HIVE Digital signs $350 million AI cloud deal through its BUZZ HPC unit
HIVE Digital Technologies signed a five-year, $350 million GPU cloud deal through its BUZZ HPC subsidiary, adding $70 million in annualized revenue and moving the company closer to its $200 million year-end AI revenue target.
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BUZZ HPC Lands Largest AI Contract Yet
@HIVEDigitalTech has signed a five-year, $350 million GPU cloud services agreement through its wholly owned subsidiary BUZZ High Performance Computing, the company announced on August 17. The deal, struck with an undisclosed investment-grade enterprise customer, adds roughly $70 million in annualized recurring revenue and lifts BUZZ HPC's total annualized revenue run rate to approximately $180 million, according to the official press release.
The agreement calls for BUZZ HPC to deploy a dedicated AI infrastructure cluster of 2,016 NVIDIA Blackwell Ultra GPUs housed in GB300 NVL72 rack-scale systems, interconnected with NVIDIA Quantum-X800 InfiniBand networking and VAST Data's high-performance storage platform. The system is designed in accordance with NVIDIA's reference architecture to support large-scale AI training, inference, and enterprise workloads.
British Columbia Site and Path to $200 Million Target
The cluster will be deployed at the Bell AI Fabric facility in Merritt, British Columbia, a site powered entirely by renewable hydroelectric energy and equipped with closed-loop liquid cooling. Deployment is expected to be completed in the fourth quarter of 2026, at which point HIVE projects its daily HPC and AI revenue will reach approximately $500,000. Capital expenditure for the buildout totals around $185 million, funded through a $35 million upfront customer deposit, proceeds from HIVE's June 2026 zero-percent convertible bond, and equipment financing. HIVE will retain ownership of the NVIDIA infrastructure on completion.
The new contract follows a $220 million sovereign AI cloud deal signed in June at the same Merritt facility, which involved NVIDIA Grace Blackwell systems deployed for Bell and Cohere. Together, the two agreements bring BUZZ HPC within striking distance of HIVE's stated $200 million annualized GPU cloud revenue target for year-end.
HIVE's pivot mirrors a broader shift across the Bitcoin mining sector. Peers including IREN, Hut 8, and TeraWulf have each struck multi-billion-dollar AI and cloud compute agreements in recent months, repurposing their power and data center assets for long-term AI infrastructure revenue. HIVE shares rose more than 8% following the announcement.
Sources:
HIVE Digital Technologies Official Press Release
The Block: Bitcoin miner HIVE inks five-year $350 million AI cloud contract
Investing News Network: HIVE BUZZ HPC $350 Million AI Cloud Agreement
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