HIVE Posts $78.7M Loss as AI Cloud Revenue Climbs 71%

HIVE Digital Technologies reported a $78.7 million net loss for the quarter ended Sept. 30, even as revenue from its BUZZ AI cloud unit rose 70.7% to $8.8 million. The loss widened from $15.8 million a year earlier but narrowed from $142.9 million in the June quarter, when HIVE booked roughly $85 million in provisions tied to a Swedish value-added tax dispute. The Block first reported the figures on Tuesday.

Total revenue for the fiscal second quarter of 2027 fell 2.7% to $84.9 million. Mining revenue dropped to $76.0 million from $82.1 million a year earlier. The decline came despite higher production: HIVE earned 1,070 bitcoin against 718 in the prior-year quarter. The company's 10-Q attributes the shortfall to bitcoin's average price, which fell to $71,003 from $114,382.

Results included $54.9 million in depreciation and a $31.2 million non-cash impairment of mining equipment. Adjusted EBITDA came in at $24.8 million. The company held $139.0 million in cash and $22.6 million in bitcoin at quarter-end, and raised $43.2 million gross by selling about 13.7 million shares under its at-the-market program.

How fast is the GPU business ramping?

HIVE said it has roughly $40 million of live GPU cloud annual run-rate revenue and about $185 million contracted, a figure that includes capacity not yet in service. The backlog rests on two large deals: a three-year agreement with Bell AI Fabric supporting Cohere for 2,304 Nvidia GB200 GPUs, and a roughly $350 million, five-year contract with an unnamed investment-grade customer for 2,016 GB300 NVL72 GPUs.

CEO Aydin Kilic said HIVE expects the Cohere and Bell GPUs to ship before year-end. A $129 million financing will fund the deployments, he said. Kilic was direct about market conditions: "We recognize the macro headwinds in the AI infrastructure sector, and our primary objective is to protect our balance sheet and to maintain our cashflow and profitability."

HIVE targets about $200 million of GPU cloud run-rate revenue by the fourth calendar quarter of 2026 and about $700 million of total HPC run-rate revenue by the end of 2028. The company says these goals are not contracted and depend on financing and construction.

What about power capacity?

HIVE operates about 440 megawatts of power capacity and expects roughly 540 megawatts once a 100-megawatt supply agreement at Yguazú, Paraguay, comes online in the fourth calendar quarter. The additional capacity has not yet been assigned to either mining or AI workloads.

The company has also signed a letter of intent for colocation at its 32-megawatt Big Boden site in Sweden, worth about $45 million a year if finalized.

Quarterly trend in HPC revenue

HIVE's high-performance computing revenue has climbed steadily across three quarters:

• Sep 2025: $5.2 million
• Jun 2026: $7.1 million
• Sep 2026: $8.8 million

Mining revenue over the same span moved from $82.1 million to $72.1 million and back up to $76.0 million. Net losses per share were $0.07, $0.54 and $0.29 respectively.

The company now faces a race between falling bitcoin economics and a contracted but largely undeployed GPU fleet, with the $185 million contracted run-rate and the Paraguay power expansion set to determine whether the AI pivot outpaces the mining decline.