HIVE shares jump 10% on $220M Canada sovereign AI infrastructure deal
In brief
- HIVE shares jumped 10% pre-market on announcement of $220M three-year GPU cloud contract with Bell Canada and Cohere.
- Deal deploys 2,304 Nvidia Grace Blackwell GPUs at Bell facility in Merritt, British Columbia.
- Infrastructure remains on Canadian soil supporting Ottawa's sovereign AI technology initiative.
- Deployment launches late 2026 to early 2027, adding approximately $70M annual recurring revenue.
GPU Deployment and Scale
HIVE's BUZZ High Performance Computing unit will deploy 2,304 Nvidia Grace Blackwell GPUs at Bell's AI Fabric facility in Merritt, British Columbia. The infrastructure forms the dedicated compute layer for Cohere's enterprise AI models serving Canadian government and corporate clients. Deployment is expected to go live from late 2026 to early 2027.
All infrastructure will remain on Canadian soil, supporting Ottawa's broader push to reduce reliance on foreign-controlled AI technology. The contract reflects growing demand for sovereign compute capacity among governments and enterprises seeking alternatives to U.S.-based infrastructure providers.
Revenue Impact and Strategic Shift
The deal will add roughly $70 million in annual recurring revenue. Combined with approximately $35 million of current realised ARR, HIVE's contracted HPC revenue target now exceeds $100 million. This expansion underscores the company's pivot away from commodity mining toward higher-margin infrastructure services.
"the company continues its transition away from pure-play bitcoin mining"
The revenue trajectory reflects market appetite for domestically controlled AI compute. HIVE's shift positions it as a critical infrastructure player in Canada's emerging sovereign AI ecosystem, where regulatory and geopolitical pressures are driving demand for localized alternatives to global cloud providers.
