HIVE Digital Technologies Ltd (HIVE) 2026 Q2 法說會逐字稿

Hello, and welcome to today's webcast on HIVE Digital Technologies financial results for the six months ended September 30, 2025. My name is Nathan Fast, Director of Marketing and Branding at HIVE, and I'm pleased to 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 US Private Securities Litigation Reform Act of 1995. Words such as expects, believes and similar expressions identify these statements. Actual results could differ materially, and we disclaim any obligation to update them, except as required by law. For a full discussion of risk factors, please refer to our most recent SEC filings at sec.gov.

In addition to discussing results that are calculated in accordance with GAAP, we will also reference certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income, and free cash flow. Management uses these metrics to evaluate operating performance and believes they provide investors with additional insight, and they are presented for supplemental purposes only and should not be considered in isolation from GAAP results.

Reconciliations to the nearest GAAP measures are included in the appendix to this presentation and in the press release and Form 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 would now like to hand the presentation over to Mr. Frank Holmes from a macro recap of the quarter. Frank?

Thank you, Nathan. Let's get into my macro recap, and I'm going to try to weave in some of the most recent past couple of weeks' sentiment, unpacking the drivers of short-term negative sentiment in data centers and AI infrastructure, which I believe is just setting up for a phenomenal buy for us an industry whole. I'm going to try to explain this in this presentation and why HIVE is so uniquely positioned in this macro theme. Next, please. Well, HIVE's journey to really accelerate its growth in Bitcoin mining.

It was stalled after Putin invaded Ukraine and sources of hydro and geothermal electricity around the world all of a sudden went shut down or very small. There was no scaling ability until the opportunity a little over 18 months ago when I reached out to the President of Paraguay and flew down to meet him because they have surplus electricity. I'm going to try to walk you through sort of this journey. And that this President is really quite unique. President Santiago Peña is a former rugby player.

He is 47 years old, studied at the University of Columbia, New York, worked for in Washington with the IMF and has had an incredible journey in Paraguay and building the country and becoming recognized. And every time I go down, I find something new that I love more about the country. But the country is very unique and very pro-America.

So to give you an idea of all those negative news about Latin America, with Valenzuela and some of the drama of the Panama Canal and then we have, for sure, Columbia's President. I think it's really important to look at how Communism and Socialism has penetrated deeply into Central and South America, but not in Paraguay.

And I think that that's what's really important for investors and why we felt so confident this is where HIVE would scale its Bitcoin operations, sourcing green energy, surplus energy and really also helping out the overall economy grow, and I'll show you some of the other unique things we've done in schools that are nearby us. But President Santiago Peña was the sole Latin American Head of State present at the 2025 Gaza Peace Summit.

So this is something else that's really important who's pro-Taiwan. And one of the largest suppliers of food commodities for Taiwan, I believe, for a population with 6 million people, they produce about -- food for and which they export for 60 million people. Next, please.

So here's our President of the country, Gabriel Lamas, who's an electrical engineer, worked for the government's utility company. As you can see, he's very tall compared to the President who's like 6'2, Gabriel is like 6'4, 6'5 and he's just been a great leader of maximizing the whole scaling, the concept of scaling and coordinating and working with our CEO, Aydin Kilic, who'll speak in a few minutes. And Luke Rossy, who's our Chief Operating Officer; and Bill Gray, our CTO. Gabriel has done a phenomenal job accelerating the scaling from 6 to 25 -- the journey to 25, we've announced for 24, and we're very close here to 25. So we feel very confident of hitting that.

So you can see here, Gabriel was recently with them. And there's a picture when I first met the President a little over 18 months ago. And the economy is one of the strongest and steady growing economies in Latin America. So that's another real positive sign for the country. Next, please.

As a money manager, I have always say that government policies are a precursor to change. And Peña's policies for fiscal development are outstanding and he has pushed to make sure that every child is fed and then upgrading the school system, but we're helping with that. And we're helping, especially in rural areas.

And so this story, what I'm trying to point to is that Paraguay is powering high velocity ascent to 25 exahash. And what's interesting is that yesterday -- sorry, two days ago, is November 12, and that is Hayes Day because in 1870, there was a tragic war, a trilateral war with Uruguay, Argentina and Brazil trying to take over this massive green belt country, and they wiped out genocide all men and boys to the age of 10.

It was tragic, and it was President Hayes that came in that resolved that they kept about 60% of their land. And to this day, the country celebrates November 12, Hayes Day and the largest state in the country I'm pointing to here is President Hayes. So there's a very strong bond with America that when I talk to investors, the average America is not aware of. Next, please. So part of that journey in addition to rapidly scaling and building out data centers, campus across the country, building a Buzz is also -- it's creating lots of local jobs in construction.

We've shown you a visual of lighting the streets in Valenzuela, a city near us. But then it's also for the kids, and this is a thank you from a former leader, a mayor of Valenzuela for lighting up the streets and making the street safe at night for women and children. Next, please. So when we went out and saw the schools, which are very close to us, I'm talking about 0.25 mile, 0.5 mile away. We started in this process of upgrading these schools and putting in air conditioning, new electrical painting, new chalkboards, infrastructure and you can see here a PlayStation here for kids so that they can go and play and enjoy these facilities and also for embracing data centers.

There's a big, great disconnect even in very advanced countries like Sweden that take it for granted all the apps on your mobile phone and Netflix and Spotify. They think it's all free, and they don't realize no data centers, no digital realm that we all live in and we rely on. So this is sort of a visual of relating this to the children of Paraguay. Next, please. You can see the picture, this is the key people here.

You can see Gabriel Lamas is in the middle, and he's kneeling down because he's so tall. But behind is myself, and you can see to my right, Luke Rossy, and you can see to the left, is Aydin Kilic, our CEO, who's also electrical engineer like Gabriel Lamas is. And beside Gabriel is Craig Tavares. Craig is our President of Buzz, which is building out our AI business. And you can also see Johanna Thörnblad, who's the President for Sweden.

And you can see one of our independent directors and other key people that have been very much involved in the growth and acceleration. Investment banker, Jamie Brown is there. So it is a lots of key people that are helping drive this. But behind the visual is the largest, biggest hydro dam in the Western Hemisphere. It's five miles long.

It's epic of size, producing over 10 exahash of electricity, five for Brazil, five for Paraguay. Paraguay is a small population. So they've been selling some of their electricity to Argentina, which has been only really horrific for their fiscal management of a country. So it's a small country, and that's what's good about Bitcoin mining. Not only do we build this infrastructure, you need substations from this high-voltage electricity, and we build those.

And then we build a campus of data centers, and then we end up hiring 50 young engineers that there's no real job opportunity for them. And -- but now there is with HIVE. And so the -- it's really, for us, an exciting part of our journey of creating this from little kids' education to creating career paths for young engineers. Next, please. So on that journey of going to Latin America, I really want to show you that this year has been a phenomenal year for Latin America of 40 ETFs, so the 40 biggest market cap stocks versus the S&P.

They've crushed it. They've really outperformed the overall S&P 500. And I think that, that's what's really important for investors to recognize. Next, please. So on this big build-out, I call it an arms race.

China has significantly surpassed America in building data centers. But before that, they build power. And the power came from hydroelectricity. And they got the water from the glaciers in the Himalayas and rerouting water from Tibet down to creating dams after dams and building out a huge grid. And America has to get caught up, and it is.

And under the stewardship and leadership of President Trump, as soon as he came to power as the CEO of NVIDIA says that impression the most about Trump is that he embraced the need for AI and power and data centers. And here is a classic where Bitcoin miners were the first to go. This is in West Texas, Sweet Abilene, Texas, where Crusoe was using flare gas, surplus energy from solar, wind and flare gas today is the largest CapEx spend in America.

And I'm told in the world right now in fast tracking a $500 billion AI data center vision from former flare gas to a Bitcoin miner. I'm really trying to highlight that, that Bitcoin miners were the early pioneers of building the necessary infrastructure wherever there was surplus or additional or wasted electricity and creating taxes for the local economy, creating jobs for the local economy. This particular site here created 2,500 construction jobs. And when that's all done, it will be 500 jobs and a big boom to the local community. Next, please. So Bitcoin mining. The goal is up 2.8% of the global hash rate.

We really believe the blue-sky opportunity in Paraguay is probably a gigawatt of electricity. That's the potential as -- when you use the word blue sky and not to go into the moon. That's way out there when you talk about blue sky, but Paraguay, no doubt, it just makes the perfect place for us to expand our footprint. Backed by the most consistent and stable executive leadership team in the sector, I'm very proud about HIVE. HIVE's CEO is the longest standing.

CFO is clearly the longest standing. The turmoil in the industry has been just phenomenal. And we've been able to do this and have operating income no matter how volatile Bitcoin has been. We have always been able to squeeze out operating income and have huge expansion, which we've done this year in -- with this growth, the most efficient Tier 1 Bitcoin mine data center operator, that's really important for you to recognize spanning nine timezones in three countries and five languages. We have the lowest industry SG&A per Bitcoin mine and best-in-class for uptime and efficiency.

So we know a lot about Bitcoin mining, and we also know in depth and breadth more than these other bitcoin miners that are going into the space of AI. We've been doing it for three years. I believe we're quite successful. It's much more complicated. It's much more detailed and substantially more expensive per megawatt per chip to go build out a Tier 3 HPC or high-performance computing data center for AI.

Cambridge University has said, it's 33:1 from a Bitcoin mining. So what Bitcoin mining does is it sources electricity, builds up the necessary infrastructure and then you go as further things are developed in an economy such as dark fiber optics to move the data along. It takes time for that in many emerging countries. But for Paraguay, I have to agree with Secretary of State, Rubio, of saying that Paraguay has the potential to become the data center capital of Latin America. And we hope to be a significant part of that HPC build-out as we are doing what we're doing now in the Bitcoin mining.

So we have this proven track record. We're now scaling in AI, and let me walk you through a few comments on that. Next, please. So November 10, HIVE reports October production, 289 BTC, achieves the 24 exahash and completes Paraguay expansion while fueling Canada's Tier 3 and AI data center growth. Next, please.

We've shown this growth by buying a former Bitcoin mining data center within the city of Toronto near the airport. So uptime is all the time. And going from Tier 1 to Tier 3 will be much faster than starting from scratch. This is a perfect ideal location, and we feel that this will be a two-tier payback. And clients, we've already built out 10,000 customers around the world, but the unique relationship we have with Bell Canada is transformative besides going from Tier 1 Bitcoin data center to Tier 3, which is much more expensive because you need much more air conditioning because you actually build a brain.

When you think of these H200s and Blackwells, these chips are more intensive consumption of electricity. So you need much more air conditioning and the HVAC, and you need more support. So those dynamics are really important for investors to realize besides headlines, it takes time to do it. We've done it, and we're now expanding rapidly. Next, please.

So when we look at our suite of assets around the world, one of them is that we bought an asset besides Toronto. We bought it in Northern Sweden, Boden near Facebook, and will convert a data center there like we're doing in Toronto. And that's -- that will go through -- it's already started that process, that conversion. But then we said we have New Brunswick on the border of Maine, and this is a beautiful campus of data centers. So we made a press release just recently, we bought more land, secured the position to build out our Tier 3, and it will be the biggest pure HPC data center complex in Canada at this time.

So we're very excited about this. It's a tremendous blue-sky opportunity. As we're going right now for this particular asset, first is to tie up the land. We have the electricity and now to get the engineering, complete drawings so we can start the construction in the first quarter of next year. Next, please.

So Buzz high performance overview, HPC. So data center locations right now today is downtown Montreal and Stockholm, Sweden. We have GPU clusters. We have over 5,000 GPUs and AI cloud services built -- purposes-built AI cloud with managed services in agentic refinery. That means that you can provide more services, especially when you have 600 sales force at Bell Canada that needs to get caught up quickly, and we're the strategic partner for that.

We've already shown what we can do. We're doing $100 million in revenue, and now we're going to scale it over the next 12 months, fivefold. Blue sky, well, just showed it to you, we're going to go through a transformation of Tier 1 to Tier 3 HPC data centers. And I think when we look around the world right now, the back of the envelope is 90 megawatts. And if you start looking at other assets we're working on securing, it's much higher.

And the long-term vision and opportunities for Paraguay are just immense. So we're very excited about this growth opportunity. But unlike other people, we've done it, and we know what it is to build data centers. We know what it is to scale Tier 1 data centers, and we know what it takes to build Tier 3, and we are scaling. Next, please.

This was a very important transaction for Buzz HPC in Canada because Bell Canada is the largest telecom in the country. This partnership is to help build sovereign AI infrastructure through the Bell AI Fabric initiative, advanced NVIDIA hardware and networking, deploying NVIDIA, Ampere, Hopper and Blackwell GPUs with Quantum-2 Infaband across Bell's fiber network and data centers. Canada is a huge opportunity because they're way behind, highly educated, and they've just been slow but under Prime Minister Carney. This has now been elevated to the very top with the AI minister. This is full tilt on the country doing everything to get caught up, just like America is getting caught up to surpass China, tremendous initiatives.

So this is very positive and constructive. And the initial deployment and national reach has been 5-megawatt GPU facility in Manitoba with plans for the national expansion, like we talked about Eastern Canada. And then data sovereignty, security and sustainability has become a very important issue for many of these countries. So we believe that HIVE has his head office in Texas reporting for Nasdaq and doing financial reporting under GAAP. But the intellectual capital and the Buzz are their Canadian companies that would qualify under the sovereignty of Canada and wouldn't be a challenge to the degree that people are worried about like in France over the Patriot Act.

So I really think some of this becomes really important to recognize how uniquely HIVE is positioned for this. Next, please. There's our growth. February was $13 million. May was $20 million.

And we're hoping that to get these others deployed as fast as possible to get us up to $40 million in the fourth quarter, which is going to have this run rate, which is going to be, for us, our year-end is March. And then going into '26 based on all the projections we have from hooking up our suite of NVIDIA chips, looking at those contracts, it looks like a very conservative run rate of $100 million annual run rate with extremely attractive margins for growth.

Next, please. So HIVE's top institutional investors are Citadel Advisors, Schwab Crypto Thematic ETF, Amplify Investments, Tidal Investments and Charles Schwab as a discount broker. I remember when -- a few years back, it was used to be Robinhood.

And -- but now it's showing up with Charles Schwab, and Charles Schwab bought TD Waterhouse. So it's just great because they are the biggest beast now. And it's great to see broad retail in addition to institutions that are here and met with the fund managers of most of these companies this week in a conference that Aydin Kilic, our CEO and I attended in Miami that was put on by Cantor Fitzgerald that was called crypto, infrastructure, AI and energy, big, big theme going forward. Next, please. So we celebrated four years on Nasdaq, and it was just a major home run.

We had 100 people out for it. We just -- the ministers, two ministers from Paraguay and New York City came out for it. I see the President of Bermuda is there, Tim and I see auditors. I see just a huge crowd, and we want to thank everyone for helping us celebrate that. And there's Adam -- sorry, there is Aydin hitting the bell and that's my daughter.

And you can see Craig Tavares, the President of Buzz, his daughter. So it was a home run for us all to be participating. But what's happened short term before I pass you on to other smarter executives is sort of AI adoption. There's been some really important research has come out from Morgan Stanley that's been circulated about framing the AI boom. And I'm a big believer that the AI boom is for real.

It's there. But sentiment drives a lot of these markets short term. And all you have to do is get these clusters of calling bubble. There are so many analysts who got a PhD, they say in bubbleology, but they do not really understand what is driving the secular market. And we're due for this correction, which we're getting, which only sets it up for a more attractive buy.

If we were valued at other data centers, seeing these other companies in the Bitcoin mining that do not have any high-performance computing facilities today, do not have any AI revenue generating for their NVIDIA chips have valuations that if you apply to HIVE, HIVE would be a $20 just to give you an idea of sort of the great opportunity that we have as we continue to scale.

And I think that it's important to just recognize what a lot of this noise that's taking place is short term, and it gives you just this opportunity that you see CoreWeave go through a correction. It's just part of the delays and disappointments on the infrastructure build-out that some of these people are experiencing, but it's not going away. This is an arms race, just like the push by NATO in Europe and Canada and the US of huge military spend, huge rebuilding of all the military and that's just not tanks, but it's tanks with AI, with GPU chips, and they need data centers.

And the digital economy is going to continue to need and it's going to continue to grow. We have these things they call phantom demand. We experienced with the Bitcoin mining when the Chinese shut down Bitcoin mining and everyone from China started making these incredible bids for energy all over the world. They were just phantom, trying to see if they could secure some energy and it comes up. But it's -- I just think that my history of these cycles is that we are still very early innings on the adoption.

And when you look at a pure data center and the multiples they trade at to revenue and the multiples they trade at to cash flow really makes some of the Bitcoin miners outstandingly attractively priced. And in particular, my biased position is with HIVE when I look at multiples to revenue as we are powering forward with our twin engine turbocharged strategy of both Bitcoin mining growth, not only this year, the biggest growth, we also plan for next year.

When I look at our peers, we have the biggest growth profile for Bitcoin next year. And we're still very bullish about it. But at the same time, we're pretty conservative of how we write down the value or depreciate our ASIC chips faster over two years because every four years, the supply halves.

And what you're seeing, which I remain very positive like Moore's Law is that you are witnessing the technology of energy efficiency that going back 10 years ago was like 1,000 joules per second consumption of energy for a chip -- ASIC chip. And now it fell a couple of years back to 30. And now they're coming in at 12 and people are working on 8 and 6, so by the time of this next halving, I think there'll be a two and three.

We're just with AI going to be able to build more energy-efficient data centers, more energy-efficient ASIC chips. And that's only going to mean less consumption for the global Bitcoin network that's decentralized, but it means that you're still going to be a very profitable business and being significant in laying the railway tracks for the growth in high-performance computing. Thank you.

And thank you, Frank, for that executive overview. Frank, of course, is the Co-Founder, Executive Chairman of HIVE. I'm going to get into a bit more of a deep dive on our accomplishments for this quarter and our strategy for 2026. Let's hop into it. So it was a record-breaking quarter for HIVE.

$87 million of revenue. Of that, $82 million from Bitcoin mining and over $5 million from our HPC business. So we're a $20 million ARR for our AI cloud business, which is phenomenal and a $42 million gross operating margin for the quarter. That translates to a $31.5 million adjusted EBITDA and a $23.8 million EBITDA with $38 million of depreciation this quarter that leads to a net loss of $15.8 million, which, of course, is on a noncash basis. But moreover, what I'm really proud of is that we realized an 18% ROIC this quarter on an annualized basis.

And finally, as of September 30, we had 210 Bitcoin in the treasury, although in addition to that, we have 1,992 Bitcoin pledged. So between our pledged and what we have in the treasury, that's about 2,200 Bitcoins. So it's been a phenomenal quarter, and I'm really proud of how our balance sheet deployment to scale the business was, in my opinion, a great success.

Let's go to the next slide. We are very serious and very dedicated about having best-in-class ROIC as the numbers this quarter once again affirmed, and it comes from disciplined capital allocation.

We always focus to get the best ROI, we buy ASICs. ASIC purchases are the biggest variable in realizing an ROI and then from their free cash flow investments in the Bitcoin mining business. We're experts in that. And I believe pound for pound, we're the best in the industry at that. We also lead with best-in-class uptime.

We run our ASICs to their entire economic lifestyle to maximize free cash flow and profit on our Bitcoin mining business from the investments we make. And by the way, we also lead the sector with corporate G&A, and we have the numbers to back it up. Next slide. The overview of the global business. Currently, we're approximately 10 Bitcoin a day with 25 exahash capacity installed.

And this was fueled by a transformative growth in Paraguay, where we grew our business from $100 million from fiscal 2025 to currently, we're at $400 million ARR. Additionally, we have 5,000 GPUs between Canada and Sweden operating AI cloud, and that is currently at $20 million ARR as per our quarterly financials. But the really exciting news is our target to grow to over $200 million ARR between both AI cloud and also hyperscaler colo. And finally, we talked about our capital deployment strategy, prioritizing ROICs. So a double-click on our BTC pledge.

So we have great downside protection as well as upside. So the -- almost 2,000 Bitcoin that we pledged, 1,234 Bitcoin were pledged at 87,000 -- and so what that does, it gives us upside with Bitcoin today at approximately 297,000. Even with Bitcoin at 97,000, there's over $12 million of upside in our currently pledged Bitcoin. And moreover, we additionally had pledged 758 Bitcoin at an average of about 115,000. And so that's $14 million of downside protection from the other component of our pledge.

So collectively, if you look at the downside protection of $14 million and the upside potential of the $12 million, even with Bitcoin having corrected where it is, the value of our pledge has been accretive to the tune of about $25 million, which I think is very phenomenal. And it just shows that we're very methodical and thoughtful. We've use our cash flow from operations. We used our HODL and earlier this year, some of the ATM to scale the business to get to that $400 million ARR, and then we have some very exciting things in the pipeline for the AI and HPC business with Buzz. Let's hop to the next slide.

So the dual engine strategy of growth. Cash flow from the Bitcoin mining business helps us to scale Buzz HPC, where we have three AI data center expansions going to Tier 3 plus, and we'll get into that. But right now, at glance, the Bitcoin mining business, 25 exahash, a blended fleet efficiency of 17.5 joules a Terahash. We're at $400 million ARR, as we mentioned, approximately 50% operating margin to electrical costs based on current mining economics and it's a footprint of 440 megawatts of green energy. Now the exciting news we recently announced, in addition to this, we have an additional 100 megawatts that ANDE and the government of Paraguay has approved for HIVE, which we're very exciting about.

That gives us the potential to get to a capacity of 35 exahash for the end of next year, and that would bring our fleet efficiency down to 15 joules a terahash if we were to upgrade with the latest generation machines now. We only buy ASICs when it satisfies our ROI targets. So we're focused on building the infrastructure. And the other really great piece of news is that this is at the Yguazú site, which we purchased from Bitfarms and originally was designed as a 300-megawatt site. So what we're really excited to announce is that the incremental cost to bring that 100 megawatts on is only $250,000 a megawatt.

Recall that the all-in purchase price for the site and even to build our Valenzuela site is $400,000 a megawatt all in. That's land substation buildings. Well, the good news is that all the civil work is already done for the additional 100 megawatts at Yguazú. So all we do is we drop in the transformers for the substation and then the hydro mining infrastructure, $250,000 a megawatt, very incremental and attractive cost to bring online the capacity. And with that capacity, we have optionality.

We can either install next-generation ASICs. Of course, we always shop for ASICs at about a 1-year ROI or we can look at other strategies to monetize that 100 megawatts of green energy. And we have ordered the long lead time items, namely the substation, which are expected to arrive in Q1 of 2026. So standby for updates on that. And by the way, if we were going to do 35 exahash, the current mining economics, that will be about a $550 million ARR for end of Q4 2026.

Moreover, let's talk about Buzz. We have a very exciting year ahead for Buzz. We've recently announced that the additional 6,000 Blackwell GPUs, B200s for H1 and B300s for H2 will come online in 3 data centers, bringing our current 5000 GPU cloud to a total of 11,000. We're going to double the size of our GPU AI cloud by the end of 2026. And moreover, with the conversion of New Brunswick, we bought additional land.

So that campus is now over 32 acres -- sorry, over 30 acres. And it's currently an operating tier 1 70-megawatt data center. We'll convert that to Tier 3, and that will provide us some hyperscaler colo. You add that all up. It gets us to a target of $225 million for the end of 2026 for Buzz.

And collectively, our target for the end of 2026 can be $750 million for both the dual engine strategies, of course, we prioritize ROIC. And so on the scaling of the Bitcoin mining business, we will scale that if the ASIC investments allow for ROIC and they're attractive. And of course, on Buzz HPC, we will be bringing online these GPUs in our partnership with Dell for the first phase of our Bell partnership. Let's go to the next slide. So at a glance, the global footprint for Buzz now, this is just HPC.

We currently have approximately 5,000 Hopper, which means a H100s and H200 series GPUs, about 4,200 A-Series GPUs. And those are in Sweden and Quebec. And so the additional 6,000 Blackwell GPUs that we're going to bring online are coming on in three tranches. One is through the partnership with Bell in Manitoba. One is through the Toronto data center, which we recently closed on the purchase of and announced the conversion of Tier 3 liquid cooled.

And then, of course, our facility in Boden, Sweden, which will also be Tier 3 liquid cooled. So Toronto and Sweden are owned -- HIVE and Buzz owned and operated data centers, we own the land and buildings, and we'll be converting those to liquid cooled. Those will come online in Q4 of next year and each facilitate 2,000 NVIDIA Blackwell Series GPUs. And so this shows you the math and the footprint of how we scale from 5,000 GPUs to 11,000 GPUs in our cloud business.

And then, of course, with New Brunswick, the conversion of that to a Tier 3 colo with expected IT to deliver possibly 50 to 55 megawatts market rates in that sector would be about $85 million of additional ARR.

And so this gives you a high-level glance of how we incrementally scale our $20 million ARR to date to over $200 million target for the end of next year. Next slide, please. So beautiful photo of one of our H200 clusters operating. Now to help clarify, on the GPU business because we're doing both GPU, AI cloud as well as -- to target hyperscaler colo in New Brunswick. So if we focus on the GPU cloud business, the growth is $20 million going to $140 million, and that reflects the growth from 5,000 and to 11,000 GPUs by bringing on an additional 6,000 Blackwell GPUs in those 3 facilities.

And currently, we have a good mix of long-term contracts for 3 to 12 months, where we're monetizing our $20 million ARR as well as on-demand, we have over 10,000 unique users through our partner networks. And I think the really exciting thing is to highlight that we're focusing on liquid cooled Tier 3 data centers for the future as these NVIDIA reps get more and more dense. We've heard that the Blackwell GPU clusters for B300 could be as dense as 180 kilowatts per rack, and rumors are that ribbon could be as much as 200-plus kilowatts per rack. So it's building for the future. And of course, we're really excited about that partnership with Bell.

Let's hop to the next slide. So this was released this quarter, a very exciting initiative where Bell is Canada's largest telecom provider. They have partnered with Buzz HPC, and the team has done a phenomenal job to bring this deal to fruition. And we've just executed all the operating agreements. And so we expect that the first cluster of B200s, which you'll be operating in Dell servers to arrive at the end of this year and go live in January of 2026 and bringing online that initial incremental ARR, and this will be part of the sovereign data strategy, Canadian owned, meeting the residency requirements. Bell is a -- sorry, Buzz is Canadian company with a great pipeline of data centers in Canada through Bell and the Toronto data center.

So this is all very exciting. Craig Tavares has done a phenomenal job advancing that initiative, along with Mario Sergi and our HPC team. Next slide. So by the numbers, again, on a time line basis, this shows the current $20 million ARR. And as we bring those incremental clusters of B200s into the Bell partnership, the 1,000 for Q1, another 1,000 by Q3, each cluster of 1,000 GPUs on long-term rental basis.

So we're forecasting this, if we just go to your long-term contracts and you go up market rates on semi analysis to see where H200s and B200s trade-up. So this is based on dollar per GPU hour. Long-term 2-year contracts is about $20 million per cluster of 1,000 GPUs. So we're at $20 million today. If we bring on 1,000 GPUs in Q1, it gets us to $40 million ARR.

Another 1,000 GPUs in Q2, Q3 gets us to $60 million ARR. Now the big ramp is Q4 next year because that's when the conversion of Toronto and Boden data centers will be complete. Each of those will bring on 2,000 more Blackwell GPUs. By Q4, we target it will be B300s. And of course, a cluster of 4,000 GPUs would add about $80 million ARR.

And so that's how you get to the $140 million ARR growth on the AI cloud business with GPUs. And then in addition to that, separately would be the hyperscaler colo with a conversion of New Brunswick, currently a 70-megawatt Tier 1 into a Tier 3 plus data center. That incremental revenue would be about $85 million based on $130 kilowatt a month. And so this is the growth strategy for Buzz for 2026 with both AI cloud and hyperscaler colo. We have the land, we have the power, we have the expertise in running the GPU clusters and we've been doing it for the last two years.

Next slide. We also are vertically integrating the tech stack. So HIVE and Buzz, we have expertise in building and operating data centers. We built expertise building and operating the GPU clusters. But especially with the partnership with Bell and sovereign initiatives within Canada, where we want to sell managed services to AI enterprises, it's about vertically integrating the stack and having a platform that enterprises can use or sovereign clients.

And so this means custom endpoints allowing for agentic AI, inference training, tuning. And so this whole platform, we're very pleased to announce. And the next slide is Buzz HPC cloud. And so this is just launched, and this has been pressure tested. This is scalable.

This allows us to sell sovereign compute for our clients in Canada, and we think that this is a very exciting development that really opens up the sovereign market in Canada, which, of course, Canada is the home to the Vector Institute, the home of Geoffrey Hinton. Our buzz team led by Craig Tavares is doing an amazing job working with the different strategic partners in Canada with Bell, with Dell, with the different research institutes, and we have some exciting news in the pipeline. So stay tuned for that. But moreover, what this does is with our platform selling AI enterprise solutions, it's a much higher margin business. Let's go to the next slide.

And this is the money shot. The Buzz cloud platform has been ranked and awarded Bronze by SemiAnalysis. This is the benchmark in the industry that looks at all the neo clouds. And you will notice, and I'm very proud to see our team has worked so hard. The Buzz team has done such a phenomenal job on our first go around with SemiAnalysis ClusterMAX, we received bronze.

You will notice the other industry peers. And when I say industry peers, I'm referring to former Bitcoin miners that are now pursuing HPC AI cloud. The other companies at our peer group are all in the underperforming category. So -- and by the way, even below that, you'll see some names that have raised a lot of capital in the unavailable. So they weren't even able to really complete the benchmark test.

And then the next category is underperforming where they completed, but obviously not up to the standard. And then beyond that, which is where Buzz is, among some other very reputable clouds is Buzz HPC. And our team believes that we're very close to being able to get a silver qualification next year, which would put us right up there with AWS. So super exciting. And we're very proud of this accomplishment. And again, Craig and the team have done an absolutely phenomenal job on this.

Let's go to the next slide. So with the blue-sky potential integrating the cloud platform to allow us to sell managed services for AI enterprise clients, we're looking at a much higher margin business. And so instead of renting GPUs for bare metal at long-term rates, which is what we presented on the previous slide, and that's the base case. The bull case or the blue-sky case here, if all the GPUs were monetized using our cloud platform for AI enterprise clients in Canada under the Buzz sovereign strategy, it would be a much higher margin.

And by the numbers, you would be looking at approximately double the dollar per GPU hour unit rate. And on the previous slide, we were basing it on about $2.30 per GPU hour and these figures here on $4.50 a GPU hour, you get about $40 million of ARR per cluster of 1,000 GPUs. So what that does is if you bring on that first cluster and they're all being monetized through the Buzz cloud platform, it could bring an additional $40 million. That would mean the current $20 million of ARR goes to $60 million ARR and subsequently increments to almost $0.25 billion ARR just from the AI cloud business. Again, this is a blue sky, not necessarily all the GPUs will be sold through the cloud platform.

For our sovereign clients, we still have existing relationships where we do sell AI compute globally. And so we believe the margin will fall somewhere between these targets and the base case targets. But if you add on the capacity of hyperscaler colo by converting all of New Brunswick, then that brings you to the north of $300 million ARR target. So if you look at this blue-sky and the base case, I do think that getting into the $0.25 billion ARR target for end of next year is realizable potential, and we're excited to take it to the next level. And we believe that if you look at where the multiples where some of the peers are trading, it easily puts our AI cloud business at a multibillion-dollar valuation if we were doing $250 million ARR.

And by the way, this is much higher margin. When you're selling through cloud, the margins are about 90%. And in the previous -- the base case where we would do long-term GPU contracts, at least for Blackwells about 80% margin after data center and electrical costs. So we're very excited to present this and 2026 will be a phenomenal year. The other exciting piece is that to bring these GPUs online, we have vendor financing.

And so we actually are not required to raise capital to bring on this cluster of GPUs because 6,000 Blackwells will be about $360 million. And we're bringing them on. We're doing about 1,000 GPUs at a time. And when we do this, we rely on vendor financing, lease-to-own which allows us to, therefore, be very mindful about our ROIC. And really, the CapEx is just to finish the conversion of our Toronto data center and our Boden data center.

And those two facilitate the growth of 6,000 GPUs. Moreover, the colo partnership with Bell, it's colo, and we're getting a very attractive rate, doesn't require any significant CapEx. So to fund the growth to bring online to 6,000 GPs does not require any significant CapEx beyond what I believe we can fund from our current balance sheet. And that's what's really exciting. The conversion of New Brunswick to HPC would be a more capital-intensive project, but stay tuned for updates on that.

Next slide. So on the Bitcoin mining side of the business, very proud to announce we're mining approximately 10 Bitcoin per day, even with difficulty at 152 trillion, currently operating a footprint of 440 megawatts of green energy. We have a proven track record of scaling now as we've demonstrated industry how quickly we've brought on this capacity. Again, we've maintained not only best-in-class uptime and efficiency in the sector, but lowest G&A per Bitcoin mine, which you would expect because we've done this with a very lean team as we've quadrupled our revenue this year. We've done so by adding a small number of additional key hires.

Of course, our efforts in Paraguay are led by Gabriel Lamas and Carlos Torres, who have both done an absolutely phenomenal job. We're extremely proud of our Paraguay team. And I'm going to be flying down there in a couple of days for my quarterly site visit. I always like to visit every data center, walk the fields and walk the hot aisles, walk the cold aisles, just like to feel the energy. And of course, we do this all with disciplined capital allocation, which we prioritize ROIC, and we're going to double-click on that later in this presentation.

Next slide. So Thanksgiving came early. We did target that we would hit the 25 exahash and completed 300 megawatts by US Thanksgiving. And we hit it a couple of days ago, which was really exciting. We put out a press release around November 11.

And so Thanksgiving came early. So that's exciting. And it's 10 Bitcoin mined per day approximately and 25 exahash installed ahead of schedule. I think we've really demonstrated to the market that we have expertise. And I think for the longest time when the market was watching high, why aren't they scaling?

Because we wanted to scale when it was accretive. And by the way, finding green energy, obviously, is more challenging than if you just look for any type of energy. So very happy that the team delivered. Everyone has done a phenomenal job. Shout out to Luke Rossy, our COO; and Bill Gray, our CTO as well.

So the whole team, Darcy, Gabe, everybody has just done a phenomenal job. Next slide, please. So this is just a scenario analysis that shows you we've seen Bitcoin correct to just under 100,000. But of course, with Bitcoin at different incremental prices, you could see that our current annualized mining margin is about $200 million with Bitcoin 100,000, but that could easily get to $300 million at Bitcoin at 125,000 and at 150,000, almost $400 million of annualized mining margin after electrical cost. This is in not revenue.

This is mining margin after electrical cost. So $200 million to $300 million to $400 million is as measured against Bitcoin price, really at 100,000, 125,000 or 150,000. So a lot of upside in the Bitcoin mining business, of course. And so just a quick note on that. When we look at some of the hyperscaler colo deals that have been done, Cipher announced a deal with AWS $102 a kilowatt.

If you actually dollar denominate that per kilowatt hour, it works out to about $0.14 a kilowatt hour. So with Bitcoin at about $43 hash price, Bitcoin was mostly at $102,000 this week. That's about $0.12 a kilowatt hour with our S21+ Hydros. And so you're actually not that far off on a dollar per kilowatt hour basis compared to hyperscaler colo. Of course, what institutions like is the long-term stability, a fixed price for 12 or 15 years, you can underwrite, put a multiple on, and we're very much aware of that.

I think the Morgan Stanley report on HPC did a good job spelling out that strategy. But what you have in the coin mining is upside because when hash price was $55, the mining business was actually doing $0.15 a kilowatt hour, so even more top line than the Cipher -- hyperscaler colo deal. But what's interesting is that, of course, our bottom line, our operating cost is about a $0.05. So you've got a much higher margin business. And that's why we're able to target 1 to 1.5-year ROI in the Bitcoin mining business, whereas your ROI when you're doing a hyperscaler colo, if you're spending $8 million to $10 million per megawatt to build a Tier 3 data center, you're looking at roughly 8-year ROI.

And so -- but we do both. We're targeting the HPC business with the AI cloud. That's about a 2.5-year ROI on the GPUs. And we're very much aware that institutions like the long stable cash flow of hyperscaler colo, and that's why we're very pleased to bring to market, the New Brunswick opportunity and put that in the 2026 pipeline. Let's go to the next slide.

So just a high level for all the research analysts out there, where the hash rate is and how much power is online. And of course, the Phase 3 in Yguazú, the additional 100 megawatts actually gets us to a global capacity of 540 megawatts. Of course, 440 megawatts today is operating hydro power. And might I add, again, I just want to reinforce, we are not committed or we do not have an immediate capital need to bring on 10 exahash of ASICs. We will do so if economics and ROI satisfies our principles of realizing a 1 to 1.5-year ROI after cost for the ASICs.

And there are other ways to monetize that extra 100 megawatts of capacity as well, by the way. So stay tuned for that. We've got a lot of exciting things for 2026. We're putting all the fundamental pillars in place for a year of growth and to manage both upside and downside. And that's how we've lasted for, coming on 8 years now, being the first public crypto miner with the longest standing C-suite might I add between Frank, Darcy and myself.

But let's hop to the next slide. So -- by the numbers for those that would like a snapshot of what 35 exahash would look like on an ARR basis. Well, as we mentioned, currently, we're at $400 million ARR, doing about 50% margin after electrical cost, $200 million of margin after electrical cost on the current Bitcoin mining business for 25 exahash about 17.5 joules per terahash efficiency. We were to scale that to 35 exahash with latest generation ASICs throughout 2026. And by the way, we do believe that ASIC prices for the new generation here will come down and be more attractive.

And so we would evaluate those during the spring to summer of 2026 as the 100 megawatts would be completed around August to September 2026. So we're in no rush. But with that 35 exahash, current mining economics, which is modeled on $42 hash price brings you to $550 million ARR. But because you've got more efficient ASICs online, you're about a 60% margin. So that's $320 million of cash flow based on current mining economics.

So just a snapshot for the analysts and all the enthusiast investors out there that like to build their Excel models. Next slide, please. So we talk a lot about the ROI principle. And just such an avid math and physics student in school, sometimes you come across, you're deep in the chapter, in your physics textbook and there's just this one diagram that just puts the concept visually and then it crystallizes, meaning you have mastery of it and of course, all the equations that backstop. But this is especially for institutional investors that are trying to wrap their head around and they think that it's sort of this elusive or arcane business, it's actually not.

Bitcoin mining is the intersect of computer science and electrical engineering is really what it is. We're building high-voltage, high energy infrastructure. And the revenue, the top line is really -- you can almost think of it as combinatorial mathematics. You've got a number of hashes per block is difficulty times 2 to the power of 32. Now Bitcoin price fluctuates, difficulty fluctuates, sometimes difficulty goes down.

We just had difficulty dropped by almost 5%. We're 150, 160, now we're at 152. So what does that mean? Well, your top line here, as you see is like a squiggly line. It goes up and down, but with time, and we're talking a four-year horizon.

It does trend down as more hash price comes online. But during the life cycle of an ASIC, we always aspire to get one year ROI after electrical costs. And you could see that as in the blue area of the chart. Now once you've realized an ROI on your ASIC, then you're free cash flowing. And so that's why for the balance of that to four years, you're free cash flowing.

And this is how we mine Bitcoin, and this is how you make money in this business. You have to think this way and you also have to model this way. And of course, you have to invest and operate this way. Now the three bullet points here is, what are the two levers on this graph? Well, there's one vertical axis and that's your dollar per terahash ASIC acquisition price.

The more you pay for your ASICs on a dollar per terahash basis -- and by the way, this is on a snapshot assuming the certain efficiency of joules per terahash, right? So given a model of ASIC, so a new ASIC comes out, you go great. This is what its ROI profile is going to look like. Depending on what you pay for that ASIC, the more you pay, the longer it's going to take you to hit that ROI. And as there's -- and we know that there's diminishing returns.

This is modeled. It's all part of the Bitcoin white paper as more hash rate comes online, it makes the network more secure. Bitcoin is the world's decentralized energy backed currency. So it's not a bad thing that you have to upgrade, and that more energy comes online. It makes the network more secure.

As Bitcoin is a market capital over $2 trillion, you have over 30 gigawatts of compute backing that. And it's the increasing efficiency of the ASICs that helps dollar-denominated to dollar per kilowatt hours, okay? So on the horizon -- on the time horizon, you see the plus/minus dollar per kilowatt hour. You see the lower your dollar per kilowatt hour operating cost, the longer you can run that same ASIC for. So you see how we've indicated or illustrated that additional tail end of free cash flow, well, the lower your power price, the longer you're going to be able to realize free cash flow.

And of course, the cheaper your dollar per terahash purchase price, the cheaper that number is. The shorter your ROI duration is, and of course, that means you have all other things being equal, more time to free cash flow. And this is so important, and it's been moreover, as I said earlier in the presentation, we run our ASICs for their entire economic life cycle. And what that might mean in the third and fourth year, even the second year, on a margin basis, if you're looking at your MD&A, say, what was your gross mining margin this quarter? Well, if you're running older ASICs that are in pure free cash flow scenario, the margin apparently may not seem that great, but they're free cash flow and they paid themselves off.

And so you want to run those ASICs until the very end of the life cycle before you upgrade them. And this is an important principle. I thought this visual would very much help. So there you go, Bitcoin mining summarized. Let's go to the next slide.

By the numbers, this is what it translates to. We lead the sector in cash return on invested capital. Quarter in, quarter out, here it is, we've realized 18% annualized ROIC this quarter, 4.5% for the quarter. So I love explaining how the business works. We love to share expertise.

We love to be beacons of truth in the industry where there's a lot of hubris. And again, HIVE has been standing strong as the longest crypto miner in the sector for the publicly traded peers, 2 Bitcoin halvings and an Ethereum merge, no one else has navigated all 3 of those events. In addition to that, we built our own ASIC miner with Intel. So we understand the industry at its very depths and also at a very macro level, having strategic oversight with Frank as a money manager, our Executive Chairman and myself as an electrical engineer, we're both numbers' guys, and we like to look at the prism of Bitcoin mining and data centers. So many different angles to understand what does it look like when you evaluate it.

And ultimately, our bottom line, though, is how do we get the best ROIC. Here it is. Next slide. We also have the lowest G&A in the industry. We have a high-performance work culture, our executive team.

We were in Chicago for a Jim Collins seminar, really, how do we live and breathe being a good to great business. And so again, high-performance culture. We are in nine time zones, five languages. And again, we talked about a high-performance culture. We are a high-performance culture, bringing 300 megawatts online in 6 months, almost an exahash per week.

I think we might have broken an industry record. And so you can clearly see here under 10% of our total revenue is reflected as G&A and -- I mean, a lot of our peers are really in the 20% to 30% range is really what it tells you. And so we're able to scale. We have a dual-engine strategy. This is the G&A for the whole corporation.

So we're talking all our operating subsidiaries, our global business, HPC and Bitcoin mining, so incredibly privileging.

We work long hours though. So if it's hard to get a call with us, it's -- we'll make time for you, but priorities. Next slide. So the other amazing thing is the value proposition. So our relative valuation signals a very strong opportunity.

On a relative basis, where you look at our peers on EV to exahash basis, we should be at about a $4 billion enterprise value. Now of course, people would say, Oh, yes, but a lot of your peers here have an AR HPC strategy. Yes, as do we. And I think we have one of the best AI and HPC strategies with a lot of upside to be realized in 2026 as we bring online those 6,000 Blackwells and pursue hyperscaler colo through New Brunswick as well.

So I think that we also have best uptime in the sector, lowest G&A per Bitcoin mine, best ROIC and right now, the best value. So I think for the smart money, it's an opportune time. We've seen HIVE really rally to almost USD1.7 billion market cap. There's been a bit of a market-wide correction recently. So I think it's an opportune time as the market consolidates.

Next slide. Now a little bit more about what we do. Yes, we are very high performance, and Frank and I were boots on the ground. We go to all the conferences, but we also invest in the communities. So we had a program where we wanted to refresh 18 schools in the rural regions by our data centers.

And so Frank and I were actually visiting in Valenzuela, this is a primary school, elementary school and the kids were so happy. And so the pictures on the left are before, and you can see the beautiful hand painted map of Paraguay. But you see the walls are sort of weathered and chipped. And so what we did was we refreshed the schools. You see brand-new paint and air conditioners.

You see all the air conditioners after bolted on the walls for the classrooms and then we installed the playground as well for the kid. We're doing upgrades to 18 schools throughout the community. So just about how we like to invest in communities. As you know, we sponsor the hockey team in Boden, but we do what the community wants and needs. And of course, in this scenario in rural Paraguay, it's the schools.

Next slide. Also, embracing tradition. We were invited to the presidential palace for YPO event. This is Santiago Peña, who is an incredibly gracious host. And so we're wearing a traditional -- the scarfs, sort of traditional Paraguayan dress, and it was absolutely a phenomenal event.

We had our whole executive team down there. Of course, Gabriel Lamas and Frank, are pictured here with Peña, Luke Rossy, our COO; and myself and Jaime Perez, our Latin American correspondent. So investing in the communities at the schools in the neighborhoods, but also building strong ties with the leaders of the country. Next slide, please. Now Paraguay in turn is also building ties globally, and Peña has, I think done a phenomenal job having a great relationship with Trump, all smiles here with the big thumbs up.

And moreover, Frank and I had a strategy session with Peña in September during that YPO Summit. And of course, shortly after we were granted an additional 100 megawatts, which we'd announced to the market. So it's about having relationships strategically and being aligned with the government and utility companies and just doing good business. And so we're very bullish on the future of Paraguay, not only for Bitcoin mining, but data centers broadly. Let's go to the next slide.

Directionally, Latin America is emerging with HPC on the horizon, was in the headlines in October, OpenAI and Argentinian energy company are looking at a Stargate for Latin America. So of course, Argentina is adjacent to Paraguay, Argentina buys power from the Itaipu Dam, which is the largest hydro dam by production in the world. And so we believe that there will be a bright potential future for HPC in Latin America. Let's go to the next slide, which is Darcy Daubaras, the longest-standing CFO in the Bitcoin mining industry, and he's going to give you the overview of the financial results. And not only in the Bitcoin mining industry, of course, now we are a HPC business with a thriving AI cloud growth strategy as well as hyperscaler colo for 2026.

Darcy, over to you.

Thank you. Good morning, everyone. And thank you for joining us today. And I will be walking through the Q2 results for the three and six-month period ended September 30, 2025. We are providing certain non-GAAP measures in our presentation today.

The company believes that these measures, while not a substitute for measures of performance prepared in accordance with U.S. GAAP, provide investors an improved ability to evaluate the underlying performance of HIVE. These measures do not have any standardized meaning prescribed under US GAAP and therefore, may not be comparable to other issuers. Further details are found in the management discussion and analysis for the three and six-month periods ended September 30, 2025.

Moving on to the first slide. HIVE ended September 30, 2025 quarter with 236.8 million common shares, 2.7 million options, 11.4 million RSUs and 5.2 million warrants outstanding. And on the next slide, let's start with the key highlights for the quarter. For Q2, we generated $87.3 million in revenue, driven by digital currency mining and high-performance computing services and delivered $31.5 million in adjusted EBITDA. Production for the quarter was 719 Bitcoin equivalent, which is up from 406 in the prior period, supported by stable operations, strong uptime across our sites and the execution of our Paraguayan expansion.

These numbers reflect disciplined cost management, a focus on efficiency and the benefit of our diverse global footprint. Let's now on the next slide, take a look at how this operational performance translates into our balance sheet strength. We do take great pride in maintaining a healthy balance sheet. As of September 30, we held $22.6 million in cash, $24.4 million in digital securities and $17 million in receivables and prepaids. That totals $136.7 million in digital assets against $55.5 million in current liabilities.

We also maintained $25.7 million in strategic investments. This strong liquidity has allowed us to manage market cycles, invest in expansion opportunities, specifically our HPC and Paraguayan opportunities and avoiding over-leveraging the company. With that context, let's look at how our earning metrics have evolved starting on the next slide. Shifting our focus to our gross operating margin on a year-over-year basis, comparing the results of this quarter to Q2 last year, our gross operating margin, which is calculated as total revenues minus direct operating and maintenance costs and high-performance computing service fees increased to $42.4 million in the most recent quarter compared to $400,000 in Q2 of last year. In this most recently completed quarter, we are reporting a basic loss of $0.07 per share compared to a net income of 0, basically flat per share reported for Q2 last year.

Taking a look at our revenue increases year-over-year on the next slide, we generated total revenue in the second quarter of fiscal 2026 of $87.3 million versus $22.6 million in the previous year's second quarter. The revenues compared to the same quarter in fiscal 2025 can primarily be attributed to the expanded hash rate that we are experiencing from the Paraguay expansion. As mentioned previously, our gross mining margin, which equates to our revenues minus direct operating and maintenance costs and high performance computing service fees increased to $42.4 million or 49% margin in the most recent quarter compared to $400,000 or only 2% margin in the prior year comparable quarter. As we've said, that's a direct result of optimizing our mining fleet, the mass of Paraguayan expansion that we've experienced since the beginning of calendar 2025 and improving our overall operational efficiency. Now if we zoom into just the last two quarters, you'll see impressive improvements on the next slide.

Comparing our current fiscal Q2 quarter to the previous Q1 quarter, we generated revenue in this current quarter of fiscal 2026 of $87.3 million versus $45.6 million in the previous quarter. The increase in revenues versus the prior quarter was impacted by increased exahash capacity with the Paraguay expansion, an increase in the price of Bitcoin, resulting in higher revenue from digital currency mining and our continued focus on our high-performance computing revenues.

Our gross operating margin increased to $42.4 million or 49% operating margin in the most recent quarter compared to $15.8 million or 35% margin in the prior quarter's comparative. The increase in gross operating margin versus the prior quarter was greatly due to the comparative BTC pricing and resulting revenues and the continued improvement in our fleet efficiency. And on the next slide, I'd like to remind our stakeholders that our net income is comprised of our operational earnings or cash flow plus our investment earnings, which includes realized and unrealized earnings, which often includes noncash charges.

Our adjusted EBITDA in this quarter ended September 30, 2025, was $31.5 million versus adjusted EBITDA of $12 million in the September 30, 2024 period. I will highlight that adjusted EBITDA is a non-GAAP figure. For this completed quarter, we experienced loss of $15.8 million compared to a net income of 0 in the previous year comparative. The net loss experienced this quarter was driven by non-cash losses experienced on our strategic investments and changes in the fair value of our derivatives, which is linked to the Bitcoin used as deposits on equipment purchases. On the next slide, the quarter-over-quarter view tells a similar story.

Our adjusted EBITDA in the second quarter of fiscal 2026 was a profit of $31.5 million versus adjusted EBITDA of $44.6 million in the previous 2026 Q1 quarter. In the second quarter of fiscal 2026, we experienced net loss of $15.8 million compared to a net income of $35.5 million in the previous Q1 quarter. The Q2 fiscal 2026 was a solid quarter for HIVE. We delivered strong revenue, expanded margins and maintained a robust balance sheet. Our operational discipline, fleet expansion and cost control measures continue to position us well to compete in a challenging environment and capture opportunities for growth.

As always, I want to thank our loyal stakeholders and encourage them to continue to follow our expansion efforts in both Bitcoin mining and high-performance computing operations. There's exciting things to come, so stay tuned.

(Event Instructions) Darren Aftahi, ROTH.

Congrats on the progress. Two if I may. Just can you talk about what the assumed spend on CapEx per megawatt is to either retrofit or greenfield your data centers to Tier 3? And then on the AI cloud strategy, I think, Aydin, you talked a little bit about financing and then leasing the GPUs. I guess, do you guys plan to buy these at the end of that cycle?

And then I guess, what's the assumption on useful life you're assuming on GPUs?

Yes, you bet. So the site in Boden is $25 million to build out to convert and Toronto is $40 million. They -- we've had those facilities effectively quoted and we're ready to commence the conversion of those. So the price per megawatt is different because each facility has just different existing infrastructure. Boden has already designed as GPU facility, and that's the one that you've been to actually when we did the site tour last year.

And Toronto is the facility that will -- that we recently announced a purchase of. So again, that's $25 million and $40 million, respectively. And then that provides -- and then, of course, Bell is colo. So there's no significant CapEx. So that collectively gets us to the footprint for 6,000 GPUs.

And then -- sorry, what was your second question?

Really just on the cloud.

The buyout. It's really -- it's like really a lease-to-own. So the buyout is de minimis. So we will effectively have at the end of the term for a very nominal amount ownership of the GPUs.

And what's the useful life you're assuming on this? I know you might be one of the fewer entities that have...

I think broadly, what we've seen is that after three years, the -- easily or conservatively, GPUs are worth half of what you bought them for. And then I think that you could see a useful life conservatively is also 5 years. And I back that up with a couple of data points. As you know, we've -- as you've been following the story for a long time, we bought 38,000 Ampere GPUs, A40s, A6000s, A5000s, A4000s. And we made that order.

We announced in July of 2021. So a lot of those GPUs to the tune of over 4,000 are in our AI cloud still running. We have 4,300 A-Series cards, mostly A40s and A5000s. And here we are four years later, and they're still running. So that's why I put the useful life at five years.

I believe it could be longer. I believe it could be five, possibly six, maybe even seven. And then on the resale, we sold, and this is sort of in our past disclosures and M&A, we've sold the balance of that fleet of Ampere Series GPUs, about 34,000 of them at approximately 90% of their original face value. And those -- the sale of those GPUs was last year over kind of the course of the year. And so that puts us about three years into the economic life cycle, and we were selling them for 90% of what we bought them for.

So again, we're very strategic about ROIC, and we realized that there was a great opportunity there to get such a high value for them. And we took those proceeds and then we expanded instead and got more Hopper H100 and H200 GPUs. And that get us to where we are today. But moreover, to answer your question, we were able to sell at 90% of face value after three years. Of course, that was driven by global demand.

And so when I told you 50%, I'm trying to give you very conservative, realizable figures. So to wrap it up 50% after three years, and I think a useful economic life cycle of 5-plus years. And look, that three years, it could be higher, maybe the 2Ps are worth 70% more. But I mean, in our case, we've seen 90%, but let's just say, 50% to be conservative after three years.

Mike Grondahl, Northland.

My question, on those 6,000 GPUs that you're putting out the next couple of quarters, how many of those are contracted today? Meaning what kind of visibility do you have on those? And then could you talk a little bit about the average term, at one point, I think I heard three months to 12 months and then another two years and just kind of the demand you're seeing?

Yes, Mike. So the -- you're correct in that the existing GPUs that we have online are in the three to 12-month range. And the -- I actually just want to refer you to -- sorry, I'm in Paraguay right now, someone's knocking on the door. So we also put out a press release this morning concurrent with our Q2 earnings that actually announced the order of the first cluster of 500 for those Blackwell B200s. And so that's the first cluster that we expect to be delivered before Christmas this year.

And so the 6,000 GPUs, there's a chart in my section where we actually saw the first 1,000 of the 6,000 coming online by Q1, 2026 calendar Q1. The second cluster of 1,000 GPUs comes online Q3 2026. And then finally, the additional 4,000 Blackwells would be Q4. And the reason why Q4 is, again, it's the retrofit of the Boden and Toronto facilities. And those retrofits are underway.

So of course, you wouldn't be bringing GPUs online until that conversion was complete. And so you've got 1,000 in Q1, another 1,000 in Q3, another 4,000 in Q4. So to answer your question in short, those GPUs are not live yet. We're bringing them online in that cadence. And so we will provide more color on the contracted GPUs when they go live.

So I hope that answers your question. And why two years is because we wanted to provide sort of a conservative base case if we underwrote the revenue of the GPUs on the longest-term contract, which conversely provides the lowest dollar per GPU hour. And so we're aware directionally that the Street and institutions are more in favor of the longer the cash flow, even if it's a lower quantum on GPU per hour, people like the stability. And so we've modeled that. But then moreover, with the cloud, what's exciting is when you're selling tokens or allowing people to utilize AI enterprise services with API endpoints, now you're selling a much higher margin.

And so that's why we kind of had two similar slides showing the growth in revenue. One is on long-term two-year contracts and the other is higher margin selling AI enterprise services. So I believe my comment -- I hope my comment on those slides made it clear that we would expect the realized ARR to be sort of in the midpoint somewhere between those two projections I provided. Does that help?

Bill Papanastasiou, Stifel.

Congrats on all the progress made scaling the company's Bitcoin mining and AI, HPC initiatives. First one on Bitcoin mining. Are you able to share your thoughts on where you think hash rate and economics could trend following the industry's push to AI, HPC and just general commentary on the strategy going ahead?

Yes, for sure. Thanks, Bill. So we currently are at a difficulty of 152 trillion difficulty downward corrected recently after 156 trillion all-time lined -- 156 trillion being an all-time high. Now what I would point out is the last correction of difficulty going from 156 trillion to 152 trillion, we actually were at a -- before the adjustment, we were sort of at a hash price in the 42 -- now I'm going to explain this sequentially because there's two variables, Bitcoin price and difficulty. So right now, I'm referring to when difficulty adjusted.

And of course, Bitcoin price was in the $102,000 range at that time. So a Bitcoin price at the $102,000 range at that time, we saw hash price sort of in the low $40 per petahash per day range, and that downward adjustment difficulty brought us up a bit to the -- kind of going from $41 to $42, up to $43 to $44. Obviously, as difficulty drops, hash price increases. So we sort of saw that. But then recently in the past sort of 5 days here, we've seen Bitcoin drop from $102,000 to $99, and now we're sitting at $93.8.

So that's put hash price back down to $40 petahash a day. So I think consistently, what we've seen since the halving is that the hash price floor on a seven-day moving average has been $40. Now I guess, actually at $93,000 a $39 hash price. So it will be telling to see what happens over the next epoch. The next difficulty adjustment will be November '26.

So we're still about 10 days away from that. And if the hash price floor of the last year is an indication, we would expect a downward adjustment, although as more efficient machines have come online over the course of the last year since the halving was in April of 2024. And we're now in 2025, we could see the hash price floor perhaps become incrementally lower, perhaps in the $36 to $38 range. But we'll know sort of in the course of next week. A lot of the peers are not publicly -- when I say peers, publicly traded Bitcoin miners, have not announced significant expansions.

Of course, Bitdeers is being a producer has brought online more hash rate. I think Cipher has got themselves to 23 exahash. MARA, IREN, they're all hovering about 50 along with CleanSpark. So that hash rate is online. I don't see that going anywhere anytime soon.

However, again, we did see difficulty downward adjust. So there will certainly be smaller-scale miners perhaps with less efficient machines that are shutting off their hash rate capacity when we see hash rate in the $40 -- $39, $40 range. So we're definitely closely watching it. But the good thing is our breakeven hash price is about $22 petahash a day on a global fleet adjusted basis with a 17.5 joules per terahash global fleet efficiency. So we've mined every quarter since I've been with HIVE 2021 profitably.

And so we upgraded our fleet accordingly, very intentionally to be able to mine with positive gross mining margin through the next halving. So look, with the Fed coming out, hopefully, there's a rate cut in December and that quantitative easing cycle. Hopefully, there's more liquidity, and we see a rally in risk on assets such as Bitcoin. Time will tell, but we're very much aware and monitoring things, but in the meantime, continuing to mine profitably.

Appreciate that color, Aydin. And then another one, if I may. Within the HPC stream, curious how we should just be framing our estimates between that base case and blue-sky opportunity? Are you able to share your targeted composition in --

Yes, yes, that's a good question and a very good question. I think as I sort of alluded to with Mike, we expect it to land somewhere in between the base case and the case with the additional -- or I should say, higher margin revenue with the cloud stream -- sorry, with the Buzz platform stream enabling higher margins on the cloud business. But I think you'll have your answer sooner rather than later because as we -- again, we're bringing these GPU clusters online first with Bell. So again, we expect those 1,000 GPUs to come online through the course of Q1. Again, this morning, we announced the purchase of the first 500, which we expect to get delivered before Christmas.

Now, of course, takes time to plug and configure and pressure test these clusters. It's -- Frank often likes to give a very helpful analogies. From 6 hours of receiving an ASIC, you could have it hashing. It's more like 6 weeks when you're building an InfiniBand cluster with a bunch of GPUs. So we're -- we've got our first cluster of GPUs live in January, this 500 January, the second 500 coming online within a month or two of there, you'll see sort of what those figures are.

So effectively, just stay tuned for fiscal Q1 -- sorry, calendar Q1, which would be fiscal Q3 period end March, and you'll see those numbers.

Chris Brendler, Rosenblatt.

Congrats on the results, very impressive progress here. I just want to ask a question on the Bitcoin mining business for a second. The improvement in gross margins here, and I know the network has gotten more difficult, more challenging from a competition perspective, but your gross margins improved significantly quarter-over-quarter. And with the sort of a full quarter run rate of the Phase 3 complete now, I would expect the gross margins to continue to improve. Just wanted to get your -- take your temperature on that thought that your hash costs are going to continue to decline and your gross margins, all else being equal and the Bitcoin mining business should continue to improve now that you're fully up and running on Phase 3.

Yes. You've got it bang on, Chris. So the Q2 -- fiscal Q2 we just reported, the average cash rate for that quarter was 16.1 exahash, and that was a period end September. And so that hash rate, I believe that it was Phase 2 of our Paraguay project. So 200 to 300-megawatts was completed in that quarter.

However, today, we're at 25 exahash and that milestone, we just reached last week. And we had sort of provided an update on that, that we put out a press release that we hit 300 megawatts -- we completed 300 megawatts, which is super exciting. We hit 24 exahash operational, 25 exahash were installed. And there was some short-term just seasonal curtailments we're talking like a day or two at a time here in Canada. And then just a few days ago, we actually hit the full 25 exahash operational as well.

So that's super exciting. But of course, we're in November now. So to your point and to further answer your question, yes, more hash rate coming online with our latest generation, 15 joule per terahash, S21+ Hydro machines are hitting the tape, and therefore, it will bring that average hash cost down as well as our cost of electricity in Paraguay is cheaper. And so you're getting two factors there that are attributing to improved gross mining margins. So yes, that's right.

And so again, just for your model there, I believe it was 16. 8 exahash was the quarterly average operational hash rate for a period end September. Again, that's covering the growth from July, August, September. We obviously ended the period at a higher number. I think it was closer to 20, but nevertheless, you had quite a ramp.

So what's the average of that ramp for the entire quarter? I believe it was 16.8. And until this quarter, it will not -- you could sort of interpolate the data just simply using our monthly production reports, what was October, which we put out not too long ago, and you'll see November reports in December. So you'll be able to figure our average operational hash rate. And again, all the new hash rate we brought online is at 15 joules a terahash.

The global average with the full 25 exahash online at 17.5 joules a terahash. And so we believe the monthly production reports are helpful for the analysts when doing your model. And we know some of our peers have sort of stopped doing monthly production reports. I don't understand -- I mean, I know why. Broadly, they're sort of trying to rebrand themselves or perhaps not advertise the fact that 99%, 97% of the revenue still comes from Bitcoin mining.

No names. I mean, everybody knows. But yes, we -- I believe Bitcoin is the world's energy back decentralized currency, and we've had wonderful year transforming our business to institutional scale as that business is flourished. I believe pound for pound, we are the best Bitcoin miner in the sector. We lead in ROIC as evidenced in our quarterly metrics again.

And so it's not something we're going to shy away from. Of course, HPC business is in Buzz, which is our pure-play subsidiary. So -- but it's part of our dual engine strategy. So there you go. I hope that's helpful.

Yes, sure. My follow-up question is on capital strategy. I mean at a high level, just the tremendous amount of growth you've had over the last year, and you've got big plans for next year as well between HPC and Bitcoin mining. Phase 4, I guess, is now on the table for Paraguay. How do you think about balancing the capital needs between HPC and Bitcoin mining? Is there a preference at this point? Or are you still looking to grow both at sort of the same rate?

So in my presentation, what I outlined was we have the additional 100 megawatts in Paraguay, which was awarded to us. So currently, our global operating capacity is 440 megawatts, with 300 megawatts in Paraguay. Now we have been granted an additional 100 megawatts of green energy by ANDE in Paraguay, which is great. What's attractive about that is that it's actually at an existing site, the Yguazú site when we bought, that was actually designed and all the civil work has been done for 300 megawatts at that site alone, but we've built it as a 200-megawatt site because those are the transformers that were ordered and that's sort of what Bitfarms had near term. That's all being completed.

So to get that extra 100 megawatts online, all we're doing is bringing on a couple more transformers for the substation and the medium voltage and then dropping hydro mining infrastructure in place. So sum that all up, the punchline is $0.25 million a megawatt to expand that 100 megawatts, which is incredibly attractive as we've mentioned before, our all-in cost for land, substation, everything was $400,000 a megawatt for our Valenzuela site and our Yguazú site. But because this is an expansion of an existing site that's already complete, it's a nominal incremental cost. So that's one portion of the CapEx. The bigger portion, of course, is I think all the analysts on the call and a lot of the very enthusiastic retail investors and certainly, institutions are aware that a cluster of Blackwells like a 1,000 cluster with InfiniBand and everything is roughly $60 million.

So if you're bringing on 6,000 GPUs, about $360 million, but that's a significant CapEx. But if you've got vendor financing for that, then that is the most significant component of CapEx that you've now alleviated. So we -- at least in terms of relying on equity financing or, say, taking on debt in the capital markets or having a derivative like a convert or anything. So what we're really enthusiastic about is that with vendor financing, we are able to scale that GPU business. And again, Bell being a colo, there's no significant CapEx for us.

So that ramp to the first 2,000 GPUs of our projection, getting us from $20 million to $60 million of ARR, we're able to realize through the colo with Bell and vendor financing on the GPUs, no significant CapEx, which is really nice. And then, of course, as I think it was Darren's question, the only CapEx we have to finish is with Little Boden and Toronto, $25 million and $40 million, respectively. And that gives us our ramp in our pipeline to operate 6,000 Blackwells globally in addition to our existing fleet of 5,000 GPUs to the tune of 11,000 GPU cloud globally.

So yes, it's about being very balanced and strategic with how we deploy capital and where we can have what we believe is accretive leverage, then we'll pursue that. And we have, and I'm very happy to announce that we've now got this capital plan laid out in addition to really support the growth.

Time for a few more questions, two more. Fedor Shabalin, B. Riley.

Thank you very much for putting out monthly updates. That's helpful. And question-wise, could you please provide an update on the time line for the Brunswick data center, including whether construction will be phased or completed at once? And additionally, should the colocation agreement not proceed hypothetically, is there a path to fully utilize the capacity for AI cloud demand? And how long would it take in this case, including timing for arranging, financing for GPU procurement?

Yes. So I think the takeaway from the presentation we provided, we actually wanted to emphasize that the conversion of the New Brunswick site, especially given its proximity close to the border of Maine, actually makes it very opportune as a hyperscaler colo project. And we're very much aware that right now, especially institutions, we were in Miami for the Cantor Conference, which was an absolute home run. I think Cantor did a phenomenal job putting together that event was extremely well attended, the quality of the attendees on both the buy side. And I mean, you basically had the whole industry and all the Wall Street there.

But anyway, it's clear that the Street is valuing hyperscaler colo because they like the stability, and they like to scale of those revenues. If you want to do a 100 or 200 or 300-megawatt site for hyperscaler colo, you can now allocate a large amount of capital. And if you've got a long-term leases, we've seen some of our peers announce, now you've got stable cash flows at lower margin.

I mean just -- I think all the analysts on this call are well aware, but maybe for the other people that are dialed in, just if you look at it arithmetically, if you were to sign a lease, one of our peers recently did a lease that worked out to $102 per kilowatt a month on hyperscaler colo, all you do is you divide that by 730 hours, and that works out to $0.14 a kilowatt hour. So the unit economics of hyperscaler colo are relatively modest, $0.14 a kilowatt hour when Bitcoin was at a $42 hash price, ASICs were doing $0.12 a kilowatt hour, not too far off from that. $55 hash price. Our ASICs were doing $0.15 a kilowatt hour, that's 21 plus. And you're base operating costs in mining is with power and so forth about a $0.05.

So you're doing relatively high margins and quicker ROI. If you're a $50 hash price range, something like 1.5 years ROI after CapEx. Now that's why I like the dual engine strategy. But again, because we're aware that people like the scale and stability of hyperscaler colo, even though the ROI period is more like seven, eight years, depending on what your dollar per megawatt CapEx is to do the conversion with a long-term contract. It is being valued in the Street.

So right now, as we've positioned our 2026 targets, we've got both. We've got the revenue, right, from operating AI cloud, hyperscaler colo as we've targeted for New Brunswick.

And then, of course, the Bitcoin mining business. So the $85 million target, Fedor, was actually based on hyperscaler colo. And so we did want to point out though that if you were going to base it off of GPU reference architecture based on latest generation GPUs, you could operate 25,000. But right now, our target and our focus is to get through the conversion of Toronto as well as Sweden and the Bell partnership to bring online those 6,000 GPUs. And stay tuned for updates on the strategy and status of the conversion of New Brunswick and directionally which way it goes.

But again, I sort of emphasize that the projections we provided in both cases, I'd had those 2 projections on HPC revenue. Both cases were predicated with New Brunswick as hyperscaler colo. So I would say just stay tuned for updates on that strategy and developments there.

Joe Vafi, Canaccord.

Terrific progress. Great to see it. Just can we drill down a little bit on Itaipu and Paraguay, clearly becoming very strategic location for HIVE and very differentiated. And I know you did mention the Stargate initiative in Argentina, Patagonia. Clearly, Stargate like the clean power angle as well.

You just drill down. I know you've been down there. I know Frank has been down there a lot. You're close with the government and the President. How much power do you think -- is there additional power available to HIVE out of Itaipu?

And maybe what's the President of Paraguay thinking about AI and things like that as the industry develops?

So what we've noticed is the -- I mean, the President of Columbia -- sorry, the President of Paraguay, Santiago Peña. He's like -- the ministers, the President, they're all like internationally educated. They're all extremely bright and the -- I mean Peña, I think he's 46. I believe it was his birthday, he just turned 47. So these are young, really smart guys, Joe, that want to position their country.

And they've been internationally educated, I mean, in the US, I believe. Peña was studied at Columbia University. So they want to position their country for success, and they're aware of they're very much attuned of -- they're very much attuned of the data center industry. We saw that OpenAI went down to Argentina to talk about a Latin American Stargate with Sur Energy. We, of course, have been talking with the Paraguayan government about the future of data centers in Latin America and HPC in Paraguay.

So I think that it's definitely on the horizon, and it's something that we're incubating and seeing how we could support and be a catalyst to help bring that vision to life. I would say that there's a vision for it right now and where -- what we're trying to do is be a catalyst for that vision in Latin America by working very closely with Peña and the various ministers, again, who are extremely business savvy. And Paraguay is a country of 6 million people, but it's also home to the largest hydro dam by production. The Itaipu Dam, by the way, maybe I'll put it on Twitter, Luke and I took a photo. It has again this world record banner when you approach it.

So it actually kind of set up as a tourist attraction like anyone can go there, marvel of engineering, et cetera. And so how do you monetize those vast natural resources? And I think Frank has often talked about how as we grow our footprint going from 300 to 400 megawatts in Paraguay. That means U.S. dollars paid in a timely manner for the government of Paraguay.

And moreover, we believe that directionally, power prices are going to get attractive in this region. And they are attractive, and I think they're going to more so become attractive. And -- that's sort of what I could say for now. But let's just say we're working on a lot of things and standby for updates as we have them.

That's great. And then just quickly on a follow-up. I think the Brazilians and the Paraguayan share the power off that dam. I think it's -- I mean, a Wikipedia search, I think it's like 15 gigawatts coming off of Itaipu. Have you had any discussions with the Brazilians at this point?

Or -- because I think they're probably getting a lot of the power off the dam. Just wondering if you're exploring other things in the region given your Itaipu position.

Yes, you're very astute, Joe. So yes, it's about 14 gigawatts. When we were there in December of last year, it was producing 10.7 gigawatts on that day. And we actually -- Jamie Brown came down for a visit in September. There was a YPO event that Peña hosted.

And it was at the Central Bank and then it was at the Presidential Palace and then we went over to Itaipu. And I believe that the dam was only producing about 8 gigawatts that day or -- yes, exactly. So that dam has a lot of capacity, exactly 14 gigawatts. Might be 14-point something, closer to 15. But when we were there, I recall it being 14 gigawatts.

So there is -- the arrangement is that the power is actually sold like while -- when you go to the dam, it's called Itaipu Binacional. So there's a border and you've got both Brazil and Paraguay, but the power is actually sold to Brazil. So I think it's -- what happens is there's sort of a more nuanced outlay where the Itaipu infrastructure project has recently completed its CapEx, the construction cost of this magnificent facility, it has paid itself off. It has paid itself off. And so now what we're entering to in the 2027 era is what will that look like going forward now that it's been paid off.

And so when I sort of was referring to, we believe that the pricing of power from the Itaipu Dam will directionally be favorable. That's what I was sort of getting at. So you've asked a very good question. You've clearly done your homework. But that's all I can say for now, my friend.

And stand by for updates on that. But yes, you're kind of pointing in the right direction. And again, we've -- with OpenAI coming down to Argentina, of course, Argentina is a neighbor of Paraguay as well. We think that there's going to be some very exciting potential activity, both in terms of having abundant green energy. And what we're also doing is initiatives to help improve the grid as well.

And so part of -- as we showed how we were refurbishing the schools in the community, and that's goodwill at HIVE, right? No one's asked us to do that. We've done that because we think it's the right thing. And Frank and myself and our whole executive team, we really much value education even if it's at a primary school level. Of course, we have great education for the staff that work at our facilities.

Frank is a huge sports guy as anyone who knows him knows. And so we love to sponsor sports teams as well. But then you kind of take it up a level and when you're working with the utilities and the federal government, how can we help improve the grid and contribute to the nation's infrastructure. So standby. But yes, we're working on things that we'll provide you updates on over the course of the next year.

Excellent. Thank you, Joe. Thank you to all of our analysts and our attendees. We appreciate you joining us this morning. That concludes our Q&A session in our Q2 2026 earnings call.

Thank you for joining. Thank you for your support. We look forward to speaking to you again soon.