Mr. Frank Holmes reports

HIVE DIGITAL TECHNOLOGIES SURPASSES 13 EH/S AS SCALABLE GROWTH AND REVENUE EXPANSION ACCELERATE IN PARAGUAY AND REACHES $300 MILLION ARR

Hive Digital Technologies Ltd. has crossed the 13-exahash-per-second threshold in global bitcoin mining hash rate, mining over 6.5 bitcoin daily since crossing this threshold. This scale-up has been driven by the deployment of the company's next-generation hydro-cooled bitcoin mining facilities in phase 2 at Yguazu, Paraguay.

Accelerating progress

The buildout of phase 2 at the company's Yguazu campus is progressing steadily, with over two EH/s of next-generation Bitmain S21+ Hydro ASIC miners now active at the site. Upon full deployment, the company anticipates that phase 2 will host approximately 6.5 EH/s of computation power, propelling the company toward its near-term goal of aggregate global hash power of 18 EH/s by the end of August, 2025.

"Our climb to 13 EH/s is the result of researched planning and focused execution across the organization," said Frank Holmes, co-founder and executive chairman. "Every exahash of the latest high-efficiency Bitmain S21+ ASIC miners we add is expected to reduce unit costs, thereby expanding margins and amplifying the value of every bitcoin earned by the company through its hash power. Management believes that this milestone signifies not only growth, but the realization of its strategic hash power acceleration. At Hive, scaling means stronger economics, greater efficiency and smarter capital deployment.

"We believe that Hive's 13 EH/s is just the beginning. With infrastructure and power already secured, increased hash power represents accretive growth and operational readiness," continued Mr. Holmes.

A fully financed road map to 25 EH/s

Hive's bitcoin mining capacity in phase 2 and phase 3 in Paraguay exclusively utilizes the Bitmain S21+ Hydro miner with an efficiency of 15 joules per terahash. Accordingly, as these hydro units come on-line, it will improve Hive's global average ASIC fleet efficiency. Hive's global ASIC fleet efficiency was approximately 20 J/TH at the completion of phase 1 in Yguazu with global operations at 11.5 EH/s, and will be 18.5 J/TH upon the completion of phase 2 in Yguazu with global operations at 18 EH/s.

Improved ASIC efficiency lowers the cost of bitcoin production as less energy is required to produce hash rate. ASIC efficiency is directly proportional to the cost of bitcoin production. A 10-per-cent improvement in ASIC efficiency, all other things being equal, equates to a 10-per-cent-lower cost of bitcoin production.

Hive is pleased to note this week that the company realized $300-million of annualized run-rate revenue from bitcoin mining and HPC operations with profit margins of approximately 55 per cent, based on current global average power costs for Hive and current hash price of approximately $59 per petahash per day.

"At Hive, we endeavour to build high-quality data centre infrastructure time efficiently and cost-effectively," said Luke Rossy, chief operating officer. "Our cost advantage, supported by engineering expertise and a renewable energy strategy, positions us as a highly efficient bitcoin miner and AI/HPC infrastructure provider. We are incredibly pleased with the uptime seen so far with our ASICs operating in both phase 1 (air-cooled) and phase 2 (hydro) in Paraguay. Also, our Paraguay operations team has embraced our high level of discipline in operations, yielding industry-leading performance in bitcoin mining."

As Hive advances its fully financed expansion strategy, the company expects to achieve approximately $400-million in ARR upon reaching its near-term target of 18 EH/s. At that scale, Hive projects a global fleet efficiency of 18.5 J/TH and mining margins approaching 60 per cent after electrical costs, based on current hash price of $59 per hash rate index.

"Hive is delivering growth at a remarkable rate," commented Aydin Kilic, president and chief executive officer, "and we remain on track for 18 EH/s at an estimated efficiency of 18.5 J/TH by the end of August and 25 EH/s at an efficiency of roughly 17.5 J/TH by U.S. Thanksgiving this year -- all of which is fully funded. At scale, and assuming current hash price, we estimate roughly $400-million ARR at 18 EH/s and $550-million ARR at 25 EH/s, with mining margins near 60 per cent after global average power costs. I am very pleased with the regional leadership of Paraguay country president Gabriel Lamas, his resilience and engineering background, ensuring our two projects, both Yguazu and Valenzuela, advance at a rapid pace. Layered with our long-standing HPC/AI business, we believe Hive is uniquely positioned to compound value for shareholders."

About Hive Digital Technologies Ltd.

Founded in 2017, Hive builds and operates sustainable blockchain and artificial intelligence infrastructure data centres, powered exclusively by renewable hydroelectric energy. With a global footprint in Canada, Sweden and Paraguay, Hive is committed to operational excellence, green energy leadership, and scaling the future of digital finance and computing, while creating long-term value for its shareholders and host communities.

We seek Safe Harbor.