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HIVE Digital Technologies is scaling down its bitcoin mining operations in Sweden.
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The company cited tax disputes and operational uncertainty as key reasons.
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At the same time, HIVE is expanding AI and high-performance computing infrastructure in Canada.
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The company aims to generate $200 million in annual AI data center revenue by 2027.
Bitcoin Mining Operations Reduced in Sweden
HIVE Digital Technologies announced plans to gradually reduce its bitcoin mining operations at its Boden facility in Sweden.
The company cited increasing operational challenges, including tax disputes and regulatory uncertainty involving Swedish authorities.
According to HIVE, enforcement actions and tax-related requirements have created financial uncertainty that makes the company’s traditional mining operations less economically viable.
As a result, the company is shifting resources away from ASIC-based bitcoin mining in Sweden.
Transition Toward AI Infrastructure
While reducing its mining activity, HIVE is simultaneously expanding its artificial intelligence and high-performance computing infrastructure.
The company is upgrading its 7-megawatt data center in Boden to Tier-III high-performance computing standards. This will allow the facility to support large clusters of GPUs designed for AI training and inference.
These upgrades reflect a broader strategic shift toward providing computing infrastructure for AI workloads.
Large Expansion in Canada
HIVE’s subsidiary BUZZ High Performance Computing is also expanding its AI data center footprint in Canada.
The company plans to increase capacity from 4 megawatts to 16.6 megawatts across facilities in Manitoba and British Columbia through partnerships with Bell Canada AI Fabric.
The new facilities could support the deployment of thousands of AI-focused GPUs.
Mining Firms Diversifying Revenue
HIVE’s strategy reflects a growing trend among bitcoin mining companies. Many miners are exploring new revenue streams by repurposing their data centers and energy infrastructure for AI computing.
Mining facilities already possess key assets such as large power contracts, cooling systems, and server infrastructure that can be adapted for GPU-based AI workloads.
The company expects its high-performance computing business to generate about $200 million in annualized revenue by the end of its fiscal year in March 2027.
