HIVE Digital Mines 49% More Bitcoin but Posts $78.7M Quarterly Loss

Bitcoin miner and AI infrastructure company HIVE Digital Technologies (NASDAQ: $HIVE) reported fiscal second-quarter revenue of $84.9 million on Monday, down 2.7% from a year earlier, alongside a net loss of $78.7 million, or $0.29 per share. The results came as the company increased Bitcoin (CRYPTO: $BTC) production by 49% year over year.

Despite the quarterly loss, HIVE exceeded Wall Street expectations. Its adjusted loss of $0.15 per share was narrower than the $0.16 analysts had forecast, while revenue topped the approximately $80 million expected by analysts surveyed by Zacks. The results reflect pressure on Bitcoin mining profitability from lower cryptocurrency prices and rising electricity costs, alongside an impairment charge on mining equipment.

According to the company's quarterly filing, Bitcoin mining revenue declined 7.4% to $76.0 million as the average price of Bitcoin fell to $71,003 from $114,382 a year earlier. The decline came despite a 49% increase in production, with HIVE mining 1,070 Bitcoin compared with 718 in the prior-year quarter.

Electricity expenses increased to $45.6 million from $37.9 million as the company expanded its mining operations. Meanwhile, high-performance computing (HPC) hosting revenue climbed 71% to $8.8 million, accounting for 10.4% of total revenue.