HIVE Digital Announces Private Offering of US$75 Million of Exchangeable Senior Notes due 2031
Rhea-AI Summary
HIVE (NASDAQ: HIVE) announced a private offering of US$75 million aggregate principal amount of 0% exchangeable senior notes due 2031, with an initial purchaser option of up to US$15 million. The Issuer will settle exchanges in cash, common shares or a combination, and HIVE fully guarantees the notes.
Net proceeds are targeted for subsidiary subscriptions to fund capital investment including graphics processing units and data center development; the company plans capped call transactions to limit dilution. HIVE received conditional TSX approval, expecting to list on or about April 30, 2026.
AI-generated analysis. Not financial advice.
Positive
- US$75M financing to fund capital expenditure
- Proceeds earmarked for GPU purchases and data center buildout
- HIVE guarantee provides creditor support for the Issuer
- Capped call transactions designed to limit dilution
- Conditional TSX listing expected on or about April 30, 2026
Negative
- Notes are exchangeable, creating potential share dilution upon conversion
- Notes are general unsecured obligations of the Issuer
- Listing subject to TSX requirements to be met by June 30, 2026
News Market Reaction – HIVE
On the day this news was published, HIVE declined 11.54%, reflecting a significant negative market reaction. Argus tracked a trough of -12.3% from its starting point during tracking. Our momentum scanner triggered 42 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $82M from the company's valuation, bringing the market cap to $625.54M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
HIVE gained 11.52% while peers were mixed: BITF up 5.32%, OPY up 3.04%, AMRK up 2.17%, but BTBT and FUFU down 1.29% and 1.45%, respectively, suggesting stock-specific factors.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 18 | AI cloud milestone | Positive | -4.1% | Paraguay BUZZ AI Cloud cluster going live for LLM research workloads. |
| Mar 18 | AI cloud milestone | Positive | -4.1% | Launch of Paraguay GPU AI cloud proof-of-concept using renewable power. |
| Mar 16 | Data center expansion | Positive | +4.5% | 4x Canadian liquid-cooled AI data center capacity and GPU growth plans. |
| Mar 16 | Capacity and GPUs | Positive | +4.5% | BUZZ HPC capacity lifted to 16.6 MW with pathway to >6,000 GPUs. |
| Mar 13 | AI robotics deal | Positive | +2.4% | Collaboration with AMC Robotics using BUZZ GPU AI Cloud for robotics. |
Recent AI and data center expansion headlines have mostly aligned with positive price moves, though some infrastructure milestones saw negative reactions.
Over the past month, HIVE issued several AI and data center-focused updates. On Mar 13, an AI robotics collaboration coincided with a 2.4% gain. On Mar 16, a 4x BUZZ HPC capacity expansion and targets of $200M HPC ARR by Mar 31, 2027 aligned with a 4.46% rise. However, Paraguay AI cloud milestones on Mar 18 saw the stock fall 4.07% despite positive operational progress. Today’s financing and TSX up-listing follow this infrastructure build-out narrative.
Market Pulse Summary
The stock dropped -11.5% in the session following this news. A negative reaction despite this announcement would fit a pattern where some operational milestones, like the Paraguay AI cloud update that saw a -4.07% move, did not translate into sustained optimism. The US$75 million exchangeable note financing and TSX up-listing introduce leverage and potential future share issuance, which the market could view cautiously. Past swings ranging from -4.07% to +4.46% highlight sensitivity to capital structure and execution risk.
Key Terms
exchangeable senior notes financial
Rule 144A regulatory
capped call transactions financial
TSX Venture Exchange regulatory
Toronto Stock Exchange regulatory
Eligible Interlisted Issuers regulatory
AI-generated analysis. Not financial advice.
This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated November 25, 2025 to its short form base shelf prospectus dated October 31, 2025.
San Antonio, Texas--(Newsfile Corp. - April 15, 2026) - HIVE Digital Technologies Ltd. (TSXV: HIVE) (NASDAQ: HIVE) (FSE: YO0) (BVC: HIVECO) (the "Company" or "HIVE"), a global leader in sustainable digital infrastructure and AI compute, today announced that HIVE Bermuda 2026 Ltd., its wholly-owned subsidiary (the "Issuer"), intends to offer, subject to market conditions and other factors, US
The Notes will be exchangeable under certain conditions. The Issuer will settle exchanges by paying or delivering, as the case may be, cash, common shares of HIVE ("Common Shares") or a combination of cash and Common Shares, at the Issuer's election. The initial exchange rate and other terms of the Notes will be determined at the time of pricing of the Offering. The Notes will not bear regular interest, and the principal amount of the Notes will not accrete.
The Notes will be general unsecured obligations of the Issuer. The Issuer's obligations under the Notes will be fully and unconditionally guaranteed on a senior unsecured basis by HIVE.
The Issuer intends to use the net proceeds from the Offering to subscribe for shares of one or more of HIVE's direct or indirect subsidiaries, which in turn will use such proceeds for general corporate purposes, capital investment (including, but not limited to, the purchase of graphics processing units) and data center development. HIVE intends to fund capped call transactions (as described below) using cash on hand, and the Issuer may use a portion of the net proceeds to reimburse HIVE for the cost of the capped call transactions. If the initial purchasers exercise the Option, the Issuer expects to use the net proceeds from the sale of the additional Notes: (i) to subscribe for shares of one or more of HIVE's direct or indirect subsidiaries, which in turn will use such proceeds for general corporate purposes, capital investment (as described above) and data center development and (ii) to reimburse HIVE for the cost of entering into additional capped call transactions, as described below.
In connection with the Offering, the Company expects to enter into privately negotiated cash-settled capped call transactions with one or more financial institutions (collectively, the "option counterparties"). The capped call transactions will cover, subject to anti-dilution adjustments substantially similar to those applicable to the Notes, the number of Common Shares that will initially underlie the Notes, assuming the initial purchasers do not exercise the Option.
The capped call transactions are expected generally to reduce potential economic dilution of the Common Shares upon exchange of any Notes and/or offset any cash payments the Company could be required to make in excess of the principal amount of exchanged Notes, as the case may be, with such reduction and/or offset subject to a cap. If the initial purchasers exercise the Option, the Company expects to enter into additional capped call transactions with the option counterparties.
In connection with establishing their initial hedges of the capped call transactions, the Company expects the option counterparties or their respective affiliates to purchase Common Shares and/or enter into various derivative transactions with respect to the Common Shares concurrently with or shortly after the pricing of the Notes, and such option counterparties or their respective affiliates may unwind these various derivative transactions and/or sell Common Shares in open market transactions. This activity could increase (or reduce the size of any decrease in) the market price of the Common Shares or the Notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to the Common Shares and/or purchasing or selling Common Shares or other securities of the Company in secondary market transactions following the pricing of the Notes and prior to the maturity of the Notes (and are likely to do so during any observation period related to an exchange of the Notes). This activity could also cause or avoid an increase or decrease in the market price of the Common Shares or the Notes, which could affect holders of the Notes' ability to exchange the Notes and, to the extent the activity occurs during any observation period related to an exchange of the Notes, it could affect the amount and value of the consideration that holders of the Notes will receive upon exchange of such Notes.
The Company also announces that it has applied for and received conditional approval from the Toronto Stock Exchange (the "TSX") to list its Common Shares. Listing is subject to the Company fulfilling all of the requirements of the TSX on or before June 30, 2026, including distribution of the Common Shares to a minimum number of public shareholders. It is expected that the Common Shares will cease trading on the TSX Venture Exchange (the "TSXV") and commence trading on the TSX on or around April 30, 2026. As a condition to the approval of the Offering, while the Company remains listed on the TSXV, the Offering shall be conducted in accordance with the rules of the TSX. The Company is relying on the exemption under Section 602.1 of the TSX's Company Manual (the "TSX Manual") available to Eligible Interlisted Issuers (as defined in the TSX Manual) in respect of the Offering.
None of the Notes, the guarantee or the Common Shares issuable upon exchange of the Notes, if any, have been, and will not be, registered under the Securities Act or the securities laws of any other jurisdiction, and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.
This press release does not and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
About HIVE Digital Technologies Ltd.
Founded in 2017, HIVE Digital Technologies Ltd. was among the first publicly listed companies to prioritize mining digital assets powered by green energy. Today, HIVE builds and operates next-generation Tier-I and Tier-III data centers across Canada, Sweden, and Paraguay, serving both Bitcoin and high-performance computing clients. HIVE's twin-turbo engine infrastructure-driven by hashrate services and GPU-accelerated AI computing delivers scalable, environmentally responsible solutions for the digital economy.
For more information, visit hivedigitaltech.com, or connect with us on:
X: https://x.com/HIVEDigitalTech
YouTube: https://www.youtube.com/@HIVEDigitalTech
Instagram: https://www.instagram.com/hivedigitaltechnologies/
LinkedIn: https://linkedin.com/company/hiveblockchain
On Behalf of HIVE Digital Technologies Ltd.
"Frank Holmes"
Executive Chairman
For further information, please contact:
Nathan Fast, Director of Marketing and Branding
Frank Holmes, Executive Chairman
Aydin Kilic, President & CEO
Tel: (604) 664-1078
Neither the Toronto Stock Exchange nor the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
This release contains "forward-looking information" within the meaning of the applicable Canadian and United States securities legislation and regulations that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes but is not limited to: statements with respect to the proposed Offering, the potential issuance of additional Notes pursuant to the Option, the use of proceeds from the Offering (including the payment of costs associated with the capped call transactions), the anticipated terms of the Notes, the entering into of capped call transactions, business goals and objectives of the Company, and other forward-looking information concerning the intentions, plans and future actions of the Company and the terms of the transaction described herein.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the risk that the Offering may not be completed on the terms described herein or at all, the effect of government regulation and compliance on the Company, reliance on key personnel, global economic and financial market deterioration impeding access to capital or increasing the cost of capital, potential dilution resulting from the exchange of the Notes, and the other risks that are more fully set out in the Company's Annual Report on Form 40-F for the year ended March 31, 2025, the Company's Annual Information Form for the year ended March 31, 2025 and in other Company reports and documents under the Company's filings at www.sec.gov/EDGAR and www.sedarplus.ca.
The forward-looking information in this news release reflects the Company's current expectations, assumptions, and/or beliefs based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's objectives, goals or future plans, the timing thereof and related matters. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance, and accordingly, undue reliance should not be put on such information due to its inherent uncertainty. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether because of new information, future events or otherwise, other than as required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/292755