HIVE Digital Technologies Invests $30 Million in Nvidia GPU Clusters to Expand AI and High-Performance Computing Capabilities

Since the debut of ChatGPT, generative AI has taken center stage in technology investments, with companies like Amazon, Microsoft, Google, and Meta pouring between $30 billion and $60 billion annually into the sector. HIVE Digital Technologies has made a strategic $30 million investment to secure Nvidia's highly coveted H100 and H200 GPU clusters, powerful systems integrating GPUs on every node set to be deployed in Quebec. This investment reflects HIVE's commitment to advancing its capabilities in AI and high-performance computing while positioning the company at the forefront of data center innovation.

Through its investment, HIVE is deploying Nvidia's supercomputing clusters with customers, including the Nvidia H100 cluster with 248 GPUs across nearly three-dozen nodes connected with the Infiniband computer networking standard. This cluster is already fully configured and was planned to be operational before year-end 2024, with the company predicting a run-rate revenue for its HPC business unit to hit $15 million in the quarter following deployment. The Nvidia H200 cluster boasts over 500 GPUs across 64 nodes, expected to reach Quebec in early January and be deployed to customers in Q1 2025, potentially generating an annualized run-rate revenue of over $20 million by Q2 2025.

HIVE Digital Technologies reports it has established a strong foothold in HPC, generating approximately $10 million in annualized run-rate revenue in October and November. With its expanded Nvidia chip portfolio, HIVE aims to deepen its focus on AI opportunities, anticipating these new supercomputing clusters will unlock fresh AI revenue streams that align with its high sustainability standards by harnessing 100% green energy sources. The company operates a dual-revenue model, combining digital currency mining with HPC hosting, and projects its HPC services alone to achieve an annualized run-rate revenue of $20 million by Q2 2025.

HIVE Executive Chairman Frank Holmes likens the revenue potential from just 10 MW of HPC Nvidia chips serving global AI demand to that of 100 MW of Bitcoin mining, highlighting the significant economic opportunity in AI infrastructure. HIVE President and CEO Aydin Kilic commented on the company's excitement to build on this momentum and expand server capacity with next-generation AI computing powered by Nvidia's latest GPUs, based on Nvidia reference architecture. The company is also preparing for the provision of liquid-cooled data center technology in its existing data centers for the next generation of high-density compute.

HIVE's investment in Nvidia chip clusters aligns with the company's focus on AI technology and its commitment to leveraging green energy infrastructure, with a target of $100 million in revenue by 2025 through its HPC services and Bitcoin mining data center conversion. This strategic move comes as evidence of return on investment in the AI space becomes more apparent, with Goldman Sachs confirming this technology cycle as the real deal in the evolving landscape of artificial intelligence infrastructure and computing capabilities.