Hive Digital accelerates AI pivot with $100M HPC expansion — Cointelegraph exclusive

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Hive Digital Technologies (HIVE) is continuing its translation from a pure-play crypto miner to a high-performance computing (HPC) services provider.

What began with a fleet of 400 GPUs managed by 2 employees is present scaling toward a $100 cardinal yearly revenue. The institution is leveraging precocious AI chips, including Nvidia’s H100s and the forthcoming Blackwell GPUs, to thrust this growth.

Co-founder and Executive Chairman Frank Holmes and CEO Aydin Kilic elaborated connected Hive’s strategy successful an exclusive interrogation with Cointelegraph astatine the Nasdaq Stock Exchange office successful New York City, wherever the institution rang the closing doorbell connected Thursday.

The executives elaborate Hive’s ongoing diversification into AI. Like different miners, Hive identified AI arsenic a perchance much profitable usage of vigor than Bitcoin (BTC) erstwhile measured successful kilowatt-hours. This penetration has led respective crypto mining companies to incorporated AI processing into their infrastructure, particularly to antagonistic declining profitability pursuing the 2024 halving.

According to Holmes, Hive was the archetypal publically traded miner to pivot into HPC successful 2022. By the 2nd 4th of 2023, HPC gross appeared connected the company’s income connection for the archetypal time, and it has since grown to a $20 cardinal yearly tally rate, with a extremity of reaching $100 cardinal by 2026.

Still, scaling HPC capableness indispensable beryllium approached carefully, fixed the ongoing “scramble for energy and land,” said Kilic.

In response, Hive precocious acquired a tract adjacent Pearson International Airport successful Toronto, Canada, securing a strategical determination susceptible of scaling up to 7.2 megawatts of HPC power.

The prime of Toronto was intentional arsenic it places Hive astatine the bosom of a robust pipeline of AI talent, including connections to the University of Toronto and Canada’s AI ecosystem.

Despite the superior shift, Hive has maintained affirmative gross mining margins each quarter, adjacent during Bitcoin’s steep downturn successful 2022. Kilic credits this to Hive’s choky operational operation and continued concern successful hardware, achieving planetary vigor ratio arsenic debased arsenic 17.5 joules per terahash (J/TH).

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Hive banal is inactive performing arsenic a Bitcoin proxy

Despite Hive’s pivot into higher-margin markets similar high-performance computing, its banal continues to behave similar a Bitcoin proxy, limiting its valuation upside, according to Kilic and Holmes.

Following the company’s closing doorbell ceremonial astatine Nasdaq, Hive shares posted a humble summation and person rebounded 31% implicit the past month. However, year-to-date, the banal remains down 27%, trading astir $2.23 with a marketplace capitalization of astir $475 million.

Even with this volatility, analysts person mostly issued affirmative sum connected Hive, signaling that the banal is undervalued astatine existent levels. In February, H.C. Wainwright issued a “Buy” standing with a $10 terms target. Recently, Canaccord Genuity reiterated its “Buy” rating, assigning a $9 target.

Rosenblatt Securities expert Chris Brendler besides sees upside, citing Hive’s expanding HPC footprint and increasing operations successful Paraguay.

As Cointelegraph reported, Hive acquired its Paraguay installation from Bitfarms successful January for $85 million. Kilic aboriginal told Cointelegraph that Hive sees Paraguay arsenic a semipermanent investment, touting the country’s low-cost hydro power, geopolitical stableness and authorities support.

Bitcoin mining M&A enactment connected the rise

Although Hive has expanded beyond its archetypal mandate arsenic a Bitcoin miner, it inactive views BTC arsenic a halfway semipermanent strategical asset.

Earlier this month, Hive announced it had doubled its regular Bitcoin production to implicit six BTC. According to Holmes, that fig is expected to treble again to 12 BTC by Thanksgiving, representing astir 3% of the planetary Bitcoin network.

In January, Cointelegraph reported that respective miners were adopting a Bitcoin treasury strategy to capitalize connected anticipated terms appreciation, fortify their equilibrium sheets and hedge against currency risk. This inclination emerged alongside a broader question of manufacture consolidation that began successful mid-2024, driven successful portion by post-halving economics and the pivot toward AI.

Since the 2nd 4th of 2024, M&A transactions person accrued steadily, according to information from Architecture Partners.

Among mining and staking firms, determination were 10 transactions successful the archetypal 4th of 2025 valued astatine $188 million. In the 4th earlier that, 8 transactions valued astatine $266 cardinal were completed.

The astir notable merger was finalized this month, with CoreWeave acquiring Core Scientific successful an all-stock woody valued astatine $9 billion. The acquisition came much than a twelvemonth aft CoreWeave archetypal expressed involvement successful the Bitcoin miner, whose committee initially rejected the connection arsenic undervalued.

Although CoreWeave was initially a crypto miner earlier transitioning to an AI infrastructure provider, its acquisition of Core Scientific doesn’t needfully mean it’s returning to the mining industry.

In announcing the Core Scientific acquisition, CoreWeave signaled its volition to repurpose the miner’s assets for HPC oregon divest its crypto mining concern entirely.

Other notable M&A deals successful the mining manufacture see Marathon Digital’s acquisition of Generate Capital mining sites, Hut 8’s acquisition of Validus Power assets, CleanSpark’s takeover of GRIID Infrastructure and Bitfarms’ buyout of Stronghold Digital Mining.

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