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

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

HIVE Digital Units Sights on Growth and HPC Income

The next visitor publish 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 12 months, I’m launching a brand new sequence to highlight small-cap miners that usually fly underneath the radar. A few of these corporations have the potential to rise as future stars, whereas others might wrestle to outlive. Understanding them now may help uncover hidden alternatives or study useful classes. On this sequence, I’ll break down their enterprise fundamentals, financials, strategic route, 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 information 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 information facilities throughout a number of geographies, together with Canada, Sweden, and shortly Paraguay. It’s identified for its dedication to inexperienced power, 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 growth plan to achieve 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. As we speak, Hive continues to make the most of its present information facilities in Montreal (Canada) and Stockholm (Sweden) for HPC companies. Moreover, the corporate plans to supply GPU server leases by means 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 intervals 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 stream 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 out there.

HIVE Digital Applied sciences’ fiscal Q3 2025 (Oct 1 – Dec 31, 2024) noticed a decline in income in comparison with earlier 12 months. The first issue of decline is much less BTC manufacturing because of the Bitcoin halving occasion in April 2024. Nevertheless, the corporate has a major 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) as a result of decrease manufacturing (322 BTC vs. 830 BTC in Q3 2024), following the April 2024 Bitcoin halving. Nevertheless, Bitcoin value appreciation and robust HPC income development (+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 acquire on asset gross sales, $5.7M overseas change acquire, and improved price efficiencies, regardless of a decrease gross margin in comparison with the earlier 12 months.
• Gross Margin: 21% (vs. 36% in Q3 2024), impacted by a sharp rise in community problem (99.9T vs. 64.1T YoY) and greater power prices, significantly 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 diminished mining rewards, regardless of enhancements in HIVE’s total hashrate and effectivity.

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

• Complete 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, significantly fleet upgrades and new information middle expansions in Paraguay.
• Complete 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, bettering HIVE’s monetary stability whereas sustaining enough liquidity for growth.
• Stockholders’ Fairness: $434.4 million (+67.3%) vs. $259.7 million. Development 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 quite than debt to fund growth.

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 damaging working money stream was as a result of decrease BTC gross sales quantity and better working capital wants, as the corporate HODL’d Bitcoin quite 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 spanking new mining tools and buying the Boden 2 information middle in Sweden, as a part of its long-term growth technique.
• Financing Money Circulate: $114.3 million influx (vs. $87.1M). HIVE raised $121.0M by means of fairness choices, whereas repaying $3.0M in loans, sustaining a powerful money place for upcoming infrastructure.

Important Valuation Metrics

Hive’s market cap presently stands at $385.4 million (Advertising closing on Dec 31, 2024). To higher perceive its valuation, we evaluate it in opposition to 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 growth 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 (bettering from earlier −$0.0788)
• P/S Ratio: 13.2x ($385.4M / $29.2M)
• BTC Holding per Market Cap: 67.5%, which means a big portion of its valuation is tied on to BTC reserves.

Operational Metrics: Hash Price & Effectivity

Key Hash Price & Effectivity Metrics:

• Hash Price: 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 Value Per BTC: $33,000
• Complete Value Per BTC (Together with Depreciation & Financing): ~$57,000

Key Digital Belongings Holding & Gross sales Knowledge:

• Complete Bitcoin Held: 2,805 BTC (unencumbered, mined with clear power).
• BTC Bought Through 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 Web site Acquisition in Paraguay: The Core Development Engine

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

Administration additionally has strengthened that Paraguay stays the corporate’s major focus for scaling operations. As CEO Aydin Kilic said, “We see alternatives within the U.S. as a result of a extra favorable regulatory setting, however our major focus stays on scaling operations in Paraguay for now.”

Growth 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 tasks to achieve $20 million subsequent quarter and $100 million annualized income by the tip 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 Associate standing secured, bettering credibility.

Not like friends who give attention to partnerships with hyperscalers, Hive plans to lease on to end-users for LLM computations by means of on-demand market aggregators, along with providing HPC internet hosting. This enterprise section continues to develop and increase.

Different Notable Modifications:

• Head workplace relocation to San Antonio, Texas. In response to Frank Holmes, the Govt 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 should 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 guide calculations yield totally different outcomes. The principle distinction is that HIVE makes use of adjusted non-IFRS metrics, excluding prices corresponding to depreciation, stock-based compensation, and Bitcoin honest 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 information. The transition to GAAP ought to improve readability for buyers assessing HIVE in opposition to its trade friends.

Last Ideas

Hive gives a dynamic mix of bitcoin mining and HPC companies, positioning it for each substantial development and inevitable volatility. From a steadiness sheet perspective, the corporate stays financially conservative with a low D/E ratio, but it surely does rely closely on fairness raises to fund its capital-intensive growth plan (4x by September 2025). Its improvement in Paraguay might considerably enhance mining capability and place it among the many high 10 public miners by way of 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 entice buyers searching for regulatory readability and transparency.

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

On the identical 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 section by introducing new cloud service choices and scaling its AI computing operations. If HIVE efficiently attracts high-value AI prospects and reaches its objective of $100 million in annualized income by the tip of 2025, its HPC enterprise might present a steady, high-margin income stream, serving to to offset the volatility of Bitcoin mining. Nevertheless, this goal is extremely bold, as the corporate generated solely $8.84 million from HPC in 2024, which means it could must develop practically 10x inside a 12 months.

For buyers with a excessive tolerance for threat—significantly these optimistic about long-term Bitcoin value developments and the evolving AI ecosystem—HIVE could also be a gorgeous high-risk, high-reward speculative alternative. Nevertheless, its success will depend upon the Bitcoin value, the efficient execution of its growth plans in Paraguay, and the development of its HPC enterprise. Buyers ought to carefully monitor these components, as they are going to be essential in figuring out HIVE’s future efficiency.