A massive $220 million GPU contract: HIVE Digital is changing the rules of the game in cloud mining and AI
The high-performance computing (HPC) and cloud GPU services market continues to consolidate, and HIVE Digital Technologies is taking a decisive step in this segment. The mining giant's subsidiary, BUZZ HPC, has entered into a strategic agreement with Bell Canada and Cohere worth approximately $220 million. The contract spans three years and involves deploying 2,304 NVIDIA Grace Blackwell GPUs on the Bell AI Fabric infrastructure in British Columbia, Canada.
Why This Matters for the Industry
This is not just another cloud computing contract. For HIVE, it is a clear signal of transformation: a company historically known as a Bitcoin miner is actively diversifying its business toward AI and HPC. The launch of these capacities is scheduled for late 2026 to early 2027. It is expected that after commissioning, BUZZ HPC's annual contract revenue will grow to approximately $70 million, doubling the current $35 million. Such a leap in profitability highlights the margins of the GPU segment compared to traditional mining.
Technical Details and Market Logic
The choice of NVIDIA Grace Blackwell GPUs is no coincidence. These are among the most powerful solutions for training and inference of large language models, perfectly aligning with the needs of Cohere, which specializes in enterprise AI. Hosting on the Bell AI Fabric platform ensures low latency and high throughput, critical for real-time neural network operations. For HIVE, this is also an opportunity to monetize the excess capacity of its data centers, previously used exclusively for mining.
My Expert Perspective
This contract confirms that the era of "pure" mining without an AI component is fading. Companies that fail to redirect part of their hash rate to HPC risk being left behind. For HIVE, this is not just diversification but the creation of a new, sustainable cash flow that will be less volatile than Bitcoin revenues. If the launch proceeds on schedule, we will see further growth in HIVE's stock prices, as the market will appreciate the shift from speculative mining to contract-based AI services with guaranteed revenue.