HIVE Digital Technologies Pivots to AI Infrastructure as Bitcoin Mining Revenue Soars 285%

Bitcoin Miner Hive's Stock Rises After Record Q2 Revenue, AI Deal - Decrypt

Hive's Buzz subsidiary also revealed a deal with Dell for GPUs to fuel its high-performance computing business. Publicly traded Bitcoin mining firm Hive Digital Technologies' stock climbed Monday following the announcement of record revenue last quarter, along with a deal with computer maker Dell to power the expanding AI ambitions of Hive's subsidiary. Hive reported second-quarter fiscal year results ending September 30, achieving record revenue of $87.3 million -- a vast 285% year-over-year increase, and 91% rise compared to the previous quarter. The company reported adjusted EBITDA of $31.5 million, pointing to strong results across both its Bitcoin mining and high-performance computing (HPC) segments. Hive's stock was on the rise Monday, jumping by more than 7.5% to a closing price of $3.56. Hive bucked the daily trend, which saw many major crypto stocks fall -- including Circle (CRCL) by more than 6% and Coinbase (COIN) by about 7%. Despite the daily rise, HIVE is down by more than 37% over the last month, echoing losses weathered by other prominent crypto stocks amid falling asset prices in recent weeks. Hive climbed even as Bitcoin continued falling Monday, with the price of the top crypto asset dipping below the $92,000 mark for the first time since April. Bitcoin has now erased all of its 2025 gains, and has fallen by 27% since setting a new all-time high price above $126,000 in early October. Hive's Bitcoin mining revenue reached $82.1 million, driven by an 86% quarter-over-quarter increase in average hash rate to 16.2 EH/s. HIVE mined 717 Bitcoin during the quarter, up 77% from Q1 despite increased network difficulty. Meanwhile, Hive's Buzz high-performance computing division generated record revenue of $5.2 million, up 175% year-over-year. Gross operating margins improved significantly to 49%, though GAAP net loss was $15.8 million due to accelerated depreciation of Hive's Bitcoin mining rigs. Hive said it completed a 300 MW addition of new capacity in Paraguay, and recently achieved 25 EH/s operational hash rate. The company 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 potential scaling to 35 EH/s by Q4 2026. Alongside earnings, Hive's Buzz subsidiary announced a deal with Dell Technologies to deploy 504 of the manufacturer's latest-generation GPUs through liquid-cooled servers at the Bell AI Fabric data center. The company is targeting a fleet exceeding 6,000 new GPUs by the end of 2026, paired with 5,000 GPUs that are already operational. This expansion is projected to generate approximately $140 million in annualized HPC revenue by Q4 2026 at roughly 80% gross margins. Many Bitcoin miners have embraced the high-performance computing opportunity amid the AI boom, and at least one, Bitfarms, recently said it will "wind down" its crypto business entirely. But Hive said it believes it has an advantage over miners that are just now entering the HPC space. "We know a lot about Bitcoin mining, and we also know in depth and breadth more than these other Bitcoin miners that are going into the space of AI," said Hive Executive Chairman Frank Holmes in Monday's earnings call. "We've been doing it for three years. I believe we're quite successful. It's much more complicated."

HIVE Says It Should Be A $20 Stock -- And This Billionaire Just Bought In - HIVE Digital Technologies (NASDAQ:HIVE)

HIVE Digital Technologies Ltd (NASDAQ:HIVE) dropped a bold valuation argument on its second quarter earnings call -- one that turned heads even in a market obsessed with AI multiples. Executive chairman Frank Holmes told investors that if HIVE were priced like other data-center operators, the stock wouldn't be anywhere near current levels. As he put it: "If we were valued at other data centers... HIVE would be a $20 [stock]" Track HIVE stock here. With shares trading around $3.52, that's a theoretical upside of more than 460%, and Holmes made it clear he thinks the gap reflects a misunderstanding of HIVE's shift into high-performance AI infrastructure. Read Also: Micron, Nvidia, Apple Among Q3's 'Hot List' As Hedge Funds Load Up On Tech All Over Again HIVE Wants Investors To See A Different Company Holmes spent much of the call arguing that HIVE isn't just a Bitcoin (CRYPTO: BTC) miner anymore -- it's becoming a sovereign-grade AI compute provider. From converting facilities in Canada and Sweden into Tier-3 GPU data centers to tapping Paraguay's massive hydro grid, HIVE is racing to scale. "The AI boom is for real," Holmes said, while calling the recent sentiment pullback "short-term" and driven by analysts who "do not really understand what is driving the secular market." He also highlighted HIVE's infrastructure lead: "We know what it is to build data centers... we know what it takes to build Tier 3, and we are scaling." The company's plan to expand its AI cloud fivefold over the next year is aimed at bridging the exact valuation gap Holmes is frustrated with. One Billionaire Just Bought In If management thinks HIVE is mispriced, one billionaire seems to agree. Steven Cohen -- through Point72 Asset Management -- initiated a new long position in HIVE during the July-September quarter. Cohen is famously selective in small-cap tech exposure, which makes the move notable given HIVE's size and volatility. Two other hedge fund giants also remain in the picture: Israel Englander increased his stake in HIVE this previous quarter, while Ken Griffin took some profits but still holds a sizable position. Why It Matters To Investors Holmes' $20 claim isn't just a soundbite -- it's an open challenge to the market: value HIVE like a Bitcoin miner, or value it like an AI data-center builder. If the company succeeds in repositioning itself, Cohen may have gotten in before the narrative catches up to the numbers. Read Next: Ackman, Asness Bank $1.1 Billion On Google Stock -- Buffett's Just Walking In Photo: Shutterstock HIVEHIVE Digital Technologies Ltd$3.621.69%Overview$BTCBitcoin - United States dollar$93219.281.21%Market News and Data brought to you by Benzinga APIs

While Bitcoin Slips Below $90K, HIVE Digital Posts 285% Growth: How It's Winning With AI

HIVE posts record quarterly revenue as expanded Bitcoin mining and fast-growing HPC operations fuel its dual-engine strategy and long-term digital infrastructure growth. | Credit: CCN.com * HIVE delivered its strongest quarter ever, driven by a 285% year-over-year revenue increase fueled by both Bitcoin mining and high-performance computing (HPC). * Bitcoin mining remains HIVE's largest revenue engine, generating $82.1 million in the second quarter. * The Dell financing partnership enables rapid GPU deployment with minimal upfront capex. * Significant expansion is underway, including new GPU clusters, the Toronto data center build-out, upgrades in Sweden, and 32 newly acquired acres in New Brunswick. HIVE Digital Technologies delivered one of its strongest quarters on record, reporting a 285% year-over-year revenue increase for the second quarter . This performance came from two core engines that increasingly define the company: Bitcoin mining and high-performance computing (HPC), including AI cloud services. Unlike most mining-focused public companies that rely solely on hash price and Bitcoin cycles, HIVE is deliberately building a diversified digital infrastructure business. In an interview with CCN, HIVE leadership provided a transparent and data-rich breakdown of how these two engines are scaling, how the company manages risk, and what the roadmap looks like for future growth. This article synthesizes those insights and explains what they mean for the broader digital asset and compute markets. Bitcoin Mining Still Drives Revenue -- But HPC Is Rapidly Gaining Momentum HIVE's quarterly performance was primarily powered by its expanded Bitcoin mining fleet. During the quarter, the company achieved an average operating hashrate of 16.2 EH/s and benefited from a modest improvement in the Bitcoin price. As HIVE explained to CCN: "Digital currency mining generated $82.1 million in revenue, a 101% increase sequentially as our average hashrate rose to 16.2 EH/s during the quarter and Bitcoin prices improved slightly." Mining remains the dominant revenue driver, but the BUZZ HPC unit is becoming a powerful second engine. HIVE highlighted that: "BUZZ HPC generated $5.2 million in revenue, up 175% year over year and 7.6% quarter over quarter. This growth reflects new customer contracts and ongoing utilization of our existing clusters." Together, these two divisions created the strongest quarter in company history and set expectations for continued multi-engine expansion. Inside the Dell Partnership: Low-Capex Scaling and Enterprise-Grade Infrastructure One of the most consequential strategic developments for HIVE is its partnership with Dell to deploy large-scale GPU clusters for AI and HPC workloads. What makes this partnership unusual and financially powerful is the underlying structure. HIVE said: "We have secured a single-digit financing agreement with Dell, which significantly lowers the upfront capex burden. It also includes a nominal buyout at the end of the term, meaning we will own the equipment once the lease concludes." This structure provides HIVE with a scalable, repeatable pathway for growth, without the heavy cash requirements typically required for GPU expansion. HIVE also outlined why the company expects strong long-term margins under this model: "We anticipate high utilization given the robust customer demand for GPU compute. Our cooling systems are designed for efficient operation, and our energy expenses remain competitive thanks to our existing power strategy." Importantly, Dell, and by extension, Bell, will help HIVE fill this capacity: "The partnership with Bell grants access to their extensive sales team of over 500 professionals, which we expect will drive customer engagement and support high utilization." Deployment Timeline HIVE has laid out a clear schedule: "We anticipate the first 504 GPUs will arrive before Christmas. Once on site, it takes approximately six weeks to bring them online." Another batch of roughly 500 GPUs will follow, enabling: * 1,000 GPUs in production in the first quarter of 2026. * The following 1,000 GPUs will be online in the third quarter. This enables HIVE to establish a fast-moving HPC pipeline at a time when AI compute demand is surging worldwide. Managing Risk: ASIC Depreciation, Energy Volatility, and Bitcoin Price Cycles Rapid growth introduces operational risks, and HIVE addressed them directly. 1. ASIC Depreciation To deal with hardware obsolescence risk in mining, HIVE uses an intentionally aggressive depreciation timeline: "We follow a two-year depreciation policy, although the expected ASIC hardware lifespan we observe exceeds two years, this accelerated depreciation helps us account for potential hardware obsolescence." This resulted in a $38 million non-cash depreciation charge for the quarter, an accounting impact, not an operational weakness. 2. GPUs Have Longer Lives HIVE applies different accounting to GPUs because their useful life extends much longer: "GPUs can have economic lives of five years or more. Some of our legacy units have been operational for three years and still produce about one dollar per kilowatt hour." 3. Energy and Bitcoin Price Exposure Energy volatility is managed through fixed, stable power contracts, while Bitcoin exposure is handled through conservative modeling: "We adopt a conservative planning approach and model a wide range of price scenarios. Our dual-engine model... helps us balance this volatility and provides greater stability across market cycles." This dual-engine stabilization is a recurring theme for the company. Deciding Where Capital Goes: Mining vs. HPC HIVE's capital allocation follows a disciplined return-driven model. The company evaluates investments based on: * Return on invested capital. * Payback period. * Stability and predictability of cash flows. For Mining Investments The company aims for fast, high-velocity returns: "We aim for a one- to one-and-a-half-year return on investment after electrical costs." When ASIC pricing and hash price conditions meet this threshold, mining expansion becomes attractive. But HIVE also acknowledges the natural cap to mining scalability: "Bitcoin mining has a fixed block reward, which naturally limits how much capital the industry can absorb." For HPC Investments The economics differ substantially: "Institutions seek long-term contracts and predictable cash flows, hyperscaler colocation offers exactly that." HIVE's recent purchase of 32 acres in New Brunswick reflects this structured demand. The company is already in discussions with two hyperscalers for long-term deployments. Thus, capital allocation becomes a balancing act: "The decision often comes down to balancing high velocity returns in mining with durable contracted revenue in HPC." This framework underpins the entire dual-engine strategy. How Bitcoin's Price Drop Affects HIVE's Revenue Mix Even at under $90,000, Bitcoin mining remains HIVE's primary source of revenue. But HPC is growing fast enough to reshape the company's revenue composition. "Most of our revenue still comes from mining operations. That said, our HPC business is expanding quickly." The company's HPC footprint, in Toronto, Sweden, and New Brunswick, is expanding aggressively. This creates a smoother revenue profile: * Mining revenue is highly sensitive to Bitcoin price. * HPC revenue remains stable due to long-term contracts. This is the central advantage of HIVE's strategy; it builds resilience into an industry known for volatility. Why HIVE's Dual-Engine Model Is Becoming a Blueprint for the Future Many miners are seeking ways to survive the post-halving era, where margins are compressed and block rewards are shrinking. HIVE's approach stands out because it anticipates this structural shift. The company is designing itself to thrive in both markets: * Bitcoin mining: Offers high cash-flow velocity when conditions are favorable. * HPC and AI cloud compute: Offers fixed, predictable, multi-year revenue. Rather than being at the mercy of Bitcoin's volatility, HIVE is building a hybrid model that can grow across cycles. Scaling for Both the Crypto and AI Eras HIVE's Q2 performance shows what happens when a traditional mining company evolves into a broader digital infrastructure provider. Recorded mining revenue, fast-tracked GPU deployments, disciplined capital expenditure management, and multi-year HPC ambitions all point in the same direction: HIVE is positioning itself at the intersection of two major industries. As HIVE summarized in the interview, the company's strategy is to create: "The most resilient financial profile for HIVE over time." With Bitcoin mining scaling, HPC accelerating, and enterprise partnerships expanding, the company's roadmap reflects a future built on both blockchain compute and AI compute, not one or the other.