HIVE Digital Technologies Surges on $350M AI Contract
HIVE Digital Technologies' (NASDAQ:HIVE) shares are up 11% after announcing a five-year, $350 million GPU cloud services agreement with an unnamed investment-grade enterprise customer.
The deal is expected to generate approximately $70 million in annualized revenue and brings BUZZ HPC's total annualized revenue to $180 million.
Captital expenditures for the deployment total $185 million, which will be funded through a mix of debt financing, equipment financing, and HIVE's zero-coupon convertible bond issued in June. The customer is providing an upfront deposit of $35 million, 10% of the contract value.
The company's CEO Aydin Kilic stated that they are accelerating towards their year-end target of $200 million of ARR for their GPU cloud business and that this deal supports an attractive economic and return profile.