HIVE Digital Technologies increased bitcoin production in the quarter ended September 30, 2026, but lower prices and higher power costs weighed on mining revenue. The company mined 1,070 bitcoin, up 49% year over year, while mining revenue fell 7.4% to $76 million. The results show how higher output can be outweighed by weaker prices and rising operating costs.
Lower bitcoin prices offset higher production
HIVE mined 718 bitcoin in the same quarter a year earlier. The average bitcoin price during the latest quarter was $71,003, down from $114,382 a year earlier. That decline offset part of the revenue gain from increased production, reducing income from mining.
Power costs also rose as global mining capacity expanded. HIVE's electricity expense increased to $45.6 million from $37.9 million. The company also recorded a $31.2 million non-cash impairment on mining equipment, citing weak mining economics. Together, the higher power bill and equipment write-down underline the cost pressures facing miners as operating conditions and the profitability of their hardware change.
HIVE is not alone in facing pressure on mining margins. American Bitcoin's quarterly results last week showed weak mining profitability, despite the company posting a quarterly profit supported by its asset reserves. Core Scientific, meanwhile, said it plans to exit bitcoin mining entirely by year-end. The companies are taking different approaches to reshaping their businesses: HIVE continues to invest in bitcoin production while expanding its high-performance computing (HPC) and artificial intelligence operations.
HPC revenue grows as HIVE funds expansion
HIVE's HPC hosting revenue rose 71% year over year to $8.8 million, accounting for 10.4% of quarterly revenue. The company expects to invest up to $493 million in its HPC business over the next 36 months, including spending on land, data-center infrastructure and GPUs. As of the date specified in its filing, HIVE had invested $145.3 million in the expansion.
The company also plans to spend about $35 million converting its Toronto facility into a Tier III data center. At the same time, it is continuing to expand its mining infrastructure. HIVE aims to increase the substation capacity at its Yguazú site in Paraguay by 100 megawatts in 2026.
Revenue beats estimates, but HIVE posts $78.7 million loss
HIVE's Nasdaq-listed shares rose 1.7% to $1.81 during regular trading on Monday, then fell 1.7% to $1.78 after hours. The company reported second-quarter revenue of $84.9 million, down 2.7% year over year but above analysts' consensus estimate of $79.4 million.
On an adjusted basis, HIVE lost 15 cents per share, slightly less than the 16-cent loss expected by the market. Under U.S. generally accepted accounting principles (GAAP), the company reported a net loss of $78.7 million, or 29 cents per share. Revenue above estimates did not change the fact that HIVE remained loss-making, with bitcoin prices, electricity expenses and HPC expansion spending continuing to shape its results.