Hive Digital Technologies (HIVE) is continuing its transformation from a pure-play crypto miner to a high-performance computing (HPC) services provider. What began with a fleet of 400 GPUs managed by two employees is now scaling toward a $100 million annual revenue. The company is leveraging advanced AI chips, including Nvidia’s H100s and the forthcoming Blackwell GPUs, to drive this growth. The Hive’s executives explained the company ongoing diversification into AI. Like other miners, Hive identified AI as a potentially more profitable use of energy than Bitcoin when measured in kilowatt-hours. This insight has led several crypto mining companies to incorporate AI processing into their infrastructure, especially to counter declining profitability following the 2024 halving. Hive was the first publicly traded miner to pivot into HPC in 2022. By the second quarter of 2023, HPC revenue appeared on the company’s income statement for the first time, and it has since grown to a $20 million annual run rate, with a goal of reaching $100 million by 2026. Scaling HPC capacity must be approached carefully, given the ongoing need for electricity and land. Hive recently acquired a site near Pearson International Airport in Toronto, Canada, securing a strategic location capable of scaling up to 7.2 megawatts of HPC power. The choice of Toronto was intentional as it places Hive at the heart of a place with AI talent, including connections to the University of Toronto and Canada’s AI ecosystem. Despite the capital shift, Hive has maintained positive gross mining margins every quarter, even during Bitcoin’s steep downturn in 2022. Its stock continues to behave like a Bitcoin proxy.

Hive shares posted a modest gain and have rebounded 31% over the past month. The analysts have largely issued positive coverage on Hive, signaling that the stock is undervalued at the current levels. Rosenblatt Securities analyst Chris Brendler is citing Hive’s expanding HPC footprint and growing operations in Paraguay. Hive acquired its Paraguay facility from Bitfarms in January 2025 for $85 million. Hive sees Paraguay as a long-term investment, mentioning the country’s low-cost hydro power, geopolitical stability and government support. Although Hive has expanded beyond its original mandate as a Bitcoin miner, it still views BTC as a core long-term strategic asset. The company announced that it had doubled its daily Bitcoin production to over six BTC. Several miners were adopting a Bitcoin treasury strategy to capitalize on anticipated price appreciation, strengthen their balance sheets and hedge against currency risk. This trend emerged with a broader wave of industry consolidations that began in mid-2024, driven in part by post-halving economics and the pivot toward AI. The most notable merger was completed this month, with CoreWeave acquiring Core Scientific in an all-stock deal valued at $9 billion. The acquisition came more than a year after CoreWeave first expressed interest in the Bitcoin miner, whose board initially rejected the offer as undervalued. Although CoreWeave was initially a crypto miner before transitioning to an AI infrastructure provider, its acquisition of Core Scientific doesn’t necessarily mean it’s returning to the mining industry. In announcing the Core Scientific acquisition, CoreWeave signaled its intention to repurpose the miner’s assets for HPC for diversification of its crypto mining business entirely.