RETRANSMISSION: HIVE's BUZZ HPC Secures Approximately $129 Million at 9.0% Fixed-Rate Financing at 80% Loan-to-Cost to Expand Sovereign AI Infrastructure

Fixed-rate borrowing funds approximately 80% of the cluster cost without issuing common shares for this facility.

Rhea-AI Summary

HIVE Digital Technologies (HIVE) announced approximately $129 million in financing through indirect subsidiary BUZZ Alpha Cloud to expand Canadian sovereign AI infrastructure. The facility carries 9.0% fixed annual interest over three years, with principal and interest amortizing throughout the term and approximately 80% loan-to-cost.

Funding will support a $165 million NVIDIA GB200 GPU cluster for Cohere's three-year fixed $225 million contract, including compute, connectivity and storage. HIVE expects GPU delivery toward the end of Q4 2026. The remaining cluster and associated hardware and software costs are being funded from earlier convertible-bond proceeds. No common shares are issued for this facility. The GPUs and related assets secure the loan; HIVE will own the GPUs outright at maturity without a residual payment. BUZZ Alpha Cloud intends to repay the facility from contract revenue.

7 points · 3 major

PositiveiHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 3 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointApproximately $129 million in financing supports the GPU cluster for Cohere's Canadian sovereign AI deployment. 23% of market cap
• Major pointGPU cloud deals signed this year total $600 million across three contracts. 1.1× market cap
• Major pointEarlier 0% convertible bonds raised $245 million gross, approximately $200 million net after capped calls. 44% of market cap
• Minor pointCohere's three-year fixed $225 million contract includes GPU compute, connectivity and storage revenue.
• Minor point. Forward-looking: it has not happened yet and may not happen.The $165 million cluster comprises 2,303 NVIDIA GB200 GPUs, with delivery expected toward end-Q4 2026.

2 minor points

• Minor pointNo common shares are issued in connection with the new facility.
• Minor point. Forward-looking: it has not happened yet and may not happen.Outright GPU ownership at the loan's end requires no residual payment.

Negative

• Major pointThe facility adds debt at 9.0% fixed annual interest, with principal and interest amortizing over three years.
• Minor pointGPUs and related assets secure the facility, alongside a limited-recourse BUZZ HPC guarantee and equity pledge.
• Minor pointFacility covenants include required debt-service coverage ratios.

Key Figures

Credit facility: Approximately $129 million Fixed interest rate: 9.0% per annum Loan term: Three years +4 more

Credit facility

Approximately $129 million

Facility entered into by BUZZ Alpha Cloud

Fixed interest rate

9.0% per annum

Facility rate

Loan term

Three years

Facility term; principal and interest amortize over the loan’s life

Loan-to-cost

Approximately 80%

Financing toward the GPU cluster purchase

GPU cluster cost

$165 million

NVIDIA GB200 GPU cluster

Cohere contract value

$225 million TCV

Three-year fixed-term contract

GPU count

2,303 NVIDIA GB200 GPUs

Cluster being purchased

Key Terms

loan-to-cost, debt-service coverage ratios, limited recourse guarantee, convertible bonds

4 terms

loan-to-cost financial

"This represents an approximate 80% loan-to-cost"

Loan-to-cost is the percentage of a project’s total development or acquisition cost that is being financed with borrowed money, calculated by dividing the loan amount by the full cost of the project. It matters to investors because it signals how much equity the sponsor has at stake—like how much of a house you own versus what’s mortgaged—and higher ratios mean more leverage, higher potential returns, but also greater risk if costs rise or revenue falls.

debt-service coverage ratios financial

"including required debt-service coverage ratios"

A debt-service coverage ratio (DSCR) measures a borrower’s ability to meet scheduled debt payments by dividing the cash available for debt service during a period by the total debt service due in that period (principal plus interest). Commonly the numerator is defined as operating cash flow, net operating income, or EBITDA, so lenders and contracts may specify different variants; a DSCR above 1.0 means cash available exceeds required payments, while below 1.0 means payments exceed available cash. Useful limits: the precise calculation, time frame, and which cash flow items are included vary by loan agreement or reporting standard, so DSCR values are comparable only when computed the same way.

limited recourse guarantee financial

"supported by a limited recourse guarantee from BUZZ HPC"

A limited recourse guarantee is a legal promise to cover a borrower’s obligation in which the guarantor’s liability is restricted to specified assets, sources of payment, time period, or a maximum amount. Under this structure lenders can claim only the limited pool of collateral or defined recoveries named in the guarantee rather than pursuing the guarantor’s full balance-sheet resources; once those specified sources are exhausted the guarantor has no further obligation. This is commonly used in project and structured finance to ring‑fence risk and make the scope of the guarantor’s exposure predictable.

convertible bonds financial

"proceeds of the 0% interest convertible bonds issued earlier this year"

A convertible bond is a loan a company issues that pays regular interest and can be exchanged for a fixed number of the company’s shares under specified terms. It matters to investors because it combines the steady income and lower downside risk of a bond with the upside potential of owning stock—like holding a ticket that can be cashed for equity if the share price rises—affecting returns, risk, and shareholder dilution.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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This news release constitutes a "designated news release" for the purposes of the Company's amended and restated prospectus supplement dated June 16, 2026 to its short form base shelf prospectus dated October 31, 2025.

San Antonio, Texas--(Newsfile Corp. - October 28, 2026) - HIVE Digital Technologies Ltd. (TSX: HIVE) (NASDAQ: HIVE) (BVC: HIVECO) (the "Company" or "HIVE"), through its wholly owned subsidiary BUZZ High Performance Computing Inc. ("BUZZ HPC"), today announced that BUZZ Alpha Cloud Inc. ("BUZZ Alpha Cloud"), an indirect subsidiary of the Company, has entered into a Loan and Security Agreement with an institutional lender for a single-digit, fixed-rate credit facility of approximately $129 million (the "Facility") (Unless otherwise indicated, all dollar amounts in this release are expressed in US dollars.).

Proceeds from the Facility will be used to buy an advanced sovereign AI GPU cluster and related infrastructure, including NVIDIA GB200 NVL72 systems, to be deployed for the Cohere 3-year fixed-term sovereign AI customer contract announced on June 18, 2026.

Fixed-Rate Capital Anchored to Contracted Demand

The Facility bears a fixed interest rate of 9.0% per annum over a three-year term, with principal and interest amortizing over the life of the loan. It is secured by the GPUs and related assets of BUZZ Alpha Cloud and supported by a limited recourse guarantee from BUZZ HPC and a pledge of BUZZ HPC's equity in BUZZ Alpha Cloud. At the end of the term, HIVE will own the GPUs outright with no residual payment.

BUZZ HPC is not otherwise liable under the Facility, which includes customary terms, conditions and covenants, including required debt-service coverage ratios.

Growth Funded by the Infrastructure It Builds

Held at the project level and secured by the infrastructure it funds, the Facility aligns the obligation with the assets and contracted revenue of the deployment it supports. BUZZ Alpha Cloud intends to repay the Facility from contract revenue over a fixed amortization schedule.

Because the Facility is structured as debt, no common shares of the Company are issued in connection with it.

Sovereign Compute for Canada's AI Future

Canada has a long record of world-changing breakthroughs, and its researchers helped pioneer the science behind modern artificial intelligence. Historically, much of the industrial infrastructure needed to turn that research into products and services at scale has been built outside the country. Canada's federal AI strategy sets a clear direction: invest in Canadian technology sovereignty and keep Canadian data secure under Canadian control. As AI moves from the research lab into everyday use across government, healthcare, finance and industry, organizations increasingly want to know where their data lives, where their models run and where their compute comes from.

The infrastructure funded by the Facility will keep compute within Canadian borders. BUZZ HPC believes capacity like this can help Canadian enterprises, researchers and public institutions build and run advanced AI at home, on terms they control.

A Foundation Nine Years in the Making

Since 2017, HIVE has been building a foundation of renewable power and digital infrastructure that now spans three continents, five languages and nine time zones, with data centres in Canada, Sweden and Paraguay. BUZZ HPC builds on that experience, designing and operating sovereign AI infrastructure from power through cloud so customers can run their own models and applications with their data and compute kept in the jurisdiction they choose.

HIVE and BUZZ HPC believe infrastructure should strengthen the communities around it. That has meant supporting local hockey in Boden, Sweden, and upgrading schools and lighting city streets near HIVE's operations in Paraguay. As an original signatory of Canada's Responsible Data Centre Development Principles, BUZZ HPC puts community-first design at the centre of how it develops infrastructure, guided by one purpose: transforming clean energy into compute to accelerate discovery.

Executive Commentary

Frank Holmes, Executive Chairman, HIVE Digital Technologies:

"We believe sovereignty in the AI era will depend on where compute lives and who controls it. Canada has the research talent, the clean energy and the institutions to help lead that future, and our vision is to build AI infrastructure that will serve humanity. This financing allows BUZZ HPC to put more of that infrastructure to work in Canada while keeping our capital structure disciplined, which we believe is how lasting value is built."

Aydin Kilic, President & CEO, HIVE Digital Technologies:

"We have signed $600 million of TCV for GPU cloud deals this year, across 3 GPU off-take contracts. Notably, the $129 million financing is applied towards the purchase of a $165 million cluster of NVIDIA GB200 GPUs, which the Company announced are being contracted on a 3-year fixed $225 million TCV with Cohere, which includes GPU compute and additional revenue attributed to connectivity and storage0F¹. This represents an approximate 80% loan-to-cost, at a fixed interest rate of 9.0%. The equity contribution from the Company towards the balance of the GPU cluster and associated hardware and software cost is being funded from the proceeds of the 0% interest convertible bonds issued earlier this year."

The Company notes it has issued 0% interest convertible bonds for total gross proceeds of $245 million, with net proceeds of approximately $200 million after capped calls.

The Company notes that it believes the $165 million price for 2,303 NVIDIA GB200 GPUs reflects a very attractive price for NVIDIA GPUs in today's market, as NVIDIA hardware has risen in price substantially over the last 6 months. Securing fixed-interest debt, in a market where many peers have borrowed on variable rates, puts HIVE in a strong position to have predictable contracted cash flow in the 3 years following the deployment of these GPUs.

Currently, delivery of these GB200 GPUs is expected to occur towards the end of Q4 2026.

About HIVE Digital Technologies Ltd.

HIVE Digital Technologies Ltd. is a global leader in sustainable digital infrastructure, building and operating renewable energy-powered data centres. Through its wholly owned subsidiary, BUZZ High Performance Computing Inc., HIVE delivers sovereign AI cloud infrastructure and enterprise GPU computing services powered by next-generation accelerated computing. HIVE's dual-engine strategy combines long-life digital infrastructure assets with renewable energy to generate diversified, long-term cash flows across AI infrastructure and digital asset mining.

For more information, visit hivedigitaltech.com, or connect with us on:

X: https://x.com/HIVEDigitalTech
YouTube: https://www.youtube.com/@HIVEDigitalTech
Instagram: https://www.instagram.com/hivedigitaltechnologies/
LinkedIn: https://linkedin.com/company/hiveblockchain

On Behalf of HIVE Digital Technologies Ltd.

"Frank Holmes"
Executive Chairman

For further information, please contact:

Nathan Fast, Director of Marketing and Branding
Frank Holmes, Executive Chairman
Aydin Kilic, President & CEO

Tel: (604) 664-1078

Neither the TSX, Nasdaq, nor any other securities exchange or regulatory authority accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian and United States securities legislation and regulations that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes but is not limited to: the anticipated use of proceeds from the Facility; the purchase, delivery, installation, commissioning and deployment in Canada of the GPU cluster and related infrastructure, and the timing thereof; the performance of the related customer contract and the revenue expected to be generated under it; BUZZ Alpha Cloud's ability to service and repay the Facility from contract revenue; BUZZ Alpha Cloud's ability to comply with the covenants under the Facility, including required debt-service coverage ratios; the anticipated benefits of the Facility's structure, including the limited recourse nature of BUZZ HPC's guarantee; the Company's approach to funding future GPU deployments; anticipated growth in demand for sovereign AI infrastructure; the Company's vision and its ability to scale its AI infrastructure business responsibly; BUZZ HPC's ability to convert its contracted and pipeline demand into recognized revenue; business goals and objectives of the Company; and other forward-looking information concerning the intentions, plans and future actions of the Company.

Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: delays in the manufacture, delivery, installation or commissioning of GPUs and related infrastructure, including supply chain constraints affecting NVIDIA systems; cost overruns in the deployment of the GPU cluster; the customer's performance of its obligations under the related contract, including counterparty credit risk, and the risk of termination, amendment or non-renewal of that contract; the Company's dependence on significant customers for its HPC operations; the risk that revenue generated under the related contract is insufficient to service the Facility or to satisfy its covenants, including required debt-service coverage ratios; the risk that a default under the Facility results in the lender enforcing its security over the GPUs, related assets and BUZZ HPC's pledged equity in BUZZ Alpha Cloud; the cost of the Facility relative to other sources of capital; the risk that the useful economic life or resale value of GPU hardware declines faster than anticipated due to technological change; the risk that demand for sovereign AI infrastructure does not grow as anticipated; the Company's ability to secure financing for future deployments on acceptable terms, or at all; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; the speculative and competitive nature of the technology sector, including competitive pricing pressure for GPU compute; the regulatory environment for AI infrastructure and cryptocurrency in Canada, the United States and the countries where the Company's facilities are located; the ability to maintain reliable and economical sources of power to operate its facilities; fluctuations in power and operating costs; the impact of energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which the Company operates; the construction or operation of facilities may not occur as currently planned, or at all; revenue may not increase as currently anticipated, or at all; the volatility of the digital currency market; the Company's ability to successfully earn digital currency; a material decline in digital currency prices may have a significant negative impact on the Company's operations; reliance on key personnel; network security risks; and other related risks as more fully set out in the Company's disclosure documents under the Company's filings at www.sec.gov/EDGAR and www.sedarplus.ca.

The forward-looking information in this news release reflects the Company's current expectations, assumptions, and/or beliefs based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about: the timely delivery and deployment of the GPU cluster; the continued performance of the related customer contract; BUZZ Alpha Cloud's ability to meet its obligations and covenants under the Facility; continued demand for sovereign AI infrastructure; the Company's objectives, goals or future plans; the timing thereof; and related matters. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance, and accordingly, undue reliance should not be put on such information due to its inherent uncertainty. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether because of new information, future events or otherwise, other than as required by law.

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¹ The TCV of $220 previously disclosed for the Cohere deal only included GPU compute revenue.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/321376

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are the terms of HIVE's approximately $129 million AI infrastructure financing?

The facility bears 9.0% fixed annual interest over a three-year term, with principal and interest amortizing over its life. It represents approximately 80% loan-to-cost. BUZZ Alpha Cloud intends to repay the borrowing from contract revenue, and no common shares are issued in connection with the facility.

What will HIVE's new financing buy for the Cohere contract?

The financing supports a $165 million cluster of 2,303 NVIDIA GB200 GPUs for Cohere's three-year fixed $225 million contract. The contract includes GPU compute and additional connectivity and storage revenue. HIVE expects GPU delivery toward the end of Q4 2026.

What guarantees and collateral support HIVE's BUZZ Alpha Cloud loan?

The loan is secured by BUZZ Alpha Cloud's GPUs and related assets, supported by a limited-recourse guarantee from BUZZ HPC and a pledge of BUZZ HPC's equity in BUZZ Alpha Cloud. BUZZ HPC is not otherwise liable under the facility. Covenants include required debt-service coverage ratios.