HIVE Digital Technologies delivered a record financial performance for fiscal 2026, reporting strong revenue growth as it expanded both its Bitcoin mining and artificial intelligence computing operations. However, the company also faced growing pressure from tougher mining conditions and higher infrastructure costs.
The Bitcoin miner generated total revenue of $297.8 million during fiscal 2026, representing a 158% increase compared to the previous year. Most of that revenue came from digital currency mining, which contributed $278.3 million and remained the company’s largest business segment.
Despite the impressive top-line growth, Bitcoin mining became increasingly difficult throughout the year. HIVE noted that network difficulty continued to rise, making it harder to earn mining rewards. At the same time, Bitcoin’s average price dropped significantly during the fourth quarter compared with the previous quarter, adding further pressure on mining profitability.
The company reported a gross operating margin of $107.9 million, equivalent to a healthy 36% margin. Adjusted EBITDA reached $72.9 million, accounting for 24% of total revenue. These figures highlight the company’s ability to generate strong operating results despite challenging market conditions.
However, HIVE still recorded a GAAP net loss of $148.4 million for the year. According to the company, approximately $221.3 million of the result was tied to non-cash accounting items, including $170.4 million in depreciation expenses.
During the fourth quarter alone, HIVE generated $71.8 million in revenue. Revenue from Bitcoin mining declined by 23.9% compared with the previous quarter as falling Bitcoin prices and increasing network difficulty weighed on performance.
While mining faced headwinds, HIVE’s artificial intelligence and high-performance computing (HPC) business continued to gain momentum. The segment generated $19.5 million in revenue during fiscal 2026, marking a 94% increase from $10 million in the prior year. The company attributed the growth to rising demand for GPU-powered computing services.
Its BUZZ HPC division ended the fiscal year with $35 million in contracted annual recurring revenue. HIVE also announced that its first cluster of 504 Nvidia B200 GPUs, developed in partnership with Bell Canada AI Fabric, became operational in May 2026.
To support its AI ambitions, HIVE previously raised $75 million through exchangeable senior notes to fund GPU purchases and data center expansion. The company later expanded the financing effort by closing a $115 million note offering after initial buyers exercised their full purchase option.
Looking ahead, HIVE is developing a massive 320-megawatt AI gigafactory in the Greater Toronto Area. Once fully completed, the facility could support more than 100,000 GPUs, with operations expected to begin in the second half of 2027.
The company’s latest results reflect a broader trend among publicly traded Bitcoin miners. Many firms are increasingly diversifying beyond cryptocurrency mining by leveraging their power infrastructure, data centers, and technical expertise to enter the fast-growing AI computing sector.
This shift could help reduce dependence on Bitcoin price cycles, but it also requires significant investment in power capacity, land, advanced chips, and data center upgrades.
Today, HIVE operates 440 megawatts of power capacity across Canada, Sweden, and Paraguay. The company also significantly expanded its Bitcoin mining capabilities, increasing installed hashrate from 6.5 EH/s to 25.1 EH/s during the fiscal year.
As HIVE continues investing heavily in AI infrastructure, investors will be watching closely to see whether its computing business can grow quickly enough to justify its expansion strategy. For now, the company’s record revenue highlights strong growth, even as it navigates a smaller Bitcoin balance, rising costs, and an increasingly competitive mining environment.
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