Forward-looking disclosure. This meeting is being recorded. Moving on to slide number three. You will see one of our most popular visuals, which is the DNA of volatility. We're always sure to include this table in our earnings presentations, particularly following the disclosure slide, because we just think it's a wonderful reminder to investors about just how much these various asset classes can move up or down over a one-day and a 10-day time frame. As you can see here, and I don't think it's a surprise to any of our shareholders, that the volatility of Bitcoin and Ethereum is greater than, say, the S&P 500 or even gold stocks. If you look down at HIVE, it's even more volatile, and of course, that's because we mine both Bitcoin and Ethereum. It's just something to keep in mind. As we move on to slide four, I am pleased to welcome the presenters for today's program, Frank Holmes, Executive Chairman, Darcy Daubaras, Chief Financial Officer, and Aydin Kilic, President and Chief Operating Officer. If we move to slide 5, I would now like to hand the presentation over to Mr. Frank Holmes. Frank? Thank you, Holly. Thank you all shareholders for being resilient as this management team has overcome so many challenges since taking control, Darcy and myself in particular, of Genesis Mining and repositioned the company in the past couple of years. There's been so many challenges we've overcome. We apologize for your frustrations of getting the financials out to you, but we've been able to say that we feel very safe and comfortable in our numbers and what we're doing. We've been doing that. Here we are. We have record year-end in March numbers. Now we have the end of June. HIVE achieved record revenue for the year end of March 31st of CAD 66 million. Earnings of CAD 43 million. We turn around for the quarter. We turn around and show you that we have record quarter from April, May, and June year end, this is sort of a nice visual of showing you this is going up to June, those numbers. When we compare them to our peers, you can see that we have the highest post income for the June quarter in CAD millions. Our numbers are bigger than Bitfarms, bigger than Riot, bigger than Marathon. Marathon's numbers came out today, but this is for the end of June. Bigger than Hut 8 or Argo. Argo's numbers are every six months. What I'd like to point out to investors is that this difference is because we mine both Ethereum and Bitcoin, Aydin's going to walk through that if you did some back of the envelope conversions, et cetera, with our hashing power, it could be what it looked like it was only Bitcoin. Ethereum has allowed us to weather down storms and also for the past year, be the most profitable company of all the crypto mining companies as of now, June 2021. Next, please. The proposition for investors is who's the least expensive. When you look at Marathon, they're trading a year before their other numbers came up at the end of June at 70 x revenue, market cap to revenue. Hut 8 is 47 x. Riot is 38. Argo is 35. Bitfarms is 25, and HIVE is 15. We know that as machines come on stream for, in particular Marathon and Riot, there will be compression, but there's a big disconnect between on a relative basis of the value proposition of revenue to market cap valuation metrics and going forward where our growth rates are. Next, please. We're thrilled to be able to share with you the cash on hand of CAD 26 million, receivable paid, CAD 8.9 million, digital currencies, CAD 82 million. The total current assets are CAD 126 million, and liabilities are CAD 9.6 million. Our Ethereum and Bitcoin, as you can see, the Bitcoin has been increasing rapidly as overall from the hodling. Next, please. I'm a quant guy as a fund manager and a quant discipline, and I've always liked Matt Kacur 's work. He's based out of Toronto, and he has a model that's based on the cash flow return on invested capital model that came out of Chicago from HOLT Advisory. He looks at a universe of a call stocks and does a relative valuation for a company's intrinsic value is. They believe that HIVE is worth a default valuation improved of $5.10 US per share. Trailing four quarters moved up from 35%, 26%. When these numbers are gone through his computation system, I'm sure that HIVE will look even more attractive. I think what's interesting for me to share with all of you is that there are many quant funds and other sort of quasi quant discipline fundamentalists that are using HIVE because this methodology does not care what industry you're in. It just cares if you're generating high cash flow returns on invested capital. Next, please. HIVE's total assets on the balance sheet, Darcy can go into more details on this for everyone, but you can see that from end of 2020, it was approximately CAD 6.4 million, and now our Bitcoin and Ethereum is CAD 82 million at the end of June. The idea of launching the ATM in the 1st quarter of this year has allowed us to be able to HODL most of our production, at the same time, is take that cash flow from our existing business and upgrade our GPUs on swaps from 4 GB cards to 8 GB cards. Memory cards was very critical for the AMD 580 cards. Other things that we've made announcements on, major NVIDIA purchases, which is for the future. We're continuously upgrading, and we're in a great financial position to continue that. Next, please. Joining us up here with Johanna, joined us in the first half of the year as a managing director of Sweden, has now taken on the role as the president of the Swedish operations, which we're happy with. We've made press releases regarding her credentials and her experiences, both explicit and tacit knowledge. Next, please. You can visit our website. The new addition to the team we'll be speaking today is Aydin Kilic. Aydin Kilic is the President Chief Operating Officer. He has lots of experience in crypto mining, data centers, construction, and in particular, you need to have lots of experience in construction because of the site that we're building out in New Brunswick. I was just there last week, and I was so impressed. The whole team visited Lachute, which is a 3-MW facility in Quebec. We also walked to New Brunswick to visit the campus that we're building out. It's really quite impressive and thrilled, that's also helped with our Bitcoin mining print. Coming back that only green energy is key to it. Owning our own facilities and assets on the balance sheet, they're very valuable. We're thrilled with that of Aydin coming along and helping execute and build out, we can talk more from 50 MW-70 MW and where the future potential is on this. Next, please. We get this question quite often. I ask regarding the difficulty rate and for those shareholders to recognize is that there's a fixed amount of Ethereum mined each day. The algorithm, just like in Bitcoin, every 10 minutes, there's a 6.25 coins, equivalent to 900 Bitcoins a day. If you can get your hockey stick on and get a piece of that action with the faster computers, then you're going to produce Bitcoins every day. The same thing happens with Ethereum. Ethereum just produces more coins. One thing, because it's a fixed amount, there's more and more people competing, especially the gamers coming in and switching their machines. What we've noticed is that this difficulty rate fell dramatically for Bitcoin, but it didn't fall that much for Ethereum. Ethereum difficulty has basically been rising. You can see that we produced a lot less in the quarter Ethereum. However, the price action of Ethereum has gone up 30-fold in the past two years, and in the past year, it's up to more than 20-fold. The reason for that is not just the technology. We solved that problem with upgrading our memory cards, but the real issue is there's just more people turning on their Ethereum chips and turning on their GPU chips that are gaming. What we're seeing is that Ethereum is actually much more decentralized than Bitcoin mining. I thought that was a really interesting dilemma that took place when China shut down everything in China, that the difficulty did not fall very much for Ethereum mining. It fell substantially for Bitcoin. Ethereum difficulty has risen to a new level, but Bitcoins are from that. I think it's just for shareholders asking, some people expect us to produce more. For them to just recognize that the new GPU cards that are out there, and many of these kids are switching over short-term mining and then going back and spending the money. Next, please. Important part, at the end of June going into July, we got listed with the HIVE ticker on Nasdaq. We're excited about that. As you can see, we have about 382 million shares outstanding. We have the least amount of dilution against all the mining companies. We have the greatest revenue. If you take a look on a per share basis, we have the greatest increase in revenue per share and cash flow per share relative to our peers. Next, please. We get great coverage, in particular The Motley Fool out of Canada. Once again, they're very earnings driven and revenue driven on a per share basis. Here's an article last week by Andrew Button recommending Hut 8 and HIVE Blockchain. Next, please. I'm going to turn it over to our new President and Chief Operating Officer, Aydin Kilic. Thank you, Frank, for the introduction. It's been a very active quarter with a lot of milestones. I'm happy to talk about them. Let's get to it. Next slide, please. Frank was talking about the increase in difficulty in Ethereum mining. One thing to keep in mind is that we also have a great ascendance in the price. This slide here provides a great historical context of what Ethereum mining itself has looked like over the past couple of years. Throughout fiscal 2020 and 2021, you can see that HIVE was mining 25,000, almost 30,000 Ethereum per quarter. Of course, Ethereum prices were hovering around $200, $300, $400 in fiscal 2021. Calendar year 2021 for HIVE, we saw that increase substantially, and so we saw Ethereum hit $4,000 US dollars several times. A massive increase and the quantity produced about 9,700 Ethereum, period end June 30th. We had a solid Ethereum price between $3,000 and $4,000 US, that's almost a 10x in price with production roughly 1/3. On a revenue basis, and if you have 10x the price, that's what we've done a few times. Your overall still doubling your revenue, right? The Ethereum mining business is actually very lucrative and it's specialized. It requires more operational excellence when it comes to your data center management. This has been HIVE being the first Ethereum mining industrial scale company as well as the first retail miner. It's now got a very remarkable track record here. The reason why I actually wanted to focus on this is for most shareholders and investors who want to understand the value proposition of Ethereum mining as it relates to Bitcoin mining, we're going to unpack that a little bit here. Let's go to the next slide, please. If you convert Ethereum mining to Bitcoin hashing, how do you do that, right, as an investor? Ethereum mining, obviously, we're running rigs. Usually you look at things, what's your ETH per GH. Bitcoin mining, you're operating at the terahash level and you're wondering, "Well, how many terahash per megawatt is my data center?" At the end of the day, we're in the hash rate business. We produce hash rate as commodity and then exchange that for our coins. The common denominator, of course, is when we report our financials, and that is the US dollar. If you take any given day, and if you had a megawatt of Bitcoin mining, for example, a megawatt of Ethereum mining, you will know how much Bitcoin or Ethereum that you've produced, and you'll know what the market price is on that day, and then you will know what your revenue will be on that day. That's actually in North American accounting standards, that's how you evaluate, right? You've got IFRS, you've got GAAP, generally accepted accounting principles. That's a good measuring stick for investors because at the end of the day, our capital, our enterprise value, these are valued in Canadian or US dollars. If you use this postulate and you evaluate, you find some really interesting numbers. I actually focused on September 2021. We're doing, obviously, the Q1 which was period end June 30th. We get so many questions people are wondering about Ethereum mining post London fork and where it stands at today. There's a little bit of an outlook section here. In September 2021, HIVE mined 221 Bitcoin. That's about $10.2 million USD of revenue. In addition to that, HIVE mined over 2,500 Ethereum, which is an additional $8.6 million in revenue. As you could see right off the bat, between $10.2 million and $8.6 million USD, Ethereum mining actually makes a very substantive portion of this revenue basis. If you take that and you also convert on a daily basis, so what is the amount of Bitcoin equivalent you would have mined today based on the Bitcoin price that day and you total it up, you'd actually get an equivalent of 407 Bitcoin equivalent mined for the month of September, which on a daily basis is about 13.6 Bitcoin mined per day. Other companies recently have come out and hit a milestone of 10 Bitcoin per day being mined. Well, at over 13 Bitcoin equivalent being mined per day, that's over 30% of what some of their peers are producing. It actually shows how strong of a value proposition this is for shareholders. Another thing I'm going to point out, again, this is September, so this is recent, this is post London hard fork, which by the way, we still see very strong and healthy Ethereum mining economics. The two months following London, as it's two months preceding London, we've seen very consistent, very strong economics. The only change has been the exorbitantly high fees, high transaction fees in Ethereum that we saw in May and April of 2021. Those are no longer. Those have been revised as is because we want to make Ethereum adoption accessible, whether it's for DeFi, for people minting NFTs and of course for people using Ethereum as a form of a digital currency, right? More adoption and consistent use of Ethereum has provided a bedrock for excellent Ethereum mining economics. If you take all this and you just step out. I'd just like to really add, sorry to interrupt on that, but this is a wonderful hypothetical model. This is not for financial reporting directly, but this is what our ability is to the public of what our hashing power is. We're trying to inform investors that this is what it would look like if we were only mining Bitcoin. What's interesting is that Ethereum actually outperformed Bitcoin. If you just look at the price action. It's an important part of our holding as Ethereum continues to go through like a halving with Bitcoin. Ethereum hasn't gone through a halving. Ethereum has gone through all these upgrades and people staking their Ethereum. They're taking supply out of the system at a very rapid rate, which then affects the supply-demand equation, which has led to a high Ethereum price for us. That strategy is, down the road, we'll be able to get proof of stake, but we think that's several years down the road. This is an idea for some people I know that have been able to do this conversion, and Aydin's done a wonderful job creating this hypothetical for you. Great slide. Keep going. Yeah, no, thanks for the color, Frank. Exactly, this is an outlook slide. Darcy will, of course, cover the actual financials for the period. Just to kind of build on what Frank had mentioned, on an annualized basis and with this interpretation, it's about CAD 284 million just for the month. Sorry, if you take the September revenue on a run rate basis, assuming that that's a projection. If you have a realized annualized run rate revenue of CAD 284 million, that actually puts HIVE's market cap to revenue ratio at a 6x multiple, which is incredibly attractive for investors. On the previous slide, looking at the earlier quarter compared against our complete years, we were at a 15x. If you look at the September numbers on this slide, it looks like it's a 6x, it's incredible. That's a great way for people to understand how you can compare. Really, if you think about it, at this point in time, on a per megawatt basis, Ethereum mining actually yields more dollars per megawatt just because the economics are so favorable. It's had great price action. We want to help the interested public understand how you can realize the value proposition of each. Next slide please. Some operational milestones. HIVE, in August, realized 1 exahash of capacity, Bitcoin mining capacity, which was great, and this is a global company with operations in Quebec, New Brunswick, Sweden, and Iceland. We've got a little bit of Bitcoin mining everywhere, but primarily focused in Quebec and New Brunswick. Having the latest machines, really high efficiency, high throughput THs and chains installed in our operations. We got to 1 exahash, and it was great. Daily Bitcoin production recently has been, if you calculate on a Bitcoin mining calculator online, that's about 70 Bitcoin per day produced with 1 exahash. In fact, we're beyond that now, constantly growing. We expect to have another exahash plugged in over the next few months. We've got the infrastructure being developed in New Brunswick. As Frank mentioned, originally, it was a 50-MW campus. We've expanded it to become a 70-MW campus. 30 MW are operating today, and so of that 70, the remaining 40 MW will be coming online later this year and early next year. It's a very exciting time. In our long term fiscal 2022, we expect to have a Bitcoin mining capacity of 3 exahash. In addition to that, we have Ethereum mining capacity, which you saw on the previous slide, how you could convert that on a US dollar basis to Bitcoin mining capacity. We've got a very strong pipeline of ASICs. We announced in just 45 days alone, 1,500 next generation Bitcoin miners, S19js, M30Ss, M30S++s, all great hardware. Just those purchases alone, over half an exahash of Bitcoin mining capacity. Here we go. Next slide. Perfect. Thank you. With all that Bitcoin mining capacity and having been operating for so long, you've got some great historical numbers here. Even far back during the pre-halving, HIVE mined 152 Bitcoin during that period, and difficulty was actually much, much higher back then, both before and after the last halving compared to where it is today. You could see HIVE has consistently performed even through the additional EH. The coin mining difficulty was incredibly high during this period. Nonetheless, our hardware has continued to steadily grow, 226 Bitcoin in the fiscal year, June 30th, 2010, which is our Q1. Again, this is the result of having constant and steady growth, inch by inch, new hardware coming online. Really just trying to master the capital allocation, understanding with your racks where you're going to plug in your most efficient ASIC miners on your watt per terahash basis if you have older S9s, which again, are still profitable, but once you've deployed capital and you have much faster, more efficient chips, plugging those in. This is how you get the steady growth. It's a very exciting time. Again, not a lot of public companies who can mine Bitcoin for that long. With that was the overview. I will now open it to Darcy Daubaras for the accounting and financial comments. Over to you, Darcy. Thank you. Great. Thank you very much, Aydin. Good morning to all of our investors and shareholders. Next slide, please. In this slide 24, we generated revenue from digital currency mining in the first quarter of fiscal 2020 of CAD 37.2 million from a coin production as we've gone over approximately 9,700 Ethereum and 226 Bitcoin. The increase in the revenues versus the same quarter in fiscal 2021 is primarily due to the increase in the production of Bitcoin mining, as Aidan had just shown in the previous slide, much higher coin prices than we were experiencing a year ago. Part of this, as we've talked, was offset by the decrease in the number of Ethereum mined given by difficulty rate increase and the fewer number of cards that we got installed as part of our GPU card upgrade from the 4 to the 8 GB cards. As we've talked about and covered, this was all offset by the huge increase in the price of these coins YoY. The gross mining margin during the quarter was CAD 31 million, compared to CAD 2.6 million in the prior year comparative quarter. Production of Bitcoin, as we've talked about, increased month-over-month, and we are continuing to do this following our acquisition of our two data centers in Canada. Our gross mining margin, which equates to our revenues minus our direct operating and maintenance costs, increased in absolute dollars and stayed strong as a percentage of revenues at 83%. Gross mining margin is also partially dependent on various external market factors. We've also talked about this including mining difficulty, the amount of the digital currency rewards the miners are receiving before and after the halving, and the marketplace for digital currencies at the time of mining. On this slide, we're looking at the QoQ and can see our revenue from digital currency mining has increased to CAD 37.2 million from CAD 33.4 million in the fourth quarter of fiscal 2021. Our gross mining margin has increased again to CAD 31 million from CAD 27.2 million in the prior quarter. Next slide, please. Our Adjusted EBITDA increased massively here in the first quarter of fiscal 2022 to CAD 29.6 million, versus CAD 2.6 million in the prior year comparative quarter. The Ethereum and Bitcoin mining margins that we have experienced through our efforts of reducing our costs have enabled us to continue to expand our business. This has to do with the two acquisitions we've made within Canada and the continuous upgrade of the GPU cards in Sweden and the large number of orders that we've put in for miners that are going to be coming in over the next 18 months. We've got orders of those ASIC miners coming in each and every month. It's a very scheduled way that we've got it coming in, so we don't have a big truckload or a container load sticking all at once. We spread it out so that we can get our operations up and running and make a nice and smooth transition. Our net income, CAD 18.6 million this quarter versus the CAD 1.8 million year-over-year. Ethereum mining margins, as we've talked about, our Adjusted EBITDA at CAD 29.6 million versus CAD 29.1 million in the prior quarter. Net income is doing incredible, CAD 18.6 versus CAD 14.3. Just note here that it's not as big of a gap there. It is large, over CAD 4 million, just the scale that we're using there. The gross profit margin, CAD 31 million versus CAD 27.7 million. I always like to highlight that the gross mining margins and the Adjusted EBITDA are non-IFRS figures, which we try to remember to point out each and every quarter when we announce our results, just to remind our shareholders and investors. Next slide, please. This is just looking at our continued gross mining margin. Income per share, CAD 0.05 for the three months just ended of June 30th, 2021. This is compared to the prior year of CAD 2.6 million gross mining margin, and we had an income per share of pretty much CAD 0 for the comparative YoY at June 30th, 2020. I've flown by the financials pretty quickly. I know that we had a call just about 10 days ago. Now I'd like to turn it back over to Frank. Before I do that, I just want to thank all of our investors for all of your patience, your ongoing support, and I look forward to seeing you guys and speaking to you when we do release our Q2 financial 2020 financial results in November. Thank you, Darcy, thank you, everyone. Please, if you have questions, you can send them in to HIVE, and we will answer them all. Thank you, everyone, this is a wrap.
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