Hello, and welcome to today's webcast on HIVE Digital Technologies financial results for the quarter ended June 30, 2025. My name is Nathan Fast, Director of Marketing and Branding at HIVE. I'll be your moderator for today's call. Before we get started on Slide 2, we'd like to briefly note the disclosures for today's presentation. Except for statements of historical fact, this presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as expects, beliefs 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; Darcy Daubaras, Chief Financial Officer; and Craig Tavares, President and Chief Operating Officer of Buzz HPC. I would now like to hand the presentation over to Mr. Frank Holmes for a macro recap of the quarter. Frank?
And now with the scaling underway this year, in particular seeing the growth in Paraguay, the quarterly results are starting to populate and they're showing you that at the end of June our top line revenue growth rate was $45 million and the adjusted EBITDA just for the quarter was $44 million, which was almost what 12 months was after that halving, and the gross operating income was $15 million. What I'm going to walk you through is that many analysts then say, if you forecast that for the next four quarters because you're ramping up, these numbers will be much higher, and in fact, since August we're at 15 EH/s, these numbers are even greater than the numbers you're looking at right now. Next, please. Using a back-of-the-envelope calculation and noting that past performance is not a guarantee of future results, just looking at the revenue for that quarter you would have a forecast of $182 million top line, EBITDA of $178 million and gross operating income of $63 million.
Today, it's even higher than these numbers. But you have to remember we have to wait for the audited numbers that come out at the end of September for this summer quarter and what they will look like. We did make a press release that top line revenue growth is running at over $300 million now. Next, please. The largest noncash items for HIVE for the quarter were the revaluation of Bitcoin on our balance sheet, and the volatility of Bitcoin can move up and down. These are noncash items, and we saw a swing here of $23 million. Depreciation is also another significant item as you buy new GPU chips for the AI build-out or ASIC chips for the Bitcoin build-out in the data centers; the depreciation charges are quite high. Next, please. These are powerful visuals to show our scaling and to put things in perspective in Paraguay. This is 15 EH/s of Bitcoin hashrate advancement in Paraguay and this has accelerated because of our M&A activity and buying Bitfarms' operations in Paraguay, which has allowed us to really accelerate our footprint from 100 megawatts of electricity to 300 megawatts.
The leadership shown by the Country President Gabriel Lamas has been outstanding as we've been able to scale more rapidly than anyone anticipated. What's really important in the next visual is that price is what you pay, but value is what you get. Scaling 4 EH/s with discipline and 4 EH/s of hydro online leads into the next visual showing that we do not forget these communities that we're involved with. At HIVE, value goes beyond just record revenue and EBITDA; it includes lasting benefits that we deliver to our communities. We've done this in Sweden with the hockey arena and the hockey team training for kids in Northern Sweden. In Paraguay, where we're scaling our renewable power data centers, we've invested in the future education of local grade schools by installing air conditioning, which is so key because average temperatures are around 100 degrees. We've also put in street lighting as this visual shows, with the Mayor thanking us because we've lit up 14 streets so that mothers, parents and kids are safe in the small towns where we operate.
This is not just an ESG check-the-box. These are long-term contributions that enhance quality of life, improve learning conditions and strengthen our partnership with local communities. It was a poor and rainy day when I was there last week, and these are fresh photographs of us visiting the school and being thanked by the kids who are just out of school. The classrooms are open-air, whereas in Texas or Canada everything has four walls behind it, and this school is almost 80 years old. Next, please. We truly believe in social impact investing for building a brighter future in Paraguay. So let's hop to Toronto and the next visual, please. We operate over nine time zones in five languages and source hydroelectricity from three countries: Canada, Sweden and now Paraguay. Coming back to Toronto, it's not only Canada's largest city, having surpassed Chicago in population, it's a diverse population from 50 countries and a hub of education, research and innovation, leading to inventions and cutting-edge medical research and globally recognized breakthroughs, including the discovery of insulin for diabetes.
This unique mix of scale, talent and innovation makes Toronto one of North America's most vibrant cities for finance, technology, life sciences and live theater; it is the third largest live theater city in the world. The subway system is over 50 miles connecting the city underground, and surface transportation buses and streetcars provide almost 750 miles of coverage. The University of Toronto has played a pivotal role in the development of deep learning and neural networks, including work by Dr. Geoffrey Hinton with his propagation research and other breakthroughs. The Boltzmann machine is recognized as foundational for modern AI. In essence, the University of Toronto is arguably one of the world's most influential hubs for AI, with impact stemming from academic breakthroughs. We've seen something similar in San Antonio, Texas, where the University of Texas at San Antonio is a leading university for cybersecurity and has attracted significant NSA operations to tap into intellectual capital.
Toronto's reputation as an AI capital, with Geoffrey Hinton receiving major recognition for his AI breakthrough, is really quite significant. The University of Toronto's foundational research and institutional ecosystem, its global influence and applied innovation are key, and there is a global push for sovereign data centers to have a footprint in Toronto. By building in Toronto, we are leveraging Canada's AI leadership and supporting sovereign data infrastructure. Craig Tavares, our President of Buzz, will give you more information and insights on that. This is classic: what we've seen with data centers for Bitcoin mining is often a stepping stone for the AI build-out globally. We're seeing this all over the world. We are happy to have a 40,000-square-foot building that will go from what's called Tier 1 to Tier 3 and then be able to build out our suite of NVIDIA chips for our AI business.
We are now downtown Stockholm and downtown Montreal and, hopefully in short order, downtown Toronto. Next visual, please. What's been significant for us in moving the head office to San Antonio, Texas has been the comfort of regulatory pronouncements. This year, the GENIUS Act represents a major shift toward regulatory clarity and institutional adoption of Bitcoin in the U.S., and being the world's largest capital market to formally recognize Bitcoin's legal status is setting clear compliance guidelines. We think this is very significant for the global Bitcoin ecosystem. The GENIUS Act, the 401(k) Executive Order and the Texas Strategic Bitcoin Reserve—all these developments are important for global Bitcoin mining revenue, the ecosystem and its credibility. These acts are also important for America to push back against China's de-dollarization efforts and actions by BRIC nations against the U.S. dollar in global trade.
So the clarity provided by these acts is another important step and shows American leadership. Next, please. As Warren Buffett likes to say, price is what you pay and value is what you get. Intrinsic value is key: a true worth based on future cash flows, competitive edge and business quality, and that's what HIVE is building. We're growing HIVE's intrinsic value faster than the stock price is reflecting. Historically there has been a re-rating, and I think this release today showing what's happened this quarter and at the end of the September quarter is very significant for HIVE being re-rated by institutions. There are other important developments in the capital markets this year, in addition to the Bitcoin regulatory guidelines, such as record stock buybacks. I recently wrote about this in Forbes and The Wall Street Journal has also covered the trend. Next please, let's look at the analysts and the research coverage targeting a $6 to $8 stock price.
Where do these numbers come from? A big part is proving you can grow and scale, which we're doing. We've also seen significant mergers and acquisitions in the industry, unlocking value. For example, CoreWeave, a hyperscaler with strong support from Microsoft and NVIDIA, acquired Core Scientific. They are buying Core Scientific because they sourced energy and land—hyperscalers need access to both land and electricity. We're seeing a huge build-out and early entrants into areas with stranded or wasted electricity have been Bitcoin miners—miners in West Texas absorbed flared gas and surplus electricity from solar and wind. There's great value being placed on these early adopters. I have been a Bitcoin miner, and I view HIVE as an early company in sourcing and developing these opportunities. In Paraguay, we're helping the government get steady U.S. dollar cash flow every month, supporting the ecosystem and building out infrastructure.
What happens when you go to Tier 3? What are the valuation metrics? A simple back-of-the-envelope comparison: the data center peer average is about 9x enterprise value to sales, while HIVE trades at 1.5x. If you look at enterprise value to EBITDA, HIVE is 3.2x and the data center average is 21x. Therefore, there is lots of upside as price catches up to the intrinsic value the management team is creating for HIVE shareholders through long-term sustainable value creation. The next visual is intended to explain to investors Stargate in West Texas, in Abilene, where there's a massive $500 billion AI mega project. There's been strong coverage on this in Bloomberg and on YouTube; if you're curious, take a look. It's over 2,000 acres, has over 2,500 construction workers and is tapping surplus wind, solar and natural gas energy to build for the secular bull market in AI. Stay tuned to HIVE as it participates early in capturing energy and building out data centers for Bitcoin mining and AI. Next, please. I'll now welcome Aydin Kilic, our CEO, who will give you more granularity on what's happening in the global Bitcoin and AI build-out.
Thank you, Frank. That was an excellent macro summary and great insights into the industry and our growth. I just want to add that for the past 10 years we've seen Bitcoin mining emerge as a unique catalyst for unlocking stranded, otherwise unused energy resources. By monetizing surplus power, utilities can maintain a higher base load and then sell energy to miners when grid demand is low. Miners provide a flexible, location-agnostic and reliable demand source that transforms isolated or excess energy into economic value. This model incentivizes the build-out of renewable projects by turning intermittent output into steady revenue. We believe financial markets are increasingly recognizing the positive climate and economic benefits of such operations. The infrastructure built for digital asset mining is becoming ripe for new layers, notably high-performance computing and AI, because of parallel requirements for dense power and robust cooling.
With that being said, let me jump into my summary for HIVE's Q1 2026. It was a phenomenal quarter, a record quarter for us, with over $45 million in total revenue. Approximately 90% came from Bitcoin mining operations from our green energy global footprint and approximately 10% from our HPC and AI business, which is very exciting. Of the $45.6 million in revenue, we delivered approximately 38% gross operating margin, yielding about $15.8 million of cash flow from operations. Remarkably, we reported $35 million of net income and $44.6 million of adjusted EBITDA. We ended the quarter with 435 Bitcoin on the balance sheet. We have the Bitcoin pledge strategy where we pledged a large quantity of Bitcoin at $87,000 and have the ability to purchase that Bitcoin back before the end of the year at zero interest. That strategy will allow us to increase our HODL as the year goes on with free cash flow from operations growth.
We felt this was a very accretive way to scale our Bitcoin mining business because pledging almost $200 million of Bitcoin avoided share issuance or taking on debt. Without dilution and without taking on debt, we’ve been able to scale approximately $200 million worth of CapEx using this pledge strategy, which is now profitable. Our approximate estimates put us over $40 million in the money on that pledge strategy based on the current market price of the pledged Bitcoin. HIVE combines great uptime, low G&A and best-in-sector ROIC. We have been very strategic in growing the business in what we believe is an accretive manner for our shareholders. Our trailing 12-month ROIC is 15%, which again leads the sector. I also believe HIVE stands out in this new era of vertically integrated AI infrastructure. We are lightly leveraged, have a very transparent growth model, are powered by renewable energy, and provide regular reporting of our exahash milestones.
Our model, proven through scalable mining in Canada, Paraguay and Sweden, is rapidly being adapted for sovereign AI and HPC as well. The recent Toronto data center deal and the prior acquisition of Bitfarms’ Paraguay assets position HIVE to hyperscale its footprint precisely as the market begins to appreciate that infrastructure built for Bitcoin is now among the most coveted asset classes for the AI super cycle and the ongoing global HPC land grab. Earnings per share grew 206% year-over-year to $0.18 on a diluted basis. While diluted shares outstanding increased to 192 million, up 74%, our earnings per share outpaced that growth significantly. We saw significant growth after completing our construction projects in Paraguay, Phase I and II, which added 200 megawatts of expansion. Our all-in cost to acquire and complete construction work was about $400,000 per megawatt. For the 200 megawatts, that equaled roughly $80 million of CapEx; our 100 megawatts in Valenzuela had similar costs of about $40 million, so total construction CapEx was about $120 million.
You will of course have some equity that goes toward acquiring and building out that infrastructure, but $400,000 per megawatt is incredibly attractive. We effectively acquired the 200 megawatts in Yguazú at cost, allowing us to bring hashrate online very rapidly. Even though we issued shares, we believe it was accretive as revenue per share and earnings per share have grown. Ultimately, we want to demonstrate the best ROIC for our shareholders: when we deploy capital, we must generate more cash back than we spent, and that is how we strive to operate at HIVE. The numbers show it. It was a phenomenal quarter for Bitcoin mining. We averaged 4.5 Bitcoin per day, mined 406 Bitcoin for the quarter, and our average exahash at period end June 30 was 8.7 exahash. We scaled during the quarter and brought online the first stage of Yguazú, the first 100 megawatts. Since then, in the first week of August, we continued to scale and are operating at 15 exahash, producing 7.5 Bitcoin per day on average.
We have grown production by over 65% from where we were this fiscal reporting quarter to where we are today. Looking forward, once fully built out we will have a 440-megawatt green energy footprint dedicated to Bitcoin mining, achieved with a capital allocation strategy optimized for ROIC, the lowest G&A per Bitcoin mined in the industry and best-in-class uptime. An overview of our expansion in Paraguay: 2025 has been a landmark year for HIVE as we scale toward 25 exahash. We started the year at 6 exahash, so this is over four times growth. Phase 1 was completed ahead of schedule: the first 100 megawatts at Yguazú, providing about 5 exahash and air cooling. Phase 2 will provide 6.5 exahash of hydro miners using Bitmain S21+ machines at 15 joules per terahash. We are over two-thirds complete, with 4.5 exahash operating today and 6.5 exahash expected in the next few weeks when Phase 2 is 100% complete.
The third phase in Paraguay, Valenzuela, is essentially complete from a construction standpoint and we will start installing ASICs in September. We are operating over 15 exahash per day. Another important update is that we are fully funded and have fully paid for all ASICs needed to reach 25 exahash. Between now and American Thanksgiving, ASICs will arrive on an almost weekly basis to scale us from 15 to 25 exahash. The CapEx is deployed, we’re fully funded, and from here growth is a function of the paid-for ASICs arriving and being installed. We will also use free cash flow from operations to pay for all OpEx; our Bitcoin CapEx is taken care of. On an annual recurring revenue basis, we are at $315 million ARR today and our fleet efficiency continues to improve as we bring on S21+ hydro in Phases 2 and 3. That will move our energy efficiency from 19 to 18.4 joules per terahash, and ultimately to about 17.5 joules per terahash by calendar Q4.
The completion of Phase 2 will get us to about 18 exahash, which equates to roughly 9 Bitcoin per day at current difficulty, which we have updated to reflect current mining economics at 129 trillion difficulty. With 25 exahash by American Thanksgiving, we expect to produce approximately 12 Bitcoin per day at today’s difficulty. As a result of those catalysts, using a $60 hash price scenario and higher efficiency, our gross mining margin improves. At 18 exahash, we project about $390 million ARR and about $230 million of annualized mining margin. At 25 exahash, we project about $335 million of annualized mining margin at today’s economics. Our market cap is around $500 million and we have over 400 Bitcoin on the balance sheet, which is nearly $50 million of Bitcoin. We also have the call option that could return our position to over 2,000 Bitcoin. As more phases complete, our cash flow from operations is expected to exceed $300 million in the next couple of months.
We updated our annualized mining margin scenario analysis for Bitcoin prices of $100,000, $125,000 and $150,000 and for the current high difficulty environment. With Bitcoin trending around $125,000 through the end of the quarter and assuming 25 exahash, our mining margin is about $345 million on an annualized basis. If Bitcoin rallies to $150,000, our mining margin could exceed $450 million. Given our market cap of $500 million and roughly $50 million of Bitcoin on the balance sheet, this is an attractive time to be a HIVE shareholder. We plan for downside and manage risk, but these scenarios show the upside under different price points. From 15 exahash today to 25 exahash by American Thanksgiving is still 67% growth, while the rest of the industry has tapered. Some peers have modest growth, so 2025 is shaping up to be a big year for HIVE. The 300-megawatt expansion in Paraguay has been transformative and we’re excited about the path ahead.
As of quarter end we held 435 Bitcoin. All our CapEx for ASICs has been deployed, and ASICs are steadily arriving as we scale to 25 exahash. We mined 406 Bitcoin for the quarter. Right now, we trade at one of the most attractive enterprise value to adjusted EBITDA ratios in the group. In the first week of August we are mining 7.5 Bitcoin per day and we have over 5,000 NVIDIA GPUs in Canada and Sweden. We hit our $20 million ARR target for the GPU business, and we are developing cloud partnerships. We focus on an optimized ROIC strategy and lead the sector in that metric. We are disciplined with capital allocation and data-driven, scanning ASIC prices, modeling ROI, machine efficiency and performing multivariate sensitivity analysis to plan for downside. We have mined profitably every single quarter since 2021 through market cycles, and we optimize the life of ASICs by mining them until the end of their economic life, using firmware and operational changes to maximize yield and upgrading only when a clear sub-one-year ROI signal exists after operating costs.
Trailing 12 months, we realized 15% ROIC, leading the sector by a wide margin. I expect that figure to grow as more cash flow comes online from the current quarter. Our peers are generally in the lower single digits or low double digits, and our ROIC meaningfully outperforms them. We also have the lowest cash G&A in the cohort. Based on our current revenue run-rate of $315 million ARR, our cash G&A would be closer to 8% of revenue, though the quarterly financials shown reflect a lower ARR base. Many peers have much higher cash G&A percentages due to large executive cash compensation, headcount, and other corporate spending. We take a disciplined approach to corporate spending. A summary of our data center footprint: 440 megawatts of green energy mining hydro dedicated to Bitcoin mining, plus the recent acquisition of a 7.2-megawatt site in Toronto with roughly a 5.5-megawatt IT load. The Toronto acquisition illustrates how legacy Bitcoin mining infrastructure provides an invaluable launch pad for the AI era.
This facility will be our first wholly owned Tier 3 quality data center and will leverage liquid cooling infrastructure to power our sovereign AI strategy for Canadian enterprises and government initiatives. Operating in one of North America’s densest fiber and research hubs positions HIVE to transform existing sites built for proof of work into sovereign high-density GPU clusters and capture growth in the AI industry. We are operating at scale today with over 5,000 GPUs, including one of Canada’s first supercomputer H200 clusters with 63 nodes and over 500 H200 GPUs connected via InfiniBand. We hit the $20 million ARR milestone for the GPU business, branded Buzz HPC, and the Toronto data center retrofit to liquid cooling is expected to add materially to ARR once complete. We are developing an enterprise tech stack to power sustainable compute, and our GPU clusters have over 10,000 monthly unique accounts, demonstrating customer traction.
Our $100 million revenue target for 2026 is within reach. The Toronto data center retrofit to support next-generation liquid-cooled GPUs could add roughly $80 million ARR to our current business once completed, and the retrofit timeline is about a year. Craig Tavares will provide more color as Buzz HPC progresses. Zooming out, HIVE trades at an attractive enterprise value relative to hashrate compared to peers. The peer average enterprise value per exahash is about $66 thousand, and based on peer multiples, reaching 25 exahash could imply a meaningful market cap uplift. We are building shareholder value as cash flow grows and believe the stock merits a re-rating as we achieve critical scale. Since June 30 we have continued to grow, moving from 4.5 to 7.5 Bitcoin per day. Hash price was down quarter-over-quarter, from about $54 in March to $51 in June, yet our operating margins increased from 28% to 38% gross operating margin.
Our lower average cost of power in Paraguay and the improved energy efficiency from new hydro ASICs are bringing down our average cost to produce Bitcoin, a trend that will continue as we scale to 25 exahash. Now I will turn it over to the longstanding CFO in the Bitcoin mining industry, Mr. Darcy.
Thank you, Aydin. Good morning, everyone, and thank you for joining us today. For the first quarter, I'll be walking through the results. As a reminder, we are providing certain non-GAAP measures in our presentation today. The company believes 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 the company. These measures do not have any standardized meaning, prescribed under U.S. GAAP and therefore, may not be comparable to other issuers. Further details are found in the management discussion and analysis for the 3 months ended June 30, 2025. Moving on to the next slide. HIVE ended the year June 30, 2025 quarter with 204.3 million common shares, 2.7 million options, 9.9 million RSUs and 3.2 million warrants outstanding. And on the next slide, let's start with the key highlights for the quarter.
For Q1, we generated $45.6 million in revenue and delivered $44.6 million in adjusted EBITDA. Production for the quarter was 406 Bitcoin equivalent, supported by stable operations and strong uptime across our sites. 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 take pride in maintaining a very healthy balance sheet as of June 30. We held $24.6 million in cash, $47.3 million in digital currencies and $34.5 million in receivables and prepaid. That totals $180.6 million in current assets against $52.8 million in current liabilities. We also maintained $33.7 million in strategic investments. This liquidity allows us to manage market cycles, invest in expansion opportunities and avoid over-leveraging the company.
With that context, let's now look at how our earnings 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 Q1 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 $15.8 million in the most current quarter compared to $10.7 million in Q1 last year. In this most recently completed quarter, we are reporting a basic income per share of $0.19 compared to a net loss of $0.17 per share reported for Q1 last year. Taking a look at our revenue increases year-over-year on the next slide, we generated total revenue in the first quarter of fiscal 2026 of $45.6 million versus $32.2 million in the previous year's first quarter. The revenues compared to the same quarter in fiscal 2025 can primarily be attributed to the expanded hashrate that we are experiencing from the Paraguay expansion that is well underway.
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 $15.8 million or 35% in the most recent quarter, compared to $10.7 million or 33% in the prior year comparable quarter, that's a direct result of our optimization of our mining fleet, the expansion in Paraguay and improving overall operational efficiency. Now if we zoom in to just the last 2 quarters, you'll see an even bigger improvement on the next slide. Comparing our current fiscal Q1 quarter to the previous Q4 quarter, we generated revenue in this Q1 quarter of fiscal 2026 of $45.6 million versus $31.2 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 we also had higher high-performance computing revenues.
Our gross operating margin increased to $15.8 million or 35% in the most recent quarter compared to $8.8 million or 28% in the prior year's comparative. This increase in gross operating margin versus the prior quarter was greatly due to the comparative BTC prices and resulting revenues and increased exahash. 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 June 30, 2025, was $44.6 million versus adjusted EBITDA of negative $8 million in the June 30, 2024 period. I will highlight, again, that adjusted EBITDA is a non-GAAP figure. For this completed quarter, we experienced net income of $35 million, compared to a net loss of $18.3 million in the previous year comparative.
On the next slide, the quarter-over-quarter view tells a similar story. Our adjusted EBITDA in the first quarter of fiscal 2026 was a profit of $44.6 million versus an adjusted EBITDA loss of $30.7 million in the previous 2025 Q4 quarter. In the first quarter of fiscal 2026, we experienced net income of $35 million compared to a net loss of $52.9 million in the previous Q4 quarter. Q1 fiscal 2026 was a solid quarter for HIVE. We delivered strong revenue, expanded margins and maintained a robust balance sheet. Our operational discipline and cost control measures continue to position us well to compete in a challenging environment and capture opportunities for growth. I want to thank our loyal stakeholders, encourage them to follow our expansion efforts over the next 6 months.
Hi, everyone. My name is Craig Tavares. I'm President and COO of Buzz High-Performance Computing. I'd like to just do a quick introduction on Buzz. We're a fully owned subsidiary of HIVE Digital Technologies. We're actually one of the first Canadian sovereign AI cloud providers. And I'll explain that a little bit more later, but we essentially own and operate large GPU clusters in vertically integrated data centers around the world. Our legacy as a crypto miner provide us stepping stone to become one of the leading AI cloud providers as we deployed our HPC and AI business early last year. Bitcoin in general has actually become that large catapult for AI in general. And if you look at the large data center providers and GPU cloud providers in the market today, you could see that Bitcoin had become that catalyst for those that had access to power and land to develop data centers of those large GPU clusters that consume the data centers.
So Buzz in general, is very different than a lot of the other providers in the market because we focus on delivering a full suite of infrastructure services and solutions for AI. And we do it by offering a local touch in the domestic markets that we operate in, but we maintain a global reach. We currently operate in Sweden and Canada with a fleet of over 5,000 GPUs. We're certified in NVIDIA cloud partner, really building to the highest performance standards. And we are redeveloping a powered facility that we own in Sweden to become a new Tier 3 data center. It's strategically located down the street from a metadata center, which means that we have rich network access. And that's important when you look at the large number of platforms and applications that you want to host in your data center, but we offer a wide range of infrastructure and professional services catering to that AI development that we hear about in the market today and being able to really accelerate the AI development is important because it requires that accelerate compute infrastructure at scale.
We hit a revenue growth ramp at record speed this year. And it's really layered in with a positive cash flow and now rapidly, we're scaling to $100 million ARR. Being sovereign really means that we secure and guarantee your data that also means that, that data resides on your nation soil and immune to foreign policy. This is a large part of our go-to-market. In addition to that, it also means that the infrastructure and operations are all domestically owned. So we operate at scale as a sovereign provider, and we are the experts at building and optimizing large GPU supercompute clusters. We like to really help promote the development AI by democratizing access to this accelerated compute hardware. And it really has become a unique thing because it's not easy to manage. It's not easy to maintain. Only the few that have that experience knowledge that now to do it will survive in the market and be able to scale in the market.
We also do it in a very sustainable way. So we launched green GPUs in the market some time ago based on the fact that all the data centers are powered by renewable energy. And our data center, as an example, operates with the highest efficiency. So we run some of the lowest PUEs in the market, which stands for power usage effectiveness, and that just means that we're using power in the most effective way so that reduces the amount of power consumption to cool and operate the data center, but also creates higher margins in our business. So ultimately, when you look at all those vectors, we're bridging the gap between AI and sustainability. And the last thing that I want to talk about is really the customer service that we deliver and solutions that we deliver. So first is customer service. We have some of the quickest onboarding times into our platform in the market. We have some of the fastest response times, and we're well known in the market to deliver an amazing customer experience, but we back it up by performance guarantees as well too.
So if you do business with Buzz, we support that with SLA or a service level agreement, to back up those guarantees for response time, uptime and at the end of the day, making sure that, again, your environment stays performing to the highest level. When we think about sovereign and you think about the solution set to deliver sovereign, it's become a new standard in the market. And some customers may not need sovereign because we cater to a broad set of customers, whether you're a researcher, a startup, scale-up and then across the other side of the spectrum to mid-market, enterprise and government, all of those customer segments can use our platform and do use our platform. And at the end of the day, sovereign has just become again, a new standard that defines what we call enterprise-grade platform. And enterprise-grade platform means we maintain the highest security level, resiliency level, reliability and high performance that we can offer to the market.
Starting with our data centers, we operate in Tier 3+ data centers, again, maintaining that high-performance resiliency in the markets that we operate in. Inside the data centers, we deploy the high-performance clusters and I spoke about earlier, which is based on NVIDIA GPUs, InfiniBand networking and vast data storage. On the virtualization layer, we delivered bare metal servers or if you want containers, we deliver managed Kubernetes and DevPods. Perhaps you need virtual machines to run your environment layered with Slurm. But whatever it is, we can customize and tailor that environment for you. On the tooling side, being able to build data pipelines support for AI. So we offer all the tools for data pipeline, data prepping. And then if you're training a model, tuning a model and running inference endpoint, we have the capability to support that as well, too. And then we've really started to build out our agentic workflows of all, too.
So if you're developing agentic AI, you can do it on our platform. Equally as important as scaling out our sovereign AI cloud strategy is investing into our own data center assets. So where we own land and power, we really looked at developing data centers in those markets. Boden is an example of that. So in Sweden, we have owned land and power with a shell in a building that we're developing into a Tier 3 high-performance compute data center. It will be liquid cooled with high-density racks so it can support the most demanding workloads possible in the market. So we'll be able to scale our GPU infrastructure out within that facility. And in Toronto, we just did a recent acquisition of a 7-megawatt facility that can scale higher and Toronto again was a key market for us because really, when you look at data center development, it comes down to 3 major things. One is access to the power to scale, the type of power cost of power.
And then the other one is really a geographic location based on its network connectivity. So really having that low latency to the net highway is super important to support many different applications that we see today, whether the traditional applications or AI applications for inference. You really want to maintain the fastest network access possible to that data center. And then the last thing is really being in a market where we have rich ecosystems built around AI. And that's what Canada is in general and especially being in Toronto where at the center of the epicenter to some of the world-class leading institutions for AI such as Vector, Mila, Scale AI, Amie. So again, being in that market was super important for us. Both of these facilities will go live next year. In summary, we really achieved maximum utilization across other GPU clusters earlier this year, so that we ensured we had an ability to really hit that ROI, maintain a high level of profitability, achieving again just amazing EBITDA on the infrastructure that we deploy and monetize.
And outside of that, we've built amazing pipelines of customer demand. So it's prompting us again to expand as rapidly as we can in a lot of the local markets we operate in. But we leverage all our existing power facilities and access large-scale power to accelerate the growth of our data center footprint, again, within Canada and Sweden, because it gives us access to the North American markets to the European markets, and it allows us to maintain really the capacity at scale when the market needs it, deploying the latest and greatest cutting edge NVIDIA GPUs is one of the things that, again, we've done really well over the last couple of years and then really continue to do that in the future. But we're continuing to build out, really, again, this compute infrastructure in the market that caters again to the sovereign markets and also the global markets. This is not trivial because it's something that even the largest cloud providers haven't quite figured out as yet.
And we do a fraction of the costs compared to some of the largest players in the market. But in the end, the cloud has evolved and sovereign is a new standard. So Buzz is really the solution to this new shift, and we're helping to provide the digital infrastructure to accelerate AI innovation domestically and around the world.
Thank you, Craig. That concludes our Q1 2026 earnings call. Thank you for joining, and we look forward to speaking to you again soon.