Summary Hive Digital Technologies (HIVE) leverages green energy for Bitcoin mining and AI cloud services, capitalizing on explosive trends in digital assets and artificial intelligence. Hive Digital's recent strategic expansions, including a 7.2MW Toronto data center and surpassing 20 EH/s, position HIVE for continued growth as Bitcoin prices surge. The high-performance computing (HPC) and AI market tailwinds, combined with favorable Bitcoin seasonality, support a bullish outlook and premium valuation for HIVE. Assigning a Buy rating on HIVE stock with a $7 price target, I see approximately 28% upside, driven by multi-year HPC growth not yet fully priced in. Hive Digital Technologies Overview Hive Digital Technologies (NASDAQ: HIVE ) is a Bitcoin mining and high-performance computing company that is leveraging green energy and offering cloud services for AI applications. HIVE is riding two explosive trends, which are transforming traditional capital markets through artificial intelligence and digital assets. This is a roughly $1.25 billion market-cap stock that has appreciated more than 100% over the past month. The company's strategic decisions to strengthen Bitcoin mining and high-demand HPC operations were rewarded by the market. On September 17, HIVE announced closing a 7.2MW data center deal in Toronto, scaling its AI-related operations. On September 23, the company highlighted achieved 2% of the global Bitcoin network, which acts as a significant tailwind with Bitcoin rising over its recent all-time high of $125,000 . The company appears to be well-positioned to benefit from the risk-on market trend. Hive faces additional tailwinds, which could result in the stock price appreciation. I think the Bitcoin mining company may appear to be a compelling opportunity for investors seeking exposure to two explosive trends at an appealing valuation. I believe Hive Digital Technologies is a Buy, with a $7 price target over the next 12 months, indicating approximately 28% upside. AI HPC Unlocks Multi-Year Growth, And I Don't Think That Is Priced In Yet The high-performance computing market is experiencing significant demand. More and more legacy Bitcoin miners are pivoting to this artificial intelligence segment. HIVE's competitors, such as Mara Holdings , CleanSpark , Iris Energy , and Cipher Mining , have already shifted to this high-demand market, and the stock prices have been rewarded with significant appreciation. I think the market favors Bitcoin miners' business decision to reduce dependency on volatile crypto assets and diversify their business. This also reduces Bitcoin's cyclicality issues, which the miners face with its halving events. However, although HIVE has appreciated substantially over the past month, versus peers, it is the 4th best performing stock out of five. This signals to me that, despite Hive Digital already generating funds from artificial intelligence operations, the market has not priced that in yet. The company generated roughly $4.8 million in AI HPC revenue last quarter. HIVE: The Stock Performance Versus Peers (Seeking Alpha) To compare, CleanSpark has recently announced it will invest in HPC, yet has not generated any revenue from it, but the stock appears to be receiving more attention. I think that given HIVE's smaller market cap, the stock may be overlooked by the market, but with these changes and growing AI demand, I think investors may reprice the stock at a higher premium. The AI HPC market was valued at about $112 billion in 2024. It is expected to triple in size and reach roughly $360 billion in valuation by 2029. This suggests a 26.3% CAGR and supports a massive demand. I think that Hive Digital appears to be well-positioned in the market and is willing to scale, which could play as a tailwind for the years ahead. If AI demand continues at such a phenomenal pace, it is likely that a lot of different companies may be able to successfully compete and operate in the landscape. However, the legacy Bitcoin miner is early, and I think that may turn out well for the company if the trend of high growth for the segment continues. Bitcoin Seasonality And Pro-Crypto Administration The company announced its September Bitcoin production report. Hive Digital highlighted that it produced 267 Bitcoin, which represents 8% growth on a month-over-month basis, and 138% on a year-over-year basis. The Bitcoin miner has exceeded 21 EH/s , which leads to roughly 9 BTC mined per day. This is significant, and at the current price of the coin of about $125,000, this results in about $33.75 million in revenue from mining operations, if operations avoid any disruptions or technical issues. For instance, in their FQ1 2026 report, the company disclosed that over the past 3 months, Hive Digital generated $40.8 million in mining revenue. I think with the recent upgrades, it may be able to exceed the top-line number significantly. Furthermore, it underscores operational strength. Nevertheless, Hive Digital plans to scale further and is expected to reach 25 EH/s by November 2025. HIVE: Revenue (TTM) (YCharts) The last quarter of the year is the most bullish for the cryptocurrency landscape. The table below indicates that historically last three months of the year have resulted in about 79% growth on average, with roughly 48% in median return. This is significant and could act as a major tailwind for both cryptocurrencies and equities with exposure to crypto. HIVE: Bitcoin Seasonality (Coinglass.com) Although this does not guarantee a bullish year-end, the market may be positioning for one. Bitcoin has already increased from about $114,000 on October 1st to nearly $125,000 a week later, implying a roughly 8% increase. This is nowhere close to an average result yet, but if sentiment remains bullish, seasonality could play as a significant tailwind. The current administration is pro-crypto, and that is also shaping a more favorable approach and a more positive sentiment around cryptocurrencies. On July 18, the President signed the GENIUS Act , which builds a framework for stablecoins and may significantly contribute to the digital currency revolution. This is important, as this could initiate a more rapid adoption, which could result in sentiment improvement. On July 22, the report highlighted that only 14% adults in the US own cryptocurrencies, which appears to be insignificant. This also indicates that the crypto landscape is in its first innings, and with a pro-crypto administration, the trend may change. Furthermore, there are more companies that are adopting the Bitcoin treasury concept. This supports the bullish stance for the underlying asset, as the companies acquiring Bitcoin provide a floor price. Hive Digital is currently in the 32nd spot among publicly listed Bitcoin treasury companies with 2,201 Bitcoins. I think with crypto seasonality in place, Hive Digital may be able to significantly benefit from the underlying asset appreciation, which may drive the stock price higher. I believe that if Bitcoin seasonality materializes, HIVE appears to be well-positioned to benefit from it. The company continues to expand mining operations and has a substantial amount of coins on its balance sheet. The pro-crypto administration creates a clearer approach toward crypto, which may result in sentiment improvement. If more Americans adopt digital assets, the Bitcoin miners may be one of the key beneficiaries. Hive Digital Stock Appears To Be Undervalued And Overlooked The company trades at a forward P/E (GAAP) of 14.59 , which appears to be undervalued. This signals more than 2x lower valuation than the sector median of 31.21. The PEG (GAAP) on a TTM basis of 0.31 supports the bullish narrative for the stock, as the company trades at a 3x discount compared to the industry's average of 1.04. The forward EV/Sales and Price/Sales at 2.93 and 2.98, respectively, appear to be roughly 15% lower than peers at the midpoint, versus 3.54 and 3.49. This justifies my thesis that Hive Digital may be overlooked. The following valuation metrics indicate that the legacy miner growth has not been priced in yet, and if management continues to execute, the market may reward it with a premium sooner rather than later. HIVE: Price To Book Value (YCharts) On the upside, Hive Digital appears to be a low-leverage company. It has about $40 million in total obligations. The company has $58 million in cash, which could be used to pay down the debt with ease. This is positive for the stock, as it leaves financial flexibility for management to use debt instruments, if needed. HIVE: Capital Structure (Seeking Alpha) The company grew its top-line by roughly 4% over the past 12 months. However, with the recent quarterly report, highlighting about 42% revenue growth versus the same quarter last year, it seems that the double-digit revenue growth has resumed. With Bitcoin seasonality in place, expansion in mining operations, and scale into the high-demand AI industry, I think the company may be able to achieve a double-digit growth rate in the following years. The diluted EPS grew by 42.43% over the past year, which appears to be significant and highlights roughly 4x outperformance compared to the sector median of about 10%. This is substantial, and if management continues growing the bottom line in double digits, the stock may be repriced at a higher multiple. Hive Digital Technologies operates at a significantly higher than market-like net income margin (TTM) of 39.10% , and that is an additional argument for a bullish outlook. This underscores nearly 8x advantage compared to the sector median of about 4.50%. This also supports the thesis that HIVE may appear to be a compelling long-term opportunity for investors who favor crypto and AI exposure. I think the company is well-positioned to ride both of the trends in the future years, if management continues to execute well and growth plans materialize. HIVE: EBITDA Margin (TTM) (YCharts) Wall Street anticipates $0.31 in diluted EPS for fiscal FY2026. This would put the stock at a forward P/E of around 14.39. I think this is a rational forecast, and I agree with this estimate. If we apply a market-like earnings multiple of about 23x , we come in at my price target of about $7. I think AI-related names may continue trading at a premium to the market, and if management can sustain double-digit revenue growth, with significant tailwinds ahead, I think Hive Digital may be rewarded with an earnings multiple of the benchmark. Main Risks And Concerns There are risks and concerns tied to Hive Digital Technologies, which could meaningfully impact the stock price performance in the short term. Bitcoin seasonality is not guaranteed, and tailwind may turn into headwind. If the cryptocurrency landscape experiences a dramatic shift in sentiment, the company is likely to correct along with coins and equities with crypto exposure. Although the company is diversifying its business and pivoting to AI HPC, it may take time for the market to view HIVE as a dual model business. This could weigh on the stock price and result in the company trading at a discount further. There are concerns tied to AI HPC demand. So far, it seems that the market is extremely bullish on the AI-related theme. Multiple names, and legacy miners included, who pivoted to AI-related operations, have been significantly rewarded by the investors. However, if this high demand weakens or sentiment around it shifts, it could result in a market correction. Hive Digital Technologies is heavily investing in mining operations and is expected to achieve 25 EH/s by November, later this year. I think that positive sentiment around the stock is also tied to this goal, which would mean roughly 20% improvement from the current 21 EH/s operations. If the company is not able to achieve this goal or faces disruptions, this could lead to a weaker sentiment, which may impact the stock price. Regardless, if none of the above risks and concerns materialize, the company may experience significant upside given its tailwinds ahead. Conclusion: Small-Cap Name With Massive Potential Hive Digital appears to be a compelling long-term opportunity for investors who are seeking to diversify in a high-growth AI and Bitcoin mining name. Both of the trends are currently experiencing a massive demand, which, combined with the company's good execution and further operational expansion, could lead to a stock trading at a premium. The recent quarterly report indicates resumed revenue growth, and if the trend continues, the market may reprice this small-cap stock. Furthermore, the Fed's stance is dovish, and it is an additional tailwind for this interest-sensitive name. Although it's a low-leverage business, it tends to move together with a small-cap equity basket. I think Hive Digital Technologies is a Buy, with a $7 price target, highlighting about 28% upside. Time will tell, but if tailwinds materialize, the legacy miner appears to be well-positioned to benefit from them. 8 Wall Street analysts forecast a $7.38 price target for the stock over the next 12 months. This is in line with my projection, and is definitely a possibility if the tailwinds play out.
