Miners are retraining: HIVE Digital has signed a $220 million GPU contract
The digital asset market continues to show an interesting trend: traditional mining companies are increasingly diversifying their business towards high-performance computing (HPC) and cloud GPU services. A prime example is BUZZ HPC, a subsidiary of HIVE Digital Technologies, which has signed a three-year contract worth approximately $220 million with Bell Canada and Cohere.
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 not just a hardware supply deal, but a full-fledged cloud service that will allow HIVE to significantly increase its stable revenue.
According to my estimates, this contract could increase HIVE's annual recurring revenue by approximately $70 million. For comparison, the company's current figure is around $35 million. Thus, we are seeing a potential more than twofold growth in the HPC services segment.
Why is this important for the crypto industry?
Miners, who for decades relied solely on Bitcoin mining, are now actively seeking new revenue sources. GPU capacity, originally intended for altcoin mining, is in demand in the era of the artificial intelligence boom. HIVE Digital is not the first player to bet on a hybrid model, but the scale of the deal with Bell Canada and Cohere confirms that this trend is becoming mainstream.
My analysis: The transition of mining companies into the HPC segment is not a temporary measure, but a strategic transformation. Amid declining profitability from Bitcoin mining after the halving and growing demand for cloud computing, such contracts provide miners with a stable cash flow and reduce dependence on cryptocurrency volatility. For HIVE, this step is particularly important as it allows them to capitalize on existing infrastructure and engineering expertise.