HIVE Digital Takes $84.7M Swedish VAT Charge, Posts $142.9M Quarterly Loss
HIVE sits 57% above its 52-week low of $1.73.
Summary
HIVE Digital swung to a $142.9M quarterly loss on an $84.7M Swedish VAT provision, while also disclosing $245M in new convertible notes and a $186.9M equipment purchase agreement.
Updates
· SEC 8-K — Contracted GPU Cloud ARR reached approximately $110 million, including a $75 million ARR from the Bell AI Fabric agreement supporting Cohere. HPC revenue was $7.1 million, up 52.1% sequentially.
Key Events · Earnings and Guidance · HIVE
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Swedish VAT Provision
An $84.7M non-cash provision was recorded for Swedish VAT liabilities after the Court of Appeal ruled against the company; management now deems a loss probable.
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Quarterly Loss
Q1 FY2027 net loss reached $142.9M, compared to a $35.0M profit in the prior year period, driven by the VAT provision and derivative losses.
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Convertible Note Issuances
Issued $245M aggregate principal of 0% exchangeable senior notes due 2031 ($115M in April, $130M in June) with capped call transactions.
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Equipment Purchase Agreement
Subsidiary Buzz Beta Cloud entered into a binding $186.9M equipment purchase agreement on July 17, 2026, with a $18.7M deposit paid.
Analysis · HIVE · Crypto Assets
A $84.7 million non-cash provision for Swedish VAT liabilities, following adverse court rulings, pushed HIVE Digital to a net loss of $142.9 million in Q1 FY2027, reversing a $35.0 million profit a year earlier. The quarter also saw $245 million in new 0% exchangeable senior notes, a $186.9 million equipment purchase agreement signed in July, and a cash balance of $208 million. While core mining revenue grew 77% to $72.1 million, the regulatory charge and derivative losses overwhelmed operations. The VAT provision marks a significant regulatory setback that management now deems probable, and the convertible notes introduce substantial potential dilution overhang.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 41.4% of the 324 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.38%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, HIVE was trading at $2.72 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $736.1M. The 52-week trading range was $1.73 to $7.84. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.