HIVE mining empire shifts capacity: $220 million contract for AI giants
The digital asset market continues to show a unique trend: companies traditionally associated with Bitcoin mining are increasingly redirecting their computing resources to serve the artificial intelligence sector. A striking example is the recent move by HIVE Digital Technologies, whose subsidiary BUZZ HPC has entered into a large-scale agreement to provide cloud GPU services.
This involves a three-year contract with a nominal value estimated at approximately $220 million. The clients are Canadian telecommunications giant Bell Canada and Cohere, a company specializing in developing advanced language models. To fulfill its obligations, HIVE will deploy a fleet of 2,304 NVIDIA Grace Blackwell graphics processors. These systems will be housed at the Bell AI Fabric facility located in British Columbia, Canada.
Timeline and Financial Model
According to my data, the infrastructure launch is scheduled for late 2026 to early 2027. This is a strategically sound move, giving the company time to procure equipment and configure data centers. From a financial perspective, HIVE expects this contract to increase its annual recurring revenue by approximately $70 million. For comparison, the company's current figure stands at around $35 million. Thus, we are observing a potential tripling of the revenue base from a single agreement alone.
Analytical Commentary
Expert opinion: This move confirms my long-standing hypothesis that miners with access to cheap energy and developed infrastructure are becoming key players in the high-performance computing (HPC) market. HIVE is not just diversifying risks but creating a second sustainable business that could generate comparable, and potentially greater, profits than Bitcoin mining. However, it is worth noting that the cloud GPU services market is highly competitive, and success will depend on the timely launch and quality of service for giants like Bell and Cohere.