BUZZ HPC signs $220 million GPU contract: a strategic move by HIVE Digital Technologies
A subsidiary of HIVE Digital Technologies, BUZZ HPC, has signed a significant three-year contract to provide cloud GPU services to Bell Canada and Cohere. The total value of the agreement is estimated at approximately $220 million. This event highlights the growing trend among mining companies to diversify their revenues through high-performance computing (HPC).
Deal Details: Equipment and Location
Under the contract, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell graphics processors on the Bell AI Fabric infrastructure. The site is located in the province of British Columbia, Canada. The choice of these specific GPUs is no coincidence: the Grace Blackwell series represents the latest generation of accelerators optimized for artificial intelligence and machine learning tasks. This ensures high performance and energy efficiency, which are critical for cloud services.
Financial Prospects and Timeline
The project launch is scheduled for late 2026 to early 2027. HIVE Digital Technologies forecasts that this contract will increase its contracted annual recurring revenue by approximately $70 million. For comparison, the company's current figure is about $35 million. Thus, the deal could nearly triple this revenue segment, sending a strong signal to investors.
This move demonstrates how mining companies are adapting to new market realities. Instead of relying solely on cryptocurrency mining, they are actively entering the HPC and cloud computing sector. Using capacities originally designed for mining for AI tasks is a logical evolution. Bell Canada and Cohere, in turn, gain access to advanced computing resources without the need for capital investments in their own infrastructure.
Expert Commentary: This deal is further confirmation that the future lies in hybrid business models. HIVE Digital Technologies is not just diversifying risks but also creating a stable source of income that is less volatile than the cryptocurrency market. For the mining industry, this is a signal: those who do not adapt to HPC risk being left behind. The project's success will depend on timely launch and stable equipment operation, but the potential is obvious.