BUZZ HPC signs $220 million GPU contract: betting on cloud computing and AI
BUZZ HPC, a subsidiary of HIVE Digital Technologies, has signed a three-year contract to provide cloud GPU services for Bell Canada and Cohere. The deal is valued at approximately $220 million. This is a significant step for the company, which has traditionally been associated with Bitcoin mining but is now actively diversifying its business toward high-performance computing (HPC) and artificial intelligence.
Under the contract, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell GPUs at the Bell AI Fabric facility located in British Columbia, Canada. The infrastructure launch is scheduled for late 2026 to early 2027. This is not merely equipment leasing but a strategic partnership that will allow HIVE to significantly increase its recurring revenue.
The company estimates an increase in contracted annual recurring revenue of approximately $70 million from the current $35 million. Thus, after the full launch of the project, total annual revenue from GPU services could reach $105 million. This confirms that the transition from cryptocurrency mining to cloud computing is becoming not just a trend but an economically justified strategy.
For Bell Canada and Cohere, this contract provides access to advanced computing power without the need for capital investments in their own data centers. For HIVE, it means diversifying revenue sources and reducing dependence on Bitcoin volatility. Given that the mining sector is undergoing a period of consolidation and intensifying competition, such deals are becoming critically important for survival and growth.
My Analysis
I view this move as pragmatic and timely. HIVE Digital Technologies is not merely reacting to market changes but is actively shaping its future business model. The $220 million contract is not a one-off deal but a foundation for long-term partnerships in the AI sector, where demand for GPUs is only growing. If the company successfully fulfills its obligations, it will send a strong signal to the market about the viability of the hybrid "mining + HPC" model.