HIVE Blockchain stock upgraded to ‘Buy’: here’s why

Analysts at HC Wainwright & Co. believe HIVE Blockchain’s stock is now valuable due to its advances in artificial intelligence and high-volume computing.

HIVE Blockchain Technologies stock received an upgraded rating from analysts at HC Wainwright, who raised their rating to “Buy” from “Neutral” and raised their price target to $5 from $4.

The upgrade is being driven by HIVE’s promising outlook in the high-performance computing (HPC) and AI sectors. Currently trading at $2.90 on NASDAQ, the stock has fallen nearly 40% in recent weeks, a decline that analysts believe is exaggerated compared to the broader 7% decline in Bitcoin (BTC) mining stocks.

HIVE’s AI initiatives

This upgrade reflects confidence in HIVE’s strategy to expand its HPC/AI business.

Management aims to double annual HPC revenues to $20 million in the second half of 2024 and $100 million by 2025.

To support this growth, HIVE plans to convert 30 MW of its existing BTC mining infrastructure into Tier 3 data centers potentially housing 16,000 NVIDIA H200 GPUs.

Despite the challenges stemming from the Bitcoin halving event, HIVE reported solid F1Q25 results with total revenue of $32.2 million, $2.6 million of which came from HPC, a 44% increase from the prior quarter. Adjusted EBITDA for the quarter was $14.9 million, significantly beating estimates.

HIVE’s newest 100 MW field in Paraguay is expected to be fully operational in Q3 2025, bringing total capacity to 12.1 EH/s. However, analysts note that risks to the price target include BTC price volatility, network difficulty increases, and potential shareholder dilution.