Elon Musk

Hive

<a href="https://www.thestreet.com/crypto/tag/hive-digital-technologies" rel="noopener noreferrer nofollow">HIVE Digital Technologies</a> has spent the past year building an artificial intelligence (AI) cloud business alongside its <a href="https://www.thestreet.com/crypto/tag/bitcoin-mining" rel="noopener noreferrer nofollow">Bitcoin mining</a> operations.&nbsp;
On its latest earnings call, management put a number on where it expects that combination to take the company next.
HIVE is targeting about $500 million in combined annual&nbsp;revenue&nbsp;run-rate (ARR) by early calendar 2027, President and CEO Aydin Kilic <a href="https://www.fool.com/earnings/call-transcripts/2026/11/10/hive-digital-hive-q2-2027-earnings-call-transcript/" rel="noopener noreferrer nofollow">said</a> during the company’s fiscal second-quarter earnings call on Nov. 10.
Revenue run rate estimates how much a company would generate over a full year if it continued earning revenue at its current pace.
HIVE calculates it by annualizing its weekly, daily or quarterly revenue.
The company cautions that ARR can change with cancellations, discounts or downgrades and is not the same as reported revenue.
<a href="https://www.thestreet.com/crypto/markets/how-hive-added-more-mining-power-in-six-months-than-most-miners-add-in-years-" rel="noopener noreferrer nofollow">Related: How HIVE added more mining power in six months than most miners add in years</a>
<h3 id="bitcoin-mining-and-gpu-cloud-split-the-target">Bitcoin mining and GPU cloud split the target</h3>
Kilic broke the $500 million goal into two parts.
Bitcoin mining, HIVE’s original business, is running at about $300 million in annual revenue, he said.&nbsp;
The rest is expected to come from <a href="https://www.thestreet.com/crypto/tag/buzz-hpc" rel="noopener noreferrer nofollow">BUZZ HPC</a>, the subsidiary that rents out <a href="https://www.thestreet.com/crypto/tag/nvidia" rel="noopener noreferrer nofollow">Nvidia</a> graphics processing units (GPUs), the chips used to train and run AI models.&nbsp;HIVE is targeting about $200 million in GPU cloud ARR by the end of calendar 2026.
That GPU business is still small today but has commitments lined up. HIVE <a href="https://www.hivedigitaltechnologies.com/news/hive-reports-q2-revenue-of-849-million-with-ai-gpu-revenue-expanding-70-as-dual-engine-model-drives-resilience-with-139-million-in-cash-on-the-balance-sheet/" rel="noopener noreferrer nofollow">reported</a> about $40 million in live GPU cloud ARR as of Nov. 9, or roughly $110,000 a day, Kilic said.&nbsp;
Including capacity that is signed but not yet running, contracted GPU cloud ARR stands at about $185 million.
Most of that contracted figure comes from two agreements:
<ul>
 <li>A three-year, approximately $225 million sovereign AI contract supporting AI company Cohere, worth about $75 million a year.</li>
 <li>A five-year, approximately $350 million agreement with an investment-grade enterprise customer, worth about $70 million a year.</li>
</ul>
HIVE has not named the second customer.
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<h3 id="signed-contracts-and-chip-prices-shape-the-math">Signed contracts and chip prices shape the math</h3>
The Cohere contract shows how HIVE plans to pay for its expansion.&nbsp;
The chips for that deal are funded largely by a <a href="https://www.thestreet.com/crypto/innovation/hive-lines-up-129-million-to-buy-nvidia-ai-chips" rel="noopener noreferrer nofollow">$129 million, three-year loan at a fixed 9% interest rate</a> that HIVE announced in October.
Kilic <a href="https://www.fool.com/earnings/call-transcripts/2026/11/10/hive-digital-hive-q2-2027-earnings-call-transcript/" rel="noopener noreferrer nofollow">said</a> the contract brings in about $75 million a year, compared with roughly $49 million a year in loan payments.&nbsp;
Once the loan is repaid, HIVE will own the GPUs outright, according to the company. The chips are expected to ship before the end of the calendar year.
Kilic also pointed to rising GPU rental prices. He put current rates at about $4.50 per GPU per hour “and even higher.”&nbsp;
HIVE said in its results release that current market prices are higher than the prices it locked in on contracts six months ago.
The company is targeting about 80% EBITDA margins on new GPU cloud deals, Kilic said. EBITDA is a measure of operating profit before interest, taxes, depreciation and amortization.&nbsp;
BUZZ HPC’s gross margin was 51% in the latest quarter, compared with 34% for mining.
Looking further ahead, HIVE is aiming for about $700 million in total high-performance computing ARR by the end of 2028.&nbsp;
The company says that target is not contracted and depends on financing, construction, customer commitments and market conditions.
<h3 id="more-on-hive-at-thestreet-roundtable">More on HIVE at TheStreet Roundtable:</h3>
<ul>
 <li><a href="https://www.thestreet.com/crypto/markets/canaccord-sees-393-upside-in-hive-with-a-10-price-target" rel="noopener noreferrer nofollow">Canaccord sees 393% upside in HIVE with a $10 price target</a></li>
 <li><a href="https://www.thestreet.com/crypto/markets/hive-ceo-says-elon-musk-is-right-about-neoclouds-but-wrong-about-hive" rel="noopener noreferrer nofollow">HIVE CEO says Elon Musk is right about neoclouds but wrong about HIVE</a></li>
 <li><a href="https://www.thestreet.com/crypto/innovation/wall-street-prices-hive-like-a-bitcoin-miner-but-analysts-are-missing-the-ai-business-" rel="noopener noreferrer nofollow">Wall Street prices HIVE like a Bitcoin miner, but analysts are missing the AI business</a></li>
</ul>
<h3 id="sweden-and-canada-sit-outside-today-s-numbers">Sweden and Canada sit outside today’s numbers</h3>
Some of HIVE’s pipeline is not yet counted in its contracted figures.
The company has signed a letter of intent with an investment-grade customer for long-term colocation at its <a href="https://www.thestreet.com/crypto/innovation/hive-digital-acquires-32-mw-swedish-data-center-after-8-years-as-tenant" rel="noopener noreferrer nofollow">32-megawatt Boden facility in Sweden</a>.&nbsp;
HIVE says the deal could bring in about $45 million a year. It is not included in contracted ARR and still needs a definitive agreement.
Kilic said deal terms and lender structuring are the remaining steps.&nbsp;
<blockquote>
 “We don’t want to rush into a deal just for the sake of reporting new top line revenue,” he said.
</blockquote>
In Canada, HIVE has set aside about 400 megawatts of utility power for AI-grade data centers, more than 320 megawatts of it in Ontario.&nbsp;
Projects include a planned Greater Toronto Area campus and a smaller data center near Toronto’s airport. Kilic said Canada is currently the company’s lead market for new AI capacity.
HIVE’s <a href="https://www.hivedigitaltechnologies.com/news/hive-reports-q2-revenue-of-849-million-with-ai-gpu-revenue-expanding-70-as-dual-engine-model-drives-resilience-with-139-million-in-cash-on-the-balance-sheet/" rel="noopener noreferrer nofollow">current numbers</a> give the targets a starting point. The company reported revenue of $84.9 million for the quarter ended Sept. 30, including $8.8 million from its AI cloud business, up 70.7% from a year earlier.&nbsp;
It ended the quarter with $139.0 million in cash and $22.6 million in digital currencies.
Kilic said the company’s priority this quarter was protecting its balance sheet. “Cash is king,” <a href="https://www.fool.com/earnings/call-transcripts/2026/11/10/hive-digital-hive-q2-2027-earnings-call-transcript/" rel="noopener noreferrer nofollow">he said</a>.
Remaining capital will go toward assets that can produce revenue in the near term, according to Kilic.
<a href="https://www.thestreet.com/crypto/markets/hive-posts-84-9-million-fiscal-q2-2027-revenue-with-ai-cloud-sales-up-70" rel="noopener noreferrer nofollow">Related: Hive posts $84.9 million fiscal Q2 2027 revenue with AI cloud sales up 70%</a>

Hive sets $500 million annual revenue run-rate goal for early 2027

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