HIVE Digital Sees Bitcoin Production Surge 49%, Yet Revenue Declines Amid Price Pressures
Despite a 49% increase in Bitcoin production during the September quarter, HIVE experienced a 7.4% revenue decline driven by reduced BTC valuations and elevated power expenses.
HIVE Digital Technologies, a prominent Bitcoin mining operation, managed to extract 49% more Bitcoin during the September quarter compared to the same period one year ago, yet the company's mining revenue declined as diminished Bitcoin valuations counterbalanced the production gains.
Based on the company's most recent regulatory disclosure, HIVE extracted 1,070 Bitcoin during the three-month period that concluded on Sept. 30, 2026, representing an increase from 718 Bitcoin produced in the corresponding quarter of the previous year. However, mining revenue decreased by 7.4% to $76 million due to the average Bitcoin price dropping to $71,003, down from $114,382 during the same quarter of the prior year.
The declining revenue figures occurred in conjunction with escalating energy expenditures. Power costs climbed to $45.6 million from $37.9 million as the company scaled up its worldwide mining operations. Additionally, HIVE recorded a noncash impairment charge of $31.2 million on its mining hardware, attributing the write-down to "depressed mining economics."
The financial results from HIVE contribute to mounting evidence of strain on Bitcoin mining profitability. American Bitcoin disclosed reduced mining margins last week despite posting a quarterly profit boosted by treasury operations, while Core Scientific announced its intention to exit the mining sector completely before the end of the year. HIVE has opted for an alternative strategy, growing its AI computing operations while simultaneously maintaining investments in Bitcoin mining activities.
During the most recent quarter, revenue from HIVE's HPC hosting segment climbed 71% to reach $8.8 million, representing 10.4% of the company's total quarterly revenue.
The company indicated it expects to allocate up to $493 million across a 36-month timeframe to scale its HPC business operations, encompassing land acquisition, data center infrastructure development and GPU procurement. As of the filing date, HIVE disclosed it had already deployed $145.3 million toward this expansion initiative.
The company additionally outlined plans to invest approximately $35 million in retrofitting its Toronto location into a Tier-III data center facility. At the same time, HIVE is advancing its mining infrastructure projects, with objectives to complete a 100-megawatt substation expansion at its Yguazú location in Paraguay throughout 2026.
HIVE shares fall after hours despite earnings beat
Shares of HIVE trading on the Nasdaq exchange declined 1.7% to $1.78 during after-hours trading on Monday, per Google Finance data, following a regular trading session that saw the stock climb 1.7% to close at $1.81.
For its fiscal second quarter, the company posted revenue totaling $84.9 million, representing a 2.7% decrease from the year-ago period but exceeding the $79.4 million consensus forecast compiled by MarketBeat.
On MarketBeat's analyst comparison metric, the company reported an adjusted per-share loss of 15 cents, outperforming analyst projections that called for a 16-cent loss. Under generally accepted accounting principles, HIVE's net loss reached $78.7 million, equivalent to 29 cents per share.