HIVE Announces Purchase of 1,000 New Energy Efficient Bitmain S21 Antminers for Immediate Delivery and HODL Increase to 2,070 Bitcoin
- HIVE Digital Technologies Ltd. purchases 1,000 Bitmain S21 Antminers for enhanced Bitcoin mining capacity.
- The S21 provides 200 petahash per second of high efficiency mining capacity.
- HIVE now holds 2,070 Bitcoin on its balance sheet as of February 21, 2024.
- The company is strategically preparing for the upcoming Bitcoin Halving event in late April 2024.
- HIVE aims to increase target Exahash to 5.5 EH/s by upgrading to the most efficient machines available.
- The company plans to stay lean during the Halving by minimizing fixed costs and optimizing variable costs.
- HIVE continues to HODL 100% of the Bitcoin it mines, believing in the scarcity of Bitcoin and strong US Bitcoin ETF inflows.
- None.
Insights
The acquisition of 1,000 Bitmain S21 Antminers by HIVE Digital Technologies Ltd. is a strategic move to bolster its Bitcoin mining capacity ahead of the anticipated Bitcoin Halving event. The S21 model's high efficiency, quantified at 17.5 J/TH, represents a significant improvement in the energy-to-performance ratio, which is a critical metric in the cryptocurrency mining industry. By focusing on efficiency, HIVE is effectively lowering its cost of production per Bitcoin, which could potentially enhance its profitability margins in a sector where electricity costs are a major operational expense.
Furthermore, the decision to hold all mined Bitcoin reflects a bullish stance on the cryptocurrency's future value. This strategy of building a Bitcoin treasury must be weighed against the potential benefits of liquidity and the risks associated with the volatility of Bitcoin's price. Investors might view this approach as a double-edged sword: it could lead to substantial gains if Bitcoin's value appreciates post-Halving, but it also exposes the company to significant risk if the market moves unfavorably.
HIVE's update on its Bitcoin holdings, now totaling 2,070, serves as a key indicator of the company's operational success and its commitment to cryptocurrency. The strategy to 'HODL'—a term used within the cryptocurrency community to denote holding onto assets rather than selling—could be seen as a confidence move that aligns with the scarcity principle inherent to Bitcoin's design. The Halving event, which will reduce the block reward by half, is historically associated with an increase in Bitcoin's price, although this is not guaranteed.
Investors should consider the implications of the Halving on HIVE's revenue stream, as the reduction in daily Bitcoin rewards will directly impact mining profitability. However, HIVE's proactive upgrade to more efficient mining equipment may mitigate some of the negative effects of the reduced block reward. The company's emphasis on maintaining low fixed costs and the capability to adjust variable costs provides it with flexibility to adapt to market changes, which is a prudent approach in the highly volatile cryptocurrency market.
By upgrading to Bitmain's latest S21 Antminers, HIVE is demonstrating its commitment to maintaining a competitive edge in the hash rate race—a measure of processing power in the Bitcoin network. The increase in hash rate from 5.3 EH/s to 5.5 EH/s, while seemingly marginal, is significant when considering the global competition in Bitcoin mining. The company's strategic focus on efficiency, particularly ahead of the Halving, is an attempt to maximize returns in an environment where the reward for mining will be halved.
The Halving is a core feature of Bitcoin's economic model, intended to control inflation by reducing the rate at which new Bitcoins are generated. HIVE's strategic preparation for this event, along with its impressive Bitcoin reserves, positions the company as a potentially resilient player in the post-Halving landscape. However, the true impact of these strategic moves will largely depend on the post-Halving price dynamics of Bitcoin and the overall market's reception to such scarcity-induced changes.
This news release constitutes a "designated news release" for the purposes of the Company's amended and restated prospectus supplement dated August 17, 2023, to its short form base shelf prospectus dated May 1, 2023.
Vancouver, British Columbia--(Newsfile Corp. - February 22, 2024) - HIVE Digital Technologies Ltd. (TSXV: HIVE) (NASDAQ: HIVE) (FSE: YO0) (the "Company" or "HIVE") is pleased to announce the purchase of 1,000 Bitmain S21 Antminers (the "S21"), which would provide 200 petahash per second ("PH/s") of high efficiency Bitcoin mining capacity. The S21 is the newest and most efficient Bitmain Bitcoin mining ASIC system, boasting 17.5 joules per Terahash ("J/TH"). Additionally, HIVE now has 2,070 Bitcoin on the balance sheet as of February 21, 2024.
HIVE is continuing its strategic preparation for the Bitcoin Halving event, expected to occur in late April 2024. Rather than expanding our footprint at this time, we are upgrading our fleet with the most efficient machines available, which in turn will lower our average costs to produce a Bitcoin.
By upgrading our existing ASICs in our inventory to the S21, we will increase our target Exahash from 5.3 EH/s at 24.7 J/TH by the end of June 2024 to 5.5 EH/s by running only our most efficient machines in our 140 MW of operating infrastructure globally. HIVE believes it is important to stay lean during the Halving, as having low fixed costs, and an inventory of highly efficient ASIC we can run at variable load to minimize variable costs, will allow the Company agility, thus putting HIVE in a strong position to navigate the rest of 2024.
In addition, we continue to HODL
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 sustainable green energy focus.
HIVE is a growth-oriented technology stock in the emergent blockchain and high-performance computing industry. As a company whose shares trade on major stock exchanges, we are building a bridge between the digital currency and blockchain sectors and traditional capital markets. HIVE owns green energy-powered data center facilities in Canada, Sweden, and Iceland, where we endeavour to source geothermal and hydroelectric 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 and high-performance computing space.
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 https://hivedigitaltechnologies.com/. Follow @HIVEDigitalTech on X and subscribe to HIVE's YouTube channel.
On Behalf of HIVE Digital Technologies Ltd.
"Frank Holmes"
Executive Chairman
For further information please contact:
Frank Holmes
info@hivedigitaltech.com
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 securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes information about: business goals and objectives of the Company; the HODL strategy adopted by the Company; the acquisition, deployment and optimization of the mining fleet and equipment; the continued viability of its existing Bitcoin mining operations; the Company's operations and sustainable future profitability; potential further improvements to the profitability and efficiency across mining operations by optimizing cryptocurrency mining output, continuing to lower direct mining operations cost structure, and maximizing existing electrical and infrastructure capacity including with new mining equipment in existing facilities; continued adoption of Bitcoin globally; the potential for the Company's long term growth; the business goals and objectives of the Company, and other forward-looking information includes but is not limited to 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 Company's ability to compete successfully with other cloud computing service providers; 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, including the Company's ability to utilize the Company's at-the-market equity offering program (the "ATM Program") and the prices at which the Company may sell Common Shares in the ATM Program, 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 the ATM Program and from other 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 COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 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 current expectations, assumptions and/or beliefs of the Company 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 ability to realize operational efficiencies going forward into profitability; profitable use of the Company's assets going forward; the Company's ability to profitably liquidate its digital currency inventory as required; historical prices of digital currencies and the ability of the Company to mine digital currencies will be consistent with historical prices; and there will be no regulation or law that will prevent the Company from operating its business. 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 the inherent uncertainty therein. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/198872
FAQ
How many Bitmain S21 Antminers did HIVE Digital Technologies Ltd. purchase?
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What event is HIVE Digital Technologies Ltd. preparing for in April 2024?
What is HIVE Digital Technologies Ltd.'s target Exahash by the end of June 2024?
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