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This Billionaire Just Bet on a Stock That Claims It Should Be Trading 460% Higher

MarketDash Editorial Team
19 days ago
HIVE Digital Technologies says Wall Street has it all wrong. The company argues it deserves a valuation closer to AI data centers than Bitcoin miners—and at least one hedge fund legend is betting they're right.

HIVE Digital Technologies Ltd (HIVE) just threw down a fascinating challenge to the market. On its second quarter earnings call, executive chairman Frank Holmes told investors that if HIVE were valued like other data center operators, the stock wouldn't be trading anywhere near current levels. His exact words: "If we were valued at other data centers… HIVE would be a $20 [stock]."

That's quite the statement when shares are trading around $3.52. We're talking about a theoretical upside of more than 460%, and Holmes clearly believes the gap exists because Wall Street fundamentally misunderstands what HIVE has become.

The Identity Crisis Wall Street Needs to Resolve

Here's the tension: Holmes spent much of the call arguing that HIVE isn't just a Bitcoin (BTC) miner anymore. The company is transforming into a sovereign-grade AI compute provider, converting facilities in Canada and Sweden into Tier-3 GPU data centers and tapping Paraguay's massive hydro grid to scale operations.

"The AI boom is for real," Holmes said, dismissing the recent sentiment pullback as "short-term" and driven by analysts who "do not really understand what is driving the secular market."

He emphasized HIVE's infrastructure advantage: "We know what it is to build data centers… we know what it takes to build Tier 3, and we are scaling." The company plans to expand its AI cloud capacity fivefold over the next year, specifically targeting the valuation disconnect Holmes is highlighting.

When a Billionaire Takes Notice

If management thinks HIVE is wildly mispriced, at least one billionaire appears to agree. Steven Cohen, operating through Point72 Asset Management, initiated a brand new long position in HIVE during the July-September quarter. Cohen doesn't exactly throw darts at small-cap tech names, which makes this move particularly interesting given HIVE's size and volatility profile.

He's not alone among hedge fund heavyweights either. Israel Englander increased his stake in HIVE during the same quarter, while Ken Griffin trimmed his position but still maintains sizable exposure.

The Market's Homework Assignment

Holmes' $20 price target isn't just executive optimism—it's essentially a dare to Wall Street. The question investors need to answer: should you value HIVE like a Bitcoin miner or like an AI data center builder? Those are two very different multiples, and the company is betting everything on convincing the market it belongs in the latter category.

If HIVE pulls off this identity shift, Cohen may have positioned himself beautifully ahead of the crowd. The real test will be whether the company's operational pivot happens fast enough to change the narrative before patience runs out.

Back to News

This Billionaire Just Bet on a Stock That Claims It Should Be Trading 460% Higher

MarketDash Editorial Team
19 days ago
HIVE Digital Technologies says Wall Street has it all wrong. The company argues it deserves a valuation closer to AI data centers than Bitcoin miners—and at least one hedge fund legend is betting they're right.

HIVE Digital Technologies Ltd (HIVE) just threw down a fascinating challenge to the market. On its second quarter earnings call, executive chairman Frank Holmes told investors that if HIVE were valued like other data center operators, the stock wouldn't be trading anywhere near current levels. His exact words: "If we were valued at other data centers… HIVE would be a $20 [stock]."

That's quite the statement when shares are trading around $3.52. We're talking about a theoretical upside of more than 460%, and Holmes clearly believes the gap exists because Wall Street fundamentally misunderstands what HIVE has become.

The Identity Crisis Wall Street Needs to Resolve

Here's the tension: Holmes spent much of the call arguing that HIVE isn't just a Bitcoin (BTC) miner anymore. The company is transforming into a sovereign-grade AI compute provider, converting facilities in Canada and Sweden into Tier-3 GPU data centers and tapping Paraguay's massive hydro grid to scale operations.

"The AI boom is for real," Holmes said, dismissing the recent sentiment pullback as "short-term" and driven by analysts who "do not really understand what is driving the secular market."

He emphasized HIVE's infrastructure advantage: "We know what it is to build data centers… we know what it takes to build Tier 3, and we are scaling." The company plans to expand its AI cloud capacity fivefold over the next year, specifically targeting the valuation disconnect Holmes is highlighting.

When a Billionaire Takes Notice

If management thinks HIVE is wildly mispriced, at least one billionaire appears to agree. Steven Cohen, operating through Point72 Asset Management, initiated a brand new long position in HIVE during the July-September quarter. Cohen doesn't exactly throw darts at small-cap tech names, which makes this move particularly interesting given HIVE's size and volatility profile.

He's not alone among hedge fund heavyweights either. Israel Englander increased his stake in HIVE during the same quarter, while Ken Griffin trimmed his position but still maintains sizable exposure.

The Market's Homework Assignment

Holmes' $20 price target isn't just executive optimism—it's essentially a dare to Wall Street. The question investors need to answer: should you value HIVE like a Bitcoin miner or like an AI data center builder? Those are two very different multiples, and the company is betting everything on convincing the market it belongs in the latter category.

If HIVE pulls off this identity shift, Cohen may have positioned himself beautifully ahead of the crowd. The real test will be whether the company's operational pivot happens fast enough to change the narrative before patience runs out.