Major deal in the AI field: HIVE Digital's subsidiary signs a GPU contract worth $220 million
The high-performance computing (HPC) market continues to consolidate around players from the crypto industry. BUZZ HPC, a subsidiary of mining giant HIVE Digital Technologies, has signed a strategic three-year contract to provide cloud GPU services for Canadian telecom operator Bell Canada and AI startup Cohere. The deal is valued at approximately $220 million — one of the largest contracts in the GPU-as-a-Service segment in recent months.
Deployment Details and Financial Forecasts
Under the agreement, BUZZ HPC will deploy 2,304 next-generation NVIDIA graphics processors — Grace Blackwell. The infrastructure will be hosted at the Bell AI Fabric facility located in British Columbia, Canada. The launch of the capacities is scheduled for late 2026 to early 2027.
The financial metrics of the deal are impressive: HIVE estimates the increase in contracted annual recurring revenue (ARR) at approximately $70 million. For comparison, the company's current ARR stands at about $35 million. Thus, the new contract nearly triples the annual revenue from HPC services.
Analytical Perspective
I see this deal as a clear signal: traditional mining companies are increasingly diversifying their businesses toward AI computing. HIVE, previously known solely for Bitcoin mining, is now building a full-fledged cloud platform for corporate clients. The partnership with Bell Canada and Cohere is not just a contract but a strategic alliance that could open up new market segments for HIVE.
Particular attention should be paid to the choice of the Grace Blackwell architecture. This is not just "hardware" — it is a specialized platform for training large language models. Cohere, as one of the leaders in this field, will clearly gain a computational advantage. For HIVE, this is an opportunity to establish itself in the premium segment of AI infrastructure, where margins are significantly higher than in classic mining.
My conclusion: The $220 million deal is not a one-time success but part of HIVE's long-term strategy to transform from a mining company into a world-class HPC provider. If the launch proceeds on schedule, we will see sustained revenue growth and, likely, a revaluation of HIVE's shares on the market.