HIVE Digital aims to quadruple its hash rate by September 2025, potentially ranking in the top 10 public Bitcoin miners. It targets a $100M ARR in HPC. Is this small-cap miner an overlooked opportunity?
HIVE Digital Sets Sights on Expansion and HPC Revenue
This guest post comes from Bitcoinminingstock.io, your resource for insights on bitcoin mining stocks. Originally published on Feb. 27, 2025, by Cindy Feng.
Bitcoin mining’s biggest names often get all the attention, but what about smaller companies? This year, a new series will spotlight small-cap miners that often fly under the radar. These companies may become future stars or struggle to survive. Understanding them now can reveal hidden opportunities and valuable lessons. Each company will be analyzed for business fundamentals, financials, strategic direction, and market positioning—providing an unfiltered look at their strengths, weaknesses, and investment potential.
First up: Hive Digital Technologies, a multi-listed Bitcoin miner with exposure to both mining and High-Performance Computing (HPC).
Company Overview
Hive Digital Technologies (TSX.V: HIVE; NASDAQ: HIVE) is a public data center operator focused on digital asset mining and HPC. In December 2024, it announced the relocation of its head office to San Antonio, Texas, USA. The company has data centers in Canada, Sweden, and soon Paraguay. It is known for its commitment to green energy, primarily utilizing hydroelectric and geothermal power for its operations.
Business Arms
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Mining Operations: Operating a hash rate of 6 EH/s (as of Jan 31, 2025), HIVE plans to achieve 25 EH/s by September 2025.
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HPC & AI Computing: Among the first public miners to pivot to HPC, HIVE leverages its Ethereum mining expertise. As early as 2023, it reported $1.61 million in revenue from HPC hosting. HIVE continues utilizing its data centers for HPC services and plans to offer GPU rentals and explore cloud services.
Financial Highlights
HIVE Digital Technologies’ fiscal Q3 2025 (Oct 1 – Dec 31, 2024) saw a revenue decline. This decline stemmed from lower BTC production due to the Bitcoin halving event in April 2024. However, there was a profit turnaround with net profit ($1.27 million vs -$6.95 million) due to Bitcoin price appreciation, HPC growth, and cost optimizations.
Key Income Statement Metrics
- Revenue: $29.2 million (-6.5% YoY) vs. $31.3 million in Q3 2024, driven by an 11.3% YoY drop in Bitcoin mining revenue. HPC revenue grew significantly (+123.6% YoY, reaching $2.5M).
- Adjusted EBITDA: $17.3 million (vs. $17.4M in Q3 2024).
- Net Income: $1.3 million (vs. -$7.0 million in Q3 2024).
- Gross Margin: 21% (vs. 36% in Q3 2024), impacted by rising network difficulty and higher energy costs.
- Bitcoin Production: 322 BTC (-61% YoY) vs. 830 BTC in Q3 2024.
Key Balance Sheet Metrics
- Total Assets: $478.6 million (+55.6%) vs. $307.6 million.
- Total Current Liabilities: $29.8 million (+8.8%) vs. $27.4 million.
- Long-term Liabilities: $14.4 million (-29.8%) vs. $20.5 million.
- Stockholders’ Equity: $434.4 million (+67.3%) vs. $259.7 million.
- D/E Ratio: 0.10 (vs. 0.18).
Key Cash Flow Metrics
- Operating Cash Flow: $23.6 million outflow (vs. $33.3M inflow).
- Investing Cash Flow: $90.5 million outflow (vs. -$45.1 million).
- Financing Cash Flow: $114.3 million inflow (vs. $87.1M).
Main Valuation Metrics
Hive’s market cap currently stands at $385.4 million. Key metrics include:
* Enterprise Value (EV): $158.97 million.
* EV/EBITDA Ratio: 7.6x.
* Shares Outstanding: 140.20M (+32%).
* EPS: $0.00988 (improving from −$0.0788).
* BTC Holding per Market Cap: 67.5%.
Operational Metrics: Hash Rate & Efficiency
Key Hash Rate & Efficiency Metrics:
- Hash Rate: 6 EH/s; target 25 EH/s by September 2025.
- Average Efficiency: 22 J/TH, improving to 16.5 J/TH by September 2025.
- Direct Energy Cost Per BTC: $33,000.
- Total Cost Per BTC: ~$57,000.
Strategic Moves
Bitfarms Site Acquisition in Paraguay
Acquiring Bitfarms’ facility marks a significant step towards the 25 EH/s goal. The hydro-powered mining site in Paraguay will boost Hive’s capacity, potentially making it a top mining operation in Latin America.
Investment in HPC & AI Infrastructure
Though small, Hive’s HPC revenue is rapidly growing, projected to reach $20 million next quarter and $100 million by the end of 2025.
Other Notable Changes
- Head office relocation to Texas.
- Transitioning to U.S. GAAP reporting.
Final Thoughts
Hive blends bitcoin mining and HPC services, though it remains financially conservative. Its expansion in Paraguay could enhance its market position, but success hinges on the Bitcoin price and effective execution of plans. Investors should consider HIVE’s potential for both high reward and risk due to its volatile nature.
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