HIVE and Keel Boost AI Data Center Presence with Fresh Funding and Strategic Asset Sale

In a move that underscores the growing trend of mining companies shifting focus towards artificial intelligence infrastructure, HIVE Digital and Keel Infrastructure are intensifying their investment in AI data centers, marking a significant departure from their exclusive focus on bitcoin mining. HIVE has successfully raised $115 million through a convertible note offering, with the funds allocated for the expansion of its global data center network and enhancement of GPU capabilities, as announced on Wednesday. The company has been strategically developing Tier III data centers across Canada, Sweden, and Paraguay, designed to support a range of applications including bitcoin mining, AI, and high-performance computing. This capital injection, complemented by measures to mitigate dilution, is set to accelerate the development of these facilities. Conversely, Keel Infrastructure is funding its strategic pivot by streamlining its operations. The company has finalized the sale of its 70 MW Paraguayan site for approximately $13 million, slightly below initial projections, citing the declining economic viability of bitcoin mining. This sale marks Keel's exit from the Latin American market and follows the company's rebranding from Bitfarms to Keel Infrastructure. According to CEO Ben Gagnon, 'This transaction represents a clean exit from Latin America, aligning with our commitment to building the foundational infrastructure for the AI economy in North America.' Gagnon further noted that the sale proceeds will effectively advance the company's anticipated cash flow by two to three years, which will be reinvested in Keel's HPC and AI development pipeline. The announcements have been positively received, with shares of both companies experiencing a roughly 7% increase.