HIVE Digital Technologies (NASDAQ:HIVE) reported sharp year-over-year revenue growth for its fiscal 2026 and used its earnings call to outline an expanded strategy centered on high-performance computing, artificial intelligence infrastructure and continued Bitcoin mining cash flow.
President and Chief Executive Officer Aydin Kilic said the company generated approximately CAD 300 million in revenue for the year, with more than CAD 100 million of gross operating margin and about CAD 76 million of net operating income. He said adjusted EBITDA was CAD 73 million for the year, while the company recorded a net loss of roughly CAD 148 million, which he attributed largely to depreciation and other non-cash adjustments.
For the fiscal fourth quarter ended March 31, Chief Financial Officer Darcy Daubaras said revenue totaled CAD 71.8 million, up from CAD 31.2 million in the prior-year quarter. Gross operating margin rose to CAD 17.5 million from CAD 8.8 million a year earlier. The company produced 876 Bitcoin during the quarter, while its high-performance computing and AI business generated CAD 4.6 million of revenue.
Daubaras said HIVE ended the quarter with CAD 23 million in cash, CAD 10.8 million in digital currencies and CAD 9.7 million in investments. Total current assets were approximately CAD 59.8 million. He said the company continues to focus on maintaining financial flexibility while investing in infrastructure and growth opportunities.
Bitcoin Mining Remains a Cash Flow Engine
Kilic described HIVE as a “vertically integrated data center builder and operator,” with a dual-engine strategy that uses Bitcoin mining cash flow to fund expansion in HPC and AI. He said the company had 25 exahash installed at fiscal year-end, with about 23 exahash average operational for the quarter.
HIVE has 440 megawatts of active global capacity, though Kilic said it was consuming about 395 megawatts after optimizing its fleet with more efficient machines. He said the company improved mining efficiency to about 16 joules per terahash, lowering its break-even cost of mining.
Kilic said HIVE is not currently allocating new capital expenditures to Bitcoin mining, after 2025 was focused on expanding in Paraguay. He said the company continues to manage the mining business to generate cash flow through volatility, noting that HIVE has maintained a positive mining margin quarter after quarter for six years.
AI and HPC Expansion Takes Center Stage
Management emphasized that 100% of HIVE’s growth focus this year is directed toward HPC and AI. Kilic said BUZZ, HIVE’s HPC and GPU cloud business, is generating CAD 35 million of annualized revenue today across 5,500 GPUs. The company is targeting CAD 200 million in annual recurring revenue from GPU cloud operations and CAD 660 million in total HPC-related annual recurring revenue when including colocation opportunities.
The company highlighted its partnership with Bell Canada, under which HIVE is deploying GPU clusters inside Bell AI Fabric data centers across Canada. Kilic said the partnership gives HIVE a faster, lower-capital path to scale GPU cloud revenue, while also providing access to Canadian enterprise clients seeking sovereign AI compute.
HIVE’s first Blackwell cloud in Canada is live in Winnipeg with 504 NVIDIA B200 GPUs. Kilic said the two-year contract tied to that cluster is valued at CAD 30 million, roughly equal to the cost of the GPUs, before operating expenses. He said that structure demonstrates strong demand for dedicated AI compute capacity.
The company also said it has memoranda of understanding for two larger GPU clusters: 2,304 GB200 GPUs and 2,088 GB300 GPUs. Kilic said each large cluster could add about CAD 65 million to CAD 70 million of annual recurring revenue once definitive agreements are signed. He estimated each cluster would require roughly CAD 170 million of capital, with financing potentially structured at about 80% loan-to-value, implying approximately CAD 34 million of equity contribution per cluster.
Greater Toronto “Gigafactory” Planned for 2028
A major focus of the call was HIVE’s planned AI gigafactory in the Greater Toronto Area. Kilic described the site as the “crown jewel” of the company’s Canadian sovereign AI strategy. He said the 25-acre site was acquired for CAD 58 million and is expected to support 100,000 GPUs.
Management said the project has a 320-megawatt gross capacity allocation, with an expected 240 megawatts of IT load assuming a 1.3 power usage effectiveness target. Kilic said the site is expected to be energized by the end of 2027 and live with compute in early 2028. He said HIVE expects the facility to generate about CAD 360 million of annual recurring revenue on a colocation basis.
Kilic said the project is expected to use more than 90% renewable energy and is being designed around closed-loop liquid cooling and a zero-water-use target. He also said the development will involve civil infrastructure improvements, including road widening and regional water line upgrades, and is expected to create skilled jobs in the region.
During the question-and-answer session, analysts asked for additional detail on power procurement and permitting for the Toronto-area project. Kilic said the power market is governed by provincial regulators overseeing generation and transmission, and that HIVE has been working on the project for more than a year. He declined to provide more granular permitting and interconnection details at this stage, telling analysts to “stay tuned” for future updates.
Capital Markets Activity Supports Expansion
Executive Chairman Frank Holmes and Kilic both discussed HIVE’s recent CAD 115 million offering of 0% exchangeable senior notes due 2031. Holmes said demand exceeded CAD 500 million and that the transaction introduced HIVE to additional U.S. institutional investors.
Kilic said the financing was important for funding GPU cloud expansion, particularly the down payments required for large GPU clusters. He contrasted the structure with an equity raise, saying the convertible note carried no coupon and included a capped call intended to limit dilution up to a higher share price level.
Holmes also highlighted HIVE’s move to the Toronto Stock Exchange main board and said institutional interest has increased as the company shifts toward AI infrastructure. He also discussed broader macro themes, including the rising demand for data centers, power, copper and GPU chips driven by AI buildouts.
Management Outlines Long-Term Valuation Ambitions
Kilic said HIVE has an 860-megawatt global footprint when including active capacity, the Toronto-area gigafactory and future phases in Paraguay. He said HIVE has more than 500 megawatts of global HPC power pipeline, including Canadian sites, Swedish capacity and 100 megawatts in Yguazú, Paraguay.
Management presented a sum-of-the-parts valuation framework comparing HIVE with peers in GPU cloud and HPC colocation. Kilic said that, if the company executes on its contracted revenue targets and secures leases for planned facilities, he sees a path toward a CAD 5 billion-plus enterprise value. He emphasized that the outlook depends on signing customer contracts, deploying GPUs and developing the company’s planned data center sites.
In closing, Daubaras said fiscal 2026 was a year of substantial growth, with higher revenue, an expanded infrastructure footprint and continued development of the HPC business. He said HIVE believes its investments position the company to benefit from demand for both digital asset infrastructure and high-performance computing capacity.
About HIVE Digital Technologies (NASDAQ:HIVE)
HIVE Digital Technologies Ltd is a publicly traded blockchain infrastructure company that specializes in the mining of digital assets such as Bitcoin and Ethereum. Using high-performance GPU and ASIC hardware, HIVE deploys proprietary mining rigs across multiple data centers to validate transactions on major blockchain networks. The company’s operations are designed to maximize hashing power while maintaining efficiency and uptime, enabling it to build and hold a portfolio of mined cryptocurrencies.
Headquartered in Vancouver, British Columbia, HIVE Digital operates data center facilities in North America and Europe, including Canada, Sweden and Iceland.
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