HIVE Digital Technologies Expands Bitcoin Mining Operations
HIVE Digital Technologies is significantly ramping up its Bitcoin mining capabilities, currently exceeding 8.3 EH/s and aiming to reach 18 EH/s by late summer. This expansion is being fully financed through equipment deals backed by Bitcoin. According to Roth Capital analyst Darren Aftahi, who has reaffirmed his “Buy” rating and $6.00 price target in an update from May 15, the company’s ongoing development in Paraguay sets it on a promising trajectory toward 25 EH/s. This growth is anticipated to enhance efficiency, profit margins, and overall profitability by 2026. HIVE is on track to achieve 11.5 EH/s by June, driven by the establishment of new facilities in Paraguay. Once these three sites are operational, they could potentially support up to 25 EH/s, positioning HIVE as one of the largest publicly traded Bitcoin miners globally.
Strategic Path to Increased Efficiency and Profitability
“With all three 100MW Paraguay facilities expected to be operational by the end of the year, HIVE has a clear strategy to reach 25 EH/s, with options to exceed 18 EH/s,” Aftahi noted. This level of scaling is projected to enhance HIVE’s efficiency and profitability, bringing it in line with industry peers. The company’s unique financing arrangements, which leverage Bitcoin, allow it to maximize potential gains while avoiding equity dilution, although additional investments will be necessary to fully realize the 25 EH/s target.
Projected Financial Growth in Fiscal Years Ahead
Aftahi estimates that HIVE will generate $39.8 million in Adjusted EBITDA with revenues of $115.3 million for fiscal 2025. These figures are expected to see significant improvement, reaching $95.9 million in EBITDA on revenues of $283.7 million by fiscal 2026. In a press release dated May 15, HIVE indicated that the additional mining capacity is likely to lower the cost of Bitcoin production and improve profit margins by fall 2025.
Innovative Financing to Expand Mining Fleet
During the recent quarter, HIVE utilized part of its Bitcoin holdings to acquire new ASIC mining equipment under a favorable agreement. The company committed Bitcoin at a fixed price of $87,000 per BTC, while also securing the option to repurchase the same quantity at that price, thereby maintaining potential upside if Bitcoin values increase. This strategic move enabled HIVE to grow its mining fleet without incurring significant cash expenditures or diluting shares, all while preserving its exposure to Bitcoin. The agreement was executed when Bitcoin prices were under pressure due to global trade issues, providing HIVE with an opportunity to expand as the market stabilizes.
Strategic Use of Past Bitcoin Holdings for Future Growth
Currently, HIVE possesses 610 BTC and is focused on rebuilding its treasury while aspiring to achieve 25 EH/s of mining capacity. The company plans to fund its expansion by utilizing BTC mined during previous cycles, when prices were much lower, allowing it to retain the ability to reclaim Bitcoin as market prices rise. “With current Bitcoin mining rewards at 18 EH/s, HIVE would mine approximately 10 Bitcoin daily,” remarked Frank Holmes, Co-Founder and Executive Chairman of HIVE. “If Bitcoin surpasses $100,000, HIVE stands to generate nearly $1,000,000 in daily revenue this summer through our fully-funded growth initiatives. This progress illustrates HIVE’s potential to responsibly expand operations while utilizing green energy and supporting the Bitcoin network, ultimately enhancing long-term shareholder value.”
Commitment to Operational Excellence and Efficiency
Aydin Kilic, President and CEO of HIVE, emphasized that the rapid pace of deployment reflects the robustness of the company’s infrastructure strategy and its dedication to operational excellence. “We are also enhancing the efficiency of our global fleet,” Kilic stated. “We anticipate reaching 20 J/TH globally at 11.5 EH/s before the end of June 2025, and 19 J/TH at 18 EH/s by the end of summer 2025. This enhancement in fleet efficiency will require less energy to mine each Bitcoin, and as we progress with our 300 MW expansion in Paraguay, we expect our overall energy costs to decline. HIVE projects that its average Bitcoin production costs will decrease by 10-20% by autumn 2025, influenced by lower global energy prices and improved efficiency across its operations.”
