Key Takeaways:
HIVE Digital Technologies signed a five-year, $350 million GPU cloud services agreement through its BUZZ HPC unit, adding about $70 million in annualized revenue.
"We are pleased to announce this agreement as we accelerate towards our year-end target of $200 million of ARR for our GPU cloud business," Aydin Kilic, president and chief executive of HIVE, said.
BUZZ HPC will deploy 2,016 NVIDIA Blackwell Ultra GPUs in GB300 NVL72 rack-scale systems at the Bell AI Fabric facility in Merritt, British Columbia, wired with Quantum-X800 InfiniBand networking and VAST Data storage. The buildout carries about $185 million in capital expenditure, funded by a roughly $35 million upfront customer deposit equal to 10 percent of the contract's value, proceeds from HIVE's zero-percent convertible bond issued in June 2026, and equipment financing. HIVE retains ownership of the infrastructure.
The agreement lifts BUZZ HPC's total annualized revenue to about $180 million, but only $35 million is active today; the remaining $145 million is contracted to come online through the fourth quarter of 2026. HIVE expects HPC/AI daily revenue to reach about $500,000 once the cluster is fully delivered, supporting its year-end target of $200 million in annualized recurring revenue for the GPU cloud business.
The contract is HIVE's second large GPU cluster agreement in two months. In June, BUZZ HPC signed a three-year, $220 million sovereign AI cloud contract at the same Merritt facility, deploying NVIDIA Grace Blackwell systems for Bell and Cohere. HIVE did not name the counterparty for the new deal, describing it only as an investment-grade enterprise customer.
The gap between contracted and realized revenue is the key risk. HIVE defines ARR as annualized weekly, daily, or quarterly revenue rather than reported revenue, and warns that projected figures may not reflect future cancellations, discounts, or service reductions. The company has not disclosed how much of its $208 million cash balance is earmarked for the GPU deployment, nor the terms or closing status of additional equipment financing.
HIVE's move fits a broader pattern of bitcoin miners converting power and data-center assets into long-term AI compute contracts. IREN struck a $9.7 billion cloud deal with Microsoft, Hut 8 signed a $7 billion data center lease tied to an Anthropic and Fluidstack partnership, and TeraWulf entered a $9.5 billion Google-backed joint venture with Fluidstack, each drawing sharp stock reactions.
HIVE reported quarterly revenue of $79.1 million, including $7.1 million from BUZZ HPC, whose revenue rose 47 percent year over year. Contracted GPU cloud annualized recurring revenue reached approximately $110 million. HIVE stock closed up 4 percent following the announcement and traded nearly 8 percent higher in pre-market trading the following Monday.
The economics now depend on execution: securing the remaining financing, receiving and commissioning the GPUs on schedule, and converting contracted capacity into live revenue by year-end. HIVE retains ownership of the infrastructure, which preserves residual value beyond the initial contract but leaves the company exposed to the obsolescence cycle of high-end AI hardware.
This article is for informational purposes only and does not constitute investment advice.
