HIVE Digital plans to develop its hash charge 4x by September 2025, probably putting it among the many prime 10 public Bitcoin miners by measurement. Concurrently, it has $100M ARR goal for HPC. Is that this small-cap miner an neglected 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 business insights. Initially revealed on Feb. 27, 2025, it was penned by Bitcoinminingstock.io creator 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 collection to highlight small-cap miners that usually fly underneath the radar. A few of these firms have the potential to rise as future stars, whereas others might battle to outlive. Understanding them now will help uncover hidden alternatives or study invaluable classes. On this collection, 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 recognized 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 succeed in 25 EH/s by September 2025.
HIVE plans for 4x hash charge development by September 2025 (screenshot from the corporate presentation)
- 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. Immediately, Hive continues to make the most of its current information facilities in Montreal (Canada) and Stockholm (Sweden) for HPC providers. 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 completely different durations in its newest report. The earnings assertion follows a typical year-over-year comparability (Dec 31, 2024, vs. Dec 31, 2023), whereas the stability sheet is in comparison with March 31, 2024. In the meantime, the money move 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. Nonetheless, the corporate has a big turnaround with web revenue ($1.27 million vs -$6.95 million), benefiting from Bitcoin value appreciation, rising HPC enterprise and value optimizations.
Key Earnings 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) attributable to decrease manufacturing (322 BTC vs. 830 BTC in Q3 2024), following the April 2024 Bitcoin halving. Nonetheless, Bitcoin value appreciation and powerful 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 Earnings: $1.3 million (vs. a $7.0 million web loss in Q3 2024). The swing to profitability was pushed by a $6.9M acquire on asset gross sales, $5.7M overseas trade acquire, and improved value 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 issue (99.9T vs. 64.1T YoY) and greater power prices, significantly in Sweden, the place tax coverage adjustments 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 general hashrate and effectivity.
Historic information of public Bitcoin miners is now out there on Bitcoinminingstock.io.
Key Steadiness Sheet Metrics (Three months ended December 31, 2024, vs. Three months ended March 31, 2024 )
- Whole 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.
- Whole 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, enhancing 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 slightly 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 destructive working money move was attributable to decrease BTC gross sales quantity and better working capital wants, as the corporate HODL’d Bitcoin slightly 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 gear 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 robust money place for upcoming infrastructure.
Principal Valuation Metrics
Hive’s market cap at the moment stands at $385.4 million (Advertising closing on Dec 31, 2024). To raised perceive its valuation, we examine it towards 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 (enhancing from earlier −$0.0788)
- P/S Ratio: 13.2x ($385.4M / $29.2M)
- BTC Holding per Market Cap: 67.5%, that 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 Price Per BTC: $33,000
- Whole Price Per BTC (Together with Depreciation & Financing): ~$57,000
Key Digital Belongings Holding & Gross sales Knowledge:
- Whole Bitcoin Held: 2,805 BTC (unencumbered, mined with clear power).
- BTC Offered In the course of 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 Website 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 web site (nonetheless underneath development) in Yguazú, Paraguay.Upon completion, Hive’s operational capability in Paraguay will whole 300MW, which will probably be one of many largest Bitcoin mining operations in Latin America.
Administration additionally has bolstered that Paraguay stays the corporate’s major focus for scaling operations. As CEO Aydin Kilic said, “We see alternatives within the U.S. attributable to a extra favorable regulatory atmosphere, 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.
Hive Digital’s Growth Roadmap in Paraguay (screenshot from the corporate web site)
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 initiatives to succeed in $20 million subsequent quarter and $100 million annualized income by the tip of 2025.
Hive’s HPC/AI Income Development Projection (screenshot from the corporate presentation)
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 Companion standing secured, enhancing credibility.
In contrast to 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 accordance with Frank Holmes, the Govt Chairman, “HIVE feels safer working within the U.S., given the shift in authorities assist towards Bitcoin mining, blockchain networks, and self-custody of digital property.”
- 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’s going to 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 handbook calculations yield completely different outcomes. The principle distinction is that HIVE makes use of adjusted non-IFRS metrics, excluding prices equivalent to depreciation, stock-based compensation, and Bitcoin truthful worth changes, which may 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 towards its business friends.
Closing Ideas
Hive presents a dynamic mix of bitcoin mining and HPC providers, positioning it for each substantial development and inevitable volatility. From a stability sheet perspective, the corporate stays financially conservative with a low D/E ratio, nevertheless it does rely closely on fairness raises to fund its capital-intensive growth plan (4x by September 2025). Its growth in Paraguay might considerably enhance mining capability and place it among the many prime 10 public miners when it comes to measurement, enhancing its business visibility. Mixed with the shift to U.S. GAAP reporting and the relocation of headquarters to Texas, this transition might assist appeal to buyers in search of regulatory readability and transparency.
HIVE’s Bitcoin mining enterprise presents each strengths and challenges. The corporate at the moment advantages from a decrease common Bitcoin manufacturing value, even compared to CleanSpark, one of the crucial environment friendly miners. With improved fleet effectivity, higher scale, and entry to decrease electrical energy prices in Paraguay, its mining operations might grow to be extra aggressive throughout the business. Nonetheless, the growth 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 stress 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 purpose of $100 million in annualized income by the tip of 2025, its HPC enterprise might present a secure, high-margin income stream, serving to to offset the volatility of Bitcoin mining. Nonetheless, this goal is very formidable, as the corporate generated solely $8.84 million from HPC in 2024, that means it could must develop almost 10x inside a 12 months.
For buyers with a excessive tolerance for danger—significantly these optimistic about long-term Bitcoin value developments and the evolving AI ecosystem—HIVE could also be a beautiful high-risk, high-reward speculative alternative. Nonetheless, its success will rely on 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 elements, as they are going to be essential in figuring out HIVE’s future efficiency.
