HIVE Digital Technologies has spent 2026 signing contracts that usually rerate a stock, but their shares are roughly the same price that they were 12 months ago. Executive Chairman Frank Holm
HIVE Digital Technologies has spent 2026 signing contracts that usually rerate a stock, but their shares are roughly the same price that they were 12 months ago.
Executive Chairman Frank Holmes says Wall Street isn’t giving the company enough credit, and he thinks he knows why.
“I would say they didn’t vote for Trump, but (investors) have a MAGA mindset that if it’s not in America, it doesn’t have any value,” Holmes said of the analysts covering HIVE, in an interview with TheStreet Roundtable.
His argument is that HIVE’s AI growth is concentrated in Canada. That location, according to him, costs it when investors compare its revenue and EBITDA multiples with those of US peers.
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HIVE’s AI arm, BUZZ HPC, has stacked up multiple large deals in 2026.
In June it signed a three-year, roughly $220 million GPU cloud contract with Bell Canada and Cohere, covering more than 2,000 Nvidia Grace Blackwell GPUs at Bell Merritt, British Columbia data center. In August, it landed a five-year, $350 million GPU cloud agreement. HIVE said that deal adds about $70 million in\n annualized revenue and lifts BUZZ HPC’s run rate to roughly $180 million.
“Even though they have an AI minister in Canada and we’re the biggest hyperscaler in Canada, it doesn’t get that value,” Holmes said.
Holmes points to HIVE’s debt investors as proof that sophisticated money sees what the wider market is missing.
“We did the zero-coupon convertible debts at a higher price,” he said. “Those institutions immediately got the significance of AI in Canada.”
In April, HIVE closed a $115 million 0% note offering convertible at roughly $2.57 per share. In June, it closed another $130 million offering with an initial exchange price of ~$4.83, more than a 25% premium to the stock’s $3.79 close on June 25th.
Together, the two deals raised $245 million in 0% coupon notes in a single quarter.
The stock has not followed the bond buyers. Less than two months after the June offering, HIVE was trading near $2.96, well below that $4.83 exchange price.
Holmes also cited HIVE’s Paraguay operation as an asset the market overlooks.
“We are the only ones that really proved you can export compute power from Paraguay all the way to Columbia University in New York City,” he said.
Their BUZZ AI Cloud cluster in Asunción went live in March serving a Columbia University research team. In June, HIVE said Columbia’s study had validated the infrastructure’ performance and that the research was headed to the NeurIPS conference.
Holmes said a broader expansion in the region depends on Paraguay’s government. He said its plan for long-term energy contracts “got derailed” and is expected back with something “bigger and better.”
Holmes doesn’t expect the gap to US peers to close slowly.
“The one thing about this industry is it doesn’t happen 3% up, 1% back,” he said. “It’ll be 50% up, 60% up.”
Until then, his job is to keep the team focused on revenue and cash flow.
“We’re very conservative and pragmatic,” he said, “and I think you eventually get rewarded.”
Holmes blames part of the discount on politics. On August 27, President Donald Trump signed an executive order renaming Lake Ontario to “Lake America.” The move escalated a feud with Canada that has already brought tariffs on tens of billions in cross-border trade.
Holmes said that friction makes investors wary of companies whose assets sit in Canada.
“That creates trepidation for investors,” he said. “Your investments are in Canada and there’s a fight between Trump and Carney, so we’ll stand aside.”
He expects that to change once the two leaders settle their differences. At that point, he said, HIVE “goes to this big re-rating.”
“That sentiment factor between that battle over tariffs is impacting psychologically,” Holmes said, “but fundamentally it’s not slowing us down.”
