Hive Digital Technologies (HIVE) is continuing its transformation from a pure-play crypto miner to a high-performance computing (HPC) services provider.
What began with a fleet of 400 GPUs managed by two employees is now scaling toward a $100 million annual revenue. The company is leveraging advanced AI chips, including Nvidia’s H100s and the forthcoming Blackwell GPUs, to drive this growth.
Co-founder and Executive Chairman Frank Holmes and CEO Aydin Kilic elaborated on Hive’s strategy in an exclusive interview with Cointelegraph at the Nasdaq Stock Exchange headquarters in New York City, where the company rang the closing bell on Thursday.
The executives detailed Hive’s ongoing diversification into AI. Like other miners, Hive identified AI as a potentially more profitable use of energy than Bitcoin (BTC) when measured in kilowatt-hours. This insight has led several crypto mining companies to incorporate AI processing into their infrastructure, especially to counter declining profitability following the 2024 halving.
According to Holmes, Hive was the first publicly traded miner to pivot into HPC in 2022. By the second quarter of 2023, HPC revenue appeared on the company’s income statement for the first time, and it has since grown to a $20 million annual run rate, with a goal of reaching $100 million by 2026.
Still, scaling HPC capacity must be approached carefully, given the ongoing “scramble for electricity and land,” said Kilic.
In response, Hive recently acquired a site near Pearson International Airport in Toronto, Canada, securing a strategic location capable of scaling up to 7.2 megawatts of HPC power.
The choice of Toronto was intentional as it places Hive at the heart of a robust pipeline of AI talent, including connections to the University of Toronto and Canada’s AI ecosystem.
Despite the capital shift, Hive has maintained positive gross mining margins every quarter, even during Bitcoin’s steep downturn in 2022. Kilic credits this to Hive’s tight operational structure and continued investment in hardware, achieving global energy efficiency as low as 17.5 joules per terahash (J/TH).
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