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Crypto Miner HIVE Sees 8% Revenue Growth, Expands Into AI Computing
HIVE Digital Technologies, a cryptocurrency mining company, certainly has reasons to be pleased, as the last 12 months have presented a much better picture of its operations. After a record fiscal year in 2023, during which the company’s revenues fell by 50% and net losses reached $236 million, 2024 turned out to be much more favorable, even if profitability was not achieved .
The company reported annual revenue of $114.5 million and adjusted EBITDA of $37.5 million for the fiscal year ended March 31, 2024. During the period, the company mined 3,123 Bitcoin and held 2,287 Bitcoin worth $161.3 million on its balance sheet at year-end.
HIVE revenues increased approximately 8% compared to the previous fiscal year, with $111.0 million generated from digital currency mining and $3.4 million from its high-performance computing (HPC) business. The company achieved an EBITDA of $40.3 million, representing an operating margin of 36%.
Despite reporting a net loss of $51.2 million for the year, HIVE highlighted that this figure includes significant non-cash charges, such as $66.4 million in depreciation and a $6.8 million provision on sales tax credits. The company reported an overall profit of $25.0 million taking into account a gain of $77.3 million from the revaluation of digital currencies.
Aydin Kilic, President and CEO of HIVE
“We have led the industry with some of the lowest general and administrative costs and lowest equity dilution, while using cash flow from operations to strategically and thoughtfully upgrade and expand our fleet of Bitcoin mining ASICs” , said Aydin Kilic, President and CEO of HIVE. “This is possible through our commitment to maintaining high uptime, lean operations and seeking efficiency in all aspects of our operations.”
Despite record Bitcoin prices in 2023, the mining company’s shares did not rise with the cryptocurrency. As they reached two-month highs in Marchin May they had fallen again to multi-year lows.
Higher BTC hashrate and focus on artificial intelligence
HIVE has increased its ASIC for Bitcoin mining hash rate by 57% during the fiscal year, from 3.0 Exahash in March 2023 to 4.7 Exahash in March 2024. The company has focused on environmental sustainability, sourcing green renewable energy for its mining operations in Canada, Sweden and Iceland.
Frank Holmes, Executive Chairman of HIVE
“Investors should recognize that the sector has grown to over 20 public Bitcoin mining stocks today, up from around five at the last halving,” said Frank Holmes, executive chairman of HIVE, highlighting the changing landscape of mining stocks of Bitcoin and the differences between US GAAP and IFRS accounting standards.
The company also reported progress in its expansion into high-performance computing to support artificial intelligence applications using Nvidia GPU chips, which generated $7.2 million in annualized revenue by the end of the fiscal year.
HIVE used at-the-market (ATM) equity programs throughout the year to raise capital, issuing shares with gross proceeds of C$38.1 million ($28.2 million) in the fourth quarter alone. The company said it will use the net proceeds for the purchase database equipment, strategic investments and general working capital.
HIVE Digital Technologies, a cryptocurrency mining company, certainly has reasons to be pleased, as the last 12 months have presented a much better picture of its operations. After a record fiscal year in 2023, during which the company’s revenues fell by 50% and net losses reached $236 million, 2024 turned out to be much more favorable, even if profitability was not achieved .
The company reported annual revenue of $114.5 million and adjusted EBITDA of $37.5 million for the fiscal year ended March 31, 2024. During the period, the company mined 3,123 Bitcoin and held 2,287 Bitcoin worth $161.3 million on its balance sheet at year-end.
HIVE revenues increased approximately 8% compared to the previous fiscal year, with $111.0 million generated from digital currency mining and $3.4 million from its high-performance computing (HPC) business. The company achieved an EBITDA of $40.3 million, representing an operating margin of 36%.
Despite reporting a net loss of $51.2 million for the year, HIVE noted that this figure includes significant non-cash charges, such as $66.4 million in depreciation and a $6.8 million provision on sales tax credits. The company reported an overall profit of $25.0 million taking into account a gain of $77.3 million from the revaluation of digital currencies.
Aydin Kilic, President and CEO of HIVE
“We have led the industry with some of the lowest general and administrative costs and lowest equity dilution, while using cash flow from operations to strategically and thoughtfully upgrade and expand our fleet of Bitcoin mining ASICs” , said Aydin Kilic, President and CEO of HIVE. “This is possible through our commitment to maintaining high uptime, lean operations and seeking efficiency in all aspects of our operations.”
Despite record Bitcoin prices in 2023, the mining company’s shares did not rise with the cryptocurrency. As they reached two-month highs in Marchin May they had fallen again to multi-year lows.
Higher BTC hashrate and focus on artificial intelligence
HIVE has increased its ASIC for Bitcoin mining hash rate by 57% during the fiscal year, from 3.0 Exahash in March 2023 to 4.7 Exahash in March 2024. The company has focused on environmental sustainability, sourcing green renewable energy for its mining operations in Canada, Sweden and Iceland.
Frank Holmes, Executive Chairman of HIVE
“Investors should recognize that the sector has grown to over 20 public Bitcoin mining stocks today, up from around five at the last halving,” said Frank Holmes, executive chairman of HIVE, highlighting the changing landscape of mining stocks of Bitcoin and the differences between US GAAP and IFRS accounting standards.
The company also reported progress in its expansion into high-performance computing to support artificial intelligence applications using Nvidia GPU chips, which generated $7.2 million in annualized revenue by the end of the fiscal year.
HIVE used at-the-market (ATM) equity programs throughout the year to raise capital, issuing shares with gross proceeds of C$38.1 million ($28.2 million) in the fourth quarter alone. The company said it will use the net proceeds for purchases database equipment, strategic investments and general working capital.