On Wednesday, H.C. Wainwright maintained a Buy rating on Hive Digital Technologies (NASDAQ:HIVE) with a price target of $8.00. The firm's stance follows HIVE's recent announcement on December 3 that it has acquired 13,480 S21+ hydro-cooled mining rigs from Bitmain, a private company, at a cost of $60.2 million.
According to InvestingPro data, HIVE currently has a market capitalization of $539 million and has shown strong momentum with a 46.4% price return over the past six months. The rigs, which offer an efficiency of 319 TH/s and 15 J/TH, are expected to be delivered to HIVE's Paraguay data center between April and May 2025. This addition is set to increase HIVE's installed hash rate to 10.7 EH/s upon full deployment.
HIVE has also completed a purchase of 11,500 Avalon miners from Canaan (NASDAQ:CAN), which will replace older, less efficient miners in its fleet. The company anticipates an installed hash rate of 6.4 EH/s with an efficiency of 19.5 J/TH in the first quarter of 2025 after this upgrade.
Additionally, HIVE has secured an option to buy an extra 4.3 EH/s of S21+ rigs at the same price of $14/TH. If exercised fully, this would increase the company's hash rate to 15 EH/s with an efficiency of 17 J/TH by Summer 2025, surpassing the previous outlook of 12.5 EH/s and 17.3 J/TH.
The funding for these purchases is expected to come from either sales of Bitcoin—supported by HIVE's holdings of 2,624 BTC valued at approximately $256 million as of December 1—or through equity sales. The company's current cash balance stands at $7.2 million as of the second quarter of fiscal year 2025, which ended September 30.
InvestingPro analysis indicates that while HIVE is quickly burning through cash, it maintains a healthy current ratio of 5.56, suggesting strong short-term liquidity. For deeper insights into HIVE's financial health and 12 additional ProTips, subscribers can access the comprehensive Pro Research Report.
HIVE's stock performance outpaced both its peers and the broader equity market on Wednesday, with the company's shares rising 0.70% compared to a 0.2% gain in the Nasdaq. This positive investor reaction is attributed to the increased visibility into HIVE's near-term growth targets provided by the new purchase order and option with Bitmain.
Despite this, H.C. Wainwright views HIVE as one of the most undervalued miners in the sector, given its strong growth prospects. InvestingPro's Fair Value analysis supports this view, indicating that HIVE is currently undervalued, though investors should note the company's high volatility with a beta of 4.23 and substantial revenue growth of 56% over the last twelve months.
In other recent news, B. Riley Financial adjusted its stock price targets for several digital mining companies, including Bitfarms Ltd., HIVE Digital Technologies Ltd., and Stronghold Digital Mining, Inc. This update was influenced by the recent surge in Bitcoin value and a modest global network hash rate increase. Meanwhile, Stronghold Digital Mining reported a decline in Bitcoin production and a subsequent decrease in Q3 2024 revenue, alongside a pending merger with Bitfarms aimed at increasing operational efficiency.
In a similar vein, H.C. Wainwright increased the price target for Hive Digital Technologies following the company's Q2 2025 financial results and details on its Bitcoin mining expansion. Hive also announced significant developments in its self-mining operations, including the purchase of new miners and construction of a new datacenter in Paraguay.
Cantor Fitzgerald initiated coverage on Hive Digital Technologies, highlighting the company's status as a top ten Bitcoin miner and its potential to double its hash rate in the upcoming year. The firm also acknowledged Hive's ventures into artificial intelligence and high-performance computing with plans to expand its GPU fleet.
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