Mr. Frank Holmes reports

HIVE DIGITAL INCREASES HODL POSITION AND PROVIDES DECEMBER 2023 PRODUCTION AND CORPORATE UPDATE

Hive Digital Technologies Ltd. has released the unaudited production figures from the company's global bitcoin operations for the month of December, 2023, with 282.8 bitcoin produced. The company has maintained over 3.95 exahashes of bitcoin mining capacity on average for December, 2023, including ASIC and GPU BTC hash rate (all amounts in U.S. dollars, unless otherwise indicated).

Summary overview:

• Hive produced 282.8 bitcoin in the month of December, 2023, from ASIC and GPU mining operations, representing an average of 71.6 bitcoin per exahash, with an average hash rate of 3.95 exahashes per second for the month of December.
• Hive produced an average of 9.1 BTC per day in December, which amounts to approximately 1 per cent of the global network.
• Hive ended the month of December with 4.08 EH/s of mining capacity, including ASIC and GPU BTC hash rate, consistent with the prior month.

The company's hodl position at the end of December, 2023, was 1,707 BTC, which is 80 BTC higher than the prior month.

Appointment of chief operating officer and chief information officer

Hive is pleased to announce the appointment of Luke Rossy to chief operating officer and Mario Sergi to chief information officer.

Frank Holmes, the executive chairman of Hive, said: "Luke Rossy has been with Hive since we acquired our New Brunswick data centre from GPU One almost three years ago, and we are proud to promote him as our chief operating officer. In this time, he has demonstrated a strong work ethic, a curiosity to learn with improved critical thinking, and an initiative to learn and tackle new challenges. Luke has taken on leadership roles to manage and support our global team and ASIC mining operations."

Aydin Kilic, Hive's president and chief executive officer, said: "I have worked very closely with Luke in this time, where our goal has been for Hive to lead as the most efficient bitcoin miner. Coming from a strong foundation of code implementations in novel applications in proof-of-work algorithms, additionally, Luke has represented Hive globally at bitcoin industry conferences, and has developed a mastery of bitcoin mining systems and analytics.

"Mario Sergi, who joined Hive in August, 2021, brings a wealth of experience to Hive as well in his current role as operations and infrastructure manager," Mr. Kilic added. "Since joining Hive, he has expanded his horizons immensely, implementing new systems and network architectures to bolster the company's GPU business operations out of Tier 3 data centres, laying the foundation for our [artificial intelligence] infrastructure. Mario has been diligent, resourceful, and has exhibited the discipline and tactical skill to oversee the company's information systems globally."

December, 2023, production figures

The company's total bitcoin production in December, 2023, was:

• 273.5 BTC produced from ASICs from an average hash rate of 3.82 EH/s from ASICs in December;
• 8.8 BTC produced per day on average from ASICs and 71.6 BTC/EH from ASICs in December;
• 4.08 EH/s of BTC month-end hash rate as of Dec. 31, composed of 4.05 EH/s of ASIC BTC hash rate and 0.03 EH/s of GPU BTC hash rate;
• Consistent month-over-month-end BTC ASIC hash rate (Nov. 30 month-end was 4.03 EH/s);
• Monthly average of 3.95 EH/s, composed of an average of 3.82 EH/s of ASIC mining capacity and an average of 130 petahashes per second of bitcoin GPU mining capacity during the month of December;
• This is a 4.6-per-cent month-over-month decrease in BTC average hash rate from ASICs and GPUs combined (November average BTC hash rate was 4.14 EH/s).

New Brunswick facility update

The New Brunswick facility is currently operating at 1.8 EH/s while the substation is undergoing final maintenance. The full potential for the facility, which is expected to resume operations in January, 2024, should return to two EH/s. The company notes that prior to maintenance, the peak operating total global hash rate was 4.3 EH/s.

Bitcoin global network mining difficulty is volatile

Network difficulty factors continue to be a significant variable contributing to the company's gross profit margins. The bitcoin network difficulty was 68 T as of Dec. 1 and increased to an all-time high of 72 T as of Dec. 31. Accordingly, bitcoin mining difficulty ended the month of December about 6 per cent higher than the beginning of the month.

The bitcoin network difficulty is a publicly available statistic, which reflects the total number of bitcoin miners on-line. This is an important metric in analyzing a company's gross profit margins, along with the number of bitcoin produced. These data are publicly available on many websites, including the Blockchain website.

As more bitcoin is mined (difficulty increases), the daily bitcoin block reward (which currently is fixed at 900 bitcoin per day) gets split amongst more miners; thus, each miner receives a smaller portion of the block reward. Conversely, as bitcoin prices fall, many miners may lose money and power down, thus taking their hash rate off the network, causing network difficulty to decrease.

Those miners with the lowest costs of production, by virtue of having more efficient machines and/or lower energy costs, are able to continue production during these volatile cycles. Not all miners will continuously mine during the month. As a result, some miners will produce less bitcoin than expected, relative to their advertised hash rate. For the foregoing reasons, Hive will self-curtail part of its operations if the unhedged spot energy prices are uneconomical, thereby leaving part of its total gross hash rate unutilized.

All bitcoin miners are striving to use the most efficient bitcoin ASIC chips, and Hive is happy that it has been able to upgrade its global fleet during this crypto market downturn.

About Hive Digital Technologies Ltd.

Hive went public in 2017 as the first cryptocurrency mining company listed for trading 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 major stock exchanges, it is building a bridge between the digital currency and blockchain sector and 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 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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