HIVE Digital Forecasts its Hashrate Will More Than Double Within a Year, Cantor Reports
Cantor begins coverage of HIVE Digital, predicting a considerable increase in its mining capacity and a $9 target price.
HIVE Digital (HIVE) is projected to more than double its hashrate in the next year, according to a report from broker Cantor released on Tuesday, which initiated coverage of the company.
Cantor set an overweight rating on HIVE and established a price target of $9. Following the announcement, HIVE shares experienced a rise of approximately 3.6%, trading around $4.26.
The broker noted, "The miner's upcoming growth, especially the doubling of its hashrate over the next 12 months, isn't reflected in the current stock price." HIVE plans to increase its hashrate from 5.5 exahashes per second (EH/s) to an impressive 13 EH/s by the end of next year.
Moreover, the report pointed out that HIVE’s ambitions in artificial intelligence (AI) and high-performance computing (HPC) could intrigue future investors. Analysts Brett Knoblauch and Thomas Shinske remarked, "HIVE's eyes are set on its GPU cloud model named HIVE Cloud," with targets indicating a potential $100 million in annual recurring revenue (ARR) by the end of next year.
Overall, the market appears to undervalue both the miner's anticipated hashrate escalation and its plans for GPU-accelerated revenue generation, as highlighted by Cantor.
