updates. That is helpful.

Question-wise, could you please provide an update on the timeline for the Brunswick data center, including whether construction will be phased or completed at once? Additionally, should the colocation agreement not proceed, hypothetically, is there a path to fully utilize the capacity for AI cloud demand? How long would it take in this case, including timing for arranging financing for GPU procurement? Thank you. Yeah. I think the takeaway from the presentation we provided, we actually wanted to emphasize that the conversion of the New Brunswick site, especially given its proximity close to the border of Maine, actually makes it very opportune as a hyperscaler colo project. We are very much aware that right now, especially institutions, we were in Miami for the Cantor Conference, which was an absolute home run. I think Cantor did a phenomenal job putting together that event.

It was extremely well attended. The quality of the attendees on both the buy side, and I mean, you basically had the whole industry and all of Wall Street there. At any rate, it is clear that the street is valuing hyperscaler colo because they like the stability and they like the scale of those revenues. If you want to do a 100 or 200 or 300 megawatt site for hyperscaler colo, you can now allocate a large amount of capital. If you have got a long-term lease, as we have seen some of our peers announce, now you have got stable cash flows, lower margin.

I mean, just I think all the analysts on this call are well aware, but maybe for the other people that are dialed in, just if you look at it arithmetically, if you were to sign a lease, one of our peers recently did a lease that worked out to $102 a kilowatt a month on hyperscaler colo, all you do is you divide that by 730 hours, and it works out to 14 cents a kilowatt hour. So the unit economics of the hyperscaler colo are relatively modest, 14 cents a kilowatt hour. When Bitcoin was at a $42 hash price, our ASICs were doing 12 cents a kilowatt hour. It's not too far off from that. $55 hash price, our ASICs were doing 15 cents a kilowatt hour. That's 21 pluses. And your base operating costs in mining is with power and so forth is about a nickel.

You're doing relatively high margins and quicker ROI. If you're a $50 hash price range, something like a year and a half ROI after CapEx. That's why I like the dual engine strategy. Again, because we're aware that people like the scale and stability of hyperscaler colo, even though the ROI period is more like seven-eight years, depending on what your dollar per megawatt CapEx is to do the conversion with a long-term contract, it is being valued in the street. Right now, as we've positioned our 2026 targets, we've got both. We've got GPU revenue from operating AI cloud, hyperscaler colo as we've targeted for New Brunswick, and then, of course, the Bitcoin mining business. The $85 million target, Fedor, was actually based on hyperscaler colo.

We did want to point out, though, that if you were going to base it off of GPU reference architecture based on latest generation GPUs, you could operate 25,000. Right now, our target and our focus is to get through the conversion of Toronto as well as Sweden and the Bell partnership to bring online those 6,000 GPUs. Stay tuned for updates on the strategy and status of the conversion of New Brunswick and directionally which way it goes. Again, I sort of emphasize that the projections we provided in both cases, I had those two projections on HPC revenue. Both cases were predicated with New Brunswick as hyperscaler colo. I would say just stay tuned for updates on that strategy and developments there. Thank you very much. Continue your best of luck. Thank you. Excellent.

Final question comes from the line of Joe Vaffe from Canaccord. Joe, the floor is yours. Hey, guys. Good morning. Terrific progress. Great to see it. Just can we drill down a little bit on Itaipu and Paraguay? Clearly becoming a very strategic location for HIVE and very differentiated. I know Aydin, you did mention the Stargate initiative in Argentina, Patagonia. Clearly, Stargate likes the clean power angle as well. You could kind of just drill down. I know you've been down there. I know Frank has been down there a lot. You're close with the government and the president. How much power do you think is there, additional power available to HIVE out of Itaipu? Maybe what's the president of Paraguay thinking about AI and things like that as the industry develops things?

What we've noticed is, I mean, the President of Colombia, sorry, the President of Paraguay, Santiago Peña, he's like the ministers, the President, they're all internationally educated. They're all extremely bright. I mean, Peña, I think he's 46. I believe it was his birthday. He just turned 47. These are young, really smart guys, Joe, that want to position their country. They've been internationally educated. I mean, in the U.S., I believe Peña studied at Columbia University. They want to position their country for success. They're aware of, they're very much attuned to the data center industry. We saw that OpenAI went down to Argentina to talk about a Latin American Stargate with SurEnergy. We, of course, have been talking with the Paraguayan government about the future of data centers in Latin America and HPC in Paraguay.

I think that it's definitely on the horizon, and it's something that we're incubating and seeing how we could support and be a catalyst to help bring that vision to life. I would say that there's a vision for it right now. What we're trying to do is be a catalyst for that vision in Latin America by working very closely with Peña and the various ministers, again, who are extremely business savvy. Paraguay is a country of 6 million people, but it's also home to the largest hydro dam by production. The Itaipu Dam, by the way, maybe I'll put it on Twitter. Luke and I took a photo. It has a Guinness World Record banner when you approach it. It's actually kind of set up as a tourist attraction. Anyone can go there, marvel of engineering, etc.

How do you monetize those vast natural resources? I think Frank's often talked about how as we grow our footprint going from 300 to 400 megawatts in Paraguay, that means US dollars paid in a timely manner for the government of Paraguay. Moreover, we believe that directionally, power prices are going to get attractive in this region. They are attractive, and I think they're going to more so become attractive. That's sort of what I could say for now. Let's just say we're working on a lot of things and stand by for updates as we have them. That's great. Just quickly on a follow-up, I think the Brazilians and the Paraguayans share the power off that dam. I mean, a Wikipedia search, I think it's like 15 gigawatts coming off of Itaipu.

Have you had any discussions with the Brazilians at this point? Because I think they're probably getting a lot of the power off the dam. Just wondering if you're exploring other things in the region, given your Itaipu position. Thank you. Yeah. Various studios. So yeah, it's about 14 gigawatts. When we were there in December of last year, it was producing 10.7 gigawatts on that day, 10.7 gigawatts. And we actually, Jamie Brown came down for a visit in September. That was a YPO event that Peña hosted. It was at the Central Bank. It was at the Presidential Palace. We went over to Itaipu. I believe that the dam was only producing about 8 gigawatts that day or yeah, exactly. That dam has a lot of capacity, exactly 14 gigawatts. Might be 14 point something, closer to 15.

When we were there, I recall it being 14 gigawatts. The arrangement is that the power is actually sold. When you go to the dam, it is called Itaipu Binacional. There is a border, and you have both Brazil and Paraguay. The power is actually sold to Brazil. I think what happens is there is sort of a more nuanced outlay where the Itaipu infrastructure project has recently completed its CapEx. The construction cost of this magnificent facility, it has paid itself off. It has paid itself off. Now what we are entering into in the 2027 era is what will that look like going forward now that it has been paid off? When I was referring to, we believe that the pricing of power from the Itaipu Dam will directionally be favorable. That is what I was getting at.

You have asked a very good question. You have clearly done your homework. That is all I can say for now, my friend. Stand by for updates on that. You are kind of pointing in the right direction. Again, with OpenAI coming down to Argentina, of course, Argentina is a neighbor of Paraguay as well. We think that there is going to be some very exciting potential activity, both in terms of having abundant green energy. We are also doing initiatives to help improve the grid as well. Part of, as we showed how we were refurbishing the schools in the community, that is goodwill at HIVE, right? No one has asked us to do that. We have done that because we think it is the right thing. Frank and myself and our whole executive team, we really much value education, even if it is at a primary school level.

Of course, we have great education for the staff that work at our facilities. Frank's a huge sports guy, as anyone who knows him knows. We love to sponsor sports teams as well. You kind of take it up a level. When you're working with utilities and the federal government, how can we help improve the grid and contribute to the nation's infrastructure? Stand by. We're working on things that we'll provide you updates on over the course of the next year. Great. Thank you very much, Aydin. Yeah. Thank you. Thanks for tuning in. Excellent. Thank you, Joe. Thank you to all of our analysts and our attendees. We appreciate you joining us this morning. That concludes our Q&A session and our Q2 2026 earnings call. Thank you for joining. Thank you for your support.

We look forward to speaking to you again soon.

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