HIVE Digital reports Q1 FY27 revenue of $79.1 million (up 73% year-over-year) with $180 million in signed HPC contracts for AI workloads.

HIVE Digital Technologies (NASDAQ: HIVE) reported a 73% year-over-year revenue increase to $79.1 million for the first quarter of fiscal 2027, driven by expansion in its Bitcoin mining operations and high-performance computing (HPC) business.

The company recorded a GAAP net loss of $143 million, primarily due to an $85 million non-cash provision for a disputed Swedish tax liability and depreciation charges. Despite the net loss, HIVE generated positive adjusted EBITDA of $13.4 million, reflecting improved operational efficiency.

**Financial Performance**

Revenue grew from $45.6 million in the prior-year quarter to $79.1 million, with Bitcoin mining contributing $72.1 million and HPC/AI adding approximately $7 million. Gross operating margin expanded 53% year-over-year to $24.2 million from $15.8 million.

Sequentially, revenue increased 10% from $71.8 million in the fourth quarter. Adjusted EBITDA turned positive, improving from negative $9 million in the previous quarter.

**HPC and AI Growth**

HIVE announced $180 million in contracted revenue for its HPC business, including a newly secured five-year contract worth $350 million in total value, adding $70 million in annual recurring revenue (ARR). The deal involves deploying 2,088 GB300 GPUs to a Bell Canada facility.

The company also signed a letter of intent for an HPC colocation lease at its Boden site, representing $45 million in ARR. Combined with existing contracts, this positions HPC revenue significantly higher than the current quarter's contribution.

**Operational Performance**

The divergence between GAAP and operational results reflects non-cash accounting impacts. While reporting a $143 million net loss, management noted that underlying cash operations remained profitable—daily revenue of $850,000 against daily cash costs of approximately $690,000. The Swedish tax provision accounted for roughly 59% of the loss, obscuring core business performance in which gross operating margins expanded in absolute terms despite moderating from 35% to 31% in percentage terms.

**Balance Sheet and Liquidity**

Cash position strengthened significantly to $208 million as of June 30, up from $23 million at March 31, driven by financing activities including exchangeable senior note offerings. Total current assets of approximately $280 million exceeded current liabilities of $143 million.