- HIVE Digital is raising $75 million in zero-interest exchangeable notes to buy GPUs and build AI data centers.
- The bitcoin miner reported 219% revenue growth last quarter as its AI hosting business gained traction.
- It’s the latest in a growing wave of miners swapping volatile hashrate revenue for fixed AI hosting contracts.
HIVE Digital Technologies announced on April 15 that it plans to offer US$75 million in 0% exchangeable senior notes due 2031. A wholly-owned Bermuda subsidiary will issue the notes, fully guaranteed by HIVE on a senior unsecured basis. Initial buyers get an option to purchase an additional $15 million, which could push the total to $90 million.
Here’s the twist: the notes carry zero interest. Instead, investors get exposure to HIVE’s stock through the exchange mechanism—essentially betting that the company’s pivot from pure bitcoin mining to AI infrastructure will juice the share price before maturity. HIVE can settle conversions in cash, shares, or a mix, giving it plenty of balance-sheet flexibility.
The timing is pointed. Bitcoin is trading around $74,800, but miners are losing roughly $19,000 on every coin they produce at current difficulty levels. That’s not a rounding error—it’s an existential math problem for operators without cheap power or diversified revenue.
Why HIVE Is Betting on GPU Revenue Over Hashrate
HIVE’s strategy is straightforward: take the same power infrastructure and data center footprint that mines bitcoin and repurpose chunks of it for AI workloads. The company is moving toward a hybrid model—mining, cloud services, and AI compute running side by side. Net proceeds from the offering will fund GPU purchases, data center development, and general corporate purposes, according to the company’s filing.
The economics make the pitch easy. Mining revenue is denominated in BTC and subject to price swings, halving cycles, and difficulty adjustments. AI hosting contracts are denominated in dollars and typically locked in for years. One is a roller coaster; the other is a lease agreement. For a company like HIVE—with operational data centers and existing power purchase agreements—the marginal cost of adding GPU racks alongside ASICs is far lower than building from scratch.
This isn’t a one-company story. The entire bitcoin mining sector is watching its unit economics compress while AI compute demand explodes. Miners with cheap power, existing cooling infrastructure, and data center know-how are discovering they can serve both markets. As CoinDesk noted, the trend has accelerated through 2025 and into 2026 as hyperscalers scramble for every available megawatt of compute capacity.
HIVE isn’t starting from zero on this. The company launched its first GPU cluster on renewable energy in Paraguay in March and reported Q3 2026 revenue growth of 219% year-over-year, driven partly by AI hosting contracts. It’s targeting $100 million in annual revenue, currently operates at 25 EH/s of bitcoin mining capacity, and runs a Tier III+ AI data center. The notes have received conditional approval from the Toronto Stock Exchange, with trading expected around April 30, 2026.
