HIVE Stock Plummets After Earnings Miss, But Chairman Says Volatility Is 'Non-Event'

HIVE Digital Technologies' (HIVE) stock took a hit on Tuesday after the company missed its Q4 earnings target. The company reported revenue of $71.8 million for the fourth quarter, which fell short of analyst consensus by about 9.1%. This was not the only miss, as HIVE's adjusted EBITDA turned negative $9.0 million.

Executive Chairman Frank Holmes downplayed the significance of the stock's price swings, saying it's a 'non-event' for HIVE to move up or down over 10 days. He attributed this volatility to the company's Bitcoin leverage, which makes even a 21% move normal. Holmes also pointed out that after the $115 million convertible note offering, the stock broke out of its 50-day moving average and remained above it, indicating growth.

Despite the earnings miss, HIVE is bullish on AI and has several partnerships in place to drive growth. The company's CEO Aydin Kilic mapped a route from $35 million of HPC ARR booked today to a $660 million goal by 2028. This includes building a 320-megawatt AI Gigafactory in the Greater Toronto Area.