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    HIVE Digital Technologies (HIVE)

    HIVE Q1 2025: GPU Compute ARR Grows to $10M with 99% Uptime

    Reported on May 12, 2025 (After Market Close)
    Pre-Earnings Price$2.84Last close (Aug 13, 2024)
    Post-Earnings Price$2.89Open (Aug 14, 2024)
    Price Change
    $0.05(+1.76%)
    • 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.
    1. 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.

    2. 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.

    3. 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.

    4. 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.

    5. 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.

    6. 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.

    7. 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.