Crypto news

The high-performance computing (HPC) market continues to attract crypto miners seeking to diversify their revenue streams. In this context, BUZZ HPC, a subsidiary of HIVE Digital Technologies, has signed a strategically important three-year contract to provide cloud GPU services worth approximately $220 million. The partners in the deal are Canadian telecommunications giant Bell Canada and Cohere, a company specializing in developing artificial intelligence models.

Agreement Details and Infrastructure

According to the terms of the contract, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell graphics processors at the Bell AI Fabric facility located in British Columbia, Canada. The infrastructure launch is scheduled for late 2026 to early 2027. This indicates long-term planning and significant investments in next-generation hardware.

Financial Prospects and Impact on HIVE

HIVE Digital Technologies management estimates that this contract will lead to an increase in contracted annual recurring revenue of approximately $70 million. For comparison, the company's current figure is around $35 million. Thus, the new project is expected to triple HIVE's recurring revenue, serving as a powerful catalyst for business growth. This also demonstrates a successful transition from traditional Bitcoin mining to providing computing power for AI and HPC tasks.

Analytical Commentary: From my perspective, this deal is not just another contract but a clear signal to the market that mining companies with an energy and infrastructure base can become key players in the field of cloud computing for AI. Investments in NVIDIA Grace Blackwell GPUs, which are among the most advanced solutions for AI, indicate a high level of trust from major clients such as Bell Canada and Cohere. For HIVE, this is not only diversification but also a path to a more stable and predictable revenue model, which is especially important amid the volatility of the cryptocurrency market.