Digital asset miners HIVE Digital Technologies and MARA Holdings reported higher Bitcoin production during the September quarter compared to the previous year, yet both companies experienced a decline in mining revenue. Weaker cryptocurrency prices outweighed the production gains reported in their latest regulatory filings.
HIVE increased its Bitcoin output by 49% to 1,070 Bitcoin, though its mining revenue dropped 7.4% to $76 million. Similarly, MARA grew its production by 5% to 2,247 Bitcoin, while its mining revenue fell 34% to $159 million. Following the quarter ending Sept. 30, MARA sold 13,597 Bitcoin for approximately $1.1 billion, using $750 million of the funds to fully repay Bitcoin-backed loans and free 17,477 Bitcoin previously held as collateral.
Both firms faced higher operational expenses, including rising electricity bills and equipment write-downs due to challenging mining economics. HIVE incurred a 20% increase in electricity costs to $45.6 million and recorded a $31.2 million noncash write-down on equipment, while MARA reported a 12% rise in purchased energy costs to $48.1 million and a $12 million equipment write-off.
To counter the pressure on traditional mining operations, both companies are expanding into artificial intelligence and high-performance computing infrastructure. HIVE reported a 71% increase in high-performance computing hosting revenue and plans significant multi-year investments in data centers and GPUs. MARA is developing its AI infrastructure through its Exaion subsidiary and a partnership with Starwood Digital Ventures, aiming to balance workloads between mining and alternative computing depending on grid conditions and market demand.