HIVE’s AI revenue rose 71%, but bitcoin mining still supplied 90% of sales

HIVE Digital Technologies’ high-performance-computing revenue grew 70.7% from a year earlier in its fiscal second quarter, but bitcoin mining still generated almost nine-tenths of the company’s sales. The split shows how far the publicly traded miner must travel before artificial-intelligence infrastructure materially changes its financial exposure to bitcoin mining.

The company announced the results on November 9 and filed its quarterly report with the U.S. Securities and Exchange Commission on November 10. The unaudited accounts cover the three months ended September 30, not current November operations.

HIVE reported $84.9 million of quarterly revenue, including $76 million from digital-currency mining and $8.8 million from high-performance-computing hosting. Based on the amounts in the SEC filing, Coinburn calculates that mining supplied 89.6% of revenue and computing hosting supplied 10.4%. Those percentages describe the quarter’s revenue mix; they do not measure capacity, contracted backlog or future earnings.

AI grew from a small base

Computing-hosting revenue increased from $5.2 million in the comparable 2025 quarter. HIVE attributed the increase principally to revenue recognition from a two-year contract that it announced in February and said provides $1.25 million of gross monthly recurring revenue.

The filing reported a $4.5 million gross operating margin for the computing business, compared with $2.4 million a year earlier. That measure excludes depreciation and is not a U.S. GAAP margin. Marketplace service fees and operating costs are deducted, but the substantial depreciation associated with data-center equipment is not.

HIVE’s broader gross operating margin was $30.2 million, or about 36% of revenue, before depreciation. After $54.9 million of quarterly depreciation, the company recorded a $24.7 million GAAP gross loss, reversing a $4.1 million gross profit in the comparable quarter. The distinction matters because data centers, mining machines and GPU systems require substantial capital expenditure and lose accounting value over time.

Mining remained the financial center

Digital-currency revenue declined 7.4% from $82.1 million a year earlier even though HIVE received 1,070 bitcoin in mining rewards, up from 718. The company attributed the revenue decline to a lower average bitcoin price during the quarter: $71,003, compared with $114,382 in the year-earlier period. Those are company-reported quarterly averages used in its operating analysis, not spot-price observations for November 11.

HIVE also reported a mining gross operating margin of $25.7 million, down from $40 million a year earlier. The measure excludes depreciation and therefore should not be read as GAAP mining profit. The filing said the company recognized a $31.2 million noncash impairment after concluding that depressed mining economics left the carrying value of certain mining equipment above its recoverable amount.

During the quarter, HIVE sold digital currencies for $70 million in cash and recognized a $1.8 million realized gain. It ended September with digital currencies valued at $22.6 million, including $22.4 million of bitcoin. The balance-sheet valuation is a September 30 snapshot and will fluctuate with asset prices and subsequent transactions.

What the quarter establishes

The results establish that HIVE’s computing-hosting operation is growing faster than its mining business, but not that the company has completed an AI pivot. Mining still supplied nearly 90% of quarterly revenue and most of the company’s pre-depreciation operating margin.

Future comparisons will depend on the utilization and pricing of HIVE’s GPU infrastructure, the durability of its computing contracts, bitcoin prices, network difficulty, electricity costs and further equipment depreciation. The September quarter provides a measured transition point—not evidence that AI revenue has displaced bitcoin mining as HIVE’s primary business.