Via proactiveinvestors.com
The Bitcoin miner's AI subsidiary locks in a five-year GPU cloud contract worth $70 million in annual recurring revenue, pushing its total ARR toward $180 million
HIVE Digital Technologies just landed the kind of deal that makes Wall Street forget you ever called yourself a Bitcoin miner. The company’s subsidiary, BUZZ High Performance Computing, announced a five-year agreement valued at roughly $350 million with an unnamed investment-grade enterprise customer for GPU cloud services. Shares responded accordingly, climbing as much as 13%.
The contract will deploy a cluster of 2,016 Nvidia Blackwell Ultra GPUs at the Bell AI Fabric facility in Merritt, British Columbia. It’s expected to generate approximately $70 million in annual recurring revenue, bringing BUZZ HPC’s total contracted ARR to around $180 million, within striking distance of its $200 million target.
Inside the deal #
The GPU infrastructure will run on Nvidia’s GB300 NVL72 systems, paired with Quantum-X800 InfiniBand networking and VAST Data storage.
The customer put down an upfront deposit of roughly $35 million, about 10% of the total contract value. HIVE estimates capital expenditure for the deployment at approximately $185 million, meaning the company is spending a little more than half the contract’s total value to fulfill it.
One detail worth flagging: HIVE retains ownership of all deployed infrastructure after the contract term ends. That means five years from now, the company will have fully paid-off GPU clusters that can be redeployed, leased to new customers, or sold.
The facility is expected to be operational by Q4 2026, powered entirely by renewable hydroelectric energy with closed-loop liquid cooling technology.
From Bitcoin mining to AI cloud #
This contract follows a pattern HIVE has been building over the past year. The company previously secured a $220 million contract with Bell Canada and Cohere, the Canadian AI startup that competes with OpenAI. That deal similarly involved deploying GPU infrastructure at Bell’s data center facilities in British Columbia.
With $180 million in contracted ARR across its HPC subsidiary, the company has built a recurring revenue base that dwarfs what most publicly traded Bitcoin miners generate from their AI sidelines. Bitcoin mining revenue, by nature, fluctuates with hash rate difficulty and BTC price. A five-year enterprise contract with a deposit up front does not.
The company has been publicly mining Bitcoin since 2017, operating facilities across Canada, Sweden, and Iceland.
Why the market is paying attention #
Nvidia’s Blackwell Ultra architecture is the company’s latest and most powerful GPU platform, purpose-built for AI training and inference at scale. Securing 2,016 of these chips for a committed five-year deployment signals that HIVE has the procurement relationships and operational credibility to compete for serious enterprise workloads.
The $185 million capex figure against $350 million in total contract value suggests healthy margins on the deal. The upfront deposit of $35 million helps de-risk the capital outlay considerably.
HIVE’s push toward the $200 million ARR mark also matters for how the company gets valued by institutional investors. Recurring revenue businesses typically trade at higher multiples than cyclical ones.
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