HIVE Keynote: Scaling at HIVE Velocity – From Hydro Power to Hashrate and AI | EBC11

Fantastic. Hello everybody. Um, so we are going to give a little overview of Hive Digital Technologies. We're actually the first publicly traded crypto miner ever. Uh, Hive went public in September 2017 on the TSXV and in September in July 2021, we went public on the NASDAQ.

We're also traded on the Frankfurt Stock Exchange. So, it's been a uh remarkable eight years and uh we are 100% powered by green hydro energy. I have some my executive team, my CFO, Mr. Darcy Dearis is in the audience, the longest standing CFO in publicly traded crypto mining history. And um let's kick it off.

So, our operations are spread around the world. We're globally decentralized. We're in Sweden, Paraguay, and Canada. In Canada, we're in uh Quebec and New Brunswick. Our corporate head office is in Vancouver, Canada.

Uh we have 300 megawatts of green energy mining power in Canada, or sorry, in Paraguay, 100 megawatts in Canada, and about 40 megawws in Sweden. So what's sort of interesting is in Sweden the utility company is called Vatenfall which is Swedish for waterfall. In Quebec the hydro company is called the power utility company is called Hydro Quebec. And in New Brunswick the town where our Bitcoin mine is located is called Grand Falls. So you're starting to see a theme here of waterfalls as we're all 100% hydropowered.

And then of course in Paraguay which is very exciting it's the largest hydro dam in the world the Taipu dam which produces over 10 gawatts of power and feeds feeds three countries Brazil, Paraguay and Argentina and also is home to the largest waterfall system in the world. So uh it's very it's been a a great journey over 8 years to find these uh pockets of hydroelectric power. This July we celebrated four years of being publicly traded on NASDAQ. We had 100 people show up. It was remarkable.

We're currently covered by eight investment banks for with research analysts. Um we are trading approximately 30 million shares a day on the NASDAQ. So it's a great source of liquidity and capital formation for us. And um this is our executive team. Uh so you might recognize some of the people in this photo as in this audience.

For example, Mr. Nathan Fast right here. Uh so it's pretty exciting and um it's been it's been a remarkable journey. So this is it. This is actually a site photo when our team toured the E Taipu dam.

This is a 10 gawatt hydro dam. This was a industrial infrastructure project between Brazil and Paraguay. It's a Paraguayan sovereign asset and they actually sell power to Argentina and and the country of Brazil. However, the upside for Paraguay to sell to a publicly traded Bitcoin miner is they get paid in US dollars. In with Brazil, they get paid in Brazil in realale and Argentina pays in pesos.

So the US dollar is of course a much more favorable currency than realale or pesos. So it works very well as a currency hedge for the government. Also we pay our bill on time. Darcy makes sure that we always pays our bill on time whereas the governments uh don't always pay their bills on time. Uh so anyways uh it was a remarkable Oh, Tiffany's in the photo too with Tiffany Bzwick.

Um uh and a part of our executive team as well. So this is really underscores the the green energy component. Our country president Johanna Thornblad actually lives in Barcelona. She's pictured over here but she couldn't be here today as she's uh battling a flu. So a little bit about our production.

We're currently at 22 xahash. And so we are actually in between these two milestones between 20 and 25 xahash. We're currently mining over 9 bitcoin a day. We're over 2% of the global Bitcoin mining network. 2% of the global network.

If you think about that in capacity globally, our operations constitute 440 megawatts of uh capacity. Also see Telno from Kanan and uh we we we use Kanan AS6. We also partner with Bitmain and uh our growth in Paraguay was uh primarily driven by the Bitmain S21 Plus hydro and that's giving us a uh oh, this one's a bit different. Uh it's giving us a global fleet efficiency of 17.5 jewels of terraash.

What that means is for every unit of hash we only consume 17.5 jewels of energy. This gives us one of the most energy efficient fleet of ASIC miners globally. Moreover, at 17.5 jewels of terraash, our global average break even hash price is only $22.

So we have a very long tale of uh profitable operating which we expect to go through to the next having and we very strategically upgraded our ASIC fleet uh going into this current cycle uh in this partnership with Bitmain so we could have a a really good operating margin but most importantly a very strong ROI profile. Growth is important in Bitcoin mining, but it only matters if you can actually ROI on your original investment. What does that mean? Simply put, if you spend $200 million on AS6, you should be making $300 million because you got to repay the original investment and then cash flow on the rest. A lot of crypto miners, they always buy the newest machines.

Maybe their power costs are are volatile and they can't manage that downside. And so a lot of crypto miners don't actually make the money that they invested and a lot of them um don't last. But we're the longest standing crypto miner in the game and this just comes from um discipline having a high performance work culture at Hive and of course we're very technical and analytical on how we deploy capital. So, uh, this is more on the financial side of things that we're currently at about $400 million of annual revenue, generating about, uh, $250 million of cash flow from operations. So, it's a very exciting time to be a Hive shareholder.

Our stock has surged almost 80% in the last month. But, we're also we're not just about dollars and and cash flow. We're also really big about investing in the community. So this is actually in Bowden uh where we uh have our data center in Sweden, our flagship data center. This is the local hockey team and as you can see we sponsored so we sponsor the arena, we sponsor the journeys uh and actually two Stanley Cup NHL players have come from this team.

So this is actually a very reputable team in the community. And so we also kids under the age of 16 can go watch the games for free as part of our sponsorship. So, it's always about doing good business because we're a global company. It's about understanding the communities where we do business and how we can help them. So, we're welcomed.

Now, the other really exciting thing, we are at a blockchain conference, but I wanted to talk a little bit about our HPC and our AI strategy. We used to be one of the, if not the largest Ethereum miner in the world. We are about 6% of the global network. We had 120,000 GPUs operating in Sweden in our facility in Bowden during the Ethereum mining era. Now, is this is a blockchain conference, most of you would know that ETH went to proof of stake in 2022.

And in my opinion, that was a big mistake. We're proof of work all the way. Can I get a show of hand? Who who's who here likes proof of work? Yeah, go proof of workers.

That's right. [laughter] So, um yeah, right on, Nathan. So any rate, we pivoted after the Ethereum merge and we took our GPUs. We started getting into AI compute. We're now doing about $20 million of annualized revenue.

We have 5,000 GPU GPUs uh spread between clusters in Montreal and Stockholm. And um these 5,000 GPUs serve uh over 10,000 unique users. So it's uh really exciting. And in Canada, we actually have an H200 cluster, 504 H200s, one of the first H200 clusters in Canada. So, this is a photo of one of our tier three data centers.

Very exciting stuff. And this is more excite. I know we're in in Europe and we're at the European blockchain conference, but the largest telecom player in Gabe, what's the largest telecom in in Europe? Orange. Good question.

So whatever the largest telecom is in Europe, imagine doing a partnership with them for AI. That's what we did in Canada. And that's a partnership with Bell and uh and Buzz. And Buzz is our AI pure play subsidiary. So this is really exciting.

We plan to bring on Blackwell GPUs over the next year. We plan to bring on about 4,000 Blackwell GPUs. And uh our partnership with Bell is going to allow us to really flourish in that regard. Uh on the financial side of things, the AI business currently at 20 million, our targets 100 million next year, and we plan to reach that by bringing on 4,000 Blackwell GPUs uh through our partnership with Bell and another data center we have in Toronto. So, a little bit about our fundamentals.

We're uh lowcost operator. We're doing about 20 million revenue per employee right now. Apple does, I think, one a.5 million revenue per employee. Nvidia does uh 3 million revenue per employee.

uh we hodddle our Bitcoin strategically. We ended last uh quarter with about 430 Bitcoin on the balance sheet, but we have an option to buy back about 1,500 Bitcoin and get our huddle to over 2,000 because we strategically use our Bitcoin to grow our business and buy it back. Um and of course we lead the sector in having the best ROI. Um we have a chart on that. Usually it's an investor presentation.

And uh we have the lowest GNA per Bitcoin mine. So, high performance, low cost is our secret to success at Hive. And um here's a little bit on our socials. We have a very active Twitter account. Uh I highly encourage you to check it out.

Uh a lot of cool photos from our operations around the world and uh stay up to date with our advent in the world of AI as well as Bitcoin mining. Thank you for your time today. [applause]