HIVE Digital Technologies (HIVE) Q1 2025 earnings summary

Executive summary

• Quarterly revenue reached $32.2 million, up 37% year-over-year, with adjusted EBITDA of $14.9 million and 449 Bitcoin mined post-halving.

• Net income was $3.3 million ($0.03/share), reversing prior losses, and gross operating margin improved to $11.4 million.

• Maintained positive gross mining and corporate margins, supported by strong balance sheet and digital asset holdings.

• Expanded operations with a 100 MW hydroelectric data center in Paraguay, targeting to double hash rate and revenue.

• AI/HPC business reached $10 million annualized run rate revenue, with targets of $20 million for H2 2024 and $100 million for 2025.

Financial highlights

• Q1 2025 revenue was $32.2 million, up from $23.6 million year-over-year, but down from $36.9 million sequentially due to the Bitcoin halving.

• Gross operating margin was $11.4 million (35%), up from $8 million (34%) year-over-year.

• Adjusted EBITDA was $14.9 million, compared to $16.2 million in the prior quarter.

• Net income of $3.3 million ($0.03/share) versus a net loss of $3.5 million in the prior quarter and $0.19/share loss last year.

• Cash position of $25.6 million and $153.9 million in digital currencies as of June 30, 2024.

Outlook and guidance

• Paraguay expansion expected to bring hash rate to over 12 EH/s by Q3 2025, with global fleet efficiency improving to 19.3 J/TH.

• AI/HPC business targets $20 million ARR for H2 2024 and $100 million for 2025.

• Plans to convert 30 MW of mining capacity to Tier 3 GPU infrastructure, targeting 20 MW of Tier 3 compute within 6-9 months.

• Continued focus on green energy sourcing and diversification into high-performance computing and AI services.