Analysts at H.C. Wainwright & Co. have upgraded HIVE Blockchain Technologies' stock rating from 'Neutral' to 'Buy,' raising their price target from $4 to $5 per share. This upgrade is driven by the company's promising advancements in high-performance computing (HPC) and artificial intelligence (AI).
Shift to AI and HPC
Analysts express confidence in HIVE’s strategy to expand its business in the HPC and AI sectors. The company’s management aims to double annualized HPC revenues to $20 million in the second half of 2024 and reach $100 million by 2025. To support this growth, HIVE plans to convert 30 MW of its existing BTC mining infrastructure into Tier 3 data centers, potentially housing 16,000 NVIDIA H200 GPUs.
Company Performance
Despite challenges from the upcoming Bitcoin halving event, HIVE reported robust first-quarter fiscal 2025 results, with total revenue of $32.2 million, including $2.6 million from HPC, a 44% increase from the previous quarter. Adjusted EBITDA for the quarter was $14.9 million, significantly beating estimates.
Future Plans
HIVE expects its newest 100 MW site in Paraguay to be fully operational by Q3 2025, boosting total capacity to 12.1 EH/s. However, analysts note that risks to the price target include BTC price volatility, network difficulty increases, and potential shareholder dilution.
The upgraded rating of HIVE stocks by H.C. Wainwright analysts reflects confidence in the company's strategy to develop in the realms of high-performance computing and artificial intelligence, despite challenges from cryptocurrency market volatility.
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