• HIVE Digital is expected to double its hashrate in the coming year, the report said.

• Cantor assumed coverage of the stock with an overweight rating and $9 price target.

• The broker said the market was underappreciating the company's prospects.

Bitcoin {{BTC}} miner HIVE Digital (HIVE) is expected to more than double its hashrate in the next 12 months, broker Cantor said in a research report Tuesday, initiating coverage of the stock.

Cantor assumed coverage of HIVE with an overweight rating and a $9 price target. The shares rose about 3.6% on Tuesday, trading around $4.26.

The broker said it expects the miner to "more than double its hashrate over the next year." Hashrate refers to the total combined computational power used to mine and process transactions on a proof-of-work blockchain and is a proxy for competition in the industry and mining difficulty.

HIVE is expected to grow its hashrate from 5.5 exahashes per second (EH/s) to 13 EH/s by the end of next year, Cantor said, and this "upcoming growth inflection" has not been priced in by the shares.

The company's plans in artificial intelligence (AI) and high performance computing (HPC) are potentially more enticing to investors, the report said.

"Its eyes are set on its GPU cloud model named HIVE Cloud," analysts Brett Knoblauch and Thomas Shinske wrote, noting that the miner is targeting $100 million of annual recurring revenue (ARR) by the end of next year.

The market is under valuing the miner's coming hashrate growth inflection as well as the company's GPU ambitions, the report added.

Read more: Hive Digital's AI Play