HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE)’ executive chairman Frank Holmes talked with Proactive about the company's strategic transformation of its digital infrastructure assets.
Holmes explained how HIVE is converting its global network of Tier 1 Bitcoin mining data centers into Tier 3 supercomputing AI campuses, beginning with its operations in Grand Falls, New Brunswick.
He also pointed to HIVE’s broader expansion, including a GPU-powered partnership with Bell Canada in Manitoba and additional development in Sweden and Toronto.
HIVE plans to deploy over 25,000 next-generation GPUs, aiming to tap into the rising demand for AI compute capacity, including use cases for open chat platforms and large language models.
Holmes highlighted that this transformation is expected to generate significant revenue, estimating between $1.3 billion and $1.5 billion once operations scale.
On the mining side, he confirmed that HIVE has reached 23 exahashes per second (EH/s), maintaining strong 50% margins despite industry challenges. The company is targeting a further 10 EH/s growth from a 100MW expansion in Paraguay.
Proactive: Welcome back inside our Proactive newsroom. And joining me now is Frank Holmes. He is the Executive Chairman of HIVE Digital Technologies. Frank, great to see you again. How are you?
Frank Holmes: Outstanding, my friend.
Good to have you along. I know that you had another exahash number, and we’ll get to that in just a second. But you also, in the latest news release, talked about finalizing the acquisition of additional space in Grand Falls, New Brunswick. I know that you’ve got operations in Toronto and other places. Tell me about New Brunswick.
What’s happening around the world is that Bitcoin miners were first to source stranded or surplus electricity and monetize it economically. With that, they had to build the basic infrastructure of a data center — called Tier 1 — and often a substation as well, if you had around 100MW. Today, we’re seeing examples like the Stargate project in Abilene, Texas — a $500 billion data center that started with Bitcoin mining using flare gas, solar, and wind electricity.
We looked at our assets, such as in New Brunswick, where we have 70MW currently used for Bitcoin mining, and decided to convert it. Starting from scratch can take three years to go from Tier 1 to Tier 3. But if you’ve already built a substation, it can take just nine months. So, we’re buying more real estate around our existing infrastructure, forming a campus of several data centers that we’ll convert into Tier 3.
Frank, we're talking about more than 25,000 next-generation GPUs. This is not a small operation. Tell me about demand. Where is it coming from — Canada or elsewhere?
America is way ahead of the rest of the world. Canada has created an AI mission and data center mission, which is fantastic. But the big growth is in open chat — 70% of the Stargate project’s spend is for open chat. Other large language models like Claude are also growing. We’re seeing more and more corporate demand.
We have a transaction with Bell Canada — four megawatts in Manitoba — where our GPU chips will go in over the next 3–4 months. That will make us the biggest in Canada. Our 70MW already going through transformation is significant. As for the 25,000 GPUs, the Blackwells are earning over $5 an hour, meaning $1.3 billion to $1.5 billion in potential revenue when the center is fully operational. The demand is huge and not slowing down. As JENSA says, this is an industrial revolution.
And still on track with Sweden and Toronto?
Yes. Boden is going well. There’s big demand. Microsoft is building 100MW there. In San Antonio, where I’m based, Canadian pension funds are investing in data centers. It’s a major hub for Tier 3 and Tier 4, due to the military and NSA presence. Canadian capital can now stay in Canada to invest in this buildout. Toronto is also a center of AI talent, with a Nobel Prize winner last year and another Canadian Nobel win this year in economics, emphasizing the role of innovation in economic growth.
Lastly, Frank, with US Thanksgiving approaching, you’ve reached 23 EH/s in your latest update. Things seem to be going well for mining.
Mining is harder than ever, but we’re still pushing 50% margins, which is healthy. We’ve gone from 20 to 23 EH/s, and it’s exciting. We’ll redeploy that cash flow into more growth. Next year, we’ll grow another 100MW in Paraguay — that’s another 10 EH/s. There’s a huge growth profile. Later, we’ll convert many of those Bitcoin Tier 1 data centers into HPC in countries like Paraguay. We feel we’re riding a supercycle and trade at very attractive relative multiples.
Quotes have been lightly edited for clarity and style