Hive Blockchain, a renowned cryptocurrency mining entity, has undergone a rebranding to Hive Digital Technologies, signaling its transition into the realm of artificial intelligence (AI).
The Vancouver, Canada-based mining corporation announced on July 12 that it has excised “blockchain” from its moniker to more accurately portray its “changing focus” on potential revenue sources in the areas of graphics processing units (GPUs) and cloud computing. This move also indicates Hive’s intention to further advancements in AI and foster the “new Web3 ecosystem.”
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Hive’s CEO Aydin Kilic, in a July 12 statement to the United States Securities and Exchange Commission, stated, “To effectively expand our GPU Cloud operations, we need a strategy that adequately reflects all aspects of our enterprise. We are constructing the infrastructure for emerging digital technology, which extends beyond blockchain, and we plan to employ our substantial GPU fleet to cultivate a cloud hosting business.”
Kilic further asserted that they anticipate AI and machine learning to be significant drivers of GPU computing demand in the future.
In the contemporary crypto mining landscape, where the majority of companies primarily focus on mining proof-of-work cryptocurrencies such as Bitcoin (BTC), Hive has distinguished itself by leveraging GPUs for large-scale mining of Ether (ETH), the native cryptocurrency of the Ethereum network.
However, following the Ethereum Merge in September 2022 — a transition to a proof-of-stake consensus mechanism that eliminated the need for miners — the profitability of GPUs once deployed for ETH mining significantly declined.
Hive is not the pioneer in removing “blockchain” from its company name. Earlier this year, on January 3, Riot Blockchain, a Bitcoin mining company, rebranded to Riot Platforms to better represent its “increasingly diversified business operations.”
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