HIVE Shares Jump 45% After Unveiling Ontario AI Gigafactory Plans

HIVE Digital Technologies Ltd. shares jumped as much as 45% on Monday, May 18, 2026, after the company announced plans for a massive “AI gigafactory” in Ontario. The project, led by subsidiary BUZZ High Performance Computing Inc., involves a CAD $3.5 billion investment to build a vertically integrated AI supercomputing facility. Following the announcement, HIVE stock surged 33.1% in premarket trading before hitting a four-month high of approximately $3.55.

The move represents a significant pivot for the organization as it transitions from a pure Bitcoin mining firm into a broader AI cloud infrastructure provider. By establishing this facility in the Greater Toronto Area, the company aims to support enterprise, research, and public sector applications across Canada. This expansion comes at a time when many crypto-linked stocks have faced downward pressure due to Bitcoin price volatility.

Located within Canada’s technology and AI corridor between Toronto and Waterloo, the new infrastructure is designed to eventually support approximately 130,000 GPUs across the company’s Canadian operations. At full build-out, the specific Ontario site will host more than 100,000 GPUs. The facility is expected to come online in the second half of 2027, powered by the provincial clean energy grid.

Land acquisition and facility specifications in the Greater Toronto Area

BUZZ High Performance Computing Inc. secured approximately 25 acres of land for the project at a total cost of $58 million. This acquisition comprises a 21-acre main parcel purchased for $46 million and an additional 4-acre parcel for $12 million. These plots provide the physical foundation for a site that will feature 320 megawatts (MW) of utility capacity.

The engineering plan emphasizes environmental efficiency through a “no-water-use” approach. The gigafactory will utilize closed-loop cooling systems to manage the intense thermal demands of high-performance computing. This technical setup is crucial for specialized tasks like machine learning and data analytics. Similar high-level infrastructure shifts are becoming more common as AI and asset drives reshape the industry through multi-billion dollar capital commitments.

HIVE Digital Technologies Ltd. currently operates 100 MW of data centers in Canada, including a 70 MW facility in New Brunswick. The addition of the 320 MW Ontario pipeline will more than quadruple its domestic power capacity. Globally, the company manages over 850 MW of total capacity, with 450 MW currently operational and 400 MW expected to come online next year.

Job creation and capital investment for Canada’s AI corridor

The CAD $3.5 billion (USD $2.55 billion) investment is projected to be a major economic driver for the region. Construction of the gigafactory is expected to create over 800 jobs. Once operational, the facility will require hundreds of permanent high-skill employees to maintain the supercomputing hardware and infrastructure.

Financially, the project is supported by a recent $115 million 0% exchangeable note offering. This capital infusion allows the company to build out its high-performance computing business while maintaining a smaller treasury of digital assets. HIVE currently holds roughly 481 BTC on its balance sheet, valued at approximately $37 million, down from a peak of 2,620 BTC in the previous year.

This reallocation of capital toward AI infrastructure suggests a move to de-risk the business from the extreme liquidations sometimes seen when Bitcoin and Ethereum lead market-wide crashes. The stock’s 45% surge on Monday indicates that investors are responding positively to the shift toward more stable enterprise services.

Market performance and HIVE Digital Technologies’ long-term outlook

Monday’s rally marks a notable recovery for the NASDAQ-listed HIVE shares, which have traded at an average price of $2.91 over the last 52 weeks. While the price remains below the February 2021 all-time high of $26.85, the climb from a 52-week low of $1.60 shows renewed momentum. The stock had closed at $2.69 on the Friday preceding the gigafactory announcement.

The transition to AI supercomputing is already underway, as the company currently operates 5,500 GPUs for AI compute tasks. Expanding this to over 100,000 GPUs in Ontario will place the company among the larger providers of independent high-performance computing in North America. The specific focus on “vertically integrated” infrastructure suggests the firm wants to control everything from the land and power supply to the final compute output.

As the second half of 2027 approaches, the focus will shift to the successful execution of the build-out. With 400 MW of global pipeline capacity slated to come online that year, the Ontario gigafactory stands as the center of the company’s pivot from digital gold mining to the high-density computing that powers modern artificial intelligence.