HIVE Digital (HIVE.US) accelerates shift towards HPC and AI fields, investing 30 million dollars to deploy H100/H200 clusters.

HIVE Digital Technologies (HIVE.US), focusing on cryptocurrency mining and blockchain infrastructure solutions in the long term, announced on Tuesday Eastern time that it will invest approximately $30 million in NVIDIA Corporation's (NVDA.US) AI GPU cluster located in Quebec, Canada. This high-performance computing cluster by HIVE Digital will consist of 248 H100 AI GPUs and 508 H200 AI GPUs. According to the latest statement from HIVE Digital, the NVIDIA Corporation H100 cluster is expected to be operational by the end of 2024, with an estimated annual revenue of around $15 million. The H200 cluster is expected to start operating in January 2025, and the revenue generated by the NVIDIA Corporation H200 AI GPU cluster is projected to exceed $20 million by the second quarter of 2025. Recently, HIVE Digital has been ramping up efforts to introduce new supercomputing clusters to meet the skyrocketing demand for cloud-based AI training/inference resources from global clients. Since this year, HIVE Digital has expanded its business scope from cryptocurrency mining and blockchain infrastructure to high-performance computing (HPC) and artificial intelligence (AI) data center fields to capture the unprecedented wave of enterprise deployment of generative AI. Data centers are considered the core large-scale infrastructure projects in the AI era, crucial for the efficient operation of generative artificial intelligence applications like ChatGPT and the updating of AI large models like GPT-4o. According to the latest forecast data from Wall Street financial giant Citigroup, capital expenditures related to data centers of the four largest tech giants in the United States are expected to increase by at least 40% by 2025. These massive capital expenditures are mostly related to generative AI, indicating that the demand for computing power for AI applications like ChatGPT remains significant. The Citigroup analysis team emphasizes that the adoption of AI is still in its early to mid stages, especially driven by the hot AI application "AI agents" on the enterprise side, leading to a surge in demand for AI applications and, consequently, powerful computing resources that stimulate significant expansion and the establishment of new global data centers for tech giants. HIVE Digital, focusing on cryptocurrency mining in the long term, aims to achieve an annual revenue exceeding $20 million by the second quarter of 2025, focusing on high-profit cloud computing and AI large model training/inference resource services. With the continued exponential growth in demand for AI training/inference computing power, the revenue scale of AI leader OpenAI in the generative AI field has surged from almost zero to about $6 billion within a year, and NVIDIA Corporation's data center business department saw a massive year-over-year revenue increase of 112% in the last fiscal quarter, reaching an astonishing $30.8 billion, significantly exceeding Wall Street's expectations and surpassing the combined revenue of Intel Corporation and AMD. By the end of the third quarter of the 2025 fiscal year ending on October 27, NVIDIA Corporation's total revenue skyrocketed by 94% year-over-year to reach a historical high revenue scale of $35.1 billion, highlighting that AI technology development is still in an "extremely early stage" the stage of building AI infrastructure, where NVIDIA Corporation remains the perfect "solution". In 2024, fueled by the global "AI faith" wave, believers in AI drove NVIDIA Corporation's stock price to soar nearly 200%, briefly making it the company with the highest market capitalization globally. Since 2023, NVIDIA Corporation's stock price has surged by an impressive 850%. In the unprecedented AI boom, HIVE Digital, shifting towards building data centers to provide AI training/inference computing power services, undoubtedly finds itself in a favorable position, able to leverage the rapidly expanding high-performance computing (HPC) and AI data center market in the unprecedented AI supercycle. Frank Holmes, Chairman of HIVE, stated in the latest announcement, "Deploying NVIDIA H100 and H200 AI GPU clusters marks a crucial step in our shift to high-performance computing (HPC) strategy and a significant change in our business model. The revenue potential created by just 10 megawatts of HPC NVIDIA AI GPU services for global AI computing needs is equivalent to the revenue scale generated by 100 megawatts of Bitcoin mining."