HIVE Digital Technologies .(US:HIVE)2026-02-17 11:10Revenue and Income - Revenue from digital currency mining for the three months ended December 31, 2025, was $88,225,000, a significant increase of 230% compared to $26,687,000 for the same period in 2024[5] - Total revenue for the nine months ended December 31, 2025, reached $225,975,000, up 169% from $84,118,000 in the same period of 2024[5] - The company reported a net loss of $90,831,000 for the three months ended December 31, 2025, compared to a net income of $68,283,000 for the same period in 2024[5] - The net loss for the nine months ended December 31, 2025, was $72,108,000, compared to a net income of $49,952,000 for the same period in 2024[11] - Revenue recognized from digital currency mined was $211,095,000 for the nine months ended December 31, 2025, up from $77,088,000 in the prior year, indicating a significant increase in mining activity[11] Assets and Liabilities - Total assets increased to $623,995,000 as of December 31, 2025, compared to $531,598,000 as of March 31, 2025, reflecting a growth of 17.3%[4] - Current liabilities decreased to $52,289,000 as of December 31, 2025, down from $65,957,000 as of March 31, 2025, a reduction of 20.8%[4] - The company’s cash position decreased to $14,069,000 as of December 31, 2025, from $23,375,000 as of March 31, 2025, a decline of 40%[4] - Digital currencies held by the company dropped significantly to $42,101,000 as of December 31, 2025, from $181,146,000 as of March 31, 2025, a decrease of 76.8%[4] - As of December 31, 2025, the Company reported marketable securities valued at $9.001 million, down from $21.016 million as of March 31, 2025[33] Shareholder Equity and Stock - The company’s additional paid-in capital increased to $897,030,000 as of December 31, 2025, compared to $716,708,000 as of March 31, 2025, an increase of 25.2%[4] - The weighted average number of common shares outstanding increased to 239,036,198 for the three months ended December 31, 2025, compared to 128,602,843 for the same period in 2024[5] - The company reported a basic loss per share of $0.38 for the three months ended December 31, 2025, compared to a basic income per share of $0.53 for the same period in 2024[5] - The Company issued 53,540,585 common shares for gross proceeds of $119.2 million under the Amended October 2024 ATM Equity Program[86] - The Company entered into a new equity distribution agreement allowing for the sale of up to $300 million of common shares under the November 2025 ATM Equity Program[87] Expenses and Costs - Digital currency mining costs for the three months ended December 31, 2025, amounted to $57,785,000, compared to $21,836,000 for the same period in 2024, reflecting a significant increase[109] - Total operating and maintenance costs for the nine months ended December 31, 2025, were $133,132,000, up from $66,372,000 in the prior year[109] - General and administrative expenses for the three months ended December 31, 2025, totaled $8,447,000, compared to $4,564,000 for the same period in 2024, indicating a substantial increase[108] - Share-based compensation expenses increased to $18,220,000 for the nine months ended December 31, 2025, from $6,249,000 in the prior year[11] Acquisitions and Investments - The company completed an acquisition of Megawatt Mining, resulting in a cash outflow of $9,249,000[11] - The Company completed the acquisition of Zunz S.A. for a total consideration of $63.952 million, including $25 million cash paid upfront and $31 million payable over six months[29] - The Company also acquired real property and shares of Megawatt Mining Corp. for a total consideration of $13.167 million, which included $9.2 million in cash and 1 million common shares[31] - The Company recognized $201,836,000 in equipment deposits or purchases paid with Bitcoin during the nine months ended December 31, 2025[110] Tax and Regulatory Matters - The Company is facing a contingent VAT liability of approximately $79.2 million related to assessments from the Swedish Tax Agency covering the period from December 2020 to December 2024[75] - As of December 31, 2025, the Company has not recorded any amounts payable to the Swedish Tax Agency in connection with the VAT decisions[78] - The Company is exploring options such as a bank guarantee or insurance regarding a VAT payment of approximately $9.4 million called by the Swedish Tax Agency[79] Cash Flow and Financing - Cash provided by operating activities was $45,601,000 for the nine months ended December 31, 2025, compared to cash used of $35,006,000 in the same period of 2024[11] - The Company incurred a cash flow of $2.420 million from operating leases for the nine months ended December 31, 2025[73] - The Company raised $156,300,000 through shares offering during the nine months ended December 31, 2025[11] Market and Risk Factors - The fair value of the company's digital currencies is highly volatile, with a 5% variance in Bitcoin price impacting earnings before tax by $2,096 thousand[121] - The company has not hedged the conversion of any of its coin sales or future mining of digital currencies, exposing it to market price fluctuations[119] - The Company has a credit risk exposure primarily related to cash held in bank accounts, with a concentration in one major Canadian bank[39] Management and Compensation - Key management compensation for the three months ended December 31, 2025, was $0.6 million, an increase from $0.2 million in the same period of 2024[81] - Stock-based compensation expense for the nine months ended December 31, 2025, totaled $18.22 million, compared to $6.25 million in the same period of 2024[95] Other Financial Metrics - The Company has a total of 2,875,000 outstanding warrants as of December 31, 2025, with an exercise price of C$6.00 and an expiry date of December 28, 2026[59] - The Atlantic Term Loans total $11.0 million (C$13.6 million) with an interest rate of 3.33% per annum, maturing on June 30, 2024[65] - The right of use assets as of December 31, 2025, had a net carrying value of $4.122 million, down from $5.546 million on March 31, 2025[72]