HIVE Digital has inked a $350 million GPU cloud computing deal and is targeting $200 million in annual revenue as it pivots toward AI workloads.
HIVE Digital Technologies has signed a five-year, approximately $350 million GPU cloud services agreement through its BUZZ High Performance Computing subsidiary. The counterparty remains unnamed but was characterized as an investment-grade enterprise customer. The contract adds roughly $70 million in annualized revenue to BUZZ HPC’s portfolio, bringing the subsidiary’s total contracted annual recurring revenue (ARR) to approximately $180 million. This figure comprises $35 million currently being realized and $145 million under contract scheduled to come online through the fourth quarter of 2026.
BUZZ HPC will construct a dedicated GPU cluster comprising 2,016 NVIDIA Blackwell Ultra GPUs configured within GB300 NVL72 rack-scale systems. Operating on NVIDIA’s reference architecture, the infrastructure will utilize Quantum-X800 InfiniBand networking and VAST Data storage. The cluster will be housed at the Bell AI Fabric facility in Merritt, British Columbia, which operates on renewable hydroelectric power and employs closed-loop liquid cooling. HIVE expects the system to become operational in Q4 2026, projecting daily HPC and AI revenue of approximately $500,000 upon launch.
The deployment carries a capital expenditure of approximately $185 million. Funding will be sourced from a roughly $35 million upfront deposit from the client—representing 10% of the total contract value—proceeds from a zero-percent convertible bond issued by HIVE in June 2026, and equipment financing. HIVE will retain full ownership of the infrastructure once deployed.
This agreement marks the second major GPU cluster deal BUZZ HPC has secured in two months. In June 2026, the subsidiary finalized a three-year, $220 million sovereign AI cloud contract at the same Merritt facility, deploying NVIDIA Grace Blackwell systems for Bell and Cohere. These transactions reflect a broader industry shift as Bitcoin mining operators repurpose power infrastructure and data center capacity into long-term artificial intelligence compute contracts.
HIVE president and chief executive Aydin Kilic stated that the company is targeting $200 million in annualized recurring revenue from its GPU cloud business by year-end. On August 14, HIVE reported quarterly revenue of $79.1 million, including $7.1 million from BUZZ HPC, marking a 47% year-over-year increase for the subsidiary. At that reporting date, contracted GPU cloud ARR stood at approximately $110 million. Following the announcement, HIVE’s stock closed up 4% on August 14 and traded nearly 8% higher during Monday’s pre-market session.
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