HIVE mining empire pivots: $220 million GPU contract with Bell Canada and Cohere
The high-performance computing (HPC) market continues to attract capital from the crypto industry. BUZZ HPC, a subsidiary of HIVE Digital Technologies, has entered into a strategic three-year contract to provide cloud GPU services worth approximately $220 million. The partners in the deal are telecommunications giant Bell Canada and artificial intelligence platform Cohere.
Under the agreement, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell accelerators at Bell AI Fabric facilities located in British Columbia, Canada. The infrastructure launch is scheduled for late 2026 to early 2027. This is not just a lease of hardware — it is a full-fledged transition of a mining company into the high-margin cloud computing segment.
The financial parameters of the deal are impressive. HIVE estimates the increase in annual recurring contract revenue at approximately $70 million. For comparison, the company's current annual revenue is about $35 million. Thus, the new contract could more than double HIVE's operating income, with a high degree of predictability — typical recurring revenue for cloud services.
Why is this important for the market?
This move confirms a global trend: major mining companies are actively diversifying their businesses toward HPC and AI. HIVE, which owns significant capacity and experience in managing energy-intensive data centers, is leveraging its competitive advantage to enter the corporate cloud services market. Bell Canada and Cohere gain access to the latest GPUs under a long-term contract, avoiding equipment shortages and price volatility.
My analysis: This deal is a vivid example of the evolution of crypto mining. HIVE is ceasing to be just a bitcoin miner and is transforming into a full-fledged provider of computing services. Given the growing demand for GPUs from the AI sector, the contract not only ensures a stable cash flow but also creates a foundation for future growth. I expect that after the launch in 2027, HIVE shares will receive a significant boost, and other miners will follow this example by expanding their HPC operations.