Crypto news

A major player in Bitcoin mining and high-performance computing (HPC) — HIVE Digital Technologies — has taken a landmark step by diversifying its business beyond cryptocurrency mining. Its subsidiary, BUZZ HPC, has signed a three-year contract to provide cloud GPU services for Canadian telecommunications giant Bell Canada and AI-focused company Cohere. The deal is valued at approximately $220 million.

Deploying Next-Generation Infrastructure

Under the agreement, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell GPUs at the Bell AI Fabric facility located in British Columbia, Canada. This deployment is not merely a hardware supply but a strategic placement of capacity at the intersection of HPC and AI, allowing HIVE to establish a strong foothold in the growing cloud computing segment for artificial intelligence. The launch is scheduled for late 2026 to early 2027.

Financial Prospects and Strategic Shift

HIVE estimates that this contract will generate an increase in contracted annual recurring revenue of approximately $70 million. For comparison, the company's current annual revenue stands at about $35 million. Thus, the deal has the potential to more than double HIVE's revenue in the cloud services segment, underscoring a significant strategic pivot from solely Bitcoin mining to providing high-tech computing power. This is particularly relevant amid growing competition in mining and stricter energy efficiency requirements.

Analytical Commentary: This move by HIVE is a vivid example of how mature mining companies are adapting to new market realities. By leveraging their expertise in managing large-scale data centers and access to cheap electricity, they are transitioning into the more profitable and less volatile sector of cloud computing for AI. The contract with Bell Canada and Cohere is not just a deal but a strategic signal to the market: the future lies in hybrid models where mining and HPC coexist, ensuring a stable cash flow.