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SAN ANTONIO, Texas - HIVE Digital Ltd. (NASDAQ: HIVE), a data center infrastructure firm emphasizing sustainable operations with a market capitalization of $289 million, has reportedly increased its global mining hashrate to over 7 Exahash per second (EH/s) at its Yguazu facility in Paraguay. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt and impressive liquidity metrics, including a current ratio of 10.41. This advancement represents a 10% month-over-month growth following the completion of a 100 megawatt (MW) air-cooled data center. The company, which acquired the facility from Bitfarms last year, expects to continue its expansion by adding approximately 1 EH/s every two weeks with the arrival of new ASIC miners.
HIVE attributes this growth to the new 100 MW hydro-powered facility combined with the infrastructure from Bitfarms, which has allowed for a monthly increase of about 1 EH/s in mining capacity. The company anticipates reaching its Phase 1 target of 11.5 EH/s by the end of June.
The stock of HIVE has seen an upward trend since late April, as investors take note of the company’s growth initiatives. InvestingPro data shows a strong 26.29% revenue growth over the last twelve months, though with significant price volatility (Beta of 5.34). HIVE’s strategy of funding expansion through Bitcoin mining proceeds and an Equity Distribution Agreement that raised $67.4 million in October 2024, rather than relying on debt, has resonated with investors seeking financially disciplined companies. While the stock is currently trading at $1.85, InvestingPro analysis suggests the shares may be slightly undervalued. Subscribers to InvestingPro can access 12 additional key insights about HIVE’s financial health and market position, along with detailed valuation metrics in the Pro Research Report.
Frank Holmes, Co-Founder and Executive Chairman of HIVE, stated, "This expansion provides HIVE with a strategic advantage to scale production using clean hydroelectric power." With the Bitcoin price recently surpassing $100,000, HIVE projects its production to reach six Bitcoin per day by the end of June, nearly doubling its average daily production from April.
In April, HIVE produced 102 Bitcoin, averaging 3.4 BTC per day, with a fleet efficiency of 20.7 joules per terahash and an average hashrate of 6.5 EH/s.
The company is also undertaking a second phase of expansion in Paraguay with another 100 MW facility. Shipments of over 13,400 Bitmain S21+ Hydro ASIC miners are expected to begin arriving in early June, which will contribute an additional 4.3 EH/s to HIVE’s global footprint. The Phase 2 expansion is projected to bring the total hashrate to 18 EH/s by the end of summer.
Luke Rossy, HIVE’s Chief Operating Officer, mentioned preparations for an additional 100 MW of air-cooled containers at the Valenzuela site, with deployment between August and November, potentially elevating HIVE’s global hashrate above 25 EH/s.
This news is based on a press release statement and aims to provide investors with factual information regarding HIVE’s growth and expansion efforts. For comprehensive analysis and detailed metrics on HIVE’s financial performance, including exclusive ProTips and Fair Value estimates, visit InvestingPro, where you’ll find expert insights and in-depth research reports covering over 1,400 US stocks.
In other recent news, Hive Digital Technologies has completed a significant phase of its expansion strategy with the establishment of a 100 megawatt data center and a 200 MW substation in Paraguay. This development is part of Hive’s plan to triple its operational capacity by the end of the second quarter and increase its hashrate to 25 EH/s by the end of the year. Despite these advancements, Cantor Fitzgerald recently revised its price target for Hive to $4.00 from $8.00, while maintaining an Overweight rating, following an operational update that showed improved Bitcoin mining output in March. Another adjustment by Cantor Fitzgerald earlier set the price target at $8.00, highlighting Hive’s potential in Bitcoin mining and AI Cloud services, with expectations for a 300% increase in hash rate growth and significant revenue in 2025. Rosenblatt Securities initiated coverage with a Buy rating and a $6.00 price target, citing Hive’s upcoming growth phase and strong high-performance computing business. Analysts continue to view Hive positively, with some projecting strong revenue growth and an appealing risk/reward profile. Hive’s expansion efforts are underscored by its debt-free status and strategic management of Bitcoin holdings, which are expected to support future growth initiatives. The company’s recent hiring of Carlos Anibal Torres as Paraguay operations manager further strengthens its engineering capabilities as Hive continues to focus on expanding its Bitcoin mining operations.
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