Give Bitcoin mining operations Hive Digital (TSE:HIVE) credit; it does what it does quite well.
Hive came out of September with buckets of Bitcoin honey. It mined 112 Bitcoin total, which was actually unchanged from its August total. It also added to its long-term investment in Bitcoin, adding 1.4% to its holdings on a month-over-month basis, and 50% against this time in 2023, bringing it up to a total of 2,604 Bitcoin.
Using mainly hydroelectric power, which is about as green as power gets, it raised its mining capability to over 5.3 exahash per second, which allowed it to produce a staggering 3.73 Bitcoin per day. It has also been actively working on its power grid load balancing operations, which allow it to go from 30 megawatts to any level needed in a matter of seconds, which helps be less of a strain on local resources during times of power outages or higher community use, like heat waves.
Joining the Data Center Rush
Data centers are proving increasingly hot properties, and Hive Digital is looking to make its mark on that market as well. Certainly, it is doing great business minting Bitcoin, but it also looks to put its stock of graphics processing units (GPUs) to work with artificial intelligence (AI) operations. Hive Digital had $66 million worth of GPUs back in 2021, mostly mining Ethereum.
But after Ethereum went to a proof-of-stake model instead of a proof-of-work, Hive Digital repurposed many of those GPUs as AI processors, a move that could make it a powerhouse in a whole different sector. And it is a move that is paying off: GPUs are producing around $2 per hour for AI tasks against just $0.12 per hour in crypto mining.
Is HIVE a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TSE:HIVE stock based on five Buys assigned in the past three months, as indicated by the graphic below. After a 6.97% rally in its share price over the past year, the average TSE:HIVE price target of C$8.51 per share implies 98.44% upside potential.
