HIVE Digital Technologies strengthens its position in AI: $220 million GPU cloud contract
A major player in Bitcoin mining and high-performance computing (HPC), HIVE Digital Technologies, is demonstrating a confident transition from cryptocurrency mining to providing infrastructure solutions for artificial intelligence. Its subsidiary, BUZZ HPC, has entered into a strategically important three-year contract for cloud GPU services with Canadian giants Bell Canada and Cohere.
Deal Scale and Infrastructure
The agreement is valued at approximately $220 million. Under the contract, BUZZ HPC will deploy 2304 NVIDIA Grace Blackwell GPUs at the Bell AI Fabric site located in British Columbia, Canada. This is one of the most powerful modern chips, specifically designed for AI and high-performance computing tasks.
Financial Prospects
The infrastructure launch is scheduled for late 2026 to early 2027. According to HIVE estimates, this contract will increase annualized contractual recurring revenue by approximately $70 million. For comparison, the company's current figure is around $35 million. Thus, we are witnessing a potential tripling of this revenue segment.
This move fully aligns with a global trend: mining companies with experience managing energy-intensive data centers are increasingly pivoting to cloud GPU services. Demand for computing power for training and inference of neural networks is growing exponentially, and HIVE Digital Technologies is taking a proactive stance here.
Cryptalist Expert Opinion: The deal with Bell and Cohere is not just diversification but a clear signal to the market. HIVE is demonstrating that it sees its future not only in Bitcoin mining but also in providing critical infrastructure for the AI economy. If the company successfully executes this contract, its valuation could be radically revised toward multiples typical of technology giants rather than commodity miners.