HIVE Pushes Hash Rate Higher, Sharpens Focus On AI

Shares of HIVE Digital Technologies Ltd HIVE have lost around 2% year to date.

The company is among the top 10 miners and the market seems to be "under-appreciating the coming hash rate growth inflection," according to Cantor Fitzgerald.

Analyst Brett Knoblauch initiated coverage of HIVE Digital Technologies with an Overweight rating and a price target of $9.

The HIVE Digital Technologies Thesis: With Bitcoin mining being a "game of scale," most publicly traded miners have adopted sold growth strategies, while HIVE Digital Technologies has taken a "much more measured" approach to growth, Knoblauch said in the initiation note.

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The company has underperformed peers, "as it has chosen to focus on maximizing returns from fleet investments rather than pursuing a growth-at-any-cost model," he added.

HIVE Digital Technologiesis likely to "more than double its hash rate over the next year, while also prioritizing its currently best-in-class mining efficiency ratio," the analyst stated.

What could be "more appealing to investors" is what the company is doing around AI (artificial intelligence) and HPC (high performance computing), with a focus on its GPU cloud model named HIVE Cloud, he further wrote.

HIVE Price Action: Shares of HIVE Digital Technologies were up 4.1% to $4.28 at the time of publication on Tuesday.

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Image created using artificial intelligence via Midjourney.