HIVE Plunges 5.03% as Profit-Taking and AI Skepticism Offset Expansion Gains

HIVE Digital Technologies (HIVE) fell 5.03% on October 10, 2025, marking its lowest level since October 2025, with an intraday decline of 5.75%. The drop follows a period of growth driven by strategic expansions and partnerships, though recent volatility highlights market sensitivity to short-term dynamics.

The company has significantly scaled Bitcoin mining operations in Paraguay, boosting hashrate to 21 exahashes per second and Bitcoin production to 247 BTC in August 2025. This expansion, coupled with low-cost hydroelectric energy, has enhanced profitability and positioned HIVE among the top five global miners. However, the recent decline suggests investors may be reassessing valuations after months of gains.

Strategic partnerships in sovereign AI infrastructure, including collaborations with Bell Canada and VAST Data, have diversified HIVE’s revenue streams. These initiatives align with the $200 billion AI market growth and attracted analyst upgrades, including a $10.00 price target from Canaccord Genuity. Yet, the stock’s sharp move lower indicates potential profit-taking or skepticism about the pace of AI revenue realization.

Strong financial performance, including record Q1 2026 earnings and a $250 million annualized run rate, initially fueled investor optimism. Analysts from HC Wainwright and Northland Capital have raised price targets, though mixed sentiment—such as Northland’s initial pessimism—contributed to short-term volatility. The recent drop may reflect a correction amid heightened market sensitivity to earnings forecasts.

Options trading activity in August 2025, marked by surges in call options, amplified intraday swings. While HIVE’s alignment with high-growth sectors like crypto and AI remains compelling, short-term fluctuations underscore the influence of speculative trading and mixed media narratives. The drop, however, does not detract from the company’s long-term positioning in two of 2025’s most lucrative markets.