HIVE Digital Technologies reported a sharp rise in Bitcoin output for the quarter ended September 30, 2026, producing 1,070 BTC—up 49% from the same period a year earlier—but its mining revenue declined 7.4% to $76 million, according to the firm’s latest regulatory filing. The revenue dip reflects a fall in Bitcoin’s average price, which slipped to $71,003 from $114,382 a year earlier, offsetting the production gains.

BTC / USD
Source: CoinGecko. Prices are indicative.

Higher Production, Higher Costs

The increase in mined Bitcoin came as HIVE expanded its global mining footprint, driving electricity expenses up to $45.6 million from $37.9 million year‑over‑year. The company also recorded a $31.2 million non‑cash write‑down on mining equipment, citing “depressed mining economics.” Despite the higher output, the combined effect of lower BTC prices and rising power bills squeezed margins, mirroring broader pressure across the Bitcoin mining sector.

Shift Toward AI and HPC Services

While mining revenue fell, HIVE’s high‑performance computing (HPC) hosting segment grew 71% to $8.8 million, representing 10.4% of total quarterly revenue. The firm plans to invest up to $493 million over the next 36 months to expand its AI‑focused data center infrastructure, including a $35 million conversion of its Toronto facility into a Tier‑III data center and a $145.3 million spend already recorded. HIVE also targets a 100‑megawatt substation expansion at its Yguazú site in Paraguay during 2026, underscoring a dual strategy of scaling both mining and AI compute capacity.

Market Reaction and Outlook

Following the earnings release, HIVE’s Nasdaq‑listed shares slipped 1.7% in after‑hours trading, settling at $1.78 after closing the regular session up 1.7% at $1.81. Analysts noted that while the company beat revenue estimates—$84.9 million versus the $79.4 million consensus—its GAAP net loss widened to $78.7 million, or 29 cents per share. The mixed results highlight the tension between expanding mining operations and the profitability challenges posed by volatile Bitcoin prices.

What to Watch Next

Investors will be monitoring Bitcoin’s price trajectory and its impact on HIVE’s mining margins, as well as the rollout of the company’s AI‑centric data centers. Updates on the Paraguay substation expansion and the Toronto Tier‑III conversion will indicate how effectively HIVE can diversify revenue streams while maintaining its position in the competitive mining landscape.