Mr. Aydin Kilic reports

HIVE'S BUZZ SIGNS $30 MILLION IN AI CLOUD CONTRACTS, ACCELERATING GLOBAL HPC TIER-III DATA CENTER EXPANSION

Buzz High Performance Computing, the Canadian Tier 3 high performance computing data centre platform of Hive Digital Technologies Ltd., has taken a major step forward in its artificial intelligence cloud strategy, signing customer agreements representing approximately $30-million in total contract value over two-year fixed terms, subject to performance obligations and deployment milestones (all amounts are in U.S. dollars, unless otherwise indicated).

Building on four years of experience operating GPU infrastructure, Buzz is accelerating its expansion as Hive's AI engine, complementing the company's established Tier 1 hash rate service provider and reinforcing its position as a twin-engine leader in next-generation digital infrastructure.

The new contracts underpin the initial phase of Buzz's AI-optimized GPU deployment at its Canada West location in Manitoba, with compute capacity expected to come on-line during the quarter ending March 31, 2026. The first phase consists of 504 liquid-cooled Dell server-based GPUs, purpose-built for high performance AI and HPC workloads.

Based on executed contracts, current pricing and deployment schedules, management expects this initial phase to generate approximately $15-million in annual recurring revenue to Buzz's cloud business once fully operational. Upon full deployment, management expects total annualized revenue attributable to Hive's HPC segment, driven by Buzz, to grow from approximately $20-million currently to roughly $35-million, reflecting strong contracted demand for Buzz's AI cloud platform. These projections are subject to capital expenditures, operating costs, customer utilization levels and other risk factors described herein, and actual results may vary.

To support this growth, the company expects to incur capital expenditures related to GPU acquisition, supporting electrical and cooling infrastructure, and working capital requirements. Operating expenses are expected to include power, hosting, maintenance, staffing and network costs. Buzz continues to expand capacity at its Canada West site in alignment with executed customer agreements.

Management commentary

Frank Holmes, executive chairman of Hive, commented: "We are entering 2026 with strong momentum in our HPC and GPU cloud business. Hive has built a track record as one of the longest-standing publicly traded crypto Tier 1 data centre operators, performing through multiple market cycles, while protecting cash flow and balance sheet strength. Now, with Buzz, we are leveraging that foundation to build a high-growth AI cloud platform spanning Canada, Sweden and Paraguay.

"Tier 1 data centres for hash rate services typically require approximately $1-million per megawatt of infrastructure, whereas Tier 3 facilities supporting advanced GPU clusters can require materially higher capital intensity due to premium GPU hardware, redundant power architecture and advanced cooling systems. Industry benchmarks suggest that constructing and equipping a comparable fully self-financed Tier 3 facility with similar GPU capacity could require approximately $70-million in capital expenditures, depending on site conditions, financing structure, vendor pricing and market dynamics.

"Through vendor financing arrangements for GPUs and strategic Tier 3 data centre partnerships, we are scaling efficiently while reducing upfront capital intensity compared to a fully self-funded build. Where Hive owns land and buildings and operates its Tier 1 facilities, we are pursuing selective Tier 3 conversions and co-location strategies for HPC. This showcases our vertically integrated model and diversified revenue streams from both HPC co-location and GPU AI cloud services, reinforcing Hive's dual-engine strategy of hash rate services and high performance computing."

Aydin Kilic, president and chief executive officer of Hive, added: "Our vision is to scale our HPC GPU AI cloud business toward approximately $140-million in ARR over the next year, subject to market conditions and successful infrastructure deployment. As we execute, this growth will be supported by continued investment in infrastructure and operations. In our previous earnings webcast, we outlined a target deployment of 2,000 AI-optimized GPUs at our Canada West facility this year. The initial 504-GPU deployment is already backed by executed customer agreements, representing approximately $30-million in total contract value over two years, subject to performance obligations and deployment milestones.

This is just the beginning. Demand for long-term access to high performance, power-efficient AI compute continues to expand globally, and we are excited to further scale our GPU cloud business throughout 2026."

Craig Tavares, president and chief operating officer of Buzz HPC, commented: "Canada requires more sovereign AI compute capacity, both to serve domestic workloads and to support global AI companies from a secure Canadian base. With Dell and Bell Canada as key partners, we are scaling GPU capacity with the infrastructure, connectivity and resiliency needed to compete on a global stage.

"Buzz was recently recognized by SemiAnalysis for having one of the fastest data centre networks globally and earned a bronze rating in their ClusterMAX report, validating our technical architecture and execution capabilities.

"Launching this cluster in Canada West marks a significant milestone. It expands Buzz's national footprint and advances our vision of coast-to-coast AI infrastructure, with commercial-grade clusters operating at scale to serve both sovereign workloads and international demand. Under Hive's dual-engine model, Buzz is positioned to be a powerful growth catalyst as we accelerate into the global AI supercycle."

About Hive Digital Technologies Ltd.

Founded in 2017, Hive is the first publicly listed company to mine digital assets powered by green energy. Today, Hive builds and operates next-generation Tier 1 and Tier 3 data centres across Canada, Sweden and Paraguay, serving both bitcoin and high performance computing clients. Hive's twin-turbo engine infrastructure -- driven by hash rate services and GPU-accelerated AI computing -- delivers scalable, environmentally responsible solutions for the digital economy.

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