HIVE's Contracted GPU Cloud ARR Reaches $185 Million

The Tip Desk · November 12, 2026 · 3 min read

Second-quarter revenue was $84.9 million as BUZZ HPC reached $8.8 million and contracted GPU Cloud ARR rose to about $185 million.

HIVE Digital Technologies Ltd. (HIVE) reported second-quarter fiscal 2027 revenue of $84.9 million, up 7.3% from the prior quarter and down 2.7% from a year earlier, as its BUZZ HPC unit expanded and contracted GPU Cloud annualized run rate rose to about $185 million.

The global provider of sustainable data center infrastructure said both digital currency mining and high-performance computing contributed to the sequential lift. Digital currency revenue was $76.0 million. HIVE received 1,070 Bitcoin in rewards, compared with 1,004 in the preceding quarter, as average network difficulty declined to approximately 128 trillion from 135 trillion.

HPC revenue was $8.8 million, up 25.3% sequentially and 70.7% year over year. The company said growth primarily reflected deployment of an NVIDIA B200 GPU cluster at its Manitoba, Canada, site, together with demand and pricing across GPU marketplaces. Pricing for BUZZ’s bare-metal GPU platforms remained healthy, it said.

Gross operating margin, a non-GAAP measure defined as revenue less direct cash costs, increased to $30.2 million, or 35.6% of revenue, from $24.2 million, or 30.6%, in the first quarter of fiscal 2027. Adjusted EBITDA was $24.8 million, or 29.2% of revenue, an 85% sequential increase from $13.4 million.

The company reported a GAAP net loss of $78.7 million, or $0.29 a share. Results included $54.9 million of depreciation, a $31.2 million non-cash impairment of mining equipment, $8.6 million of share-based compensation and a $7.3 million change in the fair value of derivatives. The equipment impairment followed a recoverability assessment under U.S. GAAP reflecting challenging Bitcoin mining economics and lower market values for ASIC equipment, the company said. The derivative fair-value loss primarily reflected remeasurement of capped call transactions associated with convertible notes, partially offset by gains on other derivative instruments.

Selling, general and administrative expenses were $10.7 million. The company said the sequential increase primarily reflected the Merritt facility lease associated with expansion of its HPC business.

Contracted GPU Cloud ARR reached approximately $185 million, including about $40 million of currently live ARR, versus approximately $110 million of contracted ARR in the prior quarter. Contracted ARR includes capacity that has not entered service and is not equivalent to current recognized revenue, the company said. The contracted amount includes an approximately $225 million, three-year sovereign AI agreement with Bell AI Fabric supporting Cohere, covering 2,304 NVIDIA GB200 NVL72 GPUs, and an approximately $350 million, five-year GPU cloud agreement with an investment-grade enterprise customer, covering 2,016 NVIDIA GB300 NVL72 GPUs.

HIVE is targeting approximately $200 million of GPU Cloud ARR by the fourth quarter of calendar 2026, subject to financing, market conditions, deployment schedules and customer acceptance. President and CEO Aydin Kilic said a recent $129 million financing to fund the GPU purchase for the three-year Cohere and Bell agreement satisfied capital commitments for the 2,304 GB200 GPU cluster as of September 30, 2026, and that the GPUs are anticipated to ship before calendar year-end.

The company currently operates approximately 440 MW of global power capacity and expects its energized footprint to reach approximately 540 MW following planned energization of an additional 100 MW power purchase agreement at Yguazú in the fourth quarter of calendar 2026. The additional 100 MW is currently unallocated, it said.

Cash and cash equivalents were $139.0 million and digital currencies $22.6 million as of September 30, 2026. For the three months ended September 30, 2026, HIVE issued 13,698,085 common shares under an at-the-market program for gross proceeds of approximately $43.2 million.