Purchase this crypto inventory for a double, Roth says

Roth Capital Markets analyst Darren Aftahi stated in a January 14 earnings preview that HIVE Digital Applied sciences (HIVE Digital Applied sciences Inventory Quote, Chart, Information, Analysts, Financials NASDAQ:HIVE) is increasing its AI Cloud platform into Paraguay by a three way partnership with a significant native telecom supplier, marking the corporate’s first transfer into the Latin American AI market and including optionality to its 2026 development outlook.

Aftahi maintained his “Purchase” score on HIVE with a 12-month value goal of $8.00. The inventory closed at $3.54 on January 13.

HIVE stated the Paraguay initiative can be structured equally to its Canadian telecom partnership mannequin, with the corporate supplying GPUs and cloud companies whereas internet hosting them in a third-party Tier 3 information centre. Energy and information centre infrastructure won’t be owned by HIVE. Whereas the preliminary deployment is anticipated to be comparatively small, Aftahi stated it’s incremental to the corporate’s present AI/HPC plans in Canada and Sweden and aligns with administration’s objective of exceeding 6,000 GPUs by year-end 2026, which the corporate has framed as roughly $120-million in annual recurring income.

Preliminary deployment is anticipated in calendar Q1 2026, with the power to scale over time relying on buyer demand and capital availability. Aftahi stated the Paraguay enlargement enhances, moderately than replaces, HIVE’s present Bitcoin mining operations within the nation, the place the corporate controls roughly 400 megawatts of energy, together with 300 megawatts presently working.

Roth views South America as an more and more enticing area for AI and high-performance computing, citing hydro-powered vitality availability and rising funding curiosity. Aftahi pointed to business estimates indicating greater than $60-billion of disclosed capital expenditure and financing tied to AI and information centre growth throughout the area, notably in Brazil, whereas additionally noting reported curiosity in large-scale compute initiatives in Argentina and Chile. In that context, he stated HIVE’s established energy footprint in Paraguay supplies longer-term optionality past its present AI deployments.

On the crypto facet, Aftahi up to date his mannequin following preliminary fiscal Q3 2025 outcomes, which confirmed HIVE mined roughly 885 bitcoin, up 24% quarter over quarter, with a mean hash price of 23.3 exahash per second on-line in December. Larger uptime earlier within the quarter drove manufacturing above expectations regardless of an in-line exit hash price, main Roth to forecast self-mining income of about $88.9-million, roughly 24% above its prior estimate. Ahead changes largely mirror greater Bitcoin community problem, offset by the improved manufacturing base.

Aftahi stated HIVE ought to generate $140.3-million in Adjusted EBITDA on income of $314.8-million in fiscal 2026, in contrast with prior estimates of $120.6-million and $293.4-million, respectively. He expects these figures to enhance to $144.8-million in Adjusted EBITDA on income of $419.0-million in fiscal 2027, versus prior estimates of $141.5-million and $414.5-million.

Roth stated profitable execution on GPU deployments, signed leases, and financing in each present and new areas may assist additional reposition HIVE as an AI infrastructure play relative to a pure Bitcoin mining story heading into 2026.

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