HIVE Digital Technologies is a buy, Roth Capital says

HIVE Digital Technologies (HIVE Digital Technologies Stock Quote, Chart, News, Analysts, Financials NASDAQ:HIVE) is rapidly scaling its Bitcoin mining operations, surpassing 8.3 EH/s and staying on track to hit 18 EH/s by late summer, an expansion fully funded through BTC-backed equipment deals.

Roth Capital’s Darren Aftahi, who maintained his “Buy” rating and $6.00 target in a May 15 update, says the company’s Paraguay buildout puts it on a clear path to 25 EH/s and positions it to significantly boost efficiency, margins and profitability in 2026.

HIVE says it remains on track to reach 11.5 EH/s by June.

The company’s upgrade is being driven by new facilities in Paraguay. Once operational, all three sites in the country could support up to 25 EH/s, placing HIVE among the world’s largest publicly listed Bitcoin miners.

“With all three 100MW Paraguay sites scheduled to be online by year-end, HIVE has a clear path to 25 EH/s (with purchase options beyond 18 EH/s),” Aftahi said. “This scale should improve HIVE’s efficiency and profitability closer to peers. Its BTC-based financing agreement also uniquely preserves potential upside while avoiding equity dilution, but additional spend is needed to reach 25 EH/s.”

Aftahi thinks HIVE will do $39.8-million in Adjusted EBITDA on revenue of $115.3-million in fiscal 2025. The analysts thinks those numbers will improve dramatically to $95.9-million on revenue of $283.7-million in fiscal 2026.

In a May 15 press release, HIVE said the added capacity should begin to lower the company’s cost to mine Bitcoin and improve margins by fall 2025.

HIVE used a portion of its Bitcoin holdings during the quarter to acquire new ASIC mining equipment under a special agreement. The company pledged Bitcoin at a fixed price of US$87,000 per BTC and secured the option to repurchase the same amount at that price, preserving upside potential if Bitcoin prices rise.

This deal allowed HIVE to expand its mining fleet without significant cash spending or issuing new shares while maintaining BTC exposure. The agreement was made while Bitcoin prices were under pressure due to global trade tensions, giving HIVE room to grow while markets stabilize. As of now, HIVE holds 610 BTC and aims to rebuild its treasury while targeting 25 EH/s of mining capacity.

HIVE said using BTC mined during previous cycles, when prices were much lower, is a strategic way to fund expansion while retaining the chance to reclaim Bitcoin as prices climb.

“Based on current Bitcoin mining rewards, at 18 EH/s, HIVE would be mining approximately 10 Bitcoin per day,” said Frank Holmes, Co-Founder and Executive Chairman of HIVE. “With Bitcoin over US$100,000, HIVE is positioned to do almost US$1,000,000 in daily revenue by this summer with our fully-funded growth plans. This achievement demonstrates HIVE’s ability to responsibly scale operations with green energy while securing the Bitcoin network and driving long-term shareholder value. We are proud to lead the next wave of innovation in digital infrastructure.”

Aydin Kilic, President and CEO of HIVE, said this pace of deployment underscores the strength of the company’s infrastructure strategy and its commitment to operational excellence.

“We are also increasing our global fleet efficiency,” Kilic said. “We will be at 20 J/TH globally once we are at 11.5 EH/s before the end of June 2025, and 19 J/TH when we are at 18 EH/s by the end of summer 2025. Overall, this improvement in our global fleet efficiency means less energy will be required per Bitcoin mined, and as we execute on our 300 MW growth in Paraguay, our global cost of power is expected to decrease as well. HIVE estimates its average cost of Bitcoin production to decrease by 10-20% by autumn 2025, based on lower global average energy prices and improved global fleet efficiency.”

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