Nathan Fast: Hello, and welcome to today's webcast covering HIVE Digital Technologies financial results for fiscal Q4 and full year 2026. 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 2, I would like to briefly note the disclosures for today's presentation. Except for statements of historical fact, this presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, such as expects, believes and similar expressions identify these statements. Actual results could differ materially, and we disclaim any obligation to update them except as required by law. For a full discussion of risk factors, please refer to our most recent SEC filings at sec.gov. In addition to discussing results that are calculated in accordance with GAAP, we will also reference certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income and free cash flow. Management uses these metrics to evaluate operating performance and believes they provide investors with additional insight and they're presented for supplemental purposes only and should not be considered in isolation from GAAP results. Reconciliations to the nearest GAAP measures are included in the appendix to this presentation and in the press release and 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?
Frank Holmes: Good day, everyone. I'm Frank Holmes, the Co-Founder and Executive Chairman that plays a role as a strategist at a macro level for HIVE. And I'm going to give you as also my other job is a Chief Investment Officer, a macro recap of what I see in this realm of data center build-out and the as demand that's taking place for AI factories, but also the collateral that we're seeing the collateral ramifications are the demand for copper, et cetera. So let's get going and we'll speak quickly and give you a recap for what's happened this past quarter and year. Next. But before we get into those granular details, I'd like to tell all investors that they have to be prepared for volatility and each asset class is on unique volatility and it's a nonevent for the S&P to go up or down 1% in a day and over 10 days, 3%. If it goes up more than that or down more than that, that's usually an event. That's a signal for [ country ] and selling or buying [indiscernible], as you can see, is now more volatile. So it's one day, if we look back a year ago, it was the same as the S&P and now was expanded to 2% as a nonevent on a daily basis, and the 10 day is 5% but Bitcoin is much more when we look at 1 day is 3x greater than the S&P 500 and substantially greater when we look over a 10-day period. And as you go down and look at technology stocks and gold stocks you look at HIVE when you look at [ core weave ], you can see a pattern of companies that have more debt or companies that have this leverage to Bitcoin operations just have this greater volatility. And that means that 70% of the time is a nonevent over 10 days for HIVE to go up or down 21%. And the same thing on a daily basis, it's a 6% ball [ core ] wave, which is a pure high-performance computing hyperscaler versus the other hyperscalers like Microsoft and AWS, which is Amazon, Azure is Microsoft. Oracle has theirs. They're embedded with another bigger technology-driven company, whereas CoreWeave's pure hyperscale and HIVE is in that transition to go into a hyperscale tailor. So you can see our volatility is greater than the bitcoin, and that provides great buying opportunities. We're especially Bitcoins down 3% then none for us to be down 6%. And usually then, it's a great bounce. So next, please. This is the team. Aydin Kilic, our President and CEO; Craig Tavares is the President and Chief Operating Officer of BUZZ HPC, which is really the champion for our AI factories especially out of Canada. And we're now coast-to-coast across the country and we continue to expand. I'll give you more color on that. Darcy is our CFO. He's based in Vancouver, along with Aydin, [ Gabriel Ige], he's our General Counsel. He's not on Montreal. He's in Europe. [ Gabriel Amos ] is the President of Paraguay's Operations. He's also electrical engineer like Aydin is and Craig. And then we have Johanna Thornblad, who is the Country President for Sweden. Next, please. So HIVE vision [indiscernible], it operates in 9 timezones and 5 languages, and I'm very proud that we know many of these other crypto mining companies that operate in 1 state, and they are not as efficient as our team is. And that just goes for me to share with you is that we have an exceptional team that's very efficient not only in running data centers and building data centers. Next, please. So HIVE [indiscernible] green energy in Canada, Sweden and Paraguay. This is the most significant waterfalls in the Western Hemisphere, which has led to the largest dam in the Western Hemisphere, with like 5 miles long. It's a phenomenal piece of infrastructure. And it's a partnership with Brazil and Paraguay, generates about 14 gigawatts of electricity, half to Paraguay, half to Brazil. And for a while, Paraguay was selling a lot of electricity [indiscernible], and we're not getting paid, they're slowly starting to get some money back we come along and capture this surplus energy and they get paid every month. And that's significant because today, we're the largest consumer of electricity in the country. And we've also hired, I think, the most engineers more than in the power utility company in the overall economic development of the country. Next, please. HIVE's top institutional shareholders [ Invesco], [ Citadel, ] we're happy to see sites come back in, Millennium management. Two [ Sigma ] and [ Velke ] funds. Some of these are pure quant funds and other are ETFs that have directional plays in this space if it's not a technology then it's driven by other investment strategies. Next, please. I think what's really important here is that with cancer for sure, we announced the closing of a private offering of about $115 million of 0% exchangeable senior notes due 2031 with a conversion feature, which is very unique by buying a derivative that the stock was basically double the stock price just shy of $5. Now the stock is trading at 4%, but it was at the time 2 and change. So it was pretty significant. And what's important is that we had more than $500 million wanted and we had 24 buyers. Our name got known now to many U.S. institutions that really didn't know the unique hype story. And that's led to a big trigger in the trading volume and liquidity and price discovery has expanded with this. It's also been an important what they call a signal to institutions that we were going to accelerate our growth, like we've been saying on our AI strategy this year. Last year was building out our Tier 1 data center of Bitcoin mining, and we increased that from 6x a HIVE to 25. This year, we're focused on this huge footprint of bringing specialty sovereign data centers in Canada and Sweden. Next, please. So in that journey, we also increased our exposure in Canada to go in what's called the main board, the biggest stock exchange in the country where all the big banks are listed away from the venture capital based in Vancouver. And that was a great opening for us because we had the maximum amount of people allowed to show up. We had to turn back I think there was 100 people want to come from 50 places. So it was a great sign of enthusiasm for our company. And this was a day after the holiday in Canada and the day before, our stock has a big [ par ] and with -- because of recommendations in the press release we made regarding our AI strategy in Canada. So it's all fit in very, very well the timing of it, much of it unexpected that it would come together, but we're thrilled about it for our shareholders. Next, please. So high stock rises above his 50-day and you can see here when we announced our over $100 million convertible that it was -- it went above and as stated above, so often when you announce these things, they fall below. But no, it was a signal, I was told by smart institutions in this space that we were on a fast track for growth. And we're excited that is happening. And then we have announcement of listing on the Toronto Stock Exchange on May summer. And then we announced the BUZZ's North Star AI factory in Toronto on May 16 was a significant home run because if by accident, we did not know that it was also showed up a very smart institutional investor in this space, in the AI but became an investor. Next, please. And I think that it's important to recognize Leopold, [indiscernible], as the CEO was called Situational Awareness. He wrote [ seminal ] piece of paper that was a white paper of over 100 pages of what you saw in the super cycle, a fascinating background, I used to be with the open shot and so he displayed a 13-F filing and because he showed like Warren Buffet shows what he bought and sold, he bought us at 4x revenue and a couple of the other data center companies or Bitcoin mining go into transformation of AI, he sold those because they had done in a crazy run to 40 times revenue. And so we were deeply the most attractive proposition. So we're happy that he bought in those shares. We bought them, I think, on the previous month, and so that filing at the same time of announcing in Canada, our AI factory, all just happened at the same time, and it was a holiday in Canada. Next, please. So the real race in AI is infrastructure, power land and GPU chips he wrote about this in a seminal white paper Leopold and please, if you haven't read it or recommended, [indiscernible] owns the compute owns the future, Canada needs sovereign compute to remain globally competitive. Canada is an incredible place in respect hearing was created there. The University of Waterloo has won the software IBM annual software competition, most often being the champions there. So it has strong intellectual capital that Microsoft has always tried to hire from Waterloo. And then the University of Toronto has now become the epicenter for AI with a Nobel Prize winner. And so this future, what we're building in Canada is right between these 2 universities. And I share with you is so important because we know incentives where I'm based in San Antonio, Texas, that we have the #1 cybersecurity university. And this started 25 years ago with 100 students now it's 10,000. And that's only led to many data centers being built to San Antonio, especially the NSA, who has the second biggest office is in San Antonio and over 3,000 employees, and they're able to tap into all these graduating with degrees in cybersecurity. And so what you see that in Canada, it's different and what we're looking at with the cybersecurity when they come out of a couple of other universities in Toronto, which is the largest city in the country and come out of the AI and AI and cybersecurity are now becoming ubiquitous in that conversation. So we're thrilled about this opportunity of being in Canada. Next, please. So the AI [ Gigafactory ] eventually will have 100,000 GPUs. It will be a multibillion-dollar buildout. And further to that, it will throw off billions of dollars in revenue. It's a very significant asset. It would be the equivalent taxes of 3 gigawatts of electricity. When you look in that context of the population, and GDP has always been a ratio of like 1 to 10. But it's closest to the best universities in North America, along with other schools we have in the U.S. But when we look at Canada, there are 2 premier universities. Next, please. The other interesting part about our data centers right now, in particular, in Eastern Canada that we are in Toronto, Montreal Grand Falls in New Brunswick, we're in the most important Internet backbone, which basically goes from [ Tragodown ] to Virginia and up to Boston and north of Boston, you have the most -- the highest concentration of Internet nodes. And so that is really important for the AI for moving data, collecting data, sharing data that you need much bigger pipes. And so we're right in that triangle. Next, please. So Canadian AI ecosystem and BUZZ AI factories. We've mentioned in previous press releases, our partnership with [indiscernible] Canada, that we are now in Winnipeg. Daily revenues improved for our HPC because Manitoba assets come on stream. So we are Montreal building out that we'll be in British Columbia soon. and will be from coast to coast in Canada and be the biggest hyperscaler really in the country by a wide margin and sovereign. Next, please. So HIVE's BUZZ HPC partnership is Dell Computer. We have universities like Columbia University had a partnership with what we did on looking at data from Paraguay to build an AI data center in Paraguay, strategic with the platinum buyer of NVIDIA chips with [indiscernible]. So to me, it's a great view here of important relationships we've been making with universities and also with other technology companies. And I push on to the next one. So expanding the partnerships. Craig has done a phenomenal job as seen on the far left here, the CEO of Bell Canada, the largest telecom in the country and myself, we've met with Michael Dell, a couple of times now. And so these are just other visuals to share with you that from Paraguay up to NVIDIA with Jensen, President of Paraguay, the country; Michael Dell, you name it. We are building very important relationships for growth and for HIVE, in particular, BUZZ AI. Next, please? BUZZ HPC data centers, AI training and inference optimized for both an intensive training and real-time inference. What's happened is the -- these data centers that are doing the transformation. They are going through this new rerating. And quite often, they basically sell in the U.S. a long-term contract with a hyperscaler and they get a REIT model for the renting of their data center. What we've been doing so far is we have our own electricity. We have our own property, and we've been doing this for a while now, selling compute and getting a much higher revenue and that's the vision we have for this next couple of years. Next, please. Toronto ranks as the third largest tale tool in North America. Next, please. University of Toronto is the intellectual center of AI. Next please. The genius of AI, artificial intelligence have developed cautiousness and could one day take over the world is Jeffrey Hinton, the PhD and Noble Prize were in 2024, the University of Toronto. So it's become an important nest of brilliant minds that we're studying under -- and been starting under [indiscernible]. Next, please. This is a visual of the team in Paraguay and behind is the largest dam in the Western Hemisphere, which is generating over 3 -- over 14 gigawatts of electricity, and we have 300 megawatts expansion in Paraguay. And our long-term vision is eventually to get to 1 gigawatt of electricity. Next, please. One thing we've always done is education and what we've done in a school, that's a kilometer away from us half a mile had outdoor bathrooms and really quite antiquated in the centers that you would expect in America, Canada or the U.S. So we've taken up to North American standards and young kids are thrilled about it and so are we. Next, please. So while demand is running infrastructure supply. Global AI spending is expected to reach $700 billion by 2028, and HIVE is going full speed and building that and participating in this incredible bond. Next, please. AI demand is running infrastructure supply. So we let take a look at the numbers, potential addition to global GDP due to increased productivity is $4.4 trillion. It's a 3.5x growth in AI data center demand over the next 5 years and 4-plus years. And capital markets are just changing so rapidly, the funding of GPU chips. You have BlackRock and Blackstone creating credit funds just to lend because GPU chips have now become an asset class like cars are for lending. And you can buy car loans. And it's really quite fascinating that this year, how fast or rapidly there are other sources of capital outside of banks. Next, please. But together collateral, we want to share with you is the money manager known for my world of gold and resources copper usage is just huge, the grid and power infrastructure build and what does that mean? Copper is the heart of the electrification boom copper is making all-time highs because demand is far outstripping supply. Next, please. And we can see that when you go to a gigawatt data center, you're going to spend 50,000 tons on copper, not pounds of copper, but tons of copper to rewire everything. So we also see that electrical cars use more than 5x amount of copper wiring. And it's just important for investors to grasp the constraints that's happening globally for this boom in AI. Next, please. Copper demand is projected to rise 40 to 50% by 2040, where is it going to come from? It's going to come from Africa and South America. And now you're seeing all of a sudden, copper deposits being refurbished and looked at that were shut down for low grade, all of a sudden are going to be commercially more attractive in Canada and the U.S. So there is this boom and it's a collateral boom. We've also seen fiber optics because you need dark fiber prices have doubled 100% up. So the inflation on the supply and a lot of times getting HVAC or the electrical air conditioning you need for these high-performance computer data centers they have gone from being 20 weeks to 30 weeks to 40 weeks to 50 weeks and sometimes now 60 weeks to be able to get the equipment to build the data center, which we then put your GPU chips into. Next, please. But we still have a mix market is [indiscernible], level crisis against the AI sector regularly saying what they're shorting and debt levels and calling it a bubble in the past 9 months. These 2 guys have PhDs and [ bublology ] and running around, and this creates a market and you get sell-offs and then you get all-time highs coming back. The demand in sales and when we take a look at NVIDIA, we're seeing that other competitors are coming in to come up with their own high-performance chips because NVIDIA is such so much further invest than anyone else and the demand for video chips are so great. So when these guys come out and talk about how negative, et cetera, in our social media and if they can surround an impact to short-term sell-off, it's usually a good buy. Next, please. we're very excited about where we are in that traction. So I now like to turn it over to Aydin Kilic, our CEO and President.
Aydin Kilic: Thank you, Frank. That was an excellent macro recap. What an exciting time for us. People tell me I need to smile more because all the amazing things we accomplished this year. So here's a photo of me smiling. So let's jump into it. So for those of you that may be new to the HIVE, we are a vertically integrated data center builder and operator. What this means, we land bank, we buy land by substations. We build data centers from the ground up. We operate data centers. We'll acquire old data centers and retrofit them. And of course, we orchestrate compute, we're an NVIDIA cloud partner, we built the BUZZ Cloud, which has been ranked by cluster mix and semi analysis. And we've got a 440 megawatts of Bitcoin mining capacity as part of our dual-engine strategy globally. But really, we think that selling tokens and being at the forefront of the AI economies where our megawatts will get those AI multiples. So it's a very exciting time to be a high shareholder. And this photo is actual of our executive team at the [ Itaipu ] Dam, in Paraguay last year when we're building out our 300 megawatts there, sites -- sites not too far from here. So again, we travel the world, we're boots on the ground. We helicopters, planes, you name it too. The site visits, conferences, see us around look out for the gold [indiscernible] B, of course, and let's jump into it. Next slide. So it was a phenomenal year. I think we really knocked out of the park. If you look at the business overall, we did approximately $300 million in revenue globally. We had over $100 million of gross operating margin and over $75 million in the operating income. Net operating income is our gross operating margin less corporate G&A. So in a cash business what we produce and $73 million of adjusted EBITDA. Now the net loss is booked at $148 million approximately, but that includes a very substantial depreciation and noncash adjustments. So if you back those out, of course, it would be in the positive, but we have an aggressive depreciation schedule 2-year straight-line depreciation for ASIC in 3 years for GPUs. So just to keep that in mind. But on an ROIC basis, a solid year, 13.3%. And we've also been deploying and selling our Bitcoin to fund operations and fund growth. So you'll see that we have a modest but healthy 150 Bitcoin in the treasury as of March 31. Next slide. Solid quarter as well, $72 million in revenue for the quarter, $17.5 million gross operating margin, and the business still did $8 million of net operating income, which I think is very admirable because as we've been growing the business, and I'm going to talk about our growth shortly. We've brought on key team members, and we have contractors and we have tax specialists, we operate in Paraguay in Sweden, Canada. We earn revenue through Bermuda for tax efficiency and how does that all fit together? So our corporate G&A we have the lowest G&A as a function of revenue amongst the loss in the entire industry. So we still are growing the business, but we're still profitable quarter-over-quarter on a cash basis. And I think that's very important to highlight. We don't just go higher hundreds of people and burn a bunch of cash and say, "Yes, I don't worry, we'll figure it out later." We've intentionally scaled the business for getting to critical mass and we've earned money along the way. Again, you're going to see that net loss really as a function of depreciation and noncash items. And so we always do like to point that out. Still a healthy quarter. You see that our HPC AI revenue is trending up above 5% now, so about 6%, 7%, and that will continue to grow as 100% of our growth this year is on the HPC and AI business. Next slide. Year-over-year, as is our fiscal year end March 31, looking at that gross operating margin, I think it's very admirable. We did over 4x growth year-over-year. the $107 million of gross operating margin approximately for the year. That's up from $25 million the previous fiscal year. And of course, you see on a quarterly basis, you see it rallied as we had some really strong performance in the Bitcoin mining business fiscal Q2 last year. But overall, it's been a tremendous year of growth for us. Let's go to the next slide. So on a net operating income basis. I think it's even more impressive because now that we're operating at scale, again, we've been making key executive hires. We've been bringing on consultants and contractors as we tactically and very strategically scaled throughout Canada, our partnership with Bell building the 300 megawatts in Paraguay and having all the tax and accounting in place to really have a truly multinational organization. But I point to sell because even after our growth in the size of the team and the G&A, our net operating income, which is, again, gross margin minus corporate G&A, $76 million for the year, up from $8.5 million in the fiscal year before, that's 9x growth year-over-year, which I think is tremendous. And so again, when I say we've intentionally scaled it means we're paying attention not just where we're going, but what are we doing right now. And so I think that it's going to be a really, really exciting year for HIVE because we built a tremendous machine. We attract, in my opinion, the best of the best. We have a high perimeter culture. We study and implement the teachings of [ Jim Collins], famous author [indiscernible] great. And I think there's going to be some really phenomenal success in the year ahead. Let's jump into the next slide. So again, our dual-engine strategy, the cash flow from the Bitcoin mining business allows us to scale and grow the more long-term and stable HPC colocation revenue and GPU cloud revenue for a BUZZ. Now this is a snapshot of where we finished the fiscal year, March 31, 2026. Now at the time, the Street didn't know our revenue was going to be $300 million. This is a snapshot of our market cap at the time, aligned with where our actual revenue was. So you could see we're doing a little over 800,000 daily revenue at the time. But our market cap really pulled back to the sub-$500 million because there was a big pullback industry-wide in February. We saw Bitcoin get into the low 60,000s. We may -- and I want to say, I want to point out -- we made it through with a profitable gross operating margin and a profitability net operating income. For this quarter, even with all that calamity in February. And again, quarter-over-quarter, for 6 years running now, we have mined with a positive mining margin quarter-over-quarter. And we downfall, we optimize, we curtail. Pound for pound, I believe we are the best bit clan miner in the vision. We know that The Street is very much focused on HPC. But when you have that cash flow engine of Bitcoin mining, that's funding the growth, we want to make sure that, that engine is a very well-oiled machine in pound for pound, best-in-class. So 25 exahash installed about 23 exahash average operational for the quarter, 876 Bitcoin mine. BUZZ about $5 million revenue for the quarter, $35 million, which would be $20 million ARR, but contracted $35 million because we had this exciting Blackwell deal. We'll talk more about that we brought online. In our target -- our target was $200 million ARR for GPU cloud business and about $300 million ARR included the HPC colo capacity that we had as well. Let's go to the next slide. and here we are today. So revenues jumped up. We're doing about $350 million ARR, a little over $900,000 a day. And this is as of June 1, Bitcoin's at $71,000. This was closer to $1 million a day a few weeks ago, but that's okay. The Street is starting to pay attention, $1.2 billion market cap. Well, we're at the catalyst there. We did that phenomenal $115 million convertible bond at 0% interest and that was a massive catalyst to fund the growth of our GPU Cloud to double that GPU cloud from 5,500 to 11,000 GPs and realize a $200 million ARR. And then, of course, huge news was our Toronto area Gigafactory, which increased that ARR target for a collective HPC business to $660 million. So it's a $200 million ARR for the GPU Cloud, plus $440 million, if you look at HPC colo. So now it's a really exciting time. The stock is actually as of today, June 1, we hit $5. So getting into that nice institutional range and, of course, being over $1 billion market cap U.S. So it's really great to see how -- it's important for us, we realize having these targets, but also showing our growth capital which we always target lowest cost of capital, of course, to realize these numbers, and it's just a good feeling for our shareholders when the market rewards us for this being astute stewards of capital. Let's go to the next slide. So again, just again, it's our year-over-year. So just a quick by the numbers. Our cash rate grew over 200% in operational cash rate for the fiscal year. And if you look at what was installed as of the end of the fiscal year grew almost 20%. Again, with Bitcoin at 71,000 today, mining over 11 big in a day, it's about $100,000 baseline revenue and be very intentional about how we scale. Let's go to the next slide. I do want to point out, again, navigating the volatility implicitly in the Bitcoin mining sector. We've talked about hitting our 25 exahash we did that. But what we then did is we optimize firmware for all the different types of machines that we had. And we got that hash rate, it's actually 24.6%, although on an installed stock basis, over 25 exahash, but the trade-off is the efficiencies improved 16 jewels of terahash. What that means it lowers your breakeven cost of mining. So your total output cash rate is slightly lower, but the trade-off is your breakeven cost improves. And so in bear markets, this is what you strive to do -- it's sort of -- it's a plan or mass solution that we constantly optimize. But again, it's really about having this level of expertise in the background, that cash flow engine that's helping us spur up and expand the HPC business. And even though we have 440 megawatts, we're only consumed about 395 megawatts because we brought online, more efficient machines. We've replaced some bus manager with F21 XPs, which were bought with credits we had from our [ Bitmain ] pledge last year. So very strategic intentional and curated way to make sure the business continues to cash flow through any volatility. Let's go to the next slide. Okay. And the final slide on the Bitcoin part is really just to give the readers out there. What does this look like? When you talk about volatility, will real simple. Here's the rubric, 70,000 Bitcoin, doing about 300,000 day profit. 80,000 Bitcoin, a little over 400,000 day profit. And 90,000 Bitcoin over $500,000 a day profit. And this is an illustrative example, if you assume an electrical cost of $0.05 because based on electrical costs, well, that's the cash flow from the machines and those goal-toward pay other operating costs and of course it's corporate G&A. But this just gives you a flavor of where the one engine, how much cash flow is producing and again, we're actually 16 jewels at Terahash with everything optimized 24.6 exahash. And now let's launch into the next section. Perfect. So zooming out globally, 860-megawatt footprint as of today, 440 megawatts of active capacity, again, actually consuming 395 megawatts of power, but we've got 440 megawatts of data centers globally. And with the GTA Gigafactory recently announced more on that later. And of course, the Phase III [indiscernible], that brings our total roundout to 860 megawatts. So I think it's going to be a really exciting year ahead as we provide the Street updates on how we either convert some of our existing Bitcoin mining capacity to HPC or in cases like Yguazú and our Gigafactory and the GTA develop those and bring those to market. So it's going to be a really exciting year ahead with lots of updates. Let's go to the next slide. So focusing on the cloud, BUZZ cloud, this is our GPU business. As you know, we're doing $35 million of annualized revenue. Today, that's realized. So that's spread over the 5,500 GPUs. And so the green bubble here on the left, that's what's active you see a bit of overlap now as we grow into that Bell AI fabric partnership. So again, our partnership with Bell AI fabric is really is a colocation. So we are standing up our GPU clusters in Bell AI fabric data centers across Canada. -- currently contracted. We had Manager in British Columbia, we've press released this. What this does is it gives us a quick time to market, low CapEx path to scale our GPU cloud revenue. And so of course, you have the stamp of validation as large as telecom clear Bell Canada, choosing Buzz exclusively to build their -- to be their data center -- sorry, their GPU cluster, orchestrator and operator. And so what does that mean? So if we have our own clients and we're standing up GPUs and AI Bell fabric data center, we're just paying the colo fee, 20% below market, very attractive. And if Bell brings us a customer, then they get a small rev share from, I think, 5% roughly. And so it's a massive demand funnel from Canadian enterprise clients that are looking for sovereign AI compute. And so it's a phenomenal partnership. And you can see that ramp, but more specifically and what the catalyst was for our $100 million convert was upsized to $115 million in April was to fund the 2 large GPU clusters we have incoming. So let's talk about that briefly. So 2,304 GB200s, MOU signed 2,080 GB 300s/MLU signed. So million ARR to date, signing 1 of these deals gets us to $100 million ARR and the second large GPU deal gets us to $170 million in ARR. And I think that's really exciting for 2 reasons. One, once we track $100 million ARR, I think our stock rerates again, again, we hit $5 today, and we're still -- and I think that was on the strength of the Gigafactory announcement. But I see each one of these GPU clusters adding a few hundred million dollars of enterprise value to the company once the definitives are announced. And again, now that we have the funding in place, I'll give you the numbers. So the 2,000 GPU cluster, rough number is about $175 million. And so to get a sweet spot, if you want to get single-digit interest rate, what we're finding from blue-chip lenders, they like to see 80% LTV. So that means we come in with 20% down payment. So that would be a $35 million down payment on a $175 million cluster. Well, we would just raise $115 million. So we now have the funds to put a $35 million down payment for each one of these large cluster deals. And what does that do? Well, again, we got the MOE. We got the data center space with Bell. We've now got finalizing the financing. So when we announced the definitives, we'll be able to advise you on total contract value at a 3-year, 4-year contract, all the particulars, I know every base curious, really, this slide is to forecast to you hey, this is what the incremental ARR will be for each cluster being online and how we get to $200 million ARR. And of course, the final tranche in Q4 is just to fill up the remaining capacity in [ Manitoba ]. Again, we currently have 500 B200s there. And so there's a pipeline for about another 1,500 B200s or 300s at that site. So collectively, that gets us to over 200 million ARR. On the lower half of this chart, are other sites we've talked about. Again, our Toronto airport site, the smaller [indiscernible]. And of course, New Brunswick, which is our flagship Bitcoin mining side in Canada, all of those converted to HPC colocation is Tier 3 data centers. And you can see what the ARR, again, on HPC colo and we're forecasting under $30 a kilowatt for New Brunswick and higher, of course, for the GTA sites. Now the Gigafactory adds a massive $360 million ARR just on a colo basis. We expect that site to be completed and energized late 27 and active and cash flow in early 2018. So you could see now our constituent target total ARR for HPC is $660 million, $200 million from the GPU Cloud and $460 million on HPC coal, a very exciting time for a high, very exciting time for buzz and a very exciting time for our existing shareholders, and we welcome new nesters as well. So let's go to the next slide. This is a quick overview of that $115 million changeable mill. I wanted to slot it in here because this tied into the funding of those GPU clusters. So again, was $115 million convertible note due to 2031. 0% coupon and why I think this is so great, if you did an equity financing our stock was at $2.18 when the deal was priced. So typically, bankers, The Street is going to want to see a 10% discount. So if we did an equity financing, it would have been dilutive, it would have been probably at $2 and you're paying your 6% or 7% broker fee. This was tremendous because at 0% coupon, really what you're telling The Street is, hey, I'm doing a 0 interest bond. And if it gets exchanged, it will be actually exchanged at a premium. So it's like doing equity finance at a premium to your stock price, not at a discount. And the great thing, and so the base conversion prices have been $2.57, we bought a capped call at 125%. What actually put our conversion premium of $4.92. So that means with a cap call, there's no dilution up to a $1.2 billion market cap. And by the way, we get those proceeds. So beyond the 257 conversion price up to 4.92%, we actually get that as a payout from the [ Capco ] stakeholders. The value of that payout look at the right hand of this chart is actually $105 million. Now there was a cost to that cap call, which was $19.8 million. About $105 million payout for a $20 million that's over a 5x payout ratio on value. That's a good insurance policy to me. And it just so often to be today on June 1, we actually rallied past our cap call price today. So very exciting times. Of course, that $105 million payout is based on maturity. If you do an early conversion, you might have to negotiate that. But I think that this note was phenomenal, and Cantor did a tremendous job and so we're really looking for the notes are trading well as well in the secondary market. So it was a great inaugural debut to the convertible market for HIVE. And we're deploying these proceeds to get those GPU clusters funded and definitive agreements announced in the near future. So stay tuned for big updates on that. Next slide, please. Now I want to put a little bit of context, I want to put context on our recent [ Blackbaud ] deal. So this is the 504 GPUs. We've talked about this deal. It was in our last presentation. It's live today. It's great. It's cash flowing. It's the first Blackwell cloud in Canada, [ 5004B200s ] in that Bell Canada, Winnipeg site. But what I want to point out just for The Street and for all the listeners to date, this was a 2-year contract that was valued at $30 million for a cluster of GPs that cost $30 million. So I'll say that again. We effectively sold the entire face valuing those GPUs upfront in a 2-year contract. Now we do have some OpEx, of course. It is being co-located in the [ Belle ] fabric site. So actually, your ROI, it's a 2-year contract for $30 million after operating cost, your ROI is more like 2.5 years, but that's still tremendous. We've signed the entire face value of these GPUs upfront. Now what does that tell you? Well, it tells you the amount of demand for these EI natives and enterprises that want -- that computer sold value valuable to them, they will pay the entire value of those GPUs upfront in a fixed contract. When does that get them to get some exclusivity, you get some sovereign compute. It also gets the white glove service from BUZZ, where we set up the GPUs in the data center, which, of course, is nontrivial and we sign an SLA, and we make sure they get that level of service and quality that they expect. So of course, that's what we're good at. That's what our expertise at. We're masters of orchestrating compute. And again, we've got 5,500 GPs globally. We've been doing GPU Cloud for several years now, and now we're starting to hit critical mass. But I just want to point out the virtue of the GPU cloud business, we are effectively seeing deals, long-term deals where you're able to go purchase a cluster GPUs, sign a long-term offtake contract where the entire value of those GPUs and then some getting upfront in a contracted revenue. So really excited, really bullish on the growth of our GPU cloud business. as we deploy those proceeds from or convert to bring online those 2 large clusters. And by the way, it's a CapEx-light strategy for us to scale. We, of course, have our own sites that we're going to be building for Tier 3. But in the interim, having this CapEx light ramp with Bell Canada, it's near quick time to market, low CapEx. I believe it was a great way for us to really lead the Canadian soften AI ecosystem. Very happy with this. Let's go to the next slide. So again, circling back now. I pointed out on the world map, we have these 2 large 2,000-plus GPU cluster deals in the wings. So what I can tell you is directionally, we're very much aware that we're actually targeting 3-plus year contracts now. And what is that too? Well, if the ROI on the GPU cluster after cost might add is 2.5 years, you go ahead and sign a 3-year contract upfront. Now you have locked in the face value of the GPUs across OpEx and you fully paid your GPUs off plus contracted profit in the 3-year term. If you did a 5-year contract, for example, now, and it's a 2.5-year ROI after cost. Now you've 2x completely paid off your GPUs upfront with a contract and you have the residual value of those GPUs at the end of the term. So what's really interesting is we had one highly renowned institutional shareholder that is deploying a lot of capital in the AI sector, they were actually the opinion they prefer shorter-term GPU contracts of 1 in 2 years because they think that there's a lot of upside. They think you're leaving money on the table. When you sign a 3- or 4- or 5-year contract, obviously, that's done at a bigger discount and they think they're very bullish on the residual value GPUs. Other highly respected institutional investors, more from the trade world, amongst our largest investors actually have a different opinion. And they like the stability and they say, signed a 5-year contract if you can or a 4-year and that way or 3-year and then you've at least locked in the entire value of the GPs plus some profit and whatever the residual value is just a cherry on top. But directionally, this slide is really just to share with The Street, hey, we're going long term. We're going big. And we're on our way to hitting that $200 million ARR target this year on stay-tuned for updates. By the way, that's an actual photo of one of our deployments of [ H200 ] deployment in Quebec, Canada. So it's a very beautiful stuff, very sophisticated stuff. Let's talk to the next slide. So really, this is just a slide to focus. If you just look at Canada, if you look at BUZZ in Canada, BUZZ HPC in Canada, this platform alone between the Gigafactory site, the smaller Toronto site and our New Brunswick saying, they have about 400 megawatts of utility load and almost 100 megawatts of -- sorry, 400 megawatts utility load in 100 acres of land that we've assembled to bring this capacity. And through 2028, this will transform into $450 million of EPC colo revenue alone just in Canada. So I really want to prop up the strength of our sovereign offering in Canada. And I think that our Buzz HPC team, Craig and the team have done a phenomenal job and we're -- it's the first Blackwell cloud, this tremendous partnership with Bell Canada now with our GTA Giga factory, which, of course, that's a high in BUZZ owned opportunity. We'll be providing The Street a lot of updates on that. Let's talk to the next slide. Really, this slide reminds people, we once were operating a fleet of 130,000 GPs in Sweden during the theory of mining days. So we know it's 1 or 2 about orchestrate and compute. And so for us to say we're going from 5,500 GPs to day to 11,000 GPUs to target end of year. It's a very exciting goal and I would just say stay tuned. And just a reminder, we can do bare metal offerings with our GPUs or we can offer through our BUZZ cloud. Again, -- we've built that we have we have [ Kubernetes], we are able to sell and manage AI services, which matters a lot for enterprise clients that we may get through partnership with Bell or any other enterprises that want the full cloud offering or the bare metal. And again, we've been growing this cloud business since 2023. Let's talk to the next slide. So the crown jewel, the slide that everybody is talking about. So really, the Gigafactory, it means 100,000 GPUs. And so the CapEx to build this will be about CAD 3.5 billion, but that will throw off 316 million ARR. And so I think that's a really exciting target to have. We expect the site to be energized by end of 2027 and live with compute in early 2028. So this is a 25-acre site in the Greater Toronto area. We spent $58 million on land. So I've alluded and I said we've been land banking by substations. We guess what, that's exactly what we've been doing in Paraguay and throw Canada as well, even in New Brunswick. So you need land and power. Those are the 2 constituent things you need to realize and build a Tier 3 data center and bring that to market. So we've got over 90% renewable energy. And we're working on a closed-loop 0 water use design, sub-1.3 POE target. And this is going to be a great job creator for the region. So we're really excited, standby for updates. There's going to be a lot of news as we provide The Street more color on developments for this massive game changer of an opportunity. Next slide, please. And really, this has been very intentional. This is a rendering of the conceptual slide. This is a positive impact for the community to -- and this doesn't happen overnight like -- this deal has been well over a year, and we've been engaged with the region in the municipality and even in the community. And what does that mean? Well, you don't just go in and drop in a data center. This is massive upgrades to civil infrastructure. We're talking about widening roadways, upgrading regional water line. There's a lot of NIM, no, they're going to sap up and use all the water. Now it doesn't work like that, who are actually upgrading the water lines regionally, before, we were going to build a data center here, there was a development application in place for typical use. And they -- the region said, look, you've got to upgrade. You got to do all these civil upgrades, water line, storms, sewer, et cetera. And often site development oftentimes application get log jam when the region has -- or municipality has these large civil -- it's been almost a decade in commercial property development. And [indiscernible] notice when you drive bio when a new high-rise goes up like all the roads leading up to it, all of a sudden are brand new and much nicer, Well, that's specific contribution that you have to make. So actually upgrading and improving the community -- it's going to create hundreds of skilled jobs. And again, it's based on closed loop liquid cooling. So deeply entrenched into the wants and needs of the community, very thoughtful design, satisfying both the region and the municipality. This stuff doesn't just happen overnight. We've been at it for over well over a year. And so it's very exciting that we have this announcement recently. Stay tuned for more updates. Next slide. So I'm going to call this a new era for HIVE. I see a $5 billion U.S. market cap on the horizon and beyond. And what I mean by that is we've got a 500-plus megawatt global HPC power pipeline. So you may recall that earlier slide, I said if you only focus on Canada or sovereign about 400-megawatt pipeline of capacity across 3 sites. And if you look at Sweden, we've got approximately 40 megawatts of capacity, our big bone and little Boden site and then, of course, the 100 megawatts in EU. So that's very exciting as well. And how do you justify that $5 billion market cap, I'll show you. Let's go into the next slide. So if you really look at our peers, Iron obviously has done a tremendous job scaling their GPU cloud business, and they're trading at about a 6x multiple there. Now our peers that are focused [indiscernible], PLD both [ Cipher and Hut]. The interesting thing is companies like [ Wolf and Cipher ] -- sorry, [ Wolf and APL ] actually have revenue today on their HPC business. And [ Cipher and Hut ] is actually all forward contracted. They don't actually have revenue today. And so that's what we have these 2 buckets. So Tier 3 means active current revenue in HPC and scaling and then Tier 2 is really just contracted HPC revenue. And you can kind of see the average multiples. So you're actually seeing a higher multiple in the Tier 2 bucket with only contracted revenue, about 15x enterprise value to target ARR revenue for Cipher and had compared to 10x multiple, if you look at the average PLD in Wolf. Nevertheless, we're just using a nominal 8x multiple on our 2-year forward colo revenue, which, again, really all these sites that we talked about, the Gigafactory New Brunswick, I refer to the previous slides, but they'll sort of come online through the course of '27 and then Gigafactory early '28. And so if you line up the targeted ARR we have put an 8x multiple. Just our HPC colo business, look at the top rate is about $2.9 billion enterprise value, plus another $800 million for New Brunswick, Toronto [indiscernible]. And so that brings you about $3.6 billion. The cloud business, we actually put a 5.9% multiple on that, like iron, and that's about $1.2 billion. So if you add that up, it's about a $4.9 billion enterprise value. And then if you put a normal $500 million valuation on the Bitcoin mining business sort of using the blended valuation where [indiscernible] puts you at a $5.3 billion implied enterprise value using the sum of the part. Downside case. Now that puts us at about 4x rerating where we are today. And again, this is, of course, predicated upon the GT gate factory having an HPC lease side and, of course, is contracting those GPU clouds. So again, state. We've got a lot of exciting updates coming as we develop these sites, and we'll be announcing contracted revenues in due course, really just shows where we would be trading amongst our peers at similar multiples. But let's go to the next slide now. If you actually take a look at where our peers are. Again, we use a base case of 8x multiple in the colo. Some of our peers are trading well in advance of that. So at a 10x colo multiplier, using the same 5.9x on the GPU Cloud, puts us a $6.8 billion base case. And if you look at the blended average of all our peers on the colo multiple Wolf cypher, APL, hot, et cetera, the blended average for the sector items actually 1.4x 2-year forward revenue, it would put us closer to a $7.6 billion upside case. So again, I really say it's a $5 billion and beyond outlook for HIVE right now, which is a tremendous tremendously exciting time. And standby as we continue to execute, provide treat updates on contracted revenues, install more GPUs advance our site developments, order long lead items, broadcast ready-for-service dates. All that good stuff that you'll expect seasoned Tier 3 data center builder to provide as well as updates as we expand our NVIDIA Cloud. Thank you very much. Over to you, Darcy.
Darcy Daubaras: Good morning, everyone. Fiscal Q4 was another productive quarter for HIVE as we continued executing on our strategy of scaling digital infrastructure while growing our HPC and AI capabilities. Overall, our results reflect continued growth in our operating platform and demonstrate the benefit of maintaining diversified revenue streams across both hash rate services and high-performance computing. Looking here at our capital structure as of March 31, 2026, I've had approximately 259.4 million basic shares outstanding. We also had approximately 3 million warrants 2.6 million options and 15.1 million RSUs outstanding. Throughout fiscal 2026, we were able to access capital markets to support growth initiatives and strategic expansion projects. Our focus remains on allocating capital towards opportunities that we believe can generate attractive long-term returns while maintaining financial flexibility. Going to the next slide, looking at our quarterly results. Revenue for the fourth quarter totaled $71.8 million, and we generated approximately $9 million of adjusted EBITDA. We produced 876 Bitcoin during the quarter. reflecting the continued contribution of our global hash rate services operations. While hash rate services maintain our largest revenue source today, we continue to see encouraging progress from our high-performance computing and AI business, which generated $4.6 million of revenue during the quarter. We view this business as an important long-term growth opportunity and demand for compute infrastructure continues to expand and be strong. Taking a look at our balance sheet on the next page, it continues to be the quality of our balance sheet that is kept us strong since our inception 8 years ago. At March 31, 2026, we held $23 million of cash on hand, $10.8 million of digital currencies and $9.7 million of investments. Total current assets were approximately $59.8 million. These resources continue to provide liquidity to support operations and growth initiatives. During the year, we maintained our disciplined approach to funding expansion while preserving capital flexibility. Although we continue investing in infrastructure and strategic growth opportunities we remain focused on maintaining a healthy balance sheet and prudent capital management. The next slide highlights the progress we made in expanding gross operating margin dollars. Gross operating margin increased from approximately $8.8 million in the fourth quarter of fiscal 2025 to approximately $17.5 million in the fourth quarter of fiscal 2026. The increase reflects the substantial growth in revenue generated by our operating platform over the last 12 months. While market conditions continue to fluctuate, we remain focused on operational efficiency, energy optimization and disciplined cost management. Looking at year-over-year performance, Revenue increased from approximately $31.2 million in the fourth quarter of fiscal 2025 to $71.8 million in the fourth quarter of fiscal 2020. Gross operating margin increased from $8.8 million to $17.5 million over the same period. Our gross operating margin as a percentage of revenue moved from 28% to 24% and we are encouraged by the significant growth in both revenue and gross profit dollars. As we continue expanding our infrastructure platform, our focus remains on generating sustainable operating cash flow and long-term returns on invested capital. Comparing the fourth quarter to the immediately preceding quarter, revenue was $71.8 million compared with $93.1 million in Q3. Gross operating margin was $17.5 million compared with $32.1 million in the prior quarter. The sequential comparison reflects normal fluctuations in Bitcoin mining economics, market conditions and operational factors affecting production and revenue during the quarter. Importantly, the business continued to generate positive gross operating margin, demonstrating the resilience of our operating platform even in an ever-changing market environment. This next slide highlights the distinction between operating performance and reported earnings. Adjusted EBITDA improved year-over-year, moving from a loss of $30.7 million in the fourth quarter of fiscal 2025 to adjusted EBITDA loss of $9 million in the fourth quarter of fiscal 2026. Reported net loss for the quarter was $76.3 million compared with a net loss of $72.9 million in the prior year period. Primary difference between these measures relates largely to noncash items as we have discussed on prior webcast, even though those charges do not impact current period liquidity. For that reason, management continues to monitor both GAAP results and operating performance metrics such as adjusted EBITDA. This slide highlights the distinction between operating performance and reported earnings. Adjusted EBITDA improved year-over-year, moving from a loss of $30.7 million in the fourth quarter of fiscal 2025. And to adjusted EBITDA loss of $9 million in the fourth quarter of fiscal 2026. Reported net loss for the quarter was $76.3 million compared with a net loss of $52.9 million in the prior year period. The primary difference between these measured relates to largely noncash items, including depreciation associated with our ever-growing infrastructure asset base. stock-based compensation and various accounting adjustments required under U.S. GAAP. As our infrastructure footprint expands, depreciation expense naturally increases even though those charges do not impact current period liquidity. For that reason, management continues to monitor both GAAP results and operating performance metrics such as adjusted EBITDA. Looking sequentially on the next slide. Adjusted EBITDA was negative $9 million in the fourth quarter compared with positive 5.7 million in the third quarter. Reported net loss improved modestly from $91.3 million in the third quarter to $76.3 million in the fourth quarter. Quarterly results can be affected by a variety of factors, including Bitcoin prices, network difficulty, production levels and accounting adjustments recognized during the period. Our focus remains on executing our long-term strategy, expanding our infrastructure platform and positioning HIVE to capitalize on opportunities across both Bitcoin mining and high-performance computing. To conclude, fiscal 2026 was a year of substantial growth for HIVE. We increased revenue, expanded our infrastructure footprint continue building out our high-performance computing business and maintained a solid liquidity position. We believe the investments we have made over the past year strengthen our foundation for future growth and position the company to benefit from increasing demand for both digital asset and high-performance computing infrastructure. With that, I'll turn the call to Nathan running our Q&A portion for our covering analysts. Nathan?
Nathan Fast: Thank you, Darcy. That concludes the presentation for today. We'll now begin the question-and-answer portion of our call. [Operator Instructions]. Our first question comes from the line of Joe Vafi from Canaccord.
Joseph Vafi: Congrats on all the progress, really exciting times here for HIVE in the industry. Maybe kind of start on the Gigafactory a little bit, great vision and plans here. You drill down a little bit more on procuring power for the Gigafactory, Obviously, power is a constraint here. And I think a lot of investors here are pretty familiar with kind of the power market in the U.S. But if you could lay out the power market in Toronto there for scaling that and in general, for Canada, that would be a good place to start. And then I'll have a follow-up.
Aydin Kilic: Yes. Thanks, Joe. So the power in the [ GTA ] is governed by there is a provincial regulator. And there's actually 2 ones in charge of generation and one is in charge of transmission. And so effectively, you've got to be contracted with both and that's really the pillar of having this allocation of power. And really, that's what I could tell you for now. It's about over 90% renewable energy. And let me now is anything more specific that you'd like to know.
Joseph Vafi: Just maybe a little bit on -- is [indiscernible] really a constraint there? Or I mean -- or do you see the Gigafactory kind of scaling slowly and it's really more of a CapEx spend on GPUs and infrastructure and power is less of a less of an issue? Just trying to understand that a little bit better.
Aydin Kilic: No. I mean there's a full allocation for the 320 megawatts. And maybe what you're asking about is there's grid studies and load studies, et cetera, that go into an allocation of that scale. And that's what's so exciting about this site is that we have that allocation. So I think it's more what I tried to address in my section. And we've been at this for over a year now. It's an exercise in, of course, securing the distribution and low generation contracts. And we can provide more color on the sort of detail as we provide updates on the site development, et cetera and but it's also regional and civic planning. And I had a slide dedicated to that. You don't just go drop in some modular containers like this is a real -- this is going to be a real bellwether for the community. And so as far as your point about CapEx, I mean it would be financed really like any other large data center project. We've seen a lot of our peers issue corporate bonds. We've seen, of course, obviously, once you have lease with a hyperscaler and offtaker that obviously is a major catalyst towards funding as well. So really as we've seen a lot of our peers funds larger scale future builds. I would -- that would hope address the CapEx portion of your question. But again, please let me know if there's something more specific you want some clarity on.
Joseph Vafi: That's great. That's a good backdrop. And then maybe some more color on Paraguay or I mean it feels like it's a great opportunity I know Frank mentioned plans to perhaps procure up to a gigawatt down there over time. I know you've started with some AI services for Columbia University from down there. Any other updates for now on the Paraguay opportunity and what to expect there, say, over the year?
Aydin Kilic: Yes, yes. Actually, I'm glad you brought that up. It was a lot of stuff in the updates. And really, we had all this exciting news out of Canada. But it's funny you mentioned that. I promised everybody that was going to [indiscernible] the question. So we actually had an update. Our researchers out of New York at Columbia University that we're running compute nodes out of Paraguay, their research initiative was successfully completed, and they have submitted their work, they're inaugural research using highs in tension with the researchers based in New York to the ICML. So it's an international congress for machine learning, very prestigious world renowned and Congress [indiscernible]. And so that's really exciting. And so we are going to release some of that. I mean that's -- it's a great research project, and so I'm happy to talk about it. briefly on this call. But more importantly, is now we have -- we actually have the data on tokens per second bandwidth and latency between New York and SMS. So that was a R&D initiatives that went very well. And so stay tuned for more updates as we kind of update. And I think one thing I've alluded to in a lot of our fireside chat, which we're always grateful to be on that you host and being at the different conferences, et cetera, is all pretty forward as I've been saying, we've been land banking by substation as well that applies in Canada as evidenced by some of our exciting recent news, but also Paraguay. And by the way, we've been expanding our footprint in New Brunswick as well because you need more land for expanding into a Tier 3 than you do for Bitcoin mine, of course. And by the way, like when you think about it when you think of construction and you're building and you're getting into mobilization, where you're going to have storage and where you're going to have a laydown of or even just encampment for construction workers, et cetera. So you obviously -- you need more land than just the square footage of the finished building. And you need to think of logistics as over the course of construction, et cetera. So we've been expanding our land footprint in Paraguay by the Yguazú substation, which we think has incredible long-tail value. I could say other large data center players in the industry have indicated interest. I think there was a photo floating around with [ Cruso and Pena]. So just to give you an idea of who's been poking around that area that neck of the woods. And again, we've been land banking by the substation was. So stay tuned for more updates as that initiative unfolds over the next quarter as well.
Nathan Fast: Thank you, Joe. Next, we'll go to the line of Mike Grondahl from Northland.
Mike Grondahl: Hey guys, can you hear me?
Nathan Fast: Loud and clear, Mike.
Mike Grondahl: I wanted to get a sense of CapEx maybe the next 12 months. Any rough estimate how you can frame that up on the BUZZ side and the Bitcoin side?
Unknown Executive: Yes, absolutely. Sorry, I thought I addressed that in my section, Mike. And really, that was captured. If you guys want to watch it on the playback if you watch the YouTube link, sort of that section that shows the growth of the BUZZ cloud in terms of hitting that $200 million ARR ramp. And then right after I talk about our $150 million 0 coupon bond. And so that sort of addressed the CapEx. So just sort of rough numbers just to give you something broad. And you could substantiate this, I'm sure you've got similar data out there. But if you look at a cluster like what the guidance we've provided is our growth in ARR would the catalyst being the cluster size of the GPU deals for MOUs that have been signed. So we have a 288 cluster, which, by the way, when you look at [ NDL72-Grace ] Blackwell. That equates to 29 racks, so 29 x 72 GPUs is 2088 and then the other cluster are slightly larger. It's 32 racks, times 72 GPs is 2,304. When is GB 200, where [indiscernible] 300. I'll give you a rough number. each cluster. And again, you could just substantiate this by -- or validate this by talking to peers in the industry, about $170 million for everything like when you get a [ bond ] from an NII OEM and networking your storage, everything that you need really to fully deliver is about $170 million per cluster. And so that's the CapEx per cluster in each one of those clusters, one had 70 -- sorry, $70 million ARR, the other add $65 million ARR. And I discussed how you financed that if you want to get a single-digit interest. Typically, you're looking at putting 80% LTV, so 20% down payment. So what's 20% of $170 million will be about $34 million. And by the way, there's customer deposits involved too, which may possibly offset may not. But anyway, if you want to use a rough number, that would be a good indicative down payment from us towards each large cluster. And then the filling out the Winnipeg site, we showed another 1,500 B200 [ 12 ], our original cluster, I also had a slide that detail the cost of the original B200 cluster, which is live now. And that cluster of 504 GPUs was about $30 million. And again, that slide really focused on how the 2-year contract we signed for that cluster of B200s, the value of the contract really covered the face value of the GPU. So anyways, I provided the clarity on the CapEx there. So you got another 1,500 GPs in the pipeline, 1,500 times -- sorry, that would be 3x the existing cluster size, so 3x $30 million, another $90 million, which again, you'd sort of finance. And that original cluster was with [ Dell ] through [ Dell], [ Dell Financial ] and they've been a great partner. So we may possibly finance through them or, again, typically 80% LTV. I hope that's really helpful, but that should give you the capital outlay to finance the GPU cloud business to get to that $200 million ARR figure.
Mike Grondahl: Got it. And then I assume there's no capital outlay or capital expenditures on the Bitcoin mining side. And any plans to deemphasize that or possibly sell that off?
Aydin Kilic: Correct. There's no CapEx allocated for Bitcoin mining. I mean, really 2025 was the year of bringing on that 18-plus exahash in Paraguay. And we had some credits with [ Bitmain ]. If you look at our presentations last year, we used this pledge. We pledged a lot of Bitcoin at $87,000 and when Bitcoin [indiscernible] was above that, we actually realized value from those credits. And so with those credits, then we actually got some [ S21 SPs], which went to strategically upgrade some BUZZ miners. And so we're talking a few thousand units here. And really, just to get that breakeven as low as possible globally to be able to navigate new volatility, continue the cash flow. And that's really the only reason I had that price sensitivity slide in my section as well as is readily apparent if you're watching, if you like, wherever Bitcoin trades over the next quarter, you can always go back to my presentation, look at that slide and be like, okay, I should be doing about 50% margin after electrical cost, 45%, whatever the case may be, just to understand how that dual-engine strategy, how much cash is being thrown off. But yes, no CapEx for the Bitcoin mining business. And I don't know what you mean by deemphasize. I mean it's, I think, a significant amount of cash flow generation we've got -- I know some of our peers have just because like [indiscernible] 23 exahash, whether they emphasize it or not, it's still there. So I assume The Street would like a bit of color and clarity that's still being well managed, and you're getting maximum value for all that capital that you've invested into that infrastructure to make sure that it is cash flowing as much as humanly possible. And that's why I did take a couple of slides to point out that we still carefully -- any one of our deployments. We -- and I think it's worth noting, like zooming out we were once the world -- one of the world's largest are miners. We got into this cloud game GPU cloud game early in 2023 after the ether scaled and Bitcoin mining. So the very nature of orchestrating compute, it's -- to me, it's always been somewhat agnostic. I look at everything in dollars per watt hour. But yes, whatever we're going to be doing, we're going to be doing it well to ensure maximum upside for our shareholders. I hope that helps.
Operator: Next question, we'll go to the line of Mike Colonnese from H.C. Wainright.
Michael Colonnese: Just a couple more on the GPU Cloud business for me. So as it relates to the data center infrastructure that will support the incremental chip deployments at the [ Dell ] data centers throughout Canada. Can you just give us an update as to where that infrastructure stands today? Is it ready to go? Are there other developments that need to happen at those sites to go ahead and support those additional GPU deployments?
Aydin Kilic: Yes. So if you refer to the -- so the Winnipeg deployment, of course, is currently live. That's the first 500 GPUs. But moreover, when we put out a press release, I believe it was in early April for -- with Bell for the expansion to British Columbia on the West Coast. That was for the site and merit that side that the excitement around that was that the site was ready and effective for us April 1. So the merit site is live, and so it's really an exercise of standing up the GPU clusters in there and going live with those. And again, just kind of circling back towards Joe's question is, we're going to kind of towards the final strokes of financing and announcing definitive for those cluster deals. And so yes, so you've got the capacity for the first cluster ready today at the Merit site and that the capacity for the second cluster in the [ Merit ] site will come online later this year, and you kind of see the time line that we've laid out in that. I would -- I'd refer you back to that chart -- slide where you kind of have the growth of the GPU clusters by type of [ GP ] by size GPU and by what quarter they're expected to be deployed. Yes, I hope that answers the question, Mike. Please let me know if there's any more clarity.
Michael Colonnese: Great. So it sounds like the cadence of infrastructure development aligns well with pretty low risk to the schedule you laid out in your slide deck. Is that so to say?
Aydin Kilic: Yes, yes, exactly. That's -- and that was an overtue of having the CapEx like quick time to market partnership with Bell. As you very well know, we are data center builders and operators ourselves, but having that at that logo, having that capacity having that Tier 3 bad capacity ready in a very near term allowed us to scale the cloud business as we saw outsized demand in the very near term and do so in a CapEx-light manner while we undertake our more longer tail CapEx-intensive either conversions of, for example, New Brunswick and [indiscernible] and little Toronto and, of course, now with the Gigafactory. So that was the whole strategy is to leverage that quicker time to market through Bell.
Michael Colonnese: Makes perfect sense. And just one more for me. How should we think about gross margins for the GPU cloud business for those chips that will be deployed at the metal data centers? I know you mentioned you locked in a pretty favorable colocation fee you're paying [indiscernible], but just curious how we should think about the gross margins there.
Aydin Kilic: Yes. I would put EBITDA north of 75%.
Nathan Fast: Time for a few more questions here. We'll go to the line of Fedor from B. Riley.
Fedor Shabalin: First of all, thank you very much for a very detailed presentation. Most of my questions already upfront answered, but I do have one on 320 megawatts newly acquired land that supports Gigafactory expansion. Given the recent announcement, my question is, when did you start conversation or for ranging with capacity to potential tenant? And who you -- what kind of tenant you're looking at? And if you can just outline demand from Canadian potential tenants or maybe from U.S.? And yes, who are you reaching out and how far you are in the process?
Unknown Executive: I think I alluded to the -- thanks for the question. I think I alluded to the Gigafactory say really the crown jewel and the Canadian sovereign strategy. So there's -- given the proximity of the site, the GTA, Greater Toronto area is what GTA refers to is really like the prime area in Canada, this corridor really it's in the realm of the [ Vector ] Institute. There is -- and the short answer to your question is stay tuned. Really, the inaugural announcement was to share with The Street, the capacity, the power and the land. And so specificity on who are the types of climb, so you'll have to stay tuned. But I can say directionally that this would be a phenomenal site even for having some government tenants in there as well. And of course, in our partnership with Bell Canada, there's a -- although this is a HIVE and BUZZ-owned site, which is distinct from the Bell AI fabric sites, we've been co-locating. This is our own site that we're developing and building. We've got a phenomenal partnership with Bell. They have many Canadian enterprises that would love to have residency at the site. So I know you want more color, but it's one of those questions you just going to have to stay tuned. And if there's anything else that you'd like to ask, please let me know.
Nathan Fast: All right. Time for one final quick question. We'll go to the line of Stephen Glagola from KBW.
Stephen Glagola: I just wanted to circle back also here on the 320-megawatt your Toronto site. One, can you maybe clarify what full allocation means for the 320 megawatts gross capacity? And then second, you mentioned graded load studies in the prior Q&A. Could you maybe provide more details across interconnection and permitting, including like where you stand in the ISO process and any remaining permits across zoning, building environmental required to begin construction or support customer contracts?
Aydin Kilic: Yes. So quickly, Stephen, we're -- this isn't like the guys at semi analysis, they like to go ask all those questions. And there's just a certain level of disclosure that we're going to provide and then there is a level of disclosure that's sort of beyond the realm of what we're going to provide at this time. So it's really stay tuned. I mean we've put a very thoughtfully curated press release. I spoke to it in my presentation, and that's the level of disclosure that's been shared with The Street. You e-mail the same questions to me a few weeks ago and I think my answer was much along the same lines. So I'm sure you'd love to come to the site and take a bunch of pictures too. But you know what, that's not going to happen yet. So you'll get an invite when we do public walk-throughs, et cetera. But in the meantime, you're just going to have to hang tight body. So I think it's also covered in my sight -- sorry, it's covered in my slide. You put 240 megawatts of IT load if you assume 1.3 POE, and you could work out your revenue figures based on -- I mean it is a primary market. So you could use your dollar per kilowatt, you go but $150 in there, if you want to get to revenue projections. I'm not sure if that was your question, but I hope that's helpful. And I want to be helpful, but sometimes people will ask questions that are just far beyond the scope of disclosure at any moment in time. So I just -- with all respect, I have to call that out.
Nathan Fast: Thanks, Steve. And that concludes our Q&A session. in our fiscal Q4 and full year 2026 earnings call. Thank you to our analysts, all of our attendees for joining. We look forward to speaking to you again soon.
