HIVE Digital Targets 4x Hash Rate Growth & $100M HPC Revenue

HIVE Digital plans to develop its hash fee 4x by September 2025, probably inserting it among the many prime 10 public Bitcoin miners by dimension. Concurrently, it has $100M ARR goal for HPC. Is that this small-cap miner an neglected alternative?

HIVE Digital Units Sights on Enlargement and HPC Income

The next visitor put up comes from Bitcoinminingstock.io, the one-stop hub for all issues bitcoin mining shares, instructional instruments, and trade insights. Initially printed on Feb. 27, 2025, it was penned by Bitcoinminingstock.io writer Cindy Feng.

For a very long time, Bitcoin mining’s greatest names get all the eye—however what about smaller ones? This yr, I’m launching a brand new sequence to highlight small-cap miners that usually fly underneath the radar. A few of these firms have the potential to rise as future stars, whereas others might battle to outlive. Understanding them now can assist uncover hidden alternatives or study precious classes. On this sequence, I’ll break down their enterprise fundamentals, financials, strategic path, and market positioning—supplying you with a transparent, unfiltered view of their strengths, weaknesses, and funding potential.

First up: Hive Digital Applied sciences, a multi-listed Bitcoin miner with publicity to each mining and Excessive-Efficiency Computing (HPC).

Firm Overview

Hive Digital Applied sciences (TSX.V: HIVE; NASDAQ: HIVE ) is a publicly traded knowledge middle operator that focuses on digital asset mining and HPC. In December 2024, it introduced the relocation of its head workplace to San Antonio, Texas, USA. The corporate has knowledge facilities throughout a number of geographies, together with Canada, Sweden, and shortly Paraguay. It’s recognized for its dedication to inexperienced vitality, primarily using hydroelectric and geothermal to energy its operations.

Enterprise Arms

• Mining Operations: The corporate operates a complete hashrate of 6 EH/s (as of Jan 31, 2025), with an aggressive enlargement plan to succeed in 25 EH/s by September 2025.

• HPC & AI Computing: HIVE was among the many first public miners to pivot to HPC, leveraging its GPU-based Ethereum mining experience. As early as 2023, the corporate reported $1.61 million in income from HPC internet hosting. At this time, Hive continues to make the most of its present knowledge facilities in Montreal (Canada) and Stockholm (Sweden) for HPC companies. Moreover, the corporate plans to supply GPU server leases by way of market aggregators and discover a brand new cloud service providing.

Monetary Highlights: Income Decline and Profitability Enchancment

Notes: HIVE presents monetary comparisons throughout totally different durations in its newest report. The revenue assertion follows a typical year-over-year comparability (Dec 31, 2024, vs. Dec 31, 2023), whereas the steadiness sheet is in comparison with March 31, 2024. In the meantime, the money movement assertion makes use of a nine-month comparability (Dec 31, 2024, vs. Dec 31, 2023). To make sure consistency and facilitate significant evaluation, this report primarily focuses on year-over-year comparisons the place obtainable.

HIVE Digital Applied sciences’ fiscal Q3 2025 (Oct 1 – Dec 31, 2024) noticed a decline in income in comparison with earlier yr. The first issue of decline is much less BTC manufacturing as a result of Bitcoin halving occasion in April 2024. Nonetheless, the corporate has a big turnaround with internet revenue ($1.27 million vs -$6.95 million), benefiting from Bitcoin value appreciation, rising HPC enterprise and price optimizations.

Key Revenue Assertion Metrics

• Income: $29.2 million (-6.5% YoY) vs. $31.3 million in Q3 2024. This decline was pushed by a drop in Bitcoin mining income (-11.3% YoY) resulting from decrease manufacturing (322 BTC vs. 830 BTC in Q3 2024), following the April 2024 Bitcoin halving. Nonetheless, Bitcoin value appreciation and powerful HPC income progress (+123.6% YoY, reaching $2.5M) helped offset the decline.

• Adjusted EBITDA: $17.3 million (vs. $17.4M in Q3 2024).
• Internet Revenue: $1.3 million (vs. a $7.0 million internet loss in Q3 2024). The swing to profitability was pushed by a $6.9M achieve on asset gross sales, $5.7M international trade achieve, and improved value efficiencies, regardless of a decrease gross margin in comparison with the earlier yr.
• Gross Margin: 21% (vs. 36% in Q3 2024), impacted by a sharp rise in community problem (99.9T vs. 64.1T YoY) and greater vitality prices, notably in Sweden, the place tax coverage modifications led to elevated electrical energy bills.
• Bitcoin Manufacturing: 322 BTC (-61% YoY) vs. 830 BTC in Q3 2024. The Bitcoin halving occasion lowered mining rewards, regardless of enhancements in HIVE’s total hashrate and effectivity.

Key Stability Sheet Metrics (Three months ended December 31, 2024, vs. Three months ended March 31, 2024 )

• Whole Belongings: $478.6 million (+55.6%) vs. $307.6 million. The rise was pushed by greater Bitcoin holdings (2,805 BTC) and ongoing investments in mining infrastructure, notably fleet upgrades and new knowledge middle expansions in Paraguay.
• Whole Present Liabilities: $29.8 million (+8.8% ) vs. $27.4 million. The rise displays greater short-term obligations linked to infrastructure investments.
• Lengthy-term Liabilities: $14.4 million (-29.8%) vs. $20.5 million. The lower is attributed to ongoing debt repayments, enhancing HIVE’s monetary stability whereas sustaining ample liquidity for enlargement.
• Stockholders’ Fairness: $434.4 million (+67.3%) vs. $259.7 million. Progress in fairness was fueled by profitable fairness choices, greater asset valuations, and retained earnings.
• D/E Ratio: 0.10 (vs. 0.18 ). The corporate maintained a really low leverage, utilizing fairness raises slightly than debt to fund enlargement.

Key Money Circulate Metrics (9 months ended Dec 31, 2024, vs. 9 months ended Dec 31, 2023)

• Working Money Circulate: $23.6 million outflow (vs. $33.3M influx). This shift to unfavourable working money movement was resulting from decrease BTC gross sales quantity and better working capital wants, as the corporate HODL’d Bitcoin slightly than promoting at decrease costs.
• Investing Money Circulate: $90.5 million outflow (vs. -$45.1 million). HIVE doubled capital investments, allocating $59.6M for brand new mining tools and buying the Boden 2 knowledge middle in Sweden, as a part of its long-term enlargement technique.
• Financing Money Circulate: $114.3 million influx (vs. $87.1M). HIVE raised $121.0M by way of fairness choices, whereas repaying $3.0M in loans, sustaining a powerful money place for upcoming infrastructure.

Predominant Valuation Metrics

Hive’s market cap at present stands at $385.4 million (Advertising and marketing closing on Dec 31, 2024). To raised perceive its valuation, we examine it towards key monetary metrics:

• Enterprise Worth (EV): $158.97 million (Market Cap + Debt – Money & Bitcoin Holdings). Hive trades at an EV per BTC mined of $89,834, near BTC’s market value. If Hive efficiently executes its enlargement and HPC technique, its present undervaluation presents a possible re-rating alternative.
• EV/EBITDA Ratio: 7.6x ($158.97M / $20.7M)
• Shares Excellent: 140.20M (+32%)
• EPS: $0.00988 (enhancing from earlier −$0.0788)
• P/S Ratio: 13.2x ($385.4M / $29.2M)
• BTC Holding per Market Cap: 67.5%, that means a big portion of its valuation is tied on to BTC reserves.

Operational Metrics: Hash Charge & Effectivity

Key Hash Charge & Effectivity Metrics:

• Hash Charge: 6 EH/s, with a goal of 25 EH/s by September 2025.
• Fleet Upgrades: 11,500 models of Avalon A1566 ordered in Oct and Nov 2024 (6,500 of which has been deployed by Feb 11, 2025)
• Common Effectivity: 22 J/TH, anticipated to enhance to 16.5 J/TH by September 2025.
• Direct Power Price Per BTC: $33,000
• Whole Price Per BTC (Together with Depreciation & Financing): ~$57,000

Key Digital Belongings Holding & Gross sales Information:

• Whole Bitcoin Held: 2,805 BTC (unencumbered, mined with clear vitality).
• BTC Offered Throughout the Quarter: ~$8.4M vs. ~$30.7M in 2023
• Funding Operations: Fairness financing of $121M as a substitute of extreme BTC gross sales.
• Cash are saved with Fireblocks Inc., not on exchanges
• No pledge or staking on BTC holdings

*Hive nonetheless holds $371k value of different cash (ETC+ others)

Strategic Strikes

Bitfarms Website Acquisition in Paraguay: The Core Progress Engine

Buying Bitfarm’s facility is “a formative step in the direction of our technique to have 25 EH/s by September.” The deal features a 200MW hydro-powered mining web site (nonetheless underneath development) in Yguazú, Paraguay.Upon completion, Hive’s operational capability in Paraguay will whole 300MW, which will probably be one of many largest Bitcoin mining operations in Latin America.

Administration additionally has bolstered that Paraguay stays the corporate’s main focus for scaling operations. As CEO Aydin Kilic acknowledged, “We see alternatives within the U.S. resulting from a extra favorable regulatory atmosphere, however our main focus stays on scaling operations in Paraguay for now.”

Enlargement Roadmap:

• 100MW Yguazú Section 1 (April 2025): Including 6 EH/s.
• 100MW Valenzuela (June 2025): Including 6.5 EH/s.
• 100MW Yguazú Section 2 (September 2025): Including 6.5 EH/s.
• Goal fleet effectivity: 16.5 J/TH by September 2025.

Funding in HPC & AI Infrastructure: Small however Rising

Whereas nonetheless small, AI/HPC income is rising quickly. Hive reached $2.5 million income in fiscal Q3 2025 (up 124% YoY) from its HPC operations, and the corporate initiatives to succeed in $20 million subsequent quarter and $100 million annualized income by the top of 2025.

Present infrastructure:

• 4,000 GPUs in use (together with NVIDIA A4000, A5000, A40, and H100 )
• 508 Nvidia H200 GPUs anticipated by Q1 2025 (add $9 million in top-line income as soon as deployed)
• In preparation to place themselves for next-generation liquid-cooled Nvidia Blackwell GPUs
• Nvidia Cloud Companion standing secured, enhancing credibility.

In contrast to friends who deal with partnerships with hyperscalers, Hive plans to lease on to end-users for LLM computations by way of on-demand market aggregators, along with providing HPC internet hosting. This enterprise phase continues to develop and develop.

Different Notable Adjustments:

• Head workplace relocation to San Antonio, Texas. Based on Frank Holmes, the Government Chairman, “HIVE feels safer working within the U.S., given the shift in authorities help towards Bitcoin mining, blockchain networks, and self-custody of digital belongings.”
• Transitioning to the U.S. GAAP reporting in fiscal year-end March thirty first to enhance transparency and comparability with different Bitcoin miners.” Personally I actually like this transfer as it can assist standardize monetary reporting and make cross-company evaluation extra dependable.

For instance, HIVE’s newest investor presentation highlights “best-in-class ROIC” and the “lowest company G&A,” however my handbook calculations yield totally different outcomes. The principle distinction is that HIVE makes use of adjusted non-IFRS metrics, excluding prices similar to depreciation, stock-based compensation, and Bitcoin truthful worth changes, which might current a extra favorable monetary image.

To make sure goal comparisons, this report excludes such metrics and focuses on standardized monetary knowledge. The transition to GAAP ought to improve readability for traders assessing HIVE towards its trade friends.

Remaining Ideas

Hive presents a dynamic mix of bitcoin mining and HPC companies, positioning it for each substantial progress and inevitable volatility. From a steadiness sheet perspective, the corporate stays financially conservative with a low D/E ratio, however it does rely closely on fairness raises to fund its capital-intensive enlargement plan (4x by September 2025). Its improvement in Paraguay might considerably improve mining capability and place it among the many prime 10 public miners when it comes to dimension, enhancing its trade visibility. Mixed with the shift to U.S. GAAP reporting and the relocation of headquarters to Texas, this transition might assist appeal to traders in search of regulatory readability and transparency.

HIVE’s Bitcoin mining enterprise presents each strengths and challenges. The corporate at present advantages from a decrease common Bitcoin manufacturing value, even compared to CleanSpark, probably the most environment friendly miners. With improved fleet effectivity, larger scale, and entry to decrease electrical energy prices in Paraguay, its mining operations might grow to be extra aggressive throughout the trade. Nonetheless, the improvement of its Paraguay websites is topic to potential delays from unexpected circumstances, and Bitcoin’s value stays extremely risky. Given its present low gross margin, any downturn in Bitcoin’s value might put important stress on profitability.

On the similar time, HIVE’s HPC enterprise, although nonetheless a small contributor, is gaining traction and has the potential to grow to be a significant income driver. The corporate is actively increasing this phase by introducing new cloud service choices and scaling its AI computing operations. If HIVE efficiently attracts high-value AI clients and reaches its purpose of $100 million in annualized income by the top of 2025, its HPC enterprise might present a steady, high-margin income stream, serving to to offset the volatility of Bitcoin mining. Nonetheless, this goal is extremely bold, as the corporate generated solely $8.84 million from HPC in 2024, that means it will must develop practically 10x inside a yr.

For traders with a excessive tolerance for threat—notably these optimistic about long-term Bitcoin value traits and the evolving AI ecosystem—HIVE could also be a horny high-risk, high-reward speculative alternative. Nonetheless, its success will rely on the Bitcoin value, the efficient execution of its enlargement plans in Paraguay, and the progress of its HPC enterprise. Traders ought to intently monitor these components, as they are going to be essential in figuring out HIVE’s future efficiency.