Cantor starts Hive Digital at Overweight into hash rate inflection

Cantor Fitzgerald initiated coverage of Hive Digital (HIVE) with an Overweight rating and $9 price target Hive is a vertically integrated bitcoin miner with data centers located in Canada, Paraguay, Sweden, and Iceland, the analyst tells investors in a research note. While Hive is a top 10 miner when it comes to hash rate, it has underperformed other miners, as it has chosen to focus on maximizing returns from fleet investments rather than pursuing a growth-at-any-cost model, says Cantor. The firm believes the market has historically rewarded the growth model, which is Hive shares “are now interesting.” It expects the company to more than double its hash rate over the next year, while also prioritizing its “currently best-in-class” mining efficiency ratio. The market is underappreciating the coming hash rate growth inflection as well as Hive’s graphics processing unit ambitions, “making shares attractive at current levels,” Cantor contends.