HIVE Digital Stock Rises on Bitcoin Surge, AI Pivot and Mining Milestones

Shares of blockchain and AI infrastructure provider HIVE Digital Technologies (HIVE) rose on Friday, boosted by Bitcoin’s record rally and a series of operational milestones in its mining business.

HIVE jumped nearly 6.5% to $2.47 per share, lifting its market capitalization to about $530 million. The stock has climbed more than 21% over the past month, in line with a broader rebound among Bitcoin (BTC) mining stocks.

The latest rally was fueled by news that Hive Digital surpassed 12 exahashes per second (EH/s) of Bitcoin mining hashrate, doubling its output since the start of the year. The company is currently generating over $250 million in annualized revenue and expects to reach $400 million once it scales up to 18 EH/s.

CEO Aydin Kilic said the company is now mining more than 6 BTC per day with an operating margin of roughly 55%.

HIVE ranks among the 20 largest public Bitcoin holders, with 2,201 BTC reported in its latest filing.

Related: Investors are balking at ‘excessive’ Bitcoin miner exec pay: VanEck

Average Bitcoin mining costs rise

The Bitcoin mining industry has faced significant operational challenges since the latest halving, which cut miners’ block rewards by 50%. This sharp drop in revenue, combined with high energy, equipment and overhead costs, has made profitability more difficult to sustain.

To stay ahead of these pressures, some miners have diversified their business models by expanding into artificial intelligence (AI) and high-performance computing (HPC) workloads. Early signs indicate that this pivot toward AI is paying off, notably for Core Scientific, which avoided financial collapse in part by shifting resources to AI operations. Core Scientific has since been acquired by CoreWeave in a $9 billion all-stock deal.

HIVE Digital told Cointelegraph last September that it had repurposed several GPUs for AI workloads — a move that significantly increased its revenue. The company highlighted Nvidia’s new H100 chips as a key driver of this growth.

Related: Tether plans to open-source Bitcoin mining OS; CEO says ‘no need’ for 3rd party vendors