Mining giant HIVE Digital Technologies is establishing itself in the AI sector: a $220 million contract with Bell Canada and Cohere
The high-performance computing (HPC) market continues to attract miners seeking revenue diversification. A subsidiary of HIVE Digital Technologies — BUZZ HPC — has signed a large-scale three-year contract to provide cloud GPU services. The agreement, valued at approximately $220 million, was signed with Canadian telecommunications giant Bell Canada and Cohere, a company specializing in artificial intelligence.
Under the deal, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell graphics processors at Bell AI Fabric facilities located in British Columbia, Canada. The infrastructure launch is scheduled for late 2026 to early 2027.
This is a strategic move that fundamentally changes HIVE's revenue structure. Currently, the company's annual recurring revenue from contracts is about $35 million. After the new project launches, an increase of approximately $70 million per year is expected. Thus, HIVE Digital Technologies will nearly triple its contract revenue, transitioning from a purely mining model to a hybrid one where HPC and AI services hold a dominant position.
It is important to note that the choice of the Bell AI Fabric site is no coincidence: Canada offers stable regulation, access to cheap electricity, and developed data center infrastructure. This allows HIVE to minimize operational risks typical of many crypto-mining jurisdictions.
Cryptalist analytical commentary: This agreement is a vivid example of how miners are adapting to the post-halving reality. Instead of relying solely on the volatile bitcoin market, HIVE Digital Technologies is betting on stable long-term contracts in the AI segment. This not only ensures predictable cash flow but also increases the confidence of institutional investors. However, the key risk is the launch timeline: delays in the supply of NVIDIA GPUs or commissioning could push the expected revenue increase to 2028.