HIVE Digital Technologies (HIVE) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $32.2 million, with adjusted EBITDA of $14.9 million and 449 Bitcoin mined, maintaining profitability despite industry headwinds.

• Maintained a strong balance sheet with $25.6 million in cash and $153.9 million in digital currencies, primarily Bitcoin.

• Net income was $3.3 million ($0.03/share), reversing a prior year loss, and gross operating margin improved to $11.4 million (35%).

• Announced a 100 MW hydroelectric data center expansion in Paraguay, targeting to double hash rate and revenue within 12 months.

• AI/HPC business reached $10 million annualized run rate revenue, with targets of $20 million for H2 2024 and $100 million for 2025.

Financial highlights

• Q1 2025 revenue was $32.2 million, up 37% year-over-year, with $29.6 million from mining and $2.6 million from HPC.

• Adjusted EBITDA was $14.9 million, up from $3.3 million in the prior quarter.

• Net income for Q1 2025 was $3.3 million, compared to a net loss of $3.5 million in the prior year.

• Gross operating margin was $11.4 million (35%), up from $8.0 million (34%) year-over-year.

• Working capital increased by $14.2 million during the quarter.

Outlook and guidance

• Paraguay expansion expected to bring installed hash rate to over 12 EH/s by Q3 2025, with global fleet efficiency improving.

• AI business targets $20 million ARR for H2 2024 and $100 million for 2025, with ongoing investments in next-gen GPU hardware.

• Plans to convert 30 MW of mining capacity to Tier 3 GPU infrastructure, targeting 20 MW of Tier 3 compute within 6-9 months.

• Continued focus on green energy sourcing and diversification into high-performance computing and AI services.

• Management expects continued positive corporate margins and profitability, even in a bearish mining cycle.