HIVE revenue surges 74% but Swedish tax charge drives $143M loss
The Bitcoin miner and AI-computing operator nearly doubled its top line on expanded hash rate and GPU contracts, yet a contested Swedish VAT assessment kept it firmly in the red.
HIVE Digital Technologies posted fiscal first-quarter revenue of $79.1 million, a 73.5% increase from a year earlier, but recorded a net loss of $142.9 million for the three months ended June 30, 2026. The gap between the two figures is almost entirely attributable to non-cash charges, the largest being an $84.7 million provision tied to a value-added tax dispute with Swedish authorities that the company says it is actively appealing.
For investors parsing the result, the operating picture looks markedly different from the statutory one. Adjusted EBITDA came in positive at $13.4 million, and HIVE ended the quarter holding $208 million in cash. CFO Darcy Daubaras characterised the period as evidence of "the increasing scale and underlying operating strength" of the business, adding that the headline loss was "significantly impacted by non-cash items."
Mining output nearly triples
Bitcoin mining remains the revenue engine. The segment generated $72.1 million, up roughly 77% year over year, after HIVE lifted its average operational hash rate from 8.7 EH/s to 24.0 EH/s. That expansion translated into 1,004 bitcoin mined during the quarter, a 147% jump.
The company, which was founded in 2017 and sources its mining power from renewable energy, has been scaling aggressively as bitcoin prices and network difficulty have evolved. The hash-rate build-out signals continued capital deployment even as HIVE diversifies.
AI unit gains traction with Bell-Cohere contract
The smaller but faster-growing AI and high-performance computing division, branded BUZZ, produced $7.1 million in revenue, up 52% sequentially, aided by a new NVIDIA GPU cluster at HIVE's Manitoba facility. More consequential for forward visibility is the company's contracted GPU-cloud annual run-rate revenue, which has reached approximately $110 million.
A central pillar is a roughly $225 million, three-year agreement with Bell AI Fabric to support Canadian AI developer Cohere. HIVE is targeting around $200 million in GPU-cloud run-rate revenue by the end of calendar 2026, which would more than double the current figure within two quarters.
Executive Chairman Frank Holmes stressed that the AI push "was not a recent pivot," pointing to years of accumulated GPU expertise. He positioned HIVE as a contributor to "Canada's emerging sovereign AI ecosystem," a framing that aligns with Ottawa's stated ambitions to reduce dependence on foreign cloud infrastructure.
What the Swedish charge means
The $84.7 million provision is the single largest drag on the quarter and introduces legal uncertainty. HIVE contests the assessment and is appealing, meaning the charge could be reversed, but until resolution it will weigh on reported earnings and could complicate the narrative for analysts who screen on net income rather than adjusted metrics.
With $208 million in cash, the company has runway to absorb the dispute while funding further GPU expansion. The key question for shareholders is whether AI contract wins can outpace the dilution of the mining cycle before the Swedish matter is settled.
