HIVE Swings to $142.9 Million Loss on Swedish Tax Charge, Cash Jumps
HIVE Digital Technologies posted a $142.9 million net loss driven by an $84.7 million non-cash provision for contested Swedish VAT assessments, even as revenue rose 73.5% to $79.1 million.
HIVE Digital Technologies (HIVE) reported a GAAP net loss of $142.9 million for its fiscal first quarter, a reversal from net income of $35.0 million a year earlier, after the bitcoin miner and high-performance-computing operator recognized an $84.7 million non-cash provision tied to contested Swedish VAT assessments. The charge followed adverse rulings from the Swedish Court of Appeal and had no counterpart in any of the three prior quarters shown. Depreciation of $53.7 million, stock-based compensation of $7.1 million and a $7.1 million adverse change in derivative fair value also weighed on the results.
The loss came even as HIVE's underlying business expanded. Total revenue reached $79.1 million, up 73.5% from a year earlier and 10.2% from the fourth fiscal quarter's $71.816 million. Digital currency mining revenue rose to $72.1 million, up 76.6% year-over-year, as bitcoin production climbed to 1,004 BTC from 406 BTC and average operational hashrate expanded to 24.0 EH/s from 8.7 EH/s. HPC revenue under the company's BUZZ brand grew to $7.1 million, up 46.7% year-over-year and 52.1% sequentially, on the deployment of NVIDIA B200 GPU clusters in Manitoba and stronger GPU marketplace demand.
Profitability metrics improved sequentially but remained below levels reached earlier in the fiscal year. Gross operating margin rose by 53% from the prior quarter to $24.2 million, or 30.6% of revenue, from $17.5 million, or 24.4%, in the fourth fiscal quarter, but stayed below the $32.1 million posted in the third fiscal quarter and the $42.4 million posted in the second. Adjusted EBITDA returned to positive territory at $13.4 million, or 17.0% of revenue, reversing a negative $9.0 million in the prior quarter, though it remained well short of the $31.5 million and $44.6 million posted two and three quarters earlier, respectively. SG&A eased slightly to $9.0 million from $9.4 million sequentially but was up from $5.8 million a year earlier.
HIVE's balance sheet shifted sharply during the quarter. Cash and cash equivalents surged to $208.0 million as of June 30 from $23.1 million as of March 31, largely on $199.2 million raised through convertible debenture issuance. That financing produced a new $234.9 million convertible loan liability, tied to the $115 million 0% exchangeable senior notes due 2031 that the company upsized from $100 million and closed on June 30. Total assets nearly doubled to $924.6 million from $639.1 million, while total liabilities more than quadrupled to $501.9 million from $109.8 million, reflecting the new convertible debt and a jump in accrued liabilities to $118.4 million from $27.0 million. Total equity fell to $422.7 million from $529.4 million as the accumulated deficit widened to $565.2 million from $422.3 million, despite $37.1 million of new paid-in capital from at-the-market share issuances.
On the HPC contracting front, contracted GPU Cloud annual recurring revenue rose to approximately $110 million from about $35 million currently live, after HIVE added $75 million of new ARR through its roughly $225 million, three-year agreement with Bell AI Fabric and Cohere covering 2,304 NVIDIA GB200 NVL72 GPUs — up from the roughly $220 million total contract value first disclosed the previous quarter. The HPC ARR pipeline expanded further to approximately $155 million with a signed letter of intent for a new roughly $45 million colocation opportunity at the 32-megawatt Big Boden, Sweden facility, following an earlier non-binding letter of intent for the same site that had not specified a dollar figure.
HIVE reiterated a target of approximately $200 million in GPU Cloud ARR by the fourth calendar quarter of 2026 and disclosed for the first time a longer-term goal of approximately $700 million in total HPC ARR by year-end 2028. Global power capacity stood at approximately 440 megawatts and is expected to reach approximately 540 megawatts following the planned energization of an additional 100-megawatt power purchase agreement at its Yguazú site in the fourth calendar quarter.