HIVE Digital Technologies, a cryptocurrency mining company, certainly has reasons to be pleased, as the last 12 months have presented a much better picture of its operations. After a record weak fiscal year in 2023, during which the company's revenues fell by 50% and net losses reached $236 million, 2024 proved much more favorable, although profitability was not achieved.

HIVE Digital Balances Bitcoin Mining and AI Expansion in Fiscal 2024

The company reported annual revenue of $114.5 million and adjusted EBITDA of $37.5 million for the fiscal year ended March 31, 2024. During the period, the company mined 3,123 Bitcoin and held 2,287 Bitcoin worth $161.3 million on its balance sheet at year-end.

HIVE's revenue increased by approximately 8% compared to the previous fiscal year, with $111.0 million generated from digital currency mining and $3.4 million from its high-performance computing (HPC) business. The company achieved a gross operating margin of $40.3 million, representing a 36% operating margin.

Despite reporting a net loss of $51.2 million for the year, HIVE emphasized that this figure includes significant non-cash charges, such as $66.4 million in depreciation and a $6.8 million provision on sales tax receivables. The company noted a comprehensive income of $25.0 million when factoring in a $77.3 million gain from the revaluation of digital currencies.

"We have led the industry with among the lowest G&A and the lowest share dilution while using cashflow from operations to strategically and carefully upgrade and expand our fleet of Bitcoin mining ASICs," said Aydin Kilic, President & CEO of HIVE. "This is possible through our dedication to maintaining high uptime, lean operations, and seeking efficiencies in all aspects of our operations."

Despite record Bitcoin prices in 2023, the mining company's stocks did not rise with the cryptocurrency. While they did reach two-month highs in March, by May they had fallen to multi-month lows again.

Higher BTC Hashrate and Focus on AI

HIVE increased its Bitcoin mining ASIC hashrate Hash Rate A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain Read this Term by 57% during the fiscal year, from 3.0 Exahash in March 2023 to 4.7 Exahash in March 2024. The company focused on environmental sustainability, sourcing green renewable energy for its mining operations in Canada, Sweden, and Iceland.

"Investors should recognize that the industry has grown to over 20 public Bitcoin mining stocks today, compared to approximately five at the last halving," Frank Holmes, Executive Chairman of HIVE, stated, highlighting the evolving landscape of Bitcoin mining stocks and the differences between US GAAP and IFRS accounting standards.

The company also reported progress in its expansion into high-performance computing to support artificial intelligence applications using Nvidia GPU chips, which generated $7.2 million in annualized run-rate revenue by the end of the fiscal year.

HIVE utilized at-the-market (ATM) equity programs during the year to raise capital, issuing shares for gross proceeds of C$38.1 million ($28.2 million) in the fourth quarter alone. The company stated it is using the net proceeds for purchasing data center Data Center A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more Read this Term equipment, strategic investments, and general working capital.