Key Points
- HIVE indicates that its 32-megawatt Big Boden facility located in Sweden can generate $45 million in AI hosting revenue annually.
- The proposed 10-year arrangement is not yet binding, and the financing and final leasing terms are still under negotiation.
- This project is independent of the annualized revenue of $185 million in cloud services from GPU that HIVE has contracted with.
Bitcoin mining company HIVE Digital Technologies is aiming to generate an annual revenue of 45 million US dollars through its data center project located in Sweden, AI, but the company has not yet finalized the final lease agreement.
In the latest financial report update, HIVE reiterated that its 32-megawatt Big Boden facility can generate the aforementioned revenue through a long-term management arrangement. However, this revenue is dependent on the signing of the final agreement, the implementation of financing, the upgrade of the facility, and the project being put into operation.
The company first disclosed this proposal in June. The project involves an unnamed Swedish technology company with investment-grade qualifications, and the envisioned lease term can extend up to 10 years. HIVE CEO Aydin Kilic stated during the financial report conference call on Tuesday that both parties are negotiating regarding the security deposit, termination rights, and other terms that may affect financing costs. He also mentioned that an advisor from one of the lenders visited the project site the previous week.
According to the transcript of the financial report conference call, Kilic stated: "We don't want to hastily conclude a deal just to report new revenue growth."
HIVE is expected to seek financing for the Boden project after signing the lease, with potential methods including corporate bonds. The company has not yet announced the completion time of the negotiations.
Shift from encrypted mining to AI infrastructure
The existing data centers still require large-scale renovation. The HIVE plan is to modify them to accommodate up to 10,000 NVIDIA GB300 GPU, and liquid cooling will be adopted to support high-density computer racks.
Although the facility has access to 32 megawatts of utility power, the proposed customers will have approximately 25 megawatts of available computing capacity, with the remaining power being used to support the operation of the data center.
When announcing the letter of intent, Kilic stated: "This site has evolved from an Ethereum-supported GPU computing facility." At that time, he described the project as being planned to be transformed into a more powerful AI facility.
This expansion is part of a broader strategy by HIVE to move the business beyond Bitcoin mining, and this transformation has already led to several large-scale GPU cloud contracts.
In June, HIVE signed a significant AI computing agreement with Bell Canada and Cohere for a period of three years, covering 2,304 NVIDIA GPU. This indicates that they are further expanding their business beyond cryptocurrency mining.
HIVE currently reports that its contracted GPU cloud services have an annual operating revenue of 185 million US dollars, but only 40 million US dollars of this has been put into operation. The remaining amount represents the capacity that has been contracted but not yet put into service.
The company's goal is to achieve an annualized high-performance computing revenue of approximately $700 million by the end of 2028, although this figure includes projects that still require additional financing, construction, and customer commitment support.
For the Boden project, the next milestone for HIVE is to finalize the final lease agreement before proceeding with project financing.
