HIVE Digital Fiscal Q2 Earnings: AI Revenue Up 70% as Cash Falls $69 Million
HIVE Digital Technologies (TSX: HIVE) posted fiscal Q2 2027 earnings that pull in two directions at once. Revenue for the fiscal second quarter, the three months to September 30, 2026, was US$84.9 million, which the company puts at 7.3% above the June quarter and 2.7% below the same quarter a year earlier. Revenue from its BUZZ HPC artificial intelligence business rose 70.7% year over year, on the company’s figure, to US$8.8 million. The GAAP net loss was US$78.7 million, and cash and cash equivalents ended the quarter at US$139.0 million against US$208.0 million three months earlier. The release states that “All amounts are in US dollars unless otherwise indicated”; the shares trade in Canadian dollars on the TSX.
The results are dated Monday, November 9, in HIVE’s fiscal second quarter news release, which set the earnings call for 8:00 a.m. ET on Tuesday. HIVE.TO traded at C$2.44 at 2:52 p.m. ET on Tuesday, down 4.31% from a previous close of C$2.55, with the Nasdaq-listed shares at US$1.715, down 5.25% from US$1.81. The S&P/TSX Composite stood at 36,226.47, down 0.60%, and bitcoin was at US$73,467.18, down 2.33%. Share prices, the index level and bitcoin prices here are from Yahoo Finance.
The quarter as reported, beside the June quarter
| Q2 FY2027 (Sep 30, 2026) | Q1 FY2027 (Jun 30, 2026) | |
|---|---|---|
| Total revenue | $84.9M | $79.1M |
| Digital currency revenue | $76.0M | $72.1M |
| HPC (BUZZ) revenue | $8.8M | $7.1M |
| Gross operating margin (non-GAAP, company-defined) | $30.2M, 35.6% of revenue | $24.2M, 30.6% |
| SG&A | $10.7M | $9.0M |
| Adjusted EBITDA (non-GAAP, company-defined) | $24.8M, 29.2% of revenue | $13.4M, 17.0% |
| GAAP net loss | $78.7M | $142.9M |
| Cash and cash equivalents | $139.0M | $208.0M |
| Digital currencies held | $22.6M | $11.2M |
| Bitcoin received as rewards | 1,070 | 1,004 |
All figures in US dollars, as HIVE reported them. Gross operating margin and Adjusted EBITDA are non-GAAP measures the company defines itself, and the release notes they “may not be comparable to similarly titled measures presented by other companies”.
The two engines moved in opposite directions
Digital currency revenue of US$76.0 million was up 5.5% sequentially and down 7.4% year over year, on the company’s percentages. HIVE attributes the sequential improvement to higher Bitcoin production as average network difficulty declined to approximately 128 trillion from 135 trillion in the June quarter, and reports receiving 1,070 Bitcoin in rewards against 1,004 in the preceding quarter. HIVE puts its share of the network at “approximately 2% of global network hashrate”.
HPC revenue of US$8.8 million was up 25.3% sequentially and 70.7% year over year, again the company’s figures. The growth “primarily reflected deployment of an NVIDIA B200 GPU cluster at HIVE’s Manitoba, Canada, site, together with strong demand and pricing across GPU marketplaces”. On our arithmetic against the reported total, HPC was 10.4% of the quarter’s revenue and digital currency mining was 89.6% of it. That proportion is the whole story: the line growing fast is the small one, and the line that shrank is almost all of the business. Executive chairman Frank Holmes put it this way: “Revenue was broadly stable year over year despite a 27% decline in Bitcoin prices, while HPC revenue increased more than 70%.” The 27% is his figure.
One cross-check is worth running on the mining line. Divide the quarter’s digital currency revenue, 76,038 thousand on the income statement, by the 1,070 Bitcoin received and you get about US$71,064 a coin, our arithmetic on the company’s two figures. Bitcoin’s average daily close over the quarter was US$71,175.78, which we calculate from daily closes, 0.2% away. The cash flow statement separates the two flows: it backs revenue recognized from digital currency out of net income as a non-cash item, (148,098) over the six months, and reports proceeds from the sale of digital currency on a separate line, 135,776. On the face of those statements the mining line tracks coins received and the price around the time they arrive, rather than a price realised on sale.
The coins largely do not stay on the balance sheet either, and the cash flow statement settles that rather than leaving it to inference. Over the six months to September 30, 2026, HIVE recognised US$148.1 million of revenue from digital currency and took in US$135.8 million of cash from selling digital currency, which is 91.7% of it, our arithmetic on those two six-month lines. That is the same conclusion our ranking of Canadian crypto stocks, ranked on bitcoin per share reached on the June quarter, where HIVE placed seventh and read as an AI infrastructure company that mines rather than as a bitcoin holding.
The loss, the write-down and what the non-GAAP measures measure
The GAAP net loss of US$78.7 million, which the income statement reports as US$(0.29) a share basic and diluted against US$(0.07) a year earlier, narrowed from US$142.9 million in the June quarter, whose charge list included a US$84.7 million provision for regulatory liabilities that this quarter’s list does not repeat. HIVE says the September quarter’s loss “included substantial non-cash charges: $54.9 million of depreciation, $31.2 million of equipment impairment, $8.6 million of share-based compensation and a $7.3 million change in the fair value of derivatives”. It attributes that derivative movement primarily to “the remeasurement of capped call transactions associated with convertible notes”, which is the same financing that put a US$235.3 million convertible loan liability component on the balance sheet where the fiscal year end showed none. CFO Darcy Daubaras singled out the same two largest items, depreciation and “a $31.2 million impairment of mining equipment following a U.S. GAAP recoverability assessment”.
That list is the release’s own description of charges sitting inside the loss rather than a reconciliation of it, and the income statement shows items running the other way across the same three months, including US$5.3 million of net realized and unrealized gains of digital currencies and US$1.8 million of other income.
Note what was marked down. HIVE says the impairment “followed a recoverability assessment under U.S. GAAP reflecting challenging Bitcoin mining economics and lower market values for ASIC equipment”. It is the mining fleet being written down, not the AI business. Across the six months the loss runs to US$(0.82) a share, and the accumulated deficit has gone from US$422.3 million to US$643.9 million.
Set against that loss, Adjusted EBITDA was US$24.8 million, or 29.2% of revenue, which the company calls an 85% sequential increase. HIVE defines it as EBITDA adjusted by “removing other non-cash items, including share-based compensation, finance expense, depreciation and one-time transactions”. A positive non-GAAP measure sitting beside a US$78.7 million GAAP loss is not a contradiction. It is a measure built to exclude most of what made the loss.
The other non-GAAP measure can be reproduced line by line. HIVE defines gross operating margin as revenue less direct cash costs, being operating and maintenance costs and high-performance computing service fees. Run that definition on the statement’s own three-month figures, in thousands of US dollars: 84,882 of revenue less 53,556 of operating and maintenance costs less 1,124 of high performance computing service fees is 30,202, which reproduces the reported US$30.2 million to the thousand, our arithmetic on the company’s own definition. The GAAP cost of sales section carries one further item, depreciation of 54,863, and after it the same three months show a subtotal of (24,661). The entire distance between a positive US$30.2 million and a negative US$24.7 million on one quarter is depreciation, on a business whose largest asset is hardware that depreciates. Our guide to how to analyse a company’s financials covers where company-defined measures sit relative to reported earnings.
HIVE shows that margin against the June quarter, where it was 30.6%. Run the same definition on the prior-year column of the same statement and it goes the other way. For the three months to September 30, 2025: revenue of 87,253 less operating and maintenance costs of 44,065 less high performance computing service fees of 784 is 42,404, which is 48.6% of revenue, against 35.6% now, our arithmetic on the company’s definition and its own comparatives. In dollars that measure is down 28.8% from a year earlier. The reason sits in the same column. Operating and maintenance costs rose 21.5% year over year while revenue fell 2.7%, and depreciation rose 43.3%, from 38,292 to 54,863. That is the cost side of the mining business the impairment was taken against.
SG&A rose to US$10.7 million from US$9.0 million in the June quarter and US$7.8 million a year earlier. HIVE says the sequential increase “primarily reflected the Merritt facility lease associated with expansion of HIVE’s HPC business”.
Liquidity fell by $57.6 million in a quarter that raised $43.2 million from shareholders
Cash went from US$208.0 million to US$139.0 million, a fall of US$69.0 million on our subtraction of the two reported figures. Cash plus digital currencies went from US$219.2 million to US$161.6 million, down US$57.6 million, also ours. Over the same three months HIVE issued 13,698,085 common shares under its November 2025 at-the-market program for gross proceeds of approximately US$43.2 million, with a US$1.3 million cash commission, after 9,855,902 shares for approximately US$31.1 million in the June quarter.
The chart below sets the two liquidity components at June 30 beside September 30. The digital currencies line rose from US$11.2 million to US$22.6 million across those three months, a period in which bitcoin’s own closing price rose 42.7%, from US$58,558.86 on June 30 to US$83,553.85 on September 30, our arithmetic against daily closes.
Those shares went out at an average of US$3.15, which HIVE also states as C$4.38. The TSX quote of C$2.44 on Tuesday afternoon is 44.3% below that Canadian-dollar average, our arithmetic. For scale on the issuance itself, the income statement puts the quarter’s weighted average common shares, basic and diluted, at 274,082,247, against 228,137,757 in the same quarter a year earlier, up 20.1% on our arithmetic. The 13,698,085 ATM shares sold during the quarter are 5.0% of that weighted average, also ours.
One item on the other side of the balance sheet belongs in any reading of that liquidity. At September 30 HIVE carried a provision for regulatory liabilities of US$84.5 million, against total current liabilities of US$137.8 million, total current assets of US$213.4 million and the US$139.0 million of cash. It is the charge taken in the June quarter, which HIVE described then as “a non-cash provision of $84.7 million relating to previously disclosed and contested VAT assessments by the Swedish Tax Authority”, with the assessments relating primarily to the deductibility of input VAT on equipment and other expenditures used in its hashrate services operations for periods beginning in 2023. The income statement’s six-month column carries that charge at 84,473 in thousands of US dollars, which is the provision the balance sheet reports to the thousand, with a US$0.2 million credit running back through the same line in the September quarter. HIVE says it “has contested the STA’s assessments and continues to pursue the legal remedies available to it, including appeals through the Swedish administrative court system”, and that it recognised the provision under U.S. GAAP “following recent adverse Court of Appeal judgments” while continuing to dispute the assessments. The charge is behind the company. The liability and the appeal are not.
On the capital side, CEO Aydin Kilic says that following a US$129 million financing, HIVE’s “capital commitments for the 2,304 GB200 GPU cluster were satisfied as of September 30, 2026”, with the GPUs anticipated to ship before calendar year-end, “after which the lender’s funds will be released from escrow to the GPU OEM as milestones are met”.
The build is being paid for with financing, not with operating cash flow
The cash flow statement published with the release runs for the six months to September 30, 2026, so every figure in this section is a six-month figure. Over those six months HIVE generated US$12.2 million of net cash from operating activities, used US$136.0 million in investing activities and raised US$239.3 million in financing activities. The investing line is capital spending, of which deposits on equipment were US$91.0 million, purchases of property US$22.0 million and purchases of equipment US$18.0 million. The financing line is dominated by a single item, the issuance of a debenture for US$199.0 million.
The statement’s own total runs the other way from the quarter. Over the six months cash rose US$115.9 million, from US$23.1 million at the March 31 fiscal year end to US$139.0 million at September 30.
The balance sheet carries the result, and its comparative is March 31, 2026, the fiscal year end, so these too are six-month changes. Total liabilities stood at US$493.2 million at September 30 against US$109.8 million six months earlier, including a convertible loan liability component of US$235.3 million where the year-end column shows none. Total equity fell US$164.9 million over the same six months, to US$364.5 million, our arithmetic on the two reported columns. Over the same six months, net plant and equipment fell from US$480.5 million to US$390.6 million while deposits rose from US$53.6 million to US$148.0 million. The mining fleet is coming off the books while prepayments for computing hardware go on.
Capital spending on that scale is being funded from the balance sheet rather than from operations, and the balance sheet now carries it. HIVE’s reported Adjusted EBITDA across the same two quarters was US$38.2 million combined, on our addition of its US$13.4 million and US$24.8 million figures.
Contracted ARR is capacity under contract, not revenue recognised
HIVE reports approximately US$40 million of currently live GPU Cloud annualised run rate revenue and approximately US$185 million of contracted GPU Cloud ARR “inclusive of the live ARR”. On the company’s own wording, that leaves US$145 million of it not yet in service, our subtraction. The release states the limit plainly: “Contracted ARR includes capacity that has not entered service and is not equivalent to current recognized revenue.”
The release says the contracted amount “includes the existing GPU Cloud platform and the following agreements”, of which there are two: an approximately US$225 million, three-year sovereign AI agreement with Bell AI Fabric supporting Cohere, covering 2,304 NVIDIA GB200 NVL72 GPUs, and an approximately US$350 million, five-year GPU cloud agreement with an investment-grade enterprise customer it does not name, covering 2,016 NVIDIA GB300 NVL72 GPUs.
Those three components reconcile to the total. The existing platform is the approximately US$40 million that is live. HIVE described the Bell and Cohere agreement in its fiscal Q1 2027 release as adding “$75 million ARR”. The second agreement, approximately US$350 million over five years, is US$70 million a year on our division. That is 40 plus 75 plus 70, the approximately US$185 million reported. The same structure held a quarter earlier, when approximately US$35 million live plus the US$75 million from Bell and Cohere was the approximately US$110 million the fiscal Q1 release reported.
The live figure is the part already in service, and it has a trajectory and a date against it. Live GPU Cloud ARR was approximately US$35 million in the fiscal Q1 release in August and is approximately US$40 million now. HIVE says it is targeting approximately US$200 million of GPU Cloud ARR by the fourth quarter of calendar 2026, which is the quarter now running, “subject to financing, market conditions, deployment schedules and customer acceptance”. The financing picture behind that condition has moved a long way in six months: total liabilities went from US$109.8 million to US$493.2 million, US$235.3 million of it the convertible loan liability component, and the shares HIVE has been issuing into are trading 44.3% below the C$4.38 average its ATM sold at during the quarter.
Beyond that, a letter of intent for colocation at the 32 MW Big Boden facility in Sweden represents approximately US$45 million of potential annual revenue if definitive agreements are executed and the project enters service, and the company states that this is not included in contracted ARR. Management also identifies a longer-term target of approximately US$700 million in total HPC ARR by year-end 2028, which the release labels a forward-looking target rather than contracted revenue.
The Canadian content in that pipeline is substantial. Kilic says HIVE “has 400 MW of utility load across Canada earmarked for Tier III data centers for HPC applications, of which over 320 MW are in the Province of Ontario”, and notes that Ontario released a data centre playbook in August 2026. Whether that converts into measured AI revenue is the test behind our ranking of Canadian AI stocks, ranked on measured AI exposure, where HIVE was assessed and placed just outside the ranked set on scale and balance-sheet volatility.
Bitcoin now trades near the average price the quarter was earned at
Because the mining line moves with coins received and the price around the time they arrive, where bitcoin trades between quarters feeds straight into the next one. At US$73,467.18 on Tuesday afternoon, bitcoin sat 3.2% above the US$71,175.78 average daily close of the quarter just reported and 12.1% below the September 30 close of US$83,553.85, our arithmetic against daily closes.
The chart below tracks bitcoin’s daily closes from the first day of the fiscal quarter through November 9, with the quarter’s average close marked.
The equity has travelled further than the commodity, measured in the same currency. HIVE’s Nasdaq line closed at US$2.95 on September 30 and traded at US$1.715 on Tuesday afternoon, down 41.9%, against bitcoin’s 12.1% over the same span. The TSX line moved with it, from C$4.18 to C$2.44, down 41.6% in Canadian dollars. All three are our arithmetic on Yahoo Finance closes and Tuesday’s quotes.
What the next two quarters will settle
Two dated items sit in front of the company. The additional 100 MW power purchase agreement at Yguazú is slated for energization in the fourth quarter of calendar 2026, and HIVE says it currently operates approximately 440 MW of global power capacity and expects its energized footprint to reach approximately 540 MW following it, with the new capacity currently unallocated.
Management’s stated priority is defensive. Kilic: “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.”
Both halves of this quarter are true at the same time. The AI line grew 70.7% year over year and is a tenth of revenue, with US$145 million of contracted run rate still to enter service. The mining line is the rest of the business, shrank 7.4% year over year on the company’s figure, and absorbed a US$31.2 million write-down of its own equipment. Liquidity fell US$57.6 million over the three months, in a quarter that also raised US$43.2 million from shareholders.
Disclaimer: The content on bestcanadianstocks.ca is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions. Company figures are HIVE Digital Technologies’ own, from its fiscal Q2 2027 news release of November 9, 2026 and its fiscal Q1 2027 news release of August 15, 2026, and from the unaudited condensed interim consolidated statements of financial position, of (loss) income and comprehensive (loss) income, and of cash flows published with the fiscal Q2 2027 release, all expressed in thousands of United States dollars. Share prices, index levels and bitcoin prices are from Yahoo Finance, intraday quotes carrying the time they were taken and daily closes labelled as closes. Differences, ratios and percentages described as ours are our arithmetic on those figures.
