Cryptocurrency Mining Giants Hut 8 and Hive Report Strong Q2 2024 Results

Hut 8 Reports Second Quarter 2024 Results - Hut 8 (NASDAQ:HUT)

Revenue of $35.2 million and 9,102 self-mined Bitcoin on balance sheet as of quarter end Closed $150 million strategic investment from Coatue to partner in building AI infrastructure MIAMI, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Hut 8 Corp. ((Nasdaq, TSX:HUT) ("Hut 8" or the "Company"), a leading, vertically integrated operator of large-scale energy infrastructure and one of North America's largest Bitcoin miners, today announced its financial results for the three and six months ended June 30, 2024. "Our results this quarter reflect the ambitious restructuring program we set in motion six months ago," said Asher Genoot, CEO of Hut 8. "Despite the network halving, gross margins in our Digital Assets Mining segment rose to 46% for the three months ended June 30, 2024 from 34% in the prior year period. Restructuring and optimization initiatives, together with the energization of Salt Creek, enabled a 21% reduction in our energy cost per kilowatt-hour from $0.040 in Q1 2024 to $0.032 in Q2 2024. With our strengthened operating foundation and recent advancements in ASIC efficiencies, we believe that now is the right time to upgrade our fleet. We are also on track to commercialize our GPU-as-a-service vertical in the third quarter, further bolstering our compute-layer economics." "Scaling our power footprint remains central to our strategy. We believe high-quality power assets will become increasingly valuable as compute applications demand more energy. Our differentiated energy strategy continues to unlock access to expansion capacity at scale. Last month, we announced a new site in the Texas Panhandle with 205 megawatts of immediately available, low-cost, long-term power. We are in discussions for a large-scale commercial partnership for the site, which can power up to 205 megawatts of NVIDIA Blackwell GPUs or up to 16.5 exahash of next-generation ASICs." "To build a next-generation energy infrastructure platform spanning power infrastructure, data centers, and compute, we are doubling down on our strengths in energy sourcing and portfolio development. Our $150 million partnership with Coatue has enhanced our ability to commercialize these advantages, driving incremental deal flow and interest in our platform and capabilities. We are aggressively advancing our pipeline to enable us to address multi-hundred-megawatt infrastructure development opportunities and look forward to sharing updates on committed projects as they materialize." Second Quarter 2024 Financial and Operational Highlights U.S. Data Mining Group, Inc. dba US Bitcoin Corp ("USBTC") and Hut 8 Mining Corp. completed an all-stock merger of equals (the "Business Combination") on November 30, 2023. USBTC was deemed the accounting acquirer in the transaction and, as a result, the historical figures in the Company's income statement for the three and six months ended June 30, 2023 reflect USBTC's standalone performance. Results for the three and six months ended June 30, 2024 reflect the performance of the combined company. With respect to the balance sheet, the ending balance for Q2 2024 is being compared to year-end 2023 balance, both of which reflect the combined company's performance. All financial results are reported in US dollars. As of June 30, 2024, Hut 8's total energy capacity under management was 1,075 megawatts ("MW") across eighteen sites: 762 MW across nine Bitcoin mining sites in North America, 310 MW across four natural gas power generation facilities in Canada, and 3 MW across five cloud and colocation data centers in Canada.Owned approximately 49,400 miners totaling approximately 4.8 exahash per second (EH/s), including the Company's net share of the King Mountain joint venture ("King Mountain JV"), as of June 30, 2024.Revenue increased by $14.7 million to $35.2 million from $20.5 million for the three months ended June 30, 2023.Net loss attributable to Hut 8 was $71.9 million, including losses on digital assets fair value adjustment of $71.8 million, compared to a loss of $1.7 million for the three months ended June 30, 2023.Adjusted EBITDA was ($57.5) million compared to $14.8 million for the three months ended June 30, 2023.During the three months ended June 30, 2024, 279 Bitcoin were mined, versus 740 Bitcoin mined in the three months ended June 30, 2023.As of June 30, 2024, total self-mined Bitcoin balance was 9,102, which represented a market value of approximately $570.5 million.Weighted average cost to mine a Bitcoin was $26,232 during the three months ended June 30, 2024, versus $14,907 for the three months ended June 30, 2023.Energy cost per MWh of $31.71 during the three months ended June 30, 2024, versus $37.34 during the three months ended June 30, 2023. Key Performance Indicators Three Months Ended June 30, 2024 2023Cost to mine a Bitcoin (excluding hosted facilities)(1) $26,232 $11,321 Cost to mine a Bitcoin(2) $26,232 $14,907 Weighted average revenue per Bitcoin mined(3) $65,656 $27,927 Bitcoin mined(4) 279 740 Energy cost per MWh $31.71 $37.34 Hosting cost per MWh $ -- $60.11 Energy capacity under management (mining)(5) 762 MW 730 MW Total energy capacity under management(6) 1,075 MW 730 MW Cost to mine a Bitcoin (excluding hosted facilities) is equivalent to the all-in electricity cost, net of credits from participation in ancillary demand response programs, to mine a Bitcoin at owned facilities and includes the Company's net share of the King Mountain JV.Cost to mine a Bitcoin (or weighted average cost to mine a Bitcoin) is calculated as the sum of total all-in electricity expense, net of credits from participation in ancillary demand response programs, and hosting expense divided by Bitcoin mined during the respective periods and includes the Company's net share of the King Mountain JV.Weighted average revenue per Bitcoin mined is calculated as the sum of total self-mining revenue divided by Bitcoin mined during the respective periods and includes the Company's net share of the King Mountain JV; it excludes discontinued operations at Drumheller, Alberta.Bitcoin mined includes the Company's net share of the King Mountain JV and excludes discontinued operations at Drumheller, Alberta. Bitcoin mined excluding the Company's net share of the King Mountain JV was 212 and 568 for the three months ended June 30, 2024 and 2023, respectively, and 803 and 894 for the six months ended June 30, 2024 and 2023, respectively.Energy capacity under management (mining) includes 180 MW of self-mining site capacity comprising Alpha, Medicine Hat, and Salt Creek, as well as 280 MW of capacity under management at the King Mountain JV. The remaining 302 MW is from the Company's Managed Services agreement with Ionic Digital Inc.Total energy capacity under management includes 762 MW of energy capacity under management (mining), 310 MW of capacity from the Company's four natural gas power generation facilities, and 3 MW of capacity from the Company's five cloud and colocation data centers. Select Second Quarter 2024 Financial Results Revenue for the three months ended June 30, 2024 increased by 72% to $35.2 million from $20.5 million in the prior year period, and consisted of $13.9 million in Digital Assets Mining revenue, $9.0 million in Managed Services revenue, $3.4 million in High Performance Computing - Colocation and Cloud revenue, and $8.9 million in Other revenue. Other consists primarily of hosting services revenue and equipment sales, if any. Cost of revenue exclusive of depreciation and amortization for the three months ended June 30, 2024 was $20.6 million versus $12.0 million in the prior year period, and consisted of $7.5 million in cost of revenue for Digital Assets Mining, $3.1 million in cost of revenue for Managed Services, $2.5 million in cost of revenue for High Performance Computing - Colocation and Cloud, and $7.5 million in cost of revenue for Other. Depreciation and amortization expense for the three months ended June 30, 2024 was $11.5 million compared to $4.1 million for the prior year period. The increase was primarily driven by property and equipment acquired as part of the Business Combination and the Company's Far North transaction. Additionally, during the quarter ended March 31, 2024, management performed an operational efficiency review of its mining fleet, which resulted in a change in the expected useful life of some of its mining equipment. The result was an increase in depreciation expense of $1.5 million for the three months ended June 30, 2024. General and administration expenses for the three months ended June 30, 2024 were $17.9 million versus $5.2 million in the prior year period. This increase was driven by a $6.7 million increase in stock-based compensation, a $2.4 million increase in salary and benefit costs due to added headcount as part of the Business Combination and to support the Company's growth, a $2.0 million increase related primarily to the relocation of miners to Alpha and Salt Creek, and $3.4 million in other expenses related to being a publicly listed entity, restructuring costs, and professional fees. The increase in expenses was partially offset by a $1.9 million decrease in sales tax expense driven by a $2.2 million refund of sales taxes in Canada for the years prior to the Business Combination. Net loss attributable to Hut 8 for the three months ended June 30, 2024 was $71.9 million, compared to a loss of $1.7 million in the prior year period. Subsequent to June 30, 2023, the Company adopted ASU 2023-08, the new FASB fair value accounting rules for digital assets, which requires Hut 8 to recognize its digital assets at fair value with changes recognized in net income during the reporting period. The price of Bitcoin on March 31, 2024 was $71,289 compared to the price of Bitcoin on June 30, 2024 of $62,668, such that the decrease in Bitcoin price during the quarter resulted in losses on digital assets of $71.8 million. Adjusted EBITDA for the three months ended June 30, 2024 was ($57.5) million, compared to $14.8 million in the prior year period. The decrease was primarily driven by the $71.8 million loss on digital assets. As of June 30, 2024, the Company's Bitcoin holdings were marked at fair value and totaled $570.5 million, based on 9,102 Bitcoin held in reserve. A reconciliation of Adjusted EBITDA to the most comparable GAAP measure, net income (loss), and an explanation of this measure has been provided in the table included below in this press release. CONFERENCE CALL The Hut 8 Corp. Q2 2024 webcast will commence at 8:30 a.m. ET, today. To join the live webcast, please visit this link. Analyst Coverage of Hut 8: A full list of Hut 8 Corp. analyst coverage can be found here: https://hut8.com/investors/. About Hut 8 Hut 8 Corp. is an energy infrastructure operator and Bitcoin miner with self-mining, hosting, managed services, and traditional data center operations across North America. Headquartered in Miami, Florida, Hut 8 Corp.'s portfolio comprises twenty sites: ten Bitcoin mining, hosting, and Managed Services sites in Alberta, New York, Nebraska, and Texas, five high performance computing data centers in British Columbia and Ontario, and four power generation assets in Ontario, and one newly announced site in the Texas Panhandle. For more information, visit www.hut8.com and follow us on X (formerly known as Twitter) at @Hut8Corp. Cautionary Note Regarding Forward-Looking Information This press release includes "forward-looking information" and "forward-looking statements" within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, "forward-looking information"). All information, other than statements of historical facts, included in this press release that address activities, events, or developments that Hut 8 expects or anticipates will or may occur in the future, including statements relating to the Company's restructuring and optimization initiatives, fleet upgrade, commercialization of its GPU-as-a-service vertical, scaling of its power footprint, the value of high-quality power assets, access to energy capacity, commitment to disciplined capital allocation, execution of a commercial partnership for the Texas Panhandle site, building of a next-generation energy infrastructure platform, advancement of its development pipeline to address opportunities, and future business strategy, competitive strengths, expansion, and growth of the business and operations more generally, and other such matters is forward-looking information. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "allow", "believe", "estimate", "expect", "predict", "can", "might", "potential", "predict", "is designed to", "likely," or similar expressions. Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates, and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, security and cybersecurity threats and hacks, malicious actors or botnet obtaining control of processing power on the Bitcoin network, further development and acceptance of the Bitcoin network, changes to Bitcoin mining difficulty, loss or destruction of private keys, increases in fees for recording transactions in the Blockchain, erroneous transactions, reliance on a limited number of key employees, reliance on third party mining pool service providers, regulatory changes, classification and tax changes, momentum pricing risk, fraud and failure related to digital asset exchanges, difficulty in obtaining banking services and financing, difficulty in obtaining insurance, permits and licenses, internet and power disruptions, geopolitical events, uncertainty in the development of cryptographic and algorithmic protocols, uncertainty about the acceptance or widespread use of digital assets, failure to anticipate technology innovations, climate change, currency risk, lending risk and recovery of potential losses, litigation risk, business integration risk, changes in market demand, changes in network and infrastructure, system interruption, changes in leasing arrangements, failure to achieve intended benefits of power purchase agreements, potential for interrupted delivery, or suspension of the delivery, of energy to the Company's mining sites, and other risks related to the digital asset and data center business. For a complete list of the factors that could affect the Company, please see the "Risk Factors" section of the Company's Transition Report on Form 10-K for the transition period from July 1, 2023 to December 31, 2023, available under the Company's EDGAR profile at www.sec.gov, and Hut 8's subsequent quarterly reports and other continuous disclosure documents which are available under the Company's SEDAR+ profile at www.sedarplus.ca and under the Company's EDGAR profile at www.sec.gov. Adjusted EBITDA In addition to results determined in accordance with GAAP, Hut 8 relies on Adjusted EBITDA to evaluate its business, measure its performance, and make strategic decisions. Adjusted EBITDA is a non-GAAP financial measure. The Company defines Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization, further adjusted by the removal of unrealized gains from the Company's digital asset derivative transactions, depreciation and amortization embedded in the equity in earnings (losses) from an unconsolidated joint venture, foreign exchange gains or losses, non-recurring transactions, losses from discontinued operations, net income (loss) attributable to noncontrolling interest, and stock-based compensation expense in the period presented. You are encouraged to evaluate each of these adjustments and the reasons the Company's board of directors and management team consider them appropriate for supplemental analysis. The Company's board of directors and management team use Adjusted EBITDA to assess its financial performance because it allows them to compare operating performance on a consistent basis across periods by removing the effects of capital structure (such as varying levels of interest expense and income), asset base (such as depreciation and amortization), and other items (such as non-recurring transactions mentioned above) that impact the comparability of financial results from period to period. Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA. In evaluating Adjusted EBITDA, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in such presentation. The Company's presentation of Adjusted EBITDA should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. There can be no assurance that the Company will not modify the presentation of Adjusted EBITDA in the future, and any such modification may be material. Adjusted EBITDA has important limitations as an analytical tool and you should not consider Adjusted EBITDA in isolation or as a substitute for analysis of results as reported under GAAP. Because Adjusted EBITDA may be defined differently by other companies in the industry, the Company's definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. Hut 8 Corp. and Subsidiaries Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited, in thousands, except share and per share data) Three Months Ended Six Months Ended June 30, June 30, June 30,June 30, 2024 2023 2024 2023 Revenue: Digital Assets Mining $13,912 $15,858 $44,269 $23,504 Managed Services 9,017 4,672 18,252 10,199 High Performance Computing - Colocation and Cloud 3,365 -- 6,691 -- Other 8,921 -- 17,744 2,474 Total revenue 35,215 20,530 86,956 36,177 Cost of revenue (exclusive of depreciation and amortization shown below): Cost of revenue - Digital Assets Mining 7,467 10,473 24,089 16,552 Cost of revenue - Managed Services 3,120 1,514 5,881 3,897 Cost of revenue - High Performance Computing - Colocation and Cloud 2,500 -- 5,089 -- Cost of revenue - Other 7,549 -- 13,724 45 Total cost of revenue 20,636 11,987 48,783 20,494 Operating expenses (income): Depreciation and amortization 11,531 4,064 23,003 6,968 General and administrative expenses 17,899 5,211 37,898 11,586 Losses (gains) on digital assets 71,842 -- (202,732) -- (Gain) loss on sale of property and equipment -- -- (190) 445 Realized gain on sale of digital assets -- (1,004) -- (2,376)Impairment of digital assets -- 868 -- 1,431 Legal settlement -- (1,531) -- (1,531)Total operating expenses (income) 101,272 7,608 (142,021) 16,523 Operating (loss) income (86,693) 935 180,194 (840) Other income (expense): Foreign exchange gain (loss) 720 -- (1,679) -- Interest expense (6,012) (5,657) (12,293) (13,232)Gain on debt extinguishment -- -- -- 23,683 Unrealized gain on derivatives 17,219 -- 17,219 -- Equity in earnings of unconsolidated joint venture 2,440 3,358 6,962 6,642 Total other income (expense) 14,367 (2,299) 10,209 17,093 (Loss) income from continuing operations before taxes (72,326) (1,364) 190,403 16,253 Income tax provision 1,874 (322) (2,522) (611) Net (loss) income from continuing operations $(70,452) $(1,686) $187,881 $15,642 Loss from discontinued operations (net of income taxes of $nil, $nil, $nil, $nil, respectively) (1,738) -- (9,364) -- Net (loss) income (72,190) (1,686) 178,517 15,642 Less: Net loss attributable to non-controlling interests 324 -- 493 -- Net (loss) income attributable to Hut 8 Corp. $(71,866) $(1,686) $179,010 $15,642 Net income per share of common stock: Basic from continuing operations attributable to Hut 8 Corp. $(0.78) $(0.04) $2.10 $0.37 Diluted from continuing operations attributable to Hut 8 Corp. $(0.78) $(0.04) $2.00 $0.36 Weighted average number of shares of common stock outstanding: Basic from continuing operations attributable to Hut 8 Corp. 90,192,842 43,193,201 89,671,344 42,830,760 Diluted from continuing operations attributable to Hut 8 Corp. 90,192,842 43,193,201 94,152,139 42,868,871 Net (loss) income $(72,190) $(1,686) $178,517 $15,642 Other comprehensive loss: Foreign currency translation adjustments (7,362) -- (18,436) -- Total comprehensive (loss) income (79,552) (1,686) 160,081 15,642 Less: Comprehensive loss attributable to non-controlling interest 423 -- 557 -- Comprehensive (loss) income attributable to Hut 8 Corp. $(79,129) $(1,686) $160,638 $15,642 Adjusted EBITDA reconciliation: Three Months Ended June 30, June 30,Increase(in USD thousands) 2024 2023 (Decrease)Net loss $ (72,190) $ (1,686) $ (70,504)Interest expense 6,012 5,657 355 Income tax provision (1,874) 322 (2,196)Depreciation and amortization 11,531 4,064 7,467 Unrealized gain on derivatives (17,219) -- (17,219)Share of unconsolidated joint venture depreciation and amortization (1) 7,837 7,627 210 Foreign exchange loss (gain) (720) -- (720)Non-recurring transactions (2) 21 (1,531) 1,552 Loss from discontinued operations 1,738 -- 1,738 Net loss attributable to non-controlling interests 324 -- 324 Stock-based compensation expense 7,010 314 6,696 Adjusted EBITDA $ (57,530) $ 14,767 $ (72,297) Net of the accretion of fair value differences of depreciable and amortizable assets included in equity in earnings of unconsolidated joint venture in the Consolidated Statements of Operations and Comprehensive Income (Loss) in accordance with ASC 323. See Note 8. Investments in unconsolidated joint venture of the Company's Unaudited Condensed Consolidated Financial Statements for further detail.Non-recurring transactions for the three months ended June 30, 2024 represent approximately $1.5 million of miner relocation costs, $0.7 million of restructuring costs, and a $2.2 million tax refund. Non-recurring transactions for the three months ended June 30, 2023 represent a gain from a legal settlement of $1.5 million. Contacts Hut 8 Investor Relations Sue Ennis ir@hut8.com Hut 8 Media Relations media@hut8.com Market News and Data brought to you by Benzinga APIs

RETRANSMISSION: HIVE Announces Quarterly Revenue of $32.2 Million, Adjusted EBITDA of $14.9 Million with an Increase in Bitcoin Holdings to 2,496 Bitcoin, 449 Bitcoin Mined and HPC Expansion By Investing.com

Vancouver, British Columbia--(Newsfile Corp. - August 13, 2024) - HIVE Digital Technologies Ltd. (TSXV: HIVE) (NASDAQ: HIVE) (FSE: YO0) (the "Company" or "HIVE") announces its results for the first quarter ended June 30, 2024 (all amounts in US dollars, unless otherwise indicated). Revenue from digital currency mining was $29.6 million this quarter from mining rewards of 449 Bitcoin, in addition to $2.6 million from the Company's high-performance computing (HPC) hosting operations, resulting in a gross operating margin of $11.4 million, or a 35% operating margin. The Company's SG&A for the quarter ended June 30, 2024, was $3.4 million, resulting in a positive corporate margin on a cash basis of $8.0 million. HIVE achieved an Adjusted EBITDA of $14.9 million for the quarter and net income of $4.2 million before tax. The Company grew its Bitcoin mining ASIC hashrate by 4% this quarter, from 4.7 Exahash in March 2024 to 4.9 Exahash in June 2024. HIVE ended the period with 2,496 Bitcoin on the balance sheet as of June 30, 2024, valued at $153.9 million. The Company notes that these Bitcoin are unencumbered, unleveraged and were all mined through HIVE's green energy focused operations. HIVE's production of 449 Bitcoin this quarter compared to 658 Bitcoin in the prior quarter ended March 31, 2024, is mainly a result of the Bitcoin Halving that occurs every four years with the most recent Halving on April 20, 2024. The Halving reduced the Company's block rewards from 6.25 Bitcoin to 3.125 Bitcoin during the period. The Company prepared for this Halving by upgrading its ASIC miners in the months leading up to and after the Halving, contributing to the positive results for this recent quarter reported. Frank Holmes, Executive Chairman of HIVE, emphasized, "Our strategy to only source mega chunks of green energy has been a big challenge for rapid growth, but our expansion into Paraguay sourcing 100 MW will more than double our Bitcoin footprint over the next 12 months. Even though we operate in many countries, we have demonstrated a unique ability to keep our operations among the top performers in financial metrics. We believe there is too much political FUD risk to be in one jurisdiction, and despite being a global company, we remain a consistent top performer when measured using various efficiency data metrics. Further, as a Bitcoin mining company, we are consistently among the lowest G&A to mine a Bitcoin and least shareholder dilution per share when compared to peers with over 1 Exahash. I am thrilled that over the past 12 months, even with the difficulty rising to mine Bitcoin and the recent Halving, we made more cash flow than last year." Aydin Kilic, President & CEO, stated, "We are proud to have navigated our second Bitcoin Halving event as a Company, with strategic foresight, producing a gross operating margin of $11.4 million this quarter. This comes as a result of our Bitcoin Halving strategy where we procured 7,000 Bitmain S21 AntMiners and 2,500 Bitmain S21 Pro AntMiners, to increase our installed hashrate to 5.5 EH/s with a global fleet efficiency of 24.5 J/TH. Our foresight in navigating this Halving, focusing on upgrading our existing fleet, and being conservative with expansions, comes from years of experience in the crypto-mining sector, with some of our key staff having navigated their 3rd and even 4th Bitcoin Halving events. With an installed hashrate of 5.5 EH/s, we are currently realizing an operational hashrate of 5.2 EH/s, as a result of strategic downclocking of 30 J/TH ASICs to improve overall profitability." The Company has identified 30 MW of capacity in its existing Bitcoin mining facilities which it owns and operates, which it is planning to convert to Tier 3 infrastructure for GPU operation, to yield 20 MW of Tier 3 compute. The Company believes these upgrades could be completed in 6-9 months from construction commencement, as power distribution and internet redundancy are in place. The Company believes the value proposition of conversion of existing Bitcoin mining capacity to Tier 3 data center rack space is twofold: a quicker construction timeline of 6-9 months for a retrofit versus a 24-36 month construction timeline for a greenfield, and a construction budget of approximately $5 million to $7 million per MW for a retrofit versus $10 million to $12 million per MW for a new build. For the three-month period ended June 30, 2024, revenue was $32.2 million, an increase of approximately 37% from the prior comparative period primarily due to the increase in Bitcoin price and includes $2.6 million of revenue from our HPC business segment. Gross operating margin during the three-month period was $11.4 million, or 35% of revenue, compared to $8.0 million, or 34% of revenue, in the same period in the prior year. Gross operating margin is directly impacted by digital currency prices and network difficulties as this impacts revenue from mining operations. The Company's gross operating margin is partially dependent on external network factors including mining difficulty, the amount of digital currency rewards and fees it receives for mining, as well as the market price of digital currencies. The Company achieved a net income for the three-month period ended June 30, 2024, of $3.3 million, or $0.03 basic income per share, compared to a net loss of $16.3 million, or $0.19 basic loss per share, in the prior comparative period. EBITDA and Adjusted EBITDA The Company uses EBITDA and Adjusted EBITDA as a metric that is useful for assessing its operating performance on a cash basis before the impact of non-cash items and acquisition related activities. EBITDA is net income or loss from operations, as reported in profit and loss, before finance income and expense, tax and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for removing other non-cash items, including share-based compensation, non-cash effect of the revaluation of digital currencies and one-time transactions. The Company emphasizes that "Adjusted EBITDA" is not a GAAP or IFRS measurement and is included only for comparative purposes. Non-Cash Charges A non-cash charge is a write-down or accounting expense that does not involve a cash payment. Depreciation, amortization, depletion, stock-based compensation, and asset impairments are common non-cash charges that reduce earnings but not cash flows. Financial Statements and MD&A The Company's Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) thereon for the three month period ended June 30, 2024 will be accessible on SEDAR+ at www.sedarplus.ca under HIVE's profile and on the Company's website at www.HIVEdigitaltechnologies.com. At-the-Market Offering On August 17, 2023, the Company entered into an equity distribution agreement ("August 2023 Equity Distribution Agreement") with Stifel GMP and Canaccord Genuity Corp. Under the August 2023 Equity Distribution Agreement, the Company was able to sell up to $90 million of common shares in the capital of the Company (the "August 2023 A™ Equity Program"). For the three month period ended June 30, 2024, the Company issued 11,166,160 common shares (the "August 2023 A™ Shares") pursuant to the August 2023 A™ Equity Program for gross proceeds of C$45.0 million ($32.9 million). The August 2023 A™ Shares were sold at prevailing market prices, for an average price per August 2023 A™ Share of C$4.03. Pursuant to the August 2023 Equity Distribution Agreement, a cash commission of $1.0 million on the aggregate gross proceeds raised was paid to the agent in connection with its services under the August 2023 Equity Distribution Agreement. The Company is using the net proceeds from the August 2023 Equity Distribution Agreement for the purchase of data center equipment, strategic investments including building BTC assets on our balance sheet and general working capital. The August 2023 Equity Distribution Agreement was terminated on July 19, 2024. About HIVE Digital Technologies Ltd. HIVE Digital Technologies Ltd. went public in 2017 as the first cryptocurrency mining company listed for trading on the TSX Venture Exchange with a focus on sustainable green energy. HIVE is a growth-oriented technology stock in the emergent blockchain industry. As a company whose shares trade on a major stock exchange, we are building a bridge between the digital currency and blockchain sector and traditional capital markets. HIVE owns and operates state-of-the-art, green energy-powered data centre facilities in Canada, Sweden, and Iceland, where we endeavour to source green energy to mine digital assets such as Bitcoin on the cloud. Since the beginning of 2021, HIVE has held in secure storage the majority of its treasury of BTC derived from mining rewards. Our shares provide investors with exposure to the operating margins of digital currency mining, as well as a portfolio of Bitcoin. Because HIVE also owns hard assets such as data centers and advanced multi-use servers, we believe our shares offer investors an attractive way to gain exposure to the cryptocurrency space. HIVE's unique value proposition encompasses efficient operations, a proven agile management team, financial strength, environmental sustainability, and innovative expansion strategies. Beyond Bitcoin mining, HIVE is firmly part of the global boom in data center infrastructure, sourcing primarily green renewable energy. HIVE presents a unique growth opportunity with over 2,500 Bitcoins on its balance sheet and growing revenue from its suite of Nvidia GPU chips powering data services for the AI revolution. We encourage you to visit HIVE's YouTube channel here to learn more about HIVE. For more information and to register to HIVE's mailing list, please visit www.HIVEdigitaltechnologies.com. Follow @HIVEDigitalTech on Twitter and subscribe to HIVE's YouTube channel. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. Forward-Looking Information Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian and United States securities legislation and regulations that is based on expectations, estimates and projections as at the date of this news release. "Forward-Looking information" in this news release includes but is not limited to: business goals and objectives of the Company; the results of operations for the three months ended June 30, 2024; the acquisition, deployment and optimization of the mining fleet and equipment; the continued viability of its existing Bitcoin mining operations; and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the volatility of the digital currency market; the Company's ability to successfully mine digital currency; the Company may not be able to profitably liquidate its current digital currency inventory as required, or at all; a material decline in digital currency prices may have a significant negative impact on the Company's operations; the regulatory environment for cryptocurrency in Canada, the United States and the countries where our mining facilities are located; economic dependence on regulated terms of service and electricity rates; the speculative and competitive nature of the technology sector; dependency on continued growth in blockchain and cryptocurrency usage; lawsuits and other legal proceedings and challenges; government regulations; the global economic climate; dilution; future capital needs and uncertainty of additional financing, as well as capital market conditions in general; risks relating to the strategy of maintaining and increasing Bitcoin holdings and the impact of depreciating Bitcoin prices on working capital; the competitive nature of the industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology change; the ability to maintain reliable and economical sources of power to run its cryptocurrency mining assets; the impact of energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which the Company operates; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; network security risks; the ability of the Company to maintain properly working systems; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; share dilution resulting from equity issuances; the construction and operation of facilities may not occur as currently planned, or at all; expansion may not materialize as currently anticipated, or at all; the digital currency market; the ability to successfully mine digital currency; revenue may not increase as currently anticipated, or at all; it may not be possible to profitably liquidate the current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on operations; an increase in network difficulty may have a significant negative impact on operations; the volatility of digital currency prices; the anticipated growth and sustainability of electricity for the purposes of cryptocurrency mining in the applicable jurisdictions; the inability to maintain reliable and economical sources of power for the Company to operate cryptocurrency mining assets; the risks of an increase in the Company's electricity costs, cost of natural gas, changes in currency exchange rates, energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which the Company operates and the adverse impact on the Company's profitability; the ability to complete current and future financings, any regulations or laws that will prevent the Company from operating its business; historical prices of digital currencies and the ability to mine digital currencies that will be consistent with historical prices; an inability to predict and counteract the effects of a pandemic on the business of the Company, including but not limited to the effects of a pandemic on the price of digital currencies, capital market conditions, restriction on labour and international travel and supply chains; and, the adoption or expansion of any regulation or law that will prevent the Company from operating its business, or make it more costly to do so; and other related risks as more fully set out in the Company's disclosure documents under the Company's filings at www.sec.gov/EDGAR and www.sedarplus.ca. The forward-looking information in this news release reflects the Company's current expectations, assumptions, and/or beliefs based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's objectives, goals or future plans, the timing thereof and related matters. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance, and accordingly, undue reliance should not be put on such information due to its inherent uncertainty. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether because of new information, future events or otherwise, other than as required by law. Non-IFRS measure. A reconciliation to its nearest IFRS measures is provided under "Reconciliations of Non-IFRS Financial Performance Measures" in the Company's MD&A. Corporate margin = operating margin less SG&A To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219766