HIVE Digital Technologies Crosses 16 EH/s, Marching Toward 25 EH/s as Expansion in Paraguay Powers Forward - Seite 2

Bitcoin mining economics are straightforward. Miners can calculate the value of each incremental exahash with simple math based on the global network difficulty. At today's network Difficulty of 129T, one exahash generates approximately 0.50 BTC per day, including block rewards and transaction fees. This means that adding just 2 EH/s of new capacity translates into the addition of roughly 1.0 BTC per day. Similarly, in the previous epoch when Difficulty was 127T, one exahash generated approximately 0.51 BTC per day, including block rewards and transaction fees. This data is publicly available from Bitcoin block explorers, which make mining data available (https://www.blockchain.com/explorer/charts#mining%20information is one example) . The daily revenue potential is a function of multiplying the amount of BTC mined per day by the then announced price of BTC. From that revenue, the analyst subtracts costs to determine mining margin. The costs associated with our mining operations are approximately 80-90% electricity, depending on the site. Cost factors that vary include staff, real estate costs, and operating and maintenance expenses. Electricity, our primary cost, varies by usage (mining) which means that it is tied to revenue.

This transparency is what makes the mining industry unique. Unlike many industry sectors where pricing power is uncertain or revenue forecasting is complex, Bitcoin miners know how each unit of computational power converts into economic output. The variables are public. They include the block reward, the level of network difficulty, the global hashrate and the market price of Bitcoin. Each exahash deployed represents a measurable contribution to daily Bitcoin production and revenue. With disciplined capital allocation and access to low-cost energy, miners can translate scaling into predictable cash flow. In short, Bitcoin mining economics are not a mystery-they are mathematically determined, with all data being available through the Bitcoin blockchain network statistics, widely available through many popular Bitcoin block explorers. In today's environment, every exahash matters. We strongly encourage investors in our industry to become familiar with the economic framework of Bitcoin mining. We especially encourage investors to examine our operating costs, as reflected in our quarterly and annual filings.