HIVE Digital Technologies (Nasdaq: HIVE) closed Friday at $4.07, marking a 51% gain from the prior week's close of $2.69. The rally came after the company revealed plans for a C$3.5 billion artificial intelligence data center near Toronto, which would utilize over 100,000 GPUs and is expected to come online in the second half of 2027.
U.S. markets are closed Monday for Memorial Day, with Nasdaq reopening Tuesday at 9:30 a.m. Eastern. Meanwhile, HIVE traded around C$5.78 on the Toronto Stock Exchange Monday, up from C$5.63 at the previous close, according to Investing.com. Bitcoin hovered near $77,200 early Monday, holding above its 50-day moving average, though analysts noted over $2 billion in spot bitcoin ETF outflows over the past two weeks as a cautionary signal.
The planned facility, developed through HIVE's BUZZ High Performance Computing unit, is a 320-megawatt AI "gigafactory" in the Greater Toronto Area. The company paid approximately C$58 million for 25 acres, which comes with a 320 MW power allocation. Executive Chairman Frank Holmes described AI as "the new industrial base," while CEO Aydin Kilic noted that HIVE has been "strategically land-banking by regional substations" and now holds over 850 MW of power globally.
Wall Street responded positively to the news. Cantor Fitzgerald raised its price target for HIVE to $4.60 from $3.00, maintaining an Overweight rating. The firm cited potential compute shortages in 2026 and 2027 that could make HIVE's energy and compute assets attractive to large cloud players.
The move aligns with a broader trend among former crypto miners repurposing their infrastructure for AI. Earlier this month, Hut 8 signed a 15-year lease for a Texas AI data center campus valued at $9.8 billion. HIVE's shift toward AI data centers aims to diversify its business beyond bitcoin mining, which remains a key revenue driver.
HIVE's latest quarterly results showed revenue jumping 219% year-over-year to $93.1 million, supported by a 25 EH/s mining base and stronger demand for BUZZ platform services. However, the company reported a GAAP net loss of $91.3 million, primarily due to accelerated depreciation and non-cash valuation adjustments.
Earlier this month, HIVE raised C$56.5 million through an at-the-market equity program, issuing new shares to fund growth. While this supports expansion, it also brings dilution for existing shareholders. The company has flagged risks including deployment delays, cost overruns, soft AI demand, GPU procurement issues, and slow network builds that could cause results to miss projections.
With Nasdaq trading resuming Tuesday, traders will watch HIVE's performance closely. The stock's 51% surge has raised expectations, but any delays or a bitcoin price decline could have an outsized impact. The rally is currently driven by bets that HIVE's power infrastructure will prove more valuable than the bitcoin it mines, but the company still needs to secure funding or a major tenant for the Ontario project to justify the valuation.
