HIVE Digital Technologies Reaches Revenue Milestone as Mining Operations Scale
HIVE Digital Technologies stock climbed 6.5% to $2.47 per share on Friday following the announcement of record operational achievements. According to Cointelegraph, the blockchain and AI infrastructure provider surpassed 12 exahashes per second of Bitcoin mining hashrate, doubling its output since the start of the year. The company now generates over $250 million in annualized revenue and expects to reach $400 million once it scales to 18 EH/s.
CEO Aydin Kilic reported that HIVE mines more than 6 BTC per day with an operating margin of roughly 55%. The company ranks among the 20 largest public Bitcoin holders with 2,201 BTC in its treasury. HIVE's market capitalization reached approximately $530 million following the stock rally, with shares gaining more than 21% over the past month.
The performance reflects broader momentum among Bitcoin mining stocks as the cryptocurrency maintains elevated price levels. HIVE's expansion in Paraguay continues to progress, with the company completing infrastructure development at its hydro-powered facilities.
Industry Faces Post-Halving Revenue Pressure
The Bitcoin mining sector confronts mounting profitability challenges following the 2024 halving event that reduced block rewards from 6.25 BTC to 3.125 BTC. Cointelegraph Research shows that hashprice dropped from $0.12 per terahash per second in April 2024 to approximately $0.049 by April 2025. Network difficulty has surged to an all-time high of 123 trillion, making profitable operations increasingly dependent on low-cost energy access.
Mining costs have risen dramatically across the industry. Recent analysis from BeInCrypto indicates the average cost to mine one Bitcoin climbed from $52,000 in Q4 2024 to over $70,000 in Q2 2025, representing a 34% increase in just two quarters. The growing divergence between mining costs and Bitcoin prices has forced companies to optimize operations and seek alternative revenue streams.
We previously reported that Bitcoin difficulty adjustments continue to impact miner profitability, with the mechanism resetting approximately every two weeks based on network activity. These regular adjustments normalize mining competition as hashrate fluctuates, directly affecting operational margins for companies across the sector.
AI Diversification Transforms Mining Business Models
Mining companies increasingly pivot toward artificial intelligence and high-performance computing to offset volatile cryptocurrency revenues. AiInvest reports that HIVE's AI and HPC hosting revenue tripled to $10.1 million in fiscal 2025, representing nearly 9% of total revenue. The company deployed over 5,000 GPUs by mid-2025 and invested $30 million in Quebec facilities, targeting $100 million in AI revenue by 2026.
The strategic shift leverages existing infrastructure advantages that miners possess. Data centers already equipped with advanced cooling systems and power infrastructure can accommodate AI workloads with hardware upgrades. Companies like Core Scientific have successfully demonstrated this transition, securing a $3.5 billion hosting agreement with CoreWeave after emerging from bankruptcy.
Bitfinex analysis shows AI workloads offer predictable revenue streams through long-term contracts with enterprise clients, contrasting with Bitcoin mining's exposure to cryptocurrency price volatility. However, the transition requires substantial capital investment in GPU hardware and specialized cooling systems. Competition within the AI computing space from established data center providers and hyperscalers presents additional challenges for miners entering this market.
The evolving integration between Bitcoin mining and AI infrastructure creates opportunities for balanced revenue portfolios. Companies successfully managing this transition position themselves for stability during cryptocurrency market downturns while maintaining exposure to Bitcoin's long-term appreciation potential.
