HIVE Digital secures $115 million for massive AI expansion

HIVE Digital Technologies has successfully finalized a $115 million fundraising effort to accelerate its expansion into the artificial intelligence sector. 

The company confirmed that its subsidiary, HIVE Bermuda 2026 Ltd., closed a private offering of exchangeable senior notes. These notes are unique because they carry a 0% interest rate and are set to mature in April 2031. 

Due to significant interest from institutional buyers, the deal was increased from its original $75 million target to the final $115 million total.

Expanding the AI footprint

The company expects to receive approximately $109.5 million in net proceeds from the deal. 

This capital is specifically designated for high-tech investments, including the purchase of graphics processing units (GPUs) and the further development of specialized data centers. 

By securing this funding at a zero-percent interest rate, HIVE aims to reach its 2026 growth targets for AI infrastructure while keeping its borrowing costs extremely low.

Aydin Kilic, President and CEO of HIVE, noted that the deal brings a new group of institutional investors to the firm. 

"We believe zero-interest rate debt signals the confidence investors have in our ability to drive the value of HIVE shares," Kilic stated. 

He explained that this financial strategy helps the company grow while minimizing the impact on the value of current shares.

A major stock exchange upgrade

Beyond the new funding, HIVE is preparing for a significant move in the public markets. The company has received conditional approval to list its common shares on the main Toronto Stock Exchange (TSX). 

HIVE expects to graduate from the TSX Venture Exchange to the main "big board" around April 30, 2026. This transition is subject to meeting final distribution requirements and is viewed as a major milestone for the firm’s global profile.

More on HIVE:

• HIVE outlines dual engine strategy for AI growth
• HIVE’s Paraguay gambit and new AI geography
• HIVE Digital targets quarter-billion in AI revenue this year

Terms and protection for shareholders

The notes can be converted into HIVE shares at an initial price of approximately $2.57 per share. To protect existing investors, HIVE also entered into "capped call" transactions. 

This financial tool sets an initial cap price of $4.92 per share, which is a 125% premium over the company's recent Nasdaq trading price.

Frank Holmes, Executive Chairman of HIVE, described the outcome as outstanding. 

"The strong demand for this offering led to an upsized deal while maintaining a 0% coupon and the strong conversion premium," Holmes said. 

These combined moves position the company to provide scalable and environmentally responsible solutions for the modern digital economy.

Related: Dell and HIVE partner to deploy Nvidia’s next-generation AI chips