The former Bitcoin mining company is doubling its GPU fleet and banking on sovereign AI contracts to fuel a dramatic pivot toward high-performance computing
HIVE Digital Technologies is placing a very large bet that the future of its business looks less like proof-of-work and more like neural networks. The company has set a target of $200 million in annualized recurring revenue from its GPU AI cloud operations by the end of calendar year 2026, a figure that would represent a massive leap from its current contracted base.
As of March 31, 2026, HIVE’s contracted HPC and GPU ARR stood at roughly $35 million. Getting from $35 million to $200 million in under a year is ambitious.
The GPU buildout powering the target #
The math behind the revenue goal starts with hardware. HIVE plans to roughly double its GPU fleet from approximately 5,500 units to around 11,000, effectively scaling its compute capacity to meet growing enterprise demand for AI infrastructure.
The company recently secured a $220 million sovereign AI GPU contract with Bell AI Fabric for Cohere Inc., a deal that provides the kind of multi-year revenue visibility that makes ambitious projections at least plausible.
HIVE has also noted a fourfold increase in AI capacity in British Columbia, suggesting the company is concentrating firepower in regions where it already has established power and facility infrastructure.
The GPU deployments are being funded through a combination of instruments, including a $115 million 0% exchangeable senior note and a previous $100 million raise specifically earmarked for GPU expansion.
From hashrate to inference rates #
HIVE’s roots are in Bitcoin mining, and it hasn’t abandoned that business entirely. The company has scaled its hashrate to around 25 EH/s.
The company’s BUZZ HPC subsidiary is where the growth narrative lives now, and the fiscal year 2026 numbers tell that story clearly. Total revenue for FY2026 hit $297.8 million, a 158% increase year-over-year.
The company operates across renewable energy-powered data centers in Canada and Sweden, with an 860 MW power pipeline supporting both its mining and AI operations.
What this means for investors #
The gap between $35 million in contracted ARR and a $200 million target is the central question for anyone evaluating HIVE’s stock. That’s a nearly 6x increase in contracted revenue that needs to materialize in a matter of quarters.
Post-earnings, price targets for HIVE stock were raised to the $5 to $7 range.
The $220 million Bell AI Fabric contract provides meaningful anchor revenue, but reaching $200 million in ARR will require additional enterprise wins of similar scale.
The $115 million exchangeable note carries no interest cost, which is favorable in the near term. But exchangeable notes eventually convert to equity, meaning current shareholders could face dilution if the stock performs well enough to trigger conversion.
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