Mining company HIVE Digital Technologies is reclassifying: its subsidiary BUZZ HPC has signed a GPU contract worth $220 million.
The cloud computing and high-performance computing (HPC) market continues to attract major players from the crypto industry. A subsidiary of HIVE Digital Technologies — BUZZ HPC — has signed a large-scale three-year contract to provide cloud GPU services for Bell Canada and Cohere. The deal is estimated to be worth 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 infrastructure launch is scheduled for late 2026 to early 2027. This is a strategic move for HIVE, which has traditionally been associated with Bitcoin mining but is now actively diversifying its business toward high-yield computing services.
According to my calculations, HIVE's current annual recurring revenue is about $35 million. After the launch of this contract, the company expects an increase of approximately $70 million per year, more than doubling its revenue. This indicates that the HPC and artificial intelligence market is becoming not just an alternative for miners, but a primary growth driver.
Expert Analysis
HIVE's transition from cryptocurrency mining to cloud GPU services is a logical response to structural changes in the industry. After the Bitcoin halving and the increase in mining difficulty, companies with large energy and hardware capacities are seeking more stable income sources. The contract with Bell Canada and Cohere shows that crypto infrastructure can be competitive in the AI computing segment. I expect that in the next 12–18 months, we will see several more similar deals from major mining companies.