HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE) posted strong financial and operational results for the fiscal third quarter, with revenue reaching $29.2 million.
This included $26.7 million from digital currency mining and $2.5 million from high-performance computing (HPC) services, with a gross operating margin of $6.1 million or 21%.
The company achieved an adjusted EBITDA of $17.3 million and net income of $1.3 million or $0.01 per share, a significant improvement from a $7 million loss ($0.08 per share) in the year-ago quarter, attributed to gains on investments and equipment sales.
During Q3, HIVE mined 322 Bitcoin (BTC), bringing its total holdings to 2,805 BTC, valued at $260.8 million using a BTC price of $93,400 at quarter-end.
Frank Holmes, HIVE executive chairman, highlighted that this represented a 263% year-over-year increase from $72 million.
“We achieved this while keeping shareholder dilution among the lowest in the industry, with our total shares outstanding increasing only 51% over the same period to fund our growth,” Holmes said.
“This performance demonstrates the result of our leading operational efficiency and disciplined capital allocation strategy of focusing on maximizing cash return on invested capital, which has consistently been one of the highest in the industry."
It increased its BTC mining hashrate by 7.1% to 6.0 EH/s by December 2024, upgrading its fleet with advanced Avalon miners from Canaan.
The company is also expanding in Paraguay, with a 100 MW facility expected to go online by June 2025, adding 6.5 EH/s in mining capacity.
New site
HIVE also signed a letter of intent to acquire the Yguazú site from Bitfarms, which would provide an additional 200 MW, developed in two phases.
Phase 1, nearly complete, will add 6 EH/s by Q2 2025, while Phase 2, expected by August 2025, will contribute another 6.5 EH/s. Upon completion, HIVE’s total global capacity will reach 450 MW.
To fund these initiatives, HIVE raised $87.5 million through an at-the-market (ATM) equity program, issuing over 21 million shares at an average price of C$5.74.
HIVE CEO Aydin Kilic said the company aimed to position HIVE as one of the biggest BTC miners in the world in calendar 2025.
“Our 300 MW expansion in Paraguay has an objective to drive a 4x increase in our hashrate from 6 EH/s to 25 EH/s by September, 2025,” Kilic said.
“In addition, we are excited to continue to grow our high-performance computing revenue with our new NVIDIA H100 and H200 clusters that are projected to deliver $20 million of high-margin run-rate revenue for cloud computing and AI model training services by calendar Q2 2025 based on current growth and performance trends."