HIVE Digital Technologies is raising $75 million through a zero-interest note offering to fund AI infrastructure. The move reflects a broader pivot among bitcoin miners toward high-performance computing as margins tighten in traditional mining.
The company said Wednesday it will issue 0% exchangeable senior notes due 2031 via its subsidiary, HIVE Bermuda 2026 Ltd. Proceeds will support data center expansion and graphics processing unit acquisitions, alongside general corporate purposes. Initial buyers may purchase an additional $15 million within 13 days, while the notes can convert into cash, shares, or both under defined terms.
Are Bitcoin Miners Pivoting Toward AI Compute?
HIVE’s strategy aligns with a wider industry trend. Miners are increasingly reallocating capital toward AI workloads, where demand for GPU capacity continues to grow. The company has already begun deploying infrastructure in Paraguay, with its first GPU cluster processing early-stage large language model training workloads.
The shift follows strong revenue growth but persistent profitability challenges. HIVE reported $93.1 million in revenue for the quarter ending Dec. 31, 2025, up 219% year-over-year. Yet it posted a $91.3 million net loss, largely due to depreciation tied to expansion and non-cash adjustments. By comparison, other miners have also reported rising costs linked to scaling infrastructure beyond ASIC-based systems.
HIVE is also restructuring its geographic footprint. The company is phasing down ASIC mining at its Boden facility in Sweden amid tax disputes, while upgrading the site into a Tier-III data center designed for GPU clusters. It has received conditional approval to uplist to the Toronto Stock Exchange, with trading expected to transition by late April pending requirements.
The financing structure includes capped call transactions aimed at limiting shareholder dilution upon conversion. Shares closed at $2.47 on Nasdaq, with trading volume exceeding recent averages, according to company data.
The next catalyst will be whether AI-driven revenue can offset declining mining margins as HIVE scales its compute infrastructure across multiple regions.
