Shares of blockchain and AI infrastructure provider HIVE Digital Technologies (HIVE) rose on Friday, driven by Bitcoin's record high and a series of operational milestones in its mining business.
HIVE rose nearly 6.5% to $2.47 per share, raising its market capitalization to around $530 million. The shares have risen over 21% in the last month, in line with a broader recovery among Bitcoin (BTC) mining stocks.
The latest surge was driven by news that Hive Digital surpassed 12 exahashes per second (EH/s) of Bitcoin mining hashrate, doubling its production since the beginning of the year. The company is currently generating over $250 million in annualized revenue and expects to reach $400 million as it increases its capacity to 18 EH/s.
CEO Aydin Kilic stated that the company is now mining more than 6 BTC per day with an operating margin of around 55%.
HIVE is among the top 20 public holders of Bitcoin, with 2,201 BTC reported in its latest presentation.
Average Bitcoin mining costs are rising
The Bitcoin mining industry has faced significant operational challenges since the last halving, which cut miners' block rewards by 50%. This sharp decline in revenue, combined with high energy costs, equipment, and overhead expenses, has made profitability harder 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 shift to AI is paying off, notably for Core Scientific, which avoided financial collapse in part by redirecting resources to AI operations. Core Scientific was acquired by CoreWeave in a $9 billion stock deal.
HIVE Digital told Cointelegraph last September that it had repurposed several GPUs for AI workloads — a move that significantly boosted its revenue. The company highlighted Nvidia's new H100 chips as one of the main drivers of this growth.
