Mr. Aydin Kilic reports

HIVE DIGITAL TECHNOLOGIES COMPLETES ACQUISITION OF PARAGUAY'S YGUAZU SITE, EXPANDING MINING CAPACITY BY 317%-FROM 6 EH/S TO 25 EH/S IN 2025

Hive Digital Technologies Ltd. has closed its acquisition of Bitfarms Ltd.'s Yguazu 200-megawatt hydro-powered facility in Paraguay. This strategic expansion marks a 317-per-cent increase in mining capacity, propelling Hive from six exahashes per second today to a projected 25 EH/s by September, 2025.

With this acquisition, Hive now has a total of 300 MW of mining infrastructure in Paraguay, including its previously announced 100-megawatt project in Valenzuela, which is set for energization by June, 2025. The company's global operational footprint will grow to 430 MW by third quarter 2025, spanning Paraguay, Canada and Sweden.

This milestone reinforces Hive's commitment to 100-per-cent-green-hydroelectric energy while establishing itself as a dominant force in high performance computing in Latin America. Paraguay provides low-cost hydroelectric power, a stable regulatory environment and competitive operational costs, making it an ideal location for Hive's rapid expansion.

Phased development plan for 200-megawatt Yguazu site

The 200-megawatt Yguazu facility will be developed in two phases:

• Phase 1: expected completion by April 1, 2025; construction is 80 per cent complete, with infrastructure nearly ready. This phase will add approximately six EH/s of hash rate, expected to be fully operational by second quarter 2025; Hive will assume the remaining payments for full energization;
• Phase 2: expected completion by Aug. 31, 2025; this phase will contribute 6.5 EH/s using hydro-cooled ASICs, enhancing efficiency and performance.

To achieve its ambitious 25 EH/s target, Hive has secured ASICs for 15 EH/s of operational hash rate (including Hive's existing 6.5 EH/s installed by March, 2025, and the 8.6 EH/s order of Bitmain S21+ Hydro ASICs, announced in November, 2024). Additional ASIC acquisitions will be announced in the coming months to support further growth. Once the 25 EH/s milestone is reached, Hive targets a fleet-wide efficiency of 16.5 joules per terahash, significantly reducing the cost of operations.

Strengthening U.S.-Paraguayan relations

Frank Holmes, executive chairman of Hive, stated: "This acquisition demonstrates our strategic focus on sustainable, high-growth expansion. Scaling our operations to 3 per cent of the global network by September, 2025, powered entirely by green energy, is a significant achievement. Paraguay's stability and economic policies-- bolstered by President Santiago Pena's leadership and international experience -- make it an excellent partner for Hive. President Pena earned a master's degree in public administration from Columbia University and worked at the International Monetary Fund in Washington, D.C., demonstrating his deep ties to U.S. economic policy. Additionally, Paraguay maintains strong diplomatic and trade relationships with Taiwan and Israel, reinforcing its position as a key U.S. ally in Latin America.

"Hive's presence in Paraguay not only strengthens our sustainable energy strategy but also delivers direct economic benefits. Our operations contribute monthly U.S.-dollar revenue to Paraguay's national utility company, Ande, supporting local infrastructure and growth. With this expansion, Hive is positioning itself as a major contributor to Paraguay's economic development while establishing regional leadership in Latin America's digital infrastructure industry."

Operational excellence and future growth

Aydin Kilic, president and chief executive officer of Hive, commented: "Our priority is delivering shareholder value while fostering sustainable local growth. This acquisition allows us to quadruple our capacity - from six EH/s to 25 EH/s in 2025 -- while maintaining one of the most energy-efficient operations in the industry. With a target efficiency of 16.5 J/TH fleet-wide, we are ensuring cost-effective, environmentally responsible operations.

"Beyond technology, we are committed to investing in Paraguay's infrastructure, supporting education and creating high-quality local jobs. Our 200-megawatt Yguazu facility was built to a high technical standard and provides additional 100-megawatt expansion potential. The regional substation we are drawing power from has 300 MW of capacity, and we have already installed placeholder infrastructure for additional transformers, should we decide to expand to a full 300 MW in the future."

Transaction details

The acquisition, valued at $56-million, includes ownership of a 240-million-volt-amp substation with 200 MW of capacity, as well as all associated land and facilities. Key terms include:

• $25-million paid at closing;
• $31-million payable in equal instalments over six months.

Hive estimates the total net costs to complete the site to 200 MW will be $400,000 per MW upon completion.

Advisers and counsel

Keefe, Bruyette & Woods, a Stifel company, acted as the exclusive financial adviser to Hive. Blue HF Legal LLP and BKM Berkemeyer served as legal counsel to Hive.

About Hive Digital Technologies Ltd.

Hive is a pioneering technology company advancing sustainable blockchain and artificial intelligence 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.

We seek Safe Harbor.