Hive Digital is changing its business plan by switching from standard bitcoin mining to building data centers for artificial intelligence (AI). This change was made because Ethereum switched to a proof-of-stake system in 2022. This made the company rethink the role of its Nvidia GPUs.
These GPUs were bought with $66 million in 2021 to mine cryptocurrency, but they are now being used for AI jobs, which brings in a lot more money. The head of the company, Aidan Killick, says that the GPUs can make up to $1 an hour from AI tasks but only $0.12 an hour from crypto mining.
They talked with Hive leaders Frank Holmes and Aidan Killick and gave more information about how the company is improving its infrastructure in a planned way to take advantage of the growing need for AI computing power. When Nvidia’s new H100 chips are installed, we think that sales will go up even more, possibly hitting $2.50 per hour.
To help with this change, Hive is improving its data centers in New Brunswick, Canada, and Sweden by adding more power backups and better cooling systems. The business is also actively looking for other energy sources to make sure that prices stay low and the power stays stable.
Hive also said it was going to build a 100-megawatt mining plant in Paraguay, which would be its first business in that country. Because Paraguay depends on hydroelectric power, Killick sees this move as a great chance that fits with the company’s commitment to environment and grid security.
Even though Hive focuses on AI, it is still committed to Bitcoin mining. Holmes said that Bitcoin will still be important in the long run, even though the AI field is important for the business. The company is still trying to get the best return on investment (ROI) for its mining equipment.
Hive has had healthy gross mining margins for the past three years, using cash flow to fund its growth without giving up a lot of shareholder stock. Hash prices have hit all-time lows since Bitcoin was split in half, making the situation difficult. Killick calls it a “soft landing.” He says that the profitability has been kept up by the effectiveness of newer mining tools like the Bitmain S21.
Hive wants to get 2% to 3% of the global Bitcoin network with its big plans to grow in Latin America. Holmes said that the company is dedicated to making “green” and “sustainable” coins because they think they will be worth more in the long run.
