HIVE Digital (HIVE) Stock: Analyst Calls It “Undervalued” After Blowout Q3 Results

TLDR

• HIVE Digital posted $93.1 million in Q3 revenue, a 219% year-over-year increase, marking a record quarter.
• Gross operating margin expanded more than sixfold to $32.1 million, even as Bitcoin prices fell ~10% during the quarter.
• HIVE signed a two-year, $30 million contract with Bell to deploy 504 Nvidia B200 GPUs, lifting HPC annualized revenue run rate by ~75%.
• The company reported a $91 million net loss, but management said it was driven mostly by non-cash charges including $57 million in depreciation.
• H.C. Wainwright reiterated a Buy rating with a $7 price target, saying HIVE trades at a 50% discount to Bitcoin mining peers.

For the quarter ended December 31, 2025, HIVE reported $93.1 million in total revenue, a 219% jump from the same period a year ago. Gross operating margin came in at $32.1 million, more than six times what it was a year earlier.

That’s a strong result on its own. What makes it more interesting is the context: Bitcoin dropped roughly 10% during the quarter, and network difficulty climbed about 15%. Not exactly a tailwind.

HIVE mined 879 Bitcoin during the period and scaled installed hashrate to 25 exahashes per second (EH/s), up from 6 EH/s at the start of 2025. That puts the company at roughly 2% of the global Bitcoin network.

HIVE Digital Technologies Ltd., HIVE

Despite the headline numbers, HIVE posted a $91 million net loss for the quarter. CEO Aydin Kilic was quick to point out that most of it was non-cash, including $57 million in depreciation from new hardware brought online in Paraguay and a $31 million charge tied to changes in the fair value of derivatives. Adjusted EBITDA came in at around $5.7 to $6 million.

The company ended the quarter with 481 Bitcoin on its balance sheet, approximately $14 million in cash, and $14 million in digital currencies. CFO Darcy noted current assets of about $91 million against current liabilities of roughly $52 million.

AI and HPC Business Gaining Real Traction

The part of the story drawing the most attention is HIVE’s high-performance computing push, branded as “Buzz.” HPC generated about $5 million in revenue this quarter, tracking to a $20 million annual run rate.

In February, HIVE signed a two-year contract with Bell to deploy 504 Nvidia Blackwell B200 GPUs at a Manitoba site. The deal is worth $30 million and is expected to push HPC annualized revenue run rate up to $35 million by the end of Q1 2026. Kilic said the realized pricing on the contract came in 30% above forecasted rates.

HIVE is targeting 11,000 GPUs on its Buzz cloud platform by year-end, up from the current 5,000. The longer-term target is $140 million in annual recurring AI cloud revenue by Q4 2026, with a total HPC revenue goal of $225 million.

The GPU financing structure is notable: HIVE is using lease-to-own arrangements with single-digit interest rates on a 36-month term with a $1 buyout, meaning no upfront capital expenditure for the GPUs.

Analyst Sees the Stock as Undervalued

H.C. Wainwright reiterated its Buy rating on HIVE with a $7 price target following the results, saying the shares are “significantly undervalued.” The firm argues HIVE trades at a 50% discount to Bitcoin mining peers that have not yet announced HPC deals, and that the market is giving the company little to no credit for its GPU cloud business.

HIVE stock was down more than 2% on Tuesday.

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