TL;DR:
- BUZZ HPC, a subsidiary of HIVE Digital Technologies, signed a five-year, $350 million cloud computing contract for artificial intelligence.
- The agreement includes the deployment of 2,016 NVIDIA Blackwell Ultra graphic processing units at the Merritt facility in British Columbia.
- The company posted $79.1 million in total revenue during its most recent fiscal quarter, of which $7.1 million came from the high-performance computing segment.
Bitcoin miner HIVE Digital Technologies announced this Monday the signing of an AI cloud deal valued at approximately $350 million over five years through its subsidiary BUZZ HPC.
The company formalized this contract with an undisclosed investment-grade corporate client. Corporate projections suggest that this deployment will generate nearly $70 million in annualized recurring revenue, with the expectation of reaching $500,000 in daily revenue within its artificial intelligence unit once the equipment becomes operational during the fourth quarter of the year.
With this transaction, BUZZ HPC increases its contracted annualized revenue to nearly $180 million. Of that total, at least $35 million is already in execution, while the remaining $145 million corresponds to contracted commitments scheduled to enter commercial production by the end of 2026.
This agreement represents the second major computing capacity deal announced by the mining firm since June. At that time, the company had agreed to a three-year, $220 million supply deal to support NVIDIA Grace Blackwell systems geared toward Bell and Cohere initiatives.
Technical Infrastructure and Project Financial Structure
The technical deployment includes a dedicated cluster of 2,016 NVIDIA Blackwell Ultra GPUs interconnected via Quantum-X800 InfiniBand networking in GB300 NVL72 rack systems, backed by VAST Data storage architecture. HIVE’s official documentation indicates that this reference design is aimed at enterprise-scale artificial intelligence model training and inference.
The cluster will be located at the Bell AI Fabric facility in Merritt, British Columbia. According to technical specifications provided by the firm, the infrastructure runs on renewable hydroelectric power and utilizes a closed-loop liquid cooling system.
Estimated capital expenditure for this deployment amounts to $185 million. The company detailed that financing will be covered by an initial client deposit of $35 million—equivalent to 10% of the contract—proceeds from its zero-coupon convertible bond issued in June, and equipment financing schemes. At the end of the five years, full ownership of the infrastructure will remain under HIVE’s control.
This move aligns with the trend observed among other digital asset mining companies seeking to diversify their power facilities into high-performance computing data centers. Market data highlights similar deals in the sector, such as IREN’s $9.7 billion contract with Microsoft or Hut 8’s $7 billion lease linked to Anthropic and Fluidstack.
On the financial front, HIVE shares closed the previous Friday’s session with a 4% gain and recorded a nearly 8% increase in pre-market trading this Monday. The company is scheduled to complete the final commissioning of the GPU cluster in British Columbia by the end of the fourth quarter of 2026.
