HIVE Plans $75M Notes Raise for AI Expansion

HIVE Digital Technologies Ltd., a Vancouver-based blockchain infrastructure company, announced plans to raise $75 million through a private offering of zero-interest exchangeable senior notes due in 2031, targeting institutional investors to support its expansion into artificial intelligence and data center operations. The offering, conducted via its subsidiary HIVE Bermuda 2026 Ltd., includes an option for buyers to purchase an additional $15 million in notes within 13 days, potentially bringing the total to $90 million. The announcement, made on Thursday, triggered an 11.5 percent drop in the company's shares, which closed at $2.33 on the Nasdaq after a surge in trading volume to over 21 million shares.

The notes, classified as unsecured obligations guaranteed by HIVE, carry no regular interest payments and can be settled in cash, common shares, or a combination upon conversion, with terms to be finalized at pricing. To address potential shareholder dilution from share conversions, HIVE plans to enter capped call transactions using cash on hand, a strategy aimed at offsetting excess payments or share issuances up to a specified limit. Proceeds will fund general corporate...