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

In a significant move to bolster their presence in the AI infrastructure space, HIVE Digital and Keel Infrastructure are intensifying their focus on artificial intelligence, marking a notable shift 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 capabilities and increase GPU capacity, as announced on Wednesday. The company has been expanding its Tier III data centers across Canada, Sweden, and Paraguay, targeting a diverse range of workloads including bitcoin mining, AI, and high-performance computing. This recent capital injection, combined with measures to mitigate dilution, aims to expedite the expansion of its data center footprint. Meanwhile, Keel is undergoing a strategic transformation by streamlining its operations. The company has completed the sale of its 70 MW Paraguay site 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, following its recent rebranding from Bitfarms to Keel Infrastructure. According to CEO Ben Gagnon, "This transaction represents a clean exit from Latin America, allowing us to concentrate on developing the infrastructure necessary to support the AI economy in North America." Gagnon further emphasized that the sale proceeds will effectively accelerate Keel's cash flow by two to three years, which will be reinvested into the company's HPC and AI endeavors. The announcements have triggered a rise in the shares of both companies, with an increase of roughly 7%.