Bitcoin News Today: HIVE Defies Crypto Downturn with AI Surge and Record Bitcoin Revenue

HIVE Digital Technologies Inc. (HIVE) shares surged 7.5% on Monday after the Bitcoin miner reported record quarterly revenue and announced a strategic partnership to expand its artificial intelligence infrastructure. The stock bucked the broader crypto market's downward trend, rising to $3.56 amid strong performance across its core mining operations and high-performance computing (HPC) division according to Q2 results. The gains came as HIVE posted second-quarter revenue of $87.3 million, a 285% year-over-year increase and 91% higher than the prior quarter.

The company's Bitcoin mining segment drove the results, generating $82.1 million in revenue, up 101% sequentially. This was fueled by an 86% quarter-over-quarter rise in average hashrate to 16.2 EH/s and higher Bitcoin prices. HIVE mined 717 Bitcoin during the quarter, a 76.6% increase from the previous period despite a 21.4% rise in network difficulty. Adjusted EBITDA reached $31.5 million, reflecting strong operational execution in both mining and HPC services.

HIVE's pivot to AI infrastructure further boosted investor confidence. The company's Buzz subsidiary struck a deal with Dell Technologies to deploy 504 of the manufacturer's latest-generation GPUs in liquid-cooled servers at its Bell AI Fabric data center. This partnership accelerates HIVE's expansion into the AI sector, with the company targeting a fleet of 6,000 new GPUs by the end of 2026. HIVE aims to generate $140 million in annualized HPC revenue by Q4 2026 at approximately 80% gross margins.

The stock's rise occurred despite a broader slump in crypto equities. Bitcoin fell below $92,000 on Monday, erasing all of its 2025 gains and dropping 27% from its October high of $126,000. HIVE's shares, however, outperformed peers like Circle (CRCL), which fell over 6%, and Coinbase (COIN), which dropped nearly 7%. The company's stock has gained 14% year-to-date but remains down 37% over the past month, mirroring crypto market volatility according to Yahoo Finance.

HIVE's strategic shift aligns with a broader industry trend. Competitors like Bitfarms are abandoning Bitcoin mining entirely to focus on AI, with several miners leveraging existing energy infrastructure for high-performance computing. HIVE's management emphasized its dual expertise in Bitcoin mining and AI, with Executive Chairman Frank Holmes stating, "We've been doing it for three years. I believe we're quite successful. It's much more complicated."

The company's expansion in Paraguay added 300 MW of new capacity, bringing its global hydro-powered data center footprint to 540 MW. HIVE also secured 400 MW through power purchase agreements in the country, with a path to scale to 35 EH/s by Q4 2026 using next-generation ASICs.

Analysts remain cautiously optimistic. HIVE carries a "Moderate Buy" consensus rating with an average price target of $8.00, reflecting eight "Buy" ratings, one "Hold," and one "Sell". However, the stock's net loss of $15.8 million for the quarter-attributed to accelerated depreciation of mining rigs-highlights the challenges of balancing growth investments with profitability.

As the crypto and AI sectors evolve, HIVE's dual-engine strategy positions it to capitalize on both Bitcoin's resilience and the surging demand for AI infrastructure. With its hydro-powered data centers and strategic partnerships, the company aims to navigate market volatility while expanding into high-margin computing services.