Mining giant HIVE is pivoting: a $220 million contract with Bell and Cohere via GPU cloud.
The cryptocurrency mining market continues to evolve, and HIVE Digital Technologies is a prime example. Its subsidiary, BUZZ HPC, has entered into a strategic three-year contract to provide cloud GPU services. The counterparties are telecommunications giant Bell Canada and leading Canadian AI lab Cohere. The total value of the agreement is estimated at $220 million.
Under the deal, BUZZ HPC will deploy a powerful cluster of 2,304 NVIDIA Grace Blackwell graphics processing units. The infrastructure will be hosted at the Bell AI Fabric facility located in British Columbia, Canada. Commercial operations are scheduled to launch between late 2026 and early 2027.
For HIVE, this move represents a fundamental shift in focus. While the company was previously associated exclusively with Bitcoin mining, it is now actively diversifying its business toward high-performance computing (HPC) and artificial intelligence. The new contract is expected to generate approximately $70 million in annual recurring revenue. For comparison, HIVE's current annual revenue stands at around $35 million. This translates to a threefold increase in operating cash flow from the GPU segment.
From a market dynamics perspective, this is an entirely rational decision. Bitcoin miners faced a sharp compression in margins following the 2024 halving. Repurposing energy-intensive data centers for AI and rendering tasks is not just a trend but a necessity for survival. The NVIDIA Grace Blackwell, in turn, is one of the most efficient platforms for training large language models, making BUZZ HPC's offering highly sought after.
My analysis: This contract is not just a deal but a clear signal to the market. HIVE Digital Technologies is effectively creating a hybrid business model where mining revenues will be supplemented by stable, high-margin cloud contracts. If the launch proceeds without delays, we will see not just revenue growth but a fundamental revaluation of the company itself. Investors should closely monitor the pace of infrastructure deployment—this will be the primary driver of HIVE's stock performance in 2026-2027.