Jones Trading Gives Hive Digital Technologies Buy Rating With $6 Price Target

Hive Digital Technologies has received a buy rating from Jones Trading, which initiated coverage on the company. The firm's price target is $6.00, representing a 90% upside from the current price of $3.16. This is not the first time Hive has shown significant growth; over the past six months, its stock has returned 74%. The San Antonio-based company was founded in 2017 as the first publicly-traded cryptocurrency mining firm.

Hive's initial focus was on GPU mining through a partnership with Genesis Mining in Iceland when Ethereum operated on a proof-of-work protocol. The company later expanded its mining operations to Sweden and Canada, addressing power shortages with locked-in returns. Jones Trading analyst Kevin Dede highlighted the firm's experience in AI and high-performance computing, particularly its GTA gigafactory initiative.

Jones Trading described its $6 price target as highly conservative. The firm cited Hive Digital's power pipeline opportunity as part of its investment thesis. However, investors should note that Hive is not expected to be profitable this year, with revenue of $331 million but negative earnings.