Hive Plans US$75M Raise With Zero-Interest Notes as Shares Slide

HIVE Digital Technologies has announced plans to secure US$75 million (AU$104.25 million) via a private issuance of 0% exchangeable senior notes due 2031, aimed at supporting its ongoing infrastructure expansion. 

The offering will be executed through a wholly owned subsidiary and marketed to institutional investors, with the potential to increase proceeds by an additional US$15 million (AU$20.85 million). Specific terms, including conversion metrics, will be finalised at pricing.

The notes will carry no regular interest and will not accrete, while being fully guaranteed by HIVE despite their unsecured structure. Depending on certain triggers, they may be converted into cash, company shares, or a combination of both. 

Capital raised will be directed towards general corporate uses, particularly GPU procurement and data centre development. To manage dilution risks, HIVE intends to enter into capped call transactions with counterparties.
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Shares Slide Following Capital Raise

Following the announcement, HIVE’s Nasdaq-listed stock declined sharply, dropping 11.5% in a single trading session. This performance lagged the wider mining sector, where the CoinShares Bitcoin Mining ETF (WGMI) recorded a smaller 1.5% fall. The company is among the ETF’s larger constituents, holding a 4.89% weighting.

Additionally, HIVE has obtained conditional approval for a Toronto Stock Exchange listing, contingent on meeting final requirements. The move reflects its continued transition towards AI and high-performance computing operations.

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