HIVE Digital Technologies said it plans to raise $75 million in a private offering of 0% exchangeable senior notes due 2031 to fund GPU purchases, data center development and other capital investments. The notes will be issued by a wholly owned subsidiary and offered to qualified institutional buyers, with an option to increase the size by an additional $15 million. Final terms, including the exchange rate, will be set at pricing.
The notes will be exchangeable under certain conditions, and HIVE may satisfy conversions in cash, common shares or a combination of both. They will not bear regular interest, will not accrete and are unsecured obligations of the issuer, fully guaranteed by HIVE.
HIVE’s Nasdaq-listed shares (HIVE) fell 11.5% on Thursday, while the CoinShares Bitcoin Mining ETF (WGMI) declined about 1.5%, according to Yahoo Finance. HIVE is the seventh-largest holding in WGMI, with a weight of 4.89%.
Proceeds will be directed to the company’s subsidiaries for general corporate purposes, notably capital expenditures tied to graphics processing units and data center expansion. HIVE also plans to enter capped call transactions with financial counterparties to limit potential dilution from future conversions.
Separately, HIVE said it has received conditional approval to list its shares on the Toronto Stock Exchange, with trading expected to begin later this month subject to meeting listing requirements.
HIVE was among the first Bitcoin miners to pivot into high-performance computing in 2022, a move that is starting to appear in its financial results. In the third quarter, the company reported $93.1 million in revenue, up 219% year over year, despite weaker Bitcoin prices and rising network difficulty. In February, HIVE signed a two-year, $30 million agreement to deploy 504 Nvidia B200 GPUs for enterprise AI cloud services.
Mining companies lean into AI data center pivot
The fundraising comes as publicly traded Bitcoin miners increasingly expand into high-performance computing and AI workloads. Firms including MARA Holdings, Riot Platforms, Bitdeer Technologies, TeraWulf, Hut 8, CleanSpark and IREN have all moved into AI and HPC, leveraging existing access to power and data center infrastructure.
In January, CleanSpark agreed to buy 447 acres in Texas to build a 300-megawatt AI-focused data center, with plans to expand to 600 MW. In February, MARA acquired a majority stake in French computing infrastructure company Exaion as part of its push into AI and cloud services. CoreWeave, which began as a crypto miner and pivoted toward HPC in 2019, has become a major AI cloud provider; it recently announced a $6 billion agreement with Jane Street to supply AI computing capacity across its data centers alongside a $1 billion equity investment from Jane Street, days after signing a multi-year deal with Anthropic to support its Claude models.
The shift extends beyond traditional miners. Renewable-powered data center developer Soluna Holdings moved to consolidate ownership of its Texas campus this week, positioning the site for a transition toward AI-focused computing.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
