HIVE stock rallies 35% after unveiling 320MW 'AI gigafactory' project in Toronto
HIVE shares were up over 35% on Monday morning at market open after the bitcoin miner-turned-digital infrastructure company unveiled plans for what it says could become one of Canada's largest sovereign AI "gigafactories' in the Greater Toronto Area.
The company said its BUZZ High Performance Computing subsidiary is moving forward on a planned 320-megawatt AI infrastructure campus that would be able to host more than 100,000 GPUs at full build, with a target launch set for the second half of 2027.
Hive estimates the project will cost roughly CAD $3.5 billion ($2.55 billion) to build and will act as an industrial-scale data center to train and run artificial intelligence models.
Hive said BUZZ acquired roughly 25 acres of land for roughly CAD $58 million ($42 million) while also securing access to power.
"AI is the new industrial base and compute is the factory floor," Executive Chairman Frank Holmes said in the announcement. "Canada produced the Godfathers of deep learning, but kept renting the factories. That era is over."
Hive pivots to AI
It is Hive's latest push away from its legacy bitcoin mining business into AI and high-performance compute infrastructure.
Last month, Hive lined up a $75 million convertible note offering to help fund GPU purchases and data center expansion.
In March, the company said it was working to wind down ASIC bitcoin mining at its Boden, Sweden, facility to convert it into an AI-focused data center. Around the same time, the company also began deploying GPU clusters in Asunción, Paraguay.
In today’s release, CEO Aydin Kilic said the company now has more than 850 MW of global power capacity across its currently operating facilities and future projects.
Other Hive peers like Riot Platforms and TeraWulf have also ramped up efforts to expand their own data center and high-performance computing operations in recent quarters.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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