Alvin Lang
Apr 16, 2026 21:38
HIVE Digital plans zero-interest notes offering to fund GPU expansion as Bitcoin miners accelerate pivot toward AI infrastructure.
HIVE Digital Technologies shares tumbled 11.5% Thursday after the company announced plans to raise $75 million through zero-interest exchangeable notes, with proceeds earmarked for GPU purchases and data center expansion.
The offering, due 2031, will be issued through a wholly owned subsidiary to qualified institutional buyers, with an option to increase the raise to $90 million. HIVE can settle future conversions in cash, shares, or both—a structure designed to give the company flexibility while limiting immediate dilution through planned capped call transactions.
Market reaction outpaces sector decline
The stock’s 11.5% drop far exceeded the broader mining sector’s 1.5% decline, as measured by the CoinShares Bitcoin Mining ETF. HIVE represents the seventh-largest holding in that fund at 4.89% weight.
Dilution concerns likely drove the selloff, though the company’s AI pivot has been delivering results. Third-quarter revenue hit $93.1 million—up 219% year over year—despite weaker Bitcoin prices and rising network difficulty. In February, HIVE signed a two-year, $30 million deal to deploy 504 Nvidia B200 GPUs for enterprise AI cloud services.
The company also disclosed conditional approval to list on the Toronto Stock Exchange, with trading expected later this month.
The great mining migration continues
HIVE was among the first Bitcoin miners to pivot toward high-performance computing back in 2022, and the rest of the industry has followed. The list of miners chasing AI workloads now reads like a who’s who of the sector: MARA Holdings, Riot Platforms, Bitdeer, TeraWulf, Hut 8, CleanSpark, and IREN have all made significant moves.
CleanSpark agreed in January to buy 447 acres in Texas for a 300-megawatt AI data center, expandable to 600 MW. MARA acquired a majority stake in French computing company Exaion in February. TeraWulf landed a Google-backed AI hosting deal.
Then there’s CoreWeave—the pivot success story. The former crypto miner shifted to HPC in 2019 and just announced a $6 billion agreement with Jane Street for AI computing capacity, plus a $1 billion equity investment. Days earlier, it signed a multi-year deal with Anthropic to support Claude’s large language models.
Why miners have an edge
The logic behind the pivot is straightforward: Bitcoin miners already have what AI companies desperately need. Access to cheap power. Existing data center infrastructure. Experience managing heat-intensive computing at scale.
Whether that translates to sustainable competitive advantage remains the open question. For now, investors appear skeptical that HIVE’s $75 million raise—even at 0% interest—justifies the potential dilution, especially with shares already under pressure from broader crypto market weakness.
The offering terms, including the exchange rate, will be finalized at pricing.
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