(MENAFN- Newsfile Corp)
This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated October 3, 2024 to its short form base shelf prospectus dated September 11, 2024.
Vancouver, British Columbia--(Newsfile Corp. - December 3, 2024) - HIVE Digital Technologies Ltd. (TSXV: HIVE) (NASDAQ: HIVE) (FSE: YO0) (referred to as the "Company" or "HIVE"), a global leader in sustainable blockchain infrastructure, is thrilled to announce a transformative step forward with the Acquisition of 8.6 EH/s of Bitmain S21+ Hydros. This purchase will increase HIVE's bitcoin mining hashrate to 15 EH/s of high-margin, self-mining capacity by summer 2025. These state-of-the-art miners deliver an industry-leading efficiency of 15 J/TH and 319 TH/s per unit, which will be powered by HIVE's green energy infrastructure in Paraguay (all amounts in US dollars, unless otherwise indicated).
Frank Holmes, Executive Chairman of HIVE, stated: "Once fully deployed, our strategic expansion to 15 EH/s will propel HIVE to over $300 million in annualized revenue and deliver more than $200 million in mining margin, based on current mining economics. At 2% of the Bitcoin network's total hashrate, we expect to produce approximately 9 Bitcoin per day at the current difficulty level, supporting HIVE's clear vision for scaling our operations while sourcing green hydro energy and driving significant value for shareholders."
Order Summary
HIVE's initial order comprises 13,480 units, representing 4.3 EH/s of hashrate capacity, scheduled for delivery in April and May 2025. This acquisition was secured at an exceptionally competitive price of $14/TH.
Additionally, the Company has a call option to purchase an additional 13,480 units within one year, bringing the potential total order to 26,960 units, or 8.6 EH/s of cutting-edge mining capacity.
By Q1 2025, HIVE will achieve a hashrate of 6.4 EH/s following the internal upgrades of its existing 30 J/TH fleet and the installation of 11,500 Canaan Avalon units. These upgrades will elevate the Company's global mining efficiency to 19.5 J/TH. Upon full execution and installation of the Bitmain order, HIVE will reach 15 EH/s of global hashrate capacity, with a blended fleet efficiency of 17 J/TH.
Optimized Mining Economics
HIVE's CEO and President, Aydin Kilic, commented: "Our primary focus is delivering exceptional ROI for our shareholders. This strategic purchase and deployment of highly efficient 15 J/TH miners in Paraguay will significantly enhance our profitability and substantially lower our Bitcoin mining break-even point at current difficulty levels."
Mr. Kilic continued, "With this deployment, we project an ROI of approximately 10 months, taking into account current hashrate economics of $60/PH per day after accounting for electrical and direct operating costs. This positions HIVE for strong profitability and sustainable long-term growth."
Field Research and Regional Efficiency
Comprehensive field analysis confirms that hydro ASIC miners perform exceptionally well in Paraguay's environmental conditions of heat and humidity. Bitmain's innovative hydro cooling technology has demonstrated strong reliability while reducing capital expenditure per megawatt of new infrastructure development. This strengthens the ROI of HIVE's green-energy-powered mining initiatives in Paraguay.
About HIVE Digital Technologies Ltd.
HIVE Digital Technologies Ltd. is a pioneering technology company focused on advancing sustainable blockchain and AI infrastructure powered by green energy. HIVE was the first cryptocurrency miner to go public on the TSX Venture Exchange in 2017 and is committed to reducing environmental impact and optimizing operational efficiency. With data centers in Canada, Sweden, and soon Paraguay, HIVE is a global leader in digital asset mining and AI computing solutions.
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