HIVE Digital Technologies (NASDAQ: HIVE) saw its shares climb more than 11% in premarket trading Thursday after the company announced that its BUZZ HPC division had secured a three-year, $220 million GPU cloud contract with Bell AI Fabric and Cohere. The agreement marks a significant step in HIVE's transition from a pure-play bitcoin miner into a provider of artificial intelligence infrastructure.
According to data from Public, HIVE traded at $4.42 as of 9:00 a.m. ET, up 11.34% from its prior close of $3.97. The regular Nasdaq session was set to begin at 9:30 a.m., with markets closed Friday for the Juneteenth holiday.
Contract Details and Revenue Impact
The deal calls for BUZZ HPC to install 2,304 Nvidia Grace Blackwell GPUs at Bell's data center in Merritt, British Columbia. These chips are designed for demanding AI workloads, and Cohere will use the platform to run its foundation models and enterprise AI tools. All infrastructure will remain in Canada, a model known as sovereign AI, ensuring data and computing stay within the country.
HIVE expects the contract to generate approximately $70 million in annual recurring revenue (ARR), pushing its total contracted high-performance computing revenue above $100 million. CEO Aydin Kilic noted that the GB200 deployment is slated to go live in late 2026 or early 2027, adding $70 million in contracted ARR on top of the current $35 million in realized ARR.
Strategic Pivot Beyond Bitcoin Mining
The announcement comes as investors seek evidence that HIVE's AI-compute segment can complement its bitcoin mining operations. Unlike rivals such as Marathon Digital, Riot Platforms, and CleanSpark, whose stocks are heavily tied to bitcoin's price and mining economics, HIVE is positioning itself with diversified revenue streams. Bitcoin traded near $64,322, down about 1%, underscoring the need for alternative growth drivers.
HIVE Executive Chairman Frank Holmes described the agreement as a “defining moment,” while Bell AI Fabric President Michel Richer said it enables organizations to “move from experimentation to production.” Michael Pelosi, Cohere's Canada head, emphasized that the platform offers AI “built for real use,” and BUZZ HPC President Craig Tavares noted that Canada is “building the factories to power it.”
Financial Context and Risks
HIVE reported fiscal 2026 revenue of $297.8 million, with digital currency mining contributing $278.3 million and high-performance computing hosting bringing in $19.5 million. The company posted a GAAP net loss of $148.4 million. While the AI contract is substantial relative to existing compute revenue, execution remains key.
HIVE also announced that it received approval from Boden Municipal Council to acquire the 32-megawatt Big Boden data center in northern Sweden, which it has leased since 2018. The company plans to upgrade the facility to Tier III standards for higher redundancy and uptime, targeting enterprise AI and HPC workloads.
However, the contract does not provide immediate cash flow. HIVE highlighted risks including equipment delays, setup challenges, customer demand, credit risk, power costs, pricing pressure, regulatory changes, and capital needs. In a June 16 prospectus, HIVE disclosed it had sold 29.2 million shares for $85.3 million under its equity distribution plan, leaving about $214.7 million of stock that could still be sold, creating a potential dilution overhang.
Market Context
Broader market sentiment was positive, with Nasdaq 100 futures up 1.49% early Thursday, according to Reuters. The session also carried added structure risk due to derivatives expiries ahead of the Juneteenth break. For now, HIVE's premarket surge reflects optimism, but the real test lies in installing GPUs, maintaining margins, and converting contracted ARR into actual revenue—all before any funding gaps or bitcoin volatility cloud the narrative.
