Hive Digital shifts operations to Texas, targets Trump-era support

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BTC block reward miner Hive Digital (TSXV: HIVE) is shifting operations from Canada to the U.S. in anticipation of an enabling business climate under the Donald Trump administration.

Hive announced on December 31 that it would relocate from Vancouver, Canada, to San Antonio, Texas, to capitalize on the opportunities the U.S. market offers. Texas has become the U.S. mining hub, with Hive’s peers, including MARA Holdings (NASDAQ: MARA), Riot Platforms (NASDAQ: RIOT), Bitdeer (NASDAQ: BTDR), Cipher Mining (NASDAQ: CIFR), and more operating in the state. Texas’ grid operator, ERCOT, has struck deals with miners to pay them for turning off their rigs during peak demand, although legislators are seeking to put an end to these deals.

Trump’s election was a massive factor in Hive’s decision, the miner revealed. The Republican president-elect pledged to reverse ‘anti-crypto’ policies during his campaigns and make the U.S. the mining capital. He has also been appointing pro-digital currency leaders to some key positions, although some come with intricate ties to the companies they are meant to police.

“President-elect Trump has stated, that under his leadership, America would become a safer and more attractive place for Bitcoin miners by implementing policies to ensure the U.S. has the cheapest energy globally, fostering innovation, and creating a regulatory environment that supports cryptocurrency operations,” Hive stated.

Hive also believes that operating from the U.S. will give it access to deeper and more robust capital markets.

“The depth and breadth of U.S. capital markets are unparalleled and key to our growth strategy. The U.S. market, with its $40 trillion capitalization and daily trading volumes of $500 billion, offers HIVE the liquidity, visibility, and valuation opportunities we need to scale,” commented CEO Frank Holmes.

The company will also transition to the U.S. Generally Accepted Accounting Principles (US GAAP), starting in Q1 next year, to cater to U.S. investors. This, CFO Darcy Daubaras believes, aligns with the firm’s “strategic goals of operational efficiency, sustainability, and expanding our market presence. These moves enhance our financial transparency and position us for long-term success in the global market.”

Separately, Hive announced that it increased its operational hash rate by nearly 50% from 4.08 exahashes per second (EH/s) to 6 EH/s. It achieved this milestone by enhancing its efficiency, which it unlocked by switching to Canaan Inc.’s Avalon miners. It also procured electricity in Sweden at two cents per kilowatt-hour. In an interview, Holmes revealed that it did this by locking in long-term contracts when the power prices dropped in the hotter months of the summer.

Following the announcement, Hive shares shot up 9% on Thursday to reverse a three-week downtrend that chipped off nearly 25% from the miner’s stock price despite the broader market bull rally.

Block reward mining had a checkered year in 2024, with some like Compass Mining and MARA expanding operations, while others like Foundry laid staff off. On the regulatory front, some states in the U.S. pushed enabling regulations for miners, while elsewhere, authorities clamped down on the energy-guzzling sector, blaming it for power shortages.

Miner Bitfufu inks deal with Bitmain for 80,000 miners

In more mining news, Singapore’s BitFuFu (NASDAQ: FUFU) has signed a deal with China’s mining hardware giant Bitmain to purchase the latter’s latest mining machines.

BitFuFu announced Thursday that it would acquire 80,000 BTC miners, including the S21 Pro and S21 XP models, Bitmain’s most efficient machines. The two companies have agreed on a flexible two-year payment plan, with BitFuFu able to offset some of the payments with stock options.

📣 We've signed a 2-year deal with BITMAIN to acquire up to 80,000 state-of-the-art miners. Flexible orders and payment terms help us expand capacity and deliver top-notch, cost-effective Bitcoin mining solutions worldwide. #BITMAIN #GlobalExpansion #BTC pic.twitter.com/OSMdXOp8fd

— BitFuFu (@BitFuFuOfficial) January 2, 2025

“The new miners will be utilized to bolster both our self-mining operations and cloud-mining services, delivering highly cost-effective and energy-efficient solutions. With the flexibility to procure equipment in batches over the next two years based on operational demands, this agreement further reinforces our position as a leader in the industry,” commented CEO Leo Lu.

Following the announcement, the company’s shares surged 13% on Thursday after hitting a monthly low in late December.

BitFuFu and Bitmain have been closely linked for years, with the Chinese firm among the first investors in BitFuFu four years ago. The miner conducts self and cloud mining, claiming to have nearly half a million investors in its cloud services. It operates farms in over a dozen nations, with most of its operations in the United States.

BitFuFu’s mining operations have all been hosted by third parties. However, in October, it acquired an 80-megawatt facility in Ethiopia to establish its first physical operation.

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