HIVE Digital Technologies Signs $220 Million GPU Cloud Contract for AI Startup Cohere
L'essentiel
- HIVE Digital Technologies' AI subsidiary BUZZ HPC has secured a three-year, $220 million GPU cloud contract with Bell AI Fabric to support AI startup Cohere.
- The deal involves deploying 2,304 NVIDIA GPUs in British Columbia, expected to generate $70 million in annual recurring revenue and signifies HIVE's expansion into AI infrastructure.
Résumé généré par IA
Pourquoi c'est important
HIVE Digital Technologies is expanding its AI infrastructure business, signing a major GPU cloud contract while its Bitcoin holdings decline. The broader Bitcoin mining sector is experiencing falling difficulty and profitability.
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.
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.
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.
Questions ouvertes
- What is the specific timeline for GPU deployment?
- What are the terms of the contract beyond the $220M value?
- How will this impact HIVE's overall profitability?
