Mining giant HIVE signs $220 million GPU contract: betting on AI cloud services
In a strategic shift from traditional Bitcoin mining to high-performance computing (HPC), HIVE Digital Technologies' subsidiary — BUZZ HPC — has signed a three-year contract to provide cloud GPU services. The deal, targeting Canadian telecommunications operator Bell Canada and AI lab Cohere, is valued at $220 million.
Under the agreement, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell GPUs at Bell AI Fabric's facility in British Columbia, Canada. The infrastructure launch is scheduled for late 2026 to early 2027. According to HIVE estimates, this contract is expected to boost annual recurring revenue to approximately $70 million, doubling the current figure of $35 million.
Strategic Diversification
The shift from ASIC mining to GPU cloud computing is not accidental but a calculated move. The AI infrastructure market is growing exponentially, and HIVE Digital Technologies is clearly aiming to carve out its niche by leveraging its expertise in managing energy-intensive data centers. The contract with Bell Canada and Cohere is not just a deal but a demonstration of mining companies' ability to transform into HPC service providers.
It is worth noting that the choice of NVIDIA Grace Blackwell GPUs (Blackwell architecture) indicates a focus on the most advanced computing power required for training large language models and other resource-intensive AI tasks. This also suggests that HIVE is betting on long-term partnerships with market leaders.
My Expert Perspective
This contract is a strong signal for the entire crypto sector. Miners that previously relied solely on Bitcoin's volatility are now actively seeking stable, long-term revenue streams in the AI field. However, the success of such diversification will depend on HIVE's ability to efficiently manage energy consumption and compete with traditional cloud providers. If the launch proceeds on schedule, the company could become a key player at the intersection of mining and HPC.