HIVE and Keel Infrastructure 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 data centers, marking a notable shift in the sector beyond bitcoin mining. HIVE has successfully raised $115 million through a convertible note offering, earmarking the funds to enhance its global data center capabilities and expand its GPU capacity. This strategic move is expected to accelerate the company's Tier III data center expansion across key locations in Canada, Sweden, and Paraguay, positioning them to support a wide range of workloads, including bitcoin mining, AI, and high-performance computing. To mitigate dilution, the capital raise is complemented by capped call protection, underscoring the company's commitment to its growth strategy. Meanwhile, Keel Infrastructure has completed the sale of its 70 MW Paraguay site, generating approximately $13 million, as part of its broader strategy to exit Latin America and concentrate on North American operations. This move follows the company's rebranding from Bitfarms to Keel Infrastructure and is seen as a pivotal step in its transition towards supporting the AI economy. According to CEO Ben Gagnon, the sale represents a 'clean exit' from Latin America, enabling the company to reallocate resources and fast-track its plans for building the infrastructure necessary to support the AI economy in North America. Notably, the proceeds from the sale are anticipated to bring forward two to three years of expected cash flow, which will be reinvested in Keel's HPC and AI initiatives. The announcements have been positively received by investors, with both companies experiencing a stock price increase of roughly 7%.