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Hive Digital Technologies, a blockchain infrastructure firm, has announced the deployment of advanced Nvidia GPUs in Quebec, marking a significant shift toward high-performance computing (HPC) and artificial intelligence (AI).
From Crypto to AI: Hive Digital’s $30M Leap
This week company noted that it has invested $30 million in Nvidia H100 and H200 GPU clusters, enabling Hive to support AI and cloud computing needs while diversifying its revenue streams beyond bitcoin (BTC) mining. The expansion is expected to generate over $35 million in annualized revenue by mid-2025, according to the company.
The H100 cluster, comprising 248 GPUs, has been installed and is set to become operational by the end of 2024. Meanwhile, the H200 cluster, with 508 GPUs, is scheduled for deployment in early 2025. Both clusters, the company disclosed, will leverage renewable energy sources in Quebec, aligning with Hive’s sustainability goals.
Hive’s entry into AI-driven HPC is positioned as a response to the growing demand for AI capabilities in industries such as healthcare, education, and creative media. Aydin Kilic, Hive’s CEO, emphasized the collaboration with Nvidia and the company’s experience in managing GPUs for AI applications as key enablers for the transition.
“Over the past year, we have collaborated closely with Nvidia and their OEM vendors, conducting thorough technical diligence. This partnership has enabled us to deepen our expertise in operating GPUs for AI compute applications, meeting the stringent uptime requirements for HPC and AI end-users. Notably, we successfully scaled operations to bring over 4,000 Nvidia A-series cards online, alongside HIVE’s initial purchase of 96 Nvidia H100 GPUs a year ago.”
The move highlights a broader strategy to diversify bitcoin mining operations in order to bolster lost revenue miners once had before the fourth halving event this past April. The company aims to convert existing bitcoin mining infrastructure into tier-3 data centers for HPC services, which it claims offer higher margins compared to cryptocurrency mining.