HIVE Digital Technologies (TSE: HIVE) (NASDAQ: HIVE) (FSE: YO0) has signed a five-year GPU cloud services agreement valued at approximately USD$350 million.
Announced on Monday, the deal expands HIVE’s artificial intelligence infrastructure business through its wholly owned BUZZ High Performance Computing subsidiary.
It is expected to generate approximately USD$70 million in annualized revenue.
Consequently, BUZZ HPC’s total annualized revenue will rise to about USD$180 million as HIVE brings contracted computing capacity online. That includes USD$35 million in active revenue and USD$145 million in contracted revenue expected online by year-end.
Under the agreement, BUZZ HPC will deploy 2,016 NVIDIA Blackwell Ultra GPUs using GB300 NVL72 rack-scale systems. The cluster will also use NVIDIA Quantum-X800 InfiniBand networking and VAST Data’s high-performance storage platform.
Together, the equipment allows thousands of processors to handle demanding AI workloads as one large computing system. Additionally, customers can use the cluster for AI training, inference and other large-scale enterprise computing tasks.
BUZZ HPC expects to launch the cluster later this year at Bell AI Fabric’s facility in Merritt, British Columbia. HIVE expects the NVIDIA equipment to arrive and enter service during the fourth quarter.
Consequently, HIVE expects its HPC and AI operations to generate approximately USD$500,000 in daily revenue following deployment.
HIVE expects the project to require approximately USD$185 million in capital spending, including hardware, the computing cluster and service warranties. Meanwhile, the customer will provide an upfront USD$35 million deposit, equal to roughly 10 per cent of the contract value.
HIVE plans to combine the deposit with previously announced financing and additional equipment financing to fund the deployment. The company will also retain ownership of the NVIDIA infrastructure.
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HIVE focused on USD$200m in GPU cloud revenue goal
The Merritt facility runs on renewable hydroelectricity and uses closed-loop liquid cooling designed to avoid ongoing water consumption. Furthermore, HIVE said the project combines renewable power with accelerated computing, high-speed networking and enterprise storage.
Executive chairman Frank Holmes said HIVE is applying its cryptocurrency mining infrastructure experience to its growing GPU-based AI business. He also described the five-year agreement as another step in that strategy.
HIVE has approximately 400 megawatts of Canadian capacity available for Tier III data centre development. Holmes said that capacity could support more than 120,000 GPUs within two years.
Meanwhile, president and CEO Aydin Kilic said HIVE remains focused on reaching USD$200 million in annualized GPU cloud revenue by year-end. He cited the contract’s five-year term, upfront deposit and expected stable cash flows as attractive features of the deployment.
Additionally, BUZZ HPC president Craig Tavares said the agreement expands the company’s customer base and advances larger AI infrastructure deployments.
HIVE released its fiscal first-quarter 2027 results alongside the agreement, reporting USD$79.1 million in total revenue. Revenue rose 73.5 per cent year-over-year and 10.2 per cent from the previous quarter.
Meanwhile, digital currency revenue rose 76.6 per cent year-over-year to USD$72.1 million, driven by higher Bitcoin production during the quarter. HIVE received 1,004 Bitcoin in mining rewards, up 147 per cent from a year earlier.
Average operational hashrate also climbed to 24.0 exahashes per second from 8.7 exahashes per second. Hashrate measures the computing power a cryptocurrency miner contributes to the Bitcoin network.
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Increases attributed to investments in high performance computing business
BUZZ HPC generated USD$7.1 million in revenue, up 46.7 per cent year-over-year and 52.1 per cent sequentially. The company attributed that growth to an NVIDIA B200 GPU cluster deployed at its Manitoba site.
Additionally, gross operating margin reached USD$24.2 million, equal to 30.6 per cent of revenue, compared with 24.4 per cent last quarter. Selling, general and administrative expenses reached USD$9.0 million, versus USD$5.8 million a year earlier.
HIVE attributed the increase mainly to investments in its HPC business. However, the company reported a GAAP net loss of USD$142.9 million for the quarter.
Non-cash charges included USD$84.7 million for regulatory liabilities and USD$53.7 million in depreciation. Adjusted earnings before interest, taxes, depreciation and amortization reached USD$13.4 million, or 17.0 per cent of revenue.
Additionally, HIVE held USD$208.0 million in cash and equivalents and USD$11.2 million in digital currencies on June 30.
Kilic said HIVE had roughly USD$35 million in live GPU cloud annualized revenue. Furthermore, contracted annualized revenue increased by USD$75 million through a three-year agreement supporting Cohere.
That agreement is worth roughly USD$225 million and involves Bell AI Fabric. Meanwhile, HIVE has signed a letter of intent for colocation at its Big Boden facility in Sweden.
The potential Swedish project represents approximately USD$45 million in annual revenue. Consequently, HIVE puts its broader HPC and AI annualized revenue pipeline at approximately USD$155 million.
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