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

In a strategic move to strengthen their presence in the AI infrastructure sector, HIVE Digital and Keel Infrastructure are shifting their focus away from exclusive bitcoin mining. HIVE has successfully raised $115 million through a convertible note offering, which will be utilized to enhance its global data center capacity and GPU capabilities. This development is in line with 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 funding, combined with measures to mitigate dilution, aims to accelerate the expansion of its data center footprint. Meanwhile, Keel is streamlining its operations by selling its 70 MW site in Paraguay for approximately $13 million, marking its exit from the Latin American market. This move follows the company's rebranding from Bitfarms to Keel Infrastructure. According to CEO Ben Gagnon, the sale represents a 'clean exit' from Latin America, allowing the company to concentrate on building infrastructure to support the AI economy in North America. The proceeds from the sale are expected to generate cash flow equivalent to two to three years of forecasts, which will be reinvested in Keel's HPC and AI initiatives. The announcements have led to a significant increase in the stock prices of both companies, with shares rising by around 7%.