HIVE Digital Technologies strengthens its position in the cloud GPU sector: a $220 million contract with Bell Canada and Cohere
HIVE Digital Technologies, known for its large-scale bitcoin mining operations, continues to diversify its business toward high-performance computing (HPC). Its subsidiary, BUZZ HPC, has signed a three-year contract to provide cloud GPU services for Canadian telecom giant Bell Canada and leading AI developer Cohere. The deal is valued at approximately $220 million.
Scale and Deployment Timeline
Under the agreement, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell graphics accelerators at Bell AI Fabric facilities located in British Columbia. The infrastructure launch is scheduled for late 2026 to early 2027. This strategic move will allow HIVE to significantly increase its contracted annual recurring revenue. It is expected that approximately $70 million per year will be added to the current $35 million, more than tripling the figure.
Strategic Transformation of the Miner
This contract is a vivid example of how traditional bitcoin miners are adapting to new market realities. The shift from cryptocurrency mining to providing computing power for artificial intelligence and cloud services is becoming a trend. HIVE is not just leasing equipment but building a full-fledged HPC infrastructure, indicating a long-term bet on the AI segment.
From my perspective, the deal with Bell Canada and Cohere is not just about revenue growth but a change in business model. The company is ceasing to be solely a miner and is transforming into an infrastructure provider for the AI industry. Given the current GPU capacity shortage in North America, such a contract gives HIVE a significant competitive advantage and a stable cash flow for years to come.