HIVE Digital Technologies Ltd (TSX:HIVE, NASDAQ:HIVE, FRA:YO0, BVC:HIVECO) announced that it has signed a non-binding letter of intent with an investment-grade sovereign Swedish technology company for a potential lease of its 32-megawatt data center in Boden, Sweden, for a term of up to 10 years.
The announcement follows the June 18 approval by the Boden Municipal Council of HIVE's acquisition of the facility from Bodens Utvecklings AB.
Under the proposed arrangement, the client would utilize approximately 25 megawatts of IT capacity at the site for high-performance computing (HPC) colocation services.
HIVE said it expects to retrofit the facility to support as many as 10,000 Nvidia GB300 GPUs, using a combination of direct-to-chip liquid cooling and air cooling.
The site's total utility load is 32 megawatts, corresponding to about 25 megawatts of usable IT capacity.
HIVE has operated in Boden since 2018 and said it has previously managed about 130,000 GPUs in the region.
HIVE’s executive chairman Frank Holmes said the agreement reflects the company's long-term investment strategy in Nordic infrastructure and its focus on developing sovereign artificial intelligence computing capacity.
“As we expand our global footprint from Canada to Paraguay to Sweden, each milestone reflects the same conviction: sovereign AI infrastructure is one of the most important buildouts of our generation, and HIVE is building it,” Holmes said.
Aydin Kilic, HIVE CEO, described the Boden facility as a strategic asset that has transitioned from supporting Ethereum-related GPU computing to becoming a high-density, liquid-cooled AI infrastructure site.
He said the company expects the project could generate recurring revenue and provide stable cash flows if a long-term lease agreement is finalized.
Johanna Thörnblad, HIVE's Country Site President for Sweden, said the agreement represents both a commercial milestone and support for Sweden's digital sovereignty initiatives.
The agreement remains subject to the negotiation and execution of a definitive contract.
Separately, HIVE announced that its wholly owned subsidiary, HIVE Bermuda 2026 Ltd., intends to offer $100 million of 0% exchangeable senior notes due 2031 in a private placement to qualified institutional buyers. The issuer also expects to grant initial purchasers an option to buy up to an additional $15 million of notes within 13 days of issuance.
The notes will be exchangeable under certain conditions into cash, HIVE common shares, or a combination of both, at the issuer's election. The securities will not bear regular interest and will be fully and unconditionally guaranteed by HIVE on a senior unsecured basis.
HIVE said proceeds from the offering are expected to be used for general corporate purposes, capital investments, including graphics processing unit purchases, and data center development. The company also plans to enter into capped call transactions designed to reduce potential dilution from future exchanges of the notes.