HIVE Digital Technologies delivered a record fiscal third quarter despite weaker Bitcoin prices, suggesting that its expansion into artificial intelligence and high-performance computing is offsetting broader crypto-market headwinds.
For the quarter ended Dec. 31, 2025, HIVE reported $93.1 million in revenue, a 219% increase from a year earlier. Gross operating margin expanded more than sixfold year over year to $32.1 million, representing about 35% of revenue.
The strong performance came even as Bitcoin (BTC) prices declined about 10% during the quarter and network difficulty rose about 15%, conditions that have pressured mining margins across the industry following the 2024 halving.
HIVE generated 885 Bitcoin during the period, a 23% quarter-on-quarter increase, while scaling its installed hashrate to 25 exahashes per second (EH/s).
Beyond mining, the company continues to build out its AI and high-performance computing (HPC) business. In February, HIVE signed a two-year, $30 million contract to deploy 504 Nvidia B200 GPUs for enterprise AI cloud services.
The deal is expected to add about $15 million in annual recurring revenue and lift HIVE’s HPC annualized revenue run rate by about 75%.
The company is targeting $140 million in annual recurring AI cloud revenue by the fourth quarter of 2026, as part of a broader plan to scale total HPC revenue to $225 million as it expands GPU cloud and colocation capacity.
Related: Bitcoin mining’s 2026 reckoning: AI pivots, margin pressure and a fight to survive
HIVE’s expansion beyond Bitcoin mining gains traction
HIVE was among the early publicly listed Bitcoin miners, but it began pivoting toward HPC infrastructure several years ago as management anticipated increasing competition and margin compression in the mining sector.
That diversification has become increasingly relevant. Mining profitability deteriorated sharply after the 2024 halving reduced block rewards, while rising network difficulty and volatile Bitcoin prices added further pressure. The environment intensified after Bitcoin retraced from its October 2025 highs, forcing many miners to reassess capital allocation and infrastructure strategy.
HIVE’s “dual-engine” model, using Bitcoin mining as a cash-flow generator while building recurring AI and HPC revenue, reflects a broader shift among publicly traded miners seeking stability beyond Bitcoin’s price cycles.
Several other Bitcoin miners, including IREN and TeraWulf, have shifted toward AI workloads, reflecting a growing view among analysts that the next infrastructure “supercycle” will be powered by artificial intelligence rather than crypto.
Related: Paradigm reframes Bitcoin mining as grid asset, not energy drain
