Summary

  • HIVE said Bitcoin mining output rose 49%, but mining revenue and profitability weakened as Bitcoin prices fell and power costs increased.
  • The company posted a GAAP net loss of $78.7 million and a loss per share of $0.29 for the quarter, and said its share price fell 1.7% in after-hours trading after the earnings release.
  • HIVE said it is expanding its AI computing (HPC) business in response to weaker mining profitability, with plans to invest up to $493 million over the next 36 months, while continuing to invest in Bitcoin mining infrastructure.

Forecast Trend Report by Period

Bitcoin miner HIVE Digital Technologies said weaker profitability hurt results despite higher output, as lower Bitcoin prices and rising power costs cut into mining revenue.

Cointelegraph reported on November 9 that HIVE mined 1,070 Bitcoin in its fiscal second quarter ended in late September. That was up 49% from 718 a year earlier. Mining revenue, however, fell 7.4% to $76 million.

Revenue declined even as output rose because Bitcoin prices fell. The average Bitcoin price during the quarter was $71,003, down sharply from $114,382 a year earlier. Costs also increased as the global expansion of mining capacity pushed power expenses up to $45.6 million from $37.9 million.

HIVE also booked a $31.2 million non-cash impairment charge on equipment value to reflect weaker mining profitability. Total quarterly revenue fell 2.7% from a year earlier to $84.9 million, while net loss under generally accepted accounting principles, or GAAP, was $78.7 million. Loss per share was $0.29.

Still, the results topped market expectations. Quarterly revenue exceeded the consensus estimate of $79.4 million, and adjusted loss per share came in at $0.15 versus expectations for $0.16. HIVE shares fell 1.7% to $1.78 in after-hours trading following the earnings release.

HIVE is expanding its artificial intelligence computing business to offset weaker economics in Bitcoin mining. High-performance computing, or HPC, hosting revenue rose 71% from a year earlier to $8.8 million this quarter. That accounted for 10.4% of total revenue.

The company plans to invest as much as $493 million over the next 36 months to expand the HPC business. The funds will go toward securing data center sites, building facilities and buying graphics processing units, or GPUs. HIVE has spent $145.3 million so far. It also plans to spend about $35 million to convert its Toronto facility in Canada into a high-performance data center.

It is also continuing to invest in Bitcoin mining infrastructure. HIVE plans to expand substation capacity at its mining facility in Paraguay's Iguazu region by 100 megawatts this year. Meanwhile, U.S. miner Core Scientific has said it plans to exit mining entirely by year-end, underscoring a broader industry shift toward AI data center businesses.

Suehyeon Lee