Good afternoon, everyone, and thank you for participating in today's conference call to discuss AVAX One's financial and operating results for the second quarter, ended June 30, 2026. Joining us today are the company's Interim Chief Executive Officer and Chief Operating Officer, Pete Wylie, and the company's Chief Financial Officer, Chris Polimeni. By now, everyone should have access to AVAX One's second quarter 2026 earnings press release. which was issued earlier this afternoon at approximately 4.05 p.m. Eastern Time. The release is available in the investor relations section of the company's website at www.avax-one.com. A webcast replay of this call will also be available on the company's website. The following management remarks will open the call up for your questions. Please be advised this conference call will contain statements that are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain unknown and unknown risks and uncertainties as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties are described from time to time in the company's filings with the SEC. You are urged to not place undue reliance on any forward-looking statements, which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements. For important risks and assumptions associated with such forward-looking statements, please refer to the company's SEC filings. I will now turn the call over to Pete Wylie, AVAX One's Interim Chief Executive Officer and Chief Operating Officer. Pete?

Thank you, operator, and thank you all for joining us today. We are seeing continued development across the Avalanche ecosystem that has reinforced our conviction in the network's long-term potential and the strategic value of AVAX One's position within it. That progress is becoming increasingly visible across a broad range of applications including institutional settlement, tokenized assets, validator participation, and large-scale commercial platforms. In our view, the growing breadth and sophistication of these use cases demonstrate that Avalanche is moving beyond experimentation and toward real-world deployment. That evolution is particularly significant in financial services, where institutions are increasingly focused on the practical applications of blockchain technology in payments, tokenization, settlement, and other financial workflows. We believe Avalanche is well positioned to support that transition. Its architecture enables institutions to build purpose-built blockchain environments tailored to their operational, regulatory, and performance requirements while remaining connected to the broader Avalanche ecosystem. Asset's recent migration of LINK provides a clear example of how that model can work in practice. Asset is a financial technology company that provides blockchain-based payment and settlement infrastructure to regulated financial institutions. LINK is its real-time settlement network designed to help institutional participants transfer value and complete transactions more efficiently. TACIT moved LINQ onto a dedicated Avalanche Layer 1, effectively giving the network its own customized blockchain environment. This allows TACIT to control how the network is configured, who validates transactions, and how data is managed, while still benefiting from Avalanche's speed and scalability. TACIT's broader infrastructure has processed more than $2.5 trillion in transactions. and we believe this migration demonstrates Avalanche's ability to support secure, institutionally oriented financial infrastructure at scale. Beyond institutional finance, Avalanche is demonstrating its ability to support large-scale consumer applications. During the 2026 FIFA World Cup, FIFA Collect, the organization's digital collectibles platform, operated on an Avalanche-powered blockchain. While the use case is distinct from payments and settlement, provides another example of Avalanche supporting a globally recognized platform with a broad consumer audience. Avalanche is also continuing to improve the network's underlying infrastructure. Helicon, a recent protocol upgrade, has been activated on the Fuji testnet where new features are evaluated before potential deployment to Avalanche's live mainnet. Among other changes, Jolie Kahn introduces automatic renewal for validator staking and proposes reducing the minimum primary network staking period from two weeks to 48 hours. While these changes are not yet live on mainnet, we believe they could provide validators with greater flexibility and make participation more accessible to institutional operators. The combination of these deployments illustrates the breadth of activity emerging in the Avalanche ecosystem, from institutional settlement and tokenized assets to validate our participation in large-scale consumer applications. For AVAX One, the continued expansion of the network reinforces our conviction in Avalanche's long-term potential, and in turn, the strategic rationale for maintaining and growing our AVAX Digital Asset Treasury. Turning to our operations, AVAX One is organized around three core pillars, our Avalanche Digital Asset Treasury, Bitcoin mining, and the selective development of AI and high-performance computing opportunities. Our Avalanche Treasury is central to the strategy. We currently own more than 14 million AVAX tokens and equivalents, including approximately 800,000 which have been deployed into Treehouse, providing us with meaningful exposure to the continued growth of the Avalanche ecosystem. By staking a significant portion of these holdings directly through the network, we participate in network validation and earn protocol-native rewards, creating an ongoing source of revenue while increasing our AVAX holdings over time. Our second pillar is Bitcoin mining, which continues to provide recurring operating revenue across our facilities in Alberta and Ohio. Over the past year, we've expanded the platform through additional mining equipment, including 220 machines added to our Alberta operations, while continuing to operate our 5-megawatt Bald Eagle facility in Ohio, which is powered by flared natural gas. These operations also provide valuable experience managing power generation, equipment deployment, and energy intensive infrastructure. We will continue to manage each site with a focus on operating performance, energy efficiency, capital discipline, and the productive use of our existing assets. Our third pillar is AI and high performance computing. We believe our experience operating power intensive infrastructure, managing energy costs, and deploying modular equipment provides a practical foundation for this developing strategy. In Alberta, we are advancing a power-first deployment model centered on behind-the-meter natural gas generation, modular construction, and energy advantage sites with the goal of delivering reliable compute capacity on a faster and more capital-efficient basis than traditional grid-dependent projects. We will continue to evaluate infrastructure opportunities selectively with a focus on technical feasibility, customer demand, capital requirements, and the potential to generate durable recurring revenue. During the second quarter, we announced an initial AI inference pilot at our Redwater facility involving the potential conversion of approximately 100 kilowatts of excess mining capacity to AI workloads. The pilot is designed to assess the technical requirements and potential economics of inference computing using infrastructure already within our operating footprint. Alberta remains an area of interest given our existing presence and familiarity with the regional power market, although we will pursue opportunities selectively based on economics, capital requirements, and strategic fit. In addition to executing across our three operating pillars, we were evaluating strategic opportunities that could strengthen and expand the platform. These opportunities may arise within our Avalanche Treasury and ecosystem strategy, Bitcoin mining operations, or AI and high-performance computing initiatives. Our focus is on accretive opportunities that can build durable revenue and cash flow while enhancing the productivity of our existing assets. This includes potential acquisitions, partnerships, infrastructure investments, and operational initiatives that complement our capabilities and improve the long-term economics of the business. We carefully evaluate each opportunity based on the quality of the underlying business or asset, its strategic fit, expected financial contribution, and capital requirements. Our objective is to pursue transactions, strategic relationships, and other opportunities that strengthen AVAX One's operating foundation and create sustainable long-term value for shareholders. Looking ahead, we are intently focused on building a stronger, more durable operating platform. We will continue to allocate capital selectively across our three pillars, pursue opportunities that can expand recurring revenue and cash flow, and remain active under our share repurchase program when we believe our shares trade below the intrinsic value of the business. We believe these initiatives, coupled with our prudent approach to capital allocation, will enable us to deliver long-term shareholder value. With that, I will now turn the call over to our Chief Financial Officer, Chris Polimeni, to review our second quarter financial results.

Thank you, Pete. As a quick reminder, as we review our second quarter 2026 financial results, all comparisons and variance commentary will refer to the prior year quarter, unless otherwise specified. Total revenue for our second quarter of 2026 was $2.8 million. which represents a significant increase compared to approximately $500,000 in the second quarter of 2025. This increase primarily reflects our transition to the Avalanche Digital Asset Treasury Strategy in Q4 of 2025. Our revenue in the second quarter of 26 consisted of approximately $2.1 million in staking rewards revenue from our Digital Asset Treasury. as well as approximately $700,000 in revenue from our Bitcoin mining operations. Our total operating expenses for the second quarter of 2026 were $36.2 million compared to $1.8 million in the second quarter of 2025. The operating expenses for the second quarter of 2026 included $33 million in non-cash charges. related to A, $29.8 million unrealized loss in the change in market value of our digital assets, B, a $2.6 million impairment of our Treehouse liquid staking tokens, and C, a $600,000 share-based compensation depreciation expense. Excluding these non-cash charges, our adjusted operating expenses for the second quarter of 26 were $3.2 million. We reported a net loss for the second quarter of 2026 of $35.1 million or $4.41 per diluted share, compared to a net loss of $8.1 million or $335.88 per diluted share in the second quarter of 2025. Excluding the aforementioned nine cash expenses, adjusted net loss for the second quarter of 2026 was $2.2 million or $0.27 per diluted share. As of June 30, 2026, our total liquidity was approximately $21.1 million, consisting of cash and cash equivalents of $11.4 million, restricted cash of $5.4 million, and an escrow receivable balance of $4.3 million. This compares to approximately $27.6 million in total liquidity as of December 31, 2025. We believe our liquidity position coupled with our ability to generate additional liquidity by leveraging or liquidating the digital assets earned through staking and Bitcoin mining will provide the company with sufficient liquidity to fund our operating expenses as well as to execute our growth strategy without the need to raise additional capital. As of June 30th, 2026, the last day of our second quarter, Avex One held approximately 13.2 million Avex tokens with a net value of 86.3 million. Approximately 700,000 TA VEX tokens through our deployment with Treehouse with a net value of approximately 5.3 million and approximately 31 Bitcoin with a net value of approximately 1.8 million, resulting in a total net value of our digital assets of approximately $93.5 million. Since the inception of our Digital Asset Treasury Strategy in November of 25, we've generated approximately $4.7 million in staking revenue, with our staking activities producing an annualized yield of approximately 5.3%. Subsequent to quarter end, as announced last week, we completed the restructuring of certain outstanding convertible debentures, reducing the related principal balance by approximately $6.8 million. The transactions included the full repayment and retirement of debentures held by two institutional investors and a reduction in the principal amount and amendment of certain terms of a debenture held by a third investor. The restructuring was funded through cash on hand and a reduction in the related escrow receivable. We believe this action meaningfully reduces near term liabilities, strengthens our balance sheet, and enhances our financial flexibility as we execute against our three pillar strategy. Looking ahead, we are focused on executing our three-pillar strategy while maintaining a prudent approach to capital allocation. We will continue to evaluate high-quality opportunities across the Avalanche ecosystem, Bitcoin mining, and AI and high-performance compute infrastructure with an emphasis on opportunities that can strengthen our operating performance, expand recurring revenue, and generate attractive risk-adjusted returns. We believe these initiatives will enable us to execute our growth and profitability initiatives. This concludes our prepared remarks and we will now open it up for questions from those participating in the call. Operator, back to you.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions.

And our first question comes from Derek Greenberg with Maxim Group.

Please go ahead.

Hey, guys. My first question is just on the CEO Transition. I was wondering if you could talk a little bit about what you're looking for in a candidate. I guess what kind of experience and background they bring and what kind of qualities they have.

Sure. We're not commenting publicly much more than we already have on the search itself. But I think our three pillars are quite clear. Building the Avalanche Digital Asset Treasury and enhancing our Bitcoin mining operations and exploring AI infrastructure. So certainly, candidates that have experience in and around those spaces are going to be the ones that we're evaluating, but won't make much further comment at this time.

Got it. And then on the third pillar in particular, the AI data centers, I was wondering kind of where your focus lies. I know previously there was kind of a target of powered land at the Alberta location in 1Q27. I was wondering if that's still a firm plan or if you're kind of looking at everything more opportunistically now, if you could just talk about that.

Sure. We remain focused and exploring opportunities in Alberta through a partnership with Blue Flare primarily.

Got it. On the Redwater inference pilot, could you just talk about how that's progressing and What's your seeing and learning thus far?

Sure. It remains on track, but we have yet to actually deploy the equipment. There was a long lead time to secure all needed assets to commence the pilot itself, so we're still on track to launch it on schedule, but we have yet to actually get the operating results back from the pilot and look forward to updating the market when we do.

Okay. Got it. That's it for me for now. I'm going to hop into queue. Thanks, guys.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines and have a wonderful day.

Thank you, everyone.