Hive Digital, a Vancouver-based leader in bitcoin mining and high-performance computing (HPC), recently made a strategic move into artificial intelligence (AI) and HPC technologies by acquiring 96 Nvidia H100 graphics processing units (GPUs).
Hive Digital: Shifting Focus and Enhancing GPU Division
Hive Digital, listed on Nasdaq as HIVE, outlined its plan to incorporate these GPUs into a dozen HGX servers, each equipped with eight H100 GPUs featuring SXM connectivity. This initiative aims to expand Hive’s existing GPU division, which currently operates 2,600 GPUs in collaboration with HPC platforms.
The mining company is expecting to have 2,800 GPUs listed with its HCP platforms before 2023 ends. According to the announcement, HIVE aims to realize more than $15 million of annual run rate revenue in January 2024 if these chips realize full market utilization.
Moreover, the company has planned to install the infrastructure for another 2,000 GPUs in January. As per the plan, once all 4,800 GPUs realize full market utilization, HIVE aims to reach over $25 million of annual run rate revenue in Q1 2024.
Notably, the newly acquired GPUs are already operational in Sweden, Quebec, and Montreal. Frank Holmes, Hive’s executive chairman, expressed confidence in their ability to lead the AI infrastructure revolution by stating:
“Put simply, we have been building HIVE’s GPU and AI business unit to be the ultimate AI infrastructure pick-and-shovel play. As leaders in the tech sector, we believe we’re undervalued as a company with both a highly efficient bitcoin mining operation and now a flourishing GPU compute business unit.”
A Holistic Approach to Emerging Technologies
Hive Digital’s journey from bitcoin mining to AI expansion signifies a holistic approach to emerging technologies. As the company combines its existing HPC GPU fleet with the new Nvidia H100 fleet and the Boden GPU fleet, it positions itself as a versatile player in both digital asset mining and GPU compute businesses.
The synergy between AI and bitcoin is becoming evident, with mining companies leveraging AI applications for enhanced efficiency and profitability. Hive Digital’s move aligns with a broader trend among bitcoin mining companies venturing into AI technology. Peers like Northern Data and Iris Energy have also invested in Nvidia H100 GPUs, targeting the expanding generative AI market.
Potential use cases include utilizing AI algorithms for market analysis, predictive modeling, and automated trading strategies. AI can automate tasks such as data processing, data quality checks, and security enhancement in the digital asset market. This integration allows mining companies to not only optimize their mining operations but also explore new avenues in the evolving landscape of AI technologies.
