HIVE Digital Technologies (HIVE) Reports January 2024 Production Figures

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 January 2024, with 234.6 Bitcoin produced in January. The Company has maintained over 3.88 Exahash ("EH/s") of Bitcoin mining capacity on average for January 2024, including ASIC and GPU BTC hashrate (all amounts in US dollars, unless otherwise indicated).

Summary Overview:

• HIVE produced 234.6 Bitcoin in the month of January, from ASIC and GPU mining operations, representing an average of 60.5 Bitcoin Per Exahash, with an average hashrate of 3.88 EH/s for the month of January 2024;
• HIVE produced an average of 7.6 BTC per day in January 2024;
• HIVE ended the month with 3.85 EH/s of mining capacity, including ASIC and GPU BTC hashrate, a 5.6% month-over-month decrease.

The Company's HODL position at the end of January 2024 was 1,939 BTC, which was 234.6 BTC higher than the prior month, representing a 14% increase. All BTC produced was HODL during the month.

Arctic Cold Weather

HIVE mines Bitcoin sourcing geothermal and hydroelectric renewable energy in Sweden, Iceland and Canada. There have been a few days of conserving electricity consumption due to cold weather. The Company's software system to balance the grid has worked smoothly and HIVE expects, based on seasonal weather patterns, milder weather in March.

Cold weather in Northern Sweden, where the Company's facilities are 100 miles south of the Arctic Circle, hit negative 40 degrees Celsius. Fortunately, this seasonal pattern appears to be behind us. In addition, HIVE does hedge its cost of energy in Sweden.

Bitcoin Halving Strategy

Frank Holmes, Executive Chairman, of the Company stated "We have upgraded our fleet of ASICs, to improve our global fleet efficiency to reduce our average production cost per Bitcoin. In addition to this, we have been HODL'ing our Bitcoin reserves ahead of the Halving. With the Halving event in April 2024, the global daily Bitcoin block reward will reduce from 900 Bitcoin per day to 450 Bitcoin per day. This underscores the scarcity of Bitcoin, and thus we believe increasing our HODL will put HIVE in a strong position."

Bitcoin ASIC Upgrade with S21

Aydin Kilic, President & CEO of HIVE stated "We are thrilled to announce that we have received and installed our January batch of Bitmain S21 Antminers, the latest and most efficient machines on the market. These miners each have 200 TH/s and efficiency of 17.5 J/TH. To put this into perspective, this means that at current Bitcoin network difficulty of 75.5T these machines can produce a Bitcoin at a cost of approximately $10,000, assuming a power price of $0.04 per KWHR. HIVE has purchased 7,000 of these machines, which in total will provide 1.4 EH/s of high efficiency mining capacity to our fleet. Additionally, we note that our February batch will ship before Chinese New Year, and we anticipate receiving and installing them before the February month end."

January 2024 Production Figures

The Company's total Bitcoin production in January 2024 was:

• 234.5 BTC produced from ASICs from an average hashrate of 3.88 EH/s from ASICs in January;
• 7.6 BTC produced per day on average from ASICs, and 60.5 BTC/EH from ASICs in January;
• 3.85 EH/s of BTC month end hashrate as of January 31, comprised of 3.85 EH/s of ASIC BTC hashrate and nil EH/s of GPU BTC hashrate;
• This represents a 4.8% month over month end decrease in BTC ASIC hashrate (December 31 month end was 4.05 EH/s);
• Monthly average of 3.88 EH/s, comprised of an average of 3.88 EH/s of ASIC mining capacity and average of nil PH/s of Bitcoin GPU mining capacity during the month of January;
• This is a 1.8% month-over-month decrease in BTC average hashrate from ASICs and GPUs combined (December average BTC hashrate was 3.95 EH/s).

Bitcoin Global Network Mining Difficulty Is Volatile

Network difficulty factors are a significant variable in the Company's gross profit margins. The Bitcoin network difficulty was 72.0T as of January 1, and decreased to 70.3 T as of January 31. Accordingly, Bitcoin mining difficulty ended the month about 2% lower 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 www.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.

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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