The mining empire is restructuring: BUZZ HPC signs a $220 million GPU contract
The high-performance computing (HPC) market continues to attract capital from traditional mining. A subsidiary of HIVE Digital Technologies — BUZZ HPC — has signed a three-year agreement to provide cloud GPU services for Bell Canada and Cohere. The total contract value is approximately $220 million.
Under the deal, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell graphics processors at the Bell AI Fabric site in British Columbia, Canada. The infrastructure launch is scheduled for late 2026 to early 2027. This is a strategic move that allows HIVE to diversify its business, moving away from Bitcoin volatility toward stable contractual revenues.
Company estimates show that this contract will increase annual recurring revenue by approximately $70 million. For comparison, HIVE's current figure stands at $35 million. Thus, this represents a threefold increase in operating income, which is a strong signal for investors tracking the transformation of mining companies.
Analytical Perspective
HIVE's transition from cryptocurrency mining to providing computing power for the AI sector is not just a trend but a necessity. Amidst intensifying competition in mining and declining margins, such contracts ensure long-term cash flow predictability. In my view, the success of this deal could serve as a catalyst for other public miners who are still hesitating between ASIC farms and HPC centers.