- Currently, HIVE Digital Technologies have a fleet of 38,000 Nvidia GPUs.
- HIVE stock closed at $5.66, down by over 4% yesterday.
Technological advancements are driving up the demand for graphics processing units (GPUs). Crypto miner HIVE Blockchain recently announced they have retitled to HIVE Digital Technologies Inc. The new name suggests the company will expand their services beyond crypto mining in the near future.
Crypto Mining to Cloud Computing
The company revealed the move in a press release. Currently, they have a fleet of 38,000 Nvidia GPUs which they intend to employ in other operations including cloud computing, AI and Web3. The organization says the strategic shift is to harness the power of GPU cloud compute technology.
HIVE Digital Technologies president, Aydin Kilic, said “Our name change and strategic pivot indicates our progressive trajectory as a company. High performance computing, driven in large part by GPU processing power, is growing incredibly fast today thanks to this impressive new generation of consumer and enterprise AI tools.”
The decision to retitle comes following increasing GPU importance amid the AI boom. They are also developing HIVE Cloud to target small and medium-sized enterprises (SMEs) to deliver an efficient alternative to major cloud-based services. Major companies including Microsoft, Meta Platforms and Google are actively developing AI solutions.
There is a possibility the company is spreading its wings to cover a variety of sectors to avoid a potential blow from crypto mining.
The move could be seen as a hedge against risks associated with crypto mining.
It’s getting harder to mine crypto. Due to halving events and declining cryptocurrency prices, crypto mining may render less profitable for miners in the future. Low prices force crypto miners to use eco-unfriendly cheap fuel to maintain profits.
China’s stern regulatory approach towards crypto miners compelled them to shift to countries including Kazakhstan, Russia, the United States and more. This led to a dramatic rise in crypto mining activities in these nations. Experts expressed their concerns about damage to climate arising from burning of Kazakhstan coal, which is considered to be one of the most carbon-intensive coals in the world.
HIVE Stock Price Performance
HIVE stock price is increasing rapidly, surging by nearly 100% through the month. The price is closing to its August 2022 high of $7.53. Stocks succumbed to a downtrend that went on until the year’s end. The share value put on a volatile show for 6 months before rising steadily.
Chop zone shows a strong momentum in HIVE stock price and the woodies CCI is green, supporting an uptrend. Williams alligator is eating with its mouth opened, adding a further possibility of gain in coming days. Currently, HIVE stock is holding support at $5.3 and resistance at $6.