HIVE Digital Technologies ($HIVE) - Turnaround Play

I will start out by saying that I know this stock popped last year during crypto’s bull run. People have laughed and scoffed at my recent comments, thinking this company is dead, or I am holding bags. But the truth is this stock is working on a pivot into High-Performance Computing (HPC) and AI Infrastructure. They are currently sitting at a \~$1.02B CAD or $746M USD market cap. Tiny peanuts compared to what AI companies are worth these days. Recent news to show they are not just gaslighting investors: [HIVE’s BUZZ Starts Building A Digital Superhighway for Eastern Canada’s First Sovereign AI Factory](https://www.hivedigitaltechnologies.com/news/hives-buzz-starts-building-a-digital-superhighway-for-eastern-canadas-first-sovereign-ai-factory/) Cliffnotes: In partnership with a Canadian carrier, BUZZ is upgrading Grand Falls with dedicated high-capacity optical wavelength services, including multiple 100 Gbps and 400 Gbps connections. Delivery is expected to begin in Q3 2026. The **Canadian carrier will have substantial capital expenditures beyond HIVE’s capital commitment**, to complete the installation of these high-speed fiber connections. So not only are they expanding their capacity and throughput, they are partnered with a Canadian telecommunication providor (Canadian Bell) who is willing to invest alongside of them.   [HIVE Digital Announces Closing of Private Offering of US$115 Million of 0% Exchangeable Senior Notes Due 2031](https://www.hivedigitaltechnologies.com/news/hive-digital-announces-closing-of-private-offering-of-us115-million-of-0-exchangeable-senior-notes-due-2031/) Investors don’t just give away money for free. They have given HIVE $115M for ZERO percent interest. Not to mention it was originally for $75 million, and there was so much demand, they expanded the offering to $115M. Conversion value of shares would be \~$2.57. They can only request conversion early if the stock price stays at 130% of conversion value for a certain amount of time. That’s incentive for them to work with HIVE to achieve legitimate growth.   [HIVE Digital Announces Up-listing to TSX and Provides Corporate Update](https://www.hivedigitaltechnologies.com/news/hive-digital-announces-up-listing-to-tsx-and-provides-corporate-update/) Lastly, management recently confirmed they had been approved for uplisting to the main TSX from Venture. In the short term, this may mean downward volatility aka an entry opportunity. Long term, this boards well for the company. You don’t get uplisted for being a fraudulent company. While all that is going on, their core business is still going strong. Think of this as a dual crypto/AI play.  —— Edit: Also, I forgot to add that Kenny G and Citadel disclosed a significant stake in HIVE in a 4/24 filing. 8.7M shares for Citadel and 11M attributed to Ken through Citadel. With total shares outstanding of \~230M, that’s roughly 3.5% for Citadel and 4.2% for Kenny G. Take it for what you will. I know Citadel gets hate at times. —— Edit 2: For those saying many companies are pivoting, like AllBirds, APLD, IREN, etc. This is true. But HIVE is on track to have 11,000 Nvidia GPUs in operation by EOY 2026. With 5,000 already in operation and another 6,000 ordered last year, they are expected to receive their chips this year. It’s not like they decided on this pivot recently and are at the back of the waiting list. [Hive Digital Technologies Subsidiary, BUZZ High Performance Computing, Accelerates Canada’s AI Industrial Revolution With Dell Technologies For Its AI Cloud Expansion](https://www.hivedigitaltechnologies.com/news/hive-digital-technologies-subsidiary-buzz-high-performance-computing-accelerates-canadas-ai-industrial-revolution-with-dell-technologies-for-its-ai-cloud-expansion/print/) Each Canadian and Swedish site, alongside the Bell AI Fabric facility, will support 2,000 additional latest generation GPUs to expand the BUZZ AI Cloud for 2026. In total, BUZZ targets a fleet of over 6,000 latest generation GPUs for AI cloud by the end of 2026. This is projected to generate an additional $120 million in annual run-rate revenue (“ARR”), with an operating margin of 80% after electrical and data center costs, for BUZZ’s AI Cloud business once deployed. This estimated increase is in addition to the Company’s current $20 million ARR. Combined with over 5,000 GPUs already in operation, this would bring the BUZZ AI Cloud to a total of over 11,000 GPUs by the end of 2026 —— TLDR: Major things are happening and HIVE appears to have hit maximum FUD and the price is starting to turn around. I expect this stock to rally back to old highs and beyond - IF management can execute on their pivot. So far, they have shown they are serious at doing so. Position: 5,000 shares @ $2.67 100 1/21/28 $10C @ $.49 average 25 1/21/28 %4C @ $0.95 average