HIVE Digital Technologies .(HIVE) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - HIVE Digital Technologies reported $29 million in revenue for the quarter, with a gross operating margin of$6.1 million, resulting in a 21% operating margin [58] - The company achieved an adjusted EBITDA of $17.3 million and mined 2,805 Bitcoin, all sourced from green energy, with no debt on these assets [59] - The annualized Return on Invested Capital (ROIC) reached 37$10 million in annualized revenue this quarter, with a target of $20 million [65][112] Market Data and Key Metrics Changes - HIVE's market cap is currently under$400 million, with projections indicating potential cash flows of over $500 million if Bitcoin reaches$150,000 [78][80] - The company is positioned to benefit from the growing adoption of Bitcoin ETFs, with significant assets flowing into this market [40][41] Company Strategy and Development Direction - HIVE is relocating its head office from Vancouver to San Antonio to align with a pro-crypto regulatory environment and enhance operational efficiencies [54][30] - The acquisition of Bitfarms facilities will enhance HIVE's operating capacity in Paraguay to 300 megawatts, significantly increasing its mining hashrate [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future of Bitcoin, citing historical trends of price increases following halving events, with expectations for Bitcoin to reach between $120,000 and$180,000 in 2025 [81] - The company is optimistic about the supportive regulatory environment under the new U.S. administration, which is expected to bolster the crypto industry [29][30] Other Important Information - HIVE's HODL (Hold On for Dear Life) Bitcoin balance has increased to 2,805 Bitcoin, reflecting a 4x growth year-over-year [99] - The company has maintained the lowest dilution across its peer set while achieving the highest growth prospects in the industry [102] Q&A Session Summary Question: What is HIVE's strategy for growth in the current market? - HIVE is focusing on expanding its hashrate to 25 exahash by September 2025 and is strategically acquiring facilities to enhance its operational capacity [64][48] Question: How does HIVE plan to manage costs and maintain profitability? - The company emphasizes disciplined capital deployment and maintaining low G&A costs per Bitcoin mined, which has been effective even during bear markets [96][97] Question: What are the expectations for Bitcoin prices in the near future? - Management anticipates Bitcoin could reach between $120,000 and$180,000, driven by historical trends and current market dynamics [81]