Hive Digital Technologies Accelerates AI Pivot with $100M HPC Expansion

Hive Digital Technologies (HIVE) continues to transform from a pure encoding to high -performance computing service provider (HPC).

What has started with a fleet of 400 units of graphics processed by two employees now is heading towards annual revenues of $ 100 million. The company takes advantage of advanced artificial intelligence chips, including H100s in NVIDIA and the upcoming GPUS Blackwele, to push this growth.

Participant founder, CEO Frank Holmes and CEO of Aydin Kilic clarified HIVE in an exclusive interview with CointeleGraph at the Nasdaq Stock Exchange headquarters in New York City, where the company rang the bell on Thursday.

Executive officials detailed HIVE’s continuous diversification to artificial intelligence. Like other mines, HIVE selects artificial intelligence as a more profitable use of Bitcoin (BTC) when measured in an hour. This insight has led many encryption mining companies to integrate artificial intelligence into its infrastructure, especially to counter the profitability after 2024.

According to Hims, HIVE was the first mine to be circulated publicly at the HPC axis in 2022. By the second quarter of 2023, HPC revenues appeared in the company’s income statement for the first time, and since then it has grown to an annual rate of $ 20 million, with the aim of reaching $ 100 million by 2026.

However, the HPC capacity should be handled carefully, given the “continuous stampede of electricity and the land,” said Kilic.

In response, HIVE recently acquired a site near the Person International Airport in Toronto, Canada, where it got a strategic location capable of expanding up to 7.2 MW of HPC Power.

The choice of Toronto was intended because it places the cell in the heart of a strong pipeline of artificial intelligence talents, including communications at the University of Toronto and the ecological system in AI in Canada.

Despite the transformation of capital, HIVE maintained the positive total mining margins every quarter, even during the acute stagnation in Bitcoin in 2022. This is due to the narrow HIVE structure and its continuous investment in the devices, and achieving global energy efficiency of up to 17.5 July per tehsh (J/Th).

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The cell shares are still performing the Bitcoin agent

Despite the HIVE axis in the higher margin markets such as high -performance computing, its store continues to act like a bitcoin agent, which limits the upscale evaluation, according to Kilic and Holmes.

In the wake of the company’s closing ceremony on the Nasdaq Stock Exchange, HIVE shares recorded a modest gain and 31 % bounced over the past month. However, from year to date, the stock still decreases by 27 %, trading about 2.23 dollars with the market value of about $ 475 million.

Even with this volatility, analysts have issued a largely positive coverage on the cell, indicating that the shares are less than their value at the current levels. In February, HC Wainwright has released a “purchase” rating with the price goal of $ 10. Recently, the Canaccord Genuity has repeated its “purchase” classification and set the goal of $ 9.

Chris Brendler, a Rosenblatt Securities analyst, sees upside down, citing the HPC imprint in HIVE and its growing processes in Paraguay.

As CointeleGRAph said, HIVE acquired the Paraguay facility from BitFarms in January for $ 85 million. Kilic later told Cointelegraph that HIVE sees Paraguay as a long -term investment, as it irrigates low -cost water power in the country, geopolitical stability and government support.

Bitcoin mining activity in high

Although Hive has expanded beyond its original mandate as Bitcoin mines, it still is BTC as a long -term strategic origin.

Earlier this month, HIVE announced that it had doubled the daily Bitcoin production to more than six BTC. According to Holmes, this number is expected to double again to 12 BTC by Thanksgiving, and it represents approximately 3 % of the World Bitcoin network.

Related to: HIVE doubles on the BTC Hodl strategy amid mineral dilution, debt adoption

In January, Cointelegraph reported that many miners were adopting a strategy for the Bitcoin Ministry of Treasury to benefit from the expected prices, and to enhance their public budgets and hedging against currency risks. This trend appeared along with a wider wave of unification of the industry that started in mid -2014, partially driven by the economy after the half and the axis towards artificial intelligence.

Since the second quarter of 2024, M&A transactions have increased steadily, according to data from architecture partners.

Among the mining companies and tricks, there were 10 transactions in the first quarter of 2025 with a value of $ 188 million. In the quarter before that, eight transactions of $ 266 million have been completed.

The most prominent integration process has been completed this month, as Coreave got Core Scientific in the All-Stock deal worth $ 9 billion. The acquisition was more than a year after Coreweave expressed for the first time its interest in the Bitcoin mines, which the Board of Directors initially refused to be denounced with less than its value.

Although Coreave was initially the encryption mines before moving to Amnesty International’s infrastructure provider, its acquisition of the basic scientific does not necessarily mean that it belongs to the mining industry.

By announcing the basic scientific acquisition, Coreave indicated its intention to re -display the origins of the HPC mining factor or strip the fully encrypt mining work.

Other prominent integration and purchasing deals in the mining industry include acquisition of Maathon Digital to generate capital mining sites, HUT 8 acquisition of Powerus Power assets, and grab the GRIID and BitFarms infrastructure to subscribe to disabled digital mining.

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