Key insights
- HIVE Digital Technologies is pivoting to High-Performance Computing and AI infrastructure. Recent developments include partnerships to upgrade network capacity and a $115M private offering of 0% exchangeable senior notes, suggesting investor confidence. While small relative to the broader AI market, these developments could positively influence sentiment towards HIVE and similar companies, but the impact on overall US equities is limited.
I will start out by saying that I know this stock popped last year during crypto’s bull run. People have laughed and scoffed at my recent comments, thinking this company is dead, or I am holding bags. But the truth is this stock is working on a pivot into High-Performance Computing (HPC) and AI Infrastructure.
They are currently sitting at a ~$1.02B CAD or $746M USD market cap. Tiny peanuts compared to what AI companies are worth these days.
Recent news to show they are not just gaslighting investors:
HIVE’s BUZZ Starts Building A Digital Superhighway for Eastern Canada’s First Sovereign AI Factory
Cliffnotes:
In partnership with a Canadian carrier, BUZZ is upgrading Grand Falls with dedicated high-capacity optical wavelength services, including multiple 100 Gbps and 400 Gbps connections. Delivery is expected to begin in Q3 2026. The __Canadian carrier will have substantial capital expenditures beyond HIVE’s capital commitment__, to complete the installation of these high-speed fiber connections.
So not only are they expanding their capacity and throughput, they are partnered with a Canadian telecommunication providor (Canadian Bell) who is willing to invest alongside of them.
Investors don’t just give away money for free. They have given HIVE $115M for ZERO percent interest. Not to mention it was originally for $75 million, and there was so much demand, they expanded the offering to $115M.
Conversion value of shares would be ~$2.57. They can only request conversion early if the stock price stays at 130% of conversion value for a certain amount of time. That’s incentive for them to work with HIVE to achieve legitimate growth.
HIVE Digital Announces Up-listing to TSX and Provides Corporate Update
Lastly, management recently confirmed they had been approved for uplisting to the main TSX from Venture. In the short term, this may mean downward volatility aka an entry opportunity. Long term, this boards well for the company. You don’t get uplisted for being a fraudulent company.
While all that is going on, their core business is still going strong. Think of this as a dual crypto/AI play.
Edit: Also, I forgot to add that Kenny G and Citadel disclosed a significant stake in HIVE in a 4/24 filing. 8.7M shares for Citadel and 11M attributed to Ken through Citadel. With total shares outstanding of ~230M, that’s roughly 3.5% for Citadel and 4.2% for Kenny G. Take it for what you will. I know Citadel gets hate at times.
TLDR: Major things are happening and HIVE appears to have hit maximum FUD and the price is starting to turn around. I expect this stock to rally back to old highs and beyond - IF management can execute on their pivot. So far, they have shown they are serious at doing so.
Position:
5,000 shares @ $2.67
100 1/21/28 $10C @ $.49 average
25 1/21/28 %4C @ $0.95 average