On Monday, HIVE Blockchain Technologies (NASDAQ:HIVE) maintained its Neutral rating and $4.00 stock price target from H.C. Wainwright. The firm acknowledged the company's announcement of a new 100 MW Bitcoin mining facility in Paraguay, which is expected to more than double HIVE's current hash rate capacity.
The anticipated growth follows HIVE's recent purchase of 500 S21 Pro miners from Bitmain, anticipated to increase the hash rate to 5.6 EH/s once operational.
HIVE Blockchain Technologies, which concluded June with a deployed hash rate of 4.9 EH/s, has unveiled plans to expand this capacity to over 12 EH/s within the next year. The new development site in Paraguay is projected to support an additional 6.5 EH/s of capacity upon completion. This expansion is part of HIVE's strategy to diversify its global mining operations, which already span Canada, Sweden, and Iceland.
The Paraguay facility will leverage renewable hydroelectric power sourced from the Itaipu Dam, underscoring HIVE's commitment to renewable energy in its mining endeavors. The company's expansion efforts are in line with its strategy to bolster its operations through sustainable energy sources.
Following the news of the upcoming facility and the miner purchase, HIVE shares saw a 1.7% increase, aligning with movements in the Nasdaq. The company's growth prospects have become clearer to investors with the latest developments, although H.C. Wainwright awaits further improvements in mining economics and progress on the Paraguayan site's construction before adopting a more positive stance on the stock.
InvestingPro Insights
As HIVE Blockchain Technologies (NASDAQ:HIVE) sets its sights on significant expansion, recent data from InvestingPro provides a mixed perspective on the company's financial health and stock performance. With a market capitalization of $513.83 million, HIVE's aggressive growth strategy is reflected in its substantial revenue growth of 102.38% in Q4 2023. This growth is bolstered by HIVE's strategic investments in mining capacity, which may further enhance its revenue streams.
Investors tracking HIVE's performance will note the stock's volatility, with significant returns over various periods, including an 8.07% increase over the last week and a 34.74% jump over the past month. These fluctuations underscore the dynamic nature of the cryptocurrency mining industry and HIVE's position within it. Despite not being profitable over the past twelve months, HIVE's liquid assets do exceed its short-term obligations, which may provide some stability as the company scales up operations.
For those considering an investment in HIVE, there are additional InvestingPro Tips available that delve deeper into the company's financial metrics and stock performance. These tips can help investors make informed decisions, with the added benefit of using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With 14 additional tips listed on InvestingPro, potential investors have access to a wealth of information to guide their investment strategies.
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