Bitcoin Miners HIVE and MARA Boost Output Yet See Revenue Decline Amid Price Drops
Despite ramping up Bitcoin production during the September quarter, HIVE and MARA faced declining mining revenues and escalating energy expenses while simultaneously pursuing AI infrastructure expansion.
Two major cryptocurrency miners, HIVE Digital Technologies and MARA Holdings, extracted greater quantities of Bitcoin during the September quarter compared to the same period last year, yet both companies experienced declining mining revenues as weakening Bitcoin valuations offset their production increases.
Based on their most recent regulatory disclosures, HIVE saw its Bitcoin production climb 49% to reach 1,070 Bitcoin (BTC), even as mining revenue declined 7.4% to $76 million. MARA demonstrated a comparable trend, with production advancing 5% to 2,247 BTC while Bitcoin mining revenue plummeted 34% to $159 million.
Each company experienced elevated power expenses and equipment-related costs. HIVE's electricity expenditures climbed 20% to reach $45.6 million, whereas MARA's purchased energy expenses grew 12% to $48.1 million as the company scaled up its proprietary mining operations.
HIVE additionally documented a $31.2 million noncash write-down on its mining equipment, pointing to "depressed mining economics" as justification, while MARA independently wrote off $12 million related to mining rigs and equipment as part of restructuring initiatives.
These financial outcomes contribute to mounting evidence of challenges facing Bitcoin mining profitability. American Bitcoin disclosed the previous week that it experienced compressed mining margins despite achieving a treasury-driven quarterly profit, whereas Core Scientific announced intentions to completely exit mining operations by the conclusion of the year.
HIVE and MARA expand AI businesses alongside mining
In contrast to Core Scientific's approach, both HIVE and MARA are maintaining their commitment to investing in Bitcoin mining operations while simultaneously developing artificial intelligence and high-performance computing capabilities.
HIVE's HPC hosting revenue surged 71% to reach $8.8 million during the September quarter, representing 10.4% of the company's total revenue. The organization has characterized its approach as blending cash flow generated from mining activities with stable recurring revenue streams from AI infrastructure services.
HIVE indicated it expects to allocate up to $493 million throughout a 36-month period to scale its HPC operations, encompassing land acquisition, data center infrastructure development and GPU procurement. According to the filing, the company had already invested $145.3 million toward this expansion initiative.
HIVE additionally intends to invest approximately $35 million in transforming its Toronto facility into a Tier-III data center. Concurrently, the company continues advancing its mining infrastructure expansion, aiming to complete a 100-megawatt substation expansion at its Yguazú location in Paraguay throughout 2026.
MARA is similarly building out AI infrastructure capabilities through its Exaion subsidiary and a collaborative arrangement with Starwood Digital Ventures. The company stated it aims to operate facilities capable of switching between different workloads based on economic factors, demand patterns and grid conditions, with Bitcoin mining serving as the core foundation of its operational platform.
Treasury gains lift MARA profit, HIVE reports quarterly loss
HIVE's Nasdaq-listed equity declined 1.7% to $1.78 during after-hours trading on Monday, based on Google Finance data, following a regular session that concluded with a 1.7% gain at $1.81.
The organization disclosed fiscal second-quarter revenue totaling $84.9 million, representing a 2.7% decrease from the prior year period but exceeding the $79.4 million consensus forecast published by MarketBeat.
Conversely, MARA disclosed net income attributable to common stockholders reaching $634.4 million, an increase from $123.1 million in the comparable year-earlier period, with the results incorporating significant fair-value gains on digital assets and digital asset receivables.
MARA announced quarterly revenue of $164.2 million, reflecting a 35% year-on-year decline, and diluted earnings of $1.28 per share, rising from 27 cents, while the company's shares remained relatively unchanged at $6.64 during after-hours trading on Monday following a 4.6% increase at the close.