HIVE Digital Shares Record 219% Revenue Surge as Dual-Engine AI-Mining Strategy Takes Flight
In the third fiscal quarter of 2026, HIVE Digital Technologies Ltd. (CVE: HIVE) reported $93.1 million in revenue, its highest quarterly
Quick overview
- HIVE Digital Technologies reported a record $93.1 million in revenue for Q3 2026, a 219% increase year-over-year.
- The company's gross operating margin rose to $32.1 million, despite challenges from lower Bitcoin prices and increased mining difficulty.
- HIVE's dual-engine strategy combines AI and high-performance computing with Bitcoin mining to create steady revenue streams.
- Despite a reported net loss of $91 million due to non-cash charges, HIVE's management emphasized strong cash generation and operational resilience.
In the third fiscal quarter of 2026, HIVE Digital Technologies Ltd. (CVE: HIVE) reported $93.1 million in revenue, its highest quarterly performance to date. This was a 219% increase over the same period the previous year, as the company’s expanding artificial intelligence and high-performance computing business helped offset the impact of lower Bitcoin prices and mining pressures following the halving of the cryptocurrency.
The gross operating margin increased more than sixfold year over year to $32.1 million, or almost 35% of total revenue, according to the figures, which covered the quarter that concluded on December 31, 2025. The numbers came as network mining difficulty increased by 15% and Bitcoin BTC/USD values dropped by about 10% during the quarter, which has reduced industry profits since the 2024 block reward halving.
Despite these challenges, HIVE increased its installed hashrate to 25 exahashes per second (EH/s), or around 2% of the global network, and mined 885 Bitcoin at that time, a 23% increase from the previous quarter.
HIVE Digital’s “Dual-Engine” Built for Turbulence
The management has presented HIVE’s approach as a “dual-engine” concept, whereby a rising AI and HPC segment creates steady, recurring revenue while Bitcoin mining provides short-term cash flow. It seems like that thesis is gaining momentum.
The business inked a $30 million, two-year deal in February to install 504 Nvidia B200 GPUs for enterprise AI cloud services. It is anticipated that the transaction will increase HIVE’s HPC annualized revenue run rate by around 75% and generate about $15 million in recurring revenue annually. Notably, officials hinted at the “blue sky” potential of $285 million in total annualized revenue when they stated that the contract was won at pricing 30% higher than initial projections.
As the firm grows its GPU cloud from about 5,000 to 11,000 units, HIVE hopes to reach $225 million in total HPC revenue by the fourth quarter of 2026, with an annual recurring AI cloud revenue target of $140 million.
HIVE’s Net Loss Masked by Non-Cash Charges
HIVE reported a $91 million net loss for the quarter in spite of the revenue milestone. The majority of the amount was ascribed by management to non-cash items, such as a $31 million fair value adjustment on derivatives and $57 million in depreciation related to new hardware installations in Paraguay. The company’s business direction and underlying cash generation are not reflected in the loss, executives emphasized.
Operational resilience has also been influenced by geographic diversification. During Canadian winter weather events, Paraguay’s infrastructure remained almost entirely operational, and in September 2026, a new 100 megawatt power purchase deal is expected to be put online.
Navigating Industry Headwinds
HIVE’s shift to AI is not unique. As analysts increasingly contend that artificial intelligence, not cryptocurrencies, will fuel the next infrastructure supercycle, competitors like IREN and TeraWulf have also shifted targeting AI workloads. Bottlenecks in the supply chain continue to be a problem for the industry as a whole, especially for transformers, substations, and specialized server racks.
Even though the company’s operating story is still developing, HIVE shares dropped more than 5% on February 17 to close at $2.85 CAD, reflecting broader market concern.
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