Summary HIVE has a dual-engine growth model with Bitcoin mining plus Tier-3 AI/HPC GPU cloud computing power. The company is also targeting faster time-to-cash through conversions rather than outright building new facilities. In total, they plan to scale up mining, targeting 25 EH/s by late November 2025 and 35 EH/s in 2026. Their BUZZ HPC subsidiary will add 7.2 MW as a Tier-3 site, and Sweden upgrades nudge HIVE to approximately 6,000 NVIDIA GPUs by 2026. HIVE’s valuation also seems compelling, which is why I feel it’s fair to rate the stock a speculative “Buy” at these levels. HIVE Digital Technologies Ltd. ( HIVE ) is a crypto miner and a renewable-power infrastructure company for artificial intelligence and high-performance computing (AI/HPC). In 2025, their company surpassed an operational mining speed of 22 EH/s using hydroelectricity from Paraguay’s Itaipú and other efficient sites in Canada and Sweden. HIVE is also converting its Swedish facilities from Tier-1 to Tier-3 to accelerate time-to-cash for AI applications. Also, HIVE is expanding its Toronto infrastructure, aiming to have 6,000 GPUs by 2026. And, as a whole, I consider HIVE a very compelling speculative “Buy” given its broader positioning in crypto mining and AI compute. Rapidly Scaling AI Miner HIVE Digital Technologies Ltd. ((HIVE)) is an operator of “green” data centers for Bitcoin USD ( BTC-USD ) mining and HPC/AI GPU cloud services. HIVE was founded back in 2017 and later rebranded from its previous name as Hive Blockchain Technologies in July 2023 when it expanded into AI/HPC. HIVE is currently headquartered in San Antonio, Texas. Source: Q1 F2026 Results Webcast. Retrieved October 2025. As a quick overview, HIVE runs data centers powered by renewable sources like geothermal or hydroelectricity. These sites are located across Canada and Sweden, and they have a planned expansion in Paraguay as well. For Bitcoin mining, HIVE has two sites in Canada. One of those sites is in New Brunswick with an operational mining speed of 3.2 exahash per second (EH/s) and 65 MW of capacity. The second site is in Lachute with an operational mining speed of 1.4 EH/s and 35 MW. As for Sweden, HIVE has a mining site with an installed hash of 1.9 EH/s and 40 MW. And its facilities in Paraguay are in the Yguazú , which recently reached 200 MW in capacity as of September 2025. But more importantly, this marked the completion of their Phase 2 expansion. Going forward, HIVE’s Phase 3 will add another 100 MW to its capacity. Specifically, HIVE’s Paraguayan site in Valenzuela is planned for Q4 2025. Moreover, HIVE’s profitability should theoretically also scale alongside the price of Bitcoin itself. And indeed, HIVE’s illustrative forecasts present $345 million in annual mining margin. Note that “mining margin” in this case is simply the revenue they generate by selling their mined Bitcoin minus electricity costs (excluding other direct costs like labor, for example). In this particular scenario, HIVE assumes a hypothetical Bitcoin price of $125.0 thousand, which doesn’t seem that far off from the current price of approximately $114.5 thousand . Source: Q1 F2026 Results Webcast. Retrieved October 2025. In other words, based on those scenarios, roughly every $10.0 thousand increase in the price of Bitcoin (above $100.0 thousand per Bitcoin) adds around $100.0 million in additional mining margin for HIVE. It’s also worth mentioning that this assumes a 25 EH/s capacity, and it’s tied to its electricity cost (roughly $0.05/kWh at the moment). Similarly, HIVE’s HPC/AI segment lists Tier 3 data centers repurposed for AI and GPU cloud computing. And these installations are in Stockholm, Sweden , with a utilized power of 0.8 MW. In Montreal and Toronto (Canada), it has another 1.4 MW and 5.5 MW, respectively. But given the high demand for AI compute, HIVE now plans to triple its AI infrastructure using NVIDIA GPUs to serve this surging demand. Mining and AI Infrastructure Expansion More recently, on October 27, 2025, HIVE announced two major updates . First, they achieved a new Bitcoin-mining milestone of 22 EH/s, which represents a 267% year-to-date growth for them. This increase was mainly attributed to HIVE’s Valenzuela facility in Paraguay. This alone added 100 MW via a hydro-powered campus that generates renewable energy from the Itaipú Dam, one of the largest hydroelectric plants in the world. Source: Q1 F2026 Results Webcast. Retrieved October 2025. HIVE disclosed that it’s currently producing approximately 9.5 Bitcoin per day with an efficiency of 17.8 J/TH. As of the latest update, they’re generating a 55% mining margin at a $0.05/kWh electricity cost. However, their new target is to reach 25 EH/s by late November 2025. And after that, HIVE aims for 35 EH/s during 2026 while keeping energy efficiency around 17.5 J/TH. Furthermore, the second update is related to an acceleration of its AI cloud expansion by converting Swedish data centers from Tier-1 to Tier-3 HPC facilities. Concretely, what they’re doing is upgrading their facilities’ redundancy, uptime, and security. Management also highlighted that conversion projects typically reach profitability within 9 months, which is much quicker than the average 2-3 years when building a new site. Thus, HIVE’s upgraded Swedish site will eventually host around 2,000 NVIDIA GPUs dedicated to AI training and inference workload in the EU. Likewise, this facility can also serve clients with ongoing AI operations in Stockholm. On top of that, HIVE’s BUZZ data center in Toronto will add another 2,000 GPUs by 2026. Plus, management mentioned they’ll do an additional New Brunswick expansion, which has already secured the necessary land rights and ideal electricity rates. This means that by 2026, HIVE could operate up to 6,000 GPUs while tapping into renewable AI compute. As a side note, BUZZ HPC is actually an AI-cloud subsidiary of HIVE. In September, BUZZ HPC acquired a 7.2 MW data center site in the Greater Toronto Area (GTA). Source: HIVE’s website. Retrieved October 2025. Interestingly, this BUZZ HPC site will become their Tier 3 data center for AI workloads that will serve two purposes. BUZZ HPC will provide colocation services by renting out compute capacity and space. This subsidiary will also offer hosting in its in-house computing systems for AI. This installation uses liquid cooling for racks of 150 kW NVIDIA H100 and H200 GPUs. BUZZ’s partnership with Bell Canada, which links telecom infrastructure with GPU-based AI cloud capacity. But one statistic that stood out for me was that HIVE believes BUZZ’s AI/HPC business should grow 5x by 2026, which showcases how rapidly this new vertical is expanding. Valuation And Risk Analysis Now, from a valuation perspective, HIVE currently trades at a $1.4 billion market cap. Its most recent report from June 2025 shows its balance sheet held $24.6 million in cash and $30.6 million in marketable securities. That amounts to approximately $55.2 million in highly liquid assets against $34.7 million in financial debt (aside from other regular operating liabilities). Note that I exclude their Bitcoin holdings from this calculation because it seems more like working capital than “cash-like” given HIVE’s business. Source: Seeking Alpha. Moreover, their book value reached $560.5 million, indicating a reasonable P/B of 2.5. For comparison, their sector’s median P/B is much higher at roughly 4.0. So I do believe there’s still room for multiple expansion with HIVE. And according to Seeking Alpha’s dashboard on HIVE , the company is projected to generate $521.5 million in revenues by 2027. This would also imply a cheap forward P/S of just 2.7, which is again substantially lower than its peers’ median forward P/S of 3.6 . Having said that, HIVE is definitely not without its risks. Firstly, it’s obviously extremely exposed to any price fluctuations in Bitcoin. However, there’s also some risk with its hash price, which is a bit more subtle as it ties the price of Bitcoin relative to the network’s mining difficulty. Ultimately, if the unit economics deteriorate substantially, HIVE’s stock price would probably trend lower as well. Source: Seeking Alpha Charts. Similarly, management could face delays or even regulatory setbacks, and if they miss their EH/s targets, the market will likely react negatively. Lastly, if the demand for AI compute dissipates as fast as it spiked, it could leave HIVE in a very awkward position after building up infrastructure to serve this need. So, just make sure to remember that HIVE’s long-term prospects still rest on several potentially volatile assumptions. Conclusion: Growth “Buy” Overall, HIVE continues delivering on its expansion ambitions, and its recent update confirms it remains on track to reach 25 EH/s by year's end. I also believe the stock trades at a very compelling valuation given its growth potential with crypto and the recent surge in demand for AI compute. Naturally, these could be short-lived trends, so there’s definitely a speculative component to this bet. Nevertheless, I feel that, on balance, the risk-reward equation justifies a speculative “Buy” rating at these levels for long-term investors.
