Mining giant HIVE pivots to AI: subsidiary BUZZ HPC signs $220 million GPU contract
In a strategic shift from traditional Bitcoin mining to high-performance computing (HPC), HIVE Digital Technologies is making a serious play in the artificial intelligence market. Its subsidiary, BUZZ HPC, has signed a three-year contract to provide cloud GPU services to Canadian telecommunications giant Bell Canada and generative AI specialist Cohere. The total value of the agreement is estimated at approximately $220 million.
Next-Generation Infrastructure
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. This is not merely equipment leasing — it involves creating a specialized cluster for training and inference of large language models. The launch of these capabilities is scheduled for late 2026 to early 2027.
From a financial perspective, the agreement fundamentally changes HIVE's revenue profile. The company estimates an increase in contracted annual recurring revenue (ARR) of approximately $70 million, compared to the current $35 million. In other words, the new contract more than doubles the company's current annual revenue from the HPC segment, sending a strong signal to investors about business diversification.
Cryptalist Analysis
This move is a logical continuation of a trend we have observed over the past year and a half: miners with access to cheap electricity and cooling infrastructure are actively repurposing their data centers for AI needs. However, it is worth noting that the contract with Bell and Cohere is not just GPU leasing. It is a partnership with Canada's largest telecom operator and an AI leader, ensuring a stable cash flow for three years ahead. For HIVE, this is not only a hedge against Bitcoin volatility but also a transformation into a full-fledged cloud provider. The main risk here is potential delays in GPU Blackwell deliveries, which traditionally face shortages in the first quarters after announcement. If HIVE manages to launch the capacities on time, this will become a benchmark case for the entire industry.