HIVE Revenues for Q1 2027: +73.5%, but Loss Reaches $142 Million

HIVE Digital Technologies has closed the first quarter of fiscal year 2027, ending June 30, 2026, with total revenues of $79.1 million, an increase of 73.5% year-over-year and 10.2% compared to the previous quarter. This jump reflects the transformation of the Canadian company, which has shifted from pure Bitcoin mining to providing infrastructure for artificial intelligence. HIVE's revenues in Q1 2027 come at a time when the group is simultaneously scaling two parallel businesses: Bitcoin mining and GPU cloud dedicated to AI, with contrasting results that deserve to be read separately from the final accounting loss.

Summary

• Key Points
• Strong revenue growth for HIVE and increase in Bitcoin production
  • Revenue growth in Q1 fiscal 2027
  • Increase in Bitcoin mining capacity and production
• Expansion of AI cloud services and high-performance computing
  • Annual recurring revenues from GPU Cloud and future targets
  • Major contracts and growth in HPC revenues
• Expansion of infrastructure and new contracts
• Financial results and regulatory challenges
  • GAAP net loss, VAT dispute, and liquidity
• FAQ
  • What were the total revenues of HIVE Digital Technologies in Q1 fiscal 2027?
  • By how much did HIVE's Bitcoin production increase in Q1 2027?
  • What caused HIVE's large GAAP net loss in Q1 2027?
  • What are HIVE's targets for annual recurring revenues from GPU Cloud?

Key Points

• Total revenues at $79.1 million, +73.5% year-over-year; operations in digital currencies generated $72.1 million, HPC $7.1 million.
• Bitcoin production rose by 147% to 1,004 BTC, with average operational hashrate at 24.0 EH/s compared to 8.7 EH/s the previous year.
• Contracted annual recurring revenues (ARR) from GPU Cloud at approximately $110 million, with a target of $700 million by 2028.
• GAAP net loss of $142.9 million, primarily due to a non-cash provision of $84.7 million for the VAT dispute in Sweden.
• Global energy capacity expected to rise from 440 MW to 540 MW by the end of 2026; liquidity of $208 million in cash plus $11.2 million in digital currencies.

Strong revenue growth for HIVE and increase in Bitcoin production

HIVE's revenues for Q1 fiscal 2027 grew thanks to a mix of mining expansion and diversification into cloud services. The digital currencies segment remains the main driver of revenue, generating $72.1 million compared to $7.1 million from high-performance computing.

Revenue growth in Q1 fiscal 2027

The jump of 73.5% year-over-year is not an isolated case: it adds to an increase of 10.2% compared to the previous quarter, indicating that growth has not stalled after seasonal peaks. Gross operating margins improved to 30.6%, equivalent to $24.2 million, a figure that indicates how the expansion of production capacity is indeed translating into efficiency, not just higher volumes.

Increase in capacity and Bitcoin mining production

Bitcoin production has increased by 147%, reaching 1,004 BTC compared to 406 BTC in the same quarter of fiscal year 2026. Behind this number is a substantial expansion of HIVE's mining capacity: the average operating hashrate has reached 24.0 EH/s, nearly triple the 8.7 EH/s recorded twelve months prior. This is where the company's true competitive advantage in Bitcoin mining is measured: more dedicated computing power means more currency produced under the same network conditions, which explains much of the overall revenue growth.

Expansion of AI Cloud Services and High-Performance Computing

The real strategic shift for HIVE is evident in the GPU cloud for artificial intelligence, a business that is growing faster than mining itself and aims to become the dominant revenue component in the coming years.

Annual Recurring Revenue of GPU Cloud and Future Goals

The contracted ARR of the GPU Cloud has reached approximately $110 million. HIVE aims for $200 million by the end of 2026 and $700 million by the end of 2028: a growth path that, if confirmed, would completely reshape the relative weight between mining and AI cloud in the company's balance sheet. This long-term goal matters because it signals an explicit bet that the demand for computing for training AI models will continue to outpace that for simple cryptocurrency mining.

Major Contracts and HPC Revenue Growth

The HPC division recorded a sequential revenue increase of 52.1%, supported by the installation of NVIDIA B200 GPU clusters at the facility in Manitoba. Among the contracts fueling this growth is a three-year agreement worth $225 million with Bell AI Fabric to support Cohere through 2,304 NVIDIA GB200 GPUs. This is the kind of sovereign contract that major cloud operators are seeking to secure predictable revenues in a market where computing capacity is scarce.

Infrastructure Expansion and New Contracts

Supporting both mining and AI cloud requires energy, and on this front, HIVE is significantly accelerating investments. The company currently manages 440 MW of energy capacity and plans to reach 540 MW by the end of 2026, following the activation of a 100 MW power purchase agreement (PPA) in Paraguay. Meanwhile, HIVE has signed a letter of intent for colocation services at the Big Boden site in Sweden, totaling 32 MW, an operation that could generate $45 million in annual revenue if the contract is finalized. This infrastructure expansion is not just a matter of scale: the availability of low-cost energy remains the main constraint for those operating in both mining and AI cloud, and it is likely the factor that will determine which competitors can truly achieve their announced revenue goals.

Financial Results and Regulatory Challenges

Despite revenue growth, HIVE closed the quarter with a GAAP net loss of $142.9 million, a figure that at first glance contrasts with the positive operational picture just described.

GAAP Net Loss, VAT Dispute, and Liquidity

The loss is primarily due to non-monetary items, particularly a provision of $84.7 million related to a long-standing VAT dispute with the Swedish tax authority. The income statement was also burdened by $53.7 million in depreciation and $7.1 million in stock-based compensation. HIVE continues to appeal against the Swedish tax assessments, emphasizing that it has paid over $50 million in other taxes in the country over the past five years. On the liquidity front, as of June 30, 2026, the company had $208 million in cash and $11.2 million in digital currencies, after raising $31.1 million in the quarter through the at-the-market equity issuance program, with approximately 9.8 million new shares placed at an average price of $3.16.

FAQ

What were the total revenues of HIVE Digital Technologies in the first fiscal quarter of 2027?

HIVE reported total revenues of $79.1 million in the first fiscal quarter of 2027, an increase of 73.5% year-over-year.

How much did HIVE's Bitcoin production increase in the first quarter of 2027?

Bitcoin production rose by 147%, reaching 1,004 BTC in the first fiscal quarter of 2027, thanks to the expansion of operational hashrate.

What caused HIVE's significant GAAP net loss in the first quarter of 2027?

The GAAP net loss of $142.9 million is primarily due to a non-monetary provision of $84.7 million related to the VAT dispute with the Swedish tax authority.

What are HIVE's goals for annual recurring revenue from the GPU Cloud?

HIVE's contracted ARR for the GPU Cloud has reached $110 million, with a goal of reaching $200 million by the end of 2026 and $700 million by 2028.

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