HIVE Reports Q2 Revenue of $84.9 Million with AI GPU Revenue Expanding 70% as Dual-Engine Model Drives Resilience with $139 Million in Cash on the Balance Sheet
HIVE Digital Technologies Ltd. (HIVE) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 HIVE DIGITAL TECHNOLOGIES LTD. HIVE Reports Q2 Revenue of $84.9 Million with AI GPU Revenue Expanding 70% as Dual-Engine Model Drives Resilience with $139 Million in Cash on the Balance Sheet This news release constitutes a "designated news release" for the purposes
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on a niche renewable‑energy‑backed mining and AI compute business, offering traders new pricing inputs.
Market read
First‑report earnings for a micro‑cap with mixed fundamentals; relevant for traders focused on AI/HPC and crypto‑related infrastructure stocks.
What to watch
Potential future revenue from contracted GPU cloud ARR and upcoming power purchase agreements may not be fully priced in.
HIVE Q2 FY2027 revenue of $84.9 million, down 2.7% year over year, with HPC revenue up 70.7% and a GAAP net loss of $78.7 million after a $31.2 million equipment impairment
Revenue improved 7.3% sequentially, gross operating margin rose to $30,202 thousand (35.6% of revenue) and Adjusted EBITDA turned positive at $24,807 thousand from $13,436 thousand in Q1. Against that, revenue was down 2.7% year over year, the gross operating margin was below the $42,404 thousand printed for Q2 FY2026, and the GAAP net loss was $(78,701) thousand including a $(31,187) thousand impairment of equipment and $(7,312) thousand of derivative fair-value losses.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, Q2 FY2027 (three months ended Sep 30, 2026)GAAP | $84.88M | +7.3% | -2.7% |
| Digital currency mining revenue, Q2 FY2027GAAP | $76.04M | +5.5% | -7.4% |
| High performance computing (HPC) revenue, Q2 FY2027GAAP | $8.84M | +25.3% | +70.7% |
| Total revenue, six months ended Sep 30, 2026GAAP | $164.0M | – | – |
| Digital currency mining revenue, six months ended Sep 30, 2026GAAP | $148.1M | – | – |
| High performance computing (HPC) revenue, six months ended Sep 30, 2026GAAP | $15.90M | – | – |
| Operating and maintenance costs, Q2 FY2027GAAP | −$53.56M | – | – |
| High performance computing service fees, Q2 FY2027GAAP | −$1.12M | – | – |
| Depreciation within cost of sales, Q2 FY2027GAAP | −$54.86M | – | – |
| Gross operating margin, Q2 FY2027non-GAAP | $30.20M | – | – |
| Gross operating margin as % of revenue, Q2 FY2027non-GAAP | 35.6% | – | – |
| Selling, general and administrative expenses, Q2 FY2027GAAP | −$10.70M | – | – |
| Stock-based compensation, Q2 FY2027GAAP | −$8.63M | – | – |
| Foreign exchange (loss) gain, Q2 FY2027GAAP | −$884K | – | – |
| Change in fair value of derivatives, Q2 FY2027GAAP | −$7.31M | – | – |
| Impairment of equipment, Q2 FY2027GAAP | −$31.19M | – | – |
| Non-cash provision for regulatory liabilities, Q2 FY2027GAAP | $177K | – | – |
| Non-cash provision for regulatory liabilities, six months ended Sep 30, 2026GAAP | −$84.47M | – | – |
| (Loss) income from operations, Q2 FY2027GAAP | −$78.53M | – | – |
| (Loss) income from operations, six months ended Sep 30, 2026GAAP | −$219.9M | – | – |
| Tax expense, Q2 FY2027GAAP | −$167K | – | – |
| Net loss after tax, Q2 FY2027GAAP | −$78.70M | – | – |
| Net loss after tax, six months ended Sep 30, 2026GAAP | −$221.6M | – | – |
| Diluted (loss) income per share, Q2 FY2027GAAP | $(0.29) | – | – |
| Diluted (loss) income per share, six months ended Sep 30, 2026GAAP | $(0.82) | – | – |
| EBITDA (non-GAAP), Q2 FY2027non-GAAP | −$22.13M | – | – |
| Adjusted EBITDA (non-GAAP), Q2 FY2027non-GAAP | $24.81M | 85% | – |
| Adjusted EBITDA as % of revenue, Q2 FY2027non-GAAP | 29.2% | – | – |
| Net cash (used in) provided by operating activities, six months ended Sep 30, 2026GAAP | $12.20M | – | – |
| Bitcoin received in rewards, Q2 FY2027other | 1,070 Bitcoin | – | – |
| Average Bitcoin network difficulty, Q2 FY2027other | approximately 128 trillion | – | – |
| Live GPU Cloud annualized run rate revenue (ARR), at Sep 30, 2026other | approximately $40 million | – | – |
| Contracted GPU Cloud ARR, including live ARR, at Sep 30, 2026other | approximately $185 million | – | – |
| Global power capacity operatedother | approximately 440 MW | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Digital currency mining (Tier I Bitcoin infrastructure)The company states that higher Bitcoin production supported the sequential improvement, as average network difficulty declined to approximately 128 trillion from 135 trillion in Q1 FY2027. HIVE received 1,070 Bitcoin in rewards, compared with 1,004 in the preceding quarter. | $76.04M | +5.5% | -7.4% |
| High performance computing (HPC), operated through BUZZ HPCThe company states that growth primarily reflected deployment of an NVIDIA B200 GPU cluster at its Manitoba, Canada, site, together with strong demand and pricing across GPU marketplaces. It also states that pricing for BUZZ's bare-metal GPU platforms remained healthy. | $8.84M | +25.3% | +70.7% |
Targets: Q4 calendar 2026 (GPU Cloud ARR and Yguazú energization) and year-end 2028 (HPC ARR) outlook
- NoteTargeting approximately $200 million of GPU Cloud ARR by the fourth quarter of calendar 2026, subject to financing, market conditions, deployment schedules and customer acceptance.
- NoteEnergized footprint expected to reach approximately 540 MW following planned energization of an additional 100 MW power purchase agreement at Yguazú in the fourth quarter of calendar 2026. The additional 100 MW is described as currently unallocated.
- NoteLonger-term target of approximately $700 million in total HPC ARR by year-end 2028. The company describes this as a forward-looking target, not contracted revenue, dependent on financing, construction, customer commitments, commissioning and market conditions.
Capital returns
- No dividends or share repurchases are reported in the documents.
- Quarterly ATM sales report: for the three months ended September 30, 2026, HIVE issued 13,698,085 common shares under the at-the-market program commenced in November 2025, for gross proceeds of approximately $43.2 million at an average price of $3.15 (C$4.38) per share. A cash commission of $1.3 million was paid to the sales agents.
- Six-month cash flow statement shows shares offering proceeds of 41,583 (thousand USD) against 139,163 in the prior-year six months, and issuance of debenture proceeds of 199,011 (thousand USD).
What drove it
- The company states that revenue improved sequentially because both digital currency mining and HPC contributed. Higher Bitcoin production supported the mining improvement as network difficulty declined.
- The company states that HPC growth primarily reflected deployment of an NVIDIA B200 GPU cluster in Manitoba, Canada, together with strong demand and pricing across GPU marketplaces.
- The company states that the sequential increase in SG&A primarily reflected the Merritt facility lease associated with expansion of its HPC business. SG&A was $10,698 thousand, against $9.0 million in Q1 FY2027 and $7,800 thousand in Q2 FY2026.
- The company states that the $31.2 million equipment impairment followed a recoverability assessment under U.S. GAAP, reflecting challenging Bitcoin mining economics and lower market values for ASIC equipment.
- The company states that the derivative fair-value loss primarily reflected remeasurement of capped call transactions associated with convertible notes, partially offset by gains on other derivative instruments.
- The company reports Adjusted EBITDA of $24,807 thousand, described as an 85% sequential increase. Adjusted EBITDA excludes depreciation, share-based compensation, the derivative fair-value change, the equipment impairment and the non-cash regulatory provision adjustments shown in its reconciliation.
- The company states that the Big Boden facility in Sweden (32 MW) has a signed letter of intent for long-term colocation, representing approximately $45 million of potential annual revenue if definitive agreements are executed. The company states this potential revenue is not included in contracted GPU Cloud ARR.
- The company states that the $350 million five-year GPU cloud agreement covers 2,016 NVIDIA GB300 NVL72 GPUs, and the $225 million three-year sovereign AI agreement with Bell AI Fabric supporting Cohere covers 2,304 NVIDIA GB200 NVL72 GPUs. Contracted ARR includes capacity that has not yet entered service.
Concerns
- GAAP net loss of $(78,701) thousand for the quarter and $(221,608) thousand for the six months, against net income of $(15,797) thousand and $19,219 thousand in the prior-year periods.
- Impairment of equipment of $(31,187) thousand in Q2 FY2027, compared with nil in Q2 FY2026, and a six-month loss from operations of $(219,866) thousand.
- Total revenue of $84,882 thousand was down 2.7% year over year. Digital currency mining revenue was down 7.4% year over year and gross operating margin of $30,202 thousand was below the $42,404 thousand printed for Q2 FY2026.
- The non-cash provision for regulatory liabilities totals $(84,473) thousand for the six months, and a current provision of $84,473 thousand is on the balance sheet. The filing does not describe the nature of this provision.
- Total liabilities rose to $493,230 thousand from $109,787 thousand, including a convertible loan liability component of $235,253 thousand.
- Depreciation of $(54,863) thousand in cost of sales against $(38,292) thousand a year earlier.
- The CEO states that the company recognizes macro headwinds in the AI infrastructure sector. The filing lists dependence on significant HPC customers and Bitcoin price volatility among risk factors.
- Weighted average basic shares were 274,082,247 in Q2 FY2027 against 228,137,757 in Q2 FY2026, reflecting issuance under the ATM program and other equity.
What to watch
- Delivery of the 2,304 GB200 GPU cluster before calendar year-end, and release of lender funds from escrow to the GPU OEM as milestones are met.
- Progress toward the target of approximately $200 million of GPU Cloud ARR by Q4 calendar 2026, against live ARR of approximately $40 million and contracted ARR of approximately $185 million.
- Entry into service of contracted GPU capacity, which the release says is not equivalent to current recognized revenue.
- Definitive agreements for the Big Boden colocation letter of intent (approximately $45 million potential annual revenue) and the status of the unallocated 100 MW Yguazú power purchase agreement.
- Gross operating margin trend, given the company's statement that the Q2 increase was supported by higher Bitcoin production in a lower-difficulty environment.
- Nature and future course of the $84,473 thousand provision for regulatory liabilities and of the convertible loan liability component of $235,253 thousand.
- Continued ATM issuance and its effect on share count, given the $43.2 million raised in the quarter at an average price of $3.15.
Balance sheet and cash flow
- Cash: $138,990 thousand at September 30, 2026, against $23,113 thousand at March 31, 2026. The release describes this as $139.0 million in cash and cash equivalents.
- Digital currencies: $22,622 thousand at September 30, 2026, against $10,822 thousand at March 31, 2026. The release describes this as $22.6 million.
- Total assets: $857,686 thousand at September 30, 2026, against $639,146 thousand at March 31, 2026.
- Total liabilities: $493,230 thousand at September 30, 2026, against $109,787 thousand at March 31, 2026.
- Total equity: $364,456 thousand at September 30, 2026, against $529,359 thousand at March 31, 2026.
- Convertible loan, liability component: $235,253 thousand at September 30, 2026 (nil at March 31, 2026).
- Current provision for regulatory liabilities: $84,473 thousand at September 30, 2026 (nil at March 31, 2026). The filing shows the amount without further description.
- Plant and equipment, net: $390,649 thousand at September 30, 2026, against $480,476 thousand at March 31, 2026.
- Deposits, net: $148,024 thousand at September 30, 2026, against $53,579 thousand at March 31, 2026.
- Right of use assets: $104,367 thousand at September 30, 2026, against $43,096 thousand at March 31, 2026.
- Six-month cash flows: net cash provided by operating activities $12,196 thousand; net cash used in investing activities $(136,025) thousand, including deposits on equipment of $(90,957) thousand and purchase of property of $(22,026) thousand; net cash provided by financing activities $239,281 thousand.
- The release states that the $129 million financing for the GPU purchase under the three-year agreement with Cohere and Bell was completed, and that capital commitments for the 2,304 GB200 GPU cluster were satisfied as of September 30, 2026. The GPUs are expected to ship before calendar year-end.
Analysis
HIVE reported Q2 FY2027 revenue of $84,882 thousand, up 7.3% sequentially from $79,120 thousand in Q1 but down 2.7% from $87,253 thousand a year earlier. The mix shifted further toward HPC. HPC revenue was $8,844 thousand, up 70.7% year over year and 25.3% sequentially, which the company attributes mainly to deployment of an NVIDIA B200 GPU cluster in Manitoba together with strong demand and pricing. Digital currency mining revenue was $76,038 thousand, down 7.4% year over year but up 5.5% sequentially. The company links the sequential gain to higher Bitcoin production, with 1,070 Bitcoin received against 1,004 in Q1 and average network difficulty of approximately 128 trillion against 135 trillion.
Margins improved from Q1 but remain below the prior year. Gross operating margin was $30,202 thousand, or 35.6% of revenue, against 30.6% in Q1 and 49% in Q2 FY2026. Operating and maintenance costs were $(53,556) thousand, against $(44,065) thousand a year earlier. Adjusted EBITDA was $24,807 thousand, or 29.2% of revenue, against $13,436 thousand in Q1 and $31,530 thousand in Q2 FY2026. The release describes the sequential Adjusted EBITDA increase as 85%.
The GAAP result is dominated by non-cash items. The net loss was $(78,701) thousand, against $(15,797) thousand a year earlier. The loss includes depreciation of $(54,863) thousand, an equipment impairment of $(31,187) thousand following a U.S. GAAP recoverability assessment, a change in fair value of derivatives of $(7,312) thousand that the company attributes mainly to capped call remeasurement, and stock-based compensation of $(8,628) thousand. The filing also shows a $(84,473) thousand provision for regulatory liabilities for the six months, with a current balance of $84,473 thousand. The release does not explain this provision, so the reader should consult the full filing for its nature.
Liquidity improved through financing. Cash was $138,990 thousand at September 30, 2026, against $23,113 thousand at March 31, 2026. Over the six months, HIVE raised $199,011 thousand from a debenture issuance and $41,583 thousand from shares, and reported operating cash inflow of $12,196 thousand, while investing outflows were $(136,025) thousand, including $(90,957) thousand of equipment deposits. Total liabilities rose to $493,230 thousand, including a convertible loan liability component of $235,253 thousand. The ATM program raised approximately $43.2 million in the quarter at an average price of $3.15 per share.
The forward picture rests on contracted capacity rather than current revenue. The company reports approximately $40 million of live GPU Cloud ARR and approximately $185 million of contracted ARR, and it states that contracted capacity is not equivalent to recognized revenue. It targets approximately $200 million of GPU Cloud ARR by Q4 calendar 2026 and approximately $700 million of total HPC ARR by year-end 2028, both explicitly subject to financing, deployment and customer conditions. No quarterly revenue or earnings guidance is provided in the documents, and no prior outlook was supplied for comparison. Key figures to track are the GPU deployment timing, the gap between contracted and live ARR, the gross margin trend and the nature of the regulatory provision.
Management, verbatim
Revenue was broadly stable year over year despite a 27% decline in Bitcoin prices, while HPC revenue increased more than 70%.
Frank Holmes, Co-Founder and Executive Chairman
We recognize the macro headwinds in the AI infrastructure sector, and our primary objective is to protect our balance sheet and to maintain our cashflow and profitability.
Aydin Kilic, President and CEO
Our GAAP net loss of $78.7 million included significant non-cash charges, notably $54.9 million of depreciation and a $31.2 million impairment of mining equipment following a U.S. GAAP recoverability assessment.
Darcy Daubaras, CFO
Not in the filing
stated, not guessed- Q1 FY2027 digital currency mining revenue and HPC revenue as separate figures (only the sequential percentage changes are printed).
- Q1 FY2027 loss from operations, SG&A-related operating subtotals and six-month year-over-year percentage changes.
- Year-over-year percentage changes for operating and maintenance costs, HPC service fees, depreciation, gross operating margin in dollars, Adjusted EBITDA in dollars, net loss and EBITDA.
- Prior-year and prior-quarter figures for the Adjusted EBITDA margin (29.2%) and the gross operating margin for Q1 in dollars is printed but its Q1 percentage in the table (31%) differs from the text (30.6%); the text figure is used.
- Revenue, gross margin, operating expense or tax rate guidance for any future period (none is printed).
- Prior outlook for vs_prior_guidance comparison (no previous release outlook was provided).
- Free cash flow (not printed).
- Dividends and share repurchases (none printed).
- Nature and drivers of the $84,473 thousand provision for regulatory liabilities (only the amount is printed).
- Balance sheet comparatives at September 30, 2025 (not printed).
- Share-price reaction, consensus estimates and analyst expectations (not in the documents).
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
HIVE Digital Technologies Ltd. filed an 8‑K reporting its Q2 FY2027 results, detailing revenue mix, cash balance, and forward‑looking GPU cloud contracts.
Ticker impact
Q2 FY2027 revenue $84.9M, AI GPU revenue up 70% YoY, cash $139M, GAAP net loss $78.7M.
potential modest upside as investors weigh cash strength against loss, likely limited movement.
Revenue beat sequentially and AI GPU segment expands, supporting demand; however, the sizable net loss and equipment impairments may temper enthusiasm.
Market effects
Highlights growth in AI‑focused HPC services, may benefit peers in AI cloud infrastructure.
Shows continued investment in renewable‑powered mining in Paraguay and Canada, relevant for Latin American energy markets.
Signals expanding demand for GPU compute, relevant for global semiconductor and AI hardware supply chains.
Counterpoint
The large net loss and equipment impairments could trigger sell‑offs despite cash strength.
Key entities
- companyHIVE Digital Technologies Ltd.
Provider of sustainable data‑center infrastructure with Bitcoin mining and AI compute services.
