HIVE and Keel Boost AI Data Center Investments with Fresh Funding and Asset Divestment

In a strategic move to reinforce their presence in the artificial intelligence infrastructure sector, HIVE Digital and Keel Infrastructure are intensifying their focus on AI data centers, marking a significant shift away from exclusive bitcoin mining. HIVE has successfully raised $115 million through a convertible note offering with zero interest, allocating the funds to expand its global data center network and enhance GPU capacity. This development was announced on Wednesday, highlighting the company's growing emphasis on Tier III data centers across Canada, Sweden, and Paraguay, designed to support bitcoin mining, AI, and high-performance computing workloads. The fresh capital, combined with measures to limit dilution, aims to accelerate this expansion. Meanwhile, Keel is undergoing a transformation by downsizing, having completed the sale of its 70 MW Paraguayan site for approximately $13 million, below initial projections, due to declining bitcoin mining economics. This move marks Keel's exit from Latin America, following its recent rebranding from Bitfarms to Keel Infrastructure. According to CEO Ben Gagnon, 'This is a clean exit from Latin America. We are focused and committed to building the infrastructure backbone to support the AI economy in North America.' Gagnon noted that the proceeds from the sale will effectively bring forward two to three years of anticipated cash flow, which will be reinvested into Keel's HPC and AI pipeline. The announcements have led to a roughly 7% increase in the shares of both companies.