HIVE Digital Technologies saw its Bitcoin production surge 49% to 1,070 BTC in the quarter ending September, yet mining revenue dropped 7.4% to $76 million. MARA Holdings faced a similar situation. MARA’s production rose 5% to 2,247 BTC, but its coin mining revenue tumbled 34% to $159 million. As it turns out, minting more coins is no guarantee of pocketing more money.
Why Revenues Fell as Production Rose
Electricity expenses were the primary drag on HIVE’s balance sheet. The company’s power costs jumped 20% to $45.6 million, coupled with a $31.2 million non-cash impairment on mining equipment driven by difficult mining economics. Nevertheless, HIVE’s fiscal second-quarter total revenue reached $84.9 million - down 2.7% year-over-year, but beating MarketBeat analyst consensus estimates of $79.4 million. HIVE shares closed at $1.81 on the Nasdaq.
Similar pressures hit MARA. The company’s energy costs rose 12% to $48.1 million, alongside a $12 million write-down on mining equipment. However, MARA still recorded net income attributable to common stockholders of $634.4 million, up from $123.1 million in the prior year. Fair value gains on digital assets and digital asset receivables supported MARA’s net earnings.
Hundreds of Millions of Dollars Shift to AI Computing
In response to squeezed margins, HIVE shifted its focus toward artificial intelligence and High-Performance Computing (HPC) infrastructure. As a result, HPC hosting revenue jumped 71% to $8.8 million, contributing 10.4% of total quarterly revenue.
HIVE plans to allocate up to $493 million in capital expenditures over the next 36 months for HPC expansion, encompassing land acquisitions, data center infrastructure, and GPU purchases, with $145.3 million already deployed. The company also allocated $35 million to convert a Toronto facility into a Tier-III data center, alongside plans for a 100-megawatt substation expansion in Yguazú, Paraguay in 2026.
MARA is expanding its AI footprint through its subsidiary, Exaion, and a partnership with Starwood Digital Ventures. The collaboration designs computing facilities capable of flexibly shifting workloads according to economic and power grid conditions.
When Miners Start Sharing the Load
The revenue squeeze reflects a broader trend across the global Bitcoin mining sector. Last week, American Bitcoin reported shrinking mining margins, while Core Scientific announced plans to exit the mining business entirely by the end of this year.
For miners, ramping up coin output no longer automatically ensures profitability when electricity costs balloon and machine values face continuous write-downs. Paving the way for AI computing has now become a crucial move to ensure power capacity continues generating value.
Source: Cointelegraph.
Read also: What Is Bitcoin Halving?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
