HIVE Digital Technologies Ltd has announced a significant shift in its growth trajectory, led by CFO Darcy Daubaras, who unveiled the company’s record fiscal year-end results. The hybrid model of Bitcoin mining and high-performance computing is showing marked success, with operations in Paraguay contributing to robust cash flows.
In a recent statement, Daubaras emphasized the incredible growth HIVE has experienced over the past year, particularly highlighting the expansion of Bitcoin mining capacity in Paraguay. The company’s hash rate surged from 6 EH/s to 25 EH/s, aligning with its dual-engine strategy. As the industry witnesses volatility in Bitcoin prices, HIVE continues to leverage its mining operations to bolster its high-performance computing business, which has achieved a $20 million annual run rate.
Impressively, the company has reported a remarkable 104% increase in Bitcoin production, generating nearly $300 million in revenue, which continues to play a critical role in HIVE’s expansion into data centers. The company operates 300 MW in Paraguay and claims one of the industry’s most efficient mining fleets, ensuring stable cash flows that facilitate investments in both AI data centers and core operations.
On the computing side, HIVE’s revenue from high-performance computing just under $20 million sets the stage for future growth. This revenue comes from its historical data center business utilizing NVIDIA A-series cards acquired in previous years. The partnership with Bell in Canada has further amplified HIVE’s capabilities, with a first cluster of 500 units now operational in Manitoba, securing an agreement worth $30 million over two years, contributing roughly $15 million in annual run-rate revenue.
Moreover, HIVE has also secured capacity at Bell’s Merritt, British Columbia facility, evaluating two large clusters with secured space and power. Under various memorandums of understanding, these clusters could yield an impressive $65 million to $70 million each in annual run-rate revenue.
Looking ahead, HIVE projects a pathway to ramp up its annual run-rate revenue from its current level to around $200 million by year-end. The company harbors even more ambitious plans targeting $600 million in revenue, fueled by the AI Gigafactory initiative in the Toronto-Waterloo corridor and the forthcoming data center facility at Toronto’s airport. With the necessary land and power already secured, the next step for HIVE involves focusing on customer acquisition and GPU deployment, marking an exciting phase ahead for the company and its stakeholders.
