Hive gains 10% after securing Canada sovereign AI contract with Bell Canada
HIVE Digital Technologies shares rose about 10% in pre-market after it said its BUZZ High Performance Computing unit won a $220 million, three-year GPU cloud contract with Bell Canada and AI firm Cohere. The deal calls for 2,304 Nvidia Grace Blackwell GPUs at Bell’s AI Fabric in Merritt, BC, to support Cohere’s enterprise models for Canadian government and corporate clients. Deployment is expected late 2026–early 2027, adding about $70 million in annual recurring revenue, taking contracted HPC r
New multi-year HPC revenue contract materially supports HIVE’s pivot away from bitcoin mining and should drive near-term sentiment and forward revenue expectations.
HIVE announced a $220M, three-year GPU cloud contract with Bell Canada and Cohere, deploying 2,304 Nvidia Grace Blackwell GPUs and targeting >$100M contracted HPC revenue.
Likely continued upside bias while markets price in the ARR ramp and contract credibility; volatility possible around execution timing (late 2026–early 2027).
Background
HIVE is transitioning from pure-play bitcoin mining toward AI/HPC infrastructure, and this contract is positioned as evidence of commercial traction.
Why it matters
A contract award with quantified ARR contribution can re-rate the market’s view of HIVE’s recurring revenue durability and reduce perceived earnings volatility from crypto mining cycles.
Market relevance
Traders can reassess HIVE’s forward revenue profile and pivot credibility based on the disclosed contract economics and deployment timeline.
Market effects
Reinforces demand for GPU cloud/HPC infrastructure tied to enterprise and government AI workloads, supporting the broader AI compute supply chain narrative.
Highlights Canada-based AI compute deployment at Bell’s Merritt facility, aligning with domestic AI sovereignty policy themes.
Signals continued enterprise/government AI capex shifting toward localized, contract-backed GPU infrastructure rather than pure mining exposure.
Alternative perspectives
The revenue ramp is back-end loaded (go-live late 2026–early 2027), so near-term earnings impact may be limited despite the headline contract size.
Execution risk (facility readiness, GPU supply/uptime, and customer adoption of Cohere enterprise models) could delay ARR realization versus the stated targets.
Key entities
- companyHIVE Digital Technologies
Subject of the article; awarded a $220M, three-year GPU cloud contract via its BUZZ High Performance Computing unit.
- customer/partnerBell Canada
Partner in the contract; provides the AI Fabric facility in Merritt, British Columbia.
- AI firmCohere
AI firm whose enterprise models will be served using the dedicated compute layer.
- technology supplierNvidia
Supplies the Nvidia Grace Blackwell GPUs referenced for the deployment.