HIVE Digital Technologies Ltd. Fair Value Disclosure
27. Fair Value Measurements
The fair values of investments were measured using the NAV or a market approach. The investments measured at fair value are classified into one of the three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values, with the designation based upon the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are:
Level 1 Inputs: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2 Inputs: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices. At March 31, 2026 the Company reclassified digital currencies from Level 2 fair value measurement to Level 1 to reflect the market prices available for digital assets. The comparatives have been reclassified to conform with the current presentation.
Level 3 Inputs: Unobservable inputs for the asset or liability (Unobservable inputs reflect management's assumptions on how market participants would price the asset or liability based on the information available).
Valuation of Assets that use Level 2 Inputs ("Level 2 Assets"). The fair value of Level 2 Assets would use the quoted price from the exchanges which the Company most frequently uses, with no adjustment.
At the year end the Company classified its financial assets into the following levels:
| As at March 31, 2026 | As at March 31, 2025 | |||||||||||||||||
| Assets | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||
| Cash | $ | - | $ | 23,113 | $ | - | $ | - | $ | 23,375 | $ | |||||||
| (i) Digital currencies (Note 7) | 10,822 | - | - | 181,146 | - | - | ||||||||||||
| (ii) Investments (Note 5) | 6,624 | - | 3,117 | 21,016 | - | 3,120 | ||||||||||||
| Derivative asset (Note 7) | - | 606 | - | - | 1,300 | - | ||||||||||||
| $ | 17,446 | $ | 23,719 | $ | 3,117 | $ | 202,162 | $ | 24,675 | $ | 3,120 | |||||||
| Liabilities | ||||||||||||||||||
| Warrant liability | $ | - | $ | - | $ | 413 | $ | - | $ | - | $ | 760 | ||||||
| $ | - | $ | - | $ | 413 | $ | - | $ | - | $ | 760 | |||||||
(i) The fair value of the Company's digital assets are determined by the price at 12:00 AM CET per coinbase.com.
(ii) The Company's investments classified as level 3 fair value measurements consist of investments in preferred stock, convertible notes and common stock. For the Company's common stock investments:
- Various Black Scholes models were utilized; and
- A prior transaction approach was used for others; some adjusted.
A verified prior transaction is initially given 100% weighting in a fair value conclusion (if completed at arm's length), but subsequently such weighting is adjusted based on the merits of newly observed data. As a result, in the absence of disconfirming data, an unadjusted prior transaction price may not be considered "stale" for months or, in some cases, years.
Level 3 Continuity
The following is a reconciliation of Level 3 assets and liabilities:
| Level 3 Continuity | Fair value at March 31, 2026 |
Fair value at March 31, 2025 |
||||
| Investments | ||||||
| Balance, at April 1 | $ | 3,120 | $ | 1,618 | ||
| Additions | 725 | - | ||||
| Transfer to Level 1 | (725 | ) | (133 | ) | ||
| Foreign exchange | 6 | (60 | ) | |||
| Change in fair value | (9 | ) | 1,695 | |||
| Balance, at March 31 | $ | 3,117 | $ | 3,120 | ||
| Warrant liability | ||||||
| Balance, at April 1 | $ | 760 | $ | - | ||
| Additions - reclassification from equity | - | 5,112 | ||||
| Change in fair value | (347 | ) | (4,352 | ) | ||
| Balance, at March 31 | $ | 413 | $ | 760 |
In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also measures certain assets and liabilities at fair value on a non-recurring basis. The Company’s long-lived assets, including intangible assets, operating lease right-of-use assets, and property, plant and equipment, are measured at fair value when there is an indication of impairment and the carrying amount exceeds the asset’s projected undiscounted cash flows.
These assets are measured at fair value only when an impairment loss is recognized. The carrying amounts of cash, amounts receivable, net, other receivables, and accounts payable and accrued expenses are a reasonable approximation of their fair value due to their short-term maturity or they are valued using the income approach valuation technique.
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About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.