HIVE Digital Technologies lands $220M GPU cloud contract as Bitcoin miner pivots to AI

HIVE Stock Spikes as Bitcoin Miner Lands $220M AI Infra Deal

HIVE stock climbed more than 7% on the TSX Thursday, as the company advances its long-running pivot from Bitcoin mining to AI infrastructure. HIVE Digital Technologies stock climbed more than 7% on Thursday after the company announced a $220 million GPU cloud contract with Bell Canada and Toronto-based AI firm Cohere -- its biggest deal yet and the clearest sign to date that the Bitcoin miner is now firmly in the AI infrastructure business. The contract runs three years and is delivered through HIVE's subsidiary, BUZZ High Performance Computing. It involves 2,304 NVIDIA Grace Blackwell GPUs -- chips designed for frontier AI model training and inference -- installed at Bell's purpose-built data center in Merritt, British Columbia. Cohere, a large language model company that builds AI systems for enterprises and governments, will use that compute layer to run its platform for Canadian clients. The term "sovereign AI" gets thrown around a lot. In plain terms, it means AI that runs on infrastructure inside your country's borders, on locally controlled data -- which matters a lot when the clients are government agencies. Canada has pushed hard on this, with Ottawa committing over $2 billion to domestic AI compute as part of its Sovereign AI Compute Strategy and putting $240 million directly into Cohere. This deal is the physical layer of that bet. Cohere is a fitting anchor for the arrangement. The Toronto company is one of the few anywhere building foundation models -- the base-layer AI that powers enterprise chatbots, government document processing, and everything in between -- and recently announced a merger with Germany's Aleph Alpha that values the combined company at roughly $20 billion. Bell and Cohere had an existing partnership dating to July 2025; this contract is the compute infrastructure underneath it. "Canada helped pioneer modern artificial intelligence. What we have lacked is not talent, it is industrial infrastructure to commercialize that talent at scale before others do it for us," Frank Holmes, executive chairman at HIVE Digital Technologies, said in a statement. "This partnership with Bell and Cohere is a defining moment. BUZZ HPC is the GPU factory layer that transforms Canada's AI ambitions from political promises into productive national assets" For HIVE, which reported $278.3M Bitcoin mining revenue in its last quarter, this is the latest chapter in a pivot underway since 2022. The company began its AI shift by redirecting GPU capacity from crypto mining, landing a deal with Dell for new GPUs last November and closing a $115 million convertible note offering in April to fund hardware purchases. It's not alone: Keel Infrastructure, formerly Bitfarms, sold off its last Paraguay mining facility in April and is running the same playbook. Crypto mining returns are volatile and get harder as more miners compete for block rewards. Things get even harder during crypto winters, downturns in the market, as rewards become increasingly less attractive as the price of crypto assets go down but costs stay the same or go up. On the opposite side, AI compute demand is growing fast and clients -- especially government agencies -- sign multi-year contracts at locked-in rates. Trading one bubble for another, maybe, but at least this one has a government mandate behind it. Once the deployment goes live -- expected between late 2026 and early 2027 -- HIVE expects roughly $70 million in new annual recurring revenue on top of the $35 million it already books from existing GPU operations. Its contracted HPC revenue target now exceeds $100 million. The company also has a larger project in the works: a 320-megawatt AI data center in the Greater Toronto Area designed to house more than 100,000 Nvidia GPUs at full build-out. HIVE expects the facility to generate roughly $360 million in annualized recurring revenue at full operation and has set a broader target of $660 million in annualized HPC revenue by the end of 2028.

HIVE Signs $220M GPU Cloud Contract for Cohere AI Workloads

The deal is expected to add approximately $70 million in annual recurring revenue as the company scales its AI-focused operations. Canadian Bitcoin miner HIVE Digital Technologies said its AI subsidiary BUZZ HPC has signed a three-year GPU cloud contract worth approximately $220 million with Bell AI Fabric for AI startup Cohere, expanding the company's push into high-performance computing (HPC) and AI infrastructure. The agreement calls for BUZZ HPC to deploy 2,304 NVIDIA Grace Blackwell GPUs at a Bell Canada data center in British Columbia, where the infrastructure will support Cohere's artificial intelligence models and services for enterprise and government customers. After the deployment enters service, HIVE expects the project to contribute about $70 million in contracted annual recurring revenue, increasing its contracted HPC revenue target to more than $100 million, according to the company. HIVE said it will fund the purchase of the AI infrastructure using a portion of the proceeds from the $115 million convertible note financing it completed in April. The company's stock price was up around 9% at the time of writing and almost 24% in the past month, according to Yahoo Finance data. Sector tracking exchange-traded fund CoinShares Bitcoin Mining ETF (WGMI) was up 5.4% on the day, and up more than 30% in the past month. HIVE stock is the fund's eighth-biggest holding. Source: Yahoo Finance HIVE grows AI business as Bitcoin holdings decline The deal is the latest move in HIVE's broader expansion into AI infrastructure. In May, the company said its BUZZ HPC subsidiary planned a 320-megawatt AI data center campus near Toronto, capable of supporting more than 100,000 GPUs. Earlier this month, HIVE reported that revenue from its HPC division increased to $19.5 million in fiscal 2026, nearly doubling from a year earlier. The company also said contracted annual recurring revenue from the business reached $35 million, supported by deployments of Nvidia-powered GPU clusters and new enterprise contracts. HIVE also reported a decline in its Bitcoin (BTC) treasury holdings, which fell to 150 BTC from 481 BTC a quarter earlier. Source: BitcoinTreasuries.NET Hashrate declines as AI investments grow On Thursday, The Energy Mag (formerly The Miner Mag) noted that Bitcoin mining difficulty, a measure of how hard it is for miners to produce new blocks, fell 10.09% on June 14, one of the largest downward adjustments in the network's history. The publication attributed the decline to weaker mining economics, Bitcoin's price decline, seasonal power curtailment in Texas and broader power-market dynamics. It also argued that miners dedicating power to AI and HPC projects could alter future hashrate growth by reducing the amount of capacity available for Bitcoin mining. Bitcoin mining difficulty. Source: Coinwarz.com The decline came days after Cointelegraph reported that Bitcoin mining profitability had fallen to record lows, making it harder for some operators to remain profitable. Meanwhile, miners continue expanding into AI and high-performance computing. On Tuesday, IREN completed its acquisition of Spanish data center developer Nostrum Group, while TeraWulf recently added a Kentucky development site that it said could eventually support more than 1 gigawatt of AI and HPC capacity.

HIVE Digital stock surges on $220M GPU cloud deal By Investing.com

Investing.com -- HIVE Digital Technologies Ltd. (NASDAQ:HIVE) shares jumped 11.8% in premarket trading Thursday following the announcement of a $220 million GPU cloud contract and the acquisition of a 32 MW data center in Sweden. HIVE's wholly owned subsidiary BUZZ High Performance Computing Inc. signed a three-year GPU cloud contract valued at approximately $220 million with Bell Canada (TSX:BCE) (NYSE:BCE) and Cohere Inc. The deal brings together Bell AI Fabric's national data center platform, Cohere's enterprise AI solutions, and BUZZ HPC's NVIDIA-accelerated GPU cloud infrastructure. BUZZ HPC has procured NVIDIA AI infrastructure powered by 2,304 NVIDIA Grace Blackwell GPUs as part of NVIDIA GB200 NVL72 rack-scale systems. The deployment will take place at Bell's facility in Merritt, British Columbia, and is expected to go live in late 2026 to early 2027. The company stated that its contracted HPC revenue target has surpassed $100 million. The NVIDIA GB200 deployment is expected to add approximately $70 million in annual recurring revenue to the current realized $35 million ARR. HIVE is funding the NVIDIA Grace Blackwell systems purchase using proceeds from its $115 million convertible note financing completed in April 2026. Separately, HIVE announced that the Boden Municipal Council approved the company's acquisition of the Big Boden 32 MW data center from Bodens Utvecklings AB in Sweden. HIVE has operated at the facility since 2018 and will transition from tenant to owner. The company has invested more than 960 million SEK (approximately $100 million) in the Boden region over eight years and paid more than 575 million SEK (over $60 million) in taxes. The acquisition remains subject to customary closing conditions. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.