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

In a strategic move to bolster their presence in the AI infrastructure sector, HIVE Digital and Keel Infrastructure are intensifying their focus on artificial intelligence data centers, marking a significant shift away from exclusive bitcoin mining. HIVE has successfully raised $115 million through a convertible note offering, which will be utilized to expand its global data center capacity and enhance its GPU capabilities. This development is part of the company's broader strategy to establish Tier III data centers across Canada, Sweden, and Paraguay, catering to the demands of bitcoin mining, AI, and high-performance computing. By securing this funding, HIVE aims to accelerate its expansion plans while mitigating potential dilution through capped call protection. On the other hand, Keel Infrastructure has opted to fund its transition by streamlining its operations. The company has sold its 70 MW site in Paraguay for approximately $13 million, slightly below initial projections, citing the deteriorating economics of bitcoin mining. This move marks Keel's exit from the Latin American market and follows its recent rebranding from Bitfarms. According to CEO Ben Gagnon, this sale represents a 'clean exit' from Latin America, enabling the company to concentrate on building the infrastructure necessary 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 in Keel's HPC and AI pipeline. The announcements have resulted in a 7% increase in the stock prices of both companies.