HIVE Lands $350M Nvidia AI Contract, Accelerates GPU Cloud Growth
HIVE Digital Technologies (HIVE) stock surged nearly 6% in pre-market trade after landing its largest AI contract yet, a $350 million, five-year GPU cloud services agreement with an 'investment-grade' enterprise customer. The deal is expected to add about $70 million in annual revenue and bring BUZZ HPC's total annual revenue run rate to roughly $180 million.
The company plans to spend around $185 million on the project, which will deploy 2,016 Nvidia Blackwell Ultra GPUs at HIVE's Bell AI Fabric facility in Merritt, British Columbia. The enterprise customer will provide a 10% upfront deposit of around $35 million, while HIVE will use a combination of financing sources, including its zero-coupon convertible bond issued in June 2026 and debt financing.
Chief Executive Aydin Kilic stated that the project will be funded in part by HIVE's zero-coupon convertible bond issued in June 2026, alongside debt financing to support the company's GPU purchases. 'We are pleased to announce this agreement as we accelerate towards our year-end target of $200 million of ARR for our GPU cloud business.'
The new contract brings BUZZ HPC closer to its $200 million year-end annual recurring revenue (ARR) target, after the company reported $110 million in contracted revenue for BUZZ HPC in its fiscal first-quarter 2027. The deal is expected to generate roughly $500,000 per day in revenue once the new infrastructure is fully operational in the fourth quarter.