Shares of crypto miner HIVE Digital (NASDAQ:HIVE) (TSE:HIVE) surged nearly 5% in early trading today after the company announced the purchase of 7,000 new Bitmain S21 Antminer units. This will allow the company to boost its Bitcoin (BTC-USD) mining capacity.
The units are expected to be delivered from January through June 2024. Notably, this order adds to HIVE’s two recent purchases of 5,000 and 4,800 S19 kPro Antminers. The company currently has an inventory fleet of 6.6 Exahash of ASICs. The new order is expected to boost this figure to 8 Exahash.
Upon installation, the new Antminers will take HIVE’s average fleet efficiency to 25 J/TH, and escalate its Bitcoin mining capacity to 5.8 Exahash. The company aims to expand production to 8 Exahash next year.
Earlier this week, HIVE announced a $25 million private placement financing to support the expansion of its data centers, adding 100MW of green energy and nearly 5 Exahash to its green Bitcoin mining footprint. At the end of November, HIVE’s HODL (Hold On for Dear Life!) position stood at 1,627 BTC.
Is HIVE a Good Investment?
2023 has been a bumper year for the crypto industry. Amid soaring cryptocurrency prices and the impending BTC halving, HIVE’s share price has soared by nearly 185% over the past year. Overall, the Street has a Moderate Buy consensus rating on HIVE Digital, and the average HIVE price target of $5.33 implies a modest 8.8% potential upside.
Read full Disclosure
