Executive Summary
HIVE reported QQ2 2024 revenue of $32.23 million with a negative gross margin of -7.37% and an operating loss of -$6.31 million, driven by higher mining difficulty and the absence of Ethereum-derived revenue post-merge. Despite the quarterly gross loss, the company benefited from other income, delivering a positive net income of $3.26 million and EBITDA of $7.51 million. The bottom line was supported by $10.57 million of other income and a favorable tax treatment, underscoring a non-operating earnings driver that mitigated weak core mining economics in the period. Management emphasizes a strategic shift toward high-performance computing (HPC) and AI-enabled GPU compute, positioning HIVE to diversify revenue and improve margins through higher-value workloads.
Key Performance Indicators
QoQ: -0.02% | YoY:-13.04%
QoQ: 0.02% | YoY:-936.90%
QoQ: -183.99% | YoY:22.03%
Key Insights
Revenue: $32.234 million; YoY change: -13.04%, QoQ: -0.02%
...
Financial Highlights
Revenue: $32.234 million; YoY change: -13.04%, QoQ: -0.02%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
32.23M |
-13.04% |
-0.02% |
| Gross Profit |
-2.37M |
-936.90% |
0.02% |
| Operating Income |
-6.31M |
22.03% |
-183.99% |
| Net Income |
3.26M |
146.87% |
0.00% |
| EPS |
0.03 |
136.75% |
0.00% |
Key Financial Ratios
operatingProfitMargin
-19.6%
operatingCashFlowPerShare
$-0.18
freeCashFlowPerShare
$-0.3
Management Commentary
Management commentary highlights include:
- Strategic pivot to AI HPC and GPU compute, with a substantial capital expenditure on NVIDIA GPUs: 'we spent close to $70 million buying NVIDIA chips' and the analogy that 'ASIC is a Ford 150 pickup truck. A Ferrari is NVIDIA chips.' Significance: positions HIVE to monetize AI workloads and potentially improve margins via higher-value compute rather than sole reliance on mining revenue.
- Hash economics and halving preparedness: management discusses network difficulty and hash price dynamics, including a floor around $0.05 per terahash per day and the impact of the upcoming halving on profitability. Significance: underscores risk-adjusted capital allocation ahead of Bitcoin reward reductions and the need for efficiency upgrades.
- Sweden tax policy and grid services: commentary on a Sweden energy tax that added ~USD 1.9 million of cost, but also a $1.4 million income stream from grid balancing. Significance: illustrates how jurisdictional policy can both elevate costs and offer ancillary revenue streams, a key risk-reward factor for the mining footprint.
- Operational expansion and capex discipline: details on purchasing 29,000 new ASICs in the last 12 months, including 8,900 S19Ks/XPs and 4,000 S19K Pro, aiming to lower fleet efficiency to below 30 joules per terahash. Significance: demonstrates a proactive refresh strategy to maintain margins during the halving cycle and rising network difficulty.
- AI compute milestones and ROI expectations: updates on tier-3 data centers in Stockholm and Montreal and an objective of reaching $250k per week in GPU-driven AI compute by year-end, with potential for daily revenue if GPU utilization scales. Significance: validates progress toward a diversified revenue base and value creation from HPC/AI beyond core mining.
we spent close to $70 million buying NVIDIA chips
— Aydin Kilic
ASIC is a Ford 150 pickup truck. A Ferrari is NVIDIA chips
— Aydin Kilic
Forward Guidance
Management points to a multi-year plan with the halving cycle a critical milestone. Near-term guidance includes continued ramp of GPU-based HPC revenue, with a target to exceed $250k per week by year-end 2024 and a potential path to $250k per day if GPU deployment is fully realized. The company also envisions reaching 6 exahash of mining capacity in the next year as it navigates through the halving, implying an aggressive but actionable growth plan via continued ASIC refresh (e.g., 22-23 J/TH devices) and energy arbitrage across its Canada, Sweden, and Iceland footprint. Hash price floors and network difficulty will be primary drivers of mining economics, while the AI HPC segment provides a non-dilutive growth vector that can offset mining margin pressure. Key monitoring factors for investors include Bitcoin price and network difficulty, halving timing and impact on hash price, GPU utilization and HPC project economics, Sweden VAT rebates status, and any regulatory shifts affecting crypto mining and digital assets.