Mining giant HIVE transforms: $220 million contract with Bell Canada and Cohere
A landmark event is unfolding in the crypto industry, extending far beyond Bitcoin mining. BUZZ HPC, a subsidiary of HIVE Digital Technologies, has signed a massive three-year contract to provide cloud GPU services. The deal with Canadian giants Bell Canada and Cohere is valued at approximately $220 million USD.
Under the agreement, BUZZ HPC will deploy 2,304 advanced NVIDIA Grace Blackwell GPUs at the Bell AI Fabric facility in British Columbia. This is not merely equipment supply — it is the creation of a powerful infrastructure for artificial intelligence computing. The project launch is scheduled for late 2026 to early 2027.
Financial Prospects and Strategic Shift
This contract fundamentally changes HIVE's financial profile. The annual recurring revenue from this agreement is expected to be around $70 million, doubling the company's current figure of $35 million. This clearly demonstrates how mining companies are diversifying their revenues, transitioning from purely energy-intensive mining to providing high-margin computing services.
Strategically, this move is a response to market evolution. While Bitcoin mining faces increasing competition and declining profitability after the halving, demand for GPU power for AI tasks continues to grow exponentially. HIVE, with significant experience in managing data centers and equipment, is capitalizing on this trend by repurposing its assets.
Analytical Commentary: This is not just a deal — it is a clear signal to the entire market. Companies that can quickly adapt their industrial capacities to the needs of the AI sector will gain a tremendous competitive advantage. Investors should closely watch how HIVE balances traditional mining with the new HPC direction. If the launch proceeds on schedule, we will witness not just revenue growth, but a fundamental rethinking of the company's business model.