HIVE Digital Technologies Shares Climb on Bitcoin Rally and Mining Milestones

Shares of blockchain and AI infrastructure provider HIVE Digital Technologies (HIVE) posted significant gains on Friday, following Bitcoin’s record surge and the company’s achievement of notable operational milestones within its Bitcoin mining division.

The stock climbed 6.5%, reaching a price of $2.47 per share, and correspondingly increased its market capitalization to approximately $530 million. This rally aligns with a broader upward trend observed among Bitcoin mining companies over the past month.

HIVE stock performance chart showing a recent rally but year-to-date decline vs the broader market. Source: Google Finance — *HIVE stock has rallied sharply in recent weeks, though it remains down over 20% year-to-date. Source: Google Finance*

The recent price increase was fueled by news that Hive Digital Technologies surpassed 12 exahashes per second (EH/s) of Bitcoin mining hashrate, doubling its output since the start of the year. Currently generating over $250 million in annualized revenue, the company projects reaching $400 million once production scales to 18 EH/s.

CEO Aydin Kilic reported that the company is now mining exceeding six Bitcoin (BTC) daily and highlighted an operating margin of roughly 55%. HIVE additionally ranks among the top 20 largest publicly held Bitcoin holders, with 2,201 BTC disclosed in its recent filing.

Visual indicating HIVE Digital Technologies' position among the top public Bitcoin investors. Source: BitcoinTreasuries.NET — *HIVE Digital Technologies ranks among the top-20 public Bitcoin investors. Source: BitcoinTreasuries.NET*

Average Bitcoin Mining Costs Rise

Concurrently, the Bitcoin mining industry faces significant operational headwinds stemming from the recent network halving, which effectively reduced block rewards by 50% — sharply decreasing miners’ revenues.

This reduction, coupled with high energy, equipment and operational costs, has intensified challenges to profitability for many mining firms.

Chart comparing average Bitcoin mining costs against Bitcoin's market price. Source: MacroMicro — *Comparative analysis of average Bitcoin mining costs versus BTC spot prices. Source: MacroMicro*

Diversification into AI Offers Pathways for Survival

To navigate these challenging market conditions, some mining operations have shifted focus towards diversifying their business models, particularly by incorporating artificial intelligence (AI) and high-performance computing (HPC) workloads. Evidence suggests this strategic pivot is yielding dividends.

Illustrating this trend, companies like Core Scientific, partly rescued from potential insolvency by the shift to profitable AI infrastructure services. Its subsequent acquisition by CoreWeave for $9 billion demonstrates significant investor confidence in AI-focused HPC infrastructure as a viable alternative.

According to HIVE Digital, which converted some graphics processing units (GPUs) to AI workloads last September, this diversification provided a crucial revenue boost. The company has notably highlighted Nvidia’s H100 chips as a key enabler of that growth.

Related: Investors are balking at ‘excessive’ Bitcoin miner exec pay: VanEck

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