Hive doubles down on BTC hodl strategy

Hive Digital is intensifying its long-term Bitcoin (CRYPTO:BTC) treasury strategy, focusing on retaining a significant portion of its mined Bitcoin to benefit from potential price appreciation.

This approach is designed to avoid reliance on debt or equity dilution, common practices in the mining industry, especially during market downturns.

According to Darcy Daubaras, Hive Digital's CFO, a long-term Bitcoin holding strategy is preferable to relying on debt or equity dilution for funding.

This is particularly important given the recent 30% drop in Bitcoin's price and the broader challenges faced by miners, including high interest rates and declining creditworthiness.

Hive has increased its Bitcoin holdings to 2,805 BTC by the end of 2024, using the recent market sell-off to expand its mining capacity and explore acquisition targets.

While the company is not opposed to selling some Bitcoin to fund strategic investments, it aims to balance growth with long-term success by selectively selling assets to finance accretive investments.

To navigate the challenges of volatile prices and rising costs, Hive has diversified its business model to include AI data centers and prioritised renewable energy sources.

This shift towards AI and high-performance computing is becoming increasingly common among miners, as it provides a more predictable revenue stream to buffer against mining volatility.

"selectively selling Bitcoin to fund accretive investments creates a balance of growing our operations and positioning ourselves for long-term success," Daubaras emphasised.

At the time of reporting, the Bitcoin (BTC) price was $85,896.13.