KBW kept its Market Perform rating and $4.50 price target on HIVE (NASDAQ: HIVE) on Monday after the operator posted better-than-expected EBITDA and expanded its contracted AI cloud revenue. The target implies about 67% upside from the $2.69 share price cited in the note. Analyst Stephen Glagola said HIVE generated fiscal first-quarter 2027 revenue of $79.1 million, above KBW's $77.9 million estimate but below the $82.2 million consensus.
Gross margin reached 30.6%, compared with KBW's 29.7% forecast. KBW-defined EBITDA was $15.2 million, topping the bank's $13.2 million estimate and the $11.7 million consensus. Cash G&A declined 4% sequentially to $9 million, versus KBW's $9.9 million estimate, while HIVE's adjusted EBITDA was $13.4 million.
Stay ahead of AI infrastructure deals. Get Blockspace in your inbox. HIVE's AI cloud subsidiary has secured two multi-year reserved GPU contracts in British Columbia since its previous earnings call.
The agreements carry combined annual recurring revenue of about $143 million, modestly above KBW's $135 million model and prior management guidance. The first covers 2,304 NVIDIA GB200 GPUs under a three-year arrangement with Bell AI Fabric for Cohere. It has a total contract value of about $220 million.
The second covers 2,016 NVIDIA Blackwell Ultra GPUs in GB300 NVL72 systems under a five-year contract with an investment-grade enterprise customer worth about $350 million. KBW estimated that HIVE has funded $46 million of approximately $357 million in combined GPU capex. After an expected $35 million customer prepayment for the GB300 deployment, the bank calculated that about $276 million remains.
Management previously indicated that equipment financing could cover about 80% of GPU costs, but HIVE had not announced financing when KBW published its note. HIVE ended the quarter with $208 million in cash and $11.2 million of cryptocurrencies, providing total liquidity of about $219.3 million. KBW is also seeking updates on colocation plans and a targeted Manitoba contract covering 1,500 B300 GPUs.
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