HIVE Digital Technologies Ltd.

What they do

HIVE operates sustainable data center infrastructure for digital currency mining (primarily Bitcoin) and high-performance computing (HPC) hosting. It generates revenue from mining Bitcoin using its own fleet and from hosting GPU clusters, such as NVIDIA H200 and B200 systems, for HPC customers. The company has expanded operations into Paraguay, with a 300 MW expansion, and operates a BUZZ HPC business that provides GPU-as-a-service on marketplace and bare-metal contracts.

Revenue drivers

• Digital Currency Mining — Dominant revenue source: $278.3 million in FY2026, up 164% YoY, driven by four-fold increase in installed hashrate and higher Bitcoin prices.
• HPC Hosting (BUZZ HPC) — Record $19.5 million in FY2026, up 94% YoY, from NVIDIA H200 GPU cluster and HPC marketplace demand; smaller but higher-margin (~40% gross margin).
• GPU Marketplace & Bare-Metal Contracts — Contributing to HPC growth with doubled marketplace revenue in Q4 FY2026 and new bare-metal customer contracts.

Recent performance

FY2026 total revenue was $297.8 million, up 158% YoY, but GAAP net loss was $148.4 million due to ~$170.4 million depreciation and $50.9 million non-cash adjustments. Adjusted EBITDA was $72.9 million (24% margin). Q4 FY2026 revenue was $71.8 million, with Bitcoin mining revenue down 23.9% sequentially due to lower Bitcoin prices and higher network difficulty; HPC revenue was $4.6 million, up 54% YoY. Cash and equivalents were $23.1 million on March 31, 2026, with total assets of $639.1 million.

Strategy

Management is focused on expanding digital currency mining hashrate, notably completing Paraguay Phase 3 in November 2025 to reach 25.1 EH/s installed. The company also targets HPC growth by deploying NVIDIA B200 GPU clusters, including a 504-unit cluster at Bell Canada's AI Fabric facility (shifted from March to May 2026). Strategy includes increasing HPC gross margins to ~40% and leveraging operating scale to improve overall margins. Management also highlights sustainable data center infrastructure and fleet optimization via controlled downclocking.

Risks

• Bitcoin price volatility — Q4 FY2026 net loss of $83.3 million was exacerbated by a 27% sequential drop in average Bitcoin price, directly impacting mining revenue and hashprice compression.
• Network difficulty increases — Average network difficulty rose 42% YoY in FY2026 and 27% YoY in Q4, pressuring mining economics and potentially offsetting hashrate gains.
• Non-cash charges and depreciation — FY2026 GAAP net loss of $148.4 million included $170.4 million depreciation and $50.9 million non-cash adjustments, indicating significant asset-related write-downs.
• HPC deployment delays — HPC revenue was slightly below prior quarter in Q4 FY2026 because the B200 cluster deployment shifted from March to May 2026, exposing execution risk.

Outlook

Management expects continued growth from both mining and HPC segments, with Paraguay Phase 3 operational and additional HPC clusters coming online. They anticipate HPC gross margins to persist around 40% and expect operating leverage on the 300 MW expansion to improve overall margins. The company remains subject to Bitcoin price volatility and network difficulty trends in the near term.