HIVE Delivers Record Q3 Revenue of $93.1 Million with $32.1 Million Gross Operating Margin, Up Over 6x Year-Over-Year
Executive Summary
- HIVE Digital Technologies reported record Q3 FY2026 revenue of $93.1 M, a 219% YoY increase, and Adjusted EBITDA of $5.7 M.
- Gross operating margin surged to $32.1 M (35%), more than six‑fold versus the prior year period.
- The company expanded its renewable‑powered hash rate fleet to 25 EH/s (average 22.9 EH/s) and signed a 2‑year, $30 M GPU contract to accelerate AI/HPC revenue growth.
Key Details
- Financial Highlights
- Total Revenue: $93.1 M (+219% YoY, +7% QoQ).
- Gross Operating Margin: $32.1 M (35% of revenue), up from $5.3 M a year earlier.
- Digital Currency Hashrate Revenue: $88.2 M, up 8% QoQ; direct cost $57.8 M (≈90% energy).
- Bitcoin Output: 885 BTC generated, +23% QoQ.
- HPC (BUZZ) Revenue: $4.9 M with direct costs of $2.3 M.
- G&A Expenses: $8.4 M, modest increase reflecting staff expansion.
- GAAP Net Loss: $91.3 M, driven by $57.4 M accelerated depreciation (Paraguay ASIC fleet) and revaluation adjustments.
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Adjusted EBITDA: $5.7 M.
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Infrastructure Expansion
- Completed Paraguay build‑out: 440 MW operating hydro‑powered capacity, 25 EH/s installed, average operational hashrate 22.9 EH/s, fleet efficiency 17.5 J/TH.
- Signed additional 100 MW PPA in Yguazú; purchased 10 ha of land (additional 63 ha post‑quarter).
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Targeted total energy footprint by year‑end: 540 MW (440 MW existing + 100 MW contracted).
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AI & HPC Growth Initiatives
- February 2026: 2‑year, $30 M contract for 504 Nvidia B200 GPUs, to be live Q1 2026 at Bell’s Tier‑III facility; adds ~$15 M ARR and lifts projected HPC revenue ~75% (from $20 M to $35 M).
- Goal: $140 M ARR by Q4 2026 for GPU AI Cloud (11,000 GPUs).
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BUZZ HPC plan: $225 M ARR by end‑2026/early‑2027, including conversion of New Brunswick Tier‑I data center to 50 MW IT load for Tier‑III colocation (~$85 M ARR).
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Capital Raising
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Q3 ATM sales (Nov 2025 program): issued 4,925,948 common shares, gross proceeds C$22.0 M ($15.8 M) at average price C$4.47; cash commission paid $153 k.
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Management Commentary
- Executive Chairman Frank Holmes highlighted the “dual‑engine” strategy—hashrate as cash generator and BUZZ AI Cloud as high‑margin recurring revenue—and emphasized Paraguay’s strategic role for renewable‑powered HPC.
- President & CEO Aydin Kilic noted the purchase/lease of 504 GPUs and the accelerated depreciation policy to reflect rapid ASIC lifecycle.
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CFO Darcy Daubaras stressed operating leverage despite competitive hashrate environment.
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Forward‑Looking Outlook
- Anticipates operating 540 MW energy footprint by year‑end.
- Plans additional 100 MW substation in Yguazú to come online Q3 2026.
- Targets diversified, recurring revenue growth and margin expansion through AI/HPC deployments across Canada, Sweden, and Paraguay.
Notable Quotes
“This quarter marked an inflection point for HIVE…record revenue, scaled renewable‑powered Tier‑I hashrate platform to 25 EH/s and accelerated our AI strategy.” – Frank Holmes, Executive Chairman
“Our gross operating margin increased over 6x YoY…the purchase of 504 next‑generation AI‑optimized GPUs positions us for durable high‑margin recurring revenue.” – Aydin Kilic, President & CEO