EPS of $0.03 increased by 136.8% from previous year
Gross margin of -7.4%
Net income of 3.26M
""We are post-halving. We're operating about 5.2 exahash where we've improved the efficiency of some of our older machines, by firmware optimization."" - Aydin Kilic
HIVE Blockchain Technologies Ltd (HIVE) QQ1 2025 Results Analysis: Post-Halving Momentum, Green-Energy Expansion, and AI Compute Growth
Executive Summary
HIVE delivered a solid QQ1 2025 operating performance anchored by profitability in a bear mining cycle and continued progress on a multi-pronged growth plan. Revenue was USD 32.24 million, with EBITDA of USD 18.84 million and net income of USD 3.26 million, reflecting a post-halving environment where price signals and efficiency improvements offset reduced Bitcoin production. The company remains highly cash-generative on an operating basis, aided by a lean G&A footprint and a conservative capital spending approach. Cash and equivalents stood at USD 25.6 million, with Bitcoin holdings of roughly USD 153.9 million, underpinning a resilient balance sheet and a current ratio of 7.35. Importantly, management outlined a robust growth trajectory: (i) Paraguay plans for 100 MW of green-energy data center capacity to lift total installed hash rate to 12.1 EH by late 2025, (ii) ASIC fleet upgrades to reduce power per TH and improve margins, and (iii) AI compute/GPU revenue expansion targeting USD 100 million annualized run-rate in 2025 with a USD 10 million ARR milestone already achieved and USD 20 million ARR anticipated in the second half of the year. The equity story remains discounted versus peers on an EV/EBITDA basis, presenting an attractive risk-reward given the scale-up potential and diversified revenue streams. Investors should monitor bitcoin price volatility, energy pricing and sourcing risk, project execution timelines for Paraguay, and the pace of AI/GPU demand and utilization as key catalysts and potential upside/downside drivers.
Key Performance Indicators
Revenue
32.24M
QoQ: -0.02% | YoY:-13.04%
Gross Profit
-2.38M
-7.37% margin
QoQ: 0.02% | YoY:-936.90%
Operating Income
7.51M
QoQ: -183.99% | YoY:22.03%
Net Income
3.26M
QoQ: 0.00% | YoY:146.87%
EPS
0.03
QoQ: 0.00% | YoY:136.75%
Revenue Trend
Margin Analysis
Key Insights
to high-20s historically, with a substantial BTC balance sheet backing the equity value.
Financial Highlights
Revenue and profitability: Q1 2025 revenue USD 32.24 million; gross profit USD -2.38 million (gross margin -7.37%); EBITDA USD 18.84 million; operating income USD 7.51 million; net income USD 3.26 million; EPS USD 0.0294; diluted EPS USD 0.0286. Balance sheet and liquidity: cash and equivalents USD 25.60 million; digital currencies (BTC) USD 153.9 million; total assets USD 319.54 million; total liabilities USD 46.39 million; total stockholders' equity USD 273.15 million; current ratio 7.35. Cash flow: net cash from operating activities USD -3.65 million; capex USD -13.33 million; free cash flow USD -16.98 million; net cash provided by financing USD USD 28.645 million; cash at end of period USD 25.604 million. Operating efficiency and leverage: fleet installed hash rate 5.5 EH; 9,586 S21/S21 Pro machines installed by July 2024; post-halving gross mining margin USD 11.4 million; gross mining margin as a percent of revenue approximately 35% in the year-ago period. Leverage and valuation: enterprise value USD ~154 million; EBITDA (trailing annualized) USD ~60 million implying an EV/EBITDA around 2.6x; price/earnings around mid- to high-20s historically, with a substantial BTC balance sheet backing the equity value.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
32.24M
-13.04%
-0.02%
Gross Profit
-2.38M
-936.90%
0.02%
Operating Income
7.51M
22.03%
-183.99%
Net Income
3.26M
146.87%
0.00%
EPS
0.03
136.75%
0.00%
Key Financial Ratios
currentRatio
7.35
grossProfitMargin
-7.37%
operatingProfitMargin
23.3%
netProfitMargin
10.1%
returnOnAssets
1.02%
returnOnEquity
1.19%
debtEquityRatio
0.1
operatingCashFlowPerShare
$-0.03
freeCashFlowPerShare
$-0.15
priceToBookRatio
1.31
priceEarningsRatio
27.35
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Management themes and quotes from the QQ1 2025 earnings call highlight: 1) Strategy and capital allocation: 'Paraguay 100 megawatts' plan to double hash rate to 12.1 EH and drive green energy at scale, with an expected Bitcoin production cost around USD 22,000 per BTC using new-generation equipment (Aydin Kilic). 2) Operational excellence and profitability in a bear cycle: 'we are post-halving' and 'we are operating about 5.2 exahash' with firmware upgrades improving older machines’ efficiency; 'positive gross mining margins' despite near-term headwinds (Aydin Kilic). 3) AI compute expansion and GPU monetization: 'ARR milestone of USD 10 million' for GPU compute, 'target USD 20 million ARR in H2 2024' and 'blue-sky USD 100 million ARR for AI by 2025' with 4,000+ Nvidia A-series cards and 96 H100 units (Aydin Kilic). 4) Financial strength and capital discipline: 'lowest G&A per Bitcoin margin in the industry,' strong liquidity, and a large BTC balance sheet underpinning enterprise value (Frank Holmes; Darcy Daubaras). 5) Growth and risk: continuing ramp in AI compute, multijurisdictional data centers, and the need to manage volatility and scaling risks in green-energy powered data centers (Frank Holmes; Aydin Kilic).
"We are post-halving. We're operating about 5.2 exahash where we've improved the efficiency of some of our older machines, by firmware optimization."
— Aydin Kilic
"We reached USD 10 million in annualized run rate revenue for AI and we still see a path to USD 20 million ARR in the second half of this year; blue-sky USD 100 million ARR for 2025."
— Aydin Kilic
Forward Guidance
Management guidance reflects a multi-horizon plan combining Bitcoin mining optimization with aggressive AI/GPU compute growth. Near-term expectations include: (i) ~5.5 EH installed today, targeting 12.1 EH upon Paraguay 100 MW deployment by Q3 2025; (ii) 100 MW Paraguay build-out driven by favorable capital expenditure per MW and green energy costs, with a projected Bitcoin production cost around USD 22,000 per BTC and an anticipated authorizing timeline of roughly six to twelve months for retrofit phases and up to a year for full build-out; (iii) continued equipment upgrades to improve energy efficiency toward 19–22 J/TH and to sustain profitability in a bear-crystal cycle; (iv) AI compute ambition progressing toward USD 20 million ARR in H2 2024 and USD 100 million ARR in 2025, leveraging 4,000 Nvidia A-series GPUs and 96 H100s; (v) ongoing monitoring of bitcoin prices and energy costs as key variables impacting mining economics and expansion CAPEX. Feasibility considerations include capital availability, supply chain lead times for equipment, regulatory developments, and the ability to monetize AI compute contracts at scale. Investors should monitor Paraguay project approvals, hardware procurement cadence, and AI demand signals as primary catalysts or potential headwinds.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
HIVE Focus
-7.37%
23.30%
1.19%
27.35%
BITF
-21.20%
-47.60%
-1.63%
-32.29%
CLSK
60.80%
38.60%
3.20%
19.03%
MARA
-3.62%
-49.50%
13.60%
4.16%
RIOT
40.60%
2.57%
8.56%
3.51%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given HIVE's post-halving profitability, strong balance sheet, and diversified growth engines, the investment thesis centers on sustainable cash-flow generation combined with high-upside equity reflectivity from the Paraguay expansion and AI compute monetization. The company trades at an attractive EV/EBITDA around 2.6x versus peers at 4x–30x, supported by a USD 150 million BTC balance sheet and USD 25.6 million in cash. The Paraguay project offers a compelling cost-per-tera/megawatt economics and green-energy advantages that, if realized, could drive a step-change in hash-rate and EBITDA. The AI compute segment has progressed to USD 10 million ARR with a trajectory toward USD 100 million ARR in 2025, driven by capacity additions (4,000 A-series GPUs and 96 H100s) and planned investment in next-generation hardware. Risks include bitcoin price volatility, execution risk on large capital projects, and potential supply-chain delays. If the Paraguay deployment proceeds on schedule and AI demand accelerates as projected, HIVE could re-rate meaningfully higher from current levels. A cautious case would hinge on slower-than-expected capital deployment or weaker AI demand; a bull case depends on rapid ramp of 12.1 EH and AI ARR hitting or exceeding USD 100 million in 2025, supported by durable green energy advantages and favorable crypto economics.
Key Investment Factors
Growth Potential
Significant multi-year growth potential from Paraguay 100 MW expansion to 12.1 EH by 3Q2025 and AI compute scaling to USD 100 million ARR in 2025, underpinned by green energy advantages and a lean corporate structure.
Profitability Risk
Key risks include Bitcoin price and mining-D difficulty volatility, project execution risk for large CapEx builds, green-energy supply and price dynamics, regulatory developments, and potential delays in AI GPU demand realization.
Financial Position
Strong liquidity and balance sheet strength with USD 25.6 million cash, USD 153.9 million BTC holdings, current ratio 7.35, and EBITDA-driven profitability that supports ongoing capex without immediate debt reliance.
SWOT Analysis
Strengths
Green-energy powered, diversified global footprint with nine time zones and multiple jurisdictions
Strong liquidity position and BTC balance sheet providing resilience and optionality
Low G&A per Bitcoin margin, leading to robust cash flow generation in bear markets
Operational discipline with high uptime and asset utilization across self-mining facilities
AI compute growth leveraging established GPU infrastructure and data center capabilities
Weaknesses
Near-term negative gross margin in Q1 2025 due to halving and rising costs despite higher BTC prices
Large-scale Paraguayan capex introduces execution and funding risks over the next 12–18 months
BTC price volatility remains a key driver of mark-to-market accounting and earnings volatility
Opportunities
Paraguay 100 MW project to drive exponential hash-rate expansion to 12.1 EH
AI GPU compute expansion to target USD 100 million ARR in 2025 with potential ancillary revenue from HPC
US/EU interest in regulated crypto assets can unlock further capital and strategic partnerships
Threats
Bitcoin mining economics are highly sensitive to BTC price, network difficulty, and energy costs
Supply-chain and lead times for next-generation ASICs/GPU hardware could delay scale-up
Regulatory changes and macroeconomic shocks could impact funding and project timelines