HIVE Digital Technologies Ltd. (HIVE) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to today's webcast for HIVE Blockchain Technologies. My name is Holly Schoenfeldt. We are happy to have you here today to provide a corporate update. On to Slide #2. I will briefly mention disclosures, which you are welcome to read in full once the presentation is over and posted. Except for statements of historical fact, this presentation contains forward-looking information within the meaning of the applicable Canadian securities legislation. This is based on expectations, estimates and assumptions as of the date of this presentation. Now, let's move to Slide #3. I am pleased to welcome today's presenters, Frank Holmes, Executive Chairman; and Aydin Kilic, President and COO. Now, on to Slide #4, I would like to hand the presentation over to Mr. Frank Holmes. Frank?

Thank you, Holly. As you can see, the DNA of volatility I always like to talk about because investors have to -- and speculators understand, it's like hard counting. And it's just to recognize that every asset class has its own DNA of volatility over 1 day and 10 days, and they're different. and the S&P and Gold are the same over 1 and 10 days. 1%, that means 70% of the time, it's a non-event for the S&P and Gold to go up or down 1%. And for 10 days, it's up or down 3%. However, as you go to emerging industries and companies like Tesla, daily, it's plus or minus 3%. This used to be higher until it became part of the S&P 500. But you can see over 10 days, it just jumps to 12%. It's actually greater than Bitcoin when you look over 10 days. And Bitcoin's daily volatility is 3%, Ethereum is 4%. MicroStrategy is a Michael Saylor's company, is plus or minus 5% on a daily basis, and HIVE Blockchain is plus or minus 6%. Over 10 days, we are the most volatile. We've always told shareholders this. We've always told investors this, that you have to try to understand the DNA and volatility to understand the risk. A lot of this DNA of volatility comes from the volatility of Bitcoin and Ethereum. And what we have seen is that if we have good news and Bitcoin is down that morning, it doesn't matter, it goes down. And if we have flat news or even negative news, it's not really material but it's just a boring statement, and Bitcoin is up that day. We're up large with it. So it appears to me that the quant funds are using a basket of these crypto stocks. They all huddle together, they run together. It's like watching kids play soccer, they all follow the ball and all of these cryptomining companies, HIVE included, follow Bitcoin prices. Ethereum follows Bitcoin prices. Ethereum is just more volatile than Bitcoin. So it's very, very important. And we don't control a lot of this. We control how we are building the business. That's what's really key, and there are so many shareholders that tweet and send in e-mails and we've explained this over and over. We don't control Bitcoin prices. We don't control Ethereum prices. What we control is how we navigate through these waters. Next, please. So a material statement that we made was that we -- the Board approved a 5:1 share consolidation from 411 million shares outstanding to 82 million shares, and is expected to take place around May 20, but I think it's going to end up being next week. Canada has a holiday, and so they have to wait until probably Tuesday that this will take place, when you'll get all the full details as they evolve and come out from the sort of the regulatory process between Canada and the U.S. Now, some shareholders have perceived that any common stock rollback is negative, but this is just not true. It is true when a company has no assets but a story and a vision, but they really don't have revenue. They don't have cash flow. And HIVE is very, very different. HIVE, in my experience in the Capital Markets, I remember vividly after 2008 and '09, after many companies, financial companies have been able to pay dividends again and buy back their stock, the stocks had fallen so much during that financial crisis that we saw Citigroup roll back their stock, AIG roll back their stock. Several companies, and we've seen GE rollback their stock. So rolling back the stock is really not a panacea for bad news if you look at history. Because it's going to be the fundamentals under the belly of this car if you want to think of it that way, how strong is the motor that's running and driving this car. So this rollback has also some things that take place now that it has fallen so much due to this crisis that's happened with this Luna Coin and the collateral damage of something like $60 billion. I mean, it's just a horrible [ white boat ], and the panic buttons and everyone is selling because of a 5-for-1 share or -- but all the crypto stocks have fallen, and the majority of them are single digit now PE ratios. And so I want to make sure you understand that consolidation of 5 for 1, there's regulatory rules to be listed in the New York Stock Exchange, and -- but we're listed on NASDAQ. Well, NASDAQ has its rules, too. And you get a warning if the stock is under $2 for a period of a couple of months. But if it goes under $1, it's a serious issue. You have a -- you'll get a letter to say you have to roll it back. So it's something I don't control, management doesn't control the Board doesn't control what Bitcoin has done, and it doesn't control that people capitulate and sell out the stock to 2.5x cash flow. It's just external issues, the external factors. What we have to do is navigate through this. Next, please. So this is the 14-day relative strength index, a 10-year period for Bitcoin. And Bitcoin, as you can see, often goes to over extreme buys and sells. And it's become overbought, as you're counting here over the past 10-year period. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 times. So it's become overbought in these short periods of time, and at the same time, it's gone to oversold. And oversold has not been as often, but you can see, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 times, and that's where we are now. And this is basically saying that mathematically, the odds favor that over the next 14 days, you're going to get some news, it's going to give you a turnaround and a balance. I hope so. And it sort of now appears that if it does, that will be just as we roll back the stock 5 for 1. Next, please. At its peak in November, the entire crypto market was valued at $3.1 trillion. I just talked about Luna, and this just gives you an idea that this seems to be closer to that cathartic wipe out, but according to the data from CoinGecko, a company that aggregates crypto data, on Monday, it was down to $1.3 trillion. So we're talking about close to $2 trillion has been wiped out of the crypto ecosystem. And that's material, and that has driven down the coin over 10 years down over a standard deviation. Next, please. HIVE moves in a very similar pattern, but HIVE has only been around since 2017, not 2012. So this is a shorter period, but it's using the same type of mathematical data that is available on Bloomberg. And you can see now that we're extremely oversold, and that historically is a buy. And you can see here that many times, it's been way over bought, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 and buys are 1, 2, 3, 4, 5, 6, 7. And the worst rate now is now, so this doesn't suggest that it's probably the worst is as near to where we are today. Next, please. One of my favorite examples of this where a rollback helps the company was Barrick. And Barrick used to be called American Barrick, and the brokers firm that I was a partner with in Canada at the time were the principal market makers in American Barrick. And American Barrick made an acquisition in Nevada and had they also made an acquisition in Northern Ontario, when they bought the Camflo operations. They got a great CEO, Bob Smith. And this is a company that said we're going to go to the U.S., but we can't be a penny stock. So you can't be a $1, and so they rolled back the stock and the stock, which is interesting what I'm trying to share with you, it slowly started to climb because they had a major discovery. And they're going to be increasing their production over the next 10-year period. And what this visual is trying to show you that a couple of years after the roll back, the stock is up fivefold. Price of Gold, though is going up. So you say, because Gold has gone up. However, Gold peaks in 1988, and it continues to fall. It falls all the way to '93. But during that period, if you look at this visual, you can see that Barrick had climbed 30-fold after first stock split. Now, it took a long period of time, but still that's a serious amount of money to make as a shareholder. So there are so many case studies that show you that when a company has great assets, has growing revenue, growing cash flow and it's going to get the sort of institutional flavor which HIVE is going to go through, I think the odds suggests that it can trade higher. But still it's going to predominantly, right now, all the crypto stocks are going to be following crypto because we're a young industry and Gold is a much older industry, much seasoned industry. So when you have a new industry, you just have more volatility. That's just the reality of it. Next, please. HIVE Marathon and Ride correlated between 85% and 90% of the time with the Grayscale Bitcoin Trust according to Dennis [ Bocos' ] work and doing a rolling analysis. And this just gets validated if we had a chart showing you how they've all been falling this year, you would see that they all are clustering in the same direction. Next, please. So who's building the company for you, and there's some great news we're going to share with you. And it just amazes me that people think that even with this great news, Mr. Market is much bigger when the sentiment is so negative. So here, we have the leadership team. It's myself, Ms. Darcy Daubaras, our CFO; Ian Mann is the President of Bermuda Operations, also a Director; and you have Aydin Kilic, who's the President and Chief Operating Officer; and you have Johanna Thörnblad, who is the Country President in Sweden. Next please. Some big milestones in '21, and we got listed on NASDAQ mid part of the year. And that's as important because being -- you do not want to be a penny stock and perceived as one being listed on the NASDAQ market. We made the acquisition of GPU.One and welcome the new Chief Operating Officer and President, Aydin Kilic. So that was powerful for us because we basically bought assets inexpensively, we have built out a beautiful campus of buildings, Building #3 is completed in New Brunswick, and it went from 30 megawatts to 50 megawatts, and moved away went from 20 to 30 megawatts. We had one exahash of Bitcoin mining last August 2021. Next, please. So milestones for 2022. This is important, where the growth is and what we're doing. So new strategic contracts signed by Blockbase, Barrage, Boden Business, Compute North and New Brunswick Power. Plus, other significant ones and probably that has for growth has been Intel, and Aydin worked so hard on that. I'm going to let him share the glory of that transaction. Exahash, we had 2 exahash bitcoin mining and 6 terahash of GPU money. The Intel deal of 1.8 exahash or ASICs, Aydin can go in more detail in that. Next, please. Well, that's a big picture, a big happy day. The milestone, getting listed on NASDAQ. Next, please. Momentum. So what we have achieved in the past year for shareholders, and sometimes shareholders see there's big dilution. There really isn't. If you compare us to the other crypto mining companies in the past year and the past 2 years, some of these companies have gone up tenfold, increased our number of shares outstanding. We have been very judicial, and it shows up if you use the cash flow return on invested capital model. If we were so dilutive, we wouldn't be showing the highest cash flow returns on invested capital under share basis. And it's because we've been able to grow the momentum over the last 4 quarters for Bitcoin. Next, please. Bitcoin mined by HIVE year-over-year increases fourfold. I mean, I think this is very significant. But if we're producing all this Bitcoin and Bitcoin is falling, we're all going down with it. Next, please. This is a research by Cantor Fitzgerald, and we were proud of that because it basically showed when this was done several months ago for, I guess, year-end data, HIVE is the one with the biggest growth. Next, please. This is a total equivalent of Bitcoin mining in 2021, including Ether conversion to Bitcoin. And as you can see, self-mine crypto production of public companies, the leader is HIVE. So the -- running the business and building the business, we have done an outstanding job for the shareholders. But the external forces or crypto unwinding, we just have to go and weather through that storm. As you can see, you have right, bit forms on this visual, but we've done a phenomenal job in production. Next, please. So Coin analysts I have a lot of respect for, [ Ahmed Kaiser ] with FSA valuation model. It's a cash flow with sort of invested capital model. It's a quant approach out of the whole advisory [indiscernible]. Chicago has bought it by Credit Suisse. So I know that this whole -- this model, because I found it very, very helpful in looking at companies. And this is assuming that HIVE has rolled back on the 5 for 1, and we would make the stock worth $30. And so you can see here that the entry point to achieve the required return was 12.46%. More important is there's lots of upside when you compare us to all the Canadian companies that run this data bank, we're in the top 1% for these high cash flow returns on capital. And when you have high cash flows return in capital in an industry, you have the potential of going to a re-rating. And I'm hoping that when this market stabilizes, we will see this take place with HIVE and the re-rating so it has potential for the upside. Next, please. Simply Wall Street comments on HIVE's PE ratio. It's used by -- you have in finance, it's used on our iPhones, and so it has a broad reach. And this is HIVE Blockchain Technologies maybe setting a very bullish signal to the market with its PE ratio of 4x since almost half of -- all companies in Canada with PE ratio greater than 13x, and even PE ratio is higher than 27x are not unusual. And when you take a look at data centers, because that's really what we manage and run, many of them are trading at 10x free cash flow. So that would suggest that HIVE trades substantially higher as a data center company. Next, please. I've been in London, England, and I'm looking at this as I met Anthony Powers. He did this presentation and basically as an equivalency mine for breach exahash, and he compares all the companies equally. And as you can see, we're ranked #1 in our performance. You can see all the dates for this past year. Next, please. So what I want to try to point to investors is that you get two -- there's two parts to the sort of comprehensive income. And income, the two parts are operating income from your business, and then you have investment income. And you basically have to do mark-to-market on your holdings each quarter, and it could be up or down. So what happens is that we're holding all this Bitcoin and Ethereum, and that has an asset base that's worth $100 million for simplicity and then it can easily go up or down 25% in a quarter -- in any quarter, as you saw earlier with the volatility was over 10 days. So it's trying to understand that even though it's a non-cash, it's -- it shows up as a non-cash earnings, investment earnings. So that means you've not sold them. They're not realized, but they do have this mark-to-market function to be in compliance with GAAP and Canadian accounting rules also. So what we're seeing from that, that -- as you can see the algebraic, that there's two parts to income. One is operations, which was the heart of the business; and two is from investment in the business. So on the next visual, an impact on the dollar swing. And I think it's important because in April, we basically say that we had a Bitcoin of 2,832 coins. And if you assume a $30,000 valuation, that's worth almost $85 million. And the Ethereum that we're holding was 15,914 Ethereum, and when you value that at approximately $2,000 a coin, then we're talking about $31,828,000. So it's interesting that when you add those 2 numbers together, we're at $116,788,000. So when it moves up or down 25%, what is the impact? This is just a hypothetical, real -- so you can see that your earnings can go from $116 million to $145 million or they can fall to $87 million. And that impact, that swing, can play around with your earnings. But what I've always found is to stay focused on is your operating earnings. Next, please. So cash flow pro forma. This is an exercise that we've been working on, and basically, this is the back of the end bulk. It's not exactly, but we do know that on a rollback of 5 for 1, having 82 million shares outstanding with our terrahashes and our exahashes for mining Bitcoin and Ethereum, if Bitcoin is $25,000 and Ethereum is $1,500, and we're producing approximately 9 Bitcoin and 85 Ethereum, as you can see in the assumptions at the bottom. That highest cash flow from operations would be about $0.80, and scenario -- price scenario number 2 is, we see that Bitcoin has surged to $30,000 and Ethereum is $2,000, then we make $1.20 per share. And if it -- when it gets back to $40,000 for Bitcoin and $3,000 for Ethereum, highest cash flow is $2 a share. I mean, that's really impressive when you take a look at our model versus other people. And so far, touch on what we've been able to execute on our build out. Next, please. Now, we're expecting to expand our footprint by at least 60 megawatts of electricity by the fall. And so what would that do to our Bitcoin production? It would take it from 9 coins to 12.5 to 13 coins depending on the difficulty rates. Our Ethereum's forecast to stay on 85 points, but the Bitcoin is expected to be able to also grow. And once again, we're trying to show you that the Bitcoin is $25,000, and we still expand our footprint, Ethereum is $1,500, we will make $1 a share. Bitcoin goes to $30,000, Ethereum, $2000, we'll stay here to make $1.50. And if we take Bitcoin at $40,000, Ethereum at $3,000, which we were only a couple of months ago, our earning power is amazing. It's like $2.40, excluding the investment income, and the investment income running here for $40,000, it could easily be another couple of dollars. So this -- the earnings power and the leverage embedded in HIVE is better than any type of an ETF that's out there. Next, please. I'm busy marketing. I'm calling in from London, England, just finished the presentation at the Four Seasons Hotel. It was a great event. Many new institutions got to hear about our story. Next, please. Johanna Thornblad, our Country President for Sweden. There's a crypto conference in Barcelona, blockchain convention, and she'll be speaking at the end of June in Barcelona. Next please. Now, I'm going to turn over to hardworking -- our Chief Operating Officer and our President, Aydin Kilic, to give you an update on performance and infrastructure and some more granularity on the numbers I just discussed. So if he wants to go back to them, please feel free, Aydin. It's yours.

Frank, thank you very much for the introduction, and I will give the market an overview of our performance in infrastructure in addition to some insights into hash rate economics of the industry at large right now. So next slide, please. And actually, before I do that, on the note of upcoming conferences, which you mentioned Johanna will be at the new conference and, of course, here in London for the [ AI ]. I'll be in Boston in person presenting at the Stifel 2022 Cross Sector Insight Conference, so I'll be presenting in person, and Stifel is one of the leading investment banks in Canada. Those participated in our last raise, so very excited to be there and meet investors in the Boston area for June 7 tonight. Next slide. Okay. So April was a stellar month for HIVE. I'm going to give you a quick overview of the production. And right at the top, we cracked 2 exahash of pure Bitcoin mining recently. So we ended April with 2.15 exahash of Bitcoin mining. In addition to that, we ended April with 6.2 exahash of Ethereum mining. And April was a growth month, right? So we started the month -- we ended the month with more hash rate than we had at the beginning of the month as a virtue of some optimizations and -- that we add to existing infrastructure, as well as some additional rat space that came online. So very excited to crack that 2 exahash special with Bitcoin. Of course, on an equivalency basis, when you combine the dollar value as we equated daily in the month of April. Our hash rate is equivalent to having 3.4 exahash Bitcoin mining active, so that's another threshold that we'd be close, which is very exciting. And so the numbers are 268.8 Bitcoin were produced and 2,537 Ethereum were produced. Now again, when we talk about the equivalency basis, that was also equivalent to 458 Bitcoin in the month of April that was produced. If you think about that for a second, that's over 15 Bitcoin equivalent today that HIVE produced in April, so April was a very strong month for the company. Let's look at the next slide. And so here, we can kind of see how we stack up against our industry peers until you've got all the large-scale crypto miners presented. And so in the left column, of course, is a total hash rate, and then as we just mentioned, our equivalent hash rate in the month of April was 3.4 exahash where it's represented as 3,400 petahash. You sort of see where we stack up amongst our peers. And then you look at the amount of Bitcoin that was produced from each one of these companies. Again, on a monthly basis, the industry standard now is to by how much Bitcoin you're producing. And so again, we have the equivalency as we do have our Ethereum and Bitcoin operations. So denominated on a daily basis, U.S. dollar denominated, we produced an equivalent of 450 bitcoin in the month of April. And so when you look at that compared to the amount of hash rate that we had, we did about 0.135 bitcoin per petahash, right? And when you compare that to our peers, again, we emerge top-in class, so this is a trend that's been happening for months now. And so the reasons why we have the best Bitcoin for petahash in our class is because of our dedicated team of network engineers, coders, high-power engineers, electricians. We just did a maintenance on our substation where we're constantly around the clock working with our teams who are maintaining the network and ensuring that we're scoring in the pool, we always have peak connectivity. Scaling it up in a very large multi-hash cryptocurrency mining operation. Everyone on this list is -- almost everyone on this list is north of 100 megawatts. That is a lot of infrastructure, right? And so it's very different than running a small 1 or 2-megawatt operation. So when you scale like that, it's very important that you've got a good efficiency in around the clock. Coverage, and we do. We've got our teams in Sweden, Iceland and, of course, Canada, and we're synced up daily. So moreover, you look at the financial side of that. And on an annualized basis, you have revenue. We're only trading at 2.6x, right? So again, HIVE has got the best value proposition amongst our peers. You sort of see the median rate 5x multiple. Marathon, of course, is at a 12x multiple, Riot 6x multiple, and with HIVE, we're at a modest 2.6%. So again, the strong value proposition to. Moreover, when you see the strong HODL position that HIVE has. We've got over 20,000 Bitcoin in addition to that almost 16,000 Ethereum amongst our peers. So in my opinion, I think the company is -- there's been a strong sell-off and the company is undervalued, which certainly rings true when you look at our hash rate performance as well as our market cap amongst our peers. Let's have a look at the next slide. So we've talked a little bit about how we [ fare ] amongst our peers. And I know Frank already covered these slides, but I also want to just shine some light on how this translates into dollars and cents, right? And so when we're producing, like we've got 3.4x a hash equivalent -- 2 Exahash per Bitcoin mining capacity. We're over 6 Terahash, that's 6,000 Gigahash of Ethereum mining, right? So we're big players in both markets, right? And so when you look at that, when you look at the cash flow per share, and as Frank mentioned, you've got the 5:1 share rollbacks, it will be about 80 million shares out. With where we are today, right, which is sort of the model -- this press scenario number 2, $30,000 Bitcoin, $2,000 Ethereum. It's a $1.20 a share, right? It's $1.20 a share. After the rollback, it's going to be a little under $5 a share, right? So you're seeing most tech companies have huge multiples from fundamentals, just as a company, never mind being a crypto company, which is so often based on future performance and future hash rate. It's sort of about what we're doing today, like this is what we're doing today. We're doing a $1.20 per share today. And the thing is not -- it wasn't too long ago when Bitcoin was at $40,000, Ethereum was at $3,000, right? So if we kind of look at -- just flip back one page, figuratively speaking, I mean, then it was $2 a share, rate, $2 a share. And the high share price at $4, $5 after the consolidation, you can see how attractive the multiple is from a spent cash flow today, not based on future multiples, not when you're -- not to Europe, this is all today right? And even with the concerns and sensitivities about what's been happening in the crypto ecosystem, even if you drop down to coin price, which, of course, I'm hoping that Bitcoin goes at $40,000 from $25,000. Even at $25,000 Bitcoin, it's still $0.80 a share based on today's cash flow. So we're showing resilience and strength amongst our peers in the market thinking about efficiency that we have. We're also showing in first principles how much cash flow HIVE has generating today as a company. And so we will flip to the next slide. And we're going to talk a little bit about growth outlook now. And this is imminent growth that we're looking. I'm talking within the next few months here as we lead into the summer and fall is just on the horizon, so we're calling this our growing outlook. This is growth for infrastructure that we have. Like, I'm talking about New Brunswick going from 50 megawatts to 80 megawatts, right, like our building, our fourth building, is actually going to be commissioned very shortly here. We're talking about machines, ASICs that are on site today. This isn't stuff that's still being shipped Asia, and people worry about [indiscernible] supply chain. This is the final bolts, figuratively speaking, are being tightened, and our building is being commissioned, and the machines are going to be plugged in within -- we're talking a matter of weeks here, right? And so as, of course, it's a lot of infrastructure, so this is going to happen in stages. But we're looking at our 2.15 exahash of Bitcoin mining capacity today will 3 exahash this fall, right? So that's a very substantive increase. It's almost a 30% increase just in the Bitcoin mining hash rate. As well, we've got some new GPU cards that we recently acquired, which will be getting plugged into our facilities in Sweden as well. And in future -- in subsequent slides, I'll show you all about our incremental infrastructure expansion. So we're very excited. And so moreover, when you saw it after the investing public, just to understand how the stacks against our peers, we're at 3.4 exahash today. And with infrastructure that we already own, doing on-site expansions, stuff that's within our reach, we can get to 4.3 exahash equivalent by autumn of this year, and so that's a 25% increase to our global hash rate, that's going to happen throughout the summer as we look towards our auto growth outlook. So that's very exciting. So that's a 25% increase for a company from first principles to be able to grow 25% globally. Our global operation, our global operating hash rate in one season, it's very exciting. And so on our next slide now. We see, again, what does that look like when we look at the cash flow pro forma, right? So now, even at current -- at today's crypto prices, it's $1.50 a share, right? It's $1.50 share. So after the 5:1 rollback. If HIVE is a $4, $5, our cash flow is $1.50 a share. And so it just goes to show you the strength and the fundamentals of the company. That's why I always emphasize about what's happening today? What have we accomplished today? How much are we producing today? And now we're talking about what's imminent, what's happening in the next few months. So despite a little bit of volatility in the market, we're still forging forward. We're being lean and mean, and we're incrementally and strategically expanding. And that's why, as Frank mentioned, we have such strong returns on invested capital. And again, if we certainly hope for a nice warm summer and a nice Bitcoin price at $40,000, $3,000 here, then we're talking to $2.40 per share cash flow price. Even with high stock at $5, plus it's only a 2x multiple, right? So very strong value proposition right now. As they say in the cryptos here, buy the dip, buy the dip. And what's unique about having a company like HIVE that has such a strong track record of building certain equipment is that there is some predictability here, right? We don't necessarily have predictability in terms of what Bitcoin prices going to do. But we have some predictability in terms of what HIVE as a company is going to do and this is why we provide these growth outlooks right now. Of course, we don't have perfect control over what's happening, and so we're going to zoom out and look at where we hope to be in the year that follows. So let's hop to the next slide. And so this is our growth outlook, which we recently published in one of our monthly mining update. And so in about a year from now, we should be at almost 4 exahash of pure Bitcoin mining capacity. And in addition to that, with our Ethereum footprint will be at 6.2 exahash equivalent, right? And if you think -- if you take a look at that, we're at 3.4 exahash equivalent today, right? 2.15 Bitcoin exahash pure 3.4 exahash equivalent. It's almost double in about a year from now, right? And so again, this is all based on contracted ASICs and contracted GPUs. Almost of the GPUs, the big order from NVIDIA that we announced last year, that order we've executed upon, we plugged in. That's why we've got over 6 terahash of Ethereum mined to date. And that's why we've got such a strong footprint. And just a quick note on that, right? I really want to emphasize where we're getting strong returns on invested capital. We've got such strong earnings per share. Think of for anyone out there who's a boater, right, or maybe you like water sports, you think of a boat with 1 engine, right? And like on a boat, right? And so when you think about a boat with 2 engines. A boat with 2 engines, you can put 1 in neutral and 1 in forward or 1 in reverse, and you can turn on a dime, right? And so that's the thing. HIVE is a 2 engine machine, right? We've got our Bitcoin engine and we've got our Ethereum engine. And so that allows us to be very resilient in how we deploy capital, and it allows us to turn on a dime, and this is how we make our money from Ethereum. When we can make a quick one we can make a quicker ROI, we can sell Ethereum in strategic advantages and then expand our Bitcoin mining footprint, right? So this is a very measured and well-thought of expansion process over the next year that we're very excited about. The next slide. And a big part of how we get there, of course, is the Intel deal. So we announced this deal recently, and it's very exciting. On a weekly basis, we're talking to their engineering teams, our contract manufacturer that's got a lot of experience working with Intel. We're actually going to be getting our prototypes, our working prototypes and working systems. They get asked all the time, well, we'll receive them very soon, and we'll probably share a little bit more on that once we've got them in HIVE, but that's incredibly exciting for our engineering team. Again, I always like to take a moment to talk about highest technical and engineering team because they're the unsung heroes of our operation when you look at our high efficiency, right? Again, working around the clock wheel in our teams in all our operating jurisdictions. And so we're very excited working on the product optimization because Intel has provided a very elegant reference design. And it's just so wonderful working with a company like Intel. We can do thermodynamic model brainstorming, we can optimize whether we want to do unique things with our APIs. We can just do things that other companies, other cryptominers can't because we are actually -- we have a supply agreement for the ASIC chips and then working with our contract manufacturer, we can optimize and customize and come up with very elegant solution. So we're very excited about the product that will be hitting our rack space later this year, and that's a big part of us getting to the over 6 exahash equivalent in April, and we're expecting our [indiscernible] produced [indiscernible] to be coming as well as this Autumn. So it's a very, very exciting time, and that's about as much I could share without getting into the secret sauce. So next slide. I talked a little bit about what HIVE is doing today, what we're doing in the near future and what the year ahead looks like. But there's been some volatility in the market, so what I want to do is, just for the broader audience out there, this is categorical. This is just sort of like what is cryptomining looking like right now. So we've got -- HIVE, we've got operating costs generally between USD 0.03 to USD 0.05 per kilowatt hour. You've got some of our facilities, have indexed power costs that can fluctuate as do many crypto miners. But on the plus side, we also hedge electricity. So one thing in Sweden, we hedged 20 megawatts per power to enhancements because we've got a very elegant [indiscernible]. We are actually qualified, this was actually discussed on our meeting today. We're getting paid $0.05 a kilowatt hour, and our hedge cost is $0.25. So we're actually, in Sweden, getting paid to mine Ethereum. Right now, just where the demand response economics are. Now, these fluctuate with time, but it just shows you, with careful force and strategic planning and having a very thoughtful energy strategy, again, green clean energy, renewable energy, you have these very nice moments in time where we're actually being paid. So if our cost base is $0.025 in Sweden on 20 megawatts. And we're getting -- we're gaining $0.05 revenue from our demand response, I think we're getting paid $2.5 a kilowatt hour to my -- and plus you have the Ethereum mining revenue, right? So -- so that's actually just -- that is what I would call unique to the HIVE story, but this is just broadly for the market to understand. Right now, if you're running a cryptomining operation, and you brought new generation here, right? So again, maybe I am talking -- I am focused a little bit on HIVE here because we've got -- we've got really great petahash per megawatt. We're doing about 25 petahash per megawatt right now in new front, which you kind of -- but if you're buying the new generation K6, right, N30s, N31 has even, obviously, S19s, you're going to be getting about 25 petahash per megawatt or if you've got all S19 Pros, maybe you're 30 petahash per megawatt. Once we obviously have our Intel chips plugged in, will be even higher efficiency. But right now, this chart is very simple for the market. If you're doing about 25 petahash per megawatt, okay, and you've got an operating cost of $0.05 all in, your Bitcoin breakeven price is $12,500, right? And so Bitcoin's at $30,000 right now. We know this. And so it just shows you how much margin there still is in mining economic levels. Now, when you're in a fortunate position, if you've got $0.03 of power, $0.03 operating cost, all of a sudden, again, I got know to about today's current difficulty doing about 25 petahash per megawatt. It's about $7,500 Bitcoin breakeven price, right? So this just shows you that despite it being -- again, I wish Bitcoin was at $40,000, $50,000, $60,000. When you've got a dialed-in operation, you understand your hash rate economics, you deploy your capital, this is how you can still operate profitably, right? And so it's being mindful of your operating costs. Now, if you do have expensive months or expensive days, I guess, when you got index pricing. Even at $0.08 a kilowatt hour, you're still doing, your Bitcoin breakeven is still $20,000, right? So you have $30,000 bitcoin, you're still 50% profit margin over your cost base, right? Even despite current mine economics, you could see that there's still a good cushion in terms of our profitability. Next slide. And so we've talked a lot about hash rate, and so now I'm going to talk about the other side of that sort, which is the megawatts, right, which is our infrastructure, which we're very proud of to be a company. We own and operate a lot of our own infrastructure and build it as well. And optimize as well, whether it's kind of upgrading in PDUs and breakers and figuring how to -- like we're in a hash rate commodity business, right. How efficiently can we translate the jewel into a hash, right? That's our thesis. That's our operating thesis of the company, one of our operating thesis. So let's -- let's take a look. This is what the global snapshot is, okay? So today, we're at 124 megawatts, okay? 15 megawatts in New Brunswick, as you know. 30 megawatts in Quebec, which is Quebec, our [indiscernible] facilities has been the work horse], it's been running for years now. [ Rami's ] the [ Sargent Rambo ]. Very diligent and, of course, our wonderful team in New Brunswick. And then, of course, our entire Nordic team as well. So it's 124 megawatts we've got running. And again, I was talking about how we've got our expansions very near term. So we've actually got a couple of incremental expansions in Sweden, another 3.5 megawatts. So that doesn't sound like a lot, but when you're plugging in GPUs. GPUs are very profit dense per megawatt, right? You've got a lot of -- a lot more hash rate of 1 megawatt of GPUs and 1 megawatt of ASICs, right? The CapEx is priority to use, but again, that 3.5 megawatt increase in Sweden actually does bump up our global hash rate nicely. And of course, when Building 4 comes online, which is actually I'm getting daily updates, we'll probably do like a nice little update, but that will be another -- that will bring us to 80 megawatts. So 124 megawatts [indiscernible] almost 116 megawatts in the very near term. It's very exciting. On next slide. And just for the investing public, you may not be in Canada, but -- or anywhere in the world. This just shows you kind of where our facilities are. In Canada, cool drive climate, of course, you've got the politically stable jurisdictions. And that's kind of what's really nice, and it's been such a great home base for our crypto mining operations. And of course, we had CBC News do a feature story on us on December last year when our third building was commissioned, and there's [indiscernible] our construction guys on site. Again, these are infrastructure, industrial scale. Next slide. And so here you go, you could actually see this photo is older. We see that nice aerial shot, that's where the fourth building is going to go. You can't see the first building in this particular aerial photo, but it's a [ fallout ] being lean and mean, and we have the very elegant passive design [indiscernible] design. So yes, in New Brunswick, we're very excited. We have secured -- just again, in these energy markets, having access to green and clean power, it's a resource. It's a very attractive resource, and so we're fully contracted and secured. We actually -- we can consume up to 80 megawatts. We're able to actually broaden as much. We have a lower limit on threshold. So this is not a fixed PPA that some companies can template. They are on the hook. They have to use all 80 megawatts take or pay. No, this is not that. We have a lower limit threshold, it's actually less than half of it, under 40 megawatts. And so we could very strategically fluctuate our demand to optimize our economics. Although generally, of course, we are running [indiscernible] in as many machines. But it's nice when you buy a favorable contract with a national power utility company. Next slide. And so of course, priceline, again, just showing the global expense. That's the lovely Ms. Johanna Thornblad visiting one of our or facilities. We've got 2 facilities in Iceland that we operate out of, 5 megawatts a piece. Next slide. And of course, Sweden, we've got 2 sites. We mostly talked about our big 30 megawatts site, but we've got a smaller 4-megawatt in Sweden. And so our troops out there, our strategic partners that run that facility for us do an absolutely phenomenal job using local hydro. We've got a great relationship with the national energy provider in Sweden, where we have -- we're the biggest client that has demand response with Sweden, believe it or not, is very exciting. I'm at the power provider in Stockholm when I was there a few months ago. Next slide. And you notice that we're in -- we're in 3 different countries. And even within each country, we have numerous sites. So we actually took a helicopter ride last year, and we were flying over Sweden, looking at sites, old mills and other industrial sites. And there's -- of course, there's our -- Marion, who runs the show in Sweden with Johanna in a very beautiful photo. You can see how clean that aisle is. It's very -- that's why I'd like to take a little bit of time to highlight the quality of the infrastructure that we operate. Again, when you look at the numbers, you say high [indiscernible] Bitcoin for exahash in the industry [indiscernible[, we run these full clean data centers. So next slide. And it's all about ESG, right? I mean, HIVE was the first ESG cryptominer before it was cool. We've got very diverse leadership team, and of course, using green and clean power. So HIVE is really sort of -- we're very thoughtful in how we do business, and we like to participate in our communities. Let's see the next slide. And again, [indiscernible] is having 100% green energy. And again, as we mentioned, all of our jurisdictions, we've got cool, dry climate. And I will also add political stability as well, which is nice. It goes without saying you need definitely a faster Internet connection. We don't talk too much about our HPC project. It's incubating and we're making some great technological advances there. More on that in the future. So we're always looking at making sure we've got strong Internet connections for future HPC project load. Next slide. And this is actually something we need, again, we talk about caring for the community in a working, for example, in voting. We're in discussions to do a greenhouse to grow tomatoes and cucumbers, right? And so these are real site projects that we're undertaking. And we want to show like ultimately, like, again, HIVE being the first cryptominer with ESG before it was cool. We're looking at stuff like this today. Maybe in 5 or 10 years, all our cryptomining operation is going to be having [indiscernible] for their heat. And if you're not doing that, are you sort of falling behind the curve? Well, here at HIVE, we want to be ahead of the curve, right? And it's always experimenting. Not every R&D project works out, but that's why it's researching, right. And it's being thoughtful, and it's really trying to set the bar higher to be a conscientious and thoughtful citizen of crypto world. Next slide, please. And again, so keep recycling. Even if you're not growing plants in vegetables, you could be recycling heat. So quite literally, we do use the heat from our data center in the [ chute ] to heat the adjacent industrial building. Which is actually a pool manufacturer swiming pool manufacturer company and where we are now, and so we've got a great relationship with them. And so again, we're talking about using that ancillary heat, in this case, to warm another building, right? So we use Bitcoin and Ethereum or energy-backed currencies, right, which provides security and robustness. And I know Frank has talked a lot about that. But I come from an engineering and physics background, and so we think about this as energy and optimizing the uses. So we've optimized the hash rate. We've talked a lot about that. And the conversion of that and what do you do with all this extra heat energy right now, so we're always trying to think. So very cool little project. It's always makes the shine some of these initiatives. Next slide, please. And of course, community involvement. Everywhere Frank goes, big thumbs up and smiles. Frank was very happy to see the HIVE logo as we all were on center of ice in Boden. And whether it's looking at educational outreach programs, sponsoring the local sports teams, for example, we give free tickets for the youth. It's all about, again, being good citizens where we do business, community engagement, right? So we're always open to helping. Next slide, please. And so also, it's about getting the message out there. So Michael Saylor does a phenomenal job getting out the Bitcoin Mining Council. And so all the big players, all of our peers were part of that group. They use very thoughtful analysis, and actually special shoutout to HIVE's marketing team in U.S. Global that took that recap and translated into 3 different languages and did a 3-minute exact summary, make the information more accessible. Let's look at the next slide. And of course, here are all our social media handles, like and subscribe. Definitely look for the press releases, of course, and we've got to really fun Twitter account as well, a big shoutout to the marketing department. Thank you so much, everybody, for tuning in. And keywords, let's stay lean and mean, and crypto is the future. And no one ever said it was going to be easy, right? So thank you for your confidence, and we look forward to powering through this year at green and clean and lean and mean. Take care.