HIVE Blockchain Technologies Ltd. (HIVE.V) | Investment Case

1. Company Snapshot

1.a. Company Description

HIVE Blockchain Technologies Ltd.operates as a cryptocurrency mining company in Canada, Sweden, and Iceland.It engages in the mining and sale of digital currencies, including Ethereum, Ethereum Classic, and Bitcoin.

The company was formerly known as Leeta Gold Corp.and changed its name to HIVE Blockchain Technologies Ltd.in September 2017.

HIVE Blockchain Technologies Ltd.was incorporated in 1987 and is headquartered in Vancouver, Canada.

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1.b. Last Insights on HIVE

Negative drivers behind HIVE Blockchain Technologies Ltd.'s recent performance include a 6.5% year-over-year revenue decline in its third quarter 2025 earnings, which may indicate a slowdown in business growth. Additionally, the company's ongoing fleet upgrade program, although a positive effort, may not be fully appreciated by the market, leading to a significant discount to the peer group average. Furthermore, the recent selloff in bitcoin miners, driven by macro factors such as tariffs and inflation, may continue to overshadow positive crypto-specific news flow, creating a "risk-off environment" for equities.

1.c. Company Highlights

Last Price	4.3
Change Percentage	-7.53%
Open	4.6
Previous Close	4.65
Market Cap ( Millions)	1023
Volume	1128229
Year High	10.96
Year Low	1.8
M A 50	6.45
M A 200	3.83

FCF Yield	-26.46%
Dividend Yield	0.00%
ROE	3.99%
Debt / Equity	3.71%
Net Debt / EBIDTA	0.59%
Price To Book	1.12
Price Earnings Ratio	33.97
Price To FCF	-3.78
Price To sales	3.82
EV / EBITDA	8.66

2. HIVE Digital Technologies Delivers Strong Q4 and FY2025 Earnings, Positioned for Growth

HIVE Digital Technologies reported a solid financial performance for Q4 and FY2025, with revenues reaching $115 million for the fiscal year, up slightly from $114.5 million in the previous year. The company posted a gross operating margin of $25 million and an adjusted EBITDA of $56 million, reflecting its ability to navigate challenges such as the Bitcoin halving event and rising hash rate difficulty. Notably, HIVE's high-performance computing (HPC) business saw a nearly 300% growth in revenue, contributing significantly to the company's top-line performance. On a per-share basis, the company reported an EPS of $0.01, outperforming analyst estimates of -$0.1.

Publication Date: Jul -02

                                    📋 Highlights
                                    Hash Rate Growth:
                                                Surpassed 11 exahash, up from 4 exahash, with plans to double again by Thanksgiving.
Financial Highlights:
                                                $115 million in revenue, $25 million in gross operating margin, $56 million in adjusted EBITDA.
HPC Business Expansion:
                                                HPC run rate doubled under Craig Tavares, with a new Toronto data center set to triple capacity.
Bitcoin Holdings:
                                                Holds $60 million in Bitcoin, with plans to buy back 1,300 Bitcoin at $87,000.
Hash Rate Projections:
                                                Targeting 25 exahash by fall, expecting to produce 12.5 Bitcoin daily at current prices.

                                

Hash Rate Expansion and Strategic Acquisitions

HIVE's hash rate surpassed 11 exahash, up from less than 4 exahash a year ago, with plans to double again by Thanksgiving. As highlighted by Frank Holmes, Executive Chairman, "HIVE's future hash rate growth is expected to reach 25 exahash by fall, representing 3% of the global Bitcoin mining network." This ambitious expansion is fully funded, with the company on track to achieve its growth targets. The recent acquisition of a 7.2-megawatt Toronto data center is expected to triple HIVE's HPC compute capacity, further solidifying its position in the high-performance computing space.

HPC Business and Growth Initiatives

The company's HPC business, led by Craig Tavares, has doubled its run rate and is on track to grow from $20 million to $100 million annually. The Toronto data center acquisition is a key catalyst for this growth, with the retrofit expected to be completed in 9-12 months. HIVE is focusing on long-term contracts, particularly through its sovereign strategy in Canada, leveraging government grants and partnerships. The company is also expanding its Tier 3 data center footprint, with a strong focus on next-generation GPU computing.

Valuation and Market Position

With a market cap of $350 million and trading at $10 per exahash, HIVE is significantly undervalued compared to its peers, which trade at $30-$50 per exahash. The company's strong balance sheet, with $60 million in Bitcoin holdings and $20 million in annual recurring revenue (ARR) from HPC, positions it well for future growth. HIVE's disciplined capital deployment and low G&A costs further enhance its competitive position. The company's P/S ratio of 3.73 and EV/EBITDA of 7.34 suggest that its growth potential is not fully priced in by the market.

Mining Operations and Efficiency

HIVE's mining operations are characterized by industry-leading efficiency, with the company mining profitably up to a $21 hash price. The fleet is moving from 20 joules per terahash to 17.5 joules as more efficient S21+ hydro units come online. Phase II will introduce 15 joules per terahash hydro units, further enhancing efficiency. Power costs are also improving, with attractive spot prices in New Brunswick. The company expects continued efficiency gains and better margins as Paraguay’s 100-megawatt site ramps up.

HPC Business and Customer Base

HIVE's HPC business is gaining traction, with a growing pipeline of enterprise and government contracts. The company is actively pursuing larger capacity agreements, particularly with sovereign entities and research institutes. For example, a former Google researcher is using HIVE's GPUs for a 6-month foundational model training contract, while researchers from top universities are leveraging the company's infrastructure for projects like computer vision. The Canadian data center retrofit is expected to come online in tiers over 9 months, starting with 5.5 megawatts, with strong demand already evident.