Q: Why is HIVE much weaker in comparison with HUT?
5i Research Answer:
HUT is a $6.7B company with roughly $1.7B in BTC holdings, and it historically has been a larger-scale, cost-efficient BTC miner to HIVE. It has a lower cost per BTC mined, stable energy cost, and efficient hardware. It is also pivoting into high-performance computing.
HIVE is a smaller company ($1.1B market cap), but it holds roughly $300M in BTC. It is less efficient in its BTC mining operations than HUT, but we feel it has a stronger presence in the AI compute and high-performance computing space. It has a wholly owned subsidiary, BUZZ, which can be considered a sovereign AI cloud provider with a focus on Canadian enterprises and governments. It recently announced an agreement with Dell and Bell to deploy the Bell AI fabric network.