Summary HIVE Digital Technologies Ltd. operates a dual model with Bitcoin mining and BUZZ HPC/AI, which is the intended next growth engine. HIVE’s hydro expansion rapidly lifted its hashrate and mining output, and management targets another 100 MW at Yguazú by Q3 2026. I also think the stock has a compelling ESG angle with its hydropower and heat reuse. Its Grand Falls facility will potentially scale to 25,000+ GPUs. So, after a steep drawdown, I argue HIVE’s valuation looks quite cheap relative to its peers and mining ramp-up ambitions. HIVE Digital Technologies Ltd. ( HIVE ) is a digital infrastructure firm that pairs large-scale Bitcoin ( BTC-USD ) mining with an emerging high-performance computing (HPC) and artificial intelligence ((AI)) data center platform under BUZZ HPC. HIVE’s operations are executed in locations in Paraguay, Sweden, and Canada. BTC mining is the major contributor of revenue, while HPC/AI is the next planned growth engine. The company produced 306 BTC in December 2025, which constitutes an increase of 197% YoY. So, despite the massive pullback in the past couple of months, I continue to believe HIVE has a great future ahead. And I think this HIVE dip offers a compelling opportunity for new investors at these levels. Betting on HPC, AI, and Crypto HIVE Digital Technologies Ltd. has steadily become a diversified digital infrastructure company with two main businesses: 1) bitcoin mining and 2) high-performance computing (HPC) and AI data centers. The company went public as HIVE Blockchain Technologies in 2017 and changed its name to the current one in 2023. Currently, HIVE is headquartered in San Antonio, Texas, with operating blockchain and AI facilities across Paraguay, Sweden, and Canada. I previously covered HIVE last October, and since then, the stock has declined by approximately 44.5%, so I thought it was worthwhile revisiting this name. Source: Q2 F2026 Results Webcast. September 2025. As a quick recap, HIVE’s business is based on Bitcoin mining and BUZZ HPC , which is a subsidiary that delivers GPU-based AI and HPC services. Bitcoin mining is still the dominant contributor, with approximately $82.1 million for their most recent quarterly revenues , while HPC and AI revenue is only $5.2 million. Additionally, HIVE integrates Tier I mining data centers that produce around 10 BTC per day and Tier III HPC/AI data centers, which are their long-duration growth plan. Moreover, HIVE uses renewable energy from hydroelectric sources, which I think can give the stock some ESG appeal as well. For example, in Paraguay , the company has two sites, one of 100 MW in Valenzuela and a second facility in the Yguazú of 200 MW, both of which are powered by the Itaipú Dam hydro. In Boden, Sweden , HIVE has three facilities, with a total capacity of 40 MW, also powered by hydroelectric power. On top of that, HIVE’s Canadian operations use data centers in two locations: Lachute, Quebec, with 35 MW, and New Brunswick, with 65 MW. At its Lachute mining facility, most of the electricity that is consumed is converted into heat, plus a smaller portion into useful computing work, applying a circular energy idea of turning waste into something useful. Essentially, instead of simply having their facilities emit heat (the usual approach), HIVE recaptures their heat by moving hot air through ducts and heat exchangers. Then it reroutes it into a nearby industrial building. This is a very large partner facility (200,000 sq. ft.), which provides them with heating during winters while lowering energy costs and emissions. Source: Q2 F2026 Results Webcast. September 2025. Furthermore, HIVE acquired an additional 32.5 acres in Grand Falls, New Brunswick , near its existing facility. The company aims to use this site to expand as a future Tier III plus HPC data center campus. Tier III is meant to signal enterprise-grade reliability and redundancy as part of its AI strategy. The facility is planned to be capable of scaling to over 25,000 GPUs, and it has the advantage of proximity to the Maine border near hyperscalers, such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, that may want some of this computing capacity. AI Ambition and Record Bitcoin Production It’s also worth highlighting that HIVE continues to invest in HPC data centers to supply the growing compute demand for generative AI, machine learning at scale, and real-time processing. All of those operations are compute-intensive, and the company expects they’ll generate long and sustained demand for its data centers. HIVE’s approach is to provide high-density racks, liquid cooling, and heavy-duty electrical and redundancy infrastructure in HPC data centers that will feed AI in general. Besides, HIVE mentioned they have the know-how of bitcoin miners, which is somewhat transferable into AI infrastructure as part of their transition from Bitcoin mining Tier I to Tier III HPC data centers. Yet, it’s undeniable that Bitcoin mining itself remains the main value driver, at least in the near term. Fortunately, by November 2025, the company achieved 23 exahash per second (Eh/s) in total Bitcoin-mining compute, which corresponds to a 283% YTD growth. Then, by December 2025, HIVE reported they had mined around 306 BTC. Source: Q2 F2026 Results Webcast. September 2025. Note that HIVE’s December mining capacity corresponds to approximately 9.9 BTC per day, with an average hashrate of 23.3 EH/s. In total, in 2025, HIVE produced 2,311 BTC, which is up 31% from 1,770 BTC the previous year. These goals were achieved despite the Bitcoin halving, which reduces block rewards and significantly increases the average network mining difficulty. Looking ahead, HIVE plans to build an additional 100 MW of hydro-powered capacity at the Yguazú campus in Paraguay. Management believes they can energize and ramp these facilities to full capacity by Q3 2026. That way, HIVE will have an impressive 400 MW in Paraguay and 140 MW across Canada and Sweden. Valuation and Risk Analysis Now, from a valuation perspective, HIVE currently trades at a $744.0 million market cap. This is actually a 53% pullback from its 2025 highs. And their latest balance sheet from Q3 shows they hold $48.3 million in cash and short-term investments against $18.3 million in financial debt (aside from other regular operating liabilities). In total, their book value reached $624.6 million, which also indicates a reasonable P/B of just 1.2. For comparison, their sector’s median P/B is closer to 3.8, so the stock already looks somewhat cheap from this angle. Source: Seeking Alpha Charts. Moreover, according to Seeking Alpha’s dashboard on HIVE , the company is projected to generate $479.7 million in revenues by 2027. That would also price HIVE at a compelling forward P/S of 1.6. This is again notably lower than its peers’ median forward P/S of 3.5. That’s why, after such a steep pullback, I feel the stock now offers compelling value for new investors at these levels. Source: Seeking Alpha. Naturally, the stock does have its risks, and the most important one is its direct exposure to Bitcoin. Even though this is likely the safest token within that asset class, cryptocurrencies as a whole are notoriously volatile. To give you an idea, Bitcoin has declined from almost $125,000 back in October 2025 to around $92,000 at the time of this writing. This is over a 26% decline since then, and it’s likely a key contributor to HIVE’s recent underperformance. Plus, it’s not guaranteed that Bitcoin is near its bottom, especially since Bitcoin may be near the end of its typical “ 4-year cycle ,” and it’s already experiencing a significant drawdown. If that’s the case, HIVE could keep facing this secular headwind for much longer than investors may anticipate. On top of that, Bitcoin’s post-halving economics (i.e., increased mining difficulty) and recent price pullback can quickly compress HIVE’s margins. And if power costs also increase in the geographies it operates, then HIVE could face very unfavorable economics in the near term, despite reaching record-level mining capacity. Source: Q2 F2026 Results Webcast. September 2025. In fact, this dynamic could deepen their already considerable cash burn, which I estimate reached $38.9 million in Q3 2025. Note that I got that figure by simply adding HIVE’s latest quarterly cash flows from operations and CAPEX. And that number implies HIVE already has a tight runway of only 1.2 more quarters. I imagine that’s why HIVE had to secure a new $300 million ATM , which should give it some room for maneuvering. Yet, this also introduces dilution risks in the near term, which should be a headwind for its stock price nonetheless. Conclusion: Viable but Undoubtedly Cyclical Overall, HIVE’s bull case still rests on Bitcoin. In that sense, I believe HIVE’s quick capacity ramp-up will eventually pay off for patient investors. Unfortunately, in the near term, I can’t ignore that there are a couple of key headwinds with Bitcoin potentially nearing the end of its current 4-year cycle and tight cash runway. That’s why I think the market is justified in becoming a bit more skeptical of HIVE’s short-term prospects. However, after such a steep pullback, I believe the shares are too oversold to lean neutral or bearish. That’s why I ultimately reiterate my speculative “Buy” rating on HIVE at these levels.
