HIVE Digital Mines 49% More Bitcoin but Posts $78.7M Quarterly Loss

Bitcoin miner and AI infrastructure company HIVE Digital Technologies (NASDAQ: $HIVE) reported fiscal second-quarter revenue of $84.9 million on Monday, down 2.7% from a year earlier, alongside a net loss of $78.7 million, or $0.29 per share. The results came as the company increased Bitcoin (CRYPTO: $BTC) production by 49% year over year.

Despite the quarterly loss, HIVE exceeded Wall Street expectations. Its adjusted loss of $0.15 per share was narrower than the $0.16 analysts had forecast, while revenue topped the approximately $80 million expected by analysts surveyed by Zacks. The results reflect pressure on Bitcoin mining profitability from lower cryptocurrency prices and rising electricity costs, alongside an impairment charge on mining equipment.

According to the company's quarterly filing, Bitcoin mining revenue declined 7.4% to $76.0 million as the average price of Bitcoin fell to $71,003 from $114,382 a year earlier. The decline came despite a 49% increase in production, with HIVE mining 1,070 Bitcoin compared with 718 in the prior-year quarter.

Electricity expenses increased to $45.6 million from $37.9 million as the company expanded its mining operations. Meanwhile, high-performance computing (HPC) hosting revenue climbed 71% to $8.8 million, accounting for 10.4% of total revenue.

Depreciation expenses rose to $54.9 million from $38.3 million a year earlier, contributing to a shift from a $4.1 million gross profit to a $24.7 million gross loss.

HIVE also recorded a $31.2 million non-cash impairment charge on its mining equipment, citing challenging Bitcoin mining economics, including lower revenue per unit of computing power and declining market values for mining machines. The quarterly net loss compared with a loss of $15.8 million in the same period last year.

For the first six months of its fiscal year, HIVE reported a net loss of $221.6 million. That figure includes an $84.5 million non-cash provision recorded in the previous quarter related to a disputed Swedish value-added tax assessment.

HIVE ended September with $139.0 million in cash, down from $208 million at the end of June, following equipment deposit payments and other capital expenditures. The company held 269 Bitcoin at quarter-end and sold 1,909 Bitcoin for approximately $134.9 million during the first half of its fiscal year. HIVE also issued a combined $245 million in 0% exchangeable senior notes due 2031 through offerings completed in April and June.

Beyond Bitcoin mining, HIVE is accelerating its expansion into AI computing and high-performance computing infrastructure. The company expects to invest up to $493 million over 36 months to expand its HPC operations, including land acquisitions, data center construction and GPU deployments. It had spent $145.3 million toward that commitment as of its latest filing.

The company also plans to invest approximately $35 million to convert its Toronto facility into a Tier III data center. In July, its BUZZ computing subsidiary agreed to purchase $186.9 million in equipment and services, including an initial deposit of $18.7 million, with the remaining amount expected to be funded through available cash and financing.

HIVE is also targeting a 100-megawatt substation expansion at its Yguazú site in Paraguay this year, as it continues developing the power infrastructure needed to support its broader computing ambitions.

Shares of HIVE Digital Technologies (NASDAQ: HIVE) were down 2.77% at 1.76 in after hours trading Monday.