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Hive Digital reported full-year revenue of $297.8 million for the fiscal year ended March 31, 2026, a 158% increase from the prior year. The Vancouver-based company executed simultaneously on two structurally different growth strategies: a near-quadrupling of Bitcoin (BTC) mining capacity and the commercial launch of a GPU cloud business, which it is now positioning as its primary long-term growth driver.
Digital currency revenue rose 164% year-on-year to $278.3 million, driven by an approximately fourfold increase in installed operational hashrate and higher average Bitcoin prices during most of the fiscal year. Hive mined 2,885 BTC during the period, up 104% from 1,414 BTC in fiscal 2025, despite a 42% increase in average network difficulty.
The gross operating margin expanded 14 percentage points to 36%, generating $107.9 million compared with $25.1 million a year earlier. Adjusted EBITDA reached $72.9 million for the full year, while cash from operations rose to $62.3 million.
The hashrate expansion from 6.5 exahashes per second (EH/s) to 25.1 EH/s that drove the revenue surge was not incremental. It was the result of Hive’s Paraguay build-out, a large-scale green energy mining operation that the company described as transformative in Tuesday’s release.
The fourth quarter was materially softer, with revenue of $71.8 million and an adjusted EBITDA loss of $9 million, as Bitcoin prices fell 27% from their October all-time high through quarter-end and average network difficulty climbed to a record 140.7 terahashes.
Bitcoin mining revenue declined 23.9% sequentially to $67.2 million, though production held broadly steady at 876 coins as record operational hashrate from the completion of Paraguay Phase 3 offset the difficulty headwinds.
The Q4 deterioration is the clearest illustration of Hive’s strategic problem with mining as a standalone business. The company quadrupled its hashrate, outpaced rising network difficulty, and doubled coin production. But when Bitcoin prices fell 27%, the cash engine stalled regardless. This dynamic makes the AI pivot strategically necessary rather than merely opportunistic.
Hive held only 150 BTC at fiscal year-end, down from 481 BTC at the end of the prior quarter, a 331-BTC decline during a period of heavy capital spending and weaker Bitcoin prices. The company did not explicitly confirm Bitcoin sales, but the math suggests mining cash flow was being directed toward infrastructure investment rather than treasury accumulation, a meaningful departure from the Strategy-style hodl model that some miners have adopted.
Hive’s Buzz HPC unit grew contracted annual recurring revenue to $35 million at fiscal year-end following the live deployment of its first 504 Nvidia B200 GPU cluster at Bell Canada’s AI Fabric facility in Manitoba, generating revenue at $2.90 per GPU hour. HPC revenue for the full year reached a record $19.5 million, up 94% from $10 million in fiscal 2025.
Hive plans to scale its GPU fleet to 11,000 from 5,500 GPUs under management by the end of calendar 2026, a doubling of capacity that management said is expected to generate over $200 million of AI cloud ARR. That figure, if achieved, would make AI cloud the dominant revenue contributor within 18 months.
The Bell Canada partnership is structurally significant beyond the immediate revenue contribution. Deploying Nvidia B200 clusters inside a major Canadian telecommunications carrier’s AI fabric gives Hive credibility with enterprise customers that a standalone data center operator would take years to build.
Hive co-founder and executive chairman Frank Holmes described a clear pathway to $660 million of ARR by year-end 2028, anchored by a planned 320-megawatt AI gigafactory in the Greater Toronto Area, the largest planned Canadian AI infrastructure project under private ownership.
The Toronto site is targeted to host more than 100,000 GPUs at full buildout, with operations targeted for the second half of 2027. The gap between $35 million in current contracted ARR and $660 million by the end of 2028 is large enough to invite skepticism. It requires execution on a gigafactory that does not yet exist, in a Canadian AI infrastructure market that has not yet demonstrated sustained enterprise demand at that scale, with GPU supply chains that remain volatile.
To fund the expansion, Hive raised $115 million in April 2026 through zero-coupon exchangeable senior notes due in 2031, with net proceeds of approximately $109.5 million, accompanied by capped-call transactions designed to limit dilution. The company also moved its common shares to the senior board of the Toronto Stock Exchange in May 2026 to broaden institutional access.
The financing structure is notable. Zero-coupon debt carries no interest burden, preserving cash for capital deployment. Exchangeable notes rather than convertibles give the company more flexibility on conversion terms. The capital raise arrived before the Q4 Bitcoin price deterioration became a sustained trend, which means Hive has dry powder entering a period when weaker mining economics create pressure on peers who did not move as quickly.
The fundamental tension in Hive’s story is the same one facing every miner attempting the AI pivot. Bitcoin mining generates cash when prices rise and destroys margins when they fall. AI cloud revenue is contracted, recurring, and insulated from crypto price cycles. The company that successfully replaces mining volatility with AI predictability at scale commands a very different valuation multiple. Hive’s fiscal 2026 results show meaningful progress toward that transition.
Whether the $660-million ARR target represents an achievable plan or aggressive ambition will become clearer when the Toronto gigafactory moves from announcement to ground.
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