HIVE Revenue Reaches $84.9 Million as High-Performance Computing Grows 70.7%
Key Facts
HIVE Digital Technologies reported revenue of $84.9 million for the second quarter of its fiscal 2027, ended September 30, 2026, up 7.3% from the previous quarter and down 2.7% year over year. Quarterly revenue growth came as its high-performance computing business expanded, generating $8.8 million, compared with $7.1 million in the first quarter. Revenue from the business rose 70.7% from the same period a year earlier and 25.3% from the previous quarter. Digital currency mining remained the largest revenue source, generating $76.0 million. The company said its results reflect a business combining bitcoin mining data centers with data centers for artificial intelligence computing.
Digital currency mining revenue was $76.0 million, up 5.5% from the previous quarter but down 7.4% year over year. HIVE attributed the quarterly improvement to higher bitcoin production, saying it received 1,070 bitcoin in mining rewards during the quarter, compared with 1,004 in the previous period. Average network difficulty also fell to about 128 trillion, from 135 trillion in the first quarter of fiscal 2027. Meanwhile, high-performance computing revenue growth came from deploying a NVIDIA B200 cluster in Manitoba, alongside demand and pricing in GPU markets. The chairman said revenue was broadly stable year over year despite a 27% decline in bitcoin prices, while high-performance computing revenue increased by more than 70%.
Revenue growth did not prevent the company from posting a GAAP net loss of $78.7 million. The results included $54.9 million in depreciation and $31.2 million in impairment of mining equipment, both non-cash items, according to the company. In the first quarter of fiscal 2027, HIVE recorded a loss of $142.9 million, mainly related to a non-cash provision of $84.7 million for disputed regulatory obligations. The company said the provision relates to Swedish value-added tax assessments and that it continues to pursue legal appeals before Sweden's administrative court system. On operating metrics, gross operating margin was $30.2 million, or 35.6% of revenue, compared with $24.2 million and 30.6% in the previous quarter. Adjusted EBITDA was $24.8 million, up 85% from the previous quarter.
HIVE ended the quarter with $139.0 million in cash and cash equivalents, in addition to $22.6 million in digital currencies, based on balances as of September 30, 2026. The company said annualized GPU Cloud revenue run rate was about $40 million from deployed capacity. It estimated total contracted annual revenue at about $185 million, but that figure includes capacity not yet in service and does not represent revenue currently recognized. The Bell AI Fabric agreement to support Cohere includes about 2,304 NVIDIA GB200 NVL72 units, worth about $225 million over three years. HIVE announced $129 million in financing to purchase the GPUs associated with the agreement, and also issued 13,698,085 shares during the quarter through its at-the-market offering program, generating gross proceeds of about $43.2 million at an average of $3.15 per share.
The company aims to reach about $200 million in annualized GPU Cloud revenue run rate by the fourth quarter of 2026, but said this depends on financing availability, market conditions, deployment schedules and customer acceptance. The chief executive said current market GPU prices, measured in dollars per hour of usage, exceed contracted prices from six months ago, with prices varying by GPU model. He added that the priority is to convert contracted capacity into stronger revenue and earnings. The second-quarter results conference call was scheduled for November 10, 2026, at 8:00 a.m. Eastern time. Against the backdrop of its expansion plans, Ontario issued a data center guideline in August 2026, and the provincial premier's office said it aims to approve new data centers "sooner rather than later."