HIVE Seeks $75M in Exchangeable Notes to Fund AI Data Centers

HIVE Digital Technologies is seeking to raise $75 million through a private offering of zero-interest exchangeable senior notes due 2031, with an option for investors to purchase an additional $15 million. The securities will be offered to institutional buyers and may be exchanged for cash, HIVE common shares, or a combination of both.

Proceeds will be routed through HIVE’s subsidiaries to finance capital expenditures, including purchases of graphics processing units and the development of data centers designed for artificial intelligence workloads.

HIVE has shifted parts of its business from bitcoin mining to high-performance computing and AI services. The company recently installed a GPU cluster in Paraguay that has started processing early-stage workloads related to large language model research.

The offering is structured as senior notes with no interest payments and a maturity date in 2031. HIVE plans to sell the notes as a private placement to institutional investors.

In its most recent quarter HIVE reported revenue of $93.1 million, more than three times the revenue a year earlier, and a net loss of $91.3 million. HIVE attributed the loss largely to depreciation tied to its Paraguay expansion and other non-cash accounting adjustments.

Industry data show miner bitcoin reserves declined from about 1.86 million to 1.80 million BTC in recent months, with several large operators selling portions of their holdings to cover costs and fund operations.

HIVE has received conditional approval to transfer its shares from the TSX Venture Exchange to the Toronto Stock Exchange. Trading on the larger exchange is expected to begin later this month, subject to final requirements.

The planned note issuance is intended to finance expanded GPU capacity and additional AI-focused data-center sites.