HIVE Digital Technologies Ltd. announced a private offering of US$75 million in 0% exchangeable senior notes due 2031, with an option for an additional US$15 million available to initial purchasers within a limited period after issuance.
The proceeds will fund general corporate purposes, capital investments—including the purchase of graphics processing units—and the development of data‑center infrastructure. HIVE also plans to use the capital to fund capped‑call transactions with financial institutions, a strategy designed to limit potential dilution if the notes are converted into common shares.
In the third quarter of fiscal 2025, HIVE reported record revenue of US$93.1 million, a 219% year‑over‑year increase and a 7% quarter‑over‑quarter rise, while posting a net loss of US$91.3 million. The cash burn highlighted the need for additional financing to support the company’s expansion plans.
The financing underpins HIVE’s strategic pivot toward AI compute. The company is repurposing its Boden facility in Sweden into a GPU‑based high‑performance computing data center, and it has expanded its liquid‑cooled AI data‑center capacity in Canada from 4 MW to 16.6 MW in partnership with Bell Canada AI Fabric. HIVE’s dual‑engine model—combining Bitcoin mining with GPU‑accelerated AI computing—aims to leverage renewable energy and scale its operations efficiently.
HIVE has received conditional approval to list its common shares on the Toronto Stock Exchange, with trading expected to commence around April 30, 2026, subject to meeting listing requirements by June 30, 2026. The notes are guaranteed on a senior unsecured basis by HIVE, providing additional security for investors.
Investors reacted with concern over potential dilution and the company’s cash burn, while management emphasized the strategic benefits of the financing. "As we enter the next cycle and AI compute demand accelerates, our dual‑engine model allows us to fund growth organically while maximizing the value of renewable energy," said HIVE’s CEO and Executive Chairman.
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