HIVE Digital Technologies (NASDAQ: HIVE) reported a 73% year-over-year revenue increase to $79.1 million for the first quarter of fiscal 2027, driven by expansion in its Bitcoin mining operations and high-performance computing (HPC) business.

The company recorded a GAAP net loss of $143 million, primarily due to an $85 million non-cash provision for a disputed Swedish tax liability and depreciation charges. Despite the net loss, HIVE generated positive adjusted EBITDA of $13.4 million, reflecting improved operational efficiency.

Financial Performance

Revenue grew from $45.6 million in the prior-year quarter to $79.1 million. Bitcoin mining contributed $72.1 million, while the HPC and AI business added approximately $7 million. Gross operating margin expanded 53% year-over-year to $24.2 million, up from $15.8 million.

Sequentially, revenue increased 10% from $71.8 million in the fourth quarter. Adjusted EBITDA turned positive, improving from negative $9 million in the previous quarter.

HPC and AI Growth

HIVE announced $180 million in contracted revenue for its HPC business. This includes a newly secured five-year contract worth $350 million total value, adding $70 million in annual recurring revenue (ARR). The deal involves deploying 2,088 GB300 GPUs to a Bell Canada facility.

The company also signed a letter of intent for an HPC colocation lease at its Boden site, representing $45 million in ARR. Combined with existing contracts, this positions HPC revenue significantly higher than the current quarter's contribution.

What the Numbers Show

The divergence between GAAP results and operational metrics highlights the impact of non-cash accounting items. While the company reported a $143 million net loss, management emphasized that underlying cash operations remained profitable, with daily cash costs of approximately $690,000 against daily revenue of $850,000. The Swedish tax provision alone accounted for roughly 59% of the total net loss, obscuring the core business performance which saw gross operating margins expand in absolute dollar terms despite a slight moderation in percentage terms from 35% to 31%.

Balance Sheet and Liquidity

Cash position strengthened significantly, rising to $208 million as of June 30, compared to $23 million at March 31. This increase was driven by financing activities, including exchangeable senior note offerings. Total current assets stood at approximately $280 million against current liabilities of $143 million.

HIVE Digital Technologies Ltd. (TSX: HIVE) (NASDAQ: HIVE) announced a strategic partnership with Vancouver-based ProCogia to deliver end-to-end sovereign AI solutions. The deal leverages BUZZ High Performance Computing Inc.'s Canadian infrastructure for enterprise clients.

ProCogia will deploy its ZeroBoxx AI framework on BUZZ HPC's dedicated GPU capacity. This creates a Canadian-anchored, full-stack alternative for organizations requiring governed, high-performance AI without compromising data sovereignty. The partnership targets enterprise and small- and medium-sized business clients in Canada, the United States, and Europe.

Partnership Structure

The relationship operates as a two-way commercial motion:

• Dedicated Capacity Procurement: ProCogia procures dedicated accelerated compute footprint on BUZZ HPC's Canadian infrastructure to power its products and client workloads.
• Service Delivery: ProCogia acts as a preferred applied-AI services partner for BUZZ HPC clients, offering LLM development, bespoke model training, and vertical AI products.
• Joint Go-to-Market: The companies intend to co-sell into the United States and Europe, bringing Canadian sovereign compute capabilities to international buyers.
• Framework Deployment: ProCogia uses the partnership as the primary cloud launchpad for its proprietary ZeroBoxx AI framework.

Vertical AI Applications

ProCogia will run specific vertical AI products as anchor workloads on BUZZ HPC capacity:

• CallYeah: A voice-AI solution designed for healthcare providers.
• PolyKode: A code-migration LLM for regulated environments, assisting bioinformaticians and clinical teams with submissions and trials.

Executive Commentary

Frank Holmes, Executive Chairman of HIVE Digital Technologies, highlighted the scale of ambition in Canada, noting a $50 billion Canadian ($36 billion U.S.) AI data-center project announced by the country. He stated that BUZZ HPC has been building toward this vision with a 400 MW coast-to-coast Canadian pipeline.

Aydin Kilic, President and CEO of HIVE Digital Technologies, emphasized that BUZZ HPC was built so Canadian companies would not have to choose between accelerated computing infrastructure and data sovereignty. He described ProCogia as a partner with deep data-engineering roots and proven vertical AI products.

Craig Tavares, President and COO of BUZZ HPC, noted that access to affordable compute should not be a constraint for Canadian AI champions. He stated that sovereignty is about giving Canadian companies the infrastructure needed to build, own intellectual property, and sell globally.

Meharpratap Singh, Founder and CEO of ProCogia, said the partnership removes the historical bottleneck of hardware access for smaller SMB and mid-market clients. He noted that ProCogia can now offer regulated customers in healthcare, life sciences, pharmaceuticals, banking, insurance, and defense a governed, Canadian-anchored path to production AI.

Strategic Context

The partnership aligns with Canadian government priorities to expand domestic access to hardware and compute. Over the past twelve months, BUZZ HPC has expanded its capacity, including:

• A 4x expansion of liquid-cooled AI data-center capacity in British Columbia.
• A 320 MW sovereign AI infrastructure build-out in the Greater Toronto Area.
• A sovereign AI infrastructure partnership with Bell Canada.
• A $220M sovereign AI GPU contract with Bell AI Fabric for Cohere Inc.
• A $350M AI cloud services agreement with an investment-grade enterprise customer.

What the Numbers Show

The disclosed deal values for recent BUZZ HPC contracts total $570 million ($220 million with Bell AI Fabric/Cohere and $350 million with an unnamed enterprise customer). This indicates a significant concentration of large-scale, institutional commitments underpinning the company's sovereign AI strategy, moving beyond smaller SMB deals to anchor its 400 MW pipeline with substantial revenue visibility.