HIVE Digital Technologies Ltd. (NASDAQ: HIVE) (TSXV: HIVE) on Tuesday reported record quarterly revenue for its fiscal third quarter ended December 31, 2025, as the company aggressively scales its “dual-engine” strategy of Bitcoin mining and High-Performance Computing (HPC) for Artificial Intelligence.
The Vancouver-based digital infrastructure firm saw its revenue surge to $93.1 million, representing a 219% increase compared to the $29.2 million reported in the same period last year. The results underscore a period of rapid infrastructure deployment, particularly in its South American operations.
Financial and Operational Highlights
- Revenue Growth: Total revenue of $93.1 million was driven primarily by digital currency mining, which contributed $88.2 million to the top line. This reflects a significant increase in the company’s average hashrate, which reached 25 exahash per second (EH/s) by the end of the calendar year.
- Operating Margins: Gross operating margin expanded more than sixfold to $32.1 million (34.5% of revenue), up from $5.3 million a year ago. Management credited this to the deployment of more efficient, next-generation ASIC miners and lower energy costs at its new hydroelectric facilities.
- Net Performance: Despite the top-line record, HIVE reported a GAAP net loss of $91.3 million. The loss was largely attributed to $57.4 million in accelerated depreciation of older hardware and a $31.6 million non-cash loss related to the revaluation of derivative assets.
- EBITDA: On a cash-flow basis, adjusted EBITDA stood at $5.7 million, highlighting the company’s ability to remain cash-flow positive despite a volatile Bitcoin price environment and rising network difficulty.
Strategic Pivot to AI Infrastructure
A central pillar of HIVE’s growth is its BUZZ HPC platform, which leverages the company’s data center expertise to serve the burgeoning AI market. Revenue from this segment reached $4.9 million for the quarter, but forward-looking indicators suggest a steep trajectory.
The company recently secured $30 million in fixed-term AI cloud contracts over two years. The first phase of this expansion—featuring 504 liquid-cooled Nvidia GPUs—is expected to be operational by March 2026, adding an estimated $15 million in annual recurring revenue (ARR).
Infrastructure and Global Footprint
HIVE continues to capitalize on its first-mover advantage in Paraguay. The company successfully commissioned the final phase of its 300 MW Valenzuela campus and has already broken ground on an additional 100 MW expansion at Yguazú, targeted for completion in late 2026. Once fully commissioned, HIVE’s global renewable energy footprint will reach 540 MW across Canada, Sweden, and Paraguay.
Management Commentary
“This quarter marks the strongest dual-engine growth in HIVE’s history,” said Executive Chairman Frank Holmes. “We have scaled our renewable-powered platform to 25 EH/s while simultaneously locking in long-term AI contracts that provide a durable, high-margin revenue stream uncorrelated to Bitcoin price swings.”
CEO Aydin Kilic added that the company is targeting an annualized revenue run rate for the HPC segment of $140 million by the end of 2026, as the company transitions into a Tier-III data center operator.