AVX

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Avax One's financial and operating results for the Q1 ended March 31st, 2026. Joining us today are the company's Chief Executive Officer, Jolie Kahn, and Chief Financial Officer, Chris Polimeni. By now, everyone should have access to Avax One's Q1 2026 earnings press release, which was issued earlier this afternoon at approximately 4:05 P.M. Eastern Time.

The release is available in the investor relations section of the company's website at www.avaxone.com. This call will also be available for webcast replay on the company's website. Following management's remarks, we'll open up the call for your questions. Please be advised this conference call will contain statements that are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995.

These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC. Do not place undue reliance on any forward-looking statements which are being made only as of the date of this call.

Except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements. For important risks and assumptions associated with such forward-looking statements, please refer to the company's SEC filings. Now over to you, Jolie.

Thank you, operator, and thank you all for joining us today. The Q1 represented an important transition period for Avax One as we laid the groundwork for our evolution into a power-first digital infrastructure company. Over the past few months, we have formally expanded into AI and high-performance computing infrastructure, laying the groundwork for our continued transformation, broadened our Bitcoin mining platform, and oriented the business around scalable behind-the-meter power assets that we believe can support long-term growth and profitability.

Additionally, we furthered our Avalanche treasury strategy, which continues to provide a differentiated source of yield generation, ecosystem alignment, and strategic optionality. The combination of these initiatives reflects the deliberate repositioning of our business around the physical and digital infrastructure we believe will define the next phase of artificial intelligence and the on-chain financial economy.

Over the past several years, the investment narrative around AI infrastructure has largely centered on hyperscale data centers and multi-gigawatt campuses. While that matter is critical for frontier model training, we believe a significant and increasingly important segment of AI demand is emerging outside and smaller than the hyperscale ecosystem.

Enterprise inference workloads, edge AI applications, regulated industries, and mid-sized compute operators increasingly require dedicated, reliable, and geographically distributed infrastructure that hyperscale providers are not structurally optimized to deliver. These customers are constrained by latency requirements and data sovereignty considerations, operational resilience standards, and access to power.

Across North America, utility interconnection queues and transmission constraints continue to extend timelines for new compute deployments by multiple years. We believe the market is entering a period where access to dedicated cost-efficient power becomes the defining competitive advantage in AI and compute infrastructure.

That is the opportunity we are positioning Avax One to address. Our strategy is centered on modular behind-the-meter AI and HPC infrastructure deployed in energy advantage regions. We are currently advancing our first 10-MW, Tier 3-ready critical power facility in Alberta, Canada, which is designed around dedicated flared natural gas generation, battery energy storage integration, and modular microgrid architecture. Over the past several weeks, we have continued to make tangible progress on that deployment initiative.

We previously engaged BlueFlare Energy Solutions to support front-end engineering and design activities for the site and earlier this month announced the selection of Ascend Consulting as our engineer for the project. ASCEND will lead engineering and design as the project advances from conceptual planning into detailed engineering and AESO-ready deliverables. The project is on schedule for inclined deployment readiness during the Q1 of 2027.

We believe these milestones are important because they demonstrate prompt execution against our stated strategy. Alberta represents one of the most attractive power and infrastructure markets in North America, with significant demand emerging around AI and high-performance computing deployments.

Our objective is to position Avax One within what we believe is a multibillion-dollar infrastructure opportunity developing across the region. We believe this approach creates several advantages. First, it materially shortens deployment timelines relative to traditional grid-dependent hyperscale deployment. Second, it enables us to target the growing missing middle of AI demand, workloads typically ranging from one to 50 MW that require dedicated capacity but are underserved by hyperscale economics and conventional colocation providers.

Finally, our approach enables disciplined incremental scaling. Rather than pursuing multibillion-dollar campuses, we can deploy capacity in modular phases aligned with customer demand and capital efficiency in the tens of millions of dollars instead.

Importantly, we believe this strategy aligns directly with where AI infrastructure demand is heading. As AI applications move from centralized model training toward inference, real-time decision-making, and enterprise deployment, infrastructure increasingly needs to be distributed, resilient, and regionally positioned. Our existing footprint provides a meaningful foundation for this transition.

Through our Bitcoin mining and digital infrastructure operations in Alberta and Ohio, including approximately 300 petahash per second of mining capacity in Alberta, we already have experience operating power-intensive infrastructure in energy advantage markets. The operational experience matters in a market where execution, permitting, energy procurement, and uptime are becoming increasingly important differentiators.

In parallel with our infrastructure strategy, we continue to build what we believe is one of the most differentiated digital asset treasury models in the public markets. Our Avalanche treasury remains a strategic pillar of our business.

Avalanche has firmly established itself as a leading institutional blockchain system. Tokenized real world assets on the network grew more than 10x in 2025, surpassing $1.3 billion in total value locked, a clear signal that tokenization on Avalanche has moved from experimentation to real financial infrastructure. From an institutional standpoint, JPMorgan's Onyx division, Apollo Global, and WisdomTree leveraged an Avalanche evergreen L1 under Singapore's MAS Project Guardian to demonstrate tokenized alternative investment portfolio management.

BlackRock expanded its BUIDL fund tokenization to $500 million in Avalanche, and Visa formally named Avalanche as a supported blockchain for stablecoin settlement. On the public sector side, the California DMV digitized 42 million vehicle titles on Avalanche, cutting transfer times from weeks to minutes. We view our treasury position as strategic exposure to what is becoming a foundational layer of global institutional finance.

That foundation is built on Avalanche's core technical advantages: scalability, customizable architecture, and regulatory-oriented design. Within our treasury, the majority of our AVAX holdings are actively staked to generate yield, creating an operating flywheel where treasury assets contribute to funding operations and infrastructure development. We have also expanded into DeFi-enabled staking strategies, such as our Treehouse deployment, designed to enhance the productivity of our holdings and diversify yield generation opportunities.

We see this as an important evolution of the treasury strategy. Rather than simply holding digital assets on our balance sheet, we are focused on maximizing the productivity of those assets through staking validator participation and carefully selected on-chain yield opportunities. Over time, we believe this creates a differentiated model that combines exposure to the long-term growth of the Avalanche ecosystem with recurring yield generation and strategic ecosystem participation.

More broadly, we believe the convergence of AI infrastructure and on-chain finance is only in its nascent stages. AI agents, decentralized applications, tokenized financial systems, and machine-native economies will require both compute infrastructure and programmable financial rails. We believe Avax One is uniquely positioned because we are building exposure to both sides of that infrastructure stack. Physical infrastructure through modular AI and HPC data centers, and digital infrastructure through our Avalanche treasury and ecosystem participation.

Avax One was purpose-built to be a scalable, regulated public market gateway for investors seeking exposure to the growth of the on-chain economy and next-generation digital infrastructure. We believe regulation, operational discipline, and real cash flow-generating infrastructure will matter increasingly over time as these industries mature. Importantly, we are not building a business dependent solely on token participation.

We will own and operate real infrastructure assets capable of generating diversified cash flow across AI infrastructure, digital assets, mining operations, and on-chain yield generation. We believe that combination of power infrastructure, operational cash flow, and strategic exposure to Avalanche and the on-chain economy positions Avax One differently from both traditional treasury companies and conventional infrastructure developers.

We are still in the early stages of executing this vision, but believe the groundwork established over the past few months and into the next quarter represents an important step in positioning Avax One for the opportunities ahead. Before I turn the call over to Chris, I want to address our Nasdaq listing status directly. As previously disclosed, we had received a deficiency notice related to our minimum stock price.

We subsequently requested a hearing, and I am pleased to report that the Nasdaq Listing Qualifications Panel has granted us the exception with a period of time to regain compliance. This gives us a defined runway to execute on the business plan I just outlined. As we've been given until July 6th of this year to have a closing bid price for 10 consecutive days of over $1. We are taking concrete steps to meet the conditions of that extension, which is why we've asked our shareholders to approve a reverse stock split at our annual meeting at the end of this month.

We remain committed to maintaining our Nasdaq listing and believe the operational and strategic progress we are making positions us well to achieve compliance within the timeframe provided. With that, I will now turn the call over to Chris to review our Q1 financial results.

Chris?

Thank you, Jolie. As a quick reminder, as we review our Q1 2026 financial results, all comparisons and variance commentary refers to prior year quarter unless otherwise specified. Total revenue for our Q1 2026 increased materially to $2.5 million compared to approximately $300,000 in last year's Q1. Primarily driven by our Avalanche digital-asset treasury strategy, which generated approximately $1.9 million in staking rewards in Q1 of 2026, coupled with the revenue from our Bitcoin mining business, which generated approximately $600,000 in revenue this year.

Our total operating expenses for the Q1 of 2026 were $47.1 million, which is compared to $2.1 million in the Q1 of 2025. The operating expenses in the 2026 Q1 included $43.3 million of non-cash charges related to several items.

One, $36.3 million unrealized loss on the change in the market value of our digital assets. Two, a $5.3 million loss on digital asset transactions attributable to the deployment of our AVAX tokens in the Treehouse network into tAVAX tokens. Three, we had a $1.1 million impairment of liquid staking tokens. Four, we had $300,000 of depreciation amortization expense.

Finally, a $300,000 charge incurred as a result of the vesting of shares issued in 2025 to several board advisors, board members, and certain executives. Those non-cash charges totaled $43.3 million of the $47.1 million operating expenses.

In addition to these non-cash charges, we also incurred certain one-time non-recurring charges for costs related to reorganizing and restructuring our back-office operations, including severance, stay bonuses, and certain duplicative costs totaling approximately $200,000. Adjusting for these non-cash charges and one-time non-recurring costs, the adjusted operating loss for the Q1 was $1.1 million.

Our net loss for the quarter was $46.4 million or $0.48 per diluted share, compared to net loss of approximately $145,000 or $10.50 per diluted share in the Q1 of 2025. Adjusting for the non-cash and one-time costs discussed previously, our adjusted net loss for Q1 of 2026 was $2.9 million or only $0.03 per diluted share. As of March 31st, 2026, our cash and cash equivalents were $16.5 million.

That, coupled with our restricted cash of $5.4 million and an escrow receivable balance of $5 million, result in total liquidity available to the company of $26.9 million. This is compared to approximately $27.5 million in total liquidity at the end of December of 2025. We believe this cash balance provides us with approximately three years of operating runway without the need to raise any external capital and without taking into account any revenue generated by the company.

As of March 31st, last day of our Q1, Avax One held approximately 14 million AVAX tokens with a net value of approximately $125 million. Since the inception of our digital asset treasury strategy last November, we've generated approximately $2.7 million in staking revenue, representing an annualized yield of approximately 6%.

Looking ahead, we'll continue to maintain a prudent approach to capital allocation as we execute on the next phase of Avax One's growth strategy. We believe the market opportunity around the AI and HPC infrastructure is substantial, and we are positioning the business to participate in that growth through a capital-light, modular, power-first approach.

We continue to believe that our shares are trading at a meaningful discount to the intrinsic value of the business and the long-term earnings potential of our platform. As a result, we will deploy capital in ways we believe will maximize long-term shareholder value, such as the repurchases of our shares, while preserving flexibility to execute on the opportunities we have in front of us.

We believe Avax One is uniquely positioned at the intersection of two powerful secular trends: the rapid growth of AI infrastructure demand and the continued institutional adoption of digital assets and on-chain financial systems.

With a growing infrastructure platform, exposure to energy advantage markets, and strategic alignment with the Avalanche ecosystem, we believe we have established a strong foundation to scale the business and compound value over time. This concludes our prepared remarks, and we'll now open it up for questions from those participating in the call. Operator, back to you.

Thank you. The first question we have is from Devin Ryan of Citizens Bank. Please go ahead.

Hey, this is Noah Katz on for Devin. Thank you guys for taking my questions. A lot of developments here to dive into. You're evolving your business into a power-first digital infrastructure company. As we think about the company over the next few years, how should we think about the connection between the Avalanche treasury and the data center build-out? More specifically, are these two parallel opportunities, or do you see a path where you can more deeply and directly integrate them over time? Thanks.

Thanks for the question. I believe that the answer is we can do both. Obviously, we can run them in parallel. What's particularly interesting to us is to take advantage of some of the unique features of the Avalanche blockchain, such as the compute, which is done with relatively small amounts of power compared to protocols that are built on Ethereum or Solana.

What that means is we can run powerful protocols on our 10-megawatt microgrid data centers rather than having to use the much larger data centers. We believe that over time we will be able to integrate these strategies and that we'll be able to dovetail them in a very efficient manner.

Interesting. Okay. Thanks for that. As a follow-up, also on the infrastructure side, you've announced a data center in Alberta and the FEED proposal with BlueFlare. Can you walk us through the development process from here, starting with engineering and permitting and construction to eventually get to contracting? As you look towards 1Q 2027, what are the most important milestones you need to hit to get to your target? Thanks.

Well, obviously, we're looking at two different potential scenarios. One is one where we would start from ground zero, and the other is the potential opportunities to purchase a facility that already has the initial permitting and engineering complete. If we're able to do that would save us approximately two to four months in the timeline. The way this is going to work is we have ASCEND in place, they're based in Calgary, and they specialize in engineering for data center build-outs.

The permitting is obviously if we go, you know, starting from square one, the permitting is the first part of the process. The engineering happens at the same time. We go into the construction phase, and at the same time as completing the initial construction is when we'll bring in potential tenants.

There's a lot of demand for this microgrid strategy. All in all, we see this working and being able to have our first microgrid center up and running with a tenant by the end of Q1 of next year. The interesting thing is that these can be done in parallel. As we find sites, if we're able to finance it, we could potentially, arguably, you know, run two or three of these in parallel at one time.

Got it. Makes sense. If I could fit one more in, it's just how are you guys thinking about the resource allocation, I guess, across all three areas? What would push you to allocate more capital to the data center or the treasury or the Bitcoin mining? Thanks.

Okay. Bitcoin mining is the legacy business. While we're building out the data center, we will continue to mine Bitcoin and possibly take advantage of power and available machines, you know, for short-term cash flow. Right now, that makes a lot of sense to us because we are able, on a project basis, to be cash flow positive on our Bitcoin mining.

The capital allocation will really depend on, you know, in the short term, getting the first data center up and running is a priority for us. We're also, as everybody knows, looking at various opportunities to bring cash flowing businesses on-chain that would benefit from being on the Avalanche blockchain. We will look at it with our board, and we'll look at it on a case-by-case basis.

Okay. Makes sense. Thank you.

The next question we have is from Allen Klee of Maxim Group. Please go ahead.

Yes. Hi. Thank you for taking my question. For the project in Alberta, where for 10 MW, if this is moving to, if it's an AI-powered data center, it's going to be more demanding on power and water, what type of things will you have to do to address that in the construction and all the stuff you do? Thank you.

Thanks for the question, Allen. You know, I think a lot of those details will come out with the due diligence and the initial works that ASCEND is doing. I don't think that at this point I can really address all those questions, except to say on the power side, we will be behind-the-meter, basically starting with flared natural gas.

We'll also have redundancies built in. We'll have the BESS system, which is the battery-operated backup, and we'll also have the ability, in a, you know, a rare case scenario if we had to connect to the grid. As far as any requirements for water, I haven't specifically been made aware of any issues there, so I assume that there won't be any problems.

Again, that sort of detail, we're going to rely on the engineers to brief us.

Got it. As you get to construction and everything becomes power-ready and it becomes a very attractive asset, when you think about tenants, does it make sense to try to find one tenant or multiple tenants? Well, I have a follow-up after that. Thanks.

I think that that will depend on who we see. Obviously, we're going to look for, you know, financially solid, credit-worthy tenants. Since we're starting out with microgrid centers at 10 MW, I can't imagine that we'd want to piecemeal with lots of small tenants. My guess, although this is just a guess at this point because it's a little premature, my guess is that each microgrid facility would have one or maybe two or three tenants max, and that would be about it.

Okay. That makes sense. Also just in terms of the use of what it's being used for now, can you talk about what the current use of is in Alberta?

The current use of what? The data centers?

Yes.

We're gonna be building it, so it's not being used at all. We'll be starting from scratch unless we find, as Jolie mentioned, something to acquire that's already got some sort of, you know, support already built in. If we do find something that has power and is permitted, as Jolie mentioned, we would mine Bitcoin for a little while there while we build out the rest of the 10-megawatt data center.

Okay. I'm sorry, but Are there some areas where you're looking at areas where they're currently mining Bitcoin that could be transitioned over?

Yeah.

I think for the most part we're looking at, you know, starting from scratch. Although, you know, if we find an opportunity where there is some initial infrastructure in place, we'll do that. You know, to mine Bitcoin, it's a lot easier. You get a connection to the power, you throw up a generator and a container and plug some machines in, and you can mine Bitcoin. The data center obviously requires more steps, and that's why we said that the Bitcoin, where feasible, would be an interim revenue generator where it makes economic sense.

Thank you. Then, you mentioned the Treehouse deployment for enhancing yields. Could you just expand on what you're doing there?

Yeah. Treehouse is a DeFi protocol where we deployed 830,000 Avalanche tokens. It works through the BENQI platform. There's an interest arbitrage game that takes place where there's collateral and lending and borrowing, using the sAVAX, which is the AVAX tokens under the BENQI platform. We deploy the tokens there in anticipation of getting some interest rate arbitrage on the lending, which would add to the data staking yield to improve the overall yield.

Can you use the same Avalanche coin for staking and for this?

Once you deploy them into Treehouse then uses what they call tAVAX to mint sAVAX into the BENQI platform. Then if you wanted to unwind it or at the end of the program, you unwind it back out into AVAX tokens again, and you get the incremental tokens that you earned through the Treehouse and BENQI yields that you would get on the interest arbitrage. You do convert it back to AVAX tokens on the way out.

Interesting. Okay. Thank you so much.

Thank you. Ladies and gentlemen, just a reminder, if you would like to ask a question, you may press star and then one. The next question we have is from Alex Hantman of Sidoti & Company. Please go ahead.

Thanks for taking questions, and congrats on the quarter.

Thank you.

Thanks.

Sure. On the AI, you know, HPC aspect, if the initial 10 MW site is successful, which it sounds like you've made a lot of progress towards, what's the ability, you know, and opportunity for the team in terms of repeatable or, you know, expandable playbook? Are you trying to, you know, focus on developing sites or, you know, owning and operating them for your own mining and, you know, use beyond that, or more of a partner to hyperscalers, you know, and GPU cloud providers?

We see this as an alternative to the hyperscalers. We will not own sites for our own purposes. The point is to develop them and then get tenants in, and the tenants will use them for the AI, HPC, forge, compute, whatever use they have, that can be managed with the 10-megawatt site is our goal.

Okay, thanks. Just on the legacy business, you know, I'm seeing more institutions launching Avalanche-based L1s, you know, for tokenization, for payments, stablecoins. I'm just curious, you know, where do you see AVAX sitting in that value chain going forward? Is it, you know, treasury holder, validator, liquidity provider, infrastructure partner? Are you still interested in M&A in that space, or is it really now fully transitioning to the AI data center space?

On the Avalanche side, it's all of the above. You know, we are still looking at M&A opportunities to bring, you know, financial companies on-chain to build that business. We do have a validator on our own as well. We're doing all of those things to promote and continue to build the Avalanche ecosystem.

Great. Thanks for taking our question and follow-up.

You're welcome.

Ladies and gentlemen, we have reached the end of the question and answer session, and I would like to turn the call back to Jolie Kahn for any closing remarks.

Okay. First of all, I'd like to thank everybody who participated today and for the continued support and interest in our story. Thanks very much for those who put forward the questions. I really do value your inquisition and our ability to provide more information. As we look ahead, our focus remains on disciplined execution as we continue scaling Avax One, at the intersection of AI HPC infrastructure and the on-chain economy through Avalanche.

We believe the combination of modular power-first infrastructure, a productive digital asset treasury, and a regulated public market structure positions us to participate in some of the most important long-term trends shaping digital infrastructure and financial technology. We believe that the combination of these facets is our greatest differentiator.

We are still in the early stages of executing our combined strategy, but we believe the foundation we've established over the past several months positions Avax One well for the opportunities ahead. On behalf of the entire team and our board of directors and advisors, thank you for your continued support and confidence in Avax One. We look forward to updating you on our progress in the quarters ahead. We look forward to speaking with you again on our next earnings call in August. Have a good evening.

Thank you, everybody.

This concludes today's conference. Thank you for joining us. You may now disconnect your lines.

Good afternoon, everyone, and thank you for participating in today's conference call to discuss AVAX One's financial and operating results for the fourth quarter and full year ended December 31, 2025. Joining us today are the company's Chief Executive Officer, Jolie Kahn; and Chief Financial Officer, Chris Polimeni. By now, everyone should have access to AVAX One's Fourth Quarter and Full Year 2025 earnings press release, which was issued earlier this afternoon at approximately 4:05 p.m. Eastern Time. The release is available in the Investor Relations section of the company's website at www.avavax-one.com. This call will also be available for webcast replay on the company's website. Following management remarks, we'll open up the call for your questions. Please be advised this conference call will contain statements that are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain known and unknown risks and uncertainties as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC. Do not place undue reliance on any forward-looking statements, which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements. For important risks and assumptions associated with such forward-looking statements, please refer to the company's SEC filings. I will now hand the conference over to Jolie Kahn, Chief Executive Officer. Thank you. You may begin.

Thank you, operator, and thank you, everyone, for joining us today. I'm pleased to welcome you all to our first earnings conference call as AVAX One Technology. The fourth quarter of 2025 was a transformational period for AVAX One as we completed our transition to an Avalanche-focused digital asset treasury strategy. While our 2025 results only reflect a partial quarter of this new model, it's worth noting that nearly half of our annual revenue was generated in the fourth quarter following the implementation of this strategy, which we believe validates both the strength of our approach and our ability to execute. We also made meaningful progress in building our AVX treasury expanding our staking activities and establishing the foundation for long-term on-chain yield generation. I'd like to start by briefly sharing my background and why we believe Avalanche is the leading institutional-grade blockchain designed to serve as the foundational digital settlement layer for the future of finance. I've spent more than 3 decades working at the intersection of corporate finance, securities law and emerging financial technologies, advising public companies, institutional investors and hedge funds on complex financings, mergers and acquisitions and public market transactions. In recent years, my work has focused heavily on digital assets and blockchain infrastructure, including serving as General Counsel to one of the largest Bitcoin mining companies from 2018 through 2023 and advising multiple public companies in the digital assets industry. That experience across capital markets, regulation and blockchain technology has given me a comprehensive perspective on where digital finance is headed and why we believe Avalanche represents one of the most important institutional grade blockchain platforms being built today. That perspective informs our strategy at AVAX One. And before discussing the company specifically, I'd like to step back and highlight the broader transformation underway across digital assets and global financial infrastructure. Digital assets have evolved beyond their early speculative phase and are increasingly being integrated into the financial system as programmable infrastructure for payment settlements and other capital markets activity. One of the clearest examples is the rapid growth of stablecoins, which now represent more than $300 billion in circulation and facilitate over $1 trillion in annual transaction volume. At the same time, we are seeing the early stages of a broader transformation in capital markets through the tokenization of real-world assets. Today, approximately $18 billion of assets are tokenized in various blockchains and institutional participation has accelerated significantly, particularly following the approval of spot Bitcoin ETFs in early 2024. As these trends develop, the capabilities of the underlying blockchain infrastructure become increasingly important. In our view, Avalanche is one of the most compelling platforms supporting the next phase of adoption with subsecond transaction finality and a unique subnet architecture known as the Avalanche layer-one that enables institutions to launch fully customizable blockchain environments. This architecture has attracted growing institutional engagement with organizations, including Apollo, Citi, JPMorgan and KKR exploring tokenization initiatives on Avalanche. This ecosystem continues to expand, supported by a global validator network, hundreds of decentralized applications and attractive staking economics. At the same time, the regulatory environment is evolving in ways that support broader adoption. Recent U.S. legislative initiatives, including the GENIUS Act and the ongoing work toward the CLARITY Act represent important steps towards establishing clear frameworks for stablecoins and digital assets within regulated financial markets. Taken together, these technological, institutional and regulatory developments reinforce our view that blockchain networks designed for institutional grade infrastructure will play an increasingly important role in the future of finance. For AVAX One, these are not just industry trends. They are the foundation of the strategy we are building. To strengthen our platform, we've assembled a group of experienced industry leaders and strategic partners with deep expertise across digital assets, capital markets and institutional finance. Our advisers include Anthony Scaramucci of SkyBridge Capital and Brett Tejpaul, Head of Coinbase Institutional and former Head of Digital Assets at Barclays, and we are supported by our sponsor, Hivemind Capital, a leading digital asset investment firm. AVAX One is built around several complementary strategies that enable us to participate directly in the growth of the Avalanche ecosystem while generating long-term shareholder value. The foundation of our model is taking our AVAX tokens, which are in protocol native rewards paid in AVAX enabling us to compound AVAX per share while maintaining direct exposure to the growth of the Avalanche ecosystem. In addition, we are looking to build our proprietary validator infrastructure on Avalanche. By operating validator modes, we can become an active participant in securing the network while creating the opportunity to earn delegation fees as other token holders take through our platform. Beyond these network native revenue streams, we are pursuing a disciplined fintech acquisition strategy focused on identifying established financial platforms that can benefit from migrating elements of their infrastructure onto Avalanche. By bringing financial workflows on chain, we believe these businesses can achieve faster settlement, improved transparency and greater scalability while generating cash flow to support continued platform expansion. We are also selectively participating in institutional-grade DeFi opportunities across the Avalanche ecosystem. As an example, earlier this month, we announced a partnership with Treehouse to expand yield generation on our AVAX holdings, deploying more than 800,000 AVAX into its liquid staking infrastructure. This deployment is expected to generate an approximate yield of 6% while providing additional flexibility to participate in broader on-chain financial activity. We believe these initiatives position AVAX One as a unique public market platform for participating in the growth of Avalanche and the broader expansion of on-chain finance. Looking ahead, we are entering 2026 with a fundamentally transformed operating model following the launch of our AVAX digital asset treasury strategy in November 2025. While last year reflected a transitional period, we saw meaningful momentum in the fourth quarter, and we're optimistic for what the year ahead holds for our business. With that, I will now turn the call over to Chris Polimeni, our CFO, to review our fourth quarter financial results. Chris?

Thank you, Jolie. As a quick reminder, as we review our fourth quarter 2025 financial results, all comparisons and variance commentary refer to the prior year quarter unless otherwise specified. Total revenue for the fourth quarter of 2025 increased materially to $1.1 million compared to approximately $27,000 in the prior year fourth quarter, driven by the implementation of our new Avalanche digital asset treasury strategy, which generated approximately $607,000 in staking rewards in Q4 '25, coupled with a full quarter of Bitcoin mining in '25, which generated approximately $480,000 in revenue. Total operating expenses in Q4 '25 were $16.8 million compared to $2.1 million in Q4 '24. This increase was primarily driven by a $7.8 million non-cash unrealized loss on the market value of our digital assets as well as a $5.6 million non-cash impairment related to intellectual property related to a patent for fiber-rich flour we purchased in 2021. Excluding these noncash charges, operating expenses for the fourth quarter of '25 were $3.4 million. It's worth noting that the previously mentioned $3.4 million includes approximately $500,000 of certain onetime costs related to the pipe financing and strategic transformation implemented in the fourth quarter. These costs included items such as legal and professional fees as well as severance to former employees. Net loss for the fourth quarter of '25 was $16.6 million or $4.11 per diluted share compared to a net loss of approximately $1.9 million or $12.69 per diluted share in Q4 of '24. As of December 31, 2025, our cash and cash equivalents were $22.1 million compared to $490,000 as of 12/31/24. We believe this cash balance provides us with approximately 3 years of operating runway without the need to raise any external capital. As of December 31, '25, the last day of the fourth quarter, we held 13.9 million Avalanche tokens with a net value of $133.3 million as of March 26, 2026. Since the inception of our digital asset treasury strategy in November 25, we have generated approximately $2.5 million of AVAX tokens in staking rewards, which represents an annualized yield of approximately 5.5%. Looking ahead, we will maintain a prudent approach to capital allocation. In November, our Board authorized a $40 million share repurchase program. And through today, we've repurchased approximately 3.3 million shares. We continue to believe our shares are trading at a meaningful discount to the intrinsic value of the business and view that as an attractive opportunity to deploy capital. We've been opportunistic with these repurchases and expect to remain disciplined in how we allocate capital going forward. Balancing share buybacks with continued investment in Avalanche accumulation and staking initiatives with the goal of maximizing long-term Avalanche per share and overall shareholder value. We expect the full year benefit of Avalanche token accumulation and staking to meaningfully scale our revenue profile and drive positive EBITDA in 2026 under current market conditions. Our guidance reflects a material improvement in both revenue and profitability, supported by disciplined capital deployment and a structure designed to generate operating leverage across a range of digital asset price scenarios. Importantly, our model is designed to generate consistent operating cash flow through staking and related activities, allowing us to fund operations without the need to liquidate any digital asset holdings. This concludes our prepared remarks. We will now open it up for questions from the participants on the call. Operator, back to you.

[Operator Instructions] Our first question comes from Devin Ryan with Citizens Bank.

This is Noah Katz on for Devin. First, I'd like to start off with a question on your M&A pipeline. Thanks for the color on your capital allocation priorities. You mentioned advancing opportunities to expand the footprint and generating cash flow for platform expansion. Can you talk about how the M&A search is going and what type of businesses you're interested in looking at on a deal profile and size level? And then off of that, what type of gaps are you trying to close on through these acquisitions?

So thank you for the question. First of all, we're not going to give specific numbers at this time. We're working on the strategy in conjunction with our Board and with Hivemind as our asset manager. Suffice it to say, we're looking at businesses that have a good strong history of operations and with positive EBITDA and looking for businesses in a price range that's relatively appropriate given the amount of cash that we have on hand and our desire to not further dilute the stockholdings of our current shareholders.

Okay. Makes sense. And then as a follow-up further on your capital allocation. We saw you completed the $3.3 million of share repurchases under the $40 million authorization. How do you prioritize between share repurchases and incremental Avalanche purchases? What would tilt you toward buybacks versus token buying?

Well, it really depends on where the market is. Right now, our stock is significantly undervalued in our opinion. So in those circumstances, obviously, it mitigates towards the repurchase of shares versus the purchase of Avalanche, but we have a very, very close conversation that goes on a periodic basis, at least once a week with our asset manager, and we make sure that what we're doing is consistent with our goals and with their advice given their expertise in the market.

Our next question comes from Bill Papanastasiou with Chardan Capital Markets.

I just wanted to touch on the M&A pipeline as well. Without getting too granular, can you speak to whether some of the targets that you're looking at are currently or could intersect with the Avalanche platform? Or are you looking at this more from the sense of a diversification play for your overall strategy?

At the moment, we're looking at various technologies and businesses that would benefit from being on the Avalanche platform. If you look at the evolution of blockchain, originally, there was only Bitcoin, which was one asset and one chain. Then there was a second level of evolution such as Ethereum, which is one chain and multiple assets. The beauty of Avalanche is it's multiple chains and multiple assets, both. So there's a lot of flexibility. And with using the L1 layer, you basically can customize for all sorts of issues, including cybersecurity, different permission levels and the speed with which transactions take place on the Avalanche blockchain, you can go through a complex set of transactions literally in under 1 second. A good example is what California did with transferring auto titles. A good part of the California DMV is now running on a technology that runs on Avalanche. And literally transferring titles used to take weeks and months in some parts of California, those same transactions now can be done in a matter of minutes. So any sort of business along those lines where there's a need to have speed combined with enhanced compliance and also the ability to really customize how it works are all targets that we'd like to look at and that we think are very well supported and uniquely supported by Avalanche.

Appreciate that color. That's really helpful. And then just as a follow-up, perhaps you could just touch on your Bitcoin mining operations, if it wasn't already touched upon. What -- where do they stand today? And do you see the company continuing to mine Bitcoin into the kind of medium to longer term?

Yes, we're going to continue to mine Bitcoin medium term at least. We're opportunistically looking at expanding on a very small scale, but maintaining profitability on a site-by-site location basis. So we do monitor the business. We're probably up to about 300 petahash in total in terms of our capacity. And we're just -- we're not going to invest a lot of money there, but we're doing it judiciously to maintain profitability.

This now concludes our question-and-answer session. I would like to turn the floor back over to Jolie for closing comments.

Thank you. As we look ahead, we remain focused on executing our strategy and scaling AVAX One as a leading institutional platform within the Avalanche ecosystem and the broader on-chain financial economy. We believe the foundation we've built, combined with a lean operating model and disciplined cost structure positions us to drive long-term growth and profitability, expand our digital asset treasury and deliver enduring and increasing value for our shareholders. Thank you all for joining us today and for your continued support and confidence in AVAX One's vision. We're proud of what we've accomplished over the past few months and are very optimistic about the opportunities ahead. We look forward to speaking with you again on our next earnings call.

Thank you, everyone.

Ladies and gentlemen, thank you for your participation. This concludes today's conference. Please disconnect your lines, and have a wonderful day.