Mr. Aydin Kilic reports

HIVE DIGITAL TECHNOLOGIES DEBUTS NEW NAME AND STRATEGIC EXPANSION TO POWER THE FUTURE OF ARTIFICIAL INTELLIGENCE WITH OUR NVIDIA GPU CARDS

Hive Blockchain Technologies Ltd. has officially become Hive Digital Technologies Ltd. to better represent the company's evolving focus on the revenue opportunities with its Nvidia graphics processing unit (GPU) cards in cloud compute technology and its mission to drive advancements in artificial intelligence applications such as ChatGPT to support the new Web3 ecosystem.

Hive has been a pioneering force in the cryptocurrency mining sector since 2017. The adoption of a new name signals a significant strategic shift to harness the potential of GPU cloud compute technology, a vital tool in the world of AI, machine learning and advanced data analysis, allowing it to expand its revenue channels with its Nvidia GPU fleet.

Hive, while maintaining a strong presence in bitcoin mining, intends to utilize its robust 38,000 Nvidia GPU fleet for computational tasks on a massive scale. In addition, the company plans to branch out into the rental of GPU server clusters through marketplaces and the development of its new service, Hive cloud. This cloud service will empower users with access to a virtual instance of a single GPU, a bare-metal server equipped with up to 10 GPUs, or even clusters of multiple servers to provide an array of computing power. Hive cloud aims to provide small- and medium-sized businesses with an efficient and cost-effective alternative with substantial savings from the major cloud service providers.

"Our name change and strategic pivot indicates our progressive trajectory as a company. High performance computing, driven in large part by GPU processing power, is growing incredibly fast today thanks to this impressive new generation of consumer and enterprise AI tools. Training these tools, from ChatGPT to Midjourney, require high-end GPU compute. As businesses adapt to the new AI world, we believe they will seek companies like Hive to develop their own AI tools to give them a competitive edge in this new era of digital information. Hive cloud will aim to provide AI compute for enterprises where privacy and ownership of data are key considerations. We are seeing the world's GPU computing demands being best served by Nvidia data-centre-grade GPUs, as they feature the unique tensor core and ray tracing (RT) core architecture, which are included in our fleet. Hive purchased Nvidia GPUs with these features that go above and beyond the computing requirements for mining ethereum. Additionally, we have partnered with SuperMicro to provide the CPU computing power and storage to complement our Nvidia GPUs. Our initial order of SuperMicro servers are expected to arrive in the next month, and the company expects to have additional deliveries announced throughout the year," expressed Aydin Kilic, president and chief executive officer.

Mr. Kilic continued: "As we expand our GPU cloud business, we require a strategy that better reflects both sides of our business. We build infrastructure for emerging digital tech, not just blockchain, and we intend to utilize our large fleet of GPUs to grow a cloud hosting business. We believe AI and machine learning are going to drive significant demand for GPU compute going forward."

The company's decision to focus on GPUs and AI technology is informed by the growing importance of GPUs in advancing AI technology. GPUs are an essential element in the progression of AI technology, and notably, Nvidia tensor cores enable mixed-precision computing, dynamically adapting calculations to accelerate throughput while preserving accuracy. Their capacity to perform multiple calculations simultaneously positions them as key players in the development of more intricate and refined AI systems. Tensor cores enabled Nvidia to win the MLPerf industry-wide benchmark for inference. As the AI sector continues to grow, Hive anticipates that the need for efficient and powerful GPUs will correspondingly expand.

Executive chairman Frank Holmes stated: "ChatGPT is among the fastest-growing tech products of all time, and we think the underlying technology, large language models (LLMs), is proving to be highly disruptive, having attracted 100 million users in only two months. The training and fine tuning of these LLMs are powered by GPUs. We believe the demand from GPU computing with our Nvidia GPU cards has a potential for a high-margin business with annual revenues in the range over $100-million."

As Hive embraces this transformation, the company remains at the forefront of the digital industry, dedicated to driving innovation with sustainable, ethically driven technological solutions.

About Hive Digital Technologies Ltd.

Hive went public in 2017 as the first cryptocurrency mining company on the TSX Venture Exchange with a sustainable green energy focus.

Hive is a growth-oriented technology stock in the emergent blockchain industry. As a company whose shares trade on a major stock exchange, it is building a bridge between the digital currency and blockchain sector and the traditional capital markets. Hive owns state-of-the-art, green-energy-powered data centre facilities in Canada, Sweden and Iceland, where it endeavours to source green energy to mine digital assets such as bitcoin on the cloud. Since the beginning of 2021, Hive has held in secure storage the majority of its treasury of ETH and BTC derived from mining rewards. Its shares provide investors with exposure to the operating margins of digital currency mining, as well as a portfolio of bitcoin. Because Hive also owns hard assets such as data centres and advanced multiuse servers, it believes its shares offer investors an attractive way to gain exposure to the cryptocurrency space.

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