HIVE Digital Technologies Ltd HIVE is putting its money, or rather, its Bitcoin BTC/USD, where its mouth is.

While most Bitcoin miners scramble for capital or take on high-interest debt, HIVE is doing something different: using the BTC on its balance sheet to fund growth. But as CFO Darcy Daubaras admits in an exclusive email interview with Benzinga, this strategy is a double-edged sword.

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Bitcoin As Balance Sheet Fuel — With Volatility Risk Baked In

"Utilizing Bitcoin from our treasury to fund growth provides us with flexibility without incurring debt," Daubaras says. "However, it demands disciplined timing and robust treasury management."

Translation? It's bold, but not without danger. Bitcoin's notorious price swings could wreak havoc on HIVE's liquidity and net asset position. In plain terms: when BTC dips, so might HIVE's wiggle room.

This isn’t just a paper risk either. Daubaras warns that volatility can "affect borrowing capacity, financial covenants, and risk tolerance among lenders or investors." In a downturn, just when capital is most needed, HIVE could find itself handcuffed.

Read Also: HIVE Digital Energizes Paraguay Site With Major Bitcoin Mining Expansion

No Collateral, No Cushion: HIVE's High-Stakes Strategy Explained

And the regulatory fog doesn't help. Shifting accounting standards for crypto assets could complicate how this balance sheet strategy plays out. Yet, despite these risks, Daubaras is clear on one thing: "HIVE does not use our BTC as a pledge or as collateral against debt or other obligations."

In other words, they're not gambling the house. Still, they're definitely playing high-stakes poker.

It's a sharp contrast to competitors who are piling on debt or diluting shareholders. HIVE's play is leaner, greener (they use hydro power), and highly leveraged—but only in terms of Bitcoin conviction.

Investors watching this bet unfold should ask: can HIVE time the market well enough to turn Bitcoin into a sustainable growth engine?

Or will the very asset that makes HIVE unique become its biggest constraint?

It's a bold bet—and a reminder that crypto remains a double-edged tool in capital strategy.

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Image created using artificial intelligence via Midjourney.