HIVE Digital Technologies strengthens its position in AI: subsidiary BUZZ HPC signs $220 million GPU contract
The high-performance computing (HPC) market continues to attract major players from the crypto industry, and the deal by BUZZ HPC — a subsidiary of mining giant HIVE Digital Technologies — serves as a vivid confirmation of this trend. The company has signed a three-year contract to provide cloud GPU services for Canadian telecom operator Bell Canada and startup Cohere. The total value of the agreement is estimated at approximately $220 million.
Under the contract, BUZZ HPC will deploy 2304 NVIDIA Grace Blackwell GPUs at the Bell AI Fabric facility located in British Columbia, Canada. The infrastructure launch is scheduled for the period between late 2026 and early 2027. This is a strategic move that will allow HIVE to significantly diversify its revenue: the company forecasts that annual recurring contract revenue will grow to approximately $70 million — compared to the current $35 million.
The choice of partners deserves special attention. Bell Canada is one of the largest telecom operators in the country, and Cohere is a well-known developer of artificial intelligence models, actively competing with OpenAI. Integration with them not only guarantees a stable cash flow but also enhances HIVE's reputation as a reliable provider of HPC capacity.
From my perspective, this contract is a logical continuation of HIVE's strategy to transform from a classic Bitcoin miner into a multifunctional technology operator. Amid declining profitability of mining the first cryptocurrency after the halving, betting on cloud GPU services for AI workloads seems not just reasonable but a necessary measure for survival. If HIVE manages to deploy the equipment on time and meet the stated deadlines, it will strengthen its position as one of the leaders in the HPC segment among crypto companies.