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

In a strategic move to bolster their presence in the AI infrastructure space, 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 with zero interest, allocating the funds to expand its global data center network and increase GPU capacity, as announced on Wednesday. The company is concentrating on establishing Tier III data centers in Canada, Sweden, and Paraguay, designed to support bitcoin mining, AI, and high-performance computing workloads. This capital injection, combined with measures to limit dilution, aims to accelerate the expansion of its data center footprint. Meanwhile, Keel is undergoing a transformation by downsizing, having completed the sale of its 70 MW Paraguay site for approximately $13 million, below initial projections, due to challenging bitcoin mining economics. This move marks Keel's exit from Latin America, following its 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 sale proceeds 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 led to a roughly 7% increase in the shares of both companies.