Mining giant HIVE Digital Technologies signs a $220 million GPU contract: a strategic pivot into the cloud AI sector
HIVE Digital Technologies, known for its large-scale Bitcoin mining operations, is making a decisive move toward high-performance computing (HPC) and artificial intelligence. Its subsidiary, BUZZ HPC, has signed a three-year contract to provide cloud GPU services to Bell Canada and Canadian AI startup Cohere. The total value of the agreement is estimated at approximately $220 million.
Under the deal, HIVE will deploy 2,304 NVIDIA Grace Blackwell GPUs 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 another equipment purchase; it is a clear signal of the company's business model transformation.
Financial Forecasts and Strategic Significance
HIVE's management estimates that this contract will increase annual recurring contract revenue to approximately $70 million. For comparison, the company's current figure is around $35 million. Thus, the new agreement has the potential to more than double this revenue stream, reducing dependence on cryptocurrency market volatility.
This move is a logical continuation of the strategy we have observed among several major miners in recent years. Repurposing energy capacity and infrastructure for AI and HPC computing is not just a trend but a necessity. The ASIC mining market is becoming increasingly competitive, while demand for cloud GPUs for training large language models and generative AI continues to grow exponentially.
My professional opinion: The deal with Bell Canada and Cohere is not just a financial contract but a bid for key player status in the Canadian AI ecosystem. However, it is worth noting that the launch in 2026-2027 is a fairly distant prospect. By that time, competition in the cloud GPU services market could significantly intensify, especially given the mass deployment of new chip generations from NVIDIA and AMD. Nevertheless, for HIVE, this is the right strategic direction, allowing it to diversify risks and create a more sustainable revenue model.