HIVE Digital Technologies disclosed $110 million in active and contracted GPU cloud annual recurring revenue.

HIVE Digital Technologies has raised its active and contracted GPU Cloud annual run-rate revenue (ARR) to approximately $110 million. This stands in contrast to its most recently reported quarterly high-performance computing (HPC) revenue of $7.1 million, underscoring how much of the company’s contracted AI infrastructure business remains unreflected in recognized revenue.

Approximately $35 million of this GPU Cloud ARR is currently live, generated from roughly 5,500 GPUs and translating to about $97,000 in daily revenue. The remaining $75 million in contracted ARR stems from HIVE’s three-year, approximately $225 million sovereign AI agreement with Bell AI Fabric to support Cohere.

That agreement covers the deployment of 2,304 NVIDIA GB200 NVL72 GPUs. Combined with existing live capacity, HIVE’s active and contracted GPU Cloud business now represents approximately 7,800 GPUs. It is important to note that the $110 million figure reflects annualized run-rate revenue rather than GAAP-recognized revenue. HIVE calculates ARR by annualizing current weekly, daily, or quarterly figures, and cautions that projected ARR may diverge from future realized revenue due to potential cancellations, discounts, or service downgrades.

Despite the lag between contracted and recognized revenue, current HPC operations are scaling rapidly. BUZZ HPC revenue rose 46.7% year over year and 52.1% sequentially to $7.1 million in fiscal Q1 2027. This growth was driven by the deployment of an NVIDIA B200 GPU cluster at HIVE’s Manitoba facility, alongside strong demand and pricing across GPU marketplaces.

HIVE aims to reach approximately $200 million in GPU Cloud ARR by Q4 calendar 2026, meaning the current $110 million active and contracted level represents slightly more than half of that year-end target. Beyond GPU Cloud, the company holds another potential revenue stream in Sweden. A signed letter of intent for long-term colocation at HIVE’s 32MW Big Boden facility could generate approximately $45 million in annual revenue. Including this opportunity, HIVE’s total HPC and AI ARR pipeline reaches approximately $155 million.

HIVE’s longer-term infrastructure ambitions are substantially larger. Tier-III development projects in New Brunswick, Toronto, and Little Boden, along with a proposed 320MW Greater Toronto Area Gigafactory, underpin management’s goal of achieving approximately $700 million in total HPC ARR by year-end 2028.

This AI infrastructure expansion coincides with a still-larger digital-currency mining operation. Fiscal Q1 2027 digital-currency revenue surged 76.6% to $72.1 million, while Bitcoin received as mining rewards increased 147% to 1,004. The average operational hashrate also climbed to 24 EH/s from 8.7 EH/s. Total quarterly revenue reached $79.1 million, up 73.5% year over year. Gross operating margin improved to $24.2 million (30.6% of revenue), compared to $17.5 million (24.4%) in the prior quarter, with adjusted EBITDA coming in at $13.4 million.

The GAAP result appeared substantially weaker due to non-cash expenses. HIVE reported a $142.9 million net loss, which included an $84.7 million provision for contested Swedish VAT assessments, $53.7 million in depreciation, $7.1 million in share-based compensation, and a $7.1 million derivative fair-value change. Cash reserves ended June at $208 million, alongside $11.2 million in digital currencies. This cash balance grew from $23.1 million at the end of March, bolstered by approximately $199.2 million in debenture issuance proceeds and roughly $30 million from equity issuance during the quarter.

HIVE also maintains additional power capacity not yet allocated to specific workloads. The company currently operates approximately 440MW of global power capacity and expects an additional 100MW at Yguazú to bring energized capacity to roughly 540MW by Q4 2026. Management retains the flexibility to allocate this new capacity across hashrate services, AI, and HPC workloads based on expected returns.

“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,” said 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-over-year 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,” added Darcy Daubaras, CFO of HIVE Digital Technologies.

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