HIVE reports $79 million quarterly net loss as bitcoin mining revenue falls and AI business grows

Bitcoin mining firm HIVE Digital Technologies HIVE Digital Technologies Ltd. (HIVE) reported a $78.7 million net loss in its fiscal second quarter ended Sept. 30, compared with a $15.8 million loss a year earlier.

The company generated $84.9 million in revenue, down 2.7% year over year, according to its latest earnings release on Monday.

HIVE received 1,070 BTC in mining rewards during the quarter, a 49% increase from 718 BTC in the same period last year. Mining revenue was $76 million, down from $82.1 million a year ago. Bitcoin Bitcoin (BTC) averaged $71,003 during the quarter, against $114,382 in the year-earlier period, which HIVE cited as the main reason for the decline in its 10-Q filing with the Securities and Exchange Commission. 

HIVE also booked a $31.2 million impairment after assessing the recoverable value of its mining equipment. Depreciation amounted to another $54.9 million, and adjusted EBITDA was $24.8 million.

Meanwhile, the company's BUZZ High Performance Computing business generated $8.8 million in revenue, up 70.7% from $5.2 million last year. HIVE deployed an Nvidia B200 GPU cluster at its Manitoba site in Canada during the period, with GPU marketplace demand contributing to the increase.

In June, The Block reported that the company had made $297.8 million in revenue in fiscal 2026. High-performance computing accounted for a record $19.5 million of that amount.

HIVE's GPU cloud deals

The company said it has approximately $40 million in live GPU cloud annualized run-rate revenue. Its contracted figure is now approximately $185 million, including capacity that has yet to enter service. HIVE previously signed a three-year agreement with Bell AI Fabric supporting Cohere in June for 2,304 Nvidia Grace Blackwell GPUs. In August, HIVE also signed a $350 million deal to supply 2,016 NVIDIA Blackwell Ultra GPUs to an unnamed enterprise customer over five years.

CEO Aydin Kilic said Monday that the company had secured $129 million in financing for the Bell and Cohere GPU purchase, and he expects those GPUs to ship before the end of 2026. HIVE's near-term goal is $200 million in GPU cloud ARR in the fourth quarter of 2026, followed by a longer-term target of $700 million in total HPC ARR by the end of 2028.

The company ended September with $139 million in cash and cash equivalents and $22.6 million in digital currencies, Kilic said. HIVE currently operates approximately 440 MW of power capacity and expects to energize another 100 MW at Yguazú in Paraguay in the fourth quarter.