HIVE’s AI Cloud Push Gains Momentum as Revenue Climbs 74% and Contracted ARR Tops $110 Million

Key Points

• HIVE Digital Technologies Ltd. reported fiscal first-quarter 2027 revenue of $79.1 million, up 73.5% year over year and 10.2% from the prior quarter.
• Contracted and active GPU cloud annual recurring revenue, or ARR, reached approximately $110 million, supported by a three-year Bell AI Fabric agreement tied to Cohere.
• HIVE’s bitcoin-mining revenue rose 76.6% year over year to $72.1 million, while BUZZ high-performance computing, or HPC, revenue increased 46.7% to $7.1 million.
• The company recorded a GAAP net loss of $142.9 million, driven largely by non-cash charges, including an $84.7 million provision related to disputed Swedish VAT assessments.

HIVE (Nasdaq: HIVE) generated $79.1 million in revenue for the quarter ended June 30, 2026. The company attributed the increase to stronger results from both bitcoin mining and its expanding high-performance computing business.

Digital-currency mining revenue totaled $72.1 million, compared with $40.8 million in the prior-year period. HIVE received 1,004 Bitcoin as mining rewards during the quarter, up 147% from 406 Bitcoin a year earlier, as average operating hashrate rose to 24.0 exahash per second from 8.7 EH/s.

GPU Cloud Business Builds a Larger Contracted Revenue Base

HIVE said active and contracted GPU cloud ARR reached approximately $110 million. About $35 million of that ARR is currently live, while a new agreement adds an expected $75 million in annualized revenue once deployed.

The growth is tied to an approximately $225 million, three-year sovereign AI agreement with Bell AI Fabric supporting Cohere. The agreement covers deployment of 2,304 NVIDIA GB200 NVL72 GPUs. HIVE said its active and contracted GPU cloud revenue base is supported by approximately 7,800 GPUs.

ARR represents annualized run-rate revenue, not revenue already recognized under accounting rules. HIVE cautioned that projections may not account for potential cancellations, discounts, or service downgrades.

BUZZ HPC Revenue Accelerates With New GPU Deployment

HIVE’s BUZZ HPC business reported $7.1 million in revenue, up 46.7% year over year and 52.1% sequentially. The company cited deployment of an NVIDIA B200 GPU cluster at its Manitoba, Canada facility, as well as demand and pricing trends across GPU marketplaces.

HIVE is targeting approximately $200 million in GPU cloud ARR by the fourth quarter of calendar 2026, contingent on successful deployments and market conditions. It also signed a letter of intent for long-term colocation at its 32-megawatt Big Boden site in Sweden, which could represent roughly $45 million in potential annual colocation revenue. Including that nonbinding opportunity, HIVE places its HPC and AI ARR pipeline at about $155 million.

Non-Cash VAT Provision Drove Reported Net Loss

HIVE reported a GAAP net loss of $142.9 million for the quarter. The company said the result was primarily affected by non-cash charges, including:

• An $84.7 million provision for regulatory liabilities tied to disputed Swedish VAT assessments
• $53.7 million of depreciation expense
• $7.1 million in share-based compensation
• A $7.1 million derivative fair-value change

The Swedish Tax Authority assessments concern input-VAT deductions associated with equipment and spending used in HIVE’s Swedish mining operations from 2023 onward. HIVE is contesting the assessments and plans to continue its appeals through Sweden’s administrative court system.

Operating Metrics Show Positive Adjusted EBITDA

Gross operating margin was $24.2 million, or 30.6% of revenue, compared with $17.5 million, or 24.4% of revenue, in the preceding quarter. HIVE also reported adjusted EBITDA of $13.4 million, versus an adjusted EBITDA loss of $9.0 million in fiscal fourth-quarter 2026.

These are non-GAAP measures, meaning they exclude or adjust for certain items and may not be directly comparable with measures reported by other companies. HIVE ended the quarter with $208.0 million in cash and cash equivalents, plus $11.2 million in digital currencies.

Additional Share Issuance Funded Growth

During the quarter, HIVE issued 9.86 million common shares through its at-the-market equity program. The company raised approximately $31.1 million in gross proceeds at an average sale price of $3.16 per share, before $0.9 million in cash commissions.

The share sales added liquidity for HIVE’s expansion plans but also increased the number of outstanding shares. For investors, this creates a balance between funding growth in AI and HPC infrastructure and the potential dilution borne by existing shareholders.

Investor Focus Turns to GPU Deployment and VAT Appeal

HIVE is positioning its AI and HPC platform as a second growth engine alongside bitcoin mining. Its ability to convert contracted ARR into recognized revenue will depend on installing and operating the promised GPU capacity, maintaining customer demand, and executing its data-center development plans.

Investors may monitor:

• Deployment timing for the Bell AI Fabric and Cohere GPU agreement
• Progress toward the $200 million GPU cloud ARR target by late 2026
• BUZZ HPC revenue growth and gross-margin trends
• Bitcoin production, hashrate growth, network difficulty, and Bitcoin prices
• The outcome of the Swedish VAT dispute and related appeals
• Future use of the at-the-market program and additional shareholder dilution
• Development activity at HIVE’s Paraguay, Canada, and Sweden facilities.