HIVE Digital (HIVE, Financial) Technologies is significantly ramping up its Bitcoin mining operations following the acquisition of Bitfarms’ Yguazu assets in Paraguay. With the first phase, a 100 MW hydro-powered facility, now complete, HIVE has exceeded a global Bitcoin mining hashrate of 7 Exahash per second, marking a 10% monthly increase in peak hashrate. Further expansion is anticipated as additional ASIC miners are deployed.
Currently, HIVE reports a total Bitcoin mining hashrate of 7.3 EH/s. This growth is bolstered by both the newly acquired Bitfarms infrastructure and HIVE’s proprietary developments. The company is adding approximately 1 EH/s of capacity each month and plans to double this rate to 1 EH/s every two weeks as new equipment becomes operational. HIVE aims to reach its Phase 1 objective of 11.5 EH/s by June 2025, underscoring its commitment to rapid expansion.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for HIVE Digital Technologies Ltd (HIVE, Financial) is $7.50 with a high estimate of $11.00 and a low estimate of $4.00. The average target implies an upside of 309.84% from the current price of $1.83. More detailed estimate data can be found on the HIVE Digital Technologies Ltd (HIVE) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, HIVE Digital Technologies Ltd's (HIVE, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for HIVE Digital Technologies Ltd (HIVE, Financial) in one year is $2.54, suggesting a upside of 38.8% from the current price of $1.83. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the HIVE Digital Technologies Ltd (HIVE) Summary page.
HIVE Key Business Developments
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- HIVE Digital Technologies Ltd (HIVE, Financial) reported $29 million in revenue with a 21% operating margin for the quarter.
- The company has 2,805 Bitcoin on the balance sheet, mined with green and clean energy, and unencumbered by debt.
- HIVE achieved an annualized ROIC of 37% this quarter, leading the industry.
- The company plans to expand its mining hash rate from 6 to 25X by September 2025, enhancing its operating capacity.
- HIVE is leading the industry in growth for calendar 2025, with a 4X increase in hash rate expected.
Negative Points
- The gross mining margin decreased to 21% from 36% in the same quarter last year, impacted by the Bitcoin halving event.
- HIVE's revenue of $29.2 million was slightly lower than the previous year's quarter of $31.3 million.
- The company reported a net loss of $0.03 per share for the nine months ended December 31, 2024.
- HIVE's gross operating margin decreased to 21% in the most recent quarter compared to 36% in the prior year.
- The company faces challenges in maintaining low SG&A expenses while scaling operations significantly.
