HIVE Digital Technologies has increased its active and contracted GPU Cloud annual run-rate revenue to approximately $110 million, while its most recently reported quarterly high-performance computing revenue was only $7.1 million, illustrating how much of the company’s contracted AI infrastructure business has yet to be reflected in recognized revenue.
Approximately $35 million of GPU Cloud ARR is currently live, generated from about 5,500 GPUs and representing approximately $97,000 of current daily revenue. The remaining $75 million of contracted ARR comes from HIVE’s approximately $225 million, three-year sovereign AI agreement with Bell AI Fabric supporting Cohere.
That agreement covers deployment of 2,304 NVIDIA GB200 NVL72 GPUs. Including the new contracted capacity, HIVE said its active and contracted GPU Cloud business represents approximately 7,800 GPUs.
The $110 million figure represents annualized run-rate revenue rather than recognized revenue under GAAP. HIVE calculates ARR by annualizing current weekly, daily or quarterly revenue, and the company cautions that projected ARR can differ from future realized revenue because of cancellations, discounts or service downgrades.
Current HPC operations are nevertheless scaling quickly. BUZZ HPC revenue increased 46.7% year over year and 52.1% sequentially to $7.1 million during fiscal Q1 2027, driven by deployment of an NVIDIA B200 GPU cluster at HIVE’s Manitoba facility and demand and pricing across GPU marketplaces.
HIVE is targeting approximately $200 million of GPU Cloud ARR by Q4 calendar 2026, meaning the current $110 million active and contracted level represents slightly more than half of the year-end target.
The company has another potential source of HPC revenue in Sweden. A signed letter of intent for long-term colocation at HIVE’s 32MW Big Boden facility could represent approximately $45 million of annual revenue, bringing the current HPC and AI ARR pipeline, including that opportunity, to approximately $155 million.
HIVE’s longer-term infrastructure plans are considerably larger. Tier-III development projects in New Brunswick, Toronto and Little Boden, along with a proposed 320MW Greater Toronto Area Gigafactory, support management’s target of approximately $700 million of total HPC ARR by year-end 2028.
The AI infrastructure expansion is taking place alongside a still-larger digital-currency mining operation. Fiscal Q1 2027 digital-currency revenue increased 76.6% to $72.1 million, while Bitcoin received as mining rewards increased 147% to 1,004 as average operational hashrate increased to 24 EH/s from 8.7 EH/s.
Total quarterly revenue reached $79.1 million, up 73.5% year over year, while gross operating margin improved to $24.2 million, or 30.6% of revenue, from $17.5 million, or 24.4%, in the preceding quarter. Adjusted EBITDA was $13.4 million.
The GAAP result looked substantially weaker because of non-cash expenses. HIVE reported a $142.9 million net loss, including an $84.7 million provision related to contested Swedish VAT assessments, $53.7 million of depreciation, $7.1 million of share-based compensation and a $7.1 million derivative fair-value change.
HIVE ended June with $208 million of cash and $11.2 million of digital currencies. Cash had increased from $23.1 million at the end of March, helped by approximately $199.2 million of debenture issuance proceeds and roughly $30 million from equity issuance during the quarter.
The company also has additional power that has not yet been allocated to a specific workload. HIVE currently operates approximately 440MW of global power capacity and expects another 100MW at Yguazú to lift energized capacity to roughly 540MW in Q4 2026. Management can allocate the new capacity among hashrate services, AI and HPC workloads depending on expected returns.
KEY QUOTES:
“We are marching towards our year-end target of $200 million ARR for our GPU cloud business by the end of 2026. Building on approximately $35 million of live GPU Cloud ARR today (approximately $97,000 current daily revenue from 5,500 GPUs), this quarter we increased contracted GPU Cloud ARR by $75 million through our approximately $225 million, three-year sovereign AI agreement with Bell AI Fabric supporting Cohere with 2,304 GB200 GPUs. This brings our active and contracted GPU cloud revenue to approximately $110 million of annual run-rate revenue, from approximately 7,800 GPUs. Beyond GPU Cloud, our signed LOI for long-term colocation at our 32 MW Big Boden facility in Sweden represents approximately $45 million of potential annual colocation revenue. Including this opportunity, our HPC and AI ARR pipeline represents approximately $155 million, providing a clear path toward our target of approximately $200 million GPU Cloud ARR by the fourth quarter of calendar 2026. Notably, BUZZ delivered strong growth in the first fiscal quarter, with HPC revenue increasing 52% sequentially to $7.1 million, driven by the continued ramp of our GPU Cloud platform”
Aydin Kilic, President and CEO of HIVE Digital Technologies
“This first quarter of fiscal 2027 demonstrated the increasing scale and underlying operating strength of HIVE’s business. Revenue grew 73% year-overyear to $79.1 million, while gross operating margin increased 53% to $24.2 million, and we returned to positive Adjusted EBITDA of $13.4 million. Importantly, our reported net loss was significantly impacted by non-cash items, including the $84.7 million provision related to the ongoing Swedish VAT matter. We also ended the quarter with $208 million of cash, positioning HIVE to fund its next phase of growth from a position of financial strength as we continue to invest in the expansion of our HPC and AI infrastructure platform.”
Darcy Daubaras, CFO of HIVE Digital Technologies
