HIVE Digital stock price continued its strong uptrend, forming a golden cross pattern, after announcing a major announcement on its AI infrastructure business. It jumped to $7.42, its highest level since November last year, and is up 200% from its lowest this year.
HIVE Digital Stock After a Major Columbia Announcement
HIVE Digital, a top company in the Bitcoin mining industry, made a major announcement on Sunday. In it, the company said it had successfully completed the inaugural research project using HIVE GPUs for AI research in Paraguay. It did this project in collaboration with Columbia University. In a statement, Frank Holmes, HIVE’s CEO, said:
“Seeing professors from Columbia University in New York City remotely utilize our AI-optimized GPU cluster in Asunción, more than 5,000 miles away, demonstrates the power of distributed AI infrastructure.”
The announcement came as the company joins other Bitcoin mining companies in transitioning to the AI infrastructure industry under the BUZZ Brand.
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It plans to deploy thousands of GPUs, mostly NVIDIA ones, a move it expects will bring over $200 million in revenue in 2027. Its Canadian data center will host 100,000 GPUs, making it one of the biggest deployers in the country.
The most recent results showed that its revenue totaled $297.8 million last year, with $278 million from its Bitcoin mining operations. $19.5 million of its revenue came from the high-performance computing (HPC) business.
Its Bitcoin mining revenue jumped by 164%, driven by rising hashrate and higher BTC prices. BTC averaged about $98,000 over the financial year, a figure that has since dropped. It reported a net loss of $148 million, with a substantial portion attributable to depreciation and amortization.
HIVE’s business faces some major challenges, including the falling Bitcoin price, which has moved from a record high of $126,300 to $64,000 today. This retreat will affect its Bitcoin revenue this year.
The other challenge is that its data center business will require billions of dollars as GPU and memory prices continue to rise. Other companies in the industry, such as IREN, Nebius, and CoreWeave, have raised billions of dollars through debt and equity.
Also, competition is rising in the industry, with most Bitcoin mining companies entering it.
HIVE Stock Price Technical Analysis
The daily chart shows that the HIVE Digital stock price has been in a strong bull run this year. It crossed above the crucial resistance level of $6.93, its highest point on June 1. Moving above that level invalidated the double-top pattern whose neckline is at $4.82.
The stock has also formed a golden cross pattern as the 50- and 200-day Exponential Moving Averages (EMAs) crossed. Also, the Relative Strength Index (RSI) has continued rising.
Therefore, the stock will likely continue rising as bulls target the key resistance at $10, which is 37% above the current level. A drop below the $6.9 support level will invalidate the bullish outlook.
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