HIVE and Keel Intensify Focus on AI Data Centers Through Funding and Asset Divestment
HIVE secures $115M to bolster data center operations while Keel withdraws from Latin America, channeling resources into high-performance computing and AI initiatives, with both stocks climbing 4%.
Key Takeaways:
— HIVE Digital obtained $115 million via a zero-interest convertible note to expand Tier III data centers and increase GPU capacity for AI and high-performance computing tasks.
— Keel Infrastructure divested its Paraguay facility for $13 million, finalizing its departure from Latin America and redirecting capital toward its North American AI and HPC projects.
Mining companies HIVE Digital (HIVE) and Keel Infrastructure (KEEL) are intensifying their investments in artificial intelligence (AI) infrastructure, reflecting a broader industry trend moving away from bitcoin mining.
HIVE Digital raised $115 million through a zero-interest convertible note offering, with funds designated for expanding its global data center network and GPU capabilities, according to a Wednesday announcement.
The company has been increasingly focusing on Tier III data centers in Canada, Sweden, and Paraguay, preparing them for bitcoin mining, AI, and high-performance computing (HPC) workloads. The capital raise, combined with capped call protection to minimize dilution, aims to accelerate this expansion.
Keel, on the other hand, is funding its transition by reducing its footprint. The company finalized the sale of its 70 MW Paraguay site for approximately $13 million, below initial projections, due to worsening bitcoin mining economics. This move completes its exit from Latin America and follows its recent rebrand from Bitfarms to Keel Infrastructure.
“This is a clean exit from Latin America,” CEO Ben Gagnon stated. “We are focused and committed to building the infrastructure backbone to support the AI economy in North America.”
Gagnon noted that the proceeds effectively bring forward “two to three years” of expected cash flow, which will now be redeployed into Keel’s HPC and AI pipeline.
Shares of both companies have risen roughly 7%, following the announcements.