Hive Digital is shifting its business model from cryptocurrency mining to artificial intelligence (AI) data centers, a move sparked by Ethereum’s (CRYPTO:ETH) switch to proof-of-stake in 2022.
The company had invested $66 million in Nvidia GPUs in 2021 for crypto mining, but these GPUs are now being used for AI workloads, generating more revenue than mining.
According to Aidan Killick, Hive’s president, these GPUs generate $1 per hour for AI tasks compared to $0.12 per hour in mining.
In an interview, Hive executives Frank Holmes and Aidan Killick detailed their strategy to capitalise on the rising demand for AI computing power.
The company is upgrading its data centers in New Brunswick, Canada, and Sweden, adding cooling systems and improving power infrastructure.
They also plan to install Nvidia’s H100 chips, which could increase revenue from $1 per hour to $2.50 per hour.
"Institutions are much more interested in us with our AI than Bitcoin," stated Holmes.
Hive’s AI focus doesn’t mean abandoning Bitcoin (CRYPTO:BTC) mining.
Killick emphasised that the company is still committed to maximising returns from its mining hardware.
The company aims to maintain profitability, particularly in the post-Bitcoin halving environment, where hash prices have hit record lows.
Despite these challenges, Killick described the situation as a "soft landing" due to the efficiency of newer mining machines like the Bitmain S21.
The expansion into Latin America is another aspect of Hive’s strategy.
The company plans to build a 100-megawatt site in Paraguay, which could help them achieve 2-3% of the global Bitcoin network.
Holmes added, “We believe in Bitcoin, and we want green and clean coins in our balance sheet because they’re going to be more valuable.”
At the time of writing,, the Bitcoin price was $63,316.03.