HIVE Digital Posts $84.9 Million Quarter as AI Revenue Jumps 71%

HIVE Digital Technologies reported fiscal second-quarter 2027 revenue of $84.9 million, down 2.7% year over year, as a 70.7% surge in AI computing revenue partially offset weaker Bitcoin mining income.

The sequential picture was stronger. Revenue rose 7.3% from the first quarter, and adjusted EBITDA nearly doubled. The loss on paper stayed large. Here is how the pieces fit.

What drove the quarter?

Digital currency mining still supplies the bulk of the business. Mining revenue totaled $76 million, up 5.5% sequentially but down 7.4% from the prior-year quarter. HIVE received 1,070 Bitcoin in mining rewards, compared with 1,004 in the preceding quarter.

The growth engine sits elsewhere. Revenue from HIVE's BUZZ high-performance computing business increased 70.7% year over year and 25.3% sequentially to $8.8 million. The company attributed the growth to the deployment of an NVIDIA B200 GPU cluster in Manitoba and continued demand for AI computing capacity.

Margins moved in the right direction. Gross operating margin improved to $30.2 million, or 35.6% of revenue, from $24.2 million and 30.6% in the prior quarter. Adjusted EBITDA increased 85% from the first quarter to $24.8 million, a 29.2% margin.

Why the $78.7 million net loss?

HIVE recorded a GAAP net loss of $78.7 million. The result included $54.9 million in depreciation, a $31.2 million noncash impairment of mining equipment, $8.6 million in stock compensation, and a $7.3 million derivative valuation loss.

Put simply: cash-generating operations improved while accounting charges, mostly tied to aging mining hardware, pushed the bottom line into the red. The balance sheet held $139 million in cash and cash equivalents at the end of September, plus $22.6 million in digital currencies.

How big is the AI business becoming?

HIVE reported approximately $40 million of live GPU cloud annualized run-rate revenue. Contracted annualized revenue, including capacity not yet placed into service, stood at $185 million. The company is targeting approximately $200 million of GPU cloud annualized revenue by the fourth quarter of calendar 2026.

That target matters for the shape of the company. HIVE operates roughly 440 megawatts of global power capacity and expects to reach approximately 540 megawatts after energizing an additional 100 megawatts in Paraguay. Its longer-term objective is a more balanced infrastructure business spanning Bitcoin mining and contracted AI computing.

What did the chairman say?

Frank Holmes, Co-Founder and Executive Chairman of HIVE Digital Technologies, framed the quarter as proof the dual model works: "Our digital infrastructure platform combines established Bitcoin mining operations with a growing AI computing business. Revenue was broadly stable year over year despite a 27% decline in Bitcoin prices, while HPC revenue increased more than 70%."

The comparison cuts both ways. A 27% Bitcoin price decline compressed mining revenue that once carried the company alone. The BUZZ unit, still barely a tenth of total revenue at $8.8 million, absorbed part of the shock and grew fast enough to keep the top line nearly flat.

What comes next?

The numbers to watch are megawatts and contracted run-rate. If HIVE energizes the 100 megawatts in Paraguay and converts its $185 million contracted pipeline toward the $200 million target by Q4 of calendar 2026, the AI segment would approach the size of today's entire mining operation — and the company would depend far less on the Bitcoin price to defend its margins.