HIVE Digital Technologies Ltd. (HIVE) announces a correction to the HODL value in respect of its unaudited production results for August 2024 announced in press releases on September 5, 2024. The correct HODL balance as at August 31, 2024 was 2,567 Bitcoins (not 2,533 Bitcoins) with a value exceeding $151 million (not $164 million). Previously, the number of Bitcoin held was understated, while the volatile nature of Bitcoin’s price led to an overstatement of its value by approximately $13 million. This correction does not change anything else in the September 5, 2024 news releases (all amounts in US dollars, unless otherwise indicated).
Additionally, the Company reports further details on the At-The-Market (ATM) sales conducted from July 1-19, 2024, under the August 2023 ATM Equity Program.
Executive Commentary:
Frank Holmes, Executive Chairman of HIVE, reiterated the Company’s commitment to maintaining low General and Administrative (G&A) costs, maximizing cash flow, and achieving strong revenue per employee while avoiding excessive share dilution. Aydin Kilic, President and CEO, highlighted the ongoing fleet optimizations, projecting an increase in hashrate to 13.5 EH/s following upgrades at their Paraguay facility, all while prioritizing sustainable energy use.
The Company’s HODL value and operating practices align with HIVE’s broader strategy of enhancing mining performance, clean virgin Bitcoin on its balance sheet and environmental sustainability.
At-the-Market Offering:
On August 17, 2023, the Company entered into an equity distribution agreement (“August 2023 Equity Distribution Agreement”) with Stifel GMP and Canaccord Genuity Corp. Under the August 2023 Equity Distribution Agreement, the Company may, from time to time, sell up to $90 million of common shares in the capital of the Company (“the August 2023 ATM Equity Program”). The August 2023 Equity Distribution Agreement was terminated on July 19, 2024.
For the period from July 1, 2024, to July 19, 2024 (the “Terminal Period”), the Company issued 1,368,297 common shares (the “August 2023 ATM Shares”) pursuant to the August 2023 ATM Equity Program for gross proceeds of C$6.09 million ($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 Equity Distribution Agreement, a cash commission of $133,735 on the aggregate gross proceeds raised was paid to the agent in connection with its services under the August 2023 Equity Distribution Agreement.
The Company is using the net proceeds from the August 2023 Equity Distribution Agreement for the purchase of data center equipment, strategic investments including building BTC assets on our balance sheet and general working capital.
