HIVE Lands $350M AI Cloud Deal as Bitcoin Miners Diversify

Bitcoin miners are increasingly treating power capacity and data-center expertise as assets that can serve more than one computing market. HIVE Digital Technologies provided one of the clearest examples on August 17, announcing a five-year GPU cloud services agreement worth approximately $350 million through its BUZZ HPC subsidiary.

According to HIVE’s company release, the contract is with an unnamed investment-grade enterprise customer and is expected to add about $70 million in annualized revenue. The announcement shifts attention from crypto mining output to the value of the infrastructure surrounding it.

A 2,016-GPU Cluster in British Columbia

BUZZ HPC will deploy 2,016 Nvidia Blackwell Ultra GPUs in GB300 NVL72 rack-scale systems. The cluster will use Nvidia Quantum-X800 InfiniBand networking and VAST Data storage at the Bell AI Fabric facility in Merritt, British Columbia.

HIVE expects the infrastructure to be delivered and deployed in the fourth quarter of 2026. The company said the facility uses renewable hydroelectric power and closed-loop liquid cooling, giving the project a sustainability angle alongside its AI-compute economics.

The contract requires approximately $185 million in capital expenditure. HIVE expects an upfront customer deposit of about $35 million, equal to roughly 10% of the total contract value, while financing initiatives and equipment financing are intended to support the remaining deployment cost.

Contracted Revenue Comes With Execution Risk

HIVE said the agreement lifts BUZZ HPC’s total annualized revenue to approximately $180 million. That figure consists of about $35 million in active revenue and roughly $145 million in contracted revenue expected to come online through the end of 2026.

The distinction is important. Contracted revenue depends on equipment delivery, commissioning, customer performance, and operating costs. HIVE itself lists delays, counterparty risk, capital availability, and power-cost changes among the factors that could cause actual results to differ from its projections.

HIVE will retain ownership of the GPU infrastructure after the deployment. That can preserve residual value beyond the initial contract, but it also leaves the company exposed to the economics and obsolescence cycle of high-end AI hardware.

Mining Infrastructure Becomes a Dual-Use Asset

The broader significance is the convergence between Bitcoin mining and AI data centers. Both businesses depend on access to power, cooling, networking, and large-scale computing facilities. HIVE is betting that those shared requirements can create a second revenue engine rather than forcing a complete exit from Bitcoin.

Institutional exposure to digital assets is already broadening through products such as Bitcoin and Ethereum exchange-traded funds. HIVE’s strategy shows another route: using the operational base built for mining to sell enterprise compute. Whether the model works will depend on the company bringing the cluster online on time and converting contracted figures into realized cash flow.