HIVE Digital Technologies aims to generate $75 million through a private offering of 0% exchangeable senior notes, with the funds primarily allocated for GPU acquisitions and data center growth. An additional $15 million may be raised as part of this offering, which is set to be issued by a wholly owned subsidiary and made available to qualified institutional buyers. The notes, which are due in 2031, will not pay regular interest and will be fully guaranteed by HIVE.
On Thursday, HIVE's shares fell by 11.5%, reflecting broader market conditions as the CoinShares Bitcoin Mining ETF also declined by 1.5%. Notably, HIVE represents 4.89% of the ETF's holdings. The company is preparing to enter capped call transactions to mitigate potential dilution resulting from future conversions of the notes.
HIVE has received conditional approval to list on the Toronto Stock Exchange, with trading anticipated to start later this month, contingent upon fulfilling listing criteria. The firm continues to diversify beyond Bitcoin mining, having reported a significant revenue increase of 219% year-over-year in the third quarter, despite challenges in the Bitcoin market.