HIVE Digital Technologies strengthens its position in HPC: a $220 million contract with Bell Canada and Cohere
The high-performance computing (HPC) market continues to attract mining companies seeking revenue diversification. A subsidiary of HIVE Digital Technologies — BUZZ HPC — has entered into a three-year agreement to provide cloud GPU services. The partners are Canadian telecommunications giant Bell Canada and Cohere, a company specializing in artificial intelligence. The total contract value is estimated at approximately $220 million.
Under the deal, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell graphics processors on Bell AI Fabric infrastructure located in British Columbia. The launch of these capacities is scheduled for late 2026 to early 2027. This is a strategic move that allows HIVE not only to monetize its energy resources but also to enter the high-margin corporate AI solutions segment.
Particular attention should be paid to the projected financial impact. HIVE estimates that this contract will generate approximately $70 million in annual recurring revenue. For comparison, the company's current figure stands at $35 million. Thus, we are observing a potential doubling of revenue from just one agreement. This indicates growing demand for specialized HPC capacities from large corporations and AI startups.
Analytical Perspective
From my point of view, this move by HIVE is not merely a reaction to the declining profitability of Bitcoin mining after the halving. It is a deliberate shift toward an infrastructure business, where long-term contracts with blue-chip companies like Bell Canada ensure a stable cash flow. However, it is worth noting that the GPU cloud services market is becoming increasingly competitive: giants such as CoreWeave and Lambda are already actively occupying the niche. HIVE's success will depend on deployment speed and the quality of customer service.