HIVE Digital revenue falls as bitcoin mining costs rise despite higher output

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HIVE Digital revenue dips on costs

Highlights

HIVE Digital's quarterly Bitcoin production rises to 1,070 from 718 but mining revenue falls 7.4% to $76 million due to lower average Bitcoin prices.
Electricity costs increase to $45.6 million and a $31.2 million noncash mining equipment write-down reflects compressed margins amid depressed crypto mining sector economics.
HIVE posts fiscal Q2 revenue of $84.9 million (down 2.7% YoY, but above consensus) and a GAAP net loss of $78.7 million, with shares falling 1.7% to $1.78 after-hours.

Quarterly results and expansion plans

As reported by Cointelegraph, citing HIVE Digital Technologies in its latest regulatory filing, the company produces 1,070 Bitcoin in the three months ended Sept. 30, 2026, up from 718 a year earlier. Mining revenue, however, falls 7.4% to $76 million as the average Bitcoin price declines to $71,003 from $114,382 in the prior-year period.

Electricity costs rise to $45.6 million from $37.9 million as HIVE expands its global mining capacity. The company also records a $31.2 million noncash write-down on mining equipment, citing depressed mining economics.

At the same time, HIVE continues to build out its high-performance computing business. HPC hosting revenue rises 71% to $8.8 million and accounts for 10.4% of quarterly revenue.

HIVE says it anticipates spending up to $493 million over 36 months to expand HPC operations through land purchases, data center construction and GPU acquisitions. As of the filing, the company reports $145.3 million of spending toward that plan, and it also plans to invest about $35 million to convert its Toronto facility into a Tier-III data center.

Sector pressure and market reaction

HIVE's results add to broader signs of strain across the crypto mining sector, where weaker token prices and rising operating costs are compressing margins. The company continues to invest in Bitcoin production as well, targeting a 100-megawatt substation expansion at its Yguazú site in Paraguay during 2026, while also pushing further into AI-linked infrastructure.

Other miners are taking different paths. American Bitcoin last week reports weaker mining margins despite a treasury-driven quarterly profit, while Core Scientific says it plans to leave mining entirely by year-end.

HIVE's Nasdaq-listed shares fall 1.7% to $1.78 in after-hours trading Monday, according to Google Finance, after closing the regular session up 1.7% at $1.81. The company reports fiscal second-quarter revenue of $84.9 million, down 2.7% from a year earlier but above the $79.4 million consensus estimate listed by MarketBeat. Its GAAP net loss stands at $78.7 million, or 29 cents a share, while MarketBeat says its adjusted analyst comparison measure shows a 15-cent loss per share, ahead of expectations for a 16-cent loss.

Earlier, we reported that only about 35% of planned U.S. AI data center projects were considered realistic by Bernstein analysts.

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