HIVE Digital Technologies Invests $30 Million in Nvidia GPU Clusters to Expand AI Capabilities

HIVE Digital Technologies (NASDAQ: HIVE) has announced a $30 million investment in state-of-the-art Nvidia (NASDAQ: NVDA) GPU clusters to advance its capabilities in artificial intelligence and high-performance computing. This strategic decision positions the company to capitalize on the growing AI market as major players like Amazon, Microsoft, Google, and Meta invest billions annually in AI development while AI startups secure 40% of venture capital funding.

The investment includes acquisition of Nvidia's H100 and H200 GPU clusters for deployment in Quebec. The H100 cluster comprising 248 GPUs across nearly three-dozen nodes is expected to be operational by the end of 2024, with HIVE projecting a run-rate revenue of $15 million for its HPC business unit in the quarter following deployment. The H200 cluster boasting over 500 GPUs across 64 nodes is slated for deployment to customers in Q1 2025, with potential to generate an annualized run-rate revenue exceeding $20 million by Q2 2025.

HIVE's dual-revenue model combining digital currency mining with HPC hosting is expected to benefit significantly from this investment. The company anticipates its HPC services alone could achieve an annualized run-rate revenue of $20 million by Q2 2025, driven by high-margin cloud computing and AI model training services. HIVE Executive Chairman Frank Holmes noted that revenue potential from just 10 MW of HPC Nvidia chips serving global AI demand could equate to that of 100 MW of Bitcoin mining.

Aydin Kilic, HIVE's President and CEO, expressed enthusiasm about expanding server capacity with next-generation AI computing powered by NVIDIA's latest GPUs based on NVIDIA reference architecture. The company is also preparing to implement liquid-cooled data center technology in existing HIVE data centers to accommodate high-density computing needs. HIVE's investment aligns with its focus on leveraging green energy infrastructure, as the company aims to power its AI initiatives using 100% renewable energy sources.

The company has set an ambitious target of $100 million in revenue by 2025 through its HPC services and Bitcoin mining data center conversion. This substantial investment in Nvidia's cutting-edge GPU technology positions HIVE to potentially capitalize on increasing demand for AI and HPC services as Goldman Sachs has noted growing evidence of return on investment in the AI space, further validating the potential of this technology cycle.