HIVE Digital Technologies announced on Monday that its subsidiary BUZZ HPC has signed a five-year contract worth approximately $350 million to provide cloud computing services using GPUs to an unnamed company with a high investment grade rating.
The company expects this deal, once equipment is operational in the fourth quarter, to increase its high-performance computing revenue to approximately $500,000 per day.
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The agreement will increase BUZZ HPC's annual revenue by approximately $70 million, bringing the company's total annual revenue to around $180 million.
Of this, approximately $35 million is realized today. The remaining $145 million is in the contract pipeline and is scheduled to be deployed by the end of 2026.
This is the second major GPU deal since June. At the same site, under a previous three-year, $220 million agreement, BUZZ HPC is deploying NVIDIA Grace Blackwell systems for Bell and Cohere to provide a sovereign cloud AI solution.
CEO Aydin Kilic said, "We are pleased to announce this agreement as we accelerate towards our year-end goal of $200 million in annual revenue from our GPU cloud business."
Under the contract, BUZZ HPC will deploy a dedicated cluster of 2,016 NVIDIA Blackwell Ultra GPUs. These will be housed in GB300 NVL72 rack-scale systems, interconnected by Quantum-X800 InfiniBand networking, and using VAST Data storage.
As reported by HIVE, this deployment is based on NVIDIA's reference architecture and supports large-scale AI training and inference for enterprise clients.
The cluster is destined for the Bell AI Fabric site in Merritt, British Columbia. HIVE states the site is 100% powered by renewable hydroelectricity and uses a closed-loop liquid cooling system that does not require continuous water use. The company plans to deploy the system by the end of this year.
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The capital expenditure for the cluster, related equipment, and warranties is approximately $185 million.
HIVE stated it will fund the build in three ways. These include an upfront payment from the client of about $35 million, equal to 10% of the contract value; proceeds from a zero-coupon convertible bond issuance in June 2026; and equipment financing.
At the contract's end, HIVE will still own the infrastructure, which Kilic sees as a path to profitability. The company "is using debt financing to fund the purchase of GPUs to secure a very high internal rate of return," he said.
Executive Chairman Frank Holmes mentioned the availability of about 400 megawatts of capacity in Canada and the potential to deploy over 120,000 GPUs within two years.
IREN has a $9.7 billion cloud deal with Microsoft. Hut 8 signed a $7 billion data center lease as part of a partnership between Anthropic and Fluidstack, and TeraWulf joined a Google-funded Fluidstack joint venture worth $9.5 billion.
HIVE shares rose 4% at Friday's close and are trading up roughly 8% in Monday's pre-market. In its last quarter, the company's revenue was $79.1 million, including $7.1 million from BUZZ HPC. Its contracted GPU cloud revenue reached about $110 million.
In February, Cryptopolitan reported that the subsidiary had signed two-year contracts. The initial phase involved deploying 504 GPUs in Manitoba, with the expected High-Performance Computing (HPC) segment revenue projected to increase from about $20 million to $35 million.
