HIVE Digital Technologies (HIVE) 38th Annual Roth Conference summary

Strategic approach and partnerships

• Pursuing a capital-light strategy for AI cloud growth, leveraging lease-to-own GPU models, third-party hosting, and conversions of existing infrastructure rather than new builds.

• Major partnership with Bell Canada enables rapid ramp-up to 16 MW IT load, with Bell funding data center construction.

• Targeting $200 million ARR on GPU cloud by year-end, up from $35 million currently, with recent deals accelerating growth.

• Owns three data centers (New Brunswick, Sweden, Toronto) being upgraded to Tier 3 for long-term co-location and cloud opportunities.

• Parallel strategies: near-term EBITDA growth via Bell, long-term value via owned and converted data centers.

Financial targets and contract pipeline

• Current GPU cloud ARR is $35 million, with a near-term path to $155 million if 4,000 new GPUs are deployed in six months.

• Two major GPU cluster deals (2,000 GPUs each) are close to completion, expected to add $120 million ARR in the next 1–2 quarters.

• Additional $85 million ARR targeted from New Brunswick data center conversion, bringing total potential to $285 million ARR.

• Focused on breaking through $100 million ARR as a catalyst for stock re-rating and further capital deployment.

• Revenue targets are predicated on these deals closing, with updates to be provided as contracts are signed.

Economics and asset management

• Lease-to-own GPU model offers 2.5-year ROI at current rates, with 50–60% residual value after three years.

• Five-year contracts can double the value of GPUs, with strong demand for late-generation cards supporting recontracting.

• Data center build-outs have an eight-year ROI, while GPU cloud achieves quicker returns.

• Historical experience selling used GPUs at high value after mining, reinvesting proceeds into newer models.

• Capital deployment for new builds is balanced with contract commitments and market-driven timing.