Hive Digital Technologies Ltd. (HIVE) reported a 36% increase in sales for the second quarter of 2024. The Canadian Bitcoin miner’s expansion into providing computational power for artificial intelligence (AI) applications largely contributed to this growth.
The company achieved revenues of approximately $32 million, up from $23.5 million during the same period the previous year. While some of these gains stemmed from Hive’s core cryptocurrency mining activities, the company also recorded around $2.6 million in sales from its new high-performance computing platform. This strategic move is part of Hive’s rebranding effort, announced on July 12, 2023.
The company changed its name from Hive Blockchain Technologies to Hive Digital Technologies to better reflect its pivot towards hosting AI and other advanced applications. Hive’s diversification aims to leverage its extensive Nvidia graphics processing unit (GPU) cards inventory. The company plans to build high-performance computing clusters that deliver substantial computational power, particularly suited for AI applications.
Q2 sales driven by AI expansion
Despite this shift, Hive maintains that it “expects to maintain a strong presence in Bitcoin mining.”
The mining industry has faced significant challenges due to the volatility of BTC prices and the April 2020 “halving” event. This event reduced mining rewards from 6.25 BTC to 3.125 BTC per 210,000 blocks.
In response, Bitcoin miners like Hive have adjusted their business models and invested in next-generation equipment to improve mining efficiency. Beyond AI computing, Hive is exploring additional revenue streams. These include renting GPU server clusters via marketplace aggregators and developing a new cloud service offering.
Hive operates nine data centers across Canada, Sweden, and Iceland. The company highlighted potential risks from geopolitical tensions, such as the ongoing conflict in Ukraine, which has disrupted European energy supplies. However, Hive noted that its pre-emptive forward energy agreements for electricity purchases have helped buffer the increased energy prices resulting from the conflict.
In 2022, Hive sold its Helios Bitcoin mining facility in Dickens County, Texas, to asset manager Galaxy Digital for $65 million. The company continues to explore various opportunities and investment strategies to enhance its market position in the evolving digital and computational landscape.
