Mining giant HIVE pivots to AI: $220 million contract with Bell Canada and Cohere
The digital asset market continues to demonstrate an amazing synergy with high-performance computing (HPC). This time, the key player was HIVE Digital Technologies, whose subsidiary BUZZ HPC entered into a three-year contract to provide cloud GPU services worth approximately $220 million. The partners in the agreement were Canadian telecommunications giant Bell Canada and leading AI lab Cohere.
Deal Details and Infrastructure
Under the contract, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell graphics processors at the Bell AI Fabric site located in British Columbia, Canada. The infrastructure launch is scheduled for late 2026 to early 2027. This is a strategic move that allows HIVE not only to diversify its business but also to establish itself in the cloud computing segment for artificial intelligence.
Financial Prospects
HIVE expects this contract to generate an increase in contractual annual recurring revenue of approximately $70 million. For comparison, the company's current figure is about $35 million per year. Thus, the deal will effectively triple HIVE's revenue from HPC services, which is a strong signal for investors and confirms the trend toward the convergence of mining and AI computing.
My analysis: Such agreements are not just a one-time stroke of luck for HIVE, but a clear strategic line. The ASIC mining market is becoming increasingly competitive and capital-intensive, while demand for GPU power for training and inference of neural networks is growing exponentially. HIVE, with its experience in managing energy-intensive data centers, fits perfectly into this niche. I believe that in the next 12–18 months, we will see even more such deals from major mining companies that are repurposing their capacities for HPC and AI. This could become a new growth driver for the entire sector.