HIVE Sold 331 BTC While Reporting a Record $298M Revenue — What’s Really Driving the Numbers?

HIVE Digital Technologies reported record full-year revenue of $297.8 million on Tuesday, up 158% from the prior year, while simultaneously disclosing that its Bitcoin treasury shrank by 331 BTC during the fiscal fourth quarter. 

For a publicly listed miner founded on green-energy Bitcoin production, that combination demands explanation. The CFO provided one, and it is more coherent than the headline suggests.

HIVE Mined More Bitcoin Than Ever — So Why Did Holdings Fall?

HIVE mined 2,885 Bitcoin during fiscal 2026, more than double the 1,414 mined the prior year, while benefiting from an average Bitcoin price of $98,040 compared to $75,881 in fiscal 2025. Despite that production, the company ended March 31 holding just 150 BTC, down from 481 BTC at the close of the previous quarter.

CFO Darcy Daubaras addressed the discrepancy directly. Bitcoin was strategically monetized to fund operating costs and capital investments, primarily the 300 MW Paraguay expansion, which increased hashrate from 6.5 EH/s to 25.1 EH/s across three phases completed between June and November 2025.

“From a treasury perspective, we view Bitcoin as both a strategic reserve asset and a source of capital,” Daubaras told CCN. “In fiscal 2026, we determined that investing capital in infrastructure expansion generated a superior risk-adjusted return for shareholders.”

The result of that trade: Bitcoin production doubled year-over-year, and annual return on invested capital reached 13.3%, which management says compares favorably with publicly listed peers. Holding the coins would have been simpler. Deploying them built a mining operation that now produces more of them.

GAAP Loss of $148M Tells Half the Story

HIVE reported a GAAP net loss of $148.4 million, which looks alarming until examined closely. Approximately $221.3 million of the reported loss was due to non-cash items, including $170.4 million in depreciation alone.

ASIC miners are depreciated over two years under HIVE’s accounting policy, which is intentionally conservative relative to industry peers and front-loads expense recognition well ahead of actual cash impact.

Strip out the non-cash charges, and the operational picture is different:

• Cash from operating activities reached $62.3 million, up 3.5-fold from $17.9 million the prior year.
• Gross operating margin hit $107.9 million, representing a 36% margin, a 14 percentage-point expansion over fiscal 2025.
• Adjusted EBITDA came in at $72.9 million.

A company generating nearly $300 million in revenue and $62 million in operating cash flow while simultaneously funding a major infrastructure expansion reflects investments in growth.

The fourth quarter was softer. Bitcoin’s average price dropped to $76,476 from roughly $98,000 in Q3, and network difficulty climbed to record levels, pushing Q4 Adjusted EBITDA to negative $9 million. Management was transparent about the hash price compression rather than obscuring it, which matters for how investors should read the full-year numbers.

HPC Graduates From Narrative to Revenue Engine

The more consequential question for long-term investors is whether HIVE’s AI computing business has moved from a story to a genuine financial contribution.

President and CEO Aydin Kilic made the case in numbers. HPC revenue reached $19.5 million in fiscal 2026, up 94% year-over-year from $10 million, driven by the NVIDIA H200 GPU cluster deployment and strong GPU marketplace demand. Contracted annual recurring revenue from the BUZZ HPC unit reached $35 million at fiscal year-end.

More telling than the revenue figure is how it was priced. HIVE’s first 504 NVIDIA B200 GPU cluster, deployed at Bell Canada’s AI Fabric facility in Manitoba, and has been live since May 2026, was signed at $2.90 per GPU-hour, 32% above the internal planning rate of $2.20. Customers are paying above forecast, which suggests demand is absorbing supply rather than the other way around.

HPC margins now stand at approximately 40%, exceeding those of Bitcoin mining. The GPU fleet is expanding from 5,500 to approximately 11,000 units under management by the end of calendar 2026, with management targeting AI Cloud ARR exceeding $200 million as that infrastructure ramps.

GTA Gigafactory Is the Make-or-Break Bet

HIVE’s $660 million ARR target by year-end 2028 rests heavily on the GTA Gigafactory, a 320 MW industrial-scale AI facility announced May 18, 2026, on a 25-acre site in the Toronto-Waterloo innovation corridor acquired for CAD $58 million.

Designed to house more than 100,000 NVIDIA GPUs at full buildout, it would become Canada’s largest privately owned AI data center, targeting $360 million of annualized recurring revenue at signed peer-comparable pricing of $150 per kW per month on 15-year terms.

Total development cost is estimated at approximately CAD $3.5 billion. Following the fiscal year-end, HIVE issued $115 million in 0% Exchangeable Senior Notes due 2031, generating approximately $109.5 million in net proceeds with no cash interest and capped-call transactions designed to limit dilution up to a 125% premium over the April reference share price.

Daubaras framed the project not as a single capital event but as a sequence of decisions tied to milestones and customer demand, with operating cash flow, strategic partnerships, and project-level financing all available in sequence. Operating cash flow funds the near-term runway. Customer commitments trigger the larger tranches.

What Investors Should Actually Watch

HIVE’s Bitcoin treasury was strategically deployed to fund infrastructure expansion, helping scale the company’s mining operations significantly during fiscal 2026.

Its HPC business is now generating meaningful contracted revenue with margins that exceed those of its core mining operations.

The successful Paraguay expansion transformed HIVE’s production capacity within a single fiscal year, and management is now applying that same execution strategy to its GTA Gigafactory initiative.

With growing AI revenue, expanding GPU capacity, and a clear roadmap toward its long-term ARR targets, fiscal 2026 marked an important step in HIVE’s evolution from a Bitcoin miner into a broader digital infrastructure and AI computing company.

About the Author

Dr. Guneet Kaur

Dr. Guneet Kaur is a senior editor at CCN.com and a Science Fellow at Exponential Science. She is a fintech and blockchain expert with extensive experience in digital finance education, blockchain ecosystems, and cryptocurrency markets. She has worked with global media such as Cointelegraph, as well as education and blockchain platforms, to design and lead strategic content and learning initiatives. As an educator and assessor for top-tier executive programs, she bridges real-world fintech trends with academic insight.

Dr. Kaur is also a published researcher and peer reviewer across fintech and data science journals, including Financial Innovation Journal and International Journal of Big Data Intelligence and Applications. Her work spans data-driven analysis, Web3 innovation, and technical content development. With a strong foundation in both industry and academia, she translates complex financial technologies into practical applications, empowering learners, professionals, and institutions across the rapidly evolving digital finance landscape.

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