HIVE Digital Technologies Commits US$3.1 Million Grand Falls Fibre Upgrade — Hive Stock
Hive stock fell 7.86% even as HIVE Digital Technologies committed approximately US$3.1 million over five years to a fibre upgrade at its Grand Falls data centre. The spending is tied to its push into AI and high performance computing, but it arrives while the company is still loss making on US$257.1 million of revenue.
US$115 million note funding
US$115 million of 0% exchangeable notes helped support the Grand Falls upgrade. That financing gives HIVE room to keep building network capacity without adding interest expense to the capital already going into the data centre.
CA$3.75 was the last close, below a narrative fair value of CA$8.45. The gap leaves the stock trading at a lower level than the valuation case attached to the company’s AI and infrastructure buildout, even after a 23.76% 90-day return and a 30.21% 1-year total shareholder return.
HC Wainwright lifts FY2025
On Thursday, November 14th, HC Wainwright raised its FY2025 EPS estimate to negative US$0.33 from negative US$0.35, kept a Buy rating, and set a US$8.00 price target. M. Colonnese’s revision still points to a loss in the current year, with the consensus estimate at negative US$0.27 per share.
2 is the company’s low value score, and that sits alongside the removal of HIVE Digital Technologies from the S&P/TSX Venture Composite Index. For holders, the upgrade plan shows the business is still spending into AI infrastructure even as the market has marked down the shares and the earnings path remains negative.
Grand Falls spending path
Five years is the span HIVE set for the approximately US$3.1 million fibre project at Grand Falls. The spending runs alongside a recent US$115 million note issuance, which is the clearest signal that management is financing network buildout while it tries to narrow the gap between revenue and profitability.
CA$8.45 remains the narrative fair value attached to the stock, but the path there now depends on whether the Grand Falls upgrade helps support the company’s AI and high performance computing strategy without widening losses faster than expected. The market has already taken one step back with the 7.86% one-day decline.
