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

In a move to further establish 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 network and increase GPU capacity. This strategic expansion aims to support a broader range of applications, including bitcoin mining, AI, and high-performance computing, across its Tier III data centers in Canada, Sweden, and Paraguay. The funding is complemented by measures to protect against potential dilution, ensuring the company can accelerate its growth plans. On the other hand, Keel Infrastructure has opted to streamline its operations by selling its 70 MW site in Paraguay for approximately $13 million, a decision influenced by the challenging economics of bitcoin mining. This sale marks Keel's exit from Latin America, following its recent rebranding, and will enable the company to redirect its resources towards developing the infrastructure needed to support the AI economy in North America. According to CEO Ben Gagnon, the proceeds from the sale will effectively advance the company's expected cash flow by two to three years, which will be reinvested in Keel's HPC and AI initiatives. The announcements have been positively received, with both companies experiencing a stock price increase of roughly 7%.