HIVE Digital Technologies (HIVE) announced on Monday a strategic shift away from Bitcoin mining in Sweden, citing regulatory and tax challenges, while aggressively expanding its artificial intelligence (AI) and high-performance computing (HPC) data center capacity in Canada.
The company stated it is reducing Bitcoin hashrate production at its 7-megawatt facility in Boden, Sweden, and exploring a broader phase-out of its ASIC-based mining model in the country. This decision follows operational uncertainty created by Swedish authorities, who imposed a security deposit requirement tied to disputed tax assessments. HIVE contends these are "misapplications of existing tax rules," despite receiving supportive opinions from multiple law firms, a tier-1 accounting firm, and local VAT academics.
The transition is already in progress at the Boden site, which is being upgraded to Tier-III HPC standards to support enterprise-grade GPU clusters. Construction is underway, with the facility expected to host clusters based on NVIDIA's GB300 GPU architecture for AI training and inference workloads.
Concurrently, HIVE is significantly expanding its AI infrastructure footprint in Canada through its BUZZ High Performance Computing subsidiary. In partnership with Bell Canada AI Fabric, the company plans to scale its capacity from 4 MW in Manitoba to 16.6 MW across two provinces. This includes a new colocation facility in British Columbia providing an immediate 5 MW of capacity, with an option to scale by an additional 7.6 MW.
HIVE estimates the new Canadian facilities could support the deployment of around 2,000 next-generation AI-optimized GPUs, complementing the roughly 2,000 GPUs at its existing Manitoba site. In total, the company has a near-term path to over 4,000 GPUs in Canada and a growth trajectory to more than 6,000 deployments. HIVE is targeting approximately $200 million in contracted annualized run-rate revenue from its HPC business by the end of its fiscal year on March 31, 2027.
This move reflects a broader trend among public Bitcoin miners diversifying revenue streams. While ASIC miners cannot run AI workloads, miners' power contracts, data center facilities, and cooling systems can be adapted for GPU clusters. Following the announcement, HIVE's stock traded up around 5.6% early Monday, though it remains down approximately 16.7% year-to-date.
