HIVE Digital Proclaims Quarterly Income of $22.8 Million with a Gross Working Margin of $4.6 Million and Manufacturing of 801 Bitcoin

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This information launch constitutes a “designated information launch” for the needs of the Firm’s prospectus complement dated Could 10, 2023 to its quick type base shelf prospectus dated Could 1, 2023.

Vancouver, British Columbia–(Newsfile Corp. – November 13, 2023) – HIVE Digital Applied sciences Ltd. (TSXV: HIVE) (NASDAQ: HIVE) (FSE: YO0) (the “Firm” or “HIVE”), a number one digital asset miner and “inexperienced” targeted knowledge middle builder and operator, introduced immediately its earnings report for the second quarter ended September 30, 2023 (all quantities in US {dollars}, except in any other case indicated).

HIVE achieved income of $22.8 million this quarter by mining 801 Bitcoin with a 20% Gross Working Margin representing $4.6 million of earnings from operations. This quarter was a difficult quarter with Bitcoin costs remaining weak on 1 / 4 over quarter foundation, whereas problem will increase have been skilled. Taking a look at Bitcoin costs put up this quarter finish, we could have seen a backside in costs with some upward motion going down.

The Firm notes that HIVE’s manufacturing of 801 Bitcoin this quarter represents a lower of 6.6% year-over-year, having mined 858 Bitcoin final yr. That is largely because of the enhance in Bitcoin mining community Problem of roughly 82%, which suggests extra miners are competing and with extra environment friendly gear for a similar every day alternative of 900 cash. Though HIVE elevated its common quarterly Bitcoin mining ASIC hashrate from 2.1 EH/s to three.5 EH/s on this identical interval, for a rise of Bitcoin mining hashrate of roughly 66%.

Administration has been cautious by not borrowing from predator lenders or creating large dilution like many different miners as we attempt to improve our suite of ASIC chips and run the enterprise by promoting our bitcoin manufacturing and 200 of our HODL place. Additional we have now been spending capital to construct out our HPC technique for the increase in AI. This income stream by repurposing our suite of Nvida chips for AI is gathering momentum. This enterprise channel has a lot increased margins than mining Bitcoin,” says Frank Holmes, HIVE’s Govt Chairman.

Additional, “We want to once more thank our loyal shareholders for believing in our imaginative and prescient. Our HPC technique is now rising quickly on a month-over-month foundation. Whereas we booked roughly $250,000 of income for the 3-month Q2 2024 interval from HPC beta web site operations, as of immediately I’m happy to announce our beta checks are producing roughly $250,000 of income per 30 days. We’re pleased to report that our beta take a look at development seems to be scalable. Demand for our high-quality chips has risen because of the big world demand for AI tasks like ChatGPT, medical analysis, machine studying and rendering. HIVE was the primary knowledge middle to make use of its software program to assist steadiness {the electrical} grid and resell again vitality every time there’s a spike in demand. This technique has been good for HIVE, however extra importantly for the communities during which we function. HIVE is properly positioned regardless of difficult fundamentals similar to rising mining community problem. Strategically, we have now not borrowed costly debt in opposition to our mining gear or pledged our Bitcoins for expensive loans, thus our steadiness sheet stays wholesome to climate the upcoming Halving. Additionally HIVE makes use of an accelerated depreciation of ASIC gear over 2 years, which is extremely conservative contemplating that the helpful lifetime of this gear is normally greater than 4 years. What this implies is, each time we make a purchase order of ASICs machines, there’s a straight depreciation over 2 years to $0, so each quarter for 8 quarters in a row, 12.5% of the worth of every ASIC gear buy is booked as depreciation on our earnings assertion. Notably, we’re happy that our varied batches of Bitmain S19j Professional purchases from December 2022 totalling 3,570 items have already earned an ROI of roughly 80% to 105% as of interval finish September 30, 2023, after accounting for working prices. Due to this fact, it’s price noting that our aggressive depreciation schedule of two years implies a non-cash cost on our earnings assertion, even when on a money movement foundation our machines pay themselves off on this interval.”

Aydin Kilic, President & CEO of HIVE, added, “HIVE’s govt administration crew has skillfully navigated the latest bear market and are pleased with attaining a gross working margin of $4.6 million this quarter. We produced 801 Bitcoin this quarter, in a interval the place Bitcoin mining Problem elevated 9% quarter over quarter, reaching a then all-time excessive of 57T. HIVE produced 834 Bitcoin within the earlier quarter, thus our quarter over quarter Bitcoin manufacturing represents solely a 4% lower, regardless of a 9% enhance in Problem. The reason is that HIVE’s working hashrate elevated considerably quarter over quarter.”

Mr. Kilic continued, “As of June 30, 2023, HIVE’s working hashrate was 3.5 EH/s, which elevated to 4.0 EH/s as of September 30, 2023, representing a 14% enhance in interval finish hashrate, quarter over quarter. On a median working foundation, HIVE’s common hashrate throughout the 3-month interval ended September 30, 2023, was 3.66 EH/s, in comparison with a median working hashrate of three.35 EH/s for the 3-month interval ended June 30, 2023, which represents a 9% enhance in common working hashrate quarter over quarter. These figures are whole Bitcoin equal hashrate, which incorporates ASICs and GPUs. Relative to our friends within the business, HIVE administration believes we have now operated with wholesome revenue margins in periods of market volatility because of its world presence in Sweden, Iceland, and Canada and their enticing sources of hydro and geothermal electrical energy with aggressive pricing.”

HIVE’s common price of manufacturing per Bitcoin was $22,639 (together with price of products offered, not together with SG&A) for the quarter ending September 30, 2023, a 21.15% enhance in price from the earlier quarter ending June 30, 2023. The corporate notes that with Bitcoin mining hashrates and Problem at all-time highs, it’s anticipated that the price of manufacturing for Bitcoin will enhance for the business at giant, as much less Bitcoin per Terahash is being rewarded at these problem ranges. We stay targeted on buying new ASIC machines in an opportunistic method from money movement and managing our steadiness sheet. We’re busy getting ready for the Halving as we did in 2020.

Notably, the common hashprice for the Bitcoin mining community (a measure of the USD every day income earned per working Petahash of Bitcoin hashrate on-line) was $68/PH per day for the interval finish September 30, 2023. The typical hashprice for the Bitcoin mining community for the earlier quarter interval finish June 30, 2023, was $77/PH per day. Due to this fact, the common Bitcoin mining community hashprice was 12% decrease on 1 / 4 over quarter foundation. What this implies, is for all Bitcoin miners, they’d earn on common 12% much less income for an identical quantity of hashrate on-line for the interval finish September 30, 2023, in contrast on 1 / 4 over quarter foundation to the interval finish June 30, 2023.

Q2 Quarterly Abstract- September 30, 2023

  • Generated income of $22.8 million, with a gross working margin1of $4.6 million
  • Mined 801 Bitcoin throughout the three-month interval ended September 30, 2023
  • Adjusted EBITDA1 lack of $1.5 million for the three-month interval
  • Working capital decreased by $12.6 million throughout the three-month interval ended September 30, 2023 for investing in knowledge middle gear and ASIC gear
  • Digital forex property of $46.9 million, as at September 30, 2023
  • Common price of manufacturing per Bitcoin was $22,639, the place the common Bitcoin worth was $28,045, throughout the three-month interval ended September 30, 2023. This additionally represents a 21.2% enhance in manufacturing prices of Bitcoin from the earlier quarter of $18,687 for the three months ended June 30, 2023 (common worth of Bitcoin was $28,067 throughout this era)
  • Internet loss from persevering with operations of $24.5 million for the three-month interval, due tremendously to the accelerated depreciation of ASIC gear, and share primarily based compensation.

Q2 F2024 Monetary Evaluate

For the three months ended September 30, 2023, income was $22.8 million, a lower of roughly 23.1% from the prior comparative interval primarily because of the Ethereum Merge and vital mining problem development.

Gross working margin1 throughout the three-month interval was $4.6 million, or 20% of income, in comparison with $15.9 million, or 54% of income, in the identical interval within the prior yr. The Firm’s gross working margin1 is partially depending on exterior community elements together with mining problem, the quantity of digital forex rewards and costs it receives for mining, in addition to the market worth of digital currencies.

The Firm notes that, whereas adjusted EBITDA1 this quarter was a lack of $1.5 million, due to increased working prices and realized loss on sale of digital currencies, web loss from persevering with operations throughout the quarter ended September 30, 2023, was $24.5 million, or a lack of $0.29 per share, in comparison with a web lack of $33.7 million, or $0.41 per share, in the identical interval final yr. The development from the prior comparative interval was pushed primarily by decrease non-cash prices similar to depreciation, unrealized valuation losses on digital currencies and investments, and impairment prices on gear. Adjusted EBITDA is a non-IFRS monetary measurement and needs to be learn at the side of and shouldn’t be seen as a substitute for or alternative of measures of working outcomes and liquidity introduced in accordance with IFRS.

Mr. Holmes famous, “At HIVE we attempt to keep up a high-performance tradition, which signifies that we all the time adapt to sudden headwinds, and keep operational excellence within the course of.”

(in USD tens of millions)Q2 2024Q1 2024
Income$22.8$23.6
Gross working margin$4.6$8.0
Gross working margin %20%34%
Adjusted EBITDA$(1.5)$5.3
Depreciation$16.6$16.5
Internet loss from persevering with operations$(24.5)$(16.3)

EBITDA and Adjusted EBITDA

The Firm makes use of EBITDA and Adjusted EBITDA as a metric that’s helpful for assessing its working efficiency on a money foundation earlier than the impression of non-cash gadgets and acquisition associated actions.

EBITDA is web earnings or loss from operations, as reported in revenue and loss, earlier than finance earnings and expense, tax and depreciation and amortization.

Adjusted EBITDA is EBITDA adjusted for eradicating different non-cash gadgets, together with share-based compensation, non-cash impact of the revaluation of digital currencies and one-time transactions.

Calculation of EBITDA & Adjusted EBITDA:Q2 2024Q1 2024
(USD tens of millions)
Internet loss$(24.5)$(16.3)
Add the impression of the next:
Finance expense0.80.9
Depreciation16.616.5
Tax expense1.61.8
EBITDA(5.5)2.9
Revaluation of digital currencies0.4
Revaluation of spinoff legal responsibility(0.4)0.1
Loss on sale of mining property0.3
Share-based compensation4.02.0
Adjusted EBITDA$(1.5)$5.3

The Firm emphasizes that “Adjusted EBITDA” is just not a GAAP or IFRS measurement and is included just for comparative functions.

Non-Money Costs

A non-cash cost is a write-down or accounting expense that doesn’t contain a money fee. Depreciation, amortization, depletion, stock-based compensation, and asset impairments are widespread non-cash prices that cut back earnings however not money flows.

Monetary Statements and MD&A

The Firm’s Consolidated Monetary Statements and Administration’s Dialogue and Evaluation (MD&A) thereon for the three and 6 months ended September 30, 2023 will likely be accessible on SEDAR+ at www.sedarplus.ca beneath HIVE’s profile and on the Firm’s web site at www.HIVEdigitaltechnologies.com.

At-the-Market Providing

Pursuant to the at-the-market fairness program established by the Firm’s prospectus complement dated Could 10, 2023 (the “ATM Fairness Program“), as required pursuant to Nationwide Instrument 44-102 – Shelf Distributions and the insurance policies of the TSX Enterprise Trade (“TSXV“), the Firm broadcasts that, throughout its three month quarter ended September 30, 2023, it has issued an mixture of 1,452,837 widespread shares (the “ATM Shares“) over the TSX-V, for mixture gross proceeds to the Firm of C$9,282,909. The ATM Shares have been offered at prevailing market costs, for a median worth per ATM Share of C$6.39. Pursuant to the fairness distribution settlement related to the ATM Fairness Program (the “EDA“), a money fee of $209,345 on the combination gross proceeds raised was paid to the agent in reference to its providers beneath the EDA throughout the second quarter ended September 30, 2023.

Pursuant to the EDA, the Firm could, now and again, promote as much as USD$100 million of widespread shares within the capital of the Firm. The Firm intends to make use of the web proceeds of the ATM Fairness Program, if any, primarily to assist the expansion and growth of the Firm’s present mining operations in addition to for working capital and common company functions. Moreover, the Firm needs to be ready to capitalize on alternatives which can exist or could also be delivered to its consideration regarding distressed asset gross sales of mining gear all through the mining ecosystem.

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 Trade with a sustainable inexperienced vitality focus.

HIVE is a growth-oriented expertise inventory within the emergent blockchain and high-performance computing business. As an organization whose shares commerce on main inventory exchanges, we’re constructing a bridge between the digital forex and blockchain sectors and conventional capital markets. HIVE owns state-of-the-art, inexperienced energy-powered knowledge middle services in Canada, Sweden, and Iceland, the place we endeavour to supply inexperienced vitality to mine digital property similar to Bitcoin on the cloud. For the reason that starting of 2021, HIVE has held in safe storage nearly all of its treasury of BTC derived from mining rewards. Our shares present traders with publicity to the working margins of digital forex mining, in addition to a portfolio of Bitcoin. As a result of HIVE additionally owns arduous property similar to knowledge facilities and superior multi-use servers, we consider our shares supply traders a gorgeous solution to acquire publicity to the cryptocurrency and high-performance computing house.

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 listing, please go to https://hivedigitaltechnologies.com/. Comply with @HIVEDigitalTech on X and subscribe to HIVE’s YouTube channel.

On Behalf of HIVE Digital Applied sciences Ltd.
“Frank Holmes”
Govt Chairman

For additional data please contact:
Frank Holmes
[email protected]

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

Ahead-Wanting Data

Aside from the statements of historic truth, this information launch incorporates “forward-looking data” inside the that means of the relevant Canadian securities laws that’s primarily based on expectations, estimates and projections as on the date of this information launch. “Ahead-looking data” on this information launch contains details about: enterprise objectives and goals of the Firm; the outcomes of operations for the three months ended September 30, 2023; the HODL technique adopted by the Firm; the acquisition, deployment and optimization of the mining fleet and gear; the continued viability of its present Bitcoin mining operations; the Firm’s program to construct a high-performance computing enterprise providing cloud computing providers; the Firm’s operations and sustainable future profitability; potential additional enhancements to the profitability and effectivity throughout mining operations by optimizing cryptocurrency mining output, persevering with to decrease direct mining operations price construction, and maximizing present electrical and infrastructure capability together with with new mining gear in present services; continued adoption of Bitcoin globally; the potential for the Firm’s long run development; the enterprise objectives and goals of the Firm, and different forward-looking data contains however is just not restricted to data regarding the intentions, plans and future actions of the events to the transactions described herein and the phrases thereon.

Elements that might trigger precise outcomes to vary materially from these described in such forward-looking data embrace, however usually are not restricted to, the volatility of the digital forex market; the Firm’s skill to efficiently mine digital forex; the Firm could not be capable to profitably liquidate its present digital forex stock as required, or in any respect; a fabric decline in digital forex costs could have a major unfavorable impression on the Firm’s operations; the Firm’s skill to compete efficiently with different cloud computing service suppliers; the regulatory atmosphere for cryptocurrency in Canada, the USA and the nations the place our mining services 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 development 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 Widespread Shares within the ATM Program, in addition to capital market circumstances normally; dangers regarding the technique of sustaining and rising Bitcoin holdings and the impression of depreciating Bitcoin costs on working capital; the aggressive nature of the business; forex alternate dangers; the necessity for the Firm to handle its deliberate development and enlargement; the consequences of product growth and want for continued expertise change; the flexibility to keep up dependable and economical sources of energy to run its cryptocurrency mining property; the impression of vitality curtailment or regulatory adjustments within the vitality regimes within the jurisdictions during 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 flexibility of the Firm to keep up 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 services could not happen as at present deliberate, or in any respect; enlargement could not materialize as at present anticipated, or in any respect; the digital forex market; the flexibility to efficiently mine digital forex; income could not enhance as at present anticipated, or in any respect; it is probably not potential to profitably liquidate the present digital forex stock, or in any respect; a decline in digital forex costs could have a major unfavorable impression on operations; a rise in community problem could have a major unfavorable impression on operations; the volatility of digital forex costs; the anticipated development and sustainability of electrical energy for the needs of cryptocurrency mining within the relevant jurisdictions; the shortcoming to keep up dependable and economical sources of energy for the Firm to function cryptocurrency mining property; the dangers of a rise within the Firm’s electrical energy prices, price of pure fuel, adjustments in forex alternate charges, vitality curtailment or regulatory adjustments within the vitality regimes within the jurisdictions during which the Firm operates and the opposed impression on the Firm’s profitability; the flexibility 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 flexibility to mine digital currencies that will likely be in step with historic costs; an incapacity 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 worth of digital currencies, capital market circumstances, restriction on labour and worldwide journey and provide chains; and, the adoption or enlargement of any regulation or legislation that may stop the Firm from working its enterprise, or make it extra expensive to take action; and different associated dangers as extra totally set out within the Firm’s disclosure paperwork beneath the Firm’s filings at www.sec.gov/EDGAR and www.sedarplus.ca.

This information launch additionally incorporates “monetary outlook” within the type of gross working margins, which is meant to supply further data solely and is probably not an applicable or correct prediction of future efficiency and shouldn’t be used as such. The gross working margins disclosed on this information launch are primarily based on the assumptions disclosed on this information launch and the Firm’s Administration Dialogue and Evaluation for the fiscal yr ended March 31, 2023, which assumptions are primarily based upon administration’s finest estimates however are inherently speculative and there’s no assure that such assumptions and estimates will show to be right.

The forward-looking data on this information launch displays the present expectations, assumptions and/or beliefs of the Firm primarily based on data at present accessible 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 skill to understand operational efficiencies going ahead into profitability; worthwhile use of the Firm’s property going ahead; the Firm’s skill to profitably liquidate its digital forex stock as required; historic costs of digital currencies and the flexibility of the Firm to mine digital currencies will likely be in step with historic costs; and there will likely be no regulation or legislation that may stop the Firm from working its enterprise. The Firm has additionally assumed that no vital occasions happen exterior 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 is just not a assure of future efficiency and accordingly undue reliance shouldn’t be placed on such data because of the inherent uncertainty therein. The Firm disclaims any intentionor obligation to replace or revise any forward-looking data, whether or not because of new data, future occasions or in any other case, aside from as required by legislation.


1Non-IFRS measure. A reconciliation to its nearest IFRS measures is offered beneath “Reconciliations of Non-IFRS Monetary Efficiency Measures” beneath.

To view the supply model of this press launch, please go to https://www.newsfilecorp.com/release/187146



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