Hive Stock Soars on Record Revenue, Dell AI Deal

Hive Digital Technologies delivered exceptional financial results for its fiscal second quarter ending September 30, achieving record revenue of $87.3 million that represented a 285% surge compared to the same period last year and a 91% increase from the previous quarter. The company’s adjusted EBITDA reached $31.5 million, demonstrating strong operational performance across both its core Bitcoin mining and emerging high-performance computing segments. This standout performance came despite challenging market conditions that saw Bitcoin fall below $92,000 for the first time since April, erasing all its 2025 gains after reaching an all-time high above $126,000 in early October.

While many major crypto stocks declined on Monday—including Circle (CRCL) dropping more than 6% and Coinbase (COIN) falling approximately 7%—HIVE bucked the trend with its 7.5% gain to close at $3.56. This daily strength contrasted with the stock’s broader performance, as HIVE remains down more than 37% over the past month, reflecting the pressure facing crypto-related equities amid declining digital asset prices. The company’s ability to post strong results during market turbulence highlights its operational resilience and diversified business model.

Hive’s Bitcoin mining operations drove the majority of its revenue growth, generating $82.1 million during the quarter. This performance was fueled by an 86% quarter-over-quarter increase in average hash rate to 16.2 EH/s, with the company mining 717 Bitcoin—a 77% increase from Q1 despite facing higher network difficulty. The company’s global expansion continued with the completion of a 300 MW capacity addition in Paraguay, bringing Hive’s total hydro-powered data center footprint to 540 MW worldwide.

Management highlighted the company’s secured path to 400 MW in Paraguay through power purchase agreements and projected potential scaling to 35 EH/s by Q4 2026. While gross operating margins improved significantly to 49%, the company reported a GAAP net loss of $15.8 million due to accelerated depreciation of its Bitcoin mining rigs. This strategic investment in newer, more efficient equipment positions Hive for continued growth as mining difficulty increases.

Alongside its earnings announcement, Hive’s Buzz subsidiary revealed a strategic partnership with Dell Technologies to deploy 504 of the manufacturer’s latest-generation GPUs through liquid-cooled servers at the Bell AI Fabric data center. This deal represents a significant expansion of Hive’s high-performance computing business, which generated record revenue of $5.2 million during the quarter—a 175% year-over-year increase. The company is targeting a fleet of more than 6,000 new GPUs by the end of 2026, complementing the 5,000 GPUs already operational.

This expansion is projected to generate approximately $140 million in annualized HPC revenue by Q4 2026 at roughly 80% gross margins, representing a substantial diversification from Hive’s core Bitcoin mining operations. Executive Chairman Frank Holmes emphasized the company’s competitive advantage during Monday’s earnings call, stating, ‘We know a lot about Bitcoin mining, and we also know in depth and breadth more than these other Bitcoin miners that are going into the space of AI. We’ve been doing it for three years. I believe we’re quite successful. It’s much more complicated.’

Hive’s early mover advantage in the HPC space distinguishes it from competitors like Bitfarms, which recently announced it would ‘wind down’ its crypto business entirely. The Dell partnership positions Hive to capitalize on the ongoing AI boom while maintaining its Bitcoin mining operations, creating a balanced business model that leverages the company’s expertise in both high-performance computing and cryptocurrency mining.