HIVE Digital Technologies Stock Surges 26% After Unveiling $2.55B AI Gigafactory in Ontario

HIVE Digital Technologies Announces Major AI Infrastructure Investment

HIVE Digital Technologies sent its stock price soaring on Monday after unveiling ambitious plans for a large-scale AI compute facility in Ontario, Canada 1

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. Shares touched $3.39, representing a 26% increase, while briefly reaching $3.92 before the opening bell—extending year-to-date gains beyond 35% 1

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. The announcement signals a decisive move by the Bitcoin miner expands into AI, continuing a strategic pivot that began in 2022 1

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AI Gigafactory Details and Sovereign AI Infrastructure Vision

The company's subsidiary Buzz High Performance Computing acquired approximately 25 acres of land in the Greater Toronto Area for $58 million to support the AI Gigafactory 3

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. This AI data center campus will feature roughly 320 megawatts of power capacity—enough to power at least 200,000 average homes—and support more than 100,000 GPUs at full build-out 1

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. Executive Chairman Frank Holmes described the initiative as sovereign AI infrastructure designed to "turn Canadian intelligence into Canadian dominance," emphasizing that data and processing power will remain within Canada to foster domestic tech leadership 1

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Capital Investment and Timeline for Deployment

The project requires approximately CAD $3.5 billion ($2.55 billion) in capital investment and targets deployment in the second half of 2027 2

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. Construction is expected to create more than 800 jobs, with hundreds of additional permanent high-skill technical roles following completion 2

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. The facility will support fully vertically integrated AI supercomputers and is designed to become one of Canada's largest AI infrastructure installations 1

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. The site will utilize Ontario's electricity grid and feature closed-loop cooling systems to minimize water usage, addressing growing concerns about data center environmental impact 2

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Expanding Power Capacity and GPU Infrastructure

With the Ontario facility, HIVE Digital Technologies will command more than 850 MW of global power capacity across operating data centers and development projects in Canada, Sweden, and Paraguay 2

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. Currently, the company operates 450 MW of data centers and maintains a 400 MW capacity pipeline expected online in 2027 3

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. HIVE already runs approximately 5,500 GPUs performing AI compute workloads, and the expanded infrastructure could eventually support roughly 130,000 GPUs across all facilities 2

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Strategic Shift from Bitcoin Mining to High-Performance Computing

As HIVE embraces high-performance computing, the company has significantly reduced its Bitcoin mining focus. Bitcoin holdings dropped from 2,805 BTC a year ago to just 481 BTC as of December 31, valued at $36.7 million 1

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. Despite this shift, Bitcoin mining still dominates revenue. In the three-month period ended December 31, HIVE generated $88.2 million from mining digital assets compared to $26.6 million a year earlier, while high-performance computing revenue reached $4.8 million versus $2.5 million previously 1

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. This pattern mirrors industry trends, as companies like TeraWulf saw HPC lease revenue rise 117% quarter-over-quarter to $21 million, accounting for about 60% of total revenue despite posting a $427 million net loss 2

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. Several publicly traded Bitcoin miners including CleanSpark and MARA Holdings have reported steep quarterly losses as depressed Bitcoin prices and post-halving economics pressure profitability 2

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