HIVE Digital Technologies shares jumped 11.8% in pre-market trading on Thursday following the announcement of a significant AI infrastructure contract. According to reports from crypto.news, the company secured a $220 million, three-year GPU cloud contract with Bell Canada and AI firm Cohere, marking a major milestone in HIVE's strategic pivot away from pure-play bitcoin mining toward high-performance computing services. The deal represents a landmark convergence of cryptocurrency mining and AI infrastructure, validating the growing trend among Bitcoin miners to leverage their existing infrastructure for lucrative AI and cloud computing markets.
The contract will see HIVE's BUZZ High Performance Computing unit deploy 2,304 Nvidia Grace Blackwell GPUs at Bell's AI Fabric facility in Merritt, British Columbia. As reported by crypto.news, the infrastructure will support Cohere's enterprise AI models for Canadian government and corporate customers, with the compute layer staying on Canadian soil to match Canada's push for domestic AI systems and local control of data. Bell AI Fabric will provide the data centre and network services, while Hypertec will supply Canadian-built hardware for the cluster. The deployment is expected to go live from late 2026 to early 2027, adding approximately $70 million in annual recurring revenue.
The deployment is expected to go live from late 2026 to early 2027, adding approximately $70 million in annual recurring revenue to HIVE's current operations. According to crypto.news, combined with approximately $35 million of current realised ARR, HIVE's contracted HPC revenue target now exceeds $100 million, representing a clear signal that its infrastructure pivot is gaining serious commercial momentum. 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.
This contract represents a significant step in HIVE's transformation from traditional bitcoin mining operations to becoming a major player in Canada's sovereign AI computing infrastructure. As reported by crypto.news, the deal strengthens the company's position in the high-performance computing market while supporting Canada's national security and technological independence objectives through domestic AI computing capabilities. The partnership with established players like Bell Canada and Cohere adds credibility and opens doors to long-term, high-value contracts. For investors, the deal signals that HIVE Digital is not solely dependent on Bitcoin prices, providing a more stable, recurring revenue base compared to the volatile Bitcoin mining sector. HIVE's high-performance computing revenue rose 94% to $19.5 million in fiscal 2026, demonstrating the growing commercial success of its AI strategy.
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. According to Investing.com, 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, representing HIVE's continued expansion into European data center markets.
