HIVE has entered into a $220 million partnership with Bell Canada and Cohere to provide local AI computing infrastructure in Canada. Following the announcement, the company, originally known for Bitcoin mining, saw its stock price rise by approximately 10%, with the market viewing it as the latest development in HIVE's transformation towards high-performance AI computing.
2304 GPUs deployed in Canada
According to reports, HIVE's BUZZ High Performance Computing division will deploy 2,304 Nvidia Grace Blackwell GPUs at the Bell AI Fabric facility in Merritt, British Columbia.
This computing power will serve as a dedicated computing layer, supporting Cohere in providing enterprise-grade AI model services to Canadian government and corporate clients. All related infrastructure will remain within Canada, aligning with Canada's strategy of developing its domestic AI capabilities and reducing reliance on foreign technology.
Contract revenue target raised to over $100 million
This collaboration is expected to launch between the end of 2026 and the beginning of 2027. HIVE anticipates that the project will generate approximately $70 million in annual recurring revenue.
With its current realized annual recurring revenue of approximately $35 million, HIVE's contracted high-performance computing revenue target has exceeded $100 million. For a company still undergoing a business repositioning, this means that its AI infrastructure business is beginning to take on a clearer commercial scale.
- The total contract amount is US$220 million.
- 2304 new Nvidia GPUs deployed.
- The projected additional annual recurring revenue is approximately US$70 million.
Mining companies continue to shift towards AI computing
In recent years, HIVE has been continuously expanding from traditional Bitcoin mining to high-performance computing and GPU cloud services. This contract, jointly undertaken by Bell Canada and Cohere, also gives the company a clearer position in the construction of Canada's sovereign AI infrastructure.
Against the backdrop of continuously rising demand for AI computing power, these long-term contracts not only help improve revenue visibility, but also show that some crypto mining companies are trying to shift their existing power, data center and operation and maintenance capabilities to higher value-added AI businesses.
