HIVE Digital Technologies said it will raise $75 million through a private placement of 0% exchangeable senior notes due 2031, issued by a wholly owned subsidiary and offered to qualified institutional buyers. The company has an option to increase the offering by up to $15 million. Final terms, including the exchange rate, will be determined at pricing.
The notes will be exchangeable under specified conditions and HIVE may settle any conversions in cash, common shares or a combination of both. They carry no regular interest, do not accrete, are unsecured obligations of the issuer and are fully guaranteed by HIVE.
Following the announcement, HIVE’s Nasdaq-listed shares (ticker: HIVE) fell about 11.5% on Thursday. The CoinShares Bitcoin Mining ETF (WGMI) slipped roughly 1.5% over the same session; HIVE is the ETF’s seventh-largest holding with a weight near 4.89%.
Proceeds from the offering are earmarked for HIVE’s subsidiaries for general corporate purposes, with an emphasis on capital expenditures tied to graphics processing units and expansion of data center capacity. To reduce potential dilution from future note conversions, HIVE also intends to execute capped call transactions with financial counterparties.
Separately, HIVE said it has received conditional approval to list its shares on the Toronto Stock Exchange. Trading on the TSX is expected to begin later this month, subject to the company meeting the exchange’s listing requirements.
HIVE began pivoting from pure Bitcoin mining into high-performance computing (HPC) in 2022, a strategic shift that has started to show in its results. In the third quarter, the company reported $93.1 million in revenue, up 219% year over year despite softer Bitcoin prices and increasing network difficulty. In February, HIVE signed a two-year, $30 million agreement to deploy 504 Nvidia B200 GPUs for enterprise AI cloud services.
The financing comes amid a broader industry move by publicly traded miners into AI and HPC workloads, leveraging existing power access and data center footprints. Companies such as MARA Holdings, Riot Platforms, Bitdeer Technologies, TeraWulf, Hut 8, CleanSpark and IREN have announced similar pushes into AI-focused infrastructure.
Recent examples include CleanSpark’s January agreement to acquire 447 acres in Texas to build an initial 300-megawatt AI data center with plans to expand to 600 MW, and MARA’s February purchase of a majority stake in French computing infrastructure firm Exaion as part of its cloud and AI strategy. CoreWeave, which pivoted from crypto mining to HPC in 2019, has become a significant AI cloud provider and recently disclosed a multibillion-dollar capacity agreement and a large equity investment from Jane Street, along with a multi-year pact to support Anthropic’s Claude models. Renewable-powered developer Soluna Holdings has also been consolidating its Texas campus to prepare the site for AI-focused computing.
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