BUZZ HPC signs $220 million GPU contract: a new era for mining and AI
The high-performance computing (HPC) market continues to transform, and one key player — HIVE Digital Technologies — is making a decisive move toward artificial intelligence. Their subsidiary, BUZZ HPC, has signed a three-year contract for cloud GPU services with Bell Canada and Cohere, with a total estimated value of approximately $220 million.
This is not just a deal — it is a strategic pivot. Under the agreement, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell GPUs at the Bell AI Fabric facility in British Columbia. The launch is scheduled for late 2026 to early 2027. For a company traditionally associated with Bitcoin mining, such a contract signals diversification and adaptation to new realities.
The financial details are impressive: HIVE estimates an increase in contracted annual recurring revenue of approximately $70 million. For comparison, the company's current figure is around $35 million. This means a doubling of revenue — and that is from just one contract.
Why is this important?
Miners are increasingly pivoting toward the HPC and AI segment. ASIC devices for cryptocurrency mining are losing efficiency as network complexity grows, while GPU farms, on the other hand, are becoming a versatile tool. The collaboration with Bell Canada and Cohere is not just about leasing computing power — it is an entry into the ecosystem of enterprise cloud solutions.
From my perspective, this is the right move. The cloud GPU services market is growing exponentially, and companies that manage to carve out a niche will gain a long-term advantage. HIVE Digital Technologies demonstrates a flexibility that many other mining firms lack.
However, risks must be considered: deploying infrastructure of this scale requires significant capital expenditure and time. If the launch is delayed, the contract revenue may not materialize on schedule. But if successfully executed, this step could set a benchmark for the entire industry.