HIVE Secures $220M GPU Cloud Deal with Bell Canada and Cohere, Pivoting from Bitcoin Mining to AI
HIVE Digital Technologies announced a $220 million, three-year GPU cloud contract with Bell Canada and AI firm Cohere through its subsidiary BUZZ HPC. The deal involves 2,304 NVIDIA Grace Blackwell GPUs installed at Bell's data center in Merritt, British Columbia, supporting Cohere's sovereign AI platform for Canadian clients. This contract pushes HIVE's contracted high-performance computing revenue past $100 million, with an expected $70 million in new annual recurring revenue once deployed between late 2026 and early 2027. HIVE stock rose over 7% on the TSX. The deal reflects Canada's $2 billion Sovereign AI Compute Strategy, with $240 million directly invested in Cohere. HIVE, which reported $278.3M in Bitcoin mining revenue last quarter, has been pivoting from crypto mining to AI since 2022, citing volatile mining returns versus stable multi-year AI contracts. The company also plans a 320-megawatt AI data center in the Greater Toronto Area, targeting $660 million in annualized HPC revenue by end of 2028.
Key facts
- HIVE's BUZZ HPC subsidiary signs $220M, three-year GPU cloud contract with Bell Canada and Cohere.
- Deployment of 2,304 NVIDIA Grace Blackwell GPUs at Bell's Merritt, BC facility.
- Contract pushes HIVE's contracted HPC revenue past $100M, adding $70M annual recurring revenue.
- HIVE stock rises over 7% on TSX; company pivots from Bitcoin mining to AI infrastructure.
- HIVE plans 320-megawatt AI data center in Greater Toronto Area targeting $660M annual HPC revenue by 2028.