HIVE secures $220M AI infrastructure contract with Bell and Cohere
In brief
- BUZZ HPC deploys 2,304 NVIDIA Grace Blackwell GPUs at Bell Canada data center in British Columbia
- Contract generates $70 million annual recurring revenue after deployment enters service
- HIVE funds GPU purchase using $115 million convertible note financing from April
- Deal increases HIVE's contracted HPC revenue target to over $100 million
Revenue Milestone and Funding
After the deployment enters service, HIVE expects the project to contribute about $70 million in contracted annual recurring revenue, increasing its contracted HPC revenue target to more than $100 million, according to the company. HIVE will fund the purchase of the AI infrastructure using a portion of the proceeds from the $115 million convertible note financing completed in April.
The move reflects HIVE's accelerating shift toward HPC and AI workloads. HIVE reported that revenue from its HPC division increased to $19.5 million in fiscal 2026, nearly doubling from a year earlier. The company also said contracted annual recurring revenue from the business reached $35 million, supported by deployments of Nvidia-powered GPU clusters and new enterprise contracts.
Expansion and Market Positioning
In May, the company said its BUZZ HPC subsidiary planned a 320-megawatt AI data center campus near Toronto, capable of supporting more than 100,000 GPUs. That infrastructure buildout aligns with the Cohere contract and positions HIVE within a competitive landscape where rivals like IREN and TeraWulf are also scaling. IREN completed its acquisition of Spanish data center developer Nostrum Group, while TeraWulf recently added a Kentucky development site that it said could eventually support more than 1 gigawatt of AI and HPC capacity.
Investor sentiment has tracked the company's AI push closely. The company's stock price was up around 9% at the time of writing and almost 24% in the past month, according to Yahoo Finance.
Bitcoin Holdings and Mining Headwinds
HIVE's pivot toward AI infrastructure has coincided with a strategic reduction in its Bitcoin exposure. HIVE also reported a decline in its Bitcoin (BTC) treasury holdings, which fell to 150 BTC from 481 BTC a quarter earlier.
The broader mining sector faced headwinds in June. Bitcoin mining difficulty, a measure of how hard it is for miners to produce new blocks, fell 10.09% on June 14, one of the largest downward adjustments in the network's history. The publication attributed the decline to weaker mining economics, Bitcoin's price decline, seasonal power curtailment in Texas and broader power-market dynamics.
