HIVE prices US$115M in 0% notes to fund data centre push
What's the deal? HIVE Digital Technologies (NASDAQ:HIVE) has priced an upsized private offering of US$115 million in 0% exchangeable senior notes due 2031, issued through subsidiary HIVE Bermuda 2026.
Initial purchasers hold an option for up to US$15 million more. The notes convert into HIVE common shares at US$4.83 each — a 27.5% premium to the June 25, 2026 Nasdaq close of US$3.79.
Net proceeds are estimated at US$110 million, rising to US$124.5 million if the option is fully exercised. HIVE earmarked the money for general corporate purposes, capital investment, and data centre development.
Why now? The deal was upsized from an earlier US$100 million plan, signalling strong investor appetite. The 0% coupon means HIVE raises capital without interest payments, a cheap way to fund its push into data centres.
What could go wrong? The exchangeable structure could dilute existing shareholders when notes convert to stock.
Holders can also force a cash repurchase at principal on July 1, 2030, and a fundamental change would trigger a 100% principal repurchase obligation.
To soften the dilution risk, HIVE entered capped call transactions with an initial cap price of US$8.5275 per share.
The signal: HIVE, a late-stage company built around accelerating blockchain development, is increasingly leaning on capital markets to bankroll a pivot beyond pure crypto mining. The 0% coupon and upsizing from US$100 million to US$115 million underscore investor confidence that its data centre ambitions can outgrow its blockchain roots.
Read more: StockTitan
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