Earnings call transcript: Hive Digital Tech sees strong Q1 FY2026 growth

Hive Digital Technologies (HIVE), now commanding a market capitalization of $1.59 billion, reported robust financial results for the first quarter of fiscal year 2026, showcasing significant improvements in revenue and profitability. The company’s Q1 revenue increased to $45.6 million, up from $32.2 million in the same period last year. The stock price reacted positively, closing 4.64% higher at $9.7, contributing to an impressive year-to-date return of 143%. According to InvestingPro analysis, HIVE is currently trading above its Fair Value.

Key Takeaways

• Revenue for Q1 FY2026 rose by 41.6% year-over-year.
• Net income turned positive at $35 million, compared to a net loss of $18.3 million in Q1 FY2025.
• Hive plans to expand its Bitcoin mining capacity significantly by the end of 2025.
• The company has launched Canada’s first sovereign AI cloud provider, Buzz HPC.

Company Performance

Hive Digital Technologies demonstrated a strong start to FY2026, driven by substantial increases in revenue and net income. The company’s strategic focus on expanding its Bitcoin mining capacity and developing AI infrastructure has positioned it well in the evolving digital technology landscape. Hive’s efforts to optimize its operations and maintain low general and administrative costs have contributed to its improved profitability.

Financial Highlights

• Revenue: $45.6 million, up from $32.2 million in Q1 FY2025.
• Adjusted EBITDA: $44.6 million, compared to a loss of $8 million last year.
• Net Income: $35 million, reversing a net loss of $18.3 million in the previous year.
• Gross Operating Margin: 35%, an increase from 33% last year.

Outlook & Guidance

Looking ahead, Hive aims to achieve substantial growth in its Bitcoin mining operations and AI infrastructure. The company targets $315 million in annual recurring revenue and expects to mine 12 Bitcoins daily by American Thanksgiving. Hive also projects a potential annualized mining margin of $335 million under current economic conditions. InvestingPro data shows the company maintains a strong financial position with a Current Ratio of 3.42 and an Overall Financial Health Score of "GOOD", suggesting robust operational stability.

Executive Commentary

Eitan Killick, President and CEO of Hive, stated, "2025 is really the year of Hive," highlighting the company’s strategic initiatives and growth potential. Craig Tavares, President of Buzz HPC, emphasized the synergy between Bitcoin mining and AI, noting, "Bitcoin mining has become that large catapult for AI."

Risks and Challenges

• Volatility in Bitcoin prices could impact mining profitability.
• Regulatory changes in cryptocurrency markets may pose challenges.
• Competition in the AI infrastructure market is intensifying.
• Dependence on renewable energy sources for data centers requires careful management.

Hive Digital Technologies’ Q1 FY2026 results reflect a strong recovery and strategic positioning in the digital technology and cryptocurrency sectors. The company’s focus on innovation and expansion is expected to drive future growth, though it must navigate potential risks in a rapidly changing market environment.

Full transcript - HIVE Digital Technologies Ltd (HIVE) Q1 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 Quarter Ended 06/30/2025. My name is Nathan Fast. I’m Director of Marketing and Branding at Hive. I’ll be your moderator for today’s call. Before we get started on Slide two, we’d like to briefly note the disclosures for today’s presentation.

Except for statements of historical fact, this presentation contains forward looking statements within the meaning of The U. 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 eight ks furnished to the SEC. On the next slide, I’m pleased to introduce today’s presenters: Frank Holmes, Executive Chairman Eitan Killick, President and CEO Darcy DuBarris, Chief Financial Officer and Craig Tavares, President and Chief Operating Officer of Buzz HPC.

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, for the introduction, and it’s my honor to be with this great executive team. It’s interesting. This executive team is, I think, now, the longest standing CEO and CFO, in the industry. The turmoil over the past five years of the change of the guard of leadership in the crypto mining companies has been over and over. And we’ve stayed consistent and reliable and always showing up as most efficient, top tier, miner as we’ve also build out the first to go and build out the AI sector.

So today, I’m going to go through the macro recap of where we have basically had an incredible year and where we’re going. So let’s hop on to the next slide before we get into the granularity. Well, a five as you can see from this data that every asset class has its own unique DNA of volatility, and it’s important for investors to understand that. And while a 5% plus or minus daily volatility for high for 16% over ten days moves may seem extraordinary compared to the S and P 500 or gold, they are normal in the emergent Bitcoin ecosystem. This volatility is not a flaw.

It is a natural byproduct of a high growth global twenty four seven industry and an asset class that is still maturing. And for Hive, it is precisely this volatility, combined with operational excellence and strategic growth and a green power infrastructure that creates the, I would say, this unique outsized return. And it’s not to become fraught and worried about that DNA of volatility, but use it to your advantage. As you can see here that, Tesla is very, very similar to HIVE’s DNA volatility and strategy Michael Saylor’s, Bitcoin holding company is really has a greater volatility. The next is really a a recap as to this year in 2025 is transformative for Hive because it’s we are the fastest and biggest growth story in the Bitcoin mining industry.

And, hopefully, we’ll be able to show you that in a short notice where it’ll also be for next year. But this is huge growth coming from six to 15. Many people did not expect, anticipate that by August, we would have such, great significant growth. But the numbers that are coming in for the quarter end is before we hit 15 ex a house, which is today. And so I’d like to hop over to the next visual to give you an idea for the the comparison of looking at our year end was March 31, and that twelve month annual revenue, the gross revenue was a $115,000,000, and the adjusted EBITDA was about 56,000,000, and the gross operating income was 25,000,000.

We’re very proud of those numbers because they include the halving of Bitcoin. So even with the halving, we were able still to generate a gross operating income of 25,000,000. And now with the scaling underway this year, in particular, seeing the growth in Paraguay, the quarterly results are starting to populate, and they’re showing you at the June that our top line revenue growth rate was $45,000,000 and the adjusted EBITDA just for the quarter was 44,000,000, which is almost what twelve months was after that happening, and the gross operating income of 15,000,000. Now what happens is I’m gonna walk you through as many analysts then say, well, that’s going to be, if you forecast that for next four quarters because you’re ramping up, these numbers will be much higher. And in fact, since now, August, we’re at 15 exahash, these numbers are even greater than the numbers you’re looking at right now.

Next, please. So using back of the envelope and no past performance is guaranteed for future results, I’m just looking at revenue for that quarter. It would have a forecast of $182,000,000 top line, EBITDA of $178,000,000 and gross operating income of 63,000,000 Well, today, it’s even higher than these numbers. But you have to remember, have to wait for the audit numbers that come out the September for this summer quarter and, and what they will look at. But we did make in press releases this top line revenue growth is running at over 300,000,000 now.

Next, please. The largest noncash items for Hive for the quarter, was the you could see the reevaluation of of Bitcoin in our balance sheet and the volatility of Bitcoin can move up and down. These are noncash items, and we saw a swing here of 23,000,000. And depreciation is also another significant as you buy new GPU chips for the AI build out or ASIC chips for the Bitcoin build out in the data centers. The depreciation charges are quite high.

Next, please. These are powerful visuals to show you, our scaling, to put things in perspective in Paraguay. And this is 15 x a hash of Bitcoin hash rate as an advancement in Paraguay. And this has accelerated because of our, M and A activity in buying of Bitmain’s, not Bitmain, but Bitfarms operations, in Paraguay, and that has allowed us to really accelerate our footprint from 100 x 100 megawatts of electricity to 300 megawatts. And, the leadership by, shown by the country president, Gabriel Lamas, has been outstanding as we’ve been able to scale more rapidly than anyone anticipated.

But what’s really important in the next visual is that price is what you pay, but value is what is what you get. And and scaling four x a hash discipline and 4x a hash of Hydro Online leads into the next visual that we do not forget, these communities that we’re involved with. At Hive, value goes beyond just record revenue and EBITDA by lasting benefits that we deliver to our communities. We’ve done this in Sweden, with the hockey arena and the hockey team training for kids in Northern Sweden. And in Paraguay, where we’re scaling our renewable power data centers, we’ve invested in the future education of local grade schools, installing air conditioning, which is so key because the temperatures are average a 100 degrees.

And we’ve also put street lighting, as this visual shows you here, that the mayor put up thanking them, because we’ve lit up 14 streets so that the mothers and parents and kids are safe in these small towns that we’re located. This is not just an ESG check the box. These are tangible long term contributions that enhance the quality of life, improve learning conditions and strengthen our partnership with the local communities. It was a pouring rainy day. I was there last week.

And, these are fresh photographs of us going and visiting the school and being thanked by the the kids who were just out of school. And this is this is the open forum, whereas in Texas or Canada, everything is has four walls put behind it, and here it’s still open. And this school is almost 80 years old. Next, please. So truly, we believe in social impact investing for building a brighter future in Paraguay.

So let’s hop to Toronto, in the next visual, please. So we go we operate over nine time zones in five languages and using sourcing hydroelectricity from three countries, Canada, Sweden, and now Paraguay. But coming back to Toronto, what’s important is that it’s not only Canada’s largest city, It is now which has surpassed in population Chicago. It’s a diverse population from 50 countries, and it’s a hub of education, research, and innovation leading to inventions and cutting edge medical research and globally recognized breakthroughs, including the discovery of insulin for diabetes. This unique mix of scale, talent and innovation makes Toronto one of North America’s most vibrant cities for finance, technology, life sciences, and live theater.

It is the third largest live theater city in the world. The underground system, the subway system, is over 50 miles connecting underground the whole city, and the surface transportation, buses on every major street and small streets and streetcars, has almost almost 750 miles of busing coverage on surface. And when we look at the University of Toronto, the next slide, it’s played a pivotal role in the development of deep learning and neural networks, including work by Doctor. Jeffrey Hendon. It was propagation and his other breakthroughs.

It was called the Botsman machine, which is recognized as foundational for modern AI. In essence, the University of Toronto is arguably Canada’s and one of the world’s most influential hubs for AI. Its impact, stacks from academic breakthroughs. And we’ve seen this. We’re based in San Antonio, Texas, that the University of Texas San Antonio is the leading university for cybersecurity.

So, therefore, that leads to NSA having huge operations in San Antonio to be able to tap into the intellectual capital. And Toronto’s reputation as an AI capital, with Jeffrey Hendon receiving a Nobel Prize, next visual, for his AI breakthrough, is really quite significant. So the University of Toronto foundational research, institutional ecosystem, over 50 languages, global influence, and applied, innovation. We said this is so key and the push now globally for sovereign data centers to have a footprint in Toronto. So while building in Toronto, we are leveraging Canada’s AI leadership supporting sovereign data infrastructure.

And Craig Tavares, our president of Buzz, will give you more information and give you insights on that. But this is a classic what we’ve seen with data centers for Bitcoin mining is a stepping stone for the AI build out globally. We’re seeing this all over the world. And and so we are really happy to see that we’ve got a 40,000 square foot building that’ll go from what’s called tier one to tier three and then be able to build out our suite of NVIDIA chips, which will be used for our AI business. We are now Downtown Stockholm and in Downtown Montreal, and hopefully, in the next short order, to be Downtown Toronto.

The next visual, please. So what’s really been significant for us in moving to the head office to, San Antonio, Texas, has been the comfort of regulatory pronouncements. And we’ve seen this this year. The Genius Act signals a major shift toward regulatory clarity, institutional adoption of Bitcoin in The US, and the being the world’s largest capital market for formally recognizing Bitcoin legal status is setting clear compliance guidelines, and we think it’s very significant for the global Bitcoin ecosystem. So what we’re the next version, please.

So the Genius Act, the four zero one k executive order of Texas Strategic Bitcoin Reserve, all these developments are very important for the global Bitcoin mining revenue and the ecosystem and the credibility of the ecosystem. Also, this act these acts are very important for America to push back with a blunt push against China’s dedollarization and China’s attack with the BRICS nations against the US dollar for trade around the world. So it’s important to see that the CLARITY Act, is another important step in this for progress and America is showing this leadership. Next, please. Well, price is what you pay is what Warren Buffett likes to say, but value is what you get.

And intrinsic value is what is key. And intrinsic value is a true worth based on future cash flows, competitive edge, and business quality, and that’s what HIVE is doing. And we’re seeing, at this stage, that we are growing the intrinsic value of HIVE faster than what the price of the stock price is. And, historically, there is a snap up. And I think what this release today of showing what’s happened this quarter and the September are very significant in Hive being rerated by institutions.

There’s other things that are really important in the capital markets, which happened this year in addition to the cap Bitcoin, and the regulatory guidelines, but is is as you’re witnessing, huge stock buybacks. Next, please. I recently wrote, on Forbes and discussed the records buybacks and stock buybacks, and I’ve seen that The Wall Street Journal has also commented and written about stock buybacks. But let’s hop to the next visual about the analysts and and all the research and coverage we’re getting targeting a 6 to $8 stock price. Well, why?

Where do they get these numbers from? And I and I think the big part is is the proving out that you can grow and scale, which we’re doing. And then we’re seeing, some significant mergers and acquisitions take place in the industry. And it’s the unlocking of value in the next visual, what recent deals say about highs worth. Core Weave, which is a hyperscaler, which has got the tremendous support of Microsoft and, NVIDIA, is to acquire Core Scientific.

Well, why are they buying Core Scientific, and what are the value metrics for that? They’re buying it because they’ve sourced energy, and they have land, and they have energy. And these hyperscalers need to have access to both land and electricity. With that, we’re seeing a huge build out. And who’s first to go into a lot of these sort of areas where there was stranded electricity or wasted electricity have been Bitcoin miners.

And it was Bitcoin miners in West Texas were for absorbing flare gas, surplus electricity from solar energy, and from, wind energy. And and so now all of a sudden, there’s great value being placed on these early adopters. I’ve been bit of Bitcoin miners. And I look at HIVE as also being very early, being the first crypto mining company, but very early in sourcing and developing. And when we look at Paraguay, not only are we helpful for the government of getting steady U.

S. Dollar cash flow every month, helping with the ecosystem and building out the infrastructure. What happens when you go to tier three? What is the valuation metrics? Well, if you look at data center, the next visual, is is a simple back of the envelope.

The data center peer average is about nine times enterprise value to sales, a high praise of 1.5. If you look at enterprise value to EBITDA, it’s 3.2, but the data center average is 21. And so, therefore, there’s lots of upside where price catches up to the intrinsic value that the management team is creating for the Hive shareholder. Long term sustainable value creation. The next visual is is is sort of articulate to explain to investors Stargate, which is in West Texas, in Abilene, where there’s this massive epic $500,000,000,000 AI mega project.

There’s been wonderful, coverage on this in Bloomberg and on YouTube that if you’re really curious, you can go and take a look at. It’s, over 2,000 acres. It has over 2,500 construction workers, and it is tapping into surplus wind, surplus solar, and natural gas energy, to build up for the the secular bull market in AI. So stay tuned, to HIVE as it participates being early in in capturing energy and building out data centers in Bitcoin mining and AI. Next, please.

I wanna welcome, Ivan Kilic, our CEO, who will give you more granularity on what’s happening in the global Bitcoin and AI build out. Thank you.

Eitan Killick, President and CEO, Hive Digital Technologies: Thank you, Frank. That was an excellent macro summary, great insights into the industry and our growth. I just want to add that for the past ten years, we’ve really seen bitcoin mining emerge as a unique catalyst in unlocking stranded or otherwise unused energy resources. By monetizing surplus power, for example, it allows utilities to have a higher base load and then sell energy to miners when grid demand is low. Really, miners provide a flexible, location agnostic and reliable demand source that transforms isolated or excess energy into economic value.

And this model incentivizes the build out of renewable projects by turning intermittent output into steady revenue. We believe that financial markets are increasingly recognizing the positive climate and economic benefits of such operations. And so the infrastructure that has been built for digital asset mining becomes ripe for new layers, notably HPC and for AI, due to parallel requirements for dense power and robust cooling. So with that being said, let us jump into my summary for HIVE’s Q1 twenty twenty six. So it was a phenomenal quarter, a record quarter for us, really.

Over 45,000,000 in total revenue. Of that, approximately 90% came from bitcoin mining operations from our green energy global footprint and approximately 10% from our HPC AI business, which is very exciting. Of that $45,600,000 in revenue, we did approximately 38% of the gross operating margin, yielding about $15,800,000 of cash flow from operations. And very remarkably, a super strong quarter, 35,000,000 of net income with $44,600,000 of adjusted EBITDA. We ended the quarter with $4.35 bitcoin on the balance sheet.

And again, we have the Bitcoin pledge strategy, where we have pledged a large quantity of bitcoin at $87,000 and we have the ability to purchase that bitcoin back before the end of the year at zero interest. And that’s very exciting, and that’s a strategy that will allow us to increase our hodl as the year goes on and our free cash flow from operations grows. And we felt that this was a very accretive way to scale our bitcoin mining business because if we pledged almost $200,000,000 of Bitcoin, that otherwise would have required share issuance or taking on debt. So without dilution and without taking on debt, we’ve been able to scale approximately $200,000,000 worth of CapEx using this pledge strategy, which, by the way, is now profitable. Approximate estimates were over $40,000,000 in the money on our pledge strategy right now if we were to look at the value of the bitcoin that we pledged relative to its current market price today.

So I think that Hive, in addition to having great uptime, low G and A and best in the sector ROIC, we’ve been very strategic in growing our business in what we believe is an accretive manner for our shareholders. And the last highlight here is 15% trailing twelve months ROIC, which again leaves the sector, and we’ll get into more detail shortly. By the way, I would also want to add that I do think that HIVE stands out in this new era of vertically integrated AI infrastructure. We’re lightly leveraged. We have a very transparent growth model.

We’re powered by renewable energy, and we provide regular reporting of our Exahash milestones. Our model, proven through scalable mining in Canada, Paraguay and Sweden, is rapidly being adapted now for Sovereign AI and HPC as well. The recent Toronto data center deal, which we’ll talk more about, and the prior acquisition of Bitfarms Paraguay assets really positioned HIVE to hyperscale its footprint precisely as the market begins to appreciate that infrastructure built for Bitcoin is now amongst the most coveted asset class for the AI super cycle and the ongoing global HPC land grab. Let’s jump to the next slide. So it is also worth noting that our earnings per share grew 206% year over year, dollars $0.01 8 earnings per share on a diluted basis.

And while our diluted shares outstanding increased to $192,000,000 which is a 74% increase, you could see that our earnings per share outpaced that significantly. And we had significant growth when we completed our construction project in Paraguay, the Phase two sorry, Phase one and two, 200 megawatts of our expansion in Paraguay. And we’ve talked about this before. It was a phenomenal deal. Our all in cost to acquire and complete the construction worked out to $400,000 a megawatt.

Well, 200 megawatt, that’s an $80,000,000 CapEx as well, dollars 100 megawatts in Valensuela, similar costs, another $40,000,000 that’s $120,000,000 in construction CapEx. So of course, you are going to have some equity that goes towards acquiring and building out that infrastructure. But 400,000 a megawatt is incredibly attractive. And we effectively acquired the 200 megawatts in Iwazu at cost, and that allowed us to bring our hash rate online very rapidly. So even though we issued shares, we believe it was accretive in the end as we’ve seen our revenue per share and now our earnings per share grow.

And ultimately, we want to demonstrate the best ROIC for our shareholders. If we are deploying capital, we expect to make more money back from what we spent. And that’s just how we strive to do business at that high. And I think the numbers show it. Let’s go on to the next slide.

So it was a phenomenal quarter for bitcoin mining. We did 4.5 bitcoin per day on average, $4.00 6 bitcoin mined for the quarter. And our average exahash, again, is period end June 30, was 8.7xahash. Keep in mind, we scaled during this quarter, and we brought online our first phase of Iwazu, the first 100 megawatts. And since then, what’s very remarkable, like in the August, we’ve continued to scale the business.

We’re today operating at 15 eggs of hash, doing 7.5 bitcoin per day on average today. So again, we’ve grown our production by over 65% from where we were this fiscal reporting quarter to where we are today in the August. So looking forward and where we are today, really, we’ve continued to deliver growth and scale. Once fully built out, we’ll have a four forty megawatt green energy footprint for bitcoin mining. And again, we do this all with our capital allocation strategy, optimize for ROIC.

And moreover, we accomplished this all having the lowest G and A per bitcoin mined in the industry and best in class uptime. Let’s go to the next slide. An overview of our expansion in Paraguay. We’ve talked about this a lot. This is just an update of where we are.

Again, 2025 has been a landmark year for Hive as we scale to 25x hash. Keep in mind, we started the year at 6x a hash, and that’s over 4x growth getting to 25. We’re at over 15x a hash days. You could see that we’ve been consistently executing on our strategy and showing to the Street that Hive really is a top performing bitcoin miner. We’re experts in the game.

I believe pound for pound we’re the best. And I think the numbers show that. So Phase one was completed ahead of schedule, the first 100 megawatts at Iwazu, 5x a hash of air cooled. Phase two, six point five exahash of hydro miners, S21 plus from bitumen, 15 joules per terahash. You can see the aerial photo here.

We are over twothree done. It’s 4.5 exahash operating to date out of 6.5 exahash. In the next few weeks, Phase two will be 100% complete. And moreover, the third phase of construction construction sorry, the third phase in Paraguay, which is Venezuela, the construction is essentially complete, and we will start installing ASICs in September. So super exciting.

Again, we’re operating over 15 megs of hash today. And another big piece of news, we are fully funded, and we have fully paid for all our ASICs to get to 25 megs of hash. So between now and American Thanksgiving, we have ASICs arriving on an almost weekly basis to scale us from 15x to 25x a hash. That’s it. We’ve deployed the capital, the CapEx is deployed, we’re fully funded.

And from here, it’s just continued growth as the ASICs that have been fully funded and paid for arrive and get installed. So it’s a very exciting time. And we’ve talked about using our free cash flow from operations to pay for all OpEx. And our Bitcoin CapEx has been taken care of. So we’re very excited about that.

Next slide. A metric showing our growth. So on an ARR basis, you could see how we are scaling the business here. And so we’re at $315,000,000 ARR today, and our fleet efficiency continues to improve because we are bringing on the S21 plus hydro in Phase two and three of our growth in Paraguay. So that actually improves our energy efficiency from 19 to 18.4, ultimately 17.5 joules per terahash by calendar Q4 this year.

And you can see how our ARR scales with that. So it’s very exciting. And let’s hop to the next slide. So you can sort of summarize that into two major catalysts. The completion of Phase two gets us to 18 exahash.

And said differently, it’s about 9 bitcoin per day of production at current difficulty. By the way, difficulty is at $129,000,000,000,000 So we’ve updated our slides here just to reflect current mining economics. And of course, with 25x the hash by American Thanksgiving, we are looking at producing approximately 12 bitcoin per day at current difficulty. I’m here, of course, with Gabriel Lamas, our country president Lou Grossi, our global COO and Carlos Torres, our site operations director. I was just in Paraguay in June.

I’m going to be back there in a few weeks. I’m super excited. Big smiles on all our faces. As you can see, a lot of heavy machinery, a lot of earth being moved, a lot of T6 being installed. Let’s hop to the next slide.

So as a result of those catalysts, you can see here what does that look like. So let’s use a $60 hash price scenario. As our efficiency increases, our gross mining margin also improves, right? And so as we get to 18x at half, that’s roughly a $390,000,000 ARR. Well, that would be $230,000,000 of mining margin.

At 25x and we’re talking in a few weeks here, right? Like the target summer, we’re on track. We put out press releases. Every time we hit an exahash, just to let the investors and all the analysts know we are hitting our milestones on schedule. So 18 eggs of hash is slated to come online in the next few weeks.

That will be $230,000,000 of gross mining margin on an annualized basis. And by American Thanksgiving, $335,000,000 of annualized mining margin at today’s economics. So very exciting. And I think that we’re a bargain right now. Our market cap is $500,000,000 and we have over 400,000,000 for bitcoin on the balance sheet.

So you could do the math, right? That’s almost $50,000,000 of Bitcoin on the balance sheet. By the way, we have that call option that allows us to get our HODL back to over 2,000 Bitcoin. And our cash flow from operations will be over $300,000,000 in the next couple of months here as we anticipate our third and final phase to complete on schedule. Let’s look at the next slide.

Here’s an update to our annualized mining margin scenario analysis with bitcoin at 100,125 thousand dollars $150,000 Now the update is because we see a new all time high with Bitcoin at $129,000,000,000,000 sorry, Bitcoin difficulty. And we’ve also seen new all time high of Bitcoin price at $123,000 this week. So that’s exciting. And really, what you’re looking at is $49 hash price, dollars 61 hash price and $73 hash price. So we look at it as miners.

If you sort of use a $100,000 $125,000 $150,000 Bitcoin price. So with that being said, all this information is at the top of the chart. Really, what we are looking at, if Bitcoin treads in the mid range here, say, around $125,000 through the end of this quarter, our mining margin is about $345,000,000 on an annualized basis. And again, this is based on the 25x of hash in the next few months. If Bitcoin does rally to $150,000 we are looking at over $450,000,000 of mining margin.

Considering our market cap is $500,000,000 today, and by the way, we have about $50,000,000 of Bitcoin on the balance sheet, it’s a very attractive time, I think, to be a Hive shareholder. Again, we’ve worked really hard to scale quickly and bring this hash rate online. And you can’t perfectly time the market, but when the wind is at your back, it’s obviously a nice situation to be in. So anyways, we obviously plan for downside and we manage risk, but this is what it’s looking like based on different Bitcoin price points. So that being said, let’s hop to the next slide.

From today, where we’re at 15x of Hash, growing at 25 by American Thanksgiving, we still have 67% growth between now and then. And the rest of the industry is really kind of tapered off. I mean, CleanSpark and Iris have hit super scale. Mira’s got a bit of growth, 10%. Bitfarms, Cypher and Riot, five percent to 8%, not too significant.

So again, 2025 is really the year of high. That’s why we’re so excited. Obviously, the 300 megawatt growth in Paraguay has been transformative for us. And I think that, again, with where we are today and where we’re going, it’s very exciting. And that, again, is 15 going to 25 ex a hash.

So let’s go to the next slide. As mentioned, $4.35 bitcoin held as of quarter end. We, as of today, we’ve deployed all our CapEx for the ASICs. And so we have ASICs steadily arriving between now and 25x of hash. We mined $4.00 6 bitcoin for the quarter.

Right now, we are trading at the most attractive enterprise value to adjusted EBITDA. And as mentioned, we’re currently mining, as in August, 7.5 bitcoin a day. Plus, again, we have over 5,000 NVIDIA GPUs in Canada and Sweden. We hit our $20,000,000 ARR target, which is very exciting. And of course, we’re NVIDIA cloud partner.

Next slide. So we’ve talked about having an optimized ROIC strategy, and you will see that we lead the sector again in that metric. But it’s not just about that, right? We’re very disciplined with capital allocation. That’s how we realize these yields and best ROIC.

It’s all data driven. It’s very mathematical. We look at we’re constantly scanning the market for ASIC prices, which, as you know, very ASIC prices are a commodity. And it’s all really a mathematically ordained looking at ROI, understanding hash price, looking at your machine efficiency and then performing sensitivity analysis on a multivariate basis. Because again, you really have to plan for your downside.

Everybody looks like a rock star in a bull market. It’s about how do you do in a bear market. And again, we’ve mined profitably every single quarter since the bull market of twenty twenty one. Through the bankruptcies of Celsius and FTX and all that sort of stuff, we mine profitably. And again, that is how we realize I mean, we optimize for ROIC.

And we do mine our ASICs through the end of their economic life cycle. That way, you maximize your yield on those investments, right? You dismantle or unplug ASICs if they’re still cash flowing. And of course, we’ll do things like optimize firmware, underclock, whatever may be based on hash price at any given time to make sure we truly maximize the life of an ASIC and upgrade when we see a signal in the market, then we could get a sub-one year ROI after operating costs. Next slide.

So here’s what it looks like. Trailing twelve months, we’ve realized 15% ROIC, and we lead the sector by a long shot. I expect this figure to grow further as more cash flow comes online. This current quarter, again, we hit 15 exahash. The previous quarter, which we’re reporting on here, was an average of 8.7 exahash.

And you can see how our peers fare sort of in the 0% to 3% range is where a lot of our peers are. And even Cipher, we’re double that figure. They’re 7.3%. We’re 15.3 CleanSpark, a respectable 11.2%, but it’s still trailing significantly. Let’s go to the next slide.

Lowest G and A. This is done on a cash basis. And by the way, our revenue, right now, again, we’re $315,000,000 ARR. And so we are looking at today, if we were to represent this bar chart, our G and A as a function of revenue would be significantly less than what we’re showing. But again, this is based on our quarterly financials, 45,000,000 of revenue.

So that’s roughly $180,000,000 ARR based on the quarter. And we’re standing at 12%, right? So if we were at over $300,000,000 ARR, that would be closer to 8%. But anyways, you can see we lead the sector. And again, some of our peers have really high cash G and A.

We actually strip out the share based comp here just so on a cash basis. And again, this is after direct operating costs, this is just corporate G and A, right? And so you see a lot of the peers are north of 20% just on G and A. So huge executive cash comp, tons of staff, huge marketing budgets, huge sponsorships. We like to get out to all the conferences.

We will sponsor. We’ll have a presence to get the high game out there. But we’re not spending $2,000,000 on a booth or doing anything like that. And over time, those numbers really add up, you sort of see here. And some of our peers have huge top line revenues, too.

So take that into consideration when you reflect the percentage that’s going towards corporate G and A. Next slide. A little summary of our data center footprint. So again, four forty megawatts of green energy mining hydro for the Bitcoin mining business. And of course, we recently announced the acquisition of our 7.2 megawatt site in Toronto, which is sort of a 5.5 megawatt IT load.

And this recent acquisition in Toronto is a perfect example of how legacy Bitcoin mining infrastructure does really provide an invaluable launch pad for the AI area AI era. This new facility is going to be our first wholly owned Tier three quality data center. We’re going to leverage liquid cooling infrastructure. It’s going to power our Sogden AI strategy for Canadian enterprises and government initiatives. Operating one of America’s North America’s dentist fiber optic and research hubs, I mean, the Vector Institute is based in Toronto, godfather of AI, Geoffrey Hinton.

We’re really future proofing our business model by transforming existing sites built for proof of work into sovereign high density GPU clusters, really to position ourselves in the explosive growth of the AI industry. Let’s go to the next slide. We are operating at scale today, again, over 5,000 GPUs, which includes one of Canada’s first supercompute H200 clusters at 63 node, over 500 H200 GPUs and all with InfiniBand. And again, we hit that 20,000,000 ARR. So very exciting standby.

We’ve talked about that Toronto data center. That will house next generation liquid cool compute. Here’s a beautiful photo of our GPU clusters here. And we’re developing an enterprise tech stack to power the sustainable compute. So some really exciting things happening.

And the way our GPU clusters are set up now through strategic partners, they’ve got over 10,000 monthly unique accounts, right? So it’s about operating and being able to serve a lot of clients. So there’s a lot that goes on the back end with the complexity, especially at the software level. So standby for super exciting news from Buzz HPC as we’ve branded our GPU pure play HPC business. Creative ours will be providing some more color on that.

Next slide. And our revenue growth, the $100,000,000 target for 2026. We believe that the Toronto data center with Blackwell GPUs will get us to that target until standby. It’s about a one year retrofit to bring that Toronto Airport site to a liquid cooled infrastructure that would house either B200s or B300s. But market rates we’re seeing that would get us that would add about $80,000,000 ARR to our current existing.

So it’s very exciting. And standby for updates as Buzz provides more press releases as that project advances, and Craig will be providing more color. Let’s look at the next slide. So let’s just zoom out and look at HIVE as a stock trading against our peers. So our enterprise value relative to our hash rate puts us at a very attractive price.

If you were to look at the average, the peer average, enterprise value to exahash is about $66 And that was high at $1,000,000,000 market cap today. And people say, Oh, yes, but some of these guys have HPC strategies. So do we. We’ve got to pack to $100,000,000 of ARR for 5,000 bitty GPUs. Buzz is buzzing.

It’s super exciting. So we’re actually, I believe, the first, if not one of the first, Bitcoin miners to actually have HPC revenue on our income statement two years ago. So we’ve been doing this for scaling and standby for huge and exciting news. And of course, next slide, as we get to our 25 exahash and then you look at where the peer average is based on projected year end, it puts us at a $1,300,000,000 market cap based on peer group average, again, at that exahash to enterprise value multiples. So I think that we are doing great things at Hive.

I think that we’re building a lot of shareholder value as our cash flow continues to grow. I think that our stock is due for a rerating as we hit that critical mass and we hit that critical scale. So it’s been a great quarter. Since June 30, we’ve continued to grow. Again, we’ve gone from 4.5 to 7.5 Bitcoin per day.

A lot of exciting things happening at Buzz. And, Bitcoin is looking strong, this sector. And by the way, we had increased mining margins, I wanted to point out. Hash price was actually down quarter over quarter, about $51 period end June, and it was $54 period end March. And our operating margins actually increased by 10%, went from 28% gross operating margins to 38% gross operating margins.

Again, our average cost of power in Paraguay brings down our global average cost. So that’s trending in the right direction, of course, with the new generation Hydro ASICs, improving our energy efficiency, breaking down the average cost to produce a bitcoin. And that will continue as we scale to 25x a hash. And now I will turn it over to the long standing CFO in the bitcoin mining industry, Mr. Darcy.

Darcy DuBarris, Chief Financial Officer, Hive Digital Technologies: Thank you, Aydin. Good morning, everyone, and thank you for joining us today. For the first quarter, I’ll be walking through the results. As a reminder, we are providing certain non GAAP measures in our presentation today. The company believes that these measures, while not a substitute for measures of performance prepared in accordance with U.

S. GAAP, provide investors an improved ability to evaluate the underlying performance of the company. These measures do not have any standardized meaning prescribed under U. S. GAAP and therefore, may not be comparable to other issuers.

Further details are found in the management discussion and analysis for the three months ended 06/30/2025. Moving on to the next slide. I’ve ended the year 06/30/2025, quarter with 204,300,000.0 common shares, 2,700,000.0 options, 9,900,000.0 RSUs and 32 or sorry, 3,200,000.0 warrants outstanding. And on the next slide, let’s start with the key highlights for the quarter. For Q1, we generated $45,600,000 in revenue and delivered $44,600,000 in adjusted EBITDA.

Production for the quarter was $4.00 6 bitcoin equivalent, supported by stable operations and strong uptime across our sites. 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 take pride in maintaining a very healthy balance sheet. As of June 30, we held $24,600,000 in cash, 47,300,000.0 in digital currencies and $34,500,000 in receivables and prepaids.

That totals $180,600,000 in current assets against $52,800,000 in current liabilities. We also maintained $33,700,000 in strategic investments. This liquidity allows us to manage market cycles, invest in expansion opportunities and avoid overleveraging the company. With that context, let’s now 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 Q1 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 to $15,800,000 in the most current quarter compared to $10,700,000 in Q1 last year. In this most recently completed quarter, we are reporting a basic income per share of $0.19 compared to a net loss of $0.17 per share reported for Q1 last year. Taking a look at our revenue increases year over year on the next slide. We generated total revenue in the 2026 of $45,600,000 versus $32,200,000 in the previous year’s first quarter. The revenues compared to the same quarter in fiscal twenty twenty five can primarily be attributed to the expanded hash rate that we are experiencing from the Paraguay expansion that is well underway.

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 15,800,000.0 or 35% in the most recent quarter compared to $10,700,000 or 33% in the prior year comparable quarter. That’s a direct result of our optimization of our mining fleet, the expansion in Paraguay and improving overall operational efficiency. Now if we zoom in to just the last two quarters, you’ll see an even bigger improvement on the next slide. Comparing our current fiscal Q1 quarter to the previous Q4 quarter, we generated revenue in this Q1 quarter of fiscal twenty twenty six of $45,600,000 versus $31,200,000 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 we also had higher high performance computing revenues.

Our gross operating margin increased to $15,800,000 or 35% in the most recent quarter compared to 8,800,000.0 or 28% in the prior year’s comparative. This increase in gross operating margin versus the prior quarter was greatly due to the comparative BCC prices and resulting revenues and increased ex ASH. And on the next slide, I’d like to remind our stakeholders that our net income is comprised of our operational earnings or cash flow plus our investment earnings, which includes realized and unrealized earnings, which often includes noncash charges. Our adjusted EBITDA in this quarter ended 06/30/2025, was $44,600,000 versus adjusted EBITDA of negative $8,000,000 in the 06/30/2024 period. I will highlight again that adjusted EBITDA is a non GAAP figure.

For this completed quarter, we experienced net income of $35,000,000 compared to a net loss of $18,300,000 in the previous year comparative. On the next slide, the quarter over quarter view tells a similar story. Our adjusted EBITDA in the 2026 was a profit of $44,600,000 versus an adjusted EBITDA loss of $30,700,000 in the previous twenty twenty five Q4 quarter. In the 2026, we experienced net income of $35,000,000 compared to a net loss of $52,900,000 in the previous Q4 quarter. Q1 fiscal twenty twenty six was a solid quarter for Hive.

We delivered strong revenue, expanded margins and maintained a robust balance sheet. Our operational discipline and cost control measures continue to position us well to compete in a challenging environment and capture opportunities for growth. I want to thank our loyal stakeholders and encourage them to follow our expansion efforts over the next six months.

Craig Tavares, President and COO of Buzz HPC, Hive Digital Technologies: Hi, everyone. My name is Craig Tavares. I’m President and COO of Buzz High Performance Computing. I’d like to just do a quick introduction on Buzz. We’re a fully owned subsidiary of Hyve Digital Technologies.

We’re actually one of the first Canadian sovereign AI cloud providers. And I’ll explain that a little bit more later. But we essentially own and operate large GPU clusters in vertically integrated data centers around the world. Our legacy as a crypto miner provide us a stepping stone to become one of the leading AI cloud providers as we deployed our HPC and AI business early last year. Bitcoin in general has actually become that large catapult for AI in general.

And if you look at the large data center providers and GPU cloud providers in the market today, you could see that Bitcoin had become the catalyst for those that had access to power and land to develop data centers of those large GPU clusters that consume the data centers. So Buzz, in general, is very different than a lot of the other providers in the market because we focus on delivering a full suite of infrastructure services and solutions for AI. And we do it by offering a local touch in the domestic markets that we operate in, but we maintain a global reach. We currently operate in Sweden and Canada with a fleet of over 5,000 GPUs. We’re a certified NVIDIA cloud partner, really building to the highest performance standards.

And we’re redeveloping a powered facility that we own in Sweden to become a new Tier three data center. It’s strategically located down the street from a metadata center, which means that we have rich network access. And that’s important when you look at the large number of platforms and applications that you want to host in your data center. But we offer a wide range of infrastructure and professional services catering to that AI development that we hear about on the mark today and being able to really accelerate the AI development is important because it requires that accelerate compute infrastructure at scale. We hit a revenue growth ramp at record speed this year, and it’s really layered in with a positive cash flow.

And now rapidly, we’re scaling to 100,000,000 ARR. Being sovereign really means that we secure and guarantee your data. That also means that, that data resides on your nation’s soil and immune to foreign policy. This is a large part of our go to market. In addition to that, it also means that the infrastructure and operations are all domestically owned.

So we operate at scale as a sovereign provider, and we are the experts at building and optimizing large GPU supercompute clusters. We like to really help promote the development AI by democratizing access to this accelerated compute hardware. And it really has become a unique thing because it’s not easy to manage, it’s not easy to maintain. Only the few that have that experience and knowledge that know how to do it will survive in the market and be able to scale in the market. We also do it in a very sustainable way.

So we launched green GPUs in the market some time ago based on the fact that all our data centers are powered by renewable energy. And our data center, as an example, operates with the highest efficiency. So we run some of the lowest PEUs in the market, which stands for power usage effectiveness. And that just means that we’re using power in the most effective way so that we reduce the amount of power consumption to cool and operate the data center, but also create higher margins in our business. So ultimately, when you look at all those vectors, we’re bridging the gap between AI and sustainability.

And the last thing that I want to talk about is really the customer service that we deliver and solutions that we deliver. So first, with customer service, we have some of the quickest onboard times into our platform in the market. We have some of the fastest response times, and we’re well known in the market to deliver an amazing customer experience, but we back it up by performance guarantees as well, too. So if you do business with Buzz, we support that with SLA or a service lever agreement to back up those guarantees for response time, uptime and at the end of the day, making sure that, again, your environment stays performing to the highest level. When we think about sovereign and you think about the solution set to deliver Sovereign, it’s become a new standard in the market.

And some customers may not need Sovereign because we cater to a broad set of customers, whether you’re a researcher, a startup, scale up, and then across the other side of the spectrum to mid market, enterprise and government, all of those customer segments can use our platform and do use our platform. And at the end of the day, sovereign has just become, again, a new standard that defines what we call enterprise grade platform. And enterprise grade platform means that we maintain the highest security level, resiliency level, reliability and high performance that we can offer to the market. Starting with our data centers, we operate in Tier three plus data centers, again, maintaining that high performance resiliency in the markets that we operate in. Inside the data centers, we deploy the high performance clusters that I spoke about earlier, which is based on NVIDIA GPUs, InfiniBand networking, and vast data storage.

On the virtualization layer, we deliver bare metal servers. Or if you want containers, we deliver managed Kubernetes and dev pods. Perhaps you need virtual machines to run your environments layered with Slurm. But whatever it is, we can customize and tailor that environment for you. On the tooling side, being able to build data pipelines support for AI.

So we offer all the tools for data pipelining, data prepping. And then if you’re training a model, tuning a model, or running an inference endpoints, we, have the capabilities to support that as well too. And then we’ve really started to build out our AgenTic workflows as well too. So if you’re developing AgenTic AI, you can do it on our platform. Equally as important as scaling out our Sovereign AI cloud strategy is investing into our own data center assets.

So where we owned land and power, we really looked at developing data centers in those markets. Bodern is an example of that. So in Sweden, we have owned land and power with a shell and a building that we’re developing into a Tier three high performance compute data center. It will be liquid cooled with high density racks, so it can support the most demanding workloads possible in the market. So we’ll be able to scale our GPU infrastructure out within that facility.

And in Toronto, we just did a recent acquisition of a seven megawatt facility that can scale higher. And Toronto, again, was a key market for us because really, when you look at data center development, it comes down to three major things. One is access to the power to scale, the type of power, cost of power. And then the other one is really a geographic location based on its network connectivity. So really having that low latency to the Internet highway is super important to support many different applications that we see today, whether the traditional applications or AI applications for inference, you really want to maintain the fastest network access possible to that data center.

And then the last thing is really being in a market where we have rich ecosystems built around AI. And that’s what Canada is in general, and especially being in Toronto, we’re at the center of the epicenter to some of the world’s world class leading institutions for AI, such as Vector, Mila, Scalaei, AIMEE. So again, being in that market was super important for us. Both of these facilities will go live next year. In summary, we really achieved maximum utilization across all our GPU clusters early this year.

So that we ensured we had an ability to really hit that ROI, maintain a high level of profitability, achieving, again, just amazing EBITDA on the infrastructure that we deploy and monetize. And outside of that, we’ve built amazing pipelines of customer demand. So it’s prompting us again to expand as rapidly as we can in a lot of the local markets we operate in. But we leverage all our existing power facilities and access large scale power to accelerate the growth of our data center footprint, again, within Canada and Sweden because it gives us access to the North American markets, to the European markets, And it allows us to maintain, really the capacity at scale when the market needs it. Deploying the latest and greatest cutting edge NVIDIA GPUs is one of the things that, again, we’ve done really well over the last couple of years and then really continuing to do that in the future.

But we’re continuing to build out really, again, this compute infrastructure in the market that caters again to the sovereign markets and also the global markets. This is not trivial because it’s something that even the largest cloud providers haven’t quite figured out as yet. And we do it at a fraction of the cost compared to some of the largest players in the market. But in the end, the cloud has evolved and sovereign is new standard. So Buzz is really the solution to this new shift, and we’re helping to provide the digital infrastructure to accelerate AI innovation domestically and around the world.

Nathan Fast, Director of Marketing and Branding, Hive Digital Technologies: Thank you, Craig. That concludes our Q1 twenty twenty six earnings call. Thank you for joining and we look forward to speaking to you again soon.

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