HIVE Digital Technologies Ltd. recently announced a correction to their HODL value in their unaudited production results for August 2024. The correct HODL balance as of August 31, 2024, was 2,567 Bitcoins, not the previously reported 2,533 Bitcoins. This correction also impacted the value of the Bitcoins, which was actually over $151 million, not the previously stated $164 million. This discrepancy was due to an understatement of the number of Bitcoins held and an overstatement of their value, with the volatile nature of Bitcoin’s price being a contributing factor.
Executive Commentary
Frank Holmes, the Executive Chairman of HIVE, emphasized the company’s commitment to maintaining low General and Administrative (G&A) costs, maximizing cash flow, and achieving strong revenue per employee without excessive share dilution. Aydin Kilic, the President and CEO, highlighted the ongoing fleet optimizations and projected an increase in hashrate to 13.5 EH/s following upgrades at their Paraguay facility. The company’s focus on sustainable energy use aligns with their strategy of enhancing mining performance and environmental sustainability.
At-the-Market Offering
HIVE entered into an equity distribution agreement in August 2023, allowing them to sell up to $90 million of common shares in the capital of the company. The agreement was terminated on July 19, 2024. During the Terminal Period from July 1 to July 19, 2024, the company issued 1,368,297 common shares for gross proceeds of C$6.09 million ($4.46 million). These shares were sold at prevailing market prices, with a cash commission paid to the agent in connection with the services. The net proceeds from this offering will be used for the purchase of data center equipment, strategic investments, and general working capital.
The correction to the HODL balance and the financial updates provided by HIVE Digital Technologies Ltd. showcase the company’s commitment to transparency and accuracy in their reporting. The Executive Commentary highlights their focus on cost management, revenue growth, and sustainable practices, while the At-the-Market offering demonstrates their strategic approach to financing and investment. Moving forward, investors can look to these announcements as indicators of HIVE’s performance and trajectory in the digital technology sector.