Hive Digital, a Canadian cryptocurrency mining company, has abandoned its plans to enter the blockchain and artificial intelligence (AI) sectors. The company announced on Wednesday that it will focus on expanding its core business of Bitcoin and Ethereum mining.
The decision came after a strategic review of the company’s operations and market conditions. Hive Digital said that it had determined that the blockchain and AI sectors were too competitive and capital-intensive for its current resources and capabilities. The company also cited regulatory uncertainties and environmental concerns as factors that influenced its decision.
Hive Digital had previously announced its intention to diversify into blockchain and AI in June 2021, when it acquired a 30% stake in Link Global Technologies, a provider of data center solutions. The company had also partnered with DeFi Technologies, a blockchain investment firm, to launch a decentralized finance (DeFi) index fund.
However, Hive Digital said that it will now sell its stake in Link Global and terminate its partnership with DeFi Technologies. The company said that it will use the proceeds from the sale to invest in more efficient and sustainable mining equipment and facilities. Hive Digital also said that it will continue to explore opportunities in the DeFi space, but only as a user and not as a developer or operator.
Hive Digital is one of the largest publicly traded Bitcoin and Ethereum miners in the world, with operations in Canada, Sweden, and Iceland. The company claims to have a carbon-neutral footprint and to use 100% green energy sources for its mining activities. Hive Digital said that it aims to increase its Bitcoin mining capacity by 50% and its Ethereum mining capacity by 20% by the end of 2021