This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated October 3, 2024 to its short form base shelf prospectus dated September 11, 2024.
San Antonio, Texas--(Newsfile Corp. - February 6, 2025) - HIVE Digital Technologies Ltd. (TSXV: HIVE) (NASDAQ: HIVE) (FSE: YO0) (referred to as the "Company" or "HIVE"), a global leader in sustainable data center infrastructure, has released its unaudited production results for January 2025 (all amounts in US dollars, unless otherwise indicated).
Key Highlights for January 2025:
Bitcoin Production: Mined 102 BTC, bringing HIVE's HODL portfolio to 2,657 BTC, valued at $271 million as of January 31, 2025, based on a BTC closing price of approximately $102,000.
HODL Update: The Company's Bitcoin holdings increased by 34% year-over-year. However, on a month-over-month basis, BTC holdings saw a decline as HIVE strategically sold a portion of its BTC to invest in capital assets, including Bitfarms' 200 megawatt ("MW") hydro-powered Bitcoin mining assets in Paraguay.
Mining Capacity: Maintained an average mining capacity of 5.7 Exahash per Second ("EH/s") with fleet efficiency at 22 Joules per Terahash ("J/TH"). HIVE achieved a peak BTC-only hashrate of 6 EH/s and a peak BTC-equivalent hashrate of 6.4 EH/s.
Operational Efficiency: Achieved an average daily production rate of 3.3 BTC, equivalent to 18 BTC per Exahash.
Strategic Developments:
Paraguay Expansion: In January, HIVE announced the transformative acquisition of a 200 MW hydro-powered Bitcoin mining facility in Paraguay from Bitfarms Ltd. This acquisition is expected to accelerate the Company's growth and increase its global Bitcoin mining hashrate to an anticipated 25 EH/s by September 2025, a 317% increase from its current 6 EH/s.
Operational Investment: The Company estimates the total net cost to complete the Bitfarms site at $400,000 per MW. This acquisition, combined with existing operations in Canada and Sweden, is expected to increase HIVE's total operational capacity to approximately 430 MW by Q3 2025.
Efficiency Focus: To maintain disciplined spending and maximize operational performance, HIVE is investing cash flow into upgrading its existing fleet with more energy-efficient mining machines, supporting long-term sustainability and lower Bitcoin production costs.
Leadership Expansion: HIVE announced the appointment of Lieutenant General (Ret.) John R. Evans Jr. to its Global Strategy Advisory Committee. This marks a significant step in HIVE's mission to responsibly expand its global footprint as data centers increasingly become a national security priority.
Executive Commentary:
Frank Holmes, Executive Chairman of HIVE stated: "Our latest acquisition lays the foundation for transformational growth in 2025, expanding our operations 317% to 25 EH/s. This acquisition makes us one of Latin America's largest Bitcoin mining operators. We are deepening our relationship with Paraguay President Santiago Peña and key political leaders to support our growing presence there, which will bring mutual economic benefits for HIVE shareholders and the local community."
Aydin Kilic, President and CEO of HIVE, added: "HIVE continues to execute strategic mergers and acquisitions in the industry. This expansion in Paraguay, funded by our strong balance sheet, aligns with our focus on maximizing cash return on invested capital. Upon full deployment, we are targeting a blended fleet efficiency of 16.5 J/TH, positioning HIVE among the most energy-efficient Bitcoin miners globally. With consistent top industry rankings for uptime efficiency, we remain committed to operational excellence."
About HIVE Digital Technologies Ltd.
HIVE Digital Technologies Ltd. is a pioneering technology company advancing sustainable blockchain and AI infrastructure powered by green energy. As the first cryptocurrency miner to go public on the TSX Venture Exchange in 2017, HIVE has grown into a global leader in digital asset mining and AI computing. With operations in Canada, Sweden, and soon Paraguay, HIVE continues to innovate while reducing its environmental footprint.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Information
Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian and United States securities legislation and regulations that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes but is not limited to: the acquisition of the new site in Paraguay and its potential, the timing of it becoming operational; business goals and objectives of the Company; the results of operations for January 2025; the acquisition, deployment and optimization of the mining fleet and equipment; the continued viability of its existing Bitcoin mining operations; the receipt of government consents; and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.
Factors that could cause actual results to differ materially from those described in such forward looking information include, but are not limited to: the inability to enter into a binding agreement and complete the acquisition of the Paraguay site on the terms as announced or at all; the inability to complete the construction of the Paraguay acquisition on an economic and timely basis and achieve the desired operational performance; the ongoing support and cooperation of local authorities and the Government of Paraguay; the volatility of the digital currency market; the Company's ability to successfully mine digital currency; the Company may not be able to profitably liquidate its current digital currency inventory as required, or at all; a material decline in digital currency prices may have a significant negative impact on the Company's operations; the regulatory environment for cryptocurrency in Canada, the United States and the countries where our mining facilities are located; economic dependence on regulated terms of service and electricity rates; the speculative and competitive nature of the technology sector; dependency on continued growth in blockchain and cryptocurrency usage; lawsuits and other legal proceedings and challenges; government regulations; the global economic climate; dilution; future capital needs and uncertainty of additional financing, including the Company's ability to utilize the Company's ATM Program and the prices at which the Company may sell Common Shares in the ATM Program, as well as capital market conditions in general; risks relating to the strategy of maintaining and increasing Bitcoin holdings and the impact of depreciating Bitcoin prices on working capital; the competitive nature of the industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the need for continued technology change; the ability to maintain reliable and economical sources of power to run its cryptocurrency mining assets; the impact of energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which the Company operates; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; network security risks; the ability of the Company to maintain properly working systems; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; share dilution resulting from the ATM Program and from other equity issuances; the construction and operation of facilities may not occur as currently planned, or at all; expansion may not materialize as currently anticipated, or at all; the digital currency market; the ability to successfully mine digital currency; revenue may not increase as currently anticipated, or at all; it may not be possible to profitably liquidate the current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on operations; an increase in network difficulty may have a significant negative impact on operations; the volatility of digital currency prices; the anticipated growth and sustainability of electricity for the purposes of cryptocurrency mining in the applicable jurisdictions; the inability to maintain reliable and economical sources of power for the Company to operate cryptocurrency mining assets; the risks of an increase in the Company's electricity costs, cost of natural gas, changes in currency exchange rates, energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which the Company operates and the adverse impact on the Company's profitability; the ability to complete current and future financings, any regulations or laws that will prevent the Company from operating its business; historical prices of digital currencies and the ability to mine digital currencies that will be consistent with historical prices; an inability to predict and counteract the effects of pandemics on the business of the Company, including but not limited to the effects of pandemics on the price of digital currencies, capital market conditions, restriction on labour and international travel and supply chains; and, the adoption or expansion of any regulation or law that will prevent the Company from operating its business, or make it more costly to do so; and other related risks as more fully set out in the Company's disclosure documents under the Company's filings at www.sec.gov/EDGAR and www.sedarplus.ca.
The forward-looking information in this news release reflects the Company's current expectations, assumptions, and/or beliefs based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's objectives, goals or future plans, the timing thereof and related matters. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance, and accordingly, undue reliance should not be put on such information due to its inherent uncertainty. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether because of new information, future events or otherwise, other than as required by law.
