HIVE Stock Forecast & Price Target

HIVE Digital Technologies Ltd has reported an increase in FY27 revenue and Adjusted EBITDA estimates to $504 million and $189 million, respectively, primarily driven by improved gross margin assumptions. The company's mining revenue of $82.0 million exceeded initial expectations and, alongside successful operations in Paraguay, helped reduce the cost per coin to $56.2k while achieving gross profits of $42.4 million. Furthermore, the acquisition of Bitfarms' development in Paraguay is enhancing HIVE's operational efficiency, significantly boosting profitability, and positioning the company for sustained gross margin improvements as it pursues aggressive expansion plans.

HIVE Digital Technologies faces significant challenges that contribute to a negative outlook, primarily stemming from a sharp decline in mining profitability due to fluctuating cryptocurrency prices and heightened competition, which are likely to strain liquidity and hinder expansion plans. The company's anticipated adjusted EBITDA of $34.6 million fell short of prior estimates, underscoring the impact of reduced revenue from mining operations and necessitating a revision of future earnings projections. Additionally, potential regulatory restrictions on cryptocurrencies pose a risk of diminished demand, further threatening profitability and overall financial stability.