HIVE Digital Technologies .(HIVE) - 2025 Q3 - Quarterly Report

Condensed Interim Consolidated Financial Statements This section provides an overview of HIVE Digital Technologies Ltd.'s condensed interim consolidated financial statements Condensed Interim Consolidated Statements of Financial Position This section presents HIVE Digital Technologies Ltd.'s condensed interim consolidated statements of financial position, detailing assets, liabilities, and equity Financial Position Overview HIVE Digital Technologies Ltd. reported a significant increase in total assets, primarily driven by a substantial rise in digital currencies and investments. Total equity also saw a considerable increase, while total liabilities decreased slightly | Metric | December 31, 2024 (in thousands of US dollars) | March 31, 2024 (in thousands of US dollars) | | :-------------------------------- | :--------------------------------------------- | :------------------------------------------ | | Assets | | | | Current assets | 310,261 | 185,226 | | Plant and equipment | 109,065 | 95,356 | | Total assets | 478,587 | 307,582 | | Liabilities | | | | Current liabilities | 29,806 | 27,352 | | Total liabilities | 44,227 | 47,890 | | Equity | | | | Total equity | 434,360 | 259,692 | - Total assets increased by approximately $171 million (55.7%) from March 31, 2024, to December 31, 2024, primarily due to a $99 million increase in digital currencies and a $23.7 million increase in investments[2] - Total equity increased by approximately $174.7 million (67.3%) from March 31, 2024, to December 31, 2024[2] Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) This section outlines HIVE Digital Technologies Ltd.'s condensed interim consolidated statements of income (loss) and comprehensive income (loss), reflecting revenue, expenses, and net results Income and Comprehensive Income Overview For the three months ended December 31, 2024, HIVE Digital Technologies Ltd. reported a net income of $1.267 million, a significant improvement from a net loss of $6.951 million in the prior year period. This was largely driven by unrealized gains on investments and gains on sale of equipment, despite a decrease in digital currency mining revenue | Metric | Three months ended Dec 31, 2024 (in thousands of US dollars) | Three months ended Dec 31, 2023 (in thousands of US dollars) | Nine months ended Dec 31, 2024 (in thousands of US dollars) | Nine months ended Dec 31, 2023 (in thousands of US dollars) | | :------------------------------------ | :--------------------------------------------------- | :--------------------------------------------------- | :-------------------------------------------------- | :-------------------------------------------------- | | Revenue from digital currency mining | 26,687 | 30,115 | 77,088 | 75,973 | | High performance computing hosting | 2,542 | 1,137 | 7,030 | 1,611 | | Total Revenue | 29,229 | 31,252 | 84,118 | 77,584 | | Cost of sales | (12,744) | (5,065) | (30,091) | (25,405) | | Net income (loss) for the period | 1,267 | (6,951) | (3,138) | (47,751) | | Basic income (loss) per share | 0.01 | (0.08) | (0.03) | (0.55) | | Diluted income (loss) per share | 0.01 | (0.08) | (0.03) | (0.55) | - Revenue from digital currency mining decreased by $3.428 million (11.4%) for the three months ended December 31, 2024, compared to the same period in 2023[3] - High performance computing hosting revenue increased by $1.405 million (123.6%) for the three months ended December 31, 2024, compared to the same period in 2023[3] - Net income for the three months ended December 31, 2024, was $1.267 million, a significant improvement from a net loss of $6.951 million in the prior year, primarily due to a $9.651 million unrealized gain on investments and a $6.924 million gain on sale of equipment[3] Condensed Interim Consolidated Statements of Changes in Equity This section details HIVE Digital Technologies Ltd.'s condensed interim consolidated statements of changes in equity, showing movements in share capital, reserves, and accumulated deficit Equity Changes Overview HIVE Digital Technologies Ltd.'s total equity significantly increased to $434.360 million as of December 31, 2024, from $259.692 million as of March 31, 2024. This growth was primarily driven by substantial share offerings, share-based compensation, and revaluation gains on digital currencies | Metric | December 31, 2024 (in thousands of US dollars) | March 31, 2024 (in thousands of US dollars) | | :------------------------------------ | :--------------------------------------------- | :------------------------------------------ | | Share capital | 620,900 | 499,208 | | Equity reserve | 30,421 | 24,741 | | Accumulated other comprehensive income | 134,048 | 83,614 | | Accumulated deficit | (351,009) | (347,871) | | Total equity | 434,360 | 259,692 | - Total equity increased by $174.668 million from March 31, 2024, to December 31, 2024[2][5] - Share capital increased by $121.692 million, primarily due to shares offerings totaling $121.451 million for the nine months ended December 31, 2024[5] - Accumulated other comprehensive income increased by $50.434 million, largely due to a revaluation gain on digital currencies of $60.854 million for the nine months ended December 31, 2024[5] Condensed Interim Consolidated Statements of Cash Flows This section presents HIVE Digital Technologies Ltd.'s condensed interim consolidated statements of cash flows, categorizing cash movements from operating, investing, and financing activities Cash Flow Overview For the nine months ended December 31, 2024, HIVE Digital Technologies Ltd. experienced a net cash outflow from operating activities of $23.596 million, a shift from a net inflow in the prior year. Investing activities also resulted in a higher net cash outflow, while financing activities provided a substantial cash inflow, primarily from share offerings | Activity | Nine months ended Dec 31, 2024 (in thousands of US dollars) | Nine months ended Dec 31, 2023 (in thousands of US dollars) | | :-------------------------------- | :-------------------------------------------------- | :-------------------------------------------------- | | Cash used in operating activities | (23,596) | 33,302 | | Cash used in investing activities | (90,459) | (64,648) | | Cash provided by financing activities | 114,326 | 44,758 | | Net change in cash during the period | 167 | 13,451 | | Cash, end of period | 9,845 | 17,841 | - Operating activities shifted from a cash inflow of $33.302 million in 2023 to a cash outflow of $23.596 million in 2024, primarily due to changes in digital currencies and unrealized gains on investments[6] - Investing activities saw an increased cash outflow of $90.459 million in 2024, up from $64.648 million in 2023, mainly driven by higher deposits on equipment and purchase of equipment[6] - Financing activities provided $114.326 million in cash in 2024, a significant increase from $44.758 million in 2023, largely due to $121.022 million from share offerings[6] Notes to the Condensed Interim Consolidated Financial Statements This section provides detailed notes to the condensed interim consolidated financial statements, offering additional context and disclosures for reported figures 1. Nature of Operations HIVE Digital Technologies Ltd. is a British Columbia-incorporated company listed on TSXV, Nasdaq, and Frankfurt Stock Exchange. The company changed its name from HIVE Blockchain Technologies Ltd. on July 12, 2023, and focuses on providing infrastructure solutions and computational capacity for digital currency mining, with operations in Iceland, Sweden, Canada, and new development in Paraguay - The Company changed its name from HIVE Blockchain Technologies Ltd. to HIVE Digital Technologies Ltd. on July 12, 2023[7] - HIVE's core business involves providing infrastructure solutions and computational capacity in the blockchain industry, primarily focused on digital currency mining[8] - The Company incorporated Paraguay Digital Ltd. on July 5, 2024, to facilitate data center development and infrastructure in Paraguay[9] 2. Basis of Presentation and Material Accounting Policy Information These condensed interim consolidated financial statements are prepared in accordance with IAS 34 (IFRS Accounting Standards) and follow consistent accounting policies with the annual audited statements, except where noted. They are presented in US dollars, primarily on a cost basis, with certain exceptions measured at fair value - The financial statements are prepared in accordance with IAS 34, 'Interim Financial Reporting of the International Financial Reporting Standards' (IFRS Accounting Standards)[10] - The statements are presented in United States dollars and prepared on a cost basis, except for the convertible loan - derivative component and digital assets, which are measured at fair value[11] - Amendments to IAS 1 (Non-current liabilities with covenants, Classification of Liabilities as Current or Non-current) and IFRS 16 (Leases on sale and leaseback) were adopted, but did not have a significant impact on the financial statements[15][16][17][18] - Future accounting standards include amendments to IAS 21 (Lack of Exchangeability, effective January 1, 2025) and IFRS 18 (Presentation and Disclosure in Financial Statements, effective January 1, 2027), which will update the statement of profit or loss[19][20] 3. Significant Estimates and Judgements The preparation of the financial statements requires management to make significant judgments, estimates, and assumptions regarding asset and liability recognition and measurement. These are regularly reviewed and remain consistent with those outlined in the audited annual consolidated financial statements for March 31, 2024 - Management makes various judgments, estimates, and assumptions for the recognition and measurement of assets, liabilities, income, and expenses[22] - Actual results may differ from these assumptions and estimates, which are regularly reviewed and recognized in the current or subsequent periods as appropriate[22][23] - Significant judgments and primary sources of estimation uncertainty are consistent with those outlined in the audited annual consolidated financial statements for the year ended March 31, 2024[24] 4. Asset Acquisition On November 29, 2023, HIVE Digital Technologies Ltd. acquired a data center in Sweden for a total consideration of $2.376 million, paid through cash, common shares, and a holdback payable. This transaction was classified as an asset acquisition, not a business acquisition - On November 29, 2023, the Company acquired a data center in Sweden[25] | Consideration Transferred | Amount (in thousands of US dollars) | | :------------------------ | :---------------------------------- | | Cash paid | 647 | | Shares issued | 1,088 | | Holdback payable | 500 | | Acquisition costs | 141 | | Total consideration | 2,376 | | Net assets acquired | 2,376 | - The acquisition was determined to be an asset acquisition, not a business, as defined by IFRS 3[27] 5. Investments As of December 31, 2024, HIVE Digital Technologies Ltd. held investments in private and public companies totaling $30.700 million, a significant increase from $6.974 million at March 31, 2024. This growth was primarily driven by a substantial unrealized gain on investments - Total investments increased from $6.974 million at March 31, 2024, to $30.700 million at December 31, 2024[29] - The increase was largely due to an unrealized gain on investments of $25.766 million during the period[29] - Investments are accounted for as financial assets, initially recognized at fair value and subsequently measured through fair value through profit or loss[28] 6. Amounts Receivable and Prepaids Amounts receivable and prepaids (gross) increased to $17.785 million at December 31, 2024, from $16.301 million at March 31, 2024. The Company recognized an additional provision of $0.3 million on sales tax receivables and reversed $0.5 million of a prior provision, while also receiving a $2.3 million assessment for sales tax payable | Metric | December 31, 2024 (in thousands of US dollars) | March 31, 2024 (in thousands of US dollars) | | :-------------------------------- | :--------------------------------------------- | :------------------------------------------ | | Sales tax receivable | 9,086 | 6,818 | | Prepaid expenses and other receivables | 6,883 | 7,667 | | Receivable on sale of subsidiary | 1,816 | 1,816 | | Amounts receivable and prepaids (gross) | 17,785 | 16,301 | | Provision on sales tax receivable | (6,105) | (6,777) | | Long term portion | 2,770 | 2,595 | - During the period ended December 31, 2024, an additional provision of $0.3 million was recognized on sales tax receivables, and $0.5 million of a prior provision was reversed[30] - The Company received a $2.3 million assessment for sales tax payable related to periods prior to the acquisition of 9376-9974 Quebec Inc. in 2021[30] 7. Digital Currencies HIVE Digital Technologies Ltd.'s digital currency holdings significantly increased to $260.806 million at December 31, 2024, primarily driven by a substantial revaluation gain on Bitcoin. The Company mined fewer Bitcoin in 2024 compared to 2023 but recognized a large revaluation gain in comprehensive income | Digital Currency | December 31, 2024 (in thousands of US dollars) | March 31, 2024 (in thousands of US dollars) | | :--------------- | :--------------------------------------------- | :------------------------------------------ | | Bitcoin | 260,435 | 161,258 | | Ethereum Classic | 9 | 196 | | Other coins | 362 | 191 | | Total | 260,806 | 161,645 | - Digital currency holdings increased by $99.161 million from March 31, 2024, to December 31, 2024, primarily due to Bitcoin[32] - For the nine months ended December 31, 2024, the Company mined 1,111 Bitcoin, a decrease from 2,465 Bitcoin in the same period of 2023[32] - A revaluation gain of $60.9 million was recognized in accumulated other comprehensive income for the nine months ended December 31, 2024, compared to $19.4 million in 2023[35] 8. Plant and Equipment The carrying amount of HIVE Digital Technologies Ltd.'s plant and equipment increased to $109.065 million at December 31, 2024, from $95.356 million at March 31, 2024. This was mainly due to significant additions to equipment, partially offset by disposals and foreign exchange translation effects | Category | December 31, 2024 (in thousands of US dollars) | March 31, 2024 (in thousands of US dollars) | | :-------------------- | :--------------------------------------------- | :------------------------------------------ | | Equipment (carrying amount) | 82,952 | 71,209 | | Land (carrying amount) | 981 | 749 | | Building and Leaseholds (carrying amount) | 25,132 | 23,398 | | Total Carrying Amount | 109,065 | 95,356 | | Additions (Cost) | 64,692 | 69,735 | | Disposals (Cost) | (47,271) | (5,584) | | Depreciation | 46,523 | 63,532 | - The carrying amount of plant and equipment increased by $13.709 million from March 31, 2024, to December 31, 2024[36] - Additions to plant and equipment totaled $64.692 million for the nine months ended December 31, 2024[36] - Depreciation expense for the nine months ended December 31, 2024, was $46.523 million[36] 9. Deposits Total deposits, net of provision, significantly increased to $49.866 million at December 31, 2024, from $15.917 million at March 31, 2024. This was primarily driven by a substantial increase in equipment deposits and a new security deposit for a 100MW power supply agreement in Paraguay | Description | December 31, 2024 (in thousands of US dollars) | March 31, 2024 (in thousands of US dollars) | | :------------------------ | :--------------------------------------------- | :------------------------------------------ | | ANDE (Paraguay) | 3,210 | - | | Equipment deposits | 57,111 | 26,307 | | Deposits excluding provision | 61,997 | 28,048 | | Equipment deposit provision | (12,131) | (12,131) | | Total Deposits | 49,866 | 15,917 | - Total deposits, net of provision, increased by $33.949 million from March 31, 2024, to December 31, 2024[37] - The Company paid a $3.4 million security deposit for a 100MW power supply agreement with ANDE in Paraguay during the period[38] - Equipment deposits increased by $30.804 million, from $26.307 million to $57.111 million[37] 10. Convertible Loan The convertible loan, issued in January 2021 for $15 million, consists of a liability component and a derivative component. The liability component decreased to $2.995 million at December 31, 2024, while the derivative component's fair value decreased to $13 thousand, resulting in a gain for the period - The convertible loan was issued on January 12, 2021, for $15 million, bearing 8% interest per annum and maturing in 60 months[40][41] | Component | December 31, 2024 (in thousands of US dollars) | March 31, 2024 (in thousands of US dollars) | | :-------------------------- | :--------------------------------------------- | :------------------------------------------ | | Liability Component | 2,995 | 3,554 | | Derivative Component | 13 | 120 | | Current portion of liability | (2,929) | (1,679) | | Non-current portion of liability | 66 | 1,875 | - The derivative component, classified due to the variable number of common shares issued based on foreign exchange rates, was revalued at $13 thousand at December 31, 2024, down from $120 thousand at March 31, 2024[42][45] - For the three and nine months ended December 31, 2024, the Company recorded a gain in the change in fair value of the derivative liability of $19 thousand and $107 thousand, respectively[46] 11. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities increased to $11.866 million at December 31, 2024, from $10.604 million at March 31, 2024. This increase was primarily driven by higher accounts payable and accrued liabilities | Component | December 31, 2024 (in thousands of US dollars) | March 31, 2024 (in thousands of US dollars) | | :------------------------ | :--------------------------------------------- | :------------------------------------------ | | Accounts payable | 7,983 | 7,466 | | Accrued liabilities | 2,602 | 1,878 | | Holdback payable (Note 4) | 500 | 500 | | Other payable | 781 | 760 | | Total | 11,866 | 10,604 | - Total accounts payable and accrued liabilities increased by $1.262 million from March 31, 2024, to December 31, 2024[47] 12. Loans Payable The Boden loan payable decreased to $11.712 million at December 31, 2024, from $13.188 million at March 31, 2024, due to repayments and foreign exchange movements, partially offset by interest accrual. This loan is contingently forgiven based on a favorable ruling from the Swedish Tax Authority - The loan payable was incurred on March 31, 2021, as part of the sale of net assets in Boden Technologies AB, bearing interest at the Swedish government borrowing rate plus 1% per annum[48] | Metric | December 31, 2024 (in thousands of US dollars) | March 31, 2024 (in thousands of US dollars) | | :-------------------- | :--------------------------------------------- | :------------------------------------------ | | Balance | 11,712 | 13,188 | | Current portion | (2,792) | (2,788) | | Non-current portion | 8,920 | 10,400 | - The loan payable is contingently forgiven based on a favorable ruling from the Swedish Tax Authority on an ongoing value added tax assessment[48] 13. Term Loan The term loan, acquired as part of the Atlantic acquisition, decreased to $3.950 million at December 31, 2024, from $5.608 million at March 31, 2024, due to repayments. However, the Company did not meet a financial covenant, resulting in the outstanding balance being presented as a current liability - The term loan was acquired as part of the Atlantic acquisition, initially totaling $11.0 million (C$13.6 million)[50] | Metric | December 31, 2024 (in thousands of US dollars) | March 31, 2024 (in thousands of US dollars) | | :-------------------- | :--------------------------------------------- | :------------------------------------------ | | Term Loan 1 | 2,433 | 3,454 | | Term Loan 2 | 1,517 | 2,154 | | Total | 3,950 | 5,608 | - The Company did not meet the covenant to maintain a ratio of total debt to tangible net worth equal to or less than 2:1 as of December 31, 2024, causing the entire outstanding balance to be classified as a current liability[52] 14. Right of Use Asset and Lease Liability The carrying amount of right-of-use assets decreased to $6.625 million at December 31, 2024, from $8.488 million at March 31, 2024, primarily due to depreciation and foreign exchange movements. The corresponding lease liability also decreased to $3.836 million - The Company has lease agreements for offices, data center buildings in Sweden and Quebec, Canada, and electrical equipment in Sweden[54] | Metric | December 31, 2024 (in thousands of US dollars) | March 31, 2024 (in thousands of US dollars) | | :-------------------- | :--------------------------------------------- | :------------------------------------------ | | Right of Use Assets (Carrying Amount) | 6,625 | 8,488 | | Lease Liability (Balance) | 6,537 | 8,253 | | Lease Liability (Non-current portion) | 3,836 | 5,728 | | Total cash outflow for leases (9 months) | 2,286 | 2,855 | | Interest expense on lease liabilities (9 months) | 332 | 533 | - The total cash outflow for leases for the nine months ended December 31, 2024, was $2.286 million[57] 15. Commitments and Contingencies HIVE Digital Technologies Ltd. has significant purchase commitments, notably for its 100 MW Paraguay facility, totaling $107.1 million at December 31, 2024. The Company is also appealing substantial VAT assessments from the Swedish Tax Authority totaling approximately $40.9 million, believing the claims lack merit and has not recorded any related payable - The Company had purchase commitments of $107.1 million at December 31, 2024, a significant increase from $5.8 million at March 31, 2024[60] - Purchase commitments include $46.1 million related to the development of the 100 MW facility in Paraguay[60] - The Swedish Tax Authority (STA) issued VAT assessments totaling approximately $40.9 million against the Company's Swedish subsidiaries for periods between December 2020 and December 2022[61] - The Company has filed formal appeals against the STA decisions, believing they lack merit and are not compatible with current applicable law, and has not recorded any amounts payable in connection with these assessments[62][64] 16. Related Party Transactions Key management compensation for the nine months ended December 31, 2024, included $0.9 million in salaries and wages and $3.9 million in share-based payments. The Company also paid $0.261 million for marketing services to a company controlled by the Executive Chairman | Metric | Three months ended Dec 31, 2024 (in thousands of US dollars) | Three months ended Dec 31, 2023 (in thousands of US dollars) | Nine months ended Dec 31, 2024 (in thousands of US dollars) | Nine months ended Dec 31, 2023 (in thousands of US dollars) | | :-------------------------- | :--------------------------------------------------- | :--------------------------------------------------- | :-------------------------------------------------- | :-------------------------------------------------- | | Salaries and wages | 200 | 300 | 900 | 900 | | Share-based payments | 2,400 | 400 | 3,900 | 4,400 | - The Company paid $99 thousand and $261 thousand for marketing services to a company controlled by the Executive Chairman for the three and nine months ended December 31, 2024, respectively[67] 17. Equity HIVE Digital Technologies Ltd.'s equity structure includes unlimited common and preferred shares. The Company significantly increased its issued common shares through ATM Equity Programs, raising substantial gross proceeds. Share-based compensation expense for the nine months ended December 31, 2024, was $6.0 million for RSUs and $0.226 million for options - The Company has authorized unlimited common shares and preferred shares without par value[68] - Under the October 2024 ATM Equity Program, the Company issued 21,367,527 common shares for gross proceeds of $87.5 million (C$122.6 million)[68] | Equity Instrument | December 31, 2024 (Outstanding) | March 31, 2024 (Outstanding) | | :-------------------- | :-------------------------------- | :----------------------------- | | Stock options | 3,311,300 | 3,465,915 | | Warrants | 3,220,000 | 5,243,727 | | Restricted share units | 6,193,456 | 1,379,056 | - Share-based compensation expense for the nine months ended December 31, 2024, was $6.0 million for RSUs and $0.226 million for options[79] 18. Income (Loss) per Share For the three months ended December 31, 2024, HIVE Digital Technologies Ltd. reported basic and diluted income per share of $0.01, a significant improvement from a loss of $0.08 per share in the prior year. The weighted average number of common shares outstanding increased substantially | Metric | Three months ended Dec 31, 2024 | Three months ended Dec 31, 2023 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Basic income (loss) per share | $0.01 | $(0.08) | | Diluted income (loss) per share | $0.01 | $(0.08) | | Basic weighted average shares outstanding | 128,602,843 | 88,252,813 | | Diluted weighted average shares outstanding | 131,525,323 | 88,252,813 | - For the nine months ended December 31, 2024, basic and diluted loss per share was $(0.03), an improvement from $(0.55) in the prior year[3] - The basic weighted average number of common shares outstanding for the three months ended December 31, 2024, increased by 45.7% year-over-year[85] 19. Finance Expense Total finance expense for the three months ended December 31, 2024, decreased to $0.522 million from $0.912 million in the prior year, primarily due to lower interest and accretion on the convertible loan. For the nine-month period, finance expense also decreased | Component | Three months ended Dec 31, 2024 (in thousands of US dollars) | Three months ended Dec 31, 2023 (in thousands of US dollars) | Nine months ended Dec 31, 2024 (in thousands of US dollars) | Nine months ended Dec 31, 2023 (in thousands of US dollars) | | :-------------------------------- | :--------------------------------------------------- | :--------------------------------------------------- | :-------------------------------------------------- | :-------------------------------------------------- | | Interest and accretion on convertible loan | 253 | 587 | 1,195 | 1,872 | | Interest on lease liabilities | 103 | 127 | 332 | 407 | | Interest on loans payable | 109 | 129 | 333 | 281 | | Interest on term loan | 57 | 69 | 165 | 166 | | Total | 522 | 912 | 2,025 | 2,726 | - Total finance expense decreased by $0.390 million (42.8%) for the three months ended December 31, 2024, compared to the same period in 2023[86] - For the nine months ended December 31, 2024, total finance expense decreased by $0.701 million (25.7%) compared to the same period in 2023[86] 20. General and Administrative Expenses General and administrative expenses for the three months ended December 31, 2024, increased to $4.564 million from $3.698 million in the prior year, primarily due to higher professional fees, advisory, and consulting costs. The nine-month period also saw an increase in these expenses | Component | Three months ended Dec 31, 2024 (in thousands of US dollars) | Three months ended Dec 31, 2023 (in thousands of US dollars) | Nine months ended Dec 31, 2024 (in thousands of US dollars) | Nine months ended Dec 31, 2023 (in thousands of US dollars) | | :------------------------------------ | :--------------------------------------------------- | :--------------------------------------------------- | :-------------------------------------------------- | :-------------------------------------------------- | | Management fees, salaries and wages | 767 | 913 | 2,500 | 2,321 | | Marketing | 519 | 319 | 1,465 | 957 | | Office, administration, and regulatory | 1,571 | 1,296 | 3,651 | 3,533 | | Professional fees, advisory, and consulting | 1,707 | 1,170 | 3,772 | 3,217 | | Total | 4,564 | 3,698 | 11,388 | 10,028 | - Total general and administrative expenses increased by $0.866 million (23.4%) for the three months ended December 31, 2024, compared to the same period in 2023[87] - Professional fees, advisory, and consulting costs increased by $0.537 million (45.9%) for the three months ended December 31, 2024[87] 21. Operating and maintenance costs Operating and maintenance costs for the three months ended December 31, 2024, increased to $22.692 million from $19.640 million in the prior year, primarily due to higher digital currency mining costs. The nine-month period also saw a significant increase in these costs | Component | Three months ended Dec 31, 2024 (in thousands of US dollars) | Three months ended Dec 31, 2023 (in thousands of US dollars) | Nine months ended Dec 31, 2024 (in thousands of US dollars) | Nine months ended Dec 31, 2023 (in thousands of US dollars) | | :-------------------------------- | :--------------------------------------------------- | :--------------------------------------------------- | :-------------------------------------------------- | :-------------------------------------------------- | | Digital currency mining | 21,064 | 18,705 | 59,560 | 51,760 | | High performance computing hosting | 1,628 | 1,189 | 4,526 | 1,756 | | Total | 22,692 | 19,640 | 64,086 | 53,262 | - Total operating and maintenance costs increased by $3.052 million (15.5%) for the three months ended December 31, 2024, compared to the same period in 2023[88] - Digital currency mining costs increased by $2.359 million (12.6%) for the three months ended December 31, 2024[88] 22. Financial Instruments and Risk Management HIVE Digital Technologies Ltd. is exposed to various financial risks including credit, liquidity, foreign currency, and digital asset price risks. The Company manages these risks through strategies like using major banks for cash, custodial agreements for digital currencies, and monitoring market volatility. Significant risks include the highly volatile cryptocurrency market, potential regulatory changes, and the inherent risks of digital asset mining | Asset/Liability | December 31, 2024 (Level 1) | December 31, 2024 (Level 2) | December 31, 2024 (Level 3) | March 31, 2024 (Level 1) | March 31, 2024 (Level 2) | March 31, 2024 (Level 3) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :------------------------- | :------------------------- | :------------------------- | | Cash | - | 9,845 | - | - | 9,678 | - | | Digital currencies | - | 260,806 | - | - | 161,645 | - | | Investments | 27,568 | - | 3,132 | 5,356 | - | 1,618 | | Convertible loan - derivative component | - | - | 13 | - | - | 120 | - The Company's primary credit risk is concentrated in cash held with one major bank in Canada and amounts receivable from the Swedish, Canadian, and Quebec governments related to VAT and sales tax filings, which are currently being withheld[98][99][100][101] - Liquidity risk is managed by maintaining cash balances and central cash projections, but the highly volatile cryptocurrency market, regulatory changes, and delays in mining equipment delivery can significantly impact operations and liquidity[102][103][104] - Digital asset mining faces risks from technological obsolescence, global supply chain shortages for ASIC miners, increasing network difficulty, and the potential for Bitcoin to shift from proof-of-work to other validation methods, which could render current hardware less competitive[120][121][123][124][125] - The Company utilizes the Fireblocks platform for safeguarding digital assets, employing multi-party computation (MPC) and a policy engine to secure transactions and prevent single points of failure[119] 23. Digital Currency and Risk Management Digital currencies are measured at fair value using Level 2 inputs, and their prices are highly volatile, influenced by global supply/demand, interest rates, and economic conditions. The Company's profitability is directly tied to digital currency market prices, particularly Bitcoin, and a 5% variance in Bitcoin price could impact earnings before tax by $13.022 million - Digital currencies are measured at fair value using Level 2 inputs[132] - Digital currency prices are highly volatile and affected by various forces including global supply and demand, interest rates, exchange rates, inflation or deflation, and global political and economic conditions[133][134] | Digital Currency | Impact of 5% variance in price (in thousands of US dollars) | | :--------------- | :-------------------------------------------------------- | | Bitcoin | 13,022 | 24. Capital Management HIVE Digital Technologies Ltd. manages its capital to ensure going concern status and shareholder returns, with its capital structure consisting of equity. The Company adjusts its capital through new share issues, ATM Equity Programs, and digital currency sales, and is subject to externally imposed capital requirements related to its term loan - The Company manages its capital to maintain its ability to continue as a going concern and provide returns to shareholders[136] - The capital structure consists of equity, and adjustments are made through new share issues, ATM Equity Programs, or digital currency sales[136][137] - The Company is subject to externally imposed capital requirements due to its term loan (Note 13)[138] 25. Segmented Information HIVE Digital Technologies Ltd. operates in a single segment with two revenue streams: digital currency mining and high-performance computing hosting. All revenues are attributed to Bermuda, while plant and equipment are located across Canada, Sweden, Paraguay, and Iceland - The Company operates in one segment with two revenue streams: digital currency mining and high performance computing hosting[139] | Revenue Stream | Nine months ended Dec 31, 2024 (in thousands of US dollars) | Nine months ended Dec 31, 2023 (in thousands of US dollars) | | :-------------------------------- | :-------------------------------------------------- | :-------------------------------------------------- | | Revenue from digital currency mining | 77,088 | 75,973 | | High performance computing hosting | 7,030 | 1,611 | | Total Revenue (attributed to Bermuda) | 84,118 | 77,584 | | Location | Plant and equipment (Dec 31, 2024, in thousands of US dollars) | ROU asset (Dec 31, 2024, in thousands of US dollars) | | :--------- | :--------------------------------------------------- | :--------------------------------------------------- | | Canada | 73,181 | 2,916 | | Sweden | 31,850 | 3,661 | | Paraguay | 3,859 | - | | Iceland | 172 | - | | Total | 109,065 | 6,625 | 26. Comparative Figures Certain figures in the comparative period condensed interim consolidated financial statements have been reclassified to align with the current presentation - Certain figures in the comparative period condensed interim consolidated statements of financial position, income (loss) and comprehensive income (loss), changes in equity, and cash flows have been reclassified to meet the current presentation[141] 27. Subsequent Events Subsequent to December 31, 2024, HIVE Digital Technologies Ltd. issued additional common shares under its RSU plan and ATM Equity Program, raising $46.5 million. The Company also announced a binding letter of intent to acquire Bitfarms Ltd.'s Yguazú 200 MW hydro-powered Bitcoin mining facility in Paraguay for $56 million, plus the assumption of $19 million in PPA deposits - Subsequent to December 31, 2024, the Company issued 208,044 common shares under the RSU plan[142] - The Company issued 14,993,039 October 2024 ATM Shares for gross proceeds of $46.5 million (C$66.9 million) after the period end[143] - On January 28, 2025, HIVE announced a binding letter of intent to acquire Bitfarms Ltd.'s Yguazú 200 MW hydro-powered Bitcoin mining facility in Paraguay for $56 million, with $25 million payable at closing and $31 million in installments over six months[144] - In addition to the acquisition price, HIVE will assume $19 million of PPA deposits to ANDE, the Paraguayan utility company, and remaining construction completion costs[144]