BUZZ HPC signs $220 million GPU contract: HIVE's strategic pivot towards AI infrastructure
BUZZ HPC, a subsidiary of HIVE Digital Technologies, has officially signed a three-year contract to provide cloud GPU services to telecommunications giant Bell Canada and Canadian AI model developer Cohere. The agreement is valued at approximately $220 million, signaling a significant diversification of HIVE's business toward high-performance computing (HPC) and artificial intelligence.
Deployment Details and Expected Revenue
Under the contract, 2,304 NVIDIA Grace Blackwell GPUs will be deployed at the Bell AI Fabric computing facility in British Columbia, Canada. Infrastructure launch is scheduled for late 2026 to early 2027. HIVE forecasts that this agreement will increase its contracted annual recurring revenue by approximately $70 million from the current $35 million, more than doubling the company's HPC segment revenue.
Strategic Context for HIVE
This move is a logical continuation of HIVE's strategy to transform from a classic Bitcoin miner into an AI infrastructure provider. The company has previously invested heavily in modernizing its data centers, adapting them for GPU workloads. The partnership with Bell Canada and Cohere is not just a financial contract but a long-term signal to the market: HIVE is betting on a hybrid model where cryptocurrency mining revenues are complemented by high-margin AI contracts.
Analytical Conclusion
From my perspective, this contract demonstrates the maturity of the cloud GPU services market, where mining companies with excess energy resources and data center management expertise are becoming natural players in AI infrastructure. For HIVE, this is not merely a hedge against Bitcoin volatility but a full-fledged second business capable of providing stable cash flow in any crypto cycle. The market will likely view this diversification positively, especially amid growing demand for computing power for AI model training and inference.