Bitcoin Miner HIVE Invests $30M in GPUs Eying HPC Growth

HIVE has announced a $30 million investment in NVIDIA H100 and H200 GPU clusters to drive growth for its high-performance computing (HPC) segment and further diversify its Bitcoin mining revenue.

The Canadian-based Bitcoin mining and HPC cloud provider stated in a release on Tuesday that its H100 GPU clusters will be operational by the end of 2024, while the H200 clusters are expected to arrive at its Quebec facility in early January 2025.

HIVE projects that the H100 GPUs will generate an annualized revenue run rate of $15 million upon full deployment to customers. The H200 GPUs are anticipated to contribute over $20 million in annualized revenue starting in Q2 2025.

The move reflects a growing trend among Bitcoin mining companies diversifying into HPC to offset challenges posed by Bitcoin’s hashprice squeeze, which has intensified following the recent halving. HIVE’s HPC segment accounted for 8.3% of total revenue in Q3 2024, up from just 1.3% in Q1 2023.

“The revenue potential from just 10 MW of HPC NVIDIA chips is comparable to 100 MW of Bitcoin mining,” said Frank Holmes, HIVE’s executive chairman. His comments come amid continued pressure on Bitcoin miners, as the cryptocurrency’s hashprice dropped to $55/PH/s on Tuesday following a pullback in Bitcoin’s price and an all-time high in network difficulty.

HIVE’s announcement comes as other publicly traded mining companies also expand into HPC, leveraging existing and new power capacities. Terawulf recently disclosed plans to lease 70 megawatts of its New York facility to UAE-based AI firm G42 for GPU hosting. The partnership is expected to generate an annualized revenue potential of $1.5 million per megawatt for Terawulf.