Hello, and welcome to today's webcast covering Hive Digital Technologies financial results for fiscal Q1, 2027. My name is Nathan Fast, Director of Marketing and Branding at Hive, and I'll be your moderator for today's call. Before we get started on slide two, I'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 1995. We will also reference certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income, and Free Cash Flow. Management uses these metrics to evaluate operating performance and believes they provide investors with additional insight and they're presented for supplemental purposes only and should not be considered in isolation from GAAP results. Reconciliations to the nearest GAAP measures are included in the appendix to this presentation and in the press release in Form 8-K furnished to the SEC. 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'd now like to hand the presentation over to Mr. Frank Holmes for a macro recap of the quarter.

Frank? Thank you. And so let's do a quick macro cap of what's been affecting stock markets and high stock price and valuations over this past recent quarter. Next, please. So before we jump into those granular details, it's always important to understand the DNA volatility and every asset class has its own DNA volatility. And this is the highlight that for especially we find so many people like to trade hive. It's because of that volatility. It is a non-event over one day to go up or down 6%. and over 10 days, 23%. You can see that's a little more than core weave. It's substantially three times more than what Bitcoin is and four times more what Nvidia is when we look over six trading days. So it is just the factor of these macro forces pulling with these announcements from what Bitcoin is doing on a daily basis to the announcements of our AI build-out. So when we have a strong Bitcoin day and good AI sentiment, the stock has these big surges. Vice versa, a negative day in the world of AI and Bitcoin down and you get these downdrafts. These appear to be the factors driving a lot of the sentiment. The leadership team has been up here before. Aydin, the CEO, the best operator in walking through why in the data center business, and Craig Tavares, our superstar sovereign builder, I mean, incredible builder of data centers, build out our vision in Canada in particular, which is the fastest track that we have. And the government's committed to it with having a minister for AI. Darcy Daubaras, our CFO, Gabriel Ibghy is in Europe, and Gabriel Lamas is in Paraguay, and Johanna Thornblad is also in Europe. Time operates over nine time zones in five languages, and we're able to manage that complexity and still be one of the most efficient Bitcoin miners. And our HPC AI data centers that we have functioning today in downtown Montreal, Stockholm, in Manitoba and British Columbia. Our efficiency is always ranked by third party. It's the top of the stock. Hive has always used green energy. Canada, Sweden, Paraguay. Low electricity costs, low temperature, fast internet connection. And what we've been doing is to accelerate the AI build-out is dark fiber. Dark fiber in British Columbia. Sorry, Dark Fiber in New Brunswick in Canada, and Dark Fiber is next to be laid in Paraguay. But we've been able to demonstrate on this ability to export, create, convert electrons and exports to what they call compute power 5,000 miles away. So that's pretty impressive. And so we're pretty excited about what the opportunities down the road is in Paraguay. I want to thank all the shareholders. You can see Invesco, Citadel Advisors, Millennium Management, Two Sigma Investments, Charles Schwab. Charles Schwab is probably the biggest in the retail component from Register Investment Advisors and the retail public. So thank you all for listening to the call, for being shareholders. For the quarter ended June 30th, You can see that high vote performed this 50-day moving average. It had a big sell-off along with the whole industry in July. And it was one of the biggest outpouring in the month of July by hedge funds. And a lot has to do, which I'll mention later on, about the carry trade of Japan and the significance of this sort of domino effect, a contagion. Japan wanted their money back because rates are going up. and it impacted first the Korean stock market which was one of the best performers last year up about 100%. It had a huge correction as a particular technology and AI related stocks sold off out of South Korea and we saw that domino effect impact in America and we saw a lot of AI and anything related also being deleveraged and I think that that's sort of worse is behind us and these sentiment factors, they swing back and forth and what investors have to realize is this carry trade in Japan is quite significant in my years as a money manager of seeing the swings back and forth globally of what it's done and so it appears that the worst is behind us right now out of the Japanese economy. We're happy to see that five outperform Bitcoin at the end of June when you look over that time period this year. And I think a big part is much of our AI strategy and announcing the growth in the revenue from a million a month to $3 million a month and now expanding that will be going to five to six to $10 million a month with these contracts that we're building. And we have machines. that have been increasing this year to date substantially over the year. The daily cash flow coming from our GPU chips, in particular the suite of Nvidia chips we have. I mentioned earlier that Japan carry trade on wine as a macro risk. I think the worst is behind us, but any rising rates in Japan will have a big impact. We've seen the administration come into support. Thank you for joining us. and get U.S. rates from 4% up to dividend-paying stocks and speculative stocks. That was starting to unwind as Japan started seeing their rates rise and they want their money back. This is a real important phenomenon for investors just to be able to follow the Japan carry trade because it impacts you. You don't realize why the stocks are up or down during the day. There's no news. and it could be an unwind or reloading around the world. Well, it's been exciting to respect that last year, we substantially increased our hashing power in Paraguay in particular, taking a rural complex from 6x a hash to 25. That gave us economies of scale. And that gave us the ability to deal with the drop in Bitcoin pricing and the difficulty rising. and those are two real significant headwinds, especially in February of this year we hit. And we've been able to make money every month, even though, and I can share with you, have we not strapped on that additional power, it would be very difficult to be operating a Bitcoin operation. but we have this key scalability at 2% and then redeploying our Bitcoin into expanding our AI Gigafactory vision. So Aydin is going to give you and Darcy, our CFO and Aydin Kilic, our CEO is going to give you more granularity on these numbers. But underneath the hood, underneath all these non-cash charges such as The depreciation that we have to take for our chips, and in particular, the non-cast charges out of Sweden, which we'll have more discussion on as we go on this ongoing battle with the Swedish tax agency, which changed the rules from when we initially went there. The interpretation. The laws haven't changed. It is their interpretation because they're very anti-crypto industry. And even though we try to explain that we're exporters of electrons, we take hydroelectricity, run them through an ASIC chip, and we export that hashing power, compute power to Foundry, which is a pool in the US, which is SOX 1 and 2 compliant. and they pay us our Bitcoin in Bermuda. It's an export industry. And what's really exciting is that Paraguay's central bank gets that and it's important now for them in calculating what the GDP is and the contribution to their GDP of how we use a chip. And AI business is very similar. and that is you take the electrons, you run from the hydroelectricity of hydro, they go through your GPU chips and you can transmit that GPU power, that compute power to New York City. And we demonstrated that in a test 5,000 miles. Now, you cannot send electricity on transmission lines 5,000 miles, but you can convert them into compute power and send along fiber optics and so on. and many more. in battling with Sweden. And we believe that based on law and our expert witnesses, we will go through this process and we believe that justice will prevail. But what's important for you is to recognize underneath the hood is that the revenue quarter grew 10%, net operating income grew by 86% because the beginning of this year, February, was a very big challenging month. So, the year-over-year, it goes to show the significance of the scaling. I mentioned at the very beginning, taking revenue as the year-over-year grew by 73%, even though Bitcoin fell by 40%, and operating net income grew by 50%. So, we're really thrilled of our position of having 2% of that global network and continue to build out that dual engine in particular this year. is our HPC high performance compute strategy to build AI gigafactories. And Craig Tavares will give you more granularity as we go on, but who's really going to really carry that ball for you today is going to be Aydin Kilic. The team is very, very proud of closing another 130 million of exchangeable notes, zero cost of capital for interest payments. That money is not earmarked for Sweden. That money is earmarked for the fastest path to cash flow and revenue, in particular in our partnership with Bell Canada. The countries that win the AI race will just produce the smartest engineers that build the infrastructure to support them. And data centers are becoming an essential to economic growth as railroads were a century ago. and a quote I've been saying in speeches. And one of the things that in our Gigafactory being the biggest in Canada, I think what's really interesting is that it's really not taught in school in Canada to the degree, but I grew up there as a child, and Toronto was very proud of their medical breakthroughs and research. It inspired me to, and part of my journey of education was to going into medical school before I pivoted to go into business and economics. because I was just so in love with what was taking place in Toronto and Waterloo and the University of Western Ontario where the founding school is called Huron University. So I sit on the board up. I was always thrilled to know in 1921 insulin was discovered in Toronto. Pavlim was developed in Toronto. The pacemaker was pioneered. Polio vaccine and scaling it was in 1955 when I was born. was done in Toronto. The first successful double lung transplant, cystic fibrosis gene. I can go on, but it's rich with intellectual capital with two major schools, the University of Toronto and Waterloo University, which is like Canada's MIT. There are many other schools all around, like the Schulich School is famous for business. in Toronto, but there's many scientific research laboratories in that area. And Toronto is the financial capital of the country. Ottawa is like Washington, D.C., is the political capital of the federal government, but the universities are really in that greater Toronto area. So, we've got a campaign to try to educate investors in Canada as well as in the U.S. about the University Health Network. Sick Kids Hospital, one of my friends is a doctor here, a pediatrician, and his internship was in Toronto at Sick Kids. The Princess Margaret Cancer Center, the Vector Institute, where the Nobel Prize winner two years ago Jeffrey Henning was at the University of Toronto. This use of artificial intelligence to improve cancer diagnosis, drug discovery, medical imaging, it's very, very big. But what they do not have are these big gigafactories, AI gigafactories, and that is where Hive's buzz is buzzing with activity to build out. So other things just to understand and appreciate Toronto more outside of the Maple Leafs or the Raptors basketball and the Blue Jays baseball. The telephone innovation was not too far from the city of Toronto. The electron microscope in 1938, NTG GC 41, Deep Learning 2006. Ethereum, next please, was discovered by a student out of Waterloo University. What's also important in this visual is to show you the triangle of concentration of internet nodes and in particular for AI and transferring of data. The big concentration is from the Toronto region up to Boston and down to Virginia. This is a visual to show you where Lake Ontario is and Finger Lakes, as you see, is New York and the University of Toronto. and the Buzz Gigapactory is right in between Waterloo University and University of Toronto. The University of Toronto is much closer to where Toronto is than this map, but it gives you an idea that this is an important intellectual capital. Just like I've mentioned before that you look at bio research, 50% of bio research is done in Boston, San Diego. If you look at other types of research, There's clusters of software coders that show up. And when you look at cybersecurity, one of the biggest clusters is right here in San Antonio, Texas, with UT University, which has the biggest cybersecurity school in the country with 10,000 students. So, Vitalik Buterin, the creator of Ethereum, went to Waterloo, aka, as I call it, the MIT of Toronto, because of the software. A number of geniuses have come out of that school. So this is to give you an idea from a macro point of view, which has happened this year as semiconductors have had a big run. And they started coming off of the correction, as you can see here in July. And a lot of this had to do with the contagion from Japan to Korea to North America to Europe. And it looks like that worse is behind us now. What's important when I look at and I hear, oh, it's a bubble, it's already, it's the worst ever, it's a bubble, bubble, bubble, and all these people are coming in with PhDs in bubbleology. I share with you that it's far from that. And the amount of these collateral minerals, you need lithium batteries, not just for cars, but you need them for all these data centers. And you can see the drive for lithium everywhere. and graphite and nickel and zinc and copper. Copper is making an all-time high because a gigawatt of electricity, converting that to an AI factory like Berlin, Texas, is going to consume 50,000 tons, not copper, tons of copper. Most people think of pounds of copper. No, 50,000 tons, and that's 2,000 pounds per ton. That's a significant amount. and when we look around the world, it means that the supply is limited and it continues to have big demand globally. That's another sort of demand that I see that's going to continue with building out of AI centers. And there's lots of political headwinds as election years becomes on the agenda, but it's not going to stop this build out. This is just looking at spending for you, and you've seen this in other visuals, but it's just important to recognize the peripheral equipment for computers. Those stocks have been on a tear, and it's not just here in America. It's a global phenomenon. Anyone's involved in the building construction of these data centers. Australia, I mentioned Australia, Bitcoin, particularly the central bank of Paraguay recognized it. to win data centers are big contribution to the GDP because it's a way for the country to export besides food and beef. They're able to export electrons and they export them with compute power. And it's significant contributing income to the country for its size. So, I'm very pleased that the central bank has had this The ability to really grasp the significance of this being an export industry and hopefully other countries will all of a sudden recognize that like Sweden and Canada, Norway and Iceland that it's an important component of converting hydroelectricity or any other type of electricity with GPU chips to be able to export that compute power. Just a visual for you to grasp. You cannot transmit electricity from Paraguay to New York, but you can send AI compute power. And those GPU chips is what we do. We've shown it. We've demonstrated it. And that is a big breakthrough. We think this is very significant, what we've been able to demonstrate. And after we lay all the dark fiber necessary in Paraguay, like we're doing in New Brunswick on the border of Maine, I think that the ability to move those molecules, electrons, and the power even accelerate. That's the team, 300 megawatts building out in Paraguay and expanding another 100 megawatts. So, this will give you more granularity of other things we're looking at. We are looking in Texas, Paraguay substation being built, Bowdoin, the land that we end up purchasing in a separate entity. as we repurpose the land and power in Sweden. And then the Gigafactory that's taking place in Canada, in particular in New Brunswick. And then this joint venture with Delta Canada rapidly expanding in British Columbia. So we are coast to coast and the biggest technically hyperscaler in Canada. That's the building, beautiful theater center that we bought. in Northern Sweden with the land and the long-term power contracts. And we have a very strong footprint in the community. There's the Hive Hockey Arena in which we sponsor 12 kids learning how to play hockey. This is a draft, a visual for what we expect to see over the next couple of years in Toronto for the AI Gigafactory. This is really quite phenomenal that I didn't give you more granularity about the relationships Craig has been able to build and accelerate with other key groups and entities. So I think it's really important to see that a couple years ago it was predominantly the relationship that we had with NVIDIA and Aydin and myself had been and purchased a lot of NVIDIA chips. But what we've seen with Craig taking that ball and running with it has really accelerated these other relationships and the thrust to be in these other countries that have sovereign data centers. So this is just to give you an idea. We're traveling all over the world all the time meeting with captains of industries like Michael Dell several times, President Pena, Jensen Hang, So, we are meeting with very important people that have visions and President Peña has an incredible vision for the country. You can see Gabriel Lamas with his arm on President Peña's shoulder. Well, it's the big vision is to make that the biggest AI destiny center for gigafactories in Latin America. So it's great to be with young executives like Santiago Pena, the president of Paraguay, that has this phenomenal vision. And we hope to be fast-tracking that process and growing with this country. Well, here's I'm turning it over to Aydin, and that's Aydin throwing a touchdown pass to Craig Tavares, which I just mentioned. Aydin Kilic is our electrical engineer. He's our CEO, was recently our president. and Chief Operating Officer and saw the building and construction of New Brunswick and helped dramatically build out the Paraguay for Hive. And I think it's important to listen to him give you the story and also been very much involved in Wall Street and raising capital for this growth we have for our gigafactories. Here you go, Aydin.

Thank you, Frank, for the excellent strategic overview. Now let's get into an executive summary of the quarter to date, our recent accomplishments, and some exciting things in the pipeline. Starting here, financial highlights for the quarter period ends June 30th. $79 million of revenue, $24 million of gross operating margins, and $15.2 million of earnings from operations, which is revenue, less cost of goods sold, less corporate G&A. We do have a 143 million dollar net loss which is really driven by two non-cash items this is depreciation of about 54 million and this roughly 85 million dollar provision for tax liability in Sweden this is actually a long-standing issue that we've previously disclosed over the last two years going back as far as 2023 related to the Bitcoin mining business in Sweden and VAT tax treatments for and many more. Look, we have a very aggressive two-year depreciation cycle for those ASICs. That means over eight quarters, ASICs will get depreciated to zero. Well, guess what? We imported about a quarter billion dollars of Bitcoin mining equipment, the containers and ASICs, to Paraguay last year. So that depreciation is still hitting us quarter over quarter. And we have four-year depreciation for the GPUs. And of course, as we have GPUs from the past and bring online more, that's really where that non-cash number comes from. We're quarter over quarter and year over year. I'm very pleased it was a strong quarter. Growth 10% in revenue quarter over quarter, 74% growth year over year. Again, driven by the expansion in Paraguay. And moreover, if you look at the earnings from operations, again, that figure 15.2 million, that's an 86% quarter over quarter. Again, last quarter, Jan, March, we saw the downturn on February. My economics were the lowest they've been. We navigated that. Still with the business generating $8 million. on a cash basis this quarter, April, May, June. That number almost doubled to $15.2 million. And year over year, that number is up about 50%. So again, having a lean and mean corporate GNA, we've made a lot of strategic hires to scale the HPC business, but we really want to focus, does the business fundamentally on a cash basis make money? So what is your revenue? What are your direct operating costs or your COGS? and of course your corporate GNA. And you can find this nicely summarized on the page 20 of the MDNA, but here it is graphically represented. This is a breakdown of Bitcoin mining versus HPC revenue. Currently, our HPC revenue is represented by the GPU cloud revenue, $7.1 million for the quarter represents about 10%. The total revenue this quarter in $72 million is Bitcoin mining, about 90%. But I want to point a couple things out. So the last four quarters, the previous four quarters, we were doing roughly $5 million a quarter. We were at that $20 million ARR figure, well, in May. That B200 cluster went online in Bell Canada's Winnipeg facility and that got us to $7 million of actual revenue for the quarter. So you're seeing that growth and that number is going to continue to grow and we're going to explore why. But just looking at The Quarterly Analysis, Bitcoin Mining Revenue Group, 7% quarter, 77% year-over-year again, having Paraguay fully at scale, and of course, as I mentioned, HPC is growing. So, if you look at that $7 million realized for the quarter of HPC revenue, that's about $28 million ARR if you annualize it. Let's go to the next slide. Well, that means At Q2, we exited the quarter at $28 million ARR. We're actually doing $35 million ARR today because we're about $97,000 daily HPC revenue. But here's the big news, everybody. We just hit a massive milestone. So excited to share. Our team's done a tremendous job. And we are at $180 million of contracted revenue because we just announced a new five-year deal. which adds 70 million ARR to our HPC business unit. And this is new news. This is brand new. We just announced it this morning. This is in addition to the Cohere deal which we announced a few months ago. So you now have $180 million of combined active and contracted revenue. We're very excited. This is a five-year contract that we just announced. These are GB300s. 2088 GB300s is going to go to the Bell Merritt facility. These will be delivered and deployed in Q4. It is a five-year contract for $350 million total contract value, therefore $70 million ARR. Super excited. We funded the acquisition of these GPUs using proceeds from our June Convert, where we did the $130 million convert 0% coupon. Lenovo is our partner for the OEM on these GPUs. And this gets us to that sweet, sweet $180 million number. And by the way, we're still targeting $200 million ARR for the GPU cloud business before we still have more GPUs to bring online in the pipeline. But we're at critical mass now. So, very exciting. And of course, this will go into the Bell Merit Facility, which will be closed-loop, liquid-cooled, ultra-low PUE. I was actually just there that last week on a site tour. The facility is looking phenomenal. That Merit Facility will house both the Cohere cluster of GB200s and this new GB300 cluster. And this is with an investment-grade platform. Global Technology Giant that we signed this deal with. So that's fantastic. And they're actually putting a 10% down deposit of total contract value of $35 million. So that's very exciting. If you zoom out and look at the total contract value now of the cluster deals we signed, we're up $600 million of GPU cloud PCB signed this year. This year, the Buzz team has done a tremendous job. Craig Tavares, Mark Volk, Mario Sergi, they've all been doing a phenomenal job. Gabriel Ibghy, really the whole executive team, him, of course, Darcy, everybody has been working around the clock to make this a reality, and of course, It all really started with Frank's vision when we ordered those NVIDIA GPUs back in 2021 to pivot from Ethereum mining to HPV Clouds. So to see here today that we've got $600 million in total contract value signed really this year and Our market cap is about $800 million. So you see how attractive we are. And so I think that the stock should be due to re-rate with this fantastic news. And these are long-term contracts. We told the street when we were doing our converts to fund this growth, that we were going to focus on long-term three to five-year contracts, which is exactly what we've done. The co-year contract, three-year, 225 million TCV, and this new GD300 contract with the global tech giant, InvestmentGrade, is a five-year deal. So very exciting stuff. And of course, that was a snapshot, a picture there of one of our actual clusters. So this is a snapshot of the two convert deals we did this quarter in April and in June. Collectively almost a quarter billion dollars to zero coupon debt five-year bonds. We did purchase a capped call for each to minimize dilution. So the capped call conversion premium $4.92 for the April bond and then $8.53 for the June bond. Those capped calls are very attractive as you minimize dilution. and, of course, having that zero coupon interest. So, we are delivering on our promises. The proceeds from these notes were to go towards the acquisition of these GPs, which, by the way, the GPs we still finance. So, we put a healthy down payment down and try to minimize our cost of capital all the way around and then have financing for the rest and targeting about 20% to 30% down per GPU cluster and the balance you finance. So this is just an overview for all the analysts and enthusiasts out there if you want the granular details of the three deals we have now. So three deals in Bell AI Fabric data centers in the Winnipeg facility and of course the Merrick facility. Those are going to get delivered and deployed in Q4 this year. The GB200 cluster for code here and the GB300 we just announced. So we talked about that landmark $180 million in contracted revenue. Here's the breakdown again. This is a really handy slide if you want to Pause on this slide for all the analysts and enthusiasts out there shows you that we have the approximately 5500 GPUs online today doing 35 mil ARR and then the two large clusters coming online in Q4 which brings us to 9800 GPUs contracted or active bring us to 180 mil ARR target and again by the way Our year end, we're still targeting 200 million by Q4. We still got some more bullets in the chamber, so to speak. But, you know, for the most part, we've done a tremendous job. It's August and we're already at 180 million of that 200 million target that we had. So very proud of the team. It's been a tremendous quarter and I think it's going to be an amazing year. Let's go to the next slide. We also announced an LOI for our Odin site. This is an HPC COLO lease. This is for 45 million ARR. We announced it in June. 25 megawatts of IT load. So I'm going to pause here and let this sink in. We are at $180 million of active and contracted revenue today with our GPU cloud business. If you add this $45 million ARR-HPC-Colo deal, which we will announce the total deal size, how many years, etc., when we announce it. If we hope to announce before the end of September, then it puts us at $225 million. ARR have contracted HPC revenue with cloud and COLA. And I think that's really exciting because our target was $200 million for the end of the year. So we're blowing past that target ahead of schedule once this deal is announced formally. But I just want to put that into context. So really exciting stuff. Nothing's slowing down. We just announced this We've already got another bullet in the chamber. So really exciting. Let's hop to the next slide because I want to underscore the value proposition. The value proposition. If you look at having a diversified sum of the parts valuation, we've still got the Bitcoin mining thing about 750,000 a day of revenue, 275 million ARR today. We've got the 180 million signed contracted revenue, including 35 million active. And then of course, once we bring online that Bowdoin HPC COLO deal, what you can look at here is if you look at the multiples that our peers are trading at, so on the cloud, looking at the Corweave, Nebius, Irons of the World, it's about a five and a half X based on two year forward revenue. And if you look at the HPC COLO, your Wolfs, your Cyphers, your Hups, it's about almost 11x multiple. So if you apply those multiples and do a sum of the parts, and then you sort of have the nominal valuation based on where our peers are, such as Marin Cleanspark that still have large hash rate online. The composite sum is a $2 billion enterprise value. And again, we're hoping to announce this boat in HPC Coal at least before the end of September. So I think that there's a lot of real exciting near-term value growth. I think with the announcement again of this GD300 deal, you know, we're due to re-rate as we've massively grown our ARR to 180 million contracted number. But this is the case for a $2 billion enterprise value year-term based on where our peers are trading. So, recap, I know it's a lot going on. We huddle every day over nine time zones. We operate in three continents, Europe and North America and South America. and we've got 35 million ARR active today again that really filled in 180 million contracted GPU cloud revenue ARR and then that lease which was announced in June for Poden and again we also announced the Gigafactory Maze that was technically in this Q2 so just give me a quarterly recap it was a very dynamic quarter that's a very excited Here's a bit of a double click on this Bowdoin Data Center LOI. So it's 32 megawatts of utility load, which would be 25 megawatts of IT load. We have a fit test complete. We have a Tier 3 data center build. They actually do some Tier 4 as well. It's very prevalent in the Swedish market. They've been at it for nine months. This isn't something that we just picked up last week, guys. So we just announced the LOI. So that's why it's new news. but this is a legacy site we've been operating here since 2018. This is the GPU super site where Hive was mining with 130,000 GPUs Ethereum in the Ethereum mining heyday almost six percent of the network at its peak and what the catalyst is the catalyst was that we got approval from the road municipality to buy this building because this was A long-term lease with the municipality. They actually own the building. And we just got approval to buy it. And that was the catalyst that suddenly made it an HPC co-location conversion candidate. And so that was the big news in June. And here it is by the numbers, what it works out to. And that co-loan rate, by the way, is about $150 a kilowatt a month. So very strong, very comparable to some primary U.S. markets that we've seen our peers sign data center deals for. for Colo throughout the U.S. So, very exciting now. Once we announce the definitive deal, we'll have the total contract value, we'll have the length of the lease, but right now, on an indicative basis, you know it's 45 million ARR HPC Colo, and it's with an investment-grade Swedish off-taker as well, a telco company. So, we've talked about the Gigafactory, the crown jewel of our Canadian assets. We announced this in May, and of course, this slide was in our Last quarterly update, but here it is again, just as a frame of reference, expect a lot of news as we advance this site. It's very exciting. We expect to energize the site end of 27 and have compute come on early 28. Our dual engine strategy, we are at approximately $850,000 today. and that comes from $750,000 a day of mining. Bitcoin got 24 exahash operational. It's actually 25.3 installed. We just optimized with firmware and down clocks and machines. Again, we are in bear market economics on how you maximize your profit. So that's running off about $275 million ARR. And then on, of course, Buzz with the HPC is about $97,000. If you add that up, it's about $850 grand a day of total revenue. And if you look at our COGS in SG&A, it's the total cash cost to run the company globally. Yeah, I always like to go to page 20 and 21 of the MD&A. It's got a nice chart. It's my favorite page in the MD&A, which is a long day, and it's a great document. For all the analysts and enthusiasts out there, if you add our total operating costs, about $63 million for the quarter, it's worth about 690 grand a day. And as CEO, that's just a good number I like to have at the tip of my fingers because we're doing 850 grand a day in revenue on a cash basis and a global operating cost, everything. Going to conferences, paying for data centers, electricity, you name it, salaries, everything. It's about 690 grand a day. That means we're printing, we're doing about over 150 grand a day of profits. So it just gives you a sense of the health of the business. And I know, again, you have all these non-cash charges and accounting treatments, etc. If I'm an engineer, I just want to know, as a businessman, fundamentally, are we making money on a cash basis? Yes. Great. Let's look forward. So once we get to that 180 million contract and those go live in Q4, once those go live in Q4, it's really easy math, 180 million of GPU cloud business, about 500,000 a day. So what does that mean? Well, I mean, hash price can vary, but let's just assume buying economics are similar in, you know, the next three to four months, which isn't that far away. We're in August right now. That would be 750 grand a day on Bitcoin mining and 500,000 a day on HPC, which includes our GPU cloud revenue. So that's about 40% of global revenue is what the HPC business is going to constitute with Bitcoin being 60%. So again, this quarter, it's 10% AI and 90% Bitcoin mining. Within the next few months, that's going to be 40% on the AI and 60% on Bitcoin mining. So really exciting outlook on the dual engine strategy. Zooming out global power footprint, we have 860 megawatts globally. That includes 440 megawatts active with Tier 1 sites. And of course, the additional 420 megawatts, which is 100 megawatts in Iwazu that we're building out, a substation, of course, the Gigafactory in the Greater Toronto Area. What you can see on this slide to try to make it easy for the viewers is the sites that we highlighted in green are sites that we own the land. These are sites that are candidates for conversion to tier 3. And if you tally that number up, it's about 440 megawatt pipeline between Canada and Sweden for our Conversion to Tier 3, which is very exciting. And by the way, there's on top of that Iwazu as well, so it's very exciting. And I think that if you look at the value proposition and what that looks like on a revenue basis on a junior vision, let's go to the next slide. So on the left, GPU Cloud, on the right, HPC CoLoad. So again, we are at 180 million contracted today. We went over that earlier in the presentation. We still have some room in Quebec. Let's put another 500 B300s in. That'll add 20 mil ARR. So our end-of-year target is actually 200 mil ARR. on the GPU cloud business and we're so close to that given that we're at 180 million contracted now. And then on the right hand side, if you look at the portfolio of sites, the Toronto site or both of our boat and sites, of course, New Brunswick and the Gigafactory on an HBC co-op basis, 325 megawatts of critical IT load. would generate at prevailing lease rates, you know, 150 megawatts, 150 bucks a kilowatt in Bowdoin, 130 in New Brunswick, so on and so forth, a gigafactory is about 160 bucks a kilowatt. If you do the math, what that works out to a competent sum, $500 million of HPC Colo revenue with these sites being developed over the next two years. So on a total basis between AI Cloud and HPC Colo, 700 million ARR, and that's very exciting. Now, by the way, any one of the sites on the right, HPC Colo, you could stand up GPUs as well. We have that optionality. If we did that, those sites on the right would be able to accommodate over 120,000 GPUs. That's very exciting. Of course, Big Bones are even earmarked for HPC Colo, but just to give you a flavor, the other sites in Brunswick, GTA Gigafactory, and the Toronto Airport site, we still have the option now if you want to send it more cloud. But to keep it simple right now, we've done the research, we've had talks with parties that are interested in Colo at any of these sites. That number on prevailing market rates, 500 million target ARR. plus, of course, the 200 for GPU Cloud. 700 million is the number to take away from this slide. That's the vision, plus, of course, the Bitcoin mining revenue. Now, where will Bitcoin mining be over the next two years? Of course, it depends on hash price, but if it's worth that today, that puts us collectively at almost a billion dollars in combined revenue. So, very exciting. As we continue to grow, we want to see the stock re-rate, search for the lowest cost of capital, convertible... Are we seeing high-yield bonds being used to finance the construction of data centers? A lot of our peers have done that. We are exploring that as well. Of course, the convertible bond market, we did two of those deals this year, has worked out very well for us. And of course, leveraging vendor finance for the GPUs as GPUs are emerging as an asset class. So we've got a very methodical and forward-looking strategic cost of capital to plan to realize this growth. Let's go to the next slide.

Honest sum of the parts.

5.2 billion is the implied enterprise value. If you look at having 200 million of GPU cloud revenue, 500 million of HPC colo revenue, and again, you apply those industry multiples. This is actually a base case. We're not even using our peer multiples. We're discounting a bit. We're going 3.5x on cloud and 8x on colo. And then, of course, you have the Bitcoin mining business puts a 5.2 billion dollar base case. And you can see here how you get to that number during the sum of the parts. If you actually go to where our peers are trading and you use the same multiples, the mid-range case is actually 7 billion market cap USD as we scale towards those revenue targets we presented. This is very exciting. And on the upside case, you know, depending some tiers trade at higher multiples, this high is $8 billion. But really, to be conservative, we say the base case is $5 billion. And again, these are sites we own. This is power, like random power that's secured or sites that are operational that are converging from candidates to Tier 3 and, of course, the growth in our GPU cloud business. A summary of the land and power. We are advancing on that. We've talked about everything except fairways. So, we have completed the civil work. We've talked about that all summer. We just had 280 MVA transformers installed. And by the way, in June, we announced the proof of concept between New York and Huston, Ceylon. So, that is the cherry on top, I would say. Stay tuned for updates there. But just a little bit of eye candy for everybody. Let's go to the next slide. Here is one of those 80 MDA transformers that were just delivered and dropped on the site last week. So, again, we were doing the civil work. This is heavy civil infrastructure, guys. We're trenching. There's large concrete paths that go deep underground, etc. Of course, you've got cables and so forth. This is a 200-megawatt substation in Iwazu that is going to have an additional 130 megawatts of utility load from these two 80 MVA substations which will allow for 100 megawatts of IT load. This is just at Iwazu in the backyard of the Itaipu Hydro Dam. It's a 1.2 gigawatt substation regionally that we feed off of which directly feeds off the Itaipu Dam which is a 14 gigawatt dam. So yeah, just letting you know a lot of things happening and progressing in the background. Again, we are data center builders and developers and operators. So we do everything from substation construction, maintaining substations, of course, building the data centers and operating them. So steady progress on all fronts around the world. Just a little bit of context. So, Iguazu is very close to Sao Paulo. Why Sao Paulo? Well, Sao Paulo is where the hyperscalers in Latin America are mostly serviced. There's a data center park in Sao Paulo. NVIDIA's Latin American headquarters are in Sao Paulo. So, Sao Paulo is kind of the hub for Latin America, but most of the data centers there are 1, 5, or 10 megawatts. So this will be, we believe, based on our market research, the largest AI factory in Iwazu with 100 megawatts of critical IT load. Design development is underway as well. We're completing a basis of design, so stay tuned for updates there. This is a little bit of a geographic snapshot of how close we are to the region that is currently serving all of Latin America. and that proof of concept we did earlier this year and we're in talks with different groups. There is a lot of international interest in Latin America as, you know, the market emerges. Let's go to the next slide. Looking at the last 12 months. Here you've got the revenue and here you have earnings from operations. So 330 million of revenue in the last 12 months. I would say that is very impressive. Almost a million dollars a day we've done. And again, that's navigating the downturn. You know, in Q calendar, Q1 of this year, it was for the entire market. It was tough but you know we persevere, we optimize and on a cash basis we still made money every quarter. So again that earnings from operations is revenue minus cost of goods sold minus corporate SG&A. So we have done $80 million of earnings from operations in the last 12 months which I think is very impressive and Again, we've seen bull markets and bear markets in the last 12 months. And by the way, we're showing five quarters here. I realize that's just as you can do the year over year comp as well. But if you look at the last 12 months, that's what those sums are. But let's actually zoom out and look at how the industry has done. So I think what's overlooked, everyone is so hyper focused on the next year. That's great. We've got A two-year target of $700 million ARR with $180 million contracted revenue now in GPU Cloud. So that's great. That is great. I think it's about getting the story in front of peers. By the way, we should be Russell 2000 qualified by the end of this year. We of course have U.S. GAAP, now principal executive offices in San Antonio. We're very much aware of the, it's important to have a strong presence in the U.S. capital markets. Let's look at the actual revenue. We've done, amongst this peer group here, and you've got $2 billion and $10 billion companies represented here. We've done more revenue than all of our peer groups, $331 million the last 12 months. Some of our peers have done shop of that, which is interesting. In some cases, their farm strategy is actually trending down. We get it. People are focusing on HPC conversion and colo. but I think it's important to point to a track record. We stood up 300 megawatts in six months in Paraguay. We've got 9,800 GPUs now contracted, 5,500 active. So they're not only pointing to the growth, but we're actually doing it today. And so I think it's very noteworthy to point out a strong track record of accomplishment is a good indicator of future success, at least in our opinion at Hive. We get it, it's all about megawatts, powered land. So, if you look at what we've got secured in our pipeline and you compare that to our peers, we have a very healthy 860 megawatts. And so, of course, you know, you've got the hubs of the world with 2 gigawatts, but, you know, outside of them, you know, our pipeline is in line. I think it's really just framing this in context for the street I think has an incredibly attractive value proposition now. We've got some really smart money in our cap table and we look forward to growth and our team is working hard around the clock to build value for our shareholders. Thank you for joining us. 750 grand daily revenue that we're at right now. So just a handy reference slide and I'm going to turn it over to Mr. Darcy Daubaras, the longest-standing CFO in the industry since 2018. Darcy, thank you so much and the team working powerlessly. It was a super solid quarter. Over to you.

Thank you, Aydin. I'll take the next few minutes to walk through HIE's financial results for the first quarter of fiscal 2027. This was a strong quarter from an operating perspective. We delivered significant year-over-year revenue growth, improved our gross operating margin in dollar terms, returned to positive adjusted EBITDA, and substantially strengthened our liquidity position. At the same time, our reported GAAP net loss was significantly impacted by several non-cash items, most notably a provision associated with the ongoing Swedish tax matter, which I'll discuss in more detail. Before getting into the financial results, I'll briefly highlight our capital structure. At June 30th, 2026, I've had approximately 271 million common shares outstanding, together with approximately 3 million warrants. 2.6 million options and 16.7 million restricted share units. Our shares continue to trade on the Toronto Stock Exchange and NASDAQ under the simple HIVE, as well as on the Columbia Stock Exchange under HIVECO. Turning to our first quarter financial highlights, there are several numbers I want to emphasize. I've generated 79.1 million of revenue compared with 45.6 million in the same quarter last year. Bitcoin mining remained our largest contributor, generating 72.1 million of revenue, while our HPC and AI business contributed approximately 7 million. Importantly, our gross operating margin increased to 24.2 million, compared with 15.8 million in the prior year quarter. We also generated positive adjusted EBITDA of 13.4 million. Our reported EBITDA was negative 86.3 million and our GAAP next loss was 142.9 million. However, there is an important distinction between the operating performance of the business and the reported GAAP loss this quarter. The net loss included an $84.7 million non-cash provision related to regulatory liabilities Thank you for joining us today. We ended the quarter holding 190 Bitcoin and Treasury. Stepping back from the individual line items, three numbers really summarize the quarter for me. First, revenue of 79.1 million demonstrates the increased scale of Hive's operations. Second, adjusted EBITDA of 13.4 million returns to positive territory after negative adjusted EBITDA in the fourth quarter. And third, We produced approximately 1,004 Bitcoin equivalent during the quarter. Taken together, these metrics demonstrate the operating leverage we're beginning to see from the investments we've made in our global infrastructure. We continue to balance growth in our core Bitcoin mining operations with the development of our higher value HPC and AI infrastructure business. That operating performance is supported by a substantially stronger liquidity position. We finished June with $208 million of cash, compared with approximately $23 million at March 31st. In addition, we held approximately $11.2 million of digital currencies, $10.9 million of investments, and $18.9 million of receivables and prepaids. Total current assets were approximately $280 million compared with current liabilities of approximately $143 million. The increase in cash primarily reflects the financing activity completed during the quarter including our exchangeable senior note offerings and proceeds from our ATM program. These financings have provided Hive with significant liquidity as we continue investing in Our Bitcoin mining infrastructure and increasingly focusing on our HPC and AI growth initiatives. Our objective remains to maintain financial flexibility while deploying capital into opportunities that we believe can generate attractive long-term returns for shareholders. Turning from the balance sheet back to operations, Gross operating margin showed meaningful year-over-year improvement. We generated $24.2 million during the quarter, compared with $15.8 million in Q1 of last year. That's an increase of approximately 53% year-over-year. This is particularly noteworthy, given the substantial increase in the scale of our operations during the past year. Our basic loss per share was 54 cents compared with earnings per share of 19 cents in the comparable quarter. Again, the current quarter loss per share reflects the significant non-cash charges recorded during the quarter, particularly the Swedish regulatory provision and depreciation associated with our expanded infrastructure base. The year-over-year comparison really demonstrates the increased scale of the business. Revenue increased from 45.6 million to 79.1 million, representing growth of approximately 73%. At the same time, gross operating margin increased from 15.8 million to 24.2 million, an increase of approximately 53%. As a percentage of revenue, gross operating margin was 31% compared to 35% in the prior year period. So while the percentage margin moderately somewhat, the absolute dollars of gross operating margin increased significantly as we expanded the scale of the business. This is an important measure for us because it demonstrates our ability to generate positive operating contributions and many more. Sequentially, the trend is also encouraging. Revenue increased from $71.8 million in the fourth quarter to $79.1 million in Q1, an increase of approximately 10%. More importantly, gross operating margin increased from $17.5 million to $24.2 million, or approximately 38% quarter over quarter. Gross operating margin as a percentage of revenue improved from 24% to 31%. So sequentially, we saw improvement in revenue, operating margin dollars, and the margin percentage. That combination is a positive indicator of the underlying operating performance of the business as we entered fiscal 2027. From an earnings perspective, it's important to distinguish Thank you for joining us. I've reported US GAAP results moved from net income of $35 million in the prior year quarter to a net loss of $142.9 million this quarter. Again, the most important point when interpreting that result is the magnitude of the non-cash items. The quarter included the $84.7 million regulatory provision associated with the Swedish VAT matter Together with 53.7 million of depreciation as well as share-based compensation and fair value adjustments. The Swedish provision reflects our accounting assessment following the adverse court of appeal adjustments. We continue to pursue the available legal avenues in Sweden. Accordingly, we believe adjusted EBITDA provides investors with an additional perspective on the underlying operating performance of the business alongside our US GAAP results. And finally, looking at earnings sequentially provides another useful perspective on the quarter. Adjusted EBITDA improved significantly. We moved from negative 9 million of adjusted EBITDA in Q4 to positive 13.4 million in Q1, an improvement of more than 22 million. That improvement is consistent with the stronger revenue and gross operating margin performance we discussed on the previous slides. Our U.S. GAAP net loss increased from 76.3 million in Q4 to 142.9 million this quarter. But again, the comparison is heavily affected by the 84.6 million non-cash Swedish regulatory provision recorded in Q1. For that reason, we believe it's important to look at both the US GAAP results and the operating metrics when assessing the quarter. Overall, we entered fiscal 2027 with a larger revenue base, improving sequential operating margins, positive adjusted EBITDA, and a substantially strengthened liquidity position. That financial position provides us with flexibility as we continue executing on both sides of high strategy, operating our existing Bitcoin mining business efficiently while investing in the growth of our HPC and AI infrastructure platform. With that, I'll turn the presentation back over to Nathan.

Thank you, Darcy. That concludes the presentation portion of today's call. We will now begin the question and answer portion of our call. Analysts on the line, if you could please click raise hand when you're ready with your questions. We will begin to choose and ask you to unmute. Our first question comes from the line of Joe Vafi from Canaccord. Joe, feel free to unmute, proceed with your question.

Hey, guys. Good morning. Great progress in the business, especially this new cloud deal with the investment grade tenant. Maybe we could double click on that. I know it's a five-year deal. Could we get some Perhaps initial thoughts on if you run some IRRs on the GPU investment, what kind of returns potentially you're getting there, and maybe some additional thoughts on CapEx here to fund the build-out. I know you've got a deposit. I know you've done... Some of your convert deals, just kind of what the rest of the financing stack might look like here. And I have a quick follow-up. Thanks.

Hey, Joe, this is Aydin. Great question. Thanks for tuning in. It's good to see you last week at the conference in Boston. So, you know, having that five-year term locked in, we put in the press release CapEx is about $185 million for the GPU cluster, of course, with the InfiniBand and so forth. I'm really just to have an NVIDIA reference architecture designed for the 2016 GPUs. And so if you kind of do the math indicatively model, of course, it'll be delivered and deployed in Q4. So we're expecting EBITDA to land in the 75% to 80% range. and so if you do the math you're paying off the GPUs completely in about three years and the balance of that two-year term is free cash flow so you effectively bake in you know a 1.6x return roughly speaking on the GPUs and then you load them out right after the term. Now, we've also financed the GPUs, so we're putting a portion down, about 20% down, the cost of the GPUs. And so we can provide subsequent market updates with the financing terms, but really the inaugural release was to let the street know that we've now hit that $180 million milestone Thank you for joining us. and so as we get closer to the deployment dates, etc., but POs are secured for the GPUs and that means they go into production, which is so critical and that's really what locks in. So having the capital from our converts, the $245 million collectively that we raised, Aydin Kilic, Gabriel Lamas, Yeah, I hope that covers your questions.

It feels, sounds like, you know, it's well under, well on its way. And then down in Paraguay, I know there's a lot of things, substations are going in for that additional build. You know, the benchmark testing's been done. What should we be looking for down there as kind of a next step, you know, in the evolution of that power portfolio? Thanks a lot.

I would say the next thing to look forward to is just updates as we work through the basis of design. I'm actually planning to go to Paraguay at the end of September. I've got a trip to New York planned, the third week of September, and then I'll actually stop in Sao Paulo. I plan to visit NVIDIA down there and then go straight to Asuncion, do a site tour. So we're engaged with a design-build firm. Thank you very much. Substation being deployed last week. So we'll keep the street updated with progress as we work towards that. That substation we expect to be energized towards the end of this calendar year in parallel, of course, working through that basis of design. And that's all I'm going to say for now. I think really we'd like to let people know as a multinational company we have Progress in different jurisdictions and a lot of the growth, like the revenue growth, is happening in Canada this year with the deployment of these GPU clusters. And, of course, we'll work on the conversion of the Toronto airport site, the New Brunswick site as well. I was actually just in New Brunswick last week after Boston. I flew to New Brunswick to Fredericton to meet provincial government and B Power as well to talk about our vision there to make the New Brunswick State and Grand Falls the largest AI token factory in the Maritimes, which I think will be of national significance. So, of course, that complements the Gigafactory in Ontario in the Greater Toronto Area. So, I would say stay tuned for updates coming out of Canada as we advance the conversion of those data centres. and then of course the Big Bowdoin site. I would say that's actually furthest along because we had that LOI signed with an off-taker as well and so the next step there is really to watch out for the definitive agreement to be announced and then that plays into the growth of our ARR targets as well which was highlighted in my section. So I would say keep your eyes peeled for updates on Big Bowdoin, Canada, and then Paraguay is just, you know, the icing on top and we'll update the market but focus on Sweden and Canada for now. I'm excited. Great work.

Thank you, Joe. We'll keep the Q&A moving next to Chris Brendler from Rosenblatt.

Hey, thanks, Nathan. Good morning, folks. Congrats on the results here. Nice to see the progress and You know, tough market for Bitcoin, but you guys are executing pretty well. My first question is on the high performance compute business, given all the progress there. I was hoping you could give us a little color on what you are targeting for a gross margin. In the queue, it looked like it was at 44% this past quarter. You know, as these contracts ramp up, I think you'll become less impacted by the service fees and Thank you for joining us.

and many more. Thank you for watching. More profit dense per watt. And also, of course, with scale, you get economies of scale. So those two factors, newer generation GPUs coming online at scale, both are indicative drivers for that margin to go up. And again, as we've built the business, of course, you need to have the foundation in place to scale. So some of that cost basis is somewhat fixed. and, of course, as the scale grows, you know, on a relative basis, that fixed cost, you know, diminishes. So, hence, you know, you can expect margins to improve substantially.

Okay, great. Thanks, Aydin. That's a good color. My second follow-up question is for open jump ball for you, Frank or Aydin, is, you know, the Bitcoin mining business actually Doing pretty well. You've gained hash rate share. The gross margins there also improved sequentially despite a pretty tough environment for Bitcoin. We've seen hash price stabilize. Network hash rate has also come down from the peaks. Just wondering how you feel about the Bitcoin mining at this point and any updated sort of like big picture thoughts on Bitcoin. I've been a long-term believer myself and just sort of Waiting for the next cycle. Is that what you guys are thinking about it as well, or are we in a new paradigm for Bitcoin? I'd love to hear your thoughts. Thanks.

Yeah, so we see hash price sort of stabilize around the $31 per petash per day level. We saw lows as low as $27, which was not long-lived, but for a week or two, and we see difficulty at gusts. So it seems that the floor, the prevailing floor of this bear market is just above $30 hash price. So, you know, what does that mean? Well, In our case, in Paraguay, we've got, I think last time I checked, about 19.5 exahash. Because we've optimized with firmware and we've had, earlier in this year, we had some S21 XP orders go down and replace some of the Buzz Minus. So we're actually at 19.5 exahash in Paraguay. That's new generation gear that, on a blended average, is below 15 joules of terahash. So we've got a large amount of New Generation Hashrate. Of course, Paraguay's got very attractive power costs too. So that just forms part of that cash flow engine and dual engine strategy. So I think that Thank you for joining us. The hydro infrastructure we deployed has worked very well for the climate there. We've made some modifications to it. So, yeah, it's there. It's performing exactly what we expected, and it's throwing off cash flow as we focus on growing the rest of the business. So, I think that... We'll see. You know, Bitcoin always tends to come around. Is it going to stick with a cyclical four-year cycle? Will the Clarity Act cause a big breakout? We'll see. We'll see.

Great. Thanks again, and congrats again on the results. Thank you.

Thank you, Chris. For our next analyst question, we'll pass to Mike Grondel from Northland. Mike, the floor is yours. Hey, guys. Thank you. Two questions. One,

Aydin, is there anything significant left to get the definitive agreement with Bowdoin? Or do you just need a little bit of time there? And then secondly, could you just talk a little bit about demand trends and pricing trends on both the GPU and the co-location side? Thank you. So the lease for Big Bowdoin, or sorry, the lease for Big Bowdoin, That process has been advancing. What I can say is that I alluded to in my presentation was a lot of our peers are using corporate bonds, either investment-created or high-yield bonds, to finance the construction of these data centers. And so we see that as an attractive path to raise capital. And moreover, when you were in talks with two lenders on that accord, You want to carefully, carefully structure that lease so that the terms are favorable and you could at least strive towards an IG grade bond instead of a high yield bond. and so really just to lower your cost of capital. So it's an active process whereby we are, I would say, refining. I don't want to give the street obviously an exact date, but we're well on our way. The process has been well underway and it's really just fine-tuning those nuances in the agreement. But yes, we do have a draft that's gone back and forth and so... Just stay tuned. I'd love to give the street an update sometime in September on that definitive agreement. And in terms of demand, we, I mean, I alluded to in previous presentations, we had a B200 cluster on a two-year contract, the first one we deployed in Canada in the Winnipeg 504 GQs, and we rented those at $290 an hour. And, you know, I think six to nine months before, Iren did a big deployment of B200s at $2.20 an hour. So what that tells you is that there's increasing demand in the market. And that tells you that you've got continued... I think CoreWeave came out last week and said they had 20 GPUs from 2020 that they booked out to 2029. So... And by the way, no one was really doing GPU Cloud in 2020. They would have been mining Ethereum. We know the CoreWeave guys well, and they used to be Ethereum miners. And so our A40s, we ordered those in 2020. And the margins may not be as fat, but they're still cash flowing those things. So I think the demand is great. I think that you've got frontier labs that are always going to want the latest and greatest products. and many more. People that are just using it for inference that just want the lowest cost for token, they're happy to use GPUs from early hopper even and pair generation. So we've seen demand very strong and even in our current deployments, we have a lot of stuff we're working at and I'm trying to be mindful of my words here, but we're seeing tremendous demand. for new potential deployments of GPUs beyond what we forecast in the earnings presentation today. We're not stopping at 200 million ARR when we hit that number for GPU cloud. We see the demand taking us well past that number, very far past that number. We just wanted to give the street some very realistic targets that we were going to hit and blow past. So, yeah, we're seeing tremendous demand. I would say that... If we were to bring online another cluster of 2,000 VPUs, we have numerous parties, some that we have an existing agency with, that would happily rent that out on a three-year or longer contract. So, tremendous demand, and so we're very bullish right now just based on the quality of the off-takers, the economic terms. In some cases, we're seeing dollar-per-GPU prices even higher than what we've seen previously. So it's definitely a rising-tides environment, which is great for us and our peers in the sector.

Yeah. Hey, thank you, guys. Thank you, Mike. Time for a few final questions here. Next, we'll go to the line of Bill Papanastasio from Chardon. Bill, the floor is yours.

Yeah, good morning. Thanks for taking my questions and congrats on the deal announced this morning.

Aydin, the team has landed a number of attractive deals standing up GPU clusters. Maybe you can walk us through how management is thinking about weighing co-location opportunities compared to these GPU clusters given the power portfolio. Thank you.

Yeah, that's a great question, Bill. What we forecast is we've got a target of 10,500 GPUs that we plan to stand up, and that is with our partnership with Bell Canada, AI Fabric, and of course we've got the Merritt British Columbia facility, and then the Winnipeg facility, and then our existing sites in Quebec and Sweden. And so after that, we still have a pipeline of about 400 megawatts in Canada between New Brunswick and the Toronto Airport site, and the Gigafactory site. So that's about 400 megawatts of utility load. So if you look at that, I can tell you right now that the Gigafactory can do 100,000 GPUs, liquid-cooled GP300 spec type of GPUs, and New Brunswick would be able to do 20,000. It's 50 megawatts of IT load. One of those clusters is roughly... One of those clusters of 2,000 GPUs is roughly 5 megawatts, just for all the analysts, just helpful taking notes, etc. So you could do the math and you could say, okay, so that's 120,000 GPUs. Now, we could phase New Brunswick, and we have a two-phase design for New Brunswick now. So we have a very long stretch, a very long pipeline, and we did cite that in our press release that we have runway for over 120,000 GPUs. for the sites that we own. So, I think that it's looking at what is the value proposition. So, if you do the math on a dollar per megawatt basis, pick an indicative number, say $150 a kilowatt a month for HPC Colo. What that works out to, if you do the math, 1,000 kilowatts 12 months, is $1.8 million a year of recurring revenue for HPC Colo. And you see our peers are trading at roughly 10x that multiple. So if you look at it on an enterprise value basis, it's $18 million per megawatt of enterprise value. Cloud, on the other hand, you do $14 million per megawatt per month. So the cluster here, we just announced $70 million ARR, 5 megawatts, $14 million ARR. And depending on the multiples right now, Thank you for watching. You can get maximum profit density based on multiples enterprise value by going GPU cloud. That being said, the street is also clearly rewarding people that are signing long-term fixed agreements because they're looking at the total contract value. If you sign a 15-year offtake agreement, the TCP on that, we've seen some of our peers sign deals, the biggest was $9 million for 300 megawatts. So Thank you very much. We will evaluate what we think is the best opportunity and bring those to light, but we're very much aware of the economics. And it's not like we're done looking for land and power as well. I mean, we're constantly on the hunt. So I think that it's going to be a really exciting year, but I think that it's a lot more challenging and it requires more capex, but We've got the pedigree to do the GPU cloud business. I was at the EMD keynote that Lisa Hsu gave, but Craig and I flew down to San Francisco a few weeks ago. When you're actually there in the ecosystem at the industry conferences, and you're seeing the amount of demand, the big players that are coming online that are lining up for the next generation of GPUs. It is very remarkable. So I think that the GPU cloud business remains very, very, very interesting. And I think the capabilities that it will unlock in the industry will continue to drive demand.

Appreciate the call. Thanks for answering the question.

Thank you, Bill. Next question from the line of Brett Knobloch from Cancer.

Brett, over to yours. Hi, guys. Thank you for taking my question. On the GTA site, at what point do you guys have to make a decision to start to break ground and build the data center? for that to be kind of ready for service in 2028. And then do you need to kind of decide whether that's going to go cloud or polo when you break around or how you would fund the build-out of that, maybe pre-signing a tenant? Do you have any thoughts on GTA and timing? Thank you. Yeah, so we will provide the street updates on that project. We've got our basis of design, and so I think As you work through the process, we'll have more, I think, collateral. Again, there was so much excitement when we announced it in May. It was just to really announce that we secured the land in power and we've got the process well underway from design and permitting. So I'd really just stay tuned for more updates on that. And then in terms of cloud versus colo, It kind of goes back to the last question I answered where if you just use a nominal prevailing market rate for HPC colo, that site would be over 360 million ARR. But that site, our design right now is three phases of 80 megawatts of critical IT load in our basis of design. And so when you phase that, we could have a government tenant in there doing colo. We can have a hyperscaler. We maybe have three or four different clients and that's not to say we can have a section of it as GPU cloud but I think that as we advance along that project there might be a component of it that we fund the purchase of some long lead items using perhaps we did another financing down the road but right now it's We've got the other more near-term projects that we're going to be bringing to market. I don't want to prematurely speak on what financing strategy we'll take. Obviously, corporate bonds are very attractive. Typically, you're going to want to have a signed offtake agreement for that before you go to market to get a corporate bond. And so, again, just the jurisdiction of that site, the amount of reverse increasing demand that we've seen, even in our partnership with Bell Canada, a lot of their enterprise clients, etc., FedGov, There's a lot of demand. So we see really just finding the right mix of off-takers, be it HPC or cloud. And when you're raising capital, you get that lead order, and then it all kind of follows from there. And so we would undertake. But it's a three-phase design, if that helps. And we expect the site to be energized fast. End of 27 with ComputeLive in early 28. Awesome. Thank you, Adam. Really appreciate it. Congrats on the results. Yeah. Thank you.

Excellent. Thank you, Brett. I have time for two more total questions. Let's hear one from Mike Colonese from HC Wainwright. Mike, the floor is yours.

Hi. Good morning, guys. Thanks for taking my question, and congrats on all the progress on the HPC AI deployments. Great to see you. So, you know, my question is really on CapEx in the second half of the year and timing to funding. Obviously, you guys have two large GPU clusters that are set to come online over the next couple quarters. You're doing some, you know, design work at a few of your owned and operated data center facilities. So, you know, what are you guys estimating for the total CapEx lift through the second half here and then expected timing to secure the funding required to pay down some of these chips? Aydin, I think you mentioned the goal is to pay 20% to 30% of the purchase price and then look for funding for the rest of it, if I heard that correctly. So, any additional color on CapEx would be helpful.

Yeah, so... The scale in the near term, so getting to our end-of-year target to 200 mil AR on the GPU cloud is through our partnership with Dell Canada. and the AI Fabric facilities are colo. So the virtue of that partnership, just to recap for everybody, we are co-locating as a tenant in the Bell AI Fabric data centers. There's one in Merritt, BC and one in Winnipeg. So they've given us a very attractive colo rate below market. And the other virtue of that partnership Their enterprise customers who are looking for sovereign AI compute, while Buzz is the exclusive partner on that accord. So we're building and deploying the GPU clusters in their facilities. So we've seen, for example, Cohere come in as a client and tenant to that partnership. So that was tremendous. Now, what are the other benefits? It's CapEx Lite. So being that it's Colo, we didn't have to shoulder the CapEx to bring this compute online. So we think, and it's evidenced by the relative valuation slide. There's still a lot of upside very near term. When you look at where we would be with a big Bowdoin lease signed and now that we've got our two big GPU contracts announced as we promised the street that was our mandate in April and June. So what I'm getting at is Thank you very much. Thank you. to finance the construction of the data center conversions that we have in the pipeline. So really, when you say, well, how much capex do you need to get through to your end-of-year target of 200 mil ARR? As we put in this press release, the cluster and data reference architecture worked out to about 185 million. So if you're putting, say, 20% down on that, it's just under 40 million bucks. and then at the rest you get GP Vendor Financing with a blue chip lender and so you're targeting single digit lease to own. What I could say is directionally usually the terms of these Thank you for watching. Thank you for joining us. The Small Toronto site is about $40 million to bring that to HPC Tier 3 liquid cooled and I would be able to stand up another 2,000 GPs or do COLO. We've had reversing freeze on that site just based on where its jurisdiction is. That one's only a 7 megawatt utility load, 5 megawatts of IT load. Thank you very much. Those are sort of, I would say, the most near-term CapEx figures for you, if that's helpful, Mike. Did I answer the questions? Yes, I'm in great color.

I appreciate that. You bet.

Mike, final question this morning comes from the line of Stephen Glagola from KBW. Stephen.

Hey, thank you for the question, and congrats on all the cloud progress. For the 84.7 million Swedish tax liability, can you help us understand the likely timing of any cash payment there and what avenues remain available to mitigate or defer that obligation and how management intends to fund that liability if it becomes due? Thank you.

Yeah. Hi, Stephen. We don't plan on I think that liability is the takeaway. We addressed it in the press release. I would refer you to that, as well as Darcy's section. And, you know, in our opinion, the treatment of taxes is uneven. It's, you know, they gave Northern Data a hard time, too. So this is not exclusive to us. It's just how the FTA was such a huge fan of Bitcoin mining. and so we've paid $50 million of tax already from our normal course of operations and we have advisors in the country and we've looked at other remedies in terms of appealing and contesting and financing. and even going a step above to the European Union. And again, that commentary is detailed in the press release. I would refer you to that. But really, we do not think that that's a good use of shareholder capital to pay down this, in my opinion, egregious tax claim. And we've paid all the taxes in the normal course of business. And again, this is related to VAT on ASICs. So sort of a fossil, a relic from the past, if you will, that had long been contended for, you know, really goes back to 2023. And it's always been, there's been our disclosures for the last couple of years. We haven't paid it. We don't plan to pay it. And it's just something that we're going to continue to appeal. So that's really it. Thank you. You bet.

Thank you, Stephen. Thank you to all of our analysts. That concludes our Q&A session and our Q1 Fiscal 2027 earnings call. Thank you to all of our shareholders and the investment community for joining. We look forward to speaking to you again soon.