TL;DR:
- HIVE will progressively wind down its Bitcoin mining operations in Sweden following tax disputes and security deposit demands from local authorities.
- The company will expand its BUZZ High Performance Computing subsidiary in Canada, scaling from 4 MW in Manitoba to 16.6 MW across two provinces.
- HIVE targets approximately $200 million in annualized contracted revenue from its HPC business by the close of fiscal year in March 2027.
HIVE Digital Technologies announced it will progressively wind down its bitcoin hashrate production at its Boden, Sweden facility, as it accelerates its transition toward artificial intelligence infrastructure and high-performance computing. The company attributed the decision to an operational environment deteriorated by enforcement actions and what it described as “erroneous applications of existing tax regulations” by Swedish authorities.
According to the press release, HIVE’s Swedish subsidiaries faced the imposition of a security deposit tied to disputed tax assessments, despite holding favorable opinions from several law firms, a top-tier accounting firm, and academics specializing in Swedish VAT. Those conditions undermined the economic viability of the ASIC mining model in the region.
The Tax Pressure Accelerating an Urgent Strategic Shift
The 7-megawatt data center in Boden will not be dismantled but repurposed. HIVE reported that the facility is being upgraded to Tier-III high-performance computing standards to support enterprise-grade GPU clusters. Construction is underway, and the site is projected to host NVIDIA GB300 architectures designed for AI training and inference workloads.
Meanwhile, the BUZZ High Performance Computing subsidiary is expanding across Canada through a strategic alliance with Bell Canada AI Fabric. Capacity will grow from 4 MW in Manitoba to 16.6 MW distributed across two provinces. A new colocation facility in British Columbia will immediately contribute 5 MW of capacity, with the ability to scale by approximately 7.6 additional MW and estimated capacity for around 2,000 next-generation GPUs, complementing the approximately 2,000 GPUs already operational in Manitoba.
HIVE Projects Approximately $200 Million in Revenue
Altogether, HIVE projects surpassing 4,000 GPUs deployed in Canada in the near term, with growth oriented toward more than 6,000 units. The company set a target of approximately $200 million in annualized revenue.
HIVE shares rose approximately 5.6% on Monday morning following the announcement, though the stock is down roughly 16.7% year to date.
