HIVE Delivers Record Q3 Revenue of $93.1 Million with $32.1 Million Gross Operating Margin, Up Over 6x Year-Over-Year

Core Insights - HIVE Digital Technologies Ltd. reported record quarterly revenue of $93.1 million for Q3 FY2026, marking a 219% year-over-year growth and a 7% increase quarter-over-quarter [3][8] - The company achieved a significant gross operating margin of $32.1 million, representing 34.5% of revenue, which is more than six times the margin from the same period last year [3][8] - HIVE's growth is attributed to the expansion of its Bitcoin hashrate fleet to 25 Exahash per Second (EH/s) and increasing demand for its BUZZ HPC platforms [4][7] Financial Performance - Total revenue reached $93.1 million, up from $29.2 million in Q3 FY2025, with digital currency hashrate revenue contributing $88.2 million [8] - The gross operating margin increased to $32.1 million from $5.3 million in the prior year, reflecting a substantial improvement in operational efficiency [3][8] - The company generated 885 Bitcoin during the quarter, a 23% increase from the previous quarter, despite a 15% rise in network difficulty [8] Strategic Developments - HIVE is positioning itself for growth in AI and high-performance computing (HPC) by expanding its infrastructure in Paraguay, which is expected to become a leader in HPC for Latin America [7][10] - The company signed a 2-year, $30 million contract for 504 Nvidia B200 GPUs, which is expected to significantly boost its annual recurring revenue (ARR) from HPC services [8][9] - HIVE's dual-engine strategy combines Bitcoin infrastructure as a cash generator with BUZZ AI Cloud as a high-growth platform, providing diversification and flexibility in capital allocation [10] Operational Highlights - The company operates 440 megawatts (MW) of hydro-powered capacity and has plans to expand by an additional 100 MW in Paraguay [8] - HIVE's gross operating margin percentage improved to 35% from 18% in the same quarter last year, indicating effective cost management and operational scaling [8][17] - General and administrative expenses increased to $8.4 million, reflecting the hiring of additional staff to support global expansion, but grew at a slower rate than gross operating margin [8][9]