HIVE Shifts Focus to AI Infrastructure Amid Swedish Mining Challenges

HIVE Digital Technologies has announced plans to scale back its bitcoin mining operations in Sweden due to increasing challenges from authorities.

The company cited disputed tax assessments and enforcement actions as key factors contributing to the decision. Swedish authorities had imposed a security deposit requirement tied to the disputed tax assessments, despite HIVE receiving supportive opinions from several law firms, a tier-1 accounting firm, and local academics specializing in Swedish value-added-tax matters.

HIVE is redirecting resources towards its expanding artificial intelligence (AI) and high-performance computing strategy, particularly in Europe and Canada. The company is upgrading its 7-megawatt data center in Boden, Sweden to Tier-III high-performance computing standards capable of supporting enterprise-grade GPU clusters.

In Canada, HIVE's BUZZ High Performance Computing subsidiary is expanding its liquid-cooled AI data center footprint through a strategic partnership with Bell Canada AI Fabric. The expansion includes a new colocation facility in British Columbia, providing an immediate 5 MW of capacity, with an option to scale by an additional 7.6 MW.

HIVE aims to support over 6,000 GPU deployments through data center partnerships and its own facilities. The company is targeting about $200 million in contracted annualized run-rate revenue from its high-performance computing business by the end of its fiscal year ending March 31, 2027.