Stock Analysis

A Look at HIVE Blockchain (TSXV:HIVE) Valuation After Surpassing 20 Exahash Bitcoin Mining Capacity

HIVE Digital Technologies (TSXV:HIVE) has captured investor attention after announcing it exceeded 20 Exahash per second in Bitcoin mining capacity. This achievement is due to the launch of its hydro-powered Phase 3 facility in Paraguay.

See our latest analysis for HIVE Digital Technologies.

The news of HIVE Digital Technologies pushing its mining fleet past 20 Exahash per second, powered by efficient, green hydro energy, sparked a more than 25% jump in share price after the announcement. This highlights fresh momentum following a year of solid operational expansion. Despite wider crypto market uncertainty, the company’s one-year total shareholder return of 0.86% and recent production gains show steady progress, as investors position for future growth opportunities rather than chasing quick wins.

With crypto innovation moving fast, it’s worth keeping your eye on where smart capital is heading next. Now’s the perfect chance to explore fast growing stocks with high insider ownership.

With shares surging and the company still targeting even higher milestones, is HIVE Digital Technologies offering an undervalued growth story, or has the market already built in these impressive gains?

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Price-to-Earnings of 25.6x: Is it justified?

At a last close price of CA$7.79, HIVE Digital Technologies stands out as good value with a price-to-earnings ratio of 25.6x, much lower than both peer and industry averages.

The price-to-earnings ratio measures how much investors are willing to pay per dollar of earnings. For tech-driven firms like HIVE, this multiple reflects how much the market values future profit potential in a rapidly evolving sector.

When a company trades well below its industry average ratio, it often suggests the market is underestimating its earning power. In HIVE’s case, that 25.6x multiple is below both the Canadian Software industry at 54.9x and its peer group at 56.9x, while also remaining under the estimated fair value of 30x. This is a level the market could eventually gravitate toward if strong earnings growth is sustained.

Explore the SWS fair ratio for HIVE Digital Technologies

Result: Price-to-Earnings of 25.6x (UNDERVALUED)

However, ongoing crypto market volatility and regulatory shifts could quickly change sentiment. This reminds investors that rapid gains are never guaranteed.

Find out about the key risks to this HIVE Digital Technologies narrative.

Build Your Own HIVE Digital Technologies Narrative

If you see the story differently or prefer hands-on analysis, you can build your own perspective in just a few minutes. Do it your way.

A great starting point for your HIVE Digital Technologies research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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