Shares of HIVE Digital Technologies rose 10% in premarket trading on Thursday after the company announced a $220 million, three-year GPU cloud deal with Bell Canada and artificial intelligence company Cohere. The statement stood out as a new step in the company’s process of shifting from a structure based solely on Bitcoin mining to high-performance artificial intelligence computing.
Scope of the agreement
Under the agreement, HIVE’s BUZZ High Performance Computing unit will install 2,304 Nvidia Grace Blackwell GPUs at the Bell AI Fabric facility in Merritt, British Columbia. It was stated that this infrastructure will create the special computational layer reserved for the artificial intelligence models that Cohere offers to public institutions and corporate customers in Canada.
Bell Canada is known as one of the country’s largest telecommunications companies. Cohere is a Canadian artificial intelligence company focusing on large language models and enterprise artificial intelligence applications.
Mini dictionary: GPU refers to the graphics processing unit that is used extensively especially in artificial intelligence model training and inference processes. High-performance computing defines scalable computing infrastructure for big data and complex calculations.
With this $220 million agreement, HIVE will provide sovereign AI computing infrastructure that will remain within Canada, and more than 2,300 Nvidia GPUs will be deployed.
Infrastructure to remain within Canada
According to the information provided by the company, all infrastructure will be kept within the borders of Canada. It was reported that this approach supports the Ottawa administration’s broader policy of reducing dependence on foreign-controlled artificial intelligence technologies.
The installation in question is expected to come into operation between the end of 2026 and the beginning of 2027. Upon completion, the project is expected to contribute approximately $70 million to HIVE’s annual recurring revenue.
New threshold in income target
Combined with the company’s current annual recurring revenue of approximately $35 million, the contractual high-performance computing revenue target has increased to over $100 million. This picture indicated that HIVE’s infrastructure-focused transformation has become more visible from a commercial perspective.
HIVE has recently moved beyond crypto mining and is focusing on growing its data center and AI computing capacity. The latest agreement is considered as a development that strengthens the concrete income generation potential of this strategy.
Other market headlines and recurring transaction volume data in the news were not highlighted as they were not directly linked to this development. The main focus was on the large-scale contract HIVE received for AI infrastructure based in Canada.
