Data center infrastructure provider Hive Digital reported earnings and revenue growth for the final quarter of 2024, driven by record Bitcoin reserves and an expanding high-performance computing (HPC) business.
In the quarter ending Dec. 31, Hive’s revenues from crypto mining and HPC hosting services reached $29.2 million. Its HPC business generated $2.5 million in quarterly revenue for an annualized run rate of $10 million.
The company’s adjusted earnings were $17.3 million, while net income after tax amounted to $1.3 million.
Source: Hive Digital
Hive mined 322 Bitcoin (BTC) during the quarter, helping to boost its “hodl” position to 2,805 BTC. The value of Bitcoin on its books was $260.8 million by the end of the quarter.
“This represents a 263% year-over-year increase from $72 million of Bitcoin on our balance sheet at the end of December 2023,” said Frank Holmes, Hive’s executive chairman.
Among publicly traded companies, Hive is one of the 15 largest corporate Bitcoin holders in the world, according to industry data.
The company ended the quarter with $270.7 million in cash and crypto holdings, according to Darcy Daubaras, Hive’s chief financial officer.
“Our hold gives investors exposure to Bitcoin as an asset class,” Hive Digital’s president and CEO, Aydin Kilic, told Cointelegraph in a written statement.
“We lead the sector, with about 75% in Bitcoin value per share of HIVE, based on Dec. 31 figures,” said Kilic. “We’ve also strategically used our hodl to fund expansion,” notably for the company’s Paraguay facility.
Hive isn’t the only Bitcoin miner to report positive earnings tailwinds in the final three months of 2024. Crypto miner CleanSpark also reported a surge in revenue and profitability while adding more Bitcoin to its corporate treasury.
These results are consistent with a January report by Digital Mining Solutions and BitcoinMiningStock showing that more public miners were increasing their BTC reserves, likely in anticipation of further price upside.
Related: Solo miner snags Bitcoin block reward worth $300K
Acquisitions and expanding focus
Although Hive remains one of the largest Bitcoin mining operations, its business strategy has expanded to include artificial intelligence and other high-performance computing applications.
In September, Kilic told Cointelegraph that repurposing Nvidia GPUs for AI tasks could generate more than $2 in hourly revenue, compared to just $0.12 for crypto mining. The company said its existing data centers were being upgraded to support additional AI workloads.
In January, the company announced the acquisition of a 200-megawatt facility in Paraguay from Bitfarms for $85 million, building on previous plans to add up to 300 megawatts of operating capacity in the country.
At the start of the year, Hive also confirmed it planned to relocate from Vancouver, Canada, to the US state of Texas following Donald Trump’s presidential victory.
An October report by asset manager CoinShares suggested that more Bitcoin miners would embrace AI due to the growing costs of mining.
“The Bitcoin mining industry has faced significant challenges this year, with revenues and hash prices declining,” the report said, adding that less profitable miners may “[diversify] income streams to include AI.”
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