HIVE Digital Technologies shifts focus from bitcoin mining to AI infrastructure with a major contract.
HIVE Digital Technologies saw a notable share price increase of 10% during pre-market trading following the announcement of a substantial $220 million, three-year GPU cloud contract with Bell Canada and AI firm Cohere. This partnership marks a pivotal transition for HIVE as it moves away from its traditional bitcoin mining operations.
Under the agreement, HIVE is set to deploy 2,304 Nvidia Grace Blackwell GPUs at Bell's AI Fabric facility in Merritt, British Columbia. This infrastructure will serve as a dedicated computing platform for Cohere, which develops enterprise AI solutions for government and corporate clients throughout Canada.
All infrastructure will remain within Canada, aligning with the government's strategy to reduce reliance on foreign AI technologies. The deployment is anticipated to commence between late 2026 and early 2027, contributing an estimated $70 million in annual recurring revenue (ARR). With the existing ARR of around $35 million, HIVE's total contracted high-performance computing revenue is expected to exceed $100 million, reflecting significant progress in its transition strategy.
