Mining giant HIVE expands its horizons: subsidiary BUZZ HPC signs a $220 million GPU contract
A new trend is emerging in the world of cryptocurrencies and high-performance computing: major mining companies are actively diversifying their assets, shifting from digital coin mining to providing cloud computing power. A striking example is the recent move by HIVE Digital Technologies.
My analysis shows that HIVE's subsidiary, BUZZ HPC, has entered into a strategically important three-year contract for cloud GPU services. The deal with Canadian giants Bell Canada and Cohere is valued at approximately $220 million. This is not just a deal, but a clear signal to the market: miners are becoming key players in AI infrastructure.
Agreement Details and Technical Foundation
Under 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 launch of these capacities is scheduled for late 2026 to early 2027. The choice of this equipment is no coincidence: Grace Blackwell is a cutting-edge architecture optimized for artificial intelligence and high-performance computing (HPC) tasks.
Financial Forecasts and Business Impact
This contract is expected to radically change HIVE's financial structure. The company forecasts that its contracted annual recurring revenue (ARR) will grow to approximately $70 million, doubling the current figure of $35 million. This means that over the next three years, revenue from GPU cloud services will dominate, pushing traditional Bitcoin mining into the background.
Expert Analysis
This is an excellent example of business model evolution. Miners possess unique competencies: access to cheap energy, experience managing vast equipment fleets, and established relationships with chip manufacturers. The transition to the AI and HPC segment is a logical step that allows them to monetize these assets with much higher margins than the volatile cryptocurrency market. In my view, HIVE Digital Technologies is betting not just on growth, but on leadership in a new niche, which could bring investors dividends independent of Bitcoin's price.