HIVE Digital Technologies, a cryptocurrency mining company listed in Canada and the United States, is raising $75 million by selling a type of corporate debt that can later be converted into company shares, with the money earmarked for buying specialised computer chips and expanding its data centre operations.
The fundraising comes as HIVE pivots parts of its business away from mining Bitcoin and towards providing computing power for artificial intelligence, a shift mirrored across the crypto mining industry as companies seek to capitalise on surging demand for AI processing capacity.
The debt, issued through a subsidiary in Bermuda, carries no regular interest payments and matures in 2031, meaning investors who buy the notes will not receive periodic income but could profit if HIVE's share price rises and they choose to convert.
HIVE said it may allow initial buyers to purchase up to an additional $15 million of the notes, potentially bringing the total raise to $90 million.
The company also plans to use some of the money to pay for a financial arrangement known as a capped call, a hedging mechanism designed to limit the number of new shares it would need to issue if investors convert their debt, protecting existing shareholders from having their stakes diluted.
HIVE's pivot towards AI is already underway.
The company is upgrading a facility in Boden, Sweden, turning it into a high-specification data centre capable of housing clusters of powerful graphics processing units, the chips that have become the backbone of AI development.
It has also begun deploying AI infrastructure in Latin America, with its first cluster of computing chips in Asunción, Paraguay, already processing early training tasks through the company's cloud computing platform.
The fundraising follows a strong set of financial results, with HIVE reporting record revenue of $93.1 million in its fiscal third quarter, a 219% increase compared with the same period a year earlier and a 7% rise on the previous quarter.
However, the company also posted a net loss of $91.3 million for the quarter, driven largely by accounting adjustments, including faster writedowns on equipment and non-cash changes to the value of its assets rather than operational shortfalls.
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Separately, HIVE has received conditional approval to move its Canadian stock market listing from the TSX Venture Exchange, which caters to smaller companies, to the main Toronto Stock Exchange, a step up that typically signals greater maturity and can attract a wider pool of investors.
The move is expected to take effect around the end of April, subject to the company meeting all listing requirements, including distributing its shares among a minimum number of public holders.
The recap
- HIVE to offer $75 million of 0% exchangeable notes due 2031.
- Initial purchasers may buy an additional $15 million within 13 days.
- TSX conditional approval requires meeting exchange requirements before listing.
