HIVE Digital (HIVE) Stock Drops Despite Best Quarter in Company History

TLDR

• HIVE Digital posted record Q3 revenue of $93.1 million, up 219% year-over-year, despite a 10% drop in Bitcoin prices.
• Gross operating margin surged more than sixfold to $32.1 million, roughly 35% of total revenue.
• HIVE signed a two-year, $30 million contract with Bell to deploy 504 Nvidia B200 GPUs, boosting HPC annual revenue run rate by ~75%.
• The $91 million net loss was driven mostly by non-cash charges, including $57 million in depreciation.
• H.C. Wainwright kept its Buy rating with a $7 price target, saying HIVE trades at a 50% discount to mining peers.

HIVE Digital Technologies had its best quarter on record, and Bitcoin barely deserves the credit.

For the three months ended December 31, 2025, HIVE reported $93.1 million in revenue, a 219% jump from the year prior. Gross operating margin came in at $32.1 million, more than six times higher year-over-year.

The results landed during a rough stretch for crypto. Bitcoin fell roughly 10% during the quarter while network difficulty climbed 15%, conditions that squeezed margins across the mining sector following the 2024 halving.

HIVE Digital Technologies Ltd., HIVE

HIVE mined 879 Bitcoin during the period and grew its installed hashrate to 25 exahashes per second, up from just 6 EH/s at the start of 2025. The company now accounts for roughly 2% of the global Bitcoin network.

The headline is impressive. The fine print is messier. HIVE posted a $91 million net loss for the quarter, though CEO Aydin Kilic attributed most of it to non-cash items: $57 million in depreciation from new hardware in Paraguay and a $31 million fair-value derivative charge tied to Bitcoin price moves. Adjusted EBITDA came in at approximately $5.7 to $6 million.

The company ended the quarter with 481 Bitcoin in treasury, around $14 million in cash, and $14 million in digital currencies.

The AI Bet Is Starting to Pay Off

HIVE’s high-performance computing arm, branded Buzz, generated about $5 million in revenue this quarter, tracking to a $20 million annual run rate.

In February, HIVE signed a two-year, $30 million contract with Bell to deploy 504 Nvidia Blackwell B200 GPUs at a Manitoba facility. The deal is expected to push HPC annual recurring revenue to $35 million by end of Q1 2026. Kilic said the pricing came in 30% above initial forecasts.

HIVE is targeting 11,000 GPUs on Buzz by year-end, up from 5,000 currently. The company’s longer-term goal is $140 million in annual AI cloud revenue by Q4 2026 and $225 million in total HPC revenue.

Wall Street Takes Notice

H.C. Wainwright reiterated its Buy rating after the results, keeping its $7 price target in place. The firm said HIVE trades at a 50% discount to Bitcoin mining peers that haven’t announced HPC deals, and argued the market is giving the GPU cloud business little to no credit.

HIVE stock was down more than 2% on Tuesday following the report.

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