HIVE Blockchain Technologies reported a Q2 FY2025 quarter ended September 30, 2024 with total revenue of $22.6 million, of which $20.8 million was from Bitcoin mining and $1.9 million from high-performance compute (HPC) AI workloads. Despite a challenging mining backdrop—post-halving economics and elevated hash rates—the company delivered an adjusted EBITDA of $5.6 million, and an annualized ROIC of 15% for the quarter, reinforcing its disciplined capital allocation and asset-light approach to incremental growth amid crypto-market volatility. On the balance sheet, HIVE held $7.2 million in cash and cash equivalents and $165.2 million in digital currencies (Bitcoin) as of 2024-09-30, with a current ratio of 5.6, underscoring liquidity strength even as the company funds expansion initiatives via paid-in capital and operating cash flow reallocation.
Strategically, HIVE is advancing a multi-year growth trajectory anchored by a 100 MW Paraguay expansion and a plan to scale total hash rate to 12.5 exahash by summer 2025, targeting approximately 2% of the global Bitcoin network. The management team emphasizes ROI-driven capital deployment, upgrading to energy-efficient Canaan ASICs to maintain margins, and converting selected data centers to Tier 3 GPU compute capacity to exploit the AI compute opportunity. The AI strategy is reinforced by NVIDIA GPU partnerships and a move toward a vertical integration model (GPU cloud services and data-center operations) intended to reach an ambitious $100 million of annualized HPC revenue by the end of 2025, with a broader objective of 20+ exahash of Bitcoin mining capacity and improved energy efficiency.
From a risk-reward standpoint, the bear-case remains highlighted by ongoing cryptocurrency price and hash-rate volatility, execution risk around Paraguay regulatory and grid-connection timelines, and substantial capital expenditures. However, management’s emphasis on robust HODL (Bitcoin on balance sheet) strategy, 2% hash-rate target, and improving mining efficiency supports a constructive long-run investment thesis should Bitcoin sustain elevated price levels and the AI compute market accelerates as projected.