HIVE Digital Technologies has announced a major acquisition of 8.6 EH/s of Bitmain S21+ Hydro chips, aiming to reach 15 EH/s of Bitcoin mining capacity by summer 2025. The initial order includes 13,480 units (4.3 EH/s) for delivery in April-May 2025 at $14/TH, with an option to purchase another 13,480 units within a year. The company projects $300 million in annualized revenue and $200 million in mining margin at current mining economics. By Q1 2025, HIVE will achieve 6.4 EH/s following fleet upgrades, improving global mining efficiency to 19.5 J/TH. The deployment in Paraguay leverages hydro power and is expected to yield an ROI of approximately 10 months.
HIVE Digital Technologies ha annunciato un’importante acquisizione di 8,6 EH/s di chip Bitmain S21+ Hydro, puntando a raggiungere una capacità di mining di Bitcoin di 15 EH/s entro l’estate del 2025. L’ordine iniziale include 13.480 unità (4,3 EH/s) per la consegna in aprile-maggio 2025 a $14/TH, con un’opzione per acquistare altre 13.480 unità entro un anno. L’azienda prevede $300 milioni di ricavi annualizzati e $200 milioni di margine di mining in base agli attuali dati economici di mining. Entro il primo trimestre del 2025, HIVE raggiungerà 6,4 EH/s grazie a miglioramenti nella flotta, aumentando l’efficienza globale di mining a 19,5 J/TH. L’implementazione in Paraguay sfrutta l’energia idroelettrica e si prevede che generi un ROI di circa 10 mesi.
HIVE Digital Technologies ha anunciado una importante adquisición de 8,6 EH/s de chips Bitmain S21+ Hydro, con el objetivo de alcanzar una capacidad de minería de Bitcoin de 15 EH/s para el verano de 2025. El pedido inicial incluye 13,480 unidades (4,3 EH/s) para entrega en abril-mayo de 2025 a $14/TH, con una opción para comprar otras 13,480 unidades dentro de un año. La empresa proyecta $300 millones en ingresos anualizados y $200 millones en margen de minería según la economía actual de minería. Para el primer trimestre de 2025, HIVE logrará 6,4 EH/s tras las mejoras en su flota, mejorando la eficiencia global de minería a 19,5 J/TH. El despliegue en Paraguay aprovecha la energía hidroeléctrica y se espera que genere un ROI de aproximadamente 10 meses.
HIVE 디지털 기술이 8.6 EH/s의 Bitmain S21+ Hydro 칩 대규모 인수를 발표하며, 2025년 여름까지 비트코인 채굴 용량 15 EH/s 달성을 목표로 하고 있습니다. 초기 주문에는 2025년 4-5월에 배송될 13,480대(4.3 EH/s)가 포함되어 있으며, 가격은 TH당 14달러이고, 1년 이내에 추가로 13,480대를 구매할 수 있는 옵션이 있습니다. 회사는 현재 채굴 경제를 기준으로 연간 수익 3억 달러와 채굴 마진 2억 달러를 예측하고 있습니다. 2025년 1분기까지 HIVE는 함대 업그레이드를 통해 6.4 EH/s를 달성하고, 글로벌 채굴 효율성을 19.5 J/TH로 높일 예정입니다. 파라과이에서의 배치는 수력 전력을 활용하며, 약 10개월의 ROI를 예상합니다.
HIVE Digital Technologies a annoncé une acquisition majeure de 8,6 EH/s de puces Bitmain S21+ Hydro, visant à atteindre une capacité de minage de Bitcoin de 15 EH/s d’ici l’été 2025. La commande initiale comprend 13 480 unités (4,3 EH/s) à livrer en avril-mai 2025 au tarif de 14 $/TH, avec une option d’achat de 13 480 unités supplémentaires dans l’année. L’entreprise prévoit 300 millions de dollars de revenus annualisés et 200 millions de dollars de marge de minage selon les conditions économiques actuelles du minage. D’ici le premier trimestre 2025, HIVE atteindra 6,4 EH/s grâce à des améliorations de flotte, augmentant l’efficacité de minage mondiale à 19,5 J/TH. Le déploiement au Paraguay utilise l’énergie hydraulique et devrait générer un retour sur investissement d’environ 10 mois.
HIVE Digital Technologies hat eine bedeutende Akquisition von 8,6 EH/s der Bitmain S21+ Hydro-Chips angekündigt, mit dem Ziel, bis zum Sommer 2025 eine Bitcoin-Mining-Kapazität von 15 EH/s zu erreichen. Die erste Bestellung umfasst 13.480 Einheiten (4,3 EH/s) zur Lieferung im April-Mai 2025 zu einem Preis von 14 $/TH, mit der Option, innerhalb eines Jahres weitere 13.480 Einheiten zu erwerben. Das Unternehmen prognostiziert 300 Millionen Dollar an jährlich wiederkehrenden Einnahmen und 200 Millionen Dollar an Mining-Marge basierend auf der aktuellen Mining-Wirtschaftslage. Bis zum ersten Quartal 2025 wird HIVE 6,4 EH/s erreichen, nachdem die Flotte aufgerüstet wurde, und die globale Mining-Effizienz auf 19,5 J/TH erhöhen. Der Einsatz in Paraguay nutzt Wasserkraft und soll eine Rendite von etwa 10 Monaten bringen.
Positive
Significant expansion to 15 EH/s capacity, representing 2% of global Bitcoin network
Projected $300M annual revenue and $200M mining margin
Competitive acquisition price of $14/TH
Expected ROI of 10 months based on current economics
Improved fleet efficiency to 17 J/TH upon full deployment
Negative
Significant capital expenditure required for equipment acquisition
Delivery timeline extends to April-May 2025, delaying revenue impact
Revenue projections dependent on volatile Bitcoin mining economics
Insights
This strategic acquisition marks a significant expansion for HIVE, with compelling economics that could reshape their market position. The purchase of 8.6 EH/s at $14/TH represents exceptional value, well below current market rates. The projected $300 million in annualized revenue and $200 million in mining margin demonstrates strong potential returns.
The 10-month ROI projection appears conservative given current mining economics of $60/PH per day. The improved fleet efficiency to 17 J/TH positions HIVE competitively in the mining sector. The hydro-powered operation in Paraguay provides a significant competitive advantage through reduced operating costs and environmental sustainability.
The phased deployment approach with an option for additional units provides flexibility while managing capital requirements. This expansion to 2% of global Bitcoin network hashrate represents a strategic scaling that could significantly enhance HIVE’s market position ahead of the 2024 Bitcoin halving.
The acquisition of Bitmain S21+ Hydro chips represents a significant technological leap forward. The 15 J/TH efficiency rating is industry-leading and the 319 TH/s per unit performance sets a new standard for mining hardware. The hydro cooling technology is particularly well-suited for Paraguay’s climate conditions, addressing key operational challenges in high-humidity environments.
The planned upgrade from 30 J/TH to a blended fleet efficiency of 17 J/TH demonstrates a comprehensive technological strategy. This efficiency improvement will significantly reduce operational costs and increase competitive advantage. The hydro cooling system’s reduced infrastructure requirements compared to traditional air-cooling systems provides additional cost benefits while improving reliability.
12/03/2024 – 01:00 AM
This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated October 3, 2024 to its short form base shelf prospectus dated September 11, 2024.
Vancouver, British Columbia–(Newsfile Corp. – December 3, 2024) – HIVE Digital Technologies Ltd. (TSXV: HIVE) (NASDAQ: HIVE) (FSE: YO0) (referred to as the “Company” or “HIVE”), a global leader in sustainable blockchain infrastructure, is thrilled to announce a transformative step forward with the acquisition of 8.6 EH/s of Bitmain S21+ Hydros. This purchase will increase HIVE’s Bitcoin mining hashrate to 15 EH/s of high-margin, self-mining capacity by summer 2025. These state-of-the-art miners deliver an industry-leading efficiency of 15 J/TH and 319 TH/s per unit, which will be powered by HIVE’s green energy infrastructure in Paraguay (all amounts in US dollars, unless otherwise indicated).
Frank Holmes, Executive Chairman of HIVE, stated: “Once fully deployed, our strategic expansion to 15 EH/s will propel HIVE to over $300 million in annualized revenue and deliver more than $200 million in mining margin, based on current mining economics. At 2% of the Bitcoin network’s total hashrate, we expect to produce approximately 9 Bitcoin per day at the current difficulty level, supporting HIVE’s clear vision for scaling our operations while sourcing green hydro energy and driving significant value for shareholders.”
Order Summary
HIVE’s initial order comprises 13,480 units, representing 4.3 EH/s of hashrate capacity, scheduled for delivery in April and May 2025. This acquisition was secured at an exceptionally competitive price of $14/TH.
Additionally, the Company has a call option to purchase an additional 13,480 units within one year, bringing the potential total order to 26,960 units, or 8.6 EH/s of cutting-edge mining capacity.
By Q1 2025, HIVE will achieve a hashrate of 6.4 EH/s following the internal upgrades of its existing 30 J/TH fleet and the installation of 11,500 Canaan Avalon units. These upgrades will elevate the Company’s global mining efficiency to 19.5 J/TH. Upon full execution and installation of the Bitmain order, HIVE will reach 15 EH/s of global hashrate capacity, with a blended fleet efficiency of 17 J/TH.
Optimized Mining Economics
HIVE’s CEO and President, Aydin Kilic, commented: “Our primary focus is delivering exceptional ROI for our shareholders. This strategic purchase and deployment of highly efficient 15 J/TH miners in Paraguay will significantly enhance our profitability and substantially lower our Bitcoin mining break-even point at current difficulty levels.”
Mr. Kilic continued, “With this deployment, we project an ROI of approximately 10 months, taking into account current hashrate economics of $60/PH per day after accounting for electrical and direct operating costs. This positions HIVE for strong profitability and sustainable long-term growth.”
Field Research and Regional Efficiency
Comprehensive field analysis confirms that hydro ASIC miners perform exceptionally well in Paraguay’s environmental conditions of heat and humidity. Bitmain’s innovative hydro cooling technology has demonstrated strong reliability while reducing capital expenditure per megawatt of new infrastructure development. This strengthens the ROI of HIVE’s green-energy-powered mining initiatives in Paraguay.
About HIVE Digital Technologies Ltd.
HIVE Digital Technologies Ltd. is a pioneering technology company focused on advancing sustainable blockchain and AI infrastructure powered by green energy. HIVE was the first cryptocurrency miner to go public on the TSX Venture Exchange in 2017 and is committed to reducing environmental impact and optimizing operational efficiency. With data centers in Canada, Sweden, and soon Paraguay, HIVE is a global leader in digital asset mining and AI computing solutions.
For more information, visit hivedigitaltech.com, or connect with us on:
X: https://x.com/HIVEDigitalTech
YouTube: https://www.youtube.com/@HIVEDigitalTech
Instagram: https://www.instagram.com/hivedigitaltechnologies/
LinkedIn: https://linkedin.com/company/hiveblockchain
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 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, including the Company’s ability to utilize the Company’s 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 pandemics on the business of the Company, including but not limited to the effects of pandemics 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/232283
FAQ
What is HIVE’s new hashrate target after acquiring Bitmain S21+ Hydro chips?
HIVE aims to reach 15 EH/s of Bitcoin mining capacity by summer 2025 after acquiring 8.6 EH/s of Bitmain S21+ Hydro chips.
How many Bitmain S21+ units did HIVE initially order?
HIVE initially ordered 13,480 units, representing 4.3 EH/s of hashrate capacity, with delivery scheduled for April and May 2025.
What is the projected annual revenue for HIVE (NASDAQ: HIVE) after full deployment?
HIVE projects over $300 million in annualized revenue and more than $200 million in mining margin based on current mining economics.
What is the expected ROI period for HIVE’s new mining equipment?
HIVE projects an ROI of approximately 10 months based on current hashrate economics of $60/PH per day after electrical and operating costs.
