Mining company HIVE acquires Turis AB, expanding into AI and green energy recycling in addition to Bitcoin mining.

Canadian mining company HIVE, which went public back in 2017, recently announced the acquisition of Turis AB, a data center facility located in Boden, Sweden. This acquisition, coupled with their upcoming next-generation ASIC servers, is aimed at increasing Bitcoin production. Rebranded as Hive Digital Technologies in July, the company plans to launch HIVE Cloud to the public by the end of the fourth quarter. HIVE Cloud will be used for artificial intelligence and high-performance computing applications, assisting small to medium-sized enterprises or other cloud service providers in developing their own AI tools to gain a competitive edge in the era of AI.

Data Centers Located in Three Cold Northern Countries

HIVE operates data centers in cold climates to facilitate heat dissipation and utilizes low-cost green energy, mainly from hydroelectric power, in northern countries to build energy data centers.

• Iceland: Operational in Iceland since 2017, the current installed capacity is approximately 10 megawatts.
• Sweden: Most of the GPUs are concentrated here, and HIVE has its own wind turbines in this location. Recently, they acquired adjacent Turis AB to increase Bitcoin mining output.
• Canada: Operates a 30-megawatt data center in Lachute, Quebec, and another 70-megawatt data center in New Brunswick.

Recycling and Reusing Waste Heat

To maximize the use of waste heat, HIVE utilizes heat recovery in Lachute, Canada, to provide heating for a 200,000-square-foot swimming pool factory.

In Sweden, they are developing a greenhouse to convert energy from the HIVE Boden facility to heat a 90,000-square-foot greenhouse for growing tomatoes and cucumbers, bringing local produce to northern Sweden. The project is expected to be completed in the third quarter of 2024.

Average Daily Production of 9.2 Bitcoins

HIVE's two main business activities are mining Bitcoin and providing GPU cloud computing.

Over the past year, HIVE has produced 3,220 Bitcoins, averaging 9.2 BTC per day, with a hashrate of 4.3 EH/s, expected to increase to 6.0 EH/s by 2024.

To purchase high-performance ASIC chips, HIVE sold 1,605 Bitcoins, holding a total of 1,738 Bitcoins as of the end of September 2023, compared to 3,342 Bitcoins in the same period last year.

Launch of HIVE Cloud, Venturing into AI

In addition to mining, HIVE announced in July that the company officially changed its name to Hive Digital Technologies from Hive Blockchain. This is to better reflect that Hive's GPU computing power is no longer solely focused on mining but will also focus on driving projects that promote AI development, such as ChatGPT and cloud computing services, to support the development of the Web3 ecosystem. They are expected to launch HIVE Cloud to the public by the end of the fourth quarter, for AI and high-performance computing applications. Users can access and rent different levels of GPU computing power, even renting a single GPU, to help small and medium-sized enterprises or other cloud service providers develop their own AI tools and gain a competitive advantage in the AI era.

Insufficient Revenue, HIVE Stock Price Continues to Decline

According to HIVE's third-quarter financial report, its revenue still cannot surpass direct costs, including operating maintenance expenses and depreciation costs of mining machines. The net loss for the third quarter of 2023 was $24.54 million. Although it reduced from a loss of $33.65 million in the same period last year, it is evident that, at the current Bitcoin price, it is not enough to cover basic operating costs.

HIVE's stock price has also continued to decline, dropping from a high of $6.84 in mid-July this year. However, perhaps the base period at the beginning of the year was too low, as it has also risen by 93% year-to-date.