Hassan Maishera
TL;DR
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HIVE Digital Technologies has signed a five-year GPU cloud services contract worth approximately $350 million.
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The unnamed investment-grade customer will use a dedicated cluster of 2,016 NVIDIA Blackwell Ultra GPUs.
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The agreement will add roughly $70 million in annualized revenue to HIVE’s BUZZ HPC subsidiary.
Bitcoin miner HIVE Digital Technologies has signed a five-year artificial intelligence cloud services agreement valued at approximately $350 million through its BUZZ High Performance Computing subsidiary.
The latest contract represents HIVE’s second major GPU infrastructure deal in two months and accelerates its diversification beyond Bitcoin mining into enterprise AI computing.
HIVE did not identify the counterparty, describing it only as an investment-grade enterprise customer.
The company announced that the agreement is expected to generate approximately $70 million in annualized revenue and increase BUZZ HPC’s total annualized revenue to roughly $180 million.
BUZZ HPC Annualized Revenue Approaches $200 Million Target
BUZZ HPC currently generates approximately $35 million in annualized revenue from deployed infrastructure. It also has another $145 million in contracted revenue scheduled to come online through the fourth quarter of 2026.
Once these deployments become operational, HIVE expects its GPU cloud subsidiary’s annualized revenue to approach $180 million.
The company is targeting $200 million in annual recurring revenue for its GPU cloud business by the end of the year.
HIVE President and CEO Aydin Kilic said the latest agreement represents another step toward achieving that target.
The company also expects its HPC and AI operations to generate approximately $500,000 in daily revenue after the new GPU cluster is delivered during the fourth quarter.
Under the agreement, BUZZ HPC will construct a dedicated cluster consisting of 2,016 NVIDIA Blackwell Ultra GPUs installed in GB300 NVL72 rack-scale systems.
The infrastructure will use NVIDIA’s Quantum-X800 InfiniBand networking technology and VAST Data storage. The complete system will be based on NVIDIA’s reference architecture for large-scale AI computing.
The cluster is designed to provide the high-speed processing, storage and networking performance required to train and run advanced artificial intelligence models.
HIVE will retain ownership of the infrastructure throughout the contract.
Deployment Carries $185 Million Capital Cost
The cluster is expected to become operational later in 2026 at the Bell AI Fabric facility in Merritt, British Columbia.
The site uses renewable hydroelectric energy and closed-loop liquid cooling, helping reduce the environmental and operational costs associated with power-intensive AI computing.
HIVE estimates that deploying the system will require approximately $185 million in capital expenditure.
The customer has provided an upfront deposit of roughly $35 million, equivalent to 10% of the agreement’s total value. HIVE will fund the remaining buildout using proceeds from its zero-percent convertible bond issued in June 2026 and equipment financing.
HIVE reported quarterly revenue of $79.1 million on Friday, including $7.1 million generated by BUZZ HPC.
The AI subsidiary’s revenue increased 47% compared with the same period last year. Before the latest agreement, its contracted GPU cloud annual recurring revenue stood at approximately $110 million.
The growing contribution from BUZZ HPC illustrates the increasing importance of AI infrastructure to HIVE’s broader business strategy.
The $350 million agreement follows another major contract signed by BUZZ HPC in June.
That three-year sovereign AI cloud agreement, valued at approximately $220 million, involves deploying NVIDIA Grace Blackwell systems at the same Merritt facility for Bell and Cohere.
The two deals reflect a wider trend among Bitcoin miners seeking to repurpose their energy access, data centers and cooling infrastructure for AI workloads.
The rapid expansion of artificial intelligence has created demand for large-scale computing capacity, offering miners an opportunity to secure longer-term and potentially more predictable revenue than cryptocurrency mining alone.
Other mining companies have made similar moves. IREN secured a $9.7 billion cloud agreement with Microsoft, while Hut 8 entered a $7 billion data-center lease linked to Anthropic and Fluidstack. TeraWulf also formed a $9.5 billion Google-backed joint venture with Fluidstack.
