HIVE Digital Technologies (NASDAQ:HIVE) announced on Tuesday its acquisition and deployment of advanced Nvidia Corp (NASDAQ:NVDA) H100 and H200 GPU clusters in Quebec, Canada.
This strategic $30 million investment aims to strengthen HIVE's position in artificial intelligence (AI) and high-performance computing (HPC) and enhance its role in the digital transformation landscape.
The new GPU clusters are part of HIVE's broader strategy to drive growth in AI and HPC markets.
HIVE expects the latest technology to significantly boost its annualized run-rate revenue and margin growth in the coming quarters.
The Nvidia H100 cluster, consisting of 248 GPUs across 32 nodes, is fully configured and set to be operational by the end of 2024. Once deployed, this cluster will likely generate ~$15 million in annualized run-rate revenue.
The Nvidia H200 cluster, featuring 508 GPUs in 64 nodes, is scheduled to arrive in early January 2025 and be deployed in the first quarter of 2025.
HIVE projects over $20 million in annualized run-rate revenue from the H200 cluster by the second quarter of 2025.
Aligned with its commitment to sustainability, HIVE powers its operations in Quebec entirely with renewable energy.
In October, Cantor Fitzgerald's Brett Knoblauch highlighted HIVE's measured approach to growth, contrasting it with peers focusing on aggressive expansion.
He noted that the company prioritizes maximizing returns from fleet investments over rapid scaling, which has led to underperformance relative to competitors.
The analyst expects HIVE to double its hash rate in the coming year while maintaining its top-tier mining efficiency. He also pointed out HIVE's advancements in AI and high-performance computing (HPC), emphasizing the potential of its GPU cloud platform, HIVE Cloud.
HIVE stock plunged over 32% year-to-date.
Price Actions: HIVE stock is up 2.69% at $3.05 at the last check on Tuesday.
