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

[Audio Gap]. On slide no 2, I would like to briefly note disclosures except for statements of historical fact, this presentation includes forward-looking information within the meaning of the applicable Canadian and U.S. securities regulations. These forward-looking statements are based on expectations, estimates and assumptions as of the date of this presentation. On the next slide, I'm pleased to introduce today's presenters: Frank Holmes, Executive Chairman; Aydin Kilic, President and CEO; and Darcy Daubaras, Chief Financial Officer. I would now like to hand the presentation over to Frank Holmes, Executive Chairman for a macro overview. Frank?

Thank you, Holly. And investors and shareholders for living through an incredible roller coaster year. I want to give a macro recap where we've been and where we think we're going to go. And then Aydin is going to get into the granularity of the operations and so much interesting opportunities for which we call blue sky potential. And Darcy is going to go through the financials and give you more color on it. So the DNA volatility is understanding risk. And it's so important that investors and shareholders or traders understand that one standard deviation means approximately 70% of the time, it's a nonevent for an asset class to up or down a certain percentage. And each asset class has its own unique DNA of volatility so goal pre-COVID was 2%, now it's 1%. And in fact, it's less volatile than the S&P 500. Bitcoin is 3x as volatile as goal. And you can see on the data, and it's actually less than Tesla. And MicroStrategy is much more volatile than bitcoin, more than 2x and high also the most volatile of them all. And I think part of that is that last year, we were mining Ethereum. And then we've cut over and we're mining just bitcoin, and we're positioned as we'll tell you in the story for AI. Next, please. So we're first to go public to September 2017 as a crypto mining company, first to develop its own ASIC mining rig first to buy or data centers first to be totally focused on green energy and now reusing that energy in addition to balancing the electrical grid. I've got a phenomenal team, and I'm so happy that I've turned over the CEO responsibilities to Aydin. He's done a great job. And I can say at the macro and stock strategy. And then we have Darcy Daubaras our CFO; and Johanna Thornblad who is right now in Sweden and Gabriel as our General Counsel. Everyone has been working 60 hours a week, sometimes in the crunch period, 80 hours. It's an incredible team and this shows up because when you look at us versus our peers, our revenue per employee is the highest of all of our peers. HIVE is a green energy focused in Canada, Iceland and Sweden. Sorry, this is looking at a greenhouse, another part of our unique strategy. And we've seen this, and we've done the due diligence, and this is a greenhouse that's in Amsterdam. And it is basically 6 football fields and it's using 2 megawatts of electricity only. Now these are the robots that are used to basically pick all the peppers, the red peppers, and our vision for Sweden is going to be cucumbers and tomatoes and peppers. But it's really remarkable what you can do with robotics. Also part of our ESG strategy is to be involved with the community. We have sponsored the hockey team and the HIVE Arena, and we're donating money each year, and it's also creating more great hockey players. There's 12 teams kids, little kids that are learning how to play. And this area of Boden has delivered something like 3 NHL superstars that have won Stanley cups. Next, HIVE's vision to provide food security to local communities and the co-creation project ag and food sustainability. This is really important, especially after coming out of COVID. And this will also, the recycling of that electronic electricity from our data center to go into heating a 90,000 square foot facility is just remarkable. And we actually could all -- have said we create a carbon credit. Next, please. HIVE performance bitcoin and gold and S&P year-to-date. But remember, it's extremely volatile. It moves at Bitcoin. We're up 221% this year and spot gold is up, as you can see, modestly 4%, S&P is up 14%. Bitcoin's up awesomely at 84%, but HIVE is more than 2 to 1 year. So the BTC hash rate, the BTC price, something that's really been odd, but it's a challenge that we've had to go through last year. Bitcoin prices falling. Scandals galore and the difficulty continues to rise. And this is a visual showing that. So that means that there's more people competing for this same 6.25 bitcoins every 10 minutes, and that's just one of those parts where we've been focused on how do we increase our hash rate so that we can remain at 1% of the network. Our goal in the next 3 -- sorry, 6 months ago, I will give you more granularity, but it's basically to take us up 6x a hash, which would be 2%, but I think as the difficulty continues as Bitcoin rises, is just the reality of more people wanted to participate in mining bitcoin. Now interesting, Bitcoin has been the dominant leader. It surpassed 50% of all the alt coins, many of them have been thrown off of exchanges due to regulatory reaching and pronouncements, et cetera. So Bitcoin is no doubt is the leader of the pack and Bitcoin is not mired with the proof-of-stake, it remains a dominant digital asset focus as proof-of-work. I love this visual is just the [indiscernible] sheet spiral, and it basically shows you that every 4 years, the halvening is going to take place and Aydin is just going to give you more granularity on our strategy to manage this risk. So not only if Bitcoin is not at 60,000 this time next year with the halvening, then you'll start to lose money. So the thought process of Bitcoin is going to rise, and you have to have the most efficient machines and if you buy any new machines, you got to be so careful that you're going to get your money back. Capital structure. We're very, very frugal in what we do with options and with our issues, and we have about 84.2 million shares outstanding. We trade on the TSE. We trade the TSV Ventures, the NASDAQ and the German exchanges. So this is another visual we're talking about Bitcoin, as you can see, we follow with Bitcoin, and it does impact your revenue as revenue has declined because bitcoin has declined, one of the also significant factors here is the ethereum, the impact of the Ethereum and it basically left from the -- you can see here on the QT of '23. That drift is falling to 14, not only Bitcoin prices falling, but Ethereum went to proof-of-stake. This is a nicer cleaner visual for that, and it shows you that Bitcoin mine high per quarter, it hit $8.58. And it includes the equivalent of the theory and being converted to Bitcoin and going into Q3 last year, at the end of September, that revenue decline and it declined again as bitcoin prices fell dramatically over the FTX drama. We were able to increase our hash rate and so we were able to increase our Bitcoin production. Well, what I want to show you here this little swirling tornado is that everything is basically trading in step with Bitcoin and what's interesting is that all these companies have different fundamentals, and Aydin is going to give you some granularity on the difference on the financials but they seem to have a quant model out there that they all move by the minute with Bitcoin prices and some correlate higher than others. But this is just a classic visual showing you that high correlates 86% of the time in [indiscernible], 96% of the time with BitFarms, with Bitdigital is 93%, HUD-H 94$, Marathon 83% and you can see that HIVEs correlation with Bitcoin, it's important to recognize that this happens in gold stocks is the price movement of gold that dictates the performance of the stock. But over time, we believe that the fundamentals will prevail. I've always believed that green and clean bitcoins would over time become more valuable as a digital asset because the supply is capped at 21 million bitcoins. And like Andy Warhol Art, when supply is capped and adoption expands over time, the value of his prints have gone up substantially. Now with the explosion in ordinals, we're experiencing new growth with special number [ satoshis. ] And this is showing you the innovation and Bitcoin or no ordinals, all that does is just that one of these opportunities in the Bitcoin network to enjoy more revenue as you're validating transactions. Now I'd like to turn the conference call over to Darcy Daubaras, our CFO, to give you an idea of where financials are. And then Aydin is going to give you much more granularity on ordinals and HPC strategy, where we're taking the company.

Now I'll be taking you through a snapshot of the 12-month year, looking at the most recent quarter also and the indicators for the year. Next slide, please. Because it's been such a tumultuous year, I'd first like to remind our listeners that our earnings are comprised of our operational earnings plus our investment earnings, which includes realized and unrealized earnings, a lot of which, especially this year have included noncash charges. Moving on to the next page. The mark-to-market is an accounting practice that involves adjusting the value of an asset to reflect its value as determined by current market conditions. The market value is determined based on what a company would get for the asset if it was sold at that point in time. Mark-to-market losses or paper losses generated through an accounting entry rather than the actual sale of the security. The swings in digital assets impact paper profits and losses each quarter. So our Bitcoin and previously Ethereum digital assets do generate unrealized gains and losses each quarter depending on the movement of the current underlying currency. It is important that investors understand the differences in operating earnings or losses in addition to mark-to-market paper gains and losses each quarter. Non-cash charges or write-downs or accounting expenses that do not involve a cash payment. Depreciation, amortization, depletion, stock-based compensation and asset impairments are common noncash charges that reduced earnings but not cash flows. During this current year, just finished, we took significant noncash charges, the majority reported in prior quarters as a result of the continuing bear market that we experienced during fiscal 2023 and continues, and these are required under accounting prescriptions. The first were impairments under IAS 36 on mining equipment of $70.4 million which are required due to the indicators of impairment that were present in the continuing bear market, significantly the decline in the Bitcoin price. In addition, a provision against deposits on mining equipment of $27.3 million based on an assessment of these deposits made on purchase orders and the expected delivery of the equipment. Also, with the overall bear market and the decline in Bitcoin and cryptocurrency prices in general, we experienced a noncash downward revaluation of our digital currencies of $70.9 million and impairment of our investments, which are strategic cryptocurrency entities of $13.4 million. These combined noncash charges of $182 million, had a large effect on our reported net loss for the year. Moving on to the next page, please. This is a snapshot of our fourth quarter 2023 financial results. During the quarter, we had total revenue of $18.2 million and adjusted EBITDA of negative $1.3 million. During the quarter, we produced 792 Bitcoin equivalents and currently, the cost of Bitcoin produced in that most recent quarter was $17,928. Moving on to the next page, please. These results for the year ended 12 months, March 31, 2023. We had total revenue of $106.3 million adjusted EBITDA of $23.2 million, a strong balance sheet position with digital currencies of $65.9 million a gross operating margin of $50.6 million. And during the year, mined 3,258 bitcoin and the equivalent mine Bitcoin was 3,503. Moving on to the next page, please. Even though it was a tough bear market, we ended the year of March 31, 2023, with a healthy balance sheet. Our cash positions stood at $4.4 million, along with an additional $65.9 million in Bitcoin digital currencies. We also had $9.4 million in amounts receivable and prepaids, the market value of our strategic investments fell during the quarter as a result of the current general market instability spoken about previously, bringing it down to $2.9 million. We do maintain a strong net cash position and healthy working capital to fund our operations and growth. Next slide, please. This is a summary of the Bitcoin that we hold on our balance sheet year-over-year. On March 31, 2022, we held 2,596 Bitcoin. And at the current period ended March 31, 2023, we held 2,332 Bitcoin. On to the next slide. Our gross operating margin, which equates to our total revenues minus direct operating and maintenance costs decreased in absolute dollars to $4 million or 22% in the most recent quarter compared to $22.9 million or 46% in the prior year comparative. Gross mining margin is also partially dependent on various external network factors, including the high mining difficulty we are experiencing the amount of digital currency rewards miners receive and the market price of the digital currencies at the time of mining, which is significantly lower than it was in the prior year. In this most recent quarter, we are reporting a loss of $0.08 per share compared to a net loss of $0.43 per share reported in Q4 last year. In the next slide, in looking at our year-over-year revenue. We generated total revenue in the fourth quarter of fiscal 2023 of $18.2 million versus $49.8 million in the prior year fourth quarter. The decrease in revenues versus the same quarter in fiscal 2022 can be attributable to three main headlines, the ever-increasing Bitcoin difficulty hash rate over the past year. The significant drop in the price of Bitcoin and to a significant extent, the Ethereum merge that took place in September of 2022 as this current quarter and our operations moving forward does not and will not include any Ethereum revenues. This triple punch contributed strongly to the significant drop in revenues that we experienced. As mentioned previously, our gross mining margin, which equates to our revenues minus direct operating and maintenance costs decreased in absolute dollars to $4 million in the most recent quarter compared to $22.9 million in the prior year comparative. Turning to the next slide. Comparing our current fiscal Q4 quarter to the previous Q3 quarter we generated revenue in this fourth quarter of fiscal 2023 of $18.2 million versus $14.3 million in the previous quarter. The increase in revenues versus the prior quarter was impacted by a stronger price of Bitcoin. As mentioned, as mentioned previously, as the Ethereum merge took place in Q2, neither of these quarters had any Ethereum mining revenues in them. Our gross mining margin increased in absolute dollars to $4 million in the most recent quarter compared to $3.6 million in the prior year comparative. Proceeding to the next slide, our adjusted EBITDA decreased in this fourth quarter of fiscal 2023 to a negative adjusted EBITDA of $1.3 million versus a positive EBITDA of $11.8 million in the prior year comparative quarter. I will highlight that adjusted EBITDA is a non-IFRS figure, in the fourth quarter of fiscal 2023, we experienced a loss of $7 million compared to a net loss of $34 million in the prior year comparative. This change was driven predominantly by significant noncash charges experienced last year, the largest [bearing] impairment of goodwill and intangibles of $13.3 million and a loss of investments of $13.1 million. Moving on to the next slide. Our adjusted EBITDA decreased in this fourth quarter of fiscal 2023 comparing it quarter-over-quarter to negative $1.3 million versus a positive adjusted EBITDA of $1.5 million in the prior quarter. I again highlight that adjusted EBITDA is a non-IFRS figure. In the fourth quarter of fiscal 2023, we experienced a loss of $7 million compared to a loss of $90 million in the prior quarter. These prior quarter losses were driven predominantly by significant noncash charges experienced the largest being impairment on minor equipment of $38.8 million and provision of equipment deposits of $22.7 million. I'd now like to turn the presentation over to our President and Chief Executive, Aydin Kilic.

And thank you, Darcy, for providing the financial overview. I'll now get into an executive update of some recent accomplishments and some exciting initiatives as we look forward. So now we're going to look at the operating income of our core business, which is mining Bitcoin for this last quarter. We're doing a quarter-over-quarter comparison. Now this last quarter, we produced 792 Bitcoin. And again, this represents our production from Sweden, Iceland and Canada using green energy as we're a green energy focused company. So the average price of Bitcoin during this quarter is about $22,800. Our average costs are produced a bitcoin based on our direct operating costs or cost of goods sold. It's about $17,900 so that represents about a 22% gross mining margin. Now if you look at it quarter-over-quarter, difficulty actually increased 17%, but we actually produced slightly more bitcoin. That's because we, of course, expanded during this period. We mined 792 Bitcoin this quarter, 787 in the previous quarter. Now what's actually not included in this slide is the additional $250,000 of revenue from our GPUs, which have been generating revenue from high-performance computing. We had mentioned in a press release earlier this year that we were doing about $1 million a year run rate. And so this first quarter, we had about $230,000 of income. Next slide, please. Now bringing it more current. We put out our May production, and so that's summarized here. So we had 304 bitcoin in May, an average of 3.3x a hash, which brings us to a 92.4 Bitcoin for x a hash for the month of May, which again is amongst the top of our peers and best uptime in the sector, the Bitcoin hoddle of 1,950. And it's important to note, no all of our bitcoin that we hoddle is self mined. And again, being green energy focused, this is our Bitcoin mind, with our green energy. And in addition to this, what's very exciting is we did a scan of our hoddle and we actually have 250 uncommon satoshis. So this is a very exciting new discovery, and we're going to talk a little bit more about it. Next slide, please. Now just to round out how we've been growing ourhcash rate, we recently announced our -- when we were at 3x a hash, our target our interim target was 4x a hash and you're going to be at 6x a hash at the end of the year. So we had about 11,200 ASICs that we announced. And to date, we've actually received delivery of over 7,600 of these ASICs and the remainder are actually arriving in July. So I'm very proud of my team for executing and for working with our suppliers and our vendors for promptly delivering the hardware that we've purchased in a very timely manner. Next slide. So here, to date, we're actually at 3.6x a hash, and that includes about 150 [bet] a hash from our GPU mining. And once the remaining orders of ASICs from the previous slide arrived in the month of July, we will be at 4x a hash, and this will be our Q3 2023. And at the end of the year, we'll be at our target is 6x a hash. So this just shows where we are today, 3.6x a hash. We expect to be at 4x a hash in a little over a month. And then by the end of the year, about 6x a hash. And so this is an 11% increase from the current quarter, which is period end June. Moving into the next fiscal quarter which is starting in July. And again, this is all based on machines that have been ordered that have been paid for and are literally in the process of being shipped and installed. Next slide, please. In addition to having very measured growth where when we deploy capital, we do it with the intention of having the best cash flow return on invested capital. What that means is are we actually going to repay the ASICs, repay the investment we made in the ASICs and then start free cash flow from them. And all of these purchases were done at extremely competitive prices. So in December, for example, we announced that we bought a large amount of S19 gross for about 11 box [indiscernible] a hash. And in our more recent order of 11,200 machines comprised by miners the new S-19JPro+. And even so [S19XP] we do this based on prevailing mining economics, long-term projections and sensitivity analysis where we look at if -- what is the dollar per terahash price we're paying, what is the efficiency of the machine that we're getting, and we all mathematically model this so that we're getting what is going to provide us the best cash flow return on invested capital. And in addition to this, how we deliver value to our shareholders is by having the lowest G&A in the sector. We also have amongst the lowest share-based executive compensation and we also managed to keep very low dilution as we have a hybrid strategy where we either sell shares in our ATM or when an accretive opportunity comes up, we might sell some Bitcoin. And so this is a quality, this is a mindset, our lean and agile strategy. On the next slide, we're actually going to look at what this means when you take a look at the numbers. And so if you look at financial comparison of the -- of the calendar year 2022 -- this is from January to December 2022. And why we built the slide, and this is all based on public filings, you go into [indiscernible] finance and look at the various public finance. Our year-end is March 31, but a lot of our peers here in is December 31. So if you wanted to, you could look at our quarterly filings for the calendar year of 2022, add them all up and you would actually get this total. So our calendar year revenue total was actually $138 million. Our fiscal year total because that was a period end March was $100 million. And as you know, a little over $100 million. And as you know, cryptomining economics vary so much over time. In order to do a true apples-to-apples comparison, you have to look at different companies over the same time period. So this is what we do for calendar 2022 on the slide. And you look at our prior yearly revenue and then you look at our cost of goods sold, right. And then in the third column, you have the gross mining margin. We had $70 million gross mining margin. You see our peers had gross mining margin ranging from maybe $45 million to about $80 million, $90 million. There was a couple of outliers below that. And then you look at the gross mining margin as a percentage of revenue and you sort of see most of the companies in the 50% to 70% range with, again, a few outliers below that. But then you look at the G&A, which is the corporate operating expenses, your auditors, your lawyers, your executive compensation, do you know insurance going on the conferences, sponsorships, et cetera, et cetera. And this is where it gets really interesting HIVE as a global company with subsidiaries in Canada, Sweden, Iceland, Bermuda, Switzerland, was $14.1 million for the entire calendar year. All of our peers had G&A costs over USD 50 million, almost triple ours. And so when you take that G&A cost off the gross mining margin, then you get to the very last call, which is your corporate income and say, so what is the company -- and this is the -- we're not looking at noncash charges because everyone has different depreciation schedules, everyone gets different impairments. It's sort of how the auditors choose to -- performing accounting treatment. But if you look at the cash charges, again, insurance lawyers, travel, et cetera, and you take that out to your gross mining margin, which again is a cash-based metric, you see that we had $55 million in corporate income this period. After that, our two of our peers, we're in the $32 million range. And then from there, it sort of drops off and you see a few companies in the minus. And so again, we strive to deliver value for shareholders. And so this is a key slide that I wanted to present alongside our fiscal year-end, so people can understand what the calendar year-end looks like. Next slide, please. Now earlier, we talked about us having some uncommon satoshis. And this is very exciting because as inscription technology has prevailed for Bitcoin. Now we can have information on the Bitcoin blockchain, right? This is a moment in time. This is historically significant because you've got BRC 20 tokens. You've got various ordinal projects. You've got all sorts of information that can now be encoded directly onto the bitcoin blockchain. And so as a result of that, in May, we saw a huge rush, a huge rally whereby people work in higher transaction fees to have their projects minted first on the Bitcoin blockchain and that resulted in a surge in hash price, almost double where we were around a $0.06 or $0.07 hash price in the month or 2 before, and that doubled to almost $0.12 hash price. And again, hash price is dollar per terahash per day of revenue that you would be getting. And this is network wide. This is a network statistic. This chart is off a bit in info chart you could look it up. And so if you want to have further insight into the nature of the rarity of Satoshis, well, there's 2.1 quadrillion common satoshis and if you look at -- because again, if there's 21 million Bitcoins and there's 100 million satoshis per bitcoin than you have a total supply of 2.1 quadrillion Satoshis. But if you consider the first Satoshi of each block, well, now that's a much smaller number. There's only about $6.9 million of fees. If you look at the first Satoshi when there's a new difficulty [indiscernible] there's even less of those 3,400 you can see how the rarity increases. And of course, the most -- the Mythic one is the very first Satoshi from the Genesis plot. But we have 250 uncommon Satoshis which we've received offers -- bona fide offers from parties that are willing to pay a vast premium for these. And so to transact with Satoshis, you need to have control over your UTXO and it's a more involved technical process. Again, HIVE wants to be a leader in a first in transacting with uncommon satoshis. Next slide, please. Summary. So we've got 70 megawatts in New Brunswick, 30 megawatts in Quebec, about a little over 37 megawatts in Sweden, 10 megawatts in Iceland, with our global total of a little under 150 megawatts of green and clean focused energy. Next slide, please. As mentioned, building for us is complete. It's just a nice photo of New Brunswick. And that's a 4 billion campus. And now we're going to talk a little bit about HPC and our foray into driving value from our GPU fleet, doing some really interesting things. This is actually a photo of our data center [dome] and that's our country president Johanna, walking the halls with [Marion] who runs our data center in Boden. And we're going to talk about where this is evolving to. So AI is an emerging technology that is growing extremely rapidly and there are a few constituent components to AI. We have a fleet of 38,000 NVIDIA data center grade GPUs that we purchased a couple of years ago, which used to mine Ethereum and since then, they've been repurposed to mine Bitcoin through mining old coins where we don't take custody of old coins when we get paid in Bitcoin. And in addition to that, we actually rent the GPUs on GPU marketplaces, where people could rent the GPUs for a few hours or a few days. And as mentioned, we had about USD 230,000 of income, and that wasn't even operating for the full quarter. But nevertheless, that's what we call GP as a service and then in addition to that, we have high cloud, which is our private enterprise cloud platform we've been building through the last year. So these are all components of technology that supports AI computing workloads this firmware, the software and the hardware. Next slide, please. So why this is all coming together is because the web as we know it, is evolving, right? Web 3 is a term that many people have heard. But Web 3 is a collective of technology and ideas to allow this new adaptive Internet, whereas Web 2 is a semantic Internet. So in the adaptive Internet period here, there's privacy on your own data. It's very different than having in Web 2, a few big data companies that you're unwittingly submitting all of your personal info to and they're pending metadata, and that's how you get all these targeted ads, Web 3 will have components of AI, decentralized autonomous organizations [indiscernible], which, of course, will contribute to technologies such as the Metaverse, but these are all different pillars of Web 3 and the two key ones that HIVE is involved with is, of course, cryptocurrencies and AI. Next slide, please. So where do we fit in? Well, you might have heard of something called ChatGPT, right? ChatGPT, we're going to discuss briefly. It is fundamentally an AI large language model -- and there's an invention on processing power needed for those. However, when you get into enterprise-grade applications, there is sensitivity about security. And so companies now are mindful that they don't want to upload sensitive client data to company like Open AI that has a public LOM. And so what we aspire to offer at HIVE through HIVE cloud is privacy where companies can have a service agreement in place. Ownership of their data and privacy and still run AI computer workloads on our rented GPUs and this stuff isn't just getting uploaded into the open AI large language model, it would be your own large language model that we would train and then you can run inferences. And of course, for all of this, you need to have data center experience. And so we've got 6 years having been public since 2017 as a best-in-class crypto miner running and building and operating data centers. And as mentioned earlier, right, we're doing $1 million a year in run rate revenue for GPU as a Service. Next slide. So by the way, what is GPT anyways? Well, GPT, it stands for Generative Pretrain Transformer. It's a type of large language model. It's a very prominent framework for generative AI. Now GPT has been around since 2018. And so you could refer this slide at your own leisure, but let's look at the evolution. So GPTs are defined by the number of parameters, which is shown here on the next slide. And GPT1 for example, had a little over 100 million parameters. That was scaled by 10x GPT2 had 1.5 billion parameters. GPT3 was over 100x with 175 billion parameters and GPT4 is about 1 trillion estimated. And so you've seen this exponential growth. And these parameters require more and more processing power. You need more floating point operations performed by your GPUs to train these large language models. Hence, there's been an immense [indiscernible]or processing power in order to run training on these LOMs. And the thing is ChatGPT is a public general LOM, but enterprise-specific large language models will be smaller, maybe 10 billion to 20 billion, and you can train them yourself with, again, using a platform like HIVE Cloud and your own dedicated bank of GPUs. So you have vertical integration from the hardware to the software stack that's just bespoke for you and therefore, you have a privacy and you can fine-tune your own LOMs. And so we aspire to provide the service as we build out our -- sorry, our AI platform. Now just to get a pulse on where this is all going. GPT5 is around the corner, and they estimate that might be as much as 17.5 trillion data points. Now we don't know this for sure, but these are what best estimates tell us. And I think there's been a lot of worry and concern about Skynet and robots taking over to be with to think you're going to be replaced by AI. Actually, you'll be replaced by somebody that uses AI and so this is, as a company, we want to embrace this. And so this is why, again, being the first company to the first public company that built our own basic mining grid with Intel, right, the first for data centers on the balance sheet, the first to be traded in NASDAQ, Frankfurt and the TSX. We are also amongst the first crypto mining companies that are meaningfully being involved in AI. Again, we're getting $1 million a year of run rate revenue from GPU as a service. And we started HIVE Cloud a year ago and the software is complete, and we're actually doing beta testing now with clients. It's a very exciting time. And I think this year ahead will have a lot of new initiatives that we look forward to sharing with the public. So just to put some context around this. So we have over 38,000 data center grading for the GPUs. But if we just focus on a small subset of that, so the A40 and A6000 together, we have about 4,600 of these cards and at $0.50 per GPU per hour revenue with a 75% usage ratio because, again, these GPUs need to be applied for compute. It's not like cryptomining where everything just runs 24/7 all the time. But what we found in the marketplace is about 70%, 80% usage that would equate with these 4,600 GPUs doing about $40,000 a day revenue or $15 million a year in revenue. Now the profit margins on this right now are about 80%. So that would be about $12 million a year of profit just converting our 4,600 A40 and A6000 to AI computing. And so this is a very strong supplement to our crypto mining offering. And so if you go to the next slide, you would say, well, what do you require? And so we already have the GPUs. And so what we would do is we actually upgraded the server. So the services have the memory and the CPUs, and so we -- each server holds 10 GPUs. And so to purchase of 460 of these servers, and we've been working with Super Micro. That would be about $6 million. And again, that would get us to $15 million a year of revenue. So this is very exciting. It's blue sky, and we actually have some super micro servers arriving next week, and we have more super micro servers arriving next month, as we run all this GPU computing out of Sweden. So it's a very exciting time, and we look forward to sharing more. Please check our social handles for more developments and, of course, our press releases. Have a great day. Thank you.