TLDR
- HIVE Digital Technologies plans to raise $75M through 0% exchangeable senior notes due 2031, with an option for an extra $15M.
- Proceeds will fund GPU purchases and data center expansion as HIVE scales its AI and high-performance computing business.
- HIVE stock fell 11.5% on Thursday following the announcement.
- In its most recent quarter, HIVE reported $93.1M in revenue, up 219% year-over-year, but posted a net loss of $91.3M.
- HIVE received conditional approval to list on the Toronto Stock Exchange, with trading expected later this month.
HIVE Digital Technologies announced plans Thursday to raise $75 million through a private offering of zero-interest exchangeable senior notes due 2031. The notes will be offered to qualified institutional buyers, with an option to bring the total to $90 million.
HIVE Digital Technologies Ltd., HIVE
The stock dropped 11.5% on the news. The CoinShares Bitcoin Mining ETF (WGMI), where HIVE is the seventh-largest holding at 4.89%, slipped 1.5% on the same day.
The notes carry no regular interest and will not accrete. They are unsecured obligations, fully guaranteed by HIVE, and can be settled in cash, common stock, or a combination of both. Final terms, including the exchange rate, will be set at pricing.
HIVE also said it plans to enter capped call transactions with financial counterparties. These are designed to limit potential dilution from future note conversions.
Proceeds will flow through HIVE’s subsidiaries and go toward capital expenditures. The company specifically flagged GPU purchases and data center development as primary uses of the funds.
Pivoting Beyond Mining
HIVE was one of the first Bitcoin miners to move into high-performance computing, making that shift back in 2022. The strategy is starting to show up in the numbers.
In its third quarter, the company posted revenue of $93.1 million, up 219% year-over-year. However, it recorded a net loss of $91.3 million, driven largely by depreciation from its Paraguay expansion and other non-cash items.
In February, HIVE signed a two-year, $30 million deal to deploy 504 Nvidia B200 GPUs for enterprise AI cloud services. Its Paraguay GPU cluster has already begun processing early-stage workloads tied to large language model research.
HIVE is not alone in this pivot. MARA Holdings, Riot Platforms, Bitdeer, TeraWulf, Hut 8, CleanSpark, and IREN have all made moves into AI and high-performance computing, using their existing power and data center infrastructure as a foundation.
TSX Listing Approval
Separately, HIVE said it has received conditional approval to list its stock on the Toronto Stock Exchange. Trading is expected to begin later this month, pending final listing requirements. The company currently trades on the TSX Venture Exchange.
The broader mining sector is also seeing shifts in bitcoin holdings. Miner reserves have dropped from roughly 1.86 million to 1.80 million BTC in recent months, as operators sell holdings to manage costs and fund growth.
In February, MARA acquired a majority stake in French computing firm Exaion as part of its own AI push. CleanSpark agreed in January to buy 447 acres in Texas for a 300-megawatt AI-focused data center.
HIVE’s most recent contract, the $30 million Nvidia B200 GPU deal signed in February, remains its largest single AI infrastructure commitment to date.
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