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Source: Hive Digital Technologies<\/a><\/p>\nThe executives detailed Hive\u2019s ongoing diversification<\/a> into AI.\u00a0Like other miners, Hive identified AI as a potentially more profitable use of energy than Bitcoin (BTC<\/a>) when measured in kilowatt-hours. This insight has led several crypto mining companies to incorporate AI processing into their infrastructure, especially to counter declining profitability following the 2024 halving.<\/p>\n According to Holmes, Hive was the first publicly traded miner to pivot into HPC in 2022. By the second quarter of 2023, HPC revenue appeared on the company\u2019s income statement for the first time, and it has since grown to a $20 million annual run rate, with a goal of reaching $100 million by 2026.<\/p>\n Still, scaling HPC capacity must be approached carefully, given the ongoing \u201cscramble for electricity and land,\u201d said Kilic.\u00a0<\/p>\n In response, Hive recently acquired a site near Pearson International Airport in Toronto, Canada, securing a strategic location capable of scaling up to 7.2 megawatts of HPC power.\u00a0<\/p>\n The choice of Toronto was intentional as it places Hive at the heart of a robust pipeline of AI talent, including connections to the University of Toronto and Canada\u2019s AI ecosystem.<\/p>\n Despite the capital shift, Hive has maintained positive gross mining margins every quarter, even during Bitcoin\u2019s steep downturn in 2022<\/a>.\u00a0Kilic credits this to Hive\u2019s tight operational structure and continued investment in hardware, achieving global energy efficiency as low as 17.5 joules per terahash (J\/TH).<\/p>\n Magazine: AI may already use more power than Bitcoin \u2014 and it threatens Bitcoin mining<\/a><\/p>\n Hive stock is still performing as a Bitcoin proxy<\/p>\n Despite Hive\u2019s pivot into higher-margin markets like high-performance computing, its stock continues to behave like a Bitcoin proxy, limiting its valuation upside, according to Kilic and Holmes.<\/p>\n Following the company\u2019s closing bell ceremony at Nasdaq, Hive shares posted a modest gain and have rebounded 31% over the past month. However, year-to-date, the stock remains down 27%, trading around $2.23 with a market capitalization of approximately $475 million.<\/p>\n Even with this volatility, analysts have largely issued positive coverage on Hive, signaling that the stock is undervalued at current levels.\u00a0In February, H.C. Wainwright issued a \u201cBuy\u201d rating with a $10 price target. Recently, Canaccord Genuity reiterated its \u201cBuy\u201d rating, assigning a $9 target.<\/p>\n Rosenblatt Securities analyst Chris Brendler also sees upside, citing Hive\u2019s expanding HPC footprint and growing operations in Paraguay.\u00a0<\/p>\n As Cointelegraph reported<\/a>, Hive acquired its Paraguay facility from Bitfarms in January for $85 million. Kilic later told Cointelegraph that Hive sees Paraguay as a long-term investment<\/a>, touting the country\u2019s low-cost hydro power, geopolitical stability and government support.<\/p>\n Although Hive has expanded beyond its original mandate as a Bitcoin miner, it still views BTC as a core long-term strategic asset.\u00a0<\/p>\n Earlier this month, Hive announced it had doubled its daily Bitcoin production<\/a> to over six BTC. According to Holmes, that figure is expected to double again to 12 BTC by Thanksgiving, representing roughly 3% of the global Bitcoin network.<\/p>\n Related: Hive doubles down on BTC hodl strategy amid miner equity dilution, debt reliance<\/a><\/p>\n In January, Cointelegraph reported that several miners were adopting a Bitcoin treasury strategy<\/a> to capitalize on anticipated price appreciation, strengthen their balance sheets and hedge against currency risk. This trend emerged alongside a broader wave of industry consolidation that began in mid-2024, driven in part by post-halving economics and the pivot toward AI.<\/p>\n Since the second quarter of 2024, M&A transactions have increased steadily, according to data from Architecture Partners.\u00a0<\/p>\n Among mining and staking firms, there were 10 transactions in the first quarter of 2025 valued at $188 million. In the quarter before that, eight transactions valued at $266 million were completed.<\/p>\n The most notable merger was finalized this month, with CoreWeave acquiring Core Scientific<\/a> in an all-stock deal valued at $9 billion. The acquisition came more than a year after CoreWeave first expressed interest in the Bitcoin miner, whose board initially rejected the offer as undervalued.<\/p>\n Although CoreWeave was initially a crypto miner<\/a> before transitioning to an AI infrastructure provider, its acquisition of Core Scientific doesn\u2019t necessarily mean it\u2019s returning to the mining industry.<\/p>\n In announcing the Core Scientific acquisition, CoreWeave signaled its intention to repurpose the miner\u2019s assets for HPC or divest its crypto mining business entirely.\u00a0<\/p>\n Other notable M&A deals in the mining industry include Marathon Digital\u2019s acquisition of Generate Capital mining sites<\/a>, Hut 8\u2019s acquisition of Validus Power assets<\/a>, CleanSpark\u2019s takeover of GRIID Infrastructure<\/a> and Bitfarms\u2019 buyout of Stronghold Digital Mining<\/a>.<\/p>\n![](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/07\/01982e11-b6a5-7794-82e9-0a52f8d6d0a0.jpeg\" "\\"\\"\/")
Aydin Kilic (left) and Sam Bourgi in New York. Source: Cointelegraph<\/p>\n![](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/07\/01982e11-bb08-7aa8-8f21-a9e1c95226d5.png\" "\\"\\"\/")
HIVE stock\u2019s year-to-date performance. Source: Yahoo Finance<\/a>Bitcoin mining M&A activity on the rise<\/p>\n![](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/07\/01982e11-c00a-789e-9e1e-8555fb1e4a7b.jpeg\" "\\"\\"\/")
Hive Digital is a top-20 Bitcoin treasury company, with 2,201 BTC on its balance sheet. Source: BitcoinTreasuries.NET<\/a><\/p>\n![](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/07\/01982e11-c503-7823-982e-b014502a7f51.png\" "\\"\\"\/")
Crypto mining sees an upsurge of M&A activity. Source: Architecture Partners<\/a><\/p>\n