HIVE Digital Technologies Q1 Earnings Call Highlights

Key Points

• Revenue surged 73% year over year to $79.1 million, driven primarily by Bitcoin mining, while adjusted EBITDA improved to $13.4 million. However, HIVE reported a $142.9 million GAAP net loss, largely due to an $84.7 million non-cash Swedish VAT provision and $53.7 million in depreciation.
• HIVE expanded its GPU cloud pipeline with a five-year, $360 million contract for 2,088 NVIDIA GB300 GPUs, bringing active and contracted annualized GPU revenue to $180 million. The company continues targeting $200 million in GPU-cloud annual recurring revenue by fiscal year-end.
• The company ended the quarter with $208 million in cash and is advancing data-center projects in Sweden, Canada and Paraguay, while continuing to contest the Swedish VAT assessment. Management expects HPC to reach roughly 40% of revenue after contracted GPU deployments come online.

HIVE Digital Technologies NASDAQ: HIVE reported fiscal first-quarter 2027 revenue of $79.1 million, up 73% from $45.6 million a year earlier and 10% sequentially, as the company expanded its Bitcoin mining operations and continued building its high-performance computing, or HPC, and artificial intelligence infrastructure business.

The company recorded a GAAP net loss of $142.9 million, or $0.54 per share, compared with net income of $35 million, or $0.19 per share, in the prior-year quarter. Chief Financial Officer Darcy Daubaras said the reported loss was largely affected by non-cash items, including an $84.7 million provision tied to an ongoing Swedish VAT dispute and $53.7 million of depreciation.

“This was a strong quarter from an operating perspective,” Daubaras said, citing year-over-year revenue growth, higher gross operating margin in dollar terms, positive adjusted EBITDA and increased liquidity.

Operating Results and Liquidity

Bitcoin mining remained HIVE’s largest business, producing $72.1 million of quarterly revenue, while HPC and AI operations generated about $7 million. Gross operating margin rose to $24.2 million from $15.8 million in the year-earlier period, though margin as a percentage of revenue declined to 31% from 35%.

On a sequential basis, gross operating margin increased from $17.5 million in the preceding quarter. Adjusted EBITDA was $13.4 million, compared with negative adjusted EBITDA of $9 million in the prior quarter. The company produced approximately 1,004 Bitcoin equivalent during the quarter and ended June with 190 Bitcoin in treasury.

HIVE held $208 million of cash at June 30, up from approximately $23 million at March 31. The company also reported $11.2 million of digital currencies, $10.9 million of investments, and $18.9 million of receivables and prepaids. Total current assets were approximately $280 million, compared with current liabilities of roughly $143 million.

Daubaras said the cash increase primarily reflected financing activity, including exchangeable senior note offerings and proceeds from the company’s at-the-market equity program.

• Revenue: $79.1 million, up 73% year over year
• Gross operating margin: $24.2 million, up 53% year over year
• Adjusted EBITDA: $13.4 million
• GAAP net loss: $142.9 million
• Cash at quarter-end: $208 million

New GPU Contract Expands HPC Revenue Pipeline

President and CEO Aydin Kilic said HIVE has reached $180 million in active and contracted annualized revenue from its GPU cloud business. The figure includes approximately $35 million of active annualized revenue from about 5,500 GPUs currently online, along with contracted capacity scheduled to be deployed in the fourth quarter.

HIVE announced a new five-year GPU cloud agreement with an unnamed investment-grade global technology company. The contract calls for 2,088 NVIDIA GB300 GPUs to be deployed at Bell Canada’s Merritt, British Columbia, facility in the fourth quarter. Kilic said the agreement has a total contract value of $360 million, representing approximately $70 million of annualized revenue.

The customer is expected to make a deposit equal to about 10% of the total contract value, or roughly $35 million, according to Kilic. He said HIVE expects the GPU cluster, including associated infrastructure, to require about $185 million of capital expenditures. Management expects EBITDA margins on the deployment to be in the 75% to 80% range and said the GPUs could be paid off in about three years, based on its preliminary modeling.

The new agreement follows HIVE’s previously announced three-year, $225 million total contract value contract with AI company Cohere. Kilic said HIVE has signed approximately $600 million in GPU cloud total contract value during the year.

“We’re at critical mass now,” Kilic said. “We’re still targeting $200 million ARR for the GPU cloud business” by the end of the fiscal year.

Colocation and Data Center Development Plans

HIVE also discussed a previously announced letter of intent for an HPC colocation lease at its Boden, Sweden, site. The proposed arrangement would provide approximately $45 million in annualized revenue from 25 megawatts of IT load, with an investment-grade Swedish telecommunications company as the prospective customer.

Kilic said the company hopes to announce a definitive agreement before the end of September, though he noted that lease terms and financing details were still being refined. HIVE estimates the Boden conversion would require about $200 million of capital expenditures to reach 25 megawatts of critical IT load.

The company is also advancing projects in Canada and Paraguay. HIVE expects its Greater Toronto Area AI gigafactory site to be energized by the end of 2027, with computing operations beginning in early 2028. Management said the project is designed in three phases, each with 80 megawatts of critical IT load.

In Paraguay, HIVE is building a 200-megawatt substation at its Iguazu site that is expected to provide an additional 100 megawatts of IT load. Kilic said the substation is expected to be energized near the end of the calendar year. The company is also working on the design of a potential AI data center in the region.

Management said its global power footprint totals 860 megawatts, including 440 megawatts of active Tier 1 sites and an additional development pipeline across Canada, Sweden and Paraguay.

Swedish VAT Dispute Remains Unresolved

HIVE’s fiscal first-quarter results included an $84.7 million non-cash provision related to a long-running dispute with Swedish tax authorities over VAT treatment for ASIC imports used in its Bitcoin mining business. The matter has been disclosed by the company since 2023.

Kilic said HIVE is contesting the tax assessment and does not plan to pay it. He said the company continues to pursue legal avenues in Sweden and may consider remedies beyond the country, including the European Union.

“We have not paid it, we do not plan to pay it, and it is just something that we are going to continue to appeal,” Kilic said during the question-and-answer session.

Looking ahead, management said it intends to keep operating its Bitcoin mining business while deploying capital toward GPU cloud and colocation opportunities. Kilic said Bitcoin mining currently generates about $750,000 in daily revenue, while HPC operations generate about $97,000 daily. Once the contracted GPU deployments are online, he expects HPC to account for about 40% of total revenue, with Bitcoin mining representing the remaining 60%.

About HIVE Digital Technologies (NASDAQ:HIVE)

HIVE Digital Technologies Ltd is a publicly traded blockchain infrastructure company that specializes in the mining of digital assets such as Bitcoin and Ethereum. Using high-performance GPU and ASIC hardware, HIVE deploys proprietary mining rigs across multiple data centers to validate transactions on major blockchain networks. The company’s operations are designed to maximize hashing power while maintaining efficiency and uptime, enabling it to build and hold a portfolio of mined cryptocurrencies.

Headquartered in Vancouver, British Columbia, HIVE Digital operates data center facilities in North America and Europe, including Canada, Sweden and Iceland.

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