Hive Digital Technologies, a prominent Bitcoin mining company listed on Nasdaq under ticker HIVE, saw its stock surge nearly 12% in premarket trading on Thursday. The sharp rise followed the announcement of a significant three-year GPU cloud contract valued at approximately $220 million with Bell Canada and AI firm Cohere.
Details of the Deal
Under the agreement, Hive's wholly-owned subsidiary, BUZZ High Performance Computing Inc., will deploy 2,304 Nvidia Grace Blackwell GPUs configured in GB200 NVL72 rack-scale systems. These will be housed at Bell’s data center facility in Merritt, British Columbia, and are expected to go live between late 2026 and early 2027. The computing power will support Cohere's enterprise AI models, serving Canadian federal government and corporate clients.
Financial Impact
The contract is projected to generate roughly $70 million in annual recurring revenue (ARR). This would triple Hive's current HPC ARR of $35 million, pushing its contracted HPC revenue target beyond $100 million. The hardware purchase will be funded by proceeds from a $115 million convertible note financing completed in April 2026.
Strategic Shift and Industry Context
The move underlines a broader trend of Bitcoin miners leveraging existing infrastructure—data centers, cooling, and power management—to enter the artificial intelligence and cloud computing market. Hive’s stock, which had already climbed 125% over the past year, gained further as investors welcomed the diversification away from volatile cryptocurrency mining income.
Sweden Data Center Acquisition
In a separate announcement on the same day, Hive received approval to acquire the Big Boden 32 MW data center in Sweden, where it has operated as a tenant since 2018. Owning the facility outright gives Hive greater operational control and caps nearly a decade of investment in the region totaling over 960 million SEK (~$100 million) in capital and 575 million SEK in local taxes.
While the announcements had no direct impact on the Bitcoin network, they reflect a maturation of mining companies into diversified infrastructure providers. For Hive, the deal signals a credible path to stable, recurring revenue, potentially insulating it from Bitcoin price swings.
