HIVE Digital Technologies (HIVE), a Bitcoin-mining company expanding into artificial intelligence (AI) infrastructure and GPU cloud services, emerged as a notable market mover on Monday, Aug. 17, with shares jumping 14.13% after the company announced a landmark $350 million, five-year GPU cloud services agreement.
The contract, secured through wholly owned subsidiary BUZZ High-Performance Computing, marks HIVE Digital’s largest AI deal to date and provides a significant catalyst for the stock.
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The agreement is expected to generate approximately $70 million in annualized revenue, while BUZZ HPC is projected to reach roughly $180 million in annualized revenue, including $35 million of active realized ARR and $145 million of contracted ARR expected to come online through Q4 FY2026.
To support the contract, HIVE Digital plans to deploy 2,016 Nvidia Corporation's (NVDA) Blackwell Ultra GPUs in GB300 NVL72 rack-scale systems, with operations expected to begin later this year. The company will retain ownership of the AI infrastructure after deployment, creating a valuable asset base while benefiting from predictable, contracted cash flows.
Moreover, the approximately $185 million deployment capex will be supported by a roughly $35 million upfront deposit, earlier financing initiatives, and additional equipment financing. In summary, the contract reinforces HIVE Digital’s strategic shift toward AI and high-performance computing (HPC) infrastructure.
About HIVE Digital Stock
Headquartered in San Antonio, Texas, HIVE develops and operates green energy-powered data centers across Bermuda, Paraguay, Sweden, and Canada. With a market cap of nearly $746.8 million, it focuses on digital currency mining and sales, HPC hosting and computational infrastructure serving blockchain networks.
On the price performance front, HIVE stock has risen 16.3% over the last 52 weeks and 7.8% year-to-date (YTD). Shares also gained 1.46% over past five trading sessions, after the company announced the $350 million agreement and released its earnings results, extending an already strong run.
www.barchart.com On the valuation front, HIVE stock is currently trading at 2.77 times sales. The multiple sits below the industry average and its own five-year average, leaving the stock at a valuation discount that could interest investors expecting stronger growth from its HPC and GPU cloud operations.
A Closer Look at HIVE Digital’s Q1 Earnings
On Aug. 15, HIVE Digital reported Q1 FY2027 revenue of $79.1 million, marking a 73.5% year-over-year (YOY) increase. Digital currency mining remained the company’s biggest revenue source, generating $72.1 million after its revenue rose 76.6% YOY.
HPC also made solid progress during the quarter, with BUZZ revenue rising 46.7% YOY to $7.1 million. The increase followed the deployment of an NVIDIA B200 GPU cluster in Manitoba, while strong demand and pricing across GPU marketplaces provided another useful source of growth.
Higher revenue also translated into better operating performance. Gross operating margin reached $24.2 million, while Adjusted EBITDA came in at $13.4 million, representing 17% of revenue. HIVE still reported a $142.9 million net loss and a loss per share of $0.54, adding another wrinkle to an otherwise strong quarter.
But the gap between rising revenue and continued losses shows HIVE Digital still has considerable work ahead before its expansion begins translating into stronger bottom-line results. As a result, the company is placing greater emphasis on AI and HPC.
The company ended the quarter with approximately $110 million of active and contracted GPU Cloud ARR, supported by a three-year, approximately $225 million sovereign AI agreement with Bell AI Fabric supporting Cohere.
Moreover, management targets approximately $200 million of GPU Cloud ARR by Q4 CY2026, subject to market conditions and successful deployment. Plus, its longer-term target stands at approximately $700 million of total HPC ARR by year-end 2028.
On the other hand, analysts expect Q2 FY2027 loss per share to widen 850% YOY to $0.19. Full-year FY2027 loss per share is also projected to widen 32.2% from the prior year to $0.78. However, analysts expect an increase per share by 46.15% YOY to -$0.42 in FY2028.
What Do Analysts Expect for HIVE Digital Stock?
Canaccord Genuity analyst Joseph Vafi has kept a “Buy” rating and a $10 price target on HIVE stock, backing the company’s shift from crypto mining toward HPC and GPU cloud services.
The broader analyst view also leans strongly bullish, assigning the stock an overall rating of “Strong Buy.” Among nine analysts covering the name, seven recommend a "Strong Buy," while two suggest that investors "Hold."
To that end, the average price target of $7.06 implies potential upside of 154.9%. Meanwhile, the Street-High target of $10 points to a possible gain of 261% from current levels.
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www.barchart.com On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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