HIVE Q2 Revenue Reaches $84.9M as AI GPU Revenue Climbs 70%

HIVE Digital Technologies (TSX: HIVE; Nasdaq: HIVE; BVC: HIVECO) reported results on November 9, 2026, for the second quarter of fiscal 2027, ended September 30, 2026. Revenue reached $84.9 million, of which digital currency mining contributed $76.0 million and BUZZ HPC, the company’s AI computing business, contributed $8.8 million after growing 70.7% year over year. 

The quarter closed with a GAAP net loss of $78.7 million, which included substantial non-cash charges. Alongside the results, HIVE updated its contracted GPU Cloud revenue, its power capacity plans and its longer-term HPC targets, each subject to conditions set out in the release.

Q2 FY2027 Revenue and Margins

The release breaks the quarter into two revenue lines and two non-GAAP profitability measures:

• Digital currency revenue: $76.0 million, up 5.5% sequentially and down 7.4% year over year. HIVE received 1,070 Bitcoin in rewards, compared with 1,004 in Q1 FY2027, as average network difficulty declined to approximately 128 trillion from 135 trillion.

• HPC revenue: $8.8 million, up 25.3% sequentially and 70.7% year over year. HIVE attributes the growth mainly to an NVIDIA B200 GPU cluster deployed at its Manitoba, Canada, site, together with demand and pricing across GPU marketplaces.

• Gross operating margin (non-GAAP): $30.2 million, or 35.6% of revenue, compared with $24.2 million, or 30.6%, in Q1 FY2027.

• Adjusted EBITDA (non-GAAP): $24.8 million, or 29.2% of revenue, an 85% sequential increase.

• Selling, general and administrative expenses: $10.7 million, compared with $9.0 million in Q1 FY2027 and $7.8 million in Q2 FY2026. HIVE links the sequential rise mainly to the Merritt facility lease tied to its HPC expansion.

Non-Cash Charges in the $78.7 Million Net Loss

According to the release, the GAAP net loss of $78.7 million included substantial non-cash charges:

• Depreciation: $54.9 million.

• Equipment impairment: $31.2 million, following a recoverability assessment under U.S. GAAP. HIVE cites challenging Bitcoin mining economics and lower market values for ASIC equipment.

• Share-based compensation: $8.6 million.

• Derivatives: A $7.3 million fair-value loss. HIVE says the loss mainly reflected remeasurement of capped call transactions tied to its convertible notes, partly offset by gains on other derivative instruments.

HIVE ended the quarter with $139.0 million in cash and cash equivalents and $22.6 million in digital currencies.

Contracted GPU Cloud ARR and Power Capacity

HIVE reports approximately $185 million of contracted GPU Cloud annualized run rate revenue (ARR), of which approximately $40 million is live. Contracted ARR includes capacity not yet in service and is not equivalent to recognized revenue. Alongside the existing GPU Cloud platform, the figure covers two agreements:

• Bell AI Fabric supporting Cohere: An approximately $225 million, three-year agreement HIVE describes as sovereign AI, covering 2,304 NVIDIA GB200 NVL72 GPUs. CEO Aydin Kilic said the $129 million financing satisfied HIVE’s capital commitments for the cluster as of September 30, 2026. The GPUs had not shipped as of the release and are expected to ship before calendar year-end. The lender’s funds then move from escrow to the GPU manufacturer as milestones are met.

• Unnamed enterprise customer: An approximately $350 million, five-year agreement covering 2,016 NVIDIA GB300 NVL72 GPUs, with a customer HIVE describes as investment-grade.

On power, HIVE operates approximately 440 MW globally, including an approximately 300 MW Tier I platform in Paraguay, and HIVE’s Bitcoin operations represent approximately 2% of network hashrate. HIVE plans to energize a further 100 MW power purchase agreement at Yguazú in the fourth quarter of calendar 2026, which would bring its footprint to approximately 540 MW. The new 100 MW is unallocated. 

HIVE says it can direct the power to hashrate, AI or HPC workloads, depending on each use’s infrastructure and investment needs.

Targets, Pipeline and Conditions

Several figures in the release are targets or potential revenue rather than reported results:

• $200 million GPU Cloud ARR: HIVE is targeting approximately $200 million of GPU Cloud ARR by the fourth quarter of calendar 2026, subject to financing, market conditions, deployment schedules and customer acceptance. The release does not specify whether the target refers to live or contracted ARR.

• Big Boden colocation: HIVE has signed a letter of intent for long-term colocation at its 32 MW Big Boden facility in Sweden. Colocation is an arrangement where a business rents space in a data center to house its own servers, storage and networking hardware. HIVE puts the potential at approximately $45 million of annual revenue if definitive agreements are executed and the project enters service. The amount is not included in contracted GPU Cloud ARR.

• Tier III pipeline: Beyond calendar 2026, HIVE’s proposed Tier III development pipeline includes opportunities in New Brunswick, Toronto and Sweden, together with a planned 320 MW Greater Toronto Area Gigafactory.

• $700 million HPC ARR: Separately, management has identified a longer-term target of approximately $700 million in total HPC ARR by year-end 2028. HIVE describes the figure as a forward-looking target, not contracted revenue, dependent on financing, construction, customer commitments, commissioning and market conditions.

HIVE’s own footnote adds ARR projections may be unreliable as a predictor of future results, since such projections typically do not incorporate subsequent cancellations, discounts or downgrades.

Management Commentary

Executives framed the quarter around balance sheet protection and expansion across Canada, Sweden and Paraguay:

• Frank Holmes, Co-Founder and Executive Chairman: Holmes said revenue was broadly stable year over year despite lower Bitcoin prices, while HPC revenue increased more than 70%. He described Canada, Sweden and Paraguay as multiple avenues for growth. He also said HIVE believes “the US election-fear-related rhetoric” has contributed to negative sentiment toward data centers, and expects sentiment could stabilize over the following six months.

• Aydin Kilic, President and CEO: Kilic said HIVE’s primary objective is to protect its balance sheet and maintain cash flow and profitability. He said GPU demand remains very high, and GPU market prices at the time of the release exceeded contracted prices from six months earlier. Those prices are measured in dollars per GPU hour and vary by GPU model. Kilic said new US data center development may face resistance following political shifts after the midterm elections. He pointed to Ontario’s August 2026 data center playbook and to a commitment from the Premier’s office to approve new data centers sooner rather than later. Kilic added HIVE has 400 MW of utility load across Canada earmarked for Tier III data centers, of which over 320 MW is in Ontario.

• Darcy Daubaras, CFO: Daubaras named disciplined capital allocation, liquidity management and translating new capacity into sustainable operating performance as HIVE’s financial priorities.

• Craig Tavares, President and COO of BUZZ HPC: Tavares said HIVE’s AI data center footprint in Canada and Sweden could become increasingly valuable as political resistance and permitting delays constrain new computing capacity in the United States.

Share Issuance and Earnings Call

The release also reports equity sales and the call schedule:

• ATM sales: During the quarter, HIVE issued 13,698,085 common shares under its November 2025 at-the-market equity program for gross proceeds of approximately $43.2 million. Sales agents received a cash commission of $1.3 million.

• Earnings call: HIVE set its fiscal Q2 FY2027 earnings call for November 10, 2026, at 8:00 a.m. Eastern Time.

Next Steps

The release sets out several milestones still to be completed:

• GB200 shipment: HIVE anticipates the 2,304 GB200 GPUs for the Cohere agreement will ship before calendar year-end 2026, with lender funds released from escrow as milestones are met.

• Fourth quarter of calendar 2026: The 100 MW Yguazú energization and the $200 million GPU Cloud ARR target both fall in this quarter.

• Big Boden: The opportunity remains at the letter-of-intent stage pending definitive agreements.

• GB300 customer: The release does not name the customer behind the five-year GB300 agreement.

Further reading: HIVE Names AI Revenue Chief as Daily Revenue Tops 1M