Key Takeaways:
HIVE Digital reported fiscal first-quarter revenue of $79.1 million, up 73% year over year, as GPU cloud contracts reached $180 million in annualized revenue.
"We're at critical mass now," President and CEO Aydin Kilic said, citing the $180 million in active and contracted GPU cloud annualized revenue, up from about $35 million active today.
Bitcoin mining generated $72.1 million of revenue, while HPC and AI operations contributed about $7 million. Gross operating margin rose to $24.2 million from $15.8 million a year earlier, though margin as a percentage of revenue slipped to 31% from 35%. Adjusted EBITDA was $13.4 million, compared with negative $9 million in the prior quarter. The company produced about 1,004 Bitcoin equivalent and ended June with 190 Bitcoin in treasury.
The company recorded a GAAP net loss of $142.9 million, or 54 cents a share, driven largely by an $84.7 million non-cash provision tied to a Swedish VAT dispute and $53.7 million of depreciation. Shares rose 8.9% to $4.05. HIVE signed a five-year, $360 million GPU cloud contract for 2,088 NVIDIA GB300 GPUs to be deployed at Bell Canada's Merritt, British Columbia, facility in the fourth quarter, adding about $70 million in annualized revenue.
Chief Financial Officer Darcy Daubaras called the quarter "strong from an operating perspective," citing year-over-year revenue growth, higher gross operating margin in dollar terms, positive adjusted EBITDA and increased liquidity. HIVE held $208 million of cash at June 30, up from about $23 million at March 31, reflecting exchangeable senior note offerings and proceeds from its at-the-market equity program.
The new agreement follows a three-year, $225 million contract with AI company Cohere, bringing total GPU cloud contract value signed this year to about $600 million. Kilic said HIVE still targets $200 million in annualized GPU cloud revenue by fiscal year-end. Management also outlined a letter of intent for an HPC colocation lease at its Boden, Sweden, site that would add about $45 million in annualized revenue from 25 megawatts of IT load, with a definitive agreement expected before the end of September.
Kilic said Bitcoin mining currently generates about $750,000 in daily revenue, while HPC operations generate about $97,000 daily. Once contracted GPU deployments come online in the fourth quarter, he expects HPC to account for about 40% of total revenue, with Bitcoin mining representing the remaining 60%. HIVE's global power footprint totals 860 megawatts, including 440 megawatts of active Tier 1 sites.
The Swedish VAT dispute, disclosed since 2023, remains unresolved. Kilic said HIVE is contesting the assessment and does not plan to pay it, pursuing legal avenues in Sweden and potentially the European Union. The company's shift toward AI infrastructure signals management expects GPU cloud to become a growing share of revenue. Investors will watch for the Boden definitive agreement in September and fourth-quarter GPU deployments as the next catalysts.
This article is for informational purposes only and does not constitute investment advice.
