Mining giant HIVE signs a $220 million GPU contract: a new era of cloud computing
The high-performance computing (HPC) market is taking another step toward integration with blockchain infrastructure. BUZZ HPC, a subsidiary of HIVE Digital Technologies, has signed a three-year contract to provide cloud GPU services to Bell Canada and Cohere. The agreement's value is impressive: approximately $220 million.
Deal Details: Blackwell in Action
Under the contract, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell graphics processing units at the Bell AI Fabric facility located in British Columbia, Canada. This is not merely a hardware purchase—it is a strategic deployment of computing power aimed at meeting growing demand in the artificial intelligence and machine learning segment.
The infrastructure launch is scheduled for late 2026 to early 2027. HIVE estimates that this contract will generate an increase in contracted annual recurring revenue of approximately $70 million. For comparison, the company's current comparable figure stands at $35 million. Thus, we are witnessing a doubling of this key financial metric.
Analysis: Why This Matters for the Market?
This agreement is a clear signal that traditional mining companies are actively diversifying their businesses. The shift from cryptocurrency mining to providing HPC services is not just a trend but a necessity amid changing market conditions. The NVIDIA Grace Blackwell is not merely a GPU but a platform capable of competing with the best data center solutions.
Personally, I see this deal as confirmation that infrastructure built for mining can be effectively repurposed for corporate AI needs. This opens new horizons for asset capitalization and reduces dependence on cryptocurrency market volatility.