HIVE Digital Technologies Ltd.

HIVE Digital Technologies Ltd.

Business focus

HIVE is a sustainable-energy-focused digital infrastructure company transitioning from traditional Bitcoin mining (hashrate) to AI and high-performance computing (HPC) compute infrastructure. Its operating model uses cash flow from hashrate services to fund expansions of BUZZ High Performance Computing Inc. (BUZZ HPC). The company aims to build a sovereign AI compute platform with domestically controlled, regulation-aligned infrastructure for governments, enterprises, and research institutions, with an emphasis on Canada.

Business lines

• Hashrate (Bitcoin mining): Owns and operates data centers that generate computational power for sale to mining pools and for validating Bitcoin network transactions.
• HPC / AI compute: BUZZ HPC provides GPU-accelerated compute for AI, HPC, graphics rendering, and related workloads. Offerings include contracted GPU cloud compute, planned BUZZ Cloud services, and GPU server cluster rental through marketplaces and direct contracts.

HPC revenue and customers

• ARR and contracted capacity:
  • At year-end 2026, total contracted GPU cloud ARR was approximately $35 million.
  • A contract adding 504 Nvidia Blackwell B200 GPUs for two years was valued at about $30 million and contributed to the ARR increase.
  • In the prior year, roughly $20 million of revenue was realized from on-demand and contracted GPU sales; ARR rose to $35 million after the new fixed-term contracts.
• GPU capacity and pricing (as of April 30, 2026):
  • About 360 H200 GPUs were contracted on fixed terms across six contracts (6–12 months).
  • Approximately 5,000 A-series and H-series GPUs were billed on an on-demand basis.
  • Fixed-term hourly pricing ranged roughly from $1.45 to $1.85; on-demand GPU pricing was around $3.99 per hour.
• Customer/partner relationships:
  • BUZZ entered a teaming agreement with Bell Canada Inc. (August 2025) to act as a preferred sovereign GPU-as-a-service provider for Bell’s “Bell Canada AI Fabric,” expanding access to Canadian government and enterprise customers.
• Facility expansion:
  • The Yguazú and Valenzuela facilities in Paraguay expanded in 2025, contributing to HPC compute capacity and ARR.

Geographic footprint and energy strategy

• Regions of operation: Canada, Sweden, and Paraguay, with additional hosted and owned facilities in other locations.
• Installed capacity and performance (as of April 30, 2026):
  • Total installed hashrate: approximately 25.2 exahash per second (EH/s).
  • Fleet efficiency: about 16.5 J/TH at nameplate and about 16.1 J/TH on an optimized basis after adjustments.
  • Alternative reported figures include roughly 24.5 EH/s optimized and installed hashrate of ~24,518 PH/s (stock) to ~25,243 PH/s (optimized) across sites.
  • Power capacity: 464.4 MW available; about 384.6 MW currently utilized.
• Major sites and status:
  • New Brunswick, Canada — Owned facility (2 sites; ~37.2 MW utilized).
  • Quebec, Canada — Leased facility (approx. 33.6 MW contracted; room for expansion).
  • Boden, Sweden — Leased facility (~11.6 MW in use).
  • Boden 2, Sweden — Owned facility (capacity available).
  • Notviken, Sweden — Leased facility (0.6 MW reported; capacity available).
  • Yguazú, Paraguay — Owned facility (Phase 1–2 complete; Phase 3 underway).
  • Valenzuela, Paraguay — Owned hydroelectric data center; initial 100 MW build-out completed in 2025 and contributing about 6.5 EH/s; expansion planned to increase renewable capacity in Paraguay toward ~400 MW with substation upgrades in 2026.
  • Toronto, Canada — Owned facility (included in portfolio; targeted for Tier-III AI/HPC upgrades).
  • Quebec City, Montreal, Stockholm, Manitoba — Hosted facilities used to add compute capacity.
• Power and energy arrangements:
  • Sweden: Power from Vattenfall AB at hourly spot rates through December 31, 2026; 32 MW contracted at Boden (12 MW converted to permanent in mid-2026; 7 MW at Boden 2 under local grid contract).
  • Canada (Quebec/New Brunswick): Arrangements with Hydro-Québec and provincial utilities; New Brunswick site has a 70 MW substation with energy costing about $0.052 per kWh for the first 37.5 MW (above that, market pricing and interruptible arrangements apply).
  • Paraguay: Hydroelectric power with a 100 MW PPA for Valenzuela (Itaipu region) through 2027; Yguazú completed with hydro-cooled miners and plan to scale to 400 MW across Paraguay.
• Market positioning:
  • Emphasizes renewable energy sourcing and proximity to hydroelectric power to support energy-intensive AI/HPC workloads and manages energy, permitting, and supply risk through geographic diversification.

Workforce and governance

• Employees: 29 (as of March 31, 2026) across Canada, Bermuda, Sweden, Paraguay, and the United States.
• Intellectual property: No patents; uses trade secrets, trademarks, copyrights, contracts, and open-source licensing as applicable.
• Cybersecurity and risk management: Maintains a formal risk management framework with board oversight via the audit committee and carries cyber insurance ($5 million primary Tech E&O/Cyber policy plus a $5 million excess layer, totaling $10 million).

Financial overview (selected)

• HPC revenue and operating costs:
  • Year ended March 31, 2026: HPC revenue of about $19.5 million and operating & maintenance costs of about $8.7 million, yielding a gross HPC operating margin of roughly $10.8 million.
  • Year ended March 31, 2025: HPC revenue of about $10 million with O&M costs around $6.1 million.
• GPU contracts and revenue mix:
  • Total fixed-term GPU contracts at April 30, 2026: about 360 H200 GPUs under fixed-term arrangements; the remainder of GPUs billed on-demand.
  • Total on-demand and contracted GPU revenue in the most recent fiscal year was around $20 million prior to the $30 million fixed-term expansion that raised ARR to $35 million.
• Capital and public markets:
  • Completed a US$115 million exchangeable notes offering with a five-year maturity and 0% interest, accompanied by a capped call arrangement.
  • Completed a Toronto Stock Exchange listing on May 12, 2026 under the symbol HIVE; the company is publicly listed on the TSX, Nasdaq, and the Colombian Stock Exchange.
• Supply and regulatory exposure:
  • Relies on a limited number of suppliers for ASICs and GPUs, with procurement affected by competitive pressures and supply-chain constraints.
  • Faces an evolving regulatory environment for digital assets and HPC, with potential impacts on tax treatments and energy pricing across jurisdictions.

Risk and regulatory context

• Energy costs and supply volatility, counterparty and grid reliability risk.
• Regulatory and tax uncertainties across jurisdictions (VAT/GST/HST, PFIC considerations for U.S. holders, transfer pricing, crypto regulation, energy and tax law).
• High capital intensity and concentration risk in hardware supply; potential for obsolescence as GPU and ASIC technology evolves.
• Currency, interest-rate, and financing risks linked to ongoing capital expansion and public market exposure.
• Cybersecurity and physical security risks related to large-scale data center operations and cryptocurrency holdings.

What the company does (concise)

HIVE operates and upgrades data centers powered primarily by renewable energy and runs two primary businesses: ASIC-based Bitcoin mining (hashrate) and GPU-based HPC/AI compute through BUZZ HPC. The company funds GPU and data center expansion with hashrate cash flow, supports contracted GPU cloud ARR of about $35 million, and maintains owned and leased sites across Canada, Sweden, and Paraguay with a total capacity footprint near 464 MW and a deployed hashrate around 25 EH/s as of April 2026. The business targets enterprise and government AI compute customers while managing energy sourcing, site diversification, and hardware supply risks.