HIVE Digital revenue hits $297.8M, up 158% on AI pivot

HIVE Digital Technologies Ltd. reported fiscal 2026 revenue of $297.8 million, up 158% from a year earlier, as the company's expansion into AI compute infrastructure and a fourfold increase in Bitcoin mining capacity drove results above analyst expectations.

"Fiscal 2026 marked a defining year for HIVE as we significantly expanded both sides of our platform," Co-Founder and Executive Chairman Frank Holmes said.

Digital currency mining revenue rose 164% to $278.3 million, fueled by a roughly fourfold increase in installed operational hashrate to 25.1 EH/s from 6.5 EH/s. The company mined 2,885 Bitcoin during the fiscal year, up 104% from 1,414 in FY2025, materially outpacing the 42% increase in average network difficulty. High-performance computing revenue from the BUZZ HPC subsidiary grew 94% to a record $19.5 million, driven by deployment of an NVIDIA H200 GPU cluster and strong demand on the GPU marketplace.

Gross operating margin expanded to 36% from 22% a year earlier, reflecting operating leverage from the 300 MW Paraguay expansion and HPC gross margin expansion to approximately 40%. Adjusted EBITDA reached $72.9 million, or 24% of total revenue, compared with an adjusted EBITDA loss of $30.7 million in the prior year's fourth quarter. The GAAP net loss of $148.4 million was largely attributable to non-cash items, including $170.4 million of depreciation and $50.9 million of net non-cash adjustments.

The company exited the year with contracted HPC annualized recurring revenue of $35 million, up from approximately $20 million, after its first 504 NVIDIA B200 GPU cluster went live at Bell Canada's AI Fabric facility in May at signed contract pricing of $2.90 per GPU-hour, 32% above the planning rate. HIVE now targets $660 million in ARR by year-end 2028, anchored by a planned 320 MW AI gigafactory in the Greater Toronto Area designed to host more than 100,000 GPUs.

Q4 performance reflects hashprice pressure

In the fiscal fourth quarter, total revenue came in at $71.8 million. Bitcoin mining revenue was $67.2 million, down 23.9% sequentially, driven by a 27% decline in the average Bitcoin price to $76,476 and a 27% year-over-year increase in average network difficulty to 140.7T. HPC revenue totaled $4.6 million, up 54% from a year earlier but marginally below the prior quarter as deployment of the B200 cluster shifted from March to May.

Gross operating margin in Q4 was 24%, or $17.5 million, while adjusted EBITDA was negative $9 million, reflecting hashprice compression as Bitcoin declined from its October all-time high through quarter-end and network difficulty climbed to record levels.

Capital structure and growth runway

After year-end, HIVE closed $115 million of 0% exchangeable senior notes due 2031, generating net proceeds of approximately $109.5 million. The company also completed an up-listing from the TSX Venture Exchange to the senior board of the Toronto Stock Exchange on May 19, broadening institutional access.

The company's 300 MW Paraguay expansion was fully delivered across three phases, with the final phase completed two weeks ahead of schedule in November 2025. HIVE now operates 440 MW of global power capacity across Canada, Sweden and Paraguay, all powered by green energy.

The results validate HIVE's transition from a pure Bitcoin miner into a dual-engine data center operator spanning crypto mining and AI compute. Investors will watch the June 2 earnings call for updates on the 320 MW GTA gigafactory timeline, customer pipeline and margin trajectory as the company seeks to convert its power and land access into funded data center revenue.

This article is for informational purposes only and does not constitute investment advice.