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Investing.com - H.C. Wainwright lowered its price target on Hive Digital Technologies (NASDAQ:HIVE) to $6.00 from $9.00 on Thursday, while maintaining a Buy rating on the cryptocurrency mining company. The stock, currently trading at $1.76 with a market capitalization of $274 million, is showing signs of being undervalued according to InvestingPro analysis.
The price target reduction reflects the recent growth in Hive Digital’s share count, according to H.C. Wainwright. The new $6 target represents a 4.5x EV/revenue multiple applied to the firm’s revised fiscal 2025 revenue estimates. InvestingPro data reveals the company generated revenue of $121 million in the last twelve months, with an EBITDA of $8.95 million. Get access to 8 more key ProTips and comprehensive analysis with InvestingPro.
H.C. Wainwright noted that Hive Digital trades at a discount to its peer group due to higher power costs and its international portfolio of power assets. The fiscal 2025 period for Hive Digital ends March 31, 2026.
The firm identified several risk factors that could impact its price target, including Bitcoin price volatility and faster than expected increases in network hash rate and difficulty levels.
Additional risks mentioned include a slower than anticipated ramp in HPC (High Performance Computing) revenues and the potential for shareholder dilution from equity sales.
In other recent news, HIVE Digital Technologies has made significant strides in its expansion efforts, notably increasing its global mining hashrate to over 7 Exahash per second (EH/s) at its Yguazu facility in Paraguay. This growth follows the completion of a 100 megawatt (MW) air-cooled data center, which is part of the company’s strategy to scale production using clean hydroelectric power. HIVE aims to reach a total hashrate of 11.5 EH/s by the end of the second quarter and plans further expansion to achieve 25 EH/s by year-end. The company has been expanding without incurring debt, using funds from Bitcoin mining proceeds and an Equity Distribution Agreement that raised $67.4 million.
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Analyst sentiment on HIVE’s stock is mixed, with Wall Street analysts maintaining a strong buy rating and a consensus price target of $7.31. However, Cantor Fitzgerald recently revised its price target for HIVE down to $4.00 from $8.00, while maintaining an Overweight rating. The company has also enhanced its engineering capabilities by hiring Carlos Anibal Torres as its new operations and project manager in Paraguay. HIVE’s expansion continues as it prepares for the arrival of over 13,400 Bitmain S21+ Hydro ASIC miners, which will contribute an additional 4.3 EH/s to its global footprint. These developments come amid growing interest in Bitcoin from institutional investors and expectations of further market growth.
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