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

In a significant move, HIVE Digital and Keel Infrastructure are reinforcing their commitment to artificial intelligence infrastructure, marking a notable shift in the sector's focus beyond bitcoin mining. HIVE has successfully raised $115 million through a convertible note offering, which will be utilized to enhance its global data center presence and increase GPU capacity. This development is in line with the company's strategy to establish Tier III data centers in Canada, Sweden, and Paraguay, catering to bitcoin mining, AI, and high-performance computing workloads. The funding, combined with measures to mitigate dilution, aims to accelerate this expansion. Meanwhile, Keel is streamlining its operations by divesting its 70 MW site in Paraguay for approximately $13 million, citing unfavorable bitcoin mining economics. This move marks the company's exit from Latin America, following its recent rebranding. According to CEO Ben Gagnon, 'This exit from Latin America is a strategic step towards focusing on building the infrastructure necessary 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 surge in shares for both companies, with a roughly 7% increase.