HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE) reported record quarterly revenue, net income and adjusted EBITDA on Friday, boosted by a sharp rise in Bitcoin mining hashrate and strong demand for its high-performance computing (HPC) hosting services.
Revenue for the fiscal first quarter ended June 30 jumped to $45.6 million, up from the prior quarter, as average mining capacity rose 45% sequentially to 8.7 exahashes per second (EH/s) and Bitcoin prices edged higher.
Digital currency mining revenue climbed 44.9% to $40.8 million, with the company producing 406 Bitcoin, 34% more than in the fourth quarter.
HIVE’s BUZZ HPC business delivered a record $4.8 million in revenue, up nearly 60% from the previous quarter, driven by rising demand in AI and cloud computing markets. Gross operating margin increased to $15.8 million, or 34.7%, from $8.8 million, or 28.2%, in the prior quarter.
Net income came in at $35 million, boosted by $23.2 million in realized and unrealized gains on digital currencies, an $8.2 million unrealized gain on equity investments, and a $16.4 million gain on derivative assets. Adjusted EBITDA was $44.6 million.
“With over 15 EH/s as of August and producing about 7.5 Bitcoin per day, HIVE plays a pivotal role in reinforcing the network while generating consistent value for shareholders,” executive chairman Frank Holmes said. He added the company was on track to reach 25 EH/s by November.
CEO Aydin Kilic said the company’s expansion included a planned acquisition of a 7.2 MW Tier 3 data center in Toronto and the launch of a new NVIDIA Hopper GPU cluster in Quebec, aiming to reach $100 million in high-margin AI cloud revenue by 2026.
“HIVE continues a trajectory of strong momentum and continued growth amongst a strong rally in Bitcoin prices,” Kilic told shareholders.
HIVE ended the quarter with $71.9 million in cash and digital currencies, which CFO Darcy Daubaras said would help fund its growth strategy while maintaining “financial resilience.”