HIVE Digital Technologies' BUZZ High Performance Computing unit signed a five-year, $350 million AI cloud contract, but the deal depends on a $185 million GPU buildout HIVE must complete by Q4 2026. Only about $35 million of the contract's revenue is active today, leaving most of the payoff tied to hardware HIVE has yet to install.
HIVE Digital Technologies, a Bitcoin miner, has signed a five-year, $350 million AI cloud contract through its BUZZ High Performance Computing unit. The agreement runs with an unnamed investment-grade enterprise customer and is expected to generate about $70 million in annualized revenue once the infrastructure is deployed.
But the contract's payoff hinges on execution. BUZZ must install 2,016 Nvidia Blackwell Ultra GPUs in GB300 NVL72 systems at HIVE's Bell AI Fabric facility in Merritt, British Columbia. HIVE expects the hardware, related equipment, and service warranties to cost about $185 million, with deployment targeted for Q4 2026.
Most of the contracted revenue is not yet live
The customer agreed to provide an upfront deposit equal to roughly 10% of the contract value, or about $35 million, though HIVE has not disclosed whether it has already received that payment. The deal lifts BUZZ's reported annual recurring revenue to about $180 million, but only around $35 million of that is currently active.
Another $145 million is contracted and expected to come online through the fourth quarter, meaning most of HIVE's projected AI revenue still depends on hardware delivery, installation and commissioning. HIVE defines annual recurring revenue as annualized weekly, daily or quarterly revenue rather than reported revenue and warns that projected figures may not reflect future cancellations, discounts or service reductions.
Financing the buildout remains open
HIVE has existing financing to draw on. The company raised $130 million from zero-percent exchangeable senior notes in June and said it raised $245 million from zero-percent notes during the quarter. Chief Executive Officer Aydin Kilic said proceeds from the bond and debt financing would help fund the GPU purchase, though HIVE has not disclosed how much of those proceeds remains available for the project or the terms and closing status of additional equipment financing.
HIVE recently reported $208 million of cash, though it has not disclosed how much is earmarked for the GPU deployment. Once the new infrastructure is operating, HIVE expects its HPC and AI business to generate about $500,000 of daily revenue.
Still, the contract gives HIVE a pipeline of committed AI demand, but the economics now depend on execution: securing the remaining financing, receiving and commissioning the GPUs on schedule, and converting contracted capacity into live revenue by year-end.
Source: HIVE Digital Technologies SEC filing
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