Mr. Aydin Kilic reports

HIVE DIGITAL TECHNOLOGIES CROSSES 16 EH/S, MARCHING TOWARD 25 EH/S AS EXPANSION IN PARAGUAY POWERS FORWARD

Hive Digital Technologies Ltd. has surpassed 16 exahashes per second of global bitcoin mining hash rate, marking another major milestone in its journey toward 25 EH/s by U.S. Thanksgiving.

This progress has lifted Hive's daily bitcoin output above eight BTC, doubling the company's production from May of this year.

"Our rapid deployment in Paraguay is precision execution at scale and a true testament to the tenacity, velocity and vision of our team," said Luke Rossy, Hive's chief operating officer.

Mr. Rossy continued: "With over five EH/s of next-generation Bitmain S21+ Hydro miners already energized in phase 2 at Yguazu, and new machines arriving weekly, our team, under the phenomenal leadership of country president of Paraguay operations Gabriel Lamas, is working around the clock to install new machines as quickly as they arrive."

Deployment will then begin at the phase 3 Valenzuela site in September, the final stage of Hive's fully financed path to 25 EH/s, at which point, Hive's daily bitcoin production is projected to reach 12 BTC per day (based on current bitcoin network difficulty), with Hive having a global fleet efficiency of approximately 17.5 joules per terahash, representing nearly 3 per cent of global supply at current network difficulty. The company's expansion demonstrates the benefits of scale and energy efficiency, with the latest-generation ASICs allowing Hive to improve unit economics by generating more hash rate per joule of energy consumed, realizing additional revenue without additional labour or corporate overhead.

"The team continues to be laser-focused on executing our ambitious growth strategy. After scaling from six EH/s to 16 EH/s so far this year, we expect to complete phase 2 at Yguazu on schedule and reach 18 EH/s in the coming weeks," added Aydin Kilic, president and chief executive officer. "Clean, green and funded by our operations, our purpose is clear: to build resilient, decentralized infrastructure that secures the future of bitcoin while generating robust, lasting cash flow for our shareholders."

Bitcoin mining economics are straightforward. Miners can calculate the value of each incremental exahash with simple math based on the global network difficulty. At today's network difficulty of 129 T, one exahash generates approximately 0.50 BTC per day, including block rewards and transaction fees. This means that adding just two EH/s of new capacity translates into the addition of roughly 1.0 BTC per day. Similarly, in the previous epoch, when difficulty was 127 T, one exahash generated approximately 0.51 BTC per day, including block rewards and transaction fees. These data are publicly available from bitcoin block explorers, which make mining data available. The daily revenue potential is a function of multiplying the amount of BTC mined per day by the then announced price of BTC. From that revenue, the analyst subtracts costs to determine mining margin. The costs associated with the company's mining operations are approximately 80 to 90 per cent electricity, depending on the site. Cost factors that vary include staff, real estate costs, and operating and maintenance expenses. Electricity, the company's primary cost, varies by usage (mining), which means that it is tied to revenue.

This transparency is what makes the mining industry unique. Unlike many industry sectors where pricing power is uncertain or revenue forecasting is complex, bitcoin miners know how each unit of computational power converts into economic output. The variables are public. They include the block reward, the level of network difficulty, the global hash rate and the market price of bitcoin. Each exahash deployed represents a measurable contribution to daily bitcoin production and revenue. With disciplined capital allocation and access to low-cost energy, miners can translate scaling into predictable cash flow. In short, bitcoin mining economics are not a mystery -- they are mathematically determined, with all data being available through the bitcoin blockchain network statistics, widely available through many popular bitcoin block explorers. In today's environment, every exahash matters. The company strongly encourages investors in the industry to become familiar with the economic framework of bitcoin mining. The company especially encourages investors to examine its operating costs, as reflected in its quarterly and annual filings.

Once phase 2 at the Yguazu site is fully complete in the coming weeks, Hive expects to surpass 11.5 EH/s of capacity in Paraguay, with a global total operating hash rate of 18 EH/s, while improving global fleet efficiency to approximately 18.4 joules per terahash. This energy efficiency is a measure of unit economics, representing how much energy the company uses to produce one terahash of bitcoin compute. Because electricity is the company's primary cost, this indicator is central to understanding the profitability of Hive's operations. With bitcoin price at $113,000 and difficulty at 129 T, the bitcoin network hash price is approximately $55 per petahash per second per day, with a global fleet efficiency of 18.4 J/TH, and Hive's mining margin after electrical costs* would be approximately 60 per cent. One resource to reference bitcoin hash price is the Bitcoin Hashprice Index.

* As used herein, mining margin is calculated by dividing the mining profit (revenue generated from mining activities minus power costs related to those activities) by the total revenue generated from mining activities and expressed as a percentage. In mining, the most significant expense is power costs. In this estimate, it is assuming an average of five cents per kilowatt-hour for indicative purposes. ARR, as a metric, represents revenue only, and does not represent profitability. Annual recurring revenue is presented here as a measure of growth. These non-generally accepted accounting principle measures should be read in conjunction with and should not be viewed as alternatives to or replacements for measures of operating results and liquidity presented in accordance with GAAP in Hive's quarterly and annual financial statements. All financial projections reflect current market sentiment and public disclosures as of August, 2025. Actual outcomes may vary. Investors should conduct their own due diligence.

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.

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