HIVE Digital Applied sciences (HIVE) shares climbed as a lot as 40% Monday after the bitcoin mining agency stated it spent $58 million shopping for land in Toronto to develop an industrial-scale AI middle.
The land, bought by way of the corporate’s BUZZ Excessive Efficiency Computing subsidiary, will assist about 320 megawatts (MW) of capability and greater than 100,000 graphic processing items (GPUs) when totally outfitted, turning into considered one of “Canada’s largest gigafactories,” the corporate stated.
The funding comes amid a broader shift away from bitcoin mining and into AI knowledge facilities. Simply two weeks in the past, HIVE raised $115 million, with proceeds earmarked for increasing its international knowledge middle footprint and GPU capability. The corporate has more and more leaned into knowledge facilities throughout Canada, Sweden and Paraguay, positioning them for bitcoin mining, AI and high-performance computing (HPC) workloads.
“Compute is the brand new engine of the AI financial system,” Craig Tavares, BUZZ HPC’s president, stated in a press release. “If Canada desires to guide in AI, we have to construct the factories that produce intelligence right here at house. Canada has the clear power, community connectivity and analysis ecosystem to guide AI innovation all over the world.”
Shares of the corporate surged to as excessive as $3.92 on Nasdaq, and had been lately buying and selling 26% greater at $3.38.
Canada-based BUZZ HPC accomplished the strategic acquisition of about 21 acres of land for $46 million and an adjoining 4-acre website for $12 million.
The transaction locations large industrial-scale compute immediately inside Canada’s largest metropolitan financial system and considered one of North America’s premier hubs for know-how, monetary companies and synthetic intelligence, in keeping with HIVE, which relies in San Antonio, Texas.
HIVE now has over 850 MW of energy globally, together with 450 MW of working knowledge facilities plus a pipeline of 400 MW of capability, which it expects to carry on-line in 2027.
