Bitcoin miner and AI infrastructure provider HIVE Digital Technologies has secured a three-year contract worth $220 million to supply high-performance computing capacity in Canada, marking a major step in its expansion beyond cryptocurrency mining.
The agreement will deploy 2,304 Nvidia Grace Blackwell GPUs to support Bell AI Fabric and Cohere Inc. The project forms part of a broader effort to build a sovereign AI cloud, keeping infrastructure and data under Canadian oversight.
Infrastructure tied to national AI strategy
The deal is being executed through BUZZ High Performance Computing, a wholly owned HIVE subsidiary. It combines Bell’s data center operations, Cohere’s enterprise AI models, and BUZZ HPC’s GPU infrastructure to create a domestic AI stack for government and enterprise use.
The systems will run on Nvidia GB200 NVL72 rack-scale platforms, using Quantum InfiniBand networking and liquid cooling. They will be housed at Bell’s renewable-powered facility in Merritt, British Columbia, designed for efficient energy use.
The project aligns with Canada’s push to reduce reliance on foreign cloud providers, which currently account for the majority of national cloud spending, and to strengthen domestic control over critical AI infrastructure.
Revenue impact and timeline
The deployment is expected to begin operations between late 2026 and early 2027. Chairman Frank Holmes said the contract could add about $70 million in annual recurring revenue, significantly expanding the company’s current $35 million run rate from high-performance computing.
Once active, HIVE’s total contracted HPC revenue is expected to exceed $100 million, providing a more stable income stream compared to the volatility of cryptocurrency markets.
Financing and expansion strategy
Part of the hardware investment is being funded through proceeds from a $115 million convertible note completed in April. The move highlights HIVE’s capital shift toward AI infrastructure and away from reliance on bitcoin mining alone.
On the same day as the announcement, the company also secured approval to acquire the 32-megawatt Big Boden data center in Sweden. HIVE has invested around 960 million SEK in the region and plans to upgrade the facility to Tier III standards to support enterprise AI workloads.
Strong financial growth and market response
HIVE reported $297.8 million in revenue for 2026, up 158% from the previous year. Of that, $19.5 million came from high-performance computing activities, a segment expected to grow rapidly with the new contract.
Shares rose more than 11% in pre-market trading to $4.40 following the announcement. Analysts have also lifted price targets, citing the company’s shift toward predictable, long-term AI-driven revenue.
Business model shifts beyond bitcoin
The deal underscores a broader transformation in HIVE’s business model. The company is moving away from metrics tied to bitcoin mining toward performance indicators linked to AI infrastructure, contract execution, and recurring revenue.
This transition reduces exposure to cryptocurrency price swings and positions the company within the faster-growing AI sector, where demand for computing power continues to expand.
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