HIVE Digital, backed by a $30 million Nvidia GPU implementation, boosts its AI ambitions.

HIVE Digital Technologies (NASDAQ: HIVE) announced on Tuesday the acquisition and deployment of advanced Nvidia Corp (NASDAQ: NVDA) H100 and H200 GPU clusters located in Quebec, Canada.
This $30 million strategic investment aims to strengthen HIVE's position in Artificial Intelligence (AI) and High-Performance Computing (HPC), enhancing HIVE's role in the digital transformation environment.
The new GPU cluster is part of a broader strategy by HIVE to drive growth in the AI and HPC markets.

HIVE expects a significant increase in annual run rate revenue and profit margin over the next few quarters using the latest Technology.

The Nvidia H100 cluster is composed of 248 GPUs spanning 32 nodes and is fully configured to be operational by the end of 2024. Once deployed, this cluster is expected to generate approximately 15 million dollars in annual operating revenue.
The Nvidia H200 cluster, equipped with 508 GPUs on 64 nodes, is scheduled to arrive in early January 2025 and will be deployed in the first quarter of 2025.
HIVE predicts annual operating revenue from the H200 cluster will exceed $20 million by the second quarter of 2025.
HIVE fully covers its operations in Quebec with renewable energy in line with its sustainability efforts.
In October, Bret Nabrutowitz of Canter Fitzgerald emphasized HIVE's cautious approach to growth, contrasting it with competitors focusing on aggressive expansion.

He noted that the company prioritizes maximizing returns from vehicle investments over rapid scalability, leading to underperformance compared to rivals.
Analysts expect HIVE to double its hash rate next year while maintaining top-tier mining efficiency. They also highlighted advancements in AI and High-Performance Computing (HPC) at HIVE and emphasized the potential of HIVE's GPU cloud platform, HIVE Cloud.
HIVE's stock price has plummeted by over 32% year-to-date.

2024/12/25 00:57