Crypto news

BUZZ HPC, a subsidiary of HIVE Digital Technologies, has signed a large-scale three-year contract to provide cloud GPU services to Bell Canada and Cohere. The total value of the agreement is approximately $220 million. This is a significant step for HIVE, which has historically been associated with Bitcoin mining but is now actively diversifying its business toward high-performance computing (HPC).

Deal Details: 2304 Grace Blackwell GPUs and Bell Infrastructure

Under the contract, BUZZ HPC will deploy 2304 NVIDIA Grace Blackwell graphics processors at the Bell AI Fabric facility located in British Columbia, Canada. The launch is scheduled for late 2026 to early 2027. The choice of this specific GPU model is no coincidence: Grace Blackwell is NVIDIA's flagship solution, optimized for artificial intelligence and machine learning tasks, which perfectly aligns with the needs of Bell Canada and Cohere.

Financial Forecasts: Annual Revenue to Double

HIVE estimates that this contract will bring the company an increase in annualized contract revenue of approximately $70 million. For comparison, HIVE's current figure is around $35 million. Thus, the deal will effectively double the company's annual revenue from cloud services. These are not just numbers—they are a signal to the market that HIVE is successfully transforming from a classic miner into an HPC service provider.

My Expert Opinion

HIVE's strategy is a classic example of synergy between mining and HPC. The company already has access to cheap electricity and infrastructure for equipment placement, giving it a competitive advantage over traditional cloud providers. However, it is worth noting that the launch only in 2026–2027 is a long-term bet. The success of the deal will depend on how quickly the AI services market grows in Canada and whether HIVE can keep its operating costs at a minimum. For now, this looks like a smart move, but execution will reveal the true value of this contract.