HIVE Digital Technologies and MARA Holdings increased their Bitcoin mining output in the September quarter compared to the same period last year, but both companies reported declining mining revenues as lower Bitcoin prices offset gains in production.
Mining output rises, revenues fall
In recent regulatory filings, HIVE reported a 49% year-on-year increase in Bitcoin production, generating 1,070 BTC during the September quarter. However, its mining revenue decreased 7.4% to $76 million. MARA Holdings recorded a more modest 5% increase in production, reaching 2,247 BTC, but its mining revenue dropped sharply by 34% to $159 million.
Both firms experienced rising energy and equipment expenditures. HIVE’s electricity costs climbed 20% to $45.6 million, while MARA’s energy expenses rose 12% to $48.1 million, driven by expanded mining operations.
HIVE recorded a $31.2 million noncash equipment write-down, citing ongoing depressed mining economics. MARA also disclosed a $12 million write-off connected to mining rig restructuring initiatives.
Amid persistent challenges in the sector, American Bitcoin has reported narrowing mining margins, despite achieving a quarterly profit fueled by treasury activities. Meanwhile, Core Scientific plans to exit the mining business entirely by the end of the year.
HIVE and MARA expand into AI and computing
While Core Scientific prepares to move away from mining, both HIVE and MARA are increasing investments in artificial intelligence (AI) and high-performance computing alongside ongoing mining operations. HIVE’s high-performance computing (HPC) hosting revenue rose 71% in the quarter to $8.8 million, now accounting for more than 10% of the firm’s total revenue. HIVE describes its strategy as leveraging cash flows from mining to support recurring income from AI infrastructure.
Mini dictionary: HPC (High-Performance Computing), refers to powerful computing systems designed to solve complex computational problems far more efficiently than standard desktops. These systems are commonly employed in areas such as artificial intelligence, big data analytics, and scientific research.
HIVE projects up to $493 million in investments over the next 36 months to develop its HPC capabilities, including acquiring land, building data center infrastructure, and purchasing GPUs. As of the recent filing, HIVE has already invested $145.3 million toward this expansion. The company also plans a $35 million investment to upgrade its Toronto facility into a Tier-III data center and continues to develop mining infrastructure, including a new 100-megawatt substation planned for its Yguazú site in Paraguay by 2026.
MARA Holdings, a major crypto mining company, is expanding its AI infrastructure projects through its Exaion subsidiary and a joint effort with Starwood Digital Ventures. MARA outlined in its filings that it aims to operate energy-flexible sites capable of switching between workloads according to changing market conditions, while keeping Bitcoin mining at the core of its operations.
| Company | BTC Produced (Q3) | Mining Revenue | Electricity Costs | AI/HPC Expansion Focus |
|---|---|---|---|---|
| HIVE | 1,070 | $76 million | $45.6 million | Data centers, GPUs, Tier-III upgrade |
| MARA | 2,247 | $159 million | $48.1 million | Exaion subsidiary, flexible infrastructure |
Financial performance diverges as non-mining gains impact results
HIVE’s shares, listed on Nasdaq, edged 1.7% lower to $1.78 in after-hours trading on Monday, after closing the regular session up 1.7% at $1.81, according to Google Finance. The company reported fiscal second-quarter revenue of $84.9 million, a 2.7% decline from last year but slightly above the $79.4 million consensus estimate cited by MarketBeat.
MARA reported a jump in net income attributable to common stockholders, reaching $634.4 million for the quarter, compared to $123.1 million the previous year. This increase included significant fair-value gains on digital assets and asset receivables. The company’s quarterly revenue declined 35% year-on-year to $164.2 million, while diluted earnings per share rose to $1.28 from 27 cents. MARA shares traded little changed at $6.64 after-hours, following a 4.6% gain during the day.
Both companies are attempting to balance weaker mining economics with alternative revenue streams by accelerating expansion into AI and high-performance computing, which they hope will offer greater long-term stability as the industry evolves.
