HIVE Digital Technologies .(HIVE) - 2026 Q1 - Quarterly Report

Condensed Interim Consolidated Financial Statements Condensed Interim Consolidated Statements of Financial Position HIVE Digital Technologies Ltd. reported a significant increase in total assets, primarily driven by plant and equipment, and a decrease in digital currencies held, while total equity also saw a substantial rise as of June 30, 2025, compared to March 31, 2025 Condensed Interim Consolidated Statements of Financial Position (in thousands of U.S. dollars) | Item | June 30, 2025 | March 31, 2025 | Change | % Change | | :-------------------------------- | :------------ | :------------- | :----- | :------- | | Assets | | | | | | Total current assets | $180,648 | $245,300 | $(64,652) | -26.36% | | Digital currencies | $47,326 | $181,146 | $(133,820) | -73.88% | | Plant and equipment, net | $320,400 | $202,848 | $117,552 | 57.95% | | Deposits, net | $119,198 | $74,887 | $44,311 | 59.17% | | Total assets | $628,734 | $531,598 | $97,136 | 18.27% | | Liabilities | | | | | | Total current liabilities | $52,813 | $65,957 | $(13,144) | -19.93% | | Total liabilities | $68,213 | $82,461 | $(14,248) | -17.28% | | Equity | | | | | | Total equity | $560,521 | $449,137 | $111,384 | 24.80% | Condensed Interim Consolidated Statements of Income and Comprehensive Income For the three months ended June 30, 2025, HIVE Digital Technologies Ltd. reported a significant turnaround from a net loss to a net income, driven by increased revenue from digital currency mining and high-performance computing, coupled with substantial net realized and unrealized gains on digital currencies Condensed Interim Consolidated Statements of Income and Comprehensive Income (in thousands of U.S. dollars) | Item | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Change | % Change | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----- | :------- | | Revenue from digital currency mining | $40,797 | $29,636 | $11,161 | 37.66% | | High performance computing revenue | $4,814 | $2,605 | $2,209 | 84.80% | | Total Revenue | $45,611 | $32,241 | $13,370 | 41.47% | | Operating and maintenance costs | $(28,983) | $(21,004) | $(7,979) | 38.00% | | Depreciation | $(22,011) | $(13,094) | $(8,917) | 68.09% | | Net realized and unrealized gains (losses) of digital currencies | $23,161 | $(21,942) | $45,103 | -205.55% | | Income (loss) from operations | $35,665 | $(17,280) | $52,945 | -306.39% | | Net income (loss) after tax | $35,016 | $(18,288) | $53,304 | -291.47% | | Basic income (loss) per share | $0.19 | $(0.17) | $0.36 | -211.76% | | Diluted income (loss) per share | $0.18 | $(0.17) | $0.35 | -205.88% | Condensed Interim Consolidated Statements of Changes in Equity HIVE Digital Technologies Ltd.'s total equity significantly increased from March 31, 2025, to June 30, 2025, primarily due to a substantial net income, share offerings, and share-based compensation, alongside translation adjustments Condensed Interim Consolidated Statements of Changes in Equity (in thousands of U.S. dollars) | Item | Balance, March 31, 2025 | Balance, June 30, 2025 | Change | | :-------------------------- | :---------------------- | :--------------------- | :----- | | Additional paid in capital | $716,708 | $791,220 | $74,512 | | Accumulated other comprehensive income | $6,291 | $8,147 | $1,856 | | Accumulated deficit | $(273,862) | $(238,846) | $35,016 | | Total equity | $449,137 | $560,521 | $111,384 | Key Equity Changes (Three months ended June 30, 2025): - Share-based compensation: $5,750[10] - Shares offering: $68,169[10] - Exercise of stock options: $738[10] - Net income: $35,016[10] - Translation adjustments: $1,856[10] Condensed Interim Consolidated Statements of Cash Flows For the three months ended June 30, 2025, HIVE Digital Technologies Ltd. generated positive cash flow from operating activities, but this was offset by significant cash used in investing activities, primarily for equipment purchases and deposits. Financing activities provided a substantial cash inflow, leading to a net increase in cash for the period Condensed Interim Consolidated Statements of Cash Flows (in thousands of U.S. dollars) | Cash Flow Activity | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Change | | :------------------------------------ | :------------------------------- | :------------------------------- | :----- | | Net cash provided by (used in) operating activities | $10,228 | $(4,387) | $14,615 | | Net cash used in investing activities | $(61,956) | $(9,060) | $(52,896) | | Net cash provided by financing activities | $52,852 | $29,378 | $23,474 | | Net change in cash during the period | $1,226 | $15,931 | $(14,705) | | Cash, beginning of period | $23,375 | $9,678 | $13,697 | | Cash, end of period | $24,601 | $25,609 | $(1,008) | - Investing activities saw a significant increase in cash outflow, primarily due to deposits on equipment ($15,978 thousand) and purchase of equipment ($31,379 thousand) in Q2 2025, compared to Q2 2024[12] - Financing activities were boosted by shares offering ($68,024 thousand) in Q2 2025, partially offset by repayment of acquisition loan payable ($15,500 thousand)[12] Notes to the Condensed Interim Consolidated Financial Statements 1. Nature of Operations HIVE Digital Technologies Ltd. provides infrastructure solutions for high-performance computing (HPC) and cryptocurrency mining. The company recently changed its name from HIVE Blockchain Technologies Ltd. to reflect its broader focus on digital technologies - The Company's core business involves providing infrastructure for high performance computing (HPC) and generating hashrate for cryptocurrency mining[14] - On July 12, 2023, the Company changed its name from HIVE Blockchain Technologies Ltd. to HIVE Digital Technologies Ltd[15] - The Company is listed on TSXV (HIVE.V), Nasdaq's Capital Markets Exchange (HIVE), and the Frankfurt Stock Exchange (YO0.F)[15] 2. Basis of Presentation The financial statements are prepared in accordance with U.S. GAAP, using estimates and assumptions. The Company's functional currency changed from Canadian dollar to U.S. dollar effective April 1, 2024, and it consolidates all wholly-owned subsidiaries. New accounting pronouncements regarding income tax and expense disaggregation are being evaluated - Financial statements are prepared in accordance with U.S. GAAP and include estimates and assumptions[16][17] - Effective April 1, 2024, the Company's functional currency changed from the Canadian dollar to the U.S. dollar, reflecting ongoing activities[27] - The Company is evaluating the impact of new accounting pronouncements: ASU 2023-09 (Income Tax Disclosures, effective after Dec 15, 2024) and ASU 2024-03 (Expense Disaggregation Disclosures, effective after Dec 15, 2026)[22] Key Subsidiaries and Ownership | Subsidiary | Jurisdiction of incorporation | Functional currency | Ownership interest | | :------------------------------ | :-------------------------- | :------------------ | :----------------- | | HIVE Blockchain Switzerland AG | Switzerland | U.S. dollar | 100% | | HIVE Blockchain Iceland ehf. | Iceland | U.S. dollar | 100% | | Bikupa Datacenter AB | Sweden | U.S. dollar | 100% | | Zunz S.A. | Paraguay | U.S. dollar | 100% | | W3X S.A. | Paraguay | U.S. dollar | 100% | | BUZZ High Performance Computing Inc. | Canada | Canadian dollar | 100% | 3. Asset Acquisition On March 17, 2025, HIVE Digital Technologies Ltd. completed the acquisition of Zunz S.A. for a total consideration of $63.952 million, which was accounted for as an asset acquisition, primarily comprising building and leasehold assets - The Company acquired Zunz S.A. on March 17, 2025, for a total consideration of $63,952 thousand[30][31] - The transaction was classified as an asset acquisition, not a business acquisition, as per ASC 805[31] Zunz S.A. Acquisition Summary (March 31, 2025, in thousands of U.S. dollars) | Item | Amount | | :-------------------------- | :----- | | Consideration Transferred: | | | Cash paid | $25,000 | | Acquisition loan payable | $31,000 | | Cash advance | $7,260 | | Acquisition costs | $692 | | Total consideration | $63,952 | | Assets Acquired: | | | Building and leasehold | $57,070 | | Power purchase agreement guarantee | $3,314 | | VAT receivables | $3,126 | | Land | $952 | | Equipment | $44 | | Other | $52 | | Total assets | $64,558 | | Deferred tax liability | $(606) | | Net assets acquired | $63,952 | 4. Investments HIVE Digital Technologies Ltd. holds investments in marketable securities, private companies, and funds, with marketable securities forming the largest portion. The company recognized significant unrealized gains on these investments for the three months ended June 30, 2025 Investments (in thousands of U.S. dollars) | Investment Type | June 30, 2025 | March 31, 2025 | | :------------------------------ | :------------ | :------------- | | Marketable securities | $30,569 | $21,016 | | Equity securities of private companies | $453 | $429 | | Funds | $2,672 | $2,691 | | Total | $33,694 | $24,136 | Unrealized Gains on Investments: - Three months ended June 30, 2025: $8,172 thousand[34] - Three months ended June 30, 2024: $7,732 thousand[34] - Marketable securities are classified as Level 1 fair value measurements, while private company equity securities are Level 3[33] 5. Amounts Receivable and Prepaids The Company's net amounts receivable and prepaids significantly increased, primarily due to a rise in sales tax receivable. The collectability of certain sales tax receivables remains uncertain, and the Company is exposed to credit risk concentrated in cash holdings and government receivables Amounts Receivable and Prepaids (in thousands of U.S. dollars) | Item | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :------------ | :------------- | | Sales tax receivable | $26,879 | $14,650 | | Prepaid expenses and other receivables | $12,692 | $8,527 | | Receivable on sale of subsidiary | $1,816 | $1,816 | | Accounts receivable and prepaids, gross | $41,387 | $24,993 | | Provision on sales tax receivable | $(3,719) | $(6,633) | | Amounts receivable and prepaids, net | $37,668 | $18,360 | | Current portion | $(34,520) | $(15,343) | | Long term portion | $3,148 | $3,017 | - The collectability of the sales tax receivable is conditional upon a ruling by the Swedish Tax Authority, with management assessing collectability using a probability model[35] - The Company's primary credit risk exposure is on cash held in bank accounts, concentrated with one major bank in Canada, and on receivables from Swedish, Canadian, and Quebec governments[37][38] 6. Digital Currencies and Derivative Asset HIVE Digital Technologies Ltd.'s digital currency holdings, primarily Bitcoin, significantly decreased due to sales and deposits on equipment, despite new mining and purchases. The Company recognized a substantial net revaluation gain on digital currencies and a significant increase in its derivative asset related to Bitcoin repurchase options Digital Currency Holdings (in thousands of U.S. dollars) | Digital Currency | June 30, 2025 | March 31, 2025 | | :--------------- | :------------ | :------------- | | Bitcoin | $46,463 | $180,741 | | Ethereum Classic | $6 | $6 | | Other currencies | $857 | $399 | | Total | $47,326 | $181,146 | Bitcoin Continuity (Number of coins) | Item | March 31, 2025 | June 30, 2025 | | :-------------------------- | :------------- | :------------ | | Digital currencies, beginning | 2,201 | 2,201 | | Digital currency mined | 406 | 406 | | Digital currency purchased | 86 | 86 | | Digital currency sold | (693) | (693) | | Deposit on equipment | (1,565) | (1,565) | | Digital currencies, end | 435 | 435 | - The total net revaluation of digital currencies for the current period was a gain of $23.2 million (June 30, 2024: loss of $21.9 million), including cumulative realized gains of $17.3 million[41] - The Company holds options to repurchase 1,651 Bitcoin (March 31, 2025: 172 Bitcoin) with a fair value of $40.5 million (March 31, 2025: $1.3 million), recognizing a remeasurement gain of $16.6 million during the period[42] 7. Plant and Equipment HIVE Digital Technologies Ltd.'s net plant and equipment significantly increased, primarily driven by additions to equipment and buildings. Construction in progress for the Paraguay datacenter facility also saw a notable rise Plant and Equipment (in thousands of U.S. dollars) | Component | June 30, 2025 | March 31, 2025 | | :-------------------- | :------------ | :------------- | | Equipment | $434,324 | $312,231 | | Building | $122,751 | $103,032 | | Land | $2,592 | $2,244 | | Total Cost | $559,667 | $417,507 | | Accumulated depreciation | $(239,267) | $(214,659) | | Net carrying value | $320,400 | $202,848 | Construction in Progress: - June 30, 2025: $27.3 million[43] - March 31, 2025: $18.5 million[43] 8. Deposits The Company's net deposits increased substantially, mainly due to significant equipment deposits and a large security deposit for a power supply agreement with ANDE in Paraguay. The Company is exposed to counterparty risk related to equipment suppliers Deposits (in thousands of U.S. dollars) | Description | June 30, 2025 | March 31, 2025 | | :-------------------- | :------------ | :------------- | | Equipment deposits | $106,533 | $78,647 | | ANDE (Paraguay electricity) | $22,472 | $6,524 | | Vattenfall AB | $1,338 | $1,263 | | Deposits, net | $119,198 | $74,887 | - The Company paid an additional $15.9 million security deposit to ANDE on April 2, 2025, related to a 200 MW power supply agreement acquired with Zunz SA[46] - The Company faces counterparty risk from equipment suppliers regarding timely delivery and quality, which it mitigates by working with established suppliers[45] 9. Accounts Payable and Accrued Liabilities HIVE Digital Technologies Ltd.'s accounts payable and accrued liabilities increased, primarily driven by a rise in accrued liabilities Accounts Payable and Accrued Liabilities (in thousands of U.S. dollars) | Component | June 30, 2025 | March 31, 2025 | | :-------------------------- | :------------ | :------------- | | Accounts payable | $10,168 | $11,650 | | Accrued liabilities | $5,148 | $2,254 | | Holdback payable | $500 | $500 | | Other payable | $1,241 | $973 | | Total | $17,057 | $15,377 | 10. Convertible Loan The convertible loan, issued in 2021 to U.S. Global Investors, Inc., had its embedded derivative component reclassified to equity on April 1, 2024, due to a change in the Company's functional currency. The liability component of the loan continues to be managed with quarterly principal and monthly interest payments - The convertible loan was issued on January 12, 2021, for $15 million with an 8% annual interest rate, maturing in 60 months, and convertible at C$15.00 per share[50][51] - Prior to April 1, 2024, the conversion feature was classified as a derivative liability; however, it was reclassified to equity as of April 1, 2024, due to the change in functional currency[52][54] Convertible Loan Liability Component Continuity (in thousands of U.S. dollars) | Item | March 31, 2025 | June 30, 2025 | | :-------------------- | :------------- | :------------ | | Balance, beginning | $1,871 | $1,871 | | Interest payment | - | $(31) | | Accretion and interest | $169 | $169 | | Balance, end | $2,009 | $2,009 | | Current portion | $(2,009) | $(2,009) | | Non-current portion | $0 | $0 | 11. Warrant Liability Due to the change in functional currency, all outstanding warrants were reclassified from equity to liability and are re-valued each reporting period using the Black-Scholes option pricing model. The warrant liability increased from March 31, 2025, to June 30, 2025 - All issued and outstanding warrants were reclassified from equity to liability during the year ended March 31, 2025, because their strike prices are denominated in Canadian dollars and are not indexed to the Company's stock in U.S. dollars[55] Warrant Liability (in thousands of U.S. dollars) | Item | June 30, 2025 | March 31, 2025 | | :-------------------- | :------------ | :------------- | | Warrant liability | $883 | $760 | Warrants Outstanding (Number of warrants) | Item | March 31, 2025 | June 30, 2025 | | :-------------------- | :------------- | :------------ | | Balance, beginning | 3,220,000 | 3,220,000 | | Balance, end | 3,220,000 | 3,220,000 | Black-Scholes Assumptions (June 30, 2025): - Stock price (C$): $2.46[57] - Risk-free interest rate: 2.55%[57] - Expected life (years): 1.50[57] - Annualized volatility: 85%[57] 12. Loans Payable The Company's loans payable increased from March 31, 2025, to June 30, 2025, primarily due to foreign exchange movements and interest accrual. The loan is contingently forgiven based on a favorable ruling from the Swedish Tax Authority Loans Payable Continuity (in thousands of U.S. dollars) | Item | March 31, 2025 | June 30, 2025 | | :-------------------------- | :------------- | :------------ | | Balance, beginning | $12,992 | $12,992 | | Interest | $72 | $72 | | Foreign exchange movement | $772 | $772 | | Balance, end | $13,836 | $13,836 | | Current portion | $(3,077) | $(3,077) | | Non-current portion | $10,759 | $10,759 | - The loan payable bears interest at the Swedish government borrowing rate plus 1% per annum and matures on December 31, 2035[61] - The loan is contingently forgiven based on a favorable ruling from the Swedish Tax Authority regarding an ongoing value tax assessment[61] 13. Term Loan The Atlantic Term Loans were renewed, with Term Loan 1 renewed for one year at 4.39% interest and Term Loan 2 for two years at 5.15%. A covenant amendment on April 21, 2025, removed certain financial covenants, leaving only a minimum debt service coverage ratio to EBITDA of 1.50:1 - Term Loan 1 was renewed on June 30, 2025, for a 1-year term at an interest rate of 4.39% with a remaining balance of C$2.8 million[65] - Term Loan 2 was renewed on June 30, 2024, for a 2-year term at an interest rate of 5.15% with a remaining balance of C$2.6 million[64] - A covenant amendment on April 21, 2025, removed the minimum working capital ratio and maximum long-term debt to tangible net worth ratio, retaining only a minimum debt service coverage ratio to EBITDA of 1.50:1[66][70] Term Loan Continuity (in thousands of U.S. dollars) | Item | March 31, 2025 | June 30, 2025 | | :-------------------------- | :------------- | :------------ | | Balance, beginning | $3,558 | $3,558 | | Interest | $47 | $47 | | Repayment | $(457) | $(457) | | Foreign exchange movement | $185 | $185 | | Balance, end | $3,333 | $3,333 | 14. Right of Use Asset and Operating Lease Liability The Company maintains lease agreements for its offices and data centers, resulting in right-of-use assets and corresponding lease liabilities. The net carrying value of right-of-use assets slightly decreased, while total lease liabilities also saw a minor reduction Right of Use Assets and Lease Liabilities (in thousands of U.S. dollars) | Item | June 30, 2025 | March 31, 2025 | | :-------------------------- | :------------ | :------------- | | Right of use assets, net | $5,340 | $5,546 | | Lease liabilities, current | $2,863 | $2,645 | | Lease liabilities, non-current | $2,684 | $3,095 | | Total lease liabilities | $5,547 | $5,740 | Lease Metrics: - Weighted average discount rate: 6.00% (June 30, 2025 & March 31, 2025)[73] - Weighted average remaining lease term: 2.24 years (June 30, 2025)[73] Total Lease Costs (Three months ended): - June 30, 2025: $820 thousand[73] - June 30, 2024: $747 thousand[73] 15. Commitments and Contingencies HIVE Digital Technologies Ltd. has significant purchase commitments for mining equipment and site development, which decreased substantially from March 31, 2025, to June 30, 2025. The Company is also appealing substantial VAT assessments from the Swedish Tax Authority, with no amounts recorded as payable due to management's belief that the claims lack merit Purchase Commitments (in thousands of U.S. dollars) | Item | June 30, 2025 | March 31, 2025 | | :-------------------------- | :------------ | :------------- | | Mining equipment and site development | $67,600 | $227,800 | - The Company has service agreements for data center operations and a fixed-price power purchase agreement in Sweden[74] - The Swedish Tax Authority (STA) issued assessments totaling approximately $60.4 million for VAT recovery rejection, which the Company is formally appealing, believing the decision lacks merit and is not compatible with current law[76][77] - As of June 30, 2025, no amounts have been recorded as payable to the STA in connection with these decisions, as the Company does not believe the amount claimed is probable[77][79] 16. Related Party Transactions Key management compensation, including salaries and share-based payments, significantly increased for the three months ended June 30, 2025, compared to the prior year. The Company also has minor amounts due to directors and officers for expense reimbursements and pays for marketing services to a director-controlled company Key Management Compensation (in thousands of U.S. dollars) | Compensation Type | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | | Salaries and wages | $400 | $300 | | Share-based payments | $3,000 | $300 | - As of June 30, 2025, $0.4 million was due to a director and officers for expense reimbursements, included in accounts payable and accrued liabilities[84] - The Company paid $82 thousand for marketing services to a company controlled by a director for the period ended June 30, 2025[84] 17. Equity HIVE Digital Technologies Ltd. has authorized unlimited common and preferred shares. During the three months ended June 30, 2025, the Company issued a significant number of common shares through its October 2024 ATM Equity Program and from the exercise of stock options, contributing to an increase in additional paid-in capital - The Company has authorized unlimited common shares and unlimited preferred shares without par value[83] - Issued 38,109,822 common shares under the October 2024 ATM Equity Program for gross proceeds of $70 million, at an average price of $1.84 (C$2.54) per share[85] - Issued 600,000 common shares for total proceeds of $738 thousand from the exercise of stock options[85] - The August 2023 ATM Equity Program, which issued 11,166,160 common shares for $32.9 million, was terminated as of July 8, 2024[86] 18. Stock-based Compensation Stock-based compensation expense significantly increased for the three months ended June 30, 2025, primarily due to Restricted Share Units (RSUs). The Company operates a rolling Stock Option Plan and an RSU Plan, with a notable grant of 2,797,000 RSUs on April 17, 2025 Stock-based Compensation Expense (in thousands of U.S. dollars) | Component | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | RSUs | $5,715 | $385 | | Stock options | $35 | $104 | | Total | $5,750 | $489 | - The Stock Option Plan reserves up to 10% of total issued and outstanding shares, with a maximum term of 10 years and exercise price not less than market price at grant date[89] - On April 17, 2025, the Company granted 2,797,000 RSUs with a fair value of C$2.05 per share, vesting on April 17, 2026[95] Restricted Share Units Outstanding (Number of units) | Item | March 31, 2025 | June 30, 2025 | | :-------------------- | :------------- | :------------ | | Balance, beginning | 7,102,412 | 7,102,412 | | Granted | 2,797,000 | 2,797,000 | | Balance, end | 9,899,412 | 9,899,412 | 19. Income per Share Basic and diluted income per share calculations reflect the Company's net income and the impact of potentially dilutive common shares, such as stock options and warrants Weighted Average Common Shares Outstanding (Number of shares) | Item | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Basic weighted average number of common shares outstanding | 182,007,767 | 110,691,493 | | Effect of dilutive stock options and warrants | 10,819,412 | - | | Diluted weighted average common shares outstanding | 192,827,179 | 110,691,493 | 20. Finance Expense Total finance expense decreased for the three months ended June 30, 2025, compared to the prior year, primarily due to a reduction in interest and accretion on the convertible loan Finance Expense (in thousands of U.S. dollars) | Component | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Interest and accretion on convertible loan | $169 | $494 | | Interest on loans payable | $72 | $107 | | Interest on term loan | $47 | $44 | | Total | $288 | $645 | 21. General and Administrative Expenses General and administrative expenses increased for the three months ended June 30, 2025, driven by higher professional fees, advisory and consulting costs, and management fees, salaries, and wages General and Administrative Expenses (in thousands of U.S. dollars) | Component | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Professional fees, advisory and consulting | $2,156 | $1,106 | | Office, administration and regulatory | $1,565 | $982 | | Management fees, salaries and wages | $1,515 | $972 | | Marketing | $514 | $383 | | Total | $5,750 | $3,443 | 22. Operating and Maintenance Costs Operating and maintenance costs increased for the three months ended June 30, 2025, primarily due to higher digital currency mining costs, partially offset by a decrease in high-performance computing hosting costs Operating and Maintenance Costs (in thousands of U.S. dollars) | Component | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Digital currency mining | $26,843 | $18,266 | | High performance computing hosting | $2,140 | $2,738 | | Total | $28,983 | $21,004 | 23. Supplemental Cash Flow Information Supplemental cash flow information highlights non-cash transactions and cash payments for interest and income taxes for the three months ended June 30, 2025 Supplemental Cash Flow Information (in thousands of U.S. dollars) | Item | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Recognition of ROU assets and lease liabilities | $286 | $204 | | Reclassification of warrant liability from equity | $0 | $5,112 | | Reclassification of derivative liability to equity | $0 | $(120) | | Interest paid | $232 | $661 | | Income taxes paid | $187 | $0 | 24. Fair Value Measurements The Company classifies its financial assets and liabilities into a three-level fair value hierarchy. As of June 30, 2025, digital currencies and cash are primarily Level 2, marketable securities are Level 1, and derivative assets, private company investments, and warrant liabilities are Level 3, with significant changes in Level 3 derivative assets - Fair value measurements are classified into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[103][104] Fair Value Hierarchy of Financial Assets and Liabilities (June 30, 2025, in thousands of U.S. dollars) | Item | Level 1 | Level 2 | Level 3 | | :-------------------------- | :------ | :------ | :------ | | Assets: | | | | | Cash | $0 | $24,601 | $0 | | Digital currencies | $0 | $47,326 | $0 | | Investments | $30,569 | $0 | $453 | | Derivative asset | $0 | $0 | $40,507 | | Total Assets | $30,569 | $71,927 | $40,960 | | Liabilities: | | | | | Warrant liability | $0 | $0 | $883 | | Total Liabilities | $0 | $0 | $883 | Level 3 Continuity (in thousands of U.S. dollars) | Item | Balance, March 31, 2025 | Additions/Transfers | Change in Fair Value | Balance, June 30, 2025 | | :-------------------- | :---------------------- | :------------------ | :------------------- | :--------------------- | | Investments | $429 | $0 | $24 | $453 | | Derivative asset | $1,300 | $24,043 (Additions) / $(1,395) (Exercised) | $16,559 | $40,507 | | Warrant liability | $760 | $0 | $123 | $883 | 25. Digital Currency and Risk Management Digital currencies are measured using Level 2 inputs and are subject to significant price volatility influenced by global supply and demand, interest rates, and economic conditions. The Company's profitability is directly tied to coin prices, and it has not hedged its digital currency holdings - Digital currencies are measured using Level 2 inputs, with fair value determined by prices on coinbase.com[105][111] - Digital currency prices are highly volatile and influenced by global supply/demand, interest rates, exchange rates, inflation/deflation, and political/economic conditions[111] - The Company's profitability is directly related to the market price of digital currencies, and it has not hedged its coin sales or future mining[111] - A 5% variance in Bitcoin price would impact the Company's earnings before tax by $2,323 thousand based on the June 30, 2025, closing price[114] 26. Segmented Information HIVE Digital Technologies Ltd. operates as a single segment with two revenue streams: digital currency mining and high-performance computing hosting. While revenue is attributed to Bermuda, the Company's plant and equipment are geographically diversified across Canada, Sweden, and Paraguay - The Company operates in one segment, encompassing digital currency mining and high-performance computing hosting[117] External Revenues by Geographical Location (in thousands of U.S. dollars) | Location | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :------- | :------------------------------- | :------------------------------- | | Bermuda | $45,611 | $32,241 | | Total | $45,611 | $32,241 | Plant and Equipment by Jurisdiction (June 30, 2025, in thousands of U.S. dollars) | Jurisdiction | Plant and equipment | Right of use asset | Total | | :----------- | :------------------ | :----------------- | :---- | | Canada | $204,431 | $3,110 | $207,541 | | Paraguay | $93,783 | $0 | $93,783 | | Sweden | $22,186 | $2,203 | $24,389 | | Bermuda | $0 | $27 | $27 | | Total | $320,400 | $5,340 | $325,740 | - No single customer or related group of customers contributed 10% or more of total consolidated revenue, aside from the digital currency mining pool[120] 27. Subsequent Events Subsequent to June 30, 2025, HIVE Digital Technologies Ltd. issued additional common shares under its RSU plan and October 2024 ATM Equity Program, and granted new RSUs to employees, officers, directors, and consultants - Issued 1,175,441 common shares under the RSU plan upon exercise of restricted share units[121] - Issued 24,099,854 common shares under the October 2024 ATM Equity Program for gross proceeds of $52.9 million, at an average price of $2.19 (C$3.00) per share[122] - Granted 2,809,000 RSUs on July 8, 2025, with a fair value of C$3.03 per share, vesting on July 8, 2026[123]