HIVE Digital Expands into AI with Data Center Acquisition
HIVE Digital, a key player in the cryptocurrency sector, has made a significant move by securing a 7.2-megawatt data center in Toronto. This acquisition marks the inaugural investment by HIVE’s newly established subsidiary, BUZZ HPC, which aims to drive advancements in high-performance computing.
Plans for Canadian AI Infrastructure
In a recent announcement, HIVE detailed its intentions to leverage this facility as a foundation for building Canadian AI infrastructure. The plan includes the installation of liquid-cooled systems designed to handle demanding computational tasks. Situated in Canada’s primary technology hub, the Toronto site is set to undergo renovations to meet Tier 3 certification standards and will accommodate up to 5,000 state-of-the-art GPUs.
This data center will serve as the first fully owned and managed location for BUZZ HPC, enhancing the subsidiary’s capabilities to deliver comprehensive AI training, inference, and cloud services tailored to various sectors, including government, academia, and large enterprises.
Strategic Acquisition Amid Growing Demand
This strategic acquisition comes at a time when there is a notable increase in the global appetite for sophisticated AI computing resources, reflecting a broader trend where companies focused on cryptocurrency are pivoting towards AI-centric operations.
So far, HIVE has reported $7.03 million in revenue from its high-performance computing hosting services over the nine months leading to December 31, as it seeks to lessen its reliance on Bitcoin mining.
Enhancing Bitcoin Mining Capabilities
In addition to this new venture, HIVE is also enhancing its Bitcoin mining capabilities. The company recently reached a remarkable threshold of 11 EH/s, thanks to the expedited launch of its Paraguay facility. HIVE aims to boost its hash rate target to 25 EH/s ahead of the upcoming Thanksgiving holiday in the United States.
Recent figures reveal that HIVE generated 139 BTC in May, equating to a realized hash rate of 8.51 EH/s, marking a significant 32% increase in computing capacity from the previous month.
