HIVE Digital Achieves Record $45.6 Million Revenue as Bitcoin Mining and AI Services Surge

Bitcoin miner HIVE Digital Technologies reported its strongest financial quarter ever, generating $45.6 million in revenue during the first quarter of fiscal 2026. The company’s success came from both traditional Bitcoin mining operations and its growing artificial intelligence computing business.

The Vancouver-based company announced these record results on August 15, 2025, showing remarkable growth across all business segments. HIVE’s performance demonstrates how Bitcoin miners are successfully expanding beyond cryptocurrency to capture opportunities in the booming AI market.

Bitcoin Mining Operations Drive Core Growth

HIVE’s Bitcoin mining business generated $40.8 million in revenue during the quarter, representing a 44.9% increase from the previous three months. This growth came primarily from expanding the company’s mining capacity, known as hashrate, from 5.9 exahashes per second (EH/s) to 8.7 EH/s.

The company mined 406 Bitcoin during the quarter, a 34% increase compared to the previous period. This occurred despite Bitcoin network difficulty rising by 10.2%, which typically makes mining more challenging and expensive for all operators.

HIVE now operates over 15 EH/s of mining capacity as of August 2025, producing approximately 7.5 Bitcoin daily. At current market conditions, this represents an annualized revenue run rate of roughly $315 million from Bitcoin mining alone.

The company plans aggressive expansion, targeting 25 EH/s by Thanksgiving 2025. Achieving this goal would place HIVE among the world’s largest publicly-traded Bitcoin miners.

AI Computing Business Shows Explosive Growth

HIVE’s high-performance computing (HPC) division, operating under the Buzz HPC brand, generated record revenue of $4.8 million during the quarter. This represents a 59.8% increase from the previous quarter, highlighting strong demand for AI computing services.

The company operates thousands of NVIDIA graphics processing units (GPUs) across data centers in Canada and Sweden. These same chips used for cryptocurrency mining prove valuable for training AI models and providing cloud computing services.

HIVE executives Frank Holmes and Aydin Kilic told investors they aim for the HPC segment to reach a $100 million annual run rate by 2026. This ambitious target reflects the company’s strategy to diversify revenue streams beyond Bitcoin mining.

During the quarter, HIVE advanced its AI infrastructure plans by agreeing to acquire a 7.2 MW data center in Toronto. This facility will support 5,000 next-generation GPUs for Canadian AI computing services.

Financial Performance and Operational Efficiency

HIVE reported adjusted EBITDA of $44.6 million and GAAP net income of $35.0 million for the quarter. The company achieved gross operating margins of $15.8 million, representing 34.7% of total revenue.

Source: @HIVEDigitaltech

Direct costs totaled $29.8 million, with 90% of mining costs attributed to electricity consumption. HIVE’s focus on renewable energy sources, particularly hydroelectric power, helps control these operational expenses.

The company ended the quarter with $71.9 million in cash and digital currencies, providing financial flexibility for continued expansion. CFO Darcy Daubaras emphasized this strong balance sheet positions HIVE well for executing its growth strategy while maintaining financial stability.

Geographic Expansion and Infrastructure Development

HIVE operates mining facilities across multiple countries, including Canada, Sweden, and Paraguay. This geographic diversification spreads regulatory and operational risks while accessing different sources of low-cost renewable energy.

The company’s most significant expansion occurs in Paraguay, where HIVE has access to 300 megawatts of hydroelectric power. The Paraguay operations utilize advanced Bitmain S21+ Hydro ASIC miners, improving overall fleet efficiency from approximately 20 J/TH to 18.5 J/TH as capacity increases.

This efficiency improvement directly reduces Bitcoin production costs, as a 10% efficiency gain translates to roughly 10% lower electricity expenses. HIVE currently reports mining margins of approximately 55%, with projections reaching 60% as operations scale.

Industry Context and Competition

HIVE’s strong performance comes as the broader Bitcoin mining industry faces challenges from increased network difficulty and competition. Many miners are exploring AI and HPC services as additional revenue sources.

The company was among the first Bitcoin miners to repurpose existing infrastructure for artificial intelligence applications. This early move into AI data centers appears prescient as demand for computing power continues growing rapidly.

Other major miners like CleanSpark and Marathon Digital also reported strong quarterly results, benefiting from higher Bitcoin prices and operational improvements. However, HIVE’s dual-business model provides additional revenue diversification compared to pure-play mining operations.

The Road Ahead

HIVE’s management expressed confidence in achieving their ambitious growth targets. Executive Chairman Frank Holmes highlighted the company’s commitment to supporting Bitcoin network security while generating consistent shareholder value.

Despite strong operational performance, HIVE shares traded around $2.20 following the earnings announcement, down 23% year-to-date. This disconnect between operational success and stock performance reflects broader market conditions affecting cryptocurrency-related companies.