Q: Would appreciate if you could provide an updated opinion on Hive. Buy, sell or hold.
Thanks
Thanks
5i Research Answer:
HIVE was traditionally solely a crypto miner, but like other miners, it has pivoted into both mining crypto and high-performance computing (HPC, AI revenues). It operates data centers in Canada, Sweden, and Iceland, and management expects its AI revenues to be roughly $30M by 2024. It is a $715M company, with an EH/s of 5.3 (fairly small relative to other bitcoin miners), and it holds about 2,600 bitcoins on its balance sheet ($255M). With the rise in bitcoin price, we think its mining operations can become profitable, and if it can expand its AI fleet, it could see more stability in its financials. We think it looks interesting here, and if crypto continues to rise, we could see this name eventually breaking out to the upside.