Hive Digital stock rating reiterated at Buy by H.C. Wainwright

Published 21/07/2025, 12:42
Hive Digital stock rating reiterated at Buy by H.C. Wainwright

Investing.com - H.C. Wainwright has reiterated its Buy rating and $6.00 price target on Hive Digital Technologies (NASDAQ:HIVE), currently trading at $2.23 with a market capitalization of $401 million. The firm cites the company’s rapid hash rate expansion and growth in its high-performance computing (HPC) business. According to InvestingPro data, HIVE shows strong momentum with positive returns over the past three months, though investors should note its high volatility (Beta: 5.27).

The cryptocurrency mining company recently held an investor day at Nasdaq in New York City on July 17, where management provided updates on its Bitcoin mining operations and HPC/AI businesses. Hive Digital has more than doubled its deployed hash rate in less than six months, reaching 12.5 EH/s through rapid energization and rig deployments at its Paraguay datacenter. InvestingPro analysis reveals the company operates with moderate debt levels and maintains strong liquidity, with current assets well exceeding short-term obligations.

Management remains confident in reaching 18 EH/s by the end of August and 25 EH/s by November 2025, which would represent a quadrupling of its hash rate from February levels. The company is reportedly fully funded to achieve these near-term growth targets.

On the high-performance computing front, Hive Digital is acquiring a 7.2 MW datacenter in Toronto to expand its HPC capacity by 3.5 times. Upon completion and retrofitting, the company expects this facility to help grow its total annualized HPC revenues to approximately $100 million at full deployment, compared to current annual recurring revenue of about $20 million.

Despite these developments, Hive Digital shares have declined 22% year-to-date, underperforming both cryptocurrency mining peers (up 14% on average) and the Nasdaq (up 8%). The stock currently trades at approximately $39 million per deployed EH/s compared to peers at around $111 million per EH/s. With the next earnings report due on August 11, InvestingPro subscribers can access detailed financial analysis, including 12 additional ProTips and comprehensive valuation metrics in the Pro Research Report, helping investors make more informed decisions about this volatile crypto mining stock.

In other recent news, Hive Digital Technologies reported fiscal fourth-quarter 2025 results that exceeded revenue expectations in both its Bitcoin mining and HPC segments. The company’s growth in its mining capacity is underscored by the completion of a 100-megawatt air-cooled data center in Paraguay, which has increased its global mining hashrate to over 7 Exahash per second. Hive Digital anticipates reaching a Phase 1 target of 11.5 EH/s by the end of June. Analyst firms have varied perspectives on Hive Digital’s future; Rosenblatt lowered its price target to $5.00 due to reduced capital flexibility, yet maintained a Buy rating. Meanwhile, Cantor Fitzgerald raised its target to $5.50, citing the company’s growth outlook and efficiency improvements. H.C. Wainwright also adjusted its price target to $6.00, reflecting changes in Hive Digital’s share count. The company continues to focus on expanding its Bitcoin mining operations while also growing its AI cloud business, targeting $100 million in annual recurring revenue by 2026. Hive Digital’s strategy includes funding expansion through Bitcoin mining proceeds and an Equity Distribution Agreement, avoiding reliance on debt.

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