HIVE Digital Technologies Ltd.

HIVE is a global digital infrastructure company driven by green energy at its core, and its business model exhibits a "dual-drive" characteristic: Cryptocurrency Mining: Focused on Bitcoin (BTC) mining, operating data centers in regions rich in hydroelectric resources in Canada, Sweden, and Paraguay by deploying efficient mining machines (such as Bitmain S21+ Hydro). As of June 2025, its global hash rate has reached 11.4 EH/s, with plans to expand to 25 EH/s by the end of the year, aiming for a 3% share of the total Bitcoin network hash rate. High-Performance Computing (HPC) and AI Services: Utilizing NVIDIA H100/H200 GPU clusters to provide AI training and inference computing power services for global customers, covering areas such as generative AI and large model training. By June 2025, its HPC business annualized revenue had reached 20 million USD, with plans to achieve a target of 100 million USD by 2026. Green Energy Integration: All data centers use 100% renewable hydroelectric energy, significantly reducing mining costs (electricity costs account for less than 40% of operating expenses), while enhancing corporate social responsibility image through carbon footprint optimization.

The profit models related to cryptocurrency include: Bitcoin mining revenue: By consuming hydroelectric energy to generate Bitcoin, the monthly output reached 164 BTC in June 2025, with an estimated annual output of about 1968 coins. Mining revenue accounts for 91.29% of the total revenue for the fiscal year 2025 (105.2 million USD). Bitcoin asset appreciation: By adopting a long-term holding strategy (retaining most of the mining profits since 2021), benefiting from Bitcoin price fluctuations. For example, if the price of Bitcoin rises from $82,000 in March 2025 to $100,000, the value of the 2,201 BTC held will increase by approximately $40 million. Computing Power Leasing and AI Services: The HPC business generates stable cash flow by renting out GPU computing power. In Q2 2025, the NVIDIA H100 cluster has achieved an annualized revenue of 15 million dollars, and the H200 cluster is expected to contribute over 20 million dollars in Q3 2025.

Building Anti-Cyclical Capability: The complementarity between cryptocurrency mining and AI computing power services - profiting from asset appreciation when Bitcoin prices rise, and maintaining cash flow through HPC business during price downturns. In the fiscal year 2025, the proportion of HPC revenue will increase from 3% in 2024 to 8.7%, effectively diversifying risks. Green Energy Commercialization: Converting hydropower resources into economic value, taking the Yguazù data center in Paraguay as an example, its 100 megawatt facility can reduce carbon emissions by approximately 400,000 tons per year, while locking in electricity costs below $0.03 per kilowatt-hour through a Power Purchase Agreement (PPA), significantly lower than the industry average. Strengthening technical barriers: The deployment of GPU clusters for HPC business makes it one of the few companies in North America with both blockchain and AI infrastructure operational capabilities, attracting collaboration intentions from tech giants like Microsoft and OpenAI.

Bitcoin ( BTC ): Direct impact: In the first half of 2025, a total of 828 BTC will be produced, accounting for 0.12% of the global Bitcoin issuance during the same period. Its hash power expansion plan (25 EH/s) may drive up mining difficulty, temporarily increasing costs for small and medium miners, but will enhance network security in the long run. Market signal transmission: HIVE continues to increase its Bitcoin holdings (2,201 coins in reserve as of March 2025), releasing confidence in long-term value to the market and indirectly supporting investor sentiment. Other cryptocurrencies: Historically, it has been involved in Ethereum (ETH) mining, but after the merge in 2023, it has completely exited and is currently not publicly participating in other cryptocurrencies such as Solana (SOL).