0001062993-26-002973
SEC filingRevenue surged to $297.8M (+158% YoY) driven by expanded hashrate, but net loss widened to $(148.4)M on non-cash charges.
HIVE Digital Technologies Ltd. describes itself as a sustainable-energy focused digital infrastructure company. Its business model combines cash flow from an established hashrate services business (Bitcoin mining) with ongoing expansion into AI and high-performance computing (HPC) services, primarily through its subsidiary BUZZ High Performance Computing Inc. The Company leverages existing Tier-I data centers optimized for energy-efficient mining to secure low-cost power and grid access, then upgrades them to Tier-III enterprise-grade AI infrastructure. HIVE operates across five countries with approximately 464.4 MW of capacity.
The Company operates in two segments: (a) the provision of data server facilities for generating computational power (hashrate) sold to mining pools or used for Bitcoin transaction validation, and (b) the provision of HPC data centers used by customers for artificial intelligence and graphics rendering. No revenue share breakdown between segments is disclosed in this section.
Key offerings include hashrate services using ASIC miners, GPU-based HPC clusters for AI compute, and a planned cloud service called BUZZ Cloud. The cloud service will offer options ranging from virtual GPU instances to bare-metal servers with up to 10 GPUs and clusters of multiple servers. The Company also rents GPU server clusters via marketplace aggregators and direct contracts. As of April 30, 2026, approximately 360 H200 GPUs were under fixed-term contracts (6-12 months), with the balance of 5,000 A Series and H Series GPUs rented on demand. Subsequently, B200 GPUs were signed to a 2-year contract, increasing HPC revenue to $35M ARR.
HIVE sells computational power to third-party aggregators, including mining pools, enterprises supported by AI, and other miscellaneous data center applications. For HPC, the Company engages in direct contracts and marketplace rental. No specific customer concentration is disclosed.
In the ASIC compute market, HIVE competes with Bitdeer Technologies Group, Keel Infrastructure Corp., Cipher Digital Inc., CleanSpark, Inc., Core Scientific Inc., Hut 8 Corp., MARA Holdings, Inc., Riot Platforms, Inc., and TeraWulf Inc. In the HPC and AI markets, competitors include established data-center operators like Equinix, Crusoe Cloud, Applied Digital, and CoreWeave, as well as former bitcoin miners expanding into AI such as Keel Infrastructure Corp., IREN Ltd., and Hut 8 Corp.
HIVE's strategy centers on a dual-engine approach: using cash flow from ASIC hashrate sales to support higher-margin AI and HPC services. Key strategic pillars include a seasoned management team with data center expertise, an established renewable energy strategy prioritizing hydroelectric power, geographic diversification across Canada, Sweden, and Paraguay to mitigate risks, and the ability to repurpose existing ASIC infrastructure for GPU-based workloads, enabling faster time-to-market and lower build costs. The acquisition of the Toronto Facility exemplifies this strategy: existing power access was used to bring hashrate services online, with plans to upgrade to Tier-III specifications for HPC/AI compute.
As of March 31, 2026, HIVE employed 29 employees in Canada, Bermuda, Sweden, Paraguay, and the United States. None of the employees are represented by a labor union, and the Company has never experienced a work stoppage.
For FY26, HIVE reported total revenue of $297.8 million, a 158% increase from $115.3 million in FY25. Digital currency mining revenue surged to $278.3 million (up from $105.2 million) as the company mined 2,885 Bitcoin (1,414 in FY25) at an average Bitcoin price of $98,040 ($75,881 in FY25), partially offset by higher network difficulty (135.8T vs 95.7T). HPC hosting revenue nearly doubled to $19.5 million from $10.0 million, driven by the deployment of the Nvidia H200 GPU cluster and stronger market demand.
Cost of sales rose substantially: operating and maintenance costs for mining increased to $178.0 million from $82.0 million, reflecting higher electricity costs ($158.3 million vs $70.4 million) from the 300 MW expansion in Paraguay. Depreciation more than doubled to $170.4 million due to heavy capital additions. As a result, GAAP gross margin remained negative at (21.0%), though the non-GAAP gross operating margin improved to 36% (from 22%). Net loss widened to $(148.4) million from $(3.0) million, largely due to non-cash charges: $22.7 million loss on derivative fair value changes (related to Bitcoin repurchase options), $16.0 million unrealized investment losses, and $25.5 million in share-based compensation.
Digital currency mining remains the dominant segment, contributing 93% of revenue. The segment's gross mining margin (non-GAAP) rose to $100.2 million (36% of mining revenue) from $23.2 million (22%) in FY25, driven by higher Bitcoin output and improved fleet efficiency (17.5 J/TH by year-end). HPC hosting posted a gross HPC margin of $7.7 million (39% of HPC revenue), up from $2.0 million (19%), reflecting increased utilization and higher-value contracts. The company continues to diversify into HPC/AI, with plans to expand GPU capacity and land acquisitions.
Management's outlook emphasizes continued expansion: a 100 MW hashrate expansion at Yguazú (Paraguay) targeted for CY2026, fleet upgrades with S21 XP miners (8,000 units ordered), and HPC capacity growth through partnerships (Bell Canada, Paraguay JV). The company expects significant capital expenditures of up to $493 million over 36 months for HPC buildout. However, risks include Bitcoin price volatility (closing price $73,755 on May 30, 2026, down from highs), regulatory/tax disputes in Sweden and Canada, and execution risk on large-scale projects. No formal quantitative guidance was provided beyond ARR projections for the HPC segment ($35 million annualized run-rate expected post-deployment).
As of March 31, 2026, the company held $23.1 million in cash and cash equivalents, with total assets of $639.1 million. Total debt (including loans payable, term loan, mortgage, and lease liabilities) stood at $71.1 million, while shareholders' equity was $529.4 million. The debt-to-equity ratio is approximately 0.13. The company also holds $10.8 million in digital currencies classified as current assets. The most significant liability is lease liabilities ($43.6 million), followed by mortgage payable ($14.5 million) and loans payable ($11.0 million). Notably, the convertible loan was fully repaid during the year.
Purchase commitments for mining equipment and development costs totaled $29.1 million at year-end, a significant decrease from $227.8 million in the prior year, reflecting the fulfillment of prior commitments. Additionally, the company has utility energy deposits of $34.8 million and equipment deposits of $20.7 million. The company also has operating and finance lease obligations with total undiscounted payments of $50.5 million.
No share buybacks or dividends were disclosed. Capital expenditures (property, plant, and equipment purchases) totaled $169.9 million (including $148.3 million for equipment and $21.6 million for property), representing 57.1% of revenue. The company also used digital currencies as deposits for equipment, with $190.2 million in Bitcoin transferred for such purposes during the year. Debt repayments included $31.0 million for acquisition loan, $3.1 million for loans payable, $1.8 million for term loan, and $2.3 million for convertible loan. New debt issued was a $14.7 million vendor takeback mortgage for a property acquisition.
The company operates as a single reportable segment with two revenue streams: digital currency mining ($278.3 million) and high-performance computing hosting ($19.5 million). Geographically, the vast majority of revenue is attributed to Bermuda ($288.3 million), with the remainder from Canada ($9.5 million). Property, plant, and equipment are located in Canada ($113.6 million), Sweden ($14.1 million), and Paraguay ($352.8 million), reflecting the company's investment in Paraguay for mining operations.
Energy costs and availability remain a top risk, with specific geopolitical triggers: the Ukraine war affecting European natural gas, instability in Venezuela and Iran, and regulated power markets in Sweden, Québec, New Brunswick, and Paraguay. The company relies on power purchase agreements that may not be renewed on favorable terms. Prolonged outages or price spikes could materially impact operations.
Bitcoin price volatility and network difficulty are intertwined; sustained low prices with rising difficulty could render mining uneconomical. The 2028 halving will cut block rewards to 3.125 BTC, requiring a proportional increase in Bitcoin price to maintain profitability. Regulatory uncertainty persists: Bitcoin could be classified as a security, triggering the Investment Company Act of 1940. The CFTC may assert jurisdiction over mining activities as commodity pool operations. Quantum computing is a new, explicit threat—if ECC is broken, Bitcoin wallets could be compromised, and network trust eroded. Forks may create competing assets, complicating custody and value realization.
The expansion into HPC and AI services is capital-intensive and faces intense competition from hyperscalers and established data center operators. While HPC revenue grew to $19.5M in FY2026, profitability is not assured. The Bell Canada teaming agreement does not guarantee volumes. Rapid technological obsolescence of GPUs and reliance on third-party suppliers (e.g., Nvidia) create supply chain risk. Regulatory developments around AI and data center energy consumption could impose compliance costs or limit growth.
Dependence on a small number of suppliers (Bitmain for ASICs, GPU manufacturers) exposes the company to shortages, price volatility, and trade policy disruptions. U.S. tariffs and export controls could affect procurement of hardware manufactured abroad. Global semiconductor shortages may delay expansion plans.
The Swedish VAT dispute remains an overhang: SEK 765.6M (~$80.5M) assessed, with appeals ongoing. Canadian consumption tax credits (~C$48.6M) are withheld pending audits. The company's PFIC status is uncertain, which could have adverse U.S. tax consequences for shareholders. The $115M exchangeable notes introduce dilution risk and potential liquidity pressure if fundamental change repurchase is triggered. ATM equity offerings have been the primary funding source, leading to dilution.
Cybersecurity threats are heightened by AI-enabled attacks; the company holds Bitcoin via Fireblocks custody, which may be vulnerable. A $10M cyber insurance policy may be insufficient. Physical security risks in Paraguay include theft, hostage taking, and ransom demands. Management faces elevated personal security risks due to public profile and asset holdings.
The provided filing excerpt for HIVE Digital Technologies Ltd. (10-K, filed June 2, 2026) does not include the actual Consolidated Statements of Cash Flows. The content consists of auditor reports, a table of contents, and critical audit matter descriptions. No numerical cash flow data is available for analysis.
As a result, it is impossible to assess operating cash flow trends, capex intensity, free cash flow, or capital returns. The critical audit matter mentions $278.3 million in digital currency mining revenue, but this is from the income statement, not cash flows. Without the cash flow statement, no meaningful cash flow analysis can be performed.