Mr. Frank Holmes reports

HIVE EXPANDS AND INNOVATES WITH 4X BITCOIN GROWTH FROM THE QUEBEC ACQUISITION IN 2020 TO MINE BITCOIN FROM HYDRO-ELECTRICITY AND RECYCLE THE ENERGY TO HEAT ADJACENT MANUFACTURING BUILDING

Hive Digital Technologies Ltd. has provided an update on its expansion strategy leading up to the 2024 bitcoin halving. In April of 2024, the bitcoin halving will occur, cutting daily mining production to approximately 450 bitcoin per day from 900 per day.

Executive chairman Frank Holmes stated: "When the 2020 halving happened, it caused significant disruptions in the industry. Hive seized the opportunity by acquiring large bitcoin mining operations at significant discounts because much of the industry was overleveraged. We could see a similar situation unfold over the next six months, and if it does, Hive will be ready."

Hive's Lachute, Que., bitcoin mining facility is an excellent example of Hive's strategic acquisitions around the 2020 halving. The Lachute operation was acquired in the spring of 2020. The property is located in a cool climate with plentiful and low-cost renewable energy. Since the acquisition, Hive has continually upgraded the mining hardware and expanded the facility.

Rami Janashvili, who built Lachute from its origins in 2016, built the facility to be the largest crypto mine in Canada at the time, during the Bitmain S9 Antminer miner era, with 18,000 S9 miners operating.

He is a former Israeli military parachutist, and today, he still enjoys the study and challenge of aerodynamics with his collection of giant-scale remote control airplanes. He has developed an immersion mining system at the Lachute facility. In addition to this, his team has built out the heat recycling system, where the heat energy from the bitcoin mining operation is used to warm a neighbouring facility, an approximately 200,000-square-foot swimming pool manufacturing building.

He expressed warmly: "Everything is teamwork, and that is where the success comes from. I'm very proud of my team, and we have increased Lachute from 500 petahashes per second earlier this year to over one exahash per second now."

Aydin Kilic, president and chief executive officer of Hive, said of the Lachute purchase: "In the month of September, 2023, we hit a milestone, where our facility in Lachute, Que., surpassed one EH/s of bitcoin mining capacity. This is a landmark achievement as Hive initially acquired this 30-megawatt facility in 2020, when it had a hash rate of approximately 250 PH/s. Therefore, we are very proud to see Lachute quadruple its hash rate under Hive's ownership, with the original team kept intact. This is a testament of our company culture of excellence, where we strive to seamlessly integrate our operations globally, allowing to be a top-performing bitcoin miner. Additionally, this is now the second facility Hive operates, which is over one EH/s, the other being our facility in New Brunswick."

Mr. Holmes added: "As the halving approaches, Hive will continue to make opportunistic investments, such as the 1,000 Bitmain S19k Pro miners we announced on Oct. 6, 2023, but we're only buying at prices that we expect to have rapid [return on investment], preferably prehalving. We've done a good job at maintaining discipline and will continue that trend."

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