BUZZ HPC signs $220 million GPU contract: a new era for HIVE Digital Technologies
A subsidiary of HIVE Digital Technologies — BUZZ HPC — has officially signed a three-year contract to provide cloud GPU services to Bell Canada and Cohere. The total value of the agreement is approximately $220 million, making it one of the largest contracts in the high-performance computing (HPC) sector for a mining company.
Under the deal, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell graphics processors on the Bell AI Fabric infrastructure located in British Columbia, Canada. The system launch is scheduled for the period from late 2026 to early 2027. HIVE estimates that this contract will increase annual recurring revenue by approximately $70 million compared to the current figure of $35 million.
Strategic Shift Toward HPC
This move demonstrates a clear trend: mining companies are increasingly diversifying their businesses, shifting from cryptocurrency mining to providing computing power for artificial intelligence and cloud services. The use of NVIDIA Grace Blackwell GPUs — a top-tier solution for AI workloads — underscores HIVE's ambitions to carve out a niche in the growing HPC segment.
The contract with Bell Canada and Cohere, one of Canada's leading AI companies, not only ensures a stable cash flow for three years but also sets a precedent for other miners. Given that HIVE's current annual revenue is $35 million, the $70 million increase represents nearly a threefold boost in operating income — a powerful signal for investors.
From my expert perspective, such agreements are not just a trend but a necessity for survival in the post-halving era. Miners that can effectively convert their energy and infrastructure resources into HPC will gain a competitive advantage. However, it is worth noting that HIVE's success will depend on the timely deployment of equipment and the ability to retain clients amid growing competition from traditional cloud providers.