HIVE Digital Technologies reports US$84.9M revenue and US$139M cash
Contracted GPU-cloud run rate includes undeployed capacity, while HIVE's year-end expansion target remains conditional on financing.
Julian Okafor
A US$139 million cash balance backs an AI-cloud expansion whose contracted annual run rate is more than four times its live business. HIVE Digital Technologies Ltd. TSEHIVE NASDAQHIVE, a bitcoin miner and AI-computing operator, reported on Tuesday that second-quarter revenue fell 2.7 per cent to US$84.9 million.
For the fiscal quarter ended Sept. 30, HIVE reported a US$78.7 million net loss and finished with US$139 million in cash and equivalents. Revenue exceeded the US$80 million average estimate from five analysts surveyed by Zacks Investment Research, according to The Associated Press's Nov. 9 earnings summary.
The BUZZ high-performance computing business generated US$8.8 million of quarterly revenue, up 70.7 per cent from a year earlier. HIVE reported about US$40 million of live GPU-cloud annualized run rate and US$185 million contracted, including capacity awaiting deployment. Its fourth-quarter calendar 2026 target of US$200 million remains conditional on financing, deployment and customer acceptance.
Shares TSEHIVE closed at C$2.55 in Toronto at 4:00 p.m. EST on Nov. 9, according to Google Finance. The Nasdaq listing NASDAQHIVE closed at US$1.81 at 4:00 p.m. EST on Nov. 9, according to Google Finance. Those closes preceded Tuesday's release and do not establish an earnings reaction.
Contracted Cloud Revenue Includes Undeployed Capacity
HIVE's Tuesday disclosure defines ARR as annualized run rate revenue, rather than revenue already earned. Its US$185 million contracted figure includes the US$40 million live run rate. Adding those figures together would double-count the operating business, while treating the contracted total as current revenue would include capacity not yet in service.
The contracts listed on Tuesday include a sovereign AI agreement valued at approximately US$225 million over three years. A separate agreement with an unnamed investment-grade enterprise customer is worth approximately US$350 million over five years. Both enter the contracted calculation before all associated capacity has started earning revenue.
Simple averaging of Tuesday's disclosed contract values gives approximately US$75 million annually for the sovereign agreement and US$70 million for the enterprise agreement. Together with the US$40 million live run rate, that reconciles with US$185 million contracted. The enterprise agreement's US$350 million is a total contract value, rather than an annual revenue figure.
The quarter's US$8.8 million HPC revenue is a separate measure of services delivered during the three months ended Sept. 30. HIVE attributed its growth to a newly deployed GPU cluster in Manitoba and stronger marketplace demand and pricing. It also reported that the Merritt facility lease contributed to higher administrative expenses.
"Our digital infrastructure platform combines established Bitcoin mining operations with a growing AI computing business," HIVE co-founder and executive chairman Frank Holmes said in Tuesday's release.
Bitcoin mining still supplied US$76 million of revenue in the September quarter, down 7.4 per cent from a year earlier. Mining rewards increased to 1,070 bitcoin from 1,004 in the preceding quarter, which HIVE attributed to lower average network difficulty.
Another 100 Megawatts Remain Unallocated
HIVE reported approximately 440 megawatts of operating global power capacity on Tuesday. It expects the footprint to reach approximately 540 megawatts after energizing an additional power purchase agreement in the fourth quarter of calendar 2026. The additional 100 megawatts at Yguazú are unallocated.
HIVE says directing that power toward AI or high-performance computing would require the associated infrastructure and investment. Operating power capacity therefore does not establish how much customer-ready AI capacity has been financed. The September cash balance is company-wide liquidity, rather than a disclosed construction and hardware budget for each cloud agreement.
HIVE separately held US$22.6 million of digital currencies at Sept. 30; those assets are additional to its reported cash and equivalents. The quarter's net loss included US$54.9 million of depreciation and a US$31.2 million mining-equipment impairment. Adjusted EBITDA was positive at US$24.8 million, but that adjusted earnings measure does not establish cash available for expansion.
The distinction also appears at WhiteFiber, Inc. NASDAQWYFI, an AI-cloud and colocation provider. Its Nov. 10 results confirm that all 40 megawatts of contracted NC-1 IT capacity are operating and billing. Initial funding under its US$300 million facility is expected in late November or early December, subject to funding conditions.
Mugglehead's coverage of the shift from mining to HPC leases has followed the distinction between contracted development and operating capacity. HIVE's Tuesday disclosure makes financing a condition of its year-end cloud target.
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HIVE's investor page schedules an earnings call for Nov. 10, the next scheduled opportunity to clarify deployment financing. The operating test is its fourth-quarter calendar 2026 target for US$200 million of GPU-cloud run rate, which requires capacity to enter service and customers to accept it.
