HIVE Bitcoin Holdings Drop 69% as Revenue Hits $298M
HIVE Digital Technologies (formerly HIVE Blockchain) reported a steep decline in its Bitcoin (BTC) treasury, dropping from 481 BTC to 150 BTC in the latest quarter. This 69% reduction represents approximately $23 million in value at Bitcoin's current price of $68,724, according to CoinGecko data. The selloff coincided with record fiscal year 2026 revenue of $297.8 million, up 158% year-over-year, driven by expanded Bitcoin mining and a growing high-performance computing (HPC) segment.
The Canadian mining firm produced 2,885 BTC during the fiscal year, highlighting its operational scale. However, the sharp reduction in holdings underscores the mounting financial pressures miners face, as capital-intensive expansion projects and volatile BTC prices squeeze margins. HIVE did not explicitly confirm whether the BTC was sold or allocated to other uses.
Revenue Soars Amid Rising Costs
HIVE’s revenue growth was fueled primarily by digital currency mining, which contributed $278.3 million, up from $105 million a year earlier. Its HPC division, focused on AI and cloud computing, added $19.5 million, nearly doubling from the previous year. The company’s dual focus on Bitcoin mining and AI infrastructure appears to be paying off, particularly as demand for GPU-powered services grows.
However, the revenue surge came with rising costs. Operating expenses increased significantly due to the expansion of mining and data center facilities. Depreciation alone hit $170.4 million, nearly three times the prior year, reflecting the scale of HIVE’s recent infrastructure investments.
Strategic Pivot to AI and HPC
HIVE has been diversifying its business model, betting on AI-driven HPC to complement its Bitcoin mining operations. The BUZZ HPC division, launched in 2023, saw contracted annual recurring revenue grow to $35 million by year-end. This growth is supported by enterprise AI contracts and the deployment of Nvidia-powered GPU clusters. The company announced plans for a 320-megawatt AI data center in the Greater Toronto Area, capable of hosting over 100,000 GPUs, signaling its commitment to this segment.
"The pivot to AI and HPC is a strategic move as mining economics become more competitive," said industry analysts. With global Bitcoin mining difficulty at record highs and BTC down 21% year-to-date, diversified revenue streams are becoming critical for public miners.
Market Context and Investor Implications
HIVE’s results come at a time when Bitcoin is trading at $68,724, down nearly 4% in the last 24 hours. The broader market remains volatile, with miners like HIVE navigating both pricing headwinds and rising operational costs. The company’s 69% treasury reduction reflects a broader trend among miners choosing to liquidate holdings to fund aggressive expansions.
Investors should watch HIVE’s performance in its AI and HPC segments closely. As of February 2026, the BUZZ HPC division had signed $30 million in AI cloud contracts, with projections for further growth. The success of these initiatives will likely determine whether HIVE can sustain its revenue trajectory while managing the rising costs of Bitcoin mining.
Looking ahead, HIVE’s 100 MW hydroelectric expansion in Paraguay and its target of 35 EH/s global mining capacity by the end of 2026 could further boost operational output. However, the balance between Bitcoin accumulation, operational expenses, and diversification into AI remains a critical risk factor for the company.