HIVE Digital Technologies has announced a private offering of $75 million in 0% exchangeable senior notes due 2031, issued through its wholly owned subsidiary HIVE Bermuda 2026 Ltd.. The proceeds are intended for general corporate purposes, with a strong focus on AI infrastructure development, GPU procurement, and data center expansion.
The company also granted initial purchasers a 13-day option to purchase an additional $15 million in notes, potentially increasing total fundraising. The notes will not pay regular interest and may be exchanged into cash, HIVE common shares, or a combination, based on final pricing and exchange terms set at issuance.
Capped Call Strategy and Capital Structure Protection
HIVE said it plans to use cash on hand to fund capped call transactions, which are designed to reduce potential dilution from future note exchanges or offset cash obligations above principal amounts, subject to a defined cap.
The company also received conditional approval from the Toronto Stock Exchange (TSX) to move its listing from the TSX Venture Exchange, with a target transition date of around April 30, 2026, pending compliance requirements including minimum public shareholder distribution.
AI Pivot and Financial Performance
HIVE continues shifting from Bitcoin mining toward high-performance computing and AI workloads, including GPU clusters in Paraguay and upgrades in Sweden for Tier-III data centers. The firm reported $93.1 million revenue in Q3 FY2025, up 219% year-over-year, alongside a $91.3 million net loss driven by expansion costs and non-cash revaluation charges.
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