Vancouver, British Columbia, November 27, 2023 – In a landmark development that significantly bolsters its position in the global digital technology arena, HIVE Digital Technologies Ltd. (HIVE), a prominent player in the field of digital asset mining and data center operations, has made a pivotal stride. The company announced the acquisition of a cutting-edge data center facility situated in Boden, Sweden.
This move is not merely an expansion of HIVE’s geographical footprint but also a strategic maneuver that aligns seamlessly with its overarching objectives. The acquisition, earmarked as a designated news release in line with the Company’s prospectus supplement dated May 10, 2023, underlines the company’s aggressive pursuit of growth and expansion.
This strategic investment marks a significant chapter in HIVE’s path, underscoring its commitment to building long-term value for its investors and stakeholders. Situated in one of the most technologically advanced regions of Sweden, the state-of-the-art data center is poised to become a key asset in HIVE’s expanding portfolio.
The acquisition not only enhances HIVE’s capacity in digital asset mining but also reaffirms its dedication to sustainable growth. By integrating this facility into its network, HIVE is set to bolster its infrastructure in the data center sector, a move that aligns with its vision to be at the forefront of sustainable and eco-friendly digital technology practices.
This step is a testament to HIVE’s foresight in recognizing the importance of sustainable practices in an industry that is increasingly becoming conscious of its environmental impact.
HIVE’s Strategic Growth and Expansion
HIVE, a pioneer in “green” data center construction and digital asset mining, has been consistently focused on expanding its global footprint. The recent acquisition in Boden, Sweden, signifies a vital step in this direction. This new facility, previously a part of the EU Horizon 2020 project, is in close proximity to HIVE’s existing data center, allowing for operational synergies and increased Bitcoin production with new generation ASIC servers.
Johanna Thornblad, HIVE Sweden Country President, commented on the acquisition, highlighting the strategic location of the Property and its alignment with the company’s growth strategy. She emphasized the acquisition’s potential to expand HIVE’s regional footprint while adhering to its ESG focus, sustainability, and energy efficiency.
Transaction Details
Under the Property Transfer Agreement dated November 23, 2023, with Turis AB, HIVE shall acquire the Property and certain onsite assets. The purchase price is structured as a combination of cash and common shares of HIVE, totaling up to $2,250,000. The first installment of Common Shares is due on the acquisition’s closing date, with the second installment payable six months later or upon settlement of any breach of warranty claims.
The completion of this acquisition is contingent upon meeting certain conditions and receiving regulatory approvals, including the TSXV’s nod. All securities issued will be subject to a statutory hold period of four months and one day from the issuance date.
About HIVE Digital Technologies Ltd.
With a positioning as a technology stock bridging the gap between digital currency, blockchain sectors, and traditional capital markets, HIVE owns and operates green energy-powered data center facilities in Canada, Sweden, and Iceland. The company has been strategically holding the majority of its BTC treasury derived from mining rewards since early 2021.
Impact on Regional Economy and the Tech Sector
HIVE’s expansion into Boden marks a significant milestone for both the regional economy and the tech sector. The establishment of their new data center in this area is poised to have a profound impact on local economic dynamics. By creating a multitude of job opportunities, HIVE is not just offering employment but is also paving the way for skill development and technological education in the region.
This influx of new jobs ranges from technical roles, like data scientists and network engineers, to administrative and support positions, diversifying the local job market and providing varied career paths for residents. Moreover, the presence of a major tech player in Boden is likely to attract other businesses and investors, further boosting the local economy and potentially transforming Boden into a new tech hub.
Environmentally, HIVE’s data center sets a new standard in sustainable operations. Their commitment to using green energy sources not only minimizes the environmental footprint of their operations but also serves as a model for other companies in the tech industry. This approach aligns with a growing global emphasis on sustainability and responsible business practices.
This environmentally conscious approach is likely to resonate well with the community and stakeholders, reinforcing HIVE’s image as a forward-thinking and responsible corporate citizen. This alignment with environmental goals not only benefits the planet but also positions HIVE as a leader in sustainable tech development, inspiring similar initiatives in the industry.
Future Outlook and Forward-Looking Information
The acquisition, part of HIVE’s broader strategy, is also aimed at enhancing its mining capabilities and optimizing its equipment deployment. However, as with any forward-looking information, there are inherent risks and uncertainties. These include volatility in the digital currency market, regulatory changes, and the changing nature of the technology sector. But despite these challenges, HIVE remains optimistic.
The acquisition of the data center in Sweden therefore marks a pivotal moment for HIVE Digital Technologies Ltd., reinforcing its position as a key player in the digital technology sector. This strategic move not only strengthens its global presence but also showcases its commitment to sustainable, environmentally responsible practices.
As the company continues to bridge the gap between traditional capital markets and the emergent blockchain sector, its contributions to both the technological and economic industries are likely to be substantial and far-reaching.