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On Friday, Rosenblatt Securities initiated coverage on Hive Digital Technologies (NASDAQ:HIVE), a player in the Bitcoin mining sector, with a Buy rating and a price target of $6.00. Currently trading at $1.89, well below its 52-week high of $5.54, the stock has attracted strong analyst consensus with targets ranging from $6.00 to $11.00. The firm’s analyst highlighted the company’s upcoming growth phase and its robust High-Performance Computing (HPC) business, which is expected to see significant revenue increases. InvestingPro data shows the company achieved impressive revenue growth of 26.29% over the last twelve months.
Hive Digital is gearing up for a substantial expansion, aiming to quadruple its hashrate through the addition of three new hydro-powered data centers in Paraguay. This development is part of the company’s strategy to capitalize on its position in the Bitcoin mining industry. With current revenues of $121 million and a market capitalization of $295.55 million, the company shows significant growth potential. Additionally, Hive’s HPC business is projected to grow from a current $10 million Annual Recurring Revenue (ARR) to $100 million as new hardware is deployed within the year.
Despite these positive outlooks and having one of the largest Bitcoin holdings in proportion to its size, Hive Digital’s stock has faced downward pressure. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 10.41 and minimal debt-to-equity of 0.06. The company’s debt-free status suggests that the market may be expecting Hive to liquidate some of its Bitcoin holdings to fund its growth and acquisitions. However, even if this were to occur, the expectation is that the stock’s value would increase significantly as revenue growth leads to enhanced profitability.
Rosenblatt’s coverage comes at a time when Hive Digital’s stock appears undervalued given its growth prospects and the anticipated acceleration of revenue and profitability. The firm’s positive outlook on Bitcoin further supports the potential for Hive’s stock to become a compelling investment opportunity. For deeper insights into HIVE’s valuation and growth metrics, InvestingPro subscribers can access 13 additional ProTips and a comprehensive Pro Research Report, transforming complex financial data into actionable intelligence.
In other recent news, Hive Digital Technologies reported notable financial results for the third fiscal quarter of 2025, achieving a net profit of $1.3 million, a turnaround from a previous net loss. However, the company experienced a decline in revenue to $29.2 million from $31.3 million year-over-year. Analysts at H.C. Wainwright responded to Hive’s positive financial performance by raising the stock’s price target to $10, while Canaccord Genuity also increased their target to $9, both maintaining a Buy rating. Hive Digital is actively expanding its operations with plans to activate 300 MW of new capacity in Paraguay, following the acquisition of Bitfarms’ 200 MW Yguazu site. The company is also focusing on its High-Performance Computing (HPC) business, with expectations to double its annualized run rate revenues from $10 million to $20 million by mid-2025. Hive’s strategic initiatives include expanding its AI cloud business and cryptocurrency mining capabilities, aiming for significant growth in its global hash rate by late 2025. These developments underscore Hive Digital’s focus on leveraging its assets and strategic initiatives for future growth in the cryptocurrency and AI sectors.
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