HIVE Reports Q1 2027 Revenue of $79.1 Million; Contracted GPU Cloud ARR(1) Reaches Approximately $110 million

This news release constitutes a "designated news release" for the purposes of the Company's amended and restated prospectus supplement dated June 16, 2026 to its short form base shelf prospectus dated October 31, 2025.

San Antonio, Texas--(Newsfile Corp. - August 15, 2026) - HIVE Digital Technologies Ltd. (TSX: HIVE) (Nasdaq: HIVE) (BVC: HIVECO) (the "Company" or "HIVE"), a global leader in sustainable data center infrastructure, today announced its results for the first quarter of fiscal 2027, ended June 30, 2026 (all amounts in US dollars, unless otherwise indicated).

Q1 FY2027 Financial Highlights

• Total Revenue: $79.1 million, up 73.5% year-over-year and 10.2% sequentially reflecting strong contributions from both its digital currency mining and high-performance computing (HPC) business.

• Digital Currency Revenue: $72.1 million, up 76.6% year-over-year and 7.3% sequentially driven by higher Bitcoin production. 1,004 Bitcoin were received as rewards during the period, up 147% year-over-year from 406 Bitcoin received in fiscal Q1 2026, driven by the significant expansion of HIVE's average operational hashrate to 24.0 EH/s compared with 8.7 EH/s in fiscal Q1 2026.

• HPC Revenue: BUZZ HPC revenue was $7.1 million, up 46.7% year-over-year and 52.1% sequentially, driven by the deployment of an NVIDIA B200 GPU cluster at its Manitoba, Canada, site, as well as strong demand and pricing across GPU marketplaces.

• Gross Operating Margin²: $24.2 million (30.6% of revenue), up from $17.5 million (24.4%) in fiscal Q4 2026. See the calculation of gross operating margin included below in this press release.

• SG&A: $9.0 million, down from $9.4 million in fiscal Q4 2026. There is a year-over-year increase from $5.8 million in Q1 FY2026 primarily reflected investments to support the continued growth of HIVE's HPC business and BUZZ team.

• GAAP Net Loss: $142.9 million, driven primarily by non-cash charges: a $84.7 million provision for regulatory liabilities, $53.7 million of depreciation expense, $7.1 million of share-based compensation, and a $7.1 million change in fair value of derivatives.

• Adjusted EBITDA²: $13.4 million or 17.0% of total revenue.

• Liquidity: $208.0 million of cash and cash equivalents and $11.2 million of digital currencies as of June 30, 2026.

AI and HPC Growth

• Scaling Contracted GPU Cloud Revenue: HIVE increased its active and contracted GPU Cloud ARR to approximately $110 million, driven by its approximately $225 million, three-year sovereign AI agreement with Bell AI Fabric supporting Cohere, which adds $75 million ARR to the approximately $35 million of GPU Cloud ARR currently live. The agreement covers the deployment of 2,304 NVIDIA GB200 NVL72 GPUs and builds on HIVE's existing GPU Cloud platform. HIVE is targeting approximately $200 million of GPU Cloud ARR by the fourth quarter of calendar 2026, subject to market conditions and successful deployment.

• Expanding the HPC Pipeline: In addition to approximately $110 million of contracted GPU Cloud ARR, HIVE has signed an LOI for long-term colocation at its 32 MW Big Boden facility in Sweden, representing approximately $45 million of potential annual colocation revenue. Including this potential opportunity, HIVE's HPC ARR pipeline totals approximately $155 million. Beyond calendar 2026, HIVE's Tier-III development pipeline, including 70 MW in New Brunswick, Toronto, Little Boden and the planned 320 MW GTA Gigafactory, supports a longer-term target of approximately $700 million of total HPC ARR by year-end 2028.

• Expanding Power Capacity and Capital Allocation Flexibility: HIVE currently operates approximately 440 MW of global power capacity and expects its energized footprint to reach approximately 540 MW following the planned energization of an additional 100 MW PPA at Yguazú in the fourth quarter of calendar 2026. The additional capacity is currently unallocated, providing HIVE with flexibility to deploy power toward the opportunities it believes offer the most attractive returns across hashrate services, AI, and high-performance computing workloads.

Swedish VAT Matter

During the quarter, the Company recorded a non-cash provision of $84.7 million relating to previously disclosed and contested VAT assessments by the Swedish Tax Authority ("STA") involving the Company's Swedish subsidiaries. The assessments primarily relate to the deductibility of input VAT associated with equipment and other expenditures used in the Company's hashrate services operations, including ASIC mining equipment, for periods beginning in 2023.

The Company has contested the STA's assessments and continues to pursue the legal remedies available to it, including appeals through the Swedish administrative court system. While the provision has been recognized in accordance with U.S. GAAP following recent adverse Court of Appeal judgments, the Company continues to dispute the underlying tax assessments and believes it has grounds to pursue its position through the remaining appeals process.

HIVE has maintained operations in Sweden for several years and believes it has been a responsible long-term participant in the communities in which it operates. Over the past five years, the Company estimates that it has paid more than US$50 million in Sweden through taxes and other government-related charges, including taxes associated with electricity consumption and income taxes. The disputed VAT assessments are separate from these amounts and relate specifically to the tax treatment of expenditures associated with the Company's hashrate services operations.

Darcy Daubaras, HIVE's CFO, commented: "We have operated in Sweden since 2018 and believe we have been responsible stewards of capital and constructive participants in the communities where we operate. During the past five years, HIVE has paid more than US$50 million in taxes and other government-related charges in Sweden in the normal course of our operations. The VAT assessments underlying this quarter's provision represent a specific and contested tax matter related to our hashrate services operations. While we have appropriately reflected the provision in our financial statements under U.S. GAAP, we continue to dispute the underlying assessments and intend to pursue the legal remedies available to us."

Management Insights

Frank Holmes, Co-Founder and Executive Chairman, stated: "HIVE was an early mover among digital asset miners in recognizing the opportunity to repurpose our GPU expertise for high-performance computing and AI. That decision was not a recent pivot. We have spent years building the technical expertise, operating experience and infrastructure required to manage GPU compute at scale, and today that foundation is positioning HIVE to play an increasingly important role in Canada's emerging sovereign AI ecosystem.

Canada has a unique opportunity to become a global leader in sovereign AI, with world-class AI talent, abundant renewable energy and growing demand for domestic compute infrastructure. Through BUZZ, we are bringing those advantages together by building and operating Canadian AI infrastructure powered by 100% renewable energy.

What began as an extension of our GPU computing expertise has evolved into a significant growth platform for HIVE. With our expanding GPU Cloud business, our relationship with Bell AI Fabric supporting Cohere, and our growing Tier-III development pipeline, we believe HIVE is exceptionally well positioned to help build the infrastructure that will power Canada's AI economy."

Aydin Kilic, President & CEO, stated: "We are marching towards our year-end target of $200 million ARR for our GPU cloud business by the end of 2026. Building on approximately $35 million of live GPU Cloud ARR today (approximately $97,000 current daily revenue from 5,500 GPUs), this quarter we increased contracted GPU Cloud ARR by $75 million through our approximately $225 million, three-year sovereign AI agreement with Bell AI Fabric supporting Cohere with 2,304 GB200 GPUs. This brings our active and contracted GPU cloud revenue to approximately $110 million of annual run-rate revenue, from approximately 7,800 GPUs.

Beyond GPU Cloud, our signed LOI for long-term colocation at our 32 MW Big Boden facility in Sweden represents approximately $45 million of potential annual colocation revenue. Including this opportunity, our HPC and AI ARR pipeline represents approximately $155 million, providing a clear path toward our target of approximately $200 million GPU Cloud ARR by the fourth quarter of calendar 2026. Notably, BUZZ delivered strong growth in the first fiscal quarter, with HPC revenue increasing 52% sequentially to $7.1 million, driven by the continued ramp of our GPU Cloud platform"

Darcy Daubaras, CFO, stated: "This first quarter of fiscal 2027 demonstrated the increasing scale and underlying operating strength of HIVE's business. Revenue grew 73% year-over-year to $79.1 million, while gross operating margin increased 53% to $24.2 million, and we returned to positive Adjusted EBITDA of $13.4 million. Importantly, our reported net loss was significantly impacted by non-cash items, including the $84.7 million provision related to the ongoing Swedish VAT matter. We also ended the quarter with $208 million of cash, positioning HIVE to fund its next phase of growth from a position of financial strength as we continue to invest in the expansion of our HPC and AI infrastructure platform."

Quarterly ATM Sales Report

For the three-month period ended June 30, 2026, the Company issued 9,855,902 common shares (the "November 2025 ATM Shares") pursuant to the at-the-market offering commenced in November 2025 (the "November 2025 ATM Equity Program") for gross proceeds of approximately $31.1 million. The November 2025 ATM Shares were sold at prevailing market prices, for an average price per November 2025 ATM Share of $3.16 (C$4.37). Pursuant to the November 2025 ATM Equity Program, a cash commission of $0.9 million on the aggregate gross proceeds raised was paid to the sales agents in connection with its services under the November 2025 ATM Equity Program.

Conference Call Information
HIVE will hold its fiscal Q1 2027 earnings call on Monday, August 17 at 8:00 AM ET. To participate in this event, please log on or dial in approximately 5 minutes before the call.

Date: August 17, 2026
Time: 8:00 AM ET
Webcast: Registration link here
Dial-in: Provided after registration

Notes

¹ The term "ARR" refers to the Company's run rate revenue calculated on an annualized basis. As context dictates, the Company calculates ARR by: (i) multiplying the revenue realized per week times 52 weeks per year, (ii) multiplying the realized revenue per day times 365 days per year, or (iii) multiplying the per quarter data times four quarters per year. Projections of ARR may be unreliable as a predictor of future results because such projections typically do not incorporate the possibility of subsequent cancellations, discounts or downgrades in services. 

² Adjusted EBITDA and gross operating margin are non-GAAP financial measures. Refer to the section titled "Non-GAAP Financial Measures" below for a discussion of how we use non-GAAP measures and for a reconciliation to the nearest comparable GAAP measure.

Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian and United States securities legislation and regulations that is based on expectations, estimates and projections as at the date of this news release, and are covered by safe harbors under Canadian and US securities laws. "Forward-looking information" in this news release includes but is not limited to: the expansion of our HPC pipeline in New Brunswick, Sweden, and Toronto, their potential, the timing of becoming operational; the planned expansion in Paraguay; business goals and objectives of the Company, including its target hashrate and HPC ARR milestones and the costs to achieve the milestones; the results of operations for the three months ended June 30, 2026; the expected costs of maintaining and growing its operations; financial information related to annualized run rate; the acquisition, deployment and optimization of the hashrate fleet and equipment; the continued viability of its existing hashrate services operations; the receipt of government consents; and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.

Factors that could cause actual results to differ materially from those described in such forward looking information include, but are not limited to: the inability to complete the expansion of the Paraguay facilities on an economic and timely basis and achieve the desired operational performance; the ongoing support and cooperation of local authorities and the Government of Paraguay; the volatility of the digital currency market; the Company's ability to successfully earn digital currency; the outcome of the tax dispute in Sweden; our dependence on significant customers for our HPC operations; the Company may not be able to profitably liquidate its current digital currency inventory as required, or at all; a material decline in digital currency prices may have a significant negative impact on the Company's operations; the regulatory environment for cryptocurrency in Canada, the United States and the countries where our hashrate facilities are located; economic dependence on regulated terms of service and electricity rates; the speculative and competitive nature of the technology sector; dependency on continued growth in blockchain and cryptocurrency usage; lawsuits and other legal proceedings and challenges; government regulations; including the rapidly evolving regulatory landscape surrounding HPC, AI and hashrate services; the global economic climate; dilution; future capital needs and uncertainty of additional financing, including the Company's ability to utilize the Company's ATM Program and the prices at which the Company may sell Common Shares in the ATM Program, as well as capital market conditions in general; risks relating to the strategy of maintaining and increasing Bitcoin holdings and the impact of depreciating Bitcoin prices on working capital; currency exchange risks; the ability of the Company to manage its planned growth and expansion; the ability to maintain reliable and economical sources of power to operate its facilities; the impact of energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which the Company operates; protection of proprietary rights; network security risks; the ability of the Company to maintain properly working systems; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; share dilution resulting from the ATM Program and from other equity issuances; the construction and operation of facilities may not occur as currently planned, or at all; expansion may not materialize as currently anticipated, or at all; the digital currency market; revenue may not increase as currently anticipated, or at all; an increase in network difficulty may have a significant negative impact on operations; the risks of an increase in the Company's electricity costs, cost of natural gas, changes in currency exchange rates, energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which the Company operates and the adverse impact on the Company's profitability; an inability to predict and counteract the effects of pandemics on the business of the Company, including but not limited to the effects of pandemics on the price of digital currencies, capital market conditions, restriction on labor and international travel and supply chains; and, the adoption or expansion of any regulation or law that will prevent the Company from operating its business, or make it more costly to do so; and other related risks as more fully set out in the Company's disclosure documents under the Company's filings at www.sec.gov/EDGAR and www.sedarplus.ca.

The forward-looking information in this news release reflects the Company's current expectations, assumptions, and/or beliefs based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's objectives, goals or future plans, the timing thereof and related matters. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance, and accordingly, undue reliance should not be put on such information due to its inherent uncertainty. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether because of new information, future events or otherwise, other than as required by law.

Non-GAAP Financial Measures
The Company uses gross operating margin and Adjusted EBITDA as supplemental non-GAAP financial measures to assess its operating performance. Management believes these measures provide useful information in evaluating the underlying performance of the Company's operations and facilitating comparisons between periods.

These measures are not recognized measures under U.S. GAAP, do not have standardized meanings prescribed by U.S. GAAP and may not be comparable to similarly titled measures presented by other companies. They should not be considered in isolation or as substitutes for financial measures prepared in accordance with U.S. GAAP.

Gross Operating Margin

The Company believes that, in addition to conventional measures prepared in accordance with US GAAP, it is helpful to management, the board and investors to use the gross operating margin to evaluate the Company's performance and its ability to generate cash flows and service debt. The gross operating margin is defined as total revenue less direct cash costs, being operating and maintenance costs and high-performance computing service fees.

Gross Operating Margin Calculation

Adjusted EBITDA

The Company uses EBITDA and Adjusted EBITDA as a metric that is useful to management, the board and investors for assessing its operating performance on a cash basis before the impact of non-cash items and acquisition-related activities. EBITDA is net income or loss from operations, as reported in profit and loss, before finance income and expense, tax and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for by removing other non-cash items, including share-based compensation, finance expense, depreciation and one-time transactions.

Adjusted EBITDA Reconciliation
Calculation of EBITDA and Adjusted EBITDA

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