Hive Digital Technologies (Hive) continues its transformation from a purely-play crypto miner to a high-performance computing (HPC) service provider.
Starting with a 400 GPU -operated armade managed by two employees is now scaling towards a $ 100 million annual income. The company uses advanced AI chips, including Nvidia’s H100 and the upcoming Blackwell GPUs, to encourage this growth.
Co-founder and executive chairman Frank Holmes and CEO Aydin Kilic explained Hive’s approach to an exclusive interview with Cointelegraph at the NasdaQ stock office in New York City, where the company boarded the closure of the bell on Thursday.
Executives detailed Hive’s continued change sa ai. Like other miners, Hive identified AI as a potential more profitable use of energy than Bitcoin (Btc) when measured in kilowatt-hour. This view has led to some crypto mining companies to include AI processing in their infrastructure, especially to counter the decline in profitability following 2024 division.
According to Holmes, Hive was the first to buy the miner to publicly to the HPC in 2022. In the second quarter of 2023, the HPC revenue emerged in the company’s income announcement in the first time, and since it grew up with a $ 20 million annual run rate, with the aim of reached $ 100 million by 2026.
However, the HPC capacity scale should be approached carefully, given the ongoing “scramble for electricity and land,” Kilic said.
In response, Hive recently acquired a site near Pearson International Airport in Toronto, Canada, which obtained a strategic location capable of scaling up to 7.2 megawatts of HPC power.
The choice of Toronto is intentionally because it places the nest in the middle of a solid AI talent pipeline, including connections to the University of Toronto and the Ai Ecosystem of Canada.
Despite the capital shift, Hive maintains a positive gross margin of mining every quarter, even during Bitcoin’s steep collapse in 2022. Kilic recognizes this with the tight operation structure of Hive and ongoing hardware investment, achieving the efficiency of global energy of less than 17.5 joules per tehash (J/th).
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Hive stock still plays as a bitcoin proxy
Despite Hive’s pivot in higher margins markets such as high-performance computing, its stock continues to act like a bitcoin proxy, limiting its appreciation, according to Kilic and Holmes.
Following the closing of the company’s bell ceremony in Nasdaq, Hive’s shares posted a moderate gain and rebuked 31% last month. However, year-to-date, the stock remains 27%, trading around $ 2.23 with a market capitalization of approximately $ 475 million.
Even with this volatility, analysts have further released a positive Hive coverage, which has signed that the stock is measured at current levels. In February, HC Wainwright released a “buy” rating with a price target of $ 10. Recently, Canaccord Genuity reiterated the “Buy” rating, which assigns the target of $ 9.
Rosenblatt Securities’ analyst also sees Chris Brendler, citing HPC’s expansion of HPC footsteps and growing operations in Paraguay.
Number Cointelegraph reportedHive got the Paraguay facility from Bitfarms in January for $ 85 million. Kilic later told Cointelegraph that Hive sees Paraguay A long -term investmentTouting the country’s low amounts of hydro power, geopolitical stability and government support.
The Bitcoin M & A mining activity on increasing
Although Hive has expanded beyond its original mandate as a Bitcoin murder, it still views BTC as a major long-term strategic property.
Earlier this month, Hive announced that it had Doubled -day -to -day -making Bitcoin to more than six BTCs. According to Holmes, that figure is expected to double again at 12 BTC by Thanksgiving, representing nearly 3% of the global Bitcoin network.
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In January, Cointelegraph reported that many miners were Adopting a Bitcoin Treasury approach To capitalize on the expected price appreciation, strengthen their sheets of balance and fence against money risk. This trend appeared next to a wider wave of industry integration that began in mid-2024, driven in part by post-halving economics and the pivot towards AI.
Since the second quarter of 2024, M&A transactions have increased constantly, according to data from architectural partners.
Among mining and staking companies, there are 10 transactions in the first quarter of 2025 worth $ 188 million. In the quarter before that, eight transactions worth $ 266 million were completed.
The most recognizable integration is that -finalize this month, along with Getting Coreweave Core Scientific in an all-stock deal worth $ 9 billion. The Acquisition came more than a year after the first expressed interest in the Bitcoin Miner, whose board first declined the offer as undervalued.
Though Coreweave is first in a crypto miner Before moving to an AI infrastructure provider, taking it a basic scientific does not mean it returns to the mining industry.
In announcing the main scientific acquisition, the coreweave signed its desire to reinstate the miners’ property for the HPC or strongly the crypto mining business.
Other well -known M&A deals in the mining industry are included Marathon Digital Getting Capital Mining Sites, The hut 8 of Validus Power Assets, The acquisition of the cleanspark of the Griid infrastructure and The purchase of bitfarms of digital mining evidence.
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