HIVE Digital stock soars on BTC mining, revenue milestones

Shares of blockchain and AI infrastructure supplier HIVE Digital Technologies (HIVE) roseate connected Friday, boosted by Bitcoin’s grounds rally and a bid of operational milestones successful its mining business.

HIVE jumped astir 6.5% to $2.47 per share, lifting its marketplace capitalization to astir $530 million. The banal has climbed much than 21% implicit the past month, successful enactment with a broader rebound among Bitcoin (BTC) mining stocks.

HIVE banal has rallied sharply implicit the past month, but is inactive down implicit 20% this year. Source: Google Finance

The latest rally was fueled by news that Hive Digital surpassed 12 exahashes per 2nd (EH/s) of Bitcoin mining hashrate, doubling its output since the commencement of the year. The institution is presently generating implicit $250 cardinal successful annualized gross and expects to scope $400 cardinal erstwhile it scales up to 18 EH/s.

CEO Aydin Kilic said the institution is present mining much than 6 BTC per time with an operating borderline of astir 55%.

HIVE ranks among the 20 largest nationalist Bitcoin holders, with 2,201 BTC reported successful its latest filing.

HIVE Digital Technologies ranks among the top-20 nationalist Bitcoin investors. Source: BitcoinTreasuries.NET

Related: Investors are balking astatine ‘excessive’ Bitcoin miner exec pay: VanEck

Average Bitcoin mining costs rise

The Bitcoin mining manufacture has faced important operational challenges since the latest halving, which chopped miners’ artifact rewards by 50%. This crisp driblet successful revenue, combined with precocious energy, instrumentality and overhead costs, has made profitability much hard to sustain.

Average Bitcoin mining costs compared to BTC prices. Source: MacroMicro

To enactment up of these pressures, immoderate miners person diversified their concern models by expanding into artificial quality (AI) and high-performance computing (HPC) workloads. Early signs bespeak that this pivot toward AI is paying off, notably for Core Scientific, which avoided fiscal illness successful portion by shifting resources to AI operations. Core Scientific has since been acquired by CoreWeave successful a $9 cardinal all-stock deal.

HIVE Digital told Cointelegraph past September that it had repurposed respective GPUs for AI workloads — a determination that importantly accrued its revenue. The institution highlighted Nvidia’s caller H100 chips arsenic a cardinal operator of this growth.

Related: Tether plans to open-source Bitcoin mining OS; CEO says ‘no need’ for 3rd enactment vendors