HIVE Digital Technologies .(US:HIVE)2025-11-17 14:16Revenue Performance - Revenue from digital currency mining for the three months ended September 30, 2025, was $82,073,000, a 296% increase from $20,765,000 in the same period of 2024[6] - Total revenue for the six months ended September 30, 2025, reached $132,864,000, compared to $54,889,000 for the same period in 2024, representing a 142% increase[6] - For the six months ended September 30, 2025, HIVE Digital Technologies Ltd. reported a net income of $19,219,000, a significant improvement from a net loss of $18,208,000 in the same period of 2024[8] - The revenue from digital currency mining for the period ended September 30, 2025, was $122,870 million, a substantial increase from $50,401 million in the same period of 2024, representing a growth of approximately 143%[110] - The total revenue from high-performance computing hosting for the period ended September 30, 2025, was $9,994 million, compared to $4,488 million in the same period of 2024, indicating an increase of about 123%[110] Financial Position - Total assets as of September 30, 2025, were $692,971,000, an increase from $531,598,000 as of March 31, 2025[5] - The company’s total equity increased to $624,599,000 as of September 30, 2025, up from $449,137,000 as of March 31, 2025[5] - Digital currencies held by the company decreased to $24,364,000 as of September 30, 2025, from $181,146,000 as of March 31, 2025[5] - Marketable securities increased to $21,815 million as of September 30, 2025, up from $21,016 million on March 31, 2025, reflecting a growth of approximately 3.8%[29] - The net carrying value of property and equipment increased to $464,327 million as of September 30, 2025, up from $202,848 million on March 31, 2025, representing a growth of about 129%[39] Expenses and Losses - The company reported a net loss of $15,797,000 for the three months ended September 30, 2025, compared to a net income of $80,000 in the same period of 2024[6] - Operating expenses for the three months ended September 30, 2025, were $12,671,000, compared to $3,829,000 for the same period in 2024[6] - General and administrative expenses for the three months ended September 30, 2025, were $7,800, compared to $3,381 in the same period of 2024, reflecting a significant increase[94] - Operating and maintenance costs for the three months ended September 30, 2025, totaled $44,065, up from $21,903 in the same period of 2024[95] - Stock-based compensation expense for the six months ended September 30, 2025, was $11,222 million, compared to $2,723 million for the same period in 2024, indicating a significant increase[83] Cash Flow and Investments - Cash flows from operating activities resulted in a net cash used of $(384,000), a notable improvement from $(6,542,000) in the same period last year[8] - HIVE Digital Technologies Ltd. reported net cash used in investing activities of $(108,101,000), compared to $(27,971,000) in the prior year, reflecting increased investment activity[8] - The company ended the period with cash and cash equivalents of $22,643,000, down from $23,375,000 at the beginning of the period[8] - The company recognized non-cash transactions of $201,836 for equipment deposits or purchases paid with BTC during the six months ended September 30, 2025[96] Shareholder Activity - The company issued 38,109,822 shares in a recent offering, raising $68,169,000[7] - The basic loss per share for the three months ended September 30, 2025, was $0.07, compared to $0.00 in the same period of 2024[6] - The Company raised gross proceeds of $117.2 million from the issuance of 53,017,807 shares under the Amended October 2024 ATM Equity Program[79] - The average price per share sold under the Amended October 2024 ATM Equity Program was $2.21 (C$3.03)[79] - The Company issued 15,266,061 shares for gross proceeds of $25.9 million under the October 2024 ATM Equity Program[78] Debt and Liabilities - Current liabilities decreased to $53,614,000 as of September 30, 2025, from $65,957,000 as of March 31, 2025[5] - The company incurred a loan payable of $14.053 million as of September 30, 2025, with a maturity date of December 31, 2035[58] - The Atlantic Term Loans total $11 million, with a current balance of $2.857 million as of September 30, 2025, and an interest rate of 4.39% for Term Loan 1[59][63] - The company is in compliance with the amended required debt service coverage ratio covenant, maintaining a ratio of 1.50:1[63] Market and Operational Insights - The company operates data centers for high-performance computing and cryptocurrency mining, indicating a focus on infrastructure solutions in the digital currency space[9] - The Company operates in one segment with two revenue streams: mining and sale of digital currencies and high-performance computing hosting, with net income as the primary measure of profit or loss[108] - No single customer or related group of customers contributed 10% or more of the Company's total consolidated revenue during the three and six months ended September 30, 2025, indicating a diversified revenue base[111] - The Company has not hedged the conversion of any of its coin sales or future mining of digital currencies, which may expose it to market price volatility[105] Management and Compensation - Key management compensation for the three months ended September 30, 2025, totaled $0.6 million, an increase from $0.3 million in the same period of 2024[74] - The company granted a total of 6,050,000 Restricted Share Units (RSUs) during the year, increasing the balance to 11,389,971 RSUs as of September 30, 2025[90] - The fair value of RSUs granted on April 17, 2025, was C$2.05 per share, and on July 8, 2025, it was C$3.03 per share[88][89] Tax and Contingencies - The Company is facing a contingent VAT liability of approximately $79 million related to assessments from the Swedish Tax Agency, covering the period from December 2020 to December 2024[69] - The Company has not recorded any amounts payable to the Swedish Tax Agency as of September 30, 2025, in connection with the VAT assessments[72]