0001062993-25-012159
SEC filingHIVE Digital Technologies reported a net loss of $3.0M for FY2025, swinging from a $26.5M profit in FY2024, driven by the April 2024 Bitcoin halving and increased network difficulty.
For the fiscal year ended March 31, 2025, HIVE Digital Technologies reported total revenue of $115.3 million, essentially flat compared to $114.5 million in FY2024. Revenue from digital currency mining decreased 5.2% to $105.2 million from $111.0 million, as the company mined 1,414 Bitcoin versus 3,123 in the prior year. The 55% drop in Bitcoin production was primarily due to the April 2024 halving, which reduced block rewards from 6.25 BTC to 3.125 BTC, and a 56% increase in average network difficulty (95.7T vs 61.2T). These headwinds were partially offset by a 109% increase in the average Bitcoin price ($75,881 vs $36,351). High-performance computing (HPC) revenue surged 194% to $10.0 million from $3.4 million, driven by the deployment of Nvidia H100 and H200 GPUs.
Gross profit swung to a loss of $39.3 million from a loss of $26.1 million in FY2024, reflecting higher depreciation ($64.5 million vs $63.6 million) and increased operating costs ($88.2 million vs $76.3 million). Operating income plunged 95% to $1.6 million from $32.7 million, as the gross margin deterioration was compounded by higher selling, general, and administrative expenses ($16.6 million vs $13.2 million), a foreign exchange loss of $5.1 million (vs a gain of $2.1 million), and increased stock-based compensation ($10.9 million vs $7.2 million). Net income swung to a loss of $3.0 million from a profit of $26.5 million in FY2024. Basic loss per share was $0.02, compared to earnings per share of $0.29 in the prior year.
Total assets increased 73% to $531.6 million from $306.7 million, driven by a $107.5 million increase in plant and equipment (to $202.8 million) from ASIC upgrades and the Paraguay acquisition, and a $59.0 million increase in deposits (to $74.9 million) for equipment orders and ANDE deposits. Digital currencies rose 12% to $181.1 million (2,201 Bitcoin at $82,000/BTC). Cash increased to $23.4 million from $9.7 million.
Total liabilities increased 74% to $82.5 million from $47.3 million, primarily due to a $31.0 million acquisition loan payable for the Yguazú facility and a $3.8 million increase in current income tax liability. The company had a working capital surplus of $179.3 million as of March 31, 2025, compared to $158.1 million a year earlier. Equity grew 73% to $449.1 million from $259.4 million, driven by $187.3 million in share issuances under at-the-market programs.
Cash provided by operating activities was $16.6 million, up from $9.6 million in FY2024, despite the net loss, due to non-cash charges including $64.5 million in depreciation, $10.9 million in stock-based compensation, and $18.5 million in gains on asset sales. Cash used in investing activities was $183.8 million, primarily for equipment purchases ($120.7 million) and deposits ($53.6 million). Cash provided by financing activities was $180.7 million, mainly from share issuances ($186.8 million). Free cash flow (operating cash flow minus capex) was negative $167.1 million, reflecting the heavy investment phase.
Management attributed the revenue decline to the April 2024 Bitcoin halving and increased network difficulty, which reduced Bitcoin production. The company highlighted its strategic expansion in Paraguay, with the acquisition of the 200 MW Yguazú facility and the development of the 100 MW Valenzuela facility, targeting total installed capacity of 24.5 EH/s by Q4 2025. The HPC business achieved its $20 million annualized run-rate target in May 2025, with peak daily revenue of $63,000. Key risks include energy cost volatility, the Swedish VAT dispute (total assessments of SEK 607.3 million), and the impact of future Bitcoin halvings. The company did not provide specific forward guidance for FY2026.
Segment revenue was entirely attributed to Bermuda for both digital currency mining and HPC, reflecting the company's corporate structure. The company recognized a $18.5 million gain on sale of mining assets, primarily from selling older-generation ASICs and GPU cards. Unrealized gains on investments totaled $19.1 million, driven by mark-to-market on public equity holdings. The company recorded a $1.0 million recovery on sales tax provisions, compared to a $6.8 million provision in FY2024. Stock-based compensation increased to $10.9 million from $7.2 million, primarily due to RSU grants. The company had $227.8 million in purchase commitments for mining equipment as of March 31, 2025.