HIVE Digital Technologies Ltd (HIVE) 2022 Q4 法說會逐字稿

(technical difficulty)

chain. One day, it's meaning 70% of the time for the past year. It's been a nonevent to go up or down 6%.

And over 10 days, we can serve 17% or fall 17%. So anyone that is investing in HIVE has to have a great stomach for understanding volatility and hopefully using it to their benefit.

I like this little visual from Bitcoin Magazine understanding risk, it is a volatile asset class.

Next, please. Well, we're still very proud of having being #1 -- going to A, first to go public, first to mine Bitcoin [and] Ethereum, first to buy datacentres, put them on our balance sheet, first, to be 100% green with ESG strategy and to be inter-listed with Canada, U.S. and Germany.

HIVE uses 100% green energy in Canada, Iceland and Sweden. We source geothermal energy in Iceland, hydro in both Canada and Sweden. And I'm just going to talk more about that and some of the interesting aspects of what we're doing.

So we did some other interesting things in the past year, but this is our ticker. We traded German market. We trade NASDAQ. We trade Canada. But I'm really proud to say HIVE achieved record annual revenue ended March 31, 2022, up $211 million and earnings of $79 million and that's a huge 545% growth in Bitcoin mining hashrate and also our digital assets were at the year-end, about $170 million.

So you think of that, we raised $200 million, and we rapidly grew the digital assets in addition to expand and buy new equipment and generate immediate cash flow. So that's what's really unique about the HIVE story.

Here's the numbers. I mean, pretty impressive and Darcy is going to go and drill down through to explain more granular parts of this sort of financial company that's so unique.

Next, please. So some of the big milestones, new strategic contracts signed with blockbased Barrage, Boden Business Agency, Compute North and New Brunswick Power always negotiating, always staying busy. We hit 2 exahash BTC mining and 6 terahash or GPU mining and the Intel deal of 1 point exahash of ASICs for the future. Aydin is going to go into more granular detail on that and where we are in that -- progressing with that relationship.

But also before we get into some of the other parts, we have to understand these crypto winters. And this past year has been a third one. And I think it happened in the second quarter of last year when Elon Musk came out and made a negative statements on Bitcoin using coal energy and we saw all these stocks start to tumble and change the sentiment. We had a rally in Bitcoin after that, but still, there was just a negative sentiment and it started to grow with regulatory arms and -- but the crypto ecosystem itself, the adoption continues to grow rapidly, but the prices were hitting new lows and they fell into it looks like we are at the bottom or very close to the bottom.

And what happened is I try to explain to people is what's like a metaverse in this world of playing monopoly money over here of people rolling over their crypto and there was such a hunger with zero interest rates to get big yields. So people would post up their stake as is calling their coins and they would earn an income on them.

And then there was a lot of money started coming from retail investors to go into staking and this was a real big difficulty because when Bitcoin start to unravel this year, the sort of Ponzi scheme needed fund flows always going in -- and a lot of these schemes were leveraged 100:1 like long-term capital in '98 that almost brought the world down to a stop.

And so you can see the repeat in 2008 financial crisis where real estate was highly leveraged. And stock brokers all of a sudden felt they were leveraged 33:1. This has happened many times in history when an industry starts leveraging his balance sheet 33:1. I can share with you because I'm older.

And in 1989, the top-selling book was called [Yen] and the Japanese were buying -- trying to buy the Seattle Mariners. They are buying buildings downtown New York. Why? Their banks are giving them money and they were leveraged at 33, 34:1. That means a 3% error wipes out the capital and all of a sudden, 2 years later, you see all these Japanese banks are going under real estate that has to be sold in America.

It's a complete cycle. This cycle in the crypto space just happens faster. So we have hedge funds. No one really assessed the counterparty risk. We have [Celsius]. We have Voyager Digital that these companies went bankrupt, where they're taking in money and allegedly promising FDIC insured on their money.

So it's been a real calamity and that whole proof-of-stake world of earnings, taking your coins or earn these big yields, all of a sudden started unraveling and margin calls are between each other. And it was like, as I said, it was happening over here in this sort of metaverse and it started coming over to our world.

As all of a sudden, people try to cash out back into U.S. dollars or any other currency. There was such a scramble. I'm taking a little few extra minutes on this crypto winter, but it's really important to recognize, a; over leveraged economies or countries, they all go to through an implosion cycle. We had this happened in the crypto. It looks like the worst is behind us, but I think it doesn't go straight back up.

And for that, we are being very -- actually, I didn't give you more granular but we're trying to plan out and make sure for being the most efficient crypto mining company, it's because how we plan, and we haven't made big promises in buying all kinds of machines that don't have electricity for them or we've not built a lots of facilities with lots of electricity and have no money for machines.

We try to make sure that spread between electricity and machines is not too great. And there continues to be disruption around the world in the movement of products. And if you want equipment, whatever is there's always these delays and disappointments.

And next slide, please. So that's the end of the crypto winter. I hope the worst is behind us. And even during the crypto winter, we rolled back our stock 5:1 consolidation.

We went from 411 million shares outstanding to 82 million shares. And you can read the full press release was done on May 10, 2022. And we felt that it was important to do it for many reasons. And one of the key parts is that in the U.S., if you're under $5, many funders cannot buy you.

And so you see it if you also fall below $1 a share that you have -- they're forced by, it'll be listed on NASDAQ to roll back. I think the first level is $2 and if you're down there for long, they'll tell you, you have to consolidate. And if you're down below $1, they call very quickly.

We've avoided all of that sort of drama. A lot of shareholders don't understand it but there's lots of very compelling research in the capital markets that when a company like ours with revenue and cash flow does a consolidation, it has our highest probability of a re-rating and getting a broader and deeper set of shareholders.

So that's what we believe is taking place and also makes the number of shares outstanding more comparable to our peers. So when you look at PE ratios and cash flow, it's much easier to look for value.

Next, please. Darcy is going to explain this in greater detail, but really for everyone to understand earnings come from 2 factors. Operational earnings, which are really key, the cash flow; how many coins we're producing and how many we're selling and then investment earnings, our HODL position.

So if you have a rising Bitcoin, then you can get 2 for 1, that is your HODL position goes up along with your operational earnings.

However, you can have where you're expanding your production and Bitcoin is down for the quarter and your HODL position takes away from your operational earnings. But to grow a business, you have to really focus on the operations, the operational cash flow is very, very key for any investor.

So there for me is -- this is a very important visual of giving you a matrix, a cash flow pro forma matrix of potential changes with rising crypto prices. As you can see, we start at the bottom, a bitcoin at 20,000 (inaudible).

Our cash flow based on current production and G&A is about $0.50 a share. So what is -- what do a lot of stocks trade at. They trade at multiples in the Datacentre business because that's where we're in. They trade north of 15% and up to 20x cash flow per share.

So that gives lots of upside potential based on that metric. Ethereum recently popped the 1,500, Bitcoin at 23,000. So you can see the leverage that we offer to shareholders that have -- when Bitcoin goes back to 40,000 and Ethereum at 3,000, our cash flow could be $2.20 per share. If you put a multiple of that of 10x, that's $22 stock price. So that gives you an idea of a 5-factor potential on the upside. Vice versa, which I think is important for you is that we're coming off the bottom.

The next visual is a pro forma one. And what we're buying more machines, the Intel machines would be coming on stream. We're building out new places for electricity and based on Bitcoin price data at 20,000 and Ethereum at 1000, our cash flow is expected to be $0.70.

However, back at 40,000 and the Ethereum at 3,000, then we make close to $3. That's $2.90 in cash flow. That pushes the stock. It has the potential to go $30. So this is sort of give you an idea of how to value because I believe that what we're building for shareholders and owning these datacentres on the balance sheet, et cetera, we're in the Datacentre business. And if you look at Canadian software companies, they trade at 27x multiples.

So we're extremely attractive, both in U.S. and Canada. Revenue over the last 4 quarters, the momentum. Let's just give you a recap. The granularity of this will come from Darcy, but you can see that it was rising until we went to this past fourth quarter this year is our fourth quarter.

HIVE's year-end is March 31. So as Bitcoin fell, and Ethereum fell, our revenue fell. But we didn't fall as much as Bitcoin fell. That's just interesting and because we increased the production. And I will go in through that is showing you that we were able to offset and something else that's really key is that in our performance, we put a difficulty, a very severe difficulty of, I think, close to 3% a month and that means that you'll have less coins each month out of the whole universe of opportunity because for Bitcoin, it's every 10 minutes, there's a drop puck or a jump bag. You want to use that as a metaphor.

And so that means that there's more players trying to touch that puck then you're going to get less Bitcoin. If less people are mining, you're going to have more Bitcoin. And if you're increasing your production, your machinery, you're going to get more Bitcoin.

So we were able to offset that. But what we're recognizing and seeing is that the difficulty rate has for this past quarter after our year-end is actually slowing down. This is all for public disclosure for those that really follow the crypto industry.

So that's a double win that even though Bitcoin and Ethereum is down, if the difficulty is down and we're increasing our production, and we're able to get a bigger part of the overall coins being produced, it's very profitable for us.

Next, please. So Bitcoin mined by HIVE increased fourfold. I'm so proud of that. Aydin and operations and the team, Bill Gray, CTO and the other key people in Johanna, what she's been doing in Sweden, but in particular, in the (inaudible), New Brunswick in Quebec, it's just been great to see our petahash growing even though Bitcoin came off because it shows we can produce more coins.

Bitcoin to Ethereum balance, that's up threefold. That's exciting. If you look at year-end last year, just under $60 million of Bitcoin Ethereum, and we had more Ethereum than Bitcoin for the year last year. Ethereum did have a bigger run going into December than Bitcoin and we had a bigger HODL position, which we've taken some profits off this year.

And interesting enough, Bitcoin is now a big part of our overall HODL position.

Next, please. hashrate growth rate. This is the combination of both mining Ethereum and Bitcoin. So you can see it's growing, and that's what you want to have and we were trying to have huge growth, and we want to tool back and just be cognizant of all the supply disruptions and all the policies of various states and countries around the world so that we maintain this high efficiency relative to our peers.

Next, please. So you can see here that [Seaton] were compared to bid firms at Hut 8 Canadian companies and recently looking at Bloomberg has said that we're trading at 4x earnings, and Bitfarms is at 9x and Hut 8 at 6x. And this changes all the time but what's really fascinating to me is the huge P/E ratio that ride a marathon on.

I would say that all of our peers, all the other 4 companies have great CEOs and these are very class professionals, but it's the investment crowd, it's the hedge funds that play the space that they are playing on this huge growth potential for Marathon and Riot and both have run into energy issues.

And it's not to say that we don't have these challenges but it's been much more severe, so they've not been able to increase their Bitcoin as product relative to what was forecasted or, b; they have a lot of employees. And I think that Riot right has the most employees. I think that Marathon is similar to the number of employees we have, we would have more people in operations, but we still are very lean with approximately 20 employees, Bitfarms has many more employees and same with Hut 8.

So on a value proposition, this is a simple way of looking at what the P/E ratio is and if you look at a lot of the other companies, they've not delivered what was forecasted. And the big reason for that is it's just difficult. It's difficult with COVID. China opens up, China closes down. China opens up, China close down. Most of the equipment is coming out of China.

So we are very, very sensitive and cognizant that the China is sort of paranoia over COVID and their paranoid reactions and that we want to be very cautious that we do deliver on our production and cash flow.

I love this guy. He's a [quant]. Uses a famous book called Cash flow return to invest to capital. It came out of Chicago, both Holt Advisory and it was bought by Credit Suisse. So we run through a model and it says, what is our cash flow return on invested capital and then what's our potential?

So if you apply this model, it's a great way for screening for stock picking. And there's lots of regressional studies that show that if you only pick stocks in the top 10% that have the highest cash flow towards investor capital, you'll perform 99% of active fund managers.

So it's interesting. So HIVE's numbers get put through here, and we have a sixfold increase potential based on cash flow return on invested capital model.

Next, please. Simply, Wall Street, I -- get this on your iPhone, et cetera, and they recently said the sentiment is picking up for HIVE but I thought was interesting when they said HIVE Blockchain Technologies may be setting very bullish signals at the moment where it's P/E ratio of 4 since almost half of all companies in Canada in the technology sector, and they put us in the software.

Interesting enough, OneExchange puts us in the fintech sector. But in -- and we're much more of a technology company, but the ratios of 13x earnings so that would suggest HIVE could be over $13 a share and software companies on average have a P/E ratio of 27%.

So we're extremely undervalued on a relative basis to the industries.

Now I'm going to turn it over to Aydin, our President and Chief Operating Officer, to get into some of the nitty-gritty of the numbers.

Thank you, Frank, for the introduction. So it has been a stellar year and a stellar quarter for HIVE. I'm going to do a deep dive on some of our figures as well as give an overview of where the business is at.

So first off the top, this is actually from Anthony Powers. So he covers the mining industry for Compass Mining, and he does a really great research. And so what he's done, he's actually picked up on a metric that we introduced about half a year ago when all the miners started putting out their monthly production reports, which is the good gold standard of any bulge bracket crypto miner.

How many petahash do you have running? And how many Bitcoin or in our case, Ethereum have we produced? And so what happens is as these operations start getting so big and people encounter energy crisis and places like Texas and so forth, and even just running a multi exahash fleet. As you get to scale, some people start to -- their knees buckle under their own weight.

And what I mean by this is not everybody is producing the same amount of Bitcoin per exahash that they should be. And so what Anthony has done, and we were presenting this in some of our earlier presentations, but Anthony does a great job covering it, is the Bitcoin for exahash.

So what you'll see here, HIVE did a 131 Bitcoin for exahash in the month of June -- and you see all of our peers were in the 120 range, somewhere between 120 and 128. And so this is very key and HIVE has emerged on the top month after month, for the last half year. And it's because we run a tight ship, our global teams are dialed in. And we've got a diversified energy portfolio again, Iceland, Sweden and Canada. So I encourage you guys to check out Anthony Power's tweets.

Let's look at the next slide. So some exciting news here. Bill Gray, our CTO, has received and has been working and testing with, and we've been having a lot of exciting calls. Our first Intel HIVE minor. This is an actual photograph. We've applied our logo after for fun. But this is a real product.

The Street and the analysts take the Intel ASICs and integrate them into a function of Bitcoin miner. Well, here's the answer to that question, and we're very excited about the performance.

So what sort of the big headline about this slide, the data that Bill got it in through the courier is that this is the most beautifully constructed, high-quality ASIC miner he's ever touched and he's been mining since 2011.

So we are very pleased and we're very excited. Our team has weekly huddles with Intel. It's really a global effort. We're talking to the Thermodynamics team in Finland. Obviously, the chip development team in Silicon Valley. They've got a wealth of resources and we're working with Intel's preferred ODM, their outsourced development manufacturer that's worked with them.

Some of the other proponents that have Intel chips, they're doing their own kind of liquid immersion and they're trying to reinvent the wheel before they even got the first wheel rolling. We wanted to get the product to market first, get it dialed in, get it robust, well-built and operating in our datacenters.

And we facilitated it is actually to one of our flagship datacenters for some of the Intel [engineers]. So it's about really pushing the envelope forward and getting the product to market.

And so we're very excited about that. We're going to have more updates on this in the near future, but this is for everybody, our first photo of the actual HIVE Intel Bitcoin miner.

So let's hop to the next slide. Now we're going to take a moment here just to address the market. As Frank mentioned, it's crypto winter. And so ASIC prices at large have fluctuated as we know, people generally think they fluctuate with price -- Bitcoin price, what actually -- they're PEG too and all the Chinese manufacturers know this is actually the hash price. We're going to cover that in a moment.

But let's look at this chart. So year-over-year, we've already seen -- like if you look at summer last year, ASIC prices have dropped about 40% to 50%. Now the 3 columns you're seeing here, it's either going to be your most efficient stuff under 38 Joules of terahash. You're sort of mid-range 38 to 68 Joules of terahash.

And so this is actually put together by the folks at Luxor. It's called Hashprice Index, and they're really great group. And I always encourage whether you're a Wall Street analyst or a retail investor, get smarter and get more better insight into the industry.

And so you could see that even just in the year-to-date, we've already seen fall in ASIC prices about 50%, 60%. And off the high from November, December of last year, we're down about 60% to 80%, right?

So it's understanding that ASIC miners are like a commodity themselves, and it's all about deploying capital at the right time. It's no fluke when we've got these $80 million of net income this year and $211 million of revenue, HIVE has a massive footprint.

We're not just about great projections. It's also about what we've done and what we've accomplished. And so it's just deploying capital and buying your ASICs at the right time that really those are the seats to success, and now they've flowered and so we've got some great year-end financials.

Let's take a hop to the next slide. So I mentioned hash price, right? So hash price is your dollar per terahash per day. And so -- this is actually a really great follow-up slide to the previous ASIC price slide because you can see, for example, where we are today, right? Again, this is how much money U.S. dollars would you earn for every terahash you had running per day.

So right now, if you look closely at this chart, this is -- or about $0.10 of terahash per day, okay? Now if you look at last summer, we're about $0.20, $0.25 a terahash per day. So you think about that and then you think that the ASIC prices have fallen about 50% since last summer, it all starts to make sense, right?

And so it's very good, again, for your retail investor or Wall Street analysts understanding that these are the true market correlations that the bulge bracket crypto miners followed. We like to educate our shareholders, all the HIVE fans out there, we like to be a beacon of intelligence to knowledge as wealth and we want to create value for our shareholders, not just with how HIVE performs as a company. But with what you can learn and get smarter on the sector.

Now you can obviously see that we were seeing hash prices about $0.40 -- $0.35 to $0.40 in the peak of last year. And so now, again, we're corrected back down to $0.10 a day. And so that's why we were seeing corrections from ASIC prices about 80% since those [highs] earlier this year.

And this is hash price, my last comment on this slide. Hash prices actually -- it takes into account Bitcoin price and difficulty, right? So you're looking at the whole pie which is very important. Sometimes people only focus on Bitcoin price. We introduce people to focusing on the hash price as well.

And you could just Google it Bitcoin hash prices, this particular charts from BitInfoCharts. So it's a really great chart to catch up on.

So let's hop to the next slide. So this is from -- Hashrate Index again. So once you understand the hash pricing, you know how to look at the hash price, right, then you can start doing really fun things and looking at the whole sector.

And so for example, right, we know our hash price is about just under $0.10 right now. So if you -- are people still mining with S9 Antminers? And what you could say possibly and you look at this table, you're -- okay, hash price breakeven, it's about $0.096 for the S9 if you got $0.04 power. So that means if you're paying $0.04 power or less, you could actually mine profitably with an S9 right now.

And so we just hedged about 24 megawatts of $0.03 in Sweden. So we could mine profitably with S9 in Sweden. I mean we have more efficient gear that we're running out there, of course, but how you kind of understand the landscape of crypto mining economics.

And again, this is -- when HIVE is emerging as the most efficient miner month after month, we understand these energy dynamics very intricately and so we always make sure that we're offering the best equipment that we could buy at the best price as well and allocating across our facilities.

Now if you look at something like an S17 and again, breakeven hash price of $0.096 towards the bottom of that column. You see that, okay, well, your breakeven be $0.09 power, right? So if you had $0.09 power, you'd be breakeven. So anything below is a profit.

So with this table has been comparing the hash price in dollars per terahash to breakeven electricity prices in dollars per kilowatt hour. This is a great one to be aware of. But now we're going to hop to another slide.

Let's move forward, please. And so here, we actually do an even more intricate analysis, but this is even more insightful, right? This is your masters class in Bitcoin mining. Here, we actually represent your revenue in dollars per kilowatt hour. Your revenue in dollars per kilowatt hour. And the reason why we do that is because people pay electricity in dollars per kilowatt hour.

But here's another interesting thing because we also mined Ethereum at HIVE. We can then track the revenue based on energy compared to Bitcoin and Ethereum. Now this is an industry-agnostic table. This is showing you a sweep of Bitcoin mining difficulty, right, from $22 trillion up to $31 trillion. And we publish this -- this is HIVE Intelligence. Just presented on this at the Bitcoin Mining Council yesterday actually -- globally.

In the other column, you've got the machine efficiency, right? So you get -- so right now, we're at $29 trillion difficulty. And you can see if you look at like an S19, 30 Joules of terahash, you look at that up on this table, you got about $0.12 a kilowatt hour. Okay, that's good. You've got 35 Joules of terahash, you're going to get $0.10 a kilowatt hour.

And so why this is really important. Like -- so for example, in Lachute in Quebec, it's about $0.04 power. We could run our M30s, we're getting $0.10 -- a little over $0.10 revenue. So this is in a bear market, by the way, the input to this slide is $20,000 midpoint. That's the input carry (inaudible) where we change our prices, whole table will change.

So in a bear market, we can run at 60% profit margin in Lachute with our M30s'. Now if you think about Sweden, remember, I mentioned we just hedged 24 megawatts at $0.03, well we can run, we've got some cadence at about 40 Joules of terahash doing $0.09 revenue, $0.09 revenue, $0.03 power, we're running almost 70% profit margins in Sweden for the ASICs that we mined with in a bear market with Bitcoin at $20,000, right?

And so again, I get back to being the most efficient allocating resources across your data centers globally, HIVE has a fantastic, diversified energy portfolio between Sweden, Iceland and Canada. And so when you understand the intricacies in these nuances, that's why we can send different equipment between different data centers as we get newer hardware and how do we optimize our fleet.

And so here's another point. I mentioned Ethereum mining. Well, guess what our Ethereum flagship fleet -- our legacy fleet that's been mining since 2018, our RX 580s, they're doing $0.25 a kilowatt hour, right now, $0.25 a kilowatt hour.

So these Bitcoin mining numbers are great. We're seeing a range between maybe (inaudible). Our legacy fleet of Ethereum miners are $0.25. And our data center fleet, our NVIDIA GPUs are doing $0.35 a kilowatt hour right now.

So it actually shows you when you look at revenues in dollars per kilowatt hour, you can understand the entire landscape of your crypto mining operation. So anyways, there's a really fun slide for all the numbers geeks out there.

So we've gone granular now we're going to zoom out for a moment. So the original [obviously] first public crypto miner. And of course, Bitfarms and Hut 8, we all went public around a similar time and so we're sort of the legacy crypto miners, right? Long-standing, been through 2 crypto winters each.

And so this is actually a snapshot of how our fleets have been upgraded with time. So these are from recent monthly reports. And if you look at the total equivalent petahash in the total megawatts globally, you actually see that HIVE has running about 28 petahash per megawatt. Bitfarms is a close second with 25 petahash per megawatt and Hut 8 is at 21 petahash per megawatt.

And so why this is important, as you know, the more efficient your machines are, the lower your breakeven prices and thus the more profitable you could be, right? And so this is -- you zoom at one level instead of looking at an individual machine, you look at a company's entire fleet.

So this is a handy sort of analytic reference for looking at company by company.

Now we've talked a lot about numbers and analytics, but there's a whole another side of the HIVE story, right? Where we were ESG before it was cool, right? So HIVE green and clean miner. And so we've been doing some really cool stuff, right?

So in Sweden, we actually got some greenhouse concepts and the renderings are actually pictured here, and we hope to be in short order. The cucumber Kings of Sweden. And in Northern Sweden, specifically where our Boden facility is, we're in discussions to get a greenhouse going where we can grow tomatoes, cucumbers and other vegetables. We're very excited about that.

Let's look at the next slide. Now in the same note, we've also got -- and this is actually happening today. So these are new -- well, this has been happening for a while, but these are new photos that have just added to our deck because what you actually noticed is that you see this array of pipes. So what you're actually looking at. This is a Lachute in Quebec, 30 megawatts, 30 megawatts of power coming out of our 40,000 square foot datacenter actually heating our industrial neighbor, that's a 200,000 square foot building, and they're a swim for manufacture.

So completely unrelated to crypto. And as most of you know, Canada, especially Eastern Canada, it gets very cold during -- most months of the year. And so actually reusing our heat energy to heat our neighbor, and this has been happening. And it's just one example of how HIVE always thinking, how are we going to be the most sophisticated and ESG-conscious crypto miner as well as being the most efficient miner when you look at our numbers and analytics.

So a quick update on our infrastructure in New Brunswick. So we're 60 megawatts built out and the aerial photo there, actually, we'll update that very shortly because the fourth building is actually complete. So we got machines arriving weekly that are getting plugged in and so we've got an exciting update in terms of -- by the end of this year, we'll be at over 3 exahash of pure Bitcoin mining.

So this is our June '22 production figures, we press released this recently. So right off the top, we did 420 Bitcoin equivalent in June. That's 14 Bitcoin per day equivalent, right, comprised of 278 Bitcoin. It's a little over 2,500 Ethereum.

So June was a knockout month. Again, we were most efficient in the industry and our total Bitcoin equivalent hashrate was 3.5 exahash in June. We actually peaked. We went through an optimization exercise at the end of the month. So about 3.2, 3.3 right now. and that's all fine and well. We're in the process of (inaudible).

So next slide, please. So over here, we've got our overall infrastructure portfolio, and so as mentioned, we've got New Brunswick at 60 megawatts right now. Our total operating footprint is 134 megawatts globally. And just within a couple of months, right, we're going to be at 100 -- almost 160 megawatts globally. And these are all our existing datacenters. This is nothing that's out of reach. This is all within striking distance, projects that are just putting the finishing touches.

And so as it stands right now, we've got 7 megawatts of completed infrastructure available and to grow into, again, we've got ASICs arising almost weekly. And in about 2, 3 months, we're going to have 30 megawatts of existing infrastructure to go into. So that's going to allow us to hit all of our hashrate growth targets.

And so on that note, I'm going to turn it over to Darcy Daubaras.

Thank you very much, Aydin, and thank you, everybody that's on the call today. We're really excited to get our year-end results out, and we're really excited for the future as Aydin and Frank have talked about in terms of our growth that's been driving us over the last 12 months.

As you can see, we've got a very healthy balance sheet as we've continued to maintain over the last 4 years I've been with the company. We have been using, as Frank had mentioned, some of our cash on hand to do our expansion, make sure that we can hodl our coins and help to keep ourselves strong through this -- these downtimes in the markets, even though we have been repaying debt on a monthly basis throughout the year.

Next slide, please. This slide talks about our very strong profit and earnings per share, even though it's fallen down into a negative position as a loss per share year-over-year. A lot of this has to do with the adverse effects that we had due to an accounting requirement where we had to do a goodwill impairment on our New Brunswick facility. It's all noncash, but it does affect our bottom line, as you can see in our loss per share that we had, still very strong gross mining margins that we've got here, even though the BTC has been falling a little bit and Ethereum over the last couple of months.

Next, please. As Frank and Aydin have talked about very eloquently, we have continued to increase our hashrate over the last 12 months, and that's been the driving force to HIVE being successful and getting a much higher revenue year-over-year with the additional Bitcoin that we've been able to mine month-over-month from our flagship facility in New Brunswick and the money that we've been putting into that to expand it in terms of its hashrate capacity.

Next, please. Even though we've seen the Ethereum difficulty rising month after month, day after day, we're continuing to stay strong in terms of the number of Ethereum we've mined have dropped, but we've been able to continue to have that as a good base for the company because it's continued to drive us forward throughout the last 4 years and given us the opportunity to build our Bitcoin mining facilities.

Next, please. This just want to, again, visualizes the drop that we've had in terms of the number of Ethereum that have been mined but a lot of times, that has been offset by the increase in the Ethereum price over the last 12 months. We've got a really good balance there. We're continuing to stay strong and the improvements we've made on our GPU cards for the mining of Ethereum has been very beneficial to us.

Next, please. What we're looking at here, a year-over-year comparison of the revenue and gross mining margin for the period January through March in 2021 and in fiscal 2022. As you can see, as I've talked about, that revenue increase up to $49.8 million in the fourth quarter driven by the increase in the Bitcoin that's been mined from Q4 of last year to Q4 this year of over 600 Bitcoin.

So that continues to drive us forward and gives us a very strong stability for our operations and expansion moving forward. And unfortunately, once again, the gross mining margin has dropped down a little bit because it was a very cold winter in Canada and the electricity prices in New Brunswick were very large compared to what we see in some of our other facilities.

Next, please. This just takes a look at the Q3 versus Q4 as we can see the revenue has dropped off a little bit. Some of that had to do with some downtime we need to take in Canada with the electricity providers. We had to do some curtailment during that period. And also, as we've talked about, the gross mining margin has dropped as a result, partially of the increased electricity costs that were experienced.

Next, please. This is taking a look at one of our non-IFRS and non-GAAP measure, our adjusted EBITDA. This is where we make adjustments to the EBITDA to make it a little bit more comparable and understandable to the markets. So all of this information is included in our MD&A, which is posted on SEDAR and on our website. So I encourage people to take a look there, see that. And as we can see the net income loss, part of that has to do with the impairment that we took on the New Brunswick facility on the Goodwill and the intangible assets, all noncash.

And also, as Frank had alluded to, we've made an accounting change this year in the treatment of our Bitcoin and Ethereum Holdings. When we do the mark-to-market, those used to be flowing through income, but now it's flowing through below the line.

So those gains that we were seeing, our unrealized gains aren't being shown up in the net income anymore.

Next, please. A lot of accounting talk. Ethereum mining margins, as we continue to see our adjusted EBITDA from the prior page has dropped down net income has dropped also still maintaining a good, strong gross mining margin even though we experienced those higher costs during Q4 of this year.

Next, please. So I want to, on behalf of the HIVE team, thank all of our shareholders and investors for listening to, it's an exciting time at HIVE. We're continuing to drive forward as Frank and Aydin had talked about there's very exciting things moving forward. And I want to make sure that all of our shareholders and anybody listening, don't forget you can find all of our updates by following HIVE on our various social media platforms, as you can see there. And you can also read the full earnings press release on our website.

This concludes today's webcast. I thank all of you for tuning in today and look forward for a very strong crypto momentum moving forward.