HIVE signs $220M AI contract
- HIVE Digital Technologies secured a US$220 million, three-year GPU cloud contract with Bell Canada and Cohere.
- The agreement is expected by the company to add about US$70 million in annual recurring revenue, lifting contracted HPC revenue above US$100 million.
- The deal supports HIVE’s strategy of expanding from Bitcoin mining into AI infrastructure services.
HIVE Digital Technologies signed a US$220 million, three-year GPU cloud contract with Bell Canada and Cohere, sending its shares more than 7% higher as it expands its AI infrastructure business.
The agreement will be delivered through HIVE’s BUZZ High Performance Computing unit and includes 2,304 NVIDIA Grace Blackwell GPUs at Bell’s data centre in Merritt, British Columbia.
“Canada helped pioneer modern artificial intelligence, and what we have lacked is industrial infrastructure to commercialise that talent at scale before others do it for us,” said HIVE Digital Technologies Executive Chairman Frank Holmes.
Cohere will use the computing capacity for Canadian clients, while HIVE stated the deployment is expected to generate about US$70 million in additional annual recurring revenue when it becomes operational between late 2026 and early 2027.
The company stated the contract lifts its contracted high-performance computing revenue target above US$100 million, and following the announcement the HIVE Digital Technologies share price was up more than 7% at C$3.16.
HIVE reported US$278.3 million in Bitcoin (CRYPTO:BTC) mining revenue in its most recent quarter and has been redirecting GPU resources from crypto mining to AI services since 2022.
The company secured a GPU supply agreement with Dell last November, raised US$115 million through convertible notes in April, and stated it is targeting US$660 million in annualised HPC revenue by the end of 2028 through projects including a planned 320-megawatt AI data centre in the Greater Toronto Area.
At the time of reporting, Bitcoin price was $62,741.56.
