HIVE Digital Applied sciences (HIVE) shares climbed as a lot as 40% Monday after the bitcoin mining agency mentioned it spent $58 million shopping for land in Toronto to develop an industrial-scale AI heart.
The land, bought by means of the corporate’s BUZZ Excessive Efficiency Computing subsidiary, will assist about 320 megawatts (MW) of capability and greater than 100,000 graphic processing models (GPUs) when totally outfitted, turning into certainly one of “Canada’s largest gigafactories,” the corporate mentioned.
The funding comes amid a broader shift away from bitcoin mining and into AI information facilities. Simply two weeks in the past, HIVE raised $115 million, with proceeds earmarked for increasing its international information heart footprint and GPU capability. The corporate has more and more leaned into information facilities throughout Canada, Sweden and Paraguay, positioning them for bitcoin mining, AI and high-performance computing (HPC) workloads.
“Compute is the brand new engine of the AI financial system,” Craig Tavares, BUZZ HPC’s president, mentioned in a press release. “If Canada desires to guide in AI, we have to construct the factories that produce intelligence right here at dwelling. Canada has the clear power, community connectivity and analysis ecosystem to guide AI innovation world wide.”
Shares of the corporate surged to as excessive as $3.92 on Nasdaq, and have been not too long ago buying and selling 26% greater at $3.38.
Canada-based BUZZ HPC accomplished the strategic acquisition of about 21 acres of land for $46 million and an adjoining 4-acre web site for $12 million.
The transaction locations huge industrial-scale compute straight inside Canada’s largest metropolitan financial system and certainly one of North America’s premier hubs for expertise, monetary companies and synthetic intelligence, in response to HIVE, which is predicated in San Antonio, Texas.
HIVE now has over 850 MW of energy globally, together with 450 MW of working information facilities plus a pipeline of 400 MW of capability, which it expects to convey on-line in 2027.
