HIVE Digital Technologies (TSXV:HIVE): Valuation Check After Record Bitcoin Output, AI Expansion and New Colombian Listing

HIVE Digital Technologies (TSXV:HIVE) has packed several meaningful updates into the past few weeks, from record November Bitcoin production to a fresh Colombian Stock Exchange listing and accelerating AI and HPC infrastructure expansion.

See our latest analysis for HIVE Digital Technologies.

Despite record Bitcoin production and new Latin American listings, HIVE’s CA$3.84 share price has faced pressure, with a roughly 28 percent 90 day share price decline and a still positive three year total shareholder return. This suggests longer term momentum is cooling rather than broken.

If you like HIVE’s blend of crypto infrastructure and AI ambitions, it can be worth seeing what else fits that profile by scanning high growth tech and AI stocks for other potential candidates.

With record Bitcoin output, surging AI and HPC revenue, and a sharply lower share price, investors now face a key question: is HIVE trading at a discount to its growth runway, or is the market already pricing it in?

Price-to-Earnings of 19.3x: Is it justified?

HIVE Digital Technologies trades on a price-to-earnings ratio of 19.3 times, which looks inexpensive against peers yet still rich versus its own fundamentals.

The price-to-earnings multiple compares the company’s current share price to its per share earnings. It captures how much investors pay today for each dollar of profit. For a business exposed to volatile crypto cycles and fast growing, infrastructure heavy digital operations, this benchmark is a key lens on how optimistic the market is about future profitability.

On one side, HIVE screens attractively when stacked against the Canadian Software industry average of 49.4 times earnings and a peer group around 41.1 times. This hints that investors may be underpricing its expected revenue expansion. On the other side, the same 19.3 times multiple looks demanding when set against an estimated fair price-to-earnings ratio of 5.7 times. That is a level the market could gravitate toward if earnings come under pressure or sentiment cools.

Explore the SWS fair ratio for HIVE Digital Technologies

Result: Price-to-Earnings of 19.3x (OVERVALUED)

However, weaknesses in earnings momentum and HIVE’s sensitivity to crypto price cycles could quickly undermine the case for a sustained valuation premium.

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

Build Your Own HIVE Digital Technologies Narrative

If you see the story unfolding differently, or simply prefer hands on research, you can assemble a custom view of HIVE in minutes: Do it your way.

A great starting point for your HIVE Digital Technologies research is our analysis highlighting 2 key rewards and 6 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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