HIVE mined 49% more Bitcoin as AI hosting revenue rose 71%

By Marcus Bennett

HIVE Digital Technologies mined 1,070 Bitcoin in the quarter ended Sept. 30, 2026, up 49% from 718 a year earlier, according to its latest regulatory filing, yet mining revenue fell 7.4% to $76 million.

At scale, more production did not mean more cash. HIVE's mining operation faced a lower Bitcoin price and a higher power bill at the same time.

Mining output rose as economics weakened

HIVE's average Bitcoin price fell to $71,003 from $114,382 in the prior-year period. That decline more than offset the benefit of higher production.

Electricity costs increased to $45.6 million from $37.9 million as HIVE expanded its global mining capacity. The company produced more coins, generated less mining revenue and paid a larger power bill.

HIVE also recorded a $31.2 million noncash write-down on mining equipment. In the filing, the company cited “depressed mining economics” for the charge.

The write-down did not consume cash during the quarter. It showed how quickly weaker mining economics can reduce the booked value of mining equipment.

Operationally, HIVE kept expanding despite the pressure. That choice supported future production, but it tied more capital to an uncertain revenue environment.

What does the AI buildout change for HIVE?

HIVE's AI hosting business, reported as high-performance computing hosting revenue, grew 71% to $8.8 million. The segment accounted for 10.4% of quarterly revenue.

HIVE expects to spend up to $493 million over 36 months on HPC expansion, including acquiring land, building data center infrastructure and buying GPUs. The company had spent $145.3 million toward that expansion as of the filing.

Another $35 million will go toward converting HIVE's Toronto facility into a Tier-III data center. The company also targets a 100-megawatt substation expansion at its Yguazú site in Paraguay during 2026.

The plans divide capital between two build cycles: computing infrastructure for AI and electrical capacity for mining. HIVE must execute both while keeping its mining costs under control.

For HIVE, the shift changes the operating model. AI hosting adds a second revenue stream and a different infrastructure cycle. It does not yet replace mining: HPC supplied 10.4% of quarterly revenue, while mining generated $76 million.

The company must now turn a planned buildout of up to $493 million into revenue at sufficient scale. Until then, lower Bitcoin prices and elevated power costs remain central to its earnings.

Rivals retreat as HIVE stays in mining

American Bitcoin last week reported weaker mining margins despite a treasury-driven quarterly profit. Core Scientific said it plans to leave Bitcoin mining entirely by year-end.

HIVE is pursuing a different approach. It continues expanding its AI computing business while investing in Bitcoin production and mining infrastructure.

That strategy offers more revenue diversity than an outright mining exit. It also carries more execution risk, because HIVE must fund both data center construction and power capacity during compressed mining economics.

Earnings beat did not remove margin pressure

HIVE reported fiscal second-quarter revenue of $84.9 million, down 2.7% from a year earlier. The result exceeded the $79.4 million consensus estimate listed by MarketBeat.

On MarketBeat's analyst-comparison measure, HIVE posted an adjusted loss of 15 cents a share, beating expectations for a 16-cent loss. Its GAAP net loss was $78.7 million, or 29 cents a share.

HIVE's Nasdaq-listed shares fell 1.7% to $1.78 in after-hours trading Monday, according to Google Finance. They had closed the regular session up 1.7% at $1.81.

The revenue beat and subsequent share decline captured the tension in the results. HIVE cleared the top-line forecast, but mining revenue contracted and the GAAP loss remained substantial.

The next checkpoints are HIVE's 2026 Yguazú substation expansion and deployment of its 36-month HPC budget. Those deadlines will show whether AI hosting can grow into a meaningful offset to mining volatility.