HIVE Raises Capital for AI and Data Centers
HIVE Digital Technologies is preparing to raise $75 million through a private offering of exchangeable senior notes, as the crypto miner accelerates its push into data centers and artificial intelligence infrastructure.
The company said it intends to issue $75 million in zero-interest notes due 2031, with an option for investors to purchase an additional $15 million. The securities will be offered to institutional buyers and can be exchanged into cash, shares, or a combination of both.
The proceeds will go toward capital investment and expansion, including the purchase of graphics processing units and the development of data centers. Funds will be channeled through HIVE’s subsidiaries, which will deploy the capital across its growing infrastructure footprint.
The offering reflects a broader shift in HIVE’s strategy. While the company built its business on bitcoin mining, it is increasingly positioning itself as a provider of high-performance computing and AI services. Recent investments include a GPU cluster in Paraguay, which has already begun processing early-stage workloads tied to large language model research.
HIVE’s capital raise comes amid strong top-line growth but continued bottom-line pressure. In its most recent quarter, the company reported revenue of $93.1 million, more than tripling from a year earlier. However, it posted a net loss of $91.3 million, driven largely by depreciation tied to its expansion in Paraguay and other non-cash adjustments.
At the same time, the broader mining sector is changing. Industry data show that miner reserves have declined in recent months, dropping from approximately 1.86 million to 1.80 million BTC, with several large operators selling portions of their bitcoin holdings to manage costs and fund operations.
HIVE is also pursuing a listing upgrade. The company has received conditional approval to move its shares from the TSX Venture Exchange to the Toronto Stock Exchange, with trading expected to begin later this month, subject to meeting final requirements.
The planned note issuance highlights how crypto-linked firms are tapping capital markets to fund diversification beyond mining. As margins tighten and competition increases, companies are looking to AI and data infrastructure as new sources of growth.
