HIVE Digital Repurposes Bitcoin Mining Sites for Canadian AI Infrastructure
HIVE Digital Technologies is repurposing its Bitcoin mining infrastructure to support artificial intelligence initiatives across Canada. Through its subsidiary BUZZ High Performance Computing Inc. (BUZZ HPC), the company is converting power-hungry mining facilities into advanced GPU cloud services for enterprises, government agencies, and research institutions. This shift aligns with Canada's data residency requirements, which favor domestic providers for handling sensitive information, such as healthcare data.
The demand for GPU computing is growing, and BUZZ HPC is already serving clients in several provinces, including British Columbia, Manitoba, Ontario, Quebec, and New Brunswick. The company focuses on AI workloads running on NVIDIA GPU infrastructure. In June 2026, BUZZ HPC secured a three-year deal worth approximately $220 million with Bell AI Fabric to deploy 2,304 NVIDIA Grace Blackwell GPUs for Cohere Inc., a leading Canadian AI company. Two months later, it signed a five-year AI cloud services agreement valued at $350 million with an unnamed major enterprise, covering 2,016 NVIDIA GB300 GPUs. Together, these contracts represent roughly $570 million in estimated value.
The company reported achieving average daily revenue exceeding $1 million as of September 10, 2026. BUZZ HPC is also expanding its team through collaborations and hiring industry veterans. HIVE Digital plans to construct a 320 MW AI gigafactory in the Greater Toronto Area, expected to come online in the second half of 2027. At full capacity, the facility will house over 100,000 GPUs, with an estimated investment of CAD $3.5 billion.
For shareholders, the company's target of approximately $180 million in annual recurring revenue by September 2026 provides a concrete milestone to track. However, risks include customer concentration, as two large contracts account for a significant portion of the visible pipeline. The company's partnership with Cohere Inc. through Bell AI Fabric strengthens its ties to one of Canada's prominent AI developers. The next milestones to watch include the September 2026 ARR figure, progress on the Toronto gigafactory, and securing additional customers beyond the current anchor contracts.