On its fiscal first-quarter 2027 earnings call on Aug. 17, HIVE Digital Technologies (Nasdaq: HIVE) used the spotlight to press a single message: the company is no longer just a Bitcoin miner.
President and CEO Aydin Kilic told analysts the company’s GPU cloud business had reached “critical mass,” a claim anchored by a newly announced contract and backed by a detailed pitch for why HIVE’s stock deserves a higher valuation.
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Kilic said a new five-year agreement, signed with an unnamed investment-grade enterprise customer, is worth approximately $350 million in total contract value and covers 2,016 of Nvidia’s GB300 chips, adding about $70 million in annual recurring revenue.
That deal lifted HIVE’s contracted GPU cloud revenue to about $180 million, closing in on its $200 million year-end target. GPU cloud, also called high-performance computing, refers to renting out powerful chips that companies use to train and run AI models.
The segment made up roughly 10% of revenue in the quarter, with Bitcoin mining still driving the other 90%.
Management framed the shift as a re-rating story. Kilic noted that HIVE has signed about $600 million in total GPU cloud contracts this year against a market value near $800 million, arguing “the stock should be due to re-rate.”
He walked analysts through sum-of-the-parts math pointing to a far larger valuation as the AI buildout scales across sites in Canada, Sweden, and Paraguay.
Kilic added that a separate colocation lease at HIVE’s Boden, Sweden, site, which the company hopes to finalize by the end of September, would push contracted HPC revenue to roughly $225 million, ahead of its year-end goal.
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The call also tackled the figure that stood out in the report: a $142.9 million quarterly net loss.
Kilic and Chief Financial Officer Darcy Daubaras both stressed the loss was driven by non-cash items, chiefly $53.7 million in depreciation and an $84.7 million provision tied to a long-running Swedish VAT dispute over imported mining equipment.
Asked how HIVE intends to fund that liability, Kilic was blunt: “We do not plan to pay.” He said the company will keep appealing, having already paid about $50 million in tax through normal operations. Daubaras pointed instead to the operating picture, citing a return to positive adjusted EBITDA of $13.4 million and a cash position that grew to $208 million from about $23 million three months earlier.
