HIVE Digital Technologies NASDAQ: HIVE executives emphasized record quarterly revenue growth and continued expansion in both Bitcoin mining and high-performance computing (HPC) during the company’s webcast covering results for the quarter ended December 31, 2025. Management highlighted a scaled-up mining footprint, growing recurring HPC revenue, and a balance sheet approach it repeatedly described as conservative amid crypto market volatility.
Record revenue, but net loss driven largely by non-cash items
CEO Aydin Kilic said the quarter was a “record quarter” for HIVE, with $93 million in total revenue and $32 million in gross operating margin. The company reported a $91 million net loss, which Kilic attributed “mostly” to non-cash charges, including $57 million in depreciation following substantial new hardware brought online in Paraguay and a $31 million non-cash charge related to changes in the fair value of derivatives that he said was “mostly driven by changes in Bitcoin price.”
On a non-GAAP basis, Kilic reported adjusted EBITDA of $5.7 million, and said HIVE ended the quarter with 481 Bitcoin on its treasury.
CFO Darcy (introduced on the call as the “longest-standing CFO in crypto mining”) provided additional detail, stating that $93.1 million of revenue was generated in fiscal Q3 2026, with approximately 95% coming from hash rate services on the Bitcoin side and nearly $5 million from HPC operations. He also noted adjusted EBITDA of roughly $6 million.
Darcy said HIVE ended the quarter with approximately $14 million in cash and $14 million in digital currencies, with current assets of about $91 million and current liabilities of about $52 million, which he said supported a “healthy working capital position.”
Mining scale-up and production metrics
Kilic said HIVE reached 25 exahash of installed capacity, and operated an average of 22.8 exahash during the quarter as the company ramped. He cited 879 Bitcoin mined in the quarter and described Paraguay operations as delivering “nearly 100% uptime,” while noting temporary curtailments during cold weather at Canadian sites.
Executive Chairman Frank Holmes framed the company’s scale-up as moving from 6 exahash to 25 exahash in 2025, and said HIVE represented about 2% of the global network. Holmes and Kilic also discussed fleet efficiency improvements, describing reductions in joules per terahash and the importance of newer ASIC generations in managing Bitcoin’s halving cycles.
HPC growth: contracted Blackwell GPUs and higher-than-forecast pricing
Management placed significant focus on the company’s HPC strategy, including its Buzz cloud offering. Kilic said Buzz generated about $5 million of revenue in the quarter, tracking to a $20 million annual run rate (ARR), and that HIVE was targeting 11,000 GPUs on the Buzz cloud by the end of the year, up from 5,000 GPUs, with 6,000 GPUs planned to be added in 2026.
Kilic also said HIVE signed a two-year contract for its incoming NVIDIA Blackwell B200 GPUs destined for a Manitoba site with Bell, describing the deal as driving a 70% increase in HPC ARR. He said the company expected HPC ARR to rise from $20 million to $35 million by the end of the quarter ending March 31, 2026, with the GPUs expected to go live in March. Kilic said a deposit was expected “this week” and described the arrangement as “cashless” for HIVE due to financing and contract structure.
In discussing pricing and demand, Kilic said the realized value of the GPU contract was 30% above forecasted prices. He explained that, whereas prior projections assumed about $20 million of ARR per 1,000 GPUs, the company realized $15 million of ARR for 500 GPUs. He also presented what he characterized as a “blue sky” scenario in which similar economics could potentially lift GPU cloud ARR to about $200 million, though he said the company would stick with its baseline projections.
On the business model, Kilic highlighted lease-to-own GPU financing with “very attractive single digit” terms, describing it as a 36-month structure with a $1 buyout and “no capex up front for the GPUs.”
Treasury strategy and the “dynamic HODL” value realization
Kilic also discussed what he called HIVE’s “dynamic HODL strategy,” describing how the company pledged approximately 1,400 Bitcoin at $87,000 as part of an ASIC purchase. He said the structure included an option to buy back at the pledged price and that HIVE exercised the option when Bitcoin rallied, redeeming at $93,000, $110,000, and $123,000. Kilic said this generated approximately $14 million in realized value.
According to Kilic, that value was translated into approximately 3,800 Bitmain S21 XP air-cooled miners, replacing older Buzz miners and improving fleet efficiency from 17.5 to 16.7 joules per terahash. He said the result was effectively lowering the company’s global cost of mining “by 5%” during a weaker hash price environment.
He added that HIVE still had 540 Bitcoin associated with the $87,000 strike price structure and emphasized there was “no cash call” or obligation in the current environment, describing it as downside protection with potential upside if Bitcoin rises above that level.
Capital allocation, New Brunswick conversion, and analyst Q&A takeaways
In the Q&A, management fielded questions on return targets, colocation strategy, and capital spending. Kilic said GPU returns typically target about a 2.5-year ROI after direct operating costs, and discussed his view that GPUs can retain significant residual value after several years, based on HIVE’s experience operating and selling prior generations of NVIDIA cards.
Asked about New Brunswick, Kilic said HIVE had acquired 32 acres adjacent to the site and that “engineering design has been advancing.” He said HIVE had been in discussions with interested groups but declined to provide additional specifics. He referenced a market rate of about $130 per kW per month in New Brunswick as a “secondary” market, which he said informed an estimate of roughly $80 million of ARR based on about 53 MW of IT load.
On near-term milestones for New Brunswick, Kilic said the company was in “design and permitting,” with the next step being ordering long-lead items, and said the company would provide updates as milestones are achieved.
Management also addressed the mismatch between two-year customer contracts and three-year OEM financing, saying longer financing can lower payments and improve cash flow, while the company retains optionality to re-rent or sell the GPUs at the end of contract terms.
Separately, Holmes’ prepared remarks offered a broad macro view that focused on crypto volatility, market sentiment, and regulatory and geopolitical themes. He spent significant time discussing a “10/10” crypto market disruption that he attributed to a “faulty algo” at Binance and argued that broader trust and regulatory clarity could influence market sentiment. While those remarks were largely macro in nature, management tied the discussion back to HIVE’s preference for measured expansion and a conservative balance sheet, arguing the company has not relied on heavy leverage to pursue growth initiatives.
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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