Shares of HIVE Digital surged after the company announced a significant year-over-year (YoY) increase in its Bitcoin holdings. The Canadian cryptocurrency mining firm revealed in its February production report that its Bitcoin reserves have grown by 23% compared to the previous year, reinforcing its position as a key player in the mining sector.
Bitcoin Production and Strategic Moves
In a March 9 press release, Vancouver-based HIVE Digital reported mining 89 BTC in February, bringing its total Bitcoin holdings to 2,620 BTC. The reserves are currently valued at approximately $220 million.
However, the company noted a month-over-month decline in its total BTC holdings, though it did not specify the amount of Bitcoin sold. HIVE attributed the decline to a strategic move, stating:
“On a month-over-month basis, BTC holdings saw a decline as HIVE strategically sold a portion of its BTC to invest in capital assets, including Bitfarms’ 200 megawatt hydro-powered Bitcoin mining assets in Paraguay.”
Market Response and Analyst Outlook
Following the announcement, HIVE Digital’s stock climbed 4.76% in after-hours trading, reaching $2 per share, according to Nasdaq data. The market reaction was further supported by Rosenblatt’s revised outlook for HIVE, which now projects a share price range between $4.80 and $7.13. The new price targets suggest a potential increase of nearly 200% from current levels.
Expansion and Future Plans
HIVE Digital CEO Aydin Kilic emphasized that the company is on track for a “transformative year” that will solidify its position as one of the largest and most efficient Bitcoin miners globally. Kilic highlighted the firm’s ambitious expansion plans, which include a 300-megawatt (MW) expansion in Paraguay. The initiative aims to increase HIVE’s hashrate from 6 exahashes per second (EH/s) to 25 EH/s by September 2025.
Additionally, HIVE expects to finalize its strategic acquisition of Bitfarms’ 200 MW Yguazú mining site in Paraguay by the end of Q1 2025, further strengthening its operational footprint.
The Road Ahead
With growing Bitcoin reserves, strategic investments, and a bullish market outlook, HIVE Digital continues to position itself as a major force in the Bitcoin mining industry. As the company scales its operations and expands its energy-efficient mining capabilities, investors are closely watching how these developments translate into long-term growth and profitability.
