HIVE Digital has signed a $220 million contract to build AI infrastructure in Canada.
HIVE Digital Technologies has signed a three-year contract worth $220 million to deploy GPU infrastructure for sovereign artificial intelligence in Canada. This is a significant step for the company, which continues to diversify its business beyond cryptocurrency mining.
The BUZZ High Performance Computing division will install 2,304 Nvidia Grace Blackwell accelerators at a site in Merritt, British Columbia. These capacities will be used for Cohere's enterprise AI models, specifically designed for government agencies and businesses. The infrastructure launch is scheduled for late 2026 to early 2027.
This contract highlights a growing trend among crypto-mining companies, which are actively pivoting toward high-performance computing for AI. HIVE Digital, originally known as a Bitcoin miner, is now betting on long-term revenue from leasing computing power.
My professional opinion: HIVE Digital's transition into the AI infrastructure segment is not just a strategic move but a necessity given the declining profitability of mining after the halving. The $220 million contract with Cohere provides the company with a stable cash flow for three years, strengthening its market position. However, it is worth noting that the launch is only planned for late 2026, leaving room for market risks, including potential saturation of GPU capacity.