HIVE Digital (HIVE) Stock Soars 167% on AI Transformation and Record Revenue Growth

Key Highlights

• Fiscal 2026 revenue reached $297.8 million USD, representing a 158% year-over-year increase
• Cryptocurrency mining revenue climbed 164% to $278.3 million, supported by a fourfold expansion in hashrate capacity
• Net loss totaled $148.4 million, primarily attributed to depreciation and other non-cash expenses
• Company redirecting all growth capital expenditure toward AI and high-performance computing infrastructure
• Proposed Toronto-area “gigafactory” designed to accommodate 100,000 GPUs with projected annual revenue of CAD $360 million

HIVE Digital Technologies has delivered its most impressive fiscal performance to date, with total revenue hitting $297.8 million USD for fiscal 2026—a remarkable 158% increase compared to the previous year. Shares have surged 167% year-to-date, currently trading at $4.72.

HIVE Digital Technologies Ltd., HIVE

Cryptocurrency mining operations fueled the majority of growth, with revenue jumping 164% to reach $278.3 million. This performance was driven by a quadrupling of operational hashrate capacity and the mining of 2,885 Bitcoin throughout the year—a 104% increase—even as network difficulty intensified by 42%.

The high-performance computing hosting segment contributed $19.5 million in revenue for the year, marking a company milestone and representing 94% growth from the $10 million recorded in fiscal 2025.

Despite robust revenue performance, the company continues to operate at a loss. HIVE reported a net loss of $148.4 million, which management attributes predominantly to depreciation and similar non-cash accounting items. Adjusted EBITDA reached CAD $73 million.

During the fourth quarter ending March 31, revenue totaled CAD $71.8 million, significantly higher than the CAD $31.2 million reported in the comparable period last year. The company mined 876 Bitcoin during the quarter while its AI and HPC operations contributed CAD $4.6 million.

Cash reserves stood at CAD $23 million at quarter-end, with digital assets totaling CAD $10.8 million. Bitcoin holdings have decreased to 150 BTC from 481 at year-end 2025, reflecting the company’s strategic reduction of cryptocurrency holdings.

Strategic Shift Toward Artificial Intelligence

The company’s GPU cloud platform, operating under the BUZZ brand, currently generates CAD $35 million in annualized revenue from approximately 5,500 GPUs. Management has set an ambitious target of CAD $200 million in annual recurring revenue from GPU cloud services.

HIVE’s inaugural Blackwell cloud deployment in Canada is operational in Winnipeg, featuring 504 NVIDIA B200 GPUs under a two-year agreement valued at CAD $30 million. Additionally, the company has executed memoranda of understanding for two expanded clusters—featuring 2,304 GB200 GPUs and 2,088 GB300 GPUs respectively—each projected to contribute CAD $65–70 million in annual recurring revenue.

A strategic alliance with Bell Canada provides HIVE with access to Bell AI Fabric data centers nationwide, enabling scalability without proportional capital investment.

Massive Toronto Data Center Facility Targeted for 2028 Launch

The most significant development announced was HIVE’s planned AI gigafactory in the Greater Toronto Area. The company acquired a 25-acre property for CAD $58 million, specifically designed to house up to 100,000 GPUs.

The facility features a 320-megawatt gross capacity allocation and is scheduled to commence compute operations in early 2028. Management estimates the site could produce approximately CAD $360 million in annual recurring revenue through colocation arrangements.

To support this aggressive expansion roadmap, HIVE successfully completed a CAD $115 million offering of 0% exchangeable senior notes maturing in 2031. The offering reportedly attracted demand exceeding CAD $500 million.

Kilic presented a sum-of-the-parts valuation analysis suggesting a potential enterprise value surpassing CAD $5 billion, dependent upon contract execution and infrastructure deployment.

HIVE’s worldwide operational footprint now encompasses 860 megawatts when including active capacity, the Toronto gigafactory, and planned phases in Paraguay.

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