Key Points
- H.C. Wainwright & Co. analysts upgrade HIVE Blockchain stock due to advances in AI and high-volume computing.
- The stock’s price target has been raised from $4 to $5, reflecting a promising outlook in the high-performance computing and AI sectors.
H.C. Wainwright & Co. analysts have upgraded the rating of HIVE Blockchain Technologies’ stock.
They have shifted their rating from “Neutral” to “Buy” and increased the price target from $4 to $5.
HIVE’s Expansion into High-Performance Computing and AI
This change is motivated by HIVE’s prospective growth in the high-performance computing (HPC) and AI sectors.
The stock is currently trading at $2.90 on NASDAQ, a significant drop of nearly 40% in recent weeks.
Analysts believe this drop is excessive in comparison to the broader 7% decline in Bitcoin (BTC) mining stocks.
The upgrade is a reflection of confidence in HIVE’s strategy to grow its HPC/AI business.
The company’s management has plans to double the annualized HPC revenues to $20 million by the second half of 2024 and reach $100 million by 2025.
To facilitate this growth, HIVE intends to transform 30 MW of its current BTC mining infrastructure into Tier 3 data centers.
These centers could potentially house 16,000 NVIDIA H200 GPUs.
Despite the challenges posed by Bitcoin’s halving event, HIVE reported solid F1Q25 results.
The company recorded $32.2 million in total revenue, which included $2.6 million from HPC, marking a 44% increase from the previous quarter.
The company’s adjusted EBITDA for the quarter was $14.9 million, significantly surpassing estimates.
HIVE’s Future Prospects and Potential Risks
HIVE’s upcoming 100 MW site in Paraguay is projected to be fully functional by Q3 2025, increasing the total capacity to 12.1 EH/s.
However, the analysts have noted that the price target is subject to risks such as BTC price volatility, network difficulty increases, and potential shareholder dilution.
