HIVE Digital Technologies Q1 Earnings Call Highlights

HIVE Digital Technologies Ltd. reported a 73% year-over-year surge in revenue to $79.1 million for its Q1 2027 earnings call. The company's Bitcoin mining operations drove the growth, while its high-performance computing and artificial intelligence infrastructure business expanded. However, HIVE disclosed a GAAP net loss of $142.9 million, which primarily resulted from a non-cash Swedish VAT provision of $84.7 million and $53.7 million in depreciation expenses.

The company's CFO, Darcy Daubaras, highlighted that the loss was largely due to non-cash items, and the firm remains confident in its future prospects. Bitcoin mining continued to be HIVE's largest business, generating $72.1 million in revenue, while HPC and AI operations contributed $7 million. Gross operating margin increased to $24.2 million, up from $15.8 million a year earlier, although the margin as a percentage of revenue declined to 31% from 35%.

On a sequential basis, gross operating margin improved from $17.5 million in the prior quarter. HIVE ended the quarter with 1,004 Bitcoin equivalents in reserve and $208 million in cash. The company also held $11.2 million in digital currencies, $10.9 million in investments, and $18.9 million in receivables and prepaids, with total current assets amounting to approximately $280 million, compared to $143 million in current liabilities.

President and CEO Aydin Kilic noted that HIVE has reached $180 million in active and contracted annualized revenue from its GPU cloud business, which includes about $35 million in active annualized revenue from 5,500 GPUs currently online. The company announced a new five-year GPU cloud agreement with an unnamed investment-grade global technology company, valued at $360 million and expected to generate about $70 million in annualized revenue.

Kilic said HIVE aims to achieve $200 million in annual recurring revenue (ARR) for its GPU cloud business by the end of the fiscal year, following a previous $225 million contract with AI company Cohere.