HIVE Digital secures $129‑$165 million loan to fund NVIDIA GPU cluster for Canadian AI contract
HIVE Digital Technologies, through its BUZZ High Performance Computing unit, signed a loan and security agreement with an institutional lender for a fixed‑rate facility of about $129 million. The proceeds will purchase a $165 million NVIDIA GB200 GPU cluster to support a three‑year sovereign AI contract with Cohere in Canada, with repayment tied to contract revenue. The loan carries a 9.0% annual interest rate and is secured by the GPU assets and a limited recourse guarantee from BUZZ HPC. Delivery of the GPUs is expected toward the end of Q4 2026.
Why it matters
The financing gives HIVE predictable, low‑cost capital for a major AI infrastructure project, strengthening its position in Canada’s emerging AI market. The loan’s fixed 9.0% rate and asset‑backed structure limit financing risk for investors while the contract provides a revenue stream to service the debt.
Key facts
- 1The loan and security agreement provides a fixed‑rate credit facility of approximately $129 million (US dollars). owensoundsuntimes.com
- 2The facility bears a 9.0% per‑annum interest rate over a three‑year term, with principal and interest amortizing over the life of the loan. owensoundsuntimes.com
- 3The loan is secured by the NVIDIA GB200 GPUs and related assets of BUZZ Alpha Cloud, with a limited recourse guarantee from BUZZ HPC. owensoundsuntimes.com
- 4Proceeds will be used to purchase a $165 million cluster of NVIDIA GB200 NVL72 systems for a three‑year fixed‑term contract with Cohere. stocktitan.net
- 5Delivery of the GPU cluster is expected toward the end of Q4 2026. stocktitan.net
- 6The loan represents roughly an 80% loan‑to‑cost ratio for the GPU cluster. owensoundsuntimes.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.