HIVE Q1 2025: GPU Compute ARR Grows to $10M with 99% Uptime
- Diversifying into GPU-powered HPC: HIVE is converting select data centers (e.g., New Brunswick and Boden) from exclusive Bitcoin mining to accommodate GPU-based HPC, tapping into the fast-growing AI compute market and leveraging long-term contracts with high uptime performance.
- Attractive expansion in Paraguay: The planned 100 MW green energy data center in Paraguay is a cost-effective, low CapEx project that can significantly lower Bitcoin production costs (targeting around $22,000 per Bitcoin) while expanding hash rate capacity.
- Operational efficiency and cost leadership: The company’s strategy emphasizes low G&A per Bitcoin mined and high operational uptime in both mining and GPU compute, underscoring its ability to maintain strong profitability and unit economics in a competitive market.
- Halving Impact on Production and Revenue: The halving event cut Bitcoin production roughly in half, leading to lower revenue and reduced gross mining margins compared to prior quarters.
- Bearish Crypto Mining Cycle: Executives explicitly noted a bearish cycle in crypto mining, emphasizing challenges in profitability and the difficulty of sustaining production in the current market conditions.
- High External Volatility and Risk Factors: Elevated daily volatility—with HIVE’s volatility reaching around 23%—combined with external factors like fluctuating Bitcoin prices and geopolitical risks add uncertainty to operational results.
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Mining Outlook
Q: Outlook on Bitcoin mining and Paraguay expansion?
A: Management is upbeat about growing cash flow and profitability via their green energy strategy, emphasizing Paraguay’s low-cost setup to boost mining capacity and sustain positive unit economics. -
Deployment Cadence
Q: What’s the timeline for Q3’25 deployment?
A: They expect to break ground with substation work in the first six months and bring capacity online by Q3 2025, although exact capital spending plans remain undisclosed. -
GPU Business
Q: How sustainable are GPU pricing and uptime?
A: They highlighted robust GPU compute operations with 98–99% uptime and growth from $1 million to $10 million ARR, indicating long-term service viability. -
HPC Conversion
Q: Which sites convert to HPC from mining?
A: Management will convert sites in New Brunswick and Boden, leveraging existing data center infrastructures for a smooth retrofit to HPC operations. -
HPC Model
Q: Self-own GPUs or colocation for HPC capacity?
A: They plan a hybrid approach to fill 20 MW capacity, balancing capital-intensive own equipment with colocation models to optimize unit economics. -
AI Strategy
Q: Does Paraguay expansion affect AI GPU plans?
A: The Paraguay project is solely for mining capacity; near-term AI opportunities focus on facilities in New Brunswick and Sweden. -
HPC Demand
Q: How strong is HPC customer interest?
A: Management noted cautious customer engagement—large clients prefer proven project progress before committing—emphasizing scheduled retrofits to meet high uptime standards.
Research analysts covering HIVE Digital Technologies.