Hive Blockchain Technologies (HVBT) (HIVE) Stock Makes a Strong Comeback: Here is Why

In recent times, it has been a pretty tough time for companies that are involved in the blockchain and crypto industries. Many of the stocks have been volatile as well, however, Hive Blockchain Technologies Ltd (CVE: HIVE) (NASDAQ:HVBT) seemed to be on the path to recovery yesterday and surged by as much as 17% and took its gains for the past week to 28%.

The surge in the HIVE Blockchain stock is directly related to the rise in the price of cryptocurrencies in recent days. Hence, it might be the right time for investors to look a bit more closely into the company and its business. The company, which is regarded as the first company to have opted for using green energy for cryptocurrency mining, had gone public back in 2017. As of July 12, 2021, the company owned as many as 605 Bitcoins.

Since the company is involved in the mining business, the reward it earns is directly related to the price of the cryptocurrencies that it mines. The higher the price of cryptocurrencies, the better it is for mining companies like HIVE Blockchain. In this regard, it should be noted that earlier on in the month HIVE Blockchain also became a member of the NVIDIA Partner Network Cloud Service Provider program. In addition to that, the company also signed purchase agreements for GPUs from NVIDIA for a total value in excess of $66 million. The company’s move is an indication that it is looking to pivot into a new industry altogether in the future.

HIVE Blockchain Technologies (HVBT) (HIVE) Stock Attempts To Bounce Back: A Buy Now?

Investors are now increasingly interested in stocks of companies that are involved in the blockchain and cryptocurrency sectors. One of the companies from the sector to have garnered considerable attention in recent times is HIVE Blockchain Technologies Ltd (NASDAQ:HVBT) (CVE:HIVE).

The stock was in action yesterday and ended up clocking gains of as much as 11% as investors piled on to it. That being said, it is also necessary to remember that there was no news about the company yesterday that could have led to such gains. However, earlier this month the company made a key announcement and informed that it joined up with the NVIDIA Partner Network Cloud Service Provider program. It was a major development for the company and might have been one of the reasons behind the positivity around the stock.

However, in addition to joining up with the program, HIVE Blockchain also announced that it signed purchase agreements for NVIDIA’s GPUs in a contract that is worth in excess of $66 million.

This move is a major step for the company since it is expected to help the company to move into the lucrative Enterprise Cloud services space that is dedicated to High-Performance Computing niche. In addition to that, entry into the program is also going to help HIVE Blockchain in accessing the customers and partners which belong to NVIDIA. In other words, HIVE Blockchain will be part of a strong ecosystem and will also be able to take advantage of the considerable industry knowledge of NVIDIA.

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