Hive Digital Technologies (HIVE) continues to transform a pure crypto-play minor into a high-performance IT service provider (HPC).
What started with a fleet of 400 GPU managed by two employees is now an annual turnover of $ 100 million. The company takes advantage of the advanced fleas, including the Nvidia H100 and the next Blackwell GPU, to stimulate this growth.
The co-founder and executive president Frank Holmes and the CEO Aydin Kilic developed the Hive strategy in an exclusive interview with Cointelegraph at the headquarters of the Nasdaq Stock Exchange in New York, where the company sounded the closing bell on Thursday.
The leaders detailed the diversification during Hive in AI. Like the other minors, Hive identified AI as a potentially more profitable use of energy than Bitcoin (BTC) when it is measured in kilowatt hours. This overview has led several cryptographic mining companies to integrate the treatment of AI into their infrastructure, in particular to counter profitability after profitability after the reduction of 2024.
According to Holmes, Hive was the first minor listed on the stock exchange in HPC in 2022. In the second quarter of 2023, HPC revenues appeared in the company’s income statement for the first time, and he has since passed at an annual execution rate of $ 20 million, with an objective of reaching $ 100 million by 2026.
However, putting the HPC capacity scaling must be approached with care, given “jamming for electricity and the land” in progress, “said kilic.
In response, Hive recently acquired a site near the Pearson International Airport in Toronto, Canada, guaranteeing a strategic location capable of scale up to 7.2 MPC power megawatts.
Toronto’s choice was intentional because he places the hive at the heart of a robust Pipeline of AI talents, including links with the IA ecosystem of the University of Toronto and Canada.
Despite the change in capital, Hive maintained positive gross mining margins each quarter, even during the steep slowdown in Bitcoin in 2022. Kilic credits with the tight operational structure of hive and continuous investment in equipment, reaching the global energy efficiency as low as 17.5 joules by Terrahash (J / TH).
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The hive stock still works as a Bitcoin proxy
Despite the hive pivot in higher margin markets such as high performance IT, its stock continues to behave like a Bitcoin proxy, limiting its rise up, according to Kilic and Holmes.
After the company’s closing bell ceremony at Nasdaq, Hive shares displayed a modest gain and bounced 31% in last month. However, the start of the year, the action remains down 27%, a merchant who has approximately $ 2.23 with a market capitalization of around $ 475 million.
Even with this volatility, analysts have largely issued positive coverage on hive, indicating that the stock is undervalued at current levels. In February, HC Wainwright issued a note “Buy” with a price target of $ 10. Recently, Canaccord Genuity reiterated his “Buying” note, awarding a goal of $ 9.
Rosenblatt Securities’ analyst Chris Brendler also sees up, citing the HPC imprint expanding Hive and increasing operations in Paraguay.
As Cintelelelegraph reported, Hive acquired his Bitfarms Paraguay facilities in January for $ 85 million. Kilic later told Cintelegraph that Hive considers Paraguay as a long -term investment, praising low -cost hydroelectricity in the country, geopolitical stability and government support.
Bitcoin mining M & A Activity increasing
Although Hive has extended beyond his original mandate as a Bitcoin minor, he still considers BTC as a long-term strategic asset.
Earlier this month, Hive announced that she had doubled her daily Bitcoin production at more than six BTCs. According to Holmes, this figure should double at 12 BTC by Thanksgiving, representing approximately 3% of the global Bitcoin network.
In relation: Hive doubles on the BTC Hodl strategy in the middle of the dilution of minor actions, the use of debt
In January, Cointelegraph indicated that several minors adopted a Bitcoin cash strategy to capitalize on the planned price assessment, strengthen their balance sheets and hide against monetary risk. This trend emerged alongside a broader wave of consolidation of the industry that started in mid-2010, partly at the origin of the post-launch economy and the pivot to AI.
Since the second quarter of 2024, mergers and acquisitions have increased regularly, according to data from architecture partners.
Among the mining and dotted companies, there were 10 transactions in the first quarter of 2025 worth $ 188 million. During the previous quarter, eight transactions worth 266 million dollars were completed.
The most notable merger was finalized this month, with Coreweave acquiring Core Scientific in an All-Stock agreement worth $ 9 billion. The acquisition occurred for more than a year after Coreweave first expressed its interest in minor Bitcoin, whose board of directors initially rejected the offer as undervalued.
Although Coreweave is initially a crypto minor before moving on to an AI infrastructure provider, his acquisition of Core Scientific does not necessarily mean that she is back in the mining industry.
By announcing the scientific basic acquisition, Coreweave has reported its intention to reuse the minor’s assets for HPC or entirely yield its cryptographic mining activity.
The other mergers and notable acquisitions agreements in the mining industry include the acquisition by digital marathon of the Generate capital exploration sites, the acquisition of Hut 8 of the Power Validus assets, the redemption of Cleanspark from the Griid infrastructure and the bitfarms redemption of Stronfhold Digital Mining.
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