Hive Blockchain Technologies’ (NASDAQ:HVBT) (CVE:HIVE) shares rose by over 6% on Friday as the firm became part of the NVIDIA Partner Network Cloud Service Provider program. This demonstrates that the company is delving deeper into cloud computing as it purchases NVIDIA’s data center graphic processing units for a little over US$66 million.
Prior to this, Hive harnessed GPUs for mining Ethereum and Bitcoin at the various data center farms located in Iceland, Sweden, and Canada. However, the recent regulatory crackdown by UK and China has led the company to widen its revenue stream options.
Used for boosting computing power, graphic cards act as accelerators and are key to Hive’s offering of high-performance graphic computing. Applications such as graphic rendering, AT, and private blockchain computing are being explored by the company, confirmed in its last earnings call. Its investment in Alpha Sigma Capital Fund financing companies working on blockchain technology and the partnership with Nvidiabolsters the diversification from just crypto mining to cloud computing.
Hive earns maximum revenues through the sale of crypto and hosting computing capacity to miners but the move to host GPU computing for enterprises can be a significant gamechanger.
According to ResearchAndMarkets.com, the global cloud computing market is expected to grow at a compound annual growth rate of 17.5% in the 2020-2025 period with bigwigs such as Microsoft, IBM, and Amazon also targeting this segment for growth. In the past, sectors such as telecom, IT, finance, insurance, banking, and media used cloud computing extensively. The covid-19 pandemic though has rapidly transitioned businesses towards digital as enterprise customers put their business on the cloud.
Market Reaction:
On Friday, HIVE stock went up 6.21% at C$3.76 with more than 2.67 million shares, compared to its average volume of 3.12 million shares. The stock has moved within a range of C$3.5600 – 3.9000 after opening the trade at C$3.80. Over the past 52-week, the stock has been trading within a range of C$0.3000 – 7.2500.
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