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Hello and welcome to today's webcast on HIVE Digital Technologies Ltd. Financial Results for the Quarter Ended December 31, 2025. My name is Nathan Fast, Director of Marketing and Branding at HIVE. I will be your moderator for today's call. Before we get started on slide two, we would like to briefly note the disclosures in 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,' '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. 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 of this presentation and in the press release and Form 8-Ks furnished to the SEC. I will now turn the call over to Frank Holmes for a macro recap of the quarter. Frank?
Welcome to the show by HIVE. I have a lot to share with you as the Co-Founder and Executive Chairman and give you sort of an overview of what I am seeing in the geopolitics around the world and some of the glitches that have happened that have really impacted the crypto ecosystem. And I will give you also some what we would like to call the standard deviations that this is a great buying opportunity based just on the math of markets, that when things become overextended on the downside or upside. But before getting into this detail, I want to share with you that volatility is incredible. And it is also predictable when you take a look at it. You update this every quarter. But the S&P daily is 1% of the time. That means 70% of the time, it is a non-event for the S&P to go up and down 1%. And over ten days, 3%. Gold is the same as the S&P 500, but Bitcoin is three times greater. That is something just to recognize that the stocks that are in technology a new innovation like Bitcoin, it just will experience greater volatility. Tesla used to have this 21% volatility over ten days until it became part of the S&P 500, but you can still see that on a daily basis, it is four times greater than the volatility of the S&P 500 or gold bullion. And we can also see here that over ten days, it is 11% is normal volatility. Strategy, which is interesting for me is because Strategy was always higher volatility than HIVE, and now it is on a daily basis plus or minus 5%. But over ten days, HIVE has greater volatility, which surprises me because we do not have the same balance sheet. We have a very conservative balance sheet and a very conservative, pragmatic way of managing the company's growth. So here is the team. They are all working hard. Aydin Kilic, Darcy, our CEO and CFO, the longest standing, I think, CEO and CFO in the industry. So I am very happy about that. And Nathan has joined us a little over a year ago. And now let us get into this macro recap. Here is the picture. And this picture is really important in respect that we grew our business from 6 exahash to 25 exahash in 2025. And we are 2% of the global network, and you can see that one of the investment bankers there, Jamie Brown, was on the ground floor of the creation of the idea of HIVE. And then you can see some of our directors are there. And other key employees, our Chief Operating Officer, the President of Paraguay's operations, and you can see Nico is in there. And you can see Aydin Kilic, our CEO, and Johanna Thorblat, who is the President of Operations in Sweden. We are very proud and happy that we have been able to grow this business and we still have more growth ahead in 2026. Very pragmatic and thoughtful expansion. And behind there is a five-kilometer, but it is a total length of seven kilometers, five-mile dam. It is the largest dam in the Western Hemisphere. It is able to generate about 14 gigawatts of electricity, half to Brazil, half to Paraguay. So we recently came up with our production in January, and that was Bitcoin produces a 191% year-over-year growth. Even though the difficulty went up, we have been able to maintain this substantial growth. And it is helped us with Bitcoin coming off over the past four months because we have these economies of scale. We have also been able to drive down our fleet efficiency. And when you see joules per terahash, that really is the amount of energy that you have to pay for that is running those machines and how if you went back the ASIC machines, how we fuel efficient. And it is really remarkable ten years ago, it was above 300 joules and now we are down with, like, Moore's law. It is only 17.5 joules. And the next generation is going to take this down to 11. So it is able to manage if you have new chips, you are able to manage the halving that takes place in the Bitcoin ecosystem. And so we are more than 2% and we are happy with that. Steve Jobs had this wonderful speech. And in that speech at Stanford, he said, you cannot connect the dots looking forward. You can only connect the dots looking backwards. So if you have to trust that the dots will somehow connect in your future, it is important that you look back. So let us look back at some of the dots that would happened to the Bitcoin ecosystem the past four months. On October 10, called 10/10, Bitcoin knockout, this is a total crypto market cap fell at $350,000,000,000 because it is alleged that is the Tyson punch, but Binance had a faulty algo that basically triggered wrong accounts whatever and they blew out $19,000,000,000 worth of Bitcoin. And this knocked off and created a contagion. What I did not see it in front page of publications. I heard about it. I thought it was more noise, but, actually, it has come out to be quite significant. And so I am going to show you how by connecting the dots. So October 10 and our CEO, Aydin Kilic, has been at the Bitcoin conference in Hong Kong. And this made the center stage. And there were lots of conversations and interviews regarding it. It has been dismissed by Binance. Naturally, would. But what I want to explain to you is that there was this flash crash. It was only $19,000,000,000. No. It is more than 10 times FTX blow up. It is really quite significant. And that triggers margin calls in North America. And then we have ETFs. The ETFs get amplified because almost $200,000,000,000 of institutional money rolled into a suite of different asset managers with their Bitcoin ETF. And they have been really hurt with a 50% decline. They just become they lose this thing called trust. And really, the fact find out that supposedly a hedge fund made $1,200,000,000 on this flash crash and other funds that were not supposed to $100,000,000 injection. Hurt, they got hurt, but Binance made them whole with there is no big positive amplification to all the ETFs that felt this stress. So this was a big conversation, and Binance comes out at the January and discusses it. But what is really important is that we have seen this before, and I know I have seen this in the futures market. Back in the early eighties. We have seen it in the gold markets, where major banks would turn around and spoof. But you would have a court system and a court system that go after those traders, and then they got charged. And they were found guilty. And then fines were paid by firms like JPMorgan. There builds trust. So it is that there just has to be a mechanism to if you have a rogue they call this algo, but I always ask why did that algo did not work on April 2? Oh, it is all because of Trump, and Trump went anti-China during that time period. I think that is just too easy to go blame Trump. Because on April 2, those algos did not cause this crisis that the magnitude that took place on October 10. 10/10. So that is what has happened. So I went back and looked at what happened in one hour with how fast it just turned around and hit. And it only grew that day. So in Consensus, Hong Kong this past week, Binance's Richard Tang breaks down the 10/10 nightmare that rocked crypto. But, really, does not explain to, what hedge funds and a lot of the chatter that was there that our CEO was listening to and giving us more color on it. It never made the front page of the Wall Street Journal, but Sam Bankman-Fried did. And this is about a factor of 10 times greater. So it is really disappointing, but it is what it is. And the CEO, he is worth $88,000,000,000 according to Forbes, and other people say he is worth 30 to 4,050,000,000,000. He has a brilliant mind, what he has been able to do. But it does not make sense that this is an unregulated combination where the exchange and this and the investment broker is combined. You cannot really do that. The New York Stock Exchange does not own money management. It is like merging the New York Stock Exchange with BlackRock, and all of a sudden, then BlackRock has access to what the trades are and the traders know what the fund flows are doing. That is the difficulty in this unregulated finance exchange, which says they trade trillions of dollars in notional value in the Bitcoin ecosystem. So I hope that there is better clarity on what takes place. But it is four months later, and, you know, it is interesting that they come with explaining at the January. And, usually, when these crises happen, it is about four months later that we get a bottom in the ecosystem. But what happened after this? It is interesting to me in connecting the dots, is Jim Chanos comes out and shorts the Bitcoin miner, short the Nvidia, short the HPC, the hyperscalers. There is too much debt. And Michael Burry is coming out. He came out a couple weeks ago again. He short this market, and it really starts to grow that this negativity on the ecosystem. And you can see all these headlines. Chanos warns of AI pullback. It is Bitcoin treasury companies, Michael Burry's latest argument. Chanos is going after Michael Saylor, shorting them. Michael Burry's same thing. And all these legendary people. And to me, I just looked at I remember commenting that there is something weird that there are just so many people that are all of a sudden negative on the AI but I know that the demand is so big and the ability to build out is going to take more time. So I do not see this level of negativity but the Binance breakdown of the ecosystem that flash crash was part of this. And I always loved this scene. It is from the Superman movie at the time, and it is basically saying where they have these monkeys that are out there making all the chat on Instagram and YouTube and X and and this is about Superman's credibility being destroyed. Well, the same thing happened out of nowhere. All this negativity was showing up on Instagram and YouTube and X. And so I just it was a short-term fuse, but you look for as a money manager, is this sustainable? Is it real? And it became the trade. Well, let us look and connect the dots. We go back to October 10, and you can see starting at October, the stocks have this big rise and CoreWeave goes through the roof. And we see HIVE is on a tear rising up, and Marathon has the bounce, and we see Core Scientific rallying. But then after October 10, starts this Binance algorithm. It is like COVID contagion to tech stocks. And you can see what took place with this domino effect, and this impacted Bitcoin prices coming off. And I still see every day on CNBC, regarding the negativity of the hyperscalers, and the Bitcoin treasury companies. There are these inflection points that happen. They last about four months, and then we have another cloud that happens at the same time. The U.S. Senate committee delays the crypto bill after opposition from Coinbase, Brian Armstrong. Why? It is because a lot of the banking system in America is not really cognizant of China's war against the U.S. dollar. They are just not aware that China has taken the BRICS nations and weaponized that trade so that it is not in U.S. dollars. It is in the yuan. And do not own one, enforcing and pushing that these central banks devalue basically, sell their U.S. dollars, and now we are seeing gold become the biggest foreign exchange in many of these countries' central banks. And we are seeing now the thought process of offering a reward mechanism, or would it be like a money market fund for stablecoins so that the U.S. government would be able to have their stablecoin and places like Coinbase, they would be able to pay, they call it rewards, but, really, to me, in the money management business it is like a money market fund. But it is very significant for the growth of mutual funds and then ETFs. This would be very significant for the crypto ecosystem and also for the U.S. dollar because we have seen the success of Tether. Tether's phenomenal that bad countries, and bad policies, like Venezuela, like Argentina, Lebanon. You can see that Turkey, the currencies are being devalued, and so people turn around. They bought Tether stablecoin, and they are protected with U.S. dollars. Now they have been the Tether gold coin basically has been growing at a phenomenal rate. So we could see hundreds of billions of dollars going into the success of what Tether has. But Tether does not pay a coupon, and therefore, it is not a money market fund, and therefore, it is not a security, so it is able to become a dominant, like a U.S. dollar currency that people can digitally move money all around the world without the big banks turning around and delaying the payments and saying they are AML, KYC concerns, etc., which is rightfully so. But it is becoming just so onerous to move money around, especially between countries, and repatriating. So if I am a worker here from Mexico and my family needs money back in Mexico, I can do it much faster with a stablecoin. I can much faster than any other way, and the repatriation of that money helps these other families in other countries. Well, along comes the stablecoin, and Coinbase wants to pay rewards. They want to basically make it is a money market fund. The banks do not want that because they want their stablecoin to get big before they turn around to allow a coupon, and they keep saying, what will cause a or a crash, people will leave the banks, and they will go to the stablecoins because they are paying a coupon. It will hurt banks. You know what? I listened to this, and it happened a long time ago. When banks were not able to pay the coupon in 1980, as interest rates soared to 20%, but money market funds were. And money market funds grew dramatically, which only helped the growth of mutual funds and equity funds. So there was not a big loss to banks. But what did happen is the S&Ls they were allowed to pay a higher yield, and the banks did like that, and they grew. Then you had an S&L crisis. So I think it was not a bank crisis so much as the banks do not want competition. They do not want this fintech and really Bitcoin is a spoke in the wheel of fintech. Coinbase is a critical spoke in that wheel of building fintech around the world. It is the way in my opinion, as a money manager looking at what is going on. We are just going through this process. I think that paying rewards will win, it will get through, and this will be the reprieve. But it is a battle between self-interest of the banking industry and lobbying groups and fintech growing.
Of this quarter. Now it was a really exciting quarter for us, and this is a photo from a recent visit to Paraguay. This is Minister of Foreign Affairs for Paraguay, Ruben Ramirez Lescano, who you may have recognized in the recent Status of Forces Agreement signing between Paraguay and the USA, with, of course, Secretary Marco Rubio. More on that later. Okay. So it was a record quarter for HIVE. $93,000,000 of total revenue. Of that, $32,000,000 of gross operating margin. Now while we did have a $91,000,000 net loss, that was mostly non-cash charges, $57,000,000 in depreciation. Of course, we brought on a lot of new hardware online in Paraguay. We scaled to 300 megawatts. And also a $31,000,000 non-cash charge on change in fair value derivatives, a multi driven by changes in Bitcoin price. On an adjusted EBITDA basis, $5,700,000 and ending the quarter with 481 Bitcoin on the treasury. So again, record revenue for HIVE, and really proud of the team. Let us jump into the next slide. On an annualized basis, we realized $385,000,000 ARR for the quarter. 879 Bitcoin mined, we realized 25 exahash of installed capacity, operating an average of 22.8 exahash for the quarter, as we had ramped up towards 25 exahash. And with the colder months, you have some temporary curtailments due to the very cold weather in the Canadian operations. New Brunswick can occasionally Le Chute, but very happy Paraguay was performing with nearly a 100% uptime. And of course, being in the Southern Hemisphere, when it is cold and there are cold snaps in the North, in the Southern Hemisphere, it is actually summertime. So being geographically diversified has its benefits. Ladies and gentlemen. 440 megawatts of operating capacity with an additional 100 megawatt PPA. We announced the signing of that late last year and long lead items such as transformers have been ordered, and we expect that to come online in September. Now on the Buzz side, another very solid quarter. Looks like $5,000,000 revenue for the quarter, keeping track to the $20,000,000 ARR. And we are on track to reach our target of 11,000 GPUs on the BuzzCloud by the end of this year. Currently, 5,000 GPUs will be adding 6,000 this year. As well that target of $225,000,000 ARR between the GPU cloud business and the 70% increase to our HPC ARR the $20,000,000 ARR will be at $35,000,000 ARR at the end of this quarter. And that comes from the signing of a two-year contract for our incoming NVIDIA Blackwell B200 GPUs. So we announced in November that we ordered a 63 node cluster of NVIDIA Blackwells. These GPUs are now fully contracted. We are receiving a deposit this week. And the GPUs will go live this quarter in March. Therefore be cashless. We will be ending the current quarter period in March 31 with $35,000,000 ARR again, which is a 70% increase from the current quarter or reporting quarter of December 31. So huge news. Darcy Daubaras and the Buzz team have done a phenomenal job. And I also want to point out that this is a very nimble, agile, CapEx-light strategy that allows us to scale the GPU cloud business with the infrastructure that BEL Fabric is bringing online and we have had very, very attractive single-digit lease-to-own financing on the GPUs themselves. So no CapEx upfront for the GPUs. The entire full value of the GPUs we are effectively leasing with a $1 buyout. So it works out like financing a car, with zero down and single-digit interest. So very attractive. Again, Craig and the Buzz team have done a tremendous job. And more great news to come. Please stay tuned. Let us hop into the next slide. We have a vertically integrated growth strategy. We have the land, the power, the data whether it is ASICs or GPUs. We build, we operate, and we optimize. So on the Bitcoin mining business this quarter, we realized $150,000,000 ARR, mining approximately 10 Bitcoin a day in our tier one data centers globally. In the HPC business, as mentioned, our new benchmark is $35,000,000 ARR in the current quarter. March 30 and March 31. And that will scale to $225,000,000. We are going to have a closer look at that very shortly, and that is a tier three data center strategy. Another nice Easter egg that we are providing this treat an update on is we realized $14,000,000 of value from our Bitcoin pledge. You may recall we had a substantial amount of Bitcoin almost 1,400 Bitcoin pledged at 87,000. What that meant was we put up our Bitcoin at 87,000 to buy our ASICs, which was for expansion to 25 exahash in Paraguay. Once that Bitcoin was pledged, at 87,000, that was it. However, we had the option to buy back the Bitcoin at 87,000 when Bitcoin rallied above that price. And so we did that and realized $14,000,000 of values, which is great news. And call that our dynamic HODL strategy. We are going to provide a bit more color, but I just want to clarify. There is no cash call. There is no obligation. There is nothing like that. It is a free call option is what it was. Locked in the price at 87,000. Any upside beyond that, it was at our discretion, our call option to exercise. We crystallized the $14,000,000 of value. So very exciting news.
And good morning, everyone, and thank you for joining us today. I will be walking you through the highlights of the quarter. 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, do provide investors with 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 three and six months ended 12/31/2025. Starting on the next slide, HIVE ended the 12/31/2025 quarter with 243,100,000 shares, 2,600,000 options, 13,600,000 RSUs, 3,000,000 warrants outstanding. I will now walk through our financial results for the quarter ended 12/31/2025 beginning with key operational and financial metrics. Q3 represented a quarter where we continued to execute operationally while navigating market volatility in digital assets. Our focus remains consistent. Disciplined capital allocation, operational efficiency, and cash-oriented returns on invested capital. Let us start with the headline financial outcomes on the next page. For Q3, we generated $93,100,000 in revenue, approximately 95% coming from hashrate services on our Bitcoin side and nearly $5,000,000 contributed by HPC operations, demonstrating the scale we have achieved as we continue ramping toward higher hashrate HPC expansion. Adjusted EBITDA remained positive at roughly $6,000,000 reinforcing that our operating model generates cash, despite cyclical pricing conditions. Operational output remains strong with approximately 1,184 Bitcoin equivalent produced, which is up from 719 in the prior quarter, supported by stable operations, strong uptime across our sites and the execution of our Paraguayan expansion. At quarter end, we held 481 Bitcoin on the balance sheet, reflecting our hybrid strategy of liquidity management and strategic digital asset exposure. These numbers reflect disciplined cost management, a focus on efficiency, and the benefit of our diverse global footprint. Now let us, on the next slide, take a look at how this operational performance translates into our balance sheet. HIVE takes pride in maintaining a healthy balance sheet. Turning to liquidity, we closed the quarter with approximately $14,000,000 in cash, and $14,000,000 in digital currencies, bringing total current assets to about $91,000,000. Current liabilities stood at approximately $52,000,000 providing us with a healthy working capital position. This balance sheet supports our dual growth strategy, expansion in Paraguay and scaling our subsidiary Buzz HPC while maintaining financial flexibility. Our strategy remains conservative on leverage and disciplined on capital deployment. With that context, let us 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 Q3 last year, our gross operating margin, which is calculated as total revenues, minus direct operating and maintenance costs and HPC service fees, increased to $32,100,000 in the most recent quarter compared to $5,300,000 in Q3 last year. In this most recently completed quarter, we are reporting a basic loss of $0.38 per share compared to a net income of $0.53 per share reported for Q3 last year. This reduction in earnings per share is largely driven by non-cash accounting impacts such as the accelerated ASIC depreciation tied to our expansion in Paraguay, unrealized losses on investments and digital currencies held on the balance sheet, and changes in the fair value of derivatives. Taking a look at our revenue increases year over year on the next slide, we generated total revenue in fiscal 2026 of $93,100,000 versus $29,200,000 in the previous year's third quarter. On a year-over-year basis, revenue growth was supported by higher production scale and operational uptime. Year over year, we saw a significant improvement in gross operating margin expanding from roughly 18% to about 35%. This reflects the benefit of our efficiency initiatives, though it continues to move with Bitcoin pricing and network difficulty. It is important for investors to understand that our margin profile is heavily influenced by external variables. Whether this be hash price, power costs, and market volatility, while internally, we continue to focus on controllable drivers like uptime, fleet efficiency, and SG&A discipline. Even in volatile market conditions, our goal is to maintain a structurally stronger operating model. We are focused on expanding the structural margin, not chasing cyclical upside. And if we zoom in to just the last two quarters, you will see our continued strength on the next slide. Comparing our current fiscal Q3 quarter to the previous Q2 quarter, we generated revenue in fiscal 2026 Q3 of $93,100,000 versus $87,300,000 in the previous quarter. A slight increase in revenues versus the prior quarter was impacted by continued increases in exahash capacity from Paraguay in spite of digital asset price movements and changes in network difficulty. Our gross operating margin decreased to $32,100,000 or 35% in the most recent quarter compared to $42,400,000 or 49% in the prior quarter's comparative. These quarter-over-quarter comparisons show margin compression relative to Q2 primarily reflecting digital asset price movements, and timing effects rather than structural changes in our business. Operationally, our facilities continue to perform well, strong uptime and efficiency metrics. What you are seeing here is market sensitivity. This is economics of the cycle, not a change in the trajectory of the business. As we scale toward higher hashrate, benefit from ongoing efficiency upgrades, we expect operating leverage to improve over time.
Thank you, Darcy. That concludes the presentation for today. We will now begin the question and answer portion of our call. Analysts on the line, if you could please click raise hand when you are ready with your questions. We will begin to choose and ask you to unmute. Our first question comes from the line of Darren from Roth. Darren, if you kindly unmute, the floor is yours.
分析師問答
Good morning. Can you hear me?
We can hear you. Yep.
Congrats on all the progress. Two questions, if I may. Just as you kind of you know, push forward on your HPC strategy, can you kind of maybe benchmark how you are thinking about the thought process of returns with AI cloud versus colocation, and maybe what specific metrics, whether it is payback period, return on invested capital, etc., that you are you are you are kind of making those decisions off of. Then second question, you mentioned in the, I think, release about New Brunswick, and you kind of mentioned specifically tier three hyperscaler. Is that put in there to sort of benchmark the level you want to build to, or do you actually have interest from hyperscalers? And I would be kind of curious about the level of interest there. Thank you.
Yeah. Thanks for those questions, Darren. This is Aydin here. The ROI is typically on the GPUs are approximately two and a half years. After direct operating costs, and we have a lot of experience operating GPUs. Going back to the Ethereum mining days, moreover, having had AI cloud revenue on our income statement for the past three years, we had 38,000 NVIDIA A-series GPUs A40s, A6000s, A5000s, A4000s. We are still running 4,000 of those cards and 34,000 of those cards we were able to sell at 80 to 90% of face value, and that is what those proceeds went to upgrading and buying H100s and H200s. The point is do not just talk about it, we have done it and so we have seen that demand ebb and flow in GPUs, but they have strong residual market value. And so where you are able to ROI in call it, two and a half years, but have these cards potentially be worth 60, 70, 80% of their value after three or four years. We have seen a huge uptick in demand for H100s. As you have likely heard. And so the demand comes in two ways. One is the hourly rate that the GPUs rent for goes up. But in turn, the market price for people purchasing the GPUs goes up because people realize you can get more cash flow from them. So it is an attractive business, I believe, because if you have the proficiency to do so, if you have the cloud technology platform, which we have and we have demonstrated, and there will be a lot more updates and exciting news to come as we bring more GPUs online and march towards that 11,000 GPU cloud target and hit that, you know, crest over that $200,000,000 ARR target. In the slides. We believe that it is an accretive business because the residual value that the a are aligned the GPUs plus you have GPUs that have strong residual value. So you come out ahead. So I think that answers the first half of your question. The second half of your question, we actually talked about the conversion of New Brunswick in the previous quarter. We bought 32 acres of land adjacent to the site. Engineering design has been advancing since then and so we have been in talks with groups that are interested. And so there are different ways to deliver power, power shell built to suit. And so I cannot get into any more specifics other than what we have already disclosed, but a sort of market rate of what gets us about a $130 a kilowatt a month for New Brunswick as a secondary. You have primary secondary markets. New Brunswick is a secondary market, and so that is where that run rate of approximately $80,000,000 ARR comes from. Do about 53 megawatts of IT load, but do stand by for updates. As we advance our designs.
Does that cover it all for you, Darren?
It does. Appreciate it. Thank you. Next, we will go to the line of Fedor from B. Riley. Fedor, please unmute. The floor is yours.
Thank you very much, and good morning, good afternoon to everyone. I wanted to just, like, ask about current breakeven price for Bitcoin mining operations, assuming all in cost to mine not only power? And, additionally, I would like to understand how Bitcoin and current levels influences your capital allocation decisions for AI and infrastructure? And if you could outline your expected CapEx spending over the next one and or two quarters with any detail on the split between mining and AI HPC investments, that also would be super helpful. Thank you.
Yeah. Definitely, Fedor. So I think it is quite evident that 2025 is the year of scaling. Our Bitcoin mining business, having brought on the 300 megawatts in Paraguay, scaling to 25 exahash. So that reflects a lot of capital deployment in that business. Unit. And what you will note from our investor presentation, this that we just debuted and, of course, last quarter, this year, 2026, our focus is on scaling the HPC revenue from $20,000,000 ARR to $225,000,000 ARR. So for 10x, and how do we accomplish that? Expanding the cloud, from 5,000 GPUs to 11,000 GPUs, which in my section, was detailed growing that revenue from 20 to $140,000,000 ARR. And then, of course, bringing on the conversion of New Brunswick to tier three HPC for hyperscale colocation, which at a $130 a kilowatt 53 megawatts of IT load gets you to about $80,000,000 ARR. So directionally, you can see where the capital deployment is being scaled. I do want to take a moment to acknowledge though that with OEM vendor financing on our GPUs, we are able to get lease-to-own. So effective equal lease payments over thirty months with a $1 buyout, so effectively a finance, with single-digit interest rates which is very, very attractive. Nothing funky like some of our peers have done with pref shares and warrants and all this, you know, convoluted mezz financing. It is just very attractive. And once we have been able to scale that GPU cloud business course and with Bell AI Fabric Canada, that data center capacity we are building the cloud colocated premises with Bell. So, again, that allows us to operate a CapEx-light, high margin GPU cloud business. And so we do have the 100 megawatts in Paraguay that we announced, and we announced that PPA late last year. And so long lead items have been ordered the substation, the design. So that is a long tail project because you know, of course, Bitcoin mining economics right now, we are looking at 30 to $35 hash price. So we, of course, are proceeding, very carefully. But what I do want to point out is just remind everybody that we had our recent press release where we sent where we are sending nodes to the large telco player in Paraguay. She could do a proof of concept for HPC AI.
Thank you all for the time. We have got time for two final questions. Mike from Northland, I know you have had your hand raised for quite some time. If you would kindly unmute. The floor is yours.
Yeah. Hey. Thanks. First question is just for Aydin. If your OEM financing is for three years, can you talk a little bit about why you are signing two-year deals that mismatch? And then secondly, for Darcy, could you help us think about depreciation expense the next couple quarters?
Because your payments are less. So you cash flow better. Mike, and so we know that these GPUs have great residual value in the market.
Yeah. On the depreciation side, I think you can take a look at what we have got in for Q3 right now. For the nine months. As we have noted, there was some catch-up depreciation in there. So if you sort of take the incremental amount that you have got from sort of Q1 to Q3, you can probably take that as running forward. Through Q3, we had all of our ASIC equipment up and running within Paraguay. So that is the best driver moving forward.
Excellent. Thank you. That concludes our Q&A session for our Q3 2026 earnings call. Thank you for joining. We look forward to sharing more exciting announcements very soon and speaking to you again soon.