HIVE Digital Technologies Ltd. (TSX.V: HIVE) (Nasdaq: HIVE) reported significant growth in its third-quarter earnings for fiscal year 2025, propelling its shares up 2.57% on Wednesday.
The Canadian crypto mining and high-performance computing (HPC) firm saw its total revenue climb to $29.2 million, bolstered by a surge in Bitcoin reserves and expansion plans aimed at increasing its mining capacity.
Record Bitcoin Holdings and Strong Financial Performance
HIVE’s latest financial report highlights a major milestone: a 263% year-over-year increase in Bitcoin reserves, now totaling 2,805 BTC, valued at $260 million. This substantial growth reflects the company’s strategic focus on accumulating digital assets while maintaining financial stability. Frank Holmes, Executive Chairman of HIVE, emphasized the significance of this achievement, calling it a “record milestone” that underlines the company’s operational efficiency and disciplined capital management.
During the quarter, HIVE mined 322 BTC, contributing to its expanding crypto portfolio. The firm’s mining operations generated $26.7 million in revenue, while its HPC business—an increasingly crucial component of its diversification strategy—reported $2.5 million in revenue, reaching a $10 million annualized run rate. Despite market volatility, HIVE maintained profitable operating margins of $6.1 million and posted a net income of $1.3 million, a dramatic improvement from the $7.0 million loss recorded in the same period last year.
Darcy Daubaras, HIVE’s Chief Financial Officer, attributed the company’s strong financial position to prudent spending and efficient resource allocation. “We ended the quarter in a robust financial position with $270.7 million in cash and digital currencies,” Daubaras noted, reinforcing the firm’s ability to sustain growth while minimizing shareholder dilution.
Strategic Expansion in Paraguay to Boost Mining Capacity
HIVE is doubling down on its expansion strategy, with its sights set on increasing Bitcoin mining capacity significantly in the coming months. The company recently announced plans to scale operations in Paraguay, where it is acquiring a 200-megawatt (MW) mining site in Yguazú. The project, which is being developed in two phases, is set to bring HIVE’s hashrate from 6 EH/s to 25 EH/s by September 2025.
The first phase, already 80% complete, is scheduled to become operational in Q2 2025, adding 6 EH/s to the firm’s mining power. The second phase, expected to go live by August 2025, will introduce an additional 6.5 EH/s using Bitmain S21+ hydro-cooled ASICs. Once completed, the expansion will bring HIVE’s global capacity to 450 MW, reinforcing its position as one of the largest Bitcoin miners in the industry.
Aydin Kilic, HIVE’s President and CEO, expressed confidence in the company’s growth trajectory. “We are excited to execute on a transformative year, with the goal of positioning HIVE as one of the largest Bitcoin miners in the world,” Kilic stated. “Our Paraguay expansion will significantly scale our mining capacity and solidify our presence in the global market.”
