Publicly traded entities Keel Infrastructure (KEEL) and Hive Digital Technologies (HIVE), both transitioning from Bitcoin mining to AI-centric data centers, saw a significant rise in their shares on Wednesday following new announcements regarding their AI strategies.
Keel, previously known as Bitfarms, completed the sale of its Paraguayan Paso Pe mining site for $13 million. This move marks a further step away from the top cryptocurrency asset’s mining operations.
Hive announced the closure of a $115 million private offering involving convertible notes, with funds designated for GPU acquisitions or data center enhancements, among other initiatives.
CEO Ben Gagnon noted that Keel no longer holds any non-essential assets. The company had anticipated earning up to $30 million from the sale but realized only 44% of its expected proceeds. “The adjustment in price mirrors current Bitcoin mining economic conditions and aligns with our unchanged thesis,” Gagnon stated. “We’ve effectively converted approximately two to three years of anticipated free cash flow into immediate capital, based on existing market dynamics.” He further explained that the funds would be directed towards their HPC/AI development pipeline, anticipating higher returns and greater shareholder value creation. Keel has now fully exited its Latin American operations, focusing on AI initiatives in North America.
In recent months, both companies have been active in bolstering their AI ventures. Hive sealed a deal with Dell’s Buzz subsidiary last November to boost its AI efforts. Despite an initial decline, Hive shares rebounded by over 31% in the past month and were recently trading at $2.66, up nearly 7% on Wednesday.
KEEL’s stocks experienced even more substantial growth, surging over 40% in the past month to trade around $3.06, with a roughly 9% increase observed so far today.
Bitcoin, from which both firms are distancing themselves, rose by 4% in the last 24 hours, trading near $79,000 but remains 37% below its October peak of $126,080.