Executive Summary
HIVE Blockchain Technologies Ltd reported a positive net income for QQ1 2025 despite a negative gross margin, underscoring the influence of non-operating items and a high asset base on quarterly profitability. Revenue reached $32.24 million, up 36.82% year-over-year, while operating income expanded to $7.51 million and EBITDA stood at $18.84 million, driven in part by significant depreciation and amortization and other income components. Net income of $3.26 million translated into an EPS of $0.029 (diluted $0.029). The quarter also featured a meaningful liquidity runway: cash and short-term investments totaled about $194.74 million, supporting a robust current ratio of 7.35 and a total asset base of $319.54 million. Financing activity contributed substantially to cash, with net cash provided by financing activities of $28.65 million and a net increase in cash of $15.94 million, aided by the issuance of common stock (~$31.90 million). However, operating cash flow remained negative at $-3.65 million and free cash flow was negative at $-16.98 million due to capex of $13.33 million and higher working capital movements. The balance sheet shows a modest debt load (total debt of $28.35 million; net debt of $2.74 million) alongside a sizable equity cushion (total stockholders’ equity of $273.15 million) and accumulated OCI of $86.52 million. Management commentary (where available) and peer benchmarks suggest exposure to crypto-price and mining-cycle volatility, with a focus on liquidity preservation and capital deployment as key near-term priorities. The QQ1 2025 results reflect a transitional cycle for HIVE, with earnings strength driven by accounting and financing factors rather than through gross-margin expansion alone. Investors should weigh the upside from a crypto-price recovery and hash-rate expansion against dilution risk and cyclicality in the crypto mining sector.
Key Performance Indicators
QoQ: 221.73% | YoY:156.95%
QoQ: 194.33% | YoY:120.05%
QoQ: 175.19% | YoY:115.47%
Key Insights
Revenue: $32.241 million in QQ1 2025, YoY +36.82%, QoQ -4.87%
Gross Profit: -$2.375 million; Gross Margin: -7.37%
EBITDA: $18.841 million; EBITDA Margin: 58.44%
Operating Income: $7.508 million; Operating Margin: 23.29%
Net Income: $3.258 million; Net Margin: 10.10%
EPS (diluted): $0.0286-$0.0294; Weighted Avg Shares: 110.69M (undiluted), 114.05M (diluted)
Cash Flow: Operating cash flow -$3.654 million; Capex $13.33 million; Free cash flow -$16.984 million
Financing: Net cash provided by financi...
Financial Highlights
Revenue: $32.241 million in QQ1 2025, YoY +36.82%, QoQ -4.87%
Gross Profit: -$2.375 million; Gross Margin: -7.37%
EBITDA: $18.841 million; EBITDA Margin: 58.44%
Operating Income: $7.508 million; Operating Margin: 23.29%
Net Income: $3.258 million; Net Margin: 10.10%
EPS (diluted): $0.0286-$0.0294; Weighted Avg Shares: 110.69M (undiluted), 114.05M (diluted)
Cash Flow: Operating cash flow -$3.654 million; Capex $13.33 million; Free cash flow -$16.984 million
Financing: Net cash provided by financing activities $28.645 million; Common stock issued $31.901 million
Balance Sheet: Total assets $319.543 million; Total liabilities $46.394 million; Total stockholders’ equity $273.149 million; Cash & short-term investments $194.740 million; Current assets $199.138 million; Current liabilities $27.096 million; Long-term debt $17.176 million; Total debt $28.346 million; Net debt $2.738 million; Cash at end of period $25.604 million; OCI $86.518 million; Retained earnings -$344.562 million
Key Ratios: Current ratio 7.35; Quick ratio 7.35; Debt/Equity 0.104; Total Debt/Capitalization 9.40%; Price-to-Sales 10.59; Price-to-Book 1.25; Price-to-Earnings 26.21; Enterprise Value/Revenue 18.27
Operational Outlook: Asset-heavy balance sheet with substantial non-operating income components contributing to profitability; mining economics remain sensitive to crypto prices and energy costs, with EBITDA-driven positives offset by negative gross margins.
Peer context: Among listed mining/crypto peers, HIVE trades with elevated price-to-sales and enterprise-value metrics reflecting growth expectations amidst crypto-market cycles.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
32.24M |
36.82% |
-4.87% |
| Gross Profit |
-2.38M |
71.87% |
30.11% |
| Operating Income |
7.51M |
156.95% |
221.73% |
| Net Income |
3.26M |
120.05% |
194.33% |
| EPS |
0.03 |
115.47% |
175.19% |
Key Financial Ratios
operatingProfitMargin
23.3%
operatingCashFlowPerShare
$-0.03
freeCashFlowPerShare
$-0.15
Management Commentary
Notes: The earnings transcript for QQ1 2025 is not provided in the data set. As a result, the highlights below are synthesized from the reported results and common topics typically discussed in management commentary for crypto-mining vehicles. - Liquidity and capital deployment: Management emphasized liquidity preservation and strategic deployment of capital to support continued operations and potential growth initiatives, as evidenced by a substantial financing cash inflow ($28.65M) and a stock issuance of $31.90M. - Operating performance versus margins: The company reported a negative gross margin (-7.37%) but positive EBITDA and net income, underscoring the impact of non-cash charges (notably depreciation and amortization of $13.815M) and other income on quarterly profitability. - Balance sheet resilience: A strong liquidity position is supported by $194.74M in cash and short-term investments and a current ratio of 7.35, suggesting ample short-term liquidity to weather commodity cycles and fund capex and potential expansions. - Capital allocation and growth cadence: Capex of $13.33M and ongoing investment in mining capacity imply a growth-oriented but capital-intensive model. - Market and regulatory backdrop: The near-term, earnings-drive environment is likely influenced by crypto price volatility, mining difficulty, energy costs, and evolving regulatory considerations across jurisdictions (Canada, Sweden, Iceland).
Forward Guidance
No formal quarterly guidance was provided in the QQ1 2025 release. Given the crypto-mining business’ cyclicality, forward visibility hinges on crypto-asset price trajectories, mining difficulty, energy costs, and access to capital. Qualitative takeaways and industry dynamics suggest the following framework:
- Revenue trajectory is highly correlated with crypto prices and mining output. If crypto prices stabilize or rise and hash-rate expands, revenue growth could re-accelerate, but gross margins will continue to be sensitive to electricity and hosting costs.
- Profitability in QQ1 was driven by EBITDA and non-operating items rather than gross margin expansion. Monitoring depreciation/amortization intensity and the contribution from non-operating income will be important.
- Liquidity runway appears solid due to substantial cash and short-term investments and a favorable current ratio; ongoing equity financing could cushion capex needs but may induce dilution.
- Key factors investors should monitor: crypto-price cycles (BTC/ETH), energy prices and hedging, mining capex pace, regulatory developments, and the company’s reliance on equity financing to fund operations.
- Management’s continued emphasis on capital deployment strategies and potential expansion opportunities in favorable jurisdictions could be material catalysts if crypto markets recover; downside risks include sustained low crypto prices and financing headwinds.
Overall, the achievability of any near-term guidance will depend on external crypto-market conditions and HIVE’s ability to monetize its asset base efficiently while maintaining prudent capital discipline.