HIVE to raise $75M in exchangeable notes for GPUs, data centers

HIVE Digital Technologies plans to raise $75 million through a private offering of zero-percent exchangeable senior notes due 2031. The notes will be issued by a wholly owned subsidiary and offered to qualified institutional buyers, with an option to increase the size by $15 million. Final terms, including the exchange rate for conversion into common shares, will be set at pricing.

The notes will be exchangeable under specified conditions and may be settled in cash, common shares or a combination of both. They carry no regular interest, will not accrete and are unsecured obligations of the issuer fully guaranteed by HIVE.

Proceeds are expected to be directed to HIVE’s subsidiaries for general corporate purposes, including capital expenditures tied to graphics processing units and expansion of data center capacity. The company also plans to enter capped call transactions with financial counterparties to limit potential dilution if note holders convert to equity.

HIVE has received conditional approval to list its shares on the Toronto Stock Exchange. Trading on the TSX is expected to begin later this month, subject to meeting listing requirements.

Market trading reacted negatively to the announcement. HIVE’s Nasdaq-listed shares fell 11.5% on Thursday, while an industry tracker ETF declined 1.5%. HIVE is the tracker’s seventh-largest holding, representing about 4.89% of its weight.

The company has shifted part of its operations toward high-performance computing and AI workloads. In its most recent quarter it reported $93.1 million in revenue, up 219% year over year. In February, HIVE agreed to a two-year, $30 million deal to deploy 504 Nvidia B200 GPUs for enterprise AI cloud services.

Publicly traded bitcoin miners are expanding into AI and high-performance computing by repurposing or building data center capacity and leveraging access to low-cost power. Other miners that have announced moves into AI-focused compute or cloud services include MARA Holdings, Riot Platforms, Bitdeer Technologies, TeraWulf, Hut 8, CleanSpark and IREN. Separately, a former crypto miner turned AI infrastructure provider has secured multibillion-dollar agreements to supply large-scale AI computing capacity.

The offering is targeted at institutional investors and will include final pricing details at the completion of the private placement.