HIVE Digital Technologies committed about US$3.1 million over five years to upgrade fibre at its Grand Falls data centre, even as its stock fell 7.86% in a single session. The move comes after the company raised US$115 million through a 0% exchangeable note issuance, a financing that gives it room to keep building while it pivots deeper into AI and high performance computing.
The latest drop left HIVE last at CA$3.75, well below a narrative fair value of CA$8.45 cited for the company. The stock has still delivered a 23.76% return over 90 days and a 30.21% total shareholder return over the past year, but the business remains loss making despite revenue of US$257.1 million.
That tension helps explain why the market is reading HIVE less like a simple mining story and more like a bet on infrastructure. The fibre upgrade is a practical step for a company trying to support heavier workloads, but it also adds another layer of spending to a balance sheet already shaped by the recent note sale and the need to turn growth into profit.
On Thursday, November 14, HC Wainwright raised its FY2025 EPS estimate for HIVE to minus US$0.33 from minus US$0.35 and kept a Buy rating and an $8.00 price target on the shares. The firm also sees Q4 2025 earnings at minus US$0.07 per share and Q4 2026 earnings at US$0.03 per share, a forecast that implies the path to profitability is still ahead rather than behind.
HIVE also carries a low value score of 2 and was recently removed from the S&P/TSX Venture Composite Index, a reminder that operational progress and market approval do not always move together. For now, the stock is being pulled between capital spending, a still-unprofitable financial profile and the hope that its AI and high performance computing push can justify the gap between the market price and the higher fair value estimate.
