Crypto news

The high-performance computing (HPC) market continues to attract increasing attention from crypto miners diversifying their business models. This time, HIVE Digital Technologies' subsidiary — BUZZ HPC — has signed a three-year contract to provide cloud GPU services. The deal is valued at approximately $220 million, with Bell Canada and Cohere — two major players in the telecommunications and AI sectors — as the clients.

Contract Details and Technical Specifications

Under the agreement, 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 project will significantly expand HIVE's computing capacity, enabling the company to serve the growing demand for cloud computing for artificial intelligence tasks.

Financial Outlook

HIVE estimates that this contract will generate an increase in contracted annual recurring revenue of approximately $70 million. This is a significant rise compared to the current figure of $35 million. Thus, the company will double its recurring revenue from the HPC segment, confirming the success of its strategy to transition from exclusively mining cryptocurrencies to providing high-tech cloud services.

My analytical conclusion: This contract is not just a step toward diversification but a strategic maneuver that allows HIVE to strengthen its position in the AI infrastructure market. Amid the volatility of the crypto market, stable contracts with large corporations like Bell Canada ensure predictable cash flow. However, it is worth noting that the launch in 2026-2027 is a long-term bet. If the AI computing market continues to grow at the same pace, the investment will pay off handsomely. But there are also risks: technological progress could render the current generation of GPUs obsolete by the time of launch. Nevertheless, for HIVE, this is a confident step into the future.