Summary HIVE grew top-line revenue by 41.5% year over year. YoY, HPC revenue grew by nearly 85%. More than 10% of HIVE's revenue in the quarter came from the HPC segment - its largest level to date. The company has monetized the majority of its BTC, and HIVE now trades at 13x mNAV. Relative to miner/HPC peers like IREN Limited or TeraWulf, HIVE is still quite cheap at just 1.3x book and 3.4x trailing sales. Back in April, I covered HIVE Digital Technologies ( HIVE ) for Seeking Alpha and reiterated a 'buy' rating that I had made in December 2024. My late 2024 piece upgraded the company from a 'hold,' and both articles were generally focused on the equity valuation relative to peers. Like many other Bitcoin ( BTC-USD ) miners in the public markets, HIVE has made strides toward HPC/AI revenue generation while mainly generating revenue from mining. Though I do see HPC/AI revenue as something of a necessity for Bitcoin miners given what I view to be serious profitability concerns in the mining sector, I've actually been sort of critical of HIVE's implementation in the past. Back in 2023 - long before the company was generating meaningful revenue from HPC services - HIVE positioned itself as an 'AI infrastructure' business despite deriving 99% of its revenue from mining Bitcoin. Now in 2025, HIVE's revenue breakout is much different. As is its valuation relative to its digital assets. We'll explore both in this update. Calendar Q2 '25 Revenue For the quarter ended in June, HIVE reported $45.6 million in top-line revenue. This was a rather large sequential decline of 60% but a 41.5% year-over-year increase. There was a similar decline in QoQ revenue between Q1 and Q2 in 2024: (000s) Revenue From Mining Revenue From HPC Total Revenue Q1 '24 $111,044 $3,421 $114,465 Q2 '24 $29,636 $2,605 $32,241 Q3 '24 $20,765 $1,883 $22,648 Q4 '24 $26,687 $2,542 $29,229 Q1 '25 $105,236 $10,043 $115,279 Q2 '25 $40,797 $4,814 $45,611 YoY 37.7% 84.8% 41.5% QoQ -61.2% -52.1% -60.4% Source: HIVE Digital That said, the sequential decline in revenue from HPC in Q2 was quite large at 52% - which was more than double the 24% sequential decline in HPC revenue this time last year. Still, the company is growing HPC service revenue quite well with $14.8 million in HPC revenue so far this year: HIVE Revenue Breakout (Author's Chart/Calculations) As of the quarter ended June, 10.6% of HIVE's top line came from HPC revenue. This is the highest percentage of revenue from HPC that HIVE has generated since the company began recognizing the segment in 2023. It also puts HIVE well ahead of a company like IREN Limited ( IREN ) in terms of revenue percentage from HPC. The latter of which has absolutely rocketed in 2025 on data center expectations. Still, the market has not rewarded HIVE to the degree that it has rewarded IREN, and we'll explore that in the next section. Operational Losses 000s (HIVE Digital) One thing to keep in mind, however, is that HIVE actually lost $6.2 million in the quarter when isolating performance net performance to COGS and depreciation. The reported $35 million in positive net income during the quarter was from a combination of valuation changes in derivatives owned by the company, unrealized gains in BTC held by the company, and realized gains in previously mined BTC that was sold during the quarter. The latter of which is unlikely to be replicated going forward given HIVE's current HODL. BTC Holdings and Valuation At the end of March 2025, HIVE held 2,201 BTC. The company sold nearly 700 of that BTC during the quarter ended in June and deposited an additional 1,565 BTC for equipment purchases: BTC Holdings (HIVE Digital) HIVE does have the ability to purchase that Bitcoin back at the deposit price should it choose to exercise that option. This would figure to make sense in an environment where BTC takes another leg higher but would likely come at the expense of cash holdings or shareholder dilution. As of the end of June, HIVE's BTC holdings totaled just 435 BTC. Given the 23% QoQ increase in HIVE shares outstanding, I calculate HIVE's Sats per share figure to be just 299 Sats: HIVE Sats Per Share (Author's Chart/Calculations) This would be the lowest Sats per share figure for HIVE in at least the last 3.5 years and gives the company an mNAV multiple today of over 13x. Thus, on that metric alone, HIVE can no longer be viewed as 'cheap' relative to peers - many of which trade at mNAV multiples under 3x. Of course, one could argue HIVE's HPC peers are now trading at even larger fundamental valuations. Data by YCharts HIVE trades at a price-to-book multiple of just 1.3, which is very much in line with miners like MARA and CLSK and significantly cheaper than HPC-hopeful stocks like IREN and WULF. HIVE is also cheaper than each of the four stocks just mentioned, with a trailing price-to-sales multiple of 3.4. Closing Remarks Data by YCharts Since my last article covering HIVE, the stock is up more than 100%. While impressive, the ticker has actually lagged the sector. Especially when compared to the more HPC-driven names like IREN. Despite that, I still think HIVE is interesting given its valuation. To be sure, the company has monetized a considerable amount of its BTC stack. That could be concerning for investors who expect another leg higher in the coin. But the argument could be made that the market likes miners who sell BTC rather than miners who keep it. Data by YCharts Consider the year-to-date performances of stocks like MARA Digital ( MARA ) and CleanSpark ( CLSK ) compared with IREN or even TeraWulf ( WULF ). The latter two sell their mining production each month, while CLSK and MARA effort HODLing. The market seems to like revenue from realized sales more than unrealized gains. But it should be noted that HIVE can repurchase 1,565 BTC at its deposit price and essentially capture an immediate spread should it make financial sense to do so. I'm going to keep the 'buy' call on HIVE even though I have trimmed my position on this recent run. My view remains that BTC has peaked for this cycle. And I think these monster rallies the miners have experienced during the early September sessions are good temporary profit-taking opportunities. I would entertain increasing exposure to HIVE again in the future should it trade at a deep book value discount once again.
