HIVE Digital TechnologiesHIVE

HIVE will share its latest quarterly numbers on November 13. Analysts expect a loss of about 16 cents per share on revenue of roughly 80 million dollars. The main thing to watch is how much progress the company is making in its goal to earn 100 million dollars a year from AI services, which would help steady the business against swings in Bitcoin prices.

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HIVE secured about 129 million dollars in financing to expand its data centers used for AI and high-performance computing. The loan carries a 9 percent fixed interest rate and covers 80 percent of the project's costs.

This is a step toward the company's goal of making its business less dependent on Bitcoin mining. By building out more space for high-powered graphics chips, HIVE is trying to grow a more predictable stream of revenue from AI customers. The fixed rate is helpful because it protects the company from rising borrowing costs while it finishes this expansion.

Source: Newsfile Corp

Canaccord Genuity kept its Buy rating on the stock this week. While the stock has been volatile, analysts generally expect it to reach a much higher price as it shifts from mining Bitcoin to renting out graphics chips for AI work. The average analyst target for the stock is currently $7, which is more than triple its current price.

Source: Canaccord Genuity

HIVE is partnering with ProCogia to run specialized AI software on its data centers. ProCogia will use HIVE’s infrastructure to host tools like CallYeah for healthcare and PolyKode for code migration, targeting small and medium-sized businesses across North America and Europe.

This is a step toward HIVE’s goal of making its business less dependent on Bitcoin mining. By hosting specific AI services for regulated industries, the company can build the more predictable, recurring revenue streams that we are looking for before becoming more confident in the stock.

HIVE has appointed Hubert Marleau to its board of directors. Marleau has a long background in Canadian capital markets and will help guide the company as it builds out its data centers for AI computing. This is a routine board addition, but it aligns with the company's goal of moving beyond Bitcoin mining. Having a director with deep experience in the Canadian financial industry may help as HIVE looks to fund and grow its infrastructure projects in the region.

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