HIVE’s Bitcoin output jumps 49%, but mining revenue still falls
HIVE’s mining revenue fell 7.4% despite higher production, while its AI hosting business grew 71%.
Bitcoin mining revenue for HIVE Digital Technologies fell 7.4% despite producing 49% more Bitcoin in the last quarter compared to a year ago. The company mined 1,070 Bitcoin in the three months ending September 30, 2026, up from 718 in the same period last year. However, the average Bitcoin price dropped from $114,382 to $71,003, leading to a decrease in mining revenue to $76 million.
This revenue decline was further exacerbated by a rise in electricity costs, which rose to $45.6 million from $37.9 million as HIVE increased its global mining capacity.
In addition to the revenue drop, HIVE recorded a $31.2 million noncash write-down on mining equipment due to "depressed mining economics." The company also plans to spend up to $493 million over 36 months to expand its AI computing business, which includes acquiring land, building data center infrastructure, and purchasing GPUs. HIVE expects to convert its Toronto facility into a Tier-III data center and is targeting a 100-megawatt substation expansion at its Yguazú site in Paraguay during 2026.
Despite these challenges, HIVE's AI hosting business grew 71%, accounting for 10.4% of its quarterly revenue. The company's shares fell 1.7% to $1.78 in after-hours trading after closing the regular session up 1.7% at $1.81. HIVE reported fiscal second-quarter revenue of $84.9 million, a 2.7% decrease from the previous year, but slightly above the $79.4 million consensus estimate. The company reported a GAAP net loss of $78.7 million, or 29 cents per share.
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