HIVE - HIVE Digital Technologies: Post-Halving Prospects (Rating Upgrade)

2024-04-26 09:05:59 ET

Summary

• Despite growing HPC service revenue, 96% of HIVE's revenue came from mining Bitcoin during the nine months ended 12/31.
• HIVE's declining monthly BTC production must be offset by higher prices or revenue from transaction fees.
• After a nearly $29 million private placement, HIVE's financial position entering the halving appears stable.

When I previously covered HIVE Digital Technologies ( HIVE ) for Seeking Alpha last July, I called the stock a "sell" and highlighted the company's marketing pivot from a Bitcoin ( BTC-USD ) mining stock to an AI infrastructure company. From my July piece:

As far as I can tell, the company's new-look website no longer appears to contain the words "Bitcoin" or "blockchain" on the homepage at all.

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