HIVE mining empire transforms: subsidiary signs $220 million GPU contract
The high-performance computing (HPC) market continues to attract crypto giants seeking to diversify their revenues. A key player in this transformation — HIVE Digital Technologies — has made another strategic move. Its subsidiary, BUZZ HPC, has signed a three-year contract to provide cloud GPU services for Canadian tech giants Bell Canada and Cohere. The total value of the agreement is estimated at $220 million.
Under the terms of the deal, BUZZ HPC will deploy 2,304 of the latest NVIDIA Grace Blackwell graphics processors at the Bell AI Fabric computing facility located in British Columbia. The launch of these capacities is scheduled for late 2026 to early 2027. This will allow the company to significantly increase its contracted annual recurring revenue: it is expected to grow to approximately $70 million, compared to the current $35 million.
Why This Matters
This contract is not just another deal. It demonstrates a fundamental shift in HIVE's business model. The company, historically associated with Bitcoin mining, is increasingly pivoting toward providing computing resources for artificial intelligence and high-performance tasks. In essence, HIVE is transforming from a pure miner into an infrastructure provider for the AI sector, ensuring a more stable and long-term cash flow.
The choice of NVIDIA Grace Blackwell GPUs is a signal to the market. These chips are designed for maximum energy efficiency and performance when working with large language models. The partnership with Bell Canada and Cohere, leaders in the Canadian AI ecosystem, confirms that HIVE sees its primary growth potential in this segment, rather than in the volatile profitability of Bitcoin.
My professional commentary: This is a perfect example of "cross-pollination" between the crypto industry and traditional AI business. Miners possess unique experience in managing vast arrays of energy-intensive equipment, making them ideal operators for AI clusters. For HIVE, this contract is not just revenue, but a strategic bet that AI computing will become more profitable and predictable than mining. If they successfully launch the capacities on time, it could become a model for the entire industry.