Bitcoin miner HIVE inks five-year $350 million AI cloud contract, adds $70 million in annualized revenue

Bitcoin miner HIVE Digital Technologies (HIVE) has signed a five-year GPU cloud services agreement worth about $350 million through its BUZZ High Performance Computing subsidiary, expanding its AI business with a second big deal in two months.

HIVE did not name the counterparty, describing it only as an investment-grade enterprise customer.

The contract adds roughly $70 million in annualized revenue and brings BUZZ HPC's total annualized revenue to about $180 million, split between $35 million realized today and $145 million contracted to come online through the fourth quarter of 2026, HIVE said.

BUZZ HPC will build a dedicated cluster of 2,016 NVIDIA Blackwell Ultra GPUs in GB300 NVL72 rack-scale systems, wired with Quantum-X800 InfiniBand networking and VAST Data storage, based on NVIDIA's reference architecture.

The system is expected to go live later this year at the Bell AI Fabric facility in Merritt, British Columbia, which runs on renewable hydroelectric power and closed-loop liquid cooling.

Capital expenditure for the deployment is about $185 million. The buildout is supported by a roughly $35 million upfront customer deposit equal to 10% of the contract value, proceeds from HIVE's June 2026 zero-percent convertible bond, and equipment financing.

HIVE retains ownership of the infrastructure and expects its HPC/AI daily revenue to reach about $500,000 once the cluster is delivered in the fourth quarter.

"We are pleased to announce this agreement as we accelerate towards our year-end target of $200 million of ARR for our GPU cloud business," said Aydin Kilic, president and chief executive of HIVE.

HIVE reported quarterly revenue of $79.1 million on Friday, including $7.1 million from BUZZ HPC. The subsidiary's revenue rose 47% year over year, while contracted GPU cloud ARR reached approximately $110 million.

AI pivot

The agreement is HIVE's second large GPU cluster in two months.

Back in June, BUZZ HPC signed a three-year, $220 million sovereign AI cloud contract at the same Merritt facility, deploying NVIDIA Grace Blackwell systems for Bell and Cohere.

The move fits a broad pattern of bitcoin miners converting power and data-center assets into long-term AI compute contracts.

IREN struck a $9.7 billion cloud deal with Microsoft, Hut 8 signed a $7 billion data center lease tied to an Anthropic and Fluidstack partnership, and TeraWulf entered a $9.5 billion Google-backed joint venture with Fluidstack, each drawing sharp stock reactions.

HIVE stock closed up 4% on Friday and traded nearly 8% higher in Monday's pre-market session, according to The Block's crypto equities page.