Hive Digital Technologies plans to raise up to US$90 million through a private offering of 0% exchangeable senior notes due 2031 to fund artificial intelligence infrastructure and expand its data center network.
The notes, issued by wholly owned subsidiary Hive Bermuda 2026 Ltd., may be exchanged into cash, common shares, or a mix of both once pricing and conversion terms are set. Initial purchasers will have a 13-day option to buy up to an additional US$15 million of notes, potentially lifting total proceeds to US$90 million.
Use of proceeds and capped call structure
Hive said the funds will be directed toward:
- acquiring GPUs for AI and high-performance computing workloads
- expanding and upgrading data center facilities
- other general corporate purposes
To limit potential dilution from any future exchanges of the notes into equity, the company will enter into capped call transactions funded with existing cash. These options-based hedges are intended to reduce the impact on common shares or offset cash payments above the principal amount of the notes. A portion of the note proceeds may reimburse Hive for the cost of these transactions.
The notes will not pay periodic interest, making the exchange feature and potential equity upside a key element of their economic value.
TSX listing approval
Separately, Hive received conditional approval to move its common share listing from the TSX Venture Exchange to the Toronto Stock Exchange.
The company expects trading to transition around April 30. Final approval is contingent on Hive meeting all TSX listing requirements by June 30, 2026, including minimum shareholder distribution thresholds and other standard conditions.
Financial performance: strong revenue, sizable loss
The financing comes on the heels of a sharp increase in revenue and a sizeable net loss.
For the quarter ended December 31, 2025, Hive reported:
- revenue of US$93.1 million, up 219% from a year earlier and 7% from the prior quarter
- a net loss of US$91.3 million
The company said the loss was driven mainly by non-cash items, including accelerated depreciation tied to expansion in Paraguay and revaluation adjustments on its assets.
Shift from bitcoin mining to AI and high-performance computing
Hive is accelerating its pivot from traditional bitcoin mining to high-performance computing and AI workloads.
In March, the company began winding down ASIC-based bitcoin mining at its Boden facility in Sweden amid local tax disputes. The site is being converted into a Tier-III data center designed to host GPU clusters.
In Latin America, Hive has expanded its infrastructure with a new GPU cluster in Asunción, Paraguay. That site is handling early-stage training tasks for large language model research through the company’s BUZZ AI Cloud platform.
Market reaction and trading activity
On Wednesday, Hive’s shares closed at US$2.47 on the Nasdaq, up 2.1% on trading value of about US$42 million, above the stock’s average daily trading value of roughly US$24.6 million.
Traders are likely to focus on how quickly Hive can deploy the proceeds into GPU procurement and data center build-outs, as well as how its AI and high-performance computing revenues evolve alongside the TSX uplisting process.
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