HIVE.O Hits 20-Day Low Amid Mixed Q2 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 07 2024
0mins
Should l Buy HIVE?
Source: Fool
Shares of HIVE Digital Technologies Ltd (HIVE.O) fell 1.74% to $3.50, marking a 20-day low as investors reacted to the company's wider-than-expected loss of 7 cents per share in its Q2 fiscal 2026 report. Despite a remarkable 285% year-over-year revenue surge to $87.3 million, driven largely by digital currency mining, operational challenges, including a significant increase in administrative expenses, weighed heavily on market sentiment. Analysts maintain a Buy rating with a price target of $10, citing HIVE's strategic expansion into AI cloud services and robust Bitcoin production, which increased to 719 BTC in the quarter. However, the stock's current performance raises questions about its valuation amidst ongoing market volatility and operational hurdles.
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Analyst Views on HIVE
Wall Street analysts forecast HIVE stock price to rise
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 2.120
Low
6.50
Averages
8.17
High
10.00
Current: 2.120
Low
6.50
Averages
8.17
High
10.00
About HIVE
HIVE Digital Technologies Ltd. is a technology company advancing sustainable blockchain and artificial intelligence (AI) infrastructure powered by green energy. The Company is engaged in digital asset mining and AI computing. Its operations are focused on the mining of digital currencies to upgrade, expand and scale up its data center operations. It holds Bitcoin and monetizes other cryptocurrencies that it derives from its mining operations. It is engaged in building a bridge between the Bitcoin blockchain sector and traditional capital markets. Its cryptocurrency assets provide shareholders with exposure to the operating margins of digital currency mining as well as a portfolio of Bitcoin. It develops and expands its high-performance computing business, which implements the Company’s fleet of graphic processing units (GPUs) in enterprise-grade CPU servers, operating in tier three data centers. It operates green energy-powered data center facilities in Canada, Sweden, and Paraguay.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
HIVE Digital Technologies to Expand HPC Business in 2026
- Revenue Growth Target: HIVE aims to scale its high-performance computing (HPC) annual recurring revenue from $20 million to $225 million by 2026, demonstrating strong confidence in future growth prospects.
- Cloud Expansion Plans: To achieve this revenue target, the company plans to expand its cloud capacity from 5,000 to 11,000 graphics processing units, which is expected to increase HPC revenue from $20 million to $140 million, thereby enhancing its competitive position in the market.
- Customer Agreements Signed: Earlier this month, HIVE signed customer agreements worth approximately $30 million to support its AI cloud strategy, indicating the company's proactive approach to capitalize on the growing demand for high-performance computing.
- Quarterly Financial Performance: Despite reporting a record revenue of $93.1 million for the third quarter, up 219% year-over-year, HIVE fell short of analyst expectations of $96.97 million, with a loss of $0.38 per share, highlighting challenges in profitability.
See More
Retail Giants Earnings Season Nears Conclusion
- Earnings Calendar: This week, several retail, energy, and tech giants are set to report earnings, with investors particularly focused on Medtronic, Energy Transfer, and HIVE, while Carvana's Q4 results are due after Wednesday's close.
- Carvana Earnings Expectations: Analysts forecast Carvana to report earnings of $1.10 per share on revenue of $5.26 billion, with strong year-over-year growth in retail units and gross profit per unit, although investor concerns linger over a recent short-seller report alleging accounting irregularities.
- Walmart Earnings Focus: Walmart is expected to report earnings on Thursday, with estimates of $0.72 per share and revenue of $190.24 billion, as investors will closely monitor the growth of high-margin segments and commentary on consumer health.
- Opendoor Earnings Outlook: Opendoor is set to release its Q4 results after Thursday's close, with investors looking for updates on its turnaround plans and progress towards profitability by 2026, particularly regarding improvements in gross margins and the success of its AI-driven “capital-light” platform.
See More
HIVE Digital Technologies Reports Larger Than Expected Quarterly Losses
- Quarterly Losses: HIVE Digital Technologies reported a quarterly loss of $0.38 per share, significantly exceeding the analyst consensus estimate of a $0.07 loss, indicating substantial challenges in profitability that could undermine investor confidence.
- Sales Miss: The company's quarterly sales totaled $93.111 million, falling short of the analyst consensus estimate of $96.975 million, reflecting weak market demand that may lead to declining future performance.
- Stock Price Reaction: In pre-market trading, HIVE's shares fell by 2.3% to $2.16, indicating a negative investor reaction to the earnings report, which could impact the company's short-term financing capabilities.
- Overall Market Trend: U.S. stock futures were broadly lower, with Nasdaq 100 futures dropping over 150 points, reflecting a bearish market sentiment that may have a ripple effect on HIVE and other tech stocks.
See More
HIVE Digital Technologies Reports Significant Q3 Revenue Growth
- Significant Revenue Growth: HIVE Digital Technologies reported substantial revenue growth in its Q3 results, showcasing resilience and adaptability in the digital asset sector despite challenges posed by Bitcoin's cyclical nature.
- Surge in Bitcoin Production: The company's Bitcoin production in December nearly tripled year-over-year, reflecting successful mining efficiency and capacity expansion, which further solidifies its market position.
- Market Rating Analysis: While HIVE's quant rating indicates a low current valuation, analysts caution that Bitcoin's cyclical fluctuations still dominate the market, potentially impacting future profitability and investor confidence.
- Future Outlook: HIVE Digital Technologies' ongoing growth and expansion strategies, combined with the dynamic changes in the Bitcoin market, may offer long-term growth opportunities for investors, but caution is advised in navigating the risks associated with market volatility.
See More
HIVE Digital Technologies Reports Q3 Financial Results
- Financial Overview: HIVE Digital Technologies reported a Q3 GAAP net loss of $91.3 million, despite achieving revenue of $93.11 million, which represents a 218.5% year-over-year increase but fell short of expectations by $2.69 million, indicating challenges in profitability.
- Adjusted EBITDA: The adjusted EBITDA stood at $5.7 million, with gross operating margin significantly expanding to $32.1 million (34.5%), more than sixfold compared to $5.3 million in the prior year, demonstrating improvements in cost control and operational efficiency.
- Digital Currency Revenue: Digital currency hashrate revenue reached $88.2 million, an 8% increase from Q2 FY2026, reflecting a 41% quarter-over-quarter rise in average hashrate to 22.9 EH/s, although this was partially offset by approximately 10% lower Bitcoin prices and a 15% increase in network difficulty.
- Bitcoin Production Growth: The company generated 885 Bitcoins in the quarter, achieving a 23% quarter-over-quarter increase despite a 15% rise in network difficulty, showcasing HIVE's resilience in Bitcoin mining.
See More
HIVE Secures $30 Million in AI Cloud Contracts
- Customer Agreements Signed: HIVE Digital Technologies Ltd. has signed customer agreements totaling approximately $30 million, marking a significant advancement in its AI cloud strategy and expected to enhance the company's market share in high-performance computing.
- Revenue Growth Expectations: Management anticipates that the initial phase of BUZZ's AI-optimized GPU deployment will generate around $15 million in annual recurring revenue, reflecting strong contracted demand and laying the groundwork for future revenue growth.
- Market Expansion Plans: HIVE aims to scale its GPU cloud business throughout 2026, with expectations for annual revenue from its HPC segment to grow from approximately $20 million to $35 million, demonstrating the company's proactive response to market demand.
- Analyst Ratings and Outlook: Despite a 25.17% decline in HIVE's stock price over the past 12 months, analysts generally maintain a
See More
HIVE Digital Technologies to Expand HPC Business in 2026
- Revenue Growth Target: HIVE aims to scale its high-performance computing (HPC) annual recurring revenue from $20 million to $225 million by 2026, demonstrating strong confidence in future growth prospects.
- Cloud Expansion Plans: To achieve this revenue target, the company plans to expand its cloud capacity from 5,000 to 11,000 graphics processing units, which is expected to increase HPC revenue from $20 million to $140 million, thereby enhancing its competitive position in the market.
- Customer Agreements Signed: Earlier this month, HIVE signed customer agreements worth approximately $30 million to support its AI cloud strategy, indicating the company's proactive approach to capitalize on the growing demand for high-performance computing.
- Quarterly Financial Performance: Despite reporting a record revenue of $93.1 million for the third quarter, up 219% year-over-year, HIVE fell short of analyst expectations of $96.97 million, with a loss of $0.38 per share, highlighting challenges in profitability.
See More
Retail Giants Earnings Season Nears Conclusion
- Earnings Calendar: This week, several retail, energy, and tech giants are set to report earnings, with investors particularly focused on Medtronic, Energy Transfer, and HIVE, while Carvana's Q4 results are due after Wednesday's close.
- Carvana Earnings Expectations: Analysts forecast Carvana to report earnings of $1.10 per share on revenue of $5.26 billion, with strong year-over-year growth in retail units and gross profit per unit, although investor concerns linger over a recent short-seller report alleging accounting irregularities.
- Walmart Earnings Focus: Walmart is expected to report earnings on Thursday, with estimates of $0.72 per share and revenue of $190.24 billion, as investors will closely monitor the growth of high-margin segments and commentary on consumer health.
- Opendoor Earnings Outlook: Opendoor is set to release its Q4 results after Thursday's close, with investors looking for updates on its turnaround plans and progress towards profitability by 2026, particularly regarding improvements in gross margins and the success of its AI-driven “capital-light” platform.
See More
HIVE Digital Technologies Reports Larger Than Expected Quarterly Losses
- Quarterly Losses: HIVE Digital Technologies reported a quarterly loss of $0.38 per share, significantly exceeding the analyst consensus estimate of a $0.07 loss, indicating substantial challenges in profitability that could undermine investor confidence.
- Sales Miss: The company's quarterly sales totaled $93.111 million, falling short of the analyst consensus estimate of $96.975 million, reflecting weak market demand that may lead to declining future performance.
- Stock Price Reaction: In pre-market trading, HIVE's shares fell by 2.3% to $2.16, indicating a negative investor reaction to the earnings report, which could impact the company's short-term financing capabilities.
- Overall Market Trend: U.S. stock futures were broadly lower, with Nasdaq 100 futures dropping over 150 points, reflecting a bearish market sentiment that may have a ripple effect on HIVE and other tech stocks.
See More
HIVE Digital Technologies Reports Significant Q3 Revenue Growth
- Significant Revenue Growth: HIVE Digital Technologies reported substantial revenue growth in its Q3 results, showcasing resilience and adaptability in the digital asset sector despite challenges posed by Bitcoin's cyclical nature.
- Surge in Bitcoin Production: The company's Bitcoin production in December nearly tripled year-over-year, reflecting successful mining efficiency and capacity expansion, which further solidifies its market position.
- Market Rating Analysis: While HIVE's quant rating indicates a low current valuation, analysts caution that Bitcoin's cyclical fluctuations still dominate the market, potentially impacting future profitability and investor confidence.
- Future Outlook: HIVE Digital Technologies' ongoing growth and expansion strategies, combined with the dynamic changes in the Bitcoin market, may offer long-term growth opportunities for investors, but caution is advised in navigating the risks associated with market volatility.
See More
HIVE Digital Technologies Reports Q3 Financial Results
- Financial Overview: HIVE Digital Technologies reported a Q3 GAAP net loss of $91.3 million, despite achieving revenue of $93.11 million, which represents a 218.5% year-over-year increase but fell short of expectations by $2.69 million, indicating challenges in profitability.
- Adjusted EBITDA: The adjusted EBITDA stood at $5.7 million, with gross operating margin significantly expanding to $32.1 million (34.5%), more than sixfold compared to $5.3 million in the prior year, demonstrating improvements in cost control and operational efficiency.
- Digital Currency Revenue: Digital currency hashrate revenue reached $88.2 million, an 8% increase from Q2 FY2026, reflecting a 41% quarter-over-quarter rise in average hashrate to 22.9 EH/s, although this was partially offset by approximately 10% lower Bitcoin prices and a 15% increase in network difficulty.
- Bitcoin Production Growth: The company generated 885 Bitcoins in the quarter, achieving a 23% quarter-over-quarter increase despite a 15% rise in network difficulty, showcasing HIVE's resilience in Bitcoin mining.
See More
HIVE Secures $30 Million in AI Cloud Contracts
- Customer Agreements Signed: HIVE Digital Technologies Ltd. has signed customer agreements totaling approximately $30 million, marking a significant advancement in its AI cloud strategy and expected to enhance the company's market share in high-performance computing.
- Revenue Growth Expectations: Management anticipates that the initial phase of BUZZ's AI-optimized GPU deployment will generate around $15 million in annual recurring revenue, reflecting strong contracted demand and laying the groundwork for future revenue growth.
- Market Expansion Plans: HIVE aims to scale its GPU cloud business throughout 2026, with expectations for annual revenue from its HPC segment to grow from approximately $20 million to $35 million, demonstrating the company's proactive response to market demand.
- Analyst Ratings and Outlook: Despite a 25.17% decline in HIVE's stock price over the past 12 months, analysts generally maintain a
See More
