HIVE miner transforms into an AI giant: $220 million contract with Bell Canada and Cohere
HIVE Digital Technologies continues to confidently diversify its business, and the latest step in this direction is the signing of a strategic contract worth $220 million. Its subsidiary BUZZ HPC has entered into a three-year agreement with Bell Canada and Canadian AI startup Cohere to provide cloud GPU services. This is not just a deal, but a signal that mining giants are increasingly pivoting toward the high-margin artificial intelligence sector.
Under the terms of the contract, HIVE will deploy 2,304 next-generation NVIDIA graphics processors — Grace Blackwell — on the Bell AI Fabric infrastructure located in British Columbia. The launch is scheduled for late 2026 to early 2027. The company expects this contract to generate approximately $70 million in annual recurring revenue, double the current $35 million from traditional operations.
Why this matters for the market
The deal demonstrates how miners are adapting to the post-halving reality. Instead of relying solely on volatile bitcoin mining, HIVE is building a full-fledged HPC business. Given that Cohere is one of OpenAI's main competitors and Bell Canada is the largest telecommunications operator, this agreement holds strategic significance for the entire Canadian AI ecosystem.
My expert perspective: This is not just a contract, but a model for the future of mining companies. HIVE is effectively transforming into an infrastructure provider for AI, ensuring a stable cash flow regardless of bitcoin's price. The market has already recognized this move: HIVE's shares rose on the news. I expect that in the next 12-18 months, we will see similar deals from other major miners, who will begin to actively compete with traditional cloud providers.