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

In a significant move, HIVE Digital and Keel Infrastructure are intensifying their focus on artificial intelligence infrastructure, marking a notable shift in the sector 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 GPU capacity. The company has been 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 expedite the expansion of these facilities. Meanwhile, Keel is undergoing a transformation by downsizing, having sold its 70 MW site in Paraguay for approximately $13 million, below initial projections, due to the deteriorating economics of bitcoin mining. This move signifies 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,' and the company is now '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 into Keel's HPC and AI pipeline. The announcements have led to a roughly 7% increase in the shares of both companies.