Analysts at H.C. Wainwright & Co. have upgraded HIVE Blockchain Technologies’ stock, citing advances in AI and high-volume computing. The rating has been raised from “Neutral” to “Buy,” and the price target has increased from $4 to $5.

This upgrade is driven by HIVE’s promising outlook in the high-performance computing (HPC) and AI sectors. The stock, currently trading at $2.90 on NASDAQ, has fallen nearly 40% in recent weeks, a drop analysts believe is overdone compared to the broader 7% decline in Bitcoin mining stocks.

HIVE’s AI Ventures

The upgrade reflects confidence in HIVE’s strategy to expand its HPC/AI business. Management aims to double annualized HPC revenues to $20 million in the second half of 2024 and reach $100 million by 2025. To support this growth, HIVE plans to convert 30 MW of its existing BTC mining infrastructure into Tier 3 data centers, potentially housing 16,000 NVIDIA H200 GPUs.

Despite challenges from Bitcoin’s halving event, HIVE reported solid F1Q25 results, with $32.2 million in total revenue, including $2.6 million from HPC, a 44% increase from the previous quarter. Adjusted EBITDA for the quarter was $14.9 million, significantly beating estimates.

HIVE’s newest 100 MW site in Paraguay is expected to be fully operational by Q3 2025, boosting total capacity to 12.1 EH/s. However, analysts note that risks to the price target include BTC price volatility, network difficulty increases, and potential shareholder dilution.

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