HIVE Digital Technologies (HIVE) Increases HODL Position, Provides December 2023 Update

HIVE Digital Technologies Ltd. (NASDAQ: HIVE) is pleased to announce 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 Exahash ("EH/s") of Bitcoin mining capacity on average for December 2023, including ASIC and GPU BTC hashrate (all amounts in US 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 hashrate of 3.95 EH/s for the month of December;
• HIVE produced an average of 9.1 BTC per day in December, which amounts to approximately 1% of the global network;
• HIVE ended the month of December with 4.08 EH/s of mining capacity, including ASIC and GPU BTC hashrate, 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 COO and CIO

HIVE is pleased to announce the appointment of Luke Rossy to Chief Operating Officer ("COO") and Mario Sergi to Chief Information Officer ("CIO").

Frank Holmes, the Executive Chairman of HIVE, said, "Luke Rossy has been with HIVE since we acquired our New Brunswick data center from GPU One almost 3 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 CEO 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 centers, laying the foundation for our AI 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 hashrate 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 hashrate as of December 31, comprised of 4.05 EH/s of ASIC BTC hashrate and 0.03 EH/s of GPU BTC hashrate;
• Consistent month-over-month end BTC ASIC hashrate (November 30 month-end was 4.03 EH/s);
• Monthly average of 3.95 EH/s, comprised of an average of 3.82 EH/s of ASIC mining capacity and an average of 130 PH/s of Bitcoin GPU mining capacity during the month of December;
• This is a 4.6% month-over-month decrease in BTC average hashrate from ASICs and GPUs combined (November average BTC hashrate 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 2 EH/s. The Company notes that prior to maintenance, the peak operating total global hashrate 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 December 1, and increased to an all-time high of 72 T as of December 31. Accordingly, Bitcoin mining difficulty ended the month of December about 6% higher than the beginning of the month.

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

As more Bitcoin is mined (difficulty increases), the daily Bitcoin block reward (which presently 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 hashrate 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 hashrate. 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 hashrate 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.

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