HIVE Blockchain stock upgraded to 'Buy': here's why

Analysts at H.C. Wainwright & Co. believe that HIVE Blockchain’s stock is now valuable due to their advances into AI and high-volume computing.

HIVE Blockchain Technologies’ stock has received an upgraded rating from analysts at H.C. Wainwright. They have upgraded their rating from “Neutral” to “Buy,” and their price target has been raised from $4 to $5.

This upgrade is driven by HIVE’s promising outlook in the high-performance computing (HPC) and AI sectors. The stock, currently trading at $2.90 on NASDAQ, has fallen nearly 40% in recent weeks, a drop analysts believe is overdone compared to the broader 7% decline in Bitcoin (BTC) mining stocks.

HIVE’s AI ventures

The upgrade reflects confidence in HIVE’s strategy to expand its HPC/AI business

Management aims to double annualized HPC revenues to $20 million in the second half of 2024 and reach $100 million by 2025

To support this growth, HIVE plans to convert 30 MW of its existing BTC mining infrastructure into Tier 3 data centers, potentially housing 16,000 NVIDIA H200 GPUs.

Despite challenges from Bitcoin’s halving event, HIVE reported solid F1Q25 results, with $32.2 million in total revenue, including $2.6 million from HPC, a 44% increase from the previous quarter. Adjusted EBITDA for the quarter was $14.9 million, significantly beating estimates.

HIVE’s newest 100 MW site in Paraguay is expected to be fully operational by Q3 2025, boosting total capacity to 12.1 EH/s. However, analysts note that risks to the price target include BTC price volatility, network difficulty increases, and potential shareholder dilution.