BUZZ HPC from HIVE Digital signs a $220 million GPU services contract: a bet on cloud AI
A subsidiary of HIVE Digital Technologies — BUZZ HPC — has taken a significant step in diversifying its business. The company has signed a three-year contract to provide cloud GPU services for Bell Canada and Cohere. The deal is valued at approximately $220 million.
Under the agreement, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell graphics processors at the Bell AI Fabric facility located in British Columbia, Canada. The launch is scheduled for late 2026 to early 2027. This is not just an expansion of capacity, but a strategic shift: HIVE is transitioning from exclusively Bitcoin mining to high-performance computing (HPC) for artificial intelligence needs.
Financial Impact
HIVE's current contracted annual recurring revenue is approximately $35 million. After the launch of the new GPU contract, this figure is estimated to increase by about $70 million. Thus, total contracted revenue could reach $105 million per year. This represents a significant strengthening of the financial base, especially amid the volatility of the cryptocurrency market.
The partnership with Bell Canada and Cohere — recognized leaders in telecommunications and AI — underscores confidence in HIVE's infrastructure. The company is clearly betting that demand for computing power for training and inference of AI models will only grow.
Expert comment: This contract is a vivid example of how mining companies are transforming into HPC service providers. The shift from cryptocurrency mining to cloud computing based on GPUs is a logical step for those who own energy-efficient data centers. If HIVE successfully executes this contract, we will see a wave of similar deals from other major miners. However, the key risk remains the launch timeline: by early 2027, competition in the cloud GPU market could significantly intensify.