HIVE Digital Technologies (HIVE) risk factors, FY2026 10-K

Risks Related to our Business and Operations

1. 01Energy costs in the regions where we operate may increase
2. 02Prolonged power outages or disruptions in the power supply may adversely affect our business, operations and financial condition
3. 03Our development and growth of new projects are subject to risks that could cause delays or increased costs and could adversely affect our business
4. 04Server malfunctions or failures could harm our business
5. 05Risk of physical security breach or theft
6. 06Risk of physical threats to management
7. 07We may be unable to obtain adequate insurance coverage
8. 08Hazards associated with high-voltage electricity transmission and industrial operations may result in suspension of our operations or the imposition of civil or criminal penalties
9. 09Future Profits/Losses and Production Revenues/Expenses
10. 10We may incur substantial costs to maintain and upgrade our hardware over time and to grow our business
11. 11Our reliance on third-party suppliers could adversely affect our operations
12. 12Increasing scrutiny of our environmental, social and governance ("ESG") practices and the impacts of climate change could increase our operating costs, divert management attention from our strategic goals, and adversely affect our business
13. 13Cybersecurity threats and hacking attacks could compromise our systems and data, resulting in material adverse effects on our business, financial condition, and results of operations
14. 14Our business is highly dependent on a small number of equipment suppliers. If we are unable to procure the required equipment to maintain and grow our business, our expansion plans, business, financial performance, financial condition and results of operations

Risks Related to ASIC Compute

1. 15Regulatory changes or actions may alter the nature of an investment in the Company or restrict the use of cryptocurrencies in a manner that adversely affects the Company's operations
2. 16The value of cryptocurrencies may be subject to volatility and momentum pricing risk
3. 17To the extent that cryptocurrency exchanges or other trading venues are involved in fraud or experience security failures or other operational issues, or to the extent they maintain inadequate reserves against their extensions of credit, such events or actions could result in a reduction in cryptocurrency prices
4. 18Our reliance on third-party mining pool service providers may have a negative impact on our business
5. 19Possibility of Less Frequent or Cessation of Monetization of Cryptocurrencies
6. 20Cryptocurrency Network Difficulty and Impact of Increased Global Computing Power
7. 21Banks may not provide banking services, or may cut off banking services, to businesses that provide cryptocurrency-related services or that accept cryptocurrencies as payment
8. 22Crises may motivate large-scale purchases of cryptocurrencies which could increase the price of cryptocurrencies rapidly. This may increase the likelihood of a subsequent price decrease as crisis-driven purchasing behavior wanes, adversely affecting the value of the Company's cryptocurrency inventory
9. 23Advances in quantum computing may, over time, compromise the cryptographic algorithms that secure blockchain networks and digital assets, including Bitcoin
10. 24In addition, uncertainty regarding the timing and feasibility of quantum computing breakthroughs, as well as public perception of such risks, may itself adversely affect market confidence in cryptocurrencies, independent of any actual technological compromise
11. 25The further development and acceptance of the cryptographic and algorithmic protocols governing the issuance of and transactions in cryptocurrencies is subject to a variety of factors that are difficult to evaluate
12. 26The Company's operations, investment strategies, and profitability may be adversely affected by competition from other methods of investing in cryptocurrencies
13. 27The Company's Bitcoin may be subject to loss, theft or restriction on access
14. 28If the award of Bitcoin for solving blocks and transaction fees are not sufficiently high, miners may not have an adequate incentive to continue mining and may cease their mining operations
15. 29The 2028 Bitcoin Halving may adversely affect the Company's profitability
16. 30Forks in the Bitcoin network may occur in the future, which may affect the value of Bitcoin held by us
17. 31Bitcoin is a form of technology which may become redundant or obsolete in the future

Risks Related to HPC Businesses

1. 32Our ability to identify suitable locations and regulatory constraints could adversely impact our development pipeline, expansion strategy, and results of operations
2. 33The HPC market is highly competitive, and we face established competitors who may have more resources
3. 34Our HPC business may not be profitable
4. 35The Teaming Agreement with Bell Canada Inc. is a framework for collaboration and business development opportunities and does not guarantee future customer volumes, revenues or deployments
5. 36Our expansion into HPC may divert resources from our core Bitcoin mining operations, limit our power capacity for mining, and introduce operational complexity
6. 37The GPU compute market is rapidly evolving and volatile. If we are unable to adapt to changing market conditions, our business, operations and financial condition may be adversely affected
7. 38Our expansion into AI and HPC infrastructure is highly capital intensive, and there can be no assurance we will be able to obtain financing on favorable terms, or at all
8. 39The regulatory landscape surrounding the HPC and AI industries is rapidly evolving and may limit our ability to grow our HPC business
9. 40Future Capital Needs, Uncertainty of Additional Financing and Dilution
10. 41Additional Funding Requirements and Dilution
11. 42Loss of key employees & contractors, or an inability to attract and retain personnel, may harm our business
12. 43Global Financial Conditions
13. 44Liquid Market for Securities
14. 45We do not intend to pay dividends in the foreseeable future
15. 46The market price for our common shares may be volatile and subject to wide fluctuations, which could have a negative impact on our shareholders
16. 47Common shares issuable upon exchange of the Exchangeable Notes may dilute the ownership interest of our shareholders or may adversely affect the market price of our common shares
17. 48We may be unable to raise the funds necessary to repurchase the Exchangeable Notes for cash following a fundamental change or to pay any cash amounts due upon maturity or conversion of the Exchangeable Notes
18. 49The fundamental change repurchase feature of the Notes may delay or prevent an otherwise beneficial takeover attempt of the Company
19. 50The capped call transactions may affect the trading price of the Exchangeable Notes and the market price of our common shares
20. 51We are subject to counterparty risk with respect to the capped call transactions
21. 52We face risks associated with our current indebtedness, and our failure to service debt or remain in compliance with certain covenants may have a material adverse effect on our business, financial condition, and results of operations

Risks Related to Certain Regulatory Compliance and Other Legal Matters

1. 53Energy Tariffs in Paraguay
2. 54We are involved in legal proceedings from time to time, which could adversely affect us
3. 55Regulatory changes reclassifying Bitcoin as a security could lead to the Company being classified as an "investment company" under the Investment Company Act of 1940 (the "1940 Act") and could adversely affect the market price of Bitcoin and the market price of our listed securities
4. 56The ability of shareholders to bring actions or enforce judgments against us or our directors and executive officers may be limited
5. 57Imposition of U.S. Tariffs
6. 58We are subject to extensive environmental regulation, and failure to comply with environmental laws or changes in such laws could result in significant liabilities and have a material adverse effect on our business
7. 59The regulatory and legislative developments related to climate change may materially adversely affect our brand, reputation, business, results of operations and financial position
8. 60The rapidly evolving and uncertain regulatory landscape for cryptocurrencies exposes us to legal risks, compliance costs, and potential business disruptions

Risks Related to Taxation

1. 61Tax Consequences Generally
2. 62Passive Foreign Investment Company Regulations Could Affect U.S. Shareholders
3. 63Risk of potential adverse U.S. federal income tax consequences to 10% or greater United States shareholders
4. 64An adverse tax decision in respect of our Swedish subsidiaries may have an adverse on our business, operations and financial condition
5. 65If the Company is unsuccessful in its appeals, the full amount could be payable including other items such as penalties and interest that may continue to accrue, which would likely have an adverse affect in our business, operations and financial condition
6. 66Hive Atlantic Datacentres Ltd. has filed for and claimed approximately C$40.4 million in consumption tax credits, which to date remain unpaid