HIVE and MARA Mine More Bitcoin but Revenue Falls as Mining Costs Rise
HIVE Digital Technologies and MARA Holdings increased their Bitcoin production in the September quarter compared with a year earlier, but both companies reported lower mining revenue as weaker cryptocurrency prices offset higher output. Rising electricity expenses and equipment-related charges added further pressure to their mining businesses.
Regulatory filings show that HIVE produced 1,070 Bitcoin ($BTC), representing a 49% increase year-on-year. Despite the production growth, its Bitcoin mining revenue declined 7.4% to $76 million.
MARA recorded a smaller production increase, mining 2,247 BTC, up 5% from the same period last year. However, its Bitcoin mining revenue dropped 34% to $159 million.
Higher Electricity and Equipment Costs Pressure Miners
Both companies faced increasing energy expenses during the quarter. HIVE's electricity costs climbed 20% to $45.6 million, while MARA's purchased energy costs increased 12% to $48.1 million as the company expanded its owned mining operations.
Equipment-related expenses also weighed on their financial results. HIVE recorded a $31.2 million noncash write-down on mining equipment, citing "depressed mining economics."
MARA separately wrote off $12 million involving mining rigs and equipment as part of its restructuring plans.
The results add to broader signs of pressure across the Bitcoin mining industry. American Bitcoin reported weaker mining margins last week despite recording a quarterly profit driven by treasury-related gains. Meanwhile, Core Scientific said it plans to exit Bitcoin mining entirely by the end of the year.
HIVE and MARA Expand AI and High-Performance Computing Operations
While some industry participants are reconsidering their mining operations, HIVE and MARA are pursuing a strategy that combines Bitcoin mining with artificial intelligence (AI) and high-performance computing (HPC) infrastructure.
HIVE reported that HPC hosting revenue increased 71% to $8.8 million during the September quarter, representing 10.4% of its total revenue. The company has positioned its business around combining cash flow from Bitcoin mining with recurring income from AI infrastructure services.
HIVE anticipates investing up to $493 million over 36 months to expand its HPC operations. The planned spending includes land acquisitions, data center construction and GPU purchases. According to its filing, the company had spent $145.3 million on the expansion as of the reporting period.
The company also plans to invest approximately $35 million to convert its Toronto facility into a Tier-III data center. Alongside its computing expansion, HIVE continues to develop its Bitcoin mining infrastructure, targeting a 100-megawatt substation expansion at its Yguazú site in Paraguay during 2026.
MARA is following a similar approach through its Exaion subsidiary and a partnership with Starwood Digital Ventures. The company intends to operate facilities capable of switching between different computing workloads depending on economic conditions, customer demand and electricity grid availability.
Bitcoin mining will nevertheless remain the foundation of MARA's platform, according to the company's stated strategy.
HIVE Reports Quarterly Loss While MARA Benefits From Treasury Gains
Despite the contrasting developments in their financial results, both companies reported figures reflecting the challenges facing Bitcoin mining businesses.
HIVE recorded fiscal second-quarter revenue of $84.9 million, down 2.7% from a year earlier. However, the figure exceeded the $79.4 million consensus estimate listed by MarketBeat.
The company's Nasdaq-listed shares declined 1.7% to $1.78 in after-hours trading Monday, according to Google Finance. HIVE shares had closed the regular session up 1.7% at $1.81.
MARA, meanwhile, reported net income attributable to common stockholders of $634.4 million, compared with $123.1 million in the same quarter a year earlier. Its results included substantial fair-value gains on digital assets and digital asset receivables.
However, MARA's quarterly revenue declined 35% year-on-year to $164.2 million. Diluted earnings reached $1.28 per share, compared with 27 cents a year earlier.
MARA shares were little changed at $6.64 in after-hours trading Monday after finishing the regular session 4.6% higher.
The latest results highlight a divergence between Bitcoin production growth and mining revenue at two major industry participants. While HIVE and MARA continue expanding their mining capacity, both are also investing in AI and high-performance computing as part of their broader business strategies.
source: cointelegraph
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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