Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Hive Digital Technologies’ stock surged over 7.5% on Monday, following the Bitcoin miner’s announcement of record revenue in its fiscal second quarter and a significant deal with Dell to bolster its artificial intelligence initiatives. The positive performance bucked a broader market trend that saw many major crypto stocks decline and Bitcoin dip below $92,000 for the first time since April.
Record Financial Performance
For the fiscal second quarter, which ended September 30, Hive Digital Technologies reported record revenue of $87.3 million. This represents a substantial 285% increase year-over-year and a 91% rise compared to the previous quarter. The company also achieved an adjusted EBITDA of $31.5 million, indicating strong operational results across its business segments.
Hive’s Bitcoin mining operations contributed $82.1 million to the total revenue. This was driven by an 86% quarter-over-quarter increase in its average hash rate, reaching 16.2 exahashes per second (EH/s). The company mined 717 Bitcoin during the quarter, a 77% increase from Q1, despite rising network difficulty.
Strategic Expansion into AI
The company’s Buzz high-performance computing (HPC) division also saw record revenue, generating $5.2 million, a 175% increase year-over-year. Gross operating margins for the HPC segment improved to 49%. Hive did report a GAAP net loss of $15.8 million, primarily attributed to accelerated depreciation of its Bitcoin mining rigs.
A key announcement alongside the earnings report was Hive’s Buzz subsidiary securing a deal with Dell Technologies. This partnership will deploy 504 of Dell’s latest-generation GPUs through liquid-cooled servers at Hive’s Bell AI Fabric data center. Hive aims to expand its GPU fleet to more than 6,000 new units by the end of 2026, adding to the 5,000 GPUs already operational, projecting approximately $140 million in annualized HPC revenue by Q4 2026 with roughly 80% gross margins.
Market Context and Future Outlook
Hive’s stock rise occurred while Bitcoin continued its downward trend, falling below $92,000 and erasing all of its 2025 gains. The top cryptocurrency has declined 27% since reaching a new all-time high above $126,000 in early October. Other major crypto companies like Circle and Coinbase also experienced significant stock drops on Monday.
The company has also been expanding its infrastructure, completing a 300 MW addition of new capacity in Paraguay and achieving an operational hash rate of 25 EH/s. Hive now operates a global hydro-powered data center footprint of 540 MW, with a secured path to 400 MW in Paraguay through power purchase agreements. Management projects a potential scaling to 35 EH/s by Q4 2026.
Executive Chairman Frank Holmes highlighted Hive’s perceived advantage over other Bitcoin miners entering the HPC space. Holmes stated in Monday’s earnings call that Hive has been involved in AI for three years, suggesting a deeper understanding and more complex operations compared to newer entrants.
Key Takeaways
Hive Digital Technologies’ strong fiscal Q2 results, driven by record revenue and strategic expansion into high-performance computing through its Dell partnership, underscore its efforts to diversify and capitalize on the burgeoning AI sector. This performance allowed Hive to defy a broader downturn in the cryptocurrency market, positioning it for continued growth in both Bitcoin mining and AI-focused ventures.
