Hive Digital Technologies (HIVE) Q2 2027: Revenue Beats, Loss Triples on $31M Writedown

Hive Digital Technologies reported Q2 2027 revenue of $84.9 million, clearing the $79.0 million consensus estimate by 7.5%. That top-line beat was overshadowed by a GAAP loss of $0.29 per share, missing expectations of a $0.10 loss. The gap was driven largely by a $31.2 million non-cash impairment charge on mining equipment, alongside $54.9 million of depreciation and an $8.6 million stock-based compensation expense.

The mining impairment reflects the pressure a 27% year-over-year drop in Bitcoin prices put on the value of the company's ASIC hardware. Digital currency mining remains the company's dominant revenue segment at $76.0 million for the quarter, but revenue from that segment fell 7.4% from a year ago. BUZZ HPC revenue grew 70.7% year over year to $8.8 million, the clearest sign yet that the pivot toward AI infrastructure is gaining real traction.

The strategic case rests on a $225 million, three-year sovereign AI contract with Bell and Cohere covering 2,304 NVIDIA GB200 NVL72 GPUs, with a $129 million financing already secured to fund the hardware purchase. A separate five-year agreement covering 2,016 NVIDIA GB300 NVL72 GPUs with an investment-grade enterprise customer adds further contracted runway. CEO Aydin Kilic noted that the GPU Cloud business had reached approximately $40 million in live annualized recurring revenue, with approximately $185 million in contracted ARR backed by multi-year agreements.

Management is targeting roughly $200 million of GPU Cloud annualized recurring revenue by the fourth quarter of calendar 2026, and approximately $700 million of total HPC ARR by year-end 2028. Those figures are targets rather than contracted revenue, and the company itself flags financing, deployment schedules, and customer acceptance as risks to hitting them. The distance between a $0.29 quarterly loss and a $700 million ARR ambition is the defining tension investors are being asked to hold.

The balance sheet shows cash and equivalents of $139.0 million, up more than 500% year over year, while total liabilities have climbed to $493.2 million as convertible note financing has scaled up. The company also holds 400 megawatts of Canadian utility load earmarked for Tier III data centers, with over 320 megawatts in Ontario, giving it a physical infrastructure base that would be difficult to replicate quickly. Whether the company can convert that capacity into contracted, cash-generating revenue before the balance sheet requires further dilutive financing is the question the next few quarters will answer.