HIVE Digital Technologies' Price Target Raised by 25% to $7.50 by Roth Capital

Roth Capital has raised HIVE Digital Technologies' price target by 25% to $7.50, maintaining a "Buy" rating. This update is part of various historical analyst ratings, with a current average brokerage recommendation of 2.0, indicating an "Outperform" status. The estimated GF Value in one year is $1.60, suggesting a downside of 41.19% from the current price.

HIVE Digital Technologies Ltd. has announced a significant milestone in its Bitcoin mining operations, surpassing 16 Exahash per second (EH/s) of global hashrate. This achievement marks a substantial step toward the company's goal of reaching 25 EH/s by U.S. Thanksgiving. As a result, HIVE's daily Bitcoin output has doubled from May, now producing over 8 BTC daily [1].

The company's expansion in Paraguay is a key factor in this progress, leveraging the region's energy efficiency to enhance unit economics. The latest generation of ASICs (Application-Specific Integrated Circuits) allows HIVE to generate more hashrate per joule of energy consumed, leading to additional revenue without increased labor or corporate overhead [1].

Roth Capital Partners has responded to this development by raising HIVE Digital Technologies' price target by 25% to $7.50, maintaining a "Buy" rating. The update is part of various historical analyst ratings, with a current average brokerage recommendation of 2.0, indicating an "Outperform" status. The estimated GF Value in one year is $1.60, suggesting a downside of 41.19% from the current price [2].

Bitcoin mining economics are straightforward, with miners able to calculate the value of each incremental exahash using publicly available data. At today's network difficulty of 129T, one exahash generates approximately 0.50 BTC per day, including block rewards and transaction fees. This means that adding just 2 EH/s of new capacity translates into the addition of roughly 1.0 BTC per day [1].

The transparency of Bitcoin mining economics is a unique feature of the industry. Unlike many sectors, miners can predictably forecast revenue based on public variables such as block rewards, network difficulty, and the market price of Bitcoin. This predictability allows miners to scale operations into predictable cash flow, given disciplined capital allocation and access to low-cost energy [1].

Investors are encouraged to examine operating costs and the Company's operational efficiency as key factors in assessing the potential of Bitcoin mining companies like HIVE Digital Technologies.

References:
[1] https://www.marketscreener.com/news/hive-digital-technologies-crosses-16-eh-s-marching-toward-25-eh-s-as-expansion-in-paraguay-powers-f-ce7c50d8d880f32c
[2] https://www.marketscreener.com/news/roth-capital-updates-price-target-for-hive-digital-technologies