Since the end of Ethereum mining in September 2022, former crypto mining firm HIVE Digital Technologies has been transforming its considerable GPU resources into a cloud infrastructure powerhouse.
As per a recent X post, the move reflects the shift from cryptocurrency mining to a broader focus on data centre operations and artificial intelligence applications. In 2017, the company, formerly known as Hive Blockchain, primarily mined Ethereum using GPUs, capitalizing on the higher profit margins compared to Bitcoin mining. According to experts, Ethereum’s anticipated transition to proof-of-stake (the Merge) had kept many miners at bay, offering HIVE a unique opportunity.
Since ETH mining ended in September 2022, $HIVE has been transforming its fleet of 38,000 Nvidia GPUs from miners into cloud infrastructure, marking the next stage of our evolution into a diversified data center operator.
Read the latest HIVE Newsletter: https://t.co/raHqwMMalv pic.twitter.com/tHkVuLMtyT
— HIVE Digital Technologies (@HIVEDigitalTech) August 17, 2023
However, as the Ethereum landscape evolved, HIVE began to diversify its operations. In April 2020, the company made a significant move into Bitcoin mining by acquiring a 30 MW facility in Lachute, Canada, followed by the purchase of GPU One’s 50 MW (later expanded to 70 MW) site in New Brunswick, Canada. These two sites now form the core of HIVE’s 3.3 Exahash of active Bitcoin mining capacity.
Repurposing Nvidia GPUs
The game changed in September 2022 when Ethereum’s long-awaited Merge brought an end to ETH mining. Undeterred by this development, HIVE embarked on a strategic shift to reposition itself as a diversified data centre operator. The company began converting its 38,000 Nvidia GPUs, previously used for mining, into a powerful GPU cloud infrastructure.
This transformation is especially timely given the growing demand for cloud services and artificial intelligence applications. Nvidia, the California-based tech giant behind the GPUs, has reportedly seen its stock soar by 53% since its May earnings report, which sparked the AI frenzy that drove the bullish trend on the Nasdaq 100. Notably, Nvidia’s stock has surged an impressive 221% since January and is now up 315% since last October. This growth has been fueled by the company’s strong financial performance and ability to capitalize on the AI boom.
According to Forbes, a behemoth news outlet, Nvidia’s stock has witnessed an uptick, with its price-to-earnings ratio, a metric comparing share price to the company’s earnings over the past year, skyrocketing from around 50 to an astounding 250 since the previous autumn. This surge starkly contrasts the median P/E ratio of 25 for all S&P companies.
Analysts bullish on Nvidia
Despite the impressive gains, many analysts believe Nvidia’s stock still has room to grow. Per Forbes, the consensus price target of $538 implies a 12% upside. Rosenblatt Investment Bank & agency broker`s analyst Hans Mosesmann, whose $800 target is the highest on Wall Street, wrote that Nvidia “stands in a league of its own when it comes to software and AI solutions.” He believes that Nvidia could be valued at $2 trillion, making it the fourth-largest company in the world, trailing only Apple, Microsoft, and Saudi Aramco.
"This is the mother of all cycles."@RBLTSecurities analyst Hans Mosesmann thinks $NVDA's AI-fueled surge this year can still climb even further, raising his price target on the stock to a Street high of $800. pic.twitter.com/Fgaoz6fmXP
— Squawk on the Street (@SquawkStreet) August 18, 2023
In related reports, according to a recent post, Nvidia has begun rolling out access to PC Game Pass and Microsoft Store titles on its GeForce Now streaming service. Starting August 24th, PC Game Pass subscribers will be able to stream first-party Microsoft games like Deathloop and Grounded, as well as third-party titles like No Man’s Sky and Mount & Blade II: Bannerlord, according to the report.
and then