Keel has redirected funds into AI projects following the sale of its last asset in Latin America. CEO Ben Gagnon stated that the revenue from the sale of Paso Pe will be immediately allocated to the company's high-performance computing (HPC) and artificial intelligence (AI) initiatives. This divestiture leaves Keel with a 100% North American portfolio, completely exiting the Latin American market.
According to the company, the initially agreed maximum price was $30 million, while the final actual proceeds were approximately $13 million, reflecting standard transaction adjustments. However, Keel views this transaction as a strategic victory, emphasizing the focus of its portfolio rather than maximizing sales value.
HIVE Digital Technologies raised $115 million through the issuance of zero-coupon notes for GPU and data center expenditures. The company expects net proceeds from this issuance to be around $109.5 million. The notes carry a 0% interest rate, with an initial conversion price of $2.57 per common share, translating to 389.5029 shares per $1,000 principal.
HIVE stated that these funds will be used for general corporate purposes, capital investments (including GPU procurement), and data center development. This issuance follows Rule 144A and is aimed at qualified institutional investors. In addition to this financing, HIVE's goals in the AI sector are also expanding. The company's BUZZ subsidiary has signed approximately $30 million in AI cloud contracts, which is part of its global effort to build Tier III HPC data center capabilities.
HIVE expects to complete its listing transition on the Toronto Stock Exchange by June 30, 2026, a process that will be influenced by the regulatory timeline required by the exchange, with investors closely monitoring this timeline in relation to AI development progress.
Industry-wide trends, not isolated shifts
S&P expects HIVE's HPC revenue to account for 15% of total revenue by 2026, up from 7% in 2024. If this revenue structure change is realized, it will significantly impact analysts' models for these companies.
For miners, AI workloads can provide a more stable, contract-based revenue stream, reducing reliance on Bitcoin halving cycles and price volatility. This makes the overlap transformation between mining facilities and GPU-intensive computing centers more rational, despite the high capital demands.
Traders will closely monitor developments following the initial surge
The rise of narrative-driven crypto-related stocks needs to be confirmed through execution. For Keel, the key will be whether the approximately $13 million in proceeds can be converted into signed HPC/AI contracts and visible progress in North American data center construction.
For HIVE, the focus shifts to the GPU deployment timeline and whether the BUZZ subsidiary can convert its $30 million contract pipeline into ongoing revenue. The structure of the zero-coupon notes allows HIVE to gain development space without immediate cash interest costs, but their convertible nature means that if the stock price exceeds $2.57, there will be dilution risks.
Why did Keel and HIVE stocks rise?
Keel's commitment to invest the proceeds from the sale of its Paraguay mining facility into AI infrastructure has led to its stock price increase. HIVE's stock price has also been boosted by a similar strategic shift.