Hive Blockchain Shifts Focus to AI, Rebrands as Hive Digital Technologies


Hive Blockchain Shifts Focus to AI, Rebrands as Hive Digital Technologies

Hive Blockchain, a cryptocurrency mining firm based in Vancouver, Canada, has announced its rebranding to Hive Digital Technologies, emphasizing its expansion into the field of artificial intelligence (AI).

According to a statement released on July 12, the company decided to remove "blockchain" from its name to better represent its evolving focus on revenue opportunities in graphics processing units (GPUs) and cloud computing. The rebranding also aims to highlight its commitment to driving advancements in AI and supporting the new Web3 ecosystem.

Hive's CEO Aydin Kilic explained in a filing to the United States Securities and Exchange Commission that the company's GPU Cloud business expansion necessitated a strategy that encompasses its broader areas of operation. Kilic stated, "We build infrastructure for emerging digital tech, not just blockchain, and we intend to utilize our large fleet of GPUs to grow a cloud hosting business."

Additionally, Hive plans to leverage its substantial fleet of 38,000 Nvidia GPUs to offer small and medium-sized businesses a more efficient alternative to major cloud service providers. Kilic expressed confidence in the increasing demand for GPU compute driven by AI and machine learning.

While most crypto mining companies primarily focus on proof-of-work cryptocurrencies like Bitcoin (BTC), Hive distinguished itself by utilizing GPUs for mining Ether (ETH), the native cryptocurrency of the Ethereum network, on a large scale. However, following the Ethereum Merge in September 2022, which transitioned the blockchain to a proof-of-stake consensus mechanism and eliminated the need for miners, the profitability of using GPUs for ETH mining significantly decreased.

Hive follows the footsteps of other mining companies that have dropped "blockchain" from their names. Riot Blockchain, a Bitcoin mining firm, rebranded to Riot Platforms on January 3, reflecting its increasingly diversified business operations.

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