HIVE Digital Technologies Ltd. Q3 FY2024 earnings call

• Green Energy Focus: HIVE has a green energy focus in Canada, Iceland, and Sweden, using green energy only for mining. - Challenges and Headwinds: Dealt with mining difficulty, which has an inverse relationship with Bitcoin adoption. As Bitcoin adoption increased, competition for mining increased, with difficulty rising when prices fell. - Transition from Ethereum Mining: No longer mines Ethereum, having pivoted to High-Performance Computing (HPC) with NVIDIA chips, which is starting to scale up. - Community Contributions: Sponsored local hockey teams in Boden, Sweden. - AI Strategy: HIVE has an AI strategy with GPU chips, leveraging experience from Ethereum mining, and sees significant demand for AI chips globally.

Bitcoin Mining: In the quarter ended December 31, 2023, HIVE produced 830 Bitcoin-equivalent mined. Revenue for the quarter was $31.3 million, with a gross mining margin of $11.3 million. The company's Bitcoin mining operations account for a significant portion of its revenue. HPC/AI: The HPC/AI segment reached a run rate revenue of $5 million as of the end of the quarter, with plans to target a $20 million annual run rate revenue by the end of the current quarter.

• HPC/AI Revenue Target: Aiming to reach $250,000 a week in revenue for the HPC/AI segment. - Fleet Upgrades: By June 2024, plans to have a fleet of 5.3 exahash with a global fleet efficiency of 25 joules a terahash, having purchased approximately 25,000 ASICs with a blended efficiency of about 21 joules a terahash in the last year.

• Volatility: Bitcoin and related assets are extremely volatile, affecting the business and investor sentiment. - Mining Difficulty: Rising mining difficulty can lead to falling margins, and a halving event can further impact margins as the reward for mining Bitcoin is reduced. - Competition: Intense competition in the Bitcoin mining network, with new participants entering the space, which can affect market share and profitability.