HIVE’s Bitcoin output jumps 49%, but mining revenue still falls
Mining revenue fell 7.4% to $76 million as lower Bitcoin prices offset higher production; company expands AI computing business
Quick Look
- HIVE Digital Technologies produced 1,070 Bitcoin in Q3 2026, up 49% from 718 a year earlier, but mining revenue fell 7.4% to $76 million as Bitcoin's average price dropped to $71,003 from $114,382.
- Electricity costs rose to $45.6 million, and the company recorded a $31.2 million noncash write-down on mining equipment.
- HIVE is expanding its AI computing business, with HPC hosting revenue up 71% to $8.8 million, and plans up to $493 million in HPC expansion spending over 36 months.
AI-generated summary
Why It Matters
HIVE Digital Technologies is a Bitcoin mining company that is expanding into AI computing and HPC hosting. The company reported fiscal second-quarter results showing increased Bitcoin production but lower mining revenue due to falling Bitcoin prices and rising electricity costs. Other mining companies, including American Bitcoin and Core Scientific, are also facing pressure on mining economics, with Core Scientific planning to exit mining entirely.
Bitcoin miner HIVE Digital Technologies produced 49% more Bitcoin in the September quarter than a year earlier, but mining revenue fell as lower Bitcoin prices offset the increase in production.
According to its latest regulatory filing, the company produced 1,070 Bitcoin in the three months ended Sept. 30, 2026, up from 718 a year earlier. Mining revenue fell 7.4% to $76 million as the average price of Bitcoin fell to $71,003 from $114,382 in the prior-year period.
The weaker revenue came alongside a rising power bill. Electricity costs increased to $45.6 million from $37.9 million as HIVE expanded its global mining capacity. HIVE also recorded a $31.2 million noncash write-down on mining equipment, citing "depressed mining economics."
HIVE's results add to signs of pressure on Bitcoin mining economics. American Bitcoin last week reported weaker mining margins despite a treasury-driven quarterly profit, while Core Scientific said it plans to leave mining entirely by year-end. HIVE is pursuing a different approach, expanding its AI computing business while continuing to invest in Bitcoin production.
In the latest quarter, HIVE's HPC hosting revenue rose 71% to $8.8 million, accounting for 10.4% of its quarterly revenue.
HIVE said it anticipates spending up to $493 million over 36 months to expand its HPC operations, including acquiring land, building out data center infrastructure and buying up GPUs. The company reported spending $145.3 million toward that expansion as of the filing.
HIVE also plans to spend about $35 million converting its Toronto facility into a Tier-III data center. Meanwhile, it continues to expand its mining infrastructure, targeting a 100-megawatt substation expansion at its Yguazú site in Paraguay during 2026.
HIVE shares fall after hours despite earnings beat
HIVE's Nasdaq-listed shares fell 1.7% to $1.78 in after-hours trading Monday, according to Google Finance, after closing the regular session up 1.7% at $1.81.
The company reported fiscal second-quarter revenue of $84.9 million, down 2.7% from a year earlier but above the $79.4 million consensus estimate listed by MarketBeat.
Meanwhile, MarketBeat reported an adjusted loss of 15 cents a share on its analyst comparison measure, beating expectations for a 16-cent loss. HIVE's GAAP net loss was $78.7 million, or 29 cents a share.
What to Watch
AI outlook — possibilities, not facts
HIVE will continue expanding its AI computing business while maintaining Bitcoin production
Likely · Within months
HIVE will complete the Toronto facility conversion to a Tier-III data center
Likely · Within months
Open Questions
- What specific factors drove the 71% increase in HPC hosting revenue?
- What is the timeline for the Toronto facility conversion to a Tier-III data center?
- How will the $493 million HPC expansion be financed?
