Mining giant HIVE pivots: $220 million GPU cloud contract
The high-performance computing (HPC) market continues to attract mining companies seeking new revenue streams. BUZZ HPC, a subsidiary of HIVE Digital Technologies, has entered into a large-scale three-year agreement to provide cloud GPU services. The contract, valued at approximately $220 million, was signed with Bell Canada and Cohere, a leader in generative AI.
Under the deal, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell graphics processors on Bell AI Fabric infrastructure located in British Columbia, Canada. The launch of these capacities is scheduled for late 2026 to early 2027. This strategic move allows HIVE to diversify its business, reducing dependence on the volatility of the bitcoin market.
Financial Indicators and Prospects
HIVE management expects the new contract to increase annual recurring revenue by approximately $70 million. For comparison, the company's current figure is around $35 million. Thus, this represents a threefold increase in contract revenue in the HPC segment. While the company retains its core mining business, it is clearly betting on high-yield computing as a driver of future growth.
This trend—miners transitioning from cryptocurrency mining to providing computing power for AI—is becoming increasingly noticeable. Bitcoin ASICs remain a specialized tool, but GPU farms, previously used for Ethereum, are now finding applications in cloud services for corporate clients.
My expert commentary: The HIVE contract is a clear marker that mining companies are evolving into full-fledged HPC infrastructure providers. The $220 million sum and the involvement of giants like Bell Canada and Cohere confirm that demand for GPU capacity from the AI sector significantly exceeds supply. For investors, this is a signal: companies that successfully repurpose their data centers could achieve valuations far removed from traditional mining sector multiples.