HIVE to phase down bitcoin mining in Sweden as it expands AI data center capacity in Canada

HIVE Digital Technologies (HIVE) said Monday it is reducing Bitcoin hashrate production at its Boden facility in Sweden as the company shifts its focus toward artificial intelligence and high-performance computing infrastructure.

In a statement, the company said its Swedish subsidiaries have faced increasing challenges in their traditional hashrate production business, including enforcement actions and what it described as "misapplications of existing tax rules" by Swedish authorities. HIVE said authorities imposed a security deposit requirement tied to disputed tax assessments despite the company receiving supportive opinions from several law firms, a tier-1 accounting firm, and local academics specializing in Swedish value-added-tax matters.

Those developments have created operational uncertainty and limited the company's ability to continue operating its ASIC-based hashrate production model on a consistent economic basis, HIVE said. As a result, the company is redeploying resources toward its expanding AI and high-performance computing strategy in Europe and said it will also explore a broader phase-out of its bitcoin (BTC) hashrate production model in Sweden.

AI infrastructure expansion

The transition is already underway at HIVE's 7-megawatt data center in Boden, which the company said is being upgraded to Tier-III high-performance computing standards capable of supporting enterprise-grade GPU clusters. Construction is in progress, and the facility is expected to support clusters based on the NVIDIA GB300 GPU architecture designed for AI training and inference workloads.

At the same time, HIVE said its BUZZ High Performance Computing subsidiary is expanding its liquid-cooled AI data center footprint in Canada. The company plans to increase capacity from 4 MW in Manitoba to 16.6 MW across two provinces through its strategic data center partnership with Bell Canada AI Fabric.

The expansion includes a new colocation facility in British Columbia, providing an immediate 5 MW of capacity, with an option to scale by an additional 7.6 MW. HIVE said the new facility could support the deployment of about 2,000 next-generation AI-optimized GPUs, complementing capacity for roughly 2,000 GPUs at its existing Manitoba site.

In total, HIVE said it now has a near-term ramp to more than 4,000 GPUs in Canada and a growth path to more than 6,000 GPU deployments through its data center partnerships and its own facilities. The company is targeting about $200 million in contracted annualized run-rate revenue from its high-performance computing business by the end of its fiscal year ending March 31, 2027, it said.

HIVE's strategy reflects a broader trend among publicly traded bitcoin miners seeking additional revenue streams beyond traditional mining operations. While bitcoin mining ASIC machines are designed specifically for hashing and cannot run AI workloads, operators often control large power contracts, data center facilities, and advanced cooling systems that can be adapted for GPU clusters used in artificial intelligence training and inference.

Shares in HIVE traded up around 5.6% early Monday following the news, though the stock remains down around 16.7% year-to-date.