Mining giant HIVE Digital Technologies signs $220 million GPU contract: a strategic shift into cloud computing
The high-performance computing (HPC) market continues to attract capital from traditional mining. A subsidiary of HIVE Digital Technologies — BUZZ HPC — has signed a three-year agreement to provide cloud GPU services for Bell Canada and Cohere worth approximately $220 million. This is not just a deal, but a signal of a fundamental transformation of the company's business model.
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 service launch is scheduled for late 2026 to early 2027. According to HIVE estimates, this agreement will increase annual contracted recurring revenue to approximately $70 million, doubling the current $35 million.
Why is this important for the market?
This deal demonstrates that mining companies with excess energy capacity and experience managing large equipment fleets are actively diversifying into HPC and artificial intelligence. The use of top-tier NVIDIA Grace Blackwell GPUs is a bet on a high-margin segment where demand from cloud providers and AI startups remains anomalously high.
For HIVE, this is not just about increasing revenue, but about changing its risk profile: instead of volatile income from Bitcoin mining, the company secures long-term contracts with fixed payments. However, it is worth noting that the launch in 2026-2027 carries risks of technological obsolescence — within two years, the Blackwell generation could be replaced by a new one.
My comment: This deal is yet another confirmation that the era of "pure" mining without diversification is coming to an end. HIVE Digital Technologies is making the right strategic move, but investors should monitor implementation timelines and competition from specialized cloud providers. If the launch is delayed, $220 million could turn into $0.