Strong operational growth in Bitcoin mining and HPC boosts top line, but Q4 net loss signals margin volatility

HIVE Digital Technologies (NASDAQ: HIVE) concluded its fiscal year ending March 31, 2025, with total revenue of $115.3 million and an adjusted EBITDA of $56.2 million. The report, published June 25, 2025, reflects both strategic growth and sector-related challenges. The company mined 1,414 Bitcoins during the year, expanded its operational hashrate by 40%, and tripled its AI-related GPU cloud revenue. However, a $52.9 million GAAP net loss in Q4 underscored the volatile dynamics of the crypto sector and its accounting practices.

Strong Revenue Performance Amid a Challenging Mining Environment

HIVE’s total revenue in FY2025 reached $115.3 million, a modest year-on-year gain considering the turbulent conditions in the Bitcoin mining industry. This included $105.2 million from digital currency mining and $10.1 million from high-performance computing (HPC) and AI hosting services. The 5.2% decline in crypto mining revenue was largely due to the April 2024 Bitcoin halving event, which cut block rewards and increased hash rate difficulty across the network. HIVE partially offset this impact by increasing its hashrate from 4.5 EH/s in March 2024 to 6.3 EH/s by March 2025, a 40% operational improvement that also benefited from rising Bitcoin prices.

The company’s AI and cloud division, Buzz HPC, stood out as a growth driver. HPC revenues surged from $3.4 million in FY2024 to $10.1 million in FY2025, marking a threefold increase. This reflects the rapidly growing demand for GPU-based compute services to support AI workloads. With over 5,000 GPUs deployed and further expansion underway, Buzz HPC is emerging as a vital component of HIVE’s diversification strategy.

Q4 Highlights Reflect Macro Sensitivities

For Q4 FY2025 alone, HIVE reported $31.2 million in revenue, of which $28.1 million came from digital mining activities. This marked a 5.5% sequential increase, driven by improved hashrates and a slight recovery in Bitcoin spot prices. However, the company reported a GAAP net loss of $52.9 million for the quarter, primarily due to non-cash revaluation losses of $26.4 million on held digital assets and a $6.7 million unrealized loss on equity investments.

Buzz HPC generated $3.0 million in quarterly revenue, up 18.5% from Q3, reinforcing its role as a high-margin business unit. Gross margins in the quarter stood at $8.8 million, representing 28.2% of revenue, up from 21.8% for the full year.

Strategic Investments in Green Energy and Infrastructure

The company’s FY2025 results were bolstered by strategic investments in green energy-powered mining infrastructure. Notably, HIVE expanded its Paraguay footprint to 300 megawatts (MW), acquiring 100 MW in Valenzuela and 200 MW in Yguazú. As of June 2025, 100 MW at Yguazú were already operational, two weeks ahead of schedule. Management expects this will support hashrate scaling to 25 EH/s by the end of 2025, more than quadrupling from March levels.

Frank Holmes, Co-Founder and Executive Chairman, emphasized HIVE’s commitment to shareholder value through disciplined, high-return investments powered by renewable energy. President and CEO Aydin Kilic pointed to strong return on invested capital (ROIC) of 22% over the last 12 months and reiterated the goal of increasing Bitcoin production while maintaining low administrative overhead.

Transition to US GAAP and Enhanced Financial Transparency

Another important development during the fiscal year was HIVE’s shift from IFRS to US GAAP for financial reporting. CFO Darcy Daubaras noted this transition improves comparability with U.S.-listed peers and aligns with the company’s capital market ambitions. As of March 31, 2025, HIVE held digital assets worth $181.1 million, including 2,201 Bitcoins.

This financial transformation coincides with strategic execution on infrastructure expansion and AI diversification. According to management, the funding for the entire 300 MW buildout in Paraguay has been secured, and production cost efficiencies are expected to support stronger cash flow metrics going forward.

Comparative Industry Positioning

HIVE’s annual hashrate growth and green energy focus place it ahead of many mid-tier competitors. While the 5.2% decline in mining revenue might seem concerning at first glance, the firm’s ability to offset these effects with infrastructure scale-up and new revenue from Buzz HPC demonstrates business model resilience. In contrast, smaller miners struggled more significantly post-halving, often forced to idle machines or sell assets.

Furthermore, the company’s pivot to AI-oriented services aligns with broader macro trends. GPU cloud demand is accelerating globally, with enterprise clients seeking alternatives to hyperscalers. HIVE’s ability to service this segment at scale while maintaining Bitcoin operations could become a structural advantage.

Risks and Outlook

Despite positive momentum, challenges remain. The Q4 net loss underscores the balance sheet impact of mark-to-market accounting for crypto assets. With Bitcoin still highly volatile, earnings remain sensitive to market conditions. In addition, execution risks tied to Paraguay’s large-scale buildout – from supply chain to local regulatory factors – should not be ignored.

Nonetheless, HIVE projects further strength. As of June 2025, hashrate had already reached 11.5 EH/s, and daily Bitcoin production rose to 5.5 coins. With full Paraguay commissioning and Bitmain S21+ Hydro machines expected by year-end, reaching 25 EH/s looks achievable.

Buzz HPC also remains on a strong trajectory. With current record revenues and broader AI GPU tailwinds, this segment could represent a larger share of total income by FY2026.

Conclusion and Forward-Looking Summary

FY2025 was a pivotal year for HIVE Digital Technologies. The company strengthened its Bitcoin mining operations, posted significant gains in its AI-focused GPU cloud segment, and advanced major infrastructure investments funded by its operational cash flow. Despite Q4 accounting losses, the underlying business appears well-positioned for scalable, diversified growth.

If HIVE delivers on its 25 EH/s target while expanding its AI services, it could emerge as a hybrid infrastructure leader – combining green Bitcoin mining with next-gen cloud services.