Hive reaches 16 EH/s of bitcoin hash rate

Executive Summary

• Hive Digital Technologies Ltd. has surpassed 16 exahashes per second (EH/s) of global bitcoin mining hash rate, marking a significant operational milestone.
• The company is on track to reach 25 EH/s by U.S. Thanksgiving, driven by rapid deployment of next-generation Bitmain S21+ Hydro miners in Paraguay.
• Daily bitcoin production has doubled to above eight BTC compared to May of this year, with projections reaching 12 BTC per day upon completion of the 25 EH/s expansion.

Key Details

• Current Hash Rate: Surpassed 16 EH/s globally.
• Production Output: Daily bitcoin output is now above 8 BTC, doubling production from May of the current year.
• Expansion Timeline:
  • Phase 2 (Yguazu, Paraguay): Over 5 EH/s of Bitmain S21+ Hydro miners already energized; completion expected in the coming weeks.
  • Phase 3 (Valenzuela, Paraguay): Deployment begins in September; this is the final stage of the fully financed path to 25 EH/s.
  • Target: Reach 25 EH/s by U.S. Thanksgiving.
• Future Capacity & Efficiency:
  • Upon completion of Phase 2, Paraguay capacity will exceed 11.5 EH/s, bringing global total operating hash rate to 18 EH/s.
  • Global fleet efficiency is projected to improve to approximately 18.4 joules per terahash (J/TH).
  • At 25 EH/s, the company expects a global fleet efficiency of approximately 17.5 J/TH.
• Projected Production: At 25 EH/s, daily bitcoin production is projected to reach 12 BTC per day (based on current network difficulty).
• Market Share: The 25 EH/s capacity represents nearly 3% of global supply at current network difficulty.
• Mining Economics & Metrics:
  • Network Difficulty: Currently 129 T.
  • BTC Generation: At 129 T difficulty, one exahash generates approximately 0.50 BTC per day (including block rewards and transaction fees).
  • Hash Price: With a bitcoin price of $113,000 and difficulty at 129 T, the bitcoin network hash price is approximately $55 per petahash per second per day.
  • Mining Margin: Assuming an average electricity cost of $0.05/kWh and a global fleet efficiency of 18.4 J/TH, Hive's mining margin after electrical costs is estimated at approximately 60%.
  • Cost Structure: Electricity accounts for 80-90% of mining operation costs.

Notable Quotes

• Luke Rossy, Chief Operating Officer: "Our rapid deployment in Paraguay is precision execution at scale and a true testament to the tenacity, velocity and vision of our team... our team, under the phenomenal leadership of country president of Paraguay operations Gabriel Lamas, is working around the clock to install new machines as quickly as they arrive."
• Aydin Kilic, President and Chief Executive Officer: "The team continues to be laser-focused on executing our ambitious growth strategy. After scaling from six EH/s to 16 EH/s so far this year, we expect to complete phase 2 at Yguazu on schedule and reach 18 EH/s in the coming weeks... Clean, green and funded by our operations, our purpose is clear: to build resilient, decentralized infrastructure that secures the future of bitcoin while generating robust, lasting cash flow for our shareholders."