HIVE Digital Technologies Ltd. (HIVE) announces a correction of the HODL value with respect to its unaudited production results for August 2024 announced in press releases on September 5, 2024. The correct HODL balance as of August 31, 2024 was 2,567 Bitcoins (not 2,533 Bitcoins) worth over $151 million (not $164 million). Previously, the amount of Bitcoin held was underestimated, while the volatile nature of the Bitcoin price led to an overestimation of its value by approximately $13 million. This correction does not change anything else in the press releases of September 5, 2024 (All amounts in US dollars unless otherwise stated.).
Additionally, the Company reports further details regarding At-The-Market (ATM) sales made from July 1 to July 19, 2024, under the August 2023 ATM Capital Program.
Executive comment:
HIVE CEO Frank Holmes reiterated the company’s commitment to keeping general and administrative (G&A) costs low, maximizing cash flow, and achieving strong revenue per employee, while avoiding excessive share dilution. President and CEO Aydin Kilic highlighted continued fleet optimizations and projected an increase in hash rate to 13.5 EH/s following upgrades at its Paraguay facility, all while prioritizing the use of sustainable energy.
The Company’s HODL value and operational practices align with HIVE’s broader strategy of improving mining performance, cleaning up virgin Bitcoin on its balance sheet, and environmental sustainability.
Offer on the market:
On August 17, 2023, the Company entered into a share distribution agreement (“August 2023 Share Distribution Agreement”) with Stifel GMP and Canaccord Genuity Corp. Under the August 2023 Share Distribution Agreement, the Company may, at any time, sell up to $90 million of common shares in the capital of the Company (“August 2023 ATM Share Program”). The August 2023 Share Distribution Agreement was finalized on July 19, 2024.
During the period from July 1, 2024 to July 19, 2024 (the “Termination Period”), the Company issued 1,368,297 common shares (the “August 2023 ATM Shares”) pursuant to the August 2023 ATM Share Program for gross proceeds of C$6.09 million (US$4.46 million). The August 2023 ATM Shares were sold at prevailing market prices, for an average price per August 2023 ATM Share of C$4.45. Pursuant to the August 2023 Share Distribution Agreement, a cash commission of $133,735 was paid to the Agent on the aggregate gross proceeds raised in connection with its services pursuant to the August 2023 Share Distribution Agreement.
The Company is using the net proceeds from the August 2023 Capital Distribution Agreement for the purchase of data center equipment, strategic investments, including building BTC assets on our balance sheet, and general working capital.
