HIVE Digital Provides August 2023 Production and Reports Over 2.5x Growth in AI Compute Infrastructure

Vancouver, British Columbia–(Newsfile Corp. – September 7, 2023) – HIVE Digital Applied sciences Ltd. (TSXV: HIVE) (NASDAQ: HIVE) (FSE: YO0) (the “Firm” or “HIVE”) is happy to announce the unaudited manufacturing figures from the Firm’s world Bitcoin operations for the month of August 2023, with 274 Bitcoin produced in August. The Firm has maintained over 3.67 Exahash (“EH/s”) of Bitcoin mining capability on common for August 2023, together with ASIC and GPU BTC hashrate (all quantities in US {dollars}, until in any other case indicated).

Abstract Overview:

• HIVE produced 274 Bitcoin within the month of August, from ASIC and GPU mining operations, representing a median of 74.7 Bitcoin Per Exahash, with a median hashrate of three.67 EH/s for the month of August 2023;
• HIVE produced a median of 8.8 BTC per day in August 2023;
• HIVE ended the month with 3.69 EH/s of mining capability, together with ASIC and GPU BTC hashrate.

AI and HPC Replace

Aydin Kilic, President & CEO of HIVE acknowledged, “We’re thrilled to announce our order of excessive efficiency SuperMicro servers, which is able to additional improve our AI compute infrastructure capability by over 2.5 occasions.” The Firm notes it lately introduced that its AI and HPC infrastructure compute tripled. Thus, this new order with SuperMicro, additional will increase the compute capability by an element of two.5x. As soon as put in, these servers will present the compute spine to permit 2,400 of our Nvidia GPUs to carry out AI and HPC compute, along with our 400 Nvidia GPUs which have been a part of our profitable beta check earlier this yr, the place we realized $1 million of annual run fee income. The Firm expects all these SuperMicro servers to be put in and operational by the top of October 2023. This can be a main milestone in direction of our year-end goal of realizing $15 million of annual run fee income from this rising section of our enterprise.”

“Moreover, we’re excited to announce the growth of our AI and HPC infrastructure providing into North America, along with our present operations in Sweden. Our North American AI and HPC infrastructure might be primarily based in Canada, and the primary servers are anticipated to come back on-line in September. HIVE can also be excited to obtain our enterprise grade networking gear, which is able to improve our AI and HPC servers in Sweden. This can permit 100 GBe interconnect speeds and can permit us to serve customers with high-end AI and HPC compute calls for. Enterprise grade community gear for our Canadian facility is predicted to comply with shortly thereafter.”

The place HIVE has been a expertise chief in crypto-mining, our workforce with the information and expertise of working a fleet of roughly 150,000 GPUs throughout the Ethereum mining period, now aspires to use their experience to the Firm’s long-term blue-sky imaginative and prescient to implement our 38,000 Nvidia GPUs for HPC and AI workloads.”

August 2023 Manufacturing Figures

Mr. Kilic continued “Our focus has been to improve our fleet of ASICs, in addition to discover new technology ASICs obtainable for speedy supply, to allow them to be rapidly put in to understand money movement return on invested capital.”

Luke Rossy, VP of Operations commented “We anticipated to have a further 1,700 BuzzMiners put in in New Brunswick in August. We’ve got put in 300 BuzzMiners thus far, nonetheless, 1,400 stay as a result of delays in our PDU upgrades. These are regular, course-of-business delays. We’re blissful to report progress the place all the 2,000 Bitmain S19 XP Antminers have been put in in our Lachute facility in Quebec. The acquisition of those machines was introduced lower than one month in the past.”

The Firm’s whole Bitcoin manufacturing in August 2023 was:

• 260 BTC produced from ASICs from a median hashrate of three.5 EH/s from ASICs in August;
• 8.4 BTC produced per day on common from ASICs, and 74.7 BTC/EH from ASICs in August;
• 3.69 EH/s of BTC month finish Hashrate as of August 31, comprised of three.531 EH/s of ASIC BTC hashrate and 0.163 EH/s of GPU BTC Hashrate;
• This represents a 1% month over month finish improve in BTC ASIC hashrate (July 31 month finish was 3.64 EH/s);
• Month-to-month common of three.67 EH/s, comprised of a median of three.485 EH/s of ASIC mining capability and common of 186 PH/s of Bitcoin GPU mining capability throughout the month of August;
• This can be a 6% month over month improve in BTC common hashrate from ASICs and GPUs mixed (July common BTC hashrate was 3.46 EH/s).

Bitcoin International Community Mining Issue Is Risky

Community problem elements are a big variable within the Firm’s gross revenue margins. The Bitcoin community problem was 52.33 T as of August 1, and elevated to an all-time excessive of 55.62 T as of August 31. Accordingly, Bitcoin mining problem ended the month about 6% greater than the start of the month.

The Bitcoin Community Issue is a publicly obtainable statistic, which displays the overall variety of Bitcoin miners on-line and is necessary in analyzing an organization’s gross revenue margins, and variety of Bitcoin produced. This information is offered on many web sites, right here is one quotation: https://www.blockchain.com/explorer/charts/difficulty

As extra individuals mine Bitcoin (problem will increase), the day by day Bitcoin block reward which presently is mounted at 900 Bitcoin per day, will get cut up amongst extra miners; thus, every miner receives a smaller portion of the block reward. Conversely, as Bitcoin costs fall, many miners could lose cash, and energy down, thus taking their hashrate off the community, inflicting Community Issue to lower.

These miners with the bottom prices of manufacturing, by advantage of getting extra environment friendly machines and/or decrease power prices, are in a position to proceed their manufacturing throughout these risky cycles. Not all miners will repeatedly mine throughout the month, consequently some miners will produce much less Bitcoin than anticipated, relative to their marketed hashrate. For the foregoing causes, HIVE will self-curtail a part of its operations if the unhedged spot power costs are uneconomical, thereby leaving a part of its whole gross hashrate unutilized.

All Bitcoin miners are striving to make use of essentially the most environment friendly Bitcoin ASIC chips, and we’re blissful that we’ve been in a position to improve our world fleet throughout this crypto market downturn.

Clarification to August 11, 2023, Launch

Within the Firm’s press launch dated August 11, 2023, it disclosed that, pursuant to the at-the-market fairness program established by the prospectus complement dated Might 10, 2023 (the “Might 2023 ATM”) it had issued an combination of 534,400 frequent shares over the TSX Enterprise Change from the interval between Might 10, 2023 and June 30, 2023 at a median value of C$4.92, and paid money fee of $60,901.00. The Firm clarifies and confirms that the common value of the shares issued throughout this era pursuant to the Might 2023 ATM was C$5.02 and the overall commissions paid have been $60,808.53.

About HIVE Digital Applied sciences Ltd.

HIVE Digital Applied sciences Ltd. went public in 2017 as the primary cryptocurrency mining firm listed for buying and selling on the TSX Enterprise Change with a sustainable inexperienced power focus.

HIVE is a growth-oriented expertise inventory within the emergent blockchain business. As an organization whose shares commerce on a significant inventory trade, we’re constructing a bridge between the digital foreign money and blockchain sector and conventional capital markets. HIVE owns state-of-the-art, inexperienced energy-powered information centre amenities in Canada, Sweden, and Iceland, the place we endeavour to supply inexperienced power to mine digital belongings corresponding to Bitcoin on the cloud. Because the starting of 2021, HIVE has held in safe storage the vast majority of its treasury of ETH and BTC derived from mining rewards. Our shares present traders with publicity to the working margins of digital foreign money mining, in addition to a portfolio of Bitcoin. As a result of HIVE additionally owns exhausting belongings corresponding to information facilities and superior multi-use servers, we imagine our shares supply traders a sexy technique to achieve publicity to the cryptocurrency area.

We encourage you to go to HIVE’s YouTube channel here to be taught extra about HIVE.

For extra data and to register to HIVE’s mailing record, please go to www.HIVEdigitaltechnologies.com. Observe @HIVEDigitalTech on Twitter and subscribe to HIVE’s YouTube channel.

On Behalf of HIVE Digital Applied sciences Ltd.

“Frank Holmes”
Government Chairman

For additional data please contact:
Frank Holmes
info@hivedigitaltech.com

Neither the TSX Enterprise Change nor its Regulation Providers Supplier (as that time period is outlined in insurance policies of the TSX Enterprise Change) accepts duty for the adequacy or accuracy of this information launch

Ahead-Wanting Info

Aside from the statements of historic reality, this information launch incorporates “forward-looking data” inside the which means of the relevant Canadian and United States securities laws and rules that’s primarily based on expectations, estimates and projections as on the date of this information launch. “Ahead-looking data” on this information launch consists of however will not be restricted to: enterprise targets and goals of the Firm; the outcomes of operations for August 2023; the acquisition, deployment and optimization of the mining fleet and gear; the continued viability of its current Bitcoin mining operations; and different forward-looking data in regards to the intentions, plans and future actions of the events to the transactions described herein and the phrases thereon.

Elements that would trigger precise outcomes to vary materially from these described in such ahead trying data embody, however are usually not restricted to, the volatility of the digital foreign money market; the Firm’s skill to efficiently mine digital foreign money; the Firm could not have the ability to profitably liquidate its present digital foreign money stock as required, or in any respect; a cloth decline in digital foreign money costs could have a big destructive affect on the Firm’s operations; the regulatory atmosphere for cryptocurrency in Canada, america and the nations the place our mining amenities are situated; financial dependence on regulated phrases of service and electrical energy charges; the speculative and aggressive nature of the expertise sector; dependency on continued progress in blockchain and cryptocurrency utilization; lawsuits and different authorized proceedings and challenges; authorities rules; the worldwide financial local weather; dilution; future capital wants and uncertainty of further financing, together with the Firm’s skill to make the most of the Firm’s at-the-market fairness providing program (the “ATM Program”) and the costs at which the Firm could promote Frequent Shares within the ATM Program, in addition to capital market situations generally; dangers referring to the technique of sustaining and rising Bitcoin holdings and the affect of depreciating Bitcoin costs on working capital; the aggressive nature of the business; foreign money trade dangers; the necessity for the Firm to handle its deliberate progress and growth; the consequences of product growth and want for continued expertise change; the power to take care of dependable and economical sources of energy to run its cryptocurrency mining belongings; the affect of power curtailment or regulatory modifications within the power regimes within the jurisdictions by which the Firm operates; safety of proprietary rights; the impact of presidency regulation and compliance on the Firm and the business; community safety dangers; the power of the Firm to take care of correctly working programs; reliance on key personnel; world financial and monetary market deterioration impeding entry to capital or rising the price of capital; share dilution ensuing from the ATM Program and from different fairness issuances; the development and operation of amenities could not happen as presently deliberate, or in any respect; growth could not materialize as presently anticipated, or in any respect; the digital foreign money market; the power to efficiently mine digital foreign money; income could not improve as presently anticipated, or in any respect; it will not be potential to profitably liquidate the present digital foreign money stock, or in any respect; a decline in digital foreign money costs could have a big destructive affect on operations; a rise in community problem could have a big destructive affect on operations; the volatility of digital foreign money costs; the anticipated progress and sustainability of electrical energy for the needs of cryptocurrency mining within the relevant jurisdictions; the lack to take care of dependable and economical sources of energy for the Firm to function cryptocurrency mining belongings; the dangers of a rise within the Firm’s electrical energy prices, value of pure fuel, modifications in foreign money trade charges, power curtailment or regulatory modifications within the power regimes within the jurisdictions by which the Firm operates and the antagonistic affect on the Firm’s profitability; the power to finish present and future financings, any rules or legal guidelines that may stop the Firm from working its enterprise; historic costs of digital currencies and the power to mine digital currencies that might be in line with historic costs; an lack of ability to foretell and counteract the consequences of COVID-19 on the enterprise of the Firm, together with however not restricted to the consequences of COVID-19 on the value of digital currencies, capital market situations, restriction on labour and worldwide journey and provide chains; and, the adoption or growth of any regulation or regulation that may stop the Firm from working its enterprise, or make it extra expensive to take action; and different associated dangers as extra absolutely set out within the Firm’s disclosure paperwork beneath the Firm’s filings at www.sec.gov/EDGAR and www.sedarplus.com.

The forward-looking data on this information launch displays the present expectations, assumptions and/or beliefs of the Firm primarily based on data presently obtainable to the Firm. In reference to the forward-looking data contained on this information launch, the Firm has made assumptions in regards to the Firm’s goals, targets or future plans, the timing thereof and associated issues. The Firm has additionally assumed that no vital occasions happen outdoors of the Firm’s regular course of enterprise. Though the Firm believes that the assumptions inherent within the forward-looking data are cheap, forward-looking data will not be a assure of future efficiency and accordingly undue reliance shouldn’t be placed on such data as a result of its inherent uncertainty. The Firm disclaims any intention or obligation to replace or revise any forward-looking data, whether or not due to new data, future occasions or in any other case, aside from as required by regulation.

To view the supply model of this press launch, please go to https://www.newsfilecorp.com/release/179826