HIVE Transforms Bitcoin Mining Sites into 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 transforming its data centers into advanced GPU cloud services, targeting enterprises, government agencies, and researchers. The move aligns with Canada's data residency requirements, which favor domestic providers for handling sensitive information.

BUZZ HPC has secured significant contracts, including a three-year deal worth approximately $220 million with Bell AI Fabric in June 2026. This agreement involves deploying 2,304 NVIDIA Grace Blackwell GPUs for Cohere Inc., a leading Canadian AI company. Additionally, in August 2026, BUZZ HPC signed a five-year AI cloud services agreement estimated at $350 million with an unnamed major enterprise, covering 2,016 NVIDIA GB300 GPUs. Together, these contracts represent roughly $570 million in combined estimated value and are expected to push annual recurring revenue from GPU cloud services to approximately $180 million by September 2026.

The company reported a milestone in September 2026, achieving average daily revenue exceeding $1 million. HIVE also plans to construct a 320 MW AI gigafactory in the Greater Toronto Area, set to come online in the second half of 2027. The facility, estimated to cost around CAD $3.5 billion, will house over 100,000 GPUs at full capacity.

For HIVE shareholders, the target of approximately $180 million in annual recurring revenue provides a clear metric to track progress. However, the company faces challenges, including securing financing for the gigafactory and managing customer concentration, as two large contracts account for a significant portion of its visible pipeline. The success of BUZZ HPC will also depend on its ability to sign additional customers beyond its current anchor contracts.