Hive Digital Technologies (HIVE) is shifting from crypto mining to high-performance computing (HPC) services, aiming for $100 million in annual revenue. The company is using advanced AI chips to drive growth, with an HPC run rate of $20 million in 2023 and plans to reach $100 million by 2026, according to executives.

In response to the demand for electricity and land, Hive acquired a site near Toronto’s Pearson International Airport, aiming to scale up to 7.2 megawatts of HPC power. The strategic location provides access to a pipeline of AI talent, including connections to the University of Toronto and Canada’s AI ecosystem.

Despite transitioning to HPC, Hive’s stock continues to behave like a Bitcoin proxy, limiting its valuation upside. Analysts view the stock as undervalued, with positive coverage and price targets ranging from $9 to $10. Hive has maintained positive gross mining margins, even during Bitcoin’s downturn in 2022.

Hive has doubled its daily Bitcoin production to over six BTC, with plans to reach 12 BTC by Thanksgiving. The company holds 2,201 BTC on its balance sheet as part of its Bitcoin treasury strategy. The pivot towards AI has been accompanied by increased M&A activity in the mining sector, with notable transactions like CoreWeave acquiring Core Scientific for $9 billion.

Other significant M&A deals in the mining industry include Marathon Digital’s acquisition of Generate Capital mining sites, Hut 8’s purchase of Validus Power assets, CleanSpark’s takeover of GRIID Infrastructure, and Bitfarms’ acquisition of Stronghold Digital Mining. The industry consolidation began in 2024 post-halving, driven by the shift towards AI and higher-margin markets like HPC.

Read more at Cointelegraph: Hive Digital Technologies Accelerates AI Pivot with $100M HPC Expansion